Gujarat State Financial Corporation’s loss increases by 5% in a year

Gandhinagar: The loss of Gujarat State Financial Corporation (GSFC) for the year 2024-25 increased by 5% compared to the previous year, and its staff strength dropped from 16 to 12 compared to the earlier year, a report tabled in the ongoing budget session of the assembly said.The 65th annual report of the GSFC presented in the Gujarat assembly said that the loss of the govt undertaking for the year 2024-25 stood at Rs 12,534 lakh, compared to a loss of Rs 11,920 lakh reported in the previous year.
The accumulated losses of the company carried forward for the year 2023-24 was Rs 3,29,981.82 lakh, which increased to Rs 3,42,515.82 lakh at the end of the 2024-25 financial year, an increase of 3.8%, the report said.GSFC's total income for the year 2024-25 stood at Rs 1,724.71 lakh, a decrease of 24.63% over Rs 2,149.54 lakh reported in the previous year.The report also said that GSFC's staff strength reduced from 16 in 2023-24 to 12 in 2024-25. The staff strength for 2024-25 included one Grade A officer, eight Grade B officers, and three Grade C officers. "Of the total staff strength of 12, four employees are on deputation with other govt departments. The effective staff strength of the corporation reduced to eight spread over three regional offices and the head office," the report said.GSFC is a state-level development financial institution that provides medium- and long-term credit to small- and medium-scale industrial undertakings in the state. The corporation played a role in extending financial assistance to SMEs."With the passage of time, and particularly after financial reforms, GSFC's fortune dwindled and it could not withstand stiff competition from banks and other financial institutions. It was forced to discontinue its main activities of sanction and disbursement from FY 2001-02 and concentrated on recovery of dues since then," the report said.