DELHIFINANCIALCORPORATION.ppt

DELHI FINANCIAL CORPORATION ACTION ACHIEVEMENT PLAN 2005-2006 AND PRESENTATION VISION STATEMENT During the period 2004-2005 Delhi Financial Corporation has moved towards good business by: adopting transparent practices and procedures, creating standard assets and reducing past NPAs, Adopting customer friendly approach with stress on motivation rather than threats, litigation and regulation as part of new customer friendly practices. VISION STATEMENT 2005-2006 ?i? To implement customer friendly business packages for revival /settlement of accounts ii To further reduce NPAs. iii To improve recovery rates of the corporation iv To maintain profits by reducing cost of funds v To computerse business processes, loan accounting monitoring. vi To provide accounts information to the customers through internet. vii To operationalise WAN for Head Office, C.P. Rohini and Chandigarh branches. viii To move towards Associate Banking. ????? STRENGTHS i.??? Good record of past recoveries. ii. Consistent track record of profit making. iii.? ?No default in repayment of refinance. iv.?? Slow but steady growth. v. Centralized geographical market domain . vi.? Support by government. vii.? Experienced team of officers. viii. Hardware and LAN in position. WEAKNESS i.?? High interest rates :- The prevailing rate of interest in the corporation was 15% as on 31.3.2004. ii. High level of NPAs :- The level of NPA stood at 46.28% as on 31.03.2004 iii.? High cost of past borrowings :- Rs.29 crores of funds borrowed from Govt. of NCT of Delhi was carrying a rate of interest @11.5% and Rs. 3.72 Crores from SIDBI @12%. Contd___ ????? WEAKNESS contd V. Unprecedented outflow of standard assets:- Year 2003-04 witnessed unprecedented outflow of standard assets to the tune of Rs