Important Facts of the News
- RIICO board approved Rs 50 crore capital support to RFC.
- State government has released Rs 10 crore from the approved amount.
- RFC has set a loan disbursement target of Rs 200 crore for FY 2025-26.
- Another Rs 200 crore lending target is planned for FY 2026-27.
- RFC recorded Rs 18.82 crore net profit in 2024-25, after a net loss of Rs 6.22 crore in 2019-20.
- Profit before tax stood at Rs 19.92 crore in 2024-25.
- Loan sanctions increased from Rs 104.51 crore in 2023-24 to Rs 212.07 crore in 2024-25.
- Loan disbursements rose from Rs 83.65 crore to Rs 142.32 crore in the same period.
- NPAs reduced from Rs 293.94 crore in 2020-21 to Rs 192.39 crore in 2024-25.
- Branch network reduced from 38 to 11, and workforce from 628 to 176 over five years.
Capital Infusion to Strengthen RFC Operations
The Rajasthan Finance Corporation has gained fresh momentum in its effort to expand credit access for micro, small, and medium enterprises. The RIICO board has cleared a Rs 50 crore capital allocation to the corporation, of which Rs 10 crore has already been released by the state government. This support is intended to build a stronger financial base for the institution as it prepares to scale its operations.
Lending Targets for the Next Two Years
With the enhanced capital cushion, RFC has outlined a loan disbursement target of Rs 200 crore for the current financial year. A similar lending target has also been projected for the next financial year. The focus will be on financing enterprises that support job creation and industrial activity across different districts of Rajasthan.
Improved Financial Performance
The corporation has shown notable improvement in its financial indicators over the last few years. After recording a loss of Rs 6.22 crore in 2019-20, RFC posted a net profit of Rs 18.82 crore in 2024-25. The profit before tax touched Rs 19.92 crore during the same period, supported by better repayment recoveries, lower borrowing expenses, and increased operational efficiency.
Growth in Loan Sanctions and Disbursements
Loan approvals more than doubled from Rs 104.51 crore in 2023-24 to Rs 212.07 crore in 2024-25. Disbursements also registered strong growth, increasing from Rs 83.65 crore to Rs 142.32 crore. These trends reflect greater credit demand as well as improved evaluation and monitoring frameworks within the corporation.
Reduction in NPAs and Organizational Streamlining
RFC has also worked on restructuring its loan portfolio. Non-performing assets declined from Rs 293.94 crore in 2020-21 to Rs 192.39 crore in 2024-25, marking a reduction of 34 percent. To contain administrative expenses, the corporation rationalised its operations by reducing the number of branches and workforce through voluntary retirements and deputations. This shift enabled more efficient resource utilisation and supported credit expansion.