DELHI FINANCIAL CORPORATION

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DELHI FINANCIAL CORPORATION

• ACTION ACHIEVEMENT PLAN 2005-2006
• AND
• PRESENTATION
• 
  

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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.

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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.
•      

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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.

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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
  _at_11.5 and Rs. 3.72 Crores from SIDBI _at_12.
• Contd___
•      

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WEAKNESS contd

• V. Unprecedented outflow of standard assets-
  
• Year 2003-04 witnessed unprecedented outflow of
  standard assets to the tune of Rs. 9 Crores
• vi.   High administrative costs.
• vii. Failure of MIS/software due to abandonment
  of project development by IDBI Intech.
• viii. Lack of adequate number of trained
  chartered accountants amongst the staff.

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OPPORTUNITIES

• i. Availability of relocation business in
  Bawana due to orders of the Supreme Court
  regarding closure of polluting industries in
  non-conforming area.
• ii. Initiative by SIDBI to reduce its cost of
  funds on refinance by executing MOUs with
  selected SFCs
• Culture of revival packages in banks and
  aggressive marketing practices prevailing in
  banks
• Availability of professional services of
  chartered accountants for maintaining ledgers etc
  by way of outsourcing services.

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HANDICAPS

• Past history of non-competitive environment.
• Excessive dependence on coercive methods of
  recovery.
• Non- professional and regulatory approach
  towards business.
• All time low in business in year 2003- 04

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INITIATIVES
FOR BUSINESS

• Reduction in interest rates to compete with
  commercial banks by concluding an MoU between
  Govt. of NCT of Delhi, DFC and SIDBI for
  reduction of cost of funds signed on 30th June
  2004
• Repatriation of high cost debts to the tune of Rs
  32 crores
• AVERAGE COST OF FUNDS STANDS REDUCED FROM 11
  P.A. AS ON 31.03.2004 TO 8.5 P.A. AS ON
  31.03.2005

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REVISED INTEREST RATES
FINANCIAL PROFILE
S.No. CATEGORY EFFECTIVE RATE OF INTEREST REVISED PREV. SBI Rate
1. FOR LOANS UP TO RS.50,000/- 9.50 10.5 8.50
2. FOR LOANS ABOVE RS.50,000/- AND UP TO RS.2.00 LAKHS 10 12 9.50
3. FOR LOANS ABOVE RS.2.00 LAKHS AND UP TO RS.25.00 LAKHS 10.5 15 10.25
Contd.-
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FINANCIAL PROFILE
REVISED INTEREST RATES
SBI
Based on credit assessment
4. FOR LOANS ABOVE RS.25.00 LAKHS AND UP TO RS.50.00 LAKHS 10.50 OR ABOVE AS PER RISK PERCEPTION
5. FOR LOANS ABOVE RS.50.00 LAKHS AND UP TO RS.100.00 LAKHS 10.25 OR ABOVE AS PER RISK PERCEPTION
6. FOR LOANS ABOVE RS.100.00 LAKHS. 10.00 OR ABOVE AS PER RISK PERCEPTION
Based on credit assessment
Based on credit assessment
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Contd.-
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INITIATIVES
FOR CUSTOMER FRIENDLY SERVICES

• A.) OTS Scheme non-discretionary criteria
  for cases where loan disbursed was less than
  Rs 10 lacs
• B.) Revival package for Narela Bawana
• C.) Revised OTS Scheme for PVC market at Tikri
  kalan
• D.) Revival package for Transport

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DELHI FINANCIAL CORPORATION NEW DELHI
REVIVAL PACKAGE FOR NARELA, BAWANA OTHER
INDUSTRIAL AREA

• Three years moratorium period from the date of
  first release.
• Waiver of penal/additional interest _at_ 4 p.a.
  provided entire amount of interest due _at_ 15
  p.a. is paid.
• Overall repayment period shall be up to 10 years.
• Standard Assets as on 31.3.2004 entitled to
  reduction of interest rate to 12
• Other NPA accounts can avail reduction to 12.75
  by paying arrears of interest minus 4 penalty
  charges.

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FINANCIAL PROFILE
ACHIEVEMENTS OF REVIVAL-OTS PACKAGE
PARTICULARS 2003-04 (Q4) 2004-05
A . ( i) NO. OF BENEFICIARIES UNDER REVIVAL PACKAGE (RELOCATION) 450 740
ii) INTEREST RECOVERED Rs. 350 lacs Rs.450 lacs
B. ( i) NO. OF BENEFICIARIES UNDER OTS SCHEME 80 521
(ii) LEVEL OF NPAs 46.27 36.6

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FINANCIAL PROFILE
FINANCIAL ACHIEVEMENTS

• THE NPAs OF THE CORPORATION HAVE REDUCED FROM
  46.28 AS ON 31-03-2004 TO 36.6 AS ON 31.03.2005
  AMOUNT WISE.
• ABOUT 1261 CASES HAVE BEEN SETTLED DURING THE
  YEAR 2004-05, REDUCING THE PROVISIONING FROM
  RS.1878 LACS AS ON 31.03.2004 TO RS.1709 LACS AS
  ON 31.03.2005.
• HIGH COST DEBT CARRYING INTEREST _at_ 11.5 OF
  RS.29.00 CRORES FROM GNCT, DELHI RS. 3.66
  CRORES FROM SIDBI PREPAID THUS REDUCING THE COST
  OF FUND BY ABOUT RS.400 LACS.
• INTEREST RATES RANGING FROM 14 TO 19 REDUCED
• (A). FOR NPAs TO 12.75 (ON PAYMENT OF
  INTEREST DUE)
• (B). FOR STANDARD ASSETS TO 12 P.A

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NET PROFITS
Rs. in Lacs
YEAR
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BUSINESS TRENDS
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FINANCIAL YEAR 2005
SECTOR WISE SANCTIONS
SECTOR WISE DISBURSEMENTS
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RECOVERY PERFORMANCE
59
51
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RECOVERIES
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RECOVERY PERFORMANCE
41.5
45
21.7
45.2
44.8
24.5
H1
H2
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STATUS OF NPAs
46.28
36.6
19.8
2005-06
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FINANCIAL PROFILE
Loans and Advances
Rs. In Lacs
2004 2005 TARGET 2005-06
Loans Advances 14691.22 16958.13 20100
Provisioning 1877.93 1709.38 1190
Standard Assets 7892.55 10754.59 16140
NPAs 6799 6203.28 3960
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FINANCIAL PROFILE
COMPOSITION OF NPAs
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RELOCATION
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TRANSPORT
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KEY FINANCIAL INDICATOR
2003-2004
2004-2005
1 2 3 4 5 EQUITY DEBT RESERVES NET WORTH PROFIT AFTER TAX 2570.18 7247.03 2964.73 5534.91 395.09 2576.18 9643.38 3343.01 5919.19 617.84 1.621 10.43 36.51
DEBT EQUITY RATIO (2/4) 1371 2576.18 9643.38 3343.01 5919.19 617.84 1.621 10.43 36.51
RETURN ON EQUITY RATIO (5/4 ) 7.13 2576.18 9643.38 3343.01 5919.19 617.84 1.621 10.43 36.51
CAPITAL ADEQUACY RATIO 39.14 2576.18 9643.38 3343.01 5919.19 617.84 1.621 10.43 36.51
Contd.
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LOANS AND ADVANCES
IN GRAPH
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STATEMENT OF TARGETS FOR NPA REDUCTION FY-2005-06
NPAs as on 31.3.2005 Likely Addition during the year To be Settled during the year NPAs likely to be on 31.3.2006 O/S Bal.
NPAs No Amount No Amount No. Amount No. Amount Amount
RL SRTOs Inds. BO 426 1280 13 2531 3363 67 267 903 80 107 657 73 525 1720 19 17 3 6 8 8 451 1500 750 1200 185 769 75 505 500 1500 10 1800 2180 60 85 140 20 40 160 20 15000 3600 700 800
TOTAL 3331 6203 36.6 555 1751 1461 3974 2425 3980 19.8 20100
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd
Activity / Projects Cumulative Up to 31.03.2006 Cumulative Up to 31.03.2006 Cumulative Up to 31.03.2006
Activity / Projects Target Target
Activity / Projects Physical Financial
Recovery HO BO 5225.00 175.00
Total 5400.00
NPA RL SRTOs Inds. BO 451 750 185 75 1500.00 1200.00 769 505.00
Total 1461 3974.00
Contd.
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED.
Activity / Projects 1st Quarter 01.04.05 30.06.05 1st Quarter 01.04.05 30.06.05 1st Quarter 01.04.05 30.06.05 1st Quarter 01.04.05 30.06.05
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Recovery HO BO 1350.00 50.00 1367.19 43.02
Total 1400.00 1410.21
NPA CASES FOR SETTLEMENT /REVIVAL RL SRTOs Inds. BO 80 90 10 15 250.00 76.00 25.00 40.00 105 98 12 17 325.00 83.00 23.00 45.00
Total 195 391.00 232 476.00
Contd.__
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED.
Activity / Projects 2st Quarter 01.07.05 30.09.05 2st Quarter 01.07.05 30.09.05 2st Quarter 01.07.05 30.09.05 2st Quarter 01.07.05 30.09.05
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Recovery HO BO 975.00 25.00 984.66 48.80
Total 1000.00 1033.46
NPA RL SRTOs Inds. BO 100 150 50 15 300.00 126.00 130.00 50.00 153 252 64 19 450.00 214.00 163.00 93.00
Total 315 606.00 488 920.00
Contd.__
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd
Activity / Projects Cumulative as on 30.09.2005 Cumulative as on 30.09.2005 Cumulative as on 30.09.2005 Cumulative as on 30.09.2005
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Recovery HO BO 2325.00 75.00 2351.85 91.82
Total 2400.00 2443.67
NPA RL SRTOs Inds. BO 180 240 60 30 550.00 202.00 155.00 90.00 258 350 76 36 775.00 297.00 186.00 138.00
Total 510 997.00 720 1396.00
Contd.
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd
Activity / Projects 3nd Quarter 01.10.05 31.12.05 3nd Quarter 01.10.05 31.12.05 3nd Quarter 01.10.05 31.12.05 3nd Quarter 01.10.05 31.12.05
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Recovery HO BO 1150.00 50.00
Total 1200.00
NPA RL SRTOs Inds. BO 90 200 49 20 350.00 450.00 260.00 197.00
Total 359 1257.00
Contd.
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd
Activity / Projects 4th Quarter 01.01.06 31.03.06 4th Quarter 01.01.06 31.03.06 4th Quarter 01.01.06 31.03.06 4th Quarter 01.01.06 31.03.06
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Recovery HO BO 1750.00 50.00
Total 1800.00
NPA RL SRTOs Inds. BO 103 200 60 19 375.00 453.00 323.00 170.00
Total 382 1321.00
Contd.
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STATEMENT OF ACHIEVEMENT S FOR FY-2004-05AND
ACTION PLAN TARGETS FOR FY-2005-06
(Rs. In Lacs)
Achievement 2004-05 Targets 2005-06
Sanctions RL SRTOs Inds BO 7891.85 247.27 94.71 103.05 8085 191 22 52
Total 8336.88 8350
Disbursement RL SRTOs Inds BO 6208.10 260.17 53.72 80.86 6375 170 15 40
Total 6602.85 6600
Recovery 5935.00 5400
Contd
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED.
Activity / Projects 1st Quarter 01.04.05 30.06.05 1st Quarter 01.04.05 30.06.05 1st Quarter 01.04.05 30.06.05 1st Quarter 01.04.05 30.06.05
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Sanction RL SRTOs Inds. BO 40 5 2 8 360.00 15.00 10.00 15.00 47 4 0 8 456.15 15.79 0.00 10.65
Total 55 400.00 59 482.59
Disbursement RL SRTOs Inds. BO 30 5 2 8 270.00 15.00 5.00 10.00 64 3 0 11 331.73 11.35 0.00 10.34
Total 45 300.00 78 353.42
Contd.__
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd
Activity / Projects 2nd Quarter 01.07.05 30.09.05 2nd Quarter 01.07.05 30.09.05 2nd Quarter 01.07.05 30.09.05 2nd Quarter 01.07.05 30.09.05
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Sanction RL SRTOs Inds. BO 58 5 1 6 575.00 10.00 5.00 10.00 59 10 1 3 615.98 27.15 20.40 2.83
Total 70 600.00 73 666.36
Disbursement RL SRTOs Inds. BO 40 5 1 4 344.00 10.00 5.00 6.00 61 9 1 3 321.73 26.63 17.95 3.35
Total 50 365.00 74 369.46
Contd.
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd
Activity / Projects Cumulative as on 30.09.2005 Cumulative as on 30.09.2005 Cumulative as on 30.09.2005 Cumulative as on 30.09.2005
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Sanction RL SRTOs Inds. BO 98 10 3 14 935.00 25.00 15.00 25.00 106 14 1 11 1072.13 42.94 20.40 13.48
Total 125 1000.00 132 1148.95
Disbursement RL SRTOs Inds. BO 70 10 3 12 614.00 25.00 10.00 16.00 125 12 1 14 653.26 37.98 17.95 13.69
Total 95 665.00 152 722.88
Contd.
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd
Activity / Projects
Activity / Projects Achievement upto 30-11-04 Achievement upto 30-11-04 Achievement Upto 30.11.05 Achievement Upto 30.11.05
Activity / Projects Financial Financial
Sanction RL SRTOs Inds. BO 5755.28 202.48 94.71 52.74 1234.02 62.59 20.40 15.48
Total 6105.21 1332.49
Disbursement RL SRTOs Inds. BO 5325.43 210.14 53.48 46.14 865.13 48.93 19.38 14.79
Total 5635.19 948.23
Contd.
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd.
Activity / Projects 3rd quarter 01.10.05 - 31.12.05 3rd quarter 01.10.05 - 31.12.05 3rd quarter 01.10.05 - 31.12.05 3rd quarter 01.10.05 - 31.12.05
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Sanction RL SRTOs Inds. BO 960 29 1 10 4400.00 86.00 2.00 12.00
Total 1000 4500.00
Disbursement RL SRTOs Inds. BO 860 24 1 15 3910.00 70.00 2.00 18.00
Total 900 4000.00
Contd.
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ACTION PLAN IN RESPECT OF DELHI FINANCIAL
CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE
ACHIEVED Contd
Activity / Projects 4th quarter 1.1.06 to 31.3.06 4th quarter 1.1.06 to 31.3.06 4th quarter 1.1.06 to 31.3.06 4th quarter 1.1.06 to 31.3.06
Activity / Projects Target Target Achievement Achievement
Activity / Projects Physical Financial Physical Financial
Sanction RL SRTOs Inds. BO 670 20 1 9 2750.00 80.00 5.00 15.00
Total 700 2850.00
Disbursement RL SRTOs Inds. BO 425 20 1 5 1851.00 75.00 3.00 6.00
Total 451 1935.00
Contd.
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SUMMARY OF CASES SANCTIONED/ DISBURSED AS ON DATE
(11.11.2005)
RELOCATION DIVISION
NO Amt.(Rs.in lacs)
A. SANCTION A. SANCTION A. SANCTION A. SANCTION
1 APPLICATION PENDING AS ON 01/04/2005 23 254.94
2 APPLICATION RECEIVED FROM 01/04/2005 TO DATE 122 1401.88
3 TOTAL 145 1656.82
4 SANCTIONED TILL DATE 126 1253.75
5 CLOSED/ CANCELLED / WITHDRAWN AS ON DATE 6 200.35
6 PENDING FOR SANCTION 13 202.72
B. DISBURSEMENT DISBURSEMENT DISBURSEMENT
7 PENDING FOR RELEASE AS ON 01/04/2005 11 808.34
8 SANCTIONED DURING THE CURRENT F.Y 126 1253.75
9 TOTAL FOR RELEASE 137 2062.09
10 DISBURSED TILL DATE (DURING F.Y) 96 798.01
11 PENDING FOR RELEASE 39 1264.08
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