Tamilnadu Industrial Investment Corp to wipe out losses in two years

Chennai, Sep 16 (Calcutta Tube) State-owned lender for micro, small and medium enterprises, Tamilnadu Industrial Investment Corporation Limited (TIIC), plans to wipe out losses in about two years and is hoping to disburse Rs.700 crore this fiscal, an official said Thursday.

The corporation also plans to sanction loans worth Rs.1,000 crore this fiscal, the official said.

Speaking to reporters here Thursday, the corporation’s CMD Sheela Rani Chunkath said: ‘Our target is to disburse Rs.700 crore this fiscal up from Rs.658 crore disbursed last year. The company will wipe out its accumulated loss of Rs.186 crore soon.’

‘Last year, our net profit was around Rs.44 crore and this year the target is around Rs.65 crore. At this rate we will wipe out entire accumulated losses in couple of years’ time,’ Chunkath said.

‘Our net non-performing assets is just two percent of our book size of around Rs.1,000 crore,’ she said.

Queried about the company’s average cost of funds, she said: ‘The blended cost is around 12.5 percent and our lending rate ranges between 13 percent to 14.75 percent.’

The company can raise up to Rs.70 crore as deposits from the public. For the balance funds it taps the nationalized banks and the Small Industries Development Bank of India (SIDBI).

She said representations have been made to central government for asking the SIDBI to lend at a rate lower than 9 percent.

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