Haryana Financial Corporation Ltd Company Summary

Haryana Financial Corporation Ltd Summary

Haryana Financial Corporation Limited (HFCL), a premier state-level institution was established in 1967 after the reorganisation of the erstwhile Punjab Financial Corporation. Haryana Financial Corporation has been set up under an Act of Parliament known as State Financial Corporations Act, 1951. The Company was promoted jointly by the Government of Haryana and the Industrial Development Bank of India.HFC has been approved by SEBI as a Category-I Merchant Banker. It is also ranked as Category-A state-level financial institution by IDBI. The Corporations activities include merchant banking, investment banking, trade finance, lease finance and term lending. Based on its track record, the Corporation was the first state-level financial institution to go public in 1995. The Corporation is also the first state financial corporation holding OTCEI membership.During 1995, the Company diversified its range of financial services to include non-fund-based assistance in the form of guarantees, letters of credit and forex services.In 1999-1999, there was reduction in profits due to low spread available because of downward revision in lending rates and rebate in interest rates to good borrowers and high cost of funds. Hence, to improve liquidity position and reduced dependence on larger debts, the Company gave top priority to the recovery of its dues.The Corporation has stopped fresh Sanctions since May, 2010. The Corporation issues demand notice prior to the due dates of repayment of installment of principal and interest in terms of loan agreement and the borrowers are expected to make the payment on or before due dates. In case of default, higher rate of interest inclusive of penal interest as per the provisions in the loan documents is charged on the defaulted amount and for the defaulted period from due date. The Corporation does allow reschedulement depending upon the merits of the case and working of the unit. 1st reschedulement request is accepted by the Corporation without charging any penal interest. The Corporation utilized its limited resources for meeting the commitments/liabilities during the year 2022.