In this paper an attempt is made to examine the financial performance of APFSC in terms of sanctions, disbursements, purpose-wise classifications of sanctions, industry-wise classification of sanctions and disbursements and backward and other districts sanctions and disbursements. To analyse the APSFC performance in terms of these indicators over the period - 1980-81 to 2008-09 Exponential Growth Rates are calculated. The time period sub-divided into 3 periods as time period-1: 1980-81 to 1989-90, time period-2: 1990-91 to 1999-2000 and time period-3: 2000-01 to 2008-09. The first two time periods each cover 10 years while last time period consists 9 years. From the analysis, it was concluded that growth rate of gross sanctions and disbursements are declined from 1st period to 2nd period and then increased from 2nd period to 3rd period while net effective sanctions are continuously decreased in all the periods. Growth rates of purpose-wise sanctions by APSFC reveal that rehabilitation and overrun finance, expansion/diversification and rehabilitation, overrun finance and power generation and others and rehabilitation purposes got larger financial assistance from APSFC. Growth rates of industry-wise sanctions by APSFC indicate that services and non-metallic mineral products and textiles and services and other industry categories have been getting much. In terms of disbursements growth rates, others and non-metallic mineral products, machinery and food products, non-metallic mineral products and textiles and others and chemical industries are getting more. Assistance sanctioned and disbursed between backward and other districts by APSFC indicates that the growth rates of both sanctions and disbursements are reducing.
Cite this article:
S. Marulu Reddy, K. Harika. Financial Performance of Andhra Pradesh State Finance Corporation. Asian J. Management 4(4): October –December, 2013 page 285-292.