Speaking from the sidelines of the PhillipCapital conference on hospitality, aviation & travel (HAT), Satpal Arora, MD, Tourism Finance Corporation of India (TFCI) said the company has a target of disbursements at Rs 700 crore for FY18 and that of sanctions at Rs 1300 crore, which his almost 30 percent higher than last fiscal. The company has already achieved 40-45 percent of our target for disbursement and sanctions, he said since the hotel industry is doing well.
He said about 75 percent of the overall lending is done to the tourism industry.
The company aims to bring down their gross non-performing assets (GNPAs) to 3.5 percent in FY18 from 6.5 percent in FY17 and the net NPAs to 0 percent by FY18 end. The company also hopes to maintain the net interest margins at 3 percent.
He said they have restructured two accounts last years of which one account will be upgraded in Q2FY18 and the second by Q3FY18. “These two accounts will lead to decrease in gross NPAs by 50 percent,” he said.
TFCI, as a specialised financing institution, has contributed significantly in terms of creation of tourism infrastructure throughout the country and thereby generating direct employment opportunities.
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