Analysis on the Influencing Factors and Strategies of Sanctions and Loan Payment in Financial Companies' Operating Performance

Abstract

The total number of units and amount sanctioned and percentage share of small-scale industries (unit-wise and amount-wise) during the period of 1967-68 to 2006-07. In 2006-07, out of total sanctioned applications of 264, 262 were from small-scale sector, so 99.24% of total sanctioned applications were in favour of small-scale sector. The quantum of amount that went to the small-scale sector was Rs. 16873.41 lakhs constituting 98.86% of total amount sanctioned, implying that HFC has played an important role in financing small-scale sector. HFC, till 2007 has sanctioned to the SSIs Rs. 223235.67 lakhs to 16251 units which is 85.33% of its total amount sanctioned and 90.30% of its total units sanctioned. Table 1 also shows that there has been a substantial increase in the amount of loan sanctioned and number of units to which the loans have been sanctioned. The total amount of loan sanctioned and the amount of loan sanctioned to SSIs has increased by ACGR of 13.3% and 12.9% respectively during the study period.