29th AGM: NEDFi focus on affordable credit to underserved areas

Syllad | The Rising MeghalayaSeptember 27, 2024

North Eastern Development Finance Corporation (NEDFi) Chairman and Managing Director PVSLN Murty outlined the corporation’s ambitious growth targets, focusing on the micro, small, and medium enterprises (MSME) and microfinance sectors.

Addressing the 26th annual general meeting of the company in Guwahati, Murty said the key priorities for NEDFi include providing affordable credit to underserved areas, fostering skill development, creating employment opportunities, and empowering women, while also supporting traditional crafts and startups.

Murty emphasized that NEDFi’s strategic approach will concentrate on enhancing risk management, reducing non-performing assets (NPAs), and improving credit monitoring.

Additionally, the corporation plans to expand its outreach through a customer-centric model, prioritize innovation, and pursue continuous operational improvements. These initiatives aim to strengthen NEDFi’s operational efficiency and help the corporation achieve its long-term growth and development objectives in the region.

Murty highlighted the corporation’s remarkable achievements in the last financial year (FY24). NEDFi reached record-breaking milestones across multiple metrics. The corporation’s sanctions increased to Rs 846.37 crore from Rs 798.03 crore in the previous year. By March 31, 2024, NEDFi had extended financial assistance to 19,916 projects, with cumulative sanctions amounting to Rs 8,231.40 crore. The loan outstanding grew by 17.98%, reaching Rs 1,833.51 crore, up from Rs 1,554.10 crore in the previous year.

FY24 also saw a 15.29% rise in gross income, which reached Rs 239.22 crore, largely driven by interest income. Gross profit rose by 14.19% to Rs 132.37 crore, while net profit surged by 25.25% to Rs 100.20 crore, compared to Rs 80.00 crore in the previous financial year. As a result, the Board of Directors declared an 8% dividend for FY24.

NEDFi also made significant progress in managing its asset quality, reducing gross non-performing assets (NPAs) to 3.10%, down from 3.34% the previous year.

Additionally, the North East Venture Fund, a collaboration between NEDFi, the Ministry of DoNER, and SIDBI, and managed by NEDFi’s subsidiary NVCL, has committed nearly Rs 100 crore in investments to 68 start-up companies focused on innovative products and technologies by March 31, 2024.

NEDFi’s CSR initiatives in FY24 concentrated on women’s empowerment, improving livelihoods, and providing employment skills, especially in rural and underserved areas. Support was extended to 515 beneficiaries in various trades, and marketing assistance was provided to 4,729 artisans during the year, fostering growth in the craft sector.