NEDFi Holds AGM: Focus on Credit Expansion, Employment, and Women Empowerment
The North Eastern Development Finance Corporation Limited (NEDFi) held its 29th Annual General Meeting (AGM) at its registered office in Guwahati, showcasing another year of robust financial performance and reaffirming its commitment to fostering development in the northeastern region of India. The meeting, which marked the presentation of the corporation’s Annual Report for the fiscal year 2023-24, was led by CMD PVSLN Murty, who welcomed shareholders and highlighted NEDFi's significant achievements over the past year.
Record Financial Performance
During the financial year 2023-24, NEDFi reached record-breaking results across several key performance metrics. The corporation's total sanctions grew to Rs 846.37 crore, up from Rs 798.03 crore in the previous year, a reflection of its deepened financial outreach. Cumulatively, NEDFi has sanctioned Rs 8,231.40 crore across 19,916 projects as of March 31, 2024. The corporation also reported a substantial 17.98% growth in loan outstanding, increasing from Rs 1,554.10 crore to Rs 1,833.51 crore.
CMD Murty highlighted the corporation’s focus on extending credit to underserved areas, driving skill development, creating employment opportunities, and empowering women in the region, all of which were key priorities in the past year.
Strong Growth in Income and Profit
NEDFi's financial performance saw marked improvements in FY24. The corporation's gross income rose by 15.29% to Rs 239.22 crore, primarily driven by interest income. Gross profit increased by 14.19% to Rs 132.37 crore, while net profit surged by 25.25% to Rs 100.20 crore, up from Rs 80 crore in FY23. The corporation's improved earnings allowed its Board of Directors to declare an 8% dividend for the fiscal year.
Asset Quality and CSR Initiatives
NEDFi made significant strides in enhancing its asset quality, with its gross Non-Performing Assets (NPA) ratio declining to 3.10% from 3.34% in the previous year, signaling an effective management of stressed accounts.
The corporation’s Corporate Social Responsibility (CSR) initiatives continued to impact the region positively, with a strong focus on women’s empowerment, livelihood improvement, and skill development in underserved areas. During FY24, the corporation supported 515 beneficiaries across various trades and sectors, and extended marketing support to 4,729 artisans.
Support for Start-ups and Innovation
NEDFi’s efforts to promote entrepreneurship were reflected in its North East Venture Fund, a joint initiative with the Ministry of Development of North Eastern Region (DoNER) and the Small Industries Development Bank of India (SIDBI). Managed by NEDFi Venture Capital Ltd (NVCL), the fund supported early-stage and growth-stage companies with innovative products and technologies. As of March 2024, the fund had committed nearly Rs 100 crore in investments to 68 start-ups.
The Road Ahead
Looking ahead to FY25, NEDFi is poised for ambitious growth, with a focus on the Micro, Small & Medium Enterprises (MSME) and microfinance segments. Key priorities include extending affordable credit to underserved areas, promoting skill development, enhancing employment opportunities, and empowering women, all while nurturing traditional crafts and fostering innovation. NEDFi also plans to strengthen its risk management practices, reduce NPAs further, and expand its outreach across the northeastern region.
In his concluding remarks, CMD Murty expressed gratitude to the Board of Directors, shareholders, and key stakeholders, including the Ministry of DoNER, state governments, banks, and financial institutions, for their unwavering support and guidance.
(Northeast, Northeast News)
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