Sbi Factors Targets Rs 1000cr Turnover

SBI Factors and Commercial Services Ltd. plans to achieve a turnover of Rs 1000 crore by the end of the next financial year. The company which has concentrated solely on the domestic market also intends to move into the realm of export factoring. Keeping this in mind it is looking for a strategic alliance with an international factoring agency.

The company which was set up with a paid up capital of Rs 25 crore completes seven years of existence this month.

SBI Factors hopes to achieve a turnover of Rs 600 crore during the current financial year.

The company which attained a gross income of Rs 8 crore last year, posted a net profit of Rs 4 crore.

 

The company with a capital adequacy of 65 per cent was till recently constrained by the inability to leverage under the old guidelines. It could leverage only one time their net owned funds.

Company officials also attribute the lack of awareness about factoring servcies to the relatively low turnover.

After the relaxations in November 1996, SBI Factors can borrow upto three times their net owned funds, raise deposits upto two times, and borrow from the inter- corporate deposit market upto one time their net owned funds.