Haryana Financial Corporation (HFC), is a premier state-level institution which was established in 1967 after the reorganisation of the erstwhile Punjab Financial Corporation. The company was promoted jointly by the Government of Haryana and the Industrial Development Bank of India. HFC has been approved by SEBI as a category-I merchant banker. It is also ranked as category-A state-level financial institution by IDBI. The corporation's activities include merchant banking, investment banking, trade finance, lease finance and term lending. Based on its track record, the corporation was the first state-level financial institution to go public in 1995. The corporation is also the first state financial corporation holding OTCEI membership. During 1995, the company diversified its range of financial services to include non-fund-based assistance in the form of guarantees, letters of credit and forex services. In 1999-1999, there was reduction in profits due to low spread available because of downward revision in lending rates and rebate in interest rates to good borrowers and high cost of funds. Hence, to improve liquidity position and reduced dependence on larger debts, the company gave top priority to the recovery of its dues.