Industrial Financial Services by APSFC – A Study

14 Pages Posted: 19 Aug 2019

Date Written: August 1, 2012


Andhra Pradesh State Financial Corporation came into being as a premier Financial Institutions on 1st November, 1956 with the avowed objectives of purveying financial assistance and managerial support to industrial entrepreneurs in Andhra Pradesh. It is clear that, the APSFC is concentrating on the industries so as to bring about a balanced industrial development in Andhra Pradesh. It has been providing financial support to various categories of industries in State. But, the overall progress of the industrial sector has not been up to the mark due to various constraints It needs to strengthen the financial base of the Corporation and its operational efficiency. In spite of the efforts made by APSFC to promote industrial development in the State, it has failed to meet its objective. It has not been distributing funds properly for the promotion of small-scale industrial sector in the state. Moreover funds supplied by the Corporation is not adequate for the small-scale industrial progress of the state. Some of the disquieting trends in the operations of the APSFC are failure to diversify the assistance port-folio, continuance of a wide gap between assistance sanctioned and disbursed, inadequate attention to the schemes benefiting the village craftsmen and rural artisans and inadequate assistance for the rehabilitation of the existing sick industrial units. It appears that the APSFC is not able to translate its policies and ideas into actions, which have merely remained on paper. Therefore, it has become necessary to make an in depth inquiry into the performance of the Corporation. With this intension the present study of the “Industrial Financial Services by APSFC – A Study” has been undertaken in order to find out performance growth of the Corporation over a study period. In this paper the researcher made an attempt to examine the relationship between sanctions and disbursements, gross sanctions and sanctions to SSI sector, purpose wise, constitution wise, loan type wise, social class wise, region wise classification of assistance. At the end of the analysis some viable and useful suggestions are offered to tone up the overall performance of the Corporation for industrial development in Andhra Pradesh.

Keywords: developmental financial institutions, sanctions, disbursements, fund based services, fee based services

JEL Classification: G20

Suggested Citation

C, Viswanatha Reedy, Industrial Financial Services by APSFC – A Study (August 1, 2012). Available at SSRN: or

Viswanatha Reedy C (Contact Author)

Dept. of Business Management. ( email )

Rayalaseema University
Kurnool, Andhra Pradesh 518002
9848263463 (Phone)

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