BANGALORE, July 13: The Karnataka State Finance Corporation's (KSFC) disbursements are likely to touch Rs 700 crore with equal amounts recorded in recovery during the year 1996-97. According to a corporation source, this compares favourably with disbursements of Rs 612.63 crore and recoveries of Rs 495.33 crore during the previous fiscal.

The corporation will concentrate on newly introduced hire-purchase and leasing activities which are proving to be immensely profitable business propositions. During 1995-96, the corporation achieved disbursement levels of Rs 13.46 crore in hire-purchase and Rs 34.20 crore in leasing. Recovery levels of Rs 4.67 crore for hire-purchase and Rs 6.71 crore for leasing were acheived.

The corporation is also planning to concentrate on the transport sector and the hotel industry which contribute substantially to its business. While hotels were sanctioned Rs 178.28 crore of which Rs 140.99 crore were disbursed during 1995-96.

The transport industry on the other hand was sanctioned Rs 441.38 crore of which Rs 421.85 crore were disbursed during 1995-96. While 96 per cent of the total loans are sanctioned in the less than Rs 25 lakh category and are attended to at the branch level, only 4 per cent of the loans were sanctioned directly at head office level.

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