"SBI Factors sanctioned prepayments limits aggregating Rs 59 crore to 47 new clients last year and it has maintained a dividend of 7.5 per cent on its paid-up capital of Rs 25 crore. Its reserves have gone up from Rs 7.11 crore in 1997-98 to Rs 8.20 crore in 1998-99," SBI Factors managing director S Banga said on Tuesday.

SBI Factors has a capital adequacy ratio of 37 per cent against the 12 per cent specified by RBI for NBFCs accepting public deposits. SBI Factors, however, does not accept public deposits.

"Weare targeting a turnover of Rs 900 crore for the current fiscal and propose to introduce new products like reverse factoring (purchase bill discounting), factoring of bills drawn under LC, and without-recourse factoring," Banga said. However, to start without-recourse financing, the company will be required to secure credit insurance.

"National Insurance Company has offerred to provide such insurance cover and we are in the process of finalising the insurance premium with the insurance company. We will be offerring factoring services to top rated corporates at finer rates and have decided to widen our range of prepayment limit for entertaining applications from Rs 20 lacs- Rs 4.5 crore range to Rs 10 lacs -Rs 6 crore range," Banga added.

"SBI factors has asked the RBI to accord it the status of a financial institution. This would enable us to access the debt recovery tribunals for our non-performing assets and access to call money market," he said.