Adoption of a new strategy would help the organisation disburse lower volume sanctions and keep the company safe from risk. "Our first priority is to clear our books through the mechanism of quick settlements and restructuring of repayments by defaulting borrowers followed by sale of assets," managing director N Narayanan told The Financial Express here on Friday.

Explaining the new scheme, Narayanan said to augment resources the company has decided to raise funds by placing bonds on private placement of certificate of deposits and preferential share capital. "The general slowdown in the economy has adversely affected the tourism industry and especially the hospitality segment. Hence the new system of lending and risk management of funding," he said. The adoption of new system does not mean that our good clients will not be given services they are still being provided with their fresh need of credit requirement across the table.The risk management technique of the company has already started yielding results and it recorded a net profit of Rs 4.56 crore during second quarter of the current fiscal registering a growth of 73 per cent over Rs 2.63 crore first quarter ending July 99.

Though the Reserve Bank of India has prescribed lending norms to reduce limit of financial assistance from 25 per cent to 20 per cent under the recent credit policy, the TFCI, with a view to contain risk, has decided to slash the same to less than 20 per cent for a single borrower of the total cost of the project, he said.

The corporation has registered a turnover of Rs 36.28 crore during first half of the current financial year as against Rs 35.23 crore during the same period registering 10 per cent growth in business.