These two issues will enhance the company's paid-up capital to Rs 65 crore and turn its networth positive. This is a step towards strengthening the company's liquidity position. "We will come out with these issues around March next year," a top SBI Home Finance official said.

The company's share-holding pattern as on August 19, 2000, shows that 37.13 per cent (55,69,100 shares) is held by institutional investors. Public holding stood at 34.38 per cent (51,56,700 shares) while foreign and promoters' holdings stood at 20,500 shares and 600 shares respectively.

According to a resolution passed at its 12th annual general meeting, SBI Home Finance plans to obtain financial assistance to the tune of Rs 1,000 crore over the next few years. This will be for retiring high-interest public deposits. These loans will be secured through mortgaging, charging or hypothecating assets and properties.

A suitable restructuring package through fresh capital infusion was drawn up by the institutional promoters and subsequently ratified by the principal promoter, SBI.

The National Housing Bank also allowed the company certain exemptions for fiscal 1999-2000. These included exemptions from provisioning normss on existing non-performing assets; exemption from the requirement that public deposits shall not exceed five times of net-owned funds; and the minimum capital adequacy ratio of eight per cent.

SBI Home Finance reported a turnover of Rs 53.46 crore for 1999-2000 as against Rs 66.85 crore in the previous fiscal. The company has reported a lower loss at Rs 24.53 crore as against a loss of Rs 45.29 crore in the previous fiscal.

In its explanatory statement, the company has noted that "due to losses, the net worth of the company has been eroded. Therefore, the share capital of the company has to be increased suitably".

The company has a total loan component of Rs 445.24 crore of which Rs 193.01 crore is secured and the balance is unsecured. Its interest payout declined to Rs 69.81 crore for the year ended March 2000. Of the Rs 234.47 crore in unsecured loans, deposits from the public account for Rs 211.12 crore.