Performance of Haryana Financial Corporation in Liberalized Era

State Financial Corporations (SFCs) provide finance to industries. They were established with the purpose of promoting the growth of small, medium and large-scale industries in the country in order to augment the growth of industries and make the nation self-sufficient. They play a major role in the industrial development of regions. SFCs have been providing finance, technical know-how, etc., to the small and medium-scale industries in the states. The main objective of the study is to analyze the performance of Haryana Financial Corporation (HFC) in giving financial assistance to Small-Scale Industries (SSI) in liberalized era. The study is analytical in nature, throwing light on the financing pattern of SSI sector by HFC, covering year-wise, type-wise, industry-wise, constitution-wise, size-wise and district-wise credit sanctions and disbursements in Haryana. The data for the present study have been obtained from the annual reports of HFC. Result shows overall negative growth rates of loans sanctioned as well as of loans disbursed by HFC during the study period. Constitution-wise, size-wise, industry-wise and district-wise classification of the data also reveal poor performance of HFC in the era of liberalization. HFC has also failed in its objective of balanced development, as most of the sanctions have been made only to a few districts of Haryana and a small share of the total amount sanctioned has gone to the backward districts. Moreover, the percentage share of arrears is increasing and recovery ratio is decreasing year-by-year.