DELHI FINANCIAL CORPORATION ACTION & ACHIEVEMENT PLAN AND PRESENTATION

VISION STATEMENT During the period Delhi Financial Corporation has moved towards good business by: adopting transparent practices and procedures, creating standard assets and reducing past NPAs, Adopting customer friendly approach with stress on motivation rather than threats, litigation and regulation as part of new customer friendly practices. 2

VISION STATEMENT i To implement customer friendly business packages for revival /settlement of accounts ii To further reduce NPAs. iii To improve recovery rates of the corporation iv To maintain profits by reducing cost of funds v To computerse business processes, loan accounting & monitoring. vi To provide accounts information to the customers through internet. vii To operationalise WAN for Head Office, C.P. Rohini and Chandigarh branches. viii To move towards Associate Banking. 3

STRENGTHS i. Good record of past recoveries. ii. Consistent track record of profit making. iii. No default in repayment of refinance. iv. Slow but steady growth. v. Centralized geographical market domain. vi. Support by government. vii. Experienced team of officers. viii. Hardware and LAN in position. 4

WEAKNESS i. High interest rates :- The prevailing rate of interest in the corporation was 15% as on ii. High level of NPAs :- The level of NPA stood at 46.28% as on iii. H igh cost of past borrowings :- Rs.29 crores of funds borrowed from Govt. of NCT of Delhi was carrying a rate of and Rs Crores from Contd___ 5

WEAKNESS contd V. Unprecedented outflow of standard assets:- Year witnessed unprecedented outflow of standard assets to the tune of Rs. 9 Crores vi. High administrative costs. vii. Failure of MIS/software due to abandonment of project development by IDBI Intech. viii. Lack of adequate number of trained chartered accountants amongst the staff. 6

OPPORTUNITIES i. Availability of relocation business in Bawana due to orders of the Supreme Court regarding closure of polluting industries in non-conforming area. ii. Initiative by SIDBI to reduce its cost of funds on refinance by executing MOUs with selected SFCs iii. Culture of revival packages in banks and aggressive marketing practices prevailing in banks iv. Availability of professional services of chartered accountants for maintaining ledgers etc by way of outsourcing services. 7

HANDICAPS Past history of non-competitive environment. Excessive dependence on coercive methods of recovery. Non- professional and regulatory approach towards business. All time low in business in year

INITIATIVES INITIATIVES FOR BUSINESS : Reduction in interest rates to compete with commercial banks by concluding an MoU between Govt. of NCT of Delhi, DFC and SIDBI for reduction of cost of funds signed on 30 th June 2004 Reduction in interest rates to compete with commercial banks by concluding an MoU between Govt. of NCT of Delhi, DFC and SIDBI for reduction of cost of funds signed on 30 th June 2004 Repatriation of high cost debts to the tune of Rs 32 crores Repatriation of high cost debts to the tune of Rs 32 crores AVERAGE COST OF FUNDS STANDS REDUCED FROM 11% P.A. AS ON TO 8.5% P.A. AS ON AVERAGE COST OF FUNDS STANDS REDUCED FROM 11% P.A. AS ON TO 8.5% P.A. AS ON

REVISED INTEREST RATES S.No.CATEGORY EFFECTIVE RATE OF INTEREST REVISED PREV. SBI Rate 1. FOR LOANS UP TO RS.50,000/- 9.50% 10.5% 8.50% 9.50% 10.5% 8.50% 2. FOR LOANS ABOVE RS.50,000/- AND UP TO RS.2.00 LAKHS 10% 12% 9.50% 10% 12% 9.50% 3. FOR LOANS ABOVE RS.2.00 LAKHS AND UP TO RS LAKHS 10.5% 15% % 15% Contd.- FINANCIAL PROFILE 10

4. FOR LOANS ABOVE RS LAKHS AND UP TO RS LAKHS 10.50% OR ABOVE AS PER RISK PERCEPTION 5. FOR LOANS ABOVE RS LAKHS AND UP TO RS LAKHS 10.25% OR ABOVE AS PER RISK PERCEPTION 6. FOR LOANS ABOVE RS LAKHS % OR ABOVE AS PER RISK PERCEPTION REVISED INTEREST RATES Contd.- FINANCIAL PROFILE Based on credit assessment Based on credit assessment Based on credit assessment SBI 11

INITIATIVES FOR CUSTOMER FRIENDLY SERVICES : A.) ‘OTS’ Scheme –non-discretionary criteria for cases where loan disbursed was less than Rs 10 lacs B.) Revival package for Narela & Bawana C.) Revised OTS Scheme for PVC market at Tikri kalan D.) Revival package for Transport 12

DELHI FINANCIAL CORPORATION NEW DELHI REVIVAL PACKAGE FOR NARELA, BAWANA & OTHER INDUSTRIAL AREA  Three years moratorium period from the date of first release.  Waiver of penal/additional 4% p.a. provided entire amount of interest 15% p.a. is paid.  Overall repayment period shall be up to 10 years.  Standard Assets as on entitled to reduction of interest rate to 12%  Other NPA accounts can avail reduction to 12.75% by paying arrears of interest minus 4% penalty charges. 13

PARTICULARS (Q4) A. ( i) A. ( i) NO. OF BENEFICIARIES UNDER REVIVAL PACKAGE (RELOCATION) ii) INTEREST RECOVERED Rs. 350 lacs Rs.450 lacs B. ( i) NO. OF BENEFICIARIES UNDER OTS SCHEME OTS SCHEME (ii) LEVEL OF NPAs46.27%36.6% FINANCIAL PROFILE ACHIEVEMENTS OF REVIVAL-OTS PACKAGE 14

 THE NPAs OF THE CORPORATION HAVE REDUCED FROM 46.28% AS ON TO 36.6% AS ON AMOUNT WISE.  ABOUT 1261 CASES HAVE BEEN SETTLED DURING THE YEAR , REDUCING THE PROVISIONING FROM RS.1878 LACS AS ON TO RS.1709 LACS AS ON  HIGH COST DEBT CARRYING 11.5% OF RS CRORES FROM GNCT, DELHI & RS CRORES FROM SIDBI PREPAID THUS REDUCING THE COST OF FUND BY ABOUT RS.400 LACS.  INTEREST RATES RANGING FROM 14% TO 19% REDUCED (A). FOR NPAs TO 12.75% (ON PAYMENT OF INTEREST DUE) (B). FOR STANDARD ASSETS TO 12% P.A FINANCIAL ACHIEVEMENTS FINANCIAL ACHIEVEMENTS FINANCIAL PROFILE 15

NET PROFITS YEAR Rs. in Lacs 16

BUSINESS TRENDS 17

SECTOR – WISE SANCTIONS FINANCIAL YEAR 2005 SECTOR – WISE DISBURSEMENTS 18

19

RECOVERY PERFORMANCE 59% 51% 20

RECOVERIES 21

RECOVERY PERFORMANCE H1H1 H2H2 44.8% 45.2% 41.5% 21.7% 45% 24.5% 22

46.28% 36.6% % 23 STATUS OF NPAs

Loans and Advances TARGET Loans & Advances Provisioning Standard Assets NPAs Rs. In Lacs FINANCIAL PROFILE 24

25

COMPOSITION OF NPAs FINANCIAL PROFILE 26

RELOCATION 27

TRANSPORT 28

EQUITY DEBT RESERVES NET WORTH PROFIT AFTER TAX : % 36.51% DEBT EQUITY RATIO ( 2/4) 137:1 RETURN ON EQUITY RATIO ( 5/4 ) 7.13% CAPITAL ADEQUACY RATIO39.14% Contd… KEY FINANCIAL INDICATOR 29

LOANS AND ADVANCES IN GRAPH 30

STATEMENT OF TARGETS FOR NPA REDUCTION FY NPAs as on Likely Addition during the year To be Settled during the year NPAs likely to be on O/S Bal. NPAsNo Amount %No AmountNo. AmountNo. Amount %Amount RL SRTOs Inds. BO TOTAL

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / ProjectsCumulative Up to Target PhysicalFinancial Recovery HO BO Total NPA RL SRTOs Inds. BO Total Contd…. 32

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED. Activity / Projects1 st Quarter – TargetAchievement PhysicalFinancialPhysicalFinancial Recovery HO BO Total NPA CASES FOR SETTLEMENT /REVIVAL RL SRTOs Inds. BO Total Contd.__ 33

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED. Activity / Projects2 st Quarter – TargetAchievement PhysicalFinancialPhysical Financial Recovery HO BO Total NPA RL SRTOs Inds. BO Total Contd.__ 34

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / ProjectsCumulative as on TargetAchievement PhysicalFinancialPhysicalFinancial Recovery HO BO Total NPA RL SRTOs Inds. BO Total Contd…. 35

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects3 nd Quarter – TargetAchievement PhysicalFinancialPhysicalFinancial Recovery HO BO Total NPA RL SRTOs Inds. BO Total Contd. 36

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects4 th Quarter – TargetAchievement PhysicalFinancialPhysicalFinancial Recovery HO BO Total NPA RL SRTOs Inds. BO Total Contd. 37

STATEMENT OF ACHIEVEMENT S FOR FY AND ACTION PLAN TARGETS FOR FY Achievement Targets Sanctions RL SRTOs Inds BO Total Disbursement RL SRTOs Inds BO Total Recovery (Rs. In Lacs) Contd… 38

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED. Activity / Projects1 st Quarter – TargetAchievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO Total Disbursement RL SRTOs Inds. BO Total Contd.__ 39

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects2 nd Quarter – TargetAchievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO Total Disbursement RL SRTOs Inds. BO Total Contd. 40

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / ProjectsCumulative as on TargetAchievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO Total Disbursement RL SRTOs Inds. BO Total Contd…. 41

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects Achievement upto Achievement Upto Financial Sanction RL SRTOs Inds. BO Total Disbursement RL SRTOs Inds. BO Total Contd…. 42

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd…. Activity / Projects3 rd quarter Target Achievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO Total Disbursement RL SRTOs Inds. BO Total Contd…. 43

ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects 4th quarter to TargetAchievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO Total Disbursement RL SRTOs Inds. BO Total Contd…. 44

SUMMARY OF CASES SANCTIONED/ DISBURSED AS ON DATE ( ) NO Amt.(Rs.in lacs) A. SANCTION 1APPLICATION PENDING AS ON 01/04/ APPLICATION RECEIVED FROM 01/04/2005 TO DATE TOTAL SANCTIONED TILL DATE CLOSED/ CANCELLED / WITHDRAWN AS ON DATE PENDING FOR SANCTION B. DISBURSEMENT 7PENDING FOR RELEASE AS ON 01/04/ SANCTIONED DURING THE CURRENT F.Y TOTAL FOR RELEASE DISBURSED TILL DATE (DURING F.Y) PENDING FOR RELEASE RELOCATION DIVISION

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