2. DELHI FINANCIAL CORPORATION ACTION & ACHIEVEMENT PLAN 2005-2006 AND PRESENTATION

3. VISION STATEMENT During the period 2004-2005 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

4. VISION STATEMENT 2005-2006 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

5. 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

6. WEAKNESS i. High interest rates :- The prevailing rate of interest in the corporation was 15% as on 31.3.2004. ii. High level of NPAs :- The level of NPA stood at 46.28% as on 31.03.2004 iii. H igh cost of past borrowings :- Rs.29 crores of funds borrowed from Govt. of NCT of Delhi was carrying a rate of interest @11.5% and Rs. 3.72 Crores from SIDBI @12%. Contd___ 5

7. WEAKNESS contd V. Unprecedented outflow of standard assets:- Year 2003-04 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

8. 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

9. 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 2003- 04 8

10. 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 31.03.2004 TO 8.5% P.A. AS ON 31.03.2005 AVERAGE COST OF FUNDS STANDS REDUCED FROM 11% P.A. AS ON 31.03.2004 TO 8.5% P.A. AS ON 31.03.2005 9

11. 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.25.00 LAKHS 10.5% 15% 10.25 10.5% 15% 10.25 Contd.- FINANCIAL PROFILE 10

12. 4. FOR LOANS ABOVE RS.25.00 LAKHS AND UP TO RS.50.00 LAKHS 10.50% OR ABOVE AS PER RISK PERCEPTION 5. FOR LOANS ABOVE RS.50.00 LAKHS AND UP TO RS.100.00 LAKHS 10.25% OR ABOVE AS PER RISK PERCEPTION 6. FOR LOANS ABOVE RS.100.00 LAKHS. 10.00% 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

13. 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

14. 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 interest @ 4% p.a. provided entire amount of interest due @ 15% p.a. is paid.  Overall repayment period shall be up to 10 years.  Standard Assets as on 31.3.2004 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

15. PARTICULARS 2003-04 (Q4) 2004-05 A. ( i) A. ( i) NO. OF BENEFICIARIES UNDER REVIVAL PACKAGE (RELOCATION) 450740 ii) INTEREST RECOVERED Rs. 350 lacs Rs.450 lacs B. ( i) NO. OF BENEFICIARIES UNDER OTS SCHEME OTS SCHEME 80521 (ii) LEVEL OF NPAs46.27%36.6% FINANCIAL PROFILE ACHIEVEMENTS OF REVIVAL-OTS PACKAGE 14

16.  THE NPAs OF THE CORPORATION HAVE REDUCED FROM 46.28% AS ON 31-03-2004 TO 36.6% AS ON 31.03.2005 AMOUNT WISE.  ABOUT 1261 CASES HAVE BEEN SETTLED DURING THE YEAR 2004-05, REDUCING THE PROVISIONING FROM RS.1878 LACS AS ON 31.03.2004 TO RS.1709 LACS AS ON 31.03.2005.  HIGH COST DEBT CARRYING INTEREST @ 11.5% OF RS.29.00 CRORES FROM GNCT, DELHI & RS. 3.66 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

17. NET PROFITS YEAR Rs. in Lacs 16

18. BUSINESS TRENDS 17

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

20. 19

21. RECOVERY PERFORMANCE 59% 51% 20

22. RECOVERIES 21

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

24. 46.28% 36.6% 2005-06 19.8% 23 STATUS OF NPAs

25. Loans and Advances 20042005TARGET2005-06 Loans & Advances 14691.2216958.1320100 Provisioning1877.931709.38 1190 1190 Standard Assets 7892.5510754.5916140 NPAs 6799 67996203.283960 Rs. In Lacs FINANCIAL PROFILE 24

26. 25

27. COMPOSITION OF NPAs FINANCIAL PROFILE 26

28. RELOCATION 27

29. TRANSPORT 28

30. 1234512345 EQUITY DEBT RESERVES NET WORTH PROFIT AFTER TAX 2570.18 7247.03 2964.73 5534.91 395.09 2576.18 9643.38 3343.01 5919.19 617.84 1.62:1 10.43% 36.51% DEBT EQUITY RATIO ( 2/4) 137:1 RETURN ON EQUITY RATIO ( 5/4 ) 7.13% CAPITAL ADEQUACY RATIO39.14% Contd…. 2003-20042004-2005 KEY FINANCIAL INDICATOR 29

31. LOANS AND ADVANCES IN GRAPH 30

32. STATEMENT OF TARGETS FOR NPA REDUCTION FY-2005-06 NPAs as on 31.3.2005 Likely Addition during the year To be Settled during the year NPAs likely to be on 31.3.2006 O/S Bal. NPAsNo Amount %No AmountNo. AmountNo. Amount %Amount RL SRTOs Inds. BO 426 1280 13 2531 3363 67 267 903 80 107 657 73 525 1720 19 17 3 6 8 8 451 1500 750 1200 185 769 75 505 500 1500 10 1800 2180 60 85 140 20 40 160 20 15000 3600 700 800 TOTAL3331 6203 36.6555 17511461 39742425 3980 19.8 20100 31

33. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / ProjectsCumulative Up to 31.03.2006 Target PhysicalFinancial Recovery HO BO 5225.00 175.00 Total5400.00 NPA RL SRTOs Inds. BO 451 750 185 75 1500.00 1200.00 769 505.00 Total14613974.00 Contd…. 32

34. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED. Activity / Projects1 st Quarter 01.04.05 – 30.06.05 TargetAchievement PhysicalFinancialPhysicalFinancial Recovery HO BO 1350.00 50.00 1367.19 43.02 Total1400.001410.21 NPA CASES FOR SETTLEMENT /REVIVAL RL SRTOs Inds. BO 80 90 10 15 250.00 76.00 25.00 40.00 105 98 12 17 325.00 83.00 23.00 45.00 Total 195391.00232476.00 Contd.__ 33

35. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED. Activity / Projects2 st Quarter 01.07.05 – 30.09.05 TargetAchievement PhysicalFinancialPhysical Financial Recovery HO BO 975.00 25.00 984.66 48.80 Total1000.001033.46 NPA RL SRTOs Inds. BO 100 150 50 15 300.00 126.00 130.00 50.00 153 252 64 19 450.00 214.00 163.00 93.00 Total 315606.00488920.00 Contd.__ 34

36. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / ProjectsCumulative as on 30.09.2005 TargetAchievement PhysicalFinancialPhysicalFinancial Recovery HO BO 2325.00 75.00 2351.85 91.82 Total2400.002443.67 NPA RL SRTOs Inds. BO 180 240 60 30 550.00 202.00 155.00 90.00 258 350 76 36 775.00 297.00 186.00 138.00 Total510 997.007201396.00 Contd…. 35

37. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects3 nd Quarter 01.10.05 – 31.12.05 TargetAchievement PhysicalFinancialPhysicalFinancial Recovery HO BO 1150.00 50.00 Total1200.00 NPA RL SRTOs Inds. BO 90 200 49 20 350.00 450.00 260.00 197.00 Total 3591257.00 Contd. 36

38. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects4 th Quarter 01.01.06 – 31.03.06 TargetAchievement PhysicalFinancialPhysicalFinancial Recovery HO BO 1750.00 50.00 Total1800.00 NPA RL SRTOs Inds. BO 103 200 60 19 375.00 453.00 323.00 170.00 Total 3821321.00 Contd. 37

39. STATEMENT OF ACHIEVEMENT S FOR FY-2004-05 AND ACTION PLAN TARGETS FOR FY-2005-06 Achievement 2004-05Targets 2005-06 Sanctions RL SRTOs Inds BO 7891.85 247.27 94.71 103.05 8085 191 22 52 Total8336.888350 Disbursement RL SRTOs Inds BO 6208.10 260.17 53.72 80.86 6375 170 15 40 Total6602.856600 Recovery5935.005400 (Rs. In Lacs) Contd… 38

40. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED. Activity / Projects1 st Quarter 01.04.05 – 30.06.05 TargetAchievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO 40 5 2 8 360.00 15.00 10.00 15.00 47 4 0 8 456.15 15.79 0.00 10.65 Total55400.0059482.59 Disbursement RL SRTOs Inds. BO 30 5 2 8 270.00 15.00 5.00 10.00 64 3 0 11 331.73 11.35 0.00 10.34 Total 45300.0078353.42 Contd.__ 39

41. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects2 nd Quarter 01.07.05 – 30.09.05 TargetAchievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO 58 5 1 6 575.00 10.00 5.00 10.00 59 10 1 3 615.98 27.15 20.40 2.83 Total70600.0073666.36 Disbursement RL SRTOs Inds. BO 40 5 1 4 344.00 10.00 5.00 6.00 61 9 1 3 321.73 26.63 17.95 3.35 Total 50365.00 74 369.46 Contd. 40

42. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / ProjectsCumulative as on 30.09.2005 TargetAchievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO 98 10 3 14 935.00 25.00 15.00 25.00 106 14 1 11 1072.13 42.94 20.40 13.48 Total1251000.001321148.95 Disbursement RL SRTOs Inds. BO 70 10 3 12 614.00 25.00 10.00 16.00 125 12 1 14 653.26 37.98 17.95 13.69 Total95 665.00152722.88 Contd…. 41

43. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects Achievement upto 30-11-04 Achievement Upto 30.11.05 Financial Sanction RL SRTOs Inds. BO 5755.28 202.48 94.71 52.74 1234.02 62.59 20.40 15.48 Total6105.211332.49 Disbursement RL SRTOs Inds. BO 5325.43 210.14 53.48 46.14 865.13 48.93 19.38 14.79 Total 5635.19948.23 Contd…. 42

44. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd…. Activity / Projects3 rd quarter 01.10.05 - 31.12.05 Target Achievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO 960 29 1 10 4400.00 86.00 2.00 12.00 Total10004500.00 Disbursement RL SRTOs Inds. BO 860 24 1 15 3910.00 70.00 2.00 18.00 Total9004000.00 Contd…. 43

45. ACTION PLAN IN RESPECT OF DELHI FINANCIAL CORPORATION PHYSICAL/FINANCIAL TARGETS TO BE ACHIEVED Contd… Activity / Projects 4th quarter 1.1.06 to 31.3.06 TargetAchievement PhysicalFinancialPhysicalFinancial Sanction RL SRTOs Inds. BO 670 20 1 9 2750.00 80.00 5.00 15.00 Total7002850.00 Disbursement RL SRTOs Inds. BO 425 20 1 5 1851.00 75.00 3.00 6.00 Total4511935.00 Contd…. 44

46. SUMMARY OF CASES SANCTIONED/ DISBURSED AS ON DATE (11.11.2005) NO Amt.(Rs.in lacs) A. SANCTION 1APPLICATION PENDING AS ON 01/04/2005 23254.94 2APPLICATION RECEIVED FROM 01/04/2005 TO DATE 1221401.88 3TOTAL 1451656.82 4SANCTIONED TILL DATE 1261253.75 5CLOSED/ CANCELLED / WITHDRAWN AS ON DATE 6200.35 6PENDING FOR SANCTION 13202.72 B. DISBURSEMENT 7PENDING FOR RELEASE AS ON 01/04/2005 11808.34 8SANCTIONED DURING THE CURRENT F.Y 1261253.75 9TOTAL FOR RELEASE 1372062.09 10DISBURSED TILL DATE (DURING F.Y) 96798.01 11PENDING FOR RELEASE 391264.08 RELOCATION DIVISION

47. -- SHOW ENDS --