Performance Analysis of SFCS in India: A Case Study of Haryana Financial Corporation

Abstract

State finance corporations (SFCs) have been established to cater to the needs of small and medium scale enterprises in the respective states with a special focus on spreading industrial culture in the rural, semi-urban, and backward areas of the states. Haryana Financial Corporation was set up in 1967 to cater to the industrial needs of the state of Haryana. The present study evaluated the financial and operational performance of Haryana Financial Corporation (HFC) and concluded that HFC is inefficient from almost all sides of its functioning. HFC also failed to provide sanctions and disbursements rationally to develop the state of Haryana properly. The results of Mann-Whitney U-test indicated that there is no significant difference in the growth performance HFC and all SFCs (on an average). The paper suggests that in the present competitive scenario, to make the HFCs more viable, the policy makers should pay immediate attention towards its proper monitoring and functioning.