An analytical study of profitability and solvency of Jammu and Kashmir state financial corporation
Maryama Gul, P K Sanse
Jammu And Kashmir State Financial Corporation has been set up under the State Financial Corporation Act 1951. JKSFC has significantly advancing loans to 1st generation entrepreneurs and in growth of industry. Based on its consistent profits and operational performance JKSFC used to be rated as one of the best SFCs in the country upto the year 1990.but the prolonged turmoil from last two decades effected the business of JKSFC. This research paper analyses the profitability and solvency of JKSFC from 2010-2011to 2018-2019.the secondary data have been analyzed and judged by using trend analysis, average growth rate, profitability and solvency ratios. The results and interpretation reveal that the profitability, liquidity and solvency is declining during the research period due to poor long and short term solvency, downward in recoveries of loans and in huge revenue losses. For improving the business position of the unit and avoid from liquidation. JKSFC should take some creative and effective ideas.