Projects

The funding criterion of VAAMAA FOREX is not limited to any particular sector or industry. We are happy to lend a helping hand by funding any viable and strong business project, irrespective of the sector and the area of investment. Every Company Investment hereunder must be capable of being defined as a humanitarian investment as such term is defined by the appropriate agencies of the United Nations and by the World Bank. We already have a strong reach and a financial hold in the sectors of Warehousing; Cold storage; Food processing; Renewal Energy; Steel Plants; Real Estate; Infrastructure; Mining; Oil & Gas; Television & Film Software Production and Hospitality, amongst many more.

 

NON PERFORMING ASSETS

A LIFELINE AND A LIFETIME SOLUTION

In the world of banking, NPA has come to stay as a sticky feature in its operations. What with the RBI coming up with stringent prudential norms for classification of assets, banks lending operations are marred by the feature of rising NPAs in their books, besides negatively impacting their profit, provisioning norms, etc. Despite an empowered legal framework put in place in the form of SARFAESI Act and Debt Recovery Tribunals, recovery of loans that have become overdue and classified as NPA remains a Herculean task for the banks.

On the other side, there are large number of borrowers who slide into the NPA pit for a variety of reasons. Lack of financial planning and management; vagaries of market resulting in sudden fall in demand for the products; uncertain power supply in the case of manufacturing units severely affecting production; change in government policies and not but the least; improper assessment and delayed or restricted release of credit, particularly working capital by banks are some critical factors that affect the performance and cash flow of the borrowers. Consequently, the spectra or spectrum of NPAs starts looming on the horizon and unless timely corrective action is taken, the business/industrial unit comes to a virtual grinding halt. This has been the scenario in many cases of NPA accounts and recovery or revival efforts are undertaken mostly after the damage is done.

There is therefore an urgent need for the banks to strike a balance between smooth credit flow and maintaining good health of the assets deployed. As for borrowers, what needs to be ensured is proper utilization of funds resulting in positive operational results to meet the commitments to the bank. Incidentally, factors beyond control of borrowers affecting their performance, need to be appreciated by banks followed by a mellowed approach.

The present scenario of NPAs point to several aberrations in the approach of the banks and the attitude of borrowers, where both suffer. The ensuing litigation more often than not, creates an unbridgeable wedge between the bank and the borrower. Such instances unfortunately are on the increase in recent times. The result, ever increasing NPAs in the books of the banks and several industries falling sick and out of operation, causing unemployment, etc.

We at VAAMAA FOREX have taken due cognizance of the potentially negative impact of NPAs in the working of banks and several industries. This is not good for our country’s economy. Therefore, we came out with a unique solution to this ticklish issue that makes for a win win situation for everyone concerned. Broadly, VAAMAA FOREX would consider arranging funds for the sick accounts by way of equity to revive the unit on the one hand and ensure FULL REALISATION of dues by Banks in the process, in a structured way. Of course, each case will be decided on merits that include mainly humanitarian angle and viability to sustain the capital with moderate returns over time.

Banks and borrowers are free to approach us to know more about our structured solution.