Full Form of SFCs

SFCs (State financial corporations)

The state finance corporations (SFCs) are an integral part of institutional finance structure in the country. SFC promotes small and medium industries of the states. Besides, SFCs are helpful in ensuring balanced regional development, higher investment, more employment generation and broad ownership of industries.

• It was established in 1948.

• State financial corporation act was passed by parliament in September 1951.

• First SFCs set up in Punjab in 1953.

• At present, there are 18 SFCs (out of which 17 SFCs were established under SFC act 1951).

• Tamil Nadu Industrial Investment corporation Ltd established under the company act 1949 (18th SFCs).

• SFCs promote small and medium industries of the states.

• SFCs are helpful in ensuring balanced regional development, higher Investment, more employment generation and broad ownership of Industries.

• Act as a regional development bank.

• It has failed to meet the demand of small and medium industries.