Rajasthan Financial Corporation (RFC) has emerged as a remarkable turnaround story in India’s public finance landscape — transitioning from persistent losses to sustainable profitability. In an exclusive conversation, Dr. Subodh Agarwal, IAS, Chairman & Managing Director of RFC, shares insights on how institutional discipline, state support, and leadership vision have transformed RFC into a trusted partner for MSME growth in Rajasthan.
RFC has recorded an inspiring turnaround — from losses in 2019–20 to profitability in 2024–25. How did this transformation take shape?
It has indeed been a journey of revival and resolve. When we look back at RFC’s position in 2019–20, the corporation was facing consistent losses and low confidence among stakeholders. The turnaround was achieved through a mix of fiscal discipline, sharper credit appraisal, proactive NPA management, and cost rationalisation.
We focused on operational efficiency — making sure every rupee lent translated into productive, recoverable growth. This has helped RFC post a profit of ₹19.92 crore in FY 2024–25, moving from red to resilient within a few years.
The ₹50 crore capital infusion by RIICO has been widely discussed. How critical was this support to RFC’s revival?
The government in the budget announcement had committed ₹50 crore from RIICO, which has come, and another ₹50 crore from the government kitty itself (total- 100 cr), out of which ₹10 cr has already come, and ₹40 cr shall be coming soon.
So we shall get a total support of 100 cr in this financial year, out of which 10 cr from the state government has come.
This partnership reflects the Government of Rajasthan’s commitment to strengthening financial institutions that serve small and medium enterprises — the real engines of our state’s growth and employment. We view this not just as financial support but also as a vote of confidence in RFC’s renewed direction and purpose.
MSME financing has always been central to RFC’s mission. How are you re-aligning strategies to empower small entrepreneurs?
Our renewed focus is on MSMEs — especially those in manufacturing, services, and rural clusters. Over the past year, our loan sanctions have more than doubled. This shows that entrepreneurs across Rajasthan are once again seeing RFC as a reliable partner in their journey.
We are also simplifying processes, strengthening appraisal mechanisms, and ensuring faster disbursement. By doing so, we want to make finance accessible, responsive, and growth-oriented for every small business in Rajasthan.
RFC has set a target of ₹200 crore in lending for 2025–26. What steps are being taken to sustain this growth momentum?
Our approach is rooted in sustainability. The ₹200 crore target is ambitious, but achievable with the systems we’ve put in place. We’re adopting technology-driven monitoring, refining our risk assessment models, and expanding our reach to underserved districts.
At the same time, we are strengthening our recovery processes and ensuring that every loan supports real enterprise development. The goal is not just to lend more, but to lend better — fostering entrepreneurship that generates employment and regional prosperity.
What role have leadership and collaboration played in RFC’s transformation journey?
Leadership at every level has been critical. I would particularly acknowledge Shikhar Agarwal, IAS, Chairman, RIICO, whose timely decisions and support have been instrumental in strengthening RFC.
Equally important is the dedication of our internal team — officers, staff, and field functionaries — who embraced the challenge and worked relentlessly to bring RFC back to life. This revival is a collective success story built on commitment, teamwork, and trust.
Finally, how do you envision RFC’s role in Rajasthan’s industrial and economic ecosystem going forward?
RFC’s revival is not just a financial milestone — it’s about redefining the partnership between the state and enterprise. We see ourselves as catalysts for inclusive growth, enabling MSMEs to thrive and contribute meaningfully to Rajasthan’s economic landscape.
Our mission is to ensure that finance becomes a facilitator, not a barrier, for entrepreneurship. The next phase is about scaling responsibly, innovating continuously, and sustaining this culture of trust and transparency.