About Us

Gujarat State Financial Services Ltd. (GSFS) is a Government of Gujarat undertaking and is registered with R.B.I as a Non Banking Financial Company (NBFC). It has been given the mandate by the State Government to manage the surplus funds of various Government of Gujarat controlled organizations and PSUs of the State. Thus, it acts as an in- house fund manager to the various state owned entities. The State Government has directed all the State Government owned entities to park all their surplus funds with GSFS. In view of this, GSFS offers two options to the state owned entities for placement of their surplus funds, namely,

  1. Placement for a fixed term having different tenors. GSFS deploys these funds primarily with the GoG entities which requires funds for short/medium/longer tenure at a competitive rate, and

  2. For very short term wherein the concerned entities may place the funds for even less than 15 days and thereby earn interest on it. GSFS deploys these funds in the liquid instruments in order to honour the commitments of its clients. It provides fix interest which is presently 5.75% p.a. effective from 16th October, 2023 to the concerned entities. This way, GSFS enables the state owned entities to earn interest on their funds for even less than 15 days which otherwise would have remained idle in the current accounts with banks.

The funds received by GSFS from the Government entities are provided to the other state owned entities, which are in need of funds, at a lower rate as compared to the other banks. This saves them from high borrowing costs. Moreover, GSFS also helps only the GoG undertakings by providing finance at a cheaper rate to enable it to prepay its high cost debts which even run into hundreds of crores of rupees and thereby reduces substantial interest burden on such GoG undertakings, ultimately helping Government of Gujarat.

In short, the idea of formation of GSFS is to manage in-house funds of state owned entities. This results into the circulation of funds of Government entities within the ambit of State Government and its entities. Therefore, on one hand, the state owned entities get the benefit of getting attractive return on their funds while on the other hand these funds are made available to other such entities at a lower rate as compared to the market rate. All this ultimately provides a favourable impact on to the Government kitty.