History

  • GSFS was established in November 1992 as a wholly owned NBFC of Government of Gujarat (Government of Gujarat) with the main objects :

to advance money or provide financial assistance to the State Government for development projects, other agencies/bodies/ companies,

to finance and to promote companies engaged in industrial manufacturing, trading business & utilities and to carry on leasing, hire purchase, investment business & to provide financial consultancy services.

  • Presently redefined its objective to channelize funds from and to  Government of Gujarat-controlled entities.
  • Presently, Zero NPA NBFC registered with RBI.
  • Proven track record of regularly paying dividend to the Govt. since inception.
  • Investment Banking Division floated off as a separate company called “GSFS Capital and Securities Ltd.” on 3rd March, 1998 as per SEBI guidelines which is closed under voluntary liquidation in 2018.
  • GSFS performs role of an in-house financial intermediary.
  • GSFS Ltd. is partially substituting Banking services by channelizing surplus funds. It provides higher return and offers loans at competitive rates compared to banks/FIs to Government of Gujarat controlled entities.
  • Spread earned by GSFS remains in Government kitty instead of going to banks.
  • GSFS transfers its earnings to Government of Gujarat either by paying dividend or Capital Appreciation of Government of Gujarat investments in the companies.