Gujarat State Financial Corporation has appointed Shri Lalit Gupta as a Director on its Board, replacing Shri Daiya P.L., following a nomination by Life Insurance Corporation of India. The change in the Board's composition is effective June 01, 2026, pursuant to Section 10(d) of the State Financial Corporations Act, 1951. Consequently, Shri Daiya P.L. ceased to be a Director with effect from May 31, 2026.

The appointment was communicated via a letter dated May 19, 2026, from Life Insurance Corporation of India. Shri Lalit Gupta assumed office on June 01, 2026, after completing the necessary pre-joining formalities. The Corporation confirmed that Gupta is not debarred from holding the office of Director by any order passed by the Securities and Exchange Board of India.

Shri Lalit Gupta is a Senior Divisional Manager at LIC of India, Gandhinagar. He holds a B.Com, M.Com, and is a Fellow of the Insurance Institute of India. Aged 52, he started his career with LIC in 1993 and possesses 33 years of experience across various departments. Prior to his current role, he served as Marketing Manager at the Udaipur (Raj.) Division.

The disclosure confirms that Gupta is not related to any other Director or Key Managerial Personnel of the Corporation. Additionally, he does not hold any securities of Gujarat State Financial Corporation in his individual capacity and is not a director in any other company, corporation, or association of persons.

Details of Appointment

Gujarat State Financial Corporation reported a net loss of ₹12728.91 lakh for the financial year ended March 31, 2026, widening from the loss of ₹12534.01 lakh recorded in the previous year. The corporation’s total income from operations for the year stood at ₹1701.04 lakh, compared to ₹1534.34 lakh in the prior year. Due to the reported loss, the Board of Directors did not declare any dividend for the financial year.

The statutory auditors, M/s. Pankaj R. Shah & Associates, issued a qualified opinion on the financial statements. The auditors noted that the financial statements are prepared on a going concern basis despite the corporation's net worth being completely eroded and defaults in repayment obligations due to liquidity problems. This treatment is not in accordance with Accounting Standard (AS)-1, and the effect on the financial statements is not ascertainable. Additionally, dues payable to the Government of Gujarat are subject to confirmation and adjustment, with the impact on interest and penal interest currently unascertainable.

Financial Performance

The corporation’s operating profit before provisions and contingencies was negative at ₹(12733.01) lakh for the year ended March 31, 2026. Exceptional items for the year included a diminution in the value of investments amounting to ₹(56.86) lakh and a net write-back of provision for NPAs of ₹60.96 lakh. The paid-up equity share capital remained constant at ₹8911.40 lakh.

Asset Quality and Reserves

The Gross NPA and Net NPA ratios both stood at 100% as of March 31, 2026. The reserves excluding revaluation reserves were negative at ₹(328194.54) lakh, indicating a significant erosion of net worth. The corporation’s total assets were valued at ₹23360.74 lakh, comprising primarily investments of ₹22108.36 lakh and other liabilities and provisions of ₹276014.98 lakh.

Board Decisions

The Board of Directors has recommended the appointment of M/s. J.H. Mehta & Co, Chartered Accountants, as statutory auditors for FY 2026-27. The 66th Annual General Meeting is scheduled to be held in physical mode on July 30, 2026. M/s. Spanj & Associates, Company Secretaries, were appointed as the scrutinizer for the remote e-voting and poll process.