Gujarat State Financial Corpor

What Gujarat State Financial Corpor does

Gujarat State Financial Services Ltd. (GSFS) is a wholly-owned, RBI-registered Non-Banking Financial Company (NBFC) of the Government of Gujarat, established in November 1992 and headquartered in Ahmedabad. The company operates as an in-house financial intermediary mandated by the State Government to manage the surplus funds of all Government of Gujarat controlled entities and state PSUs, channeling deposits from entities with surplus liquidity to entities requiring funds for short, medium, and longer-tenure needs. By performing this intermediation function internally, GSFS retains the interest rate spread within the government ecosystem rather than ceding it to external banks.

GSFS offers two core deposit products — Inter Corporate Deposits (ICD) with tenors from 15 days to 3 years at interest rates ranging from 6.00% to 7.00% p.a., and a Liquid Deposit Scheme (LDS) at 5.00% p.a. for tenors of less than 15 days (effective September 1, 2025) — alongside lending products comprising Lines of Credit and Short/Medium Term Loans provided to GoG entities at rates lower than those of commercial banks. The company records a zero non-performing asset track record since inception, has paid dividends to the Government of Gujarat every year since 1992, and uses no proprietary technology platform; operations run on standard email-based relationship channels with dedicated functional contacts for ICD/LDS placement, loans, accounts, legal, and IT. Its fee-based subsidiary, GSFS Capital Securities Ltd., is undergoing voluntary liquidation, leaving the core NBFC as the sole line of business.

Revenue is generated primarily through the interest-rate spread between funds accepted from GoG depositors and funds advanced to GoG borrowers, supplemented historically by fee-based financial consultancy through the now-winding-down subsidiary. The go-to-market is sales-led but entirely mandate-driven — the State Government has directed all state-owned entities to park surplus funds with GSFS — with no retail or private-sector customer acquisition. Geographic scope is restricted to Gujarat, India.

Name

Gujarat State Financial Corpor

Legal name

Gujarat State Financial Services Ltd.

Website

https://gsfs.co.in

Company type

Private

Founded year

1992

Operating status

Operating

Headcount range

51–100 employees

Short description

Gujarat State Financial Services Ltd. (GSFS) is a wholly-owned RBI-registered NBFC of the Government of Gujarat, functioning as an in-house financial intermediary that accepts surplus funds from and extends loans to Government of Gujarat controlled entities and state PSUs.

Ownership category

akta.pro rank

Product category

Non-Banking Financial Services (Government NBFC)

NAICS

Savings Institutions and Other Depository Credit Intermediation (52218), Depository Credit Intermediation (5221)

SIC

Federal & Federally-Sponsored Credit Agencies (6111)

akta.pro primary industry

Reconciliation, Ledgering & Money Movement Ops (Sub-ledgers, Settlement, Reporting) (FSAGALAL)

Keywords

• Inter corporate deposits
• Government NBFC lending
• Liquid deposit scheme
• Fund management services
• Short term loans

Headquarters

HQ city

Ahmedabad

HQ country

India

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Others

Revenue model

1. Interest Rate Spread: GSFS earns revenue from the spread between interest paid to depositors (GoG entities placing surplus funds in ICD/LDS) and interest charged to borrowers (GoG entities borrowing funds). The company pays competitive rates to attract deposits and provides loans at lower rates compared to banks, creating value for the state government ecosystem.
2. Fee-Based Services: Formerly provided fee-based services through GSFS Capital and Securities Limited, which is currently undergoing voluntary liquidation. Previously offered financial consultancy and related services.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

GSFS acts as an in-house financial intermediary for the Government of Gujarat ecosystem, accepting surplus funds from Government of Gujarat controlled entities through Inter Corporate Deposits (ICD) and the Liquid Deposit Scheme (LDS), and deploying those funds as Lines of Credit and Short/Medium Term Loans to other GoG entities at competitive rates. The company earns the spread between deposit and lending rates, keeping value within the government kitty instead of external banks.

Product overview

GSFS operates as a unified financial services platform for Government of Gujarat entities, offering two primary deposit products (Inter Corporate Deposit and Liquid Deposit Scheme) alongside financial assistance in the form of loans and lines of credit. The company functions as an in-house fund manager, channelizing surplus funds from state-controlled entities to those requiring financing, thereby creating an internal circulation of funds within the state government ecosystem.

Differentiator

Problem solved

Functional benefit

Products and services

• Inter Corporate Deposit (ICD) A fund placement product offered by GSFS to Government of Gujarat entities allowing deployment of surplus funds for fixed tenors ranging from 15 days to 3 years at competitive interest rates between 6.00% and 7.00% p.a., with auto-renewal facility available.
• Liquid Deposit Scheme (LDS) A short-term deposit facility enabling Government of Gujarat entities to earn interest on surplus funds placed for very short tenors, even less than 15 days, at 5.00% p.a. effective from 1st September 2025.
• Loan against ICD A loan facility extended up to 85% of the ICD amount at an interest rate 1% above the applicable ICD rate for the original deposit period, available to Government of Gujarat entities placing ICDs with GSFS.
• Line of Credit
• Short Term and Medium Term Loan

Quantifiable outcome

• Zero NPA (Non-Performing Assets) as an RBI registered NBFC
• +2 more outcomes

Named customers2 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators3 records

Recent moves5 records

Expansion highlights4 records

Broad incumbents

• Karnataka State Financial Corporation (KSFC): Karnataka state-owned financial corporation providing financial assistance to industrial and commercial enterprises. Comparable state-level financial intermediary with a similar charter.
• Tamil Nadu Industrial Development Corporation (TIDCO): Tamil Nadu state-owned financial institution providing financial assistance to state entities. Operates as a state-level financial intermediary with a broader industrial development mandate than GSFS.
• Rajasthan State Industrial Development and Investment Corporation (RIICO): Rajasthan state-owned financial and investment corporation. Comparable state-level financial institution with industrial and infrastructure financing focus.
• Andhra Pradesh State Financial Corporation (APSFC): Andhra Pradesh state-owned financial corporation providing financial assistance to state entities. Similar state-government-owned financial intermediary structure.
• Maharashtra State Financial Corporation (MSFC): Maharashtra state-owned financial institution offering financial services to state entities. Similar government-owned financial intermediary structure serving state-controlled entities.
• Punjab State Industrial Development Corporation (PSIDC): Punjab state-owned industrial development and financial corporation. Comparable state-level financial institution serving state-controlled entities.
• National Bank for Agriculture and Rural Development (NABARD): Central government-owned development bank providing financial intermediation for agricultural and rural development. Comparable structure as a government-owned financial intermediary with a specialized mandate.
• Small Industries Development Bank of India (SIDBI): Central government-owned financial institution providing financial intermediation services. While much larger and federal in scope, it operates in a comparable role of channeling funds to eligible entities within its mandate.

Direct peers

• Kerala State Financial Enterprises (KSFE): Kerala state government-owned NBFC that mobilizes funds from government employees and provides financial services. Similar state-owned financial intermediary model acting as a captive fund manager for its state government ecosystem.

Regional players

• Goa State Infrastructure Development Corporation (GSIDC): Goa state-owned development and financial institution serving state entities. Comparable state-government-owned financial intermediary model, though smaller scale than GSFS.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/government-of-gujarat-finance-department

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Gujarat State Financial Corpor