Kerala Financial Corporation reports record net profit
The Corporation's total loan portfolio crossed the ₹ 8,000 crore mark for the first time, reaching ₹ 8011.99 crore.
Its net worth also rose to ₹ 1,328.83 crore, reflecting strong financial health, an official release said here on Sunday.
KFC's improved performance comes on the back of continued government support.
The Kerala government has so far infused ₹ 920 crore in share capital, including ₹ 500 crore during the current administration.
This backing has enabled the Corporation to provide loans to micro, small and medium enterprises (MSMEs) at interest rates starting from five per cent, said State Finance Minister K N Balagopal in a social media post.
In FY 2024–25, KFC received an additional ₹ 200 crore in share capital, which helped it improve its Capital Adequacy Ratio to 28.26 per cent, well above the 15 per cent required by the Reserve Bank of India for non-banking financial companies.
The Corporation also reduced its Gross Non-Performing Assets (NPA) to 2.67 per cent from 2.88 per cent, while Net NPA dropped to 0.61 per cent from 0.68 per cent.
KFC sanctioned ₹ 4002.57 crore in loans during the year, with disbursements at ₹ 3918.40 crore and recoveries of Rs.3980.76 crore.
'This performance highlights KFC's sound lending practices. With a Net NPA of less than 1 per cent, we remain committed to strengthening Kerala's MSME and startup ecosystems,' said Managing Director Dr Sriram Venkitaraman IAS.
Through the Chief Minister's Entrepreneurship Development Programme (CMEDP), KFC has supported 3028 MSMEs with ₹ 1030.89 crore in loans at 5 per cent interest, creating around 81,634 jobs.
Under the Startup Kerala Scheme, 72 startups received collateral-free loans totalling ₹ 95.20 crore.
Looking ahead, KFC aims to expand its loan portfolio to ₹ 10,000 crore by the end of 2025.
To achieve this, the Corporation will broaden its focus to include tourism and other emerging sectors.
It also plans a major digital upgrade to improve services and operational efficiency, Venkitaraman added.
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