State-owned Kerala Financial Corporation (KFC) has posted a net profit of Rs 50.19 crore against Rs 13.20 crore last year. The loan portfolio stands at Rs 6,529.40 crore against last year’s figure of Rs 4,750.71 crore, recording a growth of 37.44 per cent.
It is the first time KFC has crossed Rs 5,000-crore loan portfolio in a financial year, a press release said.
“This can be seen as a sign that the State’s economy is making a strong comeback post Covid. Most of the sectors, including tourism sector, have performed well. KFC has recorded its best-ever performance in its 70 years of history,” said KN Balagopal, the State Finance Minister.
“The Government aims to increase the loan size of KFC to Rs 10,000 crore and make KFC one of the best financial institutions in the country,” the Minister added.
“FY 2022-23 was the year of entrepreneurship in Kerala. Around 1.5 lakh MSMEs [micro, small and medium enterprises] were registered during this year. KFC has taken a positive approach to fund MSMEs and startups. Strong credit flow and better loan repayments helped KFC to build high-quality loan portfolio and increased revenue. Net NPA of less than 1 per cent indicates a strong base. This is industry-leading performance as the NPA position is better than some of the commercial banks,” Sanjay Kaul, Chairman and Managing Director, said.
Last year, KFC offered loans to MSMEs at an interest rate starting at 8 per cent. It is remarkable that KFC could achieve better performance without enhancing its base rate despite RBI raising the repo rate by 250 bps, he said.
During the year, KFC sanctioned Rs 3,207.22 crore loans to MSMEs, startups and other sectors. Total loan disbursement comes to Rs 3,555.95 crore
KFC could improve its recovery position through special recovery drives without resorting to coercive measures. A total of Rs 59.49 crore was collected through special recovery, he said.