Kerala Financial Corporation, the State-based industrial financing institution, has posted a 47 per cent rise in its net profit to ₹74 crore in FY24 against ₹50 crore achieved in the previous year.
The company declared a dividend of ₹36 crore to the State government at its 71st AGM. The AGM has also declared a dividend of ₹5 per share. The State government holds 99 per cent of shares in KFC, and the other shareholders include SIDBI, SBI, LIC, etc.
The company said in a press release that the loan portfolio exceeded ₹7,000 crore for the first time, reaching ₹7,368 crore, while its net worth touched ₹1,064 crore. Total income increased to ₹868.71 crore from ₹694.37 crore last year. The gross NPA has been brought down to 2.88 per cent from last year’s figure of 3.11 per cent and net NPA is 0.68 per cent compared to last year’s 0.74 per cent.
In a message to KFC and its customers, the State Chief Minister Pinarayi Vijayan said that the Chief Minister’s Entrepreneurship Development Programme and initiatives for start-ups have enabled KFC to reach a wider section of the people.
“Through a ₹100 crore share capital infusion by the State government, the Capital Adequacy Ratio of KFC has been maintained at 25.52 per cent, enhancing its financial stability. This is ratio against the minimum of 15 per cent prescribed for NBFCs by the RBI. Government-supported schemes like CMEDP loans up to ₹2 crore, agro-MSME loans up to ₹10 crore and start-up loans up to ₹10 crore could improve the credit flow to the MSME sector. KFC is implementing the government’s policy to provide loans at low interest rates to small and medium-scale businessmen”, said KN Balagopal, Finance Minister.
KFC has sanctioned substantial loans to MSMEs, start-ups, and other sectors during the fiscal year, contributing to economic development and job creation in the region. A net NPA of less than 1 per cent indicates a strong base. This is an industry-leading performance as the NPA position is better than that of some commercial banks, said Sanjay Kaul, Chairman and Managing Director.
During the year, KFC sanctioned ₹3,336.66 crore in loans to MSMEs, start-ups and other sectors. The total loan disbursement amounted to ₹4,068.85 crore.