Kerala Financial Corporation (KFC), Kerala based pioneer industrial financing institution, has posted a net profit of Rs 6.58 crore for the FY 2020-21. The annual accounts of the institution were adopted by the Annual General Meeting held on August 31, 2021.
During FY 2020-21, sanctions registered a growth of 150 per cent to Rs 4147 crore, while it disbursed Rs 3709 crore. The total income has grown to RS 491 crore.
“Even though the economy is under severe stress due to covid-19, the Corporation could position itself well and was able to improve its performance, in terms of ever time high loan portfolio growth, higher sanctions, disbursements and recovery. The Corporation could also significantly curb the NPA levels also”, said KFC CMD Sanjay Kaul.
The Gross NPAs have been brought down to 3.58 per cent and net NPAs to 1.48 per cent, which makes for an industry leading performance.
The net worth of the Corporation has moved up by 16 per cent to Rs 678.35 crore and the capital to risk-weighted assets ratio (CRAR) is at 22.85 per cent.
“In order to conserve the capital and to absorb losses due to the uncertainty caused by the COVID-19 pandemic, the Corporation had decided to hold dividends during this year,” Sanjay Kaul said.
As part of COVID-19 Relief package, the Corporation recently announced three new loan schemes. ‘Startup Kerala Scheme’, Special scheme for units in Industrial Estates and the revamped Chief Minister’s Entrepreneurship Scheme (CMEDP) for MSME units.
With reduced interest rates and fast track loan processing system introduced, the Corporation targets new loan sanctions of Rs 4500 crore this year. The Corporation also aims to exceed the loan portfolio size above Rs 5000 crore by the financial year.