Kerala Financial Corporation to get rid of 376 bad loans

The loan settlement adalat of Kerala Financial Corporation gave approval for closing 376 NPAs which would fetch Rs 215 crore. 

Published: 11th June 2018 02:55 AM  |   Last Updated: 11th June 2018 02:55 AM   |  A+A-

Express News Service

THIRUVANANTHAPURAM: The loan settlement adalat of Kerala Financial Corporation gave approval for closing 376 NPAs which would fetch Rs 215 crore.  The first-ever onetime settlement adalat was organised by the KFC as part of its effort to clean up the balance sheet and become a professional and responsible financier.

Retired district judge Satheesh Chandra Babu presided over the adalat held over two days. KFC’s NPA burden is Rs 700 crore from 2,000 accounts. The maximum number of bad loans sanctioned for settlement was in Thiruvananthapuram: 126 for an amount of `60 crore.  

A couple of applications rejected at the adalat will be considered by the next director board to examine the possibility of a more relaxed offer. Meanwhile, the corporation’s earlier announcement to transfer the remaining NPAs to an asset reconstruction company may not materialise. Sources said the ARCs are reluctant to operate in Kerala owing to the huge registration charge levied by the government on transfers.

Kerala charges 10 percent registration fees while most other states have fixed the upper ceiling of registration fees at Rs 1 lakh. In the absence of an asset reconstruction company, the corporation will have to opt for recovery steps on its own. It is crucial for the corporation to clear its NPAs to secure low-cost funds.   

Stay up to date on all the latest Kerala news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp