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Kerala Financial Corporation Makes Highest-Ever

THIRUVANANTHAPURAM: The Kerala Financial Corporation has posted a sterling performance in its  all-round operations during the financial year 2011-12, including, critical operational area

Published: 06th April 2012 07:04 AM  |   Last Updated: 16th May 2012 07:21 PM   |  A+A-

THIRUVANANTHAPURAM: The Kerala Financial Corporation has posted a sterling performance in its  all-round operations during the financial year 2011-12, including, critical operational areas such as disbursement and recovery of loans, collection of interest income, reduction of Non-Performing Assets and highest-ever profit.

The provisional statement of accounts of the Corporation for 2011-12 has recorded a substantial increase in the sanction and disbursement of loans at Rs 539.02 crore and Rs 464.68 crore respectively, against the corresponding figures of the preceding year at Rs 507.06 crore and Rs 443.44 crore.

Recovery of loans has also gone up from Rs 507.06 crore in 2010-11 to Rs 464.68 crore in the end fiscal. The income through interest on loans stood at Rs 173.98 crore in the past financial year, while it was only Rs 131.84 crore in the preceding year. The net profit rose from Rs 36.4 crore to Rs 45 crore. The NPA dropped phenomenally from Rs 1.88 crore to Rs 1.5 crore.

While most of the other state financial corporations are charging an interest rate of more than 16 per cent, the KFC is charging only 13 per cent on its loans. Though the Corporation has reduced its margin of  income by lowering its interest rate, it has been able to earn profit mainly due to improvement in its quality of assets, realistic policies to advance loans, recovery and compromise settlement in genuine cases. The NPA level is the lowest in the history of the Corporation. The per employee productivity has sharply gone up to more than Rs 10 lakh per annum.

Till four year’s back, it was pegged on a negative scale.

The Corporation is also optimising its fund management through daily monitoring of funds through an elaborate process on asset liability matching. Recovery procedures through e-sale has been improved to ensure transparency and eliminates malpractice in auction of properties taken over from defaulting borrowers.

The Corporation intends to declare a dividend of six per cent for the last fiscal to its shareholders. With Government of Kerala holding 90 per cent equity of KFC, an amount of around Rs 14 crore will be paid to the state.

The Corporation has targeted sanctioning of loans of Rs.600 crore and disbursement of Rs 500 crore for 2012-13 fiscal.



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