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KFC reports Rs 18 crore net, targets Rs 4k crore portfolio

The Corporation had recently brought in a centralised business review mechanism wherein entrepreneurs are given in-principle clearance for new loans within seven days.

Published: 31st July 2020 07:02 AM  |   Last Updated: 31st July 2020 07:02 AM   |  A+A-

File photo of loan settlement adalat in progress at the Kerala Financial Corporation’s Head Office at Vellayambalam in Thiruvananthapuram on Tuesday | B P Deepu

By Express News Service

THIRUVANANTHAPURAM: The Kerala Financial Corporation (KFC) posted a net profit of Rs  18.37 crore for the financial year ended March 31, 2020. It saw the portfolio grow by 24.88 per cent, disbursements by 77.27 per cent, recovery 20.23 per cent and operating profit by 46.03 per cent, according to the annual accounts adopted by the Corporations’ annual general meeting. The net worth of the corporation stood at Rs  584.75 crore. it achieved a capital to risk-weighted assets (CRAR) ratio of 22.40 per cent as against the minimum of 9 per cent prescribed by RBI. However it has decided to take a conservative approach towards dividend and has decided not to announce one this year.

“KFC has emerged as the best-performing state financial corporation in the country in terms of profitability and NPAs. Based on the RBI directions to conserve the capital and to absorb losses due to the uncertainty caused by Covid-19, the corporation has decided to hold dividends this year,” said Sanjay Kaul, CMD of KFC. “The Corporation could bring down gross NPA to 4.74 per cent and net NPA to 1.45 per cent, which are the best in the industry. We expect a rating upgrade this year,” he added.

The Corporation had recently brought in a centralised business review mechanism wherein entrepreneurs are given in-principle clearance for new loans within seven days. The KFC has set a portfolio target of Rs  4,000 crore this year focusing on MSME sector and startups. It aims to assist 1,000 MSME units with the newly launched Chief Minister’s Entrepreneurship Development Programme.

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