Smooth sailing for Kerala Financial Corporation despite floods
THIRUVANANTHAPURAM: Despite post-demonetisation slowdown and the floods, the Kerala Financial Corporation (KFC), the state-run industrial financing institution, doubled its loan sanctions in the just concluded fiscal. As per the provisional figures available on March 31, the sanction touched Rs 1,640 crore, registering a growth of 127 per cent compared to the previous fiscal. With a portfolio size of Rs 2,700 crore, the KFC is the largest among state financial corporations.
The timely launch of a new segment “contractor loans” in the post-flood scenario was a huge hit with 145 sanctions to the tune of Rs 650 crore. Two other strategies that worked well for the corporation were the adoption of a competitive base rate of 9.5 per cent and restructuring of the credit department.
The disbursement of loans also registered a growth of 36 per cent to Rs 816 crore and total recoveries touched Rs 900 crore. The one-time loan settlement adalat helped mobilise Rs 75 crore and bring down the NPA to 5 per cent, down from the 8 per cent in previous fiscal. Sanjeev Kaushik, CMD of KFC, said the corporation targets Rs 5,000 crore portfolio in the next three years.