Did Kerala Financial Corporation Achieve Its Best Performance Ever?

Thiruvananthapuram, May 24 (NationPress) The Kerala Financial Corporation (KFC), which serves as the leading development financial institution in the state, has announced a record-setting performance for the financial year ending March 31, 2025.

KFC's net profit reached Rs 98.16 crore, representing a significant 32.56% rise from the previous year, making it the highest profit recorded in its history.

The corporation's loan portfolio surpassed the Rs 8,000 crore mark for the first time, totaling Rs 8011.99 crore, while its net worth climbed to Rs 1328.83 crore, showcasing strong financial growth.

State Finance Minister K.N. Balagopal stated, “The state government has injected Rs 920 crore in capital into KFC, including Rs 500 crore during this administration. This support has empowered KFC to provide loans to MSMEs at interest rates beginning at only 5%. KFC's growth reflects the overall enhancement of Kerala's industrial sector.”

The infusion of Rs 200 crore in share capital for FY 2024–25 has significantly bolstered KFC's Capital Adequacy Ratio (CRAR), which now stands at 28.26%, far exceeding the 15% minimum required by the RBI for NBFCs.

Throughout the year, KFC has approved loans totaling Rs 4002.57 crore for MSMEs, Startups, and various sectors.

The total disbursement of loans reached Rs 3918.40 crore, while loan recovery totaled Rs 3980.76 crore.

“KFC's impressive financial results, especially its industry-leading low net NPA of under 1%, reflect the Corporation's careful lending strategies. This remarkable performance positions KFC as a pivotal force in advancing Kerala's industrial and entrepreneurial landscape. We remain dedicated to supporting Kerala's MSME and startup ecosystems, fostering sustainable economic growth and job creation,” said Sriram Venkitaraman, MD of KFC.

Under the CM’s Entrepreneurship Development Programme (CMEDP), KFC has so far assisted 3028 MSMEs with Rs 1030.89 crore in loans at 5% interest, generating an estimated 81,634 direct and indirect jobs.

Additionally, through the Startup Kerala Scheme, 72 startups have received Rs 95.20 crore in collateral-free loans, encouraging innovation and entrepreneurship across the State.

KFC aims to achieve a loan portfolio of Rs 10,000 crore by the end of this year.

To reach this ambitious goal, the corporation plans to expand its operations into new sectors while continuing its support for MSMEs, the tourism sector, and startups.

“To boost operational efficiency and provide enhanced services, KFC will undergo a comprehensive digital transformation this year. This will include modernizing its offices and infrastructure, as well as offering quality training to its staff,” added Sriram.