The Hindu Business Line : KSFE to expand business

Advertisement

Thiruvananthapuram Feb. 14 The State-run Kerala State Financial Enterprises (KSFE) is charting a roadmap to position itself as a key player in the Government's resources mobilisation efforts. As a first step, the company is expanding its chits business to achieve a total monthly prize money of Rs 1,000 crore within five years from around Rs 160 crore as of now.

The Finance Minister of Kerala, Mr Thomas Isaac, said here on Wednesday that the director board was preparing a vision document on how to tap the full potential of chit business in the State, which was now largely confined to the unorganised sector.

Satellite Branches

He noted that chits had been a comfortable investment option for families and there was vast scope for KSFE to expand business by introducing new instruments like daily and weekly chits, apart from the existing monthly chits.

The new business proposition incorporates opening of satellite branches in hitherto untapped areas with the necessary staff for collection of daily and weekly chit amounts. The immediate focus of the initiative will be the Malabar region. The satellite branches will be opened on a pilot basis in select areas of the Malabar region and if found successful, the network will be expanded to cover the rest of the State. At present, KSFE has 267 regular branches and five regional offices.

Mobilisation Target

The Minister said that plans were also afoot to bring non-resident Keralites also into the chits business fold. Since there might be restrictions on remitting the chit amounts directly to KSFE from foreign countries, the company was looking at the possibility of entering into tie-ups with banks for the purpose, he said.

More Stories on : Financial Institutions | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page