The Hindu Business Line : 380% jump in KSFC’s profit after tax

Better recoveries, which helped in narrowing the non-performing assets incidences enabled Karnataka State Financial Corporation (KSFC), a 380 per cent profit after tax for the financial year 2007-08.

The corporation’s net rose to Rs 62.17 crore during the period against Rs 12.95 crore in 2006-07. An official release after the company’s AGM said the corporation sanctioned Rs 368.15 crore, which increased the cumulative loan sanctions to Rs 8,536 crore by March 31.

During the year, it disbursed Rs 303.13 crore and made a recovery of Rs 561.14 crore. During the year, KSFC also improved its interest recovery by 13.53 per cent to reduce the NPA level by nine per cent.

With the State Government’s support of Rs 68 crore in FY 2008 to help the small borrowers for a one-time settlement of their outstanding loans, KSFC saw an improvement in its finances for future business.

The corporation also consolidated its fee-based business such as distribution of non-life insurance products and UTI Mutual Fund schemes during the year. The fee-based income from these activities rose significantly to Rs 80 lakh from Rs 30 lakh in the previous financial year.

Mr Kaushik Mukherjee, Managing Director said that KSFC was planning to enter the Micro Finance business.

More Stories on : Financial Institutions | Financial Performance | Karnataka

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