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Kerala Financial Corporation (KFC) has declared a dividend of five per cent for the year 2013-14 on a profit of ₹41.34 crore.
This was taken on record at the annual general meeting of the company held here on Wednesday, according to P Joy Oommen, Chairman and Managing Director.
May raise funds
The company proposes to achieve a portfolio size of ₹2,500 crore by 2015 and may raise non-SLR bonds to the tune of ₹400 crore.
It would also raise public deposits after completing the necessary formalities during the second half of 2014-15, Oommen said.
These decisions come on the back of what Oommen described as achievement of substantial growth in terms of sanction, disbursement and recovery during 2013-14.
Sanctions have registered a growth of 49.63 per cent over the previous year to ₹989.62 crore. Disbursements have grown 58.58 per cent to ₹754.73 crore.
Stiff competition
Total recoveries improved 4.61 per cent to ₹565.13 crore, while the loan portfolio looked up 28.47 per cent to ₹1,800.37 crore.
Net NPAs have been contained to 0.35 per cent, while the net worth rose 8.09 per cent to ₹414.84 crore. Capital adequacy came in at 21.57 per cent against the prescribed minimum of nine per cent.
Kerala Financial Corporation has been facing stiff competition from commercial banks and other financial institutions, Oommen said.
It mounted a counter-offensive by raising the rebate for prompt repayment and reducing lending rates.
It is the only State Financial Corporation to have been paying dividend consistently and has emerged as the best performing in terms of profitability and level of NPAs.
Special thrust
“We plan to sanction ₹1,050 crore and disburse around ₹880 crore with special thrust to manufacturing sector through the interest subvention scheme supported by the State Government,” he said.
The company has entered into an arrangement with TiE (The Indus Entrepreneurs) for assistance in appraisal of high technology projects.
It also proposes to establish a women entrepreneur cell in the current financial year. A venture capital fund in association with the Kerala State Industrial Development Corporation and other State-focused funds would be another initiative.
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