Money & Banking

Kerala Financial Corporation’s annual net profit jumps 113%

Our Bureau THIRUVANANTHAPURAM | Updated on June 18, 2019 Published on June 18, 2019

Kerala Financial Corporation has posted a net profit of ₹17.70 crore for FY 2018-19, registering a growth of 113 per cent over ₹8.30 crore of the previous year.

The corporation does not publish quarterly results.

The annual accounts of the leading state industrial financing institution were adopted by the Annual General Meeting held on Monday at its head office here.

The meeting has also resolved to declare a dividend to its stakeholders with the major stakeholder, the state government's share amounting to ₹1.13 crore, an official spokesman said.

NPAs down

“The corporation had last declared dividend in FY 2014-15, but had decided to hold further dividend payouts due to profitability and NPA constraints,” he quoted Sanjeev Kaushik, Chairman and Managing Director, as saying. “But we have since improved our business volume as well as profit levels substantially and could also reduce NPAs through reforms implemented recently.”

“The corporation hopes to be able to pay dividend annually on a regular basis,” said Kaushik, who is currently undergoing a training sponsored by the Central Government.

During FY 2018-19, sanctions registered a growth of 127 per cent to ₹1,645 crore, while it disbursed ₹816 crore. The total income has grown to ₹428 crore and the operating profit to ₹31 crore.

The gross NPAs have been brought down to 5.77 per cent and net NPAs to 1.82 per cent, which makes for an industry leading performance, according to the spokesman.

The capital to risk-weighted assets ratio (CRAR) is at 19.24 per cent against the minimum of 9 per cent prescribed by the Reserve Bank of India.

‘Tremendous success’

“Kerala Financial Corporation is Kerala's first PSU to publish its audited figures in current financial year,” said EK Harikumar, Director, who chaired the annual general meeting in the absence of Sanjeev Kaushik.

“With the tremendous success of new base rate structure coupled with launch of new products like contractor’s loans and bill discounting, FY 2019-20 is set to see the portfolio crossing the ₹3,500-crore mark,” he added.

Published on June 18, 2019
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