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Kerala Financial Corporation, a leading State Financial Corporation, has surpassed a historic milestone of ₹5,000 crore in loan assets with the December 31, 2020-number clocking in at ₹5,022 crore, a whopping 176 per cent increase over the previous year’s ₹2,838 crore.
“We have achieved the highest growth among all government-owned State Financial Corporations in the country,” said Tomin Thachankari, Chairman and Managing Director. This has surpassed expectations and has been facilitated by fresh loan sanctions of ₹3,385 crore so far in the current financial year.
Lending more despite pandemic
Total loan disbursals of ₹798 crore during the previous year have galloped to ₹2,935 crore during the period under reference. The performance is especially impressive since it was achieved at a time when banks and financial institutions have been reluctant to sanction loans due to the pandemic, he said.
“Not many State Financial Corporations are active now except in South India and a few elsewhere. Last year, we took up bulk lending to public sector units such as KSEB Ltd and Kerala State Civil Supplies Corporation. Crusher and quarry sector too has accounted for significant funding. Introduction of an escrow mechanism made lending in the real estate sector easier,” Thachankari told BusinessLine .
Defaulters referred to Cibil
The Corporation has also made a mark in the service sector by taking over a significant number of loans from other banks. Repayments also have shown an upward trend surging to ₹1,871 crore from ₹968 crore in last year. This was prompted by the transfer of defaulter information to Cibil and tightening of recovery measures. Gross non-performing assets have since dipped to 3.4 per cent, Thachankari said.
“With details of defaulters being uploaded on the Cibil database, recoveries have showed a sharp uptrend. Defaulter details are now being shared with other credit information companies such as CRIF, Experian and Equifax as well. This serves as a warning for those who do not pay up intentionally.”
Loan schemes sans collateral
The Corporation has provided loans to 1,700 customers without any security under the newly introduced Chief Minister’s Entrepreneurship Development Programme. It has similar schemes for converting buses to CNG and for purchasing electric vehicles. A special scheme has been introduced for government contractors to discount their bills without any collateral.
The Corporation has also launched a scheme to revive the tourism sector whereby special loans of up to ₹50 lakh are allowed to hotels without any security under a daily repayment basis. “The scheme has received positive responses instantly”, Thachankary said.
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