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Kerala Financial Corp posts ₹18 crore in annual profit

Our Bureau Thiruvananthapuram | Updated on July 30, 2020 Published on July 30, 2020

Kerala Financial Corporation (KFC) has posted a net profit of ₹18.37 crore during FY 2019-20 thanks to resilient performance in terms of growth in loan portfolio, sanctions, disbursements and recovery. The year saw its portfolio grow 24.88 per cent while disbursements looked up by 77.27 per cent and recoveries, by 20.23 per cent.

The operating profit has registered an increase of 46.03 per cent, while the networth moved up by 27.84 per cent to ₹584.75 crore, said Sanjay Kaul, Chairman and Managing Director, KFC. The Capital to Risk-weighted Assets Ratio (CRAR) weighed in at a creditable 22.40 per cent against the minimum of nine per cent prescribed by the Reserve Bank of India.

Significantly, the corporation has been able to bring down the gross NPA level to 4.74 per cent and net NPA level to 1.45 per cent, which makes for industry-leading performance, Kaul said while releasing the accounts of KFC following its adoption by the annual general meeting held on Thursday at its Head Office here.

“KFC has emerged the best performing State Financial Corporation in the country in terms of higher profitability and low level of NPAs. Based on the RBI directions to conserve the capital and to absorb losses due to the uncertainty caused by the Covid-19 pandemic, the corporation had decided to hold dividends during this year,” Kaul added.

Appraisal process revamped

KFC had recently implemented a complete revamp of the appraisal process, now a centralised business review mechanism wherein entrepreneurs are given in-principle clearance for new loans online within seven days. FY 2019-20 has been a landmark year with the State Finance Minister announcing a capital infusion of ₹200 crore in the company, Kaul said.

With sector-leading financial strength and low NPA levels, KFC expects a rating upgrade this year, he said. It aims for a growth in portfolio size to ₹4,000 crore this year with a focus on the MSME sector and start-ups. It targets to reach out to 1,000 MSMEs through the newly-launched Chief Minister’s Entrepreneurship Development Programme.

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Published on July 30, 2020
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