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Kerala Financial Corporation (KFC), a leading State Financial Corporation, has posted a net profit of Rs 6.58 crore for the financial year 2020-21. The annual accounts of the institution were adopted by the Annual General Meeting held at the head office of the Corporation here on Tuesday.
During the year under reference, sanctions registered a growth of 150 per cent at Rs 4,147 crore (Rs 1,657.88 crore last year), while disbursements grew in tandem to Rs 3,709 crore (Rs 1,446.15 crore). The total income grew to Rs 491 crore (Rs 410.92 crore).
Loan portfolio grows
“Despite the economy being brought under severe stress due to Covid-19, the Corporation positioned itself well and was able to improve its performance in terms of an all-time high growth in the loan portfolio, higher sanctions, disbursements and recovery. The Corporation also significantly brought down its NPA levels,” said Sanjay Kaul, Chairman and Managing Director.
In order to conserve capital and absorb losses due to the uncertainty caused by the Covid-19 pandemic, the Corporation has decided to hold back dividends this year, Kaul added.
Net worth moves up
Gross NPAs have been brought down to 3.58 per cent (4.74 per cent), while net NPAs were at at 1.48 per cent (1.45 per cent), which match the best in the industry. The corporation’s net worth has moved up by 16 per cent to ₹678.35 crore and its capital to risk-weighted assets ratio (CRAR) is at 22.85 per cent.
As part of a Covid-19 relief package, the Corporation recently announced three new loan schemes, namely the ‘Startup Kerala Scheme’, a special scheme for units in industrial estates, and the revamped Chief Minister’s Entrepreneurship Scheme (CMEDP) for MSME units.
Leveraging low interest rates and a fast-tracked loan processing system, it targets new loan sanctions of ₹4,500 crore in 2021-22 (Rs 4,146.49 crore in 2020-21). It also aims to raise the loan portfolio to over ₹5,000 crore (Rs 4,621.13 crore in 2020-21) by the end of 2021-22, Kaul added.
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