Thiruvananthapuram, June 27 : Kerala Financial Corporation (KFC), Kerala based pioneer industrial financing institution, has declared a dividend of Rs.21 crore to the State Government.
The decision was taken in the 70th Annual General Meeting (AGM) of KFC held today (26.06.2022), at Thiruvananthapuram, the Head Office of the Corporation.
The AGM has also adopted the financial statements for the year ended 31.03.2023 and decided to declare a dividend of Rs 5 per share for the financial year ended 31st March 2023. The State Government is holding 99% shares in KFC and the other shareholders include SIDBI, SBI, LIC, etc.
“Ever since its inception 70 years back, the Kerala Financial Corporation has been playing a seminal role in enabling industry and innovation in Kerala. 2022-23 was the Year of Entrepreneurship in Kerala. It is noteworthy that KFC had taken a positive approach to support MSMEs and Startups during it. Through various special schemes, KFC could reach out to a larger section of the people. KFC is continuing its role in supporting MSMEs and Startups which in turn provides more employment and keeps Kerala’s economy growing”, said Pinarayi Vijayan, Chief Minister of Kerala, in a message sent to KFC and its customers.
KFC recorded its best-ever performance in its 70 years of history in the last FY, 20223-23. It has quadrupled its Net Profit to Rs.50.19 crore.
The loan portfolio reached Rs.6529.40 crore recording a growth of 37.44%. It is the first time KFC crosses Rs 5000 crore loan portfolio in a FY. The Gross NPA has been brought down to an industry-leading performance of 3.11% and Net NPA to 0.74%.
“With the State Government infusing a share capital of Rs.200 crore as of 31.03.2023, the Capital Adequacy Ratio (CRAR) of KFC improved to 25.58% against 22.41% last year. The Government aims to increase the loan size of KFC to Rupees ten thousand crore and make KFC one of the best Non-Banking Financial Institutions in the country” said Finance Minister of Kerala, KN Balagopal.
During FY 2022-23, KFC launched new loan schemes and products and also fine-tuned the existing processes to remain competitive. Some of the key business initiatives taken during the year include the enhancement of the upper loan limit of the Chief Minister’s Entrepreneurship Development Program (CMEDP) to Rs 200 lakh where loans to MSMEs are given at 5% annual interest, the launch of KFC Agro-based MSME Loan Scheme (KAMS) where loans up to Rs.10 crore are given at 5% annual interest, the launch of KFC Working Capital Loan Scheme in association with City Union Bank, assistance to Infrastructure Projects, the scheme for assisting procurement of Deep-Sea Fishing Vessels, etc.
“KFC plans to have Large Credit Branches for servicing large loans and convert the existing branches to MSME Credit branches. The loan recovery will be done through Specialized Asset Recovery Branches. KFC will also start new schemes for funding Infrastructure Projects and loan schemes for Ex-servicemen”, said Sanjay Kaul, CMD KFC.
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