Insight Online News
Thiruvananthapuram, Aug 31 : Kerala Financial Corporation (KFC), a state-based pioneer industrial financing institution, has posted a net profit of Rs 6.58 crore for the Financial Year 2020-21.
The annual accounts of the KFC was adopted at the Annual General Meeting held in its head office here on Tuesday.
During FY 2020-21, sanctions registered a growth of 150 per cent to Rs 4,147 crore, while it disbursed Rs 3,709 crore. The total income has grown to Rs 491 crore.
“Even though the economy is under severe stress due to covid-19, the Corporation could position itself well and was able to improve its performance, in terms of ever time high loan portfolio growth, higher sanctions, disbursements and recovery.
The Corporation could also significantly curb the NPA levels also”, said Mr Sanjay Kaul, Chairman and Managing Director of KFC.
The Gross NPAs have been brought down to 3.58 per cent and net NPAs to 1.48 per cent, which makes for an industry leading performance.
The net worth of the Corporation has moved up by 16% to Rs 678.35 crore and the Capital to Risk-weighted Assets Ratio (CRAR) is at 22.85 per cent.
“On order to conserve the capital and to absorb losses due to the uncertainty caused by the COVID-19, the Corporation had decided to hold dividends during this year”, Mr Kaul said.
As part of COVID-19 Relief package, the Corporation has recently announced three new loan schemes. ‘Startup Kerala Scheme’, Special scheme for units in Industrial Estates and the revamped Chief Minister’s Entrepreneurship Scheme (CMEDP) for MSME units.
With reduced interest rates and fast track loan processing system introduced, the Corporation targets new loan sanctions of Rs 4,500 crore this year. The Corporation also aims to exceed the loan portfolio size above Rs 5,000 crore by the end of this financial year.