Kerala Financial Corporation records ‘best ever’ performance

• THIRUVANATHAPURAM — Kerala Financial Corporation (KFC), the state’s premier development financial institution, has reported a 'record-breaking performance' for the financial year ending March 31, 2025.
•  
  
• KFC posted a net profit of INR 98.16 crore, reflecting a 32.56 per cent increase from the previous year, marking the highest-ever profit in its history.
•  
  
• The corporation’s loan portfolio crossed the INR 8,000 crore milestone for the first time, reaching INR 8011.99 crore, while its net worth increased to INR 1328.83 crore, underlining robust financial growth.
•  
  
• “The state government has infused a capital of Rs 920 crore into KFC, including Rs 500 crore during this government’s tenure. This support has enabled KFC to offer loans to MSMEs at interest rates starting from just 5 per cent. The growth of KFC mirrors the broader progress in Kerala’s industrial sector,” said State Finance Minister K.N. Balagopal.

Also read: India’s GDP growth projected at 6.8 pc in Q4, overall consumption healthy

•  
  
• The infusion of INR 200 crore in share capital in FY 2024–25 helped KFC significantly strengthen its Capital Adequacy Ratio (CRAR), now at 28.26 per cent, well above the RBI-mandated minimum of 15 per cent for NBFCs.
•  
  
• During the year, KFC has sanctioned INR 4002.57 crore loans to MSMEs, Startups and other sectors.
•  
  
• Total loan disbursement comes to INR 3918.40 crore, and the total loan recovery is INR 3980.76 crore.
•  
  
• “KFC’s strong financial performance, particularly the industry-leading low net NPA of less than 1 per cent, speaks of the Corporation’s prudent lending practices. This record performance positions KFC as a key driver of Kerala’s industrial and entrepreneurial advancement. We will remain committed to supporting Kerala’s MSME and startup ecosystem, driving sustainable economic growth and job creation,” said Sriram Venkitaraman, MD of KFC.
•  
  
• Under the CM’s Entrepreneurship Development Programme (CMEDP), KFC has so far supported 3028 MSMEs with INR 1030.89 crore loans at 5 per cent interest, generating an estimated 81,634 direct and indirect employment opportunities.
•  
  
• Additionally, under the Startup Kerala Scheme, 72 startups were assisted with INR 95.20 crore as collateral-free loans, promoting innovation and entrepreneurship across the State.
•  
  
• KFC aims to achieve a loan portfolio of INR 10,000 crore by the end of this year.
•  
  
• To meet this ambitious target, the corporation plans to diversify its operations into new sectors, with a continued focus on supporting MSMEs, the tourism industry, and startups.
•  
  
• “To enhance operational efficiency and deliver superior services, KFC will undergo a comprehensive digital transformation this year. This includes modernising its offices and infrastructure, as well as providing quality training to its staff,” added Sriram.