June 18: Kerala Financial Corporation (KFC), the pioneer industrial financing institution of Kerala, has posted a net profit of Rs.17.70 crore for the FY 2018-19, registering a growth of 113% compared to last year figure of Rs.8.30 crore. The annual accounts of the Corporation was adopted by the Annual General Meeting(AGM) of the Corporation held today (17.06.2019) at KFC Head Office, Thiruvananthapuram. The AGM has also resolved to declare a dividend to its stake holders.
“The Corporation had last declared dividend in the FY 2014-15 and was holding dividend since then, due to profitability and NPA constraints. Now we could improve our business volume and level profits substantially and also could reduce its NPA levels through the reforms implemented recently and hence will be able to pay dividend annually on a regular basis” said Sanjeev Kaushik, Chairman and Managing Director of the Corporation.
For the FY 2018-19, sanctions of the Corporation had registered a growth of 127% to Rs.1645 crore and disbursed Rs.816 crore. The total income has grown to Rs.428 crore. The operating profit has increased to Rs.31 Crore. The Corporation could bring down Gross NPAs to 5.77% and Net NPA to 1.82%, which is an industry leading performance. Capital to Risk- weighted Assets Ratio (CRAR) is at 19.24% against the minimum of 9% prescribed by RBI.
“KFC is the first PSU of the state to publish its audited figures in current financial year. With the tremendous success of new base rate structure coupled with launch of new products like contractor’s loans, bill discounting, etc, FY 2019-20 is set to see KFC’s portfolio cross the Rs.3500 crore mark”, said E K Harikumar, Director of the Corporation, who chaired the AGM.