Kerala Financial Corporation returns record-high net of ₹98.16 crore

Kerala Financial Corporation (KFC), a leading state financial corporation, has reported a record-high net profit of ₹98.16 crore in FY24-25, reflecting a 32.56 per cent increase from the previous year. Loan portfolio crossed ₹8,000-crore milestone at ₹8,011.99 crore, while net worth increased to ₹1,328.83 crore.

Finance Minister KN Balagopal said State Government has infused a capital of ₹920 crore, enabling KFC to offer loans to MSMEs at interest rates starting from as low as 5 per cent. “Its growth mirrors broader progress in Kerala’s industrial sector,” he said.

CRAR looks up, NPAs down 

Infusion of ₹200 crore in share capital has boosted Capital Adequacy Ratio (CRAR) to 28.26 per cent, well above the RBI-mandated minimum of 15 per cent for NBFCs. Asset quality too has looked up with gross NPA reducing to 2.67 per cent (from 2.88 per cent of previous year) and net NPAs to 0.61 per cent (0.68 per cent). Sanctions to MSMEs, startups and others have totalled ₹4,002.57 crore loans. Total loan disbursements come to ₹3,918.40 crore, while recoveries add up to ₹3,980.76 crore. 

Loan book size

“KFC aims to achieve a loan portfolio of ₹10,000 crore by the end of this year. It plans to diversify operations into new sectors, with continued focus on MSMEs, tourism industry, and startups,” said Sriram Venkitaraman, Managing Director.

To enhance operational efficiency and deliver superior services, KFC will undergo a comprehensive digital transformation this year, he added. This includes modernising its offices and infrastructure, as well as providing quality training to its staff.

Lending practices

“Strong financial performance, particularly industry-leading low net NPAs of less than 1 per cent, speaks of prudent lending practices. This has also been a key driver of state’s industrial and entrepreneurial advancement. We remain committed to supporting MSME and startup ecosystem, driving sustainable economic growth and job creation”, he explained.

Under the flagship CM’s Entrepreneurship Development Programme (CMEDP), KFC has so far supported 3,028 MSMEs giving away ₹1,030.89 crore in loans at 5 per cent, generating 81,634 direct and indirect jobs. Under the Startup Kerala Scheme, 72 startups were granted ₹95.20 crore as collateral-free loans, a KFC spokesman said. 

Published on May 25, 2025