CHENNAI, May 24 : 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 Rs 98.16 crore, reflecting a 32.56 percent increase from the previous year, marking the highest-ever profit in its history.
The Corporation’s loan portfolio crossed the Rs 8,000 crore milestone for the first time, reaching Rs 8011.99 crore, while its net worth increased to Rs 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,” Finance Minister KN Balagopal commented on Facebook.
The infusion of Rs 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.
In addition, KFC achieved notable progress in asset quality, bringing Gross NPA down to 2.67 per cent (from 2.88 per cent) and Net NPA to 0.61 per cent (from 0.68 per cent).
During the year, KFC has sanctioned Rs 4002.57 crore loans to MSMEs, Startups, and other sectors. Total loan disbursement comes to Rs 3918.40 crore, and the total loan recovery is Rs 3980.76 crore.
Under the CM’s Entrepreneurship Development Programme (CMEDP), KFC has so far supported 3028 MSMEs with Rs 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 Rs 95.20 crore as collateral-free loans, promoting innovation and entrepreneurship across the State.
(UNI)
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