KFC records Rs 98.16 crore Net Profit, best-ever performance in history (RPT)
Thiruvananthapuram, May 24 (UNI) 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% 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%. 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%, well above the RBI-mandated minimum of 15% for NBFCs.
In addition, KFC achieved notable progress in asset quality, bringing Gross NPA down to 2.67% (from 2.88%) and Net NPA to 0.61% (from 0.68%).
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.
'KFC's strong financial performance, particularly the industry-leading low net NPA of less than 1%, speaks to 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 Dr. Sriram Venkitaraman, MD of KFC.
Under the CM's Entrepreneurship Development Programme (CMEDP), KFC has so far supported 3028 MSMEs with Rs 1030.89 crore loans at 5% 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.
KFC aims to achieve a loan portfolio of Rs 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 modernizing its offices and infrastructure, as well as providing quality training to its staff, Dr. Sriram said.
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