Kerala’s Best Financial Institution Performs Well Amid Covid-19
Thiruvananthapuram, August 31 (IANS): Despite difficult times due to the Covid-19 pandemic, the state’s leading financial institution, Kerala Financial Corporation (KFC), posted a net profit of Rs 6.58 crore for 2020-2021.
Sanjay Kaul, chief executive of KFC (CMD), said that although the economy is under severe strain due to Covid-19, the KFC may be in a good position.
“We were able to improve performance in terms of record loan portfolio growth, higher penalties, disbursements and collections. We could also significantly reduce the levels of non-performing assets (NPAs),” Kaul said.
He was speaking after the adoption of the annual accounts of the banking institution by the annual general meeting held here on Tuesday.
Data revealed that loan penalties grew 150% to Rs 4,147 crore, while disbursing Rs 3,709 crore as total income rose to Rs 491 crore.
Gross NPAs were reduced to 3.58% and net NPAs to 1.48%, making it the best performance in the banking sector.
KFC’s net worth rose 16% to Rs 678.35 crore and the capital to risk-weighted asset ratio (CRAR) stood at 22.85 percent.
“In order to conserve capital and absorb losses due to the uncertainty caused by the Covid-19 pandemic, the KFC has decided to keep dividends during this year,” KFC CMD said.
As part of the pandemic relief plans, KFC announced three new loan programs – the ‘Startup Kerala Scheme’, a special program for units in industrial estates and the Chief Minister’s new entrepreneurship program ( CMEDP) for MPME units.
With reduced interest rates and an accelerated loan processing system, KFC is targeting new loan penalties of Rs 4,500 crore this year. In addition, it aims to exceed the size of the loan portfolio to over 5,000 crore rupees during this fiscal year.