KFC reports record net profit of Rs 98.16 Crore

Thiruvananthapuram: Kerala Financial Corporation (KFC), the state-run development financial institution, has reported a record annual net profit of Rs 98.16 crore for the financial year ending March 31, 2025, reflecting a 32.56% increase from the previous year.

For the first time, KFC's total loan portfolio has surpassed Rs 8,000 crore, reaching Rs 8,011.99 crore. Its net worth has also risen to Rs 1,328.83 crore, underscoring its strong financial health, according to an official statement released on Sunday.

The Corporation's improved performance has been driven by sustained government support.

The Kerala government has infused Rs 920 crore in share capital into Kerala Financial Corporation (KFC), including Rs 500 crore under the current administration. This support has enabled KFC to offer loans to micro, small, and medium enterprises (MSMEs) at interest rates starting from five per cent, according to State Finance Minister K N Balagopal in a social media post.

In FY 2024–25, KFC received an additional Rs 200 crore in share capital, boosting its Capital Adequacy Ratio to 28.26 per cent—well above the Reserve Bank of India's 15 per cent requirement for non-banking financial companies.

The Corporation also improved asset quality, lowering its Gross Non-Performing Assets (NPA) to 2.67 per cent from 2.88 per cent, while Net NPA dropped to 0.61 per cent from 0.68 per cent. During the year, KFC sanctioned Rs 4,002.57 crore in loans, disbursed Rs 3,918.40 crore, and recovered Rs 3,980.76 crore.

“This performance highlights KFC's sound lending practices. With a Net NPA of less than 1 per cent, we remain committed to strengthening Kerala's MSME and startup ecosystems,” said Managing Director Dr Sriram Venkitaraman IAS.

Through the Chief Minister's Entrepreneurship Development Programme (CMEDP), KFC has supported 3028 MSMEs with Rs 1030.89 crore in loans at 5 per cent interest, creating around 81,634 jobs.

Under the Startup Kerala Scheme, 72 startups received collateral-free loans totalling Rs 95.20 crore.

Looking ahead, KFC aims to expand its loan portfolio to Rs 10,000 crore by the end of 2025.

To achieve this, the Corporation will broaden its focus to include tourism and other emerging sectors.

It also plans a major digital upgrade to improve services and operational efficiency, Venkitaraman added.

(inputs from PTI)