Trivandrum: Kerala Financial Corporations (KFC), the pioneer industrial financing institution of Kerala, has declared a dividend of 8% to its shareholders in its Annual General Meeting held on July 19, 2013.
The decision to pay highest dividend has been taken after the Corporation registered its highest ever profit of Rs. 66.83 crores for the FY 2012-13 with 46.38% growth. Government of Kerala, being the largest shareholder with more than 97% of the equity, will get approximately Rs. 16.46 crores as dividend. The Corporation is the only State Financial Corporation of the country paying dividend continuously to its shareholders.
With improvement in all operational areas, KFC has increased the quality of its assets and reduced its net NPA to 0.36%. KFC also registered record growth in critical operational areas like Sanction, Disbursement, Recovery, Interest income, etc for the financial year ended 2012-13. The net worth of the Corporation has increased to Rs. 383.76 crores with 17.77% growth. The Capital Adequacy Ratio (CAR) is at a level of 24.94 % which is far above the minimum norm of 9% prescribed by the RBI.
According to P Joy Oommen, CMD of KFC, the Corporation could achieve these results essentially through inspired performance by its employees, efficient fund management, resources mobilisation, scientific appraisal and systematic efforts in recovery of dues.
KFC has recently come out with innovative schemes to provide financial assistance up to 90% of the project cost for modernising manufacturing units at effective interest rates of 11% for manufacturing sector and 12% for service sector. Corporation also mobilised low cost funds recently from the market by raising Rs. 200 Crores at an interest rate of 8.72% p.a. by issuing Non SLR Bonds.
The new schemes of KFC along with Government of Kerala’s newly launched ‘interest subvention scheme’ will make the investment of the State much more attractive and Corporation expects to disburse Rs. 600 crores to the MSME sector this financial year, Joy added.
Kerala Biz News