Trivandrum: Kerala Financial Corporation (KFC) added another feather to its cap when it became the only State Financial Corporation in the country to get Reserve Bank of India (RBI) permission to raise deposits (Domestic / INR), in recent years.
There are strict norms for allowing Financial Institutions to raise deposits from public and such permission is given by RBI based on their financial performance, compliance of norms and the level of Non-Performing Assets (NPAs). It may be stated that KFC which, just two years back, had high level of NPAs could reduce the same to 1.3%, in the last Financial Year, which is far better than the stipulated banking standards. The Kerala Financial Corporation also recorded its highest profit during the last Financial Year and distributed the highest dividend among any Public Sector Undertaking (PSU) in Kerala. KFC was the first PSU to come out with its audited Balance Sheet and Profit & Loss Account and printed annual report in the State for 2011-12.
According to Yogesh Gupta IPS, CMD, KFC, “The remarkable and rather dramatic improvement in the performance of KFC is attributed to its improved financial management which includes introduction of highly objective and scientific appraisal methods for loans, non-discriminatory and pragmatic policies for settlement of stressed loan accounts, introduction of credit rating continuum to promote principles of good governance among borrowers and a system based approach to all issues rather than individual based approach. The improved performance of KFC has been achieved despite the fact that rate of interest charged by it is among the lowest in the market.”
KFC has also come out with innovative schemes to finance film making and theatre renovation to encourage investment in areas where the State of Kerala has conventionally been strong, the entertainment industry being one such area. KFC has also lived up to its corporate responsibility by offering soft loans on easy terms to energy saving projects, for installation of waste treatment plants, for installation of quality food testing laboratories, etc. KFC expects to cross Rs 50 crores mark of net profit for the current financial year (2012-13).
Kerala Biz News