KFC to sanction Rs 1,000 cr loans this year

Kerala Financial Corporation (KFC) will sanction loans to the tune of Rs 1000 crore in the current financial year, said KM Mani, finance minister of Kerala.

Addressing a press conference today, he said the corporation had sanctioned Rs 507.37 crore as loans in last FY and disbursed Rs 443.53 crore. Out of the targeted Rs 1,000 crore this fiscal, Rs 800 crore would be disbursed.

Instead of entrepreneurs approaching KFC, officers will reach the entrepreneurs in order to sanction financial assistance to various commercial and industrial projects. KFC has already started a marketing wing for this, and officers at the regional and district level will assist in the process.

He said that a task force had been formed to sort out issues of long-standing loans that are very old and without assets. The gross NPA of the Corporation will be reduced below 4 per cent in this fiscal. In order to mobilise more funds, KFC will associate with banks and institutions like HUDCO, and would also tap the financial market.

It will also start an innovation incubation center for assisting the new-generation entrepreneurs and young businessmen. For traditional sectors, integrated development, clusters of enterprises will be formed.

KFC will also start village adoption scheme with the help of village panchayat offices in various villages. Project offices will be opened in selected villages, he added.

It will also provide consultancy services to industrialists and statistics on SME sector of the state will be collected. Mani has accepted a dividend cheque to the government of Kerala. KFC has distributed 5 per cent dividend in 2010-11. KFC is the only  state financial corporation in India to declare a dividend.