Kerala Financial Corp to join technology biz

The state-owned Kerala Financial Corporation (KFC) has decided to expand its business tapping newer options such as technology, according to its chairman-cum-managing director P. Joy Oommen.

"In the modern world, the demands of the investor have also changed and today we get enquiries for project financing in newer areas like IT and similar industries," Oomen told IANS.

Oommen said that KFC has already entered into a tie-up with TiE (The Indus Entrepreneurs) for assistance in appraisal of high technology projects.

"Now that we have tied up with TiE, they would help us to make a proper assessment of the proposed investor. They will give us the advice on the viability of such projects," said Oommen.

As more and more women are entering businesses like food processing, garment making and the fashion industry, "we would establish a women entrepreneur cell."

"Another segment that we are working on is to tap the venture capital fund. In the latest union budget the Union finance minister has proposed to set aside a sum of Rs.10,000 crore and we expect to get a share in that. For that we will be partnering the state owned KSIDC (Kerala State Industrial Development Corporation)," said Oommen.

KFC over the years has been financing traditional projects. It ended the last fiscal with a profit of Rs.41.34 crore.

At its annual general meeting held here yesterday, the shareholders was informed that KFC achieved substantial growth in terms of sanction, disbursement and recovery compared to the previous years.

In the last fiscal 2013-14 the loan portfolio registered an impressive growth of 28.47 per cent, from Rs.1,401.43 crore to Rs.1,800.37 crore.

During the same period, KFC brought down the net non-erformign asset (NPA) to 0.35 percent while its net worth increased to Rs.414.84 crore, registering a 8.09 percent growth.

"We had been facing stiff competition from commercial banks and other financial institutions and to make interest rates competitive, we increased the rebate for prompt repayment and also reduced the lending rates," said Oommen.

Oommen said that KFC is now aiming to achieve a portfolio size of over Rs.2,500 crore by 2015 and plans to raise non-SLR Bonds to the tune of Rs.400 crore from the market.