KFC to target new business worth Rs 1,500 Cr, posts profit

: Kerala Financial Corporation (KFC), the state's leading industrial financing institution, has posted a profit of Rs 8.30 crore for the 2017-18 fiscal and is targeting new business worth Rs 1,500 crore this year.

The corporation has also achieved substantial growth in terms of sanction and recovery compared to the previous years.

Despite challenging economic environment during the FY 2017-18, sanctions registered a growth of 87.88 per cent to Rs 724 crore, disbursements were at Rs 600 crore and total recoveries increased by 8.05 per cent to Rs 945 crore, a KFC press release said.

The corporation's operating profit has increased to Rs 20.19 Crore.

It could bring down Gross NPA to 6.37 per cent and Net NPA to 2.03 per cent which is an industry leading performance.

Capital to Risk - weighted Assets Ratio (CRAR) stood at 17.26 per cent against the minimum of 9 per cent prescribed by RBI.

"KFC has emerged as the best performing amongst all State Financial Corporations in the country in terms of impacts profitability and contained level of NPA," Sanjeev Kaushik, Chairman and Managing Director of KFC said.

The corporation had recently brought down its interest rate structure from the existing 14.5 per cent PLR to a competitive base rate of 9.5 per cent.

The credit policy of the corporation has been revamped to streamline the process of sanctions and disbursement and complete it in a time-bound manner.

The corporation will focus on selecting credit worthy projects, appraising their business prospects comprehensively and disbursing the loans in a milestone related methodology.

Continuous monitoring of the assets will be rigorously done in order to maintain the quality of loan assets.

"With a focused strategy in place, we will be targeting new business of Rs 1,500 crore in the present year. With sustained growth in sanctions, we aim to double our loan portfolio in next three years," he said.

During the present FY, the corporation plans to source further low cost funds after going for credit rating.

With sector-leading financial strength in hand and low NPA level, it expects to attract an upgraded rating in this year, which would enable us to further enhance our competitiveness, he added.