Kerala Financial Corporation (KFC) has announced a record-breaking performance for the 2024-25 financial year, marked by substantial growth and strategic initiatives aimed at supporting MSMEs, startups, and the broader industrial sector in Kerala. The corporation's net profit surged to Rs. 98.16 crore, a 32.56% increase from the previous year, demonstrating robust financial health and effective management.

A significant milestone was achieved as KFC's loan portfolio crossed Rs 8,000 crore for the first time, reaching Rs 8,011.99 crore. Concurrently, the net worth of the corporation increased to Rs 1,328.83 crore, underscoring its financial stability and growth trajectory.

The Kerala state government played a crucial role in KFC's success by infusing a capital of Rs 920 crore, including Rs 500 crore during the current government's tenure. This financial support enabled KFC to offer loans to Micro, Small, and Medium Enterprises (MSMEs) at highly competitive interest rates, starting from just 5%. Finance Minister KN Balagopal emphasized that the growth of KFC is reflective of the overall progress and dynamism within Kerala's industrial sector.

The infusion of Rs 200 crore in share capital during FY 2024–25 significantly strengthened KFC's capital adequacy ratio (CRAR), which now stands at 28.26%. This is well above the Reserve Bank of India (RBI)-mandated minimum of 15% for Non-Banking Financial Companies (NBFCs), ensuring a strong buffer against financial risks. Furthermore, KFC made notable strides in improving asset quality, reducing gross Non-Performing Assets (NPA) to 2.67% (from 2.88%) and net NPA to 0.61% (from 0.68%).

Throughout the year, KFC sanctioned Rs 4,002.57 crore in loans to MSMEs, startups, and other sectors, facilitating significant economic activity and development. Total loan disbursement amounted to Rs 3,918.40 crore, with loan recovery reaching Rs 3,980.76 crore, showcasing effective loan management and recovery mechanisms.

Under the Chief Minister's Entrepreneurship Development Programme (CMEDP), KFC extended support to 3,028 MSMEs, providing Rs 1,030.89 crore in loans at a 5% interest rate. This initiative is estimated to have generated 81,634 direct and indirect employment opportunities, contributing significantly to job creation and economic empowerment. Additionally, through the Startup Kerala Scheme, 72 startups received assistance in the form of Rs 95.20 crore as collateral-free loans, fostering innovation and entrepreneurial spirit across the state.

Looking ahead, KFC aims to achieve a loan portfolio of Rs 10,000 crore by the end of the current year. To achieve this ambitious target, the corporation plans to diversify its operations into new sectors while maintaining a strong focus on supporting MSMEs, the tourism industry, and startups. To enhance operational efficiency and provide superior services, KFC will implement a comprehensive digital transformation this year, modernizing its offices and infrastructure, and investing in quality training for its staff.