Kerala Financial Corporation (KFC) has announced a net profit of Rs 18.37 cr for the financial year 2019-20 with the diversified growth in loan portfolio, sanctions, disbursements and recovery. Growth of 24.88 per cent, recoveries of 20.23 percent and disbursement of 77.27 percent has been increased in this FY.
Sanjay Kaul, Chairman and Managing Director, KFC, announced on Thursday that operating profit has showed an increase of 46.03 per cent, while the net-worth shifted up by 27.84 per cent to ₹584.75 crore. RBI prescribed 9 percent and KFC owns a Capital to Risk-weighted Assets Ratio (CRAR) at 22.40 per cent.
“KFC emerged as the best performing State Financial Corporation in the country in terms of higher profitability and low level of NPAs. Based on the RBI directions to conserve the capital and to absorb losses due to the uncertainty caused by the Covid-19 pandemic, the corporation had decided to hold dividends during this year,” said Kaul addressing the meeting by releasing the accounts of the company.
In the annual general meeting of the corporation Kaul said that initiatives are made to bring down the gross NPA level to 4.74 per cent and net NPA level to 1.45 per cent, which makes for industry-leading performance.