Kerala Financial Corporation (KFC) has received RBI permission to raise domestic rupee deposits.
There are strict norms that apply to financial institutions raising deposits from public, said Yogesh Gupta, Chairman and Managing Director, KFC.
The Reserve Bank grants such permission based on their financial performance, compliance of specific norms and level of non-performing assets (NPAs).
KFC has had high level of NPAs until two years ago but has since managed to reduce them to 1.3 per cent in the last financial year.
It also recorded the highest ever profit during this period, apart from announcing the highest dividend among public sector undertakings in the State.
BETTER MANAGEMENT
KFC was the first to come out with its audited balance sheet and profit and loss account and printed the annual report for 2011-12. Gupta attributed the improved performance to improved financial management.
This includes introduction of highly objective and scientific appraisal methods for loans and non-discriminatory policies for settlement of stressed loan accounts.
KFC also introduced a credit rating continuum to promote principles of good governance among borrowers and a system-based approach to deal with issues.
FILM FINANCE
The performance has been achieved despite the fact that rate of interest charged by KFC is among the lowest in the market. It has devised innovative schemes to finance film making and theatre renovation to encourage investment in areas where the State has conventionally been strong.
KFC offers soft loans on easy terms to energy saving projects, installation of waste treatment plants and food testing laboratories. It expects to cross Rs 50 crore in net profit for current financial year (2012-13), Gupta said.
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