Thiruvananthapuram, April 7 (IANS) Kerala Financial Corporation (KFC), the state’s own financial institution, posted a record portfolio of Rs 4,700 crore for the fiscal year ended March 31, 2021 (FY 21).
Provisional figures released show that its activity increased by Rs 1,349 crore compared to fiscal year 20. Likewise, its loan approvals and repayments also increased significantly during the same period.
In FY21, loan approvals in the amount of Rs 4,139 crore were issued, up 244% from the previous fiscal year. Likewise, loan disbursements also increased from Rs 1,447 crore to Rs 3,729 crore during the same period.
Even during the Covid crisis, loan repayments increased from Rs 1,082 crore in the previous fiscal year to Rs 2,833 crore in fiscal 21, while interest income increased from Rs 334 crores to 436 crores.
“Our goal for the year was a complete overhaul of KFC. Rather than being a regular financial institution, KFC has reshaped itself to become an institution that offers personalized loans and exemplary services to various industries, ”said Tomin J. Thachankari, CMD of KFC.
Thachankari, who holds the rank of director general of police and was appointed last year by the state government, also stressed that the centralization of the credit process and the possibility for customers to interact directly with Senior officials, including the CMD, have accelerated growth.
KFC also set a sort of record by sanctioning new loans of Rs 256 crore to 419 industries which were in difficulty due to the Covid crisis. He reduced the base loan interest rate to 8 percent because he was able to raise funds at 6.5 percent.
Incidentally, one of the reasons KFC was able to do well with loan repayments was its decision to share defaulters’ information with CIBIL. Approximately 24,000 records have been downloaded to date.
Among the Kerala government financial institutions, KFC is the first to share defaulters data with CIBIL. In addition, the data is also shared with other credit bureaus like Equifax, Experian, and CRIF Highmark.
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