KFC Records Highest Dividend in History with Rs. 36.01 Cr Payout to Kerala Govt

Thiruvananthapuram: The Kerala Financial Corporation (KFC) has handed over a dividend of Rs. 36.01 crore to the Government of Kerala for the financial year 2024–25. This is the highest dividend KFC has paid in its 72-year history.

KFC, a state-owned financial institution, plays a crucial role in providing loans to micro, small, and medium enterprises (MSMEs) across Kerala—sectors that often struggle to access credit from large banks. With interest rates starting as low as 5%, KFC’s services are tailored to support grassroots economic activity, especially in manufacturing, trade, and service sectors.

This year, the Corporation recorded its highest-ever net profit of Rs. 98.16 crore, up by over 32% compared to the previous year. It also grew its loan portfolio past Rs. 8,000 crore for the first time, showing increasing demand from small businesses and entrepreneurs.

Part of this success comes from public investment. The Kerala government infused Rs. 200 crore into KFC’s share capital during the year, strengthening its financial position and allowing it to lend more. The result is a healthy Capital Adequacy Ratio (28.26%), which indicates KFC is well-prepared to handle financial risks.

On the ground, KFC has worked to improve the quality of its lending. Its gross non-performing assets (loans not being repaid on time) came down from 2.88% to 2.67%. The net NPA stands at a low 0.61%, reflecting disciplined credit practices.

The dividend cheque was formally handed over by Chief Secretary and KFC Chairman Dr. A. Jayathilak to Finance Minister K.N. Balagopal in Thiruvananthapuram. Speaking with the Deshabhimani, the minister emphasised the importance of strong public institutions like KFC in supporting Kerala’s economic goals creating more than 80000 jobs in the state.

KFC’s achievements in the financial year 2024–25 has also seen steady growth and financial stability. In the 2024–25 financial year, Kerala Financial Corporation (KFC) sanctioned loans worth Rs. 4,002.57 crore to micro, small, and medium enterprises (MSMEs), startups, and various other sectors. Of this, Rs. 3,918.40 crore was disbursed, while loan repayments stood at Rs. 3,980.76 crore.

KFC’s performance, Finance Minister K.N. Balagopal noted that it was encouraging to see a public sector financial institution not only making steady progress but also offering loans to MSMEs at interest rates as low as 5%. He added that the State government has so far invested Rs. 920 crore in KFC, with Rs. 500 crore of that came during the tenure of the current government—reflecting continued public commitment to strengthening development finance in the state.