KFC Achieves Record Profit, Boosts Small Businesses

Thiruvananthapuram: Showcasing the strength of the Kerala Model of inclusive development, the state-run Kerala Financial Corporation (KFC) has reported its highest-ever net profit of Rs 98.16 crore for the financial year ending March 31, 2025, a 32.56 percent jump from last year.

Focused on supporting common people and small entrepreneurs, KFC’s total loan portfolio crossed the Rs 8,000 crore mark for the first time, reaching Rs 8,011.99 crore. The Corporation’s net worth also rose to Rs 1,328.83 crore, underlining its strong financial health. Officials credited this growth to consistent government support and responsible lending.

The Kerala government has so far invested Rs 920 crore in KFC’s share capital, including Rs 500 crore during the current government’s term. In 2024–25 alone, KFC received Rs 200 crore in additional capital, helping it achieve a Capital Adequacy Ratio of 28.26 per cent, much higher than the 15 per cent required by the Reserve Bank of India for NBFCs.
Low-interest loans, high-impact results

KFC provides loans to micro, small and medium enterprises (MSMEs) at interest rates starting from just 5 per cent. This has offered a lifeline to small business owners across the state and is seen as a key driver of job creation and entrepreneurship.
In FY 2024–25, KFC sanctioned loans worth Rs 4,002.57 crore, disbursed Rs 3,918.40 crore, and recovered Rs 3,980.76 crore. At the same time, the Corporation reduced its Gross Non-Performing Assets (NPAs) to 2.67 percent, and Net NPAs to just 0.61 per cent — an indicator of financial discipline and strong recovery systems.
Supporting entrepreneurs and startups

Through the Chief Minister’s Entrepreneurship Development Programme (CMEDP), KFC supported 3,028 MSMEs with loans totalling Rs 1,030.89 crore at just 5 per cent interest. This helped create nearly 81,634 new jobs across Kerala. Under the Startup Kerala scheme, 72 startups received collateral-free loans amounting to Rs 95.20 crore.
Rs 10,000 crore loan target by 2025

“With a Net NPA of less than 1 per cent, KFC is committed to building a strong foundation for MSMEs and startups in Kerala,” said Managing Director Dr. Sriram Venkitaraman IAS. He added that the Corporation aims to expand its loan portfolio to Rs 10,000 crore by the end of 2025.
To achieve this, KFC plans to expand lending to tourism and other emerging sectors, and implement major digital upgrades to improve efficiency and customer service.
This success story is a reflection of the Kerala Model, where government support, financial discipline, and grassroots development go hand in hand to empower ordinary citizens.