KFC Posts Record ₹98 Cr Profit in FY25

The Kerala Financial Corporation (KFC), the state's leading development financial institution, has reported its highest-ever performance for the financial year ending March 31, 2025.

KFC posted a net profit of ₹98.16 crore, marking a 32.56% increase over the previous year and setting a new record in the institution's history.

For the first time, KFC’s loan portfolio surpassed the ₹8,000 crore mark, reaching ₹8,011.99 crore. Its net worth also rose to ₹1,328.83 crore, reflecting strong financial momentum.

State Finance Minister K.N. Balagopal credited the state government's capital infusion of ₹920 crore — including ₹500 crore during the current administration — for empowering KFC to offer loans to MSMEs at interest rates starting from just 5%. He noted that KFC’s growth reflects broader industrial progress in Kerala.

A capital infusion of ₹200 crore during FY 2024–25 also helped boost KFC’s Capital Adequacy Ratio (CRAR) to an impressive 28.26%, significantly exceeding the RBI's 15% requirement for NBFCs.

In the past year, KFC sanctioned ₹4,002.57 crore in loans to MSMEs, startups, and other sectors. Total disbursements stood at ₹3,918.40 crore, while recoveries reached ₹3,980.76 crore.

Managing Director Sriram Venkitaraman highlighted KFC’s net NPA of less than 1%, describing it as evidence of the corporation’s prudent lending practices. He emphasized KFC’s role in propelling Kerala’s industrial and entrepreneurial ecosystem forward, with a firm commitment to supporting sustainable growth and job creation.

Under the Chief Minister’s Entrepreneurship Development Programme (CMEDP), KFC extended ₹1,030.89 crore in loans to 3,028 MSMEs at a 5% interest rate, generating an estimated 81,634 direct and indirect jobs.

In addition, the Startup Kerala Scheme supported 72 startups with ₹95.20 crore in collateral-free loans, fostering innovation across the state.

Looking ahead, KFC aims to grow its loan portfolio to ₹10,000 crore by year-end. To achieve this, the institution will expand into new sectors while continuing to prioritize MSMEs, tourism, and startups.

Sriram Venkitaraman also announced a major digital transformation initiative to modernize KFC’s operations, including infrastructure upgrades and staff training to improve service delivery and efficiency.