KFC declares highest dividend than by any other PSU in the State
Kerala Financial Corporation(KFC) has scaled new heights by registering the highest ever profit of Rs.45.65 Crores for the F.Y. 2011-12. The Corporation also increased the size of its assets to Rs.1240 Crores as on 31.03.12 from Rs.1124 crores as on 31.03.2011. The sanctions registered a figure of Rs.539 Crores and disbursements registered a figure of Rs.464.57 crores.
Buoyed by the all-time best performance of KFC, a dividend of 7.5% on paid up capital was declared by the Corporation in its Annual General Meeting held on 11.07.2012. This translates into an amount of Rs.15.90 crores with a major part going to Government of Kerala which owns more than 97% of the equity share capital. Another Rs.2.58 Crores of dividend tax is payable to the Govt. of India. This is the highest dividend declared by any PSU in the State.
The improvement in its appraisal methods, introduction of objective credit rating system, etc. by KFC has tremendously increased the quality of its assets and advances and the Corporation has been able to reduce its gross NPA percentage from 8.20% to 3.60% and net NPA from 1.88% to 1.30%.
The Corporation also formulated scientific, rational and modern policies for sanction of loans, their monitoring and recovery. Forward looking compromise settlement and recovery policies ensured that the recoveries for the year 2011-12 reached an all-time high figure of Rs.467.17 Crores. The total income also surpassed the figure of Rs.200 Crores at Rs.214.25 Crores up from the figure of Rs.165.98 Crores achieved in the year 2010-11 (an increase of 30%). It may be stated that this performance has been achieved mostly in the second half of the F.Y 2011-12. This is also to be noted that the Corporation had huge accumulated losses just about 3 years back.
The Corporation has been able to achieve this performance despite reduced financial assistance from SIDBI. However, the improved performance of the Corporation and confidence in its management ensured that banks agreed to lend to KFC at a very economic rates. Further, the reduction in its establishment costs has enabled KFC to earn profits despite keeping low lending rates. The effective rates after rebate and reduction of interest rate for good credit rating is only 12.5% as against around 16% charged by other banks.
As at the end of the year 2011-12 the net worth of the Corporation was Rs.325.85 crores up from RS.297.36 crores in the previous year. The Corporation has Capital Adequacy Ratio (CAR) of 20.51% which is far above the minimum norm of 9% prescribed by the RBI.
A comparative chart for performance during the last 3 years is given below: (Rs. in lakhs)
| Financial year | 2011-12 | 2010-11 | 2009-10 |
| Portfolio Size | 123984 | 112481 | 88869 |
| Sanctions | 53901 | 50706 | 61593 |
| Disbursements | 46457 | 44344 | 41953 |
| Recovery | 46717 | 35473 | 29957 |
| Total Income | 21425 | 16598 | 16236 |
| Total Expenditure | 15162 | 10428 | 11571 |
| Operating Profit | 6263 | 6170 | 4665 |
| Net Profit | 4565 | 3640 | 3372 |
| Net NPA% | 1.30 | 1.88 | 2.41 |
| Gross NPA% | 3.6 | 8.2 | 9.04 |
| Net worth | 32585 | 29731 | 26996 |
No comments:
Post a Comment