The Kerala Financial Corporation (KFC), under the State Financial Corporation Act 1951, has logged 65 per cent increase in the volume of loan sanctions during the last financial year over 2008-09.
The total amount of loans sanctioned by the corporation during 2000-10 touched Rs. 615 crore against Rs. 373 crore during the previous year, sources in the corporation said on Tuesday.
Increase in disbursals has been in tandem, rising 43 per cent during the financial year just ended over the previous year.
The volume of disbursals in 2009-10 was Rs. 420 crore against the Rs. 293 crore during the previous year.
Sources said that KFC was finalising targets for the current financial year keeping in view a programme to encourage the manufacturing sector in a big way.
The corporation is likely to offer attractive schemes to new enterprises in the manufacturing sector during the new fiscal. KFC's loans, last financial year, had gone largely to tourism and hospital enterprises. A scheme drawn up to help Gulf-returned Malayalis received good response, though a large number of enterprises they sought to set up did not fall within the categories the corporation could finance under its mandate.
Over its more than half-a-century of its existence, KFC has been a key financier for new enterprises and with a more liberal outlook on new enterprises it is set to play a stronger role in the future, sources said.
Liberal outlook
The corporation is offering loans effectively at 10 per cent with two per cent rebate being offered on prompt repayments and one per cent rebate based on credit rating.
As part of its more liberal outlook on enterprises, the corporation has offered one-time settlement offers to a total of around 2,500 enterprises over the last five years.
KFC has been able to bring down its NPA level to 7 per cent during the last financial year from the previous year's level of 13 per cent, sources said.
