Kerala Financial Corporation (KFC) has declared a dividend of ₹36.01 crore for the State government, reflecting a steady financial performance over the past year. The announcement came at KFC’s 72nd Annual General Meeting, where shareholders cleared a 5% dividend.
Since the State government holds a hefty 99.14% stake in the institution, most of the dividend flows directly back to the public treasury. The rest of the shareholding lies with State Bank of India, Life Insurance Corporation, and SIDBI.
For the financial year ending March 31, 2025, KFC posted a net profit of ₹98.16 crore — a 32.56% rise compared to the previous year. This marks one of the strongest growth phases for the state-run financier in recent years.
The corporation’s loan portfolio saw a significant jump, breaching the ₹8,000 crore mark for the first time. It now stands at ₹8,011.99 crore. Its net worth also climbed to ₹1,328.83 crore, indicating relatively stable financial footing.
During 2024–25, KFC sanctioned loans worth ₹4,002.57 crore to micro, small, and medium enterprises (MSMEs), startups, and other sectors. It disbursed ₹3,918.40 crore in total, while loan repayments stood slightly higher at ₹3,980.76 crore.
The figures suggest a high rate of loan recovery — a notable feat for a government-owned financial body working in a high-risk lending space.
KFC’s interest rate offerings — some reportedly as low as 5% — have caught attention, particularly in the MSME segment. While low-cost credit can boost small business activity, it also raises questions on long-term sustainability unless backed by adequate returns.
According to Finance Minister K N Balagopal, the State government has so far invested ₹920 crore in KFC, with ₹500 crore of that pumped in during the current government's tenure. While the capital infusion may have shored up KFC’s lending capacity, it remains to be seen how efficiently these funds translate into lasting development outcomes.