Kerala Finance Minister K.N. Balagopal has urged closer cooperation between industry and financial institutions to drive investment into the state’s production sector. Speaking at the Banking and NBFC Summit 2025 organised by the Confederation of Indian Industry (CII) in Kochi, the Minister said that building such links could accelerate industrial growth and job creation across the state.
The summit, themed “From Kerala to the Nation – A Hand in Shaping India’s BFSI Future,” brought together policymakers, bankers, NBFC executives and financial experts to discuss how Kerala’s evolving financial ecosystem can contribute to national growth, innovation and inclusion.
V.K.C. Razak, chairman of CII Kerala and managing director of VKC Footwear, said non-banking financial companies (NBFCs) have quietly become one of the biggest enablers of small business growth in Kerala.
According to him, NBFCs have been instrumental in nurturing regional entrepreneurs, particularly micro, small and medium enterprises (MSMEs). “With over 1,000 MSMEs contributing around ₹100 crore to the mission, the sector continues to drive local economic growth,” Razak noted.
Industry watchers believe that such partnerships—between formal banking institutions and local NBFCs—may hold the key to sustaining Kerala’s entrepreneurial base in the coming decade.
George Muthoot George, convenor of the CII Kerala Banking and NBFC Panel and deputy managing director of Muthoot Finance, pointed out that NBFCs account for nearly 20% of total lending in India. He said that the synergy between banks and NBFCs has been a major contributor to India’s credit expansion, adding that Kerala’s financial services have steadily gained a national profile.
CII, in collaboration with KPMG in India, unveiled a report at the event titled “Improvisation Driving: How the Financial Services Sector in Kerala Has Grown to Make an Impact and Influence the National Narrative.”
M.P. Vijay Kumar, executive director and group CFO of Sify Technologies, said Kerala’s gold loan companies exemplify how dormant household wealth can be turned into productive assets, creating jobs and income.
While several financing initiatives exist for MSMEs, he noted that there is still room to improve credit access for smaller businesses and first-time borrowers.
From a technology standpoint, Vishnu Pillai, financial services technology leader and office managing partner for Kochi at KPMG in India, highlighted the state’s progress in digitisation and fintech integration—areas increasingly viewed as Kerala’s competitive advantage.
The summit left participants with a common theme—Kerala’s future growth may depend as much on innovation in finance as on manufacturing. If banks, NBFCs and industries pull together, the state could soon play a more decisive role in shaping India’s financial story.
