Kerala Financial Corporation (KFC) reported a net profit after tax of ₹110.73 crore for the financial year ended March 31, 2026, a 12.81 per cent increase over the previous fiscal.
The strong growth — driven by higher lending activity and better asset management — represents the best performance in the Corporation’s 73-year history and underlines its continued contribution to Kerala’s MSME sector and industrial growth, said a press release.
Reflecting this momentum, KFC’s total loan portfolio crossed the ₹9,000-crore milestone to reach ₹9,080.65 crore as of March 31, 2026, up from ₹8,011.99 crore a year earlier. During the fiscal, the Corporation recorded loan sanctions worth ₹4,532.11 crore, disbursements of ₹5,628.69 crore, and recoveries amounting to ₹5,389.37 crore, highlighting sustained business expansion and operational efficiency.
Institutional net worth increased to ₹1,513.13 crore, up from ₹1,328.35 crore. The Capital to Risk-Weighted Assets Ratio (CRAR) reached 30.70 per cent above the regulatory requirement.
Asset quality indicators also saw notable improvements. Gross non-performing assets declined to 2.32 per cent from 2.67 per cent, while net NPA improved to 0.43 per cent from 0.61 per cent, reflecting strict credit appraisal systems, monitoring mechanisms and recovery frameworks.
“Kerala Financial Corporation’s record performance during FY26 reflects the institution’s strong financial discipline, customer-centric approach, and unwavering commitment towards entrepreneurial and industrial ecosystem. Our consistent focus on responsible credit expansion, technology-driven operations, and asset quality management has enabled us to achieve sustainable growth while maintaining strong financial fundamentals. KFC remains committed to supporting MSMEs, startups, and emerging sectors that are critical to Kerala’s future economic transformation,” said NSK Umesh, Managing Director of KFC.
Looking ahead, KFC continues to drive grassroots entrepreneurship through targeted financial initiatives. Under the Chief Minister’s Entrepreneurship Development Programme, eligible MSMEs are offered loans up to ₹2 crore at subsidised interest rates. Meanwhile, the “Startup Kerala” scheme provides collateral-free funding of up to ₹10 crore to startups at various stages of growth, ensuring innovators have the capital they need to succeed across the state.
Published on May 27, 2026