KFC Holding First-ever Loan Settlement Adalat

KFC

Thiruvananthapuram: In a bid to clean up the balance sheets, the Kerala Financial Corporation (KFC) is conducting its first-ever loan settlement adalat at its headquarters here. Thomas Isaac, Finance Minister, inaugurated the adalat and business conclave. The Minister underscored the importance of clearing the balance sheets of the corporation through entrepreneur-friendly measures. “The main objective of the adalat is to clear liabilities from the corporation’s balance sheets.  We may also have to employ Asset Restructuring Companies for the job in future,” he said. The corporation is expected to raise between Rs. 100 and Rs. 200 crore as the Non-Performing Assets (NPA) stands at Rs. 700 crore from about 2000 accounts.

Isaac also added that the adalat is also an effort to re-invent the corporation which was in past portrayed as a loan shark. Isaac had, in the past, written about defaulted loans worth Rs. 150 crore. “There is not a single person in the director board of KFC who could be influenced politically. Holding the adalat and business conclave by bringing together the leading minds in industries is an effort to usher in new prospects for KFC,” he added.

The business conclave will be held on May 8 and 9 during which it will unveil a new credit policy. Recently, the corporation had adopted base rate system over the previous prime lending rate of 14.50 per cent. Isaac will attend a panel discussion on startup environment and funding in Kerala during the business conclave. A C Moideen, Industries Minister, will address the panel discussion on improving the industrial climate in Kerala.

“During the conclave on May 9, we will unveil our new credit policy, declare our new interest rate structure and launch innovative schemes for Startups,” said Sanjeev Kaushik, Managing Director, KFC

Pinarayi Vijayan, Chief Minister, will inaugurate the valedictory function. KFC expects to disburse Rs. 1,200 crore in the 2018-19 fiscal with emphasised focus on startups. During the last financial year, the corporation had sanctioned Rs. 724 crore as loans to MSMEs. Also, Rs. 945 crore was recovered in the 2017-18 fiscal as against the previous fiscal’s Rs 875 crore.