The banking regulator, Reserve Bank of India, has allowed Kerala Financial Corporation (KFC) to raise domestic deposits in rupee denomination.
Making the announcement, the Chairman and Managing Director of Kerala Fin Corp, Mr. Yogesh Gupta said that the norms applying to financial institutions for raising deposits from the general public are very strict.
The central bank gives permission to financial entities for raising deposits from public after taking into consideration factors like financial performance, conformity to specific rules and the level of non-performing assets of the entity.
Although, KFC had recorded high levels of non-performing assets in the past couple of years, it managed to curtail it to 1.3 percent last fiscal year. During the last year itself, it reported its highest ever profit levels and announced highest dividend amongst all nationalized entities in Kerala.
The non-banking financial company, KFC, provides loans on soft terms to accelerate industrial growth in the state of Kerala.