Media Release

Mangaluru, Jul 31: Karnataka State Financial Corporation (KSFC) has been playing a pivotal role in nurturing the MSME sector in the state for the last six decades. KSFC has contributed immensely in mentoring of first generation entrepreneurs, extending financial assistance to weaker section of society, reaching out to SMEs in every district and in balanced industrial development across the state.

With a humble beginning of sanction of term loans to the extent of Rs 28.00 lac in 1959-60, the first year of its operation, the corporation has reached an all time high sanction of Rs 1,098.73 crore in 2018-19, the 60th year of operations.

KSFC is synonymous with development of MSMEs in the state. Since inception the corporation has sanctioned over Rs 17, 216.91 crore to as many as 1,73,507 MSMEs in the state.

During the last financial year, 2018-19, KSFC extended financial assistance of Rs 414.91 crore to women entrepreneurs, Rs 348.50 crore to scheduled caste and scheduled tribe entrepreneurs and Rs 69.88 crore for entrepreneurs belonging to backward classes and minority communities.

KSFC has been a role model and a leading State Financial Corporation (SFC) in the country. The growth in operations during the 80s and 90s was significant. The impact of globalization, liberalization and introduction of prudential and provisional norms to all term lending institutions along with the commercial banks, the corporation went through a lean phase in the late 90s. With its inherent strength, business acumen and generous help from Government of Karnataka and SIDBI, the corporation from the year 2003-04 has steadily recovered from the impact of external forces.

Many success stories of first generation entrepreneurs, the equivalent of startups of today, like Infosys, Biocon, Reva Electric Cars, MTR, Sansera Engineering, 24/7 Customers.com, Ace Designers etc, are part of growth of KSFC. Today, they have grown manifold and stand testimony to the faith the corporation had in them. Many more MSMEs have international fame and are big industrial houses today.

The core strength of KSFC is its professional team of experts drawn from various disciplines including the disciplines of Engineering, Finance, Market Researchers, Economic/Statisticians, Information Technology experts and more.

Customer centric approach with an emphasis on transparency in its operations is what makes KSFC standout among other peers.

Milestone year for KSFC

During the financial year 2018-19, the diamond jubilee year, the corporation sanctioned financial assistance to the tune of Rs 1,098.73 crore to MSMEs, disbursed an amount of Rs 665.90 crore. The recovery of loans was to the extent of Rs 736.35 crore. The net profit for the financial year 2018-19 is Rs 9.55 crore. The percentage of net NPA stood at 6.09%.

The above achievement is the result of a series of policy initiatives undertaken by the corporation and implementation of flagship schemes of the Government of Karnataka through the corporation, like the interest subsidy/subvention for Micro and Small Enterprises (MSEs) promoted by SC/ST, women and manufacturing enterprises promoted by general category entrepreneurs.

Plans for financial year 2019-2020

The focus of KSFC for the financial year 2019-20 is on creation of a quality portfolio by keeping the modest target for sanction at Rs 1,000.00 crore and to reach the benefits of flagship interest subsidy/subvention schemes of the Government of Karnataka to MSEs promoted by various sections of society across the state. The focus will also be on further reduction in NPAs and increasing operating profits.