DUBAI: The Kerala State Financial Enterprises Ltd (KSFE), a chit fund and loan company owned by the government of Kerala, will be raising its paid-up capital from Rs100 crore to Rs250 crore, the KSFE chairman K Varadarajan said in Dubai.
“The state government will be bringing in the additional capital of Rs150 crore as we are expanding the operations and targeting a turnover of Rs1 lakh crore next year from Rs87,764 crore in 2023-24,” he said while talking to businessbenchmark.news in Dubai.
However, he has not indicated any timeline on the government raising the additional capital.
A top team of KSFE, comprising the chairman K Varadarajan, Managing Director SK Sanil and three directors, has been on a tour of the Gulf countries to promote the chitty among NRIs.
KIIFB connection
The chairman said that KSFE has so far deposited Rs2,700 crore in Kerala Infrastructure Investment Fund Board (KIIFB) promoted by the government of Kerala to mobilise funds for large infrastructure projects in the state.
KSFE’s performance has improved significantly with the number of branches rising to 683, including 63 micro branches, and customer base to 55.39 lakh. Kerala’s finance minister KN Balagopal had earlier said that KSFE will set up a total of 1,000 branches across the state.
Networth as on March 31, 2024 stood at Rs1,337 crore and total deposits at Rs27,734 crore by 18.17 lakh depositors. The company has 54,920 chitty subscribers and 1,433 live chitties.
More promoters in GCC
KSFE is planning to appoint promoters on commission basis in the Gulf countries to enroll more NRIs to the chitties. “We will give preference to women promoters as they can spare more time in promoting the chitties among Malayalee communities,” he said.
