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Thursday, December 1, 2011

Kerala Financial Corpn launches e-sale Web portal

The Minister for Finance, Law and Housing, Mr K. M. Mani, launched the e-sale Web portal and core financial solution at the Kerala Financial Corporation (KFC) at a function here on Wednesday.

Tata Consultancy Services has developed the core financial solution to fully computerise the loan accounts and automation of office procedures at KFC.


The core financial solution will make the corporation a paperless organisation in near future, company spokesman said.

It will also inter-link all zonal offices and branches and undertake automation of transactions, appraisal, disbursement, recovery and also financial and administrative activities. With the new system, customers of the corporation would be able to use the services of the corporation online.

The offer document of the KFC bond issue of Rs 100 crore was also released by the Minister at the function, which was attended by the Chairman and Managing Director, Mr Yogesh Gupta.


The bond issue has a green-shoe option of Rs 100 crore. The bonds would be in the nature of debentures with unconditional, irrevocable guarantee of the State Government.

The bond would be redeemable, non-convertible and taxable, and is rated ‘A-(SO)' by Brickwork Ratings, the spokesman added.

The face value of each bond will be Rs 10 lakh at 10.24 per cent per annum with half-yearly pay-outs. The maturity of the bond will be 10 years.

The investor will have the option to redeem the bond at the end of the fourth year at 25 per cent per year from the fourth year to the seventh year. The bonds will be listed on Bombay Stock Exchange (BSE).

The e-sale of assets taken over under Section 29 of the SFCs (State Finance Corporations) Act will bring transparency, fairness and complete openness in the sale of assets of defaulting borrowers.

It will ensure wider participation and better price for the assets. A person sitting anywhere in the world can participate in the e-tender/e-auction and make e-payment for EMD (earnest money deposit) as well as final sale price.

This will obviate any need for personal interaction with the KFC staff, eliminating any chance for foul play, according to the spokesman.

In this system, the bidder would be advised to log on to KFC website and the entire process of posting auctions, bidding and selecting of successful bidder will be done on internet.

The bidder who wishes to bid for the properties put up for sale has to be registered with KFC.

One of the best performing SFCs of India, KFC seeks to promote Micro, Small and Medium Enterprises (MSME), both in manufacturing and service sectors.


It is the only SFC that has given dividend during the last two years with a portfolio size of more than Rs 1,200 crore.

KFC has been adjudged as second in the FACT M. K. K Nair Memorial Productivity Award for 2009-10 in the category of service organisations.

The net non-performing assets (NPAs) of 1.88 per cent are at par with banking standards. The capital adequacy ratio is at a comfortable level of 22.2 per cent.


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