Karnataka State Financial

Corporation

Karnataka State Financial Corporation

Established in March 1959
Promoting and developing industrial growth
Financial Assistance
Category one merchant banker
State owned enterprise
Network of 32 branches

Financial
Services

Services
Infrastructure
Development

Term Loan

Schemes
of
KSFC

entertai
nment
industry

Assistance
to tourism
related
activities

Industry Wise Sanctions For The Financial Year 2013-14:

SL.N

Industry

Amount

(Amount in crore)

% to the
total

O
1

Hotels/Restaurants

373.90

41.12

Food

97.28

10.70

Engineering

94.71

10.42

Non-Metallic Products

72.99

8.03

Manufacturing

98.80

10.87

Chemicals

19.40

2.13

Others

22.78

2.50

Textiles & Readymade Garments

58.65

6.45

Rubber & Rubber Products

15.85

1.74

10

Printing & Publishing

13.79

1.52

11

Basic Metal

8.07

0.89

12

20.03

2.20

13

Transport/Transport
Equipments
Wood & Cork

6.50

0.71

14

Paper & Paper Products

6.51

0.72

909.26

100.00

Total

Research Methodology
Project Title A Study On Financial Performance Analysis With
Special Reference To KSFC
Objectives of the Study:
To know the growth and development of KSFC
To analyse the various types of loans and services offered by the
KSFC
To study the financial performance of KSFC
To study the financial assistance provided by KSFC to SMEs and
other sectors
To evaluate the financial position of the company

Sources Of Data:
Primary Data
Observation
Personal Interaction
Secondary Data
Reports
Financial Publications
Website
Place/Area Of Study:
KSFC , Udupi
Period Of The Project:
4 Weeks
Tools Of Financial Analysis:

Limitations:
The study is restricted for a period of five years
Due to time constraint, in depth study could not be conducted
The data is mainly based on secondary information as the
primary information is difficult to get
Authorities were reluctant to reveal full information about
the working of the Company

Ratio Analysis
Loans to borrowing ratio:
Loans to borrowing ratio= Loans / borrowings *100

250000
213932
200000

187458.1

185670.44
166586.6

203405.89
179880.72

166092.8
146079.7

150000

132140.38

111629.19
100000

50000

67.01
2009-10

71.17
2010-11

77.93
2011-12

Loans and advances

Borrowing

77.64
2012-13
Ratios

88.43
2013-14

Interest earned to interest expended

ratio:
Interest earned to interest expended ratio= Interest expended/interest income*100
30000
25000
19868.38

2000018214.48
15000

25478.98

24665.85

13706.49

20382.09

14391.03

18426.77

19305.56

15887.36

10000
5000
0

75.25
2009-10

72.43
2010-11

Interest income

77.95
2011-12

74.71
2012-13

Interest expended

Ratios

75.77
2013-14

Capital Adequacy Ratio:

CRAR
20
18
16
14
12
10
8
6
4
2
0

18.06
16.15
13.31

4.71

6.31

2009-10 2010-11 2011-12 2012-13 2013-14

CRAR

Non-performing asset
NPA
4

3.75

3.5 3.45
3
2.5

2.78
2.37

2.57
NPA

2
1.5
1
0.5
0
2009-10

2010-11

2011-12

2012-13

2013-14

Findings
KSFC is a financial super market

The corporation earned a gross revenue of Rs.284.59 crore

During the year 2013-14 , sanctions of loans under various

schemes touched Rs.909.26 crore
KSFC also has a bundle of schemes which cater to the varied
needs of the entrepreneurs.
NPA of the organisation have been managed well

Suggestions
Good publicity of the organisation
Close monitoring of the loans should be done
Minimum rate of interest to attract more borrowers
KSFC should reduce the time required to approve the loan
sanction period
Loan facilities may be extended to backward areas also

CONCLUSION
Karnataka State Financial Corporation has promoted many
enterprises and helped newly emerging entrepreneurs to develop
their plan towards their objectives and implement it, which also
helps in economic growth of the country. KSFC also gives
suggestions to the enterprises which have taken financial assistance
from KSFC. It encourages the new entrepreneurs by providing them
the loans and helping their dreams to be alive and come true.