KSFE at a glance

Introduction

The Kerala State Financial Enterprises Limited, popularly known as KSFE,

# Is a Miscellaneous Non-Banking Financial Company (MNBFC),

# Is fully owned by the Government of Kerala.

# Is one of the most profit-making public sector undertaking of the State.

# Was created by the Government of Kerala with the objective of providing an alternative to the private chit promoters in order to bring in social control over the chit fund business, so as to save the public from the clutches of unscrupulous fly-by-night chit fund operators.
# Has been registering impressive profits every year, without fail since its inception.

A striking point is that all the funds mobilised by KSFE through its various deposit schemes and chitties are advanced wholly to the public in Kerala itself; whereas other financial institutions and banks channel their deposits collected in Kerala for advances outside the State.

	OUR VISION
	To become a significant player in the financial services sector by
::	Providing a whole range of quality services and products.
::	Adopting technology and benchmark standards in customer service and performance.
::	Spreading our wings beyond the borders of Kerala, on a global level.
::	Retaining the pre-eminent role in Chitty business.
::	Continuing focus on extending resources to the Govt. of Kerala.
::	Sustaining commitment to the weaker sections of society, as the neighborhood institution for support, trust and security.

 

KSFE pays to the Government of Kerala crores of rupees every year by way of:

#Guarantee Commission,
# Service Charges, and
# Dividend.

Upto 31.03.2008 an amount of Rs. 240 Crores has been paid on the above head of accounts. Therefore, financially and service wise, KSFE contributes immensely towards the Kerala economy.

Beginnings

# KSFE was created by the Government of Kerala on 6th November 1969.
# The Paid up capital then was Rs. 2 Lakhs.
# Total number of employees at the start was 45.
# The number of branches KSFE began with was 10.
# The Head Office of KSFE is placed in Trichur, the hub of Chitty business in Kerala.

Scenario today (Sep. 2008)

# Paid up Capital is Rs. 10 Crores.
# Total number of employees is more than 4,000.
# The number of branches is 289.
# The number of customers is more than 20 Lakhs.
# Annual Business is Rs. 5,462 Crores.

Chitty

Chitty is the main product of KSFE.

It is a unique financial product, which blends the advantages of both investment and advance.
It is a risk free safe haven for the public as KSFE conducts only chitties fully governed by the provisions of Kerala Chitties Act, 1975.
The instalment per month for chitties range from Rs. 500 to Rs. 1,00,000 and the usual duration of chitties are 30 months, 40 months, 50 months, 60 months and 100 months.

Other Schemes Offered are given below:

1. Loans & Advances:

Although Chitty is in essence a loan/advance scheme, for subscribers whose chitties are not getting prized and, at the same time they are in need of money, relief has been provided by two loan schemes built within the chitty scheme, viz. Chitty Pass Book Loan and New Chitty Loan.

KSFE offers other loan/advance schemes, comparable to those given by banks and other financial institutions, and the same includes:

Gold Loan Scheme, Reliable Customer Loan, Consumer/Vehicle Loan, Special Car Loan, New Housing Finance Scheme, Flexy Trade Loan, Tax Planning Loan Scheme, Fixed Deposit Loan Scheme and Sugama (Akshya) Overdraft Scheme.

2.Deposit schemes:

Fixed Deposit, Short Term Deposit, Sugama Deposit (which is similar to the savings deposit in Banks), Chitty Security Deposit-in-Trust and Sugama Security Account.

3. Fee Based Activities of KSFE:

Western Union Money Transfer - as sub agent of Paul Merchants Ltd,
Life Insurance as a corporate agent of LIC, and
General Insurance as a corporate agent of NIC.

4. New Schemes:

A new scheme, viz Safe Deposit Locker, has been introduced and the response is so impressive that this facility may be expanded.Now 28 branches have the SDL facility.

5. Securities:

From chitty subscribers and customers who avail loans/advances of KSFE, KSFE accepts various types of securities which include:

Fixed Deposits with KSFE or approved Banks, Bank Guarantee, NRI Deposits, LIC Policies, National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Chitty Pass Book of Non-prized Chitties, Gold Security, Post-dated Cheques, Personal surety and Property Security.

Future plans KSFE contemplates:

1. Making KSFE a fully computerised Company.

2. Opening more and more new branches, including chitty units to establish its presence in all major centres and backward areas, aiming at effective rural penetration.

3. Introducing value additions in chitty schemes - for coping with the fierce competition in the financial market, for more popularity and widening our customer base.

4. Acting as the collection agent for KSEB, KWA, etc., throughout the state.

5. To construct a multi-storeyed building in KSFE's own premises in Kakkanad, Cochin and to house among others a Staff Training College for itself.

6. Introduction of new schemes like, Educational Loan, Agricultural Overdraft and Cumulative Deposit Scheme.

7. Expanding its door collection facility to loan accounts and deposit schemes suitably, which is expected to create considerable employment opportunities as part of its social objective.

8. Introduction of chitties with simultaneous draw and auction which can be offered as an incentive to regular customers for whom it will be a great attraction, particularly for those with saving attitude.

9. Introduction of Daily/Weekly draw/auction chitties, which is expected to have a wide scope among traders, will raise the Company's market share considerably.

10. Enter the arena of Credit/Debit Card business - immediately after branch networking the Company plans to launch the 'Debit Card' business.

11. Starting of Virtual Branch through net worked computer systems for the benefit of NRIs particularly Malayalees in the Gulf & other countries is on the anvil. This will obviate the need for "brick and mortar branches" and will enable customers who have internet access, to transact with the Company through virtual branches.

KSFE today is synonymous with chit funds and is presently the biggest chit promoter in India. KSFE's vision is to become a 'financial supermarket', a 'One stop Shoppe' for all financial services.

The Growth of Business over years: