Kerala State Financial Enterprises marks a historic milestone, strengthening its position as a people-centric financial model for inclusive growth.
Thiruvananthapuram, Kerala, August 27, 2025: Kerala State Financial Enterprises (KSFE), the Kerala government-owned financial institution, has become the first Miscellaneous Non-Banking Company (MNBC) in India to achieve a business volume of ₹1 lakh crore. The landmark achievement was officially announced by Chief Minister Shri Pinarayi Vijayan at a celebratory event in Thiruvananthapuram.
Congratulating KSFE on the milestone, the Chief Minister praised its role in the state’s progress. “KSFE stands as a vital financial alternative for the Creating a New Kerala vision. Its people-centric model can serve as a global example of how state-led institutions can drive inclusive and sustainable growth,” he said.
From modest beginnings with just 10 branches and ₹2 lakh in capital, KSFE has expanded to 683 branches and now commands a business volume of ₹1 lakh crore. In 2016, its business stood at ₹30,000 crore, which has more than tripled within a decade. The institution’s operating profit has also risen sharply—from ₹236 crore in 2016 to over ₹500 crore in 2024-25.
KSFE’s differentiated MNBC status under RBI guidelines has empowered it to expand its product portfolio, enhance operational flexibility, and strengthen financial inclusion. Over the years, initiatives such as the Pravasi Chitty for non-resident Keralites have driven growth and strengthened customer trust. Today, KSFE serves nearly 60 lakh customers, with plans to expand its base to one crore under the new initiative, Mission One Crore.
Finance Minister K.N. Balagopal, presiding over the event, credited KSFE’s success to the contributions of multiple generations. “KSFE remains a lifeline for both individuals and businesses and continues to provide consistent dividends to the government,” he said. The Finance Minister also launched KSFE’s new Fraternity Fund chit scheme, designed to cater to youth and professionals.
KSFE Chairman K. Varadarajan highlighted the company’s growth from ₹50,000 crore to ₹1 lakh crore since 2021, attributing it to credibility, transparency, and government backing. Managing Director Dr. S.K. Sanil further credited technology adoption and innovative strategies for driving profitability, with KSFE recording a profit of ₹512 crore in FY 2024-25.
As India’s first MNBC to cross the ₹1 trillion milestone, KSFE’s achievement underscores the critical role state-led financial enterprises can play in money circulation and economic growth, offering a resilient model even in times of global financial uncertainty.
About KSFE:
Kerala State Financial Enterprises (KSFE) is a fully state-owned financial institution headquartered in Thrissur, Kerala. Established in 1969, KSFE operates as India’s largest Miscellaneous Non-Banking Company (MNBC), offering chit funds, loans, deposits, and financial services. With a strong focus on accessibility, transparency, and people-first financial solutions, KSFE has become an integral part of Kerala’s social and economic fabric.
