KSFE Achieves Rs. 1 Lakh Crore Milestone

Thiruvananthapuram: Kerala State Financial Enterprises (KSFE) has achieved a historic milestone by crossing Rs. 1 lakh crore in business volume, making an unprecedented achievement for a non-banking financial institution in India. Kerala Chief Minister Pinarayi Vijayan, while inaugurating the celebration event at Thiruvananthapuram Central Stadium, said that this is a model of financial success to be presented before the world.

Despite economic recessions, demonetisation, and the COVID-19 crisis, KSFE has remained stable and continued its growth. This resilience, the Chief Minister said, makes KSFE a symbol of pride for Kerala and its financial sector. He noted that it is rare for a public sector organisation—particularly a non-banking one—to attain such a scale, and commended all those who contributed to this success.

KSFE's journey began in 1969 during the Left government led by EMS Namboodiripad, under the leadership of then Finance Minister P.K. Kunju. At the time, chit fund operations were dominated by private moneylenders who exploited the public. KSFE was launched as a people-friendly, government-regulated alternative, and it has since grown remarkably.

In 1975, the Kerala Chitties Act came into force, bringing all KSFE chit operations under strict legal compliance. Over time, KSFE expanded beyond chit funds to offer gold loans, housing loans, personal loans, and loans against chits—schemes designed to benefit common people.

What started with just 10 branches, 45 employees and Rs. 2 lakh in capital has now grown into a massive financial enterprise with 683 branches and over Rs. 1 lakh crore in business with more than 9000 employees. The institution manages more than 60 million financial transactions for over 5.7 million customers.

When the current Left Democratic Front (LDF) government came to power in 2016, KSFE’s business volume stood at Rs. 30,000 crore. In just nine years, it has grown more than threefold. Operating profits rose from Rs. 236 crore in 2016 to Rs. 500 crore now. Major reforms were undertaken during this period to make KSFE more accessible and people-centric. One of the notable steps was allowing Non-Resident Indians (NRIs) to participate in KSFE’s chit schemes.

KSFE is the first financial institution in India to fully computerise its operations (in the 1990s), ensuring transparency and efficiency in chit fund management. The chit schemes have now been made more attractive and digitally integrated. KSFE launched modern customer support services including a full-fledged call center. New features like insurance protection and group pension schemes have also been introduced. With mobile apps and a web portal, accessing KSFE services has become easier and more convenient.

NRIs from 121 countries and various Indian states have joined KSFE’s chit schemes. These schemes not only support personal investments but also contribute to Kerala’s infrastructure development. The "Pravasi Chitty" (Expatriate Chit) initiative is a major example of this dual objective.

The Chief Minister emphasised that KSFE must evolve into a financial institution with roots in every segment of society. As Kerala moves forward with its vision of a "New Kerala," KSFE has an important role to play. Institutions that understand and respond to the needs of the people must support their all-round development. With trust and transparency as its foundation, KSFE is poised for even greater achievements in the years to come.