Kanakadurga Finance Limited is a company initially incorporated in the year 1994, engaged in the activity of providing auto finance and gold loans.
In the year 1980,Shri S. Lakshmi Narayana started auto finance business under a proprietary concern by name “Sandireddy Lakshmi Narayana Automobile Finance Co”. Later in the year 1986, the operations were further spread through another proprietary concern in the name of his wife, Smt. S. RatnaKumari, under the name “SandireddyRatnaKumari Automobile Finance Co.”. Further, with expanding business operations, in the year 1991 a partnership firm by name “Narayana Swamy Enterprises” was established. In the year 1994, all businesses were merged into one business by name “Kanakadurga Leasing and Finance Private Limited”. Later in 1996, the same was converted into a Public Limited Company (Closely Held) and was registered as a non-deposit accepting asset financing company with Reserve Bank of India. The company name is changed in May 2015 as Kanakadurga Finance Ltd (KFL).
The major strength of KFL since beginning has been its cautious stance on growth and expansion with robust risk management. Further, the company has been gearing up from time to time with the rapid technological advancements through timely investments in IT. All these strengths have reinforced the company’s growth exponentially throughout the states of Andhra Pradesh, Telangana & Karnataka. The operations are completely online with 100% MIS of all the branches and Corporate Office. The company has adopted ‘Smart Lend 3G’, a state-of-the-art software provided by SundaramInfotech. Strict adherence to robust credit policies and risk management since beginning has helped the company keep the net non-performing assets (NPAs) at below 1%. The gross NPA for FY ’15 was 0.217% and net NPA at 0.199 %.
The company is offering loans for the below products –
|Services||Year of Commencement of Services|
|LCVs, MCVs, HCVs||1994|
|Cars and Two Wheelers||2007|
The company has started its operations through providing lending for LCVs, MCVs and HCVs. But later, after some period lending to such vehicles was reduced through venturing into lending other lighter vehicles. However, under the present market conditions with good demand for heavy vehicles, the company is now providing funding for LCVs, MCVs and HCVs also.
The company is well-known in the hypothecation segment having been associated with various vehicle dealers, market intermediaries and various individual transport operators. The long term relationship with Individual Transport Operators enables the company in finding/tracing the credit worthiness and authenticity of borrowers, which helps the company in maintaining high recovery rate.