Karnataka State Financial Corporation took forward its growth by recording an operating profit of Rs 17.32 crore in 2006-07 as against Rs 8.56 crore in FY 2005-06. This was announced by the company recently.

This was achieved despite challenges like high cost borrowings, higher mortality of SMEs and thin operating margins.

During 2006-07, however, KSFC’s total income dropped to Rs 195.71 crore against Rs 210.16 crore in the previous year. Another achievement is arresting the growth of NPAs in FY 2006-07. The percentage of NPAs which was around 58 per cent in 2002-03 has been brought down to 33 pc by March 2007.