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SANASA DEVELOPMENT BANK records a pre tax profit of 125 Mn in 2006 SANASA Development Bank (SDBL) achieved an all time high in its 10 years of operations with a balance sheet value of Rs. 5.9 billion as at December 31, 2006 a growth of 47 per cent over the previous year, said General Manager/Chief Executive officer of SANASA Development Bank, Nimal J. B. Mamaduwa. The profit before tax which was Rs. 58 million in 2005 shot up to Rs. 125 million for the year ending December 31, 2006. Similarly the profit after tax for the year 2005 literally went through the roof with an enhanced profit of Rs. 100 million plus, the highest ever in the history of the bank, added Mamaduwa. The growth rate achieved in the pre tax profit was 113 per cent and that of the post tax profit a huge 109 per cent. Advances to customers also recorded a growth of 51 per cent. The Bank adopted a strong risk management strategy in both pre and post sanction credit administration. The sharp drop of NPA ratio from 6% in 2005 to 4.8% in 2006 reflect the effects of good risk management, the high standard of credit evaluation and the effective post credit monitoring and follow up. A key factor, the cost/income ratio which stood at 77 per cent in 2005 was reduced to 65 per cent in 2006. Overall deposits grew by an impressive 51 percent. Special schemes for senior citizens, minors and women continued to attract new depositors despite an aggressive deposit mobilization campaign by our competitors. However , the need to achieve a more desirable deposit mix persists and the bank will make this a priority during 2007, altering the mix through a well-planned deposit mobilization campaign in parallel with branch expansion program. SANASA Development Bank was also able to increase its capital base by Rs. 587 million, an increase of 70 per cent during 2006. SDBL is confident that it will be able to comply with the minimum capital requirement laid down by the Central Bank by the year 2009. This would be possible through investment made by SANASA primary societies as well as from local and foreign investors, he added. The Bank is riding on the crest of victory and would consolidate its success by placing its footprints, firmly and securely, throughout the whole of Sri Lanka. “The network of 26 branches will be expanded this year. We need to be present in all districts and provinces”, Mamaduwa said. SANASA Development Bank is evolving from a relatively small institution to one with significant market presence. Its impressive all-round performance in 2006 demonstrates the vast potential that exists. The entire management and staff of SANASA Development Bank are fully geared to face the challenges of the future and are confident of improving on the excellence achieved in 2006, he concluded. SANASA Development Bank (SDBL) is a specialized licensed bank, which commenced operations in 1997. SDBL was established as the apex credit institution of the Thrift and Credit Co-operative Movement (SANASA). Its primary objective is strengthening the SANASA movement to evolve as a sustainable rural credit institution and to improve the living standards of the rural poor, by providing credit and other support for self employment projects. SDBL also conducts capacity building programs for the SANASA primary societies and conducts training programs in areas such as entrepreneurship, business management ect for its customers. By virtue of its objectives, profit is not the sole motive of SDBL. The SDBL presently has 26 branches and Extension centers at Akuressa, Anuradhapura, Battaramulla, Chilaw, Colombo city, Embilipitiya, Horana, Kandy, Karapitiya, Kegalle, Kiribathgoda, Kurunegala, Matale, Moneragala, Rathnapura, Ruwanwella, Sahasapura, Vavuniya, Warakapola, Kuliyapitiya, Kalutara, Ambalangoda, Ambalanthota, Matara, Pottuvil, Kalmunai .The newest branch was opened in Galle city at No:03, Ward Place, Galle. The bank arranged to open 03 more branches in Negambo, Polonnaruwa, & Rikillagaskada before the end of 1st quarter 2007.
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