State banks have made significant progress under Unity Govt: Yapa

By Ashwin Hemmathagama – Our Lobby Correspondent

Key state banks have posted significant progress during the last financial year under the Unity Government, State Minister of Public Enterprise Development Lakshman Yapa Abeywardena confirmed in Parliament yesterday.

Joining the 17th allotted day of the Appropriation Bill 2018 - Committee Stage Debate on the Ministry of Public Enterprise Development, the State Minister listed growth at Bank of Ceylon, People’s Bank and the National Savings Bank which had contributed significantly to increase State revenue by 2% during the last two years.

“As the leader of the banking sector, Bank of Ceylon (BoC) has over Rs. 1.8 trillion worth of assets, a solid deposit base of Rs. 1.4 trillion and Rs. 1.2 trillion of advance payments as at June 2017. BoC is within the first 1,000 banks in the world. By 30 June 2017 we were able to reduce the non-performing credit ratio by 3.3% from what it was in June 2016. Our target is to reduce it to 2.7%,” he said.

During the period in focus, People’s Bank has also played a key role by providing credit facilities, enabling the Government to meet its development targets. 

“The Swashakthi loan scheme and financial assistance for the micro, small and medium sectors are key landmarks. The bank has contributed to establishing one million self-employment programs. During the first six months of this year, People’s Bank has reported Rs. 11.4 billion Profit before Tax. By the end of the first half of this year the total deposit base stood at Rs. 39.6 billion, which is almost 50% of the target,” he added.

National Savings Bank, which started in 1972, has expanded during the last 45 years catering to public needs through 250 branches, 4,061 post offices and 279 automated teller machines.

“There are a lot of issues with Lankaputhra Bank. These are issues that came with the past but need to be sorted. The way the loans were granted, the securities taken against the loans and the collection of loan repayments happened irresponsibly. We have taken action to sort out the issues. During the first six months of this year the bank has recorded Rs. 131 million Profit before Tax. Debt recovery has also improved by 31%,” the State Minister added.