Sarvodaya Development Finance shows impressive results in 1st half of FY 2017/18

Sarvodaya Development Finance, the pioneer in microfinance in Sri Lanka, has shown significant growth based on the six months financial results ending 30 September. The company has recorded a significant growth in terms of net profit after tax in 2017, compared to the corresponding period of the previous financial year. 2017 has marked a year of accomplishment and impactful growth for Sarvodaya Finance, the financial services arm of the Sarvodaya Movement, thrusting the company towards the forefront of Sri Lanka’s microfinance sector. 

Commenting on the significant growth achieved by Sarvodaya Finance, Chairman of Sarvodaya Development Finance Ltd. Channa de Silva underscored that the company has successfully transitioned from a basic micro finance firm to a fully-fledged financial institution, involved in funding leasing, SMEs, personal loans and pawning. 

“Going beyond the ordinary banking norms, we have constantly strived to empower people from the grassroots. Our profits are circulated through Sarvodaya Movement to empower rural communities and fund numerous social service programs. We offer loans for beneficiaries in rural and urban communities for conveniently affordable rates. During calamities such as floods and drought, we have always been in the forefront to support the affected businesses in times of need. We have also taken steps to empower entrepreneurs, and thereby create jobs that could strengthen and elevate their finances, living standards as well as education. Furthermore, we conduct leadership training programs to empower youth in the rural areas via Sarvodaya Higher Education Institute,” de Silva said.

Expressing his views on the current economic trends, de Silva further added that the time has come for the country to re-examine its approach to the challenges of development with a new mindset. “Economic policies should be redrafted to strengthen the rupee to at least the 1990’s level, while fiscal and monetary policies should be reviewed to create an environment of low interest rates and low taxes, leading to a backdrop that encourages entrepreneurial activity and employment creation,” de Silva further said.

One of the core reasons behind its trajectory of success lies in the crucial development undertaken by Sarvodaya Finance during the current financial year. Accordingly, the company has rationalised its branches while strategically boosting its brand visibility and public awareness. Measures have been taken to reorient overall staff in a bid to deliver optimal services to the customers topped with total care and commitment. Keeping abreast with the emerging technologies, Sarvodaya Finance has also taken steps to fully automate its operations, starting from all internal processes. 

Today Sarvodaya Finance serves with 30 branches and 21 customer service centres, reaching out to the most remote areas in the country and supporting and sustaining the development from the grassroots. The company has taken bold steps to upgrade and relocate its offices under a rigorous marketing drive, extending its customer reach through the stalwart Sarvodaya Movement, to over 1,500 societies across the island.

After strategically centralising its back-office operations, Sarvodaya Finance has approached a wider customer-base with a fresh brand image, resulting a prominent growth in business. This has tremendously helped the company to improve overall efficiency and productivity. Standing testimony to its impactful growth, the Gross Non-performing Loan ratio of Sarvodaya Finance has dropped from 13% to 9% between 2016 and 2017 second quarter. The Net Non-Performing Loan ratio has also taken a dip from 4% to 2% during the same period. Furthermore, the company has also successfully increased its total shareholders’ fund by 7.3% in comparison to the previous year.  Sharing his views on the occasion, Sarvodaya Development Finance Ltd. Chief Executive Officer Dharmasiri Wickramatilake noted, “Sarvodaya Finance has recorded a portfolio growth of 15% making a remarkable achievement compared to the corresponding period of the previous financial year which accounted for a decline of 2.5%. He also stated that growth in top-line of 38% to reach Rs. 609 million for the six months ending on 30 September, where Net Profit After Tax of Rs. 28 million recorded for the six months period has been considered a significant achievement under the circumstances. Despite the negative market, we have grown predominantly in SME, leasing and personal loans.”

Elaborating further Wickramatilake noted, “I am confident that we can maintain growth in all market segments and achieve robust growth in leasing, SME and Personal loans, while preserving the quality of the portfolio. Plans are underway to boost our human resource management systems, enabling us to gradually improve productivity across the company within a more customer centric organisation culture. Our customers can look forward to a host of exciting technology advances streamlining the mobile phone based platform along with a wider access to our services through national ATM network.”

Driven by its core values of caring and passionately committed service, Sarvodaya Finance continues to forge ahead with its business operations backed by the firm belief of generating stronger returns for all stakeholders in the new financial year.