Commercial Credit opens for business in Ratnapura

Tuesday, 25 January 2011 00:01 -     - {{hitsCtrl.values.hits}}

On the fast track towards establishing itself as one of the most exciting and progressive finance companies in Sri Lanka, Commercial Credit Limited is poised to expand and enhance its presence in the country as it pursues its vision of becoming a significant force in the finance industry.  

A change of management in October 2009 infused Commercial Credit with new leadership, strength and vision, fuelled by a desire to propel the company towards the highest echelons of the industry through a pioneering corporate culture.  Moving towards a liberated corporate mindset, powered by a dedicated and empowered workforce striving to reach new levels of performance and service, Commercial Credit is proving the merit of this strategy through a rapidly multiplying customer base.

The re-launch of Commercial Credit’s presence in Ratnapura is an extension of this service promise, as the company aims to build strong customer relationships through an enhanced and extended portfolio of services.  “Those who eagerly awaited the unwrapping of the company’s new premises in the district under the theme ‘Unwrap Your Dreams’, will now be able to experience the same unprecedented levels of service and satisfaction offered by the flagship branch in Colombo,” said Regional Manager of the Ratnapura Branch, Ayesh Pitigala.  

“Our aim is to help the people of Ratnapura realise their financial aspirations through the variety of flexible services that we offer, facilitating the district’s economic empowerment,” he added.

The new branch was declared open by the Chief Guest H.M. Ekanayake, Additional Director of the Central Bank of Sri Lanka, who commended Commercial Credit for its remarkable performance, with the Company being tipped to hit the Rs. 5 billion mark in its asset base, thus bringing it into the category of Sri Lanka’s Large Finance companies.

“The fact that Commercial Credit has recorded a remarkably low NPL of 2% is a laudable achievement and we look forward to the Company taking its place as a stable leader in the Country’s finance sector,” Ekanayake said. He added that with the cessation of hostilities, Sri Lanka was now poised to become a hub for several sectors, while the attractive incentives offered for foreign investment should propel the country into a new era.

Ekanayake also said that the Central Bank would be introducing a new act shortly to ensure the stability of all financial institutions in the country and acknowledged the contribution made by the Country’s financial institutions towards the growth of the economy.

Commercial Credit’s Chief Executive Roshan Egodage said the company will at all times aspire to not only reach but exceed the standards set by the Central Bank.  “We greatly admire the leadership role played by the Central Bank and will aspire towards their endorsement in any and all ventures we undertake,” he said.  

Despite being a relatively new entrant into the finance sector, the company’s performance under the new management has proved the strength of its revolutionary strategy.  The Interest Income and Interest Expenditure Gap – the core income of a finance company, grew a staggering 700% from Rs. 10 million to Rs. 70 million per month from 2009 to 2010, while the Cost to Income Ratio fell from 85% to 45%, well below the industry average of 83%.

Meanwhile monthly collections recorded a 500% increase from Rs. 60 million in 2009 to 300 million at the end of 2010, while the Gross NPL ratio fell from 12% to 2%.  The focal point of interest, the company’s profit margins saw an exponential growth.  

From a loss making year in 2009, Commercial Credit said it was set to deliver a predicted minimum profit of a Rs. 400 million at the end of the current financial year, an unprecedented growth not achieved by any finance company.