HNB adds value to SME development

Wednesday, 12 January 2011 00:01 - - {{hitsCtrl.values.hits}}

By Sunimalee Dias

Hatton National Bank (HNB) will be increasing its focus on the small and medium enterprise (SME) sector in a bid to capture bulk of the economy’s prosperity, the bank’s Managing Director/CEO R. Theagarajah said.

Speaking at the launch of the HNB’s partner for SMEs product offering a full range of financial solutions together with all benefits and advantages providing individuals to realise their full potential and achieve their goals of business expansion and personal growth.

“We believe post war, the SME sector is in the best position to capture the bulk of prosperity,” he said adding that HNB is geared to funding, pricing, convenience and financial help and advice to help this sector perform better.

He noted that the bank while being more focused and fully engaged in the development of the SME sector they also hope to have an “exceptional loan growth in this area.”

In this respect, the bank is said to be ending the financial year with double digit numbers.

As the SME partner of Sri Lankan entrepreneurs, HNB will initially start this venture by offering support to new, existing and start up ventures in the agro industries, animal husbandry, horticulture, food processing, fisheries, construction, wood based products, retail and other small service business categories.

HNB COO Jonathan Alles said that this new product was launched in line with the national plan for SMEs as a growth engine of the economy.

This product is aimed at helping to reach some of the aggressive targets of the national economy by 2016.

It was pointed out that the bank was likely to join local and international agencies through joint ventures in a bid to take the development of this sector forward.

Some of the many benefits offered under this scheme are stand by facilities to augment working capital needs, a grace period on loans, discounted interest rates, concessionary legal documentation fees and assistance to complete documentation, discounted fees and commissions, free life and accidental death cover, discount on valuation fees, free internet banking, credit cards free of joining fee and VISA debit cards free of issuing charges.

Placed with a formidable SME clientele they aim to move forward with their existing ones and start with those joining for the first time.

As part of the new breed of SMEs right now in the market, the bank is poised to provide more improved facilities such as offering concessional rates of interest and hassle free loans in a bid to assist those trying to enter the market.