SANASA Development Bank Ltd (SDBL) has recorded impressive performance in the year 2010. The Profit before Tax stood at Rs.649 Million compared to Rs.445 Million recorded the previous year indicating a growth of 45.7%. Profit after Tax was Rs.310 Million as against Rs.208 Million in previous year, a growth of 48.9%.
General Manager and CEO Nimal Mamaduwa said Net Interest Income increased to Rs.1.717 Billion from Rs.1.193 Billion, recording a growth of 43.9%. The Deposits have increased to Rs.12.6 Billion from Rs.10.8 Billion, a growth of 16.9% whilst Advances have increased to Rs.12.1 Billion from Rs.10.4 Billion, a growth of 18.5%, while the bank has succeeded in maintaining Non-Performing Loan ratio at 5.8% as against 6.6% the previous year.
“This trend is a direct consequent of a more focused and aggressive recovery campaign, together with a more discerning Risk Management Policy,” Mamaduwa added.
The Core-Capital (Tier-I) stood at 13.44% and the total Capital ratio stood at 14.1% as against the regulatory requirement of 10% and 5% respectively. The bank had also been able to maintain Statutory Liquid ratio at 25.6% which is above the regulatory requirement of 20%.
The bank continued to thrive on its considerable edge in this sphere given the fact that it grew out of a movement whose core economic thrust was microfinance.
“Through it all, the bank remained focused on strengthening the bottom of the pyramid while tailoring strategies to be in concert with the government’s stated objective of turning Sri Lanka into the “Miracle of Asia”. Overall, the year under review, saw the first signs of nation, sector and the Bank, reaping the promised peace dividend,” Mamaduwa said.
The Bank continued to expand its geographical reach during this year, establishing three new branches and 16 Extension Offices or Customer Service Centres. The overall network thus expanded from 53 to 73 at the end of December. The most significant development in this area was the opening of branches in Jaffna and Kilinochchi. Penetration into the formerly conflict-ridden areas continues to be pursued aggressively, with plans afoot to establish several Customer Service Centres in these two districts under the supervision of the relevant branches. The expansion envisages the establishment of such facilities in every DS Division in these two districts. In line with the overall strategy of expanding presence across regions, the bank opened another branch in the Western Province after a considerable lapse. Accordingly, the Moratuwa Branch was the 10th Customer Service Centre to be established in this province.
The Bank, with a view to enhance service delivery to the grassroots and facilitate greater participation of the lower income category in development processes, launched a comprehensive drive to form SANASA groups which will, it is envisaged, expand the owner base in the rural sector. Accordingly, 8,000 such groups were set up, involving 44,000 people, with training (in conjunction with the SANASA Campus) and market linkages (with SANASA Consumer-Producer Alliance, SANIPA) to help enhance rural incomes.
“We are a development bank and one that is inspired by a century long engagement in empowering the disempowered and in mainstreaming and uplifting the neglected. Social responsibility is both a core value of the bank as well as a necessity given that the vast majority of our shareholders in fact happen to belong to the social group that is typically targeted to enhance CSR portfolios,” Mamaduwa said.