22 December 2014 04:40 am Views - 2942
Reflecting its new strategic direction, streamlined operations, infusion of leading industry professionals to top management and the renewed vigour and enthusiasm among staff members, SANASA Development Bank posted a profit of Rs.138.2 million for the September Quarter, which is 90 percent above its performance during the same period last year.Having made vast strides in improving economic conditions and uplifting lives in the rural sector, while reducing regional economic disparities over the past 17 years, SANASA Development Bank has widened its scope of operations to encompass broader segments of society, as well as institutional players. Following its initial success in the cooperative, microfinance and the SME sectors, the Bank has made successful inroads in capturing a wide cross-section of Community Based Organisations, NGOs and the SME sector among its clientele.
The Bank’s product portfolio has also been diversified to include ‘LakDaru’ for children,‘ Bhagya’ savings certificate for women, ‘Javaya’ family savings accounts, ‘Upahara’for senior citizens and “Uttamachara’ for service personnel, as well as SDBL leasing, ‘SondoruSevana’ housing loans and ‘SwarnaKirana’ pawn broking. Corporate products and service reflect the latest developments in this sector.To spearhead its new strategic direction, SANASA Development Bank has recruited leading figures in the industry to its top management, including Kumar Mayadunne, who counts over 40 years in banking, with senior positions at international, state sector and private sector banks, as well as consultancy roles at leading financial sector institutions.
Kumar Mayadunne stated that the successful initiatives of the Bank in the cooperative and microfinance sectors have enabled many of its customers to raise their profile as established players in the SME as well as corporate sectors. Mirroring the progress of its customers, SANASA Development Bank has also raised its scope of activities to the next level,thereby enabling it to offer customers a seamless progression in its product and service offering. ‘As our customers rise to the next level in their businesses or careers, we are there to serve them’ said Mayadunne.
Elaborating further, he declared that SANASA Development Bank has invested in a state-of-the-art IT platform which enables it to streamline operations, reduce costs and improve efficiency, while also offering palmtop-enabled services at the doorstep of customers. The Bank’s customers are issued with VISA debit cards, with access to SANASA Development Bank’s own branch network, in addition to the shared ATM network of Commercial Bank. As part of the e-banking platform, the Bank will be offering Internet Banking and SMS alerts in the near future.
Kumar Mayadunne pointed out that the Bank remains relentlessly focused on improving the livelihood of deserving sections of society, especially the rural sector. Provision of low-cost funding is facilitated by comprehensive business process re-engineering, which has resulted in significant improvements in efficiencies, while lowering costs. These benefits are passed on to the customer by way of low-cost loans, as well as better yields on their investments.
SANASA Development Bank’s focus on the regions is especially evident in its growing branch network, currently comprising 81 branches and 14 service centres, which are mostly located in areas outside the Western Province. These include the Northern and Eastern provinces, which are experiencing an economic resurgence following the dawn of peace. Plans are underway to increase the branch network to 100 branches by of 2016. Deposits and earnings from the rural sector are used exclusively for the development of this sector.
GOOD PERFORMANCE
Sanasa Development Bank’s General Manager/CEO Nimal C Hapuarachchi is especially enthusiastic about the performance of the Bank.He stated that ‘Third quarter income has risen by 7 percent to Rs.1.2 billion, while net interest has surged by 34 percent to Rs.636 million during this period. Total operational income has also risen by 28 percent to Rs.723 million, while non-performing loans are well below the industry average. He is confident that the Bank can raise its core capital to Rs.5 billion, while improving its balance sheet figure to Rs.100 billion by 2017.
As Sri Lanka’s population ages, there is a growing awareness that the older age groups should remain productive citizens. Hapuarachchi declared that SANASA Development Bank has initiated a special scheme for Government pensioners, offering up to Rs.1.5 million in loans at 9 – 13 percent interest, which are repayable up to the age of 70. The loans are covered by an insurance scheme which provides peace of mind to those who’ve obtained them. Service personnel, as well as those declared missing in action are provided loans up to Rs.2 million, which can be used for income-generating activities.
CONFIDENT OF MEETING REQUIREMENTS
Hapuarachchi, as well as Mayadunne are confident that SANASA Development Bank remains in a position to meet all requirements of the Central Bank of Sri Lanka. They strongly believe that the Bank’s staff members have played a key role in helping them achieve such an impressive performance in the recent past. SANASA Development Bank continues to invest in its staff, with a view to improving their professionalism as well as providing them with greater opportunities for career success in the years ahead.