Sarvodaya Development Finance records Rs.28mn net profit in 1H

Sarvodaya Development Finance has shown significant growth based on the 6 months financial results ending 30th September 2017. 

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. 

The 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 Limited 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 programsto empower youth in the rural areas via Sarvodaya Higher Education Institute,” de Silva said.

After strategically centralizing 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 percent to 9 percent between 2016 and 2017 second quarter. The net non-performing loan ratio has also taken a dip from 4 percent to 2 percent during the same period. Furthermore, the company has also successfully increased its total shareholders’ fund by 7.3 percent in comparison to the previous year. 

Sharing his views on the occasion, Chief Executive Officer of Sarvodaya Development Finance Limited Dharmasiri Wickramatilake noted that Sarvodaya Finance has recorded a portfolio growth of 15 percent making a remarkable achievement compared to the corresponding period of the previous financial year which accounted for a decline of 2.5 percent. 

He also stated that growth in top line of 38 percent to reach Rs.609 million for the 6 months ending on 30th 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” he said.

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 1500 societies across the island.