Ideal Finance further ramps up branch network in rapid expansion drive

Monday, 25 October 2021 04:00 - - {{hitsCtrl.values.hits}}

Opens branches in Chunnakam, Nelliady, Ja-Ela and Kaduwela

Ideal Group Chairman Nalin Welgama

Ideal Finance Deputy Chairman Aravinda De Silva

Adding momentum to its expansion drive, a key component of the company’s growth strategy, Ideal Finance Ltd., (IFL) opened four branches in strategic locations in the Western and Northern Provinces, strengthening its network to 17 locations.

IFL, which earlier announced plans to more than double its branch network within the current financial year by adding 16 new locations, opened the new branches in Chunnakam, Nelliady, Ja-Ela and Kaduwela. These branches will offer IFL’s comprehensive suite of financial solutions including fixed deposits, leasing facilities and gold loans.

“The timely expansion of Ideal Finance’s footprint in key rural, urban and semi-urban areas enables our customers to access our services more easily, while also positioning the company to benefit from economic transitions taking place within the country,” Ideal Finance Deputy Chairman Aravinda De Silva said. “The strengthening of the branch network will support in achieving the company’s growth strategy, which we are confident will propel Ideal Finance to the next phase in its progression.”

The opening of the new branches enhances IFL’s presence in significant commercial centres with high-growth potential within the Northern and Western provinces.

IFL’s rapid expansion drive follows the company attracting Rs. 2 billion in Foreign Direct Investment (FDI) from India’s Mahindra & Mahindra Financial Services Ltd. (MMFSL). MMFSL is now Ideal’s Finance’s largest shareholder with a 58.2% stake. This provides IFL the backing of a massive financial giant with over $ 11 billion assets under management, which far exceeds that of Sri Lanka’s entire banking industry.

Reflecting the enhanced stability of Ideal Finance following the receipt of the investment from MMFSL, Fitch Ratings upgraded IFL’s rating (from 'BB-(lka)’ to ‘AA-(lka)'), with a Stable Outlook.

IFL also announced its best-ever annual financial performance in the last financial year (ended 31 March 2021), emphatically overcoming the impact of the pandemic. The company improved all key financial indicators from the previous year. Profit Before Tax (PBT) increased by 76% to Rs. 288.4 million on a year-on-year (YoY) basis. Profit After Tax (PAT) grew by 74% to Rs. 183.8 million YoY. Gross Non-Performing Loans (NPL) ratio improved to 3.3% for the financial year, from 5.2% in the previous year.