Ideal Finance opens for business in Kadawatha

Thursday, 6 January 2022 02:23 - - {{hitsCtrl.values.hits}}

Ideal Finance Regional Manager Nishantha Kannangara, staff of newly-opened branch, Kadawatha, and senior management

Seeking to serve a wider clientele and increase accessibility to financial services, Ideal Finance Ltd., one of Sri Lanka’s reputed finance companies, recently unveiled the latest addition to its branch network with a new branch in Kadawatha.

This branch will help customers, in this high-growth region in the Western Province, to more easily access IFL’s portfolio of financial services. The new Kadawatha branch was officially declared open on 10 December 2021, and was marked by a special opening ceremony, amidst an intimate gathering of top officials and customers, in line with health guidelines.

IFL Chief Executive Officer Duminda Weerasekara said: “The opening of our branch in Kadawatha is a significant milestone on our journey, and part of our broader network expansion project. By the end of March 2022, we plan to double our reach and expand to most major cities in the country. This new branch will help us to provide customers in this region with ideal financial solutions.”

“Working together as a team, we are creating opportunities not just for our valued customers but also for our people, who have an opportunity to work towards their dreams here at IFL. We are pleased to have been recognised as an employer of choice in Sri Lanka, having been tipped as a Great Place to Work for three years consecutively. As we progress with our network expansion, we are also looking to consolidate our team to tackle future challenges,” he added.

IFL’s network expansion and portfolio diversification comes in the wake of Mahindra and Mahindra Financial Services Ltd., (MMFSL) investing in IFL. This is a multi-phase foreign direct investment (FDI) which commenced in February 2020, with Mahindra initially acquiring a 38.2% stake in IFL. The final tranche of the investment has increased the MMFSL’s holding to 58.2% in the 2021/22 financial year, resulting in FDIs to Sri Lanka totalling over Rs. 2 billion. IFL is backed by a global financial giant with over $ 11 billion worth of assets under management, a sum that exceeds the asset value of Sri Lanka’s entire banking industry.

Attesting to the success of its network expansion plan, growth strategy and alliance with Mahindra, IFL also announced its best-ever annual performance earlier this year, for the financial year ended 31 March 2021, having deftly navigated the challenges posed by the global pandemic.

The Profit Before Tax was up 76% YoY to Rs. 288.4 million, while Profit After Tax grew 74% to Rs. 183.8 million. The company’s Non-Performing Loans ratio also improved to 3.3%, bucking the industry trend, from 5.2% in the previous year. Following Mahindra’s investment in IDEAL Finance Ltd., Fitch Ratings has also upgraded IFL’s rating from BB (lka) to AA – (lka) with a stable outlook.

IFL is an NBFI registered with the Central Bank of Sri Lanka and commenced operations in March 2012 with a clear focus on the rural and semi-urban sectors. Its lending portfolio consists of gold loans, SME loans, personal loans, leasing facilities for motor cars, three wheelers, agriculture vehicles and commercial vehicles. IFL has developed a quality lending portfolio, while recording sustainable annual growth in profitability.