Lankaputhra Development Bank records impressive financial performance

Lankaputhra Development Bank has posted a net profit of Rs. 302 million in 2017 and against the Rs. 258 million profit recorded in 2016. This is the second largest net profit generated in the bank’s 11-year history. 

Expressing views to the media on this significant performance Acting General Manager/Chief Executive Officer Ranjith Dissanayake said that the earnings per share for 2017 was Rs. 8.38 and it was Rs. 7.17 in 2016. Interest income for 2017 was Rs. 834 million and that is the highest interest income earned by the bank so far. The bank has also managed to reach to the highest ever loan disbursement during 2017.

Return on Assets has increased from 3% to 4.3% and in terms of capital adequacy, the bank has reached the requirements of the Central Bank of Sri Lanka. The liquid asset ratio is well above the required limit and the bank has liquid assets to cover every need. The bank stated that the accounts were undergoing auditing at the moment and there was possibility for an improvement in these numbers.

“We can lend more this year, especially on the Government-sponsored loan schemes. There are several loan schemes at a concessionary interest rate of around 6.75% introduced by the Ministry of Finance. They are ‘Ran Aswenna,’ ‘Govi Nawodya’ and ‘Jaya Isuru’. Other than these loan schemes there is another scheme named ‘Green Loan’ that will be operative from this month. Under these loan schemes there are various categories but basically they are targeted at the small and medium enterprise sector. Our focus is on also the SME sector and as such we hope to create the necessary synergy. “Financial facilities could be obtained for all entrepreneurship fields, from agriculture to industry extending tourism, under these loan schemes. The benefits will pass on to the small and medium entrepreneurs from these loan facilities granted at a lower interest rates. We also encourage exports from the SME sector. During 2017 we have disbursed over Rs. 2 billion for uplifting the SME sector. We hope to maintain the same level for 2018 as well,” Dissanayake stated.

Lankaputhra Development Bank Ltd. is a licensed specialised bank owned by the Government of Sri Lanka established under the Banking Act No. 30 of 1988 incorporated in Sri Lanka under the Companies Act.