Thursday Sep 19, 2024
Thursday Sep 19, 2024
Wednesday, 6 August 2014 01:26 - - {{hitsCtrl.values.hits}}
Prime Grameen Micro Finance Ltd., the leading micro financing service provider in Sri Lanka, announced that it has signed a memorandum of understanding (MOU) with Hatton National Bank Plc In keeping with the financial sector consolidation master plan outlined by the Central Bank of Sri Lanka.
Through this partnership HNB will acquire a 51% stake in Prime Grameen Micro Finance Ltd. This planned acquisition will help Prime Grameen Micro Finance Ltd. enhance the company’s overall competiveness and drive consistent growth.
Three years ago, Prime Grameen was going through a very difficult time and with the acquisition by Prime Lands Ltd., the leader in real estate industry under the aegis of Central Bank, provided the background for a significant turnaround resulting in a robust growth and an improved bottom line.
Prime Grameen was able to record all-around performances with a PBT of Rs. 549.7 million, annual loan growth of 24%, deposit growth of 33% and a return on equity of over 50% for the financial year 2013/2014 while maintaining a high quality asset portfolio with a NPA level of below 1% speaks volumes about the progress made.
Through the outreach of 48 branches and five service centres, Prime Grameen had provided yeoman service to the micro entrepreneurial sector of Sri Lanka mainly consisting of women. Prime Grameen had also been the pioneer commercially based micro finance operator in Sri Lanka with an unblemished history spanning over fourteen years.
Consolidation with a banking institution
Consolidating a financial institution with a banking institution of the calibre and profile of HNB could be the dream of any finance company. Now, Prime Grameen will be provided with the opportunity to seek low cost funding to further develop the micro finance industry in Sri Lanka whilst contributing to the lowering of the poverty index.
Micro finance as a poverty alleviating instrument is accepted by many countries in the world and the Sri Lankan economy had reaped the benefits in no uncertain terms. With the advent of the consolidation and through the synergy and strength gained, there will be novel financial products in the market to augment the present range of products of Prime Grameen.
Speaking at the MOU signing ceremony, Prime Grameen/Prime Lands Group Chairman B. Premalal reiterated: “We at Prime Grameen are absolutely delighted to enter into a consolidation with HNB drawing up new vistas for the micro finance industry. The troubled giant Grameen had been restructured and resurrected within a period of three years and the consolidation will provide the impetus for us to reach greater heights in the micro finance sector. We look forward to a great future with HNB and make a telling contribution towards the betterment of the national economy.”
Speaking at the MOU signing ceremony, Prime Grameen/Prime Lands Group Deputy Chairperson Sandamini Perera said: “Prime Grameen Micro Finance Ltd. is a fast growing company and consolidation with HNB will help the company to grow in leaps and bounds. We are confident that with this new agreement all members, customers, depositors and our professional staff at Prime Grameen will benefit immensely.”
“The farsighted vision of the Governor of the Central Bank and his dynamic staff should be complimented for the focused approach in ensuring the consolidation of financial institutions in Sri Lanka. The HNB-Prime Grameen consolidation will no doubt be a groundbreaking event and the Central bank will hopefully grant the HNB/Prime Grameen venture one of the three micro finance institution status as enumerated at the beginning of the consolidation process,” a statement added.
