Friday Sep 20, 2024
Friday Sep 20, 2024
Wednesday, 25 June 2014 00:00 - - {{hitsCtrl.values.hits}}
Profit Before Taxation excluding revaluation gain amounted to Rs. 400.2 million. This is a 49% increase against the previous year. “Three years on from a difficult phase, Prime Grameen Micro Finance Ltd. had turned around to record an outstanding Profit After Taxation of Rs. 255.9 million, which is a 13% increase against the previous year. What is significant is that we have been able to accomplish this feat after completely writing off the company’s Legacy NPL portfolio from the pre-acquisition period, by making impairment provisions by 2013/14 whereas the Central bank has approved a time line till 31 March 2015,” said B. Premalal, Chairman of Prime Grameen Micro Finance Ltd.
Prime Grameen was a troubled finance institution under the Ceylinco Group that was acquired by the Prime Lands group in June 2011 under a CBSL sponsored management restructuring program. Since acquisition of the company, which was going through a terminal stage in the year 2011, and with the transfusion provided, made it possible for the new management to resuscitate the struggling giant to once again be the front runner of the micro finance industry in Sri Lanka.
The tremendous turnaround resulted in Prime Grameen becoming one of the fastest growing financial institutions in Sri Lanka. This year, Sri Lanka’s commercial micro finance pioneer had managed to move out from a platform 3R’s of ‘Resuscitation, Revival, and Resurgence’ to the path of 
consolidation, stability and growth. The credit of this awesome transformation should be shared by all employees of this organisation
Within a short period of three years, its’ board and management not only revived the company but also made Prime Grameen a financially viable and stable financial institution. Its income during this three year period has increased by 314% to stand at Rs. 2.08 billion. The YOY growth is 51% in 2013/14. Earnings per share appreciated by 100.3% and total assets increased by 59% during this three year period.
Only rated MFI in industry
Prime Grameen is the only rated MFI in the financial industry that specialises in microfinance that focuses 100% on micro finance activities. During the financial year under review the company increased its deposit portfolio by 33%, and customers (micro borrowers) by 41%, and expanded its outreach through its fully fledged network of 48 branches and lent Rs. 6.4 billion. Total disbursements of loans since acquisition amounted to Rs. 15.08 billion.
Success tasted through challenges makes an organisation resilient and yearn for further glory. For Prime Grameen, the achievements of the year 2013/14 could be the ideal springboard to create new benchmarks in Sri Lanka for micro financing. Being the pioneer and the largest commercial microfinance operator in Sri Lanka, Prime Grameen is ideally positioned to add further laurels to their success story.
“The secret to our success is that we had a clear focus on our goals with defined strategies to meet them with periodical specific milestones backed by a very committed staff who gave 110% of their commitment,” stated Prime Grameen CEO Chaminda Prabhath.
Prime Grameen has set forth a well-planned corporate plan for the next three years with innovative products and services to cater to the ever growing needs of its borrowers as well as its expanding deposit holders. “We are a socially responsible and market-driven organisation that understands the pulse of our loyal customers, whether it’s a borrower or a deposit holder. Thus our strategies and policies will always be people oriented,” said Prabhath.
