Development banking a continuing need for Lankan biz: DFCC Chief

DFCC Chairman Royle Jansz

DFCC Chairman Royle Jansz has emphasised that development banking, the core activity for which the bank was founded, would remain a continuing need for Sri Lankan businesses and he would not lose sight of it even though DFCC was about to begin an era as a full service bank.

Celebrating the diamond jubilee of its operations, DFCC at Bank level saw its net lending grow by Rs. 12 billion to Rs. 73.4 billion as at end of the 2014/15 financial year. At Group level the figure rose to Rs. 135 billion up from Rs. 112 billion a year earlier. 

Gross loans and receivables amounted to Rs. 141.3 billion, up from Rs. 119 billion. The manufacturing sector had the biggest support at Rs. 37 billion, followed by trading (Rs. 30.1 billion), agriculture and fishing (Rs. 12.5 billion) and Construction (Rs. 13 billion). Total Group assets surpassed the Rs. 200 billion mark rising to Rs. 211 billion in FY15 from Rs. 175 billion in the previous year, reflecting a 20% growth. 

Established in 1955 with a mandate to spearhead development financing in a newly independent nation, DFCC Bank Plc has over the past 60 years grown, evolved and diversified to meet the changing needs and aspirations of an emerging economy.

“We see development banking as a continuing need for Sri Lankan businesses, at least in the medium-term, but with commercial banking as a necessary addition,” Jansz said.

In this context, the conversion of DFCC Bank to a company incorporated under the Companies Act in terms of the DFCC Bank (Repeal and Consequential Provisions) Act No. 39 of 2014 was pursued last year. 

This according to Jansz, “will not only permit the Bank to carry on its business as a licensed specialised bank without interruption, but also enable it to consider various options in evolving to a Full-Service Bank.”

DFCC has announced the merger with fully-owned commercial banking subsidiary DFCC Vardhana Bank after it terminated an amalgamation of the Group with NDB. 

“While embracing the Full-Service Banking model, we will not lose sight of DFCC Bank’s development banking mandate on which it was founded 60 years ago,” Chairman Jansz has assured stakeholders in DFCC Bank’s Annual Report for FY2015.

He also said that in the 60th year of the bank, relationships built with customers remain as strong as ever and “we re-dedicate ourselves to their service and remain committed to strengthening their businesses.”

He has also reassured shareholders that the bank was committed to achieving superior levels of performance benchmarked against the industry and would strive to further enhance the value of their shareholding.

“The future is ours to mould. Our achievements represent a noteworthy contribution to Sri Lanka’s development and we have stayed true to our mandate. DFCC Bank is, and always will be, concerned with ‘much more than money’,””Chairman Jansz has emphasised. 

In FY15, Group after-tax profit grew by 38% to Rs. 4.44 billion. Pre-tax profit was Rs. 5.4 billion, up from Rs. 4.1 billion in FY14.

Major shareholders of DFCC Bank include Bank of Ceylon (14.35%), HNB (12.22%), Sri Lanka Insurance Corporation (10%), EPF (9.19%), M.A. Yaseen (7.26%), Melstacorp Ltd., (6.43%) and Seafeld International Ltd. (5.77%).

The Board of Directors of DFCC Bank comprises C.R. Jansz (Chairman), Gomin K. Dayasiri, H.M.N.S. Gunawardana, P.M.B. Fernando, T. Dharmarajah, S.R. Thambiayah, Krishantha P. Cooray and Ananda W. Athukorala. The GM/CEO and Ex-officio Director is Arjun Fernando.