Bartleet Finance eyes Rs. 5 b fixed deposits

Anjana SAMARASINGHE

Bartleet Finance Ltd is targeting Rs 500 million in profits and Rs 5 billion in fixed deposits within next three years.

Speaking to ‘Daily News Business’ Managing Director, Bartleet Finance, Susantha Fernando said that the company has currently achieved Rs 2.5 billion in fixed deposits and Rs 100 million in profits.

“We are confident in achieving Rs 500 million in profits and Rs 5 billion in fixed deposits within three years.

Bartleet Finance is already maintaining 22 per cent growth rate and expects to achieve a 30 per cent annual growth. We have set these targets focusing on current economic conditions,” he said.

Airing his views on the local financial sector Fernando said the ever-increasing interest rate has a negative impact on the industry. “However we are optimistic that interest rates will go down in near future,” he said.

In the leasing sector main revenue comes from the commercial vehicle segment. The Company also maintains two per cent of Non Performing Loans (NPL) and is planning to implement new automated system to improve their collection process and reduce their NPL rate further,” Fernando said.

Bartleet Finance has six branches and five service centers in the country. “We expect to implement this system by the end of this month. This will enable us to link all our collection officers with the head office and direct them to the right place for collection. We hope that the new system will enhance our collection process,” he said.

“Central Bank has permitted us to set up 12 branches. We have invested Rs 350 million for our Kaluthara branch and we believe that this branch will help us to cater to a larger customer base,” he said.

Assistant General Manager, Fixed Deposits of Bartleet Finance, Sanjeewa Seneviratne said the Government is loosing a large amount of revenue in terms of tax through the mushroom finance companies that are not registered under the Central Bank.

“However the Central Bank conducts awareness programmes to educate public on these finance companies. There should be mechanism to absorb these finance companies to the system or proper actions should be taken to stop them,” he said.

“There is a huge demand for fixed deposits mainly due to its high returns. Investing on stock market and lands does not give constant returns. Stock market is highly sensitive while economic conditions in country impact the land prices,” he said.

Seneviratne also said many customers switch from banks to finance companies for their fixed deposits. “After introducing independent rating system for the finance companies register under the Central Bank we see many customers move to finance companies for their fixed deposits,” he said.