Capital Reach Leasing - a steady growth
Capital Reach Leasing PLC (CRL) has achieved a steady growth in the
financial year 2008/09. The gross income has grown by 50 percent to
reach Rs. 309 mn. from Rs. 206 mn a year ago.
Mayura Fernando |
The Company continued to operate in the SME sector with most of the
lending being carried out through their branch network. The lending
portfolio grew by 16 percent year on year in a year where the industry
volumes were flat.
CRL PLC maintained the quality of their portfolio in a difficult
year. The year-end Non performing portfolio of less than 3 percent has
been creditable compared to the industry average. Capital Reach Leasing
a Registered Finance Company under the supervision of Central Bank
shifted their sources of funding significantly towards Public Deposits.
The Deposit base grew by 79 percent during the last financial year
making it the main source of funding of the lending portfolio. The
public deposits raised by CRL are entirely used in lending and not used
for financing investments or trading activities.
The Chairman of the Company Mayura Fernando said, "A regular cash
flow generated by the good quality lending portfolio has kept us out of
any liquidity problems and enabled the company to service the depositors
very efficiently". Despite the current confidence crisis in the industry
Capital Reach Leasing was able to achieve a net growth of the deposit
base throughout the last year and the growth continues up to date.
The company obtained a listing on the CSE in January this year. The
IPO through an offer for sale was oversubscribed on the third day.
Capital Reach Leasing plans to make use of this listing of equity in the
future to raise listed debt securities from the market. |