Deposits grow 17 percent, Advances 9 percent and profitability 17 percent in 1H, 2009:

SANASA Development Bank maintains growth momentum

SANASA Development Bank Ltd (SDBL) has recorded yet another impressive performance during the first six month ending June 30, 2009. The bank recorded a pre tax profit of Rs. 170.7 million as against Rs. 100 million for the corresponding period in year 2008, is an increase of 71 percent. Despite the economic slow down and unhealthy business environment, the Bank performed exceptionally well during the first six months of the year,” said General Manager / CEO, Nimal Mamaduwa, in a media release.

SDBL has been successful in maintaining high deposit growth aided by its expanding branch network and affiliation to SANASA Movement. Deposits grew by 17 percent during the first six months from Rs. 8.2 billion to 9.6 billion. Loan growth has historically been high although it slow down to 9 percent during the first half year due to the slow down in the economy.

The loan book balance increased to Rs. 9.2 billion from Rs. 8.4 billion. The Bank has maintained its NPL Ratio at 7.9 percent with effective post credit monitoring systems in place which is still marginally better than the Banking sector. SDBL intends to substantially increase disbursements in the second half of 2009 with expansion of its branch network in the North Central and Northern Provinces.

SDBL’s statutory liquidity ratio has been maintained at 22.5 percent which is above the regulatory requirement of 20 percent. The CBSL imposed a minimum capital requirement of Rs. 1.5 billion for licensed specialized Banks with full compliance by December 2009.

The Bank is on track to meet the minimum capital requirement with a capital base of Rs. 1.3 billion as at end of June 2009. SDBL’s tier 1 and tier 2 capital adequacy ratios are above the regulatory requirements.

The Bank opened two branches in Medawa-chchiya and Muttur during the first half year and two more branches will be opened in Aralaganwila and Galenbidunuwewa in August bringing the branch network to 49.