People’s leasing sees highest business volume
Achieves targets from April to November:
Harshini PERERA
The People’s Leasing Company Ltd., had the highest business volume of
Rs 1.7 billion at the end of December last year.
Starting from April 2009 it has achieved 100 percent of its targets
in November, last year. This trend will continue as the market becomes
healthier, People’s Leasing Company Ltd., Senior Manager, Compliance,
Risk Management and Control, Andy Ratnayake told Daily News Business.
He said the leasing industry has heavily felt by the tax implication
on brand new vehicles and second hand vehicles. Thus the demand for
brand new vehicles slowed down and registered vehicles in Sri Lanka had
a higher demand throughout the recession period.
The VAT involvement, therefore, cannot be taken to the leasing
industry but it had to depend on the higher purchases.
“People’s Insurance PLC is the newest company formed as the insurance
arm of People’s Bank with an initial capital of Rs 115 million.
The company has already captured the market in non-life. It is the
17th insurance company among the 18 registered companies,” he said.
People’s Leasing Company Ltd., will grant many financial benefits to
customers. Higher purchases, term loans and Islamic financial service
facilities are few among them. It provides term loans at a concessionary
interest rate.
People’s Bank has four fully owned subsidiaries, People’s Leasing
Company, People’s Property Development, People’s Leasing Fleet
Management and People’s Insurance.
The acquisition of 97 percent of share of Seylan Merchant Leasing PLC
that is renamed as People’s Leasing Finance is managed under the
People’s Bank which is the only subsidiary company that is listed in the
Colombo Stock Exchange.
People’s Leasing Finance was acquired by the People’s Bank on June 5,
2009 and received profits already from September.
At present it is in the process of accumulating previous loses. But
there has not been any laying off. It has 11 branches and 12 centers
scattered over the island.
He said that the People’s Leasing Company took precautionary measures
to avoid the effect of recession and it has been very successful.
Thus it could grant more facilities compared to those days. |
