NE bank branches disburse Rs 656 m in loans

CB praises high level of recovery:

Ramani Kangaraarachchi

Twelve bank branches mainly in the North and East have provided 11,360 loans under four categories amounting to Rs 656 million with a high level of recovery during last year. Bank of Ceylon Achchuveli, People’s Bank Welikanda and Rajarata Development Bank were commended for the excellent service of the bank officers in the field for delivery of development credit during 2009 under the New Comprehensive Rural Credit Scheme (NCRCS) held at the Central Bank Training Institute in Rajagiriya yesterday.

Central Bank Assistant Governor W.M Karunaratne said although bankers do not take much risk in granting development oriented loans due to reasons such as creditworthiness of the borrowers, viability of the sub project, collateral, large number of borrowers, small scale loans and the field work involved, these officers were keen to perform this service very efficiently and effectively.

He said that the three banks have provided 5,414 loans to the value of Rs 281 million during the year.

The performance of Participating Financial Institutes (PFIs) and their branches were evaluated under six major development credit lines implemented by the CBSL during 2009 namely New Comprehensive Rural Credit Scheme (NCRCS), Agro Livestock Development Loan Scheme (ALDL) Krushi Navodaya, Poverty Alleviation Microfinance Project (PAMP), Special credit line for Eastern Development and Awakening North.

Meanwhile Chavakachcheri Bank of Ceylon, Kalmunai People’s Bank and Dummalasuriya Wayamba Development Banks were also commended for the performances under Agriculture Livestock Development Loan (ALDL) Those three branches have provided 516 loans amounting to Rs 47 million.

Under the Krushi Navodaya, Nelliadi and Ampara branches of Bank of Ceylon and Hambantota Lanka Puthra Branch who have provided 2,582 loans to the value of Rs 213 were also commended.

Trincomalee, Batticaloa and Kaluwanchikudi branches of Bank of Ceylon were commended under the Poverty Alleviation Micro Finance Project (PAMP) for providing 2,848 loans amounting to Rs 115 million. Karunaratne said that the recovery percentage of all these loans were very satisfactory.

The performance of branches were evaluated under three criteria of loans granted under each project, amount granted (value).