Sanasa Development Bank performs well in third quarter

Sanasa Development Bank Ltd (SDBL) has performed well in the third quarter ending September 30, 2010, recording a pre-tax profit of Rs 457 million compared to Rs 281 million for the corresponding period in 2009.

This is a growth of 63 percent.

Post-tax profit for the third quarter had been Rs 205 million as against Rs 136 million in 2009, a growth of 63 percent.

Meanwhile, Fitch Ratings Lanka had upgraded SDBL's National Long-term rating to "BB+ (lka)" from "BB (lka)", the Outlook is stable, the bank said.

SDBL General Manager and CEO Nimal Mamaduwa said the net income has shown a growth of 59 percent, to Rs 1.265 billion from Rs 794 million as at September 30, 2010. The deposit base has recorded a growth of 15 percent from Rs 10.8 billion to Rs 12.5 billion, driven by the expansion of bank's network having 69 customer service centres as at September 30, 2010.

The loan portfolio of the bank has shown an increase of 19 percent, from Rs 10.8 billion to Rs 12.8 billion.

The bank's gross NPL ratio has consistently been better than industry average, although the SDBL's target market consist of low income, high-risk segment of the economy, it has been able to mitigate defaults through effective risk management procedures. SDBL's gross NPL ratio stands at 6.24 percent as against 6.63 percent as at December 31, 2009, whilst the net NPL ratio stands at 3.39 percent as against 4.77 percent in December 2009.