NSB contributes to credit growth in 2010

The National Savings Bank (NSB) housing loans disbursement for 2010 was Rs 8,000 million as against Rs 3,500 million in 2009 recording a growth of Rs 4,500 million.

The number of housing loans disbursed in 2010 was recorded as 8,003 as against 3,615 in 2009, the bank said yesterday.

NSB head office

In order to empower the rural economy, the Bank has disbursed a significant amount of loans to rural areas too. The Bank also disburses loans under pawning for purposes such as housing, agriculture and self-employment and in 2010 alone the Bank recorded a net increase of Rs 6000 million in pawning advances.

It shall also be noted that 50 percent of personal loans and 27 percent of pawning advances that have been granted in 2010 have been for housing purposes, a fact which further hails the Bank as the nation’s housing bank.

“Our objective is to mobilize people’s deposits and give back to them in the form of credit so that their money is invested in their own soil,” NSB GM and CEO Hennayake Bandara said.

“Even in 2009, when the industry growth was negative 3.2 percent, the Bank recorded a positive credit growth of 13 percent and this year’s credit growth of more than 22 percent is on a par with the industry average growth” the CEO said.

During the second half of 2010, the Bank improved its accessibility by opening 29 branches, most of them in rural areas and customers can now obtain credit facilities at any of their 186 branches.

The Bank also re-entered the postal sector with much vigour and ambition by investing heavily in upgrading of the infrastructure of post and sub post offices.

“The Bank’s continued efforts on improving credit, high focus on granting housing loans and aggressive expansion of our branch network have contributed in achieving these commendable targets and we expect to continue this growth momentum in year 2011 too,” Bandara said.

The new direction of the Government has opened the path to achieve economic prosperity.

Low interest regime is one of the main requirements to boost economic activities at various levels.

By bringing down interest rates to one digit level, both the Central Bank and the Government expect a significant growth in credit to boost the economic activities throughout the country.

NSB with its limited mandate has contributed significantly to this objective by recording a commendable growth in the Bank’s loan portfolio in year 2010.