Loan portfolio grows to Rs 8.2 b:
LOLC PAT up
Lanka Orix Leasing Company PLC (LOLC) registered Rs 7,023 million as
profit after tax during the last financial year. During the year under
review, the company’s loan portfolio grew by Rs 4.2 billion to Rs 8.2
billion. LOMC disbursed Rs 7.6 billion as advances during the year,
which was an increase of 100% over the previous year.
In total, accommodation were provided for 39,635 borrowers during the
year. By March 2011, the Company had provided microcredit to 53,998
active borrowers with its borrower base increasing by 100% over the
previous year. Of the active borrower base 27,345 were males and 26,653
were females.
During the year under review, credit facilities in the form of loans,
hire purchase and finance leases amounting to Rs 39.8 billion was
disbursed through the Group’s financial services companies operating
within the SME sector which is a 120% increase the disbursement when
compared with the previous year.
Of the credit disbursements made, 75% have been to the SME sector
with approximately 80% coming from semi-urban/rural areas. Trading,
agriculture and services sectors accounted for more than 50% of the
disbursements.
The reduction of import duties and tariffs was a boon to the
registered and unregistered vehicle market, which is a key component of
the Group’s business activities.
During the year in review, LOFC and CLC extended the Group outreach
through expansion of branch network, enhancement of broker channels,
introduced new account management techniques and forged new business
partnerships.
In the year ahead the company is planning to achieve strong credit
growth while maintaining the current superior portfolio quality with low
non-performing loans.
Joint promotions with suppliers, regional promotions to market
development-finance products, product bundling strategies, special
promotional offers and developing and strengthening business introducer
schemes are some of the initiatives that are expected to support the
planned credit growth. |