Alliance Finance PAT up by 406%

Ramani KANGARAARACHCHI

The first Sri Lankan finance company to have ISO 9001; 2008, Alliance Finance has increased its profit after tax by 406 percent during the six months ended in September 2011 compared with September 2010.

Alliance Finance AGM Deposits Champa Nakandala said that the company has made a significant growth last year increasing the deposit base to Rs six billion which is a 24 percent growth compared to 8.7 percent growth in the previous year.

The client base has exceeded 10,000 increasing investment growth by 79 percent in the six months ended September 2011 compared with September 2010. As a result, the company was able to pay an attractive bonus to all employees.

She said that the company will further expand this year with more branches with the approval of the Central Bank to have more marketing activities. Accordingly all collection centres will be upgraded to branches.

As the Central Bank has decided to change interest limits, the company expects more deposits this year.

The continuous and prompt payment of due interest to deposit holders has built confidence of its clients and has brought the company forward over 55 years she said.

"Our first priority is the payment of interest and even the staff salary is paid after that according to our MD Kumar de Silva's guidelines," she said.

Asked how was it possible to sustain during the crisis period she said although the company was compelled to pay low interest rates to depositors during that period it maintained a 90 percent renewal ratio and there were no premature withdrawals.