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| Lankaputhra Development Bank Loan Portfolio Rises To Rs. 2,400 |
22 October 2008 |
The Lankaputhra Development Bank, a creation of the “Mahinda
Chintanaya” was established with a view to strengthen the small
and medium scale entrepreneurs to provide financial assistance
to nurture their entrepreneurship. It is with this concept in mind
that His Excellency the President Mahinda Rajapakse
inaugurated the Bank on 24th February 2006.
The emphasis during the year 2007 was to identify small and
medium scale projects which would enhance the economic
development in the provinces thus increasing job opportunities,
creating economic activities and social development in sectors
such as agriculture, fisheries, mining, production, construction,
services etc. LDB’s CEO Mrs Siromi Wickramasinghe said “with
this vision in focus our aim is to join hands with our team and
take the bank forward in order that we may contribute in a
significant way to overcome disparities in income distribution and
alleviate poverty in our country”.
Lankaputhra Development Bank in it’s first full year of operations
has achieved considerable progress in it’s given task. The loan
portfolio in the year 2007 increased to Rs. 1,665.5 million
compared to Rs. 427.8 million during it’s first year of operations,
commencing in the latter half of 2006.
In 1st quarter of 2008, it has increased to Rs. 2,400 million.
The sectoral distribution of advances shows a significant increase
in agricultural and fisheries sectors at Rs. 400.5 million, which is
24% of the total advances compared with only 10% in the
previous year. The manufacturing sector too has recorded an
increase of Rs. 722.6 million or 57% of the total portfolio.
Agricultural, fisheries and the industrial sectors has accounted for
over 80% of the total advances given. This sectoral distribution
gives an indication of the potential that is awaiting to be
harnessed in these areas.
During the year the Bank has made a profit of Rs. 58Mn. of which
taxation expenditure is Rs. 35Mn., leaving a net profit of Rs. 23
Mn. for the year 2007. In first quarter of year 2008 Rs. 76 million
was recorded as net profit before tax. In an effort to widen the
coverage of the Bank’s presence at the grass root level,
branches at Hambantota, Polonnaruwa and an extension office at
Kegalle commenced operations during the year under review.
Mrs. Wickramasinghe said, “it is proposed a few more branches
will be established in 2008 to further widen the reach of the Bank
to needed areas ’.
The LDB being a state-owned institution funding is provided
through budgetary resources. In this respect an important |
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