SDBL maintains growth momentum in 2011
SANASA Development Bank Ltd (SDBL) has registered a impressive
performance during 2011 by making a growth of 21% in deposits reaching
Rs.15.2 billion from Rs.12.6 billion recorded during 2010. The advances
portfolio indicated a growth of 33% from Rs.12.4 billion to Rs.16.5
billion. The focus was, as before, on the rural and SME sectors with a
greater emphasis on the group loan system, which has shown remarkable
success. Due to stringent controls, risk-management systems and
collection mechanisms, the bank's NPL portfolio ended on a strong note
of just 4.5%, which puts it on par with the industry average and shows a
declining trend (5.84% in the previous year and 6.62% in 2009).
Profit before tax declined, from Rs.646 million in the previous year
to Rs.537 million. This is attributed to overall staff salary revision
and the commencement of depreciation for the new core-banking system,
both of which are considered necessary investments which are expected to
translate into greater degrees of efficiency resulting in a greater
volume of returns over time.
However, the profit after tax increased from Rs.323 million in 2010
to Rs.345 million, an increase of 6.76%. “The net interest income rose
from Rs.1.717 billion in the previous year to Rs.1.740 billion in the
year under review, a marginal increase due to interest rate
fluctuations,” said Nimal Mamaduwa, General Manager/CEO of SDBL in a
During the year under review the bank made only modest inroads in
terms of expanding the branch network, concentrating instead on
strengthening the existing units.
New Customer Centres were established in Buttala, Hatharaliyadda,
Hingurana, Narammala, Kaduwela and Aluthgama during the year under
In 2011 the bank concentrated on provincial expansion and will
continue to focus on this area in view of the fact of the development
activities taking place in the provinces. As a result the bank further
strengthened the regional management system by giving more authority to
regional managers, because this role will be different and more
challenging in time to come.
In particular it is envisaged that regional managers will work
closely and cohesively with regional officials, such as, Provincial
Councils, Government Agents, AGAs and GNs to strengthen public-private
Capital base: steady improvement
The total capital base of the Bank, which stood at Rs.2,180 million
at the end of 2010, improved to Rs.3,055 million at year end. Tier I
Capital continues to increase and the bank continues to improve on this
in view of anticipated listing in the CSE.
Tier I and Tier II capital stood at 14.48% and 14.91% as against 10%
and 5% of regulatory requirement respectively. In view of the Central
Bank directive for all banks to be listed in the Colombo Stock Exchange,
the bank focused a considerable degree of energy to streamline
operations to meet this eventuality, again with the primary intention of
retaining controlling power among its current stakeholders, key among
who are the varied and extensive members of the larger SANASA Movement.
Corporate Social Responsibility (CSR)
As a development bank and one that is inspired by a century long
engagement in empowering the disempowered and in mainstreaming and
uplifting the neglected, social responsibility is both a core value of
the bank as well as a necessity given that the vast majority of the
bank’s shareholders in fact happen to belong to the social group that is
typically targeted to enhance CSR portfolios.
In line with the sustainability, a prerogative inherent to it’s
thinking, the bank supported many initiatives targeting youth during the
year under review.
The programme to improve financial literacy launched in the previous
year in Sabaragamuwa Province with the support of the City Group was
expanded to Uva Province (with GTZ funding) and Central Province (City
Around 700 young people are set to benefit from this important
endeavour to confer skills necessary for young people to meaningfully
benefit from microfinance programmes.
Technology for optimizing efficiencies
The bank scored yet another first in being the first financial
institution based on and promoting cooperative principles in Sri Lanka
to work towards offering ATM and debit card facilities to its customers.
All necessary infrastructure to this end and as well as all required
documentation are in place and this has become a reality in April 2012.
With this implementation, the bank will open doors to many modern
facilities such as Mobile Banking, SMS Banking, Phone Banking, Internet
Banking, online purchasing etc.
The bank has already installed its’ own ATMs in 10 branches, and is
sharing the ATM services with the Commercial Bank. As such, the bank’s
clients will not only be able to access the bank’s own machines in ten
branches, namely, Head Office at Kirulapone, First Colombo City, Jaffna,
Karapitiya, Ambalangoda, Matale, Kurunegala, Kegalle, Anuradhapura and
Polonnaruwa but will be able to withdraw from 500 machines operated by
The bank won the Bronze for its Annual Report 2010 in the ‘Financial
Sector’ category at the Annual Report award competition organized by The
Institute of Chartered Accountants of Sri Lanka.