Annual Report 2008 - Ministry of Finance and Planning

3. Performance of Public Enterprises
146
Finance Sector
Overview
The banking sector has made a significant contribution to
the overall economic development of the country in 2008
providing banking services to a broader geographical
clientele through a network of 1,325 main branches and a
workforce of 21,777 employees. Total assets held with State
Owned Banks amounted to Rs. 1,239 billion at the end of
2008 indicating an increase of 7.83 percent over the previous
year. The assets base of state sector banks mainly consisted
of loans and advances (49.4 percent) and investments (36.4
percent).
Cart 3.5
The loans and advances of State Owned Banks amounted
to Rs. 616 billion by the end of 2008 indicating a slight
decline by one per cent over the year 2007. Two Licensed
Commercial Banks i.e Bank of Ceylon (BOC) and People’s
Bank (PB) contributed 82.5 percent of total loans and
advances disbursed by state owned banks.
Chart 3.4
Total capital funds deployed by the sector have amounted
to Rs. 65.8 billion by the end of 2008. The profitability of the
State Owned Banks continued to grow in 2008. The State
Banks have made a profit before tax of Rs. 15.2 billion in
2008 registering a growth of 9.1 percent over 2007. Net
Interest Income of the sector as a percentage of average
assets accounted to 3.9 percent.
Chart 3.6
The total NPLs have recorded at Rs. 41.8 billion in 2008,
which indicate a 23.5 percent increase over the previous
year. The Gross Non Performing Advances (GNPA) Ratio
has also increased from 5.3 percent in 2007 to 6.4 percent
by the end of 2008. Total deposits mobilized by the sector
amounted to Rs. 938.7 billion in 2008 registering a growth of
6.1 percent over the previous year.
The Return on Assets (ROA) and Return on Equity (ROE)
ratios of state banks reported as 1.3 per cent and 12.9
percent respectively in 2008
.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008