Annual Report 2008 - Ministry of Finance and Planning

3. Performance of Public Enterprises
152
units. During the year 2008, the bank has extended housing
loans to public servants amounting to Rs. 1,075 million. The
deposit base increased marginally by 17 million in 2008
and reported at 4,976 million. The bank incurred a loss of
Rs. 79 million before the provision for taxation in 2008 due
to reduction in net interest income and high level of nonperforming
advances. The bank’s non-performing loans
ratio as at end 2008 stood at 20.7 per cent, which is much
higher than the industry average.
Table 3.11
Performance of HDFC Bank
2006 2007 2008
Number of Branches 20 21 21
Number of Employees 285 286 289
Assets (Rs. bn) 10.7 13.4 14.1
Deposits (Rs. bn) 2.5 4.9 4.9
Corporate & Retail Lending (Rs. bn) 10.1 11.9 11.9
Profit before Tax (Rs. mn) 239 47 (79)
Profit After Tax (Rs,mn) 172 21 (77)
Capital Adequacy Ratio (1) 37.6 31.0 25.4
Capital Adequacy Ratio (11) 37.8 31.8 26.5
Non Performing Loans (Rs.mn) 1,892 2,099 2,500
Non Performing Loan Ratio (Rs.mn) 18.6 17.6 20.7
Rating A A BBB+
Source: Bank’s Annual Accounts
Lankaputhra Development Bank (LDB)
The LDB, which started its operations in February 2006,
indicated a growth in its operations during the short time
span that passed. While focusing on development oriented
lending, the bank has adopted a selective approach in
expanding its loan portfolio The bank recorded a significant
profit of Rs. 97 million in 2008 in comparison to the profit of
Rs. 23 million in 2007.
With a view to making LDB a premier development bank the
government towards the end of 2007 took steps to merge
the SME Bank with the LDB and also transferred the assets
and liabilities of Private Sector Infrastructure Development
Company to the LDB.
The bank’s asset base amounted to Rs. 6.9 billion in 2008.
Total advances portfolio amounted to Rs. 2.4 billion while
mobilizing a deposits amounting to Rs.133 million in 2008.
Converting the deposits held with SME Bank and PSIDC
as assets of LDB is the main reason for the decline in the
deposit base of the bank. Amidst this impressive growth
figures, bank’s non-performing loans ratio has increased
from 5.3 in 2007 to 23.7 in 2008 due to the amalgamation of
non-performing loans of SME bank.
Regional Development Banks (RDBs)
Six Regional Development Banks (RDBs) viz. Wayamba
(WDB), Ruhuna (RuDB), Kanduarata (KDB), Uva (UDB),
Sabaragamuwa (SDB) and Rajarata (RaDB), which were
established with a view to develop the rural economy are
operating with a network of 215 branches in provinces.
Total assets of all RDBs amounted to Rs. 34,425 million at
the end of the year 2008, indicating an increase of 12.25
percent over the previous year. The majority of RDB’s assets
constitutes with loans and advances (76.4 percent) and
investments in government securities (15.7 percent). The
RDB recorded the highest growth of assets by 29.06 percent
in 2008 due to the increase in loans and advances (30.27
percent) while UDB recorded the lowest in asset growth 9%
in 2008.
Chart 3.10
Being a start up bank the LDB’s presence is still limited to
a few districts. While having its head office in Colombo, the
bank has one branch in each district at Hambantota and
Polonnaruwa and Kandy and extension offices in Kegalle
and Wennappuwa.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008