Annual Report 2008 - Ministry of Finance and Planning

3. Performance of Public Enterprises
153
Loans and Advances Portfolio of RDBs
The net loans and advances of RDBs amounting to Rs.
26,315 million by the end of 2008 indicating an increase of
10.7 percent over last year. Although net loans and advances
of RDBs have increased over last few years, the growth
momentum has been gradually moderated.
Pawning advances to total loan portfolio of RDBs has
increased from 29.6 per cent in 2007 to 33.3 percent in 2008.
However, this ratio exceeded 50 per cent in SDB and 40 per
cent in RaDB in 2008.
A significant portion of RDB’s loans has been channeled to
housing loans (27 percent) while a 20.5 per cent has been
granted for agriculture related activities. RDBs’ exposure
to agriculture sector has increased in 2008 in comparison
to 2007. Small industries sector has received only 12.% in
2008.
Table 3.12
Performance of RDBs
2006 2007 2008
Number of Branches 209 211 215
Number of Employees 1,908 1,986 1,934
Assets (Rs. bn) 26.1 31.0 34.4
Deposits (Rs. bn) 18.7 21.9 25.9
Corporate & Retail Lending
(Rs. bn) 19.3 23.0 26.3
Profit before Tax (Rs. mn) 633 814 1,037
Profit After Tax (Rs,mn) 299 416 424
Capital Adequacy Ratio (1) 9.0-14.4 8.2-15.1 8.4 -
15.0
Capital Adequacy Ratio (11) 11.4 - 9.8 - 8.9 -
18.1 15.7 15.8
Non Performing Loans (Rs.mn) 1,161 1,252 1214
Non Performing Loan Ratio 5.6 5.3 4.5
Source: Bank’s Annual Accounts
Non Performing Loans and Advances of RDBs
The improvement in assets quality of RDBs has contributed
towards the reduction of non-performing ratio in many
RDBs. The non-performing advances declined from Rs. 1,252
million in 2007 to Rs. 1214 million in 2008 indicating a 3.0
percent decline. However, gross loans and advances have
increased from Rs. 23,767 million in 2007 to Rs. 27,156 million
in 2008 recording an increase of 14.2 percent. Accordingly,
Gross Non-performing Loan Ratio (NPL) has declined from
5.3 percent in 2007 to 4.5 percent in 2008 due to the increase
in total advances over the period.
Table 3.13
Purpose- wise Distribution of Loans and Advances by RDBs in 2008
RaDB RuDB WDB KDB UDB SDB Total
Rs. (%) Rs. (%) Rs. (%) Rs. (%) Rs. (%) Rs. (%) Rs. (%)
mn mn mn mn mn mn mn
Agriculture 1,326 50 1,292 23 1,293 18 218 6 718 29 626 11 5,473 21
Manufacture 130 5 618 12 1,374 20 84 3 367 15 626 11 3,199 12
Housing 418 16 1,336 24 2,851 40 184 5 736 30 1,528 29 7,053 26
Consumption 263 10 847 15 479 6 1,331 38 468 19 381 7 3,769 14
Services* 119 4 861 15 534 8 294 8 1 0 1,186 22 2,995, 11
Others 408 15 620 11 524 8 1,422 40 168 7 1,114 20 4,256 16
Total 2,664 100 5,574 100 7,055 100 3,533 100 2,458 100 5,461 100 26,745 100
Source:- Annual Accounts 2008
*including loans classified as Trade and Commerce SDB
Ministry of Finance and Planning Sri Lanka
Annual Report 2008