Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Pradeshiya SanvardhanaBankDevelopment of the ruraleconomy is a key objective ofthe government’s economicpolicy framework. In this regard,having recognized the need toimprove accessibility of ruralcommunities to financing sources,the Bank was established in May2010 with the amalgamation ofWayamba Development Bank,Ruhuna Development Bank,Kanduarata Development Bank, UvaDevelopment Bank, SabaragamuwaDevelopment Bank and RajarataDevelopment Bank. PradeshiyaSanvardhana Bank’s total assetsaccount for only 1 percent of thatof the banking industry and 6.4percent of the total assets of theLSB’s in Sri Lanka.The total assets of the bank atthe end of the year 2010 were Rs.46,610 million, recording an increaseof 19.4 percent over the previousyear. The majority of the assetsof Pradeshiya Sanvardhana Bankconstituted of loans and advances(79.6 percent) and investmentsin government securities (14.3percent).Although the bank’s loan bookindicated a growth of 32.2 percentin 2010 against the 6.9 percentgrowth recorded in the previousyear, it is necessary to assess therole played by the bank with itsobjectives of incorporation.Table 4.11 > Key Performance Indicators of Lankaputhra Development Bank2005 2006 2007 2008 2009 2010*Number of Branches3 5 4 7 7Number of Employees 62 114 166 165 162Assets (Rs. Mn.) 2,132 4,175 6,568 6,855 6,628Deposits (Rs. Mn.) 259 1,994 133 281 295Corporate & Retail Lending (Rs. Bn.)Profit Before Tax (Rs. Mn.)Was not inoperation427521,656582,4302272,3022501,986152Profit After Tax (Rs. Mn.) 23 23 76 83 50Capital Adequacy Ratio-1 (%) 229 62.8 91 71.9 81.8Capital Adequacy Ratio-11 (%) 229 63.1 91.5 72.2 82.1Non Performing Loans (Rs.Mn) - 85 618 1,579 1,587Non Performing Loan Ratio (%) - 5 19.2 55.9 66.4Rating - - - A ASource: Lankaputhra Development Bank*Unaudited213