Commercial Credit to list on CSE in June

In keeping with a Central Bank directive, Commercial Credit Limited is planning to list on the Colombo Stock Exchange in June and is poised to expand and enhance its presence in the country, the finance company said in a statement. "A change of management in October 2009 infused Commercial Credit with new leadership, strength and vision, fuelled by a desire to propel the company towards the highest echelons of the industry through a pioneering corporate culture. Moving towards a liberated corporate mindset, powered by a dedicated and empowered workforce striving to reach new levels of performance and service, Commercial Credit is proving the merit of this strategy through a rapidly multiplying customer base.

Commercial Credit’s Chief Executive Roshan Egodage said that company will at all times aspire to not only reach but exceed the standards set by the Central Bank. "We greatly admire the leadership role played by the Central Bank and will aspire towards their endorsement in any and all ventures we undertake."

The Interest Income and Interest Expenditure Gap – the core income of a finance company, grew a staggering 700% from Rs. 10 million to Rs. 70 million per month from 2009 to 2010, while the Cost to Income Ratio fell from 85% to 45%, well below the industry average of 83%. Meanwhile monthly collections recorded a 500% increase from Rs. 60 million in 2009 to 300 million at the end of 2010, while the Gross NPL ratio fell from 12% to 2%. The focal point of interest, the company’s profit margins saw an exponential growth. From a loss making year in 2009, Commercial Credit is set to deliver a predicted minimum profit of a staggering Rs. 400 million at the end of the current financial year, an unprecedented growth not achieved by any finance company.

Operating an asset base of Rs. 1.5 billion at the time of takeover, the company’s current asset base stands at Rs. 4.4 billion, and Mr. Egodage is confident this figure will reach Rs. 6 billion by the end of the financial year in March 2011, officially propelling the company into the ranks of the largest finance companies in the country.

The driving force behind the company’s astronomical success to date is the company’s dedicated workforce, drawn from the cream of the industry’s talent pool. "I consider myself fortunate to have such a dynamic team driving this company’s growth. While boasting one of the most talented and energetic teams in corporate Sri Lanka, Commercial Credit’s culture of liberalisation and employee empowerment enable the team to deliver beyond expectations in terms of performance. Many of the company’s current employees joined Commercial Credit when it was a virtual unknown. Their loyalty and commitment to the company has been a pivotal factor in its growth; hence ensuring employee satisfaction and their development remain one of our highest priorities", said Egodage.

Commercial Credit’s stellar performance over the previous year is an indication of the company’s strength and potential and growing customer confidence, which, according to Egodage will be further realized when it lists on the Colombo Stock Exchange in June 2011, propelling the company to even greater heights. A new branch was declared open in Ratnapura by the Chief Guest H.M. Ekanayake, Additional Director of the Central Bank of Sri Lanka, who commended Commercial Credit for its remarkable performance, with the Company being tipped to hit the Rs 5 billion mark in its asset base, thus bringing it into the category of Sri Lanka’s Large Finance companies. "The fact that Commercial Credit has recorded a remarkably low NPL of 2% is a laudable achievement and we look forward to the Company taking its place as a stable leader in the Country’s finance sector".

source - www.island.lk