Multi Finance shares get listed today

The Multi Finance Company Limited (MFCL) obtained approval for listing of 17,976,325 ordinary voting shares on the Diri Savi Board of the Colombo Stock Exchange (CSE) and the shares gets listed today (May 30).

Managers to the Introduction are Capital Alliance Limited. MFCL is registered as a Finance Company with the Monetary Board of the Central Bank of Sri Lanka under the Finance Companies Act No.78 of 1988.

Headquartered in Kandy, MFCL now has branch offices in Colombo, Gampaha, Kurunegala & Matara. It has Central Bank approval for disbursing funds for leasing, hire purchase, pawn broking and mortgage and other loans, and for accepting savings & fixed deposits from the public.

Founded 37 years ago as a family-owned business, MFCL provided financing for consumer durables. In February 2008, it became a part of the Entrust Group, which also includes Entrust Securities – a Central Bank appointed Primary Dealer in Government Securities. Entrust Securities helped MFCL in its statutory investments in Government Securities, and in the proactive identification of interest rate trends. As at 31 March 2011, Entrust Limited owned 15,516,772 shares of MFCL amounting to 86.32% of its share capital.

After Entrust Limited took over control in 2008, MFCL’s performance improved significantly despite the lack of confidence in Registered Finance Companies shown by depositors at the time, which resulted in significant outflows of funds from the industry during 2009. As Group Executive Director and CEO, A. H. M. Riyaz, explained, “Our total asset and lending asset portfolios showed impressive growths from 2008 to 2009, despite widespread financial turmoil and heightened credit and liquidity risks. Our board of Directors and senior management team used their unrivalled expertise to mitigate the heightened risks to which all financial institutions were exposed. Our track record proves we can grow even under hostile market conditions.”

The strategic focus of MFCL is building relationships proactively with clients by providing financial services customized to their changing needs. As the Chairman of MFCL, Dr. Asoka N. Jinadasa, explained, “What makes us different from all other financial service providers is our focus on delivering a tailor-made, innovative service to individuals and enterprises. We are small enough to make all our clients feel they are our only client. We have only 5 offices with less than 50 staff. They have the ability to build long-term financial relationships proactively with our clients, which go far beyond conventionally reactive customer service. The latest online IT system we are currently installing will boost our client service to unprecedented heights.”

While obtaining unsurpassed interest income for depositors, MFCL offers a wide range of financing options to its clients for their personal needs, vehicles and equipment, business & industrial development, liquidity management, real estate and housing. MFCL is implementing a robust disaster recovery system to safeguard the integrity and security of client information during emergency situations that may arise.

To reduce overall credit risk, MFCL diversifies its loan portfolio by granting loans to businesses in many different industries and to borrowers in many different locations. To manage liquidity and ensure solvency even under adverse conditions, MFCL maintains an optimum balance between liquid assets and liabilities, based on historical experience and industry benchmarks.

The Finance Director of MFCL, Lakmali Wickremasooriya, outlined some key strategies of MFCL: “We maintain a very safe ratio between our assets and our liabilities, and a Non Performing Loan (NPL) ratio of less than 2%. We are ready to withstand unforeseen shocks that may arise from simmering turmoil in the global economy and international financial markets.

source - www.dailymirror.lk