Lanka Orix Leasing Company PLC (LOLC) registered Rs 7,023 million as profit after tax during the last financial year. During the year under review, the company’s loan portfolio grew by Rs 4.2 billion to Rs 8.2 billion. LOMC disbursed Rs 7.6 billion as advances during the year, which was an increase of 100% over the previous year.
In total, accommodation were provided for 39,635 borrowers during the year. By March 2011, the Company had provided microcredit to 53,998 active borrowers with its borrower base increasing by 100% over the previous year. Of the active borrower base 27,345 were males and 26,653 were females.
During the year under review, credit facilities in the form of loans, hire purchase and finance leases amounting to Rs 39.8 billion was disbursed through the Group’s financial services companies operating within the SME sector which is a 120% increase the disbursement when compared with the previous year.
Of the credit disbursements made, 75% have been to the SME sector with approximately 80% coming from semi-urban/rural areas. Trading, agriculture and services sectors accounted for more than 50% of the disbursements.
The reduction of import duties and tariffs was a boon to the registered and unregistered vehicle market, which is a key component of the Group’s business activities.
During the year in review, LOFC and CLC extended the Group outreach through expansion of branch network, enhancement of broker channels, introduced new account management techniques and forged new business partnerships.
In the year ahead the company is planning to achieve strong credit growth while maintaining the current superior portfolio quality with low non-performing loans.
Joint promotions with suppliers, regional promotions to market development-finance products, product bundling strategies, special promotional offers and developing and strengthening business introducer schemes are some of the initiatives that are expected to support the planned credit growth.
source - www.dailynews.lk
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