Tuesday, July 5, 2011

Softlogic Finance surpasses Rs. 5 billion in assets

Softlogic Finance is continuing to forge ahead with its aggressive expansion strategy, recording its total assets at Rs. 5.4 billion as at 31st May 2011. With its asset base rising by over 185% from the Rs. 2.9Bn that was recorded in September 2010, the company now categorized as a “Large Financial Company” by the Central Bank, also reported 100% growth in its public deposit base during the period September 2010 to May 2011.

“Our intention is to expand Softlogic Finance to a prominent position, that would stand amongst the top 5 companies in the financial services sector within the next 3 years,” said Ashok Pathirage, Chairman of Softlogic Finance. “We are planning to boost our current product portfolio with several new products built around the concept of convenient solutions, as well as to extend our branch network to several more locations around the island over the next year.”

Backed by the undisputable strength of the Softlogic Group, Softlogic Finance is planning further support its expansion plans with a rights issue to raise LKR 535Mn. “We are aiming to increase our stated capital for the year from the current LKR 468Mn to above LKR 1Bn, which will not only increase the company’s equity base but also fuel our growth strategies,” affirmed Pathirage. He elaborated that the rights issue will offer existing shareholders the privilege to buy 2 additional shares for every 5 ordinary shares they own, at LKR 50 per share.

Softlogic Finance’s total deposit portfolio nearly doubled compared with September 2010, passing the landmark of LKR 2 billion deposit liabilities, in May 2011. The company also recorded a threefold increase in its other borrowings mainly from the banking sector and through securitization of its Leasing and Higher Purchase receivables for the same period.

With their main lending activities of Leasing, Hire Purchase and Term Loans thriving under the wing of the Group, Softlogic Finance also added several new services to its portfolio during the last operating year including Business Loans, Group Personal Loans and Gold loans.

A foothold in the financial industry adds a new facet to the group’s portfolio and the entry of the group into the financial services sector is the ideal strategic fit in offering the retail and SME customer both personal and business financial solutions through the Softlogic Finance branch network of 11 branches spanning around the country, as well as the Softlogic stores that will soon expand island-wide.

source - www.dailymirror.lk

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