Sanasa Development Bank Ltd. (SDBL) will debut today on the Main Board, enhancing the already well-represented banks, finance and insurance sector of the Colombo Stock Exchange.
SDBL will be the 34th Main Board listed firm in the sector and the 58th overall inclusive of Diri Savi Board firms within the financial services sector. In the broader market, SDBL will be the 281st listed company.
The listing of 25.17 million shares is following an introduction. The reference price of SDB share is Rs. 125.
Prior to the listing the World Bank’s private sector investment arm, International Finance Corporation (IFC) has acquired a 3.57% stake amounting to 900,000 shares for Rs. 99 million.
Analysts are of the view that IFC’s confidence in SDBL augurs well for the new entrant, apart from its own unique strengths.
Sanasa Insurance Company owns a 4.17% stake and People’s Leasing Company holds 3.97%.
Several regional Sanasa trust companies are among other major shareholders whilst there are 63,290 shareholders comprising of SANASA societies which collectively hold a 77% stake in SBDL.
In 2011, SDBL posted an after tax profit of Rs. 345 million, up from Rs. 323 million in the previous year and a mere Rs. 54 million five years ago. Its asset base is Rs. 21.17 billion, up from Rs. 17.5 billion in 2010 and Rs. 8.5 billion in 2007. Liabilities amounted to Rs. 18.1 billion, up from Rs. 15.3 billion in 2010 and Rs. 7.7 billion five years ago.
As at 29 February 2012, SDBL had a customer base of approximately 788,000 account holders and its public deposits base amounted to approximately Rs. 16.1 billion. Its loans and advances amounted to Rs. 14.8 billion as at end 2011, up from Rs. 11.1 billion in 2011 and Rs. 5.3 billion in 2007.
SDBL has 47 branches and 41 extension branches situated islandwide. More than 8,400 credit societies also function as virtual branches of SDB, attracting customers to its ranks.
It also currently enjoys credit rating of ‘BB+(lka)’ with a stable outlook from Fitch Rating Lanka Limited and long and short term financial institution ratings of ‘BBB’ and ‘P3’ respectively with a stable outlook from RAM Ratings.
SDBL was established in 1997 as the main credit institution for the SANASA movement, which was formed in 1978. The SANASA movement has grown to include 8,424 SANASA primary societies and 35 SANASA district unions. It is present in all provinces of Sri Lanka. The functionality of the movement has also expanded from providing basic credit facilities to include insurance, education and training, construction and even travel arrangements.
SANASA societies collectively hold a majority stake in SDBL. It is a unique financial institution when compared to other institutions in Sri Lanka due to its heritage linked to co-operative movement with the aim of fostering sustainable economic development through the provision of credit to the rural poor.
Other unique features of SDBL include provision of technical assistance programs, entrepreneurship skill development, collective business enterprises and information technology assistance to the Community. These features have expanded SDBL’s focus from simply profits to a broader goal of overall betterment of communities.
Over the past 14 years, SDBL has become an integral part of pioneering microfinance industry in the country. SDBL has been able to partner effectively with the vast network of SANASA primary societies as well as fraternal members of SANASA movement to reach the masses that remained excluded from mainstream development to improve income as well as develop sustainable livelihoods and sustainable communities.
source - www.ft.lk
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