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Thursday, July 7, 2011

Lanka ORIX Finance begins trading today

Lanka ORIX Finance Co. Ltd. (LOFC) listed on the Colombo Stock Exchange on the Diri Savi Board will commence trading today. In April this year, Lanka ORIX Leasing Company PLC (LOLC) sold 10 percent of its 100 percent holding of LOFC to investors in order to comply with the minimum requirements of the Colombo Stock Exchange to be listed as required by the Central Bank of Sri Lanka (CBSL).

LOFC is one of the largest Registered Finance Companies (RFC) in the country with a lending book of Rs 20.76 billion and a deposit base of Rs 17.39 billion as at March 31, 2011.

In June this year the deposit base reached Rs 20 billion with the Company being able to source over Rs 3 billion worth of fixed deposits and savings accounts in both rupees and foreign currency during this quarter.

LOFC is the only RFC in the country with CBSL approval to offer foreign currency savings and fixed deposit products and engage in Inward Worker Remittances. LOLC changed its strategic direction and moved towards a diversified conglomerate. Its request from CBSL not to renew its leasing licence early this year was approved which assisted in completing this transition.

This was in line with LOLC’s strategy of diversification of its strategic investments into sectors other than the traditional financial services business it was known to be involved in.

With this strategic move, LOFC benefits from the large book of SME business carried out by LOLC and also the extensive footprint developed by LOLC over a period of time.

LOFC operates from more than 50 service points reaching all parts of the country including a significant presence in the North and the East. LOFC branch network is fully equipped to handle all financial needs of the high net worth customer to the Micro customer with a wide range of financial products covering leasing, hire purchases, loans, working capital loans, savings, fixed deposits, insurance, margin trading and worker remittance.

LOFC has performed extremely well since it commenced business in June 2003 and has expanded its deposit base rapidly, over 70 percent growth seen in the last financial year. Disbursement of lending too saw exponential growth over the year, with 134 percent growth seen during the year ended March 31, 2011.

The company recorded PBT of Rs 1.49 bn, a 649 percent growth over last year. The corresponding PAT was Rs 1.25 bn with 1229 percent growth over the previous financial year.

source - www.dailynews.lk