Commercial Credit opens branch in Badulla - Plans to go public by June

Commercial Credit Ltd., which has been going from strength to strength since late 2009 when a change in management marked a new chapter in its history, has now extended its presence to Sri Lanka’s provincial capital and one of its most prominent cities – Badulla. The new branch will be an extension of the company’s promise to ‘Build Leaders Who Uplift Lives through Simple Acts of Love’, the company said in a statement.
Speaking at the launch, Chief Guest, the Chairperson of Commercial Credit Limited, Ms. Vagdevi Fernando said, "the opening of the new branch will enable the company to extend the same superior levels of service and customer relationship that our customers in other 18 locations are currently privy to".

Anil Manawadu, Assistant General Manager – Operations, who is in charge of the Badulla area added that customers in Badulla would also benefit from a rapidly expanding portfolio which now includes services such as micro-finance, pawning, real estate, short term loans, educational loans, Quick Cash (a hire purchase facility granted within one hour and with minimum documentation) etc. in addition to the company’s existing portfolio of financial services. "‘Our aim is to empower the people of Badulla and help uplift their lives through the variety of flexible services that we offer, facilitating the district’s economic empowerment while taking pride in the personal successes of our customers", he said.

The opening of the new branch heralds the company’s entry into the country’s main regions and cities, after the spectacular success the company has enjoyed so far. This success is mirrored in its stellar performance during the last year, which saw the company more than triple its revenue and profits in every sector.

Despite being a relatively new entrant into the finance sector, the company’s performance under the new management has proved the strength of its revolutionary strategy. The Interest Income and Interest Expenditure Gap – the core income of a finance company – grew a staggering 980% from Rs. 10 million to Rs. 98 million per month from 2009 to 2010, while the Cost to Income Ratio fell from 85% to 40%, well below the industry average of 83%.

Meanwhile, monthly collections recorded an 800% increase from Rs. 60 million in 2009 to 480 million at the end of March 2011, while the Gross NPL ratio fell from 12% to 2%. Operating an asset base of Rs. 1.5 billion at the time of takeover the company’s current asset base stands at Rs. 5.4 billion. From a loss making year in 2009 Commercial Credit delivered a profit of a staggering Rs. 350 million at the end of the financial year, which is an unprecedented growth, Commercial Credit’s CEO, Roshan Egodage points out. He also added that the company will list on the Colombo Stock Exchange in June 2011 to keep in line with the requirement of its regulator, the Central Bank of Sri Lanka.

While bringing the total number of island-wide branches and centres to 19, further expansion plans are in the pipeline as the company’s pursues plans to become a nationwide force to reckon within the financial services sector

source - www.island.lk