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People's Bank (PB) in its fourth year of turnaround (2005) recorded its best performance with profit before tax and appropriations exceeding the Rs. 4 billion mark, up by 63.9 percent; profit after tax and before appropriations Rs. 2.77 billion, profit after tax and appropriations up 45 percent to Rs. 2.050 billion, deposits Rs. 225 billion, net revenue up by 7.9 percent.

The capital deficit stood at Rs. 7.5 billion from Rs. 11.1 billion at end 2004, it was made out to the media, last week. PB Chairman, Dr. P. A. Kiriwandeniya said the capital funds of the bank were now at Rs. 4.181 billion, up from Rs. 131 million over the previous year.

The capital funds include retained profits and the Rs. 2 billion capital infusion by the government in December 2005.

The government has provided the bank with a letter, assuring of backing to cover the balance required funding, Dr. Kiriwandeniya said.

PB made a contribution of Rs. 3.3 billion to government, as dividends, levies and taxes paid to the national treasury and is a 30 percent increase, over 2004, Dr. Kiriwandeniya said.

The non performing loan portfolio, a key indicator on the quality of lending was Rs. 17.4 billion at 11 percent from Rs. 19.7 billion in 2004.

The bank's NPL ratio stood at 21 percent in 2001, when the restructuring process began. With PB's first strategic plan begun 2001 ended, it is now in its second strategic plan, for 2004-2008.

The bank has invested heavily on its IT system and has 200 branches linked together for online cash transactions with 265 to be linked by June 2006, PBs CEO Asoka de Silva said. The bank currently has 107 ATM machines, of which 100 are Visa enabled.

PB claims it has over 25 percent of the student population on its `Sisu Udana' savings accounts through its 1193 Sisu Udana banking units across the island.

In the aftermath of the tsunami, a majority of the government's monthly payments and housing loan disbursements were channelled through the bank, initially using its own funds to ensure that financial assistance reached those who were in need, Head of Marketing and Public Affairs, Deepal Abeyesekera said.

Currently the bank has 624 branches, saving centres and service counters all over the island. The bank has a wide range of deposit schemes for all age groups, a housing loan scheme and market leadership in pawning finances, head of finance MIS and risk management, Bertal Pinto Jayawardena said. The bank also made steady progress in the growth of its NRFC base and has seen a significant increase in market share of inward remittances of foreign currencies.

- EL

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