CRL records steady growth

Capital Reach Leasing PLC (CRL) has achieved a steady growth in the financial year 2008/09.

The gross income has grown by 50 percent to reach Rs. 309 million. from Rs. 206 million a year ago. The Company continued to operate in the SME sector with most of the lending being carried out through their branch network.

The lending portfolio grew by 16 percent in a year where the industry volumes were flat. CRL PLC managed to maintain the quality of their portfolio in a difficult year.

The year-end Non performing portfolio of less than 3 percent has been creditable compared to the industry average. Capital Reach Leasing a Registered Finance Company under the supervision of the Central Bank of Sri Lanka shifted their sources of funding significantly towards Public Deposits.

The Deposit base grew by 79 percent during the last financial year making it the main source of funding of the lending portfolio.The public deposits raised by CRL are entirely used in lending and not used for financing investments or trading activities.

The Chairman of the Company Mayura Fernando said that "A regular cash flow generated by the good quality lending portfolio has kept us out of any liquidity problems and enabled the company to service the depositors very efficiently". Despite the current confidence crisis in the industry Capital Reach Leasing was able to achieve a net growth of the deposit base throughout the last year and the growth continues up to date. The Company obtained a listing on the CSE in January this year.

The IPO through an offer for sale was oversubscribed on the third day. Capital Reach Leasing plans to make use of this listing of equity in the future to raise listed debt securities from the market.