TFC deposits Rs 450m in Q1

The Finance Company (TFC) has garnered public confidence by attracting Rs 450 m in new deposits in the first financial quarter of 2010. Director/CEO of TFC Kamal Yatawara said that this buoyancy in the performance of the company shows the new levels of transformation and pragmatism it has risen to.

"Having been a company which saw a run on deposits due to the crisis that pervaded the financial services industry about two years ago, seeing TFC become a large deposit attractor is encouraging."

Chairman, Merchant Bank of Sri Lanka (MBSL), the managing agent of TFC, M R Shah was complimentary of TFC's performance, calling it "a sure signal that the company is back on track and poised for growth. We have seen steady progress in deposit mobilization, new investment, recoveries and also in real estate sales, spurred by management inputs from MBSL. What is most commendable is that the TFC team has been extremely committed in ensuring that the company must have a strong and stable outlook and they have worked tirelessly in the last two years to reach that goal."

Yatawara explained that having weathered the storms of the past, the company speedily infused strategic initiatives to get back on track. "The entirety of last year was spent on consolidating our operations and ensuring that we become a sustainable on-going business.

We took steps to clear the balance sheet in the last financial year." Yatawara said that TFC having been a part of the Group that struggled with the challenges of the pervasive crisis, says, "Some of the Group companies too were unable to service their debts to us during this period due to poor cash flows.

There were many elements that held us back, including legal issues preventing us from conducting daily business for nearly five months and the reduction of market values of some of our assets that impacted negatively on our accounts of the last financial year."

However, he is confident of the new chapter that TFC has turned over.

"Not only have we attracted a considerable amount of deposits showcasing the regaining of public confidence, but by clearing our balance sheet, we are now on a clean chapter to begin operations as a transformed company.

This gives our customers and potential customers a solid foundation to work with, and our loyal and committed team, assurance of working for a company that will lead the sector within a short period."

He stresses that TFC has contributed towards the progress of small and medium scale entrepreneurs, which has helped Sri Lanka's economy at macro level, a facet that will continue due to the emphasis on economic development that is currently in focus.