Sunday Observer Online


Sunday, 10 April 2011





Marriage Proposals
Government Gazette

People's Bank PAT up 56.8%

People's Bank recorded a pre tax profit of Rs. 8.8 billion, a growth of 44 percent compared to last year. Group pre tax profit for the year reached Rs. 11.4 billion, the highest recorded by the banking sector for financial year 2010.

Post tax profit for the year improved by 56.8 percent to Rs. 5.2 billion as against Rs. 3.3 billion in 2009. This was subsequent to the mainstream tax charges of Rs. 3.6 billion due to salary related expenses and the high VAT liability.

People’s Bank Chairman
W Karunajeewa

According to a spokesman for the bank, the gross interest income reduced by 9.3 percent while interest expenses reduced by 20.2 percent. It was mainly due to the considerable decrease in interest rates driven by Central Bank policy rates but interest margins were sustained at healthy levels in the year under review.

The bank's total assets witnessed a growth of 15 percent amounting to Rs. 547 billion compared to Rs. 476 billion in 2009. The main reason for this increase is the favourable economic conditions that prevailed during the year.

Total loans and advances increased to Rs. 372 billion from Rs. 299 billion an increase of 24 percent over 2009 due to an increase in commercial and housing loans and pawning advances.

The spokesman said that the pawning business has grown to become an integral part of the financing cycle for agriculture, fisheries and other micro SME sectors in the country. At present People's Bank is the market leader in pawning and the most preferred and sought after pawning service provider. This business yields good returns and is a major contributor to the bank's bottomline in addition to being very capital efficient.

The NPL reduced by Rs. 1.3 billion to Rs. 18.7 billion in 2010. The NPL ratio dropped to 5 percent from the previous 6.7 percent recording a reduction of 170 basis points.

This ratio is below the banking industry average. Of this amount 2.1 percent is pertaining to old hardcore loans which the bank has fully provided. The cost income ratio declined to 60.2 percent from 60.6 percent in 2009 and return on assets of 1.4 percent in 2009 increased to 1.7 percent in 2010.

The banks deposit base recorded an increase of 16.7 percent, Rs. 462 billion in 2010 compared to Rs. 396 billion recorded in 2009. The total increase in deposits was directly influenced by the incline in rupee savings deposit base while the rupee time deposits increased by 19.1 percent last year. Rupee savings recorded a robust Rs. 32.9 billion growth which ended at Rs. 191.1 billion. Fixed deposits which represent a significant portion of the deposit portfolio grew by 19 percent over 2009.

The capital funds of the bank have improved to Rs. 20.8 billion up from Rs. 17.8 billion over the previous year.

The bank's contribution to the government by way of taxes and levies increased by 29 percent to reach Rs. 9.9 billion compared to Rs. 7.9 billion in 2009.

This amount is the highest contribution to the state coffers from the banking industry.

The number of customer accounts is now close to 13 million with the largest branch network of 679, with 549 branches online and, interconnected. The banks branch outreach will be fully connected for online transactions before end of June.



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