TFC on sound growth trajectory- TFC chairman

By Lalin FERNANDOPULLE

The Finance Company (TFC) is on a sound growth trajectory and it is not affected by the recent NSB-TFC share transaction, said TFC Chairman, Preethi Jayawardena. He said that the transaction was a private affair between owners of the shares of the National Savings Bank and added that it has no impact whatsoever on the TFC or its depositors.

The company recorded a 123 percent growth in loan disbursements in 2011/12 compared to 2010/11. While new deposits have been on an upward spiral with a year-on-year growth of 170 percent for fixed deposits and 54 percent for savings, a high percentage of deposits have been re-invested with the company at maturity.“TFC has the largest deposit base in the non-bank finance sector amounting to Rs 20b. The company recorded an inflow of new deposits of over Rs. 1b last month, apart from renewals” Jayawardena said.

TFC is one of the pioneering non-bank financial institutions in existence for 72 years. Jayawardena said that the company is negotiating with a foreign partner for capital infusion to boost operations.

“We are confident that with new capital infused into the organisation, business would thrive”.

“The company is in safe hands and is on a sound footing. Depositors have placed their confidence in the organisation which is aiming at becoming the leading finance institution in the country”, he said.

TFC ran into a crisis due to its association with the Golden Key company, which triggered panic among depositors in 2010.

The company incurred a loss of Rs. 3.7b by March 2011. It recorded a Rs. 200m operational loss per month. Jayawardena said that by December 31, 2011, TFC recorded a profit of Rs. 15m but the Board was not satisfied with it as it was not pure operational profits.

The company recorded growth in all spheres since the new management takeover.

TFC CEO, Kamal Yatawara said that the company was doing extremely well and added that if it more funds were infused growth will be accelerated.

“TFC possesses land and commercial properties to the value of Rs. 4.5b. We are in the process of selling these assets at a profit”, he said.

TFC is a pioneer in the real estste, pawning and hire purchase business. Pawning being a main contributor recoded a year-on- year growth of 237 percent.

Pawning centres were opened in Batticaloa, Trincomalee, Vavuniya and Maharagama.Meanwhile, the real estate sector recorded a growth of 350 percent in sales bringing in Rs. 2.7b.