LDB opening in Jaffna

Lankaputhra Development Bank (LDB) will open a branch in Jaffna at the end of this year. Chairperson LDB, Kumuduny Kulathunga said that though there are many banks operating in Jaffna, small entrepreneurs are not supported by many of these banks. Therefore, LDB has decided to open a branch in Jaffna to support SMEs.

She said that the aim of LDB is to serve the people who are not served by other Banks.

Chairperson LDB K.Kulathunga awards a certificate while MD L. Amarasekera looks on

Ms Kulathunga said that the bank has recorded a profit of Rs 77m in 2011 whilst it was only Rs 20.7m in 2010 which is a 280 percent increase compared to 2010.

The bank has also reduced the non performing advances to Rs 1139m from Rs 1324m in 2010.

“We are planning to reduce the non performing advances further by the end of the year and to achieve the target, we have appointed a committee who looks at the non performing advances on a daily basis and acts to reduce it.”

She was confident that the bank will be able to reduce it further and said that most of them had genuine reasons to default payments.

She said that the bank has always recorded a profit though the non performing advances are high.

She said that they are discussing with Laksala to assist the small craftsman of the country.

The Bank launched a new product, namely “Sandaliya” loan scheme for women which allows women to save money by lending three times of the saved amount as a loan to buy gold jewellery.

LDB launched a corporate plan and has given targets to all branch managers, which are being evaluated monthly for their performance.

Without being complacent until the customers come to the Bank we have made arrangements to visit the customers but are very careful when lending.

GM of LDB, Lasantha Amarasekera said that they plan to increase the loan portfolio to over Rs 3b from the present Rs 2.36b but the bank will not exceed the limits specified by the Central Bank.The Bank has disbursed around Rs 25m to women in Kantale through a women's organisation to start self-employment projects. The recovery rate is 100 percent. The Bank has seven branches and are focusing on developing the skills of the employees.

SG