SMIB branch expansion on the cards

The State Mortgage and Investment Bank (SMIB) will expand its branch network this year under a major expansion drive, SMIB, Chairman Jagath Wellawatta said.He said that the bank will set up 10 branches in major cities this year.

Jagath Wellawatta

Currently the bank operates 15 branches across the country. SMIB is one of the oldest banks in the country. Set up as the Ceylon State Mortgage Bank in 1931, it is a specialised bank in financing the housing sector. SMIB has evolved to be the housing bank to the country.

The bank's current assets base is Rs. 18 billion.Deviating from the core business the bank ventured into other services such as accepting deposits. The bank introduced Savings Accounts in 2001 and expanded its reach by opening extension offices at major towns in 2007.SMIB has launched a robust diversification plan with the introduction of personal, vehicle and SME loans diversifying from its existing portfolio of housing loans and deposit products.

The bank has commenced lending to the tourism, agriculture and fisheries sectors.

The bank commenced lending to the SME sector in 2010. Vehicle loans are not a leasing facility but a mortgage-backed five-year loan.

Recognising the contribution of migrant workers to the economy the bank launched the Siri Nika loan scheme for expatriate workers at a six percent interest rate for the first 500,000. “The migrant worker loan scheme launched with the support of the Sri Lanka Foreign Employment Bureau has boosted the bank's remittance business,” Wellawatta said

The bank signed an MoU with Abans to provide loans for solar power panel installation in houses, hotels, agricultural farms and commercial establishments.

They recently forayed into the pawning business. SMIB operates minor savings accounts, normal savings and fixed deposits under Wonder Savings which doubles the savings at maturity.

The bank has launched a feasibility study to construct houses for those living in cadjan houses in the Western province under a budget proposal to eliminate the housing problem in the country within the next few years. The Bank's Profit Before Tax increased from Rs. 638 million in 2010 to Rs. 731 million in 2011.

LF