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| Sunday, 21 March 2004 |
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| News Business Features Editorial
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PLC embarks on insurance brokering by Hiran H. Senewiratne People's Leasing Company Ltd (PLC), a fully owned subsidiary of People's Bank, will establish an insurance brokering company shortly. This new subsidiary of PLC, would be part of its diversification programme and it would initially invest Rs 500,000 for its main business operations, Chief Executive Officer (CEO) D.P. Kumarage said. Its primary concern was to formally establish itself and earn a reputation in the insurance brokering industry. PLC would introduce new products and services to the market,including lease operations, pledge loans and term loans to attract clients and increase the customer base of the entity. It would also extend the working hours to provide a better service to its customers, the CEO said. PLC had recorded a 60 per cent growth than last year (2002), with a profit of over Rs 200 million, one month ahead of the financial year,he added. It had raised more than Rs 2.8 billion by way of securitisation from the market so far, with the backing of leading financial institutions and commercial banks. PLC had set a target of raising more than Rs 1 billion from securitisation before the end of this year. Currently, it had a 16 per cent market share with more than 17,000 customers, considered to be the market leader in the leasing business. PLC Accountant, Udesh Gunawardena, said that it was the biggest user of the Indian line of credit in the country and as a result it was able to import and lease out mainly buses and trucks. At present, over 4000 buses had been released by the PLC to improve the public transport system in the country. It had greatly contributed to improve the People's Bank's negative net asset position. The company had the highest recovery rate in the trade, while maintaining a healthy portfolio. PLC started with an initial capital of Rs 25 million and it had now reached a net asset position of Rs 1.1 billion. It's new city office would be opened soon at Union Place, Colombo to streamline and enhance its service. |
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