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| Sunday, 5 February 2006 |
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Business |  |
| News Business Features Editorial
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BoC pre-tax profit up 20% to Rs. 3 billion The Bank of Ceylon (BoC) has recorded a pre-tax profit of Rs. 3 billion, an increase of 20 percent compared to 2004. The post tax profit increased from Rs. 1.9 billion to Rs. 2.2 billion, an increase of 12.75%. The total deposit base of the bank has increased by 13.16 percent while the total advances increased by 23.84 percent. The bank reached the Rs. 300 billion asset base in 2005 and it has the largest asset base in the entire corporate sector, said General Manager C. N. P. Palihena. He said that they plan to have the entire network of the bank online by the end of 2006. The bank is also planning to sign an agreement with Hatton National Bank to bring the ATM network to 300 by the end of the first quarter. The total cost of the project is Rs. 1.5 billion. Palihena said that plans are under way to relocate some of the branches while extension offices and pawning centres too will be opened for the convenience of customers. He said the bank is planning to focus on the micro, medium and small sectors while maintaining its share in the corporate sector. The BOC will launch two loan schemes known as Sookshma and Gamata Naya with the objective of improving the living standard of the rural community, generation of self-employment, using the resources of the rural areas and promoting export oriented and import substitution ventures. Under the Sookshma scheme a person can obtain a loan up to a maximum of Rs. 250,000 to start an income generating project. The rate of interest is 10%. The main objective of this scheme is to assist this sector without property mortgages. Therefore to get a loan of Rs. 50,000, a guarantee by a family member who derives a regular income is sufficient. For loans above Rs. 50,000 mortgaging of project assets and two guarantors acceptable to the bank are necessary. To be eligible for a loan under Gamata Naya an investment of Rs 30 million or more, providing jobs to 200 or above and locating the factory outside the western province are necessary. The bank will finance 70% of the project costs while the repayment is 10 years with a grace period of one year. The rate of interest is 12%. (SG) |
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