BoC grants Sookshma loans worth Rs. 1.3 billion in 2006
by L. S. A. Wedaarachchi
The Bank of Ceylon granted Sookshma (Micro) loans worth Rs. 1.3
billion last year for 26,000 SME entrepreneurs. The next phase of the
Sookshma loan scheme with more benefits for the 'SME sector' will be
implemented in the near future.
The Sookshma loan scheme was introduced a year ago targeting SME
entrepreneur development and to set up a new business community
specially from the sub-urban and rural areas in the country.
Chairman, Bank of Ceylon Udayasri Kariyawasam said that of the Sri
Lankan population, 70 per cent are in the rural sector and it is
impossible to develop Sri Lanka without getting their fullest
participation.
The BoC as a giant in every aspect in the banking sector must
actively participate in national development activities. The Sookshma
loan scheme is one of the successful schemes implemented to achieve this
objective, he said.
At present thousands of small and medium scale projects under the 'Sookshma'
loan scheme are in operation all over the island. A loan up to Rs.
250,000 at 10% per cent interest without any collateral was offered
under the 'Sookshma' scheme. The BoC needs only the project report to
consider the loan.
The BoC achieved the best ever results last year and its income rose
by 32 per cent from Rs. 26.78 billion in 2005 to Rs. 35.39 billion in
2006. The annual profit before VAT and income tax increased by 65 per
cent from Rs. 3.59 billion in 2005 to Rs. 5.93 billion in 2006.
Commenting on the achievement of the Bank last year the Chairman
attributed the bold decisions and people - friendly policies adopted by
the bank and the excellent services rendered by the Bank's workforce as
the main reasons for those achievements.
"Steps were taken to stop waste. For example, there were five
consultants who were highly paid in the bank and one of them was a
foreign consultant whose monthly salary and remuneration was over US$
30,000. His salary alone was US$ 18,750.
"One of my first decisions was to discontinue him as he was not a
qualified banker. Except one the others were also discontinued. in
addition stringent decisions were taken to recover non-performing or
defaulted loans, he said.
He said to offer an efficient and courteous service to the customer,
the BoC will recruit five-hundred youths as Banking Assistants and the
examinations were held recently.
According to the Chairman, the Bank has made a huge investment to
link all its branches in all parts of the country. The Bank of Ceylon
has more than 300 online service points and 185 ATMs all over the
country. Through the country's online branch network, the Bank of Ceylon
provides online facilities in core banking fund management, trade
finance to large and small enterprises and to individuals islandwide.
The Bank of Ceylon is the largest bank in Sri Lanka holding about 30
per cent of the country's banking assets worth over Rs. 375 billion.
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