Aggressive expansion - Sampath’s vision

by Sapumali Galagoda

Sampath Bank has recorded a growth of 57.4 percent in 2010, said Deputy Managing Director of the bank Aravinda Perera at Sampath Bank’s investor forum held last week in Colombo.

The NPL Ratio of 3.95 percent has reduced from 7.63 percent an year ago, well below the industry average of 6.3 percent consequent upon reducing the NPL’ in absolute terms from Rs 7, 473.9 Bn as at 30/12/2009 to Rs 5,047.1 Bn as at 31/12/2010 by 32.5 percent and a provision cover of 88.8 percent.

The Bank’s vision for 2011 is aggressive expansion and focus on deposit canvassing and to be the largest banking presence in the north and east.

As the pioneer in IT-led banking, The Bank hopes to revamp existing products and innovate new customer focused products, focus on delivery channels based on an IT platform focus on re-positioning the bank’s credit cards and to continue its quest to regain industry leadership by 2013. The Bank will also enhance its CSR commitment, maintain the soundness of their asset quality, bring further improvement to the pre sanctioning credit quality and post sanctioning monitors.

The bank’s staff will work within a target driven culture, the momentum in working toward IFRS by 2012 and BASEL 11 by 2013. An internal revamping will be implemented to cater to the needs of customers and continue to deliver unparallel value to shareholders, said Perera. The total deposit base and the total assets of the bank grew by 19.4 percent and 18.5 percent last year above the industry averages of 15.6 percent and 17.6 percent.

The bank continued with its growth momentum in customer advances recording a significant growth of 30.3 percent over 2009 which surpassed the industry average of 22.6 percent. Sampath Bank’s much higher growth rates in all three key growth areas namely, total deposits, total advances and total assets.

He added that the Bank has recommended a final dividend of Rs 6.60 per share. In 2010 the bank announced a major capital restructuring program, which entailed two sub divisions of shares that increased the number of shares by 120 percent.

Currently the bank operates with a network of 175 branches and 228 automated teller machines.