People's Leasing to expand micro finance sector

By Surekha GALAGODA

People's Leasing Company Limited has decided to broadbase its capital structure to finance future expansions, said CEO/GM D.P. Kumarage

He said that at least another four branches will be opened in the North and the East before next April. We see a lot of potential in the North and the East as there is a lot of untapped opportunities.

The people who suffered ing for 30 years are free today to explore opportunities in agriculture, fisheries, dairy, tourism and self employment ventures.

There is scope for the expansion of Islamic financing in the East as there is a large percentage of Muslims in the region. As seen from the Balance Sheet of 2011, the contribution of Islamic finance in 2009 was Rs. 86,064m, Rs. 114,200m in 2010 and Rs. 166,076 m in the first six months of 2011. Kumarage said that the people have reposed faith in the People's Leasing Company as we are a fully owned subsidiary of the People's Bank.The company has plans to expand and explore opportunities in the Micro finance sector and to support this we have already started a micro finance company.

He said that the company has recorded a after tax profit of Rs. 2.6b 2010/11 while the previous financial year was Rs. 1.2b which is an increase of over 100 percent.

The company has grown steadily and crossed the Rs. 50b milestone to reach Rs. 55.9b in the asset base, a growth of over 80 percent.

He said that the credit loss provision recorded a net reversal while the non performing ratio had also dropped from 2.94 percent to a mere 1.21 percent.

The company which was formed in 1995 with a start up capital of Rs. 10m, today has six subsidiaries with an asset base of Rs. 60b.

The company became the market leader in the sixth year of its operations and for nine years we have retained it.

He said the difficult part is retaining the market leader position but we have done it and I am confident that we will continue to be the market leader for years to come, said Kumarage.

He said that the company's success is based on the quality and commitment of its people and its ability to build productive relationships with stakeholders and business partners.

Now the company functions as a powerful group of companies with six subsidiaries which include People's Leasing Finance PLC, People's Microfinance Ltd, People's Insurance Ltd, People's Leasing Fleet Management Ltd, People's Leasing Property Development Ltd and People's Leasing Havelock Properties Ltd.

Kumarage said that the microfinance arm will help the Group to expand its operations to cover the rural areas while the operations of People's Leasing Fleet Management Ltd, People's Leasing Property Development Ltd and People's Leasing Havelock Properties Ltd are expected to make a significant contribution to the Group in the future.

He said, it helped Seylan Merchant Leasing Ltd when it faced difficulties and turned it around within a year and today the company has recorded a profit of Rs. 102m from a Rs. 120m loss the previous year.

The company has won many awards and accolades while being engaged in CSR projects.

The favourable macroeconomic conditions, prudent management policies together with the unwavering support of the People's Bank will ensure that the company will achieve its objectives and continue to make a positive contribution to the People's Bank group as well as the economy of the country, said Kumarage.