SMIB branch expansion on the cards
The State Mortgage and Investment Bank (SMIB) will expand its branch
network this year under a major expansion drive, SMIB, Chairman Jagath
Wellawatta said.He said that the bank will set up 10 branches in major
cities this year.
Currently the bank operates 15 branches across the country. SMIB is
one of the oldest banks in the country. Set up as the Ceylon State
Mortgage Bank in 1931, it is a specialised bank in financing the housing
sector. SMIB has evolved to be the housing bank to the country.
The bank's current assets base is Rs. 18 billion.Deviating from the
core business the bank ventured into other services such as accepting
deposits. The bank introduced Savings Accounts in 2001 and expanded its
reach by opening extension offices at major towns in 2007.SMIB has
launched a robust diversification plan with the introduction of
personal, vehicle and SME loans diversifying from its existing portfolio
of housing loans and deposit products.
The bank has commenced lending to the tourism, agriculture and
The bank commenced lending to the SME sector in 2010. Vehicle loans
are not a leasing facility but a mortgage-backed five-year loan.
Recognising the contribution of migrant workers to the economy the
bank launched the Siri Nika loan scheme for expatriate workers at a six
percent interest rate for the first 500,000. “The migrant worker loan
scheme launched with the support of the Sri Lanka Foreign Employment
Bureau has boosted the bank's remittance business,” Wellawatta said
The bank signed an MoU with Abans to provide loans for solar power
panel installation in houses, hotels, agricultural farms and commercial
They recently forayed into the pawning business. SMIB operates minor
savings accounts, normal savings and fixed deposits under Wonder Savings
which doubles the savings at maturity.
The bank has launched a feasibility study to construct houses for
those living in cadjan houses in the Western province under a budget
proposal to eliminate the housing problem in the country within the next
few years. The Bank's Profit Before Tax increased from Rs. 638 million
in 2010 to Rs. 731 million in 2011.