PB records Rs.3.2 b PAT for 2006

Hiran H. SENEWIRATNE

GROWTH: A leading State bank, the People’s Bank (PB) has recorded a Profit After Tax (PAT) of Rs. 3.2 billion in the financial year 2006. It was able to depict a 13.9 per cent overall growth over the prior corresponding period, sources said.

The Bank’s deposit base grew by 19.7 per cent over 2005, thereby enabling the Bank’s total deposits to reach a new high of Rs. 270 billion.

The Bank’s capital funds in 2006 rose to Rs. 10.5 billion, up from Rs. 4 billion in 2005, which is a significant achievement, its Chief Executive Officer/General Manager, Asoka De Silva said.

One of the key areas of focus in the development plan was to create a performance-oriented culture in the Bank and during the fiscal year 2006, performance reached unprecedented heights, giving the Bank a much needed growth and forward thrust, he said.

He said that it has the highest reachout with 324 branches island-wide, which are making profits, except 8 branches.

The Bank will initiate the third restructuring plan, starting 2008 to 2013, to develop many growth areas, especially to expand the delivery channels using IT.

Previous restructuring strategies of the Bank have been change agents, creating catalytic changes in the culture and attitude towards team work, improved customer services and credit recovery, de Silva said.

PB recorded, growth in every area with 20 per cent growth in deposits last year.

It’s deposit base reached Rs. 270 billion. Further there was a 45 per cent loan increase last year and its total loan portfolio reached Rs. 207 billion, he said.

Further, it has given loans worth of Rs. 1 billion to the SME sector, with a 9 per cent interest and the recovery rate is extremely good, he said.

The Bank’s non-performing loan portfolio was brought down to Rs. 15.9 billion from Rs. 17.4 billion following the restructuring plan, with the implementation of the restructuring plan in 2001.

De Silva said that they have a work force of 9,000 and is now in the process of improving the human resource aspects by providing training and development and filling gaps in certain jobs by recruiting skilled professionals.

The Bank plays a pivotal role in the Government’s nation building effort by supporting the SME sector in the country’s GDP growth.

It has implemented many support schemes, including New People First, an agro based industry supporting scheme, and a small-scale new comprehensive rural credit scheme.

It also started forward sales contract schemes to support the farmer community in the country, he said.

The Bank will celebrate to 46th anniversary this July.