People’s Bank expands balance sheet close to Rs. 350 bn during 9M-21 | Daily News

People’s Bank expands balance sheet close to Rs. 350 bn during 9M-21

Sujeewa Rajapakse-Ranjith Kodituwakku
Sujeewa Rajapakse-Ranjith Kodituwakku

People’s Bank today announced the results for its nine months period ended September 30, 2021 reporting asset and deposit growth of Rs 349.7 billion and Rs 276.6 billion, respectively - a record high growing by 15.7% and 15.1% during the said period. Growth in net loans and investment in treasury securities was Rs 167.4 billion and Rs 191.4 billion, respectively. On a standalone basis, the Bank accounted for close to 20.0% of the Banking sector’s asset and net loan growth during the 21 month period ended September 30, 2021; which is a feat self attesting to the contribution made by the Institution to the national cause and the Government. At September 30, 2021 - close to 50.% of the Bank’s gross loans were to the State and other State Owned Enterprises.

During the said twenty one month period ended September 30, 2021 - the Bank introduced multiple loan schemes in view of supporting its customers. These included, amongst other, over Rs 60 billion in credit to support Small and Medium Scale Enterprises, over Rs 160.1 billion in home loans to over 9,000 customers, over Rs 6 billion to retired and disabled officers of armed forces and over Rs 560.0 million to artists of varying disciplines. In addition, Bank extended LKR 750 million to support the development of a Techno Park in Galle, over LKR 485 million to support women entrepreneurship and over LKR 260. million to University Students to purchase laptops.

Looking at some of the nine month 2021 highlights, net interest income rose by 38.9% whilst total operating income grew by close to 30.%. Impairment charges rose by 10.7% Non personnel operating expenses were maintained at near Rs 11.6 billion without any increase. The Bank’s gross stage 3 loans as a function of total gross loans was close to 8.1% at September 30, 2021 whilst its gross non performing loans excluding SOEs was 6.1%. Total taxes and dividends to the Government during the said period was Rs 9.7 billion. The Bank’s Tier I and Total Capital Adequacy was 10.2% and 15.5%, respectively at end September 2021 compared with a minimum 8.5% and 12.5%.

Commenting on the results, the Chairman of People’s Bank - Sujeewa Rajapakse said that: “We are pleased with the role and contribution of the Institution more so during a time of extraordinary challenge, change and need. We remain of service to the country in a time it needs us the most and are committed to the Government’s long term Vistas of Prosperity and Splendor initiatives. We measure our success not by a typical top or bottom line but by our contribution to safeguard the pandemic stricken economy and our role to assist in its revival. It also demonstrates our efficiency and productivity even during the most challenging circumstances thereby debunking any myth to the contrary. Above all said, with our job being far from over, we remain committed to continuing to play our part to help the country navigate through these unchartered waters”

The Chief Executive Officer/ General Manager of People’s Bank - Ranjith Kodituwakku stated that: “2021 is a year unlike any seen. The year to date period has put to test our continued commitment, our continued access, our digital capabilities, our customer centricity and our ultimate ability to rise to our national duty. Notwithstanding the many challenges, including those beyond our reasonable control as seen in recent past, our delivery remains testimony to our strength, resilience and collective capability. Fully aware of the many challenges which lie ahead, we look forward to the future with a great degree of hope and optimism”

People’s Bank is the country’s Premiere Licensed Commercial Bank with Sri Lanka’s largest banking foot print comprised of 741 branches and service centers island wide. With a history spanning 60 years, the Bank benefits from a staff strength of close to 8,000 serving more than 14.0 million customers and over 19.0 million account relationships - which is by far the largest for any Financial Services provider in country. Established under the People’s Bank Act No. 29 of 1961, the Bank carries a National Long-Term Rating of “AA - (lka/ Stable)”; by Fitch Ratings Lanka Ltd.

With a view to bring the benefits of digitalization to the entire nation, People’s Bank embarked on a digital transformation journey back in 2015 by taking a pioneering role in digitization and customer engagement. Since then a host of diversified digital banking solutions have been launched that deliver enhanced convenience, speed and efficiency, and convenience to customers at every point in their interactions with the bank.

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