SDB bank almost triples 1Q profits

Sanasa Development Bank PLC (SDB bank) nearly tripled its profits in the three months ended in March 2021 (1Q21) on robust growth in loans, but the bank is running thin on capital adequacy and liquidity buffers without fresh capital being infused in order to maintain the 
growth momentum. 

The licensed specialised lender reported earnings of Rs.3.30 a share or Rs.302 million for the quarter under review, up 190 percent from Rs.1.85 a share or Rs.103.9 million reported for the same period in 2020. 

The bank gave loans worth of Rs.5.5 billion in the three months, recording 5.2 percent growth from the levels at the end of 2020. 

The bulk of the loans were extended to retired senior citizens under the bank’s Upahara scheme, which recorded Rs.1.9 billion growth, and loans categorised as other personal loans grew Rs.1.1 billion. 

However, the bank will need more capital and liquidity to sustain the growth in its loan book in the remainder of the year as both matrices are at the lower end of regulatory minimums.