Financial News

Prime Grameen records Rs. 827 mn PBT for 2014/15

13 Jul 2015 - {{hitsCtrl.values.hits}}

Prime Grameen has concluded a highly successful 2014/15 with impressive figures in several financial and non-financial indicators.

During this period Prime Grameen recorded an NPL of 0.88 percent in an industry where loans are given free of collateral and the gross NPL average is over 6 percent. This speaks volumes of the effectiveness of the company’s credit management process which is strengthened by a well-defined credit evaluation process, enabling the company to disburse quality loans.

Profit Before Tax (PBT) of Rs.827 million, a 50 percent increase from 2013/14, indicates a continuation of the impressive growth which has placed the Company in a strong position to forge ahead in the new financial year. Furthermore, Prime Grameen has increased its total Fixed Deposits (FD) by a staggering 113 percent from 2013/14, with an FD customer base growth of 27 percent. This is a result of the strong confidence the Company has built up among the general public over the years.

These impressive numbers were achieved with the support of the Board of Hatton National Bank (HNB), which acquired a 51 percent voting stake of the Company in November 2014, and Prime Lands, the sole owners of the Company till the acquisition by HNB.

Jonathan Alles - Chairman - Prime Grameen said: “Micro finance is a key sector in the economy which drives equality of wealth distribution, regional development and poverty alleviation, which are key economic development indicators. Prime Grameen has over a decade being involved in providing support for the development of micro entrepreneurs and today it has evolved to be one of the key micro finance providers in the country. HNB too has been involved in micro credit for over 25 years through its flagship ‘Gami Pubuduwa’ scheme and this commitment of the Bank towards micro finance resulted in HNB acquiring a controlling interest in Prime Grameen late last year. This partnership between HNB and Prime Grameen will no doubt take the micro finance industry in Sri Lanka to the next level.”

Commenting on these figures, Chaminda Prabhath – Managing Director/ CEO of Prime Grameen said that it was the result of a collective effort by all employees.

Prime Grameen introduced three new loan products tailor-made to suit their customers’ requirements. Under the broad theme of “not a burden, but a comfort”, the Prime Grameen “Ezy Loans” scheme was introduced to the business community of Sri Lanka with a view to facilitating flexibility and expeditious approvals. Two other loan schemes were introduced targeting small and medium scale enterprises titled “Swashakthi” and “Abhilasha”. The ‘Abhilasha’ Loan scheme was aimed at both male and female individual entrepreneurs providing enhanced financial services with greater flexibility and prolonged repayment periods. The ‘Swashakthi’ Loan scheme launched during the year offers financial assistance to the savings customer base as loans are granted under this scheme against their savings accounts with less paper work and flexibility.

Prime Grameen increased its customer base by 20.35 percent in 2014/15, an indicator of the growing stature and public acceptance of the company. The company grew its Loans and Advances by 60 percent and its total asset base by a remarkable 73 percent.

It is notable that these impressive figures were achieved during a period of declining interest rates and volatile market conditions. Plans are in place to expand the Prime Grameen network and serve the financial needs of Sri Lankans in the rural areas including all Provinces, which will result in further growth in the customer base, during the 2015/16 financial year.

Financial News

Prime Grameen records Rs. 827 mn PBT for 2014/15

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