Sri Lanka’s Commercial Bank reaches Rs. 1 trillion mark for third time
Sri Lanka’s Commercial Bank has posted a strong second quarter, during which its loan book has crossed the milestone of Rs. 1 trillion.
The achievement has recorded a growth in key indicators for the Commercial Bank of Ceylon Group for the six months ended 30 June 2021.
The Commercial Bank Group has reportedly recorded a gross income of Rs. 79.931 billion for the period, reflecting a growth of 6.34% over the corresponding six months of 2020 and an improvement of 11.23% in the second quarter of 2021.
“An increase in operating income from the growth in lending, an improvement in net fees and commission income and significant gains in some of the components of other income was partly offset by a substantial growth in impairment charges in the six months reviewed, but we are pleased with the overall results because we have built on the momentum of the first quarter and improved many of the core ratios and key performance indicators,” Commercial Bank Chairman Justice K. Sripavan has been quoted as saying in the local media.
Commercial Bank Managing Director S. Renganathan has reportedly said, “We have also sustained steady improvements in capital adequacy ratios, non-performing loan ratios, provision cover and interest margins while grappling with the challenges posed by the global pandemic. We extended our fullest support for the implementation of Government initiatives to minimise the impact of COVID-19 on businesses and the community and to stabilise the economy.”
“This included providing relief to borrowers and participating in the ‘Saubagya’ loan scheme in addition to implementing the Bank’s own concessionary lending schemes,” he has said, adding, “We believe we now have a blueprint for achieving well-balanced growth in adverse conditions that will be of value in the years ahead.”
OSL take:
The latest record by Sri Lanka’s Commercial Bank is a clear indication of the strength and growth of the country’s banking sector even amidst the Covid 19 pandemic. Several key sectors of Sri Lanka’s economy have shown a growth momentum despite pandemic challenges. Sri Lanka is currently engaged in an aggressive development programme and is also emerging as a business destination in the South Asian region. Given Sri Lanka’s commitment to further improve the ease of doing business environment in the country and its business conducive natures, foreign businesses/investors could confidently explore opportunities in the country since the economy is held by a strong banking sector.
| Article Code : | VBS/AT/18082021/Z_7 |