Sinhaputhra Finance Ltd celebrated 30 years of service in the finance industry last week, saying the company has grown cautiously.
It said in a statement that Sinhaputhra was always skeptical about over expansion and adding up overhead and high costs of branches and expanded through a network of agents that are simply variable in costs. It added that in these trying times the company has a portfolio which is nearly 100% in installment credits. “Although its middle stages were somewhat propelled through real estate, presently Sinhaputhra has a negligibly small portfolio after it divested from such investments nearly five years ago,” it said.
Even at the cost of losing certain clients, the company began insisting on proper collateral even for vehicle leasing and hire purchase. With the relatively modest deposit base of Rs. 2.1 billion, the company can get by with a modest target of new investments each month to meet its obligations to depositors and bankers, the press release said. This has resulted in a large portfolio of assets which can be readily securitized. As at February 2009, Sinhaputhra was supported by an income earning asset base of Rs.3.1 billion against a Fixed Deposit base of Rs.2.2 billion. |
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