DFCC actively pursuing tax free budget proposals
View(s):Access to diversified sources of long term funds at a reasonable cost is important for DFCC to prudently leverage its franchise in the project lending space in post war Sri Lanka, according to Nihal Fonseka, CEO DFCC.
Reviewing the results for the nine months ended 31 December 2012, he said the credit ceiling that applied in 2012 is not applicable in 2013 which will permit DFCC Vardhana Bank PLC (DVB) to target the growth of personal financial assets more aggressively. “The announcement made in the budget proposals for 2013 that the Government will facilitate DFCC Bank to raise up to US$ 250 million in long term funds from international capital markets is also a favourable development,” he has said. The foreign exchange risk cover and tax free interest income from deployment of funds raised that were proposed in the budget will stand the bank in good stead to enhance its development financing mandate, he has said, adding that the bank is actively pursuing this opportunity.
“For DVB increasing the current and savings account (CASA) component of its customer deposits and the higher yielding personal financial assets are priorities.”
The DFCC Group recorded a consolidated profit after tax of Rs 2,374 million in this period, compared with Rs 2,204 million in the corresponding period of the previous year (comparable period). The financial year of subsidiaries DVB and Synapsys (Pvt) Ltd, joint venture Acuity Partners (Pvt) Ltd and associate company National Asset Management Ltd ends on 31 December and therefore the results of these entities are consolidated with the bank with a time lag of three months.
DFCC’s banking business contributed Rs 2,215 million to profit after tax (based on partial consolidation in the supplementary income statement of DBB), the investment banking joint venture, Acuity Partners (Pvt) Ltd (APL) contributed Rs 105 million in the current period, 16 per cent lower than Rs 125 million in the comparable period.
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