DFCC Vardhana Bank has recorded a 97% growth in interest income loans and advances which has amounted to Rs. 1,812 million last year against Rs 922 million in 2006, the Bank said in a press release. In his annual review of the Bank’s operations for the year 2007, Managing Director and CEO of DFCC Vardhana Bank, L.G Perera identified the income growth to be propelled by the portfolio growth as well as by re-pricing of lending products in line with market trends.

He said the easing up of the interest rates is in the greater good of the market which could only come from a favourable external environment and an improved domestic political climate which would allow macro-economic management to be in line with the accepted norms.

The bank’s loans and advances portfolio have increased from Rs. 8 billion to Rs. 11.4 billion registering a 43% growth during 2007, while the average credit growth in the banking sector during the year was in the region of 30 per cent. The lending portfolio consists of both corporate and personal banking customers. In the hopes of achieving steady growth in the bank’s loans and advances portfolio, Mr. Perera said the bank will be able to significantly expand the customer base with the new branches as well as the branches to be opened which will go into full scale operations next year.

In 2007, the total customer deposits increased by 55% to Rs. 12.1 billion from Rs. 7.8 billion in the previous year. The average deposit growth experienced in the banking sector during 2007 had been 10 percent. The credit to deposit ratio had stood at 94 percent by end of December 2007 while it was a higher 102.6 a year before.