BOC resorts to revival action rather than recovery in challenging times
View(s):Sri Lanka‘s business community struggling to survive and repay loans during the COVID-19 crisis period has been given a new life line of revival by the Bank of Ceylon (BOC) by offering financial technical and other necessary assistance.
A one-stop dedicated unit is now fully operational at the BOC head office in Colombo to provide its services to revive the affected companies rather than recovering their delayed loan payments.
A sum of Rs.26 billion of the bank’s fund has been disbursed among several affected companies to resume their businesses with a new vigour.
The bank has also recorded the highest in terms of inward remittances of US$ 2.7 billion (in 2020) as the Sri Lankans serving in overseas specially in West Asia kept faith in the BOC rather than using informal channels like Hawala (Arabic: meaning unofficial transfer).
BOC has recorded the highest asset base of Rs.2.8 trillion, highest deposit base of Rs.2.3 trillion and has maintained its market leadership in trade finance and the loan book rose to Rs. 1.9 trillion.
These details were revealed at a media conference convened by the bank in Colombo on Thursday.
Outlining the achievements of the bank despite existing challenges, BOC Chairman Kanchana Ratwatte told journalists that its revenue was up 2 per cent to Rs. 182 billon posting a Rs. 16.6 billion pre-tax profit and Rs. 11.7 billion after tax profit during the first nine months of last year.
“The recent downgrade of the sovereign and banking institutions in Sri Lanka had a minimal impact on the soundness of the bank and its international operations continue uninterrupted. Being a bank that has maintained its international presence for over eight decades, its foreign correspondent relationships have never been questioned and have been growing from strength to strength”, he said.
General Manager D.P.K. Gunasekara told journalists that in addition to Rs. 551 billion support as debt moratorium for over 350,000 customers, BOC has provided Rs. 128 billion for development activities and the agriculture sector including ‘BOC DiviUdana’ facilities to over 600,000 customers.
It has also disbursed Rs. 42 billion the highest amount in the banking sector for working capital loans at low interest rates under the Central Bank’s ‘Saubagya Renaissance Facility’ to over 30,000 COVID-hit enterprises and individuals, he revealed.
Lending for housing amounted to Rs. 11 billion among 6,538 customers and Rs. 1 billion loans for solar energy installations to over 1,300 customers at low interest rate was another major contribution of the bank for the affected community. (BS)