State-owned banks operate resiliently amidst economic crisis
State-owned banks are operating resiliently amidst economic crisis and the banking system is stable despite the increase in non-performing loans owing to financial sector vulnerabilities, Finance Ministry data shows.
Two state banks are now taking measures to recover bad loans amounting to over Rs.500 billion accumulated during the past few years.
According to the Ministry’s latest fiscal performance report, the asset base of the Bank of Ceylon (BoC) increased by 14.9 per cent to Rs. 4368.9 billion as at the end of August 2022 from Rs. 3,803.2 billion at the end of 2021 continuing its position as the leading commercial bank in the country.
Stage III loans (open-end and closed-end loans) to total loans ratio increased to 6.2 per cent at the end of August 2022, compared to 5.1 per cent as at the end of 2021 reflecting the impact of the deceleration of economic activities and financial sector vulnerabilities.
Profit before Tax (PBT) of the BoC declined to Rs. 27.0 billion in the first eight months of 2022, compared to Rs. 36.9 billion reported in the same period of 2021.
People’s Bank (PB)’s asset base increased by 10.8 per cent to Rs. 2,934 billion as at the end of August 2022 from Rs. 2,647.6 billion as at the end of 2021.
Loans and advances declined by 5.9 per cent to Rs. 1,693.1 billion as at end of August 2022 from Rs. 1,798.7 billion as at the end of 2021.
Non-performing loan ratio (NPL) increased to 4.8 percent as at the end of August 2022 from 3.2 per cent as at the end of 2021. PB recorded a PBT of Rs. 15.7 billion in the first eight months of 2022, compared to Rs. 16.6 billion recorded in the same period of 2021.
National Savings Bank (NSB)’s asset base increased by 2.06 per cent to Rs. 1,611.6 billion as at the end of August 2022 from Rs. 1,579 billion as at the end of 2021.
NSB recorded a PBT of Rs. 6.6 billion in the first eight months of 2022, compared to a PBT of Rs. 18.9 billion recorded in the same period of 2021.
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