BOC strives to revive big companies struggling to survive

At least 40 big companies affected by COVID-19 crisis will be getting capital infusion for revival from the Bank of Ceylon’s (BOC) novel initiative aimed at re-invigourating entrepreneurs.

The BOC has already established a Business Revival division at its headquarters in Colombo to assist struggling enterprise customers rather than the traditional focus of recoveries. 

BOC Chairman Kanchana Ratwatte told reporters on Wednesday that this division has been able to settle some of the financial difficulties following discussions with them on loan facilities and moratoriums.

Similar business revival divisions will be set up in 628 BOC branches country-wide and it will take some time to expand the network, he disclosed.           

It has already lent Rs. 26 billion to over 10 companies, he said adding that the bank has so far been able to disburse loan facilities to entrepreneurs with special attention to agriculture, tourism, exports, tea, apparel, IT, logistics and spices cultivation.

Customers have been given an opportunity to discuss their concerns with BOC officials in the division with regard to loan facilities and provide tailor-made financial solutions for their problems.

In regard to revive the economy after the COVID-19 pandemic, the BOC has extended a gamut of benefits for the development of micro and SME sector in the country to rebuild their businesses m he revealed.

The bank disbursed Rs.40 billion out of Rs.150 billion Saubagya concessionary loan scheme for struggling businesses during the height of COVID-19, this was by far the largest contribution by any single bank.

Besides this, It has launched a concessionary credit scheme for SMEs namely Divi Udana and disbursed more than Rs.10 billion within a space of less than five months since it was introduced.

While banking sector credit growth contracted in 2020, Bank of Ceylon’s lending book expanded by 25 per cent demonstrating its commitment to uplifting the economy.