Sarvodaya Development Finance PLC records impressive 1Q

Sarvodaya Development Finance PLC (SDF) has continued to outperform during the first quarter of this financial year with its deposit base growing by 10.1 per cent from end March 2022, to end June 2022.

The total assets of the company recorded a marginal growth despite all social, political and economic challenges experienced in the country recently. SDF’s total income for the quarter ended June 30, 2022, was Rs. 559.84 million, up by 40.9 per cent compared to the income for the comparative period of FY 2021-22, according to a company media release.

Operating profit before tax on financial services increased by 55.8 per cent to Rs. 74.62 million while after-tax profit saw a growth of 115 per cent at Rs. 33.83 million.

SDF expanded its agricultural lending portfolio and farming related support services, thereby actively facilitating recovery of the country’s essential agriculture sector. Through its strategic agreements with leading agricultural equipment and machinery suppliers, SDF modernises rural farmers with modern agricultural equipment, such as combined harvesters, tractors, automated rice mills and other equipment to enhance agricultural outputs, supported by buy back agreements as a risk mitigation mechanism.

Meanwhile, seasonal repayment plans have been developed for farmers to alleviate repayment pressure on farming communities, enabling them to repay their loans with the increase in income during harvest seasons. In a unique intervention, SDF also supplies its farming customers with liquid organic fertiliser (Effective Micro-organism), which is manufactured by the Sarvodaya Movement based on a patented Japanese formula. As a further support measure, SDF also negotiates forward buying contracts for farm produce, to ensure farmers are able to sell their products immediately at fair prices.