Sarvodaya Development Finance reports best ever profit for FY21/22
Sarvodaya Development Finance PLC (SDF) made history in 2021 by becoming Sri Lanka’s first impact investment company to list on the Colombo Stock Exchange(cse) and reported its best profits to date, for the financial year 2021-22.
SDF made its debut onto the Main Board of the CSE on November 23, 2021, by raising Rs.1 billion in equity from its initial public offering (IPO). The IPO was over-subscribed by noon, indicating the high level of investor interest and trust in the Sarvodaya Movement’s financial services arm, despite the prevailing global economic uncertainty.
The Rs.1 billion in new equity has enhanced SDF’S capital base to Rs.3.1 billion, which is comfortably above the statutory minimum of Rs.2.5 billion. The core capital ratio has improved to 27.37 percent against the minimum statutory requirement of 7 percent and the total risk weighted capital ratio is 28.62 percent against the minimum statutory ratio of 11 percent.
The new capital also made it possible for SDF to rapidly expand business activities in the last quarter of the year. Business growth was supported by the Central Bank approval to upgrade 21 SDF customer service centres into full-service branches, expanding the branch network to 51.
Fuelled by growth in the lending portfolio, SDF recorded a profit after tax of Rs.215.5 million, which is a 17.5 percent growth, compared to the profit after tax of Rs.183.3 million reported in the previous year. Total lending grew by 25.03 percent while the agriculture sector remained the largest recipient of SDF credit, absorbing 48 percent of total disbursements during the year, which was Rs.3.91 billion. This is an increase of 87 percent from the previous year.
“While SDF’S lending has surged following the IPO, it is noteworthy that over 90 percent of the company’s total lending is asset-backed lending.
SDF concluded the financial year 202122 by demonstrating its true potential to support the country’s economic recovery in this challenging juncture. SDF is committed to do everything within its power to create wealth for the nation and looks forward to supporting the country’s entrepreneurs in the new financial year,” said Chairman Channa de Silva.