The innovative state banking giant People’s Bank recently released its annual report for the financial year 2006 to the public, with Mr. Asoka de Silva, Chief Executive Officer/General Manager, People’s Bank handing over the annual report to Dr. P. B. Jayasundera, Secretary to the Treasury and Secretary to the Ministry of Finance and Planning.

Continuing its impressive performance trends for the fifth consecutive year, People’s Bank has yet again proven itself to be one of the leading banking and financial institutions in Sri Lanka, truly serving the needs of the people, as amply testified by the 2006 results. Several key factors highlighted in the report are the Bank’s highest recorded profit after tax figure which is at Rs.3.2bn; capital funds in excess of Rs.10bn; a 20% growth in deposits over 2005 amounting to Rs.270bn; a 45% increase in net loans and advances compared to 2005 amounting to Rs.207bn; a 65% growth in lending to the SME and Micro sectors and a 43% growth in student savings. Furthermore, the NPL ratio was reduced to 7% in 2006, from 11% in 2005, and the NPL portfolio was cut down from Rs.17.4bn to Rs.15.9bn. The overall slippage in the non-performing category from the new advances since 2002 is below 3%, which places the bank within the best industry norms. In terms of the bank’s IT platform, 288 branches are now linked for online cash transactions. The bank currently has 140 ATM machines out of which 131 ATMs are Visa-enabled.

Commenting on these developments, Mr. Asoka de Silva, Chief Executive Officer/General Manager, People’s Bank said, “The restructuring strategies of the Bank have been change agents, creating catalytic changes in the culture and attitude towards team work, improved customer services and credit recovery.” He added that winning the ‘Banking and Financial Services Brand of the Year’ at the ‘Power of People’ (POP) Awards “signified the Bank’s resurgence as a leader in the financial services sector.”

Of the future, Mr. Asoka de Silva maintained that “The Bank will concentrate on the fulfillment of a number of pressing objectives. Continuing to lay emphasis on SME and Micro enterprises, the Bank will forge ahead in its support of the economic development of the nation. Looking forward into the year 2007, the focus will be to enhance non-interest income by effectively leveraging the capabilities of the Core Banking System and to fully exploit the IT platform to introduce new delivery channels and products.”

Congratulating the People’s Bank management for the strong turnaround of the bank’s finances achieved over the last few years, eminent economist Professor W. D. Lakshman from the Department of Economics, University of Colombo expressed his views regarding the Bank’s performance in 2006. “There has been significant growth in total assets, total deposits and profits before tax. People’s Bank has successfully emerged from the difficulties of the late 1990s and the early 2000s, and stands today as a financially-strong organization. The stronger it becomes financially, the more effectively can it play its normal role of providing financial services to its customers. More importantly, it has now acquired viability and strength in the market, so that it will be able to play its national development role more competently. The extensive network of branches and service centers would then become valuable, as the financially strong bank can begin to use it to uplift its customers not only among the rich but also among the poor, and those not only in metropolitan areas but also in the rural hinterland.”

Further commenting on the Bank’s contribution to Sri Lanka’s development plans, Professor Lakshman said, “Economic and social development at an accelerated rate and in a well-balanced manner, regionally as well social structurally, is what is most needed for the Sri Lankan society to move out of the multi-faceted problems it is faced with today. As a major public sector financial organization, People’s Bank can indeed play a significant role in facilitating this development.”

The forward-thinking approach of People’s Bank, which completes 45 years of service to the people of Sri Lanka, has made it possible for the pioneering state giant to go from strength to strength as it continues to serve their financial needs. The Bank often acts as a source of inspiration that help many to shine the light of success on their lives, and its firm pledge is to address the evolving changes and needs of the community in the years to come.