DFCC Bank was recently assigned an issuer rating of “[SL] AA- with Stable Outlook” by ICRA Lanka Limited. ICRA Lanka Limited (ICRA Lanka) is a Credit Rating Agency licensed by the Securities and Exchange Commission of Sri Lanka (SEC), and is a fully owned subsidiary of ICRA Limited, India. The ultimate parent company of the international credit rating agency, Moody’s Investors Service, is the indirect majority shareholder of ICRA.
ICRA Lanka’s rating factors in DFCC Bank’s established track record as the pioneer development bank in Sri Lanka (the bank consequently became a fully-fledged commercial bank in 2015), healthy asset quality indicators, and the adequate capitalization profile. The bank has a strong corporate banking focus, with about 44% of the total portfolio comprising corporate lending as at June 2020. The rating also takes cognizance of the healthy asset quality indicators of the bank, with gross NPA (GNPA) of 4.8% as at June 2020, which was lower than the systemic average of 5.3%.The rating factors in the adequate capitalization profile of DFCC, with the Tier 1 capital adequacy ratio at 11.1% as at June 2020, above the regulatory requirement of 8.5%. The report also highlights that DFCC bank comfortably meets the minimum core capital requirement set by the Central Bank of Sri Lanka with a reported net worth of about LKR 48 Bn as at June 2020, against the regulatory minimum of LKR 20 Bn by December 2020.
Speaking of credit strengths, the report further highlights that the bank has an established track record of long term financing, as the first development bank in Sri Lanka, having been established in 1955, and as one of the pioneering development banks in the Asian region. The bank has a strong corporate banking focus, with about 44% of the total portfolio comprising corporate lending, followed by the SME and retail segments, contributing to 33% and 18% of the overall portfolio as at June 2020. Some of the most established corporate groups in the country are DFCC’s top clients, as the bank has provided long-term funding for these groups since the inception. As at June 2020, DFCC Bank has a total market share of about 4% in terms of the asset size, with a total asset base of about LKR 435 Bn. Currently, the bank has 140 branches, island-wide.
Speaking on the rating, CEO of DFCC Bank, Lakshman Silva, states the following, “In these turbulent times, we at DFCC are glad that our hard work and commitment to our trade was reflected in the ICRA rating of AA- with Stable Outlook. DFCC Bank will undoubtedly continue to progress towards greater heights prioritizing our valuable customers, employees, shareholders and stakeholders who are the center of our business activities.”
SLT-MOBITEL AkazaLMS enables corporate employee capability development
As SLT-MOBITEL, the National ICT solutions service provider, continues to play a pivotal role in driving Sri Lanka’s digital transformation through its Cloud-managed offering, SLT-Mobitel AkazaLMS takes centre-stage as the nation’s leading Learning Management System (LMS). SLT-Mobitel AkazaLMS offers a unique, locally developed, comprehensive enterprise learning solution designed to cater to diverse training needs without compromising on quality.
Commenting on the initiative Chief Enterprise & Wholesale Officer of SLT, Lakmal Jayasinghe said “Especially in today’s competitive environment where human capital is more important than ever, companies need to create a learning strategy that aligns to robust curricula, employing relevant and available learning methods and technology. Addressing this need, SLT-Mobitel AkazaLMS Cloud is an enterprise e-learning solution hosted in Sri Lanka on the top of a private cloud, providing corporate and institutional customers the ability to deliver their own learning material to their users with zero cost infrastructure. With greater convenience and without additional IT resources, customers have access to their own training needs via a simple web browser”.
Empowering corporates and educational institutes, SLT-Mobitel AkazaLMS is a comprehensive locally developed platform, containing a self-portal where the user develops their own e-learning and purchase it as a SaaS product. Especially during these challenging times, when classroom lectures are not possible and distance learning methods vital, the SLT-Mobitel AkazaLMS facilitates exams, assignments, quizzes, etc. tailor-made and customised for corporates and educational institutes targeting their own specific needs.
LIOC shows stability in earnings and margins compared to volatility during previous years
First Capital expects stability in LIOC earnings and margins ahead, compared to the significant volatility witnessed during the previous years.
“With the new pricing formula, we expect a stable outlook for LIOC which is currently trading at a TTM PER of 7.5x on FY22 earnings while also trading at a PBV of 1.5x”, they said.
“The government’s implementation of the new fuel pricing formula on 24th May 22 includes all costs incurred in importing, unloading, distributing to the stations and taxes. With that, fuel prices will be revised on a monthly basis, and if necessary, it will be reviewed every two weeks. Accordingly, the next price revision was scheduled for 24th Jun 22. Considering the price revision, In addition to that, Sri Lanka’s Cabinet has approved a bill to impose a 2.5% tax on companies with an annual turnover of LKR 120.0Mn, which will only have a marginal effect on company margins.”
“With regards to investment in joint venture, LIOC has invested in Trinco Petroleum Terminal (Pvt) Ltd (TPT) in Jan-22 and acquired 49% of the stake with CPC which holds 51% of the ownership of TPT in order to develop 61 tanks at the Trincomalee Oil Tank Farm and allied facilities in the Upper Tank Farm of the China Bay Oil Tank Farm. Also, LIOC has entered into a Lease of State Land with the Government of Sri Lanka for a term of fifty years to develop the Lower Tank Farm of the China Bay Oil Tank Farm,” First Capital said.
Lanka Hospitals Academy partners with NSBM Green University
to offer clinical training for nursing undergraduates
Lanka Hospitals Academy has partnered with NSBM Green University to launch a professional clinical training programme for nursing undergraduates of NSBM. The initiative will offer prospective undergraduates of NSBM’s nursing degree programme an opportunity to obtain hands-on training in a fully equipped real-world clinical setting through Lanka Hospitals Academy, under highly experienced and qualified medical professionals. The mutually beneficial partnership is aimed to facilitate and enhance skill development in the practice of nursing, which is vital for the career development of nurses in the nursing workforce and the healthcare industry at large. The partnership with NSBM is the latest initiative by Lanka Hospitals Academy, which aims to optimize synergies with its industry stakeholders.
Can we return to English medium?
LIOC seeks to expand operations
Economic crisis: Govt. MPs slam Cabinet, Finance Ministry
‘Dates have the highest sugar content to fight Coronavirus’
U.S. Congress to probe assets fleecing by US citizens of Sri Lankan origin
Sunday Island 27 December – Headlines
Sports3 days ago
Sri Lankan fans to turn up in yellow to thank Aussies
News6 days ago
CPC monopoly to end with govt. inviting multinational companies
News4 days ago
Illegal payments to staff amounted to Rs 3,679 mn
News3 days ago
Presidential pardon for Royal Park murderer: Ven. Rathana denies Sirisena’s accusations, lodges complaint with CID
Sports3 days ago
Frustrated pole vault national record holder Sachini leaves Sri Lanka
News1 day ago
CEBEU guns for ex-Chairman Ferdinando
Editorial6 days ago
Way to go, Prez, but …
News11 hours ago
Economic crisis: Govt. MPs slam Cabinet, Finance Ministry