21. DFCC Bank
Maintaining its position as a stable and secure bank in Sri Lanka, DFCC Bank ranks at number 21 in the Business Today TOP 30. The financial year saw the amalgamation of DFCC Bank and DFCC Vardhana Bank. This was a momentous occasion as it coincided with the 60-year celebration of the bank. The amalgamation signified the bringing together of the expertise in development and commercial banking under one umbrella.
The Group recorded a net profit after tax of 1,642 million rupees and 1,068 million rupees at Bank level. Group assets rose by 17 per cent to record 247,109 million rupees, which includes a 18 per cent growth in credit portfolio to 171,111 million rupees. The Group paid a super gain tax of 811 million rupees during the financial year for the profit accrued during the previous year.
With the amalgamation between the two banks, the Group will be able to maximise on the synergies achieved while also focusing on innovation, customer service and delivery. Innovations that have been introduced thus far include Lanka Money Transfer, Supplier Settlement Service and Mobile Wallet.
While the entire banking sector was impacted by the unfavourable interest rate and depreciation of the rupee, DFCC Bank during this period focused on laying the groundwork for the future taking into account the main segments of the revamped bank. Previously DFCC Bank was unable to operate current account and retail savings account, which severely impacted the cost of funds. However, with the amalgamation this is set to be overcome and is expected to raise net interest margins.
Now that DFCC Bank is a full-fledged commercial and development bank it is able to cater to a spectrum of clients that include individuals, entrepreneurs, SMEs and corporates. With 137 branches across the island in all districts there will be greater expectations from DFCC Bank to be a partner of progress.