Sinhaputra Finance has reported an increase of 84% in pre tax profit compared to the previous year, despite allowing for a provision of Rs. 329 mn. The effect of this provision was a reduction in capital funds which now stands at Rs 1.1 bn.
During the last 39 years, there have been no less than six economic busts, some stretching for long periods. Sinhaputhra’s responses have been modulated during these ups and downs and safeguarding depositor’s assets have always been the centre of concern during these periods.
Managing Director Ravana Wijeyeratne said, “whilst this cautious growth pattern of the company has been reflected in its mature asset quality and a realistic consideration of the nation’s debt repayment capacity, it has also allowed the company to build its human capital and core competencies in response to these real issues rather than being seduced by risky opportunities during periods of dizzying growth periods that would mask such underlying issues with glossy ratios, but may result in future problems.”
During the last 39 years, there have been no less than six economic busts, some stretching for long periods. Sinhaputhra’s responses have been modulated during these ups and downs and safeguarding depositor’s assets have always been the centre of concern during these periods.
Managing Director Ravana Wijeyeratne said, “whilst this cautious growth pattern of the company has been reflected in its mature asset quality and a realistic consideration of the nation’s debt repayment capacity, it has also allowed the company to build its human capital and core competencies in response to these real issues rather than being seduced by risky opportunities during periods of dizzying growth periods that would mask such underlying issues with glossy ratios, but may result in future problems.”
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