Transcript Microfinance & Self employment Loan Activities of BOC

Agricultural & Rural Finance
of
Bank of Ceylon
D M Gunasekara
CEO / General Manager
Bank of Ceylon
Contents of Presentation….
•
•
•
•
•
•
•
•
Country Profile – Sri Lanka
Economy of Sri Lanka
About Bank of Ceylon
Business highlights
Microfinance activities
Challenges & solutions
Success stories
Q&A
Country Profile
Sri Lanka
Democratic Socialist Republic
of
Sri Lanka
A pearl in the Indian Ocean….
Sri Lanka
National Flag
Introduction
• Location
Situated in the Indian Ocean
Just off the Southern Coast of
India
• Population
20,277,597
• Business Capital
Colombo
• Legislative Capital
Sri Jayawardenapura Kotte
• Country Area
25,332 square miles (65,610 sq km)
• Coastline
833 miles (1,340 km)
• Highest Point
Mount Pidurutalagala (2,524 m)
History of Sri Lanka
1972
Ceylon  Sri Lanka
1948
4th February 1948 Sri Lanka achieved independence
1796
British took over Sri Lanka
1658
Dutch took over Sri Lanka.
1505
Portuguese traders landed.
Ruined by Kings ….
Geography and Climate of Sri Lanka
• Mainly consists of flat lands.
• Central part of the country features with mountains and
step sided river canyons.
• Tropical climate.
• Most of the rain in the Southwest falls from April to June
and for the Northeast October to November.
• Sri Lanka's average yearly temperature is around 86°F to
91°F (28°C to 31°C).
Economy of Sri Lanka
The major industries in Sri Lanka
• Processing of Rubber, Tea, Coconut, Tobacco and
Other Agricultural commodities.
• Apparel
• Tourism
• Cement
Sri Lanka's main exports
• Apparel
• Tea
• Spices
• Gems & Jewellery
• Coconut products
• Rubber Products
• Fisheries products
Economy of Sri Lanka
• GDP (at Mkt Price)
US $ 59 Bn
• Economic Growth
8.3 %
• Annual average inflation
6%
• Per Capita GDP
US $ 2,836
• Unemployment rate
4.2%
• Sectoral Composition of GDP
» Agriculture
» Industry
» Services
11.2 %
29.3 %
59.5 %
Some Indices…
• Life Expectancy
• Literacy Rate
74.9 Years
91.9 %
National Beauty & Heritage
Kingdoms of
Anuradhapura & Polonnaruwa
Ruwanweli Maha Seya
Polonnaruwa Gal Viharaya
(Stone Temple)
SRI DALADA MALIGAWA - KANDY
SIGIRIYA (LION'S ROCK)
SHRINE MADU
NALLUR KOVIL
KATARAGAMA DEVALAYA
WATERFALLS IN SRI LANKA
Baker's Fall
Dunhinda
TEA PLANTATIONS
COCONUT PLANTATIONS
RUBBER PLANTATIONS
NATIONAL SANCTUARIES IN SRI LANKA
SRILANKAN FOOD
SRILANKAN CULTURAL EVENTS
SRILANKAN TROPICAL FRUITS
Bank of Ceylon
Bankers to the Nation….
Bank of Ceylon
• Established in August 1939.
• The premier state bank in the country
• The first corporate entity in Sri Lanka to achieve a
Rs. one trillion balance sheet.
• “One Ten Twelve”
Corporate Philosophy of Bank of Ceylon
• Vision
Bankers to the nation.
• Mission
Customers
Foster most rewarding relationship with trust and reliability for
our customers, exceeding their expectations
Staff
We offer our staff, recognition and rewards to be the best team of
achievers in service excellence
Owners
As per expectations of our owners, be a catalyst in national
development, with profitability
Society
Extending banking service to larger society as a beneficial beacon in
the country.
Business Highlights
• Largest Commercial Bank in Sri Lanka
• Expanded the Bank’s operations to 1, 029 service points via Islandwide network
• 840 foreign correspondents
• ‘AA+(lka) - National Long-Term Rating stable outlook by Fitch
Ratings Lanka Ltd
• Over 10 Mn Customer Account Base
Island wide Service points
Service Points
1,029
Our strategies towards Microfinance
• The basic criterion to the microfinance
– Socio economic background
– Income level
• Solidarity group mobilization and poverty
alleviation
• Micro Credit Programmes
• Encourage self employment
• Reaching out at grass root level (Bare-foot
Banking)
BOC – “A friend in need”
Wealthy
Commercial
Loans
Prime Customers
Middle income
Corporate Customers
Vulnerable non- poor
Retail Customers
Micro
Credit /
Finance
Bankable Customers
Un Bankable Customers
Economically poor
Poorest of the poor
Catering the target
segment…
New Comprehensive Rural Credit Scheme (NCRCS)
Credit facilities entertained for the following crops
Pulses:
Cowpea, green gram,
blackgram, soya, maize,
kurakkan
Root & tuber:
Potato, sweet potato, kiri ala,
manioc
Oil seeds:
Ground seeds, gingelly, sun
flower
Vegetables:
beans, beet root, bitter
guard, brinjal, cabbage,
capsicum, carrot, knoh
khol, ladies’ fingers, leeks,
luffa, pumpkin, radish,
snake guard, tomato etc.
New Comprehensive Rural Credit Scheme
(NCRCS)
Season
No. of
Loans
Amount granted Rs.
(Mn)
2011 Yala
11,066
991.09
2011/12 Maha
27,557
2,632.73
2012 Yala
8,960
953.83
Other supportive schemes
• “Govi Shakthi” – Infrastructure support to farmers
• Self Employment Promotion Initiative
Programme (SEPI)
• Poverty Alleviation Micro Finance Programme
• Agro Livestock Development Loan scheme
• Fisheries Sector Loan scheme
• “Shookshma” – Encourage Self Employment & SMIs
Plantation sector Development Credit Schemes
Plantation sector Development Credit Schemes
Scheme
No. of loans
Amount granted (Rs. Mn)
Kapruka Loan Scheme
923
168.84
Tea Development Project
Loan scheme
161
131.29
Smallholder Plantation
Entrepreneurship
Development Pgm.
217
29.31
Second Perennial Crops
30
20.0
Govi Shakthi
7,512
1,782.01
Total
8,843
2,131.45
Self Employment Development Credit Schemes
Scheme
No. of Loans
Amount Granted (Rs.
Mn)
SEPI
52
10.01
Estate Sector Self
Employment Credit
Scheme
192
9.5
SED
46,953
2,976.5
Self Employment
Scheme to purchase
Three wheelers
2,835
176.6
Horticulture Loan
Scheme
15,945
2,821.05
Awakening North
980
160.0
Nagenahira Navodaya
276
40.86
67,233
6,194.52
Total
Challenges
Solutions
Obligations to fulfill the stakeholder’s
requirements.
Focusing credit schemes towards
contribution to the development of the
country.
Increasing competition of private players.
•Flexible options to the customers
•Doorstep banking
•Mushroom finance companies
•Loyalty building programmes.
•Introduced “Barefoot Banking” concept.
•Affordable repayment packages
Lack of financial literacy of rural
community
Conducting island wide Financial Literacy
Programmes
Post harvest issues on agricultural
commodities
•Prices not assured
•No proper storage facilities
•Encourage Forward Sales Contracts.
•Focusing the food security concepts
•Financing to construct “Sylos”
Challenges
Solutions
Customer skills not properly identified
•Conduct skill development programmes
with the assistance of VTIs.
• Conduct Entrepreneur Development
Programmes
Scattered rural area customers
Conduct village level “Group Lending”
programmes and formed unity customer
base.
Omission of Societies below the poverty
line.
Developed the Poverty Alleviation Micro
Finance Project (PAMP)
Success Stories….
• Lakbima Rice Mills
• Ms. Renuka Damayanthi
• Mr. Kumaratheepan (Photo Studio)
• Lending to ex-combatants
– Saloon
The way forward….
Educating customer segments
•
•
•
•
•
Financial Literacy programmes
Awareness programmes on Poverty Alleviation
Solidarity Group mobilization Programmes
Entrepreneur Development Programmes
Awareness Programme on banking literacy to
the Ex-LTTE combatants
The way forward….
Entertain new clients
–Focusing less developed rural pockets
–Strengthening the rural service points
–Further strengthening SHGs
Being the “Bankers to the Nation”….
BOC looks forward
towards the
Development of the
country…….