Banks are not impervious – Britto

DFCC Vardhana Bank applies for five branches in NE

DFCC Group Chairman Rajan Britto on Monday said that although many banks in Sri Lanka claim large profits, the banks are not impervious to the economic crisis affecting the economy.
“The number of Non-Performing Loans has increased and since consolidation of banks is not allowed in Sri Lanka, many banks are finding it difficult to grow alone. Sri Lanka is also the only country where you are taxed twice or thrice for the same sources of income so along with high level of taxes there are many difficulties we face,” Britto said.
However, the bank which witnessed a growth rate of 58% last year compared to the industry growth of 8% is intending to take advantage of the peace prevailing in the country and expand their network with branches in the North and East.
“We have applied to the Central Bank for five new branches in the North and East,” Britto said.
The bank which tied up with Sri Lanka Post to establish 300 outlets ensuring more access to the more rural communities of Sri Lanka intends to open 25 more Post Office outlets this year, taking their post office affiliation to 30 branches. DVB started off with assets of Rs. 400 million and 3 branches in 2003 but has now grown to an asset base of Rs. 26 billion and 46 branches across the island.