State-owned giant Bank of Ceylon (BOC) has surpassed 2020’s full year profit of Rs. 27 billion in the first six months of 2021, Chairman Kanchana Ratwatte revealed yesterday.
The disclosure was made during his speech at the BOC’s 82nd anniversary, held at Temple Trees, with Prime Minister and former Finance Minister Mahinda Rajapaksa as the Chief Guest.
He said that the achievement was made possible by the sharp increase in BOC’s loan book. Last year, lending by BOC rose by 28%.
“Our customers are happy with the assistance we extend,” the BOC Chief said.
He also revealed that for the first six months, BOC had achieved $ 1.9 billion in inward remittances, the highest-ever figure in a six-month period in the bank’s history. He said that last year inward remittances for the bank grew by 10%, but that in 2021 growth was likely to double.
Ratwatte also said that the BOC continued to honour all urgent requests for foreign exchange, be it for procurement of COVID vaccines, oil or essential medicines etc.
“Our reserves and financial position are very strong,” Ratwatte emphasised.
“These impressive achievements will certainly reinforce confidence the public, customers and business community have in Bank of Ceylon and reiterates the bank's resilience as demonstrated for 82 years.
“We will be resilient for the next 28 years when BOC will turn 100 years old and remain a young and vibrant bank to help customers and the economy,” said the Chairman, adding the average age of the bank’s staff was 32 years.
Earlier in his speech, Ratwatte recalled that the Prime Minister's original office was located at Sir Ernest de Silva's bungalow, whilst the BOC’s first Chairman was also Sir Ernest de Silva.
Ratwatte said that when Mahinda Rajapaksa was the President and Finance Minister, he ensured 6% growth along with single digit interest rates and handed over a peaceful country ending the 30-year-old war.
“When the new Government under the leadership of President Gotabaya Rajapaksa took office in November 2019, interest and VAT rates were double digit. However, the Government, even before the COVID pandemic, had reduced the VAT to 8% from 15%, as well as bringing back interest rates back to low single digit levels.”
The BOC Chairman also said that post-COVID, the Central Bank extended help for individuals and enterprises with 4% concessionary rate working loans via the Saubaghya scheme.
“BOC disbursed Rs. 40 billion, the highest within the banking industry,” Ratwatte added.
(FT)