Bimputh Finance bottom line grows by 304% at Q2 end

For the quarter ended September 2016, Bimputh Finance PLC recorded an impressive growth in profit of 304% to reach Rs. 177 million compared to Rs. 43 million recorded in the corresponding period of the previous financial year.  
The firm also reported earnings of Rs. 3.28 per share for the quarter, against Rs. 0.81 reported a year earlier.  9
Having commenced the financial year with Rs. 4.6 billion in total assets, Bimputh’s asset base witnessed a sizeable increase to Rs. 7.7 billion during the six months, with a growth rate of 66%. The company has primarily raised its funding through institutional borrowings and despite the increase in interest expense to Rs. 144 million in comparison to Q2 FY 2014, the 303% growth in interest income to Rs. 534 million for the quarter has more than compensated for the increased exposure to interest bearing borrowings. Customer advances and customer deposits enjoyed a relatively modest growth of 198% closing at Rs. 1.7 billion.
Bimputh’s strong credit risk management policies and procedures have enabled the company to further reduce its non-performing advances (NPAs), with the gross NPA being recorded below 0.9% as at end of Q2 2016.
General Manager Chamindra Gamage stated: “We have enjoyed a very strong first half for this financial year and see the business growing further in the second half of the financial year. Bimputh is today a key player in Sri Lanka’s micro finance sector and we continue to make significant inroads in providing customer-centric products focused at supporting the income generation ventures of our customers. With over 150,000 clients and a seasoned micro finance portfolio focused on asset quality, Bimputh has demonstrated its ability to meet the high standards expected from international micro finance investment fund managers such as Blue Orchard and Incofin.
“We have successfully raised over $ 10 million to date, and are currently in discussions with several other international organisations focused on inclusive finance. In addition, our continuous efforts at capacity building at all levels of the organisation have ensured that our human capital continues to develop alongside the company’s growth and it is undeniably our staff that is our greatest strength.”
Commenting on the bank’s performance to date, Chief Executive Officer Harsha Silva stated: “I am pleased to note that Bimputh’s financial performance has continued to grow in each successive financial quarter. Our branch expansion efforts in the past  months have yielded significant growth and we expect to sustain the present growth levels this year. We have differentiated Bimputh through our high standards of client servicing whilst putting in place strong risk management practices which is a direct reflection of our NPA levels. Our capital adequacy remains very health at over 20% and we maintain sufficient capital to support our ongoing business expansion.” - See more at: http://www.ft.lk/article/498851/Bimputh-Finance-bottom-line-grows-by-304--at-Q2-end#sthash.ZQXmMG2d.dpuf

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