Sinhaputhra Finance PLC

It has a modest deposit base of Rs. 2.1 billion, but it has a strong portfolio of assets. These include income-earning assets worth Rs. 3.1 billion and fixed deposit assets worth Rs. 2.2 billion. These assets help it meet its obligations to bankers and depositors.

Rating downgrade

Fitch Ratings Lanka has downgraded Sinhaputhra Finance PLC from BB-plus to B(lka). The downgrade reflects deteriorating asset quality, lower capital position, and weak profitability. It also factors in a significant increase in regulatory six-month NPLs. Nonetheless, the company’s overall profile remains stable.

Fitch Ratings is a leading global credit rating agency that offers timely and accurate credit opinions. Founded in 1905, the firm has expanded rapidly over the last decade and operates across all fixed-income markets. It has coverage of more than 6,000 financial institutions, including banks, insurance companies, finance & leasing companies, broker-dealers, and covered bonds.

Share price increase

The share price of Sinhaputhra Finance PLC (SFL) has increased by 35% in the last two trading days, on the news that the company is in talks to be taken over by commercial leasing company CLC. The company recently reported a loss of Rs 3 million for the 2Q FY2022, its sixth consecutive quarter of losses.

The company is a finance company that accepts savings and time deposits from the general public. It invests these funds in different instruments. These include real estate, business instant loan Sri Lanka, finance leasing, vehicle imports, and capital market operations. The company is based in Kandy and was incorporated in 1978.

Outlook

Sinhaputhra Finance PLC, the oldest Central Bank Registered Finance Company based outside of Colombo, has announced its results for the last quarter. It reported a profit of Rs. 73 million before tax, despite a cautious lending strategy. It also met its targets for fixed deposit and low key advertising.

Asset base

For over three decades, Sinhaputhra has been serving the banking industry in Sri Lanka. It has a conservative deposit base and a lending portfolio that generates a steady cash flow of between Rs. 160 and 220 million every month. Sinhaputhra has a total asset base of over Rs. 7 billion, and its liabilities are around Rs. 6.3 billion.

The company is now in the process of looking for new investments. As it needs additional capital to support its operations, Sinhaputhra is in negotiations with potential investors through a professional investment bank. It has already received a letter of expression from one company and a letter of intent from a large conglomerate. It is currently waiting for further correspondence from potential investors in order to determine the best course of action. It hopes to resolve its capital requirement before 31 January.

Brand value

While many companies in the sector have experienced struggles, the Sinhaputhra brand has survived with steady growth, thanks to its strong financial position. It has a deposit base of over Rs. 4 billion, and many of its customers are repeat customers. It has a modern four-story building with an auditorium, roof top garden, and ample parking space. Its profitability has far exceeded industry standards, and its profits have outpaced the country’s GDP growth rate.

The company was founded in 1978 and is headquartered in Kandy. It is an approved Credit Agency under the Mortgage Act No. 06 of 1949. You can view financial values in the company chart after purchasing a report from EMIS. This database contains company data along with industry analysis and country data for over 145 emerging markets.

Despite the recession and economic crisis, the Sinhaputhra brand has survived. It has branches in Colombo, Anuradhapura, Bandarawela, Dambulla, Kurunegala, Matale, and Trincomalee. Its reputation for excellent service and fair pricing has helped the company attract foreign investors and attract business.

Portfolio of assets

Sinhaputhra is a Sri Lankan finance company listed on the Colombo Stock Exchange, with a portfolio of assets worth over Rs. 3.8 billion. The company has a board of directors, which is headed by Prof. Amal Karunaratne, and has two Working Directors, Ravana Wijeyeratne and Saliya De Alwis. The board also includes two Non-Executive Directors, Tiranjan Bulankulame and Lal Ekanayake. Both are assisted by Senior Consultants Mohan Weerakoon and Navarre Silva.

Since Sinhaputhra’s inception, it has grown to become a prominent financial player in Sri Lanka. The company has a deposit base of over Rs. 5,430 million, and each year repays interest obligations to depositors to a tune of Rs. 55 million.

Rating

The rating of Sinhaputhra Finance PLC has been downgraded by Fitch Ratings Lanka to BB-minus (lka) from B (lka) with a stable outlook, reflecting the firm’s weaker asset quality and low capital position. It is a result of the company’s declining profitability and weak collections. While the company has recently improved its financial profile, it faces challenges in building liquidity, as reflected in the downgrade.

Sinhaputhra finance PLC is a financial institution in Colombo. This company provides finance to its clients and is located at Car Park, Liberty Plaza, Road, Colombo. Customers have given Sinhaputhra a positive rating, and the financial institution’s services have a high reputation.

The financial firm is approved under the Mortgage Act No. 06 of 1949. It was incorporated in 1978 and is headquartered in Kandy. The financial values of the company can be seen in the chart after purchasing the report. The report combines company data and industry analysis with country data for over 145 emerging markets.