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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
• 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)
Introduction
History of Sri Lanka
1505
Ruined by Kings ….
1658 Dutch took over Sri Lanka.
1796 British took over Sri Lanka
1948 4th February 1948 Sri Lanka achieved independence
1972 Ceylon Sri Lanka
Portuguese traders landed.
• 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).
Geography and Climate 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 11.2 %» Industry 29.3 %» Services 59.5 %
Economy of Sri Lanka
• Life Expectancy 74.9 Years
• Literacy Rate 91.9 %
Some Indices…
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
RUBBER PLANTATIONS
COCONUT PLANTATIONS
NATIONAL SANCTUARIES IN SRI LANKA
SRILANKAN FOOD
SRILANKAN CULTURAL EVENTS
SRILANKAN TROPICAL FRUITS
Bank of Ceylon
Bankers to the Nation….
• 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”
Bank of Ceylon
• Vision
Bankers to the nation. • Mission
CustomersFoster most rewarding relationship with trust and reliability for
our customers, exceeding their expectations
StaffWe offer our staff, recognition and rewards to be the best team of
achievers in service excellence
OwnersAs per expectations of our owners, be a catalyst in national
development, with profitability
SocietyExtending banking service to larger society as a beneficial beacon in
the country.
Corporate Philosophy of Bank of Ceylon
Business Highlights• Largest Commercial Bank in Sri Lanka
• Expanded the Bank’s operations to 1, 029 service points via Island-wide 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”
Prime Customers
Corporate Customers
Retail Customers
Bankable Customers
Un Bankable Customers
Commercial Loans
Micro Credit / Finance
Vulnerable non- poor
Middle income
Wealthy
Economically poor
Poorest of the poor
Catering the target segment…
PAMP
NCRCS
Fisheries
Loan
Schemes
Self Employment
Development
Credit Schemes Plantation
Sector Credit Schemes
New Comprehensive Rural Credit Scheme (NCRCS)Credit facilities entertained for the following crops
Pulses: Cowpea, green gram, blackgram, soya, maize,kurakkan
Oil seeds: Ground seeds, gingelly, sun flower
Root & tuber: Potato, sweet potato, kiri ala, manioc
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)
SeasonNo. 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 SchemesScheme 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
Total 67,233 6,194.52
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
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
The way forward….
Being the “Bankers to the Nation”….
BOC looks forward towards the Development of the country…….