June 08, 2011 (LBO) – DFCC, a development finance institution (DFI) that also owns a commercial banking subsidiary said its credit approvals soared 117 percent in 2010 to 33 billion rupees amid lower interest rates though there was a lag in the drawdown of larger project loans. “¦[D]isbursements especially relating to larger projects tended to tended to lag and began to pick up only in the last quarter,” chief executive Nihal Fonseka told shareholders.
“This lag is normal due to the time taken for various preliminary steps that have to be completed before loans are drawn down.
“However, in the small and medium enterprises (SME) sector that is catered to by our branch network, approvals and disbursements recorded increases 113 percent and 98 percent respectively.”
DFCC said 18.07 billion in credit and investment facilities were approved for corporate clients as interest rates fell and investments picked up after the end of a 30-year war.
The banks total project loan portfolio was only 18.05 billion by the end of 2010. DFCC said it was financing renewable energy including the first wind energy project, manufacturing, construction, telecoms, trade and financial services sectors.
DFCC had also approved 35 billion in facilities to SMEs. Finance leases had