Sept 07, 2008 (LBO) – Sri Lanka’s Union Bank has reported strong loan growth in the six months ending June 30, bucking the industry trend, although net profit fell marginally, according to published results and a bank statement.
Performing loans and advances grew 27 percent to 7.5 billion rupees for the six months ending June 30 from that at December 31, 2007.
The bank was helped by a capital infusion that also expanded its single borrower limits, an official said.
Total deposits for the six months ending June 30 grew 12 percent to 9.99 billion rupees over the same period.
The bank’s chief executive Mahendra Fernando said its two main categories of business development had grown, despite “a perceptible slowing of the financial services industry due to the prevalent policies which have been prompted by high inflation and borrowing costs.”
In the period ended June 30, 2008 compared with a year ago, Union Bank’s deposits grew by 30 percent while loans increased by 42 percent.
“For this comparative period, the sector had grown only by about 12.5 percent in both categories of business deve