"In 2008, Sampath recruited several experienced personnel to fortify its internal systems and market position," RAM said.
"The risk-management strategies implemented since then have already begun bearing fruit."
The bank had slowed the increase of its non-performing loans (NPLs) to 5.91 percent to 7.47 billion rupees in the year ending December 2009 from 13.78 percent growth in 2008.
It's gross NPLs had contracted to 6.8 percent of loans by end June 2010 from 7.63 percent in end December 2009.
Prudent Provisioning
"The Bank’s healthier loan portfolio also reflects its expanded pawning portfolio, which entails lower default risk and is well collateralised," RAM said.
"Moreover, the management’s conservative approach is reflected in the Bank’s prudent provisioning, i.e. by providing fully for NPLs and disregarding the value of collateral.
"As a result, the Bank’s coverage levels are well above its peers".
In line with its improving asset