Sarvodaya Development Finance PLC (SDF) made history in 2021, by becoming Sri Lanka’s first impact investment company to list on the Colombo Stock Exchange (CSE) and reported its best profits to date, for the financial year 2021-22.
Fuelled by growth in the lending portfolio, SDF recorded a profit after tax of Rs 215.5 million, which is a 17.5% growth compared to the profit after tax of Rs 183.3 million reported in the previous year. Total lending grew by 25.03% while agriculture sector remained the largest recipient of SDF credit, absorbing 48% of total disbursements during the year, which was Rs 3.91 billion. This is an increase of 87% from the previous year.
SDF made its debut onto the Main Board of the CSE on November 23, by raising Rs 1 billion in equity from its Initial Public Offering (IPO). The IPO was over-subscribed by noon, indicating the high level of investor interest and trust in the Sarvodaya Movement’s financial services arm, despite the prevailing
The Rs 1 billion in new equity has enhanced SDF’s capital base to Rs 3.1 billion, which is comfortably above the statutory minimum of Rs 2.5 billion. The core capital ratio has improved to 27.37% against the minimum statutory requirement of 7%, and the total risk weighted capital ratio is 28.62% against the minimum statutory ratio of 11%.
“While SDF’s lending has surged following the IPO, it is noteworthy that over 90% of the Company’s total lending is asset-backed lending, “Executive Officer Nilantha Jayanetti Chief said.