Mr. Arjun Fernando, CEO DFCC Bank receiving the award from Hon. Minister Ravi Karunanayake. Also in the picture are Hon. Minister Sagala Ratnayaka and Hon. Minister Nimal Siripala De Silva
Business Today TOP 30 recently recognised the top corporate performers in Sri Lanka for the financial year 2015-2016. The award ceremony was held at Hilton Colombo under the patronage of the Prime Minister. Also present were other distinguished guests of the business world, diplomats, politicians and policy makers of Sri Lanka.
Business Today has annually recognised and awarded top corporate performers in the country since 1998 for their invaluable contribution towards strengthening the country’s economy.
DFCC Bank was once again ranked in the TOP 30 at number 21, reiterating the Bank’s remarkable standing in the corporate sector of Sri Lanka. Mr. Arjun Fernando received the award from the Hon. Finance Minister at the event.
The Business Today TOP 30 was based on the published information of companies listed in the Colombo Stock Exchange for the financial year ending December 31st 2015 and March 31st 2016, and was selected with assistance from KPMG Sri Lanka.
DFCC Bank’s innovative mobile application, the Vardhana Virtual Wallet, has been upgraded to extend its use to non DFCC Bank customers as well. Thus, any individual with a registered local mobile number, who is a resident of Sri Lanka and aged 18 or above can now avail themselves of the free service by completing a one-time registration at any DFCC branch or service point.
The user can then top up funds at select merchant outlets, or receive funds from existing application users. The application can then be used to purchase goods and services, pay utility bills and execute monetary transfers: anytime and anywhere.
The application can further enable users to manage and organise their finances efficiently, as their bank accounts are linked to the application. This assures a new level of financial freedom and flexibility.
DFCC Vardhana Virtual Wallet, the first of its kind in the country’s banking industry, further encourages individual users and merchants to move away from the traditional use of physical cash, for advanced ease and convenience.
DFCC Bank PLC issued debentures to raise LKR 4 billion, with an option to go up to LKR 7 billion, in the event of an over-subscription. The purpose of this issue is to strengthen the Tier II capital of the Bank while supporting its lending operations in the Corporate, Business and SME sectors. In addition, it will mitigate the Bank’s interest rate risk by reducing mismatches in the maturity of assets and liabilities.
The debentures are rated A+ (lka) by Fitch Ratings Lanka Ltd and is attractively structured with tenures of five and seven years, carrying fixed annual coupons of 12.15% and 12.75% respectively.The subordinated, redeemable and unsecured debentures will be listed in the Colombo Stock Exchange where the minimum subscription is LKR 10,000.
The issue was opened for subscription on the 02nd of November 2016.
The issue is structured by DFCC Bank’s Treasury and Resource Mobilisation Unit and managed by Capital Alliance Partners Limited and Acuity Partners (Pvt) Ltd.
The DFCC REDS CSR project for 2016 was held at Abakolaweva Primary School in Tangalle.
The main school building was renovated under this project. The entire roof of the building was replaced and the whole structure was painted.
The project was successfully completed and the building was handed over on 09th October 2016 with the participation of the school principal, the zonal educational director, the DFCC Reds committee and Mrs. Namali Sirithunga, the DFCC Hambantota branch manager.
REDS wishes to thank everyone for the tremendous support they executed in purchasing raffle draw tickets and making monetary donations. Their contribution assured the immense success of this project and helped secure the future of numerous deserving schoolchildren.
An art competition was held to celebrate Children’s Day on the 8th of October. The competition was spread across the regional offices located in Wellawatte, Nawala, Kandy, Jaffna, Kaduruwela, Matara and Negombo, and was based on the theme of Growth.
There was significant participation across all regions. Children ranging from ages 6 to 12 took part in the events. Overall, over 150 children took part, and this was a great opportunity for the Bank to engage with local communities.
The top three winners were judged by the senior management in each region. In some instances, prominent people from the community were involved in the judging process as well.
The top prize winners were gifted a Vardhana Junior Account with deposits of Rs 10,000, 5,000 and 2,500 respectively. Participants also received gift packs and certificates of participation.
DFCC Bank signed a memorandum of understanding (MoU) with Sathosa Motors at the DFCC head office. This will facilitate the leasing of ISUZU branded vehicles for DFCC’s customers, allowing customers the opportunity to purchase a vehicle of good quality at a lower cost. Sathosa Motors is the sole authorised agent in Sri Lanka for ISUZU commercial vehicles. ISUZU is regarded as the foremost Japanese brand for commercial vehicles in the world.
Mr. Arjun Fernando, the CEO of DFCC Bank commented: ‘We are pleased to sign an MoU with Sathosa Motors as this arrangement enables us to offer multiple benefits to our customers, as well as helping us in expanding our leasing portfolio. DFCC Bank is committed to meeting the aspirations of our customers by entering into such fulfilling relationships’.
Mr. Tilak Gunasekara, the Managing Director/ CEO of Sathosa Motors, added: ‘We are delighted to enter into a partnership with DFCC Bank, and hence offer attractive discounts and benefits for our mutual customers’.
On the strength of its credentials and sound track record over a period of six decades, DFCC has been fruitful in raising funds for its developments in the Middle East.
An US Dollar loan facility over the term of three years was thus secured by DFCC Bank from the National Bank of Ras Al Khaimah (RAKBANK), of the United Arab Emirates (UAE). Alpen Capital (ME) Limited, an investment banking advisory firm, also based in the UAE, acted as the sole financial advisor to the transaction.
Through the growth of all sectors, DFCC is now a technologically-enhanced modern commercial bank that supports a broad and diversified clientèle. This added capital will further ensure the long term expansion plans of the Bank of its offshore banking unit (FCBU).
This long-term funding opportunity is also a welcoming sign for the local banking industry of Sri Lanka, as it reinforces faith in industry prospects and the general trajectory of the national economy.
DFCC Bank tied up with the Export Development Board (EDB) as the Exclusive Banking Partner for the World Export Development Forum (WEDF) which was held in Colombo on the 12th and 13th of October.
WEDF is an unique global conference and Business-to-Business (B2B) matchmaking platform dedicated to supporting trade-led development.
This forum brought together over 600 business leaders, policy-makers, heads of trade, investment support institutions and international trade development officials to address international competitiveness for developing countries.
It took place at the BMICH and was held under the theme: Connect, Compete and Change.
DFCC Bank held its inaugural Customer Service Week celebration in October 2016. The Bank utilised this opportunity to further foster its core value of always being customer-centric across the Bank.
The theme of the event was Service Champions, as DFCC realises that delivering cutting-edge services is only possible with a team of dedicated professionals working together as one.
DFCC has always, over the decades, built strong relationships with its ever-growing customer base and remains wholly committed to providing them with innovative and responsible financial solutions to drive sustainable growth.
The celebrations ended with a customer service forum featuring guest speeches from Mrs. Sandra de Soysa, the Group Chief Customer Service Officer of Dialog Axiata and Mr. Manesh Fernando, the General Manager of Hilton Colombo: two chief specialists in the field of customer service.
DFCC Bank was proud to be the Official Banking Partner for Shape South Asia 2016.
Under the theme of Shaping Identities, the event was hosted by the Global Shapers Colombo Hub who will utilise Colombo and Sri Lanka as a backdrop to explore the role that successful millennials would play in shaping their communities to drive positive changes.
The Global Shapers Community is a worldwide network of hubs developed and led by promising young leaders and entrepreneurs. Participants from across South Asia attended the landmark event.
These efforts are directly reflected in DFCC’s mission to drive self-reliance and sustainability in small, medium and large-scale businesses by offering access to finance and value added services. DFCC aspires to reach to youth in society by presenting to them a wide portfolio of products and services, to include its latest offering: Vardhana Virtual Wallet.
With the objective of providing people from all walks of life, with an effective savings solution that is flexible and offers long-term financial security, DFCC launched the Vardhana Xtreme Saver account recently. The account offers attractive interest rates between 6% - 9% which varies based on the monthly account balances. This enables individuals, corporates and institutions to earn higher interest rates.
The Vardhana Xtreme Saver account can be opened with a minimum deposit of Rs. 5,000 and interest is calculated daily and credited monthly. Customers can enjoy a higher return even with a minimum balance of Rs 1000 and enjoy unlimited withdrawals free of charge from over 3,500 DFCC Bank or LankaPay ATM’s across the country. Moreover, customers can get concessionary interest rates on advances of up to 90% on their savings.
DFCC recently expanded its premier centre network to Negombo. Situated at 454, Main Street, Negombo, this service centre will offer premier customers banking services in the comfort of a modern environment. The services include individually tailored banking solutions, 24/7 exclusive access to Prabhu / Premier Call Centre, e-banking facilities, wealth management services and safety locker facilities amongst many others.
An outbound training was organised by DFCC REDS on 25th and 26th of June at Leading Edge/ Hustlers Paintball recreation facility in Hanwella. A group of 28 newly recruited ETs and ARMs participated in this training, which included fun activities such as rock crossing/ hiking, paintball shooting, raft building, raft launching on the Kelani River and many other activities. These were specially put together to help amplify trust, teamwork, goal motivation and build leadership skills of the participants. The outing also provided an ideal opportunity for the new recruits to interact with their colleagues and build friendships.
A long term assignment conducted by ‘Great Place to Work’, is underway at DFCC Bank. It is based on the Bank’s current culture and introducing new people practices to support the Bank's core value system. Phase two of the project commenced last week, with the first People Practice Workshop conducted for an inter-departmental group of senior staff and HR process owners. The objective of the session was to educate both management and HR about the new people practices that would need to be inculcated into DFCC’s culture. The program content was developed after a series of focus group discussions between the ‘Great Place to Work’ consultants and sample groups of staff members from diverse cadres of the Bank. Going forward, a series of workshops will be carried out across the Bank in order to create a uniform, vibrant and productive work culture.
DFCC Bank recently organised an Iftar Ceremony in Qatar, with the aim of promoting LMT amongst the migrant workers. The event which was organised for the first time by a Sri Lankan Bank was well received. Cash prices were awarded to the winners (residing in Sri Lanka) of the draw which was held during the event. The awards were given to the winners recently at the DFCC Head Office, by the CEO and DCEO of DFCC Bank.
DFCC bank joined hands with the Sri Lanka Export Development Board (EDB) to become the exclusive partner of the World Export Development Forum (WEDF).
The forum plays a vital role in the flourishing of businesses with regards to value chains, sustainable trade and international levels of competitiveness.
The flagship event of the International Trade Centre, co-hosted by the EDB, will focus on how Sri Lankan SMEs and corporates can better navigate an evolving global trade landscape.
The global forum ‘Connect, Compete and Change’ will take place at the BMICH, featuring an array of speakers from the public and private sectors. It will include workshops, industry-specific presentations, a round-table discussion, a gala night and a supplementary exhibition.
For over 60 years, DFCC bank has been at the forefront of contributing to economic development in Sri Lanka. The bank is proud to connect with EDB as the exclusive banking partner of this prestigious event, in line with efforts to drive economic growth in Sri Lanka.
DFCC Bank launched ‘Vardhana Salary Booster,’ especially designed for professionals. Accordingly, salaried individuals who meet the minimum criteria, have access to a host of exclusive benefits and privileges. These include, overdraft facilities upto 90% of two months’ salary, concessionary interest rates for ‘Vardhana Nenasa’ education loans and ‘Vardhana Sandella’ housing loans and special benefits when opening a ‘Vardhana Junior’ savings accounts. In addition to a free debit card, access is given to the ‘Vardhana Virtual Wallet’ and e-banking facilities. The credit card joining fees are waived off as well.
DFCC Bank was awarded a Certificate of Merit in the Outstanding Sustainable Project Financing category, at the Karlsruhe awards ceremony held recently. This award was given for financing a biomass based Combined Heat and Power Plant in Mirigama, Gampaha, with a capacity of 4MW. The power plant utilise biomass (wood chips from Gliricidia) as its fuel source.
The Project Company, K.M.R.I. – S.M.G. Asset Company (Pvt) Ltd., is to supply 17.3 GWh of electricity to the National Grid under a 20-year Power Purchase Agreement with the Ceylon Electricity Board (CEB), and 90,000 tonnes of steam to a Desiccated Coconut plant of the Silvermill Group (one of the project promoters and a shareholder), under a Steam Supply Agreement, annually.
The plant which will operate for 325 days a year, co-generates electricity and supply steam to the Silvermill Factory during 250 days of the year and 100% electricity at 4MW during the balance 75 days.
DFCC Bank organised the Market Opening Ceremony on 1st of June at the Colombo Stock Exchange (CSE) to mark the first day of trading for the month.
Whilst being proud of all they have delivered to the shareholders for over 60 years, DFCC Bank has further strengthened and continued to grow, raising the bar in service delivery and rapidly expanding its digital reach and footprint across the country. The Bank remains committed to maximising shareholder value in a sustainable manner by providing innovative financial solutions, drawing on the synergies of its other businesses within the group.
The Bank has offered value through its shares and thereby played an important role in sparking interest in the market, especially among retail investors around the country. The Bank’s shares have since developed into an attractive stock for investors and continue to attract interest both locally and internationally.
This form of Market Opening Ceremonies are conducted by the CSE to serve as a platform to generate exposure for listed companies as they celebrate important milestones in the capital market.
DFCC Bank hosted cocktails for members of the Sri Lanka Shippers’ Council at the DFCC Auditorium. The event was held in honour of the Council’s Diamond Jubilee which was celebrated in March this year.
A special plaque was presented to the Chairman of the Sri Lanka Shippers’ Council, Mr. Sean Van Dort at the event by Mr. Arjun Fernando.
Having played a pivotal role in economic development over the past 60 years, DFCC Bank has close associations with the Shipping and Export Industries. An event of this nature helps to build stronger business relationships.
DFCC Bank’s latest fully-fledged branch was opened at No. 63/1, Kalutara Road, Bandaragama on 2nd June.
The branch offers end-to-end financial solutions for all business and retail customers. This includes project financing, SME financing and retail banking services such as current and savings accounts, fixed deposits, loans, pawning services, leasing facilities, NRFC/RFC accounts, credit cards and money transfer options via Western Union. In addition, DFCC’s Lanka Money Transfer service is made available to the customers.
With its expertise in SME financing, the Bank expects to play a key role uplifting the business sector in Bandaragama. These services are complemented by the online banking facility, a 24/7 call centre and access to over 3,500 ATMs through DFCC’s own and partner ATM networks facilitating unlimited withdrawals at zero cost.
In line with DFCC bank’s long-standing commitment to respecting both the environment and society, a tree-planting campaign was launched to commemorate World Environment Day.
In collaboration with Reforest Lanka, a non-profit organization dedicated to protecting Sri Lanka’s forests, volunteers from DFCC bank planted thirty na trees at the Keththarama Temple premises. Members of the temple clergy were also present during this event.
A similar ceremony was inaugurated at the DFCC Head Office, where five karanda trees were planted on the front lawn of the premises, under the direction of the bank’s senior executives.
DFCC takes pride in being a socially responsible bank with concern for the environment always at its heart. Following the commendable success of the afore-mentioned initiatives, the bank foresees an increase in the implementation of similar programmes nation-wide with the support of its branch network.
DFCC strives to ensure that all its members are ecologically conscious, and committed to upholding values of conservation and sustainability.
The first Vardhana Wallet Merchants Evening was held at the DFCC Bank Executive Lounge on the 11th of April 2016. The aim was to formally welcome the Merchants on board as DFCC’s strategic partners and further strengthen connections through fellowship.
Vardhana Virtual Wallet, which is a virtual replacement of a physical wallet, enables DFCC to be at the forefront in paving the way for a cashless society. This also affirms DFCC’s potential for stronger growth through innovation and driving financial inclusion in Sri Lanka.
In keeping with its commitment to deliver a superior customer service experience, DFCC Bank recently joined the LankaPay Common ATM switch (CAS) operated by Lanka Clear Ltd., which is Sri Lanka’s largest ATM network.
This alliance provides the Bank’s Debit, ATM and KDU Vcash cardholders the convenience of withdrawing cash and carrying out balance inquiries through LankaPay member banks, free of charge from over 3,000 ATMs island-wide. In addition, there is no restriction on the number of withdrawals and balance inquiries that cardholders can perform through CAS connected ATMs. However, the daily ATM and POS limits applicable to the cards would apply.
Mr. Arjun Fernando – CEO, DFCC Bank exchanges the agreement with Channa de Silva – CEO/ General Manager, Lanka Clear. Also present (L-R): Gemunu Gunasumana – AVP Card Operations, DFCC Bank, Denver Lewis –VP Services, DFCC Bank, Achintha Hewanayake - Chief Technology & Services Officer, DFCC Bank, Lakshman Silva – DCEO, DFCC Bank, Harsha Wanigatunga - DGM IT & Operations, Lanka Clear and Isuru Jayaweera – Senior Manager, Lanka Clear
The DFCC Bank website was re-designed and re-launched with the objective of enhancing the navigation experience and creating a more cohesive experience across digital channels.
From the layout pattern to the dynamic content loading and seamless context transitions, the website embraces today’s multi-device media consumption. It also adapts to the size of the window – be it mobile, tablet, laptop or desktop PC.
The new investor relations section also includes a ‘Perennial Compendium’ featuring the Bank’s latest news, enabling stakeholders to stay up-to-date with the new developments. This website highlights the forward thinking brand personality of the Bank. Further value additions are set to follow including mirroring the site in Sinhala and Tamil, processing applications online and a 24/7 chat support.
A special Avurudu promotion themed ‘Thaagi Kadai - Wadi Poliyai’ was launched to drive CASA during the festive season upto the 4th of May. Both new and existing customers are offered attractive gifts and special benefits on their deposits to the Savings or Fixed Deposit accounts. It also carries a 10.5% rate of interest on an one-year Fixed Deposit. In addition, new Savings Deposits over Rs.10,000 are entitled to a range of gifts including gift vouchers and DFCC branded household items from Singer Sri Lanka.
It was not the best of times, nor was it the worst of times, but it will be remembered as one of the most momentous of times for DFCC Bank PLC. This paraphrasing of the opening lines of ‘A Tale of Two Cities’ by Charles Dickens aptly summarises the events of year 2015.
While posting a mixed bag of financial results, the much-anticipated formalisation of the operational merger between DFCC Bank PLC and its subsidiary DFCC Vardhana Bank became effective on 1 October 2015 through an amalgamation of the two banks. The transition was smooth and seamless and the surviving entity is DFCC Bank PLC (“Bank”).
We trace our origins to the establishment of Development Finance Corporation of Ceylon (DFCC) in October 1955 with a mandate to spearhead development financing in a newly independent nation. DFCC, which later became known as DFCC Bank and finally DFCC Bank PLC, evolved and grew with the times to celebrate its Diamond Anniversary in October 2015, which also coincided with the amalgamation. A happy augury indeed!
Our relationship with DFCC Vardhana Bank dates back to 2003 when we acquired a 94% equity stake in a fledgling commercial bank – then known as MERC Bank – to complement our development banking business.
We now bring together the best of two banks – a unique blending of a 60-year heritage in development banking skills with the dynamism of one of the fastest growing commercial banks in the country. New thinking is pervading the internal mindset and a paradigm shift is taking place in customer experience. Novel electronic delivery channels such as Lanka Money Transfer and Supplier Settlement Service, a digital Mobile Wallet that fosters financial inclusion and the rebranding and relaunch of DFCC Bank’s brand are some visible examples of the innovations and change that are taking place.
We are embarking on an ambitious five-year strategic plan that will position the Bank in the upper quartile of the local banking industry. It will be underpinned by diversifying our distribution channels, increasing the use of digital media and building further on our cautious expansion into foreign markets.
Well poised to take advantage of the new era of opportunity, we will ensure that the Bank will grow with you, for we have always been a bank that grew with our customers, rather than because of them.
Let’s keep growing!
See: Our strategic direction in our Annual report 2015.
DFCC Bank PLC, Sri Lanka’s pioneering development bank, is renowned for being a national icon that has played a pivotal role in the development of Small and Medium Enterprises (SMEs) in the country.
The bank has a track record of having sustained these businesses in their operations in becoming some of the largest and most successful corporations of today, and its contribution has always been holistic, extending well beyond the mere financing of activities.
After 60 years of development and growth, DFCC recently amalgamated with its commercial banking subsidiary, DFCC Vardhana Bank, transforming itself to raise the bar of service delivery, to further enhance the bank’s value proposition to this sector.
The Government of Sri Lanka has identified the Small and Medium Enterprise sector in its policies as being an important strategic highlight. The Chief Executive Officer of DFCC Bank PLC, Mr. Arjun Fernando, has clearly detailed how the bank has supported such enterprises in the past and how it is further positioned to support such initiatives in 2016 and beyond.
For the first time in Sri Lanka, DFCC Bank conducted a children’s savings promotion for the New Year. This was to motivate parents to open savings accounts for their children on this special day.
The Bank pledged to pay an additional Rs. 1,000/= for every children’s saving account opened for children below 18 years on this day. The aim of the campaign was to encourage parents to consciously save for their children.
As a responsible commercial bank in the country, DFCC felt this was a timely requirement to educate parents on the value of saving for their children. In addition, DFCC is also committed to educating children on the value of saving in line with the government’s vision. Offering high interest rates and a range of other benefits including gifts and educational support, DFCC Bank’s Vardhana Junior and Vardhana Junior Plus savings accounts, ensures that the future leaders of the country step into their adulthood with a sound financial backing.
Coinciding with the 60th Anniversary Celebrations of the Bank in the North, DFCC Bank provided assistance to two healthcare institutions in Jaffna and Vavuniya. The Bank provided essential equipments to cater to the needs of patients.
Accordingly, 30 wheelchairs were donated to the Jaffna Teaching Hospital and 200 seats for the OPD Unit in the Vavuniya General Hospital. These initiatives have enhanced the quality of service extended to the needy patients. The equipment was handed over to Dr.Sathiamoorthy, Director of the Jaffna Teaching Hospital and Dr .K. Akilendiran, Director General of the Vavuniya General Hospital.
The project was spearheaded by the Regional Manager and the Branch Managers of the Jaffna and Vavuniya branches.
Although Bank’s CSR is mainly focused on Education, Entrepreneurship, Environment and Emergency Relief, enabling growth and development in every area is also of utmost importance to DFCC. Therefore, community development is an integral part of the Bank’s core value system and it aims to be a model corporate citizen creating long term social value for the communities in which it operates.
DFCC was awarded Gold in the Financial Institution Category at the 2015 Annual Report Awards organized by the Institute of Charted Accountants of Sri Lanka. The bank has made notable wins of this kind in the past as well.
During the financial year in focus, DFCC made radical changes in their approach to its annual report. It was formulated to communicate the relevant information concisely without compromising on the content and the compliance related disclosures. In doing so, the Annual Report was more user-friendly for the shareholders. More importantly DFCC also minimised the paper used for its Report this year.
The Annual Report was also made available in the form of a concise report in print, an online report and a condensed ‘annual snapshot’. These formats made the annual reports available to a larger readership and attracted a broad spectrum of current and potential stakeholders.
The bank’s stakeholders responded favourably to the Report and its success can be attributed to Smart Media (Pvt) Ltd, our Annual Report partner. The company intelligently conveyed the vision of DFCC.
DFCC PLC expanded its operations in Weligama, with the opening of a new branch. Weligama town has developed into a thriving centre for trade and business in the south of Sri Lanka. The new branch located at No. 354/45, Samaraweera Place was ceremonially opened by Arjun Fernando, CEO of DFCC Bank, Lakshman Silva, DCEO of DFCC Bank as well as several senior banking officials, staff members and members of the local community.
The branch will offer tremendous convenience and a comprehensive service to all business and retail customers in the area. It operates as a fully-fledged branch offering all types of banking transaction including foreign currency products. The new branch is equipped with an ATM and is linked to all other DFCC Bank branches.
Mr. Saravanapavan Raveendra and his team in the Northern region provided assistance to families affected by floods in the Vatharavarai Village. The village was severely affected and many people were displaced due to the flash floods caused by heavy rains.
Acting on the request of the Divisional Secretariat, the team distributed packets of biscuits and mosquito coils for about 100 affected families. This was a great comfort to the families as most were without food, especially the children.
The relief team extends their appreciation to the Marketing team for the support given. These initiatives make a difference to the communities whilst portraying the Bank as one that truly cares for the community!
DFCC Bank was ranked 17th in the ‘Top 25’ list of Business Today for the financial year 2014/15, based on the financial performance. This is the 6th consecutive year that DFCC has made the list.
Based on the published information of companies listed in the Colombo Stock Exchange, the companies are ranked based on financial criteria. These include, Share Turnover, Revenue, Profit after Tax, Return on Equity, Earnings per Share, Market Capitalization and Value Addition.
DFCC’s financial indicators recorded an increase, year on year in the year reviewed for the latest ranking. Group profit after tax soared 38% to LKR 4.4 billion and operating income before VAT and NBT swelled by 33% to LKR 6.1 billion. Accordingly, Earnings per Share grew by 38% to LKR 16.46 whilst, Group assets surpassed the LKR 200 billion mark recording LKR 211 billion from LKR 175 billion the previous comparable year.
DFCC Bank PLC made another remarkable move through its approval of a project loan to Saga Solar (Pvt) Ltd. The bank is renowned as a pioneer in financing renewable energy. Yet, this is the first time the bank financed a project of this kind.
The project initiated by Saga Solar (Pvt) Ltd is a revolutionary initiative undertaken by a team of experts in the solar energy sector. The team includes a group of brilliant investors and professionals. DFCC will also be completely committed towards the project. The Bank will oversee the project from start to finish.
In the green energy category, solar energy has great potential. However this project will be the first large commercial solar project with grid connectivity.
The Bank financed similar projects such as Sri Lanka’s first ever privately-owned grid-connected mini-hydro power plant in 1994. DFCC also became the pioneer financier for the private sector wind power projects in the country when it partly financed the first wind power project in 2010.
The Bank which celebrated its Diamond Jubilee very recently aspires to be a part of projects of this kind in the future.
On the 1st of October 2015, Sri Lanka’s banking and financial sector made a landmark development with the amalgamation of DFCC Bank and DFCC Vardhana Bank.
The new entity is a full-service bank which offers a wide range of products and services such as development commercial banking, development banking and personal financial services. The two banks which share a common vision, mission and ethos have also introduced a new logo which symbolizes simplicity and ease of access to all its customers.
Subsequent to the amalgamation, the entity will have approximately 1500 employees, 137 branches island-wide and a combined asset base of Rs 210 billion as at March 2015.
The merger is in keeping with the national objectives of the country as it showcases the country as a vibrant economy and an attractive destination for investment.
DFCC Bank PLC will carve a new financial future for Sri Lanka and its future. It will also prove to be a banking leader of international standing.
At the Annual General Meeting held on the 28th of August, the amalgamation proposal for DFCC Bank PLC and DFCC Vardhana Bank PLC was unanimously approved by the shareholders of the two companies.
DFCC Bank PLC will make an offer to purchase the shares of the minority shareholders of DFCC Vardhana Bank PLC at a price of Rs 52/- for every one ordinary voting share held.The amalgamation of the two complementary businesses will offer integrated financial solutions to a range of clients through 137 branches situated island-wide. This remarkable milestone will be achieved the very same year DFCC celebrates its Diamond Jubilee. The merger will build on 60 years of expertise and will deliver value and convenience to all its stakeholders. The future of the Bank is well mapped out and will bring together the best in talent and practice.
The second listed debenture issue of DVB, which concluded on 29 May 2015 was a resounding success. Following on the success of its first debenture issue in 2011, both senior and subordinated debt categories were oversubscribed within hours of opening to the public.
The issue was an industry milestone, being the first listed issue with two types of debt rankings. Both senior and subordinated debt categories had a tenor of 5 years with a bullet capital repayment. With an AA- Fitch Rating, the senior debt carried an annual interest coupon of 9.10% whilst the subordinated debt was rated A+ with an annual interest coupon of 9.40%.
This debenture issue supported the growth process of DVB whilst the subordinated debt component boosted the Tier II capital ratio of the Bank in accordance with Basel ll guidelines.
The Issue was managed by Capital Alliance Partners Limited and Acuity Partners (Pvt) Limited, and structured by DFCC Bank’s Funding and Capital Markets Division.
DFCC Website, www.DFCC.lk won a merit award at the Best Website Awards in the Corporate, Banking and Insurance website category and in the Tamil website category. Organised by the LK Domain Registry, the Best Sri Lankan Website Awards (BestWeb.lk) recognize high quality Sri Lankan websites in a variety of different categories. This year over 600 websites competed with MAS Holding securing the top spot in the category followed by Union Assurance and Sampath Bank in the second and third places.
The DFCC website was re-launched in September 2012 supplemented with Sinhala and Tamil websites integrating the services of both banks to provide a fully-fledged online service.
DFCC Bank PLC was chosen to be a project partner of the German Development Cooperation (GIZ) along with Hatton National Bank, Sri Lanka Energy Manager’s Association (SLEMA) and the regional Chambers of Commerce in guiding Small and Medium Enterprises (SMEs) to employ energy efficient processes.
The project included workshops in Anuradhapura and Jaffna where approximately 30 SME’s in each region were trained including DFCC customers. Similar workshops were held in other parts of the country as well.
Both local and international experts followed an integrated approach to ensure SME’s receive the necessary support at each step of the investment. This project was in line with our developmental role and was facilitated by Branch Banking and DFCC Consulting. Officials from GIZ commended our staff for the excellence in which the workshops were organised.
Financial Statements for the quarter ended 30 June 2015.