Seeking to serve a wider clientele and increase accessibility to financial services, IDEAL Finance Limited (IFL), one of Sri Lanka’s reputed finance companies, recently unveiled the latest addition to its branch network with a new branch in Kadawatha. This branch will help customers, in this high-growth region in the Western Province, more easily access IFL’s portfolio of financial services. The new Kadawatha Branch of IDEAL Finance was officially declared open on the 10th of December 2022, and was marked by a special opening ceremony, amidst an intimate gathering of top officials and customers, in line with health guidelines.
Discussing the opening of the new branch, Mr. Duminda Weerasekara – CEO at IDEAL Finance Limited said, “The opening of our Branch in Kadawatha is a significant milestone on our journey, and part of our broader network expansion project. By the end of March 2022, we plan to have doubled our reach and expanded to most major cities in the country. This new branch will help us to provide customers in this region with ideal financial solutions. Working together as a team, we are creating opportunities not just for our valued customers but also for our people, who have an opportunity to work towards their dreams here at IDEAL Finance. We are pleased to have been recognized as an employer of choice in Sri Lanka, having been tipped as a Great Place to Work for 3 years consecutively. As we progress with our network expansion, we are also looking to consolidate our team to tackle future challenges.”
IFL’s network expansion and portfolio diversification comes in the wake of Mahindra and Mahindra Financial Services Limited investing in IDEAL Finance Limited. This is a multi-phase foreign direct investment (FDI) which commenced in February 2020, with Mahindra initially acquiring a 38.2% stake in IFL. The final tranche of the investment has increased the Mahindra and Mahindra Financial Services Limited’s holding to 58.2% in the 2021/22 financial year, resulting in FDIs to Sri Lanka totalling over LKR 2 Billion. Thus, today, IDEAL Finance is backed by a global financial giant with over USD 11 billion worth of assets under management, a sum that exceeds the asset value of Sri Lanka’s entire banking industry.
Attesting to the success of its network expansion plan, growth strategy and alliance with Mahindra, IDEAL Finance announced its best-ever annual performance earlier this year, for the financial year ended 31st March 2021, having deftly navigated the challenges posed by the global pandemic. PBT (Profit Before Tax) was up 76% YoY to LKR 288.4 million, while PAT (Profit After Tax) grew 74% to LKR 183.8 million. The Company’s NPL (Non-Performing Loans) ratio also improved to 3.3%, bucking the industry trend, from 5.2% in the previous year. Following Mahindra’s investment in IDEAL Finance Limited, Fitch Ratings has also upgraded IDEAL Finance’s rating from BB (lka) to AA – (lka) with a stable outlook.
IDEAL Finance Limited (IFL) is an NBFI registered with Central Bank of Sri Lanka and commenced operations in March 2012 with a clear focus on the rural and semi-urban sectors. Its lending portfolio consists of gold loans, SME loans, personal loans, leasing facilities for motor cars, three wheelers, agriculture vehicles and commercial vehicles. IFL has developed a quality lending portfolio, while recording sustainable annual growth in profitability.