The Commercial Bank of Ceylon provided new concessionary lending of nearly Rs 30 billion in 2020, its centenary year, to help Sri Lankans weather the impacts of the Covid-19 pandemic and ended the year as the most generous lender among the country’s private banks.
This high volume of concessionary loans was in addition to the relief the Bank granted to customers in the form of debt, capital or interest moratoriums on a staggering 81,387 existing loans with a capital outstanding of Rs 443billion as well as repayment of outstanding credit card balances, the Bank disclosed this week.
“We began the year on a celebratory note, with an ambitious portfolio of community initiatives to commemorate our 100-year history, but it soon became evident that we would have to play a far more urgent and vital role to underwrite the survival of people and businesses impacted by the effects of the pandemic,” Commercial Bank Managing Director S. Renganathan said. “We are proud to end the year as the leading provider of Covid-19 linked concessionary loans among the private banks, and the process continues.”
The total of Rs 29.6 billion in Covid-19 support loansdisbursed by the Bank as at 30th December 2020 under multiple relief schemesto provideworking capital loans to pandemic affected businessesincluded loans provided under the Central Bank mandated programme as well as the Bank’s own support schemes.
Under the working capital loan scheme titled ‘Saubagya Covid-19 Renaissance facility’ launched by the Central Bank of Sri Lanka (CBSL), Commercial Bank registered5,637 applications with a total value of Rs 28 billion over the three phases of the programme and disbursed 5,387loanswith a value of Rs 26.6 billion at the close of 2020.
Commercial Bank also funded two other special loan schemes of its own, one for SMEs affected by Covid-19and the other the ‘Dirishakthi Covid-19 Support Loan’ scheme to assist micro enterprises disrupted by the pandemic. The Bank lent Rs 1.4billion via 102 loans to help small and medium businesses and Rs 34 million via 313 loans to micro enterprises under these bank-funded loan schemes.
Taking on the mantle ofthe driving force in economic recovery in the post-pandemic period,the Bank grouped12 different schemes implemented for affected businesses and individuals under the umbrella of the ‘Arunella’ Financial Support Scheme and extended these relief programmes beyond the mandated debt moratorium. These concessions included flexible payment options, up to 20% rebates on accrued interest during the moratorium periods, extension of moratorium periods for up to another six months, further reductions on Credit Card repayments and applicable interest rates, and Debt Consolidation Plans.
The Bank also completed a landmark private equity placement with IFC in 2020. It launched CBC Finance Ltd., itsfully ownedLicensed Non-bank Finance Institution (NBFI) andinstalled its 250th Cash Recycler Machine (CRM) by the end of 2020, taking its network of automated machines to 905.
The Bank increased its stake in Commercial Insurance Brokers, and its subsidiary CBC Myanmar Microfinance Ltd. expanded its operations by opening a branch in Pyinmana.