15th December 2021, Colombo: Going from strength to strength, Commercial Leasing & Finance (CLC) PLC’s Islamic Business Division (IBD) clinched prominent local and regional awards recently, thereby reinforcing its positioning as one of the best performers in the Islamic Banking industry in Sri Lanka and the South Asian region. CLC’s Islamic Business Division was awarded the Silver Award as ‘Islamic Leasing Company of the Year’ at the Islamic Finance Forum of South Asia (IFFSA) from amongst severe competition in South Asia’s Islamic banking and financial fraternity. Within Sri Lanka, the IBD was awarded the Silver award for ‘Leasing Company of the Year’ and a Bronze for ‘Islamic Window of the Year’ for 2020 from more than 20 players in the alternative financial services sector.
Winners of both IFFSA and SLIBFI are judged by an independent panel in terms of performance for financial year 2020/21 on the basis of balance sheet growth, business expansion, marketing activities, CSR, etc.
Commenting on this achievement in the midst of navigating the pandemic, Head of Islamic Business Division, Ilsam Awfer said, “We are thrilled to be recognized with these prestigious awards amongst leading names in Islamic Finance in Sri Lanka and overseas. The Islamic Business Division achieved an income growth of 13% over the previous year, with a balance sheet growth of 29%. Most significant fact is the industry low Non-Performing Loan (NPL) ratio of 3.6% which shows the significance in managing this business.”
Explaining further, he added, “Despite financial markets being depressed due to 2019 Easter attacks, followed by the pandemic, CLC was one of the very few financial services providers to grow its asset portfolio.
As CLC’s Islamic Business Division, we are pleased to have made a significant contribution to the company’s performance. While growing our advances portfolio, we also provided COVID-19 moratoriums up to a considerable amount against our portfolio to relieve those whose incomes and livelihoods were affected.”
Commenting on IBD’s achievement Director / Chief Executive Officer of CLC Mr. Krishan Thilakaratne stated, “I am extremely happy to see CLC - Islamic Finance progress to becoming one of the top Islamic Finance service providers in Sri Lanka and South Asia.
CLC IBD offers a complete range of products starting from Mudharabah Term Investments, Mudharabah Savings, Wakala Term Investments which covers liability aspects; and Ijarah Leasing, Murabaha Trade Finance, Diminishing Musharaka Project/Property Finance, Musawamah Import Finance, Wakala Working Capital Finance and Wadi’ah Safe Keeping.”
Adding further, Mr. Thilakaratne stated: “CLC Islamic Finance is currently the highest Profit Payer for Mudharabah and Wakala Investments among Islamic Banking and Financial Institutions in the country.
This is due to the successful business model we follow – backed by the right strategy.”
Future plans include increasing marketing cadre to promote new products - Wadi’ah (Safe keeping) – as an alternative for conventional Gold loans.
This facility is introduced in two options - Safe Keeping, which allows the customers to store their gold articles, and the Benevolent Loan facility, which provides an interest free loan for a set period.