Reflecting public confidence in the Company, Sarvodaya Development Finance PLC (SDF) deposit base grew by 10.1% from end March 2022, to end June 2022. The total assets of the Company recorded a marginal growth despite all social, political and economic challenges experienced in the country recently. SDF’s total income for the quarter ended 30 June 2022, was LKR 559.84 million, which is a growth of 40.9% compared to the income of LKR 397.34 million for the comparative period of FY 2021-22. The net operating income for the quarter increased by 22.6% to LKR 288.82 million, from LKR 235.65 million in the previous comparative quarter. The operating profit before tax on financial services increased by 55.8% to LKR 74.62 million, against the comparative figure of LKR 47.90 million one year ago. The profit before tax increased by 59.8% to LKR 45.30 million as compared to LKR 28.36 million in the previous year’s first quarter. SDF concluded the 1st quarter of FY 2022-23 with an after-tax profit growth of 115.0% reaching LKR 33.83 million, as compared to LKR 15.73 million achieved in the 1st quarter of FY 2021-22.
SDF expanded its agricultural lending portfolio and farming related support services, thereby actively facilitating recovery of the country’s essential agriculture sector. Through its strategic agreements with leading agricultural equipment and machinery suppliers, SDF modernizes rural farmers with modern agricultural equipment, such as combined harvesters, tractors, automated rice mills and other equipment to enhance agricultural outputs, supported by buy back agreements as a risk mitigation mechanism. Meanwhile, seasonal repayment plans have been developed for farmers to alleviate repayment pressure on farming communities, enabling them to repay their loans with the increase in income during harvest seasons. In an unique intervention, SDF also supplies its farming customers with liquid organic fertilizer (Effective Micro-organism), which is manufactured by the Sarvodaya Movement based on a patented Japanese formula. As a further support measure, SDF also negotiates forward buying contracts for farm produce, to ensure farmers are able to sell their products immediately at fair prices.