Hatton National Bank (HNB), a private commercial bank in Sri Lanka, reportedly is planning to acquire a 51-percent stake in Prime Grameen Micro Finance, a Sri Lankan microfinance institution (MFI), for LKR 660 million (USD 5 million). HNB has been providing financial services to small and medium-sized enterprises in rural Sri Lanka through a financial inclusion program called “Gami Pubudwa” (Village Awakening) since 1991.
As of December 2013, HNB reported total assets of LKR 510 billion (USD 3.9 billion), total deposits of LKR 385 billion (USD 2.9 billion), gross loans and receivables of LKR 363 billion (USD 2.8 billion) and return on assets (ROA) of 1.5 percent. Prime Grameen, which is licensed to accept deposits, reported total assets of LKR 2.8 billion (USD 25 million), total liabilities of LKR 2.5 billion (USD 22 million), return on assets (ROA) of 18.75 percent and return on equity (ROE) of 41.87 percent as of July, 2011.More recent financials are not available.
By Hope Gitangu, Research Associate
About Hatton National Bank (HNB)
Hatton National Bank (HNB) is a private commercial bank in Sri Lanka that was founded in 1888 to serve Ceylon’s tea industry. It has since become a public limited company that, in addition to traditional financial services, offers financial literacy and microfinance products through its “Gami Pubudwa” (Village Awakening) program. HNB branch network covers 250 locations across Sri Lanka. In 2000 HNB opened a representative office in Karachi, Pakistan, and another in Chennai, India. As of December 2013, HNB reported total assets of LKR 510 billion (USD 3.9 billion), total deposits of LKR 385 billion (USD 2.9 billion), gross loans and receivables of LKR 363 billion (USD 2.8 billion) and return on assets (ROA) of 1.5 percent.
About Prime Grameen Micro Finance
Prime Grameen is a Sri Lankan microfinance institution established in 2000 with the aim of providing microfinance services to small-scale entrepreneurs. It has been licensed to obtain public deposits by the Central Bank of Sri Lanka. As of 2011, Prime Grameen reported total assets of LKR 2.8 billion (USD 25 million), total liabilities of LKR 2.5 billion (USD 22 million), return on assets (ROA) of 18.75 percent and return on equity (ROE) of 41.87 percent as of July, 2011. More recent financials of Prime Grameen are not available as of 2014.
Sources and Additional Resources
[1] HNB Planning to Acquire a 51% stake in Prime Grameen Micro Financehttp://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=107921
MicroCapital Story, October 21, 2013, “Hatton National Bank of Sri Lanka to Establish Microfinance Subsidiary,” https://www.microcapital.org/microcapital-brief-hatton-national-bank-of-sri-lanka-to-establish-microfinance-subsidiary/
MicroCapital Story, July 30, 2013, “Government of Sri Lanka Proposes Long-Delayed Regulations for Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-government-of-sri-lanka-proposes-regulations-for-microfinance-institutions-mfis/
MicroCapital Story, October 12, 2010, “Hatton National Bank (HNB) of Sri Lanka Reportedly Increases Impact Through “Village Awakening” Microfinance Program,” https://www.microcapital.org/microcapital-brief-hatton-national-bank-hnb-of-sri-lanka-reportedly-increases-impact-through-village-awakening-microfinance-program/
MicroCapital Universe Profile: Hatton National Bank (HNB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Hatton+National+Bank+%28HNB%29
MicroCapital Universe Profile: Prime Grameen Micro Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Prime+Grameen+Micro+Finance
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Stanbic Bank Uganda, IFAD Seek to Reduce Costs of Remittances via FlexiPay E-wallet, Encourage Adoption via SACCOs
- MICROCAPITAL BRIEF: Agents for Impact Disburses $8m from Invest in Visions (IIV) to Microfinance Institutions Digamber of India, Imon of Tajikistan
- MICROCAPITAL BRIEF: Credit Bank, FSD Kenya Engaging SACCOs in Effort to Reduce Remittance Costs for Rural Kenyans
- MICROCAPITAL BRIEF: FMO, Proparco Lend $125m to NMB for MSME, Agriculture, Green Financing in Tanzania
- MICROCAPITAL BRIEF: Regulator Licenses ADIB Egypt to Open Shariah-compliant Subsidiary, ADI Microfinance