The Bangladesh wing of Commercial Bank of Ceylon witnessed 3 per cent profit rise in 2020. The bank earned a profit of Tk 158.9 crore for 2020, which is the highest so far in 17 years of its operations in Bangladesh.
On the other hand, the parent company faced a profit contraction of 3.8 per cent on higher provisioning requirements for the pandemic.
The bank, which has 11 branches, two offshore banking units and 6 SME centres, has a loan-deposit ratio of 77.48 per cent at the end of 2020, up from 75.33 per cent a year earlier.
The highly experienced retailed banking sector earned the profit due to higher investment income. The profit offset the loss from reduced lending opportunities for the pandemic.
Its investment income surged 2.8 times to Tk 136.5 crore as the bank invested money generously on Treasury bills and bonds. Meanwhile, its net interest income shrank about 25 per cent to Tk 143.6 crore on reduced lending opportunities for the pandemic.
At the end of 2020, its loans and advances stood at Tk 5,539.5 crore, up 15.4 per cent year-on-year.
Its default loan ratio is 0.6 per cent, down from 0.75 per cent in 2019 — remarkable as the banking sector’s average is 7.7 per cent. Its deposits swelled 12.4 per cent to Tk 5,100 crore.
It sustained a provisioning of Tk 14.2 crore in 2020, which is more than double that from a corresponding period in the previous year, despite the Bangladesh Bank having put a bar on loan classification for 2020.