Two years ago the Company which is backed by one of the largest conglomerates – the DCSL group forayed into the financial services sector with the objective of creating and adding value to the financial landscape of the country. Having successfully concluded two years with many milestones to its credit – the Company is now poised to reach greater heights of success in the years to come.
Melsta Regal Finance Ltd can be credited as the only finance company in the sector, which has a diversified and differentiated product range. Traditionally, most finance companies focus predominantly on leasing and hire purchase products. During its short history, the Company has infused much vibrancy and colour to the financial services industry.
Through this extensive product range, encompassing integrated working capital solutions, term loans for business expansion, project loans for new business startups and specialized factoring and cheque discounting services, the Company has carved a niche in the market.
Thereby the Company aims to satisfy the financial needs of a larger segment of the business community be it a SME or a large corporate entity. The Company at its formation stages largely focused on the right mix to serve these discerning segments of the business community.
The Company being a part of a multi-faceted Melstacorp Group – has access to the professionalism of many group companies such as the Aitken Spence’ s expertise in logistics and the Melsta Logistics – Formula World Collision Repair Centre. Most of the Company’s services are value added and enriched with the expertise of the Group’s professionalism in clearing, cargo handling with logistics and state of the art vehicle repair center.
The Company’s service ethos lies on the flexibility of a finance company along with the expertise of a bank. In celebrating its second year the Company’s, Chairman Amitha Gooneratne, highlighted that“the overall strategic intent of the DCSL Group in entering the financial services sector is to infuse confidence and stability.
Melsta Regal in this journeywould offer and position itself in par with a bank in terms of product breadth and flexibility. With the Central Bank’s consolidation plans the financial services industry is now at a crucial juncture. We see this as a favorable time for the Company to take off to the second stage of growth with the opportunities available to us”.
Melsta Regal Finance Ltd was one of the first companies to adhere to the Central Bank of Sri Lanka’s capital adequacy requirements by infusing Rs. 650 Million equity in March 2014. Presently, the Company with its stated capital of Rs 1.3 Billion is in compliance with the capital adequacy requirements till 2016.
A significant milestone of the Company was the A+rating by Fitch Ratings Lanka in the very first year of operations and this has been re-affirmed in 2014. The Company is one of the few finance companies that have achieved this rating.
The Company has recorded an impressive growth trajectory of achieving a 204% year on year credit growth in an external environment of sluggish credit growth. The balance sheet size of the Company is over Rs3.5 Billion.
Speaking on this achievement, Director/CEO Nishaman Karunapala highlighted “the Company inits focus ofsignificant growth levelsadopted a prudent approach of being conscious of the credit quality aspects aswell. We have the lowest NPA ratios of the industry. This was achieved with a two pronged approach of maximizing the productivity whilst focusing on qualitative aspects of credit”.
The Company’s stability and strength was exemplified when it secured a US$10 Million foreign currency funding line recently. Access to such low cost funding lines would undoubtedly benefit the SME clientele of the Company, which is the focus of the Company, particularly with the branch expansion plans of the Company.
In moving forward the Company hopes to expand its regional presence to key cities. Further, within the next few months the company hopes to launch new innovative credit instruments along with savings products incorporating state-of-the-art IT systems.
Photo Caption :
1. Amitha Gooneratne, Chairman - Melsta Regal Finance Ltd.
2. Nishaman Karunapala, Director / CEO - Melsta Regal Finance Ltd.
