1.1 Company Profile

1.1.1 Company Background

HNB Grameen Finance Limited (HNBG) was incorporated in the year 2000 as a limited liability company under the Ceylinco Group of Companies with the objective of providing collateral free loans to financially exclusive small scale women entrepreneurs in Sri Lanka.

1.1.2 Type of Organization

HNBG registered as a finance company by the monetary board of the Central Bank of Sri Lanka under Finance Business Act No.42 of 2011. Its main source of income is interest income from Micro Finance Loans.

1.1.3 Size of Organization

There are 1567 employees in the company of which 95% are male and 5% are female. The company has witnessed a tremendous growth in all spheres since its inception from negative worth to with a PAT over Rs.1.1 Bn in the FY 2018 / 19 profitability Figure 1 shows some of the highlights. It has 48 branches and 24 service centers, island wide to provide convenient service to the customers.

1.1.4 Product Portfolio

The product portfolio of the company falls in two major categories; lending and funding. The Products under each category are given in Figure 2. Among the lending products portfolio 89% represent Micro loan products (Diriya, Sahana) and 78% of funding products represent Fixed Deposits.

1.1.5 Customer Base

HNBG caters 100% on B2B customers as it lends for small scale business purposes whereas their funding products represent 90% on B2C while balance 10% accounts for B2B customers. Further, lending customers 98% represent female and balance 2% are represented by male customers. Of the total lending base 80% represents female lending customers within the age group of 20 – 40 and balance account for the age above 41 years.