Abstract:
This study is based on a case study of the Citizen Development Business (CDB)
Finance PLC. The main financial services offered by CDB can be categorized as term
deposits, savings deposits, personnel finance, leasing, and hire purchase financing,
pawning, corporate and retail credit. The study mainly focus is given to the leasing
product which mainly consist with main three asset categories of three-wheeler, lorry
and other. A pre-trend analysis was carried out to identify the nature of the main
products of the company which enables to have a thought of realizing that the three
wheel product portfolio is declining on a gradual basis whereas the contribution to the
revenue of the company was significant. The prior investigation showed the reason
upon such decline was mainly due to the management decisions on reducing three
wheeler portfolio. That is the trigger point of this particular study and encompassed
with which the ultimate purpose of the study brought to discussion, as whether there
is an actual impact of the seized vehicle to the financial performance of the company
coupled with to measure the statistical impact of the seized vehicle to the loan-tovalue
ratio. The data collection for the study was carried out quantitatively and
qualitatively, using company financial database and questionnaire respectively. The
sample was consist with 25 personnel covering managers, recovery officers and
selected executive grade staff. The correlation and regression analysis used to
measure the statistical relationship and the impact of independent variables such as
close vehicle, interest rate and income on dependent variable of seized vehicles
.Through results of the study it can be concluded that null hypothesis can be accepted
since there is no significant impact of the seized vehicles to the financial performance
and also since there is significant impact of the loan-to-value ratio to the seized
vehicle null hypothesis was rejected.
