Provisional Topic Title : Analyze the impact of customer retention on company profitability (Case Study of Leasing Industry in Sri Lanka –ABC Company)

1 Introduction
1.1 Introduction to the industry
ABC is classified as one of the strongest players among the Non Banking Financial Institutions (NBFI’s) in Sri Lanka. The NBFI’s can once again be categorized into two main sectors and they are the Licensed Finance Companies (LFC’s) and the Specialized Leasing Companies (SLC’s) such as ABC. The NBFI sector in Sri Lanka consists of 48 LFC’s and 8 SLC’s as at2014.
The total market of the Non Banking Financial institutions in Sri Lanka, it can be interpreted that the portfolio is divided into three major markets and mainly classified as Finance Leasing, Hire Purchase, Secured Loans and Advances.
1.2 Introduction to the Company
“ABC Finance Company PLC is one of the most stable and reputed financial institutions in Sri Lanka”. The life time of the company spans over a period of nearly six decades and has served to add value and positively impact the lives of all its stakeholders.
ABC Finance Company PLC (herein after referred to as ABC) started operations as a private limited liability company in the hill capital, Kandy in the year 1967.
ABC is among the top 35 corporate entities in Sri Lanka consecutively for the last 12 years. As per the annual report of the company for the year 2014/2015, currently ABC employs 1244 employees, has a distribution reach of 87 branches and serves 124,917 customers.
The core business of ABC is the finance leasing business whereas they also provide financial services like hire purchase, operational leasing, small and medium enterprise.
The leasing business of ABC focuses mainly on automobile leasing (secured loans) and ranges across all vehicle categories. ABC is offering a range of financial solutions to many customer groups, but