DFCC gets Merc Bank

DFCC bank plans to offer more commercial banking products to its customers once it acquires a small commercial bank.
DFCC says they will not merge operations with troubled Merc Bank when they take up a significant controlling stake in it within days.rn

rnAlthough DFCC does not plan to merge the Merc Bank business with its own though they expect the operation to give them a number of new income streams from operations ranging from foreign exchange to lending for working capital.rn

rnldblquote An entity that could be controlled and managed to push out other banking products that all our customers need through that vehicle,
dblquote says Nihal Fonseka, CEO, DFCC Bank.rn

rnldblquote And as a result of it, we will get income streams for effectively the same risk or for a very little incremental risk,
dblquote he explains.rn

rnDFCC bank says offering new services and cross selling products to its existing 9000 customers could also improve margins significantly.rn

rnldblquote Merc is not a big ban