Jan 31, 2011 (LBO) – Sri Lanka’s People’s Merchant Bank will not take over the assets and liabilities of a finance company whose shares it has acquired but will keep it separate and list in the stock market. PMB, a listed company said in a stock exchange filing that the decision was taken following instructions received from the Central Bank.
PMB owns 99.9 percent of the stock of People’s Merchant Finance, formerly known as Silvereen Finance.
PMB said earlier that it wanted to take-over the firm along with its finance company license allowing the merged firm to raise deposits and lower its funding costs, provided regulatory approval was given.
Finance companies are regulated by the Central Bank.