Getting Better

The BBB+ (sri) rated People’s Bank has wiped off its negative networth in March, but is still short of Rs. 11 bn to meet minimum capital requirements. The BBB+ (sri) rated People’s Bank has wiped off its negative networth in March, but is still short of Rs. 11 bn to meet minimum capital requirements.

Desperate
for a capital infusion, the bank was earlier being dressed up for a partial
privatisation. But to keep in line with the new government’s anti-privatisation
mantra, the management is now looking for alternatives, with a final report on
it due end Aug.

Nothing is
final, but a financial restructuring on the lines of selling our non-performing
assets to a special purpose vehicle and then issue zero coupon bonds on the back
of our loan loss reserves, is something that we are looking at,

People
s Banks new Chairman
P Amarasinghe told journalists on Thursday.