Getting Better

Ishara S. Kodikara | AFP | Getty Images Sri Lanka Prime Minister Ranil Wickremesinghe, center, speaks to supporters at the prime minister's official residence in Colombo on December 16, 2018, after he was reappointed as prime minister by Sri Lanka's president, the same man who fired him from the job nearly two months ago.

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.