Indian Rumba

Merchant Bank of Sri Lanka is believed to be in serious talks with India’s SBI Capital Markets Ltd to expand its corporate banking activity. Merchant Bank of Sri Lanka is believed to be in serious talks with India’s SBI Capital Markets Ltd to expand its corporate banking activity. MBSL has been on a roll over the past few months to spruce up its image including restructuring its balance sheet. The bank shed its top heavy debts by slashing its share capital in half to Rs. 600 mn from Rs. 1.3 bn last year.

But the deal with a ‘foreign tie up’ has been kept under wraps for months, and MBSL said very little in a statement to the Colombo Stock Exchange on Monday.

“We wish to inform you that MBSL is in the process of negotiating to sign a memorandum of understanding with a regional merchant bank with a view to strengthening and expanding capital market activities of MBSL,” a brief statement said.

SBI Capital Markets, fully owned subsidiary of State Bank of India, is tipped to be the winning horse. The MoU between both parties is expected to be signed later this month.

State-run Bank of Ceylon owns 82 percent of MBSL.

MBSL