Technically insolvent Peoples Bank, kept its place in the Billionaires Club for the second year running, after providing a hefty Rs. 2.288 bn for bad debts in 2003.
The state-run bank, which had its capital wiped off due to past politically motivated loans, saw its net profits jump 54.7 percent to Rs. 1.555 bn over Rs. 1.005 bn reported in 2002.rn
rnProfit from operations climbed to Rs. 1.55 bn from Rs. 787 mn in 2002.rn
rnThe banks revenues for 2003 slipped one percent to Rs. 24.360 bn from Rs. 24.601 bn.rn
rnPeoples Bank carries a Rs. 2 bn negative networth and is presently operating on a fresh lquote letter of comfort from the Treasury. But it needs Rs. 12 bn in fresh capital to meet Central Banks capital adequacy requirements.rn
rnThe banks board has set a June 2005 deadline to secure the funds, but the process is far from the finishing line as consultants, PricewaterhouseCoopers have not finalised the information memorandum. rn
rnThe consultants will put together key information, which w