PB to get a Convertible

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

People’s Bank is likely to get a government capital injection via a convertible bond issue. People’s Bank is likely to get a government capital injection via a convertible bond issue. With private capital ruled out due to the policy of the current government, the Strategic Enterprise Management Agency (SEMA) has to look for other means to inject capital.

People’s Bank has now wiped out past losses.

The bank also has real estate assets, which can boost net assets, if they are revalued.

People’s Bank has been asked to submit proposal to bridge the capital deficit.

The government may accept a proposal to inject capital by a convertible instrument.

It also has real estate and some tier two capital which is not counted until the tier one gap is filled.

“There won’t be sale of shares, but various other options of capital injection are looked at -like bonds, convertible bonds and zero coupon instruments. That will be made known when the plans are approved,” said Mano Tittawella, Chairman, SEMA.

The bank is due to submit their business plan to SEMA by October 15. The final plan wou