Right On

Merchant Bank of Sri Lanka posted a 74 percent rise in its net profits at Rs 136.4 million for the first nine months of 2005. Merchant Bank of Sri Lanka posted a 74 percent rise in its net profits at Rs 136.4 million for the first nine months of 2005. Close to half the nine months profits came in the third quarter to September making a total Rs. 61.9 million.

Net interest income however grew only by 6.2 percent over the nine months to September at Rs. 317.4 million.

Emerging from its extensive capital restructuring programme which included a share split, the group’s net assets per share as at September 30, 2005 were Rs. 17.31 against to Rs. 0.66 as at September 30, 2004.

MDSL officials hope the positive results would help coax shareholders to vote for a rights issue at an extraordinary general meeting next week (October 18).

The bank is looking to raise up to Rs. 450 million through the rights to settle part of its debt and inject cash into its leasing portfolio, officials said in an earlier interview.

The one for two issue, comes with a Rs. 5 premium for the Rs. 10.

Chief Operations Officer