May 24, 2017 (LBO)- People`s Merchant Finance (PMF) had sold its 108-perch property in Colombo 02 to People’s Bank for 1.04 billion rupees in order to help settle debt.
“The funds will be used to strengthen the finance company’s core capital in order to meet minimum capital requirements under the finance companies directive no. 01 of 2011,” the firm said in a stock exchange filing.
“The excess money may also be used for future expansion of PMF and may increase the net interest income and profitability of PMF accordingly.”
The related party transaction was done on normal commercial terms, it said.