VRS Hit

July 28, 2011 (LBO) – Sri Lanka’s Seylan Bank group lost 303.9 million rupees in the June 2011 quarter against 311 million profits a year earlier hit by a 700 million rupee voluntary retirement charge. The group said it made a loss of 4.79 rupees per share.

Seylan Bank group said interest income grew 8.4 percent to 2.97 billion rupees and interest expenses fell at a faster 9.3 percent to 1.97 billion rupees. But net interest income also narrowed 10.7 percent to 1.80 billion rupees.

Group performing loans and advances rose 8.9 percent to 76.3 billion rupees by end June from December 2010.

Group fee income rose 37 percent to 672 million rupees, with forex and unspecified other income also growing.

The bank said personnel costs fell 3.0 percent to 724 million rupees.

Loan loss provisions also fell 24 percent to 126 million rupees. Non-performing loans fell in absolute terms by 8.4 percent to 23.5 billion rupees.

The bank said the regulator had given an exemption on end December 2010 provisioning requirements for bad loans related to Golden Key Credit Card Company and Ceylinco Homes International.

Seylan was part of Sri Lanka’s Ceylinco group which was taken under th