The auditors also drew attention to 2.5 billion rupees of 'Grameen' loans which were in arrears, after the balance sheet date, for periods of three to five months. The bank said there were loans of 3.02 billion rupees under the scheme.
Disbursement and recoveries of the loans were made through related companies: Ceylinco Grameen Credit Co., Ceylinco Grameen Agricultural Credit Co., and Ceylinco Grameen Auto Mobile.
"Subsequent to the balance sheet date the bank has been recovering only100 million rupees a month, short of the repayment amounts due under original arrangements with the customers," the accounts filed with stock exchange said.
Seylan Bank said group net profit for the year ending December 2008 fell 84 percent to 166 million rupees from jus