July 31, 2008 (LBO) – Sri Lanka’s Nations Trust Bank (NTB) said June quarter net profit rose 54 percent to 141 million rupees from a year ago, with a sharp increase in specific provisioning for bad loans. Gross income went up 34 percent to nearly 3.3 billion rupees, the bank said in interim results released Thursday.
Net profit for the first half went up 48 percent to 285 million rupees from the same period last year.
Net interest income for the quarter ended June 30, 2008 rose 42 percent to 695 million rupees.
Interest income rose 34 percent to almost 2.9 billion rupees while interest expenses rose 31 percent to nearly 2.2 billion rupees.
While general provisioning for bad loans in the quarter fell, there was a sharp increase in specific provisioning, which shot up 284 percent to 138 million rupees.
“Specific provisions for the period include certain prudential provisions made on account of several customer exposures over and above the provisioning policy of the bank which is more stringent than the guidelines of the Central Bank,” a note to the accounts said.
It also said the bank is planning to raise a billion rupees by issuing through a private placement 10 million Unsecu