MERC Bank is hoping to expand its loan book by leveraging on DFCC Banks balance sheet.
DFCC Bank, which acquired a 90 percent slice in the trouble MERC Bank for Rs.
600 mn, says they can recoup their investment within the next 18 months.
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rnldblquote We are looking at MERC increasing its loan book by about three to six billion within the next 12-18 months, by leveraging on the strength of our balance sheet, dblquote DFCC CEO and MERC Director, Nihal Fonseka told a news conference on Thursday.rn
rnldblquote MERC will be able to take the business without taking any credit risk because it is a small bank and it cant take significant credit risk. We have ability to use our skills of the customer that the credit risks that are passed on to them is of acceptable quality,
dblquote he says.
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rnDFCCs rival National Development Bank (NDB), is unable to reap the same benefits with its commercial banking arm NDB Bank, until the monetary authorities approve its merger. rn
rnBut credit demand has been s