To develop its long term lending portfolio, Hatton National Bank (HNB)will raise up to Rs. 2 bn through a 5 year debenture issue.
Housing and real-estate will be among the key areas the Bank will focus on building with the fresh funds.
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rnThe issue will also bridge the shortfall created in retiring its previous debenture that expired in June 2003. rn
rnThe issue opens July 4, and offers a fixed interest rate of 10 % or a floating rate tied to the 6 month Treasury Bill rate plus 2 %. rn
rnBank officials say rising confidence in the economy and dropping interest rates is seeing higher borrowing. rn
rnThis has introduced stiffer competition among the banks, scarifying margins to attract more customers. rn
rnThe Bank also hopes to leverage the Internet to grow its business, reducing emphasis traditional branch expansion.rn
rnLaunching internet banking will be in line with its cost reduction strategy and will converge with its lquote anywhere banking platform to create lquote any time bankin