Category: Banking and Finance

Oct 07, 2013 (LBO) – Fitch Ratings said it had confirmed an ‘AA-(lka)’ rating of Sri Lanka’s Sampath Bank (SB) with a stable outlook.“Fitch believes that SB’s asset quality may weaken in 2013, in line with its expectation for the sector, but would continue to compare well against most ‘AA(lka)’ category-rated private bank peers,” the […]

Oct 05, 2013 (LBO) – Fitch Ratings has confirmed an ‘A-(lka)’ rating by Seylan Bank Plc, with a ‘stable’ outlook.An upgrade of Seylan’s rating would be contingent upon its standalone rating moving above the support-driven rating, by way of significant and sustained improvement in asset quality and provisioning while maintaining other credit metrics in line […]

Sept 17, 2013 (LBO) – Fitch Ratings said it had confirmed an ‘AAA(lka)’ domestic rating of Sri Lanka’s Citibank branch (CitiSL) with a stable outlook, amid a contracting loan book.Its loan book contracted by 18% in H113 and 9% in 2012, in contrast to loan expansion in the overall banking system, reflecting CitiSL’s focus on […]

WASHINGTON, September 16, 2013 (AFP) – The World Bank must be more selective and flexible in its work as its faces rising financial constraints and challenges from rivals, according to an internal strategy document seen Monday.The choices include greater risk-taking, cutting back on bureaucracy and adapting commercial-like work with the private sector, moves which would […]

Sept 13, 2013 (LBO) – A ‘AAA(lka)’ rating of Sri Lanka’s Dialog Axiata has been confirmed by Fitch Ratings with a stable outlook.“Dialog’s rating reflects Fitch’s expectations that its 83 percent-parent, Axiata Group Berhad of Malaysia (Axiata), is likely to provide support if required, given operational and strategic linkages between the companies,” the rating agency […]

Sept 12, 2013 (LBO) – Sri Lanka’s state-run Bank of Ceylon will sell 8.0 billion rupees of junior debt to boost regulatory capital. Fitch Ratings said it had given the debt an ‘AA(lka)’ expected rating. The bond is rated one notch below Bank of Ceylon’s national rating of ‘AA+(lka)’ because as regulatory Tier II debt […]

Sept 10, 2013 (LBO) – Bad loans rose across Sri Lanka’s listed banks as economic conditions weakened and defaults in gold loans took their toll, but capital remained strong, and loan to deposit ratios were narrowing, an equities research report said.A report by CAL Research said gross NPL ratios of banks had risen 72 basis […]

Sept 06, 2013 (LBO) – Sri Lanka’s main opposition has warned that several finance companies are taking public deposits without meeting minimum statutory requirements, saying action was needed prevent disasters. “It is well known to the regulators and financial analysts that several finance companies who are still taking public deposits are on the verge of […]

Sept 04, 2013 (LBO) – Sri Lanka’s Sampath Bank is planning a branch in Myanmar and is expecting 20 percent credit growth this year despite tighter economic conditions, a top official said. “Our intention is to have a presence overseas,” managing director Aravinda Perera said. “We are looking at Myanmar.” The bank already has a […]

Sep 02, 2013 (LBO) – Sri Lanka’s commercial bank credit to private borrowers hit a 10 months high in July after a reserve ratio cut, while credit to state and state enterprises also surged, official data shows.Only the April fiscal data has so far been released. State cash flow gaps however can also occur due […]