Category: Banking and Finance

Central Bank left key interest rates unchanged on account of the high liquidity in the financial system at present. The decision came after its monthly policy meeting on Wednesday evening.rn rnMeanwhile, Central Bank has decided to absorb a part of this liquidity gradually through a longer-term absorption under its active open market operations window.rn rnIn […]

The Supreme Court on Monday gave Central Bank 14 days to re-suspend Pramuka Banks license to facilitate restructuring.The Court concluded that interested parties could not restructure the bank without its license as per the Banking Act.rn rnCentral Bank officials requested 14 days to prepare a fresh suspension order, until when Pramuks license will remain cancelled. […]

Supreme Court on Friday refused to take up Central Banks appeal on the Court of Appeal decision on Pramuka Bank.The Central Bank sought to stay the Appeal Court decision without serving notice on the depositors or their counsel.rn rnThe case will be taken up on Monday, after Central Bank has served notice on depositors counsel.rn […]

National Development Bank on Thursday acquired Zurich Insurance Companys 58.44 per cent stake in Zurich NDB Finance Lanka endash the holding company for Eagle Insurance, at Rs.143.00 a share or close to Rs. 1.5 billion.Through the deal NDB will hold an 87.2 per cent direct stake in Eagle Insurance. rn rnThe deal also ends intense […]

Capital Development & Investment Co (CDIC) plans to come out with a Rs. 1.5 bn rights issue to pay for its acquisition of Eagle Insurance.NDB on Thursday bought out Zurichs 58.44 percent stake in Zurich NDB Finance Lanka (the holding company of Eagle Insurance) through its subsidiary CDIC.rn rnCDIC coughed up Rs. 1.5 bn at […]

Bus leasing specialist, Peoples Leasing, raised another Rs. 300 mn via securitisation paper for its general business expansion.First Capital Markets, the debt-raising arm of the First Capital Group, placed the four-year instrument at an average cost of 12.5 percent to the issuer.rn rnldblquote Rates were tiered according to the risk profile of the assets. The […]

Hattion National Bank, Sri Lankas largest privately held commercial bank, had its long-term SL A national rating, put on a ratings watch by Fitch Ratings Lanka on Wednesday.This rating action follows the ongoing review by FRL, and reflects a weaker capital position, given the significantly increased levels of reported NPLs. rnThe increase was largely due […]

The six Regional Development Banks are pooling their efforts to make low interest capital infusions into the rural economy. On offer are low interest rates starting at 9%, easy repayment schemes and loans on individual skill and not physical collateral.rn rnThe operation, a brain child of the Minister of Rural Economy, will also seek to […]

The Appeal Court in its verdict at Wednesday mornings hearing has quashed Central Banks decision to liquidate Pramuka Bank.Court has also asked the regulator to explore other options to revive the Bank through powers available under section 76 of the Banking Act and also reconsider proposals made by the Depositors Association with the aid of […]

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.rn rnThe issue will also bridge the shortfall created in retiring its previous debenture that […]

Shareholders of the troubled MERC Bank have agreed to sell up to 90 percent of the company to DFCC Bank for just under Rs. 60 mn.MERCs shareholders will sell their Rs.10 share for Rs. 2.65, effectively pocketing Rs. 59.6 mn in the process.rn rnEconomic Reforms Minister, Milinda Moragodas family is currently the largest shareholder commanding […]

The Mahapola Trust Fund could pursue legal action against the Presidents Fund to recover over Rs. 1 billion due since 1997. Mahapola Trust officials claim the delay in payment has cost them an estimated Rs.200 million in interest income. rn rnReturns from the Trust, funds monthly allowances to over 7000 students, this number now expected […]