Closed Doors

CEAT Kelani Holdings Managing Director Ravi Dadlani (right) and Lanka Ashok Leyland CEO Umesh Gautham exchange the OEM agreement

The bank supervision department of the Central Bank said Parmuka will not do business during this period and the public should await a further communication from the Central Bank.rn

rnCentral Bank said it was making the order in terms of the Banking Act.rn

rnThe Bank Supervision Department of the Central Bank would conduct a detailed examination of the Pramuka Savings and Development Bank during the suspension to find out the true condition of its affairs.rn

rnWithin the period of 60 days the monetary board is expected to determine weather PSDB could be permitted to resume its business.rn

rnCentral Bank officials said the bank had deposits of Rs. 2.3 bn but an estimated 80 percent of loans were overdue or non-performing.rn

rnIn addition to straight deposits the bank also had a five-year instrument called an Investment Bond and a short-term money market product. Whether these fall within the definition of a deposit is not yet known.rn

rnThe Banking Supervision Department had issued several directiv

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