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Conservative Outlook


Peoples Bank however says the Value Added Tax on banks introduced in the budget for this year will add up to over Rs. 600 mn during this financial year.
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rnPeoples Bank posted its highest net profit last year despite providing over Rs. 1.3 bn for possible loan losses.rn

rnThe bank said aggressive deposit mobilisation and controlling costs helped.rn

rnldblquote In 2001 our deposit base grew about one billion a month. We contained the cost income ration also, dblquote says Peoples Bank Chairman, Lal Nanayakkara.

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rnThe banks cost to income ratio although high has been plummeting over the last two years. rn

rnldblquote For us it is about 73% (End 2002), dblquote explains Head of Finance Bertal Pinto-Jayawardena.rn

rnldblquote Our expenses have been reduced. We have reduced the staff. In 2001 we did a redoing of our branches.

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That expenditure is not there in 2002, dblquote says Jayawardene.rn

rnThe bank is keen to strengthen its corporate book and is planning to invest over a billion

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