Mar 20, 2013 (LBO) – Sri Lanka’s Sampath Bank has signed up medium term credit facilities from Chinese and French development finance institutions, managing director Aravinda Perera said. The bank grew loans 23.7 percent with the help of foreign finance topping an 18 percent ceiling imposed by the regulator for loans with domestic resources.
Officials said foreign finance helped boost net interest margins and helped avoid taking very high cost domestic deposits.
China Development Bank had loaned the bank 45 million US dollars for 5-years, and Proparco, a French development agency had agreed to give an 8-year 20 million US dollar facility.
“We took the money from China Development Bank,” Perera told an investor forum in Colombo.
“Proparco, we still have a little time, so we are waiting because we are quite liquid right now.”
The bank also raised 62.5 million US dollars from a one-year syndicated loan in March 2012 and it is wrapping up a 100 million dollar loan this week.
In 2012 Sampath Bank group reported profits of 5.2 billion rupees up 25.6 percent from a year earlier (stand alone bank profits were up 31.6 percent to 5.0 billion rupees).