Recoveries and defaulters turning a new leaf in good economic conditions drove Bank of Ceylons profits up in 2003, though a gap in its pension fund is dragging profits down.
As recoveries gathered pace, its Non-Performing Asset (NPA) ratio fell to 13 percent in 2003 from 15 percent, while outstanding gross NPAs fell to Rs. 17.1 bn from 19.9 bn and interest in suspense also to Rs.
15.6 bn from Rs. 17.4 bn.rn
rnldblquote We only re-classify a defaulting client as a performing one after six months of repayments,
dblquote says a cautious General Manager S N Palihena in an interview with Lanka Business Online.rn
rnldblquote But better economic conditions are helping our customers.
rnA new provision of Rs. 2.8 bn again made in respect of older loans, saw its provisions remains at Rs. 12 bn. Now the banks net exposure only Rs. 5 bn.rn
rnThe bank has Rs. 13.8 bn in net assets, allowing it to meet Central Banks capital adequacy standards.
But the balance sheet may be better than it looks,