Mar 10, 2009 (LBO) – Sri Lanka’s Hatton National Bank group has reported profits of 3,830 million rupees in 2008, down 10.1 percent over the previous year on interest income of 38.7 billion rupees which grew 20.7 percent. Loan loss provisions increased 27.6 percent to 1,159 million rupees, while 259 million rupees was charged for falls in value of investments.
The bank’s non-performing loans were just under 7.0 percent but Theagarajah said 66 percent was covered by provisions, which was ‘one of the highest’ in the industry.
Over the last three years 2.7 billion was shown as outstanding from Kabool Lanka and Lanka Synthetic Fibre Ltd, whose properties which were collateral to loans have been taken over by the state.
“Repeated requests have not yielded any results in receiving compensation due to the Bank by law, on account of these acquisitions,” Theagarajah said.
“We strongly believe that in these times of a financial crunch where high interest rates and scarce capital abound, these monies could be reinvested in our business, paving the way for investing in the future, benefiting not only the Bank but the larger picture in general.
“We do hope the request will be heeded to in the coming year at