Holy Union

Union Bank hopes to issue preference shares to a consortium of new investors, as part of its efforts to re-capitalise.
The consortium led by Sampath Bank plans to inject Rs. 600 mn to prop up Union Banks balance sheet.rn

rnSampath will inject Rs. 150 mn, with the balance split between National Savings Bank and Singapore based Chinkara Group, Sampath Banks Senior DGM, W Bandaranayake told Lanka Business Online.rn

rnThe bail out plan has got Monetary Boards blessings, but the finer details will be presented to the board later next week.rn

rnNSB is keen to take a behind-the-scenes role, which leaves Sampath Bank and the Chinkara Group to play the lead role in Union Banks new management structure.rn

rnldblquote There will be no merger of sorts,
dblquote Sampaths CEO Anil Amarasuriya told LBO early last month adding that both entities will be run separately with Sampath moving out once Union Bank starts making profits.rn

rnBanking analysts speculated of a possible initial public offering to allow