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Indian Rumba

Merchant Bank of Sri Lanka is believed to be in serious talks with India's SBI Capital Markets Ltd to expand its corporate banking activity.
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Merchant Bank of Sri Lanka is believed to be in serious talks with India's SBI Capital Markets Ltd to expand its corporate banking activity. MBSL has been on a roll over the past few months to spruce up its image including restructuring its balance sheet.
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The bank shed its top heavy debts by slashing its share capital in half to Rs. 600 mn from Rs. 1.3 bn last year.

But the deal with a 'foreign tie up' has been kept under wraps for months, and MBSL said very little in a statement to the Colombo Stock Exchange on Monday.

"We wish to inform you that MBSL is in the process of negotiating to sign a memorandum of understanding with a regional merchant bank with a view to strengthening and expanding capital market activities of MBSL," a brief statement said.

SBI Capital Markets, fully owned subsidiary of State Bank of India, is tipped to be the winning horse.

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The MoU between both parties is expected to be signed later this month.

State-run Bank of Ceylon owns 82 percent of MBSL.

MBSL

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