The Treasury last issued the letter on March 13 2003, with the hope of finding fresh investors and to allow the bank to continue its normal banking operations.rn
rnSince a top-level restructuring team was brought in over two-years ago, the bank has been able to cut its Rs. 6 bn negative networth to Rs. 2 bn, its Chairman Lal Nanayakkara told Lanka Business Online.
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rnThe bank, which made a Rs. 1.005 bn net profit in 2002, was expected to double its earnings in 2003.
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rnFor the six months to June 30 2003, net profits had touched Rs. 1.15 bn, reversing a Rs. 531 mn reported in the same period last year.
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rnAnalysts are expecting lower interest rates, coupled with renewed private sector credit demand, to swell its bottomline for the fiscal year ending 2003.rn
rnA pile of politically motivated bad loans wiped off around 27 percent of its equity in 1997, and 23 percent of its loans are currently non-performing. rn
rnNanayakkara said a capital infusion of Rs. 8 bn is needed for the bank to meet c