On Target

Oct 08, 2009 (LBO) – Sri Lanka’s state-owned National Savings Bank (NSB) had exceeded its 2009 deposit mobilization target of 30 billion rupees by the end of the third quarter, a senior official said.

“So far we have achieved 38 billion rupees and we expect it will exceed 40 billion rupees at year’s end,” H M Hennayake Bandara, NSB’s additional general manager, finance told reporters at a media conference.

“Total deposits held by the bank have gone up to 295 billion rupees.”

NSB is Sri Lanka’s largest savings bank. Its only competitor is state-owned Merchant Bank of Sri Lanka (MBSL) Savings Bank, formerly Ceylinco Savings Bank (CSB).

“This year in terms of savings has been a very good year. Obviously what happened at Ceylinco Group in the past few months also worked in our favor,” Bandara said.

CSB, formerly part of the Ceylinco Group, had a run on deposits after the collapse of Ceylinco group subsidiary, Golden Key Credit Card Company, an unregulated finance company.

Golden Key depositors are trying to recover an estimated 26 billion rupees in deposits cash.

Other Ceylinco Group companies also suffered a run on deposits and were rescued by the Central Bank, and