Sealed Doors — Update

CEAT Kelani Holdings Managing Director Ravi Dadlani (right) and Lanka Ashok Leyland CEO Umesh Gautham exchange the OEM agreement

The Central Bank on Friday evening suspended the operations of Pramuka Savings and Development Bank Ltd with immediate effect.rn

rnldblquote The suspension will be effective for a maximum period of 60 days during which the Bank Supervision Dept. of the Central Bank will conduct a detailed examinations of Pramuka to ascertain the true condition of the affairs of the bank,
dblquote the Central Bank said in a release.rn

rnThe Monetary Board will within the period of 60 days determine whether the licenced specialised bank could be allowed to resume its business, the statement said.rn

rnWith deposits of around Rs. 2.3 bn, Pramuka has run up bad debts to the tune of 81 percent of its total assets at the time of its predicament.rn

rnBut Pramuka has been operating on the fringes of the monetary laws for sometime, despite several directives. The Banking Supervision Dept. rapped the bank on many occasions and issued around five directives ranging from capital adequacy, liquidity financial statements and so on.

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