Peoples Bank has shortlisted six consultancy firms to carry forward its restructuring plan.
The government wants to commercialise the bank as a single unit or split the bank into three viable sub-units.rn
rnThe six firms have to come up with proposals by mid-June, spelling out how they plan to roll out the banks restructuring models.rn
rnFirms vying for the job include Deloitte and Touche from India, PricewaterhouseCoopers from Indonesia, Ernest & Young from Colombo, and KPMG Ford Rhodes Sri Lanka, with expertise from its international offices.rn
rnPeoples Bank is targeting a local consortium for its re-capitalisation exercise. The bank needs Rs. 13.5 bn to cover Rs. 6 bn past losses and bring its Tier I capital in line with local standards.rn
rnThe bank is saddled with politically motivated non-performing loans to the tune of Rs. 23.105 bn. rn
rnBut nearly 40 percent of this portfolio is proving difficult to recover, as they were lent to private entities with political patronage. rn