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Two Suitors


Two local investor groups are talking to Peoples Bank to give it a badly needed equity injection while the government is seeking donor assistance for further reforms of the bank.
The bank, which had its capital wiped out due to bad lending practices in the past, has been looking for up to thirteen billion rupees in fresh capital.
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rnPeoples Bank CEO Derek Kelly told LBR that negotiations are on with one or two local parties to explore the possibility of an equity injection.rn

rnThe new management team started looking for new equity after the government refused to bail out the bank for a third consecutive time.rn

rnNegotiations about the possible privatization are at an initial stage while the bank is not expecting the entire capital requirement to come from one investor.rn

rnB.D.O. Binder, a consultancy firm engaged to draft terms of reference to engage a consultant to carry forward the restructuring and help in the privatization process, has submitted its final report to the government.

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