Seylan grows
Eastman
Seylan Bank has posted an after tax group profit of Rs. 585 mn. in the interim results for the first three quarters of 2009.
Operating under its Central Bank of Sri Lanka appointed new management and with the implementation of the new Strategic Plan, Seylan Bank has launched an aggressive recovery drive to reduce non-performing loans while concentrating on profitable areas and prudently managing expenditure.
Seylan Bank director/Chairman Eastman Narangoda said that the run on deposits experienced by the Bank in December 2008 and 1st Quarter 2009 is now history.
“Since the new Board took over, we have been transparent in all our dealings and have successfully restored investor confidence.
Furthermore the faith and confidence the public, the Sri Lankan diaspora and expatriate workers living and working overseas have in the newly structured Seylan Bank has increased.
This has resulted in the Bank’s deposit base growing substantially. The increase during the past 10 months is Rs. four bn. and it now stands at a record Rs. 104.694 bn.”, he added.
With a Return on Assets (R.O.A.) of 0.71% and Return on Equity (R.O.E.) of 9.29%, the R.O.A. and R.O.E. ratios show an appreciable increase against 2008. The statutory liquid asset ratio also remains healthy and was above 22% as at September 30, 2009.
In September Seylan launched a public share issue (p.s.i.) of 54,290,000 new ordinary voting shares at Rs. 35.00 per share.
Concurrent to the public offer the Bank also placed an additional 32,150,000 ordinary voting shares at Rs. 35 per share with Bank of Ceylon (B.o.C.) and Sri Lanka Insurance Corporation (S.L.I.C.).
The p.s.i. was successful and had to be closed six days earlier since it was over subscribed. The issue brought in an additional capital base of around Rs. 3 bn., which is expected to give the Bank a strong balance sheet and enable future expansion.
As part of its expansion policy, the Bank will soon open two branches in Mannar and Nelliady and two extension offices in Chankanai and Manipay.
Other Seylan Bank directors are R. Nadarajah (Executive Director), Nihal Jayamanne (P.C.), Lalith Vithana, Naomal Goonewardena and Rear Admiral (retd.) B. A. J. G. Peiris. This Board will soon be further strengthened with new directors from institutional investors.
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