2 big Chinese Banks in fund talks with Com Bank
View(s):Commercial Bank (Commercial) which recorded a profit before tax of Rs. 17.144 billion for the 12 months ended December 31, 2015, is in discussion on funding assistance with two Chinese Banks, after it went on a delegation early last month with the Centra Bank (CB) Governor Arjuna Mahendran. ”They have requested for appointments to discuss on setting up funding lines for major development projects, etc,” the bank’s Managing Director/CEO Jegan Durairatnam told the Business Times.
In another development, the bank is ready to set-up the Commercial Bank of the Maldives next month, he said. “We own 55 per cent in this entity (now a joint venture) and Tree Top investment in the Maldives own the balance,” he added. In September 2015, the bank received regulatory approval for the establishment of a fully-fledged Tier II Bank in the Republic of Maldives. The bank also received license to operate a fully owned Money Transfer Operation in Italy recently.
Commercial saw a post-tax profit of Rs. 11.903 billion for 2015, a growth of 6.47per cent despite lower margins, reduced capital gains and higher tax commitments. The bank’s loan book increased by Rs. 102.684 billion or 25.33 per cent to Rs. 508.115 billion, a media statement said adding that this is the first time that the bank’s loan book achieved a net growth of more than Rs. 100 billion in a year. ”Total assets grew by a noteworthy Rs. 84.195 billion or 10.58 per cent over the 12 months to Rs. 879.805 billion at December 31, 2015. Deposits from customers increased by Rs. 94.740 billion at an average of Rs. 7.9 billion a month to Rs. 624.102 billion at the end of 2015, reflecting Year-on-Year growth of 17.90 per cent.”