Seylan Bank to get new Chairman
Seylan Bank will get a new chairman next week, according to sources close to the bank. The bank, on the back of posting Profit after Tax reaching Rs. 720 million, for the three months ended 31st March 2016, a per cent increase over the Rs. 691 million reported in the corresponding period of 2015, will bid adieu to its current chairman, 70-year old Nihal Jayamanna next week, in line with good governance practices of the Central Bank which requires directors over 70 years to step down. State entities – Bank of Ceylon, EPF, ETF and Sri Lanka Insurance which collectively owns 35 per cent in Seylan will suggest their nominee, who according to these sources is a former chairman of a large commercial bank. They have called for an Extraordinary General Meeting (EGM) and will also propose to appoint new board directors, sources said.
Presently the state entities are in dispute with other shareholders pertaining to the new appointments. Seylan’s Net Interest income increased from Rs. 2,805 million to Rs. 2,939 million, a 4.8 per cent increase for the three months ended 31st March 2016. Net fee and Commission income increased 23.6 per cent from Rs. 562 million to Rs. 695 million during Q-1 2016. The bank reported a net credit growth of 4.27 per cent with net advances growing from Rs. 193,103 million to Rs 201,350 million during Q-1 2016, a Seylan media release said. “During Q-1 2016, the bank grew its deposit base from Rs. 224,525 million to Rs. 225,445 million. The bank’s low cost deposit base comprising current and savings accounts (CASA) stood at 36.9% of the total deposit base as at end March 2016.”