Seylan Bank, struggling after the Ceylinco Consolidated crisis, has returned to stability with a post-tax profit of Rs. 585 million under the interim results reported for the first three quarters of 2009, the bank said adding that new directors will be brought in to further strengthen the board of directors following investments by new institutional investors.
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, the bank said in a statement.
Its chairman Seylan Bank Eastman Narangoda said that the run on deposits experienced by the bank, after sections of its former parent company (Ceylinco) collapsed in December 2008 and the 1st quarter of 2009 is now history. “Since the new Board took over, we have been very transparent in all our dealings and have successfully restored investor confidence. Furthermore the faith and confidence the general public, the Sri Lankan diaspora and expatriate workers living and working overseas have in the newly structured Seylan Bank has increased tremendously. This has resulted in the Bank’s deposit base growing substantially. The increase during the past 10 months is Rs. 4 billion and it now stands at a record Rs. 104.694 billion”, he added.
With a Return on Assets (ROA) of 0.71% and Return on Equity (ROE) of 9.29%, the ROA and ROE ratios show an appreciable increase against 2008. The statutory liquid asset ratio also remains healthy and was above 22% as at 30 September 2009.
Last month, Seylan Bank launched a public share issue of 54,290,000 new ordinary voting shares at Rs. 35 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 (BOC) and Sri Lanka Insurance Corporation (SLIC). The public share issue was successful and had to be closed six days early since it was over subscribed. The issue brought in additional capital base of around Rs. 3 billion which is expected to give the bank a strong balance sheet and enable future expansion, the statement said. As part of its expansion policy, the bank will soon open two branches in Mannar, Nelliady and two extension offices in Chankanai, and Manipay.
The directors of Seylan Bank are Mr Narangoda, R. Nadarajah (Executive Director), Nihal Jayamanne PC, Lalith Vithana, Naomal Goonewardena and Retd. Rear Admiral B. A. J. G. Peiris, all eminent professionals. This board will soon be further strengthened with new directors from the institutional investors. |
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