Business Times

Don’t mop up Jaffna deposits

A top banker has urged his counterparts to not only set up shop and mop up the deposits in the Northern peninsula, but plough a reasonable amount of monies into this area to uplift the economic standard of its people if not he warned , the inequalities wll never be bridged.

"There has been a surge to open branches in the North and East. But the idea is not to open shop and mop up all the deposits to be brought to Colombo. There has to be commitment or legislation to ensure that a certain percentage of the deposits are redeployed in those areas. If this does not happen there would not be equitable growth," Rajendra Theagarajah, Managing Director HNB told an investor forum organised by C T Smith Stockbrokers in Colombo recently.

He said that there have been some proposals to the Central Bank with regard to this and that the regulator is very supportive. “Legislation pertaining to this is slated to be passed soon, which is the way forward,” he told the Business Times on the sidelines of the forum. He said that HNB and some other banks are in favour of such a law.

“The government has created the space (by winning the war) for firms to forge ahead with their businesses. Now we (firms) must win the North." He also called banks to go for cash flow based lending instead of the asset backed lending (with collateral) that they are so used to. "If a man has a single cow, he cannot purchase another which could increase his income because he has no collateral to place as security when borrowing from a bank."

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Laugfs smiles with Rs. 2.5 bln IPO
GSP-affected apparel exporters to get relief
Second stage of repayment to Ceylinco Shriram depositors soon
Two banks - BOC, ComBank refused broking licences
Oil drilling in Sri Lanka amidst imminent sale of Cairn India
Fancy wearing this!
Comment - Bank making big profits: At what cost?
Feature - Mobile payments: Central Bank guidelines should not kill innovations
Feature - Sri Lanka Tourism – Beyond number crunching
Warranties:Biggest problem for local PC buyers
SOLD: MTV documentary on human trafficking
Importance of operating business websites in Sinhala and Tamil emphasised
Ferrero appoints Delmege Distributors (Pvt) Ltd
Market on the upward trend as traders anticipate price band lift
Listed firms overvalued ; time to take the chips off the table
Rising market cap – Are we seeing the real picture?
India’s Mahindra & Mahindra acquires South Korea’s Ssangyong Motors
Cost reduction/alternate energy way forward for ceramics industry: Expert
CIC gets agency for Stand-up Wheel Chairs in Sri Lanka
SLT commissions Jaffna leg of A9 optical fibre cable
Chinese and Indian companies dominate Sri Lanka’s mega project business
More from Motorola
Sri Lanka is a 'Cinderella' Story: Fund Manager
Singapore Informatics awarded CISI training provider status
Sri Lankan migrant workers policies praised by Bangladeshi team
SL banks charge high interest rates for 'enormous' profits
LOLC bullish on green power
SriLankan Airlines reduces loss, prepares for the future
HSBC Sri Lanka among world’s Best Internet Banks in Asia: Magazine
Poverty reduction in most parts of the country: CEPA
Lanka Tiles factory back in action
Harvard to enhance intellectual capital in Sri Lanka
Banks report top profits while depositor interests are cut
Acuity bullish on corporate finance/investment in SA
Don’t mop up Jaffna deposits
Large number of participants at Young Spikes contest 2010
Correction
Computers: Once only from the US, now all over the world
Janashakthi claims top spot in insurance sector
Passionate champion of small farmers and big ideas
Huge presence by China at Gem and Jewellery exhibition
North-East farmers to play bigger role in development : Deputy Minister

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution