HNB and related parties snub DFCC Rights Issue at EGM

Banking circles are dismayed and disappointed over Hatton National Bank (HNB) snubbing fellow DFCC Bank's capital raising exercise at Wednesday's Extra Ordinary General Meeting (EGM) in Colombo. 

DFCC's Rs. 6 billion Rights Issue was passed at the EGM with votes by the Bank of Ceylon (BOC), Sri Lanka Insurance Corporation (SLIC), Employer's Trust Fund (ETF) and National Savings Bank (NSB). 

HNB with 15 per cent in DFCC, top businessman, Harry Jayawardena with 8 per cent and investor, M.A. Yaseen with 10 per cent cast voted against the resolution to approve the Rights. 

It was passed with 54 voting in favour and 45 against out of proxies received.

Without this capital DFCC cannot sustain and industry officials were alarmed at how blatantly the smaller entity was exposed to be at the mercy of larger shareholders so they can make a bid for DFCC. (DEC)