Fitch affirms 5 small and mid-sized Sri Lankan banks

Business

Fitch Ratings Lanka has affirmed National Long Term Ratings on five small and mid-sized Sri Lankan bank - Nations Trust Bank (NTB), -- Pan Asia (PABC), Union Bank (UB), SANASA Development Bank (SDB) and Amana Bank (Amana)

A media statement from Fitch said the affirmations follow Fitch's periodic review of small and mid-sized Sri Lanka banks and are driven by the banks' intrinsic profiles. Fitch expects the banks' capitalisation to remain thin in the medium term, as they are likely to sustain a strong increase in loans. PABC, SDB and Amana infused capital to meet their respective minimum regulatory core capital levels. The impact of the implementation of SLFRS 9 in 2018 could also significantly reduce the banks' capital positions.

The banks' absolute non-performing loans (NPLs) increased in 1H17, in line with our expectations. Fitch believes asset-quality risks are greater for these banks due to their greater exposure to retail and SME customer segments, which we see as more susceptible to economic downturns.

Comments

Still No Comments Posted.

Leave Comments

Most Reviews

June 3, 2025

- 230 - 0

Krishanthi Kumaraswami convicts FR dismissed by SC

The Supreme Court today unanimously dismissed a Fundamental Rights petition filed by five convicts in the 1996 Krishanthi Kumaraswamy abduction, rape, and murder case.

June 6, 2025

- 222 - 0

SriLankan flight grounded in Indonesia

A SriLankan airlines flight has been grounded in an airport in Indonesia due to a technical defect leaving 93 passengers stranded, an official said.

June 10, 2025

- 214 - 0

Sri Lanka loses its membership of the Open Government Partnership

June 5, 2025

- 189 - 0

Alert Moratuwa resident averts railway derailment

The actions of a resident in Egoda Uyana, Moratuwa helped to avoid a possible railway accident involving an office train on the southern coastal line today, the Railway Department said.

June 9, 2025

- 188 - 0

Protest in Colombo over attack on food aid ship to Gaza

A protest is underway at the Liberty Circle following Israeli forces attacking an aid ship to Gaza containing prominent activists carrying food to try and end the blockade of resources by the Israeli Government.

June 5, 2025

- 179 - 0

Former Sri Lanka spinner Sachithra Senanayake indicted

Former international spinner Sachithra Senanayake is set to become the first Sri Lankan cricketer indicted under the country’s Prevention of Offences Relating to Sports Act (Act No. 24 of 2019).