Corporate News
PABC post tax profit grows 32% to Rs. 216m in 2007
PABC Bank has recorded profits in the last four consecutive years.
The Bank's profit in 2004 was Rs.41 million and over the years the
Bank has shown a significant performance culminating with an after tax
profit of Rs. 216 million in 2007 which is more than 5.25 times in three
years.
The profit of Rs. 216 million in 2007 is 32% higher than the profit
recorded for the year 2006. The Bank's performance is attributed to
growth in deposits by 35%, growth in advances by 28% and the additional
capital infusion towards the latter part of 2006 which enabled the Bank
to open eight additional branches in strategic locations.
The Return on Assets has been at a satisfactory ratio of 1.5% for the
Bank. The Bank also recorded a Return after tax on Equity of 16.2%. The
intensive recovery drive of the Bank and credit monitoring has also
helped the Bank to reduce its non performing advance ratio to 7.4% as at
end 2007. All the performance indicators point to an overall
satisfactory and stable growth trend of the Bank.
The Bank is also proposing to pay a dividend to its shareholders at
75 cents per share which will be taken up for approval by shareholders
at the forthcoming Annual General Meeting.
During the year 2007, the Bank has comfortably met all statutory
requirements, especially maintaining the Liquid Asset Ratio and Capital
Adequacy Ratio.
The statutory Liquid Asset Ratio during December 2007 was 23% and the
Tier I and Tier II Capital Adequacy Ratio was 16.13%.
These ratios are well above the minimum requirements.
MD/GM/CEO R. Nadarajah, commenting on future plans said, "We shall
focus on expanding our branch network and increasing the diversified
customer base in the future. We will aggressively market our new product
"Mcredit" to provide "convenience to purchases of goods and services" at
low cost, compared to other modes.
GTH buys SLT stake for Rs. 32 billion
Global Telecommunications Holdings N.V. (GTH), a wholly-owned
subsidiary of Usaha Tegas Sdn Bhd (UT), a Malaysia based investment
holding company acquired 635,076,318 shares representing 35.19% of Sri
Lanka Telecom PLC (SLT) from NTT Communications Corporation for a
purchase consideration of approximately Rs. 32 billion.
As a result of this acquisition, GTH will be required to undertake a
Mandatory General Offer for the remaining shares of SLT which it does
not already hold.
The Board of GTH views the investment in SLT to be a strategic
investment and looks forward to working with the other shareholders of
the Company, including the Government and other Sri Lankan institutions,
to further grow the company and enhance shareholder value.
GTH through common ownership, is affiliated to Maxis Communications
Berhad which is regarded as one of the leading telecommunication service
providers in Asia with operations in Malaysia, India and Indonesia.
GTH and UT will commit resources to support the Board and management
of SLT to create additional opportunities for its employees and to
achieve the overall objectives of the Company.
Delmege appoints Group CEO
The Delmege Forsyth Group of Companies has appointed Dilhan De Silva
as Group CEO, from this month. De Silva joined the Delmege Group in June
2000 as a Non Board Director of Delmege Forsyth and Co Ltd. He was
appointed Group Finance Director as well as Director of all subsidiary
companies within the Delmege Group.
Group Chairman, F. G. N. Mendis said that the Group had hitherto not
had a CEO and De Silva's appointment as Group CEO was a significant
step.
An old boy of St. Joseph's College, De Silva is a member of the
Institute of Chartered Accountants of Sri Lanka, the Chartered Institute
of Management Accountants UK, the Institute of Certified Management
Accountants Australia, and the Society of Certified Management
Accountants in Sri Lanka. An alumnus of Ernst and Young, his working
experience has been multi-faceted.
New limits on interest rates by finance companies
The Monetary Board of the Central Bank of Sri Lanka has further
reduced the maximum interest rates that can be paid by registered
finance companies on time deposits, from April 1.
As per the new revision, the maximum annual rate of interest which
may be paid by a finance company on a time deposit which carries a
maturity period of 12 months or less, shall not exceed the weighted
average yield applicable to 364-day Treasury Bills issued during the
immediately preceding quarter, plus 2 percentage points.
For those deposits which carry a maturity period of more than 12
months, the interest rate may not be more than 4 percentage points over
the weighted average yield applicable to 364-day Treasury Bills issued
during the immediately preceding quarter. In the case of savings
deposits, the maximum annual rate of interest should not exceed the
weighted average yield applicable to 91-day Treasury Bills issued during
the immediately preceding quarter, less 1 percentage point.
New GM at Indra Finance
Prasad Edirisinghe, an experienced financier who has served the
financial industry for nearly twenty-five years has joined Indra
Finance, the financial arm of one of Sri Lanka's leading vehicle
importers and dealer Indra Traders as their new General Manager to
strengthen its activities in the field of finance and leasing islandwide.
Edirisinghe, an old Trinitian is a member of the Institute of
Management of Sri Lanka. Before joining Indra Finance he served in the
senior Management field of LB finance for nearly 13 years and at Central
Finance for five years. |