Cargills Bank to boost SME development
 Cargills Bank PLC will stand out from the rest of the banks in
financing small and medium scale entrepreneurs who are the backbone of
the economy, said Cargills Bank, Managing Director Haris Premaratne.The
bank which was issued a provisional licence shortly before the Central
Bank launched the banking sector consolidation process, opened for
business in Colombo recently.
The bank will branch out to two locations in Colombo this month, one
at Old Moors Street and the other at Maitland Crescent. Cargills Bank
will merge with another company in keeping with the Central Bank’s
banking sector consolidation plan.
“We will expand our operations to the region after merging with a
finance company. The bank is in the process of determining the entity
with which it will merge,” Premaratne said.
Plans are also afoot to expand the bank’s network by setting up
branches in Food City outlets across the country which will enable
payments and acceptance of deposits and foreign remittances.
“Wherever there is potential we will set up operations through Food
City outlets,” he said. The bank plans to launch an Initial Public
Offering (IPO) in three years, in line with the need to list all banks
and finance companies.
The bank has a capital base of Rs. 5 billion. Premaratne said that
there is room for banks to develop due to the growth in the economy.
“We will work in a niche market. Entrepreneurs such as Merril J
Fernando, Mahesh Amalean, Ashok Pathirage, Melwa Group, Hydramani Group,
Phoenix Ventures, Ishara Traders and Lalan Rubbers have invested in the
bank,” he said.
Major shareholders of the bank are Cargills Ceylon PLC, CT Holdings
with a 15 percent stake each. IFC and DEG, a German Government fund,
hold 10 percent each and the rest is held by local corporates.
-LF |
