18 December 2014 04:40 am Views - 1468
Seylan’s capitalization levels remain comfortably above the regulatory minimums. Hence, the debenture proceeds are more likely to be utilized to grow the bank’s Rs.140 billion loan book.For the nine months ended September 30, 2014, the bank recorded a credit growth of 2.06 percent. The Tier I Capital Adequacy Ratio (CAR) stood at 13.25 percent and Tier II was at 14.34 percent.
Though budget 2015 did not give any additional support to fast-track the corporate debt market, the capital market expressed satisfaction for not withdrawing any of the benefits granted to it during the previous years – such as the exemption of the Withholding Tax (WHT) on the interest earned on corporate debt.
Seylan was the very first bank to issue Rs.2 billion debentures in January 2013 under the WHT-free environment.
The bank is recovering from asset quality issues during its crisis days and the nonperforming loans ratio as at September 30, 2014 was 9.91 percent, while the industry average being around 6 percent. The bank had an asset base of over Rs.229.3 billion end-September 30, 2014 and the net asset per share was Rs.71.53.