ETI Finance and Swarnamahal Financial placed under CB watch

• CB to appoint panel to manage affairs of the firms with immediate effect
• Withdrawal of maturing deposits restricted and will be renewed for further 6 months 

The financial arms of the ETI Group, ETI Finance Ltd and Swarnamahal Financial Services PLC were subjected to temporary regulatory action by the Central Bank yesterday in view of the financial status of the companies.

The Central Bank said that due to the weak financial performances of the two companies, the decision was taken by the Monetary Board this Monday to safeguard the interests of the depositors and other creditors of the companies, and to safeguard the financial system.

A panel will be appointed to manage the affairs of both companies with immediate effect, while the depositors will be restricted from withdrawing maturing deposits and such deposits will be renewed for a further six months, while payment of interest on deposits will be continued as per the agreed terms and conditions.

The Central Bank also said that it will facilitate suitable investors to invest in the company according to the applicable laws and regulations, if the ETI Group can finalize negotiations with prospective investors.

News reports recently said the group would have found an international investor.

The Central Bank said that it is taking further measures to closely monitor the operations of finance companies to protect 
depositors’ rights.