The Story. Read Below!
HNB is a leading Licensed Commercial Bank of Sri Lanka
Somewhere before 2008 as far back in 2007 their MD/CEO Rajendra Theagarajah led management offered a bigger loan as big as Rs.1.4 billion to an entrepreneur from Galle -Ashok Pathirage - to buy Asiri Hospital Holdings...
(HNB hadn't offered such big loans to anybody in history as per bankers...except for government of Sri Lanka. Also wheny you go to HNB it is very difficult to get a loan for people.Don't know how Pathirage's software company that time went for such a big loan.)
After that he started building a Platinum conglomerate with many hospitals,insurance company and a finance company,stock brokering company and a stake in a top Investment and a development bank - NDB - in the country while also helping a Malaysian Pastor -Vijay - the founder of Gold Quest to pull out Sri Lankan investments little by little.
Today when Theagarajah loose his job when he asked for 5 year extension from Ranee Jayamaha and when she refuses giving only 2 years extension Theagarajah quickly gives his resignation from HNB and Theagarajah gets a quick job at NDB Bank as its CEO.Thanks to Ashok Pathirage from Galle who owns a majority of NDB!
Is this our banking industry. Once Raj Rajaratnam told if he was in Sri Lanka he can easily invite the Judge for Dinner and give a Rs.50,000 cheque and withdraw the case by getting away away from Insider Trading.
Some say similarly in some banks in Sri Lanka if you offer a Bird to the CEO,or Chairman or offered some great gifts and couple of lunches,dinner at exclusive places you can easily get a loan without going for a background check on credit risk and exposure.
References Link for Softlogic IPO Prospectus -Page 6 -
Content - Hatton National Bank PLC Rs.1,400 million (Rs.1.4 billion) Loan with AWPLR+1.5% to Softlogic
Holdings Ltd for the Acquisition of 153,362,050 Asiri Hospitals Holdings PLC Shares (Mandatory offer)
Last edited by Barren Wuffete on Tue Apr 09, 2013 4:22 am; edited 1 time in total