FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post
Poll

Can there be another Covid-19 wave in Sri Lanka?

 
 
 

View results

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer

Latest topics

» AMF will reach its high again?
by Equity Win Today at 7:49 pm

» EAST WEST PROPERTIES PLC (EAST.N0000)
by SAGA Today at 7:10 pm

» Browns price down
by Dilip Today at 6:41 pm

» LLUB=BULL Chevron Lanka Lubricant Target Price Rs 150..
by samansilva Today at 5:10 pm

» DVP යනු කුමක්ද? Explained
by kanishkaecomm Today at 3:45 pm

» Concened Investor writes to CSE regarding new DVP
by God Father Today at 2:00 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Mr. X Today at 1:15 pm

» Colombo Stock Market poised for growth - Webinar
by dayandacool Today at 12:43 pm

» DVP - හදුන්වාදීම කොටස් වෙළදපලේ අධිකාරීන් ඔබට පැහැදිලි කරන්න සූදානම් - කතාකරන්න අන්ක.මෙන්න
by Mr. X Today at 9:35 am

» No static policies hurting SL
by dayandacool Today at 2:41 am

» Investing in Sri Lanka in ‘The New Normal’ - Nimal Perera
by CHRONICLE™ Today at 12:43 am

» Daily Foreign Transactions update
by Pradeep90 Yesterday at 9:01 pm

» HATTON NATIONAL BANK PLC
by judecroos Yesterday at 8:55 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by dulans Yesterday at 8:35 pm

» Directors' Dealings 18/06/2021
by SAGA Yesterday at 7:28 pm

» Top Foreign Tradings today - 18/06/2021
by SAGA Yesterday at 7:00 pm

» SOFTLOGIC CAPITAL PLC (SCAP.N0000)
by SAGA Yesterday at 4:40 pm

» NIFL going up
by SAGA Yesterday at 4:19 pm

» L B FINANCE PLC (LFIN.N0000)
by KILLER99 Yesterday at 1:51 pm

» LOLC HOLDINGS PLC (LOLC.N0000)
by SAGA Yesterday at 12:57 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » State Bank faces semi privatisation

State Bank faces semi privatisation

Go down  Message [Page 1 of 1]

1State Bank faces semi privatisation Empty State Bank faces semi privatisation Sun Sep 01, 2013 3:43 pm

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
By Bandula Sirimanna

* Bank employees opposes move to sell shares to private sector or individuals

Semi-privatisation and a share issue either through the public or private entities to divest nearly half the bank’s capital, are on the cards for the debt-ridden People’s Bank, the 52-year-old state bank, amidst dire warnings from employees to the management against privatising the bank under the cover of restructuring, the Sunday Times learns.

A senior bank official, however, denied there were moves to privatise the institution. “The bank capital of Rs. 50 million has been gradually infused with more money from the Government. From 2004 to 2008, the Government injected upto Rs 7.1 billion in capital infusion. There are no plans to privatise the bank or raise new capital,” the official, who declined to be named, told the Sunday Times yesterday.

The Sunday Times, however, learns that the legal draftsman is preparing amendments to the People’s Bank Act No. 29 of 1961 to clear the legal path to these changes and these will be forwarded to the Cabinet for sanction before presenting them to Parliament for approval.

A senior government official, who spoke on condition of anonymity, said the Government was considering retaining 51 per cent of share capital and divesting 49 per cent either through a private placement or an Initial Public Offer (IPO) share issue with the state possibly retaining management control.

While an IPO offers the public an opportunity to invest in the bank through the Colombo Stock Exchange, a private placement means shares would be offered to a selected group of institutional investors and/or individuals without any listing of the shares in the stock exchange.

The bank founded in 1961 by the then Sirima Bandaranaike government to reach out to Lankan entrepreneurs has been facing a cash crunch due to a high default rate of loans and some risky investments as well as heavy overhead expenditure, the official disclosed.
According to Finance Ministry data, the bank’s loan book grew by 32 per cent last year to Rs. 611.4 billion while its pre-tax profit dropped to Rs. 15.2 billion mainly due to higher loan loss provisioning and overhead expenses. The bank’s post-tax profit recorded a modest growth of 4.3 per cent against the 2011 post-tax profit of Rs. 10.9 billion but last year’s profits were also due to lower tax rates, the data showed.

People’s Bank employees have vehemently protested against the move demanding the state authorities to immediately drop the plan of privatisation if there is any such move. Issuing a strongly-worded statement, the Sri Lanka Bank Employees Union said the Government would have to face serious repercussions if it went ahead with the plan to sell the bank to the private sector or to individuals.

The recent report by the parliamentary Committee on Public Enterprises (COPE) revealed that Rs. 31.38 billion had been taken as loans from the People’s Bank by 52 businessmen but had not been paid back so far. The report revealed: “29 persons who have received overdrafts to the value of Rs. 1.18 billion have not settled their debts; 109 more customers who have obtained (a total of) Rs. 5.9 billion too have not settled their debts.”

A union spokesman said similar attempts of previous regimes of the UNP and the Chandrika Kumaratunge-led coalition had been thwarted by bank employees. He accused the Government of trying to privatise the bank under cover of increasing the share capital to cope with high business volumes although Treasury Secretary P.B. Jayasundera had categorically stated, in the past, that the Government did not have any plans to privatise any state-owned bank.

He revealed that Dr. Jayasundara had briefed trade union representatives about possible amendment to the People’s Bank Act at a meeting held recently at the Finance Ministry to discuss the pension issue of state bank employees. But these amendments, Dr. Jayasundara had told top trade union members at the meeting were in relation to the Rs. 8 billion financial aid given by the Asian Development Bank (ADB) since the bank was in a financial crisis, he revealed.
http://www.sundaytimes.lk/130901/news/state-bank-faces-semi-privatisation-60492.html

2State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Sun Sep 01, 2013 6:29 pm

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
by pass our patriotic unions will be a miracle. Rolling Eyes 

3State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Sun Sep 01, 2013 7:09 pm

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
@UKboy wrote:by pass our patriotic unions will be a miracle. Rolling Eyes 
Easypeasy in third world countries, by offering couple of MP, Dy.Minister or PSC member posts to the officials or big chunk to shut their mouths.

4State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Mon Sep 02, 2013 8:55 am

VISA


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
this one of the best moves gov sri lanka could do. govt balance sheet will get stronger. (Less than 50%)

5State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Mon Sep 02, 2013 9:13 am

traderathome

traderathome
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
The Peoples Bank Union is like crabs in a POT....once the HOT gets into them they will die away.....

They are worried about their clout.....after the restructure.

I wish they go for an IPO and gets listed in CSE.

They like to strike even if they get a COLD or a headache.... Smile
TAH

6State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Mon Sep 02, 2013 3:07 pm

rainmaker


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
I do not believe govt should cede more than 51% of the bank that handles the treasury account

That is the sort of nonsense that happens in western countries where all taxpayer collections are banked with a private bank owned by private shareholders.



7State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Mon Sep 02, 2013 3:37 pm

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Peoples Bank problem is not the form of Ownership

The problems are connected with granting loans to crooks on political influence and appointment of wrong persons to managed the Bank

I do not think issue of 49% shares to public will  solve the problem

It will be  a short term solution to present liquidity problem.
Politicians will use poor share holders money also for their personal benefits

So far they have misused taxpayers money They will
use share holders hard earned money also in future



Last edited by D.G.Dayaratne on Mon Sep 02, 2013 4:20 pm; edited 2 times in total (Reason for editing : typing error)

8State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 7:07 am

bullrun

bullrun
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@D.G.Dayaratne wrote:Peoples Bank problem is not the form of Ownership

The problems are connected with granting loans to crooks on political influence and appointment of wrong persons to managed the Bank

I do not think issue of 49% shares to public will  solve the problem

It will be  a short term solution to present liquidity problem.
Politicians will use poor share holders money also for their personal benefits

So far they have misused taxpayers money They will
use share holders hard earned money also in future
Which party would do better according to you or at least have done better in the past?

9State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 7:11 am

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
ALL ARE MORE OR LESS SAME

10State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 9:24 am

bullrun

bullrun
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@D.G.Dayaratne wrote:ALL ARE MORE OR LESS SAME
If we can't think of any good people and if everybody act in the same way what is the use of discussing about those thing? just to excite retailers or what/ I can't understand!

11State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 9:27 am

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
@bullrun wrote:
@D.G.Dayaratne wrote:ALL ARE MORE OR LESS SAME
If we can't think of any good people and if everybody act in the same way what is the use of discussing about those thing? just to excite retailers or what/ I can't understand!
May be persoally deceived by the present regime.

12State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 9:44 am

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
The reasons are
1 Educate retailers and protect them.It will effect stock market in the long run

2 Minimize this type of situation

3.Personally deceived by the present regime as mentioned by ......



Last edited by D.G.Dayaratne on Tue Sep 03, 2013 9:47 am; edited 1 time in total (Reason for editing : typing error)

13State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 9:53 am

bullrun

bullrun
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@D.G.Dayaratne wrote:The reasons are
1 Educate retailers and protect them.It will effect stock market in the long run

2 Minimize this type of situation

3.Personally deceived by the present regime as mentioned by ......
Then what may be the reasons for foreign buying? So far only in this year they have bought more than 18 billion worth of shares. What arguments they have to buy? and what is the advice you give for them?

14State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 10:10 am

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
They do not want my advice

They will do the needful when prices came to expected level

May be present manipulation( if any) to prevent that

15State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 10:32 am

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
@bullrun wrote:

Then what may be the reasons for foreign buying? So far only in this year they have bought more than 18 billion worth of shares. What arguments they have to buy? and what is the advice you give for them?
Foreign Investors view completely different to the local retail investors.

I read in this forum couple of days back as per 30/06/2013 Interim, Top 20 Companies control around 58% of the Market capitalisation of CSE. Top 20 share holders list of those 20 companies, around 75% are Institutional Investors.

16State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 10:40 am

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Most of institutional investors are practically controlled by whom?

Can govt controled institutions take independent investment decision?

That is the main problem of SL stock market



Last edited by D.G.Dayaratne on Tue Sep 03, 2013 10:44 am; edited 1 time in total

17State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 10:44 am

bullrun

bullrun
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@D.G.Dayaratne wrote:Most of institutional investors are practically controlled by whom?

That is the main problem of SL stock market
Are you sure that you are not a member of M..... propaganda team?

18State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 10:46 am

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Laughing Laughing Laughing 

19State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 10:48 am

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
@D.G.Dayaratne wrote:Most of institutional investors are practically controlled by whom?

That is the main problem of SL stock market
Mate all over the world Institutional Investors have good links with the politicos. As a retailer we need to find opportunities and play along the trend of the market. Criticising or moaning won't help to gain from the capital market. If you can earn stay in the game or pack up and invest in other alternative.

20State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 11:34 am

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Mate pl understand me.I use my name given in the Birth Certificate and National ID

I am not a member of any propaganda team

I take full responsibility for any posting made by me


Any i am happy REDBULS agree with me to certain extent

Thanks

21State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 8:10 pm

bullrun

bullrun
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@D.G.Dayaratne wrote:Mate pl understand me.I use my name given in the Birth Certificate and National ID

I am not a member of any propaganda team

I take full responsibility for any posting made by me


Any i am happy REDBULS agree with me to certain extent

Thanks
You come forward and active when the market is in gloomy condition. When the market starts to run you keep quiet and even vanish for few days. But you again start to act when a negative situation comes. You may be either in the clan I guest or a man who fish everyday by making the water grimy.

22State Bank faces semi privatisation Empty Re: State Bank faces semi privatisation Tue Sep 03, 2013 9:28 pm

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
You are entitled for your opinion

What you says not a FACT

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum