Amana Bank said its director board is currently in discussions with prospective foreign investors to enhance their capital in line with Central Bank requirements.
The budget 2017 proposed to increase the minimum core capital level from the current 10 billion to 20 billion rupees for all licensed commercial banks.
It also proposed to increase the minimum capital of licensed specialised banks to 7.5 billion and primary dealers to Rs 1.5 billion.
“The Bank is seeking to enhance the required capital as per CBSL requirements,” Amana Bank said in a stock exchange filing.
Amana Bank said such raising of funds, by way of equity would be subject to the approvals of the Central Bank, Exchange Control Department, SEC, CSE and shareholders. “The Bank would make further Announcements to the market, on the progress of such discussions, upon receiving firm commitments.”
The government is of the view that consolidation of financial institutions will be beneficial in the long term and encourages voluntary consolidation especially for the private banks. (LBO)
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