Are state banks performing their national duty, asks President

23 June 2018 07:01 am - 25 - {{hitsCtrl.values.hits}}

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President Maithripala Sirisena expressed reservations yesterday over the huge profits recorded annually by state banks established to serve the local industries, the agriculture sector and save the rural people from loan sharks.

He questioned whether the state banks served the purported objectives laid down when they were established by collecting 100% profits or more annually.

Delivering the keynote address at the launching of the ‘Entrepreneurs Paradise Loan Scheme – Enterprise Sri Lanka’ under the ‘Gamperaliya’ Rural Development Project at the BMICH last afternoon, President Sirisena went onto say that time was right to carry out a survey to determine the contribution that had been made by state owned commercial banks to expand and develop the rural economy and domestic industries.

“One may ask whether the huge profits collected by the state banks go to cover government expenditure or to the people. My opinion is that 50% of profits must be allocated as state revenue and normal banking services and the remaining 50% must set aside to facilitate the local industries. It is understandable if and when private commercial banks provide their services solely on profits. But a state bank has a national duty to perform by helping the local industry, increase exports and help generating employment because state banks have been established to achieve those noble objectives. We in many instances in the past have discussed about the huge profits make by state banks,” President Sirisena stressed.

President Sirisena said the assistance that must come from state banks to bring down unemployment, motivate local entrepreneurs, improve exports and develop the rural industry are being discussed widely in many a forum and among banks themselves, intellectuals and bankers. In those discussions, it has been revealed that there were about 100 loan schemes to help local entrepreneurs. It was also mentioned in those interactions that the knowledge among the people on banking services and products were low.

"That is why the Finance Ministry and Public Enterprise and Kandy City Development Ministry has launched this highly ambitious joint programme, ‘Entrepreneurs Paradise Lon Scheme – Enterprise Sri Lanka’. This programme has introduced 15 loan schemes selected from among 100 loan schemes,” President Sirisena stressed. (Sandun A Jayasekera)

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Comments - 25

Upali Sannaggara Saturday, 23 June 2018 07:25 AM

Sir you are not performing your national duty. You have failed and continue to suppprt the goverment you yourself said robbed the Central Bank 2 months after the elections. If yo cannot due this duty please resign.

Leel Saturday, 23 June 2018 09:47 AM

First tell us are you performing your national duties as you promises the election.

Manel Saturday, 23 June 2018 07:44 AM

You are questioning bank's duties without kicking out Central Bank robbers. All politicians in SL are dirty crooks.

Sammy Saturday, 23 June 2018 11:47 AM

What are you blabbering! Have not the Central Bank scamsters been already removed?

Bimal Saturday, 23 June 2018 07:44 AM

Mr. President, state banks should be listed in the stock exhange for transparency and better governace. Simply raise a quantum of token capital by issuing 10% to genaral public. Govrnment could hold 90%. This will enable information flow for professionals to question their business practices, and your valid observation that these banks do not focus on SMEs will be proven.

naga Saturday, 23 June 2018 07:46 AM

a very big yes if not how will you and your bunch of MPs get all the perks and salary tax free

Account Holder Saturday, 23 June 2018 07:53 AM

National duty, he, he, heee!!! Supposed to make Billions in net profits but, deduct Rs. 25/- each month from poor savings account holders if the account has a small balance.

saranga.walimuni Saturday, 23 June 2018 07:57 AM

Here you go again Economist talking

MORRIS Sunday, 24 June 2018 07:48 PM

TOTAL OF STATE BANKS' PROFIT GO TO THE TREASURY EXCEPT CORPORATE TAXES AND SMALL PERCENTAGE FOR INTERNAL RESERVES. THE BANKS CANNOT GO ON LENDING RECKLESSLY AND ANYWAY THE SO CALLED PROFITS COME BACK FOR DEVELOPMENT. PRESIDENT SHOULD NOT MAKE COMMENTS OF THIS NATURE WITHOUT GETTING CORRECT FACTS.

Lanka Perera Saturday, 23 June 2018 08:09 AM

Should all state sectors run at a loss ?

Jude Saturday, 23 June 2018 08:14 AM

If you do according to this man, then the State Banks going to Collapse!!! First someone advise him how commercial banks operate!! There's Ratios to adequate Capital to all risks!!!

Jude Saturday, 23 June 2018 08:37 AM

Can you define what is State's banks National Duty is!!???? Banks are reponsible for it's Stakeholders!! Namely the Govt.(CBSL), Depositors, etc. And banks have a fiduciary duties!! If government wants to make HIGH RISK lending to industries and farmers!!! Govt must guarantee loans issued from Sanasa Bank or NDB !!!

Kingsley Wijesinhe Saturday, 23 June 2018 08:40 AM

His Excellency is quite right. State banks are certainly not doing their duty by the people. They are only interested in making huge profits. While they pay low interest on deposits, they charge very high interest on loans. They also ask for over 100% collateral before giving a loan. In that case, interest should be very low, as there is no risk for the bank.

Ozman Saturday, 23 June 2018 08:41 AM

Is your Cabinet performing the duties. Are you performing your duties by bringing justice and punishing those involved in the bond scam.

Anil Saturday, 23 June 2018 08:54 AM

Not only state banks, but also state hospitals and Sathosa are not fullfilling national duties, all Member of parliments should be asked to obtain services from state hospitals etc.. to make them to realish the standard of the Gov. Institutions.

TONY Saturday, 23 June 2018 08:55 AM

MR PRESIDENT PLEASE WORK WITH ENTIRE CABINET. DO NOT IDENTIFY YOURSELF AS AN EXCEPTIONAL PERSON AND CRITICIZE OTHERS. YOUR RESPONSIBILITY IS TO WORK JOINTLY AS 1 GOVT

Jaya Saturday, 23 June 2018 08:56 AM

Public Banks also do the same as the politicians. They do robberies to maximize their wealth from hard earned money and assets of the peoples of this country

Ajith Saturday, 23 June 2018 09:41 AM

Don't show your ignorance, You are asking banks to spend money as for you fancy.

Chams Saturday, 23 June 2018 09:54 AM

What have you been doing about it all this time?

Waco Saturday, 23 June 2018 09:57 AM

My3, you can not impress people any more. You missed the Bus completely . What is left for you - is to resign, because you, yourself failed miserably to perform your nation duty.

perera Saturday, 23 June 2018 10:13 AM

well said tony -he is the head of the cabinet and is talking rubbish why not first distribute the tax free perks enjoyed by him and all the other MPs to the poor without having lavish weddings and parties in five star hotels

Nadaal Saturday, 23 June 2018 10:57 AM

At last u said something truthful. Our state banks rob their customers at every turn. Innocent masses who have bought on lease Lorries, buses, dumpers and other vehicles are very much suffering due to the unfair practices of the state banks

Jaya Saturday, 23 June 2018 11:24 AM

There are some classic examples in state banks how they makes profits. Some of the banks capitalized the loan repayment delay penalty charges and change the interest on it.

Waco Saturday, 23 June 2018 04:10 PM

How of those Rouges have to sent to the "Avichiya " upto now. You said this during the last election and it is part of your national duty.

vithura Saturday, 23 June 2018 05:25 PM

Banks as an economic undertaking perform an important role in the functioning of the economy and make profit in the process of doing so. There is no such thing as 'national duty' that is stated in the memorandum or the articles of association of any bank, unless it is a 'Blood bank'.

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Are state banks performing their national duty, asks President

Comments - 25

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