Setting an appalling precedent, putting the country’s equity market’s credibility on the line, National Savings Bank (NSB) in a newspaper advertisement has said that the bank’s director board has decided not to pay the moneys due on the The Finance-NSB transaction.
It also said that the decision was conveyed to the Treasury Secretary P.B. Jayasundara and the other parties involved in the deal.
According to the advertisement published in leading daily newspapers in the country, NSB has purchased the shares of TFC on a detailed analysis it had done in 2011, planning to buy 8 percent of TFC, when the firm offered 40 million voting shares in a public subscription.
But NSB said, since the issue was oversubscribed, they were not in a position to proceed with their plans.
“Similarly, the bank received an invitation from a stockbroker to purchase voting shares in March 2012. Since the bank had already carried out a detailed analysis in January 2011, the Board Sub Committee on Corporate Lending and Equity decided to re-look at the investment from a strategic initiative point of view with further analysis.”
“Having done a further analysis, a favourable consideration was given to purchase voting shares of TFC, amounting to 10-15 percent,” NSB said in its advertisement.
However, it went on to say that the director board of the bank was of the view that the benefits of this investment is not as strong enough to proceed with, a decision was taken not to make the payment, due on this transaction.
According to stock market analysts, NSB not honouring its due payment sets a very negative precedent and will no doubt result in a loss of confidence towards the country’s equity market.
As they pointed out, now any person investing in the country’s stock market can say, “Well, I thought it was good investment, but not anymore. So I’m not paying.”
Ordinary people had lot of faith in NSB which had a colourful history but this single action has put a black mark in it. People should be careful now. Not only loss of confidence towards the equity market but towards the management of NSB too.
Cynic Thursday, 10 May 2012 05:36 AM
Was this decision on a Supreme Court order?
Prasannajit Thursday, 10 May 2012 05:37 AM
Wonderland. How can you attract overseas investors. To Ashcharyamath deshaya....few more steps
Banker Thursday, 10 May 2012 04:45 PM
its very bad manner
Piyal Perera Thursday, 10 May 2012 05:53 AM
Regulator must back-list NSB
Fusion Thursday, 10 May 2012 09:42 AM
It was NEVER the "Miracle of Asia". That probably goes to Singapore.
Mifaz Friday, 11 May 2012 06:07 AM
Good one. We better lend money from NSB housing loan scheme on a no repay policy.
saman wickramasinghe Thursday, 10 May 2012 05:55 AM
This nonsence talk will not help the stock market. The Govt should sack the NSB board and either reverse the transaction or pay the sellers.
DN Thursday, 10 May 2012 05:26 PM
Actually they should have done is get this money from who is responsible this move.
dila Thursday, 10 May 2012 06:03 AM
both top heads in NSB & Judiciary should resign if they are having ethichs & honor left in them. or we will not have any faith in either places any more.
Wimal_Modawansa Saturday, 12 May 2012 06:07 AM
I voted for a donkey.But,accepying it as my leader>
shantha madawelas Thursday, 10 May 2012 06:08 AM
it means these money is going to write-off....?
D.P.B. Abeygunaratne Thursday, 10 May 2012 09:58 AM
NSB will face same problem ceylinco group faced earlier
Ken Thursday, 10 May 2012 06:15 AM
THIS WILL FURTHER ERODE THE ALREADY AILING CSE.THE SL POLICY MAKERS ARE DOING A BLUNDER....
Sam Thursday, 10 May 2012 07:12 PM
I was thinking of moving my monies to NSB, lucky i didn't did that yet.
Sam Thursday, 10 May 2012 07:13 PM
I dont know how that would work, but good luck.
NM Thursday, 10 May 2012 10:11 AM
We too withdraw money from NSB . No confidence at all.
Tokyo Thursday, 10 May 2012 10:11 AM
Abuddasa kale , Shares thittai kiuwalu,,,
buffaloa citizen Thursday, 10 May 2012 06:43 AM
This is what happens when they are introduced to parliament, banks and even the central bank.
Ranmal de Mel Friday, 11 May 2012 12:58 AM
The whole board of NSB and certainly the Chairman should be removed. Presidential power as its best used
milton Friday, 11 May 2012 01:02 AM
Dinasaur Thursday, 10 May 2012 07:09 AM
From "Miracle of Asia to Debacle of Asia"..
Arvindra Narayan Thursday, 10 May 2012 11:20 AM
This can happen only in Sri Lanka.
Appu Hamy Thursday, 10 May 2012 11:26 AM
Hela Jaathika Abimaneee.....
TruePatriot Thursday, 10 May 2012 07:13 AM
i should buy a house and then put an advertisement in the papers saying I have decided not to pay for it
chris Friday, 11 May 2012 09:25 AM
ALl the kings horses and all the kings men ....(kinsmen).
nsb Thursday, 10 May 2012 11:57 AM
i wonder.................... you might say ........we will not pay cash for fixed deposit at maturity
NSB will be a golden key in future "BEWARE OF UR SAVINGS"
tryer Thursday, 10 May 2012 07:55 AM
Big pain, big gain
Siri Friday, 11 May 2012 10:11 AM
you all are gaming with our money,curse will follow you,it won't consider your level.
Yehiya Thursday, 10 May 2012 07:58 AM
It shows lot of inside stories.
iran Saturday, 12 May 2012 01:19 AM
money form Sampath B must have already gone to Singapore hospital
Dayan Thursday, 10 May 2012 08:09 AM
Is there any punishment for decision makers who authorized to purchase these shares at first place
Kolitha Fernando Thursday, 10 May 2012 08:26 AM
who is responsible for the damages... Sack them all
Kondebandapucheena Thursday, 10 May 2012 08:29 AM
I will withdraw My hard earn money from this bank as soon as I m back in Srilanka,
niyaz Thursday, 10 May 2012 01:18 PM
Another golden key on the cards? This is giving me doubts about the NSB which is not healthy.
Calistus Jayatilleke Thursday, 10 May 2012 01:25 PM
Aha, I will very soon open a Savings Acccount in NSB and then refuse to pay cash!
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