The Monetary Board of the Central Bank has agreed to give more time for John Keells Group and Central Finance Group to reduce their shareholdings in Nations Trust Bank PLC (NTB).
An individual or an entity is allowed to hold up to only 10 percent of a banking institution in Sri Lanka. But it can go up to 15 percent or beyond with special approval from the Monetary Board.
Accordingly, John Keells Group has been granted further time till December 31, 2021 to reduce its shareholding in NTB to 20 percent and then to 15 percent by December 31, 2022.
As at September 30, 2020, John Keells Group held 29.51 percent of NTB as the single largest shareholder of the bank.
Meanwhile, Central Finance Group has been granted further time till December 31, 2021 to reduce its stake in NDB to 15 percent.
As at September 30, 2020 Central Finance Group had 19.74 percent of NTB.