Features

New entrant Cargills Bank already in merger talks

01 Jul 2014 - {{hitsCtrl.values.hits}}

argills Bank, which officially opened its doors to the public yesterday, said it is currently negotiating with a company engaged in finance and leasing businesses under the finance sector consolidation process set in motion by the Central Bank.

“We are now looking at a finance plus leasing company. We are confident that we can merge in the near future—within the timelines provided by the Central Bank,” Cargills Bank Managing Director/CEO Harris Premaratne said.

That plan is still intact and soon you’ll be able to see banking outlets at selected Cargills supermarkets

In a bid to reduce the systemic risks stemming from a bloated finance sector, the Central Bank at the beginning of this year announced a consolidation plan encouraging larger finance companies and banks to merge with smaller ones.

Cargills received a provisional commercial banking licence in 2011 and a fully-fledged licence in the early part of this year.

The bank, with an initial capital base of Rs.5 billion, currently has its main branch in Bambalapitiya and plans to open up two more branches before the end of this month within Colombo.

“We are currently working on our IT system and once it is in place, we will be looking at expanding to outstations in the latter part of this year,” Premaratne said.
He also stressed that the earlier plan to set up Cargills Bank outlets at Cargills supermarkets is still on.

“That plan is still intact and soon you’ll be able to see banking outlets at selected Cargills supermarkets.”

Cargills (Ceylon) PLC has the largest supermarket chain in the country with over 200 outlets.

Cargills Bank, which was earlier named as Cargills Agriculture and Commercial Bank, hopes to focus on developing small entrepreneurs while being engaged in other more conventional commercial banking activities.

“Developing the small entrepreneurs is our ultimate goal. So, the emphasis would be on SME banking. We are also planning to finance the small suppliers to Cargills supermarkets,” Premaratne said.

EPF (Employees’ Provident Fund) is also actively negotiating for a stake in the bank

Promoters Cargills (Ceylon) PLC and CT Holdings own 15 percent each of the bank, while International Finance Corporation (IFC) and German Development Bank DEG own 10 percent each.

Meanwhile, the big local business houses such as MAS, MJF Group, Softlogic, Melwa Group, Hirdaramani Group, Phoenix Ventures, Lalan Rubber, Ishara Traders and Abans have also invested in the bank.

“About 3 percent of the bank is with the employees. Currently we have about 150 employees,” Premaratne noted.

“The EPF (Employees’ Provident Fund) is also actively negotiating for a stake in the bank,” he added.

Features

New entrant Cargills Bank already in merger talks

That plan is still intact and soon you’ll be able to see banking outlets at selected Cargills supermarkets

EPF (Employees’ Provident Fund) is also actively negotiating for a stake in the bank

Most Popular Articles

Struggling Pizza Hut chain to be sold for $2.7bn

Iran war casts fresh shadow over Sri Lanka’s recovery

‘Two leaves and a bud’ becoming fiction as climate change hits tea: Dilmah Chief

Middle East conflict puts global spotlight on Colombo Port, World Bank tells government

Market stages strong recovery as ASPI surges over 740 points on renewed buying interest

Early rally fades as profit-taking leaves market mixed

Latest News

Rohitha Rajapaksa leaves CCIB after five-hour statement

In Colombo, Bangkok this week, India and Pakistan met again for track 2 talks

Court of Appeal enters digital era with historic first E-Filing case

FIFA suspends Nepal over third-party interference

Media will not survive if they don’t come out of garbage pile: President