‘Deshaya’ says a director of a leading state bank, who also holds positions in affiliate institutions, had obtained a loan of Rs. 10 billion from the same bank for a group of companies owned by him ‘Deshaya’ says a director of a leading state bank, who also holds positions in affiliate institutions, had obtained a loan of Rs. 10 billion from the same bank for a group of companies owned by him
Aug 01, 2018

People’s Bank responds to loan controversy Featured

The People’s Bank claims it has broken no laws by granting a loan to a private company owned by one of its directors.

Chairman of the PB Hemasiri Fernando is responding, by a statement, to a news item telecast over a private television channel on June 30.

Earlier, Sri Lanka Mirror and several other media quoted an article published in ‘Irida Deshaya’ which said a director of a leading state bank, who also holds positions in affiliate institutions, had obtained a loan of Rs. 10 billion from the same bank for a group of companies owned by him.

Bank’s response

The PB’s response says the said company, M.D.T. Walkers company, has been a client since 2004.

As a trusted client, it has obtained various financial facilities from the bank from time to time, and the repayments had been made on time.

The PB disburses loans to individuals and institutions as per the regulations and established laws pertaining to the same issued by the Central Bank.

The same regulations and established laws were followed when granting the loan to M.T.D. Walkers company.

It was approved by the director board as per the recommendations of the loans board, consisting of three directors and senior officials of the loans division.

The PB says it follows the due procedure only when granting loans, and no recommendations or influence by a person or an institution are entertained.

It adds that Jehan Amaratunga, a director of the PB since 2010, was appointed to the director board of M.T.D. Walkers in 2014.

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