Joint Deal

March 05 (LBO) – DFCC Bank and Hatton National Bank would set up a joint venture investment bank to takeover and run their corporate finance and capital market businesses, the two banks said Monday. "It is envisaged that the new will also be the group holding company for the other related entities of the two bank including stock brokering and primary dealership business," the banks said in a joint statement to the Colombo Stock Exchange.

"The primary objective of this undertaking would be the pooling of the strengths and resources of DFCC Bank and Hatton National Bank to attain a critical mass and enable synergies while providing the full service range of a typically integrated investment banking operation."

The new unit will start with a capital of 500 million rupees, with DFCC chief executive Nihal Fonseka as its chairman and Jayantha Perera, currently HNB's Senior Deputy General Manager Business Development and International, as its managing director.

The rest of the board would be made of the senior management of the two bank including HNB Managing Director Rajendra Theagarajah, the statement said.

The new entity would not seek a banking license but regulatory approval would