Dressed Up

Peoples Bank will use the grant to hire a consultant to draft the information memorandum to raise badly needed capital.
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rnThe State-owned giant has negative net assets to the tune of RS. 6 bn and is operating on a Letter of Comfort from the government.

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rnBank Chairman Lal Nanayakkara told Lanka Business Report that the first round of discussions have already been concluded with the World Bank. rn

rnA consultant is expected to make a presentation to the People quote s Bank board within the next few days.rn

rnThe World Bank is expected to fund the consultant for the drafting of the Information memorandum.rn

rnPeoples Bank is also revisiting their balance sheet to dress it up for privatization. The bank says that it will be revaluing all its assets before finalising the terms of reference.

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rnThe loan book and the bad loans are also expected to come under scrutiny. Franchise value of the bank is also expected to fetch a premium at privatisation.

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rnThe Board of Directors at the Peoples Bank

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