New Union

rnNon endash performing loans are affecting smaller banks more than the bigger banks.rn

rnMarket speculation was high on Thursday that Sampath Bank may be involved in a possible deal to strengthen Union Bank.rn

rnThe exact role to be played by the bank was not clear, as Sampath officials were not making an official statement.rn

rnAnalysts say all the smaller commercial banks need fresh capital and the problems at Pramuka had tended to increase their woes.rnrn