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Not So Bad

Sri Lanka's biggest listed bank, Hatton National Bank, said it doesn't expect to make a large provision for doubtful loans in the wake of last month's tsunami disaster.
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Sri Lanka's biggest listed bank, Hatton National Bank, said it doesn't expect to make a large provision for doubtful loans in the wake of last month's tsunami disaster. Only a few loans in the bank's Rs.
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90 billion (6 million) portfolio were affected by the tsunami based on initial estimates, the bank's chief executive Rajendra Theagarajah told Dow Jones Newswires in an interview.
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Most of these loans were given to small-sized hoteliers and for the purchase of vehicles, he said.

"At this point in time, we don't have any materially identified losses that will affect the bottom line," he said.

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However, he added that "there could be the prospect of indirect impact that is difficult to quantify."

Provisions for doubtful loans in 2004 will be a fraction of the Rs. 200 million in loans directly affected by the tsunami, Theagarajah said.

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The bank will assess whether further provisions for tsunami-affected loans would be needed this year, he said.
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The Dec. 26 tsunami resulted i

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