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2 billion capital injection in the next couple of weeks after meeting important performance criteria.
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People's Bank is expecting a Rs. 2 billion capital injection in the next couple of weeks after meeting important performance criteria. An Asian Development Bank (ADB) team that reviewed the bank’s performance last week said that it had achieved key financial ratio targets despite higher provisioning due to the tsunami and higher taxes on banks.
ADB says they are supporting a third time recapitalization of the bank because it’s the government strategy to not privatize and selling the People’s Bank will be tough anyway.
“The key message is that the bank is on the right track,” says Barbara Ericsson, Financial Sector Specialist, ADB.
“Numbers are met more or less. The Ministry of Finance is aware of the positive trend,” she says.
The ADB has agreed to pump in up to Rs.
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6 billion or US$ 60 million to the government to be given to People’s Bank as a cash injection if it meets performance criteria agreed to in the “Financial Markets Program for private sector development,” loan signed a year