The Commercial Bank of Ceylon Ltd., reported a group pre-tax profit of Rs. 936.9 million for the first half of 2003, an increase of Rs 101.6 million or 12.15 per cent over the corresponding period last year.
The Bank said this pre-tax profit was arrived at after making a loan loss provision of Rs. 302.2 million, which included a provision of Rs. 155.0 million made as a prudential measure, covering 20 per cent of facilities granted to a state-owned enterprise, whose facilities have been classified under non performing advances. rn
rn"However, the Bank is in the process of taking legal action against the borrower with the view to recovering the dues," Commercial Banks Deputy General Manager (Finance & Planning), Ranjith Samaranayake said.rn
rnDespite this provision, the Groups post-tax profit before Value Added Tax on profit for the period under review was Rs. 811.457 million, an increase of Rs. 159.670 million or 24.50 per cent.rn
rnThe provision compelling banks to provide for Special Value Added