Its interest rate spread had increased to 6.
0 percent from 5.18 percent.
The bank said its cost-to-income ratio worsened to 68.
6 percent from 67.8 percent.
Seylan said the bank was overstaffed due to past recruitment and productivity levels were low adding to costs.
It had a top heavy management structure with 40 deputy general managers and assistant general managers including consultants.
"This is a much higher concentration of senior staff than one finds at comparable banks," the annual report said.
"For example, the bank's largest competition, while 2.5 times larger in terms of total assets has only 22 positions at the corporate management level.
"
The bank had started centralizing functions which is expected to release 400 staff positions which is costing 100 million rupees a year.
The bank was redeploying staff and also retiring staff at 55 years.
Seylan has separately said in a stock exchange filing that is starting a voluntary retirement scheme to shed 250 empl