Banking

Mahaweli Aruna loan scheme introduced

Sri Lanka Mahaveli Authority together with People's Bank introduces 'Mahaveli Aruna' concessionary loan scheme to uplift the livelihood of the farming community of Mahaveli Zone.

Sri Lanka Mahaveli Authority together with People's Bank has launched a special concessionary loan scheme by the name of 'Mahaveli Aruna' to enhance the economy of the farming community living in the Mahaveli Zones.

Under this loan scheme, a maximum loan amount of up to Rs. 200,000 will be offered to various sectors such as agriculture, livestock, purchase of agricultural equipment, maintaining of commercial farms, various non-agricultural businesses and services. The loan will be granted under a concessionary interest rate of nine percent for three years while a grace period of three months will be given for repayment of the loan. Two members from the Mahaveli community can be guarantors of the loan.

The signing of the Memorandum of Understanding took place recently under the patronage of Hon. Nimal Siripala de Silva, the Minister of Irrigation and Water Resources Management at the ministry premises. The event was also attended by N. Vasantha Kumar, the CEO /General Manager of People's Bank, T.A. Ariyapala, Deputy General Manager (Co-operative Development and SME), Ivan de Silva, Secretariat to the Ministry, Gamini Rajakaruna, the Director General of Sri Lanka Mahaveli Authority and K. P. Christy Perera, Project Development Director of Mahaveli Authority together with a large number of officials.

The agreement was signed by Gamini Rajakaruna, the the Director General on behalf of the Sri Lanka Mahaveli Authority and on behalf of People's Bank, T. A. Ariyapala, Deputy General Manager (Co-operative Development and SME).

Sharing his thoughts at the event, Minister Nimal Siripala de Silva pointed out that under the 'Mahinda Chinthana Programme' the government has rules steps to enhance the value of our agricultural produce by adding various production elements instead of marketing it as raw material and by doing so can generate more income as well as generate more employment opportunities. He added that People's Bank together with Mahaveli Authority is launching this concessionary loan scheme especially to enhance the economic strength of the Mahaveli community by encouraging agricultural and rural level productions. He also stated that for the first time ever, thousand Mahaveli entrepreneurs are expected to be granted a loan amount of 100 million rupees within this year.

Adding his views, N. Vasantha Kumar, the CEO /General Manager of People's Bank stated that empowering the people with financial prosperity is Paramount of the preliminary objectives of People's Bank and the bank remains committed to that objective. He added that introducing a loan scheme of this nature with the Sri Lanka Mahaveli Authority is indeed an outstanding achievement and with this initiative a new generation will emerge, comprising entrepreneurs who are engaged in various other businesses and industries apart from agriculture related industries.

Commenting at the event, T. A. Ariyapala, Deputy General Manager (Co-operative Development and SME) stated that he is overjoyed as two institutions serving the nation, People's Bank and Mahaveli Authority adding more value to their commitment in serving the nation, have launched this scheme, as a concept of the honourable minister and it will enhance and strengthen the economy of the people of Mahaveli Zones. Also, with this project, the second and third generations of Mahaveli will emerge as successful entrepreneurs, he further added.

Commercial Credit's 'Hari Minors' savings account doubles deposits instantly

Commercial Credit revolutionises the concept of children's savings with the launch of 'Hari' Minor Savings Account. The uniqueness of this account lies in the fact that Commercial Credit will double every deposit made (for children under 10 years of age).

'Hari' accounts opened for children over 10 years of age and upto 18 years of age will also benefit with varying additional amounts being deposited for them by the Company.

Existing customers of Commercial Credit who open 'Hari' Minors' Savings Accounts for their children or grandchildren will enjoy even higher benefits as the increase to every deposit made will be by 125%, thereby taking the benefits of savings to new heights.

Says Roshan Egodage, Commecial Credit's CEO, "As we enter a new year, we're happy to be of service to the children of today who will be the adults of tomorrow. The 'Hari' minor savings account brings the maximum possible returns throughout one's childhood until one reaches 18 years of age. This is indeed a very attractive proposition and will be of great benefit to both the parents and children of this country".

The 'Hari' minor savings account can be opened for any new born child with an initial deposit of Rs. 250 and is operative until he or she reaches 18 years of age. Interest will be calculated and credited monthly. The deposited funds need to remain in the account until the child reaches 18 years of age.

Enjoying a winning streak, Commercial Credit won the top award for Brand Excellence in the Banking and Finance Services Industry competing with many global brands at the 2012 Global Awards for Brand Excellence, presented by the World Brand Congress at a gala ceremony held at Taj Land's End Hotel in Mumbai recently. Brand builders from over 30 countries participated in this competition.

Just two months ago, Commercial Credit also triumphed with a dual victory at SLIM Brand Excellence 2012. It won the coveted Gold Award for 'Service Brand of the Year' and the Bronze Award for 'Local Brand of the Year'. This is the first time in the history of the SLIM Awards that a Finance Company has been recognised in this manner for Brand Excellence in Sri Lanka

"2012 has been a significant year for Commercial Credit. It has been one which has brought us a rich harvest of awards and accolades both locally and internationally. This has given us all a new impetus and fresh drive to further spread our reach and offer our very own brand of service and corporate leadership throughout Sri Lanka", said CEO of Commercial Credit Roshan Egodage.

Bank of Spain says set to post inspectors in 16 banks

Harshly criticised for failing to avert a major financial crisis, the Bank of Spain says in a report that it has found "shortfalls" in its surveillance of the banking system and called for inspectors to be posted inside the top 16 banks.

The report was carried out as one of the conditions imposed by Brussels in return for a rescue loan of up to 100 billion euros ($130 billion) to fix the balance sheets of Spanish banks awash with bad loans since a 2008 property crash.

"We have detected some shortfalls, vagueness, and a failure to update procedures that should be corrected," said the report drawn up by an internal committee of the central bank and published late Tuesday.

The committee notably recommended placing central bank inspectors permanently in each of Spain's 16 largest banks to more closely monitor their business.

The Bank of Spain noted that it already had inspectors based in the two biggest lenders, Santander and BBVA, for more than 10 years, and in CaixaBank, Banco Popular, and Banco de Sabadell for the past three years. Spain said last month that it had pumped in 37 billion euros of the European rescue loan into the four banks that were bailed out and nationalised: BFA-Bankia, NCG Banco, Catalunya Banc and Banco de Valencia.

AFP