First Northern branch of former Pramuka Bank takes off in Mannar

The first northern branch of the five-year-old Lanka Savings Bank (LSB), opened its doors to more than 200 depositors of Mannar on April 08, 2013.

Rishad Bathiudeen, Minister of Industry and Commerce (left) and Chandrasiri Gajadeera, Minister of Rehabilitation and Prison Reforms, reach out to receive the first deposit of Rs One million at Mannar's Lanka Savings Bank.

The Lanka Savings Bank incorporates assets of former Pramuka Savings and Development Bank, which ceased operations in 2002.

More than 200 Mannar regional depositors and prospective clients were seen thronging the opening session on April 08. The first deposit of Rs One million was promptly received by Rishad Bathiudeen, Minister of Industry and Commerce, who jointly inaugurated the branch that morning with Chandrasiri Gajadeera, Minister of Rehabilitation and Prison Reforms.

According to Senior Manager Operations - LSB, Mohan Gurusinghe, deposits in excess of Rs 05 Million ($40K) were netted by the LSB Branch at the time of its closure on Day1 (April 08). "The Mannar branch intends to support SME industrialists and entrepreneurs with Rs One million quantums. We are also on microfinance facilities up to Rs One million for qualified clients in this bustling region," Gurusinghe said. "The eight staff-strong branch would also be serving Mullaitivu and Kilinochchi," Gurusinghe added.

The licensed specialized bank had earned a long-and short-term RAM rating (2012) of BBB and P2, LSB's asset base also consists of the formerly wound down Pramuka Bank's assets. LSB now has three regional branches and the Mannar branch is its sole presence in the North.

Pramuka's liabilities that amounted to Rs 1.88 billion (as at end-October 2011 - $ 14.9 Mn in today's value), are to be settled by LSB by end - 2017. LSB's liquid-asset ratio is a strong 866% (end-October 2011). Chairman of the LSB, Ariyathilleke Dahanayake, was also present at the opening session.