Former Pramuka Bank opens first northern branch in Mannar

• To offer micro-credit for the region next
• Rs. 5 million deposits on day-one
• 150 new depositors

The first northern branch of the five year old Lanka Savings Bank (LSB) opened its doors to more than 200 eager depositors in Mannar on 8 April.

LSB was formed subsequent to the incorporation of the assets of former Pramuka Savings and Development Bank, which ceased operations in 2002.

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

According to LSB Senior Manager Operations Mohan Gurusinghe, deposits in excess of Rs. 5 million were netted by the LSB Branch at the time of closure on the first day. “The Mannar branch intends to support SME industrialists and entrepreneurs with Rs. one million loans. We will also offer microfinance facilities up to Rs. one million for qualified clients in this developing area. The eight staff of our branch will also be serving Mullaitivu and Kilinochchi,” Gurusinghe added.

The licensed specialised bank earned a long-and short-term RAM rating (2012) of BBB and P2, with its asset-base consisting of former Pramuka Bank assets. LSB now has three regional branches and the Mannar branch is its sole presence in the North.

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