The Monetary Board of the Central Bank in-principle has approved another 10 consolidation proposals submitted by banks and Non-Banking Financial Institutions (NBFIs) in August, bringing the total to 29, the Central Bank said Friday.
So far, the Central Bank has approved 29 proposals of 7 banks and 22 NBFIs to proceed with their merger/acquisition processes while further consolidation plans of 7 NBFIs and one bank are being finalized.
Asian Finance Ltd and TKS Finance Ltd., Capital Alliance Finance PLC and Cargills Bank Ltd., Commercial Credit and Finance PLC and Trade Finance and Investments PLC, Bartleet Finance PLC and Orient Finance PLC, Prime Grameen Micro Finance Ltd and Hatton National Bank PLC, and Senkadagala Finance PLC and Newest Capital Ltd, have made public announcements of agreed consolidation arrangements.
The Monetary Board approved the merger of TPG Global LLC, a US - based global private investment firm, which through its subsidiary, has committed a significant capital infusion to Union Bank of Colombo PLC.
Mergers of DFCC Bank, DFCC Vardhana Bank PLC and the National Development Bank PLC, as well as Merchant Bank of Sri Lanka PLC, MBSL Savings Bank Ltd., and MCSL Financial Services Ltd., aim to complete their merger processes by last quarter of this year.
The Panel of Audit Firms continued to assist in transaction management, by advising Banks and NBFIs on transactions as well as on the smooth transition, the Central Bank said.
The Central Bank said it is closely monitoring the progress made by banks and NBFIs which are earmarked for consolidation and the timelines indicated in the consolidation plans with a view to expeditiously drive the financial sector consolidation programme.