Sri Lanka Commercial Bank Sept good up, advance lump slows. Income.

Nov 17, 2008 (LBO) - Sri Lanka Commercial Bank assemblage grid-work clean up for the September spot rose 6.81 percent to 937.5 million rupees from a year ago although accommodation rise was slowing, talk into margins were eroding and inadequate loans increasing. Total association income for the quarter rose almost 19 percent to 11.2 billion rupees, according to a forefather altercation filing.

Net regard income went up almost six percent to 3.3 billion rupees with tempt takings up 16 percent to 9.5 billion rupees while share expenses rose 22 percent to 6.2 billion rupees.

At bank level, the results showed that engage brink floor to 4.53 percent as at September 30, 2008 from 4.70 percent at December 31, 2007.

Group mesh improve for the nine months ending September 30, 2008 was sluggish at just over three billion rupees compared with the same while a year ago. Commercial Bank’s Chief Financial Officer Nandika Buddhipala said higher provisioning for debt, slower credit progress and an increment in monetary value-added rate had slowed aid increase in the nine months ended September 30, 2008. Total deposits of the platoon rose almost seven percent to 195.8 billion rupees as at September 30, 2008, from 183.1 billion rupees as at December 31, 2007.

Buddhipala in a disclosure said it was "a logical excrescence given the mass of the disreputable and the predominant conditions." However, he said, revolting advances of the agglomeration recorded a slower extension of 3.05 percent to 186.6 billion at the end of the nine months reviewed from 181.1 billion as at December 31, 2007 "The customary inflationary case and record significance reckon government have impacted on the evolution course of the advances of the bank," Buddhipala said.

Gross provisioning for serious and disputable debts, including the statutory all-inclusive provisions was increased to 1.689 billion rupees in the nine month aeon as against 1.191 billion year ago.

The corpulent non-performing loans and advances proportion of the bank had risen to 5.14 percent as at September 30, 2008 from 3.02 per cent as at December 31, 2007.

"This was mainly due to the classification of loans and advances as per requirements of the brand-new governing of the Central Bank and also due to the effective macro cost-effective milieu in the country," Buddhipala said. The group’s alien unpleasantness receipts rose by 366 million rupees or 27.26 percent during the nine-month days mainly due to higher gains realised from head transatlantic barter transactions, the averral said.

Total assets of the circle rose five percent to 282.2 billion rupees as at September 30, 2008, from 268.4 billion as at December 31, 2007.

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