CB gives more time for capital needs of Bank Amana

The Central Bank, for the second time, granted additional time to the authorized commercial bank, Amana Bank PLC, to meet the provisional minimum capital base, which must have been completed before 1 January, 2017, according to a presentation Colombo Stock Exchange. The Central Bank granted the time until June 30, 2017, to increase the minimum core capital of Amana Bank to Rs.7.5 billion. The bank is negotiating an agreement to inject the capital shares in order to satisfy the minimum capital of 10 crore from January 1, 2018. The original directive issued in December 2014 in the Central Bank required all commercial banks authorized to increase their Minimum capital base from Rs.5.0 billion to Rs.10.0 billion as of January 1, 2016. However, Amana Bank, as well as some other small and medium-sized commercial banks, called for a delayed time framing the central bank to satisfy the For which the Monetary Board has given its approval. According to the plan capital increase agreed with the regulator, the bank has been forced to increase its minimum core capital to Rs.7.5 billion by January 1, 2017 and beyond Rs.10 million to 1 January 2018. In an earlier filing filed in December, Amana Bank said it was in talks with potential foreign parties to infuse capital to meet the minimum regulatory capital requirements. The bank said yesterday it is in talks with the Islamic Society for Private Sector Development (ICD), the fund manager IB Growth Fund (Labuan) LLP - (IBGF), to seek participation in a program Of proposed actions. To this end, due diligence on the bank must begin with the ITC, the bank said in the disclosure. Meanwhile, the 2017 budget proposed to double the minimum level of core capital to Rs.20.0 billion without annex attached. However, it is expected that the new levels of capital take effect from 1 January 2018. However, the Central Bank has not yet given a clear direction to banks because the Ministry of Finance can not specify the minimum capital levels For banks. Meanwhile the new BASEL III regulations require higher levels of capital adequacy relative to risk-weighted assets to ensure that the bank operates with higher capital caps to withstand shocks in times of similar stress to time Of financial crisis world in 2008/9. While some levels of liquidity and provisional capital adequacy and are controlled by the regulator at present, it is likely that the Central Bank issued BASEL III directives at the beginning of this year, which will enter into force at From 2019. According to sources in the banking sector, Bank Amana is already aligned Rs.10.0 million in equity and the current talks are to balance the requirement to meet the capital base of Rs.20.0 billion. Bank Islam Malaysia Berhad, AB Bank in Bangladesh and Islamic Development Bank based in Saudi Arabia, together represent a 38.5 per cent stake in Amana Bank. For the nine months ended September 30, 2016, Amana Bank exceeded its profit of Rs.100 million and posted a net profit of Rs.101.5 million or 8 cents per share, which is 16.3 percent less than 'one year ago .








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