SMIB says no plan to acquire any privatelyowned finance company
Contrary to recent speculations, State Mortgage & Investment Bank (SMIB) said it has no interest in acquiring The Finance Company PLC (TFC) or any other privately-owned finance company to that effect.
“We have no intention to merge with any private sector finance company. We have communicated this to the Central Bank as well. Besides, the legal framework under which SMIB was instituted does not allow a move like that,” SMIB Chairman Jagath Wellawatta told Mirror Business in a brief interview. However, he said that in keeping with the broad consolidation process that has been put forward by the Central Bank, the bank will seek mergers among state-owned banks and finance companies.
“We are a housing bank with a rich history. We would seek mergers which are suitable for our identity and expertise. For instance, if we could become a part larger housing banking group, we would consider the merging options. But those companies have to be stateowned,” Wellawatta said.
SMIB was for med by amalgamating Ceylon State Mortgage Bank and Agricultural and Industrial Credit Corporation established in 1931 and 1943, respectively under the SMIB Law No. 13 of 1975 and commenced its operations in 1979.
The bank was recognized as a licenced specialized bank by the Central Bank of Sri Lanka in 1998. In 1991, the bank started accepting fixed deposits. Pass book savings commenced in 2001 in a bid to find more ways to strengthen its fund base.
The bank currently has 22 branches in key cities and expects to introduce a couple of new savings accounts this year to strengthen its funding base.