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SrirangaVeteran
- Posts : 3226
Join date : 2014-02-23
Location : Colombo 
DFCC - NDB merge to head to Parliament?
Sun Mar 02, 2014 3:33 pm
Though the Central Bank has deemed the merging process of the DFCC and NDB Banks as successful, it is said that a Parliament Act should be passed to merge the two entities.
The reason is because the DFCC was founded under a special Act while the NDB was established under the Banking Act.
It is said that in order for the merger to take place, the Parliament Act on which the DFCC was established, should be amended in Parliament, reports say.
However, in terms of assets, the NDB is ahead of the DFCC.
The biggest stakeholders of both entities are state corporations, Employees' Provident Fund (EPF) and the Employees' Trust Fund (ETF).
From the private sector based stakeholders, Harry Jayawardena's Distilleries Group take the lead in DFCC bank while at the NDB, it is Ashok Pathirage, MD / Chairman of the Softlogic Group.
Meanwhile, the DFCC, in a company disclosure to the Colombo Stock Exchange, announces that its Director, C Royle Jansz has been appointed as new Chairman Elect of the Bank. At the present, the post is held by Rajan Brito.
Britto is to retire in March 2014 on completion of 09 years as a Director of the Bank, the disclosure adds.
The company disclosure is as follows :
http://www.cse.lk/cmt/uploadAnnounceFiles/5111393579909_371.pdf
The reason is because the DFCC was founded under a special Act while the NDB was established under the Banking Act.
It is said that in order for the merger to take place, the Parliament Act on which the DFCC was established, should be amended in Parliament, reports say.
However, in terms of assets, the NDB is ahead of the DFCC.
The biggest stakeholders of both entities are state corporations, Employees' Provident Fund (EPF) and the Employees' Trust Fund (ETF).
From the private sector based stakeholders, Harry Jayawardena's Distilleries Group take the lead in DFCC bank while at the NDB, it is Ashok Pathirage, MD / Chairman of the Softlogic Group.
Meanwhile, the DFCC, in a company disclosure to the Colombo Stock Exchange, announces that its Director, C Royle Jansz has been appointed as new Chairman Elect of the Bank. At the present, the post is held by Rajan Brito.
Britto is to retire in March 2014 on completion of 09 years as a Director of the Bank, the disclosure adds.
The company disclosure is as follows :
knockknobblerTop contributor
- Posts : 73
Join date : 2014-02-23
Re: DFCC - NDB merge to head to Parliament?
Sun Mar 02, 2014 7:32 pm
You are correct, They have to take steps to amend DFCC Act, if such a merger to take place.
Infact, the predecessor of NDB BAnk, ( ie National Development Bank ) was also set up under a Statute of Parliament. I'm not sure of the legal status of NDB bank, now.
Even for one Bank ,amending the act is not that easy. It has to go through several phases, agreement of several non-business parties like cabinet, Parliamentarians. It takes time, even all parties agrees.
Since both banks are majority owned by State institutions, they can force a merger.
But so far we here not heard any thing , whether this merger is economically beneficial to the market, to the respective shareholders or to the institutions.
Only utterances of Cabraal that deal is almost finalized !
Infact, the predecessor of NDB BAnk, ( ie National Development Bank ) was also set up under a Statute of Parliament. I'm not sure of the legal status of NDB bank, now.
Even for one Bank ,amending the act is not that easy. It has to go through several phases, agreement of several non-business parties like cabinet, Parliamentarians. It takes time, even all parties agrees.
Since both banks are majority owned by State institutions, they can force a merger.
But so far we here not heard any thing , whether this merger is economically beneficial to the market, to the respective shareholders or to the institutions.
Only utterances of Cabraal that deal is almost finalized !
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