MIRA INFORM REPORT

 

 

Report Date :

01.10.2014

 

IDENTIFICATION DETAILS

 

Name :

PEOPLES BANK

 

 

Registered Office :

# 75, Sir Chittampalam A Gardiner Mawatha, Colombo 02,

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

01.07.1961

 

 

Com. Reg. No.:

Act No 29 of 1961

 

 

Legal Form :

A Licensed Commercial Bank under the banking Act No. 30

Of 1988 incorporated as a commercial bank by People’s bank Act No. 29 of 1961.

 

 

Line of Business :

Retail Banking  & Corporate Banking

 

 

No. of Employees :

11,000


RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SRI LANKA - ECONOMIC OVERVIEW

 

Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam. The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets

Source : CIA

 


GENERAL - Basic information at a glance

     

a.

Name of Subject of Inquiry

:

PEOPLE’S BANK

b.

Legal Form  & Status

 

:

A Licensed Commercial Bank under the banking Act No. 30

Of 1988 incorporated as a commercial bank by People’s bank Act No. 29 of 1961.

c.

Chairman

:

Gamini Senarath

d.

Primary Line of Business

:

Retail Banking  & Corporate Banking

 

e.

Head office

:

# 75, Sir Chittampalam A Gardiner Mawatha,

Colombo 02,

Sri Lanka.

 

Tel No:  (00 94 11) 2327 841 / 2446 316/ 248 1481

Fax No: (00 94 11)          

 

E Mail: info@people’s bank.lk

               pabs@peoplesbank.lk

Cable: JANABANK

Swift:  PSBKLKLX 

 

 

Corporate Banking Division

 

P.O. Box 437 
ANCL (Lake House Building) 
No. 35, D.R. Wijewardena Mawatha, 
Colombo 10, 
Sri Lanka.

 

Tel.: 2320651-6, 2437239-41 


E-Mail: inter@peoplesbank.lk 
SWIFT PSBKLKLXA 022

 

f.

No. of Employees

:

Approximately 11,000

 


COMPANY DETAILS - Registration and Shareholder Details

 

a.

Registration No

:

Act No 29 of 1961

b.

Date of Registration

:

01st of July 1961

 c.

Registered Office

:

 

# 75 Sir Chittampalam A Gardiner Mawatha, Colombo -02

 

d.

Board of Directors

          As at

31st December, 2013

:

Gamini Senarath

Chairman

Jehan P. Amaratunga

Director

Ms. Lakshmi Kumari Sangakkara

Director

Ajith Panditharatne

Director

Ms. Dharma N. Gammampila

Director

Pawara Dassanayake

Director

G.K.D. Amarawardena

Director

R.M.P. Ratnayake

Director

Piyadasa Kudabalage

Director

f.

Issued Share Capital

:

Rs. 49,998,000.00 

Number of Shares

:

999,960

g.

Nominal Value of Share

:

Rs.    50.00

h.

Secretaries

:

Rohan Pathirage

i.

Auditors

:

 

Auditor General

 

 

 


FINANCIAL DETAILS - Most recent available Financial Information

 



CURRENT INVESTIGATION

                                     

 

Company Logo

 

·         History.

 

                  The Subject Company, PEOPLE’S BANK is a licensed Commercial bank under the banking Act No.30 of 1988 incorporated on 1st of July 1961 as a commercial bank by People’s Bank Act No.29 of 1961.

 

The PEOPLE’S BANK is the one of largest State owned bank in Sri Lanka and it maintains an island-wide network of 332 Branches, 94 Counter Services, 188 Pawning Centres, 463 ATM Island wide, Outlet 735 and  Customer Accounts over 13 million, 

 

People's Bank opened the first financial supermarket in Colombo to mark the golden anniversary of the Bank. The Borella City Branch in a state-of-the art building named the Golden Anniversary Branch. The 12 storied building is also the head office of the Peoples Leasing Company, a fully owned subsidiary of the People's Bank. The branch is ready to provide all facilities to exporters and this facility is in line with the Bank's vision to be the exporters' bank by 2016. Facilities available for exporters include export credit support to search for suppliers and buyers, project financing and investment banking. The 8-8 X 365 days banking service is on line with real time service.

 

The Subsidiary/Sub-subsidiary and associate companies of PEOPLE’S BANK are:

 

o        Peoples Travels (Pvt) Ltd

o        People’s Leasing & Finance Plc

o        People’s Finance Plc

o        People’s Insurance Ltd

o        People’s Leasing Property Development Ltd

o        People’s Leasing Fleet Management Ltd

o        People’s Microfinance Plc

o        People’s Leasing Havelock Properties Ltd

o        People’s Merchant Finance Plc

                                                        

·         Location.

 

The Subject Company is located at # 75, Sir Chittampalam A. Gardiner Mw, Colombo 2, housed in a fully owned multi-storied building with all facilities in the heart of the city.

 

·         Operational Details.

 

General

                  The subject company’s primary line of business is all types of Retail & Corporate Banking, Leasing/ Credit Cards/ Foreign Exchange Services etc.

 

No of Employees

                  Approximately 11,000

 

·         Financial Data

The subject bank’s Financial Statements for the year ending 31st December, 2013 attached.

 

·         Trade references

 

                  The subject State Bank is well known in the country.

 

·         Credit Recommendations

 

No computerised data bases exist to make checks whether the partners or the company has any legal action or lawsuit initiated against any of them but informal (but not in-depth) checks do not indicate any such cases in the public know

 

 

Information declined

 

Tel No:              (0009911) 2327841

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.61

UK Pound

1

Rs.100.28

Euro

1

Rs.78.21

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

Calling Done by :

SVA

Report Prepared by :

PDT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.