The Case Study - Seylan Bank

Rebuilding the Business47The public offering was an extraordinary success, so much so that 10 dayslater Seylan Bank announced it had been oversubscribed and all shares weresold. The Executive Chairman, Mr. Narangoda, summed up the gratitude ofall bank employees:“Given the crisis the Bank underwent towards the end of last year, thisoversubscription is an unequivocal endorsement by the people of Sri Lankademonstrating the confidence they have in the Bank. This has been a great teameffort. On behalf of Seylan Bank, I thank everybody who contributed to thissuccess story and reassure them that Seylan Bank will grow from strength tostrength and live up to their expectations.”With the public and private share issues complete, the total stake in SeylanBank held by Government-owned institutions was now just over 28%, including1.16% held by National Savings Bank. The highly successful initiative alsomarked another milestone in the Ceylinco saga, as the resulting share dilutionfurther reduced the proportionate size of the conglomerate’s holding.The Bank’s third-quarter results added further confirmation that SeylanBank was back on track. An after-tax profit of Rs. 503 Mn. for the nine monthsended 30th September compared favourably with a total of Rs. 155 Mn. for allof 2008. At the same time, the board reported that advances had dropped byRs. 17 Bn for the year to date, and that recoveries had accelerated dramatically.With these gratifying results and a large infusion of capital ensuringcontinued stability and growth, Seylan Bank could now turn its attentionwholeheartedly to the future.