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Sri Lanka : HATTON NATIONAL BANK boosts loans to bigger SRI LANKA

May 22, 2014

Sri Lanka's fourth biggest commercial lender by assets said the it boosted loans to bigger companies, Fitch Ratings confirmed an 'AA-(lka)' rating of Hatton National Bank.

Fitch said, "HNB's loan book is shifting towards larger, mid-sized corporates from its previous focus on retail and SME sectors, which, while adding to diversification, results in lower returns.

Exposure to large- and medium-sized corporates raised to 35% of the loan book at end-2013 from 29% at end-2012.

It was the primary reason the bank's loan book to expand 17 in 2013, outpacing a 9% loan growth in the broader banking sector.

HNB's loan growth was 18% compared in 2012 with 21% in the banking sector. HNB was decreasing its pawning or gold-backed loan exposure now that quality began to deteriorate.

HNB's regulatory non-performing-loans ratio enhanced slightly to 3.64% at end-2013 from 3.66% a year earlier was driven by growth in the loan book, while gross NPLs increased 18%.

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Source: TendersInfo (India)

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