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Sri Lanka : HNB acquires 51% stake in PRIME GRAMEEN in SRI LANKA

August 11, 2014

Hatton National Bank Plc is a pioneer in microfinancing in Sri Lanka and has been operating through its Gami Pubuduwa program for over 25 years. Considering the opportunity to be part of the rural economy in line with the national vision of Sri Lanka, the Bank was keen to penetrate into the untapped market potential in microfinance.

The Board of Directors of HNB Plc decided to acquire a stake of 51% in Prime Grameen Micro Finance Limited for a consideration of Rs.660 million, which was subject to obtaining regulatory clearance, completion of a detailed due diligence and entering in to a shareholder agreement setting out the rights of HNB as the Major Shareholder.

Prime Grameen Micro Finance Limited incorporated is a flagship microfinance operator in Sri Lanka which is modeled on the famous Grameen concept and is adapted to suit domestic conditions. The Prime Grameen touched the lives of over 450,000 micro enterprises through its microfinance program. Prime Grameen is owned by Prime Lands Pvt Limited.

Prime Grameen recorded impressive performance with an annual loan growth of 24%, deposit growth of 33% and a return on equity of 50% for the financial year 2013/14 while maintaining a high quality asset portfolio with a NPA level of below 1%.

Prime Grameen is delighted to enter into a partnership with HNB drawing up new vistas for the microfinance industry. The troubled giant, Grameen was restructured and resurrected within 3 years and this partnership provides the impetus for us to reach greater heights in the finance sector.

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Source: TendersInfo (India)

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