Sampath Bank has plans to roll out a rupees 4 billion rights issue this year to finance its planned island-wide expansion drive. The bank intends to open at least 40 branches this year in view of its target of having a branch network of 200 by the end of 2011, Sampath Bank Chairman, Arthur Senanayake told The Nation Economist at a press confab organised to launch the bank’s first Platinum branch.
Sampath, which already has three branches in the North, intends to open three more branches in the region during the first half of 2010 while the bank also plans to open six new branches in the East, making the total number of branches in the East 17.
Meanwhile, Sampath Bank had earlier in 2008 called off a planned rights issue after shareholders voted against it at an Extraordinary General Meeting. However the Bank at the time said that the cancellation was owing to the crisis in the world financial markets.
The Bank had planned to raise 1.7 billion rupees through the rights issue of 17.2 million shares to increase its capital base to keep pace with expansion. In 2008, the Bank had also canceled a private placement of shares with the International Finance Corporation (IFC) after it was informed by the IFC it needs more time to decide.
Sampath Bank at present has a branch network of 131.
source - www.nation.lk
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