People’s Merchant Bank takes over credit card company land worth Rs. 452 m

Monday, 6 December 2010 00:16 -     - {{hitsCtrl.values.hits}}

THE Board of Directors of People’s Merchant Bank (PMB) last week resolved to acquire a land and building worth Rs. 452 million, situated at No. 21, Navam Mawatha, Colombo 2, from PMB Credit Card Company Ltd. (PMBCC).

The consideration for this deal is as follows: Accept a deposit liability worth Rs. 233.2 million for which PMB will issue promissory notes to the deposit holders of PMBCC; accept repayment of loan balance outstanding to People’s Bank from PMBCC amounting to Rs. 38.2 million by taking over the liability to PMB; and provide a credit to PMBCCC current account for the balance amount of Rs. 166.64 million as part settlement of money advanced by PMB to PMBCC in the past. PMB will acquire this asset to accept liabilities of PMBCC as well as to comply with the instructions from the Central Bank.