Local banks looking at India

Sampath Bank along with other Sri Lankan banks would jointly look at India in a possible joint venture instead of venturing alone due to stringent licensing procedures, Anil Amarasuriya, Managing Director/CEO, Sampath Bank told The Sunday Times FT. When the Comprehensive Economic Partnership Agreement (CEPA) is in place, a couple of local banks, together with Sampath Bank will explore the opportunitities.

“We have made our representations regarding the CEPA concessions to the Central Bank and the Indian Ministry of Finance and we are awaiting an outcome,” he explained.

The Bank is going ahead with regional expansion but not in India immediately for the above reasons.

“When we think of expansion, we always look at the return on assets (ROA) equation. In India, if we invest we probably wouldn’t get the ROA we are looking for. Also getting the banking license is not easy,” Amarasuriya explained.