Genting: Now It Has Gone into Banking

So listen here. What do you know?

Genting has now put its money into banking as well. It is with many parties moving slowly into a Sri Lanka ban called the Union Bank of Colombo (UBC).

Let us read excerpts of  this news article.

Managed by a high-powered Board of Directors and Management Team, UBC has received commitments for an additional equity capital of Rs. 2 billion and is set to join hands with several new foreign investors in achieving its objective of becoming one of Sri Lanka's topmost financial services organisations.

In a significant move, Genting Berhad, the Malaysian conglomerate engaged in leisure and hospitality, and USA based fund Shorecap would be strategic investors in Union Bank.

Mr. Ajita de Zoysa, Chairman of Union Bank said, "This investment demonstrates the solidity and strength of Union Bank. Genting Group is Malaysia's leading Multinational Corporation and one of Asia's best-managed companies."

"A significant factor enabling Union Bank to raise new capital is the safe and viable environment for investment created by the progressive financial and economic policies being adopted by the Government. With the end of the conflict and the prevailing peaceful conditions, Sri Lanka's sound financial markets, rapid economic development programmes and the immense resource base, will attract new investors globally, thus enabling Sri Lankan corporations to make rapid progress.  Sri Lanka today is being regarded as a favourable investment destination."

Mr. Ajita de Zoysa added, "In progressing towards further growth, the Union Bank developed a five year Strategic Plan in consultation with an International Organisation. The objective of the equity raising is to fund the expansion envisaged under the plan and to meet the Central Bank's Minimum Capital Requirement."
Mr. Ajita de Zoysa had a special word of praise for the Central Bank officials for the efficiency and guidance demonstrated during the approval process.

Speaking on the Bank's performance Mr. Nilanth De Silva, Acting Chief Executive Officer of Union Bank stated that that Bank aims to build on the extensive re-organisation carried out in the last few years.
He stated, "Union Bank achieved new heights in 2009, recording an impressive growth after posting a profitability of Rs. 62.1 million. The profitability recorded in the previous year was Rs. 23.1 million. The Bank's deposit base grew from Rs. 10.4 billion to Rs 12 billion, while the Bank's asset base saw upward movement from Rs. 12.5 billion to Rs. 14.1 billion."

Mr. Anil Amarasuriya, Consultant/Director stated, "Part of the strategic plan is to reach out to a wider customer base, hence, the Bank aims to open several new branches this year. The Bank has already opened new branches in the North and plans to expand to other parts of the Island."

Mr. Amarasuriya added, "In order to achieve shareholders' aspiration in terms of growth and profitability, the Bank will expand organically and through acquisition. The end game is to elevate Union Bank to be a financial services powerhouse. The Bank is also working towards an Initial Public Offering (IPO).

"The Bank is led by an experienced Board of Directors comprising entrepreneurs, experts from banking, financial and management fields and industry leaders, who, have provided leadership and vision in taking the bank towards its goals. The entry of the new investors will give added impetus," he noted.

So,do you think it is a good move by Genting?

Sounds promising. Time will tell.