COLOMBO (EconomyNext) – Sri Lanka’s DFCC Bank and NDB Bank have announced they have ended an agreement under which they were planning to merge but could take up the idea later.
A stock exchange filing said the two former development banks, and DFCC Vardhana, DFCC’s commercial arm, had terminated a memorandum of understanding signed in March2014 on the proposed merger.
“The end of the agreement will enable both banking groups to pursue their respective business and expansion strategies unfettered by the provisions of the MoU but will not preclude re-examination of the feasibility of amalgamation at a future point in time once policy and stance of the government becomes clearer.”
The merger had been discussed under a plan by the former central bank administration on financial sector consolidation with the stated aim of creating bigger entities and strengthening the island’s financial sector.
The new government formed after the January presidential poll had said it would not want to force any companies to merge.