Neither the Bank of Ceylon (BOC) nor the Central Bank (CB) has infused any funds into the Seylan Bank which had to contend with withdrawals totaling around Rs.700 million in the wake of the collapse of the Golden Key Credit Card Company, Seylan’s CEO Ajita Pasqual told a news conference on Thursday.

He was responding to a question on whether either BOC or CB had infused any funds into Seylan and if so how much.

Mr. Eastman Narangoda, Seylan’s new Chairman, said that he was the only serving Executive Director on the new board and that it was likely that one more executive director from among the members of the board will be appointed.

Additions to the board since the first names were announced included those of Rear Admiral Ananda Peiris who recently retired from the Navy and Mr. R. Nadarajah who long served the BOC as a Deputy GM and thereafter was MD/CEO of Pan Asia Bank.

Dr. Ranee Jayamaha, Deputy Governor of the Central Bank was billed to be present at Thursday’s news conference but did not show up. However bank officials said that she was not due although her name plaque was placed on the head table and later removed.

Narangoda said that Seylan Bank was now stable and functioning normally. It had honoured all withdrawals from its customers and is "stronger than ever."

He said that he was supported by a high profile board of directors and this was a great strength to him.

Narangoda was confident that Seylan could resolve its current problems "without much difficulty", and said that they would stress on improving credit quality, continuous process improvements, expenses and what he called "some off-balance sheet items" which he declined to identify.

Pasqual said that Seylan’s non-performing loan ratio was 12% and while BOC and CB support was assured in the case of an eventuality, "at the moment we are OK and managing."

Seylan said in a released issued at the news conference that due to external reasons beyond the bank’s control there had been certain perceptions and few customers had reacted by withdrawing their deposits "due to a lack of understanding of the full story."

Explaining that banks play a catalytic role in a country’s economic performance and stability, it was necessary to place what Seylan called "the hard facts" before the public not merely to protect the business of the bank but also to educate people with regard to the correct situation.

The situation was now back to normal and customers are now bringing in new deposits including some who are re-depositing funds they had originally withdrawn.

Seylan said that the new partnership with the BOC was a source of strength and will provide solid support to the Seylan Bank as it resurges to its original status.

Pasqual stressed that the bank was stable and said that customers need not fear, panic or have any uncertainty with regard to their deposits especially in the context of the Central Bank decision to intervene to ensure stability and continuity of the services of the bank.

"He further added "we are receiving all the support from the Central Bank and the Bank of Ceylon and the rest of the banking system. Seylan Bank has been in business for a long period and will continue to serve its valued customers as an indigenous bank."

The new management of Seylan Bank is in the process of preparing a strategic footprint, taking into account external and internal realities in order to take the bank to its next level and give its customers the most professional banking services, the release said.

``The Seylan team is ready and able to meet the challenges at hand and the Sri Lankan public will witness this first hand at every branch in the coming days.’’