Two large commercial banks of Sri Lanka – DFCC Bank and the National Development Bank (NDB) have entered into a memorandum of understanding on merging the two banks. The board of directors of the two banks said in a notification to the stock exchanges that in pursuance to the policies announced by the government to encourage consolidation of certain banking business, the two boards realizing the positives in this model have taken the initiative to explore the possibilities of amalgamating. The boards of both DFCC and NDB reiterated that there have been no definite decisions on any aspect of consolidation at this stage. The two boards assured their shareholders and employees, including those of the DFCC Vardhana Bank, the regulatory authorities and the investing public that they will be kept informed of the progress on a possible merge when necessary.
