Pramuka Savings and Development Bank which posted a loss in its first year of business expects to break even by this month, a spokesman for the bank said.

"Our business growth is ahead of projections and we are gratified that we will break even in just 13 months after starting business,'' a spokesman said.

Pramuka, the first specialised bank to be set up under the Banking Amendment Act NO. 33 of 1995, has published its accounts for the year ended March 31, 1998, covering nine months of actual operations. The bank posted a loss of Rs. 62.8 million for this period.

The turnaround has already begun and is reflected in the results for the first quarter of the current financial year when a net interest income of Rs. 14 million was earned. This compared with Rs. 12 million earned on this account during the nine months ending March 31, 1998.

"Our operating profit for the first quarter this year at Rs. 16.6 million is higher than what we were able to achieve during the nine months we were in business in the last financial year. Our total assets have also increased to Rs. 1.7 billion during this period from Rs. 1.4 billion. The capital adequacy for tier 1 and tier 2 is also comfortable,'' the spokesman said.

Pramuka has taken steps to register itself for trading on the over-the-counter board of the Colombo Stock Exchange. They were proud of the fact that they were able to release their audited accounts for the year ended March 31, 1998, to shareholders on June 2 and give them the picture of the first nine months operation.

"Our deposit base now stands at Rs. 1.4 billion and total assets are Rs. 2.1 billion. This is commendable by any standard given that we began operations in a fiercely competitive environment not only in the banking sector but also in financial services,'' the spokesman said.

He described the bank's credit expansion as both "aggressive and sound'' and attributed this to the strong business relationships its senior management had developed over many years in the industry.

The bank has an issued share capital of Rs. 232.7 million.

Pramuka's directors are Messrs. C.R.S. Perera, A.H.A. Mendis, K.E.C. Perera, G.U. Nanayakkara, J.A.D. de Lanerolle, Dr. C.W.P. CanagaRetna and G.S.L. Jinadasa.