Srilanka, Feb. 25 -- Hatton National Bank PLC (HNB) reported blowout profits for the October-December quarter, stemming mainly from the mammoth reversal of provisions made against the bank's investments in International Sovereign Bonds (ISBs) and also the fast-improving lending business, amid lower interest rates.

In the December quarter, the bank reversed provisions worth Rs.91.6 billion, as the bond restructuring came to a close in December, with the banks opting for the bond exchange.

However, the bank could recognise only Rs.81.68 billion as provision reversals in the period, which may have partly been offset by the fresh provisions made for loans and advances. Simultaneously, the bank recognised a loss of Rs.49.5 billion, from the...