Management Discussion and Analysis

Operations Review

People and People’s Rights

The key indicators presented in this section are to do with people…our people…our employees, their development, well-being as well as the subject of human rights. The data presented herein is an evaluation of the Bank's stewardship of these precious resources and an accounting of its record in safeguarding them.

Employment

Total Employment by Employee Type, Contract, Region and Gender

The tables and graphs given below provide information on total workforce by region, employment type, age analysis, service analysis, gender and contract.

Breakdown of Workforce by Province

Province/ Departments and Other Business Units	2012				2011				2010
	No. of Branches	No. of Employees			No. of Branches	No. of Employees			No. of Branches	No. of Employees
	No. of Branches	Male	Female	Total	No. of Branches	Male	Female	Total	No. of Branches	Male	Female	Total
Central	20	213	64	277	16	205	59	264	16	208	59	267
Eastern	9	82	13	95	9	80	19	99	6	66	17	83
Northern	14	124	67	191	12	113	61	174	10	91	57	148
North-Central	6	75	10	85	6	77	7	84	5	69	9	78
North-Western	19	188	40	228	16	197	41	238	14	188	32	220
Sabaragamuwa	14	146	15	161	14	147	14	161	12	140	13	153
Southern	23	248	70	318	22	251	64	315	20	245	62	307
Uva	8	75	9	84	8	74	13	87	6	65	7	72
Western	114	1,286	529	1,815	110	1,299	469	1,768	98	1,236	466	1,702
Departments and Other Business Units		875	271	1,146		859	277	1,136		819	271	1,090
Bangladesh	17	158	44	202	17	157	41	198	17	162	39	201
Total	244	3,470	1,132	4,602	230	3,459	1,065	4,524	204	3,289	1,032	4,321

Employment Type: Full-Time, Part-Time and Outsourced

The Bank as a policy does not employ staff on part-time basis. The percentage of full-time employees and out-sourced employees remained unchanged over the three-year period 2010 to 2012, although the total numbers continued to grow proportionately as shown below:

Employee Type	No. of Employees			Composition of Employees %
	2012	2011	2010	2012	2011	2010
Full-Time Employees - Male	3,470	3,459	3,289	75.40	76.46	76.12
Full-Time Employees - Female	1,132	1,065	1,032	24.60	23.54	23.88
Total	4,602	4,524	4,321	100.00	100.00	100.00
Outsourced Employees - Male	344	330	308	56.39	53.66	50.41
Outsourced Employees - Female	266	285	303	43.61	46.34	49.59
Total	610	615	611	100.00	100.00	100.00

Age Analysis of Employees as at December 31

Category	Corporate Management		Executive Officers		Junior Executive Assistants & Allied		Banking Trainees (BTs) and Graduate Trainees (GTs)		Office Assistants & Others		Total		Total		Total
Category	Corporate Management		Executive Officers		Junior Executive Assistants & Allied		Banking Trainees (BTs) and Graduate Trainees (GTs)		Office Assistants & Others		2012		2011		2010
	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female
51-60 years	16	3	170	36	23	24	0	0	43	0	252	63	260	54	262	49
41-50 years	11	0	286	184	48	146	0	0	59	0	404	330	382	294	364	265
31-40 years	1	0	655	179	232	103	1	0	9	0	898	282	811	300	699	316
21-30 years	0	0	275	62	1,175	232	432	142	0	0	1,882	436	1,933	406	1,869	387
20 & below	0	0	0	0	0	0	34	21	0	0	34	21	73	11	95	15
Total	28	3	1,386	461	1,478	505	467	163	111	0	3,470	1,132	3,459	1,065	3,289	1,032

Service Analysis of Employees as at December 31

Category	Corporate Management		Executive Officers		Junior Executive Assistants & Allied		Banking Trainees (BTs) and Graduate Trainees (GTs)		Office Assistants & Others		Total		Total		Total
Category	Corporate Management		Executive Officers		Junior Executive Assistants & Allied		Banking Trainees (BTs) and Graduate Trainees (GTs)		Office Assistants & Others		2012		2011		2010
	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female
Above 20 years	15	3	329	161	48	87	0	0	74	0	466	251	476	217	448	184
16-20 years	5	0	204	92	37	96	0	0	36	0	282	188	292	210	328	236
11-15 years	0	0	317	68	66	44	0	0	1	0	384	112	200	86	246	110
6-10 years	1	0	448	118	458	113	0	0	0	0	907	231	545	149	405	127
Below 5 years	7	0	88	22	869	165	467	163	0	0	1,431	350	1,946	403	1,862	375
Total	28	3	1,386	461	1,478	505	467	163	111	0	3,470	1,132	3,459	1,065	3,289	1,032

Employment Status

Contract Employees confirmed in service in 2012 increased in number, which is attributable to the growth of the Branch network during the period under review.

Status of Full-Time Employment as at December 31,	No. of Employees			Percentage of Employees by Type (%)
	2012	2011	2010	2012	2011	2010
Confirmed in Service	3,889	3,815	3,572	84.51	84.33	82.67
Undergo Training or on Probation	713	709	749	15.49	15.67	17.33
Total	4,602	4,524	4,321	100.00	100.00	100.00

Recruitment and Attrition

Total Number and Percentage of New Recruits by Age Group, Gender and Region

As at December 31,	2012				2011				2010
Age Group/Gender	Male	Female	Total	%*	Male	Female	Total	%*	Male	Female	Total	%*
Sri Lanka
51-60 years	0	0	0	-	0	0	0	-	2	0	2	0.72
41-50 years	1	0	1	0.14	2	0	2	0.32	2	0	2	0.35
31-40 years	1	0	1	0.09	1	0	1	0.10	5	0	5	0.52
21-30 years	105	102	207	9.16	292	52	344	15.11	286	75	361	16.39
20 years and below	1	0	1	1.82	4	2	6	7.14	8	0	8	7.27
Total	108	102	210	4.77	299	54	353	8.16	303	75	378	9.17
Bangladesh
51-60 years	0	0	0	-	0	0	0	-	0	0	0	-
41-50 years	2	0	2	4.65	0	0	0	-	0	0	0	-
31-40 years	2	0	2	2.78	2	6	8	12.90	2	1	3	4.84
21-30 years	10	6	16	27.12	10	5	15	24.19	12	6	18	33.96
20 years and below	0	0	0	-	0	0	0	-	0	0	0	-
Total	14	6	20	9.90	12	11	23	11.62	14	7	21	10.45
Grand Total	122	108	230	5.00	311	65	376	8.31	317	82	399	9.23

* As a percentage of the total number of staff in respective age groups as at the end of the year.

Total Number of Staff Attrition out of New Recruits by Age Group, Gender and Region

As at December 31,	2012				2011				2010
	Male	Female	Total	%*	Male	Female	Total	%*	Male	Female	Total	%*
Sri Lanka
51-60 years	0	0	0	-	0	0	0	-	0	0	0	-
41-50 years	0	0	0	-	0	0	0	-	0	1	1	0.17
31-40 years	0	0	0	-	0	0	0	-	10	3	13	1.36
21-30 years	4	4	8	0.35	23	1	24	1.05	1	0	1	0.05
20 years and below	1	0	1	1.82	5	0	5	5.95	0	0	0	-
Total	5	4	9	0.20	28	1	29	0.67	11	4	15	0.36
Bangladesh
51-60 years	0	0	0	-	0	0	0	-	0	0	0	-
41-50 years	0	0	0	-	0	0	0	-	0	0	0	-
31-40 years	1	0	1	1.39	0	0	0	-	0	0	0	-
21-30 years	0	0	0	-	0	0	0	-	2	1	3	5.66
20 years and below	0	0	0	-	0	0	0	-	0	0	0	-
Total	1	0	1	0.50	0	0	0	-	2	1	3	1.49
Grand Total	6	4	10	0.22	28	1	29	0.64	13	5	18	0.42

* As a percentage of the total number of staff in respective age groups as at the end of the year.

Total Number and Percentage of Staff Attrition by Age Group, Gender and Region

As at December 31,	2012				2011				2010
Age Group/Gender	Male	Female	Total	%*	Male	Female	Total	%*	Male	Female	Total	%*
Sri Lanka
51-60 years	30	6	36	12.54	25	4	29	10.21	22	3	25	8.96
41-50 years	5	2	7	1.01	5	3	8	1.27	4	5	9	1.57
31-40 years	15	8	23	2.08	14	4	18	1.72	16	6	22	2.31
21-30 years	45	23	68	3.01	73	14	87	3.82	45	11	56	2.54
20 years and below	1	0	1	1.82	5	0	5	5.95	0	0	0	-
Total	96	39	135	3.07	122	25	147	3.40	87	25	112	2.72
Bangladesh
51-60 years	5	1	6	21.43	1	0	1	3.33	3	0	3	9.38
41-50 years	-	0	8	18.60	5	3	8	18.18	14	2	16	29.63
31-40 years	3	5	2	2.78	9	1	10	16.13	12	2	14	22.58
21-30 years	2	0	0	-	7	0	7	11.29	0	0	0	-
20 years and below	0	0	0	-	0	0	0	-	0	0	0	-
Total	10	6	16	7.92	22	4	26	13.13	29	4	33	16.42
Grand Total	106	45	151	3.28	144	29	173	3.82	116	29	145	3.36

* As a percentage of the total number of staff in respective age groups as at the end of the year.

Total Number and Percentage of New Recruits and Attrition by Grade and Gender

As at December 31,	2012				2011				2010
Grade	Male	Female	Total	%*	Male	Female	Total	%*	Male	Female	Total	%*
New Recruits
Corporate Management	0	0	0	-	2	0	2	5.41	2	0	2	5.88
Executive Officers	5	1	6	0.32	8	8	16	0.89	8	3	11	0.66
Junior Executive Assistants & Allied	11	6	17	0.86	10	5	15	0.79	8	2	10	0.53
Banking Trainees	106	101	207	32.86	291	52	343	52.21	299	77	376	60.94
Office Assistants & Others	0	0	0	-	0	0	0	-	0	0	0	-
Total	122	108	230	5.00	311	65	376	8.31	317	82	399	9.23
Staff Attrition
Corporate Management	3	0	3	8.82	2	0	2	5.41	1	0	1	2.94
Executive Officers	39	17	56	3.03	33	9	42	2.33	39	8	47	2.83
Junior Executive Assistants & Allied	30	19	49	2.47	49	13	62	3.25	43	15	58	3.09
Banking Trainees	24	9	33	5.24	50	7	57	8.68	28	6	34	5.51
Office Assistants & Others	10	0	10	9.01	10	0	10	8.20	5	0	5	3.70
Total	106	45	151	3.28	144	29	173	3.82	116	29	145	3.36

* As a percentage of the total number of staff in respective grades at the end of the year.

Total Number of Attrition by Gender and Reason

There were 103 resignations from service during the year under review, while a further 30 employees retired, in the total turnover of 151 employees.

Details of Staff Attrition by Gender, Region and Reasons are tabulated below:

As at December 31,	2012				2011				2010
	Male	Female	Total	%*	Male	Female	Total	%*	Male	Female	Total	%*
Sri Lanka
Resignations	61	32	93	68.89	99	21	120	81.63	64	24	88	78.57
Retirements	20	4	24	17.78	15	3	18	12.24	14	1	15	13.39
Deceased	1	0	1	0.74	3	1	4	2.72	4	0	4	3.57
Terminations	10	2	12	8.89	4	0	4	2.72	5	0	5	4.46
Premature Retirement on Medical Grounds	4	1	5	3.70	1	0	1	0.68	0	0	0	-
Total	96	39	135	100.00	122	25	147	100.00	87	25	112	100.00
Bangladesh
Resignations	5	5	10	62.50	19	3	22	84.62	24	4	28	84.85
Retirements	5	1	6	37.50	3	1	4	15.38	5	0	5	15.15
Deceased	0	0	0	-	0	0	0	-	0	0	0	-
Terminations	0	0	0	-	0	0	0	-	0	0	0	-
Premature Retirement on Medical grounds	0	0	0	-	0	0	0	-	0	0	0	-
Total	10	6	16	100.00	22	4	26	100.00	29	4	33	100.00
Grand Total	106	45	151	-	144	29	173	-	116	29	145	-

Benefits Policy and Regime

The Bank has devised and implemented a regime of procedures and facilities that seek to ensure the enactment of fair labour practices and a conducive work environment. In addition to the provisions made in respect of employee welfare and benefits under the Shop and Office Employees' Act, the Bank has gone further to enhance the facilities and benefits afforded to its staff to ensure a continuous improvement in their working lives. In this regard, the permanent employees of the Bank are provided with the benefits listed below:

Performance-related bonus or bonus under the collective bargaining agreement.
Fuel allowance for executive cadre and transport allowance for non-executive cadre.
Holiday bungalows.
Staff loans at concessionary interest rates
All staff are members of a private provident fund administered by an Independent Board of Trustees according to the provisions of the Employees' Provident Fund Act and the regulations framed from time to time thereunder. In addition, employees who were entitled to a pension at the time of hiring are now entitled to participate in an alternate terminal benefits plan where such benefits are offered as a single lump-sum payment.
Medical benefits enjoyed by all employees include special health insurance cover for critical illnesses and staff loan schemes (at concessionary interest rates) to tide over an illness in the family.
The Bank's death gratuity scheme entitles the legitimate dependants of a confirmed employee (who is not subject to the alternate terminal benefit plan described above) to a compassionate payment of 2 months gross salary for each year of completed service (subject to a minimum of nine months' gross salary) in the event of his or her demise. Under the Group life policy, those dependants also receive a sum equal to 24 months salary (based on the last drawn salary) of the deceased.
The Bank also operates a personal accident insurance scheme which, in the event of an accident causing the death of an employee, entitles his or her legal dependants to a sum equal to 60 months' salary as last drawn.
Staff members assigned to various branches of the Bank may be entitled to certain benefits designed to offset the difficulties and hardships arising from employment at a particular branch. Depending on staff requests and the recommendation of the Regional Manager under whose purview the branch in question operates, an employee may receive benefits such as the provision of staff accommodation free of charge, transport, a difficult-station allowance or a house rent allowance.
The reimbursement of selected professional-association subscriptions and the honoraria paid to employees provide further examples of the Bank's commitment to its employees' welfare.
The Bank also encourages all its Branches/Departments in organising their annual get-together/excursion by providing an annual allowance for each employee.

Although the employees outsourced by the Bank are not entitled for all of the above benefits, they are paid at least the minimum wages under the applicable statutes and all mandatory contributions to defined contribution plans such as Employees' Provident Fund, Employees' Trust Fund and in addition Gratuity payable under the Payment of Gratuities Act.

Return to Work and Retention Rate after Maternity Leave

Country and Description	2012	2011	2010
Sri Lanka
No. of Employees entitled for maternity leave	1,088	1,023	993
No. of Employees who took maternity leave	58	64	63
No. of Employees who returned to work after maternity leave	43	64	63
No. of Employees who are still employed for the last 12 months after returning from maternity leave	58	64	61
Return to work rate (%)	100	100	98
Retention rate (%)	100	100	96.18
Bangladesh
No of Employees entitled for maternity leave	30	30	24
No of Employees who took maternity leave	4	3	2
No of Employees who returned to work after maternity leave	4	3	2
No. of Employees who are still employed for the last 12 months after returning from maternity leave	0	3	2
Return to work rate (%)	100	100	100
Retention rate (%)	100	100	100

Employees Covered by Collective Bargaining Agreements

The following table illustrates that 2,928 or 63.62% of the total cadre of the Bank's Sri Lankan operations as at December 31, 2012 were covered by Collective Agreements.

Name of Employee Association	2012		2011		2010
Name of Employee Association	No. of Employees	%	No. of Employees	%	No. of Employees	%
Ceylon Bank Employees' Union	2,928	63.62	2,803	64.75	2,608	63.25
Commercial Bank Executive Association	588	12.78	548	12.66	338	8.20
Total	3,516	76.40	3,351	77.41	2,946	71.45

There are no Unions/Employee Associations in Bangladesh.

Minimum Notice for Operational Change Implementation

All matters which involve operational changes are implemented after due consultation with Focus Groups, Employee Associations and Shareholders. This process helps establish mutual understanding and contributes to transparency.

The Collective Agreement that is in force specifies when the time negotiations should commence when the revision of the Agreement is due. As per the present Agreements, negations are to commence 9 months prior to the expiry of the reigning Agreement.

Occupational Health and Safety

Employee Representation on Health and Safety Committees

Although, there are no special Health and Safety Committees appointed at the Bank, the responsibility for this subject is vested with the Human Resource Department. In order to effectively address concerns related to health and safety of the employees, the HR Department often works together with the employee associations and makes proposals to the top management on changes, initiatives and measures that should be adopted by the Bank to create a safe working environment for its employees.

Special work arrangements and transport facilities to distant Branches are some processes, implemented by the Bank considering the safety of its employees.

The Bank's Security Department conducts periodic fire drills at the Bank's Head Office and the Union Place Building in order to impart awareness and to ensure that all staff could respond appropriately in emergency situations. Subsequent to these fire drills, an email communication is sent to all staff highlighting the feedback obtained, lapses observed and recommendations for remedying the lapses. Further, all staff of the Bank have access to the Intranet site of the Security Department which has clearly spelt out the procedure to be followed in case of an emergency. In addition, the Security Department has identified a dedicated team representing each business/service unit of the Bank to supplement their work, providing them with a comprehensive training on prescribed and desired response to incidences of fire, burglary, earthquakes and other similar situations of threat.

Safety Training

During the year under review, the Staff Development Centre of the Bank conducted a fire training programme attended by 158 participants (covering 3.59% of the total staff cadre) representing branches and departments in the Head Office premises. The training spanned over 1,264 man hours.

Programme	2012			2011
Programme	No. of Programmes	No. of Participants	Man Hours	No. of Programmes	No. of Participants	Man Hours
Fire Awareness Programme for Group Leaders	1	149	1,192	1	87	696
Programme on Fire Aid Fire Appliances and Practical Fire Demonstration	1	9	72	1	25	200

Injuries, Occupational Diseases and Fatalities at Work

During 2012, there were 11 accidents reported. However, none of these resulted in work-related fatalities. The details of lost days by region and by gender are given below. Lost days count begins on the day after the accident.

Province	2012						2011
	Total No. of Injuries		Injury Rate		Lost Days		Total No. of Injuries		Injury Rate		Lost Days
	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female	Male	Female
Western	7	-	0.1521	-	244	-	5	1	0.110	0.022	175	14
Central	4	-	0.0870	-	151	-	-	-	-	-	-	-
Eastern	-	-	-	-	-	-	2	-	0.044	-	23	-

Education and Risk Control on Health Issues

In order to minimise the risks arising from occupational health and safety issues, the Bank adopts several measures to track, prevent or mitigate such risk. As regards ensuring and maintaining a healthy workforce, the Bank ensures that all new recruits undergo extensive medical screening prior to employment. Thereafter, a regular medical regime is in place to help staff and their families maintain good health.

The Bank's Staff Development Centre conducts training on handling work-related stress. Employees identified as being affected by high levels of stress and traumas are provided with counselling to support their rehabilitation. The Human Resources Management Department of the Bank too conducts periodic dust and emission tests in relation to certain vulnerable locations across the branch network. In addition, the Premises Department of the Bank carries out periodic pest control programmes at the Head Office, Union Place premises and at our Branches.

Health and Safety Topics Covered in Formal Agreements with Trade Unions

The Collective Agreement also covers health and safety topics. Under one of the key provisions on this subject, employees who are 40 years or above in age are entitled to claim the expenses that they incur on account of full medical check-ups without being admitted to a hospital, subject to a maximum threshold. This is a special benefit available to employees over and above their entitlement under the Medical Scheme of the Bank.

Training and Education

Training and Professional Development

The Staff Development Centre of the Bank at the last quarter of each calendar year, carries out a training requirement analysis of staff at all levels for the forthcoming year on a needs basis. In addition to this formalised approach, in an ongoing initiative throughout any given year, the Training Centre will, in consultation with the relevant line management, respond to other training requirements as required by business development. Such additional training may be carried out, using in-house and/or external training resources. Subsequently, the participation of nominees is monitored and their feedback obtained will be used for future improvement and identification of new training needs in response to the training needs of an evolving business environment.

Our Staff Development Centre focuses on the soft skills developed by them through the years and continues to 'listen to', 'empathise with' and 'touch' all our employees to better their lives.

Value addition and learning will continue to be the primary factors of recognition sought to retain top talent pools.

The team at the Staff Development Centre is dedicated to co-ordinate skill transformation in order to prepare the Bank to meet the challenges and exciting expectations of a new tomorrow.

In the year under review, the Bank spent a total of Rs. 51.62 Mn. on training and education programmes. A total of 455 training programmes involving 103,956 person-hours of training were executed during the year.

In keeping with practice, the Bank continued to identify high performers among its senior management, through a process of 'talent discussions' conducted annually. Through this exercise, leadership competencies are identified and a pool of talent is created to serve the long-term needs of the Bank.

The training programmes conducted by the Bank include technical, soft skills and overseas training, as externally-held training programmes.

Average Hours of Training per Year per Employee by Employee Category and Gender in Sri Lanka

Employee Category and Type of Programme	2012				2011				2010
	Training Hours				Training Hours				Training Hours
	Male	Female	Total	Per Employee	Male	Female	Total	Per Employee	Male	Female	Total	Per Employee
Corporate Management	1,454	38	1,491	43.85	1,953	126	2,079	56.19	552	95	647	19.03
Technical	825.5	38	863	25.38	1,214	88	1,302	35.19	258	59	317	9.32
Soft skills	156	0	156	4.59	219	38	257	6.95	22	4	26	0.76
Overseas	472	0	472	13.88	520	0	520	14.05	272	32	304	8.94
Executive Officers	29,489	8,527	38,016	20.58	33,953	10,264	44,217	24.58	31,517	9,011	40,527	24.44
Technical	25,891	6,793	32,684	17.70	25,665	7,373	33,038	18.36	19,009	5,437	24,445	14.74
Soft skills	2,654	1454	4,108	2.22	6,792	2,451	9,243	5.14	11,500	3356	14,856	8.96
Overseas	944	280	1,224	0.66	1,496	440	1,936	1.08	1,008	218	1,226	0.74
Junior Executive Assistants & Allied Grades	19,423	3,014	22,437	11.33	35,427	8,511	43,938	23.02	23,904	3,716	27,620	14.71
Technical	18,295	2,596	20,891	10.55	34,649	8,252	42,901	22.47	23,188	3,496.5	26,685	14.22
Soft skills	1128	418	1,546	0.78	690	259	949	0.50	716	219	935	0.50
Overseas	0	0	0	-	88	0	88	0.05	0	0	0	-
Banking Trainees	29,360	12,652	42,012	66.69	20,244	4,810	25,054	38.13	21,644	5,567	27,211	44.10
Technical	28,104	12,336	40,440	64.19	20,116	4,806	24,922	37.93	21,032	5,446.5	26,479	42.91
Soft skills	1256	316	1,572	2.50	128	4	132	0.20	612	120	732	1.19
Total	79,726	24,231	103,956	22.59	91,577	23,711	115,288	25.48	77,617	18,388	96,004	22.22

Continuing with the Bank's strong commitment towards developing a learning culture, it is pertinent to note that employees underwent a total of 100,624 man hours of training during the year in Sri Lanka (110,510 man hours during 2011) and a total of 3,332 man hours of training during the year in Bangladesh (4,778 man hours during 2011) on various knowledge building programmes.

This works out to an average of 22.59 man hours of training per employee (25.48 man hours per employee during 2011).

Our Investment on Training

In 2012 too, the Bank continued to invest in human capital development and its investment on training increased to Rs. 51.62 Mn. from Rs. 49.75 Mn. in 2011 representing an increase of 3.75%.

The graph below amply demonstrates the Bank's commitment over the past five years towards strengthening the staff development process to support its efforts to delight our valued customers across all business units.

Skills and Competency Development

The year 2012 was significant as the Bank commenced a Centre to conduct training in the Northern Region of Sri Lanka. This centre is expected to contribute more during the ensuing year as it caters to a region which was mostly isolated during the longstanding war. We have also set up a special training calendar for our own employees in the Northern region in an effort to motivate them as they emerge from serving in a conflict zone with all its attendant difficulties. We recognise their duress; some of our employees lost their lives whilst in service to the Bank and to those who remain, the Bank owes rehabilitation and motivational programmes, at the very least. Thus during 2012, our Staff Development Centre conducted 261 internal training Programmes and 172 external local Programmes.

For frontline staff, the medium of initial customer contact, 07 training programmes were facilitated. Frontline staff competency was improved by capability enhancement training.

Management and Leadership capabilities were also enhanced to concurrently meet current and future needs, create new knowledge wealth as well as fashion a well-prepared workforce. 13 value adding, continuous programmes assessing and studying specified required elements were hence orchestrated.

Training targeted key areas such as Northern Region Management Development; Communication Enhancement; Service Excellence and Relationship Integration.

A summary of the programmes conducted targeting skills and competency development is tabulated below:

Programme Name	Objective	No. of Programmes	No. of Participants	Training Hours
Programme on Managing Key Clients and Building Relationships	To enhance skills required for better customer relationship (CRM)	1	14	112
Programme on 'A Holistic Approach to Strategic Decision Making'	To enhance the decision-making skills of the members of Senior Management	1	23	368
Good to Great: Relationship Management Programme	To generate positive results and to achieve high performance levels that will sustain through effective rapport, through building and maintaining trust and through persuasion. This Programme was conducted for Account Managers attached to the Corporate Banking Unit.	2	10	200
Management Development Programme for Managers and Assistant Managers in Northern Region	To provide the professional skills to assist the executives in the Jaffna Peninsula to effectively function in a corporate environment	1	22	704
Programme on Service Excellence	To create a mindset in our front line staff to deliver excellent customer service	6	298	2384
Oral Communication Programme for BTs	To develop Communication skills of the Banking Trainees (Oral and Written English)	1	56	328
Programme on General Management Competencies : jointly with CIMA Sri Lanka	To enhance competencies such as, business modelling which includes pricing, cost structure, activity-based costing, organisational branding, human resources management, strategies etc. involved in carrying out their duties effectively when working as members of the Senior Management	1	24	1344

Details of some of the other important training initiatives during 2012 are summarised below:

Programme on Secretarial Excellence
To assist the secretaries to improve their performance levels
IT Risk Awareness Session for Corporate and Senior Management Team
To influence positive behavioural change in all employees towards IT risk awareness thus leading to the creation of a more secure corporate environment
Programme on International Financial Reporting Standards
An awareness Programme for the members of the Bank's Inspection Team
Programme to Promote Products of the Bank
To enhance the product knowledge among front line staff to better equip them to promote the Bank's products
Banking Trainee Integration & Learning Seminar
An integration exercise bringing Banking Trainees into contact with the Corporate Management of the Bank, where the Management shared their experience with the Trainees regarding the required values and qualities necessary for them to effectively function as front line staff
Internship Programme
The Bank launched its first structured internship programme during the year, designed to equip outsiders entering the job market. Ten selected interns commenced a 9-month training stint in branch operations with the objective of providing them focused training and work experience.

Career Development Review

All employees of the Bank irrespective of their gender receive formal performance and career development reviews. This process helps the Bank in identifying and enhancing the salient skills of employees and developing them on an ongoing basis.

Equal Remuneration for Women and Men

The ratio of basic salary of women to men by employee category is tabulated below:

Category	Ratio for Basic Salary Women to Men
	2012	2011
Corporate Management	1:0.82	1:0.75
Executive Officers	1:0.96	1:1.02
Junior Executive Assistants and Allied	1:0.90	1:1.12
Banking Trainees	1:1.08	1:1.04
Office Assistants and Others	1:1.16	1:0.88

Other Related HR Accomplishments During 2012

This year too, the Bank undertook several important non-training-related initiatives, some ongoing, including the following in Sri Lanka:

A market survey to ascertain the Bank's relative position in terms of compensation and benefits to staff; findings to be used in relation to collective agreements and revision of executive compensation packages.
Support for branch expansion drive through recruitment, training and staff allocation.
Efforts towards better utilisation of staff at branches, with staff allocations based on branch location and business volume.
Efforts to improve trainee intake quality through further strengthening our brand-image as the 'Bank of choice', carrying out recruitment drives at selected schools, and revising our training processes.
Building closer relationships with employee organisations.
Entering into Collective Agreements and a MOU with the employee unions covering non-executive staff and junior executive staff for the period of 2012 to 2014.
Personal 'Banking Awards' was organised for the first time to reward the staff on the hard work and dedication based on the achievements of the respective branches.
Rewarding selected staff with seniority and attendance awards.
Organising a variety of social events for staff in order to maintain work-life balance, including the very popular Quiz Competition, Children's Party, Poson Bakthi Gee, Christmas Carols, Sports Carnivals (which included games such as, Cricket, Rugby, Football, Netball), Regional Gatherings and Branch/Dept. annual get-togethers/excursions.
Honorarium for completing Banking exams as well as other professional course to encourage enhancement of knowledge
The main library at the Head Office was expanded while invaluable book exhibitions were held.
Branch libraries were developed.
Publication of the Bank's HR Manual in compliance with Central Bank Guidelines.
Implementing a number of employee suggestions relating to sales and service enhancement as part of an interactive feedback process.
Ongoing publication of the Bank's internal newsletter, Com Pulse.
Improving on the use of the 'log book' for banking trainees and work-based training guide.
Career guidance programmes/job fairs conducted.
Automation of systems to collate and prioritise training needs as well as in organising training activities.

In addition to the above, the Bank's Bangladesh Operation too took several initiatives of their own during the year:

During 2012, the Human Resource Department participated in a Job Fair organised by various public and private universities which allowed the Bank access to graduates interested in joining the Bank. Participation at the Job Fair also allowed the Bank to conduct advertising, branding and image building thus promoting the Bank and its products among the visitors and other participating organisations.
The Human Resources Department paid due recognition to the value and importance of Banking Studies by introducing an Award Programme for the Employees. Under this programme, employees who have passed the Diploma in Banking Examination were awarded Cash Prizes with Letters of Appreciation for their achievement and for qualifying at the examination arranged by the Institute of Bankers' Bangladesh (IBB).
A Library and Reference Centre has been set up in 2012 at the Bank's Head Office to assist employees with banking studies as well as the acquisition of knowledge on the Laws and Rules of Banking Operations.
During the year, Human Resources Department officials including the Head of Human Resources attended various Seminars and Courtesy Meetings with Trade and Human Resources delegates at Bangladesh Employers' Federation and The Metropolitan Chamber of Commerce and Industry (MCCI). The meetings, seminars and symposiums are mostly attended by the leaders of the trade bodies, ministers, and representatives from diplomatic missions and ILO.
The Commercial Bank of Ceylon Bangladesh also completed the revision, modification and update of its Comprehensive Human Resources Manual during the Year 2012.

Compensation and Benefit Strategy of the Bank

Since there is no regulation in place under the Shop and Office Employees Act indicating the minimum wage applicable to employees covered under such Act, through collective bargaining and continuous dialogue between and among employee organisations, corporate peers and labour authorities, the Bank keeps abreast with the current trends and policies pertaining to wage practices in the banking industry and the mercantile sector as a whole. The wage policy of the Bank is based mainly on the Collective Agreements that are in operation covering specified employee categories and market surveys carried out from time to time which indicates the highest and lowest range of wage structures prevailing in the industry.

The 2012 Collective Agreement entered into by the Bank and the Ceylon Bank Employees' Union stipulates the minimum wages for Junior Executive Assistants and allied grades. Both Collective Agreements covering Junior Executive Assistants and the Non-Executive Grades specify the annual increment entitlement of an employee. With regard to the Junior Executive Assistant Grade, the Collective Agreement further spells out the annual increment such employee will receive based on the grading he/she has obtained on the annual performance appraisal. Also, clear reference is made to other pecuniary benefits, such as out of pocket allowance, travelling allowance, disturbance allowance among others that would accrue to the employee apart from his/her monthly wage.

With regard to the employees not covered under the Collective Agreements, wages and perquisites are decided mainly taking into consideration the market rates applicable for similar categories/jobs.

The Bank has the economic well-being of its employees at heart and recognises that some aspects of employment could be difficult to negotiate. Due cognizance has been taken of the facilities that are available in particular locations at the time of opening branches. Depending on the recommendations of the Regional Offices and the requests of the staff, the Bank has provided various benefits to those stationed in such difficult locations. These include provision of benefits both monetary and otherwise such as provision of staff quarters free of charge, transport arrangements, difficult station allowance and rent allowance. The medical scheme of the Bank, staff loan schemes and the professional association subscription/honorarium payments paid to employees provide further examples that demonstrates the Bank's commitment towards its employees' welfare as a responsible employer.

Recruitment Procedure

All recruits to corporate management and senior management grades are drawn from citizens of the respective country - Sri Lanka and Bangladesh - except for those positions in Bangladesh for which recruitment from Sri Lanka is allowed.

The general procedure followed by the Bank when recruiting staff is discussed below:

There are two entry levels to the Bank; as Banking Trainees or as Management Trainees. Mid career recruitment will take place only in relation to specialised job positions. The recruitments take place mainly at the Head Office situated in Colombo and Dhaka in Bangladesh. Applicants from all parts of their respective countries are called to these locations as and when applicable, for examinations and/or interviews.

With regard to mid career recruitments, the basis for recruitment is the competencies held by the respective individual and the experience he / she carries in the required field of work. Hence, such recruitment is carried out independent of any geographical concerns.

Training Employees on Human Rights

During the year 2012, 72 participants from the Human Resource Department received a total of 684 man hours of training on policies and procedures concerning various aspects of human rights that are relevant to the Bank's operations. This was restricted to staff of the HR Department for purposes of practicality. These officers at the HR Department are available to assist other staff members when they need help on issues connected with human rights.

Name of the Programme	No. of Programmes	No. of Participants	No. of Hours
Sri Lanka
Power to People - Learning Conference (HRM AWARDS 2012)	1	16	128
International HR Conference 2012 - People Drive	1	10	128
EFC Cir. No. 59 of 2012 - Employers' Symposium on 'Harnessing Innovation for Organisational Sustainability'	1	2	24
EFC Cir. No. 60 of 2012 - Great Place to Work - Building Trust and Inspiring Performance	1	1	8
HRP Achievers Forum	1	7	28
Employee Motivation and Reward Management	1	1	16
Certificate Programme in Labour Law and Industrial Relations 2012	1	1	96
EFC HR/IR FORUM	1	1	4
EPF and ETF Acts & Employee Benefits	1	3	12
Total	9	42	444
Bangladesh
Promoting Gender Equality and Preventing Violence against Women at Workplace	1	28	224
TOT Workshop HIV/AIDS at Enterprises Level	1	2	16
Total	2	30	240
Grand Total	11	72	684

Non-Discrimination

The Bank's strict adherence to Human Rights Best Practice as enshrined by the United Nations and the ILO and our own strong ethical grounding, have ensured that to date no incidents of discrimination have been recorded.

Freedom of Association and Collective Bargaining

The Bank continuously maintains very cordial dialogue with its two employee associations. In doing so, the Bank also acknowledges that the 'right to organise' and the 'right to form and join a trade union' are fundamental rights granted to all employees of the Bank. The Bank believes that being a financial services provider, it does not have critical operations in which the right to exercise freedom of association or collective bargaining may be violated or be placed at significant risk.

Child Labour and Forced and Compulsory Labour

All employees of the Bank are engaged at their own free will. The minimum age for employment is 18 years.

Also on the topic, the Bank's outsourcing agreements with the labour contractors require that the Agency providing services or personnel to the Bank shall not engage/supply persons who are under the age of 18 years, and as a condition to doing business with the Bank, must not employ or supply underage persons in their enterprise even in their business dealings with other external parties.

Security Practices

The Bank's policies and procedures concerning aspects of Human Rights are communicated in writing to all security service providers. They are in turn advised to communicate them to all personnel who are assigned by their firms/companies to carry out duties at the Bank. The Bank's Senior Manager - Securities conducts periodic verifications on the awareness amongst security personnel of the said policies and procedures in connection with Human Rights.

Security Personnel Trained on the Bank's Procedures Concerning Aspects of the Human Rights

During the year under review, the Bank provided 7,632 man hours of training for Security Officers in Sri Lanka on security aspects, including Information Technology security.

Although there were no special training programmes conducted for security staff in Bangladesh, all security officers have been educated on the Bank's procedures connected to aspects of human rights.

Name of the Program	2012
	No. of Programmes	No. of Participants	Man Hours
Special Training Programme for Newly Recruited Security Officers	2	318	2,544
Special Training Programme for Contracted Security Officers	3	467	3,736
Special Training Programme for Senior Security Officers	1	169	1,352
Total	6	954	7,632