Business Model

Strategic Direction

Performance Highlights 2015
Future Strategies

Increasing market share in all key business segments

  • Corporate Banking portfolio expanded
    to 49,039 million
  • Branch Banking portfolio recorded an increase of 23%
  • Business Banking portfolio recorded a growth of 25%
  • Personal Banking including finance
    leases recorded a growth of 37%
  • Took part in a syndicated loan facility
  • Successful in off-shore asset financing
  • Optimised cross-selling by structuring the facilities for customer requirements
  • Set in place a cross functional structure encompassing all related functions to enhance the cross departmental processes
  • Revised exposure limits in line with emerging trends and developments and maintained NPL ratio at 3.7%
  • Carried out sector focused marketing campaigns by regions
  • Diversified personal banking with more products and new features
  • Improved positive customer experience through benchmarked standards
  • Developed a comprehensive ‘SME strategy’ incorporating the rural banking and micro financing sectors
  • Increase awareness levels of the corporate brand – enhance the brand through the use of personal relationships
  • Cross-sell the Group products and services
  • Organise regular relationship building events for top management and selected groups
  • Expand international operations and consultancy services
  • Regular entertainment of corporate clients: sponsorships, special events, etc.
  • Extension of premier banking services to selected high net worth branch banking customers
  • Corporate Banking: Focus on low margins and high volume strategy resulting in reduction in cost-per-delivery
  • Business Banking: Focus on medium margin and medium volume strategy to fit into risk return
  • Branch Banking: Aggressive pricing for acquiring new relationships and continue to focus on SMEs
  • Take anticipatory and preventive actions to maintain portfolio quality

Cost efficient funding

  • Increased customer deposit base by
    LKR 19,108 million
  • CASA improved to LKR 21 million as at
    31 December 2015 from LKR 18 million as at 31 March 2015
  • Raised LKR Five billion through a listed debenture issue
  • EIB, SME and Green Energy credit line
    of LKR 5,679 million as long-term
    funding lines
  • Negotiate for additional credit lines
    from FMO, EIB, DEG, ADB etc.
  • Improve the CASA ratio

Diversify income streams

  • Invested LKR Two billion during the period in listed debentures
  • LKR 20,777 million fee income from
    credit line management operations
  • USD 94,050 as consultancy income from international operations
  • Fee and commission income improved
    by 2% mainly through trade and
    remittance business
  • Invest in listed shares (increase
    trading portfolio)
  • Invest in listed debentures and unit trusts
  • Explore opportunities for off-shore operations
  • Promote insurance (bancassurance) products for new and existing customers
  • Create customer awareness on ‘Lanka Money Transfer’ remittance business
  • Increase utilisation of existing limits in trade businesses

Improving employee satisfaction index

  • Continued with initiatives on career development, rotations, rewards and recognition, transfers etc.
  • Maintained the staff attrition ratio below 8% during the period (excluding retirements/ contract expiries)
  • Organised quarterly meetings with department heads to share HR information and discuss issues
  • Developed training plans based on grade/job specific training schedules and individual development plans
  • Formulated and disseminated training calendars to staff
  • Identified potential successors for critical positions and initiated development measures as appropriate
  • The HR teams visited 70% of the branch network during the period to meet the branch staff and discuss their issues
    and concerns
  • Continue to improve employee communications, transparency of processes and methods of addressing employee needs
  • Continue job rotation between support and front line staff at common branches
  • Re-skilling support staff
  • Continue the talent management process using the Nine Box model
  • Implement a resourcing strategy for
    sales staff
  • Review promotions framework – more focus on performance/competencies than qualifications, study industry practices
  • Develop leadership development programmes for senior and middle management

Improve business promotion and customer loyalty

  • Carried out marketing campaigns during the period
  • Continued customer training programmes
  • Sponsored a seminar on Export & Import Procedure conducted by the Ceylon Chamber of Commerce and other similar programmes
  • Organised customer events for key branches
  • Introduced customer survey forms
    at branches
  • Structure marketing campaigns – Street campaigns, Pocket meetings, CSR projects by branch etc.
  • Arrange continuous awareness programmes through print media
  • Focus more on business and customer orientation to capture more business
  • Continue customer training programmes
  • Diversify the customer base through relationship building