Business Model

Strategic Direction

Accomplishments of the Year 2016

Increasing Market Share in all Key Business Segments

  • Corporate Banking portfolio expanded by 14%
  • Branch Banking portfolio recorded an increase of 19.5%
  • Business Banking portfolio recorded a growth of 12%
  • Retail Assets Portfolio, including finance leases recorded a growth of 12.3%
  • Recorded lowest NPL ratio in the recent past of 2.97%
  • Developed a comprehensive SME Strategy incorporating rural banking and small enterprise sectors
  • Diversified the Corporate Banking portfolio by penetrating more segments
  • Extended Premier Banking services
  • Expanded the branch network

Cost Efficiency Funding

  • Increased the customer deposit base YoY by 27%
  • CASA improved to LKR 28,447 million as at
    31 December 2016, recording a CASA ratio of 20%
  • Developed innovative new products i.e. Vardhana Xtreme Saver, Vardhana Salary Booster
  • Raised LKR five billion and LKR seven billion through two listed debenture issues
  • Segmented customers effectively with greater
    emphasis on minors, pensioners and high net-worth (HNW) clients
  • Increased the sales force to drive liability products
  • Formed the Payments and Cash Management unit to promote CASA and Other Income

Diversifying Income Streams

  • Attracted new trade business clients and increased utilisation of trade facilities
  • Introduced the Vardhana Virtual Wallet
  • Increased fee and commission income YoY by 13%
  • Recorded income from Bancassurance was
    LKR 49.8 million
  • Cross-sold fee-based products to existing clients
  • Explored opportunities in investment advisory and treasury management services
  • Offered tailor-made treasury products to selected corporate clients

Improving Employee Satisfaction

  • Continued to ensure productivity amidst rapid growth and diversification of business by engaging in career development, rotations, transfers etc. in a timely manner
  • Engaged with ‘Great Place To Work’ with the objective of building a sustainable integrated culture
  • Maintained the staff attrition rate below 8% during the period (excluding retirements/contract expiries)
  • Continued to invest in growth of staff by developing training plans based on job specific training schedules and individual development plans
  • Successfully aligned talent profiles to job roles
  • Reviewed Branch Banking functions and engaged in effective capacity planning and utilisation of resources

Improving Brand and Product Awareness

  • Maintained brand presence throughout the year, engaging in mass media communications, market activations and revamping appearance of branches
  • Established a clear Bank-wide understanding of customer expectations and the level of service
    delivery required
  • Increased awareness on SME products and services offered by the Bank
  • Participated in Education Fairs as banking partner and worked with selected educational institutions
  • Engaged in sponsorships such as the World Export Development Forum, Economic Forum, Journalism Awards for Excellence and Global Shapers Conference as Exclusive Banking Partner
  • Increased customer interaction and engagement on the Bank’s website and social media channels

Key Focus Areas for 2017

Consumer Banking

  • Effective customer segmentation
  • Deploy foot soldiers for personal selling
  • Identify and introduce new product offerings and value additions
  • Structure consumer banking at a branch level
  • Implement an effective channel strategy
  • Establish a strong presence through marketing and advertising
  • Introduce the Premier proposition at selected branches
  • Broad base retail banking customers
  • Partner with local property developers for promotion of housing loans

Digital Strategy

Introduction of:

  • Credit card system
  • New work flow management system
  • Payments and cash management solution
  • Comprehensive treasury management system
  • eStatements
  • Enterprise alert platform
  • Business intelligence tool

Small Enterprise Strategy

  • Cluster leaders and field officers to promote small enterprise financing
  • Centralise the loan approval process to enhance effectiveness of appraisals, documentation and disbursement
  • Organise capacity building workshops in the North Western, Central and Western Provinces
  • Introduce marketing campaigns to create awareness among the rural and semiurban business communities
  • Capitalise on new Swashakthi line of credit for Micro, Small and Medium Enterprises