Pushing the Pace in
a Resurgent Sri Lanka
a Resurgent Sri Lanka
Commencing business in 1979 as a state-owned development bank, National Development Bank PLC ('Bank') today operates under the Companies Act No. 7 of 2007, and as a Licensed Commercial Bank it is regulated under the Banking Act No. 30 of 1988 (see Corporate Information). The Bank is listed on the Colombo Stock Exchange (stock code: NDB.N0000), and its 8,014 shareholders comprised 95% individual and 5% institutional shareholders, accounting for 20% and 80% of shareholding respectively as of 31 December 2014 (see Investor Relations).
The main activities of the Bank and its group companies ('Group') encompass retail banking, small and medium enterprise (SME) banking, corporate banking, project and infrastructure financing, investment banking, leasing, housing finance, investments advisory and securities trading, wealth management, management of private equity funds, property management and bancassurance. They are delivered through the core activities of the Bank and its Group companies as summarized below.
The Group’s significant operations are located within Sri Lanka, with services delivered through locally domiciled entities. The Group is also engaged in fee-based businesses in Bangladesh through NDB Capital Ltd., and private equity through NDB Zephyr Partners Ltd., Mauritius that was set up in 2014 in partnership with the US-based Zephyr Management LP.
The Bank operates a network of 83 branches (2013: 78) that are categorized into eight Regions. They cover 22 of the 25 administrative districts in the nine provinces of the country, and serve a broad spectrum of clientele ranging from individuals, micro enterprises, SMEs, emerging and large corporates to state-owned enterprises and multinational companies. In addition, the Bank reaches out to its customers through automated distribution systems such as ATMs, Internet banking, a virtual presence in a host of leading social interaction sites, telemarketing, a call centre, a mobile commerce application (MPOS) and a unique ‘Feet on the Street’ sales force. More details are given under Customer Capital.
Total operating income of the Group increased by 12% during FY 2014 to LKR 12,966 million, with profit attributable to shareholders increasing in tandem by 56% to LKR 4,134 million. Total assets of the Group grew by 30% to LKR 269,130 million during the year, largely driven by enhanced volume growth across all business segments.
The Bank's market capitalization stood at LKR 41,273 million as at 31 December 2014, and ranked 16th (2013: 20th) amongst the 282 listed companies on the Colombo Stock Exchange.
By end 2014 the Sri Lankan banking industry comprised 25 licensed commercial banks and nine licensed specialized banks, with 34 players in total (2013: 33 banks). In terms of market share and ranking within the industry, the Bank accounted for:
The Bank's staff strength increased by 10% to 1,744 persons by end 2014 to support business growth, with 79% employed in the permanent cadre.