Pushing the Pace in
a Resurgent Sri Lanka

Business Model

Stakeholders

How the Bank Identifies its Stakeholders

It is a truism that value is not created by or within the Bank alone, but is created through relationships with many important stakeholders. Accordingly, the Bank places great emphasis in the identification and timely engagement of key stakeholders who significantly contribute towards the value creation process of the Bank.

We define stakeholders as being entities or individuals that can reasonably be expected to be significantly affected by the Bank’s activities, products, and services; and whose actions can reasonably be expected to affect the ability of the Bank to successfully implement its strategies and achieve its objectives.

Stakeholder Engagement Methodology

We will next provide insights on the nature and quality of the Bank’s relationships with its key stakeholders, and to what extent the Bank understands, takes into account and responds to their legitimate needs and interests.

Investors*
	Method of engagement	Frequency of engagement	Key topics and concerns raised	How the Bank responded to such topics and concerns
	Annual Report	Annually	Financial performance of the Bank and the Group Business overview, business strategy and challenges Business growth targets and sources of growth Asset quality of the Bank Operational strategy of the Bank and operational efficiencies Strategic focus and the activities carried out by the Group companies Prospects of the proposed merger between the Bank and DFCC Bank PLC Governance and risk framework Effective tax rate of the Bank The Bank’s role in the evolving industry scenarios	We maintain a high level of accessibility to the senior management of the Bank in engaging investors. We maintain transparency, consistency, clarity and openness to scrutiny in investor engagements. More details on individual engagement activities are given in the Investor Relations section of this report.
	Annual General Meeting	Annually
	Extraordinary General Meeting	As and when required
	Interim financial statements	Quarterly
	Press releases on financials	Quarterly
	Investor presentations on financials	Quarterly
	Email notifications on quarterly result releases	Quarterly
	Announcements made to the Colombo Stock Exchange	As and when required
	One to one investor meetings	As and when required
	Investor forums/investor webinars	Quarterly
	Earnings calls	As and when required
	Road shows	As and when required
	Participation in international investor forums	As and when required
	Prospectus	As and when required
	Investor relations web page within the NDB Corporate website	Ongoing

*Investor relations at the Bank covers current shareholders as well as potential investors (local and foreign), stock brokers, analysts, rating agencies, media and regulators.

Customers
	Method of engagement	Frequency of engagement	Key topics and concerns raised	How the Bank responded to such topics and concerns
	Customer satisfaction survey	Annually	Level of customer service and quality of customer interactions through key touch points. Availability of branches, ATMs and other physical touch points Types of products and services Product pricing (interest rates, other fees and charges) Efficiency of relationship staff Appearance of the Bank in leading social media sites	A dedicated 24-hour call centre and a Customer Relationship Management Unit promptly attend to Customer enquiries and concerns. Customers may raise their feedback through the Branch Network (Branch Managers are the dedicated service ambassadors), 24-hour Call Centre and via Online messages/by e-mailing us at contact@ndbbank.com or by writing to The Manager - Customer Relationship Management, National Development Bank PLC, No. 40, Navam Mawatha, Colombo 02. Such feedback from customers is taken into consideration when simplifying Bank’s processes and developing new products and services. The Bank’s corporate website explains our complaints handling procedure, including the escalation process for redressing through the Financial Ombudsman. As per the Customer Charter and CBSL regulations all interest rates and Key Fact Documents related to the Bank’s products are published in the corporate website and also displayed within the branch premises across the network.
	Brand health tracker	Annually
	Mystery customer survey	As and when required
	Branch and ATM network	Ongoing
	Virtual presence	Ongoing
	NDB Bank corporate Facebook page NDB Shilpa Facebook page Cinnamon to the world Facebook page Salary Max Facebook page NDB Corporate Youtube channel NDB Twitter
	Research on products/services usage and needs	As and when required
	Research on marketing communication effectiveness	As and when required
	Extended banking hours	Ongoing
	Customer suggestion boxes	Ongoing
	Customer visits	Ongoing
	Customer get-togethers	As and when required
	Customer workshops	As and when required
	Print and electronic media	As and when required
	NDB Bank corporate website	Ongoing
	Online messages(NDB Bank Online)	Ongoing
	Contact@ndb.com	Ongoing
	Contact Centre	Ongoing

Employees
	Method of engagement	Frequency of engagement	Key topics and concerns raised	How the Bank responded to such topics and concerns
	Employee Surveys		Introducing the staff to the Bank’s corporate values Inducting the staff to the Bank’s corporate culture Inclusion and geo-functional engagement Updating the staff of the latest developments within the Bank Development of the individual’s knowledge, skills and competencies Achieving work life balance and advocating health and well-being Skills development and training for employees’ children Rewards and recognition for significant achievements	The employees of the Bank are highly engaged via the host of activities described herein. Our employees are recognized for their competencies and achievements, making our culture one based on meritocracy. The management maintains a high level of accessibility via an ‘open door policy’, where the employees may talk to the senior management, on any area that is a concern for him/her.
	Employee Satisfaction Survey	Annually
	HR ISO Survey	Annually
	Internal Department Survey	Annually
	Cultural Induction Programmes
	Employee Induction Programme	Quarterly
	'In Retrospect' Programme	Quarterly
	Soft Skills Training Programme	Ongoing
	Periodic Staff Meetings
	Town hall meetings	Quarterly
	The Leadership Team meetings	Weekly
	Business Review meeting	Monthly
	Branch Conference	Annually
	Regional Managers meeting	Monthly
	Branch Managers meeting	Quarterly
	Department meetings	Ongoing
	Staff Societies
	Recreation Club	Ongoing (Annual calendar of staff events)
	Toastmasters Club	Ongoing
	Cross Functional Staff Committees	Ongoing
	Technologically Driven Platforms
	Idea Xpress (online suggestion scheme)	Ongoing
	Human Resource Information System (HRIS)
	NDB Cloud (Bank's Intranet)
	E-Notice Board (Staff Email Notices)
	Bank Policies
	Whistle-blowing policy
	Open door management policy
	Recognition Schemes
	Retail Banking Awards	Annually
	'Spirit of Achievers' (NDB Value based recognition)	Quarterly
	Staff Talent Programmes	Ongoing
	Welfare Agenda
	Employee Volunteerism Programmes (Sustainability & CSR agenda)
	HR Welfare Programmes (covering staff and their family members)

Suppliers
	Method of engagement	Frequency of engagement	Key topics and concerns raised	How the Bank responded to such topics and concerns
	Supplier visits	As and when required	Treating suppliers as a key success partner of the business Ensuring that supplier labour and environmental practices are acceptable to the criteria of the Bank Fair pricing Ensuring supplier satisfaction with the Bank’s engagement	The Bank has a Procurement Policy in place with a view to ensure that the Bank sources its requirements from the most preferred suppliers. The Bank maintains a supplier database. The Bank also actively engages itself with the suppliers in ensuring a sound business relationship and value for money, for both parties.
	Supplier meetings	As and when required

Society and Environment
	Method of engagement	Frequency of engagement	Key topics and concerns raised	How the Bank responded to such topics and concerns
	Sponsorships	As and when required	Strategic corporate social responsibility initiatives Inculcating the virtues of thriftiness amongst individuals (e.g. Ithuru Karana Maga programme) Prompt assistance to victims of various natural hazards Financial inclusion and affordable financing Community empowerment and livelihood development	The Bank conducts its CSR initiatives under Strategic CSR, Philanthropic CSR and Operational CSR. The dedicated CSR Committee ensures that the Bank identifies and responds to societal and environmental needs on a timely and effective manner. In addition to the strategic and planned CSR initiatives, the Bank responds rapidly to provide relief to victims of unexpected natural disasters. The Bank also places great emphasis on financial inclusion as a business concern as well as a social responsibility.
	Relief programmes in crisis situations	As and when required
	CSR initiatives	Ongoing
	Environmental protection initiatives	Ongoing
	Financial inclusion initiatives	Ongoing
	Training programmes aimed at livelihood development	As and when required
	Press releases	As and when required
	Media briefings	As and when required
	Participation in forums/ conventions/summits	As and when required
	Online Social Media	Ongoing
	Bank’s corporate website	Ongoing

Regulators and Government Authorities
	Method of engagement	Frequency of engagement	Key topics and concerns raised	How the Bank responded to such topics and concerns
	Submission of returns/Information	Ongoing	Update on the regulatory requirements affecting the Bank Adherence to the laws and acts relevant to the banking/financial sector Adherence and compliance to all applicable regulations of the Central Bank of Sri Lanka, The Colombo Stock Exchange and other regulatory bodies Awareness of developing regulatory and governance practices (e.g. Basel III) Adherence to provisions of the Inland Revenue Department Meeting legislative requirements in respect of consumer protection and engaging with the Financial Ombudsman of Sri Lanka to resolve customer grievances	The Bank prioritizes on maintaining the highest level of compliance with all legislation, regulations and rules applicable to its business. The Bank functions within a comprehensive compliance framework, overlooked by a dedicated Compliance Department. Compliance training and awareness across all employees play a key role in sustaining a culture of compliance within the Bank and in mitigating compliance risk. Training is delivered through various means, including staff induction programmes, e-learning, face-to-face training and focused activities such as explanatory notes and e-flyers. The Bank contributes to the development of policy, legislation and regulation through submissions of our comments and views to technical committees and associations we are a part of within the banking industry as well as through regular engagement with regulators. The Bank has in place a comprehensive core-banking system which facilitates and ensures accurate and timely regulatory reporting. Furthermore, the Bank maintains open and continuous dialogue with the regulatory bodies on matters of concern.
	Directions, circulars and guidelines	As and when required
	On-site visits	As and when required
	Consultations and meetings	As and when required
	Announcements to the Colombo Stock Exchange	As and when required

External Initiatives

The Bank participates in several activities through memberships and affiliations.

The Chartered Institute of Management Accountants (CIMA) is a professional body with which the Bank has a training partnership. As a Corporate Training Partner, employees are entitled to attend training programmes which inculcate competencies required to drive business and individual success, and networking events facilitated by world renowned speakers.

The Bank works closely with the Institute of Bankers of Sri Lanka (IBSL). Customised and off-the-shelf programmes which include Certificate courses, Diploma courses and other subject specific seminars are conducted exclusively for the Bank’s employees in-house and at IBSL as required.

A similar relationship exists with the Institute of Environmental Professionals - Sri Lanka (IEPSL). During a four-year relationship, IEPSL has undertaken education and training of Bank employees in environmental conservation for sustainable development in appraising businesses prior to lending.

The Bank is a member of the Association of Compliance Officers of Banks Sri Lanka (ACOB) which provides a forum for Compliance Officers of Banks in Sri Lanka to freely discuss issues related to the execution of their duties and to network and educate themselves on issues of compliance. ACOB maintains a close co-operative working relationship with regulators and offers assistance in the review of relevant laws, procedures and best practice.

Two officers from the Risk Management Department represent the Bank at the Association of Banking Sector Risk Professionals. This forum facilitates the promotion of best practices in risk management, solving of any issues with the regulator, educating the industry in areas of risk management and sharing of information across the industry.

Treasury officers of the Bank hold membership in the Sri Lanka Forex Association.

The Bank joined the 'Sri Lanka - China Business Council' during the year to get closer to the Chinese business community. The Bank is also represented at the sub-committee for Corporate Social Responsibilities at the American Chamber of Commerce.