Tea with R. Nadarajah

Managing Director/ General Manager/ CEO PABC Bank:

Hathoon Sheriffdeen

R. Nadarajah is one of the most experienced bankers in Sri Lanka, having served the state banking sector for ages. He has been working for the PABC Bank for the last seven years.

He started his career as a banking assistant at the Bank of Ceylon in 1969. He retired as the Deputy General Manager (Treasuries and Recoveries).

He holds 31 years experience in the state-banking sector. Nadarajah is specialised in Treasuries and the recovery of delinquency loans. In 2000 he retired from the state banking sector and joined the PABC Bank. For the last six years he has been working as the Managing Director and CEO.

Nadarajah an MBA of the University of Colombo, passed out in 1986. He completed his banking qualifications of London and holds a membership of the FCIB (Lond). He completed his Bsc (Hons) in Applied Science at University of Peradeniya when he joined the BoC.

P r o f i l e

Name: Ramanathan Nadarajah

Years in banking : 31 years at Bank of Ceylon From 2000 to date at PABC Bank

Academic : BSc - 2nd Class Honours Upper Division University of Peradeniya

Subjects : Pure Mathematics, Applied Mathematics and Physics. MBA - University of Colombo

Professional : FCIB - The Chartered Institute of Bankers, London.

Experience : Joined Bank of Ceylon in 1969 as Staff Assistant and during the years there worked in several important areas of operations including Credit, International, Treasury, Investment Banking and Finance.

Retired as : Deputy General Manager (Finance, Planning and Investment

Important positions held: * Past President - Association of Professional Bankers. * Past President - Primary Dealers Association * Past President of Lions Club - Inner Colombo

How can you describe the present overall banking sector?

A: Today, the banking conglomerate is very exciting and very advanced. Its very technical driven and expected to provide electronic banking facilities. In fact the banking industry decides the economy by giving various rates of interests for their borrowings and lendings.

The banking industry is very competitive today. We are forced to relax certain norms of banking to face competition. Sometimes it can be bad too. It can be a detriment to the national economy as well.

The industry also plays a role in controlling inflation too.

How should the banks play its role on managing the money supply and demand in the money market of a country?

A: Banks create money through its deposits and loans to its customers. When the inflation is very high banks tend to increase its lending to the development sector on a low interest rate and lend to the consumers on high interest rates.

It also acts the other way when inflation is low. It's the duty of the banking industry of a country to manage the purchasing power of the people by managing the money supply of the country. This will manage the country's inflation.

How do you see the money supply and demand in Sri Lanka?

A: It's a hard question to answer. Sri Lanka is a country not self sufficient on its major needs. Especially oil, flour, milk powder and the technological items are some of them. Global market decides these main products cost. We have to work according to change in the global market on these products.

The banking sector's activities on money supply in the Sri Lankan market is also decided by Government expenditure. The Government bill's interest rates rises, banks have to take up that interest rate as the benchmark for its transactions.

Apart from this, the money supply already available within the country also impacts on the banks' activities in controlling the money flow of the country. In our country there are two types of money. One is in records and the other is not. The black money is not tracked by the banks and banks don't have control over it.

Describe you as a banker?

A: Well, its interesting to talk about me as a banker. When I passed out from university, the banking sector was very attractive compared to other industries for me.

I saw the banker as a leader, who should act as a marketer, financer and should have the capability to convince customers and should be able to give suitable advice to his customers.

When I gained experience I realised that a banker is an embodiment of all the qualities in his job. The banking job is very respected job within society and it pays good perks too.

How do you see the younger generations who enter to the banking industry.

A: Most of the young people are very ambitious and educated. They also enter into this profession for the reason I entered. It's a respected and recognised profession. Perks are also attractive.

Don't you think that the banking profession is very bureaucratic?

A: Well, not at PABC. Here the ideas and opinions of the employees are encouraged. Our office environment is not a bureaucratic environment. We allow our workers to work on their own.

What is the strength of your company?

A: I would say it's the staff. They made the company strong in the market. We have 519 staff members working for our 27 outlets. There was a turbulent time the company faced and the staff were very co-operative to push the company. The logo is very promoting too. It says the doors are open to the globe.

Is PABC profitable?

A: Yes. We are profitable and stable in the market. We are able to maintain the norms and conditions of Central Bank to the banks. I would say we adhere to the norms and rules. The liquidity ratio, capital adequacy ratio and the capital requirement as at July 2007 is way ahead of the Central Bank requirement.

My boss

Secretary Hepzi David

Shanaaz Carina

"My boss is a very outgoing person with a friendly manner and never loses his temper over anything. He is a very cheerful person.

He has patience with his customers as well as with the employees. He always lends a helping hand to any one who needs help, specially in the banking sector. He would give them correct advice so that they wouldn't fall in any trouble.

I have been working at PABC Bank for five years and I feel very comfortable in the work I do. When it comes to work, anyone can approach him very easily and most of the time with his busy schedule he tries to make sure that he sees to everything that has to be done.

One of the best quality I personally see in him is that during a very busy time, he can handle many issues with patience. He never gets angry with the work that he has to do and never grumbles at anything. He is very genuine at work.

My boss is good at mathematics. Mostly at his leisure time he's always busy with sudoku puzzles or anything to do with mathematical stuff. He is in control of everything that happens at PABC Bank and everyone respects him."