NDB Bank’s CDIC acquisition for regional growth - CEO
Ravi LADDUWAHETTY
NDB Bank PLC’s recent 23.86 per cent acquisition of the Bank of
Ceylon stake in Capital Development and Investment Co. (CDIC) for Rs.
1.15 billion will be used for the continuation of strategic plans and
growth both locally and regionally.
Prior to the purchase, NDB Bank owned 75.8 per cent of CDIC. NDB
Bank’s recent purchase of CDIC shares has effectively increased its
shareholding in Eagle Insurance PLC from 31.5 per cent to 41.42 per
cent.
Eran Wickremaratne |
The NDB Bank, which initially started as a bank for project financing
has some skills which we hope to take into the region and we will be
announcing them soon after we get approvals from the regulatory
authorities - the Central Bank of Sri Lanka and those in the countries
that we hope to do business with, NDB Bank’s Group CEO Eran
Wickremaratne told Daily News Business.
The NDB Bank CEO also said that Eagle Insurance has been providing
consistent returns over the medium term, and we have reposed our
continued confidence in its long-term performance.
He said that NDB Bank has allowed Aviva, one of the largest
reinsurance companies in the world to take controlling interest in
Eagle, as Aviva will charter them industry leaders and the future of
Eagle Insurance, he said.
He said that within a short period NDB Bank, which was originally for
project financing has strengthened its distribution network to 40
branches and is today, engaged in all aspects of retail banking,
commercial banking with a wide variety of products and services and is
one of the well positioned private banks.
He explained that in addition to the wide array of products, NDB Bank
introduced an innovative product - ‘eZ Pay’, South Asia’s first
mCommerce initiative and also launched a special savings account -
‘Vishmitha’ - offering zero-percent interest loans for the first time in
Sri Lanka. In addition, NDB Group offers wide ranging products and
services.
The bank has a quality portfolio with the lowest Non-Performing Loans
in the industry among local banks and the NPL portfolio is at 2.5 per
cent when the industry is at 6 per cent.
The NDB Bank is well capitalized with a strong balance sheet. The
Capital Adequacy Ratio is at 19 per cent when the stipulated industry
requirement is 10 per cent.
He said that NDB Bank, has taken yet another step towards
consolidating its position in the financial services industry with the
recent acquisition. |