Banking

Finance companies relatively unscathed - RAM

The recent collapse of unregulated deposit-taking institutions Sakvithi and Golden Key has greatly affected public confidence. So much so that even regulated financial institutions have reported marked reductions in new deposits and renewals.

Against this backdrop, RAM Ratings has been in contact with all its rated financial institutions to assess the impact on their liquidity positions; our universe of rated finance companies covers about 60% of the rated registered finance companies (“RFCs”) in Sri Lanka, an official of RAM said.

In view of the Central Bank’s timely action and prudential requirements, we are of the view that the domestic RFC industry should be able to overcome any liquidity setback. RFCs adhere to various prudential norms established by the Central Bank.

These include the maintenance of liquid assets to ensure sufficient cash reserves to meet deposit withdrawals.

Additionally, RFCs have access to the Central Bank’s discount-window facility (via primary dealers) for short-term liquidity needs. The Central Bank’s recent and unprecedented move in replacing the board of Seylan Bank PLC (affected by the fallout from Golden Key) with that of Bank of Ceylon has also gone a long way towards restoring public confidence and returning normalcy to the financial system.

Nonetheless, there are still challenges ahead as the global recession envelops the country’s export-dependent economy. RAM Ratings expects a slowdown in exports and ancillary sub-sectors, which in turn is expected to have a negative impact on lending institutions.

In this regard, RAM Ratings will maintain close monitoring of the trends in RFCs’ asset quality, liquidity and profitability; we will take appropriate rating actions if necessary.

Air miles from HSBC credit cards

HSBC’s Visa Platinum Credit Card is now giving customers the opportunity to earn and redeem Airmiles.

HSBC credit cardholders are both value-conscious and brand-conscious, constantly seeking to derive value out of what they use, with prestige and recognition playing important roles in choice. The Visa Platinum credit card caters to the discerning needs of customers with incredible rewards and privileges that only a few can emulate.

The card is intended for those who do not settle for less and are conscious of having the best in every aspect of life. As such the card provides limitless access to amazing deals, instant rewards and benefits worldwide.

With HSBC’s Best in Class Mileage programme, cardholders can earn or redeem air miles for free flights, upgrades, companion tickets and other lifestyle rewards including hotel stays, dining packages and more for yourself, family and friends.

They can also convert rewards points into Airmiles. The mileage rewards partners include, Asia miles (including Cathay Pacific), Kris Flyer by Singapore Airlines (a member of Star Alliance) and Privilege club by Qatar airways.

James Rebert, Head of Credit Cards and Insurance at HSBC stated, “Affluent cardholders today have become more discerning in the selection of products and services offered as rewards from their cards, especially cardholders who are frequent travellers whether for business or pleasure.

They expect superior benefits that make them feel special and we are confident that the range of exclusive benefits, particularly the home & away and Concierge services offered through HSBC’s Platinum credit card, will meet and exceed the expectations of these cardholders.”

The HSBC Visa Platinum credit card also commands global recognition and acceptance at more than 29 million locations worldwide.

As the safest travel card, enabled with cutting edge Chip technology, the card is coupled with HSBC’s superior global fraud monitoring system, which guarantees peace of mind for the customer.

Festive cheer at Cancer Hospital

Standard Chartered Bank celebrated the festive season with the patients of the Maharagama Cancer Hospital this season by spreading a little festive cheer in wards

3 and 4, as well as the paediatric ward.

Patients of Wards 3 and 4, which are maintained by Standard Chartered Bank were treated to hampers prepared from items collected by the staff of the Bank, who were on hand to spend some time with the patients during this special time of year.

The Bank also donated valuable Breast Cancer Testing Kits worth over Rs. 330,000 to the Hospital. The staff of the Credit Card and Personal Loans team also collected funds through staff donations and purchased essential medicines for the Paediatric ward.

Standard Chartered Bank has been supporting the Maharagama Cancer Hospital for over 15 years originally maintaing the paediatric ward and now responsible for wards 3 and 4. The Bank also spent Vesak with the patients last May by sponsoring the lighting system for the Hospital and organising Bakthi Gee.

The Bank also organizes blood donation drives to the Cancer Hospital’s Blood Unit. In appreciation of these efforts, the Hospital recently presented Standard Chartered Bank with a token of appreciation for the support.

HNB’s Pathum Udanaya to reward foreign currency savings

Pathum Udanaya, HNB’s deposit draw for Sri Lankans earning abroad, as well as locals saving in foreign currency, this year is giving away 7.5kg of gold in two draws.

Pathum Udanaya is exclusively for HNB customers saving in NRFC/RFC Savings Accounts, NRFC/RFC Fixed Deposits and the Singithi Surakum Minor Foreign Currency Savings Account. The 2009 Pathum Udanaya Draw is scheduled to be held at the end of the year.

The Year-end Golden Draw is for customers with a minimum savings of US$ 10,000 in NRFC/Singithi Surakum Savings Accounts and Fixed Deposits or US$ 15,000 in RFC Savings and Fixed Deposit. The year-end Golden draw offers 2kg of gold as first prize, 1kg of gold as second prize, ten prizes of 10 one sovereign gold coins each and 125 consolation prizes of one sovereign gold coins.

Customers with minimum savings balance of US$500 in NRFC or Singithi Surakum Savings Accounts, US$ 1,000 in RFC Savings Accounts and US$ 2,500 in NRFC or Singithi Surakum and RFC fixed deposits. will be eligible for the Year-end Draw that includes 50 one sovereign gold coins as first Prize, 20 prizes of five one sovereign gold coins each and 400 consolation prizes of 1/2 sovereign gold coins.

Having become immensely popular and highly successful since its first launch in 1999, HNB’s Pathum Udanaya has gifted each year with something different, setting the trend for the industry and inducing the savings habit among thousands of expatriate Sri Lankans.

The scheme chiefly targets those living in the Middle-East and European countries. “Pathum Udanaya was first introduced with the objective of encouraging Sri Lankans working overseas to save their hard-earned money with a trusted bank back home.

Today the draw is not just an exciting inducement to save but so much more,” said Kalum Wijesooriya, Chief Manager - Remittances of Hatton National Bank. All prizes will be awarded in gold. By encouraging people to save through minimum savings criteria, we believe, we are helping people to save for long-term growth,” he added.

To be eligible to the draws, accountholders need to maintain the required minimum balances for a one calendar month immediately prior to the respective draws. Savers are entitled to multiple winning chances at both draws.

The number of chances will depend on the multiple of the minimum balances and the number of calendar months during which they are maintained.

Citibank under fire

Vikram Pandit-led Citigroup came under fire from the US President Barack Obama and his administration for purchasing a USD 50 million jet plane.

While the Citigroup has cancelled the order at the direction of the Treasury Department, Obama lashed out at the banking giant speaking to reporters at White House.

PTI

Benefits for Lankans from People’s Bank

People’s Bank announced new measures to Sri Lankans earning foreign currency, offering the best short term and long term investment opportunities through the Rupee Treasury Bill and Bonds.

This scheme introduced by the Government of Sri Lanka and People’s Bank offers the Rupee denominated Treasury Bill and bond, this initiative offers a safe and highly liquid investment opportunity to the Sri Lanka diaspora and migrant workers while providing an attractive return on their investments.

Customer of People’s Bank who live abroad now have the opportunity to channel their investments through the Treasury Bill / Bond Investment External Rupee Account - Deshabhimani (TIERA-D) which can be opened by the investor for that purpose. All transactions relevant to these investments will be routed through this TIERA-D.

The benefits of this offered by People’s Bank include, remittances into and out of the TIERA-D accounts would be free from exchange controls. The investor can also enter into a Forward Exchange Contract with the bank if they wish to mitigate the exchange risk involved with their transactions.

In addition to this, investor can look forward to risk free, gilt edged debt instrument, maturity proceeds at face value paid on maturity, half yearly coupon payments for treasury bonds, yield rates determined by the market, tradable instrument in the secondary market amongst a host of others.

Senior Deputy General Manager - Treasury and International Business, People’s Bank Vasantha Kumar, speaking on the significance of this to the development of the country said, “This is a great investment opportunity for Sri Lankan’s living abroad to earn high return in concurrence with further empowering the government to go ahead with needed development projects in the country.”

DFCC Vardhana Bank signs MoU with LECO

DFCC Vardhana Bank, the banking unit of DFCC Bank, signed an MoU recently with the Lanka Electricity Company (Private) Limited. This new partnership entails that LECO customers are provided with the added convenience of making bill payments from any of the bank’s branches. This agreement is part of a move by Vardhana Bank to offer a greater range of services to its customers. Here, M.N. Susantha Perera (Director/GM, LECO), Champani Padmasekera (Chairman, LECO), L.G. Perera (Managing Director and CEO, DFCC Vardhana Bank), Lakshman Silva (Director/COO, DFCC Vardhana Bank) at the event.