Anniversary tribute

People's Bank and W H Solomons

Padmasiri DE SILVA

People's Bank which was inaugurated in the year 1961 will be completing 50 years of service to the nation in the year 2011- the second largest government owned bank in Sri Lanka. The People's Bank is the brainchild of the late T B Illangarathna. The Bank which was formed to foster the co-operative movement and help the poor has widened its scope and has become a vibrant commercial bank undertaking a large number of national and international banking transactions.

Illangarathna was on the lookout for a dynamic banker who could launch the bank which he visualized; a bank which could fulfill the aspirations of the poor hitherto not given much help by the existing commercial banks.

Wilmir Herft Solomons was not the archetype banker with a colonial mentality. Although trained by British-oriented traditional bankers at the Bank of Ceylon where he was the chief inspector of branches, Solomons had the foresight and the courage to lead an intrepid team of dedicated bankers drawn from divers disciplines to launch The People's Bank on July 1, 1961.

The Bank Chairman the Late Vincent Subasinghe from Sandalankawa was from the Co-operative sector and was a much-respected personality. He was given the responsibility to run the People's Bank which was established by the Parliament Act No. 29 of 1961. In introducing the legislations in Parliament, Commerce, Trade Food and Shipping Minister late T B Illangarathna asserted that the People's Bank was designed to establish as an entity to transform the rural economy, so that rural poverty will be ultimately eliminated.

The capital of the bank was made up with 50 percent of the subscriptions from the Co-operative societies and the balance 50 percent from the government. Lending to the poor and to the Co-operatives had a fair amount of risk and the bank had to augment its resources by getting into the lucrative commercial banking sector which was the prerogative of the Bank of Ceylon and the foreign owned commercial banks at the time.

The People's Bank advent to the commercial banking arena at the outset was viewed with concern by some as they felt that the bank did not have the expertise to venture into areas of International Banking including Forex trading. However Solomons was equal to the task. His personal stature in the International Banking Community resulted in an almost instant welcome for the bank in the International field and the provision of numerous banking facilities abroad which would be the envy of even some long established institutions. The late S de S Gunatilleka former Additional General Manager of the bank in an assessment of Solomons mentions "It is given to few people to have their memory perpetuated as a result of their day to day work. Fexer still have the good fortune of this being done by means of an institution they helped to build. Wilmir Herft Solomons undoubtedly belong to this select band of people and People's Bank is the undying edifice to his memory".

There were many traits which set W H Solomons apart from other bankers of his day. During the time he was working at the Bank of Ceylon he used to go for training in banking to Soviet Union and other Socialist countries while his colleagues went to UK and USA for the training. At that time the establishment of People's Bank was not even thought of. The success of the bank particularly in the formative years was due to Solomons' competence and stature as a banker. Solomons was personally responsible for attracting some of the most valuable business which even today constitute the base on which the Bank's fortunes are built.

The People's Bank from the inception carried out their transactions in Sinhala. It was a gargantuan task to translate the banking terms to Sinhala. This was undertaken by a dedicated team under the direct supervision of the Chairman Vincent Subasingha, Solomons though not much fluent in Sinhala gave all encouragement for implementing the work in Sinhala. He could read Sinhalese and I remember how he read Sinhala letters slowly asking the meaning of difficult words before signing them. He had implicit trust and faith in his carefully chosen staff and they in turn worked tirelessly working late into the night on many days including the public holidays to make People's Bank a cogent entity. Solomons had a rough exterior and would shout at employees if they failed to keep up to his rigid standards. However at heart he was a caring and sympathetic person who would go out of his way to help any deserving employee or a customer. Traditional bankers are considered to be heartless but like in many other fields. Solomons tread a different path. It is unfortunate that there were many who took advantage of his kindness, placing him sometimes in embarrassing positions.

People's Bank today is a well established, profit making entity servicing the co-operatives and the rural sector with a large number of branches covering most of Sri Lanka including the North and the East. The bank which celebrated its 49th anniversary on July 1, 2010 will be a lasting monument to the memory of W H Solomons the First General Manager of the Bank.

(The writer a retired senior banker worked at People's Bank in early 60s)