DFCC Vardhana Bank promotes financial inclusion
Looking back at 2011, DFCC Vardhana Bank (DVB), the everyday banking
unit of DFCC Bank had a productive year in terms of profitability, asset
growth, with a number of milestones being achieved, awards won and
expansion in the bank's products and services.
2011 saw DVB go into a Rs.1 billion subordinated debenture which was
rated at 'A+(lka)' by Fitch Ratings. The rating agency simultaneously
affirmed DVB's National Long-term rating at 'AA-(lka)' with a "Stable
Outlook". The five year debt issue will have fixed and floating coupon
rates and the Capital will be re-paid on maturity. The bank will utilize
the debenture to finance the loan growth and also help to strengthen the
bank's tier 2 capital.
In May 2011, DFCC Bank upped its stake in DVB to 99.07 percent from
the previous level of 95.6 percent receiving the green light from the
Central Bank to fully acquire the unlisted subsidiary. Subsequently, the
Bank became a Public Limited Company (PLC) from November 2011, with the
Listing of its Debentures on the Colombo Stock Exchange.
With six new branches opened across the country, the Bank
concentrated on the North and East, with new branches opened in Vavuniya
and Saindhamarudhu last year.
The Bank is well-represented in these areas with branches already set
up in Jaffna, Ampara, Batticaloa and Trincomalee; and extension offices
set up in Akkaraipattu, Kalmunai, Mahaoya and Uhana. The Bank also saw
its 125th branch being opened in Kegalle, while other branches opened
this year included those in Katugastota and Moneragala. The Bank counts
127 branches and extension offices under its wing.
Last year, DVB moved its Personal Financial Services into a separate
unit, amidst launching and upgrading a number of products and services.
The most significant of them being the launch of Vardhana eBanking -
offering a range of the bank's services online. Keeping in mind customer
insights and needs, Vardhana eBanking is customized for use by an
individual and a corporate. Some of the bank's services that can be
obtained online include: bill payments, international fund transfers,
loan repayments, domestic transfers and a number of scheduled
transactions.
The Vardhana Visa Debit Card was also launched in 2011. Issued by the
bank and valid internationally, the card was initially made available to
only the bank's existing customers. The bank's credit cards are now
available for non-DVB customers as well. Vardhana Visa Credit Card was
launched in 2009, and reintroduced in 2010 with added security features
ensuring safety on all transactions. This credit card also fulfills all
EMV [European Mastercard VISA] standards, and comes complete with a
micro-chip embedded into the credit card.
The Bank also launched Vardhana Prabhu, the bank's priority banking
unit. First of these units was opened in Jaffna, with the second being
opened in Batticaloa.
Notable banking products launched and upgraded throughout 2011 were:
Vardhana Nenasa - the bank's educational loan scheme; Sandella - a
housing loan scheme; Vardhana Leasing, Ranwarama - DVB's pawning product
and Vardhana Junior Plus - which is a savings scheme for minors.
DVB signed two Memorandums of Understanding (MoU) in 2011; one with
the National Water Supply and Drainage Board (NWSDB) and the other with
Sri Lanka Telecom (SLT). These new partnerships enable the added
convenience of making bill payments towards the NWSDB and SLT from any
of DVB's branches. This agreement is part of a move by DFCC Vardhana
Bank to offer a greater range of services to its customers. Bill payment
services through DFCC Vardhana Bank branches and Service centers are
also available for customers of Dialog, Mobitel, Union Assurance
Insurance, LECO and Lanka Bell.
Last year, DFCC Vardhana Bank won the award for 'T+1 Best
Facilitator' from Lanka Clear (Pvt) Ltd, in the medium-scale category.
The award, won at LCPL's 5th year celebrations of utilizing the CITS (Cheque
Imaging and Truncation System) is in recognition of the bank's prompt
service provided to customers by realizing the funds for their cheques
deposited at all DVB branches within the banking hours of T+1. T+1 is a
term used to refer to the cycle of cheque clearing, common to all
commercial banks.
The Bank's pet project, DFCC MindStar telecast its 2nd season which
ran over a course of 35 weeks and featured 225 contestants. The
award-winning reality TV quiz show won the award for the 'Best Reality
TV Show' at the 2010 Asian Mass Media Awards. The 2nd season introduced
a new element which was the addition of five special school shows in
which forty-five students who were selected from national schools
through an eligibility test held with the approval of the Ministry of
Education.
The Bank also took part in various CSR programmes including the
provision of relief to flood victims, as well as providing grants for
those whose business enterprises were affected by the floods in Jaffna
and Batticaloa.
Another project carried out jointly by DVB and DFCC Bank is the 6S
programme for schools. Schools from around the country are chosen for
the implementation of 6S principles and the programme also introduces
concepts of environmental stewardship through the 3R method of Reducing,
Reusing and Recycling. |