Vardhana provides speedier and seamless services - Lakshman Silva

Ramani Kangaraarachchi

A graduate of Kelaniya University and a postgraduate (MBA) of University of Sri Jayewardenepura, Lakshman Silva moved to DFCC Vardhana in 2003 and became the CEO of Vardhana in January 2010.

DFCC Bank is a leading Development Finance Institution (DFI) in Sri Lanka set up to operate as a development bank providing long-term project financing for private sector enterprises. It is one of the first DFIs to be set up in the Asia Pacific region and among the most successful of such institutions to date. DFCC Vardhana Bank is a leading banking institution with diversified investments in the financial sector in the country. It is a subsidiary company of DFCC Bank providing complementary commercial banking services.

DFCC Vardhana Bank has 127 branches and extension offices; which also includes 74 units across the Sri Lanka Post network.

Daily News Business interviewed its CEO Lakshman Silva who has wide experience with 25 years of service with the DFCC Group.

Here are the excerpts from the interview.

Q: How do you review last year’s performance of DFCC Vardhana Bank and where are you heading?

A: The DFCC Vardhana 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. The entirety of the bank’s activities focused on one goal: financial inclusion, which is evident from the wide reach of its branch network, the add-on products and services as well as CSR activities.

Last year the bank almost doubled its assets and liabilities. The bank was also able to double the other key indicators. Employee numbers were increased with the opening of new branches and extension of offices in almost all parts of the country. As an entity now we are ready to enter into the competitive banking environment.

In addition, last year we concentrated on customer service and increasing the awareness of the bank among large corporate and personal customers. Over the years there had been confusion among the general public that Vardhana bank was also doing the same business activities as done by DFCC Bank. But, Vardhana is a fully fledged commercial bank; the commercial banking arm of DFCC Bank that provides all commercial banking requirements expected by the clients. Initially, Vardhana was set up to cater to large business community supported by DFCC bank, but now, has extended its services to all the other clients who are not dealing with DFCC or Vardhana.

Over the last several years we have expanded our services by introducing different types of loans, deposits and other personal financial service products.

DFCC Vardhana, during the last several years has been successful in creating a new banking community which has largely expanded to North, East and to the South.

Q: Shortage of skilled manpower is a huge problem to companies in Sri Lanka today. What measures have you taken to overcome this problem at DFCC Vardhana ?

A: We, from the inception have been targeting the youth who had left school and young professionals who have just completed their academic education. All these candidates who are recruited to the bank have been extensively trained on banking services. In addition many other training has been provided to these staff to groom them to take up higher positions in the banking industry. As a result, we have been able to retain dynamic staff that cares for and committed to the bank and its services.

However, in general not only the banking industry but most of the other industries too have faced difficulties in identifying skilled manpower for particular job activities.

Q: What are the challenges you have faced in the banking industry?

A: Banking is a challenging and competitive business with many regulatory requirements introduced by the Central Bank to protect the customers and the banking industry.

The customers today are more conversant with banking practices and regulations adopted by institutions, their service expectations are much higher than ever before.

To have dynamic people and retaining them is a bigger challenge. Young professionals are not looking for long-term career plans instead look for short-term benefits. As a result, recruiting suitable personnel for key positions is also a challenge. Keeping the overall cost of operations of the bank and lending at the rates expected by the customers is also another challenge.

Nevertheless, all banks have geared themselves to face these issues. Financial sector after most of the reforms are operating successfully. As a result young professionals choose the banking profession as their first choice.

Q: What are your plans for expansion?

A: Although, DVB has expanded around the country there are many other areas the bank is not present at the moment. We have identified such areas, to set up new branches in 2012 and beyond. Our plan is to open our service units in those areas to include the nonbanking community to the banking arena. In addition, DVB will expand its presence to the North, East and South which has demonstrated, high development potential.

Whilst expanding the network, the bank is also expecting to focus more emphasis on personal financial service products that are being patronized by the youth who have just completed their academic and professional education and launching into a new life of their own. In this regard, the bank has developed loan schemes relating to housing, education and leasing. Over the last one year, DVB’s Nenasa, educational loan, Sandella Housing loan and Vardhana leasing has provided large number of facilities to such potential customers. We are planning to expand these activities through the branch network more aggressively during the year.

Vardhana also launched their priority banking concept Prabhu, to provide speedier and efficient service to their prime clients, through dedicated business centers opened in the branch network. Prabhu, priority banking was initially launched in Jaffna which has now expanded to East is expected to be introduced in selected branches around Colombo and in the main cities of the country.

Q: Any special message you like to give your customers?

A: I would like all customers to know that DFCC Vardhana Bank is a licensed commercial bank providing all banking requirements of the general public and an entity which is affiliated to the DFCC Group.

Therefore, customers who need commercial banking requirements could approach Vardhana and we are geared and ready to provide the expected service to their satisfaction.

Over the last two years, the country has recorded an unprecedented economic growth and is having ambitious plans for 2012. Financial institutions of this country will have a major responsibility in facilitating the expected economic activities and the growth. Therefore, we expect the same momentum to be maintained during 2012 and beyond.

Banking has embraced technology well when compared to some other industries in the country. Most of the banks are providing real time service to the customers. Vardhana over the last several years have taken steps to introduce the best possible technology to provide speedier and seamless services to the customers.

Q: What is the most significant product and service during the last year?

A: The most significant of them was the launch of its flagship product Vardhana eBanking which offered a range of the bank’s services online. Designed by 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. Vardhana is committed to reach excellence through innovative technology.

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 this year are now available for non-Vardhana customers as well. Vardhana Visa Credit Card 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. The first of these units was opened in Jaffna, with the second being opened in Batticaloa.

Other notable banking products launched and upgraded throughout 2011 were: Vardhana Nenasa - the bank’s educational loan scheme; Sandella - a housing loan scheme; Vardhana Leasing, Ranawarama - Vardhana’s pawning product and Vardhana Junior Plus - which is a savings scheme for minors.

Q: What are the significant achievements last year?

A: 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 (05) special school shows in which 45 students who were selected from national schools through an eligibility test held with the approval of the Ministry of Education.