National Development Bank PLC, recorded sound results for the first six months ended June 30, 2020 [H1 2020] demonstrating its stability and resilience at the face of the economic and business disruptions resulted from the COVID-19 pandemic.
The Bank posted Rs 3 billion post tax profits for the first half of 2020 an increase of 34%. The balance sheet made an expansion of 6% to Rs 562 billion. The loan book expanded by 5% to Rs 429 billion and customer deposits increased by 6% to Rs 428 billion while the cost to income ratio improved to 36%.
The Bank also actively strategized and extended much needed support to the customers affected by the pandemic and initiated many plans, which would ensure wider benefits to the economy at large, in its role as a responsible financier in the country.
Dimantha Seneviratne, the Director/ Group Chief Executive Officer, commenting on the Bank’s performance for the period under review stated that NDB’s strategic focus, experience and competence in weathering economic cycles, its talented pool of human capital with a customer-centric approach and efficient processes have enabled the Bank to perform well amidst challenging conditions.
The GCEO emphasized that the Bank is harnessing the best of these strengths, and is fully committed towards propelling the Bank’s customers’ and the country’s growth towards financial prosperity.
The period under review was marked by the heightened impact of the pandemic with a complete lockdown for over 2 months in which economic activity was at near zero. During the lockdown, NDB carried out banking services to the maximum extent possible, via multiple modes of digital channels, branches functioning at selected localities and three mobile ATMs for the benefit of its customers.
With the country gradually opening up, the Bank has allocated extra resources to ensure maximum support to and financial well-being of the affected customers and to assist them emerge from the downturn expeditiously. The Bank is efficiently passing on the benefits of monetary policy easing measures introduced by the Central Bank of Sri Lanka [CBSL] by reducing overall lending rates of the Bank and lending to productive sectors of the economy, which would reinforce support to COVID-19 hit businesses as well as to the broader economy. NDB granted moratoriums spanning up to six months introduced by the CBSL to c. 40% of its Loan Book, amounting to over RS 170 billion, including personal and business customers.
Of the loans approved to support pandemic affected customers, as of end July 2020, over Rs 7 billion was from the CBSL’s Saubhagya COVID-19 Renaissance refinancing scheme priced at a concessionary lending rate of 4%, of which over Rs 4.5 billion is already disbursed.
In addition to the financial support, the Bank also provides advisory support to the affected businesses and carries out close monitoring to ensure that they are ready to operate with stability once the moratoriums and concessions unwind. The Bank is also conscious that certain customers may require extended moratorium periods, restructuring of facilities and other customized support, based on the industries that they represent and distinct challenges they face.
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