Business Model
Our stakeholders are the partners of our success, for whose well-being, we are committed!
Stakeholder Engagement
Our stakeholders are entities or individuals who are expected to be significantly affected by the Bank’s activities, products, and services; and whose actions may be expected to affect the ability of the Bank to successfully implement its strategies and achieve its objectives.
In this context, our primary stakeholders are investors, customers, employees, suppliers, society and environment in which we operate as well as regulators and Government Authorities.
In the tables that follow we provide insights on the nature and quality of the Bank’s relationships with its key stakeholders, the extent to which the Bank understands, takes into account and responds to their legitimate needs and interests followed by highlights of key initiatives rolled out during the year.
Investors
| In the context of investor relations, our target stakeholders encompass a wide group of present shareholders, potential investors, investment/research analysts, stock brokers, fund managers, multilateral donor agencies, rating institutions, media and the like. |
| Strategic Objectives To attract and maintain a best in class relationship with investors, and to deliver superior and sustainable value to our shareholders. |
| Method of Engagement | Frequency of Engagement |
Key Topics and Concerns Raised | How the Bank Responded to Such Topics and Concerns |
| Annual Report | Annually | Macroeconomic and political developments and their impact
on the performance of the Bank. Financial performance of the Bank and the Group. Business overview, business strategy and challenges. Business growth targets and sources of growth. The Bank’s expectations and estimations about the behaviour of key economic indicators such as interest rates, exchange rates, etc. Asset quality of the Bank. Operational strategy of the Bank and operational efficiencies. Strategic focus and the activities carried out by Group companies. The Bank’s openness to and opportunities in inorganic growth. Governance and risk management framework. |
We are open to investors and their requests for periodic meetings and reviews. We maintain a high level of accessibility to the Senior Management of the Bank in investor relations. Investor engagements are always hosted by the Chief Executive Officer, the Group Chief Financial Officer or the Vice-President – Finance & Planning. Our investor relations are driven on the principles of consistency, transparency, clarity and openness to scrutiny. We are consistently fair in our disclosures and at no times do we treat any party with preference. We do not engage in selective disclosures. More details on individual engagement activities are given under Investor Relations. |
| Annual General Meeting | Annually | ||
| SMS alert to investors on the release of the Annual Report, along with a short video brief from the CEO | Annually | ||
| Interim Financial Statements | Quarterly | ||
| Press release on financial performance | Quarterly | ||
| Investor presentations on financial performance |
Quarterly | ||
| Email notifications on quarterly result releases |
Quarterly | ||
| Investor fora/investor webinars | Quarterly | ||
| One to one investor meetings | As and when required | ||
| Extraordinary General Meeting | As and when required | ||
| Participation in international investor fora | As and when required | ||
| Earnings calls | As and when required | ||
| Announcements made to the Colombo Stock Exchange |
As and when required | ||
| Investor Road shows | As and when required | ||
| Prospectus | As and when required | ||
| Investor relations web page within the Bank corporate website | Ongoing |
 |
Customers
| Our customers are individuals (including minors and senior citizens), micro business ventures, SMEs, and large corporate entities incorporated in Sri Lanka or overseas. |
| Strategic Objectives To build and maintain long-term relationships with our customers through superior value creation and thereby enhance our corporate reputation and image. |
| Method of Engagement | Frequency of Engagement |
Key topics and Concerns Raised |
How the Bank Responded to Such Topics and Concerns |
| Customer feedback scores to measure customer satisfaction level across the branch network | Periodic | Types of products and services Product pricing (interest rates, other fees and charges) Level of customer service and quality of customer interactions through key touch points. Availability of branches, ATMs and other physical touch points Appearance of the Bank in leading social media sites Efficiency of relationship staff |
A dedicated 24-hour call centre and a Customer Relationship Management
Unit promptly attend to customer
enquiries and concerns. Customers may raise their feedback through the branch network (Branch Managers are the dedicated service ambassadors), 24 hour Call Centre and via Online messages/by e-mailing us at contact@ndb.com or by writing to the Manager Customer Relationship Management. National Development Bank PLC. No 40, Navam Mawatha, Colombo 02. Customer feedback is taken into consideration when simplifying Bank’s processes and developing new products and services. The Bank maintains a transparent complaints handling procedure and tracking system, with set service levels and timelines which are published on the corporate website. It includes the escalation process for redress through the Financial Ombudsman. |
| Customer interaction through visits, get-togethers and workshops | Periodic | ||
| Extended banking hours | 24/7 x 365 days | ||
| Corporate website | 24/7 x 365 days | ||
| Online Messages (NDB Bank Online) |
24/7 x 365 days | ||
| Social media interactions | 24/7 x 365 days | ||
| Contact@ndb.com | 24/7 x 365 days | ||
| Contact Centre | 24/7 x 365 days | ||
| Print and electronic media | 24/7 x 365 days |
 |
Employees
| Our employees comprise management, executives, non-executives as well as contract staff. |
| Strategic Objectives To create an environment conducive for the employees to develop and reach their potential both professionally and personally while ensuring a high performance work culture to succeed in the competitive market that the Bank operate in. |
| Method of Engagement | Frequency of Engagement | Key topics and Concerns Raised |
How the Bank Responded to Such Topics and Concerns |
| Employee Surveys | Inducting staff to the Bank’s values and culture.
Responsibility of retaining existing talent of the Bank. Providing staff with the correct blend of skills, competencies and knowledge. Responsibility of increasing productivity levels to maximize business efficiency. Attaining work-life balance across all the levels. Regional engagement in the context of rapid expansion. Maintaining information flow within the organization. Maximizing emotional engagement of staff with the workplace. |
The employees are provided ongoing training in order to enhance skills. They are also duly rewarded for their performance.
Further, specific activities are undertaken to bring about work-life balance and maintain a high degree of engagement within the organization. |
|
| Employee Satisfaction Survey | Annually | ||
| HR ISO Survey | Annually | ||
| Internal Department Survey | Annually | ||
| Cultural Induction Programme | |||
| Employee Induction Programme | Quarterly | ||
| ‘In Retrospect’ Programme | Quarterly | ||
| Soft Skills Training Programme | Ongoing | ||
| Periodic Staff Meetings | |||
| Town Hall meetings | As required | ||
| The Leadership Team meetings | Weekly | ||
| Business Review meetings | Monthly | ||
| Network Management National Conference | Annually | ||
| Regional Managers meetings | Monthly | ||
| Branch Manager meetings | Quarterly | ||
| Department meetings | Ongoing | ||
| Staff Societies | |||
| Recreation Club | Ongoing | ||
| Toastmasters Club | Ongoing | ||
| Cross Functional Staff Committees | Ongoing | ||
| Technologically Driven Platforms | |||
| Performance Development System | Ongoing | ||
| Human Resource Information System (HRIS) | Ongoing | ||
| Bank Policies | |||
| Whistle-blowing policy | Ongoing | ||
| Open door management policy | Ongoing | ||
| Recognition Schemes | |||
| Retail Banking Awards | Annually | ||
| Staff talent recognition programmes | Ongoing | ||
| Welfare Agenda | |||
| Employee Volunteerism Programmes (Sustainability and CSR Agenda) | Ongoing | ||
| HR Welfare Programmes (covering staff and their family members) |
Ongoing |
 |
Suppliers
| Suppliers are persons or organizations that provide goods and services required for running the Bank’s business. |
| Strategic Objectives To ensure timely supply of goods and services of the required quality at a reasonable price to ensure business continuity. |
| Method of Engagement | Frequency of Engagement |
Key Topics and Concerns Raised | How the Bank Responded to Such Topics and Concerns |
| Supplier reviews and assessments | Annually | Fair pricing. Quality of the goods and services provided. Operational efficiencies in the procurement process. Transparency and equal opportunity in the selection process. Treating suppliers as a strategic stakeholder group. Acceptability of the supplier’s labour and environmental practices. |
The Procurement Policy of the Bank ensures transparency and fairness in procurement processes. Regular engagement with suppliers to identify and resolve issues and ways for improvement. |
| Supplier visits | As required | ||
| Supplier meetings | As required | ||
| Corporate website | As required | ||
| Press advertisements | As required | ||
| Emails, circulars and other modes of communication | Ongoing |
 |
Society and Environment
| This encompasses the social systems as well as the living and non-living natural systems including land, air, water and ecosystems in which the Bank operates. |
| Strategic Objectives
To be an exemplary corporate citizen through a structured approach to CSR while being mindful of the symbiotic relationship between the Bank, its local communities and the physical environment in which it does business. |
| Method of Engagement | Frequency of Engagement | Key Topics and Concerns Raised | How the Bank Responded to Such Topics and Concerns |
| Sustainability aspects integrated within the Annual Report | Annually | The Bank is concerned about sustainability and has taken steps to integrate it into every aspect of the business. This best practice generates benefits for all stakeholders including the customers and suppliers. Society grievances are addressed as and when required. However, there were no grievances in 2015. |
|
| Capacity building seminars for customers | Monthly | The Bank follows a practice of appraising loan applications for environmental and social safeguards in addition to the general economic aspects. |
|
| Capacity building seminars for potential customers of the community | Monthly | ||
| Procurement Committee for Suppliers | As and when required | The Bank’s procurement guidelines include an assessment of environmental and social practices of suppliers. | |
| Community Projects | Ongoing | ||
| Environmental Projects | Ongoing |
 |
Regulators and Government Authorities
| The primary stakeholders are the Central Bank of Sri Lanka, Securities and Exchange Commission of Sri Lanka, Colombo Stock Exchange and the Department of Inland Revenue. |
| Strategic Objectives
To ensure compliance with all regulatory requirements applicable to the Bank. |
| Method of Engagement | Frequency of Engagement | Key Topics and Concerns Raised | How the Bank Responded to Such Topics and Concerns |
| Submission of returns/ information | Ongoing | Update on the regulatory requirements affecting the Bank. Adherence to and compliance with laws and acts relevant to the banking/financial sector, including those of the Central Bank of Sri Lanka, Colombo Stock Exchange and other regulatory bodies. Awareness of developing regulatory and governance practices (e.g. Basel III). Adherence to the provisions of the Department of Inland Revenue. Meeting legislative requirements in respect of consumer protection and engaging with the Financial Ombudsman of Sri Lanka to resolve customer grievances. |
The Bank functions within a comprehensive compliance framework, overlooked by a dedicated Compliance Department established within the Bank. The Bank prioritizes on maintaining the highest level of compliance with all legislation, regulations and rules applicable to its business. The Compliance Department performs compliance audits to review the degree of compliance with both internal and external regulations. These audits are based on the risk assessments approach. Compliance training and awareness play a key role in sustaining a culture of compliance within the Bank and in mitigating compliance risk. Employees (both front line and support services) are trained on an ongoing basis and all staff members are required to complete mandatory regulatory and compliance training. Training is delivered through various means, including staff induction programmes, e-learning, face-to-face training and focused activities such as explanatory notes and e-flyers. The Bank contributes to the development of policy, legislation and regulation through submissions of our comments and views to technical committees and associations that we are a part of within the banking industry as well as through regular engagement with regulators. The Bank has in place a comprehensive core-banking system which facilitates and ensures accurate and timely regulatory reporting. Furthermore, the Bank maintains open and continuous dialogue with the regulatory bodies on matters of concern. |
| Response to directions, circulars and guidelines | As required | ||
| On-site visit | As required | ||
| Consultations and meetings | As required | ||
| Announcements to the Colombo Stock Exchange | As required |
 |
Strategic External Initiatives
The Bank maintains close rapport with relevant industry associations, advocacy bodies and the like through memberships and the active participation in committees, projects and similar initiatives.
| External Entity | Bank’s Level of Involvement |
| Sri Lanka Forex Association | Bank’s Treasury staff members are active members of this Association. |
| Sri Lanka – China Business Council | The Bank has been a member of this Business Council since 2014 and has built close ties with the Chinese business community during this period. |
| Trade Finance Association of Bankers | All members of the Bank’s Trade Finance team are members of this Association, whose primary objectives are to share expert knowledge and engage with authorities on matters of concern to seek solutions. Two senior members of the Trade Finance team of the Bank hold the positions of Vice-President and Editor of the official newsletter of the Association. |
| Banks’ CIO Forum | This is a forum functioning under the Sri Lanka Banks’ Association, tasked with uplifting the level of technology governance across the banking sector. This includes assisting the Central Bank of Sri Lanka (CBSL) with policy covering technology, cyber security, payment systems, etc., as well as organizing events with world renowned speakers. The Bank’s Vice President – Information Technology is the Deputy Chairperson of the Forum. |
| Lanka SWIFT User Group | This is an entity representing all users of SWIFT within Sri Lanka and represents the country at the annual global SIBOS event. The Bank’s VP – Information Technology is a member of the Executive Committee of the Group. |
| Employers’ Federation of Ceylon Ltd. (EFC) | As a member of the Federation the Bank receives professional advice on legal and labour related matters when required. The Federation also appears on behalf of the Bank on Labour Department matters. |
| Institute of Bankers of Sri Lanka (IBSL) | The Bank obtains membership from IBSL for its staff and the Bank widely patronises all IBSL hosted events/seminars etc. The Bank also reimburse costs of IBSL conducted banking exams across all levels of staff.
To facilitate and deliver customized and off-the-shelf programmes which include Certificate courses, Diploma courses and other subject specific seminars. These are conducted exclusively for the Bank’s employees in-house and at IBSL as required. |
| Payment Cards Industry Association of Sri Lanka (PCIASL) | The Bank is a member of this Professional Industry Association. Its membership consists of all payment card acquiring and issuing financial institutions in the country. It is the industry voice dealing with industry issues with VISA Intl., MasterCard Int, CBSL, Inland Revenue, Exchange Control, SLBA and the Payment and Settlements Department. The PCIASL has quarterly meetings and regularly takes up important issues with the respective institutions on behalf of the industry. |
| International Information System Security Certification Consortium (ISC)2 of the United States | An officer of the Group Risk Management Department is the current president of the (ISC)2 Colombo Chapter. (ISC)2 is the largest not-for-profit membership body of certified information security professionals worldwide, with members in more than 135 countries engaged in developing information security awareness, education and introducing best practices in the country. |
| Association of Banking Sector Risk Professionals | Two members of the Risk Management Team continue to be members of the Association, one of whom was elected as a Vice President of the Association for 2015. |
| Association of Compliance Officers of Banks Sri Lanka | The Compliance Department of the Bank is a member of the Association, which is an effective forum to discuss issues commonly faced by Banks when interpreting relevant laws, regulations, procedures and best practices. Practical solutions are discussed within the regulatory framework in order to overcome the challenges faced. |
| British Computer Society (BCS) Council Sri Lanka Section | A member of the Bank’s IT Strategy and Business Development Unit is the Honorary Treasurer and Executive Council Member of BCS Council Sri Lanka Section. |
| Asia Pacific ICT Alliance (APICTA) | A member of the Bank’s IT Strategy and Business Development Units serves as a Judge and organizing Committee Member of APICTA, which is an organization dedicated to increasing ICT awareness in the communities and assist in bridging the digital divide, by providing networking and product benchmarking opportunities to ICT innovators and entrepreneurs across Asia. |
| American Chamber of Commerce. (Amcham) | The Bank’s Chief Executive Officer is a Director of Amcham and the Bank's Vice President - Transactional and Institutional Banking is represented in the CSR subcommittee of Amcham. |
| Bank Computer Security Incident Response Team | The Bank’s Chief Operating Officer is a Steering Committee Member of BCSIRT. |
| Credit Information Bureau of Sri Lanka (CRIB) | The Bank’s Chief Operating Officer is an Alternate Director of the Board of CRIB. |