NTB CEO Saliya Rajakaruna told The Island Financial Review that the bank was planning to expand its branch network in Ratnapura and Trincomalee. At present the bank operates 40 branches covering Colombo, Kandy, Jaffna, Matara and Galle among others.
"We are now focusing on the SME sector and the best way to do so is to expand our reach," Rajakaruna said. "The future of the banking system, in the face of shrinking net interest margins, is generating better volumes and as such, the SME sector is the future."
Rajakaruna said branch expansion required significant investment, in terms of acquiring infrastructure, IT systems and staff.
"We want to recruit quality people to operate our branches because we feel people-to-people contact is very important, especially in terms of maintaining and enhancing our uncompromising service levels as we urbanize."
He said NTB’s strategy for the future was not simply profit oriented. "Of course we need to generate healthy profits in order to expand our network and recruit and train our staff. As we are in business for the longer term, it is important to look at overall stability and sustainability of the bank."
For the first nine months of this year, NTB generated a net profit of Rs. 848.4 million, a 68 percent growth from the previous year. Net interest income grew by 28 percent to Rs. 3.43 billion.
Its deposit base increased by 8 percent to Rs. 48.04 billion as at September 30, 2010 from Rs. 44.4 billion as at December 31, 2009, while total loans and advances increased by 23 percent to Rs. 46.1 billion. Non-performing loans ratio improved from 8.5% in 2009 to 4.51% as at September 2010.
"We have achieved these levels of profitability and returns without compromising the key stability ratios," he said.
source - www.island.lk
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