Organizational Profile
Legal Form
Tracing its origins to 1979 as a state-owned development bank set up under the National Development Bank of Sri Lanka Act No. 02 of 1979, National Development Bank PLC ('Bank') today operates as a Licensed Commercial Bank under Section 5 of the Banking Act No. 30 of 1988. The Bank is listed on the Colombo Stock Exchange, and comprises 19% individual and 81% corporate shareholders, both Resident (70%) and Non-Resident (30%).
The Bank's Registered Office and principal place of business are situated at No. 40, Navam Mawatha, Colombo 2, Sri Lanka.
Group Structure
The main activities of the Bank, its subsidiaries and associate companies ('Group') encompass retail banking, Small and Medium Enterprises (SME) banking, corporate banking, project & infrastructure financing, investment banking, leasing, housing finance, investments advisory and securities trading, wealth management, property management and bancassurance. They are delivered through the core banking activities of the Bank and the Group companies of which, the principal activities are listed below.
| Name of Group company | Domiciled in | Bank's direct holding, % |
Bank's indirect holding, % |
Principal activities |
| NDB Capital Holdings PLC | Sri Lanka | 99.6% | – | Full Service investment banking |
| NDB Investment Bank Ltd. | Sri Lanka | – | 99.6% | Investment banking |
| NDB Securities (Pvt) Ltd. | Sri Lanka | – | 99.6% | Investment advisory and securities trading |
| NDB Wealth Management Ltd. | Sri Lanka | – | 99.6% | Wealth management |
| NDB Capital Ltd. | Bangladesh | 77.8% | – | Investment banking |
| Development Holdings (Pvt) Ltd. | Sri Lanka | 58.7% | – | Property management |
| Maldives Finance Leasing Company (Pvt) Ltd. | Maldives | 35% | – | Leasing |
| Ayojana Fund (Pvt) Ltd. (Under liquidation) | Sri Lanka | 50% | – | Venture capital |
| NDB Venture Investments (Pvt) Ltd. (Under liquidation) |
Sri Lanka | 50% | – | Venture capital |
Markets Served
The Group's significant operations are located within Sri Lanka, with services delivered through locally domiciled entities.
The Bank operates a network of 78 branches (2012: 69) that are categorized into eight Regions. They cover 22 districts in the nine provinces of the country, and serve a broad spectrum of clientele ranging from individuals, micro enterprises, SMEs, emerging and large corporates to state-owned enterprises and multinational companies. In addition, the Bank reaches out to its customers through automated distribution systems such as ATMs, Internet banking, telemarketing, call centre, a mobile commerce application (MPOS) and a unique Feet on the Street sales force.
(Refer Customer Capital section under Management Discussion and Analysis for further details).
Scale of Operations
Total operating income of the Group for the year ended 31 December 2013 was LKR 11,549 mn, with a Profit Attributable to Shareholders of LKR 2,642 mn. Total assets of the Group grew by 19% to LKR 206,817 mn during the year, driven largely by a commendable growth of 18% in Loans and Receivables and a 47% increase in the Investment Portfolio.
The Bank's market capitalization stood at LKR 26,433 mn as at 31 December 2013, and was ranked No. 20 amongst the 289 listed companies on the Colombo bourse.
In terms of market share in the Banking industry, the Bank claimed a 3.8% share in Loans and Receivables, 2.9% share in Customer deposits and 3.2% share in Total Assets within the industry while being ranked 9 in each of those three segments. The industry comprises of 24 Licenced Commercial Banks and 9 Licenced Specialized Banks, 33 players in total.
The Bank's staff strength increased by 13% to 1,583 persons by end 2013 to support business growth, with the corresponding figure for last year being 1,389.
Although the Bank does not have any employees covered by collective bargaining agreements, it encourages an open door policy and has in place many mechanisms to encourage employees to discuss their grievances.
