Stakeholders
Stakeholder Identification
Our stakeholders are persons or organizations who may be significantly affected by our activities; and in turn, whose actions may affect our ability to perform successfully. In this context the primary stakeholders of the Group comprise our shareholders, customers and business partners, employees, regulators and analysts, and the society and environment in which we conduct our business.
Stakeholder Engagement
Engagement with stakeholders is both programmed as well as ad hoc. Often it is a combination of both, and based on statutory as well as business interests. Simply, when the Bank owns or controls the capital ('capital' in the broader context is discussed under Management Discussion and Anaysis section, the Bank's management and those charged with governance are accountable through applicable laws and regulations, which in turn prescribe the engagement process. On the other hand, when the capital is not owned or controlled by us, we still maintain an ethical responsibility that is guided by striking a balance between stakeholder expectations and business interests.
For example, we engage with customers on a day-to-day basis through a variety of channels, both tangible and intangible, while engagement may also be undertaken for a specific purpose. They are largely driven by ethical business interests. On the other hand our stewardship role - particularly in relation to investors - places certain additional legal responsibilities.
Concerns raised by stakeholders are usually dealt with at the time of questioning. During the year, shareholder queries were largely on matters such as return on equity, capital, interest margins, taxation, loan growth and deposits. Employees' concerns - mainly on work-life balance, compensation review and training & development - were addressed through internal mechanisms.
List of stakeholder groups engaged by the organization
- Shareholders
- Directors
- Employees
- Depositors
- Multilateral Lending Agencies
- Regulator – Central Bank of Sri Lanka
- Auditors
- Market Analysts
- Suppliers
- Local & Foreign Correspondent Banks
- Government Agencies - such as Inland Revenue Department
- Registrar of Companies
- Colombo Stock Exchange
- Sri Lanka Accounting & Auditing Standards Monitoring Board
- Rating Agencies
Basis for identification and selection of stakeholders with whom to engage
| Shareholders | To ensure that their expectations are met |
| Directors | To ensure that stakeholder expectations are met |
| Employees | Loyalty, Commitment & Motivation. To create a great place to work and also to ensure those employees’ values are aligned with corporate values. Moreover, as NDB Bank is in the service industry, we ensure to create a unique value proposition in the industry through our staff. |
| Depositors | To attract new depositors and to maintain loyalty |
| Multilateral Lending Agencies | To keep them updated about the Bank & to report on progress |
| Regulator – Central Bank of Sri Lanka | Close working relationship & compliance |
| Auditors | Compliance |
| Market Analysts | To keep them informed of the Bank’s performance |
| Suppliers | Close working relationship |
| Local & Foreign Correspondent Banks | Maintain good relationship |
| Government Agencies - such as Inland Revenue Department, Registrar of Companies, Colombo Stock Exchange etc. | Compliance |
| Sri Lanka Accounting & Auditing Standards Monitoring Board | Compliance |
| Rating Agencies | Compliance |
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
| Shareholders | Quarterly Financial Statements – Quarterly |
| Meetings & Conference Calls - Regularly | |
| Annual Report & AGM - Annually | |
| Directors | Board Meetings & Board Paper - Monthly (sometimes more frequently) |
| Employees | Regularly. Thorough the following methods;
|
| Depositors | Account Statements - Generally Monthly |
| Multilateral Lending Agencies | Regular Reports & Visits – Quarterly |
| Regulator – Central Bank of Sri Lanka | Regular Meetings & Reports - Daily, Weekly, Monthly, Quarterly and Annually |
| Auditors | Regular Meetings - Monthly and Annual Audit Exercise |
| Market Analysts | Quarterly Meetings and Telephone Conversations –Quarterly |
| Suppliers | Meetings |
| Local & Foreign Correspondent Banks | Daily via Telephone, SWIFT, E-mail, etc. |
| Government Agencies - such as Inland Revenue Department, Registrar of Companies, Colombo Stock Exchange etc. | Reports, Payments, Meetings when necessary |
| Sri Lanka Accounting & Auditing Standards Monitoring Board | Submission of Annual Report |
| Rating Agencies | Annual rating exercise & submission of Quarterly Accounts |
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.
Questions on the following subjects were raised by the respective stakeholder groups. These were dealt with at the time of questioning.
| Shareholders | : | Return on Equity, Capital, Interest Margins, Taxation, Loan Growth, Loans & Deposits |
| Directors | : | Bank’s Performance, Corporate Governance, Compliance |
| Employees | : | Work-life balance, compensation review and training and development |
Commitments to External Initiatives
As a responsible corporate citizen with a strong local presence but with a global outlook, we participate in several activities through memberships and affiliations. In the year 2013, the Bank renewed its membership with the Asia-Pacific Rural and Agricultural Credit Association (APRACA). The role of APRACA is to promote cooperation and facilitate mutual exchange of information and expertise in the field of rural finance.
