HNB Al Najaah celebrates 10 years of Islamic banking excellence

Al Najaah team in action 

 Al Najaah team 

Sri Lanka’s largest retail bank, Hatton National Bank PLC’s Islamic Banking business, celebrated a decade of successful operations under the ‘Al Najaah’ brand.

HNB Assistant General Manager/Head of Islamic Banking Hisham Ally

A specialist in Islamic Banking with deep expertise in performing large ticket and complex transactions, HNB Al Najaah is now gearing up for a new phase of growth, leveraging on HNB’s advanced tech capabilities in order to streamline service delivery in the new normal.

“By its nature, Islamic Banking enables opportunities for steady growth. Particularly at a time of such severe volatility, this stability is immensely valuable. Taking into consideration the fact that globally, Islamic finance is estimated to have a value of $ 2.2 trillion, we see potential for Islamic Banking to make vital contributions in accelerating Sri Lanka’s economic revival. I take this opportunity to express my sincere gratitude and congratulate the Al Najaah team on reaching this vital milestone, and I look forward to working closely with the team to help them gear up for our next phase of growth,” HNB Managing Director/CEO Jonathan Alles said.

Established in 2012 as a small unit with five staff members under the capable leadership of HNB AGM – Head of Islamic Banking, and local pioneer in the field of Islamic banking and finance, Hisham Ally, the division has enjoyed strong growth over the past decade. Today, the HNB Al Najaah has grown to 40 staff with a dedicated office in Marine Drive, Colombo 3 and a further six Islamic Banking centres in Pettah, Kandy, Kalmunai, Beruwela, Akurana and Kattankudy.

“HNB has a proven track record in serving the needs of diverse business segments and communities. For 134 years we have proven our commitment by aligning ourselves to the needs of the Sri Lankan economy and its development. In this manner, we have been a partner in the progress of generations of Sri Lankans from all walks of life. Al Najaah is a testimony how we have embraced being part of this global banking proposition.

“We serve the needs of discerning clients ranging from individuals to small businesses to large enterprises, as well as high-end private banking customers. Our Islamic banking proposition has supported many of the country’s SMEs with evolving products and services. We have also won many accolades over the past decade, in recognition of the outstanding contributions and remarkable growth achieved in Islamic Banking. It is therefore our great pleasure to be part of this 10th year celebrations and I am grateful for our committed staff who have relentlessly supported its course throughout this journey. We wish them all success in the next phase of their journey,” HNB DGM – Wholesale Banking Group Damith Pallewatte said.

In addition to consistently achieving the highest profits in the Sri Lankan Islamic Banking sector for the past five years running, since inception, HNB Al Najaah has continuously been recognised for its remarkable performance. From just its second year of operations, the unit has won awards from the Sri Lanka Islamic Banking and Finance Industry (SLIBFI) as well as the Islamic Finance forum of South Asia (IFFSA), where it beat out contenders from South Asian giants Pakistan, India, Bangladesh, Maldives, and Kuwait.

Commenting on Al Najaah’s outstanding growth story so far, AGM IBU Hisham Ally said: “We have achieved great heights in a very short span of time and our focus is on the future. The team is ready to pursue new opportunities, particularly in relation to exports - which is the need of the hour – as well as project-based funding with a strong emphasis on renewable energy, Local Manufacturing, Green Agriculture segments. We are confident that we can play a significant role in facilitating the development of these essential sectors, in order to support the Government’s efforts to revitalise the Sri Lankan economy.”

He added that special priority would be given to the agriculture sector, including paddy cultivation, rice milling, plantations and other emerging agri-business enterprises.

“HNB Al Najaah has been preserving its unique selling proposition by performing flawless Islamic Banking products and transactions. This is closely monitored and guided by the able scholars who conduct periodic audits to ensure the purity of these transactions and products.”

Despite a challenging macroeconomic environment, HNB Al Najaah’s asset and liability books grew by 66% and 30% respectively in 2021. Moreover, HNB Al Najaah has been living up to the bank’s tagline “partner in progress” by maintaining a very close relationship with customers in difficult times.

This included providing relief measures to industries which have been hampered by COVID 19, while still delivering exceptional management of Non Performing Advances (NPA) which was retained below 1%; a remarkable achievement considering industry averages.

Moving forward, the unit aims to expand its presence and service capabilities to all corners of the island leveraging HNB’s Branch Network and also by setting up new Islamic Banking Centres, including two new units established in Akurana and Kattankudy.