DFCC Vardhana Bank promotes financial inclusion in 2011

Looking back at 2011, DFCC Vardhana Bank (DVB), the everyday banking unit of DFCC Bank had a productive year in terms of profitability, asset growth, with a number of milestones being achieved, awards won and expansion in the bank’s products and services.

The entirety of the bank’s activities focused on one goal: financial inclusion, which is evident from the wide reach of its branch network, the add-on products and services as well as CSR activities.

Year 2011 saw DVB go into a Rs.1 billion subordinated debenture which was rated at ‘A+(lka)’ by Fitch Ratings.

The rating agency also simultaneously affirmed DVB’s National Long-term rating at ‘AA-(lka)’ with a ‘Stable Outlook’. The five year debt issue will have both fixed and floating coupon rates and the Capital will be re-paid on maturity. The bank will utilise the debenture to finance the loan growth and also help to strengthen the bank’s tier 2 capital.

In May 2011, DFCC Bank upped its stake in DVB to 99.07 percent from the previous level of 95.6 percent after receiving the green light from the Central Bank to fully acquire the unlisted subsidiary. Subsequently, the bank became a Public Limited Company (PLC) from 28 November 2011, with the listing of its debentures on the Colombo Stock Exchange.

With six new branches opened across the country, the bank concentrated on the north and east, with new branches opened in Vavuniya and Saindhamarudhu last year. The bank is fairly well-represented in these areas with branches already set up in Jaffna, Ampara, Batticaloa and Trincomalee; and extension offices already set up in Akkaraipattu, Kalmunai, Mahaoya and Uhana.

The bank also saw its milestone 125th branch being opened in Kegalle, while other branches opened this year included those in Katugastota and Moneragala. The Bank counts 127 branches and extension offices under its wing. Last year, DVB moved its Personal Financial Services into a separate unit, amidst launching and upgrading a number of products and services. The most significant of them being the launch of Vardhana eBanking – offering a range of the bank’s services online.

Designed keeping in mind customer insights and needs, Vardhana eBanking is customised for use by an individual and a corporate. Some of the bank’s services that can be obtained online include: bill payments, international fund transfers, loan repayments, domestic transfers and a number of scheduled transactions. The Vardhana Visa Debit Card was also launched in 2011. Issued by the bank and valid internationally, the card was initially made available to only the bank’s existing customers. The bank’s credit cards this year are now available for non-DVB customers as well.

Vardhana Visa Credit Card launched in 2009, and reintroduced in 2010 with added security features ensuring safety on all transactions. This credit card also fulfils all EMV [European Mastercard VISA] standards, and comes complete with a micro-chip embedded into the credit card.The bank also launched Vardhana Prabhu, the bank’s priority banking unit. The first of these units was opened in Jaffna, with the second being opened in Batticaloa.

Other notable banking products launched and upgraded throughout 2011 were: Vardhana Nenasa – the bank’s educational loan scheme; Sandella – a housing loan scheme; Vardhana Leasing, Ranwarama – DVB’s pawning product and Vardhana Junior Plus – a savings scheme for minors.

DVB signed two Memorandums of Understanding (MoU) in 2011; one with the National Water Supply & Drainage Board (NWSDB) and the other with Sri Lanka Telecom (SLT). These new partnerships enable the added convenience of making bill payments towards the NWSDB and SLT from any of DVB’s branches. This agreement is part of a move by DFCC Vardhana Bank to offer a greater range of services to its customers.

Bill payment services through DFCC Vardhana Bank branches and Service Centres are also available for customers of Dialog, Mobitel, Union Assurance Insurance, LECO and Lanka Bell.

Last year, DFCC Vardhana Bank won the award for ‘T+1 Best Facilitator’ from Lanka Clear (Pvt) Ltd., in the Medium scale category. The award, won at LCPL’s fifth year celebrations of utilising the CITS (Cheque Imaging and Truncation System) is in recognition of the bank’s prompt service provided to customers by realising the funds for their cheques deposited at all DVB branches within the banking hours of T+1. T+1 is a term used to refer to the cycle of cheque clearing, common to all commercial banks.

The bank’s pet project, DFCC MindStar, telecast its second season which ran over a course of 35 weeks and featured 225 contestants. The award-winning reality TV quiz show won the award for the ‘Best Reality TV Show’ at the 2010 Asian Mass Media Awards. The second season introduced a new element which was the addition of five special school shows, for which 45 students were selected from national schools through an eligibility test held with the approval of the Ministry of Education.

The bank also took part in various CSR programmes including the provision of relief to flood victims, as well as providing grants for those whose business enterprises were affected by the floods in Jaffna and Batticaloa.

Another project carried out jointly by DVB and DFCC Bank is the 6S programme for schools. Schools from around the country are chosen for the implementation of 6S principles and the programme also introduces concepts of environmental stewardship through the 3R method of Reducing, Reusing and Recycling.

DFCC Vardhana Bank has 127 branches and extension offices; which also includes 74 units across the Sri Lanka Post network. DVB’s customers at all branches have access to a full range of commercial and personal banking services, including current accounts, savings accounts, fixed deposits, foreign currency accounts and trade related finances.