Krishan excited to steer NTB with aim to be primary bank of modern Lankans

Monday, 5 May 2014 00:00 - - {{hitsCtrl.values.hits}}

Nations Trust Bank (NTB) last week saw the appointment of Krishan Balendra as its new Chairman. Balendra, who succeeded Arjuna Gunaratne, is not a stranger to the NTB family. He was appointed to the bank’s Board in 2009 and was unanimously decided to be appointed Chief at a Board meeting held on 31 March. A man wearing many hats, Balendra will bring with him to NTB top experience and learning he has gathered, having held key roles in the local banking and finance sector.

"I am excited about the opportunity and I will do my utmost best to contribute to the continued growth and success – NTB Chairman Krishan Balendra" Having just taken up the responsibility as Chairman of a bank that is in the midst of positioning itself to reap the benefits of the available economic opportunities, Balendra in an interview with the Daily FT expressed he is rather excited about the challenge and opportunities that lie before him. He will also steer a considerable part of the bank’s new five-year strategy, launched in 2013. In a brief discussion with the Daily FT soon after he took up the position, Balendra spoke about the NTB’s position amongst the other big players, where it envisages to be, areas that require improvements, and how the bank will cope with recent and future developments in the financial services industry.

"Newly-appointed NTB Chairman Krishan Balendra took up the role as chief from 1 May 2014, succeeding Arjuna Gunaratne.
Balendra was appointed to the Board of NTB in December 2009 and served as a member of the Board Supervisory Committee, the Human Resources and Remuneration Committee, Nomination Committee and the Board Credit Committee of the Bank.
He is the President and member of the Group Executive Committee of John Keells Holdings PLC, which controls a 30% stake in the bank. He is responsible for the retail sector and John Keells Stock Brokers. Balendra is also the Chairman of the Colombo Stock Exchange, a position he will relinquish in June after serving the three-year term.
He started his professional career at UBS Warburg, Hong Kong, in investment banking, focusing primarily on equity capital markets. After a four year stint in Hong Kong, he continued his career in corporate finance at Aitken Spence & Co. PLC, Sri Lanka prior to joining JKH.
Balendra holds a law degree (LLB) from the University of London and an MBA from INSEAD."

Following are the excerpts of the interview: By Shabiya Ali Ahlam Q: How do you feel about being appointed Chairman of NTB? A: I am excited by the challenge. The bank has done very well over the years, having started business only in the late ’90s. It is a relatively young bank but in that short span of time it has done very well. I am excited about the opportunity and I will do my utmost best to contribute to the continued growth and success. Q: What is your view on the bank and where would you place it amongst other local banks? A: Being a new bank it has been relatively nimble and dynamic. It has focused on the SME and retail sector and on every other aspect of commercial banking as well. It has a young team, employs new technology, and doesn’t have some of the other legacy issues that some of the older banks may have since they have been in business for much longer. I feel the bank is very well positioned because of those reasons. Q: What makes NTB stand out from the rest? A: It stands out for very good focus on customer service and for offering new products. It is very fierce in these two aspects. Q: Where is the room for improvement? A: There is always room for improvement. The bank went through a strategic review last year and identified a number of areas for improvement, with the ultimate goal being to improve convenience for customers while also looking at making the bank more efficient. We are now in the process of implementing the initiatives that were developed to address some of the issues that were identified. While the bank has done very well in the last decade or so, of course there is always room for improvement. Q: What steps will you take to accelerate growth? A: In a broad perspective it will be across all areas. We will continue to focus on the SME sector and the retail sector. The bank has done well on credit cards and has developed the credit business well. We will continue with the branch expansion, for which we have put in place an aggressive expansion strategy. We will focus on continuing to expand our reach, improve our service, and build on what my predecessor has done. Q: What are the immediate challenges you see that could affect the growth plan? A: In the banking sector as a whole we have seen that loan growth in the last 12 months has been restricted, but there are signs that it will start to pick up now that interest rates are low. That has been a challenge for the past six months and I think we should see an improvement there. Q: Will the consolidation of the financial sector, where institutions are expected to merge, affect the growth of NTB since it will have direct and indirect competition with larger banks and non-banking financial institutions? A: The consolidation will have no effect on the growth of NTB. If we were to look at the bank from the time it got into business, it has been a small bank since it is new. However, NTB has managed to increase its market share and grow the business despite there being banks that were much larger. By others merging and becoming even larger, we feel that if we continue to focus on the strategy that we have put in place, we can continue to grow. Q: You are wearing many hats as you hold a number of positions in other institutions. What experience from them will you be bringing to NTB? A: I think it is mostly the experience of sitting on boards. At the Colombo Stock Exchange (CSE) I have been the Chair of the Board for about three years so I will be bringing to NTB that experience of managing a board and board meetings and focus on good governance. The John Keells role was more of an operational one, like running supermarkets, for instance. At NTB it is more of a board role. The CEO and the team will deal with the operational issues and the focus for us is to look at policy, strategy and governance. Q: Where would you like to see NTB one year from now? A: One year from now I would like to see NTB to continue to increase its market share and improve every aspect of the business and the level of service we give our customers. Five years from now, again to increase the market share.

NTB company profile

Nations Trust Bank is noted to be one of the fastest growing banks in Sri Lanka. Its market positioning of being the benchmark of customer convenience is ably supported by a host of financial products and services that is offered to a wide customer segment. Over the last five years NTB has structured and build its offering to be diverse, strategic, and very comprehensive. The bank is confident that it is ready to take a quantum leap in the marketplace, confident of its promise to deliver world-class products and services powered by deep local understanding of what it calls “modern Sri Lankans” need and want. Envisaging a key role in the country’s long term economic transformation, NTB initiated a five year strategic mapping exercise in an attempt to ensure it attains its goal of being the primary bank to all its customers. The strategy is enabled by a comprehensive roadmap. The first phase of this ambitious transformation program was rolled in 2013 and the bank states its team has responded well to the changes. Amidst market challenges NTB ended its last financial year on a positive note with post-tax profit of Rs. 2.127 million, up 9% from the previous year. The bank’s lending was up 12% to Rs. 82.3 billion, and the growth in fact was 8.8% above industry average. It was able to continue its growth trajectory, recording a 20% increase in net operating income to Rs. 9.5 billion in 2013. With an island-wide staff cadre of 2,000, NTB operates 73 branches, an ATM network of 102 locations and is the sole issuer and acquirer for American Express cards in the country.

Kumar, Gihan appointed to NTB Board

Nations Trust Bank has appointed Kumar Jayasuriya and Gihan Cooray to the Board of Directors with effect from 1 May 2014. The appointments have been approved by the Central Bank. The JKH Group controls a 30% stake in NTB and Central Finance Group controls a 20% stake. DFCC Bank also holds 10% stake.

Jayasuriya currently serves as the Non-Executive Chairman of Finlays Colombo PLC and as a Non-Executive Director of Central Finance Company PLC, Lanka Aluminium Industries PLC and Acme Printing & Packaging PLC. He is also the Chairman of the Texlan Group of Companies; an Italian-owned BOI approved hosiery manufacturing company.

Jayasuriya is a Fellow member of the Chartered Institute of Management Accountants, UK (FCMA), a Chartered Global Management Accountant (CGMA) and a Fellow Member of the Association of Certified Accountants, UK (FCCA). From 1981 to 2013, he served in diverse roles including management accountant, Financial Controller, Finance Director, Deputy Chairman and Chairman and Managing Director of Finlays Company PLC. Prior to joining the Finlays Group in Sri Lanka, Jayasuriya served in Zambia’s copper mining industry as Cost Accountant of Nchanga Consolidated Copper Mines Ltd. – Chingola Division. He is a Trustee and Past Chairman of the Employers Federation of Ceylon, a Director of the Employees Trust Fund Board and the Chairman of the Advisory Council of the Ceylon Chamber of Commerce. Cooray is an Executive Vice President of the John Keells Group where he currently serves as the Head of Corporate Finance and Strategy and also heads the Group Treasury function and John Keells Capital – the investment banking arm of the Group. He has been with the John Keells Group since April 2006. He holds a MBA from the Jesse H. Jones Graduate School of Management at Rice University in Houston, USA and is an Associate Member of the Chartered Institute of Management Accountants, UK. He is also a Certified Management Accountant of the Institute of Certified Management Accountants, Australia and holds a Postgraduate Diploma in Marketing from the Institute of Marketing UK. Cooray has over 14 years of work experience in the fields of accounting, financial management and corporate finance. Prior to joining the John Keells Group, he was employed in the Browns Group of Companies. He serves as a member of the subcommittees on economic, fiscal and policy planning; investments and ease of doing business and young leaders of the Ceylon Chamber of Commerce. Following the new appointments the Board of Directors of Nations Trust Bank comprises of Krishan Balendra (Chairman), Director/CEO R.N.K. Fernando, D. Weerakoon, A.R. Rasiah, M.E. Wickremesinghe, C.H.S.K. Piyaratna, M. Jafferjee, K. De Soysa, D.P. De Silva, N.S. Panditaratne, K.O.V.S.M.S. Wijesinghe, K. Jayasuriya and G. Cooray.