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Wednesday, 2 January 2013 01:33 - - {{hitsCtrl.values.hits}}
By Nisthar Cassim
Dr. Gamini Wickramasinghe yesterday officially ended months-long speculation of his exit as Chairman of the industry giant Bank of Ceylon, a move he said was first decided in August last year, but delayed until a successor was found.
At a briefing for journalists after addressing the staff as well as a telephone call to President Mahinda Rajapaksa to wish him for the New 
Year and discuss bank matters, Dr. Wickramasinghe said he would quit as BOC Chairman on 8 January, after the new General Manager D.M. Gunasekara (currently Deputy General Manager Retail Banking and next in line in terms of seniority) is appointed, succeeding the retiring K. Dharmasiri.
Wickramasinghe is the 19th Chairman of BOC and fourth longest serving in its history, with four General Managers during his stewardship.
In response to months-long speculation about his resignation, Wickramasinghe said he sent his resignation letter to President on 8 August 2012, but was told to stay on presumably till a successor was found. Wickramasinghe didn’t reveal reasons contained in his resignation letter but at yesterday’s briefing he said after having achieved what he wanted, remaining at BOC further wasn’t challenging enough.
“As a person, I look for challenges. Going forward, I don’t see any more new challenges for me. BOC is in good shape and any new good Chairman can steer it in the future,” said Wickramasinghe, who after taking over as Chairman in May 2007 had been commended for giving leadership for rapid expansion of BOC.
He said that the major achievement post-war was the fulfilment of BOC’s corporate target ‘One10Twelve’ – a Rs. 1 trillion asset base and Rs. 10 billion rupee profit by 2012. This was achieved well ahead of schedule, with the profit target being achieved in 2010 and the asset target being achieved in May 2012.
The bank has expanded its share of assets in the commercial banking industry from 21% in 2007 to 25% in 2012. Wickramasinghe said estimated profit for 2012 is Rs. 20 billion, yet another record, and about seven times more than what was made in 2007. In a span of 
almost six years, BOC under the leadership of Wickramasinghe has tripled its assets, deposits, loans, and shareholder’s equity.
He said to take BOC to its next level or repeat the recent rapid growth achieved into the future, capital has to be increased.
This factor too had played a part in Wickramasinghe’s quit decision, it appears. He said BOC sent a proposal to Treasury with several options aimed at increasing capital without the Government having to inject funds. “Though accepted, the proposal wasn’t implemented,” BOC Chairman said, suggesting the latter may have left him frustrated.
His wanting to boost capital doesn’t mean BOC is undercapitalised. At present BOC is compliant with requirements stipulated by the Central Bank. Core capital adequacy ratio as a percentage or risk weighted assets was 8.26% by end September, whilst the minimum requirement is 5%. However, the minimum total capital adequacy ratio as a percentage or risk weighted assets is 10% and BOC’s figure was 10.82% as at end September. Recently it successfully raised Rs. 6 billion via a five-year debenture, which helped to boost Tier 2 capital. One third of rising profits of BOC is also added onto the capital.
In his address to BOC staff yesterday, Wickramasinghe had said he was leaving “with a sense of heartfelt sadness” though taking with him “nearly six years of cherished memories”.
“It has been a privilege and honour to lead this great institution. During my short stay within the bank’s long history, I envisioned repositioning it as a modern, strong, international bank, which serves all communities of this paradise island,” Wickramasinghe said.
BOC staff was also told that having achieved the targets of the ‘One10Twelve’ corporate plan, the bank was now in the process of developing a new corporate plan for the next three years.
Further, consolidation of its No. 1 position and taking the bank to greater heights in service delivery and implementation of rapidly-progressing ICT should be the key focus in shaping the bank for future generations.
In financial terms, BOC is aiming for Rs. 1 trillion in savings by the end of 2013, thereby doubling the balance sheet to Rs. 2 trillion by the end of 2014, the primary objective being for the country to achieve US$ 4,000 per GDP capita by the end of 2015.
Wickramasinghe told journalists that during his telephone conversation with President Rajapaksa yesterday, his suggestion was not to appoint a politician as the successor if the Government was keen to nurture BOC further and make it dynamic to serve the future needs of the country.
However, among the speculated names as likely new Chairman at BOC, most are professionals.
Wickramasinghe also dismissed reports that differences of opinion or arguments between him and MP Namal Rajapaksa as well as Treasury Secretary Dr. P.B. Jayasundera caused his resignation.
“I have no issues with Namal; nor did we have any issues,” the BOC Chairman said, and maintained the same stance with regard to Dr. Jayasundera as well.
Wickramasinghe, who has been holding public positions for the past eight years (prior to being BOC Chairman, he was also the Chairman of the Securities and Exchange Commission and the Insurance Board of Sri Lanka), said he has always been apolitical and this was more important at BOC if it was to win the support of senior management and staff to take the institution forward.
As per his future plans, Wickramasinghe, who is an entrepreneur in the ICT industry, said he wanted to take a break before looking at options even though he had received several offers already.
