NDB seeking new partners?

A Commercial Bank official pointed out that the merger didn’t work as NDB had a highly centralised culture as opposed to the decentralised culture at Commercial Bank.

NDB Bank, having failed in its attempt to merge with the Commercial Bank, may be looking at a foreign bank to dish out a stake, according to banking industry sources.

“There are strong indications that a foreign bank will have talks with NDB soon,” a senior banking industry source told The Sunday Times FT.

Asked about this development, Nihal Welikala, Director/CEO - NDB said that if there are opportunities arising in the future NDB will certainly be exploring them. He said that the proposed merger between the Commercial Bank and NDB failed because legal structures and staffing issues got in the way. “Given the complexities of the merger, we could not come to an agreement with these issues,” he said.

A Commercial Bank official pointed out that the merger didn’t work as NDB had a highly centralised culture as opposed to the decentralised culture at Commercial Bank.

“Commercial Bank felt that they were not getting much through the proposed merger. Deposit wise NDB is one fifth Commercial Bank’s size and it has about one fourth of the advances that Commercial Bank has,” he said, noting that this corresponds to a year’s growth at Commercial Bank.

Commercial Bank Branch Union Secretary, M. R. Shah said that there was ‘no necessity’ to enter into a merger for the Commercial Bank. He said that consolidation is inevitable in time to come and Sri Lankan banking industry should have a mindset to execute such a deal.