Pan Asia Bank today is best termed as one of the fastest growing bank’s in the country. Having been in operations for the last 14 years, it is a public quoted 100% Sri Lankan bank. Through the past the bank has gone through various changes out of which in May 2008, Ms. Kimarli Fernando joined on board as the banks newly appointed Director and CEO. Dynamic and very optimistic by nature Ms. Fernando brings with her over 21 years of experience in the local as well as foreign banking industry. The Sunday Times spoke to Ms. Fernando to find out the bank’s current position and its future plans.
Ms Kimarli Fernando-CEO |
“Pan Asia Bank, for me is an unpolished diamond with a lot of potential, we have 33 branches connected island wide where in which we opened our recent branch in Anuradhapura and also look forward to opening a branch in Vavuniya with the approval of the Central bank of Sri Lanka. The last year has been a year of significant change for the bank; the key change for the bank is the centralizing of most of its banking functions. We have also been able to improve controls significantly with improvements in efficiencies and management of risks, which have greatly reduced unwanted costs, managed risks and our deposit base has further increased by 19%”, says Ms. Fernando.
Clearly speaking last year has been a phenomenal year for the bank. These achievements are largely due to the bank adopting efficient and effective processors, efficiencies, and disciplines as well as identifying customers’ needs more clearly. Another area that has seen a significant improvement is the bank’s pawning service, which has increased from Rs. 250 million to Rs. 1.1 billion in six months. In addition to this the bank has also upgraded its leasing facilities by introducing a fully automated leasing system and hopes to aggressively improve this service in the years to come.
“Having been in operation for only 14 years, we are a bank the is relatively new, we are also lean and agile and have adopted a flat management structure, therefore enabling us to change at a rapid pace. We have launched private banking under the logo First Class Banking and having realized the existing gap in expectations and delivery we have personalized our banking services.
Our goal is to produce a very efficient highly engaged banking team and we are moving forward in this direction. We have also forged ahead into corporate banking expanding our customer base to include some of the top corporates and blue chip corporates in various industries. However our key focus will always be on the SME and middle market, but we want to keep the right balance by expanding our outreach to coporate banking as well”, further stated Ms. Fernando.
Pan Asia has shown impressive results towards the end of the first quarter and under the new management this years financial results seem very promising. Ms. Fernando also stated that due to the recent unfortunate events that have taken place in the banking and financial industry the general public have now become aware of the difference between a licensed Fianancial Institution and a non-licensed Financial Institution and will no longer be misled by organizations promising unusually high interest rates. Ms. Fernando also foresees more prudent and increased regulations taking place in the future with regard to the banking industry both locally and internationally.
The recent request made to the banking industry by his Excellency the President is to increase lending and to reduce interest rates. Pan Asia has therefore moved towards providing a 4% reduction on its lending rate to prime customers, which is quite a significant reduction. In addition to this the entire banking industry has agreed upon bringing down the penal interest rate to 29% for unauthorized outstandings.
Another area of concern that the general public should be aware of is the fact that banks charge an interest of 42% to 50% per annum on credit cards. Credit card users pay this amount of interest unknowingly. Pan Asia Bank has taken the lead to reduce the interest component on its credit cards to 30% per annum, which is a reduction of 12%. The credit card portfolio of Sri Lanka is estimated at around Rs. 40 billion and should the other banks follow with the reduction of 12% given to credit card users this will be a significant amount that will be saved by the general public.
“Forward is where we are headed, in the few years of our operations we have achieved several milestones. Although this year we have met many challenges we at Pan Asia Bank see challenges as opportunities. Whilst deeply involved in building a strong foundation for growth Pan Asia Bank is steadily working towards achieving its vision to become the most preferred commercial bank in Sri Lanka”, concluded Ms. Fernando.
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