HNB named Sri Lankan Bank of the year

HNB, Sri Lanka’s premier private commercial bank was recently awarded the Bank of the Year 2006 by the prestigious publication, ‘The Banker’.

"The Banker" names HNB the Sri Lankan Bank of the Year 2006. Rajendra Theagarajah MD/CEO, HNB with Brian Caplan, Editor - The Banker and Michael Buerk, Broadcaster BBC after receiving the Bracken Award in Dorchester Hotel, London.

At a glittering ceremony held at the Dorchester Hotel in London on November 30, Rajendra Theagarajah MD/CEO Hatton National Bank received the prestigious “Bracken” award naming HNB as the Bank of the year 2006 for Sri Lanka, a statement from the bank said.

Theagarajah said that this award is a tribute to their efforts in the past, its endeavours at present and the visionary planning done for the future.

He said way back in 2004, a shortfall in the capital adequacy ratio left HNB with a tough choice: curtail growth, shed assets or infuse fresh capital. The bank chose the last alternative. Rs. 1.1 billion was raised through a Rights Issue. A further Rs. 970 million was poised to be inculcated through a Global Depositary Receipt (GDR) when fate played its hand just two days before closure of the offer - the devastating tsunami hit and almost vetoed all the Bank’s plans. “But a 118-year old tradition of resilience and the team spirit does not go under at the first obstacle. In the short time-span of four months new investors were found and the GDR successfully closed in June 2005,” he said.

This capital input was a major catalyst in business being conducted with renewed vigour, optimism and purpose. A major on-going restructuring programme focuses on cost control, divesting of non-strategic investments, improving collection ratios, managing margins realized from advances and relationships, improve portfolio quality and the strengthening of the risk management process, the HNB CEO said.