NDB Bank among lowest NPL ratios

The NDB group, which has reported a 16 percent rise in profit in first quarter 2008-09, has one of the lowest Non-Performing Loan (NPL) ratios in Sri Lankan banks, at 2.6 percent. The Bank said the NPL ratio as at December 31, 2007 was 1.95 percent. The basis of recognising NPLs was made more stringent by the Central Bank of Sri Lanka from 2008 onwards, it said in a statement.

The NDB group said profits attributable to shareholders rose to Rs 349 million. Post-tax profit was Rs 384 million, up from Rs 332 million earlier. The NDB Bank’s pre-tax profit increased by 17 percent to Rs 614 million from Rs 524 million while post tax profit rose 14 percent to Rs 253 million. Overall, the core banking revenue (net interest income, forex and commissions) of NDB Bank grew at a strong pace (25 percent) based on a continued growth in loans (11 percent) and deposits (26 percent), the statement said. Provision for loan losses for the period under review fell to Rs 13 million from Rs 32 million earlier.

Bank overheads however rose by 29 percent mainly due to investments in distribution channels, technology and brand development. Despite the increased expenditure, the Bank’s cost income ratio of 46 percent for the current period still compares very favourably with the ratio of other local banks, the statement said.

Among the key changes at NDB Bank during 2008 was Eran Wickramaratne taking over as the CEO.