NDB continues to strengthen SMEs and cottage industries
The National Development Bank’s (NDB) corporate mission ‘to be dominant in the financial services sector, creating superior long-term shareholder value and contributing to economic development in Sri Lanka’ remains true to its roots even today, as it stays committed to fulfil its mission towards the nation, while creating long lasting relationships with its stakeholders.
The Bank’s island-wide branch network and numerous partner outlets that form its growing customer touch points, stand testament to this unwavering commitment to offer superior service and convenience, while enabling access to finance for communities around the island.
Today, the country’s economic development has spread not only to the urban and metro areas, but also to rural areas. In line with this growth, NDB is expanding its branch network, with a focus on rural economies; enabling access to finance for individuals as well as small and medium scale entrepreneurs (SMEs) who form the backbone of the emerging economy.
Over the years, SME financing has been an integral component of NDB’s portfolio. It is a proven tool for enabling up-and-coming entrepreneurs to gain financial stability while changing their lives positively. The Bank believes in making positive change in Sri Lankan lives, by providing entrepreneurs with business knowledge, business management skills and capital to develop businesses and grow the country economy.
Today, NDB’s SME operations cater to the varying needs of the sector with emphasis on a customer focused and cash flow focused lending approach. NDB also offers medium to long-term infrastructure and project financing facilities, structured on cash flows and largely financing through credit lines under concessionary interest rates.
The Bank has enhanced its position as one of Sri Lanka’s premier financial institutions serving SMEs by extending its presence to the Northern and Eastern Provinces with the opening up of six branches in this area. Along with its growing branch network, NDB will focus on serving SME sectors such as fisheries, manufacturing, tourism, agriculture, commercial transportation, trading, dairy farming, cottage industries, etc with a view to rebuild the communities, infrastructure and cottage industries while stimulating post-war economic activity.
In line with its aim to build communities and cottage industries, NDB deploys its micro finance scheme, ‘Divi Aruna’ to numerous parts of the country. The scheme provides the much-needed capital with flexible repayment terms at an attractive pricing, with convenient serviceability, while requiring them to put aside a proton of their income as savings on a monthly basis. The financial inclusion of this customer sector will help develop social relationships within and across groups of borrowers and the bank, creating a change in the society.
To date, NDB has touched lives of a multitude of micro scale entrepreneurs and cottage industries island-wide through its Divi Aruna scheme. The most recent ventures funded through NDB Divi Aruna include, agriculture in Bandarawela, clay pots, food supply and dress making in Kalmunai, cane products and food items in Nittambuwa, fisheries, clay related products, hand-woven palm bags and sweet meat manufacturing in Hambanthota, ornamental fish, ornaments and vegetable cultivation in Aluthgama and ornamental clay products manufacturing in Embilipitiya.
In addition to its financing activities, the Bank also conducts capacity building programs in many areas of the country, on the subjects of book keeping, finance and account maintenance, management skills, project start-up, entrepreneurship, project funding and SME financing awareness to name a few. The bank believes that such initiatives will spur entrepreneurs, and enable them to create opportunities not just for themselves but also for many others. Further establishing its commitment to enhancing the knowledge of the growing SME sector, NDB recently launched its’ SME focused newsletter, ‘Siya Savi’, which will be a quarterly issue. The newsletter will be used as a tool to provide timely business advice and knowledge to this sector.
Through the many credit lines available through NDB, for SMEs as well as its own specialised products such as Divi Arua, NDB hopes to enhance and enable access to finance of SMEs thereby fostering entrepreneurship, competition, innovation and growth.
Today, NDB is one of the fastest growing commercial banks in the country with NDB Group having regional operations in Maldives and Bangladesh. The Bank offers a wide range of services through its growing island-wide branch network. In addition, as part of the NDB Group, its customers have access to a full range of banking and financial services, including SME banking, retail banking, corporate banking and project finance though NDB Bank; Investment banking, Stockbroking and Wealth management through the Investment Banking Cluster, and Insurance solutions though AVIVA NDB Insurance, making NDB truly universal. The Bank’s AA (lka) rating by Fitch Ratings Lanka is amongst the best in the industry and reflects NDB’s strong financial profile in terms of its capital base, profitability and asset quality.
