To set up specialized unit:
BoC enters investment banking
Launches medium term corporate plan:
Bank of Ceylon is focusing more on equity management and will set up
a specialized unit to handle investment banking.
“This would be a paradigm shift in our banking system,” Bank of
Ceylon Chairman Dr. Gamini Wickramasinghe said.
Dr. Gamini Wickramasinghe
Bank of Ceylon (BOC) launched a medium-term corporate plan taking
into consideration the dramatic shift in the economic potential of
post-war Sri Lanka.
“The new plan looks towards a future vision for the Bank outlining
the direction, focus and vision to take off with the country in its
development process,” he said.
The corporate plan considers several fortes of BOC including the 100
percent state ownership, premium brand equality, loyal and committed
staff, hefty asset base and the extensive reach.”
The plan, “One 10 Twelve Renaissance” explores new opportunities such
as investment banking, mutual funds, private banking, wealth management,
mergers and acquisitions and Islamic banking as avenues for growth”, he
The goals of the plan are to achieve a one trillion balance sheet and
Rs 10 billion in profits by 2012.
This transformation strategy keeps in line with its strategies which
impacts various economic sectors.
“We are already making adjustments to our innovation focus, service
differentiation, diversification, cross- selling ability, governance and
risk control. Emphasis on technology and human capital are being
implemented successfully. All this will propel the significant
conversion in management mode and growth and profit realization pattern
to fit One 10 Twelve Renaissance,” the Chairman said.
“Achieving the envisaged growth and expansion through financial
intermediation business will mean that we will have to extend
concentrated efforts in commercial and development banking services.
“As we are already surrounded by a deeply customer- centric banking
sector we seek to actively embrace a new selling culture,” he said.
The Bank of Ceylon UK branch will be converted to a subsidiary by end
March and more foreign branches will be opened through this bank. This
will made the BoC an international bank. BoC would invest in companies
and banks with a view to diversify bank portfolio, he said.
The North and the East will be major component of the bank’s growth.
It will assist the industries such as dairy farming, fisheries and
agriculture to revive the economy in these provinces.
“The BoC has provided Rs 5 billion loan facility to these sectors as
the fore-runner in the development drive.
The bank also helps in import substitution industries creating
economic movement,” he said.
“Sri Lanka is looking at promoting tuna exports and building a brand
as Sri Lankan tea. The BoC has providing loans to purchase long line
fishing boats which cost Rs 30 to 40 million.
There is a good export market in countries such as Japan and the
country needs to capture this opportunity,” he said.
“The credit card unit of the BoC will be re-launched and will be
housed in a separate location in the WTC. The bank would have the option
of cross-selling as it has seven million account holders. We could
generate business within these customers,” he said.