RETAIL
BANKING
KEY STRENGTHS
•
A significant share of the market which represents
42% of the Bank’s total credit portfolio
•
Over 2,100 touchpoints across the island
•
A loyal customer base
•
Access to development funding lines
•
Versatile product portfolio
OUTPUTS
•
Deposits
•
Loans and advances
•
Development lending
•
Transactional banking
Constitutes a range of
lending, deposits, and
transactional banking
solutions targeting
individuals, entrepreneurs,
and MSMEs.
PERFORMANCE OF BUSINESS SEGMENTS
OPERATING CONTEXT
In the aftermath of an extremely
challenging year, the banking sector
remained resilient; amid the economic
contraction expected for the year 2023,
with anticipated restoration of debt
sustainability, inflation moderating,
and a gradual recovery of financial
stability. The Bank’s retail segment was
impacted by the challenging operating
environment, and stringent regulatory
controls including the CBSL Monetary
Law Act implemented in 2023. Despite
the challenges, the retail segment
continuously worked to strengthen
its lending portfolio, and focused on
supporting individuals, entrepreneurs,
and MSMEs.
Under the high interest rate regime that
prevailed during the initial stages of
the year, the Bank continued to honour
deposit interest payments which were
at higher fixed rates. However, in order
to safeguard personal loan customers
who obtained credit on variable rates,
the Bank took measures to provide
preferential interest rates despite the increase in funding costs as a result of the lag
effect of repricing the Fixed Deposits.
PERFORMANCE AGAINST STRATEGY
Stability, Governance
and Sustainable
Growth
•
Strengthened internal controls
to meet audit and compliance
requirements.
•
Promoted the green banking
concept through new deposits and
lending products.
•
Aligned targets to comply with the
sustainability agenda as well as
overall sectoral stability.
•
Propagated social and
environmental consciousness
through ESMS lending criteria.
•
Established strategic partnerships
for green financing with several
agencies such as ‘Idea Green
Tech’, ‘BAM Green’ and ‘Hayleys
Fentons’.
Excellence in
Customer Experience
•
Extended additional credit as
working capital and investment
loans to start-ups and SMEs to
meet capital requirements.
•
Provided financial assistance to
new SME entrepreneurs to increase
local production as substitutes to
imports.
•
Offered concessionary rate of
interest to the affected borrowers
on a case-by-case basis.
•
Carried out capacity building
programmes for entrepreneurs and
professionals.
•
Provided financial assistance and
guidance to underperforming
borrowers to overcome the cash
flow issues and turn the business
smoothly to performing category.
•
Established the "BoC Gammana"
to increase financial inclusivity and
improve the livelihoods of rural
communities.
•
Strengthened 'BoC SME Circle'
and 'BoC Export Circle', to
support MSMEs, and start-ups in
the export business.
Digital
Excellence
•
Launched the online platform for
loan applications.
•
Automated multiple internal
processes.
•
Automated the customer
onboarding processes.
•
Launched new digital products to
cater to retail customers.
Rewarding Credit
Culture and Healthy
Credit Portfolio
•
Introduced ‘SME Energizer’ - the
Bank funded loan scheme, to
stimulate economic growth and
export earnings by providing
credit facilities to MSMEs.
•
Funding support through global
and region level funding Agencies
for perennial crop sector
•
Provided loan schemes to women-
led businesses to empower Sri
Lankan women.
•
Referred businesses struggling
to fulfil debt obligations to
the Business Revival and
Rehabilitation Unit to extend
required support.
•
Revamped the Regional Loan
Centers (RLCs) to strengthen the
credit evaluation process and to
expedite retail lending.
•
Restructured credit facilities
of affected borrowers due to
economic downturn in line with
the cash flow of the business.
•
Allowed payment holidays to the
affected borrowers by evaluating
the businesses and the cash flow
on case-by-case basis.
Building a
High-Performing
Team
•
Continued to explore hybrid
models to ensure a healthy work-
life balance for our employees.
•
Provided necessary training for
employees engaged in customer
service.
•
Introduced reward schemes to
boost the morale of employees.
DEPOSITS
Even though the interest rate started to
decline from mid of the year 2023, the
Bank was able to report a growth in the
Deposit base. The Bank focused more
on funding through Deposits. Retail
segment represent 62% of the deposit
base at total Bank level and out of the
retail bank deposit base 51% comprise
of LKR time deposits. In 2023, the retail
segment deposit base demonstrated a
significant growth driven by high deposit
rates. LKR time deposits grew by 9% and
total deposits grew by 7%.
The Bank maintained a proactive
approach in introducing new products,
to adapt to evolving market dynamics,
and swift fluctuations in interest and
exchange rates. The Bank also formed
new Mithuru groups generating low-cost
deposits amounting to LKR 26.0 million.
The CASA ratio of the Retail Banking
segment stood at 33% reflecting the
volatile business landscape experienced
by SMEs, entrepreneurs, and personal
customers during 2023.
LOANS AND ADVANCES
Under subdued economic conditions
with higher credit risk, tighter controls
for liquidity and capital adequacy, and
stringent provision requirements, the
retail segment focused on expanding its
lending portfolio in a cautious manner.
Three new development
loan schemes
LKR 2.5 billion, Bank funded
"SME Energizer " Scheme
LKR 66.3 billion
Development lending
Amidst these challenges, the segment
concentrated on supporting SMEs
and entrepreneurs by offering working
capital and investment loans to uplift
or revive their businesses. Exemplifying
this commitment, the Bank launched the
‘SME Energizer’ loan scheme in 2023
with Bank funding of LKR 2.5 billion. This
was a pioneering initiative that led to an
expansion in credit while enabling us to
help our customers move forward during
tough times.
BoC SME Circle and BoC Mithuru
initiatives continued during the year,
providing MSMEs customers, with
end-to-end services, and guidance to
improve their business ventures. The
Business Revival and Rehabilitation
Unit put in a major effort to convert
financially distressed customers who had
the operational capability and carried
out thorough and intense evaluations
to support them in enhancing their
portfolios with the required financing.
Under the green financing umbrella, the
segment concentrated on increasing
its lending towards renewable energy
solutions, biogas and waste management
projects, and leasing for electric vehicles,
housing, educational and commercial
loans remained subdued during the year.
Realising the opportunity for growth in
the leasing business, campaigns were
carried out across all provinces.
A new division for Central Credit
Operations was established to monitor
and streamline the 15 RLCs operating at
each province. RLCs were strengthened
by assigning adequate and experienced
employees and providing continuous
training programmes. Entire RLCs have
been streamlined to process the Housing
and Commercial Loans within the Turn
Around Time (TAT) and a monitoring
mechanism was introduced to avoid
delays in credit processing.
The segment recorded a significant
growth of 39% in its ‘Ransurakum’ as
people turning to pawning as a quick,
convenient and accessible source of
funds, which enabled mostly short-term
funding requirement.
TRANSACTIONAL BANKING
The banking industry’s shift towards
digitalisation and seamless cashless
transactions via credit and debit cards,
which has become a fast and convenient
way to access diverse retail and service
providers, witnessed an increase in
volume of 21% during 2023.
The Bank’s Internet Payment Gateway
(IPG) introduced in partnership with
Mastercard international, which offers
secure online transactions and global
e-commerce solutions, experienced
greater adoption, resulting in a 7%
increase in transaction volumes.
The Bank’s Point Of Sale (POS) machines
recorded a steady growth and market
penetration of 34% in 2023. The increase
in transactional banking is a reflection of
the Bank’s continuous journey towards
digitalisation. Through our extensive
branch reach, we catered to all provinces
in the country face-to-face and via digital
platforms, ensuring the accessibility of
financial services in all areas of the island.
WHERE WE ARE HEADED
OPPORTUNITIES
•
Facilitating urgent funding needs.
•
Lending opportunities to support
MSMEs.
•
Opportunity to increase leasing
portfolio.
•
Business expansion through green
product initiatives.
RISKS
•
Imposition of Value Added Tax limiting
the repayment capacity, access to
new credit, and threatening business
continuity of small-scale customers.
•
Heightened credit risk due to
borrowers failing to meet their debt
obligations on time.
•
Operational risk due to high attrition
rates as employees migrate, impacting
the Bank’s productivity.
•
Loss of business owing to high
net-worth customers moving to other
banks offering competitive rates.
•
As Sri Lanka’s leading bank, BoC
remains committed to serve the
community and support business
recovery through access to funding,
personalised solutions and advisory
capacity.
•
Enable a greater shift towards climate
consciousness, which will be reflected
across the segment’s offerings,
including retail deposits and credit
facilities.
•
Promote digital literacy and financial
inclusivity within communities, while
maximising the benefits of digitalisation
and encouraging cashless transactions.
•
Expand lending portfolio, funding
export oriented MSMEs, and
aggressively pursuing growth.
•
Provide working capital and investment
as well as guidance, mentoring and
training, under the Saubagya Loan
Scheme, in line with the 'Saubagya
Development Bureau' which aims to
uplift the efficiency and production
capacity of village communities in
terms of the assigned products.
Way Forward
Launched: Credit Card for CA Sri Lanka members
CORPORATE AND
OFFSHORE BANKING
KEY STRENGTHS
•
The largest corporate lender in Sri Lanka, with an loan exposure
over LKR 1.3 trillion contributing 53% to total loan portfolio of the
Bank.
•
Supports the large-scale industries, institutions, and projects, impacting
entire supply chains.
•
Generating employment opportunities for millions of Sri Lankans.
•
A vital engine of foreign exchange for the Bank as well as for the country.
OUTPUTS
•
Corporate lending
•
Customer deposits
•
Offshore banking
•
Project financing
•
Trade services
•
Premier banking
Provides a variety of
financial services to the
private sector, and state
sector corporates and
institutions.
OPERATING CONTEXT
Corporates which were affected by the
spillover effects of the recent economic
crisis, continued to operate amidst
multiple challenges. As a result of the
global economic downturn, global supply
chains were disrupted, leading to delays
in imports of raw material required for
production, which in turn led to delayed
production and customer payments.
Most businesses remained vulnerable
under the high interest rate regime and
were further challenged by the hike in tax
rates.
However, during the third quarter we
witnessed some signs of improvement in
the economy and banking business and
a gradual increase in credit was seen with
the easing of policy rates by the Central
Bank of Sri Lanka.
PERFORMANCE AGAINST STRATEGY
Stability, Governance
and Sustainable
Growth
•
Ensuring ESMS Compliance before
funding.
•
Green financing to promote
renewable energy, environmental
friendly industries.
•
Compliance with relevant rules
and regulations including foreign
exchange directions.
•
Facilitated major State-Owned
Enterprises (SOEs) despite the
challenging economic conditions
and considering the overall national
interest.
Excellence in
Customer Experience
•
Granted additional facilities on a
case-by-case basis considering the
business viability of the ongoing/
new projects.
•
Granted financial assistance to
customers looking to diversify their
businesses, with a special focus
on enhancing exports and forex
inflows.
•
Provided required assistance to
customers by extending the tenure
of facilities and deferring interest
and capital repayments.
Digital
Excellence
•
Introduced Smart Online Banking
Corporate version to corporate
customers.
•
Launched BoC Trade Channel
to facilitate and handle all trade
finance related banking requests
via the digital portal.
•
Automated the branch level trade
operations with the introduction of
a new Trade Finance System.
•
Extended online real-time
validation and updating.
Rewarding Credit
Culture and Healthy
Credit Portfolio
•
Restructured existing facilities to
match loan repayments to their
existing cash flows.
•
Monitored business cash flows
to ensure cash flows are utilised
for business purposes and loan
repayments, thereby assisting
corporates to achieve financial
discipline.
•
Established a dedicated SOE
relations unit to enhance services.
•
Following up with covenants and
conditions imposed by approvring
authorities.
Building a
High-Performing
Team
•
Continuous knowledge sharing
sessions were conducted on
subject matters and relevant topics.
•
Five training programmes UCP 600,
URC 522, Bill of Lading, Incoterms
and Marine Insurance were
conducted to staff members related
to international trade business.
The largest fund
provider for essential
imports of
Sri Lanka
USD 14.2 million
Export Remittances
through Export Circle
CORPORATE BANKING
As a multitude of challenges converged,
creating an uncertain operating
landscape, the segment primarily focused
on identifying and managing risks while
continuously prioritising its strategic
objectives. Private corporate sector
exposure grew from 30% to 35% during
the year under review, demonstrating the
commitment to onboard new customers,
explore ventures, support emerging
industries, and extend working capital
financing to crisis-hit businesses. In a
scenario where non-recourse funding
with international banks was largely
unavailable, BoC stepped in to support
the private sector’s hardest hit segments,
including apparels, construction, tourism,
fertiliser and more.
The division enhanced value addition to
its customers, leveraging the specialised
capabilities of the division. In addition to
providing funding support to businesses,
the segment focused on offering non-
financial support including advisory
services.
OFFSHORE BANKING
The Offshore Banking Division continued
to extend financial assistance by granting
short-term and long-term facilities in
terms of foreign currency to exporters,
while facilitating their inward/outward
remittances in order to sustain their
export-oriented industries, which in turn
boosted export earnings in the economy.
Additionally, the division successfully
financed a large-scale housing
development project and several resort
projects in the Republic of Maldives
during 2023, further solidifying its
presence in financial markets within
Sri Lanka and the republic of Maldives.
TRADE FINANCING
BoC played a crucial role in supporting
priority sectors involved in the import
of essential goods including fuel,
liquid petroleum, gas, food items,
pharmaceuticals, vaccines and medicines
as part of its national commitment to
fostering economic revival and social
stability. Despite having to bear heavy
import bills, the Bank arranged swap
agreements and multilateral and bilateral
lines of credit, to support the nation
during the throes of the crisis. Trade
finance income was critically impacted
by reduction in short-term interest rates,
reduced fee-based commission charges,
appreciation of the Sri Lankan Rupee,
import restrictions which prevailed for
most part of the year, and low private
sector credit growth.
The segment continued to canvass new
export-oriented startups and SMEs in
collaboration with the branch network
through the Bank’s fully-fledged one-
stop "BoC Export Circle”. Support
and guidance were provided on export
related advisory services, linking with
necessary trade associations and key
Government institutions such as the
Export Development Board (EDB),
Industrial Development Board (IDB),
and Sri Lanka Export Credit Insurance
Corporation (SLECIC).
Loan
disbursements
under BoC
Export Circle
LKR 1,021.1
million
In line with the Bank’s progressive
digital agenda, the segment launched
a new Trade Finance System during
the year and the solution was rolled
out to the entire branch network. This
system implementation was essential
in streamlining the Trade Finance
Operations and enhancing customer
service at branch level. Additionally, the
segment focused on promoting and
canvassing the Bank’s new Trade Finance
online Banking System which facilitates
customers to process all Trade Finance
related banking requests online.
PROJECT FINANCING
Businesses continued to postpone or
scale back investments in infrastructure
development and construction projects
amid uncertain market conditions. High
material prices, high interest rates and
import restrictions on some construction
related materials affected the businesses
in this sector, thus limiting the scope
of project financing during the year.
However, emerging opportunities were
identified in the renewable energy
industry and greater focus was placed
on extending credit lines towards such
projects.
The segment also focused on providing
financial support to export-oriented
manufacturing industries, mixed
development projects partially financed
through foreign direct investment, and
manufacturing of healthcare products
that could be used as import substitutes.
We also continued to provide advisory
services to implement feasible projects
in emerging markets, including export
of agricultural products, manufacturing
electric bikes and related products, and
the development of waste management
systems that would earn and save foreign
exchange for the betterment of the
nation.
Further, essential import requirement of
the country was facilitated through the
support of foreign funding canvassed
with credit lines of multilateral funding
agencies.
STATE OWNED ENTERPRISES
RELATIONS
A new business unit, "SOE Relations"
was established during mid-2023 to
provide a dedicated service for the
business requirements of SOEs aligning
with the proposed SOE restructuring
by the Government. SOEs are being
financed purely based on their cash flows
without limiting to Government-backed
securities. The continuous support was
extended to SOEs in the priority sectors
involved in the import of essential goods,
including fuel, liquid petroleum gas,
pharmaceuticals, vaccines and medicines
as part of its national commitment to
fostering economic revival and social
stability.
In view of nurturing the economic
development of the country, financing
for self-sustained SOEs will be decidedly
considered in the future, aligning with
the road map of the Government.
WHERE WE ARE HEADED
OPPORTUNITIES
•
Integrating advanced digital
technologies to streamline operations,
enhance security and offer innovative
online banking services.
•
Considerable growth in tourist arrivals
and improvement in the tourism
sector.
•
Emerging opportunities in the
renewable energy segment.
RISKS
•
Exposure to broader geographical and
geopolitical scope due to Offshore
operations.
•
Sluggish growth and increased default
risk in the construction sector.
Way Forward
•
Digital transformation and adapting
to new market changes, especially
in e-commerce to improve service
efficiency and client satisfaction
thereby strengthening the Bank's
competitive position.
•
Seek new destinations for expansion as
a strategic move to diversify and grow.
•
Enhance sustainable businesses and
industries.
•
Expand the reach of the Export Circle
through province level export fora for
SME and start-up exporters.
•
Harness the potential trade finance
business through our overseas
branches and increasing the trade
business base through strategic
partnerships.
•
Build more awareness on selling culture
and driving towards cross selling
opportunities.
Number
of exporters
canvassed under
BoC Export
Circle
140
OPERATING CONTEXT
After navigating through severe
challenges stemming from the pandemic
and economic crisis, the country as
well as the banking sector witnessed
a progression during the latter part of
2023. During the year, the Central Bank
of Sri Lanka issued several Guidelines and
Directions including maximum interest
rates of Rupee denominated lending
products, amendment to the definition of
liquid assets under Section 86 and 76J of
the Banking Act No. 30 of 1988, operating
instructions on Reserve Requirements,
Central Bank’s Rate of Interest on
Advances (Bank Rate), Operating
Instructions on Open Market Operations
of the Central Bank of Sri Lanka and
Directions on Primary Issuance of Treasury
Bonds which had an impact on the Bank
and treasury operations.
State banks were highly-exposed to
the sovereign as at end 2Q of 2023 by
way of SLDB, ISB and foreign currency
loans which posed concerns with the
implementation of the Domestic Debt
Optimisation (DDO). However, the Bank
successfully completed the restructuring
of SLDBs through an internally developed
mechanism without affecting the liquidity,
profitability and Net Open Position (NOP)
of the Bank or impacting the foreign
exchange market.
KEY STRENGTHS
•
International presence and long-standing
relationships with foreign banks and counterparties
•
Market leader in Inward Remittances
•
Dedicated teams supporting the Bank’s continual
improvement of procedures, processes, and
governance protocols.
OUTPUTS
•
Liquidity management
•
Treasury products
•
Investment banking products
•
Inward remittances
•
Correspondent banking relationships
•
Performance of overseas branches
Despite the challenges, the Bank was
also able to retain its market leadership
position in Inward Remittances,
demonstrating the dedication and
commitment of the team.
PERFORMANCE AGAINST STRATEGY
Stability, Governance
and Sustainable
Growth
•
Continuous image building efforts
by way of awareness programmes,
networking among all stakeholders.
•
Strategic partnerships initiated for
the Bank’s future growth.
•
Rationalisation of equity investment
portfolio.
Excellence in
Customer Experience
•
Expanded the “Foreign Circle” to
support overseas customers.
•
Established five new tie-ups during
2023, which will further aid in
improving our worker remittance
market share.
•
Introduced pre departure and post
departure loan schemes to support
expatriates.
The cluster handles
foreign currency related
transactions, liquidity
and fund management,
investment activities
and overseas branches.
INTERNATIONAL,
TREASURY,
INVESTMENT
AND OVERSEAS
OPERATIONS
•
Frequent customer fora across
overseas operations with special
focus on retaining high net worth
deposit customers.
Digital
Excellence
•
Automated the Trustee Custodian
and Wealth Management functions
of the Investment Banking Division.
•
Revamped the Smart Remit system
to offer the fastest remittance
disbursement experience in the
country, aimed at providing online
real time processing within 5-15
seconds.
•
Implemented instant transaction
and monitoring for retail MVR
account holders throughout all the
banks in Maldives, 24/7 all year
through.
•
14 New API integrations during
2023.
•
System enhancements to
strengthen data security.
Rewarding Credit
Culture and Healthy
Credit Portfolio
•
Constant assessment of the
liquidity risk management
framework.
Building a
High-Performing
Team
•
Carried out staff awareness
programmes for inward remittance
related services through both
digital and physical platforms.
•
Remote working facility was
provided.
•
Implemented various productivity
enhancement initiatives for staff
INTERNATIONAL BANKING
With the fierce competition in the local
market and the remarkably resilient
nature of worker remittances as a source
of foreign exchange, the Bank paid more
emphasis on retaining and enhancing its
healthy worker remittances market share.
At present, BoC has correspondent
banking relationships with 763 banks
and 94 exchange companies around the
globe, providing convenient access for
expatriates to send their hard-earned
money to their loved ones. Five new
tie-ups were established during the year
2023, which will further aid in improving
our worker remittance market share. 30
Business Promotion Officers have been
deployed in selected locations across the
globe to assist the overseas customers
to conduct their banking operations
smoothly.
The Bank was able to achieve a
significant share of the worker remittance
market in 2023 and secure its leading
position in the market. Total worker
remittances amounted to USD 1,237.4
million, marking a 49% increase in
comparison to 2022. Worker remittances
were received from almost all the
countries in the world through our
widespread correspondence network.
The Division organised 38 events to
honour and felicitate the Bank's loyal
customer base. During the year under
review, a total of 190 events were held
with the participation of nearly 9,400
customers. The Bank focused on migrant
workers, their families and prospective
migrants to create greater awareness on
the financial services offered.
Inward remittances
USD 4.8
billion
Positive foreign currency
and Rupee liquidity position
BoC My Sri Lanka
Special FCY FD
LKR 10.0 billion
The first state bank in
Sri Lanka to issue Basel III
Compliant, Listed Debentures
Correspondent
banking
relationships
with 763
banks and
94 exchange
companies
around the
globe
05 new tie-ups
established
during 2023
30 Business
Promotion
Officers in
overseas
To encourage the expatriate community
to send more remittances through BoC,
the following marketing campaigns were
conducted throughout the year 2023.
BoC Pita Pita Rata Thegi
Ratin Kaasi Bilata Waasi
BoC Ran Kahawanu Radio Programme
Ethera Methera TV programme
Joint marketing campaigns with
exchange companies in different
countries were also conducted and
customised tariff structures and rebate
systems have been offered to prominent
exchange companies to incentivise them
to route more remittances to Sri Lanka
through the Bank.
TREASURY
During the first two quarters of the year,
the Treasury Division managed the Bank’s
liquidity with high-cost borrowings and
deposits, leading to higher interest
expenses. At the same time lending
contracted and interest income reduced
along with an increase in NPA loans,
which led to further narrowing of the
net interest margin. Nevertheless, the
Bank rebounded during the latter part
of the year, considerably reducing
interest expenses by settling high-cost
LKR and foreign currency borrowings
and repricing deposits at lower interest
rates. The negative liquidity position
which prevailed at the beginning of the
year was turned around to a positive one
by May 2023 and steadily maintained
throughout the rest of the year.
The Division constantly assessed the
liquidity risk management framework to
ensure sufficient liquidity buffers were
maintained to face anticipated stress
events and proper functioning of the
Bank.
Despite various constraints, the
Division maintained the mandated
ratios and established the role of
Treasury as a neutral steering function.
Our Government securities portfolio
consisting of treasury bills and bonds
marked a growth compared to 2022
as excess liquidity was invested in
short-term treasury bills by effectively
utilising the trading opportunities in
the Government securities market, the
Treasury Division received a capital gain
by the year-end.
INVESTMENT BANKING
The Division marked a milestone
emerging as the first state-bank in
Sri Lanka to issue Basel III Compliant
listed Debentures totalling LKR
10.0 billion. With the listing of BoC
Debentures, CSE facilitated the listing
of perpetual bonds in the stock market
for the first time to meet the Basel III
write down features attached to the BoC
debentures.
With an enhanced portfolio management
service offered to new clients, the
Division was able to increase its customer
base by 28%.
Steps were also taken to rationalise long
held loss making shares in the share-
trading portfolio by implementing a
strategic plan to dispose shares.
Furthermore, automation of the
Investment Banking function is in
progress.
OVERSEAS OPERATIONS
Embarking on a global journey, Bank of
Ceylon has extended its reach across
continents, making a significant mark
in four key locations including Bank of
Ceylon (UK) Ltd, which is a fully-owned
subsidiary of the Bank.
BoC has solidified its role as a trusted
partner in overseas banking operations
offering seamless global personal and
business customer services with fully-
fledged treasury operations.
Chennai
Despite the global crisis conditions
which prevailed, the branch succeeded
in funding several special large-
scale projects across manufacturing,
trading and export industries. Specific
management efforts were taken to
manage the operations and ensure
resilience including,
•
Continuous image building efforts
by way of awareness programmes,
networking among all stakeholders
•
Frequent customer fora
•
Capacity and morale building
programmes for staff.
Several system enhancements were also
carried out during the year in order to
strengthen data security of the branch
operations and cyber security.
Maldives
The management of our Maldives
branch executed a multifaceted strategy
to navigate the uncertainties while
safeguarding both the Bank's operations
and the well-being of its stakeholders.
Employee well-being initiatives,
collaboration with regulatory authorities,
active community engagement and
regular monitoring and adaptability
underscored the Bank's commitment to
manage the emerging challenges.
•
Intensified focus on digital banking
channels to address the increasing
reliance on online services. As
initiation from the Maldives Monetary
Authority, the branch has successfully
integrated with “Favara” platform
during the year to implement instant
payment system for MVR transactions.
•
Offered large-scale credit packages
specially towards tourism, construction
and real estate industries in Maldives
during the year
•
Prioritising customer support
initiatives, offering flexible repayment
options and guidance on relief
programmes to assist clients facing
financial challenges.
•
Rigorous safety protocols
implemented at branches for essential
services, emphasising the well-being
of customers and staff.
•
Transparent communication,
continuous risk assessment, and
contingency planning.
Seychelles
The management of the Seychelles
branch took several measures to improve
customer relationships, especially in
terms of building the confidence of
depositors. The branch successfully
improved its asset quality displaying its
commitment to maintain a healthy credit
portfolio.
On the digital front, the branch
completed phase one of the internet
banking solution and implementation
of an automated Trade Finance system
during the year. Seychelles branch
has shown an upward performance
consecutively in the year 2023 too.
WHERE WE ARE HEADED
OPPORTUNITIES
•
Continued gains from digitalisation,
process automation, efficiency
improvements, and investment in
human capital.
•
Expansion of BoC’s international
reach and presence by entry into
new markets.
•
Enrichment of business decision
making through cash and liquidity
forecasting and predictive
reporting.
•
Leveraging the Bank’s strengths
to provide capital market
advisory services, expand trustee/
custodian activities, and portfolio
management services.
RISKS
•
Global macroeconomic pressures
•
Volatility of the equity market
Way Forward
•
Increase exchange income with
higher volumes and thin margins.
•
Canvass low-cost deposits and
expand investments to increase
interest income, capital gains and
Net Interest Margin (NIM).
•
Enhance the dealing operations
through the branch network.
•
Open derivative products such as
hedging, options, futures, e-trading
platform for customers.
•
Enhance foreign exchange
transactions in INR with the
collaboration of BoC Chennai.
•
Process automation to enhance
efficiency of operations.
•
Expand Portfolio Management
Service through marketing
campaigns to enhance fee income.
•
Expand our international presence.
•
Continue the digitalisation
process across all overseas branch
operations.