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LDB chairman, Sarath de Silva |
LDB to move into equipment leasing and pawning
by Surekha GALAGODA
[email protected]
Lankaputhra Development Bank (LDB), a product of the Mahinda Chintana
will move into the areas of equipment leasing and pawning before the end
of the year, said its Chairman Sarath De Silva.
Created to cater to the SME sector and correct the regional imbalance
of entrepreneur development in this country the bank will have a
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LDB's
special loan schemes
* Krushi Navodaya
* Kapruka
* Micro Finance
* Loan scheme for footwear industry
* New Comprehensive Rural Credit Scheme
* Agro livestock Development Loan Scheme
* Mahaweli Loan Scheme
* 1 SME special loan scheme
for garment industries
* 2 SME special loan scheme for apparel sector
* Special loan scheme for reopening
closed garment factories
* SME Gem and Jewellery loan scheme |
relationship with the post offices and function as a post bank, green
bank and education bank together with the ETF.
He assured that all deposits of LDB are safe and secure. Sri Lanka
should seriously think of establishing a Financial Services
Authority(FSA) on the lines of UK as the Central Bank cannot do the
watchdog functions as it should be done by the FSA.
The bank is planning to improve the savings habit in the country and
to make it a success. LDB is planning to tap into the resources of the
postal network. As an initial step we propose to issue savings
certificates through post offices and sub post offices and we trust this
exercise will be a success as there is a postal network around the
country, he said.
The bank will also introduce a NRFC account known as Deshanthara. The
bank wants to have a nation of investors and not a nation of depositors
as the investment culture is very important. LDB will deviate from the
traditional pawning culture and appoint agents around the country on
behalf of LDB and they will be guided by a code of conduct and monitored
closely. He said their aim is not increasing the branch network.
Therefore, we will appoint agents around the country and work in
partnership with trade chambers and NGOs.
HR is the biggest asset and the core team consists of 160. LDB wants
to introduce a new breed of enterprise bankers who will understand, give
a sympathetic hearing and offer professional solutions for the
customer's needs.
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LDB premises |
LDB has implemented a core banking solution with more features to
serve the customer better. Already four branches are connected while the
other two will be connected by the end of this month.
De Silva said that LDB will be a technology driven bank. Contrary to
a large branch network the bank proposes to have a shared network
concept initially with the state banks early next year.
Most ATMs are under-utilised and the state sector must be
strengthened as there is a gradual decline of the share of this sector
maintaining a healthy competitive element in the market.
Lankaputhra
Development Bank (LDB) was set up on February 24, 2006 as a
Licensed Specialised Bank fulfilling another pledge under the
Mahinda Chintana. The bank caters to the financial needs of the
local economy in respect of small and medium scale industries,
agriculture, tourism and other service sectors.
LDB commenced operations in July 2006 and has opened branches in
Polonnaruwa, Hambanota and Kegalle. The bank has been authorised
to operate savings and fixed deposits. |
The bank will be equipped with a business continuity plan by the end
of this year which includes a disaster recovery plan as well.
SMEs are the livewire of a country and they contribute to more than
60% of the GDP and an SME exchange is a good idea and public opinion
should be developed through the chambers.
He said that during the Asian crisis some countries thrived due to
SMEs.
Most importantly the public will have confidence in SMEs rather than
corporates and they are more susceptible to volatility rather than
corporates.
He said don't increase the number of enterprises but increase the
number of entrepreneurs which will help the country prosper. |
