Joint savings product on World Thrift Day:

NSB, the best bank by 2012

by Surekha GALAGODA

The National Savings Bank (NSB) a strong, stabilised and consolidated State bank linked to the postal system, as mandated by an Act of Parliament in 1972 is planning to synergise its efforts to expand while maintaining individuality, said NSB Chairman, Pradeep Kariyawasam.

Pradeep Kariyawasam

Kariyawasam said that the bank will come into a direct arrangement with post offices and sub post offices to promote the savings habit among Sri Lankans and plans are under way to introduce a joint savings product on World Thrift Day, October 31.

He said that the product will be superior to the Ridee Rekha Savings Certificate in that it will be interest bearing.

NSB was established in 1972 to foster the savings habit among Sri Lankans but still the savings distribution on an islandwide basis ranges between 17-18 percent, when it should be around 24-25 percent. Increase in savings will help investment as well as growth of the economy. Kariyawasam was confident that by introducing the new product the bank will contribute significantly to increase the savings habit among Sri Lankans by 2015. He said that by increasing the savings ratio the per capita income too can be increased from the current $ 2,000 to $ 4,000 level, as per the expectations of all concerned.

NSB commenced its migrant worker remittance business in 2005. There is great potential in this area, but the bank only attracts a .7 - .8 percent of the total worker remittances.

Therefore, steps are being taken to increase the migrant worker remittances to about 7.5 percent within the next two years. Since the services of the bank can be marketed with the government’s guarantee and protection, as provided by the Act, NSB has an edge over the other banks. He said that already officials of the bank together with himself visited Kuwait and Lebanon to create an awareness among workers and the institutions handling worker remittances.

The bank has signed agreements with reputed Exchange Houses in Lebanon, while plans are under way to sign similar agreements in Jordan and Cyprus and in Kuwait as well. The same team is also planning to visit Saudi Arabia next month after the Ramazan Festival. NSB also had the opportunity in signing an important agreement with the internationally acclaimed financial network ‘MoneyGram’. In keeping with Kariyawasam’s vision as the leader of NSB, also espoused by the President Mahinda Rajapaksa of making, NSB the most admired, best managed and most profitable financial institution in Sri Lanka by 2012, the bank has introduced a corporate advertising campaign which took off ground on August 22. A giant till measuring approximately 11 feet, will be unveiled by the President on September 7. From September 8, until December 31, this till is scheduled to tour all 24 districts. During this period special savings programs are planned at city branches districtwise where the till will be kept for 2-3 days.

The advertising campaign will remind all Sri Lankans what NSB stands for, while encouraging all citizens to rethink their savings habit and also build the image of the bank. Kariyawasam said that steps are being taken to improve the quality of the staff. The bank will not engage in a recruitment drive as the bank is overstaffed with 2,900 in its permanent cadre and 700 outsourced staff.

The bank has been continuously engaged in CSR projects, the most important being towards schoolchildren, especially the Grade Five scholarship holders.

The main program scheduled for September 7, under the patronage of the President, is the award ceremony for best performing Grade V Scholarship Holders.

This is an yearly award, the bank has sponsored, for many years.