Rural deposit mobilisation, key to industry growth

By Lalin Fernandopulle

The National Savings Bank (NSB) will mobilise savings in rural areas considering its previous performance and industry growth, NSB General Manager and CEO Hennayake Bandara said. He said that with a deposit base of Rs. 442 b the NSB will focus on rural deposit mobilisation and improving foreign remittance business.

The Central Bank aims to increase the domestic savings ratio from the current 18 percent to 25 percent within the next two to three years. NSB being the largest savings bank in the country has drawn up a plan to achieve this objective by expanding the branch network and educating people on the importance of saving.

The NSB which operates 219 branches across the country will add another 11 in the semi-urban areas in the next couple of months. The NSB the premier state-owned savings bank was incorporated by the National Savings Bank Act No. 30 of 1971.

“We hope to improve its delivery channel management by restructuring the current zonal management system. The bank's foreign remittance business has been growing growing steadily over the years,” Bandara said.

The NSB has established relations with 40 exchange houses and 10 correspondent banks in addition to setting up five postal banking institutions in Germany, South Korea, Italy, Israel and France to remit funds through the Eurogiro platform.

The bank accepts foreign currency notes, drafts and foreign cheques.

“We plan to establish relations with more exchange houses to strengthen the remittance business and educate migrant workers to remit earnings through legal channels,” a bank official said.

The NSB operates a foreign remittances sections in the Middle East, Europe and Asia. It has established relations with global exchange houses such as MoneyGram, Ez Remit and Unistream.