HNB - Bank of the Year 2006

HNB, Sri Lanka's premier private commercial bank, was awarded the Bank of the Year 2006 by the prestigious publication, 'The Banker'.

Rajendra Theagarajah MD/CEO Hatton National Bank received the prestigious "Bracken" award naming Hatton National Bank as the Bank of the year 2006 for Sri Lanka at a ceremony at the Dorchester Hotel in London.

Soon after receiving the award Theagarajah said that this award is firstly a tribute to our efforts in the past, its endeavours at present and the visionary planning done for the future. Expanding on this, he added that in 2004, a shortfall in the capital adequacy ratio left HNB with a tough choice: curtail growth, shed assets or infuse fresh capital.

The Bank chose the last alternative. Rs. 1.1 billion was raised through a Rights Issue.

A further Rs. 970 million was poised to be included through a Global Depositary Receipt (GDR) when fate played its hand two days before closure of the offer - the devastating tsunami hit and almost vetoed all the Bank's plans. But a 118-year old tradition of resilience and the team spirit does not go under at the first obstacle. In four months new investors were found and the GDR successfully closed in June 2005.

This capital input was a major catalyst in business being conducted with renewed vigour, optimism and purpose.

A major ongoing restructuring program focuses on cost control, divesting of non-strategic investments, improving collection ratios, managing margins realised from advances and relationships, improve portfolio quality and the strengthening of the risk management process.