LMD 100 Q&A

RANK 47

Streamlining the processes for establishing and funding businesses – including a quick and efficient ‘know your customer’ (KYC) process – will attract more entrepreneurs

Q: What contribution has your organisation made to the sector, as well as the wider economy?

A: As a bank with 30 years of experience, we’ve remained competitive by being strategically focused on key markets and untapped areas.

Today, our strength lies in the retail segment, particularly in pawning, leasing and specialised loans for government pensioners and ex-service personnel. Further, we recognised the growing importance of SMEs and provided them with substantial support across the country.

Our commitment to small and medium-sized enterprises goes beyond financial assistance. We actively participate in their business growth through many activities such as programmes and workshops on market opportunity identifi­cation, financial literacy and credit profile management.

And our corporate business is also witnessing promising growth. This year, we expanded our reach by entering offshore lending markets and collaborating with major entities, marking our evolution towards a more global presence.

In these challenging times, our primary focus is on supporting businesses and fostering growth.

Naleen Edirisinghe
Director
Chief Executive Officer

Q: How ready is the corporate sector to drive growth while overcoming the challenges of the past?

A: The corporate sector is at a pivotal juncture, which is marked by growing optimism despite previous challenges. For instance, increased transparency and ethical practices are expected to reduce corruption, creating a more favourable business environment.

This shift is likely to attract foreign direct investments (FDI) and improve our country’s standing – with positive trends in tourism, remittances and exports, and a thriving stock market.

At our bank, we prioritise contributing to national growth, and support government initiatives focused on transparency and efficiency. While relatively larger banks enjoy economies of scale, we have maintained strong portfolio management and skilled staff, positioning ourselves well.

Our key challenges include securing low-cost funding, attracting talent and competing with relatively larger banks.

Although our risk ratings were affected by the country’s overall rating, we anticipate improvements as the nation emerges from sovereign debt repayment default status, thereby opening up more funding opportunities domestically and internationally.

Q: What are your organisation’s main goals and objectives for 2024/25?

A: One of our primary goals for the upcoming year is to transition Pan Asia Bank into a mid-sized bank. This is a challenging but crucial target that we aim to achieve over the next three years.

By elevating our profile, we will gain access to low-cost funding and improve our ratings, ultimately enhancing our value proposition as a bank. The aim is to grow our overall assets by Rs. 150 billion as this growth will be vital in positioning us as a mid-sized institution.

Working towards this goal, we are focusing on strengthening our corporate portfolio, recently enhancing our corporate banking team through new recruitments and uplifting staff calibre.

Considering the new regulations, we see significant opportunities to attract customers from other banks.

Q: What are some of the items on your wish list for Budget 2025? 

A: As a bank, we believe that when the masses thrive, it creates a more favourable environment for businesses. We recognise the constraints faced by the government due to conditions laid down by the IMF. But we also believe the focus should be on supporting the broader population – especially those at the poverty line.

We seek measures that enhance the ease of doing business and invest in infrastructure development whilst also committing to good governance and doing our part as a private sector organisation.

Sri Lanka should learn from successful countries by prioritising transparency and eliminating corruption to foster a better business environment.

Streamlining the processes for establishing and funding businesses – including a quick and efficient ‘know your customer’ (KYC) process – will attract more entrepreneurs.

Q: What strategies have you implemented to retain talent in light of the brain drain? 

A: The brain drain has primarily led to migration but this trend appears to be stabilising.

At our bank, we emphasise teamwork and recognition to motivate staff with a focus on performance-based rewards and enhanced benefits including better medical packages and training opportunities.

Looking ahead, we aim to become a digitally enabled bank with vibrant brand and innovative solutions such as rapid on boarding of new customers through innovative technology driven on boarding processes, aiming to increase our customer base by 25 percent next year, which will position us for significant growth. 

REVENUE (RS. M)
39,413

REVENUE CHANGE
53%

PROFIT AFTER TAX (RS. M)
1,855

PROFIT CHANGE
(7)%

TOTAL ASSETS (RS. M)
233,456

SHAREHOLDERS’ FUNDS (RS. M)
22,598

MARKET CAP (RS. M)
8,453

EARNINGS PER SHARE (RS.)
4.19

PRICE EARNINGS RATIO
4.56

EMPLOYEES
1,469

Telephone: 4667222 | Email: customerservice@pabcbank.com | Website: www.pabcbank.com