Bank of Ceylon is focusing more on equity management and will set up a specialized unit to handle investment banking.
This would be a paradigm shift in our banking system, Bank of Ceylon Chairman Dr. Gamini Wickramasinghe said.
Bank of Ceylon (BOC) launched a medium-term corporate plan taking into consideration the dramatic shift in the economic potential of post-war Sri Lanka.
The new plan looks towards a future vision for the Bank outlining the direction, focus and vision to take off with the country in its development process, he said.
The corporate plan considers several fortes of BOC including the 100 percent state ownership, premium brand equality, loyal and committed staff, hefty asset base and the extensive reach.
The plan, One 10 Twelve Renaissance explores new opportunities such as investment banking, mutual funds, private banking, wealth management, mergers and acquisitions and Islamic banking as avenues for growth , he said.
The goals of the plan are to achieve a one trillion balance sheet and Rs 10 billion in profits by 2012.
This transformation strategy keeps in line with its strategies which impacts various economic sectors.
We are already making adjustments to our innovation focus, service differentiation, diversification, cross- selling ability, governance and risk control. Emphasis on technology and human capital are being implemented successfully. All this will propel the significant conversion in management mode and growth and profit realization pattern to fit One 10 Twelve Renaissance, the Chairman said.
Achieving the envisaged growth and expansion through financial intermediation business will mean that we will have to extend concentrated efforts in commercial and development banking services.
As we are already surrounded by a deeply customer- centric banking sector we seek to actively embrace a new selling culture, he said.
The Bank of Ceylon UK branch will be converted to a subsidiary by end March and more foreign branches will be opened through this bank. This will made the BoC an international bank. BoC would invest in companies and banks with a view to diversify bank portfolio, he said.
The North and the East will be major component of the bank s growth. It will assist the industries such as dairy farming, fisheries and agriculture to revive the economy in these provinces.
The BoC has provided Rs 5 billion loan facility to these sectors as the fore-runner in the development drive.
The bank also helps in import substitution industries creating economic movement, he said.
Sri Lanka is looking at promoting tuna exports and building a brand as Sri Lankan tea. The BoC has providing loans to purchase long line fishing boats which cost Rs 30 to 40 million.
There is a good export market in countries such as Japan and the country needs to capture this opportunity, he said.
The credit card unit of the BoC will be re-launched and will be housed in a separate location in the WTC. The bank would have the option of cross-selling as it has seven million account holders. We could generate business within these customers, he said.