Strategic Plan for Seylan Bank
BSc in Business Management (Special)-UGC Degree
Productivity & Management Development Division
D.G.L.R DE SILVA BSC-UGC-MGT-1315-319
J.H.M.G.C JAYAPATHMA BSC-UGC-MGT-1315-221
R.G.A.C ARIYARATHNA BSC-UGC-MGT-1315-182
M.M.S.P BANDARA BSC-UGC-MGT-1315-189
W.D.M FERNANDO BSC-UGC-MGT-1315-077
M.M.N.L BANDARA BSC-UGC-MGT-1315-188
U.M.D.C FERNANDO BSC-UGC-MGT-1315-206
We are extremely happy to produce this report regarding the strategic plan of Seylan
Bank. In our endeavor we have mainly taken the PESTEL and SWOT Analysis types of
environment analysis, the strategic group mapping, and compared with similar other
banks in Sri Lanka and we have developed a Strategic plan for Seylan Bank for the next
five years. And through that we have compiled this report.
The main idea of doing this project is to orchestrate a Strategic Plan for Seylan Bank
from the year 2013 to 2018. The strategic report includes ratio analysis and various
other research and market share nucleuses and there growth prospective in the coming
years after their almost Bankrupt situation few years ago. We have collected data from
their Annual Reports and online and utilized that Data to transform into meaningful
information, and then implemented various conceptual and theoretical methodologies.
In doing so we able to identify various factors and culminate that into the report.
When going through this report you could see the different ways & methodologies, such
as PESTEL analysis, SWOT analysis, Strategic Group Mapping, while identifying the
geographical localities, quality and to what extent it has been successful in this project.
And also the constraints of the project are stated as well.
We would like to gratefully acknowledge the contributions of Mr. Kolitha
Ranawaka our Strategic Management Module Lecturer for his guidance &
helpfulness in preparation of this report as a fulfillment for our Strategic
Management Module Assignment.
With the consistent support of our team members Mr. Gihan Jayapathma &
Mr. M.H.Mohammed gathering of the Data, providing the Data regarding Seylan
Bank, Research and formulating was of utmost importance as it helped to
formulate the major parts of the Strategic Plan.
Priyanwada, Shani, Nishan, Asith and Chinthaka contributed in numerous ways
that they could with their technical expertise and last but not the least the
Anchorman Mr. Lalindra De Silva.
I would like to gratefully acknowledge the outstanding contributions of Lalindra
De Silva & Gihan Jayapathma. Were it not for their outstanding support &
creative contributions to this project, it would not be the success that it is.
This report emphasis on how Seylan Bank, who nearly when into solvency and
Bankruptuncy and within the span of three years how it stood up consolidated its
position in the competitive Sri Lankan Banking arena, and is now in the process of
growth through Strategic Plans that helped the Bank when they had their backs to the
wall and by collecting data, analyzing and implementing appropriate suggestions’ and
We foresee tremendous opportunity for growth as our nation overcomes the challenges
posed by the 30-year long war and embraces the opportunities that peace and stability
has paved the way for. While the external environment would remain challenging due to
global economic conditions, every player would have to adapt and evolve to stay
competitive and profitable. The banking sector which has remained strong and resilient
in adversity will have a key role to play as Sri Lanka completes its remarkable journey of
recovery and reconciliation and marches towards the milestone of US$ 4,000 per capita
The task before us is now to advance from our phase of consolidation to a phase of
growth. We shall do so by leveraging our strengths further while enhancing areas such as
customer service and staff training and development. Corporate banking, Trade finance
an Treasury units will play a more vibrant role and we will develop an even more
focused approach towards SME, retail and premier banking functions. The Bank plans to
grow the branch network at the same pace as in 2012.
Strategic locations have been identified to open up branches on a selective basis.
Infrastructure development and upgrading of facilities will continue at a pace with
existing branches made bigger, better and more customer friendly. Alternate channels
such as Internet and SMS banking will also be further improved. We have been a very
popular bank among our expatriate community who regularly remit their hard earned
money to their kith and kin through us reaping the rewards of many direct and indirect
benefits we offer. We aim to further strengthen our offerings in the remittance market
while expanding the number of employees and agents representing us in the relevant
markets. We have formulated a comprehensive new product development strategy and a
number of products have been identified for upgrading in addition to new products to
be launched with numerous value additions to our current and potential customers.
We have also set our sights on reducing the NPL ratio to a single digit by end 2013
through rehabilitating troubled loans and through effective recovery strategies.
Capital is increasingly becoming a scarce commodity and even a limiting factor for the
growth of banks. We will use our product portfolio and staff skills to grow our non-
interest revenue streams. Our IT platform will be strengthened to support the overall
growth and development strategies of the Bank.
Cost containment and cost management will continue to be a priority area. The
debenture issue which was planned for last year was concluded in early 2013, which has
boosted our capital base further. Going forward, a culture of passing capital to more
productive business units will be implemented to ensure its optimal use.
Group of Members……………………………………………………………………..1
Seylan Bank Introduction……………………………………………………………7
Swot Analysis Of Seylan Bank………………………………………………..……12
Porter’s Five Forces Model…………………………………………………….…….19
Strategic Group Mapping……………………………………………………......…….22
Seylan Bank Introduction
This report details the performance review, the divisional performance and the
strategic adopted by the bank to achieve the pre-set goals according to the strategic
plan and the budgets. It also enables to gain a better understanding of the bank while
maintaining the transparency of the information to all their stakeholders. This report is
written, based on the various strategies adopted between 2009-2012 and the success of
these plans. Their theme of last year’s annual report IT WORKS is based on the
strategies adopted from 2009-2012 for readers to understand the significant progress
made by the bank over the said period. We have identified strategic priorities as per the
following scope and detailed in the relevant sections where necessary.
Success strategies and business growth
Expansion of our delivery channels for faster reach
Improved credit quality
Success Strategies and Business Growth
After the change of management in 2009 the bank implemented its 2009-2011 strategic
plan to build customer confidence and address various issues that were prevailing at
that time. Strategic plan 2013-2018 was built on growth, improving of the business
performance, service quality and obtain process efficiency. Such initiatives and
strategies have already shown growth in business and banks profitability as evident in
our 2012 performance. Main strategies adopted, its implementation and the result are
discussed in detail under this report.
To be Sri Lanka’s leading financial services provider as recognized by all our
We provide our customers with financial services that meet their needs in terms of
value, pricing, delivery and services.
We will do so through a team of Seylan bankers who are recognized and rewarded for
We will ensure that our efforts translate to meeting the expectations
of our shareholders, whilst always acting as responsible corporate citizens.
Seylan Bank PLC was founded in 1987 and opened its doors for business on 24th
March 1988,in Colombo Fort,the traditional banking district of Sri Lanka's largest
city. Originally named Seylan Trust Bank Limited,it was designated a Licensed
Commercial Bank and incorporated as a public company with a broad base of
shareholders. From its founding, the new institution was part of the Ceylinco Group
of Companies,a major Sri Lankan conglomerate operating in a wide range of
industries. The goal of the Bank's Founder Chairman, Dr. Lalith Kotelawala, was to
offer retail customers a more welcoming, service-oriented alternative in a banking
culture that was generally perceived to be formal and regimented, even a bit
austere.From the outset, Seylan Bank presented itself as a flexible, customer-
friendly choice, summing-up its promise in a service motto that soon caught the
attention of prospective customers:
'The Bank with a Heart'.
In December 2008, Seylan Bank was confronted by a sudden, unexpected crisis of
public confidence resulted by the crisis evolved around the "Golden Key Credit Card
Company" which is a subsidiary of the Ceylinco Group of companies. With the timely
intervention of the Central Bank of Sri Lanka under the provisions of Section 31 of
the Monetary Law Act, a new board of directors was appointed to manage the bank.
The new board under the Chairmanship of MR. Eastman Narangoda, a veteran of the
banking industry who had previously held the position of General Manager/CEO of
National Savings Bank - a state-owned institution, took the challenge of re
stabilizing the bank and regaining the customer confidence. The effort of the
management and the staff paid dividends in a matter of months and Seylan Bank
PLC rose like a Phoenix from the ashes and reached a mile stone in 2010 by
recording a Profit after tax of LKR 1.2 Billion surpassing the 1 Billion thresholds for
the first time in it's history.
And now this report unfolds the strategic plans that were adopted and to be taken
International Trade :Seylan Bank Trade Services
Corporate Banking :In our short period of existence
Offshore Banking :Eligibility criteria for opening accounts
Development Banking :A novel idea of introducing a credit card
Pawning services :Seylan Bank now offers you the highest value
within the next five years.
The operational outlook which brought back the Seylan Bank to its current status.
Seylan Bank foresee tremendous opportunity for growth as our nation overcomes the
challenges posed by the 30-year long war and embrace the opportunities that peace and
stability has paved the way for. While the external environment would remain
challenging due to global economic conditions, every player would have to adapt. The
strategic plan which got off the ground in January and Seylan Bank’s adherence to the
key actions identified proved an invaluable asset not only for the success that Seylan
Bank achieved during the year but also in terms of preparing Seylan Bank for further
growth and improvement in the years to come. While the main focus was to improve the
core – business, the objectives multi-fold , including improving overall customer
satisfaction, adding more value to our stakeholders through reinventing the product
portfolio, enhancing internal processes to improve efficiency, strengthening risk
Management processes and further developing the human resources across the board.
The bottom-up process that was followed in the formulation of the strategic plan where
Seylan Bank got the input and support of the staff across the network meant greater
understanding and a singular focus on key initiatives. Seylan Bank have and shall
continue to update the plan through the rest of the period bringing in the learning’s of
what works and what does not and ensure that this will remain a live and meaningful
document that will continue to charter the Bank’s way forward.
The Seylan bank was formed in the year 1987 to cater to the Banking Industry. The
company's main focus is to be Sri Lanka's leading financial services provider - as
recognized by all their stake holders. The top management consists of eight members
who have a vast knowledge & experience in the Banking Industry. The Board of
Directors are as follows.
CEO – Mr. D.G.L.R DE SILVA
BSc Business Management (Harvard),
MSc Marketing Management (Cambridge)
PHD Economics (Oxford), CFA
Managing Director – Mr. J.H.M.G.C JAYAPATHMA
BSc Business Management (NIBM),
MBA Project Management (Moratuwa)
MSc Actuarial Science (Cambridge), ACCA, CIMA, AAT
Finance Director - Mr. M.H.MOHAMMED
BSc Finance Management (PLYMOUTH),
MBA Finance & Accounting (Colombo), ACCA,CIMA
Executive Director – Mr. M.M.N.L.BANDARA
BSc. Accounting (Sp) (First Class Honors) (Colombo),
MSc. Business Finance (Harvard) CIMA, AAT,
Executive Director - Ms. R.G.A.C. ARIYARATHNA
BSc in Business Management (Special) Kelaniya,
Non- Executive Director – Ms. W.D.M. FERNANDO
Non- Executive Director- Mr. U.M.D.C FERNANDO
BSc. in Banking & Finance
Director – Ms. M.M.S.P BANDARA
BSc. Banking & Finance (Special) 1st Class Hon.
MSc. Banking & International Finance.
SWOT Analysis of Seylan Bank
The SWOT analysis is a tool which can be used to highlight the strengths, weaknesses
and opportunities, threats of Seylan Bank. Analyzing the strengths of our product will
help us to find out any business opportunities that will enable our company to have a
stronger market position. Also being aware of any weaknesses that exist in our product
will help us to minimize any threats that may reduce the demand for the product.
Therefore SWOT analysis proves to be a useful tool that helps to carve business
strategies in order to keep a sustainable share in the market. While the strengths and
weaknesses are affected by factors internal to the company, the opportunities and
threats are related to the external environment.
Successful marketing strategies emerge from a comprehensive situation audit. The
marketing strategies are evaluated from both external factors opportunities & threats
and internal factors strength & weakness. On the other hand, the information on
competitive activities and customers collected through market intelligence which helps
to maximize the fit between the organization’s capabilities & future opportunities. Firms
which successfully evaluate market intelligence will enjoy financial performance.
SWOT has been used to evaluate the firm’s strategic situation in the competitive
marketplace. The SWOT analysis on firm’s marketing situation is determined through
internal & external strategic analysis which covers the firm’s traits (strengths &
weakness) and competitive factors (opportunities & threats). Therefore a SWOT
analysis is essential for effective strategic marketing. The environmental factor
opportunities & threats are uncontrollable whereas the internal factors strength &
weakness are seen as controllable for the organization.
The comprehensive SWOT profile of Seylan Bank provides an in-depth strategic analysis
of the bank’s business and operations. The analysis will give the clear idea about
company’s key strength & weakness and the potential opportunities & threats. This
helps to formulate the strategies and to better understand the competitors, partners &
The above diagram shows the SWOT analysis of Seylan Bank. It shows the strengths,
weaknesses, opportunities and threats.
Seylan Bank’s core strength is
its people who united and
managed to overcome from
-Bank’s undue expansion in
-Independent identity with a
completely new board helps to
boost the confidence of
management as well as
-Threat of recession contains
global banking failures
Seylan Bank SWOT ANALYSIS: Strengths - Weaknesses & Opportunities –
STRENGTHS (Internal) WEAKNESSES (Internal)
1) Seylan Bank’s core strength is its people
who are united to manage any overcome
01) Seylan Bank’s large innovative services
provided to the customers
02) Offered high interest rates & additional
bonus on minimum deposit amount.
03) Expand its reach to rural areas
04) Highly diversified customers’ portfolio
05) Diversification in their operation in
banking including insurance investment
banking assets management and increase
the facility for mobile & internet banking.
06) Present unstable market condition
increases their profit margin than
07) Have succession plan through talent
08) Increases the earning per share than
09) Increases shareholders fund and earning.
10) Bank have a wider product line.
11) Network of branches spread all over the
country and provide easy access to entire
spectrum of customer.
12) Improve the access to financial service for
13) Enhance higher ATM coverage in the
country and newly open the ATM in rural
14) Done the CSR activities than other
02) Bank’s undue expansion in
03) Bank is not aligned with the
current customer needs &
04) Sizeable amount of Non
05) Poor asset management&
06) High operation cost
07) Inadequate deposit
08) High level of nonperforming
09) Financial exclusion
10) Weaker brand image in the
market (problem of 2009)
11) Complex and nonproductive
12) Credit to non-productive
13) Inadequate access to global
14) Structural weakness such as
a fragment industry
structure, restriction on
capital availability and
development lack of
OPPORTUNITIES (External) THREATS (External)
01) Independent identity with a completely
new board helps to boost the confidence
of management as well as employees
02) Deliver higher financial value to its
customers & investors
03) Highly market focused
04) Strategic initiatives such as domestic &
international business opportunities
05) Empower disadvantaged group
06) Increase the profitability by accessing
international financial market ( bank
have only one blancher in Bangladesh for
07) Expand the their business in product wise
using related or unrelated diversification
achieve the competitive
advantage.(minimize the risk)
08) Stronger productivity growth
09) Opportunities to access foreign market
01) Threat of recession contains
global banking failures
02) The intervention of
monetary board is the
broader threat to economic
03) Liquidity risk
04) Competitors bank in the
05) Higher rules and regulation
are introduce by the
government ( establish new
act & low)
06) External party have negative
attitude about the bank(
bank corruption in seylan )
07) Weak brand name
Inventor in SMS banking service in Sri Lanka.
Seylan Bank PLC was the first bank in Sri Lanka who introduced SMS banking to its
customers in year 2004. This system is connected to almost all Telecommunication’s
operating in the country. Being the first member of experiencing the SMS banking
service island wide; strengthening the capabilities to face future challenges & enhance
the existing services. It facilitates the customization to manage customer’s accounts by
the SMS push and pull technology. With this feature customers have the capability of
transferring money between their own accounts, requesting the Bank for many ad hoc
functions such as cheque books, pay utility bills, check credit card details and many
more day-to-day banking functions. SMS alert facility was introduced in year 2011 as a
new marketing drive, promoting the SMS facility as a fake detection method for
cardholders’ transactions. Further; the Bank is currently improving this technology with
a view to facilitate more enhanced security features to provide a more advanced
banking functions based on market dynamics and collated consumer inputs.
Inventor in Phone banking service in Sri Lanka
Seylan Bank PLC is the inventor of multilingual phone banking product in Sri Lanka was
launched by the Bank in 1998 to its customers under the flagship “Seylaphone”. It has
become a famous way for customers to carry out basic banking using any fixed-line or a
mobile telephone. The bank is delivering the services to customers free of charge for life
time. Account holders of the Bank could register and use this facility in their preferred
language Sinhala, Tamil or English. This facility has also been extended to all expatriates
living abroad to maintain and monitor their accounts from anywhere in the world.
Lower Staff strength
Seylan bank PLC consists with total staff of 3,061 Island-wide which is the lowest among
rivals in the industry. Lack of human resource may lead to poor performance of the
bank & customer turnover will be increase.
Poor Branch network
Seylan bank PLC has 147 branches Island wide which is also lower than the key rivals.
Other than that; some of key rivals consist with overseas banking services while
establishing branches in abroad.
Poor ATM network
Automatic Teller Machine (ATM) is a computerized telecommunications device that
enables the clients of a financial institution to perform financial transactions without
the need for a cashier, human clerk or bank teller. It improves customer convenience in
banking services. In this case Seylan bank PLC having the lack of essential resource to
gain more customers than rivals.
Poor Return On Assets (ROA %)
Return on assets gives an indication of the capital strength of the company. When
consider the ROA of Seylan bank PLC (1.17%) ; which is comparatively low than key
rivals. This will impact on profitability as the earning on assets is low.
Poor Return On Equity (ROE %)
Return on equity (ROE) measures a company’s efficiency at generating profits from
every unit of shareholders' equity. ROEs between 15% and 20% are generally
considered good. In this case Seylan Bank PLC having 11.24% ROE which is lower than
the key rivals as well as the standard.
Poor product portfolio
Even Seylan bank PLC providing corporate, personal, treasury & international banking
services; their product portfolio is poor among those services than rivals. Some of the
key rivals focusing on providing banking facilities to small & medium enterprises (SME)
targeting different market niches while Seylan bank having narrow common markets.
Seylan Bank PLC is having a small number of staff compared to other financial
rival institutes. It’s an ease for the management to control and monitor the staff.
And also it’s easy to provide training, research and development to get the best
potential outcome of them through increasing the efficiency and productivity.
Seylan Bank PLC has an up to date technological knowhow which efficient the
operations within the bank. Since they are having a reduced supervision costs
compared to other financial rival institutes, they can focus on new banking
opportunities by allocating those saved funds.
Knowledgeable and trainable staff compared to Government Banks.
Commercial bank has placed business promotions officers overseas in Jordan
Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates with the
objective of promoting the banks e-exchange facility among the Sri Lankan
expatriates and to canvass new accounts while promoting various other types of
Banks open from 9 am to 1.30pm on bank holidays.
Commercial Bank providing services in banking centers at Arpico Super Centers:
Providing holiday banking centers, Minicom – Banking centers at Cargills Food
City super Markets and several service points.
Rival Banks have gained a larger provision of market capitalization.
Key rivals capturing the global attention.
Unavailability of skilled and know ledged expertise.
Porter’s Five Forces Model
Michael E. Porter who introduced Porter’s Five Force Model in 1979 Harvard Business
School. The Porter’s Five Forces Model show how the competitive landscape in an
industry is impacted by five forces. Industry analysis and business strategy
development is the main framework of it. These forces are firms in other industries
offering substitute, Competitive Rivalry within an organization, bargaining power of
suppliers, bargaining power of Buyers, and thereat of new entrants. Industry is
favorable entry when five forces are higher. Banking industries are the most
The Seylan Bank to get an understanding about the profitability and industry’s
competition. Not only that but also Porter’s five factor model helps to enhance some
activities done by Seylan bank.
They are managing the capital, assets and liabilities, Interest rate risk, liquidity, asset
quality, profitability. With the help of this model Seylan bank can make strategies such
as focus on individual customers and smaller businesses, providing banking services
such as personal loans and deposits, checking accounts, clearing, debit and credit cards,
leases, mortgages and ATM networks to win the market and its survival.
Competitive Rivalry within an Industry
In the traditional economic model rival firms get zero profit. However firms are not
reasonable price. Banks strive for a competitive advantage over their rivals. Most
industries, the intensity of competitive rivalry are the major competitiveness of the
industry. There are 6 factors favor price competitive ;Market structure, No product
differentiation , The nature of the sales process, large, secretive & lumpy, capacity
utilization, consumers. According to the banking industry analysis, there are 5
competitors in the market for Seylan Bank. These are HNB,BOC Peoples’Bank, Sampath
Bank, Commercial Bank. The banking industries are highly competitive because
everyone who need banking services for their financial activities. Every banking sector
is in a race to see who can offer both the best & fastest services. According to our
analysis among the rivals, commercial Bank takes higher place in the industry. Because
of the taking highly risk projects.
Threat of Substitutes Products
There are plenty of substitutes in the banking industry. Seylan bank offer higher rates,
taking deposits and lending money & non-banking financial services. Other companies
offer similar services insurance, mutual funds, or fix income securities. According to
deposit money of the Seylan bank have more competition with commercial bank and
Threat of New Entrance
Many Companies enter the market as new comers. It is very higher to new entrance. The
banking industry has undergone a consolidation in which major banks seek to serve all
of a customer’s financial needs under their roof. This consolidation furthers the role of
trust as a barrier to entry for new banks looking to compete with major banks, as
consumer are more likely to allow one bank to hold all their accounts and service their
Ultimately the barriers to entry are relatively low for the banking industry. While it is
nearly impossible for new banks to enter the industry offering the trust and full range of
services as a major bank, it is fairly easy to open up a smaller bank operating on the
Banking Industries focus on Services Oriented. One person who cannot come along and
to start a new bank. Seylan bank use online services, use pay bill from internet.
Economies of scale and scope, limited access to essential resources or
Channels of distribution, patents, need to establish brand identity, high capital costs,
Bargaining Power of Suppliers
According to the banking sectors Seylan Bank have no big threat from suppliers. During
right liquidity periods suppliers of capital will act continually. Capital is the primary
resource on any bank and there are four major suppliers (various other suppliers [like
fees] contribute to a lesser degree) of capital in the industry.
1. Customer deposits, 2. Loans, 3. baked securities. 4. Loans from other financial
institutions. By utilizing these four major suppliers, the bank can be sure that they have
the necessary resources required to service their customers' borrowing needs while
maintaining enough capital to meet withdrawal expectations.
The power of the suppliers is largely based on the market, their power is often
considered to fluctuate between medium to high.
Bargaining Power of Customers.
One major factor affecting the power of buyers is relatively high switching costs. If a
person takes loan, credit card, deposit A/C and mutual funds in a bank it can be
extremely tough that person to switch to another bank. To try and convince customers
to switch to their bank they will often times lower the price of switching, though most
people still prefer to stick with their current bank. The internet has greatly increased
the power of the consumer in the banking industry. The internet has greatly increased
the ease and reduced the cost for consumers to compare the prices of opening/holding
accounts as well as the rates offered at various banks.
Comparative Market Positions of Selected Banking Industries:
Low Medium High
Low Medium High
Comparative Market Positions of Selected Banking Industries:
Low Medium High
Low Medium High
Low Medium High
Low Medium High
The Macro Environment
A PESTEL Analysis is undertaken to understand the dynamics of the external
environment, which the film industry operates in. While these factors are out of the
industry’s control, the industry needs to be aware of them to adapt itself to avoid the
threats and exploit the opportunities in the environment.
Impact on The Film Industry
1. The political
and Sri Lanka is united
under one Government
after a span of 25 years.
2. Government has
lessened the degree of
Intervention in the
3. It’s the Government’s
maintain a good global
reputation for foreign
developments in the
1. A stabilized political system is good news
for the Financial & Banking Industry.
Explore opportunities presented by the
upsurge in the demand for trade finance for
investment in post-conflict development in
the North and the East.
2. In the Banking Industry they are more
confident of planning long term strategies.
The opening up of North and East has given
the Seylan Bank the attractive opportunity
of conquering that virgin market and of
stabilizing their industry position
throughout the island.
3.The loosened restrictions on the economy
allow the Seylan Bank to take more
decisions that are independent.
- Foreign exchange coming in to the country.
tough rules and
regulations and charge.
-4.To create innovative features as well as
facilitating of physical resources.
-as a result, cost cutting measures have to
- Continue with Bank’s commitment to
innovation and product development which
will improve service level and enhance
1. A lot of development
projects are going on
across the country.
2. Lower interest rates
have lured international
players to the market.
3. Recovery from the
4.Crisis period has not
yet settled down.
-1.The development projects taking place
throughout most rural areas have been
creating a steady flow of money in the
usually laid back markets. There is plenty
of opportunity for the bank industry to
strengthen their profits by concentrating
on marketing campaigns in these areas.
2. Maximize foreign exchange gains from
increased trade volumes.
3. Capitalize on market arbitrageurs in
forex and equity trading.
4.Through reinventing the product
portfolio, enhancing internal processes to
improve efficiency, strengthening risk
management processes and further
developing the HR.
tough rules and
6. One of the best stock
markets in the world.
5. Increase capital gains from government
securities trading with the downtrend in
rupee interest rates.
- Continue with Bank’s commitment to
innovation and product development
which will improve service level and
enhance market share.
6.The lucrative economy (bull market)
prevailing in Sri Lanka has been luring
investors. This poses threats as well as
opportunities to the bank industry as more
financially stronger companies enter and
compete for a share of the bank industry.
1. Increasing ageing
2. Lifestyles are modern
and fast paced.
3. Increase number of
4. Increased Tamil
5. Many Sri Lankans are
migrating back to Sri
6. Tourism has taken a
sharp rise in the
7.Women are employed
more than ever.
8.The young generation
gives priority to work,
and marriage is
1. Bank Industry has the opportunity to
venture into new Segments and fill up a
gap in the market for the elderly
-Introduction of retired pension schemes.
2. Marketing via social media, launching
Bank ‘s Facebook fan page and enhanced
fan base to 20,000 in two months from date
3. granting student loans for higher
- focused on existing product development
based on existing segments in order to add
more value and enhance the relationship
through co-creation initiatives.
4.A population with a new taste palette too
is on the rise, giving the bank industry a
reason to widen their production portfolio.
5. The return of Sri Lankan migrants back
to the country gives the Bank Industry a
chance to expand their customer base.
6. The tourist boom can be made handy to
market the Seylan Bank value added
7.Research shows women work more than
men do, thus the trend of working women
is positive for the industry.
8.Developed bundling of products and
services and simplified processes to benefit
the internal and external customers(young
1.Bankers have been
technology into the Sri
Industry during the last
2. Technology is being
obsolete at a mind-
solutions to deliver
superior benefits to
internal and external
1.The continuous introduction of modern
technology in the industry facilitates the
Bank’s to keep a breast with the
- Trends and operations.
2. The Bank Industry owes it for technology
for their undisputed standards of quality,
operations and services.
3.All identified possible operation
processes were transferred to centralized
services for specialized support to ensure
efficiency and cost savings.
4.the funds transfer process was
automated, enabling business units to
make better informed decisions.
-Manny HR processes that were hitherto
manual were automated, among them staff
appraisal, training etc….
5-a.Data from the bank’s separate systems,
consolidated in a single “client view”.
- 5-b.Internal development team rolled out
comprehensive remittances module,
cheque return management module and
some other modules to enhance efficiency
of the branches.
-5-c.Testing of the core-banking system,
subsystems and all the external interfaces
was completed during the latter part of
5-d. IT Steering Committee was further
improved to accommodate Sub-
committees of the various business units of
-5-e.Bank’s card management system
platform upgraded to provide the
infrastructural facilities for the Europay,
MasterCard and visa(EMV) upgrade.
5-f. The IT Department in conjunction with
Misys developed and parameterized the
module which automated the downgrading
of non-performing current accounts in
5-g. Several Management Systems
improved to facilitate user- friendly
banking, such as cheque imaging truncation
system, SMS banking, internet Banking and
5-h. improvement of branch IT
infrastructure including expansion of its
services to newly open branches and ATMs.
5-i. Structured Systems Training
Programme for staff to develop their skills
1.Concern for the
environment has been
on the rise.
impacts on the
1. The demand for saving can both
increase and decrease during times of
crises. Relief support groups tends to
finance for a cause to fund the flood
victims. And when victims are unable to go
to banks to withdraw money clearly, the
demand in the area significantly goes
2.In the office complex, work consumes
large amounts of energy and natural
resources. They generate waste and sound
3. In a “green” initiative , the printing of
salary slip was discontinued and customers
also enjoy the option of getting their
monthly statements online.
-. Compliance and legal
regulations for Bankers.
-Social discretion and
cultural values, morals,
ethics, strict laws and
-. Bank Act of Sri Lanka.
-.Regulations to help
banks carry out their
services and operations.
-.Approve and oversee
the Bank’s strategic
corporate values and
ensure that these are
throughout the bank.
-. Identify the principal
risks and ensure
appropriate systems to
manage the risks
- Legal factors have an effect on both
service and Employment operations.
Systems have to regulatory demands and
the bank industry would have to bear a
considerable cost if changing the usual way
-. The demand for quality standards gives
only a few banks a competitive advantage
as they already adhere to highest
-International recognition can be gained by
through high quality banking procedures
done in the highest possible way.
-. It helps towards the up liftmen of the
-. Protects the bankers. Legal Entity Act.
-.The Board approved the 4 – year strategic
plan 2012/2015 on 12th December 2011
and communicated the new strategic
objectives and corporate values to the staff.
The timely implementation of strategies
was monitored through frequent reviews at
-.The Board has delegated these
responsibilities to its Integrated Risk
Management Sub-committee. The
Committee ensures that the Bank’s Chief
Risk Officer/Risk Unit identifies principal
implementation of a
policy of communication
with all stakeholders,
-Review the adequacy
and the integrity of the
Bank’s internal control
-. Identify and designate
Personnel, as defined in
who are in a position to:
i. significantly influence
ii. direct activities; and
iii. exercise control over
operations and risk
-Define the areas of
authority and key
responsibilities for the
Board of Directors
themselves and for the
risks and puts in place polices and
guidelines to be reviewed and approved by
the Committee. Systems put in place were
being tested by the Risk Unit.
-. A Stakeholder Engagement Policy has
been approved, implemented and
monitored at Board level.
- Adequacy and integrity of the Bank’s
internal control systems and management
information systems were reviewed by the
Board Audit Committee. The decisions
and/or actions taken are submitted for
Board’s information and/or action (if
-.The Board has identified Key Management
Personnel who are in a position to
influence and exercise control as
mentioned herein and deemed as ‘related
parties’ in order that necessary steps could
be taken to abide by/comply with the
relevant Banking Act Directions [Ref: 3 (7)
of this report] and Sri Lanka Accounting
Standards disclosures on related party
transactions. The KMPs were reviewed and
approved by the Board during the year.
-.The key responsibilities of key
management personnel are defined in their
job responsibilities, whilst the Directors
derive their responsibilities from the
regulations and directions, mainly, the
Banking Act Directions.
- Ensure that there is
appropriate oversight of
the affairs of the Bank
by Key Management
Personnel, that is
consistent with Board
- .Periodically assess
the effectiveness of
the Board of
i. the selection,
-.Ensure that the
Bank has an
-.Meet regularly, on a
needs basis, with the
Personnel to review
- . Communication of Board approved
policies and decisions are conveyed
through Board minute - - -- - extracts and
the appropriate follow-up actions and
reports/decisions of the relevant Key
Management Personnel confirms this
- Effectiveness of the Board’s own
governance practices including i, ii and iii
specified herein is ensured. Evaluation of
the Board Performance including all
governance practices are assessed by the
Directors individually and collectively
discussed/reviewed by the Board annually
- . The appropriate succession plan for Key
Management Personnel is reviewed by the
CEO and the HR Division submits such
succession plan to the Board’s Nomination
Committee for its review and/or
concurrence annually or as deemed
-.Key Management Personnel are co-opted
and/or attend by invitation to the Board
Sub-committees. Minutes of the
Subcommittees and action plans arising out
of same are tabled at Board Meetings for
the Board’s review and/or follow up. Key
Management Personnel are also called by
the Board when demand required
explaining matters relating to their
- Considering the above PESTLE analysis, it is safe to say that the current situation
of the external environment is favorable to the Bank industry as well as Seylan
- But, all these positive factors (stabilized political situation, potential of the
economy, advances in technology and the expansion of customer base) reflects
that competitors too will be lured to do commercial operations.
- Although the bank industry is faced with opportunities to exploit, pressures from
competitors will be inevitable.
- . Understand the
and ensure that the
Bank maintains an
- . The Board is updated of the changes in
the regulatory environment and maintains
an effective relationship with
regulators. The process is managed by the
Bank’s Compliance Officer.
In conclusion we can safely say that Seylan Bank has stepped into an new era with its
current asset base and further growth could be anticipated.
And also Seylan Bank’s core strength is its people who are united to manage and
overcome any form of crisis. Seylan Bank’s long term innovative services provided to
customers have reap benefits and yielded results in favor of the bank.
Offering of high interest rates & additional bonus on minimum deposit amount.
Expanding its reach to rural areas .Highly diversified customers’ portfolio,
Diversification in their operation in banking including insurance, investment banking
assets management and increase the facility for mobile & internet banking.
Developing a strategic vision of where the company needs to head and what its future
products/ market/ customer/ technology focus. This managerial step provides long
term direction, infuses the organization with a sense of purposeful action and
communicates management’s aspirations to stakeholders.
Setting objectives to spell out for the company how much of what kind of performance
is expected and by when. Objectives need to require a significant amount of
Present unstable market condition increases their profit margin than previous year.
Having the succession plan through talent management team. Increasing the earning
per share than previous year. Increasing shareholders funds and earnings. Bank having
a wider product line. Network of branches spread all over the country and provide easy
access to entire spectrum of customers. Improving the access to financial service for
customers and clients. Enhance higher ATM coverage in the country and newly open the
ATM in rural areas. Enhancing the CSR activities than other competitors and creating a
reputation, goodwill and adding value to the Brand of Seylan Bank.
Crafting a strategy to achieve the objectives and move the company along the strategic
course the management has charted. Crafting strategy is concerned principally with
forming responses to changes in under way in the external environment, devising
competitive moves and market approaches aimed at producing sustainable competitive
advantages, building competitively valuable competencies and capabilities.
By practically crafting a strategy for Seylan Bank PLC we experienced that, a company’s
strategic vision, objectives and strategy constitute a strategic plan for coping with
industry and competitive conditions, out competing rivals and addressing the
challenges and issues that stand as obstacles to the company’s success.
In going forward with the Strategic Plan for the next five years below recommendations
could be identified and implemented in phases to enhance the capacity of the Bank.
Independent identity with a completely new board helps to boost the confidence of
management as well as employees. Delivering higher financial value to its customers &
investors. Highly market focused Strategic initiatives such as domestic & international
business opportunities, Empower disadvantaged group Increase the profitability by
accessing international financial market ( bank have only one balancer in Bangladesh
for internationally ) Expand their business in product wise using related or unrelated
diversification, achieve the competitive advantage.(minimize the risk)Stronger
productivity growth Opportunities to access foreign market .
Focusing to provide banking services to extend the product portfolio such as
introducing services to Small & Medium Enterprises (SME) to encourage the existing
entrepreneurs as well as new comer to the industry.
Establish small bank units in school to encourage minors’ savings.
Improve the existing innovative technologies that already have with the bank
such as SMS banking & Phone banking.
Expand the banking services in overseas to gain global sales in Asia.
Provide customizable credit cards to different types of account holders according
to their preferences.
1. Seylan Bank, Annual report (2012)
2. Peoples Bank, Annual report (2012)
3. Bank of Ceylon, Annual report (2012)
4. Hatton National Bank, Annual report (2012)
5. Commercial Bank, Annual report (2012)
6. Sampath Bank, Annual report (2012)
7. Thompson A. Strickland A J. Gamble,J.(2009)Crafting &Executing strategy. 16th
8. Seylan Bank official website (2012).Available from: www.eseylan.com
9. Commercial Bank official website (2012).Available from: www.combank.net
10. Sampath Bank official website (2012). Available from: www.sampath.lk
11. Peoples’ Bank official website (2012). Available from: www.peoplesbank.lk
12. Hatton national bank official website (2012). Available from: www.hnb.net
13. Bank of Ceylon official website (2012). Available from: www.boc.lk
14. Central Bank of Sri Lanka (2012).Available from: www.cbsl.gov.lk