Page 36 - Full_Handy
P. 36
THE INSTITUTE OF CHARTERED PROFESSIONAL MANAGERS OF SRI LANKA
JANUARY 2021
remittances are feeling the strain of economic Working Capital Loan under Saubagya scheme.
slowdown globally. The Bank has now disbursed approx. 22 Bn
During the pandemic and its aftermath, the facilities to support COVID affected business
Banks were at the forefront of economic entities. The Bank also took steps to reduce
recovery, assisting affected borrowers with lending rates several times since the outbreak
moratoriums, concessions and fee waivers, of the pandemic and has reduced as much as
offering additional support through self 4% from some loan products within 2020.
funded loan programmers and tailor made
digital services. Banks took significant strain What are the plans the Bank has in place
on its profit margins and saw its overall cost to assist customers now that moratorium
structures increasing mainly due to increase periods are coming to an end gradually?
in credit risk and also faces the challenge of We have anticipated this well in advance and
holding hands of its customers to revive their taken action to focus on the financial health of
business operations whilst adjusting to the customers after their moratorium periods are
new normal. However, despite all challenges over as well. For this purpose, we introduced
it is evident that the sector is leading the post special Payment Relief Schemes that include
pandemic economic revival efforts. upto 20% “Rebates” on early settlements of
accrued interest during moratorium periods,
How did Commercial Bank respond to this “No capital pay” for certain periods, additional
crisis? moratorium periods, Equated Monthly
Commercial Bank responded swiftly to this Installment schemes for Credit Cards and “Debt
situation by launching a strategically executed Consolidation Plans” for SME borrowers with
action plan covering all crucial avenues. multiple borrowings. These were formulated
During the lockdown period the branch and after considering individual and SME customer
department network functioned to provide exact needs and offering a selection of
maximum possible level of service to our options that would include a major portion
customers. Our team ensured that the of our customers. The needs and situations
applications for moratoriums and working of customers vary depending on the status
capital loans were processed swiftly so that of their facility, the financial position of their
approvals could be obtained from the Central business and other social and demographic
Bank faster and our borrowers received the factors. So ‘a one size fits all” approach will
funds early. We ensured that customers had not be suitable in every instance. This is why
access to their money in curfew imposed areas the Bank has taken care to formulate flexible
by deploying mobile vehicles. Commercial schemes where if the scheme does not
Bank was the first Bank to launch its own loan include their requirement, they still have the
facility with an attractive interest rate with the opportunity to discuss the available option with
assistance of IFC Emergency Fund of USD 50 the Bank to seek a feasible solution.
Mn , especially for export oriented SME’s and
women connected SME’s, who were affected What is your assessment on how the
by the pandemic, followed by another loan Banking industry will fare over the
scheme for Micro Businesses funded by the short term and what challenges can be
Bank. In addition to providing moratorium for anticipated?
approx. 53,000 borrowers, Bank forwarded Whilst many sectors are slowly and steadily
over 4000 applications to Central Bank for returning to normal, the global environment
34
