Business
Union Bank shows resilience in a challenging environment
Union Bank recorded a resilient performance within the first six months of 2020 amidst many challenges triggered by the Covid-19 outbreak in Sri Lanka from March this year.
Commencing from April 2020, the Bank began to immediately roll out the customer financial relief programmes recommended by the Central Bank of Sri Lanka (CBSL) with special focus on affected customers in the Corporate, SME and Retail Banking segments.
Within the review period, the Bank had approved debt moratoria worth Rs. 22.2 Bn under the CBSL recommended debt relief scheme providing extensions for repayment of capital and interest on loans granted. Loan facilities for approximately Rs. 40 Bn were granted with payment extensions for two months. Further, a significant number of affected customers have been granted debt relief schemes outside the CBSL defined criteria, in–line with the Bank’s internal credit policy guidelines. Amongst the schemes that were considered for moratoria are Loans and Leases, Overdrafts, Pawning and Trade Finance facilities. Additionally, non-performing borrowers who had requested for relief schemes have also been provided customised re-schedulements, inclusive of waivers on accrued interest whilst withholding further recovery action.
Union Bank’s core banking activities compressed in the second quarter amidst the country-wide lock-down that prevailed in the month of April up until mid-May.
Amidst the challenging economic landscape, the average prime lending rate (AWPLR) dropped by approximately 250bps and the Treasury Bill rates too showed a declining trend. The Bank implemented a downward revision of interest rates on various lending schemes including credit cards in line with the directives of the Central Bank. Union Bank has also taken measures to provide loans at concessionary rates for Working Capital requirements of SMEs and exporters by participating in the CBSL credit schemes including the Saubhagya Covid-19 Renaissance Facility.
Maintaining healthy liquidity levels within the Bank, and employee and customer safety remained key management priorities while rolling out relief schemes to mitigate the negative impact of Covid-19 on the diverse customer segments of the Bank. Within the period under review from January to June 2020, the average fixed deposits remained stable whereas total average CASA ended at Rs. 21,444 Mn, an increase of 13% over last year. Efforts of maintaining a healthy CASA inflow was supported through focused acquisition strategies driven by retail, corporate and SME banking segments. The CASA ratio of the Bank was 25.8% by end of the reporting period.
Accordingly, Union Bank’s Net Interest Margin declined from 3.4% to 3.2% within the review period. Credit Card late payment fee and other fee waivers issued to customers until September 2020 in-line with the CBSL guidelines aiming to support the customers affected by the pandemic coupled with a decline in economic activity caused a reduction of the overall fee income by about 26% during this period.
The Bank’s Treasury recorded a notable performance with a significant YoY increase of 68% in capital gains. Other Operating Income of the Bank increased on the back of exchange rate deflation by 6% during the said period.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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