With the vision in inspiring the Nation towards Transformational Growth whilst engaging in the business of providing financial services that contribute to the quality of life embedded with the efficiently delivered solutions, People’s bank-Pride of the nation has become the most sought after bank with the industry best employee satisfaction level. With its humble beginnings People’s Bank has become the pulse of every Sri Lankan by enhancing their living standard whilst supporting State endeavours considering the aspirations of the nation.
Sunday Observer Team got the pleasure in getting acquainted with Mr. Rohan Patirage; Senior Deputy General Manager Overseas Customer Services with his friendly disposition and hospitality whilst sharing his immense knowledge on vivid areas of People’s Bank in the desired hour. Below are the excerpts of the interview.
Q: What is the role of people’s bank in the context of Sri Lankan economy?
“In the past, the country had a banking system driven mainly by commercial competition. Against such a backdrop, the need arose for a strong local bank for the general public as well as to promote the development of cooperative societies. Thus, People’s Bank was introduced to the common man - who until then had not had the opportunity to even step into a bank. Today, People’s Bank is the largest banking service provider in the country with 743 branches and service centres and over 14.5 million customers. Our total deposit value is over Rs.2.07 trillion with the assets amount to Rs.3.0 trillion. As a state bank, our primary focus is not merely making profits but to provide the financial services required to support the people of this country and economy. We moreover introduced many product categories such as Pawning, Children’s Savings Accounts, and Ladies’ Accounts etc. which were aimed at providing enhanced value to general public.
Q: What is unique about people’s bank that sets it apart from the other banks?
“We were known named as the bank which feels the pulse heart of the peoplenation. Added to that, at present we are known as the pride of the nation. Trust of People in the Bank goes a long way in winning of the hearts of the people. People’s Bank has a customer base of over 14.5mn out of the country’s’ population of 22mn which shows a good indication of peoples’ trust in People’s the Bank. People's Bank's sole focus is not profits. The profits we generate are used exclusively for the development of the country.
The Our immense care for the nation has made us act generously. For instance during the COVID-19 pandemic People’s Bank as a group provided interest concessions to over 400,000 retail customers, 21,000 businesses and 55,000 Leasing customer which is the most for any banking group in the country. We managed to give these concessions within a matter of days from the time the government decided to grant them. The value of interest concessions granted is more than Rs. 4 billion.
People’s Bank plays a major role in facilitating importation of essential goods to sustain the economy and lives of general public. For example, we have provided approx. US$2 Billion in the recent past2022 alone for importation of Oil, when the entire country was strapped for foreign currency. Similarly, we have facilitated importation of Coal for electricity generation and Vaccines to prevent Covid 19. We facilitate such transactions even when it is not profitable for us to do so in the interest of the nation.
We use our massive branch network to make critical payments such as government pensions, Samurdhi grants and various other payments to support the day to day lives of the general public. While we are a pioneer in digital banking in Sri Lanka, the benefits of such technology were always made available to the mass market without confining those to certain segments of the society.
Q: What special contributions has the bank made towards wellbeing of the economy and general public?
Over the last three years alone, we have provided over Rs.750 Billion worth of funding to multiple state owned enterprises enabling them to provide much needed services to the general public. In addition we have given back over Rs.45 Billion to the state as Taxes and Dividends.
During this three (3) year period, we have granted the following benefits in terms of customer loans
a) Over Rs.55 billion to SME businesses
b) Over Rs.500 Million to Teachers, Artists and Media personnel
c) Over Rs.400 Million to Women Entrepreneurs
d) Over Rs.350 Million to University student to purchase Laptops
We similarly have granted over Rs.33 Billion in loans to armed forces personnel and over Rs.3.3 Billion loans to disabled officers of the armed forces.
It is noteworthy to mention that during the Covid 19 pandemic we kept 70% of our branches open for the benefit of general public and also managed to disburse Rs.14.4 billion under the “Saubhagya” COVID-19 Working Capital Loan Facility introduced by the government in order to support entrepreneurs and the business community. During Covid time, mobile banking units of People’s Bank visited villages for the convenience of citizens for cash withdrawals and other services.
Q: What are the challenges faced by the bank at the moment?
We need to continue our services to our nation as we have done in the past. For us to do so, we need to be able to retain our financial strength. In the current volatile economic situation, our main areas of focus are managing interest rate margins and foreign currency deposits.
Q: Has the consideration of increasing interest rates for loans of people’s bank already been granted?
That option is yet to be explored. As you know, a bank’s main business is to accept deposits and lend those funds as loans. Currently we pay over 20% for Fixed Deposits whilst carrying Loans at rates of less than 10%. Anyone can understand that there needs to be an adjustment in loan interest rates in such extreme situations. However, any such move will only be made in order to cover deposit costs and not to make profits, if we decide to do so.
Q: What is your contribution to customers in terms of deposits?
People’s Bank has always been one of the most trusted places for customer deposits. As a state bank, we offer unparalleled security to any deposit which is why our current deposit base exceeds Rs. 2 Trillion. We also offer quite attractive and competitive interest rates for all our deposit products. In addition, we offer unparalleled accessibility and convenience due to our massive branch network and cutting-edge digital channels. In terms of products, we have one of the widest range of deposit products in the industry which have been designed to meet the distinct requirements of different segments such as minors, youth, professional, senior citizens, high net worth individuals and so on.
Q: with the current economic situation, international remittances are essential for uplifting the nation. What has people's bank done to address this issue?
It is important to emphasize here that our country needs Foreign Exchange to maintain a steady eExchange rate and also to build up Foreign Reserves of the country. With a view to strengthen the country's economy as well as uplifting the living standards of the recipients, the People's Bank launched the 'People's Remittance ’Vaasi Kotiyai” from 1st February 2022, with the aim of encouraging and appreciating Sri Lankan foreign workers in overseas employment. Under this program, over Rs. 30 million worth of prizes were distributed among daily, weekly, monthly and yearly winners. The next phase of this promotion will commence early this year with even more valuable prizes.
People's Bank also offers pre-departure loans to workers who go for overseas employment. In addition, we provide loan facilities to them while working there. Moreover, we have already planned to introduce a foreign labour incentive package that encourages remittances to be sent to Sri Lanka through banks or formal channels.
Q: What is People’s Bank doing in terms of offering added convenience to customers’ lives?
People's Bank seeks to bring to its customers a superior customer experience by introducing state-of-the-art banking and financial services at all times. Accordingly, the Digital Banking project was launched in 2015 with the aim of bringing the most convenient, secure and efficient banking facilities to our customers in line with the new digital era. We were the first bank in the country to implement a complete digital transformation for the entire operating model, covering all aspects from the lowest to the highest levels of the Bank.
People's Bank Self Banking Units (SBUs) are a pioneering introduction to our digitalization program. At present there are over 265 SBUs island wide. With ATMs, CDMs and bill payment machines (KIOSK) installed therein, you can experience convenient and efficient banking which operates 24 hours a day, 7 days a week, 365 days a year and all year round.
Because of the superior technology we employ, one can open an account in less than 10 minutes with no physical paperwork involved. Also with our new Loan processing capabilities, one can get a personal loan approved within just 24 hours.
From a convenient point of view, the bank offers one of the most powerful yet user friendly Mobile banking and internet banking facilities in the country to customers for enhanced accessibility. People's Bank, as a state-owned bank, has a significant role to play in bringing digital financial services closer to the urban as well as rural population of the country. I would like to take this opportunity to urge all Sri Lankans to make the most of it.
Q: What is the reputation of People's Bank in international banking related to global trade?
People's Bank successfully deals with 900 International banks around the world. People's Bank also makes significant contributions to the country's import and export activities by issuing letters of credit and guarantees to private and state-owned companies. People's Bank issues Lletters of Ccredit for the importation of essential commodities such as fuel, pharmaceuticals and LP gas and provides the financial services required to sustain maintain the normal day to day life of the people of this country.
Q: Apart from business activities, how has People’s Bank contributed to the betterment of society?
One thing that separates People’s Bank from other institutions is actually the genuine interest it shows in the wellbeing of the community. This sentiment is equally shared by all employees of the bank which is why they donated a part of their salary to finance vital medical equipment worth over Rs.20 million to key government hospitals to treat Covid 19 patients during the pandemic. While we conduct so many CSR activities in multiple areas, some of the key initiatives that were conducted last year are donation of essential medical supplies to Lady Ridgeway and Castle Hospitals worth over Rs.10 million and the provision of Solar powered electricity and running water systems for under resourced schools.