“Banking sector to be content with thin profit margins” | Daily News
DFCC Bank celebrates 65 years

“Banking sector to be content with thin profit margins”

Sri Lankan banking sector, in general, will have to be content with thin profit margins under the new normal, CEO, DFCC Bank, Lakshman Silva said.

He was speaking at the DFCC Bank’s 65th-anniversary celebrations Press Conference in Colombo. He said that lowering of lending interest rates will have an impact on the bottom line of the banking sector. “The import ban on goods too would contribute to this and until such time these are corrected the Banking sector will be stressed for their margins.”

The DFCC bank has managed the NPL situation successfully. The sector as a whole is not too satisfactory. “However no one can be blamed for this since Sri Lanka suffered two twin blows, the Easter Sunday attacks and also the COVID pandemic. Due to this in 2019 we did not get any headroom to review. The COVID pandemic aggravated this and these will not get corrected soon.”

The banking sector has never faced a twin situation of this nature through the country went through a 30-year-old war and have offered similar moratoria. “In all these past instances the interest margins have been good.”

However, the country has overcome the COVID situation better than we expected and most of the enterprises have come to normalcy and we believe most institutions will be returning to normal with the moratorium coming to an end on September 30.

“We also believe as countrymen, the banking sector too should support the economy and not only look at our success. This time, the moratoria are in large numbers but due to our pre-planning, we managed them well. We have accepted these challenges which we believe will help towards economic revival.”

“Over the years, DFCC has evolved, diversified and grown to meet the changing needs of Sri Lanka’s resurgent economy, our customers, institutions and the people. DFCC would have never reached this position in such a competitive space without the trust placed in us by our customers, backed by the support of our loyal staff. DFCC has always been, and will continue to be focused on developing individuals and businesses to grow through innovative and responsible financial solutions, which will lead to sustainable progress for all.”

“As we strive in becoming the most customer-centric digitally-enabled bank we will continue to serve our customers with the best customer service and a plethora of financial products from time to time making everyday banking a more convenient and friendly experience.”

A journey that commenced in 1955, DFCC Bank today is a full-service Commercial Bank. As a part of their 65th anniversary celebrations, the Bank has planned several activities to engage with varied stakeholders.