INTELLECTUAL CAPITAL
Our intellectual capital consists of organizational tacit knowledge and systems, processes and protocols which define the way we engage with stakeholders and perform day-to-day operations. The Bank’s unique intellectual capital has allowed it to sharpen its competitive edge through differentiating its customer value proposition and service standards. A host of awards, brand ratings and rankings attest to the strength of our intellectual capital.
Link to Strategy
The Bank’s intellectual capital plays a vital role in achieving the organizational change required under the Bank's Transformation 2020 strategy. Intellectual capital will continue to be strengthened by our ethics, integrity and the strong governance framework which form core components of our strategy.
Challenges in 2017
- Driving organizational change brought in by the Transformation 2020 strategy
Priorities for 2018
- Focus on nurturing the One NDB Culture in line with the Transformation 2020 strategy
- Increasing the brand equity of the NDB brand
- Further strengthening the Bank's governance and risk management framework
One NDB Culture
In line with the Bank’s Transformation 2020 strategy, the Bank invigorated its culture identity as One NDB. This culture identity will further inspire our employees and foster a productive and effective work environment across the Bank. The NDB Team is rich with a diverse mix of experience joining us from various institutions as well as in-grown talent. Our diversity is also strengthened by an equitable mix of male and female employees representing various races and faiths.
The One NDB Culture will unify these diversities towards one goal. It is further defined by four Cs, namely Collaboration, Communication, Critical thinking and Creativity. These are the essential components of our culture identity which will foster a dynamic work culture, strengthening the fabric of trust and commitment to each other.
The cultural shift is expected to strengthen the Bank’s intellectual capital over the long-term as it will facilitate the build-up of inimitable organizational knowledge.
CORPORATE VALUES
The Bank’s five corporate values represent the philosophy and principles that guide our stakeholder relationships and internal conduct. These values are the essence of the Bank’s identity and play a vital role in shaping our culture and employee behaviour. The values are instilled in all our employees during induction programmes after recruitment and reinforced through subsequent training initiatives and engagement mechanisms.
INTEGRITY |
We are devoted to uphold honesty, truthfulness and sincerity while remaining fair and ethical at all times – even in the most challenging situations. We will inspire trust by saying what we mean, matching our behaviors to our words and taking responsibility for our actions. |
CREATIVITY |
We are driven by a desire to reach beyond the norm, challenge the status quo and shape new vistas for our stakeholders. We are creative in our thinking and futuristic in our approach– while working towards the end goal of delivering unsurpassed value to all our stakeholders. |
EXCELLENCE |
We have the right attitude to diligently deliver what we promise while adding value that goes beyond what is expected. We achieve excellence through innovation, expertise, thoroughness and experience in everything we do. |
SINCERITY |
We believe in building productive, long-term relationships based on sincerity with our clients and stakeholders. We regard our sincerity towards each other is just as valuable as what we collectively achieve. |
ACCOUNTABILITY |
We remain responsible, accountable and transparent in everything we do. Our corporate strategy is shaped by the willingness to take ownership for our actions that affect our stakeholders. |
Ethics and Integrity
The Bank is committed to maintaining the highest degree of transparency, integrity and ethics when engaging and transacting with its stakeholders. In addition to regulatory, contractual and fiduciary responsibilities, employee behaviour is guided by the Bank’s comprehensive Compliance Policy and the Code of Conduct which outlines how employees should interact with internal and external stakeholders. The Bank’s responsibilities towards customers are outlined in the Customer Charter while a formal Supply Chain Management Process ensures integrity and transparency in all dealings with our business partners.
During the year, the Bank’s Legal/Compliance Department has not been informed of any material non-compliances with laws and regulations relating to corruption, anticompetitive behaviour, anti-trust, monopoly practices or laws and regulations concerning the use of products and services. There were no fines or non-monetary sanctions for noncompliance with laws or regulations.
Systems and Processes
NDB has developed a comprehensive suite of structures, systems and processes which clearly set out responsibilities and outline the principles to guide decision making. Built over many years of activities and operations, these are continuously reviewed and updated to reflect changes in the Bank’s internal and external operating landscape. The Bank’s governance structures also play a vital role in preserving its reputation and risk profile as is discussed from page 135 to 186 of this Annual Report.
Procurement Policy: The Board-approved procurement policy ensures fairness, transparency and consistency in evaluating suppliers. The policy is implemented by an eight-member procurement committee appointed by the CEO and has demonstrated results in terms of cost efficiencies and quality of goods/service procured. The Bank procures stationary, computer equipment, software and other material from a pool of diverse suppliers comprising small enterprises and corporates. Our suppliers are primarily local in origin.
Outsourcing Policy: The Monetary Board of the Central Bank of Sri Lanka (CBSL), in exercise of the powers conferred by the Banking Act No.30 of 1988 as amended, issues directions to banks, on outsourcing business operations. The Banking Act Direction No.2 of 2012 deals on Outsourcing Business Operations of a Licensed Commercial Bank and a Licensed Specialized Bank and as amended from time to time.
The outsourcing policy of the Bank is formulated in line with the said Direction, to be followed, for outsourcing of any non-core functions that the Bank may find advantageous or necessary to outsource.
The outsourcing policy outlines the key factors of consideration when evaluating parties and striking an optimum balance between quality and cost concerns. The Outsourcing Policy is implemented by a committee of seven members.
Sustainability Policy: NDB’s sustainability policy clearly sets out the Bank’s strategy in ensuring the responsible creation of shared value while minimizing the adverse impacts on the society and the environment.
Brand
NDB among Sri Lanka's top 20 most valuable brands in 2017
The Bank successfully and passionately pursued its strategic brand building throughout the year 2017 with the support and commitment of the Bank’s leadership. The Bank worked towards maintaining its brand as relevant and as discernible as possible in a highly competitive marketplace.
During the year under review, we took proactive efforts to strengthen our brand presence amongst relevant target audiences by advertising in key media such as selected television and radio networks, magazines, national newspapers, strategic outdoor locations, branch premises as well as via online and digital media. The key message across all media reiterated the message ‘Our Commitment, Your Success’ which reinstated the strength of the NDB Group – a diversified conglomerate with the ability to deliver multiple financial services under one roof. The advertising of numerous products/ brand names conducted throughout the year also contributed to the brand equity of the NDB brand while portraying the brand as a dynamic force within the industry. Having transformed from a development bank into a fully-fledged commercial bank, the NDB brand has evolved to become one of Sri Lanka’s most established household names, within a short span.
Awards and Recognition
The Bank and the group companies are a frequent recipient of local and international awards and accolades. In 2017, they together won close to 40 international and national accolades and has been awarded for multiple aspects of its business activities such as technology, operations, investor relations and sustainability/corporate reporting. Please refer pages 20 and 21 for a full list of awards.