| Table of Contents |
Acknowledgement
Executive summary
List of figures
1.0 Introduction to organization
1.1 History of the organization
1.2 Current business activities
1.3 Vision, mission, goals and objectives
1.4 Organizational structure
1.5 Type of business
2.0 Organizational analysis of the company
2.1 Situational analysis
2.2 Communication process
2.3 Human resource activities
2.3.1 Recruitment and selection process.
2.3.2 Employment appraisal method
2.3.3 Training process
2.3.4 Motivation process
2.4 Marketing activities
2.4.1 Marketing mix
2.4.2 Targeting and positioning strategy
2.5 Corporate social responsibility (CSR)
2.6 Company strategies for long run
2.7 Problems identified in current operation
3.0 Recommendations
3.1 Strategies recommended to overcome identified problems.
3.2 Strategies recommended to improve performance of the company
References
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Executive summary
The key objective of this report is to evaluate the business management processes of National Development Bank PLC (NDB). NDB bank is a leading development oriented commercial bank in Sri Lanka which provides retail, SME, commercial, project and infrastructure financing and capital market solution for Sri Lankans. This report focuses on current situation of the organization based on SWOT analysis, current marketing activities, human resource activities, communication process, CSR and long term strategies.
Key strengths of NDB bank are strong brand name and reputation, Skillful and experience staff to deliver superior customer value, technology driven banking process and key weaknesses are relatively lesser market share in retail banking category and relatively lesser presence in suburban and rural areas compared to key competitors. It has matrix organization structure. Bank has formal recruitment and selection, training, performance appraisal and reward mechanism based on group policies. As a listed company, bank should comply to disclose investor relation information. Thus, bank’s communication process is developed well-structured manner. Considering marketing aspects, bank target wide range of customer segments and it bank has positioned as a commercial bank which provide differentiate products for affordable prices.
However, bank need to focus on branding it properly as a fully-fledged commercial bank rather recognized as development bank. Further, bank should increase its market share in retail banking category by offering more tailor made products and customer centric service. Bank should expand its reach to more suburban areas to attract more customers. NDB bank is a leading bank in Sri Lanka which adopt quickly to digital transformation. Bank should further deploy cutting edge technology of the sector and introduce process automation to remaining manual processes. This report highlights recommendations to overcome current problems and improve overall performances to achieve its key goal which is to be the catalyst in the financial services service industry by creating greater shareholder value and contribution to the national development.
1.0 Introduction to organization
1.1 History of the organization
National Development Bank was established in 1979 as a fully state owned bank funded by the government of Sri Lanka and multilateral agencies. In 1989, bank moved to its own building which is now its headquarters located Nawam Mawatha, Colombo. In 1993, bank made significant step by privatizing 67% of equity and in 1997 it was fully privatized. In 1997, NDB investment bank was established and bank acquired Eagle insurance. In 2005, NDB bank converted from an incorporated body to a public company under the companies act (NDB annual report, 2017). Throughout the year, NDB has acquired and partnered with many different companies to become one of leading commercial bank in Sri Lanka which offers various financial services.
NDB bank has made immense contribution to enhance the socio economic development of the community and has been a catalyst in the development journey of Sri Lanka.
1.2 Current business activities
NDB bank is Sri Lanka’s leading financial services provider which offers range of financial services such as retail, SME, commercial, project and infrastructure financing and capital market solutions. It is considering as one of the fastest growing and transforming banks in Sri Lanka. Bank has 113 branches and 161 ATMs covering 22 districts of Sri Lanka. Bank has total number of employees of 2892. Bank recorded LKR 60.66 billion of annual income in 2020 and it was increased by 3% compared to previous year. Profit after tax was recorded as LKR 5.5 billion in 2020 and it was increased by 8% compared to 2019. Considering financial position, NDB has LKR 632 Bn worth of assets, LKR 45 Bn worth of equity and LKR 490 Bn of deposit (NDB annual report, 2020).
NDB bank’s product range covers investment products, lending products in product categories such as retail, commercial, SME and PIF (Project and infrastructure financing) and other product such as credit card, debit cards, remittance in every product categories. After become a commercial bank, currently NDB bank has acquired competitive position in the financial market and has become 4th largest listed licensed commercial bank in Sri Lanka (CFI, 2021). Even though it is a fully fledge commercial bank, its product portfolio has relatively more development oriented products to empower the individuals and businesses.
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