NSB Dip

National Savings Bank (NSB) says deposit growth has slowed despite its strong franchise as a credit rating agency warned of higher market risk because the bank has subscribed to more government rupee securities. National Savings Bank (NSB) says deposit growth has slowed despite its strong franchise as a credit rating agency warned of higher market risk because the bank has subscribed to more government rupee securities. Rating agency Fitch however maintained the top notch Triple ‘A’ rating on the bank in a rating review out this week.

Savings giant NSB, the third largest bank in terms of assets says changing consumer habits are making new deposits harder to get.

“Our target is Rs. 22.5 billion for this year but upto now we have managed to mobilize Rs. 8 billion and lagging behind the target,” says Eastman Narangoda, GM, National Savings Bank.

“During high interest regime our rates were on par with T bill rates. But in lower rate regime we can’t give the same rates. That also would have played a role.”

“We also notice Sri Lankan depositors are moving to a consumer economy,”
Narangoda noted.

While deposit growth has fallen across the board most other banks are doing better than NSB.