State run National Savings Bank stepped into the lucrative US$ 1.5 bn foreign worker remittances market by offering savings and fixed deposit products. State run National Savings Bank stepped into the lucrative US$ 1.5 bn foreign worker remittances market by offering savings and fixed deposit products. So far, the savings giant has been picking up the crumbs – about one percent – of the total market, as limitations in its Act, forced its customers to cash their foreign currency to local rupees.
Being a relatively late entrant to this field, NSB has set an ambitious target to tap 2.5 percent of an expected US$ 1.6 bn market this year.
“It’s big but achievable,” says Cyril Herath, Chairman NSB. “We are looking at ending the year with Rs. 4.1 bn from these products.”
But all these funds are not expected to sit in the bank’s kitty. Going by a rule of thumb, monies in about five percent of savings accounts and 20 percent of fixed deposits will remain in the bank.
“It’s about Rs. 825 mn that we expect to remain with us by the end of the year,” explains Eastman Narangoda, CEO NSB.
To make it easier, NSB has relaxed rules for potential