Three Medals

National Development Bank (NDB) has secured an AA (sri) rating, while its commercial and housing banking units were each rated AA-(sri) by Fitch Ratings Lanka Ltd. NDB’s subordinated unsecured debt walked off with AA-(sri) (double AA minus) and NDB Bank – its commercial banking arm – picked up a A+(sri) (A plus) rating for their subordinated unsecured debt.

NDB’s rating reflects its long and sound operating history, strong capital base and a prudent and competent management team, says Fitch.

The development bank has maintained a consistent track record of profitability enabling the build up of equity. Return on assets (ROA) over the last three-years averaged a healthy 2.0 percent, and ranks high amongst the larger financial institutions. At present NDB enjoys a high capital/assets ratio amongst the larger banks in Sri Lanka, says Fitch.

NDB is in the process of merging with NDB Bank, with the necessary paper work now before Parliament. Once the merger goes through, NDB Bank’s rating would converge towards NDB’s rating, as such the rating outlook is Positive.

Besides NDB’s 92.5 percent equity, NDB Bank leverages on its parent company’s customer

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