Indian Bank’s Jaffna branch to boost Northern Province

By Deepal V. Perera

Central Bank Governor Ajith Nivard Cabraal said that the presence of the second international bank in Jaffna would boost the region given the infusion of expertise, which would in turn help the people rebuild their lives.

Cabraal made this observation when he declared the Indian Bank in Jaffna open last weekend.

“When you look at the history of Sri Lanka and India, the livelihoods of both nations are linked all the time. Therefore, I would like to see many people come to this region and do more business, thereby improving livelihoods. When a bank delivers a loan, people must have proper means to repay it. So whenever a new bank comes into the region, they bring expertise with them in order to advice on how to utilise loans properly, thereby those who take loans would be in a position to repay them,” he said.

Indian High Commissioner in Sri Lanka Ashok K. Kantha said that that opening of an Indian branch was a boost to the region.

“The opening of the Indian Bank in Jaffna is timely, given the fact that Jaffna and the entire north and east are now passing through a historical moment, resurrecting after long-term armed conflict. This is the 13th time that I am visiting the Jaffna region and each time I see new development taking place,” said Kantha.

He added: “We just declared open the International Jaffna Trade Fair, where out of the 230 participants there were 45 Indian companies participating in the event. Soon Jaffna will turn into a northern economic gateway for Sri Lanka and in that sense India is committed to promoting more business between the two countries.”

The Indian High Commissioner noted that Jaffna would soon be connected to India by sea via the KKS Port, which would encourage an increasing number of people to conduct business.

Managing Director of the Indian Bank T.M. Bhasin said that Indian Bank, with its 104 years of active market presence and considerable exposure in rural development and microfinance, would strive hard to bring about a positive economic change in the lives of the inhabitants of Jaffna.

“In Sri Lanka, the Indian Bank attained the business level of Rs. 13,723 million in December 2010 and our deposits increased during the period under view to Rs. 7,732 million. Our loan advances in Sri Lanka now stand at Rs. 5,991 million and gross investments have increased to Rs. 6,726 million,” he said.

Indian Bank said that its first overseas branch was set up in Colombo in 1932, which happened to be the 10th branch of the bank. The Colombo office was followed by the opening of the Jaffna branch in 1935. However, World War II affected operations in Sri Lanka, due to which the Jaffna branch was closed in 1939 and the Colombo branch in 1942.