New CEO of HDFC Bank outlines his future plans

Nimal J.B. Mamaduwa, who assumed duties as the new CEO/GM of HDFC Bank, is a senior professional banker with 38 years of experience in commercial and development banking, including 29 years at Hatton National Bank PLC and being the General Manager/CEO at Sanasa Development Bank PLC from 2006 until October 2012.

Moving quickly to solidify his management team and with plans for the bank to undergo a broad revamp of its strategy and streamlines its business, Mamaduwa spoke about his current appointment and said that “having worked in the private sector for more than three decades in two private banks, I look forward to the challenge of taking over a State bank. We currently have a good team in place and I am confident that I could rely on their skills and experience as we navigate the challenges and opportunities ahead.”

Manaduwa also stated: “I believe it is essential to have a range of products that will be of a proper value to the general public. We currently have under our portfolio many products that serve different sectors of society. HDFC is currently offering loan facilities keeping a person’s EPF balance as collateral. This makes it so much easier for a customer to obtain a loan with the confidence of knowing they can honour their commitment to the bank. This therefore becomes a win-win situation for both parties. I plan on making this benefit available to customers in all the regions of our country.

“In addition we also offer the benefit of gold loans to our customers. Here the process is really easy. Once the gold is logged in our bank we will value it and give the eligible loan amount immediately. Our gold loan provides partial payment flexibility. If you have some money to pay, you can go ahead and pay whilst the outstanding amount will come down and so will the interest. It is one of the best solutions you can turn to when faced with a situation where you require fast cash.”

Elaborating further, Mamaduwa explained: “We also have a set of uniquely designed investment plans to guarantee your children’s future financial security. The Thilina Rakawaranaya children’s savings account currently has a higher interest rate above ordinary savings accounts, which can be initiated with only a minimum deposit of Rs. 500, where on attaining 18 years of age, your child will be entitled to a special housing loan with extra benefits. These are just some of the unique benefits that are offered by us that has always set us apart from other banks. HDFC also offers deposit products to senior citizens with attractive interest returns and plans to introduce some special products for women and youth shortly. HDFC has plans to diversify into new areas such as leasing, financing of high-end housing finance by entering into partnership with property developers particularly in the area of apartments that are coming up in Colombo City.”

Outlining the future initiatives for the bank for the next five years, Mamaduwa stated: “I believe that microfinance is one way of fighting poverty in rural areas. By providing loans to emerging entrepreneurs to start or expand businesses, financial institutions such as ours plays a key role for the betterment of our society at large, helping these societies to become more resilient and better able to provide for their families in times of economic difficulty. We at HDFC bank plan to play a major role in this area. Along with providing more flexible micro finance loans, the bank plans to offer savings and insurance to help these clients. Micro financing can also help create new employment opportunities, which has a beneficial impact on the local economy. We are therefore of the view that small businesses are the future and that the benefits for the country are going to come from that vehicle. HDFC as a responsible bank wishes to engage in the development plans outlined by Government as in the past. There is also an urgent need to rebuild the livelihood of people in the northern area and HDFC will actively engage in housing related finance in the Northern Province with the assistance of the Central Bank refinance schemes. In addition to this, remittances is another area where we wish to expand with the commitment of micro finance business.”

Mamaduwa went on to say that the bank has 32 branches at present and wishes to expand the branch network islandwide including in the north east, particularly targeting the low and middle income rural sector. However, he believes that this needs to be carefully planned on a phased out basis subject to regulatory approvals.

In conclusion he said: “The ‘Emerging CSR Models’ considers that the corporates have their share of responsibility towards their various stakeholders with an ultimate objective directed towards the bottom-line and long-term sustainability. Therefore, whilst we apply our financial expertise to design products and services to better serve our growing clientele, we will also continue to engage in many CSR activities in areas such as economic value creation and environmental sustainability.”