Hatton National Bank (HNB), a private commercial bank in Sri Lanka, has received approval from the Central Bank of Sri Lanka, the nation’s central banking authority, to establish a subsidiary that will manage HNB’s existing microfinance operations and “smallholder” agricultural finance services [1]. The new entity is expected to partner with international investors in the future although no details on this possibility are available. Since 1991, HNB has been providing financial services to micro-, small and medium-sized enterprises in rural Sri Lanka including through a financial inclusion program called “Gami Pubudwa” (Village Awakening).
As of 2012, HNB reported total assets of LKR 446 billion (USD 3.40 billion), total deposits of LKR 341 billion (USD 2.60 billion), gross loans and receivables of LKR 310 billion (USD 2.4 billion) and return on assets (ROA) of 1.86 percent.
By Nisha Koul, Research Associate
About Hatton National Bank: Hatton National Bank (HNB) is a private commercial bank in Sri Lanka that was founded in 1888 to serve Ceylon’s tea industry. It has since become a public limited company that, in addition to traditional financial services, offers financial literacy and microfinance products through its “Gami Pubudwa” (Village Awakening) program. As of 2012, HNB reported total assets of LKR 446 billion (USD 3.40 billion), total deposits of LKR 341 billion (USD 2.60 billion), gross loans and receivables of LKR 310 billion (USD 2.4 billion) and return on assets (ROA) of 1.86 percent.
About Central Bank of Sri Lanka (CBSL): Established in 1950, the Central Bank of Sri Lanka (CBSL) is the nation’s central banking authority. The core responsibilities of CBSL are to ensure the stability of the nation’s financial sector as well as the economy as a whole. In the year 2012, CBSL had total assets of LKR 1.28 trillion (USD 10.1 billion) and return on assets (ROA) of 10 percent.
Sources and Additional Resources:
[1] ColomboPage, Sri Lanka Internet Newspaper, “Sri Lanka’s Hatton National Bank sets up finance company for microfinance business,” http://www.colombopage.com/archive_13B/Oct10_1381343912CH.php
MicroCapital Story, July 30, 2013, “Government of Sri Lanka Proposes Long-Delayed Regulations for Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-government-of-sri-lanka-proposes-regulations-for-microfinance-institutions-mfis/
MicroCapital Story, October 12, 2010, “Hatton National Bank (HNB) of Sri Lanka Reportedly Increases Impact Through “Village Awakening” Microfinance Program,” https://www.microcapital.org/microcapital-brief-hatton-national-bank-hnb-of-sri-lanka-reportedly-increases-impact-through-village-awakening-microfinance-program/
MicroCapital Universe Profile: Hatton National Bank (HNB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Hatton+National+Bank+%28HNB%29
MicroCapital Universe Profile: Central Bank of Sri Lanka (CBSL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Sri+Lanka+%28CBSL%29
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