APPENDICES

Appendix I

• Vision

Bankers to the nation

• Mission

Customers

Foster most rewarding relationship with trust and reliability for our
customers, exceeding their expectations.

Staff

We offer our staff, recognition and rewards to be the best team of achievers in
service excellence.

Owners

As per expectations of our owners, be a catalyst in national development, with

profitability.

Society

Extending banking service to larger society as a beneficial beacon in the country.

• Goals and Policies

Goals of the BOC

•Improve core-banking profitability ensuring the pricing of both lending and

funding to be under constant review to enable stable financial margins at the net
interest income level. Focus here will be to arrest and manage the compression in
financial margins suffered over the past few years.
•Competition for longer term saving deposits likely to increase threatening the
low cost base of what has been a stable source of funds. Accordingly, fresh strategies
will need to be employed to retain them.
•As the price of deposits, loans and other products become less important in
the customer “buying” decision, we will be focusing more on service as a
differentiator to both gain and retain customers. Culturally, we will need to become a
service centered business with the customer charter in partnership with GOSL

I
sponsored strategic enterprises management agency (SEMA) that will generate a deep
rooted change will be among our main objectives for 2009
•Reliance on money market to fund the balance sheet, particularly at times of
stress, has taught a bitter lesson to many global banks. Accordingly, strategically we
will avoid such dependence on wholesale market and will focus more on generating
deposits to fund the loan portfolio.
•One of the singularly important messages of the ongoing crisis is the need for
undiluted application of risk management across the banking system. At BOC we
will undertake a cultural change process to upgrade risk management with the
message of a new partnership between business units and risk management spread
across the institution.
•Given the unfolding recession, the need to control costs takes a new more
imperative note. Indeed if margin compression at the financials level is difficult to
arrest, the control of other costs will become even more crucial. Efficiency of
operations is the ultimate goal here.
•Maximizing the benefit of emerging enabling technologies to communicate,
respond, innovate and simplify the business of banking is also in the agenda. At the
very least, the bank will strive to retain its’ current technological advantage, a key
differentiator among Sri Lankan banks.
•Leveraging banking license and operation in London is also a key goal in
2009. Supervised by the UK authorities, we see significant opportunities for the
London business to expand not only by engaging the Diaspora in London but also
within the Euro zone countries.
•Focus on managing people more effectively, to reward them for demonstrated
performance and ensuring the key people are fit for the purpose are also in the scope
for the future. As people ultimately make the difference between growth and
stagnation, their effective deployment and management will be critical.
•New initiative for the North and the East of the island with the arrival of total
peace. We expect to intervene productively in the resulting significant development
effort and financial flows.
•Finally, although profitability is likely to be under strain, we will continue
with our social responsibility and sustainability programme. In response to
diminishing internal resources, the program is likely to be subdued but more focused
and purposeful.

II
 Appendix II
Functional Areas

Branch Manager

Internal Control

Marketing &
Accounting
Relationship Customer Operation Work out
&
managemen service Manager
Reporting
t

Cust. Acc.
Relationshi Domestic &
Teller & Book
p Officer Clearing
keeping

New
Marketing
Accounts Financial
& Business Loan
& accounting
Developme Operations
customer & Reporting
nt
services

Customer Trade
Inquires services
Desk Operations

General
Administrati
on

III
 Appendix III
SWOT ANALYSIS
Strengths

• Modern up-to-date IT & Operating platform.

• 100% State ownership.

• Over 7 million customer base.

• Island wide branch and ATM network.

• Long term low-cost “Rankekulu” deposit base.

• Availability of wide range of products/brands and services.

• Talented and experienced management and staff.

• Superior single borrower limits.

• AA Rating coupled to Stable Outlook.

• Only SL bank with a full service business unit in London .

• Recognition as a Leader in the Banking Industry by the Regulator.

• Diversified & largely Collateralized Loan Portfolio.

• Capacity to open new network of offices in Europe.

• Untainted by any type of financial scandal.

• Continuous profitability despite significant development banking efforts.

• Best capital ratio among local banks.

IV
Limitations

• Leakage and/or Slow growth in low cost deposit base.

• Large government exposure with its rating under pressure.

• No impact of treasury guarantees on the cash flow of the bank.

• High dependency on money market borrowings.

• Less than desired controls.

• Repeated negative audit comments.

• Unavailability of performance based reward system.

• Staff placement without considering talent & experience.

• Lack of business and product knowledge among staff.

• Low level of competitive market behavior.

• Increasing cost of funds with high administrative cost.

• High expenses on maintaining premises including rental payment.

• Poor communication of plan targets, strategies, and action plans Less than
optimum internal integration / coordination.

• Core banking business under strain.

• Open-ended pension liability coupled to a deficit in the pension fund

Opportunities.

• The reduction of war leading to lower Treasury borrowings.

• Reduction in military expenditure to enhanced public investments.

• Declining inflation and interest rates.

• Lower but stable exchange rate.

• Northern and Eastern provinces contributing to the economy.

V
 • With peace investment & private transfers enhancing FX inflows.

• Collapse of informal financial institutions and flight to quality.

• Progress on “Randora” infrastructure projects.

• Effort to expand foreign employment & remittances.

Threats

• Private sector business of adequate quality to replace GOSL.

• Low levels of foreign remittances.

• Increase in personnel cost with no improvement in productivity.

• Credit crunch impacting Dollar ($) funding.

• High levels of NPA as economy declines in the short term.

• More regulatory, compliance and risk management related measures.

• Slow down in tourism sector continuing due to global economic recession.

• Lower returns / larger funding deficit in PF due to decreasing rates.

• Slow or negative GDP growth.

• Downgrading of country credit rating by Standard & Poor’s.

• “GSP PLUS” issue on Garment industry.

• Continuation of prevailing global economic recession.

• Declining trend in commodity prices in global market.

Appendix IV

VI
AWARD AND CERTIFICATION
• 31st March 2008 - BoC announces uplifted earnings aligned with national
development.
• 04th March 2008 - BOC Strengthens Internet Banking Site Visitor Trust Using
Extended Validation SSL.
• 27th February 2008 - Bank of Ceylon, PayMate launch SMS based mobile
payment service for 6 million banking customers.
• 24th January 2008 - Bank of Ceylon Leads the Sri Lankan Banks’ Fight against
Internet Identity Theft, Phishing, and Online Financial Fraud.
• 5th December 2007 - Bank of Ceylon wins Ceylon Chamber of Commerce
CSR Award for Education & Training.
• 28th November 2007 - Bank of Ceylon wins National Award for Excellence in
Business & Financial Sustainability.
• 31st October 2007 - Mass Media Award for best media advertising goes to
Bank of Ceylon.
• 17th October 2007 - Bank of Ceylon is the only bank to win a SLIM Brand
Excellence Award.
• 10th October 2007 - Bank of Ceylon wins world’s most prestigious awards for
its Annual Report.
• 24th May 2007 - Bank of Ceylon’s new Chairman assumes duties.
• 8th May 2007 - Bank of Ceylon’s Annual Report for 2006 confirms its best
ever results.
• 30th April 2007 - Lanka's biggest international syndicated loan for Bank of
Ceylon.
• 31st January 2007 - Bank of Ceylon provides Rs. 5 billion in PC loans for
50,000 schoolteachers.
• 19th January 2007 - Bank of Ceylon introduces comprehensive Higher
Education Loans.
• 10th January 2007 - Bank of Ceylon announces its best ever results for 2006.
• 14th November 2006 - Bank of Ceylon wins IBM award for fastest deployment
of online banking system in Asia Pacific.
Appendixes V

VII
Other unique features of the organization
• Bank of Ceylon launches TV series ‘Viyaparika A-Z’ to nuture
entrepreneurship.
• Bank of Ceylon launches Business Class for top public & private sector
enterprises.
• Bank of Ceylon slashes interest rates on pawning loans & overdrafts.
• Every Bank of Ceylon branch now has a dedicated customer care assistant.
• Special Dialog mobile package for Bank of Ceylon Customers.
• Lanka Bell bills now payable at any Bank of Ceylon Branch.
• Bank of Ceylon spans the country with the biggest online branch network.

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Appendix VI
Questionnaire
I’m final year student, reading for the Bsc. Business Management (Special) Degree in
Sabaragamuwa University of Sri Lanka, while getting my practical training from
Bank of Ceylon. Here I attached questionnaire, which has designed for gathering
necessary information regarding my academic research study. As an experienced
person regarding the activities of this BOC, I shall be glad if you could be able to
spend a few minutes in your valuable time to fill this questionnaire.
1. Gender
Female Male
2. Your age group
15-25 Years 46-55 Years
26-35 Years More Than 56 Years
36-45 Years
3. Your occupation
Government servant Self Employee
Businessman Non Employee
Privet Sector employee Student
4. What is the time period of your banking practices?
1-2 Years 11-20 Years
3-4 Years More Than 20 Years
5-10 Years
5. Where do you made your accounts?
In Government Bank
In Privet Bank
Both
6. What are the other banks you deal? ( in namely)
……………………………………………..
7. What are the accounts that you belongs?
Saving Account Current Account
Fixed Account

Part II
1. How frequent of time that you deal with the banking activities?
Once a Week Once a month
twice a month Once a two month

2. How do you aware about the services of the BOC?

By Neighbors or Friends
By Advertising

3. How do you get the services of the BOC?

By Personally By Telephone

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 By Internet Other
4. What concerned as the important to trives the buying behavior?( in customers
perspective)
Quality of services Low cost and high interest
rates
Product differentiation

Please express your ideas in to the following statements.

5. I had been well aware about the on line technology of the BOC?
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

6. I widely used the ATM transactions.

Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

7. . I satisfied with the wide range of telephone transactions.

Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

8. I satisfied with the visual appeal of the materials and documents of the BOC.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

9. I satisfied with the physical appearance and arrangement of the inside

premises of BOC.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

10. When do you go to get the services of BOC, do you have to consume?
Less than 30 Minutes More than 30 Minutes
11. . I satisfied with the time (from 8.30 am to 3.00 pm) that service provides by
the BOC.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

12. . I satisfied with the quick response of the BOC to the needs.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

X
13. I satisfied with the accuracy of the banking activities of the BOC.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

14. I satisfied with the security of the deposits and money on the BOC with
compared to the other banks.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

15. I believed that the level of services at same of the all time of the day and all
staff members.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

16. I satisfied with the politeness and pleasant demeanor of the staff members
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

17. I believed that the other banks required more time than BOC of providing
transactions.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

18. I satisfied with the locations that are established of the BOC.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

19. I feel that I overall satisfied regarding with the all key aspect of the services
of the BoC.
Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

20. I would like to switching other banks to get the services.

Strongly Agreed Disagree
Agreed Strongly Disagree
Neutral

21. I recommended the services of the BOC to my friends.

Strongly Agreed Disagree
Agreed Strongly Disagree

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 Neutral

22. Put the numbers according to the most influence factors that affect to the
service quality of the BOC
Physical resources( technology, machinery, internal premises)
Reliability
Courtesy
Easy to access
Quick response to the customer requirements

23. Recommendation to improve the service quality of the BOC.

…………………………………………………………………………………………
…………………………………………………………………………………………

Appendix VII

Weighted Mean Table (Customer Ranked)

Tangible Reliability Courtesy Access Responsiveness

1 40 320 60 60 20
2 80 96 64 96 64
3 60 24 120 48 48
4 48 8 56 40 48
5 28 0 4 28 40
15 256 448 304 272 220
Table 4.4.2
Source: Survey Data, 2009

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Appendix VII
Summary Table

factors + -

I well had known about the online system of BOC. 52 28

I wide used of the ATM transactions. 76 12
I satisfied with the wide range of telephone
49 20
transactions
I satisfied with the visual appeal of the materials and
96 0
documents of the BOC.
I satisfied with the physical appearance and
45 10
arrangement of the inside premises of BOC.
I satisfied with the time (from 8.30 am to 3.00 pm)
64 12
that service provides by the BOC.
I satisfied with the quick response of the BOC to the
65 0
needs.
I satisfied with the security of the deposits and money
100 0
on the BOC with compared to the other banks.
I satisfied with the accuracy of the banking activities
92 0
of the BOC.
I believed that the level of services at same of the all
61 7
time of the day and all staff members.
I satisfied with the politeness and pleasant demeanor
of the staff members 61 0

I believed that the other banks required more time

than BOC of providing transactions. 24 22

I satisfied with the locations that are established of

69 6
the BOC.

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