Strategy Used In Hatton National Bank

Topics: Bank, Sri Lanka, Financial services Pages: 9 (2426 words) Published: December 1, 2014
1. Introduction to the Company

After 123 years of solid service, the HNB brand is deeply intertwined with the lives of thousands of Sri Lankans from all over the island, many of whom have held their accounts with HNB for generations. From a child’s minor savings account to corporate credit and project financing extending to billions of rupees, HNB remains the bank that thousands trust as their Partner in Progress. Together HNB have woven a financial network binding together a nation and its people, reinforced by decades of experience and strengthened by the loyalty of many business partnerships that have deepened over time. Every customer HNB serve is special and every relationship is unique. This is why HNB believe that its business is more than just a series of transactions. It’s about developing long-term, strategic partnerships. It’s about being responsive, caring and treating people with respect. It’s about making sure that everyone has the opportunity to change their lives and make their dreams real. HNB’s employee numbers are in the thousands.

In 1888 R.D Banks and A.T Atkin established a small, private bank called Hatton Bank to cater to the needs of investors and laborers in Ceylon’s tea plantations. In 1948: Sri Lanka attained its independence and Brown & Co., an engineering concern, bought the interests of the original investors.In 1961, the Sri Lankan government forbade foreign banks to accept deposits from Ceylonese nationals. This led to restructuring of the foreign bank presence in the Sri Lankan banking sector. In 1970 Hatton National Bank (HNB) was formed to take over Hatton Bank and the Kandy and NuwaraEliya branches of Grindlays Bank. (Grindlays had inherited these branches from its merger with National Bank of India (NBI). NBI had established the branches in 1892. By giving up the two branches Grindlays earned the right to continue to operate its branch in Colombo, which NBI had established in 1881, serving corporate business.) A share issue shortly thereafter changed the ownership structure of Hatton National Bank. After the share issue, Brown & Co and National &Grindlays owned 37% and 28% each respectively, while 35% of the company was in public ownership.[1] In 1974 HNB acquired Mercantile Bank of India’s branches in Pettah and Colombo, as well as a part interest in Mercantile (a subsidiary of HSBC since 1959, which retained its branch in Colombo).

More recently, in 1989 HNB acquired Emirates Bank International's Colombo branch as well as their Sri Lankan Foreign Currency Banking Unit. Seven years after that, HNB acquired Banque Indosuez’s Colombo branch.

In 2000 HNB opened a representative office in Karachi, Pakistan, and another in Chennai, India. Two years later, HNB acquired the Sri Lankan branches of Habib Bank A.G. Zurich. HNB planned to use them as the base for the bank's entry into Islamic banking.

02. Internal & External Analysis of Hatton National Bank

1.1 What is SWOT Analysis?
It means a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.

1.3 SWOT Analysis of HNB
Strengths
Weaknesses
1. HNB is the large innovative service provider to the customers. 2. Offered high interest rates & additional bonus on minimum deposit amount. 3. Expand its reach to rural areas
4. Diversification in their operation in banking assets management and increase the facility for mobile & internet banking 5. Highly diversified customers portfolio
6. Have succession plan through talent management team
7. Increase earnings per share than previous year
8. Increases in shareholder fund and earning
9. Bank has a wide product line
10. Network of branches spread all over the country and provide easy access to entire spectrum of customers 11. Improved access to financial service for customers
12. Enhance higher ATM coverage in the country
1. Bank is not aligned...
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