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The practice of banking goes back many centuries, as far back as the history of money itself – and, of course, money changers who created the first full-service banks. In Sri Lanka, too, the story of banking is rooted in the arrival, in the mid 1600s, of the Nattukottai Chettiars, a community of merchant bankers who provided the capital that largely financed the island’s trading and commercial activities until the middle of the nineteenth century.
The first commercial bank – British-owned, as one would expect – was established in 1841. Soon, several other British banks followed and banking assumed a predominant status in the country’s economy. Over the years and up until the present, banking has continued to contribute significantly towards the growth of the import-export trade and the wholesale and retail trade. It has also played a leading role in the development of the agricultural, industrial and plantations sectors. Banking also plays a significant role in a society’s ability to save, transact and invest in itself.
Banking is not a collection of buildings or financial instruments, but a service. A thriving banking sector pays attention to its human capital, changing national trends and modern technologies that open new doors to new opportunities.
Sampath Bank is one of the banks driving modern trends in banking, and opening a progressive new chapter in the banking story of Sri Lanka.
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ACHIEVEMENTS
In 2005, the South Asian Federation of Accountants (SAFA) selected Sampath Bank’s Annual Report 2004 as the runner-up in the Banking Institution category for Best Presented Accounts. In 2005, Sampath was adjudged by The National Chamber of Commerce of Sri Lanka as the Best Corporate Citizen in the Top Ten Category and was also the joint winner in the Best Economic Performance Category. In 2000, the bank was chosen Bank Of The Year in Sri Lanka by the prestigious The Banker magazine. In 1999, Forbes Global magazine listed Sampath Bank among the Best 300 Small Companies In The World. In 1998, in appreciation of innovative steps taken by the bank, Sampath was presented the Outstanding New Business Venture Project award by the Asian Banking Digest. It was also named the Best Commercial Bank in Sri Lanka by Asiamoney magazine in 1996, 1997 and 1998.
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HISTORY
Sampath Bank commenced business in early 1987 as the Investment and Credit Bank. In September 1987, the name was changed to Sampath Bank Limited. The bank has had a broadbased shareholding from the time its shares were quoted on the local stock exchange – at that time, in fact, it had the largest number of shareholders (over 18,000) for a public-quoted company in Sri Lanka.
The bank was an immediate success; and it revolutionised the banking industry in Sri Lanka by introducing customer-centric products and services, and drastically reducing transaction times. Blending modern technology with a strong sense of national consciousness was the secret of its success. This was evident in the first Sampath tagline, ‘A truly Sri Lankan bank for sons of the soil’. The bank has thus evolved steadily, growing its asset base and shareholder wealth – and it continues to be an industry leader.
Value addition has been its main strength. It invests in technology, and employs dynamic and self-motivated professionals to enhance its service capabilities. Innovation, teamwork and high ethical standards have contributed to the success of Sampath Bank. It is, today, the leader in information technology in the financial-services industry in Sri Lanka.
In what is a relatively short time span, Sampath Bank has produced many firsts. It 
was the first local bank in Sri Lanka to be fully computerised and the first to issue MasterCards. It was also the pioneer in networked Automated Teller Machines (ATMs) and the first bank in Sri Lanka to introduce telephone banking. The bank was also the first in South Asia to issue debit cards, when it added the Cirrus and Maestro facilities to SET – the bank’s ATM card.
The bank has also introduced internet and mobile banking, and it is a principal member of MasterCard and Visa. A staff strength of some 1,900 and a network of 89 branches in Sri Lanka – which are all on-line, real-time – is testimony to the bank’s impressive growth over the years.
In recent years, Sampath Bank has grown into a group comprising four subsidiaries – namely, Sampath Centre, Sampath Surakum, Sampath Leasing and Factoring, and SC Securities. The bank has also ventured overseas with Lanka Bangla Finance Ltd and Lanka Bangla Securities Ltd.
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PRODUCT
Sampath has also been a trailblazer in Information Technology (IT) and Transmission Control Protocol/Internet Protocol (TCP/IP) in communications. Regularly acquiring cutting-edge technology, it localises this aspect to make it more adaptable and suitable to meet the needs of customers. Indeed, it is the first bank to bring virtual banking to the doorstep of even remote rural areas in the country. And with an increased awareness among the public of the myriad services offered by competing banks, Sampath is creating new opportunities for its customers and the public with its pioneering IT services.
Sampath Bank has continued to pursue process improvements to its credit-card portfolio along the lines of internationally accepted best practices. It has also introduced numerous value additions for the benefit of its cardholders.
Visa Platinum has become a brand that signifies panache and chic. Sampath introduced this product to Sri Lanka in 2002, inviting members on a selective basis to enrol and be entitled to numerous exclusive benefits at some of the most sophisticated hotels, restaurants, fashion and jewellery stores, spas and clubs around the world.
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RECENT DEVELOPMENT
Sampath Bank hopes to grow its asset base even quicker in the medium term than in the past, while maintaining an average return on assets of at least 1.5%. It intends to grow into a financial-services group by means of diversification. Its targeted growth areas include leasing, factoring, the corporate and bond market, and increased activity both in government treasury bills and bonds. The bank also hopes to be actively involved in the insurance sector.
Sampath created banking history in 2006, by becoming the first bank in the country to clear all cheques drawn on any branch within 24 hours.
And Sampath Bank continues to be amongst the best in its class in terms of customer-service levels. Its ethos of continuous improvement gathers momentum, as it continues to motivate its team to achieve higher goals with effective training and technology. Innovations will take pride of place, especially in the technology arena, and the bank says it will continue developing products which offer even more convenience to its customers. It has already completed ISO-certification procedures in two areas, and this will certainly have a cascading effect on the bank as a whole. One of its beliefs is that it needs to grow organically in Sri Lanka and also venture out to other SAARC countries.
In 2005, the bank surpassed Rs. 50 billion in total assets. It is prudent in its lending and adheres to the requirements set out by the Central Bank of Sri Lanka. It strictly adheres to the single-borrower limit – and, as such, is not dependent on any one customer or sector of the economy for its income.
Sampath Bank is now augmenting the Direct Credit Settlement Scheme – a credit service for corporate traders, whereby regional dealers of a large trading company are provided with credit to purchase supplies. Through this process, the trading entity is able to outsource a predetermined portion of its credit-sales collections to the bank.
And its Internet Payment Gateway (IPG) is now a virtual national payments gateway, with many public-sector entities, private-sector institutions, NGOs and international relief agencies utilising this facility in recent times. Moreover, in 2005, the national carrier – SriLankan Airlines – joined the ranks of other international airlines to offer on-line ticketing through the bank’s IPG.
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PROMOTION
In 1989, a new concept in personal banking – the Personal Banking Unit (PBU) – was introduced and units were opened in busy suburbs of the capital. Twelve new branches were opened in 2005 – the highest number opened during a calendar year in the bank’s history. Sampath also began operations in the east, with the opening of its 62nd branch in Ampara.
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BRAND VALUES
The best way to measure growth is to check on how it has benefitted stakeholders. Sampath Bank has been built on a strong financial foundation. While being focussed on corporate development and product innovation, the bank has contributed to uplifting the living standards of people across the country. It understands that a strong foundation is crucial to sustaining growth.
Through changing and challenging times, the bank has nurtured its interests; not merely to survive, but to grow beyond expectations and achieve new heights of excellence. It believes not only in changing with the times, but also in staying true to its origins – which is summed up in its pay-off line, We Present Your Future.
Corporate Social Responsibility at Sampath Bank is taken very seriously, identifying and implementing projects that have succeeded in changing lives and creating new opportunities. Every heart touched and every life improved remains a legacy of Sampath Bank’s commitment to make a difference.
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THINGS YOU DONT KNOW ABOUT Sampath Bank
♥ The bank commenced operations in May 1987. The very next year, it was the first to introduce networked ATMs to Sri Lanka.
♥ In 1989, it introduced MasterCard to Sri Lanka, as well as the uni-banking system. In 1994, Sampath Bank was among the first to join the SWIFT network.
♥ In 1997, it introduced debit cards in association with Cirrus and Maestro, for the first time in South-East Asia.
♥ In 2001, the bank became the first local commercial bank to be registered to engage in stock borrowing and lending at the Colombo Stock Exchange.
♥ In 2003, Sampath Bank became the first bank in Sri Lanka to introduce one-day clearing for cheques drawn at any of its branches, collected by any commercial bank in the island and presented through the Sri Lanka Automated Clearing House (SLACH).
♥ In 2006, it was awarded an AA-(lka) national rating by Fitch Ratings (Lanka).
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www.sampath.lk
