Annual Report 2012 - National Savings Bank

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110ASSESSING AND MANAGING OUR RISK FACTORSRISK MANAGEMENTinternal controls and reporting thendings with recommendations to therelevant Board and Operational LevelCommittees.The CC, ALCO, Executive RiskManagement Committee (ERMC)and the Integrated Risk ManagementCommittee (IRMC) review the creditrisk assessments.In order to carry-out credit riskmanagement activities at operationallevel the Bank has strengthenedand streamlined the Credit RiskManagement Unit (CRMU) within theCredit Division under the supervisionof Risk & Compliance Division.Credit Risk Exposures of theBankThe total Credit Exposure which is33.1% of the Bank’s total assets is theBank’s second major line of business(The investment in risk free securities is62.0% of total assets-based on SLFRS).Hence the magnitude of credit risk iscomparatively low to the Bank, albeitthe fact that the Bank considers creditrisk as a major type of risk.The credit exposure of the Bank iscreated from two main categories i.e.‘lending to banks’ and ‘lending toother customers’ such as corporateand retail borrowers, Government andGovernment Institutions.NSB’s Credit risk mainly arises from‘lending to other customers’ whichis 92% of the total Credit Exposurecreated by the conventional On-Balance Sheet items i.e Term Loans,Debentures, Trust Certicates andSecuritisation and Off-Balance Sheetitems such as Guarantees and Bonds.Credit risk which is created through thewholesale lending or ‘lending to banks’i.e. funding short-term and mediumtermfund requirements of the Banksvia short-term loans, Debentures,Securitised Instruments, Trust Receiptsetc. represents 8% of the total CreditExposure.Credit Exposure is based on the level ofsecurity depicted that 90% representssecured loans and 10% representsunsecured loans. Loans which arebacked by property represents the largestportion (35%) of the secured categoryof Loans and Advances and pawningCredit Exposure - Based on Loan Category (based on SLFRS)92%8%Loans and Receivables to BanksLoans and Receivables to Other CustomersNATIONAL SAVINGS BANK . ANNUAL REPORT 2012
111ASSESSING AND MANAGING OUR RISK FACTORSRISK MANAGEMENTwhich is backed by gold represents thesecond largest portion (34%). The cashbacked credit represents 13% of thesecured loan portfolio.Credit Exposure - Based on Level of Security (based on SLFRS)10%Management of the CreditPortfolio• Portfolio AnalysisThe credit portfolio analysis enablesthe Bank to monitor the credit riskattached to different loan categoriesas well as to the entire credit portfolio.Comprehensive reports are submittedto the Risk Management Committeessetting-out detailed risk evaluation aswell as suggested mitigation actions.The risk evaluation of retail exposuresare mainly based on rate-wise / size-wiseloan portfolio analysis, computation ofWeighted Average Rate of each retailloan category, NPL analysis, marketvalue based analysis, insurance coverand industry analysis.90%Secured Loans and Advances14% 4%13%34%35%SecuredUnsecuredCashPropertyGoldSovereign GuaranteeOtherNATIONAL SAVINGS BANK . ANNUAL REPORT 2012
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ROOTEDANNUAL REPORT 2012
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ROOTEDNATIONAL SAVINGS BANK l ANNUA
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5MISSIONProviding our customers wit
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7ROOTEDFor over 40 years, the Natio
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92000Establishment of subsidiary co
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11HOW WE PERFORMED IN 2012FINANCIAL
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13CHAPTER 1FIRMLY ANCHOREDSTRATEGY
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15A MESSAGE FROM MR SUNIL S. SIRISE
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17A MESSAGE FROM MR SUNIL S. SIRISE
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19A REVIEW BYMR. HENNAYAKE BANDARAG
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21A REVIEW BY MR HENNAYAKE BANDARAG
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23A REVIEW BY MR HENNAYAKE BANDARAG
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25CHAPTER 2HOW WE PERFORMED IN 2012
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33HOW WE PERFORMED IN 2012ECONOMIC
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35HOW WE PERFORMED IN 2012ECONOMIC
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37HOW WE PERFORMED IN 2012ACHIEVEME
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39HOW WE PERFORMED IN 2012OPERATION
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51HOW WE PERFORMED IN 2012FUTURE PL
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53CHAPTER 3ROOTED IN OUR HERITAGEGO
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55ROOTED IN OUR HERITAGEGOVERNANCE
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57ROOTED IN OUR HERITAGEGOVERNANCE
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Page 91 and 92: 89ROOTED IN OUR HERITAGEGENERAL MAN
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Page 105 and 106: 103CHAPTER 4ASSESSING AND MANAGING
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Page 139 and 140: 137CHAPTER 5BRANCHING OUT INTO NEW
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161BRANCHING OUT INTO NEW VENTURESS
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173BRANCHING OUT INTO NEW VENTURESG
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183CHAPTER 6THE RESULTS OF A CHALLE
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185THE RESULTS OF A CHALLENGING YEA
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251CHAPTER 7ANNEXURESNATIONAL SAVIN
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253STATEMENT OF FINANCIAL POSITION
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255TEN YEARS AT A GLANCE(Rs Mn)Year
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257OUR PRODUCTS AND SERVICESSAVINGS
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259OUR PRODUCTS AND SERVICES19. Ran
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261OUR PRODUCTS AND SERVICESOUR EXT
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263BRANCH NETWORKCentral Province1.
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265CORRESPONDENT BANKSCiti Bank NA,
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267EXCHANGE COMPANIESHabib Qatar In
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269GLOSSARYCredit RatingsAn evaluat
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271GLOSSARYReturn on Average Assets
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273CORPORATE INFORMATIONCOMPLIANCE
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Annual Report 2012 - National Savings Bank

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