Dr Madhu Fernando, Managing Director of Innova Strategies and a Business Consultant representing Global CEO Magazine, had a conversation with one of the most distinguished CEOs in Sri Lanka, Mr Naleen Edirisinghe, CEO of Pan Asia Bank, a bank primarily focuses on SMEs, retail banking, and Corporate banking.
Q: Welcome to Global CEO Magazine. Could you share your journey from the Commercial Bank of Ceylon to Pan Asia Bank? How did you come this far?
I started my banking career at Commercial Bank just after my A-Levels. The Commercial Bank taught me a great deal because it’s one of the largest private banks in Sri Lanka. It has been my guru in banking, and I stayed there for nearly 11 years. After that, I joined NDB in 1998, where I learned project financing. Then, in 2000, I joined Pan Asia Bank, where I’ve spent the last 24 years. This is where I truly grew into a CEO.
Q: The journey must have been tough to rise to the position of CEO, especially at one of the most respected banks in Sri Lanka. We’ve seen that in the first half of this year, Pan Asia Bank achieved almost 2 billion in profit before tax. Am I right?
Yes, that’s correct. The journey has been challenging, but it has also been rewarding. I started as an Assistant Manager at Pan Asia Bank and worked my way up through various roles. I’ve handled credit for a long time and have worked with many industries. Rising in a bank is tough, as there are many peers also aspiring to become CEOs. Seniority alone doesn’t guarantee advancement, but when you have 2 people with the same skills, calibre, and qualifications, then yes, seniority counts.
Q: What motivated you to join Pan Asia Bank, and how has your experience influenced your achievements?
I believe joining Pan Asia Bank was a good decision at the time. I was with one of the best banks in the country, but I was eager to acquire new banking knowledge, which I found at NDB. I enjoy taking on challenges, so when the opportunity arose to contribute to a smaller organisation like Pan Asia Bank and help it grow, I took it.
Q: How have you tackled the market challenges?
Pan Asia Bank is primarily focused on SMEs and retail banking. While we have traditionally concentrated on these sectors, we are now shifting towards corporate banking as well. SME and retail banking are challenging markets, as SMEs are highly vulnerable, and retail banking is heavily dependent on the country’s economic situation. However, it’s the credit officer’s skill to assess each situation and support those in need.
Q: We’ve also heard that Pan Asia Bank is excelling in customer service. You took over as CEO in 2023. What were your priorities, and have you achieved them?
Yes, I’ve been part of the Corporate management of this bank since 2013, so I knew our focus and strategies. When I took over, it was just after the Easter attack, the COVID pandemic, and the economic crisis. We decided that our priority should be to support businesses, as they were the most affected. By supporting businesses, we knew the retail segment would also improve.
Q: With the macroeconomic situation in the country improving slightly, how has Pan Asia Bank performed in the last half-year?
Things are definitely better. The economy is growing, and we see our lending and deposits increasing, especially in the SME sector. However, segments like consumer loans and credit cards aren’t growing as much due to the reduced purchasing power of retail customers. This is challenging, but we’re hopeful that as businesses recover, retail will improve as well.
Q: What other challenges are you facing besides the macroeconomic situation?
As a bank, we face various challenges. One significant issue is retaining good staff, as many are leaving for opportunities abroad. Additionally, we’re dealing with digital disruption, which requires us to stay competitive with other banks. It’s a tough task, but Central Bank guidelines on IT security and risk resilience are helping us stay aligned.
Q: How do you balance innovation with IT security, especially with the rise in cybercrimes?
The Central Bank has implemented a risk resilience programme that we must follow, ensuring our alignment with its guidelines. We’re also working to improve ourselves in digital disruption, even though we’ve been slower compared to a few other banks. We’re striving to elevate ourselves in this segment.
Q: We’d like to introduce you as the CEO of CEOs, given your role in helping SMEs grow into much larger organisations. What are your thoughts on this?
If you’re referring to me becoming a global CEO, it’s mainly due to our export customers. Our SME portfolio is significant, and we’re committed to supporting them as they go global. For example, we conducted a programme in Ella, one of Sri Lanka’s top tourist destinations, to support tourist related entrepreneurs. This is how we contribute to making SMEs global, which, in turn, elevates our bank to a global level.
Q: What are your plans for the future, both for the bank and the country?
We aim to become a bigger bank. We have a clear focus and strategic steps to achieve this. We’re committed to supporting Sri Lanka’s economy as it recovers from a difficult period. We want to help make Sri Lanka one of the best countries in the world.
Q: Finally, could you share your leadership style and vision for the future?
I consider myself a participative leader. I listen to others and am willing to change decisions if they’re not yielding the desired results. However, I also make decisions quickly because there’s no time to waste. Organizations need to work fast to stay competitive.
In one sentence, our vision is to transform Pan Asia Bank from a relatively small bank to a mid-sized bank within the next three years, while also pursuing global opportunities.
