HNB බංකොලොත්?

[Sajam]

Hatton National Bank (HNB), once the pride of Sri Lanka’s financial sector, is now doing the corporate equivalent of checking its pockets for loose change. With billions in bad loans, questionable lending practices, and a loan book that looks more like a “who’s who” of financial disasters, HNB is teetering on the edge of a banking catastrophe.

When Your Biggest Borrower Buys an MRI Instead of Paying You Back​

Enter Nawaloka Hospitals, one of HNB’s many “valued” clients. Nawaloka, which already owed a staggering Rs. 0.63 billion to HNB, somehow found the funds to buy a fancy AI-powered MRI machine worth USD 1.3 million (Rs. 1.33 billion)—a machine so advanced, it can probably detect financial stupidity in real-time.

This purchase comes at a time when HNB is struggling to recover payments from Nawaloka, which has total debts of Rs. 2.3 billion spread across multiple banks. While HNB had tried to auction off Nawaloka’s hospital premises in Colombo 02, the hospital managed to get a temporary court order blocking the auction—essentially saying, "Sorry, we can’t pay, but we’ll keep the building, thanks!"

HNB’s Brilliant Loan Strategy: Give Money to Companies That Can’t Pay It Back​

Nawaloka isn’t the only problem on HNB’s books. The bank has also handed out large loans to Softlogic PLC, which is now itself struggling under the weight of foreign borrowings and financial mismanagement. It’s like HNB had a "give loans to companies in trouble" policy—and they stuck to it religiously.


Then there’s the Harry Jayawardhan saga, where HNB reportedly issued unauthorized loans for travel-related businesses and even provided fake letters of credit to facilitate some very sketchy transactions. The situation has gotten so bad that regulators are now investigating whether HNB was running a bank or a very expensive financial illusion.

HNB’s Deposit Holders: "Should We Be Worried?" (Spoiler: Yes.)​

For HNB depositors, things are looking… well, concerning. Economic experts warn that if HNB is forced to write off these bad loans as irrecoverable debts, the bank may struggle to repay depositors’ money.

In other words, if you have savings at HNB, you might want to start casually glancing at other banks.

The Government’s Role: Making It Worse, Of Course​

Just when HNB hoped to seize assets and recover some of its bad loans, the Sri Lankan government stepped in to help… not the bank, but the defaulters. The Cabinet, led by Ranil Wickremesinghe, decided to suspend ‘Parate executions’, effectively preventing banks from auctioning off properties to recover bad loans.

Two days later, the Court of Appeal issued an interim order preventing HNB from taking legal action against Nawaloka—meaning that while the hospital continues to expand its medical equipment collection, HNB gets to sit and watch its money vanish into the abyss.

The Big Question: Can HNB Survive This?​

With bad debts piling up, investigations into fake financial documents, and depositors getting nervous, HNB is at serious risk of becoming Sri Lanka’s next big financial collapse. If the situation isn’t addressed soon, it could lead to:

• Higher interest rates (because someone has to pay for HNB’s mistakes).
• Less credit for SMEs (because big corporations have already maxed out HNB’s generosity).
• A total loss of confidence in the banking sector(because depositors don’t like playing Russian roulette with their savings).

For now, HNB’s leadership insists that everything is under control—which, historically speaking, is exactly what people say right before things go very, very wrong.

Source: https://www.lankaenews.com/news/4284/en

මේකටත් කෙල වෙයිද?

 

[Hamu mahaththaya1]

hoda wade parayonta.. salli dala thiyenawa nam itin aran wena ekak daganilla

 

[iworld]

ඕක විතරයි හොද සර්විස් එකක් දෙන්නෙ ඒකටත් කෙලින්න හදන්නෙ

 

[Bitter Truth]

ලංකා ඊ නිව්ස්

 

[Matsola]

 

[Jack_Sparrow]

Nawaloka beraganna ranil seeya karapu weden tamai paththu une habai ehema banks waalata watenna denneth naha CB eken
ehema watunoth mulu banking sector ekama kela wenawa

wediya oni naha lease company tika balance karanna vehicle tax eka wedi kale

 

[nidarsha91]

Totally fake. You can't compete with HNB.

 

[Bitter Truth]

මූ තම්බියෙක්ද කොහෙද..පච ගහල බැංකු වට්ටන්න හදනවා

 

[Nidarshana_k]

when i was working in nawaloka there was so much internal struggle that employees were always talking about it. somehow two darmadasa brothers got separated and when one of the brother took the negombo hospital ownership , his employees deleted banking records and payment records from main servers and fled to negombo.

i don't know if its real or not but that's what people were talking.

 

[Naughtykolla48]

I have borrowed from HNB,

Should I stop paying?

---

Key Points​

• Hatton National Bank of Sri Lanka shows strong financial performance in 2024, with profits and asset quality improving.
• The bank's credit rating is 'AA-(lka)' with a stable outlook, suggesting reliability.
• Sri Lanka's economy is stabilizing, which supports the bank's growth.
• No recent regulatory issues or major concerns were found, but economic risks remain possible.

Financial Overview​

Hatton National Bank, a leading private bank in Sri Lanka, reported robust financial results for 2024. The bank's profit after tax increased to Rs 41.3 billion from Rs 20.3 billion in 2023, with total assets crossing Rs 2.0 trillion. Loans and advances grew by Rs 117.8 billion, and deposits increased by Rs 135.7 billion, indicating strong customer trust. The stage 3 ratio, a measure of non-performing loans, improved to 1.88% from 3.76% in 2023, reflecting better asset quality.

Credit Rating and Stability​

The bank holds a 'AA-(lka)' national long-term rating from Fitch Ratings, with a stable outlook as of January 2025 (Fitch Ratings). This high rating suggests the bank is financially sound and capable of meeting its obligations, which is reassuring for customers and investors.

Economic Context​

Sri Lanka's economy is showing signs of recovery, with a projected growth of 2.5% in 2025 (World Bank). This improving environment supports the bank's operations, especially in sectors like tourism and remittances, which are rebounding.

Should You Be Worried?​

Given the bank's strong financials and the stable economic outlook, there is no immediate need to worry about Hatton National Bank's stability. However, as with any financial institution, external economic risks, such as potential debt challenges, could arise. It's wise to stay informed, but current data suggests the bank is in a solid position.

---

Survey Note: Detailed Analysis of Hatton National Bank's Financial Situation​

Hatton National Bank PLC (HNB), established in 1888 and a premier private sector commercial bank in Sri Lanka, has demonstrated resilience and growth, particularly in its 2024 financial performance. This analysis delves into the bank's financial metrics, credit ratings, economic context, and potential concerns, providing a comprehensive overview for stakeholders.

​

------ Post added on Mar 27, 2025 at 7:13 PM

---

Financial Performance in 2024​

HNB's financial results for 2024, as reported in February 2025, indicate significant improvement. The bank's profit after tax (PAT) for the group reached Rs 44.8 billion, up from Rs 23.6 billion in 2023, while the bank's PAT increased to Rs 41.3 billion from Rs 20.3 billion, excluding the impact of International Sovereign Bond (ISB) restructuring. This represents a 45% year-on-year growth, driven by a 7.5% expansion in total assets, which crossed Rs 2.0 trillion. Gross loans and advances grew by Rs 117.8 billion, reaching Rs 1.16 trillion, despite a drop in the first quarter of 2024. Deposits also saw robust growth of Rs 135.7 billion, with the total deposit base at Rs 1.7 trillion, reflecting an 8.6% year-on-year increase. Current and savings account (CASA) deposits grew by Rs 113.5 billion, improving the CASA ratio to 34.2% from 29.9% in 2023, indicating strong liquidity.
The bank's net interest income declined by 21.6% year-on-year due to monetary policy relaxation, but this was partially offset by lower interest expenses. Net fee and commission income rose by 12.7% to Rs 17.8 billion, driven by digital platforms and card services. However, an exchange loss of Rs 2.9 billion was recorded due to the appreciation of the Sri Lankan Rupee (LKR) against the US Dollar. Impairment charges on loans and receivables totaled Rs 11.5 billion, with the net stage 3 ratio improving to 1.88% from 3.76% in 2023, and the stage 3 provision coverage ratio increasing to 74.4% from 57.5%, signaling enhanced asset quality.
The ISB restructure had a notable impact, reversing Rs 91.6 billion in provisions and recognizing a Rs 49.5 billion loss, with a net PAT impact of Rs 11.8 billion, comprising 30% LKR bonds and 70% USD bonds with a 10% haircut. Despite this, the bank's capital adequacy remained strong, with a Tier 1 ratio of 19.59% and a total capital adequacy ratio of 23.96%, both well above regulatory minimums of 9.5% and 13.5%, respectively. The liquidity coverage ratio stood at 331.5%, exceeding the minimum 100%, further underscoring financial stability.
HNB also proposed a cash dividend of Rs 15.00 per share for both voting and non-voting shares, subject to shareholder approval, with trading ranges for voting shares between Rs 155.00 and Rs 319.75, and non-voting shares between Rs 128.00 and Rs 256.75, reflecting market confidence.

Credit Rating and Market Perception​

HNB's credit rating from Fitch Ratings is 'AA-(lka)' with a stable outlook, as confirmed in January 2025 following a scale recalibration (Fitch Ratings). This rating reflects the bank's strong domestic franchise, satisfactory capitalization, and stable operating performance. However, Fitch notes limited upside potential due to a higher risk appetite and weaker through-the-cycle asset quality compared to peers. A material increase in risk-taking, unless mitigated by capital and financial performance, could lead to a downgrade, but current ratings suggest stability.

Economic Context and External Factors​

Sri Lanka's economy, which faced a severe crisis in 2022, is showing signs of stabilization. The World Bank reports a 5% growth in the first quarter of 2024, driven by industrial and tourism sectors, with a projected growth of 2.5% in 2025 (World Bank). The Asian Development Bank forecasts a similar 2.6% growth in 2024 and 2.8% in 2025, supported by reforms and improved consumer sentiment (ADB). Inflation is expected at 3.8% in 2024 and 5.5% in 2025, with a small current account surplus anticipated, though high debt service obligations may pressure fiscal balances.
This recovery is crucial for HNB, given its exposure to sectors like tourism and remittances, which are rebounding. However, challenges such as potential debt sustainability issues and external shocks, like geopolitical tensions, could pose risks. The bank's digital-first strategy and focus on microfinance and SME banking position it well to capitalize on economic recovery, as evidenced by initiatives like the Gami Pubuduwa scheme and HNB FIT, an IoT banking product promoting fitness and financial benefits.

Regulatory and Operational Considerations​

No recent regulatory issues or penalties were identified for HNB, and the bank complies with Central Bank of Sri Lanka guidelines, maintaining strong capital and liquidity ratios. Its extensive network, with over 250 customer centers and 820 ATMs, underscores operational reach, and awards like 'Best Retail Bank in Sri Lanka' multiple times reflect market leadership. However, the bank's higher risk appetite, as noted by Fitch, warrants monitoring, especially in a volatile economic environment.

​

------ Post added on Mar 27, 2025 at 7:14 PM

 

[Naughtykolla48]

Should You Be Worried?​

Given the detailed financial metrics, HNB appears financially sound with no immediate cause for concern. The bank's strong 2024 performance, high credit rating, and alignment with a recovering economy suggest stability. However, as with any financial institution, external economic risks, such as potential debt challenges or currency fluctuations, could impact future performance. Stakeholders are advised to stay informed, particularly given the bank's exposure to domestic economic conditions, but current data leans toward confidence in HNB's reliability.

Comparative Table: Financial Highlights (2024 vs. 2023)​

Metric	2024 Value	2023 Value
Group Profit After Tax (PAT)	Rs. 44.8 billion	Rs. 23.6 billion
Bank Profit After Tax (PAT)	Rs. 41.3 billion	Rs 20.3 billion
Total Assets	> Rs. 2.0 trillion	-
Gross Loans and Advances Growth	Rs. 117.8 billion	-
Deposits Growth	Rs. 135.7 billion	-
Net Stage 3 Ratio	1.88%	3.76%
Tier 1 Capital Adequacy Ratio	19.59%	-
Total Capital Adequacy Ratio	23.96%	-

This table highlights the bank's improved financial health, particularly in profitability and asset quality, supporting the conclusion of stability.
In summary, Hatton National Bank's current financial situation is strong, and while no major concerns were found, ongoing monitoring of economic trends is recommended for long-term confidence.

Key Citations​

• Hatton National Bank PLC Annual Report 2023
• HNB Group records sustainable growth in 2024
• Fitch Ratings Hatton National Bank PLC
• World Bank Sri Lanka Economy Stabilization
• ADB Sri Lanka Economic Recovery

 

[Sajam]

I have borrowed from HNB,

Should I stop paying?

---

Key Points​

• Hatton National Bank of Sri Lanka shows strong financial performance in 2024, with profits and asset quality improving.
• The bank's credit rating is 'AA-(lka)' with a stable outlook, suggesting reliability.
• Sri Lanka's economy is stabilizing, which supports the bank's growth.
• No recent regulatory issues or major concerns were found, but economic risks remain possible.

Financial Overview​

Hatton National Bank, a leading private bank in Sri Lanka, reported robust financial results for 2024. The bank's profit after tax increased to Rs 41.3 billion from Rs 20.3 billion in 2023, with total assets crossing Rs 2.0 trillion. Loans and advances grew by Rs 117.8 billion, and deposits increased by Rs 135.7 billion, indicating strong customer trust. The stage 3 ratio, a measure of non-performing loans, improved to 1.88% from 3.76% in 2023, reflecting better asset quality.

Credit Rating and Stability​

The bank holds a 'AA-(lka)' national long-term rating from Fitch Ratings, with a stable outlook as of January 2025 (Fitch Ratings). This high rating suggests the bank is financially sound and capable of meeting its obligations, which is reassuring for customers and investors.

Economic Context​

Sri Lanka's economy is showing signs of recovery, with a projected growth of 2.5% in 2025 (World Bank). This improving environment supports the bank's operations, especially in sectors like tourism and remittances, which are rebounding.

Should You Be Worried?​

Given the bank's strong financials and the stable economic outlook, there is no immediate need to worry about Hatton National Bank's stability. However, as with any financial institution, external economic risks, such as potential debt challenges, could arise. It's wise to stay informed, but current data suggests the bank is in a solid position.

---

Survey Note: Detailed Analysis of Hatton National Bank's Financial Situation​

Hatton National Bank PLC (HNB), established in 1888 and a premier private sector commercial bank in Sri Lanka, has demonstrated resilience and growth, particularly in its 2024 financial performance. This analysis delves into the bank's financial metrics, credit ratings, economic context, and potential concerns, providing a comprehensive overview for stakeholders.

​

------ Post added on Mar 27, 2025 at 7:13 PM

---

Financial Performance in 2024​

HNB's financial results for 2024, as reported in February 2025, indicate significant improvement. The bank's profit after tax (PAT) for the group reached Rs 44.8 billion, up from Rs 23.6 billion in 2023, while the bank's PAT increased to Rs 41.3 billion from Rs 20.3 billion, excluding the impact of International Sovereign Bond (ISB) restructuring. This represents a 45% year-on-year growth, driven by a 7.5% expansion in total assets, which crossed Rs 2.0 trillion. Gross loans and advances grew by Rs 117.8 billion, reaching Rs 1.16 trillion, despite a drop in the first quarter of 2024. Deposits also saw robust growth of Rs 135.7 billion, with the total deposit base at Rs 1.7 trillion, reflecting an 8.6% year-on-year increase. Current and savings account (CASA) deposits grew by Rs 113.5 billion, improving the CASA ratio to 34.2% from 29.9% in 2023, indicating strong liquidity.
The bank's net interest income declined by 21.6% year-on-year due to monetary policy relaxation, but this was partially offset by lower interest expenses. Net fee and commission income rose by 12.7% to Rs 17.8 billion, driven by digital platforms and card services. However, an exchange loss of Rs 2.9 billion was recorded due to the appreciation of the Sri Lankan Rupee (LKR) against the US Dollar. Impairment charges on loans and receivables totaled Rs 11.5 billion, with the net stage 3 ratio improving to 1.88% from 3.76% in 2023, and the stage 3 provision coverage ratio increasing to 74.4% from 57.5%, signaling enhanced asset quality.
The ISB restructure had a notable impact, reversing Rs 91.6 billion in provisions and recognizing a Rs 49.5 billion loss, with a net PAT impact of Rs 11.8 billion, comprising 30% LKR bonds and 70% USD bonds with a 10% haircut. Despite this, the bank's capital adequacy remained strong, with a Tier 1 ratio of 19.59% and a total capital adequacy ratio of 23.96%, both well above regulatory minimums of 9.5% and 13.5%, respectively. The liquidity coverage ratio stood at 331.5%, exceeding the minimum 100%, further underscoring financial stability.
HNB also proposed a cash dividend of Rs 15.00 per share for both voting and non-voting shares, subject to shareholder approval, with trading ranges for voting shares between Rs 155.00 and Rs 319.75, and non-voting shares between Rs 128.00 and Rs 256.75, reflecting market confidence.

Credit Rating and Market Perception​

HNB's credit rating from Fitch Ratings is 'AA-(lka)' with a stable outlook, as confirmed in January 2025 following a scale recalibration (Fitch Ratings). This rating reflects the bank's strong domestic franchise, satisfactory capitalization, and stable operating performance. However, Fitch notes limited upside potential due to a higher risk appetite and weaker through-the-cycle asset quality compared to peers. A material increase in risk-taking, unless mitigated by capital and financial performance, could lead to a downgrade, but current ratings suggest stability.

Economic Context and External Factors​

Sri Lanka's economy, which faced a severe crisis in 2022, is showing signs of stabilization. The World Bank reports a 5% growth in the first quarter of 2024, driven by industrial and tourism sectors, with a projected growth of 2.5% in 2025 (World Bank). The Asian Development Bank forecasts a similar 2.6% growth in 2024 and 2.8% in 2025, supported by reforms and improved consumer sentiment (ADB). Inflation is expected at 3.8% in 2024 and 5.5% in 2025, with a small current account surplus anticipated, though high debt service obligations may pressure fiscal balances.
This recovery is crucial for HNB, given its exposure to sectors like tourism and remittances, which are rebounding. However, challenges such as potential debt sustainability issues and external shocks, like geopolitical tensions, could pose risks. The bank's digital-first strategy and focus on microfinance and SME banking position it well to capitalize on economic recovery, as evidenced by initiatives like the Gami Pubuduwa scheme and HNB FIT, an IoT banking product promoting fitness and financial benefits.

Regulatory and Operational Considerations​

No recent regulatory issues or penalties were identified for HNB, and the bank complies with Central Bank of Sri Lanka guidelines, maintaining strong capital and liquidity ratios. Its extensive network, with over 250 customer centers and 820 ATMs, underscores operational reach, and awards like 'Best Retail Bank in Sri Lanka' multiple times reflect market leadership. However, the bank's higher risk appetite, as noted by Fitch, warrants monitoring, especially in a volatile economic environment.

​

------ Post added on Mar 27, 2025 at 7:14 PM

උඹ HNB එකේද වැඩ?

 

[sinhawanshaya]

මූ තම්බියෙක්ද කොහෙද..පච ගහල බැංකු වට්ටන්න හදනවා

යකො එකටක් අහක යන ත්මබියෙක්. තම්බි විතරද බොරු කියන්නෙ

 

[san**]

ලංකාව තුන් හතර පාරක් බංකොලොත් උනත් HNB බංකොලොත් වෙන්නේ නෑ ..

 

[Naughtykolla48]

උඹ HNB එකේද වැඩ?

ලෝන් එකක් අරන් තියෙන්නේ?
ගෙවනවද නැත්තන් පොල්ල තියන්න පුලුවන්ද කියලා බලන්නේ..

 

[Hapuwa]

ලංකාව තුන් හතර පාරක් බංකොලොත් උනත් HNB බංකොලොත් වෙන්නේ නෑ ..

Ow government eken salli print karala hari liquidity inject karanawa. Not good for LKR depositors though.

 

[proximacentauri2025]

AI-powered MRI machine worth USD 1.3 million (Rs. 1.33 billion)
munge claculation nam boru

 

[pramodh87]

Lankaenews කිව්වා නම් බය වෙන්න දෙයක් ඇත්තෙම නෑ.

 

[ob_server]

---

23/24 financial year eke wedima profit karapu bank eka - HNB
& Wedima profit karapu companies atharin 2nd place.
------ Post added on Mar 27, 2025 at 7:41 PM

 

[$onny]

HNB nam ahema wei kiyala hithanna amarui ban.

Hamuge saubagya thamai