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University of Sri Jayewardenepura Faculty of Graduate Studies

Postgraduate Diploma in Applied Finance 2012/2013

FIN 5105 – Bank Management

Evaluating the Performance of Commercial Bank of Ceylon and Hatton National Bank

Lecturer Mr. S.N.B.M.W.Narayana

Group Assignment Submitted in partial fulfillment of the Postgraduate Diploma in Applied Finance

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Group Members

1. 2. 3. 4. 5.

Hiranya Disanayake Inoka Sanjeewani Kirani Perera D.D Kulathunga Nilusha Peiris

-GS/PGD/APF/65 -GS/PGD/APF/79 -GS/PGD/APF/73 -GS/PGD/APF/68 - GS/PGD/APF/71

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Acknowledgements

We would like to express the deepest appreciation to our lecturer Mr. S.N.B.M.W.Narayana, who has directed us in writing this assignment.

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Executive Summary
The purpose of this study is to analyse the performance of two private sector leading commercial banks namely Commercial Bank of Ceylon PLC and Hatton National Bank Limited. The main reasons for the selections were the highest assets base and growth performance compared with other banks in the industry. Our analysis of these two banks is based on the comparison of main components including, corporate governance, risk management, and financial analysis.

Chapter one introduces the

contextual outlook of the two Banks. This includes vision

mission, objectives and the competitive position of the two banks.

Chapter Two reviews the Corporate Governance of the Banks. We have analysed the compliance of code of best practice by the two banks.

Chapter Three explains the performance analysis of the Banks in terms of their profitability, capital adequacy, asset quality, Management capability and liquidity.

Chapter Four analyses banking risks and risk management policies and principals. Initially identifies the main risk categories including credit, liquidity and market of two banks. Secondly

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