Content $GL?LAG?J©.CPDMPK?LAC©0CTGCU©© 56Stakeholder Value Creation Blueprint 57Getting to Know Our Stakeholders and Their Expectations 58Stakeholder Engagement 61Stakeholder Strategies 62Stakeholders 70Customers 84Employees 850CESJ?RMPQ©© 99Society 109EnvironmentShareholders 111 113 SQGLCQQ©.GJJ?PQ 116.CPQML?J© ?LIGLE©\"CNMQGRQ 119.CPQML?J© ?LIGLE©*M?LQ©?LB© BT?LACQ© 121.CPQML?J© ?LIGLE©!?PBQ© 123!F?LLCJ©.PMBSARQ© P?LAF© ?LIGLE 125!F?LLCJ©.PMBSARQ© 2+©,CRUMPI© 127!F?LLCJ©.PMBSARQ©+M@GJC©?LB©2CJC @?LIGLE© 129!F?LLCJ©.PMBSARQ©'LRCPLCR© ?LIGLE© 1310CKGRR?LACQCorporate Banking: Corporate Credit 132Corporate Banking: Commercial CreditCorporate Banking: Development Banking - 134© © .PMHCAR©$GL?LAC© 136Corporate Banking: Development Banking - 138 139 MSME Development 140'LRCPL?RGML?J©\"GTGQGML©2P?BC©1CPTGACQ© 141'LRCPL?RGML?J©\"GTGQGML©'LRCPL?RGML?J©-NCP?RGMLQ© 142'LRCPL?RGML?J©\"GTGQGML© ?LI©,MRCQ©-NCP?RGML© ,-© 144$MPCGEL©!SPPCLAW© ?LIGLE©3LGR©$! 3©Corporate Finance 145Treasury 1480CAMTCPGCQ© 149Support Services 150'LDMPK?RGML©2CAFLMJMEW©© 151Call Centre Operation 152!CLRP?J©!?QF©?LB©,CRUMPI©1CRRJCKCLR©$SLARGML©© 153Subsidiaries 1GW?N?RF?©$GL?LAC©.*!© 1!©1CASPGRGCQ©.TR©*RB©©© 1621?KN?RF©!CLRPC©*RB© 1?KN?RF©'LDMPK?RGML©2CAFLMJMEW©1MJSRGMLQ©*RB© P?LAF©,CRUMPI©,MQRPM© AAMSLRQ©Correspondent Banks and Exchange Companies'LTCQRMP©0CJ?RGMLQ©
50 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceFinancial Performance ReviewSampath Bank’s total ASSETSassets crossed the0Q©© L©K?PI©GL©© Rs Bn?LB©QRMMB©?R©0Q©© L©at the year end. 3502FC© ?LI©GLGRG?RCB©?EEPCQQGTC©CDžMPRQ©RM©NPMKMRC©KMPC© 300retail lending as much as possible, parallel to facilitatingthe existing corporate lending model. 250 301.4 200 259.4 150 169.7 208.2 113.6 23.1 35.2 100 46.9 54.9 66.0 75.7 50 17.0 0 2011 2012 2013 2014 Loans to & Receivable from Financial Assets Other Assets Other Customers Held for TradingDespite the stable performance recorded by Sampath Faced with the uphill task of lending amidst the stubborn ?LI©.*!©DMP©©GL©PCRPMQNCAR©RFC©WC?P©A?L©@C© lack of demand for credit, the Bank sought to alter the lending mix to keep pace with market sentimentsAJ?QQGdžCB©?Q©?L©CVRPCKCJW©AF?JJCLEGLE©MLC©LMR©MLJW©DMP© and improve returns. Accordingly, the Bank initiatedRFC© ?LI©@SR©?JQM©DMP©1PG©*?LI?Q©@?LIGLE©GLBSQRPW©?Q©?© ?EEPCQQGTC©CDžMPRQ©RM©NPMKMRC©KMPC©PCR?GJ©JCLBGLE©?Q©whole. Of the key challenges, the policy decision by the much as possible, parallel to facilitating the existing! 1*©RM©ASR©GLRCPCQR©P?RCQ©U?Q©BCCKCB©RM©@C©RFC©KMQR© AMPNMP?RC©JCLBGLE©KMBCJ ©2FGQ©N?P?BGEK©QFGNJ©JCB©RM©RFC©crucial factor in determining the performance of the branch network accounting for 57.4% of the advancesBank and the banking industry in 2014. for 2014, with corporate lending responsible for 42.6%. 'L©?BBGRGML©RFC© ?LI©?EEPCQQGTCJW©?BMNRCB©PC NPGAGLE©ASSETS strategies across the loan book to achieve maximum K?PICR©NCLCRP?RGML © Q©?©PCQSJR©MD©RFCQC©SLRGPGLE©CDžMPRQ©Following the sluggish credit appetite seen towards the made, Sampath Bank managed to post a credit growth ofend of 2013, the demand for credit continued to slow 14.6% as at the year end.CTCL©DSPRFCP©GL© ©,MR?@JW©RFC©PCBSARGML©GL©K?PICR©interest rates at the start of the year also failed to spark $MJJMUGLE©RFC©BCAGQGML©R?ICL©GL©RFC©?NJCPK?RF©MD©RFC©the anticipated credit momentum, with the industry drop in global gold prices, in 2013, the Bank continuedexperiencing negative credit growth in 1st quarter, RM©PCBSAC©RFC©CVNMQSPC©ML©.?ULGLE©RFPMSEFMSR© ©©DMP©RFC©džPQR©RGKC©GL©PCACLR©FGQRMPW ©+MPCMTCP© Meanwhile, as stability continued to elude the goldthe marginal credit growth seen in the second half K?PICRQ©GL©©?Q©UCJJ©K?L?EGLE©.?ULGLE©,.*Q©NPMTCB©MD©RFC©WC?P©?JQM©D?GJCB©RM©WGCJB©?LW©QGELGdžA?LR©SNU?PB© to be a challenge in this year too. On a positive note, duemovement and consequently the industry ended the year to the substantial and adequate impairment provisionswith a moderate credit growth of 11%. Sampath Bank made in 2013, impairment charge on pawning was only.*!Q©?QQCR©EPMURF©?JQM©J?PECJW©KGPPMPCB©RFC©J?AIJSQRPC© 0Q© © L©GL©©AMKN?PCB©RM©0Q© © L©GKN?GPKCLR©movements of the industry credit growth, with the asset charge booked against the same product in 2013.portfolio recording only a marginal 13.1% YoY growth +C?LUFGJC©RFC©,.*Q©@SGJR©SN©GL©©UCPC©?JQM©AJC?PCB©for the year. Meanwhile, as a direct consequence of the BSPGLE©RFC©WC?P©@W©MDžCPGLE©LML UGJDSJ©BCD?SJRCPQ©QSGR?@JC©low credit growth, excess liquidity was yet another crucial settlement options. Moreover, an auction process was?QNCAR©RF?R©NJ?ESCB©1?KN?RF© ?LI©.*!©BSPGLE©RFC©WC?P © initiated to dispose articles of hardcore defaulters. As aThe Bank also settled a foreign currency borrowing which result the exposure to this product was reduced to 7.9% of?KMSLRCB©RM©31\"©©+L©0Q©© L©BSPGLE©RFC©QR© the total loan book as at 31st December 2014 comparedquarter in order to reduce the excess liquidity it had at to 19.7% of the total loan book as at the previous yearthat time and this too contributed towards slowing down end. On the other hand, while the funds so released dueRFC©?QQCR©EPMURF ©,CTCPRFCJCQQ©1?KN?RF© ?LIQ©RMR?J© to the reduced exposure to pawning were used for other?QQCRQ©APMQQCB©RFC©0Q©© L©K?PI©GL©©?LB©QRMMB©?R©0Q©© L©?R©RFC©WC?P©CLB ©
51JCLBGLE©RMMJQ ©,CTCPRFCJCQQ©RFC©NCPQGQRCLR©J?AI©MD©?©APCBGR© ,#2©',2#0#12©',!-+#©˒,''˓appetite meant that the Bank was yet again faced with anexcess liquidity situation. ,''©UFGAF©GQ©RFC©K?GL©QMSPAC©MD©GLAMKC©DPMK©RFC©DSLB© based operations and representing over 69% of the totalFinancial Assets held for Trading which consists of MNCP?RGLE©GLAMKC©GLAPC?QCB©DPMK©0Q© © L©GL©©Government Treasury Bills and quoted equity securities RM©0Q© © L©GL©©PCAMPBGLE©?©KMBCP?RC©EPMURF©MD©FCJB©DMP©BC?JGLE©NSPNMQCQ©BCAPC?QCB©RM©0Q© © L©GL©© ̎©BCQNGRC©RFC©BPMN©GL©,'+©DPMK© ̎©GL©©RM©DPMK©0Q© © L©GL© ©1?KN?RF© ?LIQ©RMR?J©GLTCQRKCLRQ© 3.95% in 2014, aided by the growth of 15.2% recordedin Government Treasury Bills as at 31st December 2014 in the Bank’s fund base. The main reasons for achieving?KMSLRCB©RM©0Q© © L ©&MUCTCP©GLTCQRKCLRQ©GL©PCTCPQC© MLJW©?©KMBCQR©EPMURF©?R©,''©JCTCJ©AMSJB©@C©?RRPG@SRCB©PCNSPAF?QC©?EPCCKCLRQ©F?TC©GLAPC?QCB©@W©̎©DPMK©0Q©© to reduction in net interest margin due to downward pressure on interest rates, lower credit growth in L©GL©©RM©0Q©© L©GL© customer advances and the Bank being compelled by the K?PICR©D?ARMPQ©RM©GLTCQR©CVACQQ©DSLBQ©GL©JMU©WGCJBGLE©džVCB©LIABILITIES income securities.The low interest rate regime, continued to undermine NET INTEREST INCOME1?KN?RF© ?LI©.*!Q©AMLTCLRGML?J©BCNMQGR©KM@GJGQ?RGML© & NIMmodel as the Bank was forced to cut interest rates in anCDžMPR©RM©K?GLR?GL©,CR©'LRCPCQR©+?PEGLQ©,'+Q ©$PMK©?© Rs Bn 3.99 4.05 4.39 %customer perspective, as the earning capacity of term 20 5deposits continued to diminish, some customers were 3.95 4seen moving away from term deposits in pursuit of more 16 3JSAP?RGTC©GLTCQRKCLR©MNRGMLQ ©,CTCPRFCJCQQ©RFCPC©U?Q©?© 2QRC?BW©LJMU©MD©DSLBQ©RM©RFC© ?LI©@W©U?W©MD©BCNMQGRQ©PGEFR© 12 8.9 1throughout the year. 11.6 0 8 15.3 15.7 4LIABILITIES 0 Rs Bn 2011 2012 2013 2014350 Net Interest Income NIM300 339.9250 300.5 INTEREST INCOME & INTEREST EXPENSE200 243.3 Rs Bn150 195.2 5010050 28.8 38.9 36.3 40 41.9 11.7 14.2 24.9 19.8 38.1 11.20 30 2011 31.9 2012 2013 2014 20.3Due to Other Customers Debt Issued & Other Other Liabilities 20 26.6 22.3 Borrowed Funds 21.1 10 12.2Aggressive steps taken to boost Current Accounts and 01?TGLEQ© AAMSLRQ©! 1 ©TMJSKCQ©Q?U©RFC© ?LI©JCTCP?EGLE©on the widespread island-wide branch network to capture 2011 2012 2013 2014a larger share of the provincial and rural markets in theAMSLRPW ©+MPCMTCP©SLBCPNGLLCB©@W©QSNCPGMP©'2©A?N?@GJGRGCQ© Interest Income Interest Expensethe Bank was able to yet again pioneer a number of valueadded solutions and service enhancements that enrich NET FEE AND COMMISSION INCOMERFC©T?JSC©NPMNMQGRGML©MD©RFC©AMLTCLRGML?J©! 1 ©MDžCPGLE © & NIM2FCQC©CDžMPRQ©NPMTCB©RM©@C©?©QSAACQQ©ASJKGL?RGLE©GL©RFC©CASA portfolio reaching a commendable 47% of the total Rs Mn (%)deposit base as at 31st December 2014, notwithstanding 3,500 8the re-pricing strategies initiated by competitors. 3,000 6Debt issued and other borrowed funds decreased from0Q© © L©?Q©?R©QR©\"CACK@CP©©RM©0Q© © L©?Q©?R© 2,500 3.99 4.05 4.39 531st December 2014 due to the settlement of USD 100 2,000+L©0Q©© L©©QWLBGA?RCB©DMPCGEL©@MPPMUGLE©BSPGLE©RFC© 1,500 1,811 4džPQR©OS?PRCP © 2,149 3.95 2,543 3,087 3 1,000 2 500 1 0 0 2011 2012 2013 2014 Net Fee & Commission NIM Income
52 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceFinancial Performance ReviewNET FEE AND COMMISSION INCOME 2FC©GKN?GPKCLR©AF?PEC©DMP©GLBGTGBS?JJW©QGELGdžA?LR©JM?LQ© BCAPC?QCB©RM©0Q© ©+L©UFGAF©GQ©?© ̎©PCBSARGML©DPMK©Although the net interest income recorded only a RFC©NPCTGMSQ©WC?PQ©AF?PEC©MD©0Q© ©+L ©!MJJCARGTC©moderate growth, net fee and commission income of the GKN?GPKCLR©AF?PEC©RMM©PCLJCARCB©?L©GKNPMTCKCLR©MD© 63.3% over the previous year’s charge mainly due to ?LI©GLAPC?QCB©RM©0Q© © L©BSPGLE©RFC©WC?P©SLBCP©PCTGCU© 0Q© © L©PCBSARGML©GL©GKN?GPKCLR©?E?GLQR©RFC©N?ULGLE©DPMK©0Q© © L©GL©©PCAMPBGLE©?©QGELGdžA?LR© ̎© products discussed above.growth. This was mainly in line with the growth of businessvolumes in the card operations, inward remittances and OPERATING EXPENSEScommission income from other banking services. -NCP?RGLE©CVNCLQCQ©UFGAF©QRMMB©?R©0Q© © L©GL©© NET FEE & COMMISSION INCOME GLAPC?QCB©RM©0Q© © L©GL©RFC©ASPPCLR©WC?P ©2FGQ©̎© growth in operating expenses was due to general price Rs Mn GLAPC?QCQ©GLAPC?QC©GL©QR?Dž©LSK@CPQ©?LB©PCKSLCP?RGML© opening of new branches and ATMs and an island wide 3,500 1,811 programme to upgrade branches to a consistent standard 3,000 2,149 over the last few years. Cost to income ratio of Sampath 2,500 2,543 Bank tends to be high due to a relatively young branch 2,000 3,087 network. The Bank almost doubled its network since 2008. 1,500 As a result, the contribution from the new members in 1,000 the network is lower compared to their more mature counterparts. However it is encouraging to note that the 500 new branches are improving rapidly and it is expected that 0 their contribution towards improving cost to income ratio UMSJB©@C©QGELGdžA?LR©GL©AMKGLE©WC?PQ ©2FC© ?LI©GQ©A?PCDSJJW© 2011 2012 2013 2014 monitoring its cost structure and continues to reduce CVNCLQCQ©@W©BCNJMWGLE©RCAFLMJMEW©CDžCARGTCJW©RM©ACLRP?JGQC©NET TRADING AND OTHER OPERATING specialised functions. Though the operating expensesINCOME grew by 16%, this was very much lower than the growth of 28.6% in the Bank’s net operating income.,CR©RP?BGLE©GLAMKC©?LB©MRFCP©MNCP?RGLE©GLAMKC©UFGAF©accounts for 17.7% of the total operating income have OPERATING EXPENSES &recorded a 40.9% increase over the previous year. The GROWTH IN OPERATING EXPENSESmajor contributory factors to this increase were higherbad debt recoveries and exchange income generated Rs Mn (%)from foreign exchange related transactions. 15,000 30IMPAIRMENT OF LOANS AND OTHER 25.8 24LOSSES 12,000Total impairment losses decreased during the yearDPMK©0Q© © L©GL©©RM©0Q© © L©GL©©BSC©RM© 9,000 14.8 14.9 16.0 18reduction in impairment losses against pawning. The 6,000 12Bank managed to auction the articles that were not 8,059redeemed recovering the capital and even a portion of 3,000 9,248 6the interest in some instances. The impairment charge 10,634?E?GLQR©N?ULGLE©NMPRDMJGM©DMP©RFC©WC?P©?KMSLRCB©RM©0Q© 12,335 © L©UFGAF©GQ©?©PCBSARGML©MD©0Q© © L©AMKN?PCB©RM© © T?GJ?@JC©DMP©1?JC©$GL?LAG?J©'LTCQRKCLRQ©PCAMPBCB©?© 00GKN?GPKCLR©JMQQ©MD©0Q© ©+L 2011 2012 2013 2014 Operating Growth in Operating Expenses Expenses
53PERSONNEL EXPENSES & OTHER PROFIT BEFORE TAX &OPERATING EXPENSES PROFIT AFTER TAXRs Mn Rs Bn8,000 87,000 7,274 76,000 6 7.4 6.7 4,4175,000 6,217 54,000 3,560 4,009 5,061 4 5.0 4,499 5,239 3.43,000 3 5.22,000 2 4.5 3.4 4.91,000 10 0 2011 2012 2013 2014 2011 2012 2013 2014 Personnel Other Operating Expenses Expenses Profit Before Tax Profit After TaxPERFORMANCE RATIOS KEY CHALLENGES & COUNTER MEASURES!MQR©RM©'LAMKC©0?RGM© 2013 2014 The time lag resulting from the re-pricing strategyUGRFMSR©$14 2©©, 2 51.23% 53.95% AMLRGLSCB©RM©GKNGLEC©ML©,CR©'LRCPCQR©'LAMKC©,'' ©2FC©0CRSPL©ML© QQCRQ©?NJCP©R?V situation was further compounded by the persistent level0CRSPL©ML©#OSGRW©?NJCP©R?V 0.98% 1.23% MD©CVACQQ©JGOSGBGRW ©#VACCBGLE©RFC©1R?RSRMPW©*GOSGB© QQCR© 12.88% 16.35% 0?RGM©1* 0©MD©̎©1?KN?RF© ?LIQ©1* 0©?Q©?R©QR© December 2014 stood at 24.5%. Meanwhile, given theCost to income ratio increased slightly due to increase in limited investment opportunities available in the market,QR?Dž©LSK@CPQ©MNCLGLE©MD©LCU©@P?LAFCQ©?LB©PCBSARGML©GL© much of this excess funds were diverted in GovernmentLCR©GLRCPCQR©K?PEGL©CRA © MRF©0- ©?LB©0-#©GLAPC?QCB©GL© Securities, where the low yield on these instruments hadJGLC©UGRF©RFC©GLAPC?QC©GL©NPMdžR ?©BGPCAR©GKN?AR©ML©RFC© ?LIQ©,CR©'LRCPCQR©+?PEGL©,'+ ©PRE AND POST TAX PROFIT 5GRF©,''©QJGNNGLE©?KGB©JMU©?QQCR©EPMURF©?LB©CVACQQ© liquidity, the Bank took a series of counter measures2FC©NPMdžR©@CDMPC©R?V©?LB©NPMdžR©?NJCP©R?V©DMP©RFC©WC?P© RM©Q?DCES?PB©DSPRFCP©BCRCPGMP?RGML©MD©,'+ © KMLE©RFC©CLBCB©QR©\"CACK@CP©©U?Q©0Q© © L©?LB© ICW©QRCNQ©R?ICL©GL©RFGQ©PCE?PB©U?Q©?©AMLACPRCB©CDžMPR©0Q© © L©PCQNCARGTCJW ©2FC©AMPPCQNMLBGLE©džESPCQ© to re-channel funds to promote loans and advances,?AFGCTCB©GL©RFC©NPCTGMSQ©WC?P©UCPC©0Q© © L©?LB© particularly retail lending which was denoted by higher0Q© © L©PCQNCARGTCJW margins. To achieve this objective, a highly focused agenda was developed to promote the branch lending JRFMSEF©RFC© ?LI©?AFGCTCB©?©NPC R?V©NPMdžR©EPMURF© KMBCJ ©2M©DSPRFCP©GLQSPC©RFC©,'+©RFC© ?LI©?JQM©QRCNNCB©MD© ̎©GL©©RFC©NMQR R?V©NPMdžR©EPMURF©U?Q©MLJW© SN©PCAMTCPW©CDžMPRQ©?LB©RGEFRCLCB©APCBGR©AMLRPMJ© ̎©BSC©RM©RFC©CDžCAR©MD©RFC©LCUJW©GLRPMBSACB©,?RGML© procedures that would help strengthen the credit quality MD©RFC©JCLBGLE©NMPRDMJGM©?LB©AMLRPMJ©,.*Q © SGJBGLE©2?V©, 2©UFGAF©?KMSLRCB©RM©0Q©©+L©?LB©ACPR?GL©AF?LECQ©GL©$GL?LAG?J©1CPTGACQ©4 2©$14 2©PSJCQ © $SPRFCP©CDžMPRQ©RM©QSNNMPR©RFC©@MRRMK©JGLC©Q?U©RFC© ?LI©2FC©CDžCARGTC©GLAMKC©R?V©P?RC©K?PEGL?JJW©GLAPC?QCB©BSPGLE© follow a strict cost-containment policy while increasinglythe year from 23.6% in 2013 to 26.9% in 2014. pursuing fee-based activities, particularly in the export sector. While adding a considerable boost to the operating income, fee-based income is deemed to be instrumental in containing the cost to income ratio of the Bank, which remains relatively high owing to the aggressive branch expansion drive of the past few years discussed earlier. Q©QSAF©CDžMPRQ©RM©PCBSAC©RFC©AMQR©RM©GLAMKC©P?RGM©?PC© considered a high priority area for the Bank.
54 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceFinancial Performance ReviewSHAREHOLDERS' FUNDS SHAREHOLDERS FUND1F?PCFMJBCPQ©DSLBQ©GLAPC?QCB©@W©0Q© © L©DPMK© Rs Mn0Q© © L©?Q©?R©QR©\"CACK@CP©©RM©0Q© © L©?Q©at 31st December 2014 which was a 8.8% growth. Stated 35,000 21,344!?NGR?J©GLAPC?QCB©DPMK©0Q© © L©?Q©?R©QR©\"CACK@CP© 30,000 25,645©RM©0Q© © L©BSC©RM©RFC©CVCPAGQC©MD©MNRGMLQ©@W©QR?Dž© 25,000 28,418SLBCP©RFC©#KNJMWCC©1F?PC©-ULCPQFGN©.J?L©#1-. ©2FC© 20,000 30,912options exercisable period ended on 30th June 2014 and 15,000RFCPCDMPC©RFC©#1-.©U?Q©BGQAMLRGLSCB©CDžCARGTC©RF?R©B?RC 10,000The maintenance of the investment fund was a 5,000mandatory requirement and comprised retentions of 0̎©MD©NPMdžR©A?JASJ?RCB©DMP©N?WKCLR©MD©$GL?LAG?J©1CPTGACQ©4 2©?LB©̎©MD©NPMdžR©@CDMPC©R?V©AMKNSRCB©DMP©N?WKCLR© 2011 2012 2013 2014of income tax as per the relevant direction issued byRFC©!CLRP?J© ?LI©MD©1PG©*?LI?©! 1* ©2FC©GLTCQRKCLR© DIVIDEND PAY OUT RATIODSLB©?AAMSLR©U?Q©?@MJGQFCB©@W©! 1*©UGRF©CDžCAR©DPMK©QR©October 2014. Consequently the Bank transferred the 37.59%investment fund account balance that prevailed as atRF©1CNRCK@CP©©?KMSLRGLE©RM©0Q© © L©@?AI©RM© 2014PCR?GLCB©NPMdžR ©The net impact due to other comprehensive income onRFC©QF?PCFMJBCPQ©DSLBQ©?KMSLRCB©RM©0Q© © L ©2FC©?T?GJ?@JC©DMP©Q?JC©PCQCPTC©BCAPC?QCB©@W©0Q© ©+L©DPMK©0Q© © L©GL©©RM©0Q© © L©GL©©BSC©RM©PCBSARGML©GL©QF?PC©T?JSC©MD©*?LI? ?LEJ?©'LTCQRKCLR©*RB©GL©\"F?I?©1RMAI©#VAF?LEC ©$SPRFCP©0Q© ©+L©U?Q©BC@GRCB©RM©PCR?GLCB©NPMdžR©ML©?AAMSLR©MD©?ARS?PG?J©JMQQCQ©ML©BCdžLCB©@CLCdžR©NJ?LQ ©CAPITAL ADEQUACY AND LIQUID ASSETS RATIOS1R?RSRMPW©*GOSGB© QQCRQ©0?RGM©1* 0 2013 2014 Statutory Requirement!?NGR?J© BCOS?AW©©2GCP©'© 27.62% 24.54% 20.00%!?NGR?J© BCOS?AW©©2GCP©'©©2GCP©'' 10.08% 8.83% 5.00% 14.22% 13.62% 10.00%1* 0©AMLRGLSCB©RM©@C©UCJJ©?@MTC©RFC©QR?RSRMPW©KGLGKSK© in cash without any scrip element being includeddue to excess liquidity in the market. However the Bank therein, to minimise the excess liquidity that prevailed.managed to reduce it compared to 2013 as shown in 'L©?BBGRGML©RFC©APCBGR©EPMURF©GL©©RMMI©NJ?AC©KMQRJW©table above. in products other than pawning which attracted higher capital allocation. Furthermore, the other comprehensive\"CQNGRC©RFC©FGEFCP©NMQR R?V©NPMdžR©©RFC©2GCP©'©!?NGR?J© GLAMKC©AF?PEC©MD©MTCP©0Q©©+L©ML©PCR?GLCB©NPMdžRQ© BCOS?AW©0?RGM©QFMUCB©?©K?PEGL?J©BPMN©GL©© which arose from the Actuarial Valuation as at 31stcompared to 2013, due to several factors. A decision was \"CACK@CP©©ML©BCdžLCB©@CLCdžR©NJ?LQ©F?B©?L©?BTCPQC©taken in 2014 to pay the dividend for 2013 exclusively GKN?AR©ML©2GCP©'©A?NGR?J ©
55,CTCPRFCJCQQ©GL©MPBCP©RM©@MMQR©RFC©2GCP©''©!?NGR?J© EXTERNAL RATINGS BCOS?AW©0?RGM©RFC© ?LI©GQQSCB©©+L©P?RCB©SLQCASPCB©subordinated redeemable debentures at the face value 'L©RFC©P?RGLE©?QQCQQKCLR©MD©©AMLQGBCPGLE©RFC©FC?JRFW©MD©0Q© ©C?AF©P?GQGLE©0Q©© L©UMPRF©MD©2GCP©''©!?NGR?J © asset quality, better compliance, transparency, capitalThese debentures were subsequently listed in the adequacy, internal control systems and processes of theColombo Stock Exchange. ?LI©$GRAF©0?RGLE©*?LI?©*RB©F?Q©PC?LjPKCB©RFC©,?RGML?J©&MUCTCP©RFC©2MR?J©!?NGR?J© BCOS?AW©0?RGM©RMM©QFMUCB© *MLE©2CPK©0?RGLE©MD© © ©JI?©UGRF©1R?@JC©-SRJMMI©?LB©?©K?PEGL?J©BCAPC?QC©BSC©RM©RFC©BPMN©GL©2GCP©'©0?RGM©?Q©?© *?LI?©0?RGLE© ECLAW©PC?LjPKCB©RFC©JMLE©RCPK©džL?LAG?J©result of the increase in the risk-weighted value of assets. GLQRGRSRGML©P?RGLE©MD© ©UGRF©QR?@JC©MSRJMMI DIVIDEND $SPRFCP©$GRAF©0?RGLE©*?LI?©*RB©F?Q©?QQGELCB©?©APCBGR© P?RGLE©MD© JI?©RM©1?KN?RF© ?LIQ©\"C@CLRSPCQ \"GPCARMPQ©F?TC©PCAMKKCLBCB©?©džL?J©BGTGBCLB©MD©0Q© ©NCP©QF?PC©UFGAF©UGJJ©@C©N?GB©0Q© ©GL©A?QF©?LB©0Q© ©in the form of scrip dividend.AWARDS-SP©© LLS?J©0CNMPR©UML©RFC©%MJB© U?PB©GL©RFC© ?LIGLE©'LQRGRSRGMLQ©1CARMP©?LB©RFC© PMLXC© U?PB©GL©-TCP?JJ©#VACJJCLAC©GL© LLS?J©$GL?LAG?J©0CNMPRGLE©?R©RFC©RF© LLS?J©0CNMPR© U?PBQ©!CPCKMLW©MPE?LGQCB©@W©RFC©'LQRGRSRC©MD©!F?PRCPCB© AAMSLR?LRQ©MD©1PG©*?LI?©! ©1PG©*?LI? Sampath Bank has been selected as the \"Best Bank in1PG©*?LI?© ©©@W©RFC©NPCQRGEGMSQ©EJM@?J© SQGLCQQ©Magazine \"The Euromoney\", for the second consecutiveyear. Also the Bank has been adjudged the Best!MKKCPAG?J©?LB©RFC© CQR©0CR?GJ© ?LI©GL©1PG©*?LI?©@W©RFC©World Finance Banking Magazine.%MJB© U?PB©GL©RFC© ?LIGLE©'LQRGRSRGMLQ©1CARMP©! ©1PG©*?LI?© ©RF© LLS?J©0CNMPR© U?PB©!CPCKMLW
56 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder Value Creation Blueprint'L©MSP©A?N?AGRW©?Q©AMPC©T?JSC©APC?RMPQ©RM©RFC©L?RGML© QRP?RCEGA©K?L?ECKCLR©?NNPM?AF©AMK@GLCQ©džL?LAG?J©we believe it is our duty to convey tangible value to strength and structured risk mapping to help deliverall People MD©1PG©*?LI?©UFGJC©Q?DCES?PBGLE©RFC©DSRSPC© measurable change to all stakeholders associated withof the Planet in addition to ensuring the stability and the business..PMdžR?@GJGRW of our institution. Capturing the essenceMD©RFGQ©RPGNJC©@MRRMK©JGLC©GBCMJMEW©1?KN?RF© ?LI©.*!Q© G4-2, 24, 25 STRATEGIC 0C ?JGEL©QRP?RCEGA©EM?JQ©RM©KMTC©?U?W©DPMK©?© MANAGEMENT traditional philanthropic focus, towards a more strategic approach that creates competitive APPROACH advantages for all our stakeholders FINANCIAL Wealth creation for all stakeholders of STABILITY & RISK 1?KN?RF© ?LI©.*!©TGQ ? TGQ©DMPU?PB©JMMIGLE© corporate strategies, while assessing the MANAGEMENT relative market risk TRIPLE BOTTOM Ensure the value creation LINE IMPACTS DMP©.CMNJC©.J?LCR©?LB©.PMdžR© through a sustainable banking platform
57Getting to Know Our Stakeholders andTheir Expectations IDENTIFICATION OF ISSUE YesNo Material Aspect Categorisation of Issues1R?ICFMJBCP©'BCLRGdžA?RGML©'KN?AR© QQCQQKCLRCustomers Employees Regulators Society Environment Shareholders Suppliers & Service ProvidersEvaluation & Getting Feedback from StakeholdersStakeholder EngagementSetting Goals and Objectives Evaluating AlternativesImplementation and Monitoring Review Stakeholder Engagement Materiality TestingNo Acceptable YesReporting and Record Keeping
58 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder Engagement CUSTOMERS Management Philosophy: Uphold the customers’ right to demand a stable and progressive banking environment which provides a superior service platform and promotes customer choice / convenience Primary Engagement Mechanisms Frequency of Matters of Relevance EngagementOne-to-one feedback from customers who visit the Bank 0 Customer satisfaction on existing productsCustomer surveys conducted via traditional . Customer opinion on specialcommunication methods or electronic mediums promotions Customer feel for newSocial media interactions 24/7 innovations Customer communicationCustomer complaint handling mechanism 24/7 methods Demand for customised solutionsFeedback forms-paper based / electronic mediums 0© Speedy transactions 'LDMPK?RGML©ML©NPMBSARQ©?LB©Correspondence 0 services Superior customer serviceSMS alerts 24/7 Financial inclusion-LjAG?J©UC@QGRC 24/71?KN?RF©4GQFU?©'LRCPLCR©@?LIGLE 24/7Call centre 24/7!10©NPMHCARQ 0.©©.CPGMBGA?JJW© © © © © © 0©©0CESJ?PJW© © © © © © ©©B?WQ©©FPQ© EMPLOYEES Management Philosophy: Commitment to create an environment conducive for the employees to develop and reach their potential, both professionally and personally Primary Engagement Mechanisms Frequency of Matters of Relevance Engagement“Open door” policy 0 Ethical employment practicesEmployee forumsEmployee suggestions schemes . Employee wellbeingGrievance procedure Work-life balanceEmployee social committees 0 Career developmentFeedback forms 0 © 0CU?PBQ©©PCAMELGRGML 0 Talent development A Employee communicationsBusiness unit level meetings 0'LRP?LCR 24/7Memorandums 0Circulars 0,CUQ©JCRRCPQ QTraining 0Get-together / Events 01?KN?RF©#KNJMWCC©,MRGdžA?RGML©1WQRCK©1#,1 24/7!10©NPMHCARQ 0 ©© LLS?JJW© © .©©.CPGMBGA?JJW© © /©©/S?PRCPJW© © 0©©0CESJ?PJW© © © ©©B?WQ©©FPQ©
59 REGULATORS Management Philosophy:Ensuring corporate responsibilities relating to economic, social and environmental aspects imbibed into the corporate governance code in accordance with the dictates of all mandatory and statutory regulations Primary Engagement Mechanisms Frequency of Matters of Relevance Engagement'LBSQRPW©DMPSKQ©©KCCRGLEQ©UGRF©!CLRP?J© ?LI©MD© Working to ensure the stability and1PG©*?LI? . EPMURF©MD©RFC©AMSLRPWQ©džL?LAG?J©'LRCP?ARGML©UGRF©PCESJ?RMPW©@MBGCQ©RM©CLQSPC©AMKNJG?LAC 0 sector.MJGAW©JCTCJ©BGQASQQGML©UGRF©RFC©%MTCPLKCLR©RM©UMPI© On-going dialogue to promotetowards the betterment of the industry and promote 0 džL?LAG?J©QCARMP©PCDMPKQ©nation-wide economic development Alignment of corporate goals in line!10©NPMHCARQ 0 with national priorities and ensuring.©©.CPGMBGA?JJW© © © © © © 0©©0CESJ?PJW©©©©©©©©©©©© nation-wide economic development !-++3,'27©˒1-!'#27©©#,4'0-,+#,2˓ Management Philosophy: Working in tandem with global and local mandates that safeguard the environment and promote community empowerment Primary Engagement Mechanisms Frequency of © Matters of Relevance EngagementGround level interactions with community leaders at © P?LAF©JCTCJ©©0CEGML?J©JCTCJ©branch level 0 © activitiesMedia based forums 0 Engagement in capacity building'LRCP?ARGMLQ©UGRF©QMAG?J©EPMSNQ©?LB©TMJSLRCCP© 0 and community empowermentorganisations 0 activitiesFeedback forms 0 SME Development ForumsDiscussions with local Government representatives 0 Workshops / SeminarsDiscussions with other organisations / religious and #LTGPMLKCLR?J©.PMHCARQMNGLGML©JC?BCPQ©ML©AMKKSLGRW©BCTCJMNKCLR©CDžMPRQ 0CJGEGMSQ© ARGTGRGCQ0©©0CESJ?PJW©©©©©©©©©©©©G4- 2, 26, 27
60 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder Engagement SHAREHOLDERS Management Philosophy: Ensuring long term shareholder value and upholding the rights of the shareholder and supporting a broader shareholder constituency to ensure their Wealth Maximisation Primary Engagement Mechanisms Frequency of Matters of Relevance EngagementShareholder relations forums . Shareholder satisfaction regardingGeneral meetingsAnnual report . RFC© ?LIQ©džL?LAG?J©NCPDMPK?LAC©'LRCPGK©džL?LAG?J©QR?RCKCLRQ A and positionDisclosures & announcements on CSE Shareholder views on key-LjAG?J©UC@QGRC Q governance and policy mattersCorrespondence!10©NPMHCARQ . Development of shareholder 0 communication channels 0 Financial results 0CRSPL©ML©COSGRW 0 Strategy and continuity ©© LLS?JJW© © © © © © .©©.CPGMBGA?JJW© © © © © © /©©/S?PRCPJW© © © © © © 0©©0CESJ?PJW©©©©©©©©©©© SUPPLIERS AND SERVICE PROVIDERS Management Philosophy: Striking the right balance between cost and quality and promoting ethical and transparent sourcing practices Primary Engagement Mechanisms Frequency of © Matters of Relevance Engagement'LRCP?ARGMLQ©QSNNMPRCB©@W©RFC©NSPAF?QGLE©NMJGAW Developing strategic partnershipsFeedback forms 0 .PMKMRGLE©RP?LQN?PCLR©?LB©CRFGA?JJW©Meetings . responsible business practices4GQGRQ©RM©QSNNJGCPQ©UMPIQFMNQ©©MLjACQ 0.©©.CPGMBGA?JJW© © © © © © 0©©0CESJ?PJW©©©©©©©©©©©© .G4-47
61Stakeholder Strategies PLAN CUSTOMERS GOAL:STRATEGY EXECUTION PLATFORM Strategies Create a stable and progressive banking MANAGE © .PMBSAR©GLLMT?RGML environment, which renders high quality banking solutions together with Service excellence adequate information for the customer Technology-driven banking solutions to make an informed decision © .PMKMRGLE©GQJ?LB UGBC©ASQRMKCP©GLAJSQGTCLCQQ © .PMKMRGLE©@?LI?@GJGRW©?KMLE©?L©GQJ?LB UGBC© GOAL: customer network Establishing of a broader based nationwide SME Develop a culture where people can lending across the country K?IC©?©BGDžCPCLAC©@MRF©?Q©GLBGTGBS?JQ© Ethical lending practices and as a team © #LF?LAGLE©džL?LAG?J©K?PICR©?U?PCLCQQ©MD©RFC© customer GOAL: Complaint resolution Maintaining customer privacy Developing a voluntary reporting code that integrates all aspects of economic, EMPLOYEES environmental, social, labour and human rights practices in line with global best Strategies practices for sustainability Attraction of best talents from the market Development within through training & development Employee engagement © CLCdžR©QAFCKCQ © 0CU?PBQ©©PCAMELGRGML Grievance Handling Occupational health & safety and employee welfare REGULATORS Strategies Adherence to all mandatory regulations © .PMKMRC©TMJSLR?PW©AMKNJG?LAC©AMBCQ SOCIETY GOAL: Strategies *CLB©?©FCJNGLE©F?LB©RM©PCQMJTC© Community development and capacity building community-based socio-economic Education and literacy issues in line with national priorities Health and nutritional development of society Ethical sourcing ENVIRONMENT GOAL: Strategies Adopt green management practices and © 0CBSARGML©MD©RFC© ?LIQ©A?P@ML©DMMRNPGLR operational procedures to mitigate the environmental impact of the business Managing the impact on the environment © 0CQMSPAC©CLjAGCLAW IMPROVE SHAREHOLDERS GOAL: Strategies Support shareholder wealth creation Consistent bottom line and generate sustainable growth Ensuring sustainable return on investment Transparency and responsible stewardship © +?GLR?GLGLE©RFC© ?LIQ©PCNSR?RGML©?LB©APCBG@GJGRW Safeguard asset quality SUPPLIERS GOAL: Strategies To adopt a transparent sourcing © *?GB©BMUL©QSNNJGCP©QCJCARGML©NMJGAW mechanism that would ensure fair and equitable purchasing practices Tender procedure that optimises the level of competition throughout the supplier selection process Ethical sourcing practices © *MA?J©QMSPAGLE©?LB©GLAJSQGTC©QMSPAGLE©NMJGAW © #DžCARGTC©BGQNSRC©PCQMJSRGML©KCAF?LGQKG4-2, EC 1
62 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: CustomersPRESENTING A MEANINGFUL VALUE Priyanga GunasekaraPROPOSITION FOR ALL Managing Director G4-DMA 4©1©'LDMPK?RGML©1WQRCKQ©.TR©*RB+ , %#+#,2© ..0- !&©˔©!312-+#0 Sampath Bank came forward with an innovative2P?BGRGML?J©1PG©*?LI?L©U?PKRF©ASRRGLE©CBEC© QRPSARSPGLE©MD©MSP©džL?LAG?J©D?AGJGRGCQ©?Q©UC©JMMICB©technology and professionalism are the to expand our operation. Sampath Bank has alwayshallmarks of our customer service paradigm. responded quickly to our banking requirements. WhenOur customer-centric strategy helps to the Development Banking Unit of Sampath Bankcreate sustainable relationships with all our ?NNPM?AFCB©SQ©džPQR©GR©K?BC©RFC©CDžMPR©RM©SLBCPQR?LB©customers and enhances our commitment MSP©@SQGLCQQ©UFGAF©E?TC©SQ©AMLdžBCLAC ©1GLAC©RFCL©GR©towards product responsibility. have truly understood our business and has been a partner rather than a banker to us.We believe that every customer has theright to expect a stable and progressiveenvironment which renders sound and superiorbanking solutions, backed by the latestRCAFLMJMEW©CLjAGCLAW©?LB©?©ASQRMKCP DPGCLBJW©QCPTGAC©NJ?RDMPK ©'R©GQ©RFGQ©@CJGCD©RF?R©BPGTCQ©our dedication towards achieving exceptionalcustomer service and operational excellence.As we expand our presence across the nation,we continue to transform our approach incognisance with the needs of the customer,UFGJC©NPCQCLRGLE©R?GJMP©K?BC©MDžCPGLEQ©RM©QSGR©these diverse expectations.The rapidly changing business environment of today hasresulted in an unprecedented level of competition in Sri*?LI?Q©@?LIGLE©QCARMP©UGRF©ICW©NJ?WCPQ©?EEPCQQGTCJW©pursuing a broader share of the market. R©1?KN?RF© ?LI©.*!©UC©F?TC©?JU?WQ©QMSEFR©RM©D?AGJGR?RC©customer needs through unique and innovative solutions?LB©DSJdžJJ©RFC©CVNCAR?RGMLQ©MD©MSP©ASQRMKCPQ©GL©RFC©most sustainable manner possible. Working with a clearpurpose, we have thus aligned our strategic vision intandem with the needs of our customers and corporateclients. Moreover, as pioneers in the country’s bankingGLBSQRPW©1?KN?RF© ?LI©.*!Q©KSJRG D?ACRCB©@?LIGLE©structure is well equipped to articulate a meaningfulvalue proposition for both mainstream and niche marketsin the country.
63 Ensure 'KNJCKCLR© Financial 'LLMT?RGMLQ Strength Self A Customer Assessment Sustainable !CLRPGA©,CU© MD©'LBSQRPW© Approach to Benchmarks Win over the .PMBSAR© Customer Development .PMACQQ Growing Standardised Committed Service Work Force .PMACBSPCPRODUCT CATEGORISATION BASED ON AGE PRODUCTS FOR MINORS PRODUCTS FOR YOUNG ADULTS / CAREER STARTERS PRODUCTS FOR TEENAGERS Deposit Products PRODUCTS FOR YOUNG ADULTS / Double S, Hit Saver, Current Accounts, Kalin Cash, Easy FD, Fixed CAREER STARTERS Deposits, Foreign Currency Accounts .0-\"3!21©$-0©+'\"\"*#˔© %#01 PRODUCTS FOR SENIOR CITIZENSPRODUCTS FOR MINORS Sampath Pubudu PRODUCTS FOR YOUNG ADULTS / CAREER STARTERS Sampath Sapiri Advance ProductsPRODUCTS FOR TEENAGERS Housing Loan SolutionsSampath X SET Student Loans, Professional Loans, Sampath Sevana, Sampath Leasing, Credit Cards, Randiriya
64 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: CustomersPRODUCT CATEGORISATION BASED ON AGE CONTD.PRODUCTS FOR YOUNG ADULTS / .0-\"3!21©$-0©+'\"\"*#˔ %#01CAREER STARTERS Advance ProductsAlternate Channel Products Housing Loan Solutions Sampath AppATM Banking, Telebanking, Sampath Vishwa, Professional Loans, Sampath Sevana, SampathPayeasy, Sampath Z – reload, SMS Alertz, SMS Leasing, Credit Cards, Randiriya, BizcashBanking, Mobile Cash, Sampath Bank APP, CardlessCash .0-\"3!21©$-0©+'\"\"*#˔ %#01 Alternate Channel Products.0-\"3!21©$-0©+'\"\"*#˔ %#01Deposit Products Sampath AppDouble S, Hit Saver, Current Accounts, Sampath ATM Banking, Telebanking, Sampath Viswa, Payeasy,Supreme, Kalin Cash, Easy FD, Fixed Deposits, Sampath Z – reload, SMS Alertz, SMS Banking,Foreign Currency Accounts Mobile Cash, Sampath Bank APP, Cardless Cash
PRODUCTS FOR SENIOR CITIZENS 65Deposit Products PRODUCTS FOR SENIOR CITIZENS Alternate Channel Products Sampath AppSampath Sanhinda Saver, Sampath Sanhinda FD, ATM Banking, Telebanking, Sampath Vishwa,Double S, Hit Saver, Current Accounts, Sampath Payeasy, Sampath Z – reload, SMS Alertz, SMSSupreme, Kalin Cash, Easy FD, Fixed Deposits, Banking, Mobile Cash, Sampath Bank APP, CardlessForeign Currency Accounts CashPRODUCTS FOR SENIOR CITIZENS \"#4#*-.',%©\"7, +'!©. 02,#01&'.1©˔©Advance Products CUSTOMER ENGAGEMENTSampath Sevana Dayada, Randiriya, Bizcash 3LBCPQR?LBGLE©RFC©LS?LACQ©MD©BGTCPQC©ASQRMKCP©NPMdžJCQ© and deciding on how best to respond to the evolving needs of our customers, has prompted us to map the degree of change needed to derive a sustainable customer service channel. Customer engagement thus forms an integral part of our day-to-day business processes, where we encourage all employees to “Go the extra mile” on behalf of the customer. Moreover, gauging the pulse of the customer, through regular feedback and special customer gatherings, we are able to catalogue progressive industry trends that are likely to impact our MDžCPGLEQ .J?RGLSK©,GEFR©
66 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: Customers2FC©.PMBSAR©.MJGAW© IN SEARCH OF EXCEPTIONAL CUSTOMERhighlights our SERVICE: GOING THE EXTRA MILE FOR Acommitment to act CUSTOMERresponsibly in interpreting We believe, all employees should make acustomer needs, while AMLQAGMSQ©CDžMPR©RM©?QQGQR©?©ASQRMKCP©GL©endorsing the customers’ džLBGLE©UF?R©FC©MP©QFC©LCCBQ©?LB©GL©PCQMJTGLE©0GEFR©RM©ILMU © FGQ©NPM@JCK©GD©RFCPC©GQ©MLC ©'D©RFC©QMJSRGML© to a problem does not lie with the Bank, the QR?Dž©QF?JJ©RM©RFC©@CQR©MD©RFCGP©ILMUJCBEC©?LB© capacity, extend necessary guidance to the customer with regard to the person/authority to be approached for resolution and the manner of doing so.A STRATEGIC APPROACH TO CUSTOMER MANAGEMENT1RCN©©'BCLRGdžA?RGML©MD©+?RCPG?J© QNCARQ©?LB© MSLB?PW No Aspect Boundary Sustainability Sustainability 1GELGdžA?LAC©RM© 1GELGdžA?LAC©RM©Social: Product Responsibility Customer Sampath Bank Stakeholders 1 Customer health and safety Sampath Bank 2 .PMBSAR©?LB©QCPTGAC©J?@CJJGLE Sampath Bank High High 3 Marketing communications Sampath Bank Medium Medium 4 Customer privacy Sampath Bank Medium 5 Compliance *MU High High High *MUStep 2: Materiality Assessment1SQR?GL?@GJGRW©1GELGdžA?LAC©RM©1?KN?RF© ?LI H5 1, 4 M3 2 * H High M Medium * MH * *MU Sustainability Significance to Stakeholders
67ASPECT: MARKETING COMMUNICATIONS Mr H D De SilvaRaising the Bar - Customer Communication Chairman - HDDES GroupWhile working to enhance customer convenience, askeen advocates of customer rights, we also strive to As a leading bank currently in the forefront of Sriensure adequate information is made available to assist *?LI?Q©@?LIGLE©QCARMP©'©?K©GLBCCB©NPMSB©RM©F?TC©the customer to make an informed decision at all times. @CCL©N?PR©MD©1?KN?RF© ?LI©.*!Q©GJJSQRPGMSQ©HMSPLCW©$MPKGLE©?©N?PR©MD©MSP©.PMBSAR©0CQNMLQG@GJGRW©GLGRG?RGTCQ©GQ© RM©RFC©RMN ©'©@CJGCTC©UC©F?TC©EPMUL©RMECRFCP ©&?TGLE©RFC©AMKNPCFCLQGTC©.PMBSAR©.MJGAW©UFGAF©QNCJJQ©MSR©AJC?P© been associated with the Bank for the past twoguidelines on how our products are conveyed to the end BCA?BCQ©'©KSQR©Q?W©1?KN?RF© ?LI©.*!©F?Q©@CCL©consumer. Developed in cognizance with all mandatory instrumental in promoting our company as a leadingQRGNSJ?RGMLQ©GQQSCB©@W©RFC©!CLRP?J© ?LI©MD©1PG©*?LI?©GL© CVNMPRCP©GL©1PG©*?LI? ©'©?K©CVRPCKCJW©EP?RCDSJ©DMP©RFC©accordance with the guidelines applicable to banking unstinted support extended to us by the Bank whichGLQRGRSRGMLQ©GL©1PG©*?LI?©RFC©.PMBSAR©.MJGAW©FGEFJGEFRQ©MSP© has helped us make a name for ourselves in thecommitment to act responsibly in interpreting customer global marketplace.LCCBQ©UFGJC©CLBMPQGLE©RFC©ASQRMKCPQ©0GEFR©RM©ILMU © past. Our marketing communications are aligned toMoreover, our campaign to establish the Sampath brand ?NNJGA?@JC©L?RGML?J©J?UQ©?LB©PCESJ?RGMLQ ©,M©GLAGBCLRQ©MD©GBCLRGRW©?Q©?©RPSJW©GLBGECLMSQ©1PG©*?LI?L©AMKKMBGRW©F?Q© violation of these laws have been recorded.prompted a trilingual format for all communications.Meanwhile, a voluntary code of ethics governs thetransparency of our actions and ensures that all ourcommunications are free from social, cultural andPCJGEGMSQ©@G?Q ©.PCQCLRGLE©MSPQCJTCQ©?Q©?©@?LI©MD©AFMGAC©for all citizens of the country, our above-the-line andbelow-the-line communication mediums seek to conveyMSP©SLGOSCJW©1PG©*?LI?L©GBCLRGRW©GL©BCTCJMNGLE©@MRF©K?GLQRPC?K©K?PICRQ©?Q©UCJJ©?Q©LGAFC©MDžCPGLEQ ,MR?@JW©UFGJC©AMLTCLRGML?J©K?PICRGLE©AMKKSLGA?RGML©remains a critical aspect of our publicity framework, wehave also sought to embrace the new developments inelectronic, digital and social media platforms that havePCTMJSRGMLGQCB©RFC©džCJB©MD©AMKKSLGA?RGML©GL©RFC©PCACLR©! 1#©123\"7©!312-+#0©1304#7©˔© 0 ,\"© campaigns vis-à-vis the success of the corporate brand as perceived by the customer.20 !)',% An island-wide exercise to table the health of the “Sampath” brand, the undertaking also aims0CQC?PAF© ECLAW© ©2FC©,CGJQCL©*?LI?©© © to ascertain the general perception of brand strength from the general public.© ©©©©©©.TR©*RB Outsourced to an independent third party.CPGMB©MD©PCQC?PAF© © NPGJ©RM©\"CACK@CP© research consultant, the project entails quarterly brand tracking for a one year period.Type of research - Quantitative \"CCKCB©RM©@C©GLQRPSKCLR?J©GL©PCdžLGLE©MSP© communication platform, the insights obtained1?KNJGLE©.PMACBSPCQ© ©0?LBMK from this process would help us align our brand strategies and derive a more sustainableSample Size - 1,000 per quarter blueprint for future growth.Coverage - Colombo, Galle, Kandy and Kurunegala© ©©©©©©3P@?L©?LB©0SP?JDuring the year, a comprehensive brandtracking exercise was initiated to measurethe success of our advertising and branding%© ©.0©©$1©
68 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: Customers Brochures Traditional and Advertising .?KNFJCRQ E-Channels Sampath 24 Hour Call Bank Product Centre Corporate Information and Website Accessibility Branch Merchandising Social Media 1NCAGdžA© .PMBSAR©0CJ?RCB© 'LDMPK?RGML© Accompanied by Application Forms Marketing Communication Status.PMBSARQ©MP©QCPTGACQ©@?LLCB©GL©ACPR?GL©K?PICRQ ,M.PMBSARQ©MP©QCPTGACQ©QS@HCARCB©RM©QR?ICFMJBCP©OSCQRGMLQ©MP©NS@JGAJW©BC@?RCB ,M,ML©AMKNJG?LAC©PCQSJRGLE©GL©?©džLC©MP©NCL?JRW©©TMJSLR?PW©AMBCQ ,M% ©.0©©©ASPECT: PRODUCT AND SERVICE product and service policies which mirror the nationalLABELLING regulations for banking products. As such there have been no reports of regulatory violations nor any incidents % ©.0©©©$1© of non-compliance with voluntary codes in relation to disclosure of product information and labelling of ourAs a service organisation, our operations have no impact products or services.or potential impact on the following: ASPECT: CUSTOMER PRIVACY The sourcing of components of the product or service As a responsible banking institution in the country, we Content, particularly with regard to substance that have always upheld the customers’ right to privacy and might produce an environmental or social impact NCPQML?J©PCDSEC ©'R©GQ©MSP©@CJGCD©RF?R©UC©PCK?GL©M@JGECB© Safe use of the product or service RM©NPMRCAR©ASQRMKCP©AMLdžBCLRG?JGRW©?LB©GLBCKLGDW©RFC© Disposal of the product and environmental/social ASQRMKCP©DPMK©KGQSQC©MP©RFCNJ©MD©RFCGP©NCPQML?J©B?R? ©'L© impact this regard, the following measures have been integrated into our day-to-day operations in order to ensure that-SP©TCPQ?RGJC©KSJRG J?WCPCB©P?LEC©MD©džL?LAG?J©NPMBSARQ© customer privacy is upheld at all times.and banking solutions have been developed in?AAMPB?LAC©UGRF©1?KN?RF© ?LI©.*!Q©QRPGLECLR©ASQRMKCP©
69Measures adopted in order to ensurecustomer privacy 2CPKGL?J©*GLC©#LAPWNRGML©2*#©?R©.-1©RCPKGL?JQ© located islandwide with the intention to prevent risk of counterfeit credit card Additional security to credit card holders via added encryption for chip enabled cards SMS alerts to notify each transaction Direct calls to customer prior to performing high value transaction+P©0©\"©.PCK?QGPG©!F?GPK?L©©+\"© ©.?AI?EGLE©+?RCPG?J© Mr R D Premasiri.TR©*RB©GQ©CLQSPGLE©RFC©QKMMRF©DSLARGMLGLE©MD©GRQ©@SQGLCQQ©operation. Chairman / Managing Director .?AI?EGLE©+?RCPG?J©.TR©*RBASPECT: CUSTOMER HEALTH AND SAFETY 5FCL©'©QR?PRCB©RFGQ©AMKN?LW©GL©©RFC©N?AI?EGLE© % ©.0©©© GLBSQRPW©U?Q©?©TCPW©LCU©AMLACNR©RM©1PG©*?LI? ©'©F?B© very little money to invest and at the time it was veryGiven the nature of our business as a bank, the impact BGLjASJR©RM©ECR©RFC©@SQGLCQQ©SN©?LB©PSLLGLE©QKMMRFJW ©of health and safety aspects cannot be assessed with But, thanks to the Head of the Development Bankingregard to our products and services. However, our 3LGR©MD©1?KN?RF© ?LI©RFCL©'©U?Q©?@JC©RM©QCASPC©?©determination to ensure customer wellbeing has led us JM?L©MD©0Q©©+L©UFGAF©PC?JJW©E?TC©RFC©@SQGLCQQ©RFC©to formulate products and services that do not in any way boost that it needed. From then on, for the past twoimpair or harm the health and safety of our customers. decades, the Bank has been an active partner in theAs such no incidents were reported on non-compliance QSAACQQ©MD©RFC©AMKN?LW ©'©?K©BCCNJW©RF?LIDSJ©DMP©RFC©with regulations and voluntary codes concerning health ESGB?LAC©?LB©?BTGAC©RF?R©'©F?TC©PCACGTCB©DPMK©RFC©and safety impacts of products and service during the Bank over the years, which has helped to develop the AMKN?LW©?LB©EGTCL©KC©RFC©AMLdžBCLAC©RM©PC?AF©DMP© even greater heights in the future. reporting period. Hence the Bank has not been subject RM©?LW©džLCQ©MP©JGRGE?RGML©?PGQGLE©DPMK©QR?RSRMPW©TGMJ?RGMLQ© with this regard. ASPECT: COMPLIANCE % ©.0© 'L©?BBGRGML©RM©RFC©QRGNSJ?RGMLQ©MD©MSP©.PMBSAR©.MJGAW©UC© have always strictly complied with all mandatory laws and governing standards relating to advertising and branding. Moreover, it is mandatory that all employees AMKNJW©UGRF©RFC© ?LIQ©QRGNSJ?RCB©AMBC©MD©CRFGAQ©MD©UFGAF© the customer rights framework remains an integral component. Therefore, no incidents on non-compliance with laws and regulations or breach of customer privacy were reported within the reporting period. Further, no QGELGdžA?LR©džLCQ©UCPC©GKNMQCB©MP©N?GB©DMP©LML AMKNJG?LAC© with laws and regulations concerning the provision and use of products and services.Customer Feedback Monitor
70 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EmployeesFORTIFYING OUR DNA professional and personal development while ensuring a high performance work culture that would support the5C©@CJGCTC©MSP©CKNJMWCCQ©?PC©RFC©\", ©RF?R©BCdžLCQ©SQ © AMKNCRGRGTC©K?PICR©RF?R©UC©MNCP?RC©GL © ©PCLJCARGML©MD©MSP©2FCW©DMPK©RFC©APSV©MD©1?KN?RF© ?LI©.*!Q©QRPSARSP?J© commitment to ensure continuous team developmentgenome that binds all aspects of our business. vis-à-vis a results-oriented culture, our actions speak for themselves as a testament to our success over the past0C?LjPKGLE©RFC©AMKKGRKCLR©RM©MSP©CKNJMWCCQ©UC© two decades.strive to create an environment conducive for both G4-DMA THE CASE FOR DEVELOPING A SUSTAINABLE HR PROTOTYPEThe Challenges that We Face-SP©@P?LAF©LCRUMPI©F?Q©CVNCPGCLACB©?©NPMJGdžA©EPMURF©GL©RFC©N?QR©DCU©WC?PQ©N?PRGASJ?PJW©UGRF©RFC©MNCLGLE©SN©MD©RFC©,MPRF©?LB©#?QR©DMJJMUGLE©?L©CLB©RM©RFC©AGTGJ©U?P©GL© ©\"SC©GL©J?PEC©N?PR©RM©RFCQC©?K@GRGMSQ©CVN?LQGML©NJ?LQ©UC©džLB©MSP©CVGQRGLE©FSK?L©PCQMSPACQ©KCAF?LGQK©QRP?GLCB©RM©capacity, encumbered by the demands of this growth. Moreover, as we extrapolate our currentgrowth trajectory, we envision a number of key challenges that are bound to impact Sampath Bank.*!©GL©RFC©KCBGSK©RCPK©?Q©UC©QCCI©RM©NPMKMRC©RFC©RPSJW©GLBGECLMSQ©GBCLRGRW©MD©RFC©Sampath brand.Our Proposition2M©CDžCARGTCJW©QSNNMPR©MSP©?AACJCP?RCB©EPMURF©QRP?RCEW©GR©GQ©GKNCP?RGTC©RF?R©UC©BCPGTC©?©KMPC©QSQR?GL?@JC©&0©KMBCJ©?LB©RP?LQGRGML©RMU?PBQ©?©QSGR?@JC©&0©NJ?RDMPK ©'L©BMGLE©QM©UC©?GK©RM©DMASQ©building employee’s competencies in serving diverse communities across the island. Moreover,to assure the sustainability of these markets, we would need to absorb the cultural dynamics ofthese communities and understand the intricacies of their lifestyles. Consequently, a rethink of ourapproach towards human capital development would feature a more inclusive recruitment strategythat subscribes to a greater degree of local hiring. Doing so would not only enhance our serviceJCTCJQ©@SR©?JQM©NPMNCJ©1?KN?RF© ?LI©.*!©?Q©RFC©@?LI©MD©AFMGAC©?KMLE©RFC©AMSLRPWQ©mass populace.Another key challenge would be to ensure employee’s readiness to take up responsibilities andAF?JJCLECQ©GL©MSP©EPMURF©NPMACQQ ©'LRCLQGdžCB©RP?GLGLE©?LB©BCTCJMNKCLR©ILMUJCBEC©QF?PGLE©online learning opportunities, coaching and mentoring and leadership development have not onlypositively contributed in this aspect but made our employees active business partners.
71+ , %#+#,2© ..0- !&˔©#+.*-7##5C©BCQGEL©MSP©&0©NMJGAGCQ©@?QCB©ML©QRP?RCEGA©@SQGLCQQ©LCCBQ©?LB©BCTCJMN©MSP©FSK?L©PCQMSPACQ©GL©such a manner that they would spearhead organisational goals. We believe, every employee of theBank has the right to expect a work ethos that is committed to build an environment conducive forboth professional and personal development.-SP©?ARGMLQ©?PC©ESGBCB©@W©MSP©&0©NFGJMQMNFW©UFGAF©MSRJGLCQ©RFC©DMJJMUGLE©ICW©NPGMPGRGCQ©ã© &GPC©DMP©NMRCLRG?J©?LB©T?JSCQ©?LB©BCTCJMN©©DMP©AMKNCRCLAGCQã© .PMTGBC©COS?J©?LB©BGTCPQC©MNNMPRSLGRGCQ©DMP©MSP©CKNJMWCCQ©RM©EPMU©?LB©BCTCJMNã© #LAMSP?EC©AMKNCRGRGTCLCQQ©@W©PCAMELGQGLE©MSRQR?LBGLE©NCPDMPK?LAC©MD©@MRF©GLBGTGBS?J©?LB©© teamsã© \"CTCJMNGLE©JC?BCPQ©?R©?JJ©JCTCJQã© *CTCP?EC©RFC©BGTCPQGRW©MD©2C?K©1?KN?RFã© .PCN?PC©DMP©MPE?LGQ?RGML?J©AF?LECã© #KNF?QGQ©ML©FMJGQRGA©BCTCJMNKCLR©MD©MSP©CKNJMWCCQ©RM©SLJC?QF©RFCGP©DSJJ©NMRCLRG?J GKGLE©RM©@C©?L©CKNJMWCP©MD©AFMGAC©?KMLE©1PG©*?LI?Q©@SQGLCQQ©AMKKSLGRW©UC©F?TC©DMPKSJ?RCB©?©BCTCJMNKCLR?J©?ECLB?©RF?R©MDžCPQ©LSKCPMSQ©TCPRGA?J©?LB©FMPGXMLR?J©MNNMPRSLGRGCQ©DMP©CKNJMWCC©enrichment. Cascading to all levels of the business, ours is a broad-based human resourceframework that features the following policies is in place to support our future-ready workforce.ã© 0CAPSGRKCLR©?LB©1CJCARGML©.MJGAW©ã© .CPDMPK?LAC©+?L?ECKCLR©.MJGAW©ã© 2P?GLGLE©?LB©\"CTCJMNKCLR©.MJGAWã© #KNJMWCC©0CJ?RGMLQ©.MJGAW©ã© 'LBSQRPG?J©0CJ?RGMLQ©.MJGAW©ã© 0CU?PB©+?L?ECKCLR©.MJGAW©ã© %PGCT?LAC©&?LBJGLE©.MJGAW &GEF©.CPDMPKGLE©5MPI© CultureTeam Work *C?PLGLE© .PMDCQQGML?J© Change 'LLMT?RGML Environment ?LB©.CPQML?J© Orientation Development Strategies Continuous Development Culture of 0CU?PBQ©?LB© Enhance EmbracingTraining and MD©*C?BCPQFGN© Accountability 0CAMELGRGML© Employee .PMDCQQGML?J©Development ?R©?JJ©*CTCJQ Engagement Ethics and and for High and Employee 0CQNMLQG@GJGRW© .CPDMPK?LAC© 'LTMJTCKCLR© Values ?LB©'LLMT?RGML
72 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EmployeesA STRATEGIC APPROACH TO MANAGING EMPLOYEES12#.©©'BCLRGdžA?RGML©MD©+?RCPG?J© QNCARQ©?LB© MSLB?PGCQ No Aspect Boundary Sustainability Sustainability 1GELGdžA?LAC©RM© 1GELGdžA?LAC©RM© Social: Labour Practices and Decent Work Sampath Bank Sampath Bank Stakeholders 1 Employment Sampath Bank 2 *?@MSPK?L?ECKCLR©PCJ?RGMLQ Sampath Bank High Medium 3 Occupational health and safety Sampath Bank High High 4 Training and education Sampath Bank High 5 Diversity and equal opportunity Sampath Bank High Medium 6 Equal remuneration for women and men Supplier High High 7 Supplier assessment for labour practices Employee High 8 *?@MSP©NP?ARGACQ©EPGCT?LAC©KCAF?LGQKQ© Medium Medium Social: Human Rights Sampath Bank High Medium 9 'LTCQRKCLR©© ©&SK?L©0GEFRQ Sampath Bank Medium 10 ,ML BGQAPGKGL?RGML Employee High Medium 11 Freedom of association and collective High Sampath Bank High Medium bargaining Sampath Bank Medium 12 Child labour Sampath Bank High Medium 13 Forced and compulsory labour Sampath Bank High 14 Security practices Sampath Bank High High 15 'LBGECLMSQ©PGEFRQ Supplier *MU High 16 Assessments Sampath Bank Medium High 17 Supplier human rights assessment High *MU 18 Human rights grievance mechanisms High Medium MediumStep 2: Materiality Assessment High1SQR?GL?@GJGRW©1GELGdžA?LAC©RM©1?KN?RF© ?LI H 1, 3, 5, 6, 8, 9, 10, 2, 4, 12, 13, 14, 11, 17 18 M 15 7, 16 * H High * MH M Medium * *MU Sustainability Significance to Stakeholders
73During the year we haveGLTCQRCB©0Q© ©+L©GL©training and leadershipdevelopment.$CJGAGR?RGML©DMP©+P©0?LE?L?©&CP?RF©©,?RGML?J©!PGAICR©.J?WCP© Mr Rangana HerathLABOUR PRACTICES AND DECENT WORK ,?RGML?J©!PGAICR©.J?WCP©©1?KN?RF©2C?K©+CK@CPAspect: Employment *MMIGLE©@?AI©MTCP©RFC©N?QR©©WC?PQ©QGLAC©HMGLGLE©Our Workforce 1?KN?RF© ?LI©.*!©ML©RF©+?PAF©©'©QCC©RF?R©Our workforce, consisting of 4,000 employees who work RFGQ©F?Q©@CCL©?©TCPW©QGELGdžA?LR©RGKC©GL©KW©JGDC ©'R©U?Q©?R©RFC©&C?B©-LjAC©?LB©GL©RFC© P?LAF©,CRUMPI©GQJ?LB UGBC© during this period that my career as an internationalincludes 453 new employees recruited in 2014 of which APGAICRCP©PC?JJW©@CE?L©RM©R?IC©MDž ©+MPCMTCP©RFC©RM©džJJ©©LCU©NMQGRGMLQ©APC?RCB©BSPGLE©RFC©WC?P ©%GTCL© demands of my training schedule began to increase too, which made it impossible for me comply with PCESJ?P©UMPIGLE©FMSPQ ©'©?K©GKKCLQCJW©EP?RCDSJ© to the management of the Bank for the support CVRCLBCB©RM©KC©BSPGLE©RFGQ©RGKC ©'©U?Q©?JJMUCB©RFC© LJCVG FMSPQ©MNRGML©UFGAF©CL?@JCB©KC©RM©AMLRGLSC©UGRF© un interrupted training to sharpen my playing skills ?LB©GKNPMTC©KW©ML džCJB©NCPDMPK?LAC © our commitment to the “develop from within” approach our cadre has only grown by 8.5% in 2014. Moreover, BSPGLE©RFC©WC?P©UC©F?TC©GLTCQRCB©0Q© ©+L©GL©RP?GLGLE© and leadership development.Our Workforce at a Glance %© ©©* © Male Female Total Above 55 51 - 55 41 - 50 31 - 40 21 - 30 18 - 20 8% 46% 46% -Corporate Management 19 5 24 2% 12% 84% --Senior Management - 3% 73% 2%Executive Management 69 13 82 - 2% 26% 23% --Middle Management -- 5% 63%Junior Management 125 48 173 -- - 42% 1% --NCP?RGML?J©1R?Dž 2% 15% 40%Other Grades 400 167 567 7% 9% - 32% 489 296 785 53% - 1,490 700 2,190 90% 3% 39 140 179 11% - 2,631 1,369 4,000
74 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EmployeesEMPLOYEE ANALYSED BY TYPE OF %#,\"#0˔5'1#©0#!03'2+#,21©˔©EMPLOYMENT CONTRACT & GENDER.CPK?LCLR©#KNJMWCCQ Male Female 85% 15%Trainees 1,981 1,272.PM@?RGMLCPQ 631 65 MALE FEMALEFixed Term Contracts 11 20Total 8 12 2,631 1,369To ensure a continuous talent pipeline that would drive NEW RECRUITScorporate ambition and inspire long term nationalprogress we continue to recruit talented individuals 84.3%DPMK©?JJ©?APMQQ©RFC©AMSLRPW ©'L©RFGQ©PCE?PB©UC©F?TC©QCR©out strict guidelines to ensure that the most competent ©˙©© %#©%0-3.people are recruited based on merit and that allrecruitments are free of bias and discrimination. 0CRSPL©RM©5MPI©?LB©0CRCLRGML©0?RC©?NJCP© Maternity LeaveAs a part of the long term employee developmentstrategy, all new hires are subjected to a comprehensive %© ©* © 2013 2014orientation regime. Orientation activities encompass 1,354 1,369on-the-job training and regular evaluations conducted Employees entitled forparallel to the two year training period for school maternity leaveleavers. Upon successful completion of the orientation Employees taking maternitymodule and the period of training, recruits are eligible leaveDMP©AMLdžPK?RGML©?LB©?@QMP@CB©GLRM©RFC©NCPK?LCLR© Employees taking paternityemployment cadre, depending on the available vacancies. leave Employees returning to work Province New Hires for 2014 ?NJCP©K?RCPLGRW©JC?TC 113 131Western 179 Employees still employed 12Southern 46 KMLRFQ©?NJCP©R?IGLE©K?RCPLGRW© 68 84,MPRF 5CQRCPL 46 leaveCentral 80 0CRSPL©RM©UMPI©P?RC 113 131Eastern 14 0CRCLRGML©P?RCSabaragamuwa 26 111 125,MPRF !CLRP?J 22,MPRFCPL 22 100.0% 100.0%Uva 18 98.2% 95.4%Total 453 Grade DGM AGM Chief Snr Mgr Promotions for 2014 JE II Snr Exec Snr Sec,SK@CP Mgr Mgr SE II SE I E II E I Exec Sec Sec 9 Sec 1 9 10 11 20 21 45 84 85 136 11 11 3
75EMPLOYEE TURNOVER RETURN TO WORK AFTER MATERNITY LEAVE0CRCLRGML©PCK?GLQ©FGEF©?R©̎©BSC©RM©FGEF©Q?RGQD?ARGML©levels in our team. 100% Reason Male 2013 Total Male 2014 Total 4 6 18 20Join with other competitor institutes Female 11 Female 17Join with other organisations 10 2 13 16 2 35Migration 16 3 34 6Higher studies 17 20.CPQML?J©PC?QMLQ 17 18 17 17 19 250CRGPCKCLR 15 33Other - 13 7 3 9Total 7 18 22 9 8 12 16 138 95 2 138 85 6 3 6 43 53 New Recruits 2014 Turnover 2014 Age GroupAbove 55 Male Female Total Male Female Total51-55 3 - 3 - 1 141-50 - - - 7 6 - 1 1 3 4 1331-40 721-30 1 1 2 6 1018-20 320 62 382 64 32 16 96 60 5 65 5 - 384 69 453 85 53 5 138MANAGING TALENT 2 *#,2©\"#4#*-.+#,2©','2' 2'4#©#6#!32'4#© 2 *#,2©\"#4#*-.+#,2©.0-%0 ++#While embodying the promise of a sustainable future The overall objective of the Executive TalentDMP©?JJ©1?KN?RF© ?LI©.*!©CKNJMWCCQ©MSP©&0©NFGJMQMNFW© \"CTCJMNKCLR©.PMEP?KKC©#2\".©GQ©RM©BCTCJMN©advocates the “develop from within” approach towards GBCLRGdžCB©CKNJMWCCQ©MD©RFC©1CLGMP©#VCASRGTCQ©LSPRSPGLE©CKNJMWCCQ ©1RCKKGLE©DPMK©RFGQ©MSP©&0©.MJGAW© to Senior Manager grades in order to ensureFramework is geared to cultivate employee productivity a continuous talent / leadership developmentin a manner that would accomplish personal goals pipeline.alongside corporate ambitions. 1NCAGdžA©-@HCARGTCQ-SP©GLRCPL?J©NPMKMRGML©NMJGAW©?JJMA?RCB©džPQR©NPCDCPCLAC© ã© 'BCLRGDW©QCJCAR©?LB©©BCTCJMN©?©NMMJ©MD©FGEF©to internal candidates by earmarking potentialcandidates to be promoted from the existing ranks. As a talented Senior Executives / Senior Managerspre-requisite to hiring, we are also keen to determine if capable of supporting the Bank’s current andthe potential employees’ personal goals mirror our social future business requirementsvalues and long term corporate values. ã© !J?QQGDW©GBCLRGdžCB©R?JCLRQ©@?QCB©ML©RFCGP© potential/performance and introduceThus in keeping with our goal to be an employer of development interventions coupled withchoice, all potential candidates are assessed and business strategy of the Bankthoroughly evaluated to ascertain their level of ã© Deliver integrated learning and developmentcompetency and degree of value alignment. processes Target Group At the initial stage, the programme intends to AMTCP©©CKNJMWCCQ©GL©©1CLGMP©#VCASRGTC©'©RM© Senior Manager Grades
76 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EmployeesStrong employee SPECIAL FACILITIESrelations, remainsthe key to preventing .0-4'1'-,©-$©$3**7©#/3'..#\"©12 $$©employee migration /3 02#01© ,\"©20 4#**',%©#6.#,1#1©$-0©and sustaining a skilled 2&-1#©12 $$©+#+ #01©12 2'-,#\"© 5 7©$0-+©resource pool. 2&#'0©&-+#2-5,1©© 11'%,#\"©2-©\"'$$'!3*2© 12 2'-,© 0 ,! Ms Pubudu Ratnayake EMPLOYEE BENEFIT STRUCTURE 24©.PCQCLRCP© ©1?KN?RF© ?LI©2C?K©+CK@CP 1?KN?RF© ?LI©.*!©F?Q©?JU?WQ©@CCL©?©ICCL©NPMNMLCLR© For me, being a part of the team Sampath has of fair and equitable remuneration for all employees, ?JU?WQ©@CCL©?©EPC?R©FMLMSP ©'©@CJGCTC©RFC©RC?K©QNGPGR© in accordance with the relevant Statues. The Bank inculcated at the Bank has taught me invaluable maintains the wages level above the minimum local life lessons and has been the key to my success in U?ECQ©JCTCJ©GL©1PG©*?LI? JGDC ©+MPCMTCP©RFC©ILMUJCBEC©?LB©CVNCPGCLAC©'©F?TC© gained as part of my job has encouraged me to Over and above the mandatory stipulations, Sampath achieve both my personal and professional goals, and ?LI©.*!Q©AMKNPCFCLQGTC©@CLCdžR©NJ?L©NPMTGBCQ© opened up a whole new world of opportunities for KC©RM©QFMUA?QC©KW©R?JCLRQ ©'©F?TC©DMLB©KCKMPGCQ© employee security and inspires continuous improvement MD©RFC©RGKC©'©U?Q©?DžMPBCB©RFC©MNNMPRSLGRW©RM©UMPI© at every stratum of the workforce. Captioned below is as a television news presenter at a leading media RFC©ECLCP?J©@CLCdžR©QRPSARSPC©?NNJGA?@JC©RM©?JJ©NCPK?LCLR© GLQRGRSRGML©GL©RFC©AMSLRPW ©'©AMLQGBCP©RFGQ©?Q©MLC©MD© CKNJMWCCQ©MD©1?KN?RF© ?LI©.*! the greatest achievements of my career up to now. '©?K©N?PRGASJ?PJW©EP?RCDSJ©DMP©@CGLE©?@JC©RM©R?IC©SN© Annual Bonus based on overall performance of the this stint while serving as a full-time employee of Bank 1?KN?RF© ?LI©.*! ©2FC©QSNNMPR©?LB©CLAMSP?ECKCLR© 0CRGPCKCLR©@CLCdžRQ©©?T?GJ?@GJGRW©MD©?©.PGT?RC© '©PCACGTCB©DPMK©RFC©K?L?ECKCLR©QR?Dž©?LB©KW© .PMTGBCLR©$SLB colleagues at the Bank during this period was an 1R?Dž©JM?LQ©?R©AMLACQQGML?PW©P?RCQ©©GLAJSBCQ© immeasurable strength that words cannot adequately housing loans, vehicle loans, educational loans, express. distress and emergency loans, family loans: loans DMP©KCCRGLE©QNCAGdžA©CVNCLQCQ©PCJ?RGLE©RM©AFGJBPCLQ© education, medical expenses !MKNPCFCLQGTC©KCBGA?J©QAFCKC©©AMTCPGLE© expenses of the employees and their immediate family members 1NMSQ?J©QSNNMPR©GL©RFC©CTCLR©MD©BC?RF©©N?WKCLR© of the equivalent of two years’ salary, to the CKNJMWCCQ©QNMSQC©GL©RFC©CTCLR©MD©?©BC?RF©MD©?L© employee 1SNNMPR©DMP©NPMDCQQGML?J©CBSA?RGML©©N?WKCLR© of course fees, professional memberships for GBCLRGdžCB©AMSPQCQ© 1NCAG?J©D?AGJGRGCQ©©NPMTGQGML©MD©DSJJW©COSGNNCB©QR?Dž© OS?PRCPQ©?LB©RP?TCJJGLE©CVNCLQCQ©DMP©RFMQC©QR?Dž© members stationed away from their hometowns. Holiday bungalow facilities %© ©* ©©#!©
77'KNPMTGLE©RFC© CLCdžR©1RPSARSPC©GL©Employee Engagement Mechanism 1?KN?RF© ?LI©#KNJMWCCQ© QQMAG?RGML©1 # © represents over 90% of employees. The management Made a 11% upward increase of salary in 2014 conducts monthly meetings with them to address 4CFGAJC©?LB©1NCAG?J©*M?L©?KMSLRQ©SLBCP©QR?Dž©JM?L© matters of mutual interest going beyond the collective scheme were increased bargaining mechanisms. We encourage an open door ©QCAMLB©&MSQGLE©*M?L©U?Q©GLRPMBSACB communication policy within the organisation to identify A reduction of interest rates was made to loans that may arise which require attention. obtained by employees outside the employee @CLCdžR©QAFCKC© 1?KN?RF©,GEFR© Stipulated waiting period to obtain a second vehicle was reduced Mr S SivaneshanASPECT: LABOUR / MANAGEMENT +?L?ECP ©5CJJ?U?RR?©1SNCP© P?LAFRELATIONS 'RQ©?©NPGTGJCEC©?LB©NJC?QSPC©DMP©KC©RM©@C©UMPIGLE©GL©Employee Relations this great institution. Over the years the Bank has helped us to develop personally in our career as wellOur employee relations practices are designed to help as to enhance our living style. The future also looksCKNJMWCCQ©?@QMP@©1?KN?RF© ?LI©.*!Q©T?JSCQ©©?Q©?©N?PR© promising as Team Sampath leads the Bank towardsof their work ethic. Moreover, strong employee relations, the competition of another successful year.remains the key to preventing employee migration andsustaining a skilled resource pool. Underpinned by our&0©NMJGAW©DP?KCUMPI©UC©F?TC©?JU?WQ©NPMTGBCB©?©P?LEC©MD©both formal and informal engagement mechanisms thatencourage freedom of expression among our employees.'L©BMGLE©QM©UC©?BMNR©?©LML BGQAPGKGL?RMPW©?NNPM?AF©RF?R©promotes best practices in managing our workforce.5C©F?TC©BCTCJMNCB©?L©CDžCARGTC©NJ?RDMPK©RF?R©NPMTGBCQ©opportunities for our employees to freely express theirideas and opinions and voice their concerns.While providing valuable insights on employeeperceptions, these interactions also serve as an ongoingreview of our standards and practices, enabling us toengender truly meaningful change at all levels of thebusiness. G4-11 Bank-wide Two Way Communication #LF?LAC©#KNJMWCC©'LTMJTCKCLR©GL©!10© %PGCT?LAC©&?LBJGLE©.PMACQQ© -NCL©\"MMP©?LB©-NCL©$CCB@?AI©.MJGAW© 0CEGML?J©&0©!MMPBGL?RMP©.PMEP?KKC
78 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EmployeesEMPLOYEE ENGAGEMENT INITIATIVES: Sampath Bank Mentoring Programme Detail: Employee Feedback Guide Survey Programme Detail: “Helping Hands” –Programme Scope: A Bank-wide employee feedback Counselling Cellsurvey was conducted, with the technical assistance of*?LI?©+?PICR©0CQC?PAF© SPC?S © Programme Scope:©'L©?BBGRGML©RM©NPMTGBGLE©QNCAG?J© assistance to help employees manage personal issues,The survey covered seven areas: Vision, Job role, in 2014, the scope of the Counselling Cell was expandedWork relations and culture, Training and development, to address work place issues and performance issues as!MKKSLGA?RGML©0CU?PBQ©?LB©0CAMELGRGML©?LB© well. The Counselling Cell now covers the following areas:.CPDMPK?LAC©+?L?ECKCLR©1WQRCK 'LBGTGBS?J©AMSLQCJJGLEOutcome: 'L©©KMPC©RF?L©̎©F?TC©R?ICL©N?PR©GL© Development counsellingRFGQ©QSPTCW©UFGAF©GQ©AMLQGBCPCB©?©TCPW©QGELGdžA?LR©LSK@CP© Group counsellingby the research company. WorkshopsThis survey model revealed that 62% are highly Outcome: 62 team members were counselled during thecommitted to their work where 70% have formed a yearstrong loyalty towards the Bank. .PMEP?KKC©\"CR?GJ©#KNJMWCC©,MRGdžA?RGML© Programme Detail: Regional HR System Coordinator Programme (RHRCP) Programme Scope: ©QNCCBW©?LB©CLjAGCLR©Programme Scope:©'LRPMBSAGLE©?©QCPGCQ©MD©MNCP?RGML?J© communication system that uses SMS mobile technologyAF?LECQ©RM©RFC©CVGRGLE©&0©QRPSARSPC©RFC©0&0!.© to communicate with all team members or segments ofadvocates an innovative approach towards strengthening employees.communications between management and employees. Q©N?PR©MD©RFC©GLRCEP?RCB©AMKKSLGA?RGML©NJ?L©RFC©0&0!.© 1#,1©1?KN?RF©#KNJMWCC©aims to nurture a closer bond with all employees under ,MRGDGA?RGML©1WQRCKRFC©@P?LAF©SK@PCJJ?©?LB©FCJN©K?L?EC©KMPC©CDžCARGTC©&0©support for the day-to-day operations of the business.Outcome:©'L©©©@P?LAFCQ©UCPC©TGQGRCB©?LB©MLC©RM©one discussions were held with 936 employees Programme Detail: MentoringProgramme Scope: 'LRPMBSACB©GL©RFC©RF©OS?PRCP©of 2014, the Mentoring programme has the followingobjectives: To align team members to the Bank’s culture, Sampath values and accepted behaviour within the Bank To ensure development of competencies of the team members within the stipulated time frame To ensure team members contribute towards the overall objectives of the Business Unit / Bank To provide support in addressing grievances / personal issues etc. To monitor and provide appropriate feedback / solutions for performance related issuesOutcome: 55 Mentors were appointed in 2014
7948 Employees Special events of 2014:completed 25 years ofservice with the Bankthis year. Competitions: “Citadel of Wonder” 0CU?PBQ©DMP©!FGJBPCL©MD©2C?K©1?KN?RF© ©Open to all Sampath team members, this competitionwas based on the “Sampath Song” the theme song ofthe Bank, organised with a view to encourage employeesto appreciate the Bank’s intrinsic value culture. Thecompetition rules required participants to send theirresponses as original scripts or video clips created bythem to capture the essence of “Sampath” brand identity,culture and values. ,CR@?JJ©!?PLGT?J© ©\"Citadel of Wonder\" -Visualization of Sampath Song Long Service Awards48 Team members who have completed 25 years ofservice at the Bank were felicitated at a ceremony held atRFC©&C?B©-LjAC Six a Side Cricket Tournament*MLE©1CPTGAC© U?PBQ©© JJ©,GEFR©.GPGRF©!CPCKMLW©
80 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: EmployeesEMPLOYEE WELFARE Zero Accidents2FPMSEF©MSP©#KNJMWCC©5CJD?PC©.MJGAW©UC©PCK?GL©committed to provide an environment that enriches Corporate Meditation for athe mental, physical and spiritual wellbeing of the team Stress-free lifemembers thereby improving their quality of life. Thisstrategy is also deemed to be a key motivating factor #DžMPRQ©DMP©RFC©7C?Pthat would enhance employee commitment and result ina higher level of productivity. Trained 30 employees in First Aid with the NPMDCQQGML?J©?QQGQR?LAC©MD©RFC©1PG©*?LI?©0CB©!PMQQ©ASPECT: OCCUPATIONAL HEALTH AND Society.SAFETY “Corporate Meditation” programme is a pilot project conducted by the Bank as a guidedWe follow a Zero accident work practices. As such we meditation programme focused on deep relaxationseek to create a hazard free environment and have and energy building with a view to enhanceintroduced policies and procedures to secure all premises the health and wellbeing of our employees andin which we operate across the island. Our focus ranges addressing stress related matters.from simple precautions to situations that demandmore complex applications. Basic safety instructions ASPECT: DIVERSITY AND EQUALare prominently displayed at all Bank locations, while a OPPORTUNITYspecialised crisis control plan seeks to contain potentialemergencies. Moreover, a business continuity plan is Q©UC©QRPGTC©RM©?AFGCTC©&0©CVACJJCLAC©GL©MSP©@SQGLCQQ©in place, as a contingency control measure and health we continue to pursue an inclusive strategy to developand safety are considered as priority area under the a work place where equality and diversity feature prominently in the people development agenda. SQGLCQQ©!MLRGLSGRW©.J?L ©$SPRFCP©?Q©?©QCPTGAC©QCARMP© .CPDMPKGLE©?L©CVCKNJ?PW©PMJC©UC©@CJGCTC©NPMKMRGLE©organisation, our employees are not exposed to the risk equality and diversity in the workplace is instrumental inof occupational diseases. bringing about systematic societal change as the basis for sustainable nation-wide development in the longer * ©©© term.Athletic Meet 2014
81ASPECT: EQUAL REMUNERATION FOR ASPECT: TRAINING AND EDUCATIONMALE & FEMALE Our Training and Development function is designed Male: Female in a way that it provides a continuous supervisory and remuneration ratio management pipeline for the future, with the desired for 2014 level of competencies to ensure achievement of the objectives of the Bank. The Bank has a comprehensive R©1?KN?RF© ?LI©.*!©DCK?JC©N?PRGAGN?RGML©GQ©QCCL©?R©?JJ© development plan which encompasses technical andlevels of management although the participation rate LMLC©RCAFLGA?J©RP?GLGLE©G C ©JC?BCPQFGN©BCTCJMNKCLR©?LB©remains low at higher levels of management. CVNCPGCLRG?J©JC?PLGLE AVERAGE TRAINING HOURS Key Training Highlights 2013 2014 22.30 Mn 39.99 Mn 47.8 'LTCQRKCLR©GL©RP?GLGLE©0Q 45.00 per 47.81 per Average training hours annum annum .#0©#+.*-7##©©.#0© per employee ,,3+ 100% 100% Training delivery rate TOTAL TRAINING HOURS ?LI UGBC 109,019 MALE The Annual Training plan is designed based on the 82,242 FEMALE PCQSJRQ©MD©RFC©2P?GLGLE©,CCB© L?JWQGQ©UFGAF©GLAJSBCQ© competency assessments, customer expectations and developments in the Bank and the banking sector. This exercise is carried out in collaboration with the Heads of Departments who are then provided with the plans PCJCT?LR©RM©RFCGP©\"CN?PRKCLRQ ©'L©©UC©AMLBSARCB© 507 classroom sessions with 172,259 man hours of training and a total of 19,002 man hours of e-learning.% ©* ©©© Training Summary for 2014 Training Hours by Employee Grade Male Female Total Corporate Senior Executive Middle Junior Ops. Man Mgmt Mgmt Mgmt Mgmt Mgmt 1R?Dž© Participants Participants Hours (Man (Man (Man (Man (Man (Man Hours) Hours) Hours) Hours) Hours) Hours) 73,760'LRCPL?J 4,542 4,150 99,805 286 1,393 3,800 15,739 4,827 6,4760CEGML?JExternal 620 492 7,028 - 16 24 236 276 541Overseas -Online 488 420 6,700 484 1,581 1,821 2,038 235English 57,714 16 13 733 44 401 180 108 - 279 492 454 57,714 - - -- - 18,466Online 36 34 279 - - -- -language 18,514 17,089 19,002NPMdžAGCLAW - 0.5 7.5 97 431C *C?PLGLE©programmes
82 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: Employees Leadership and Life Skills Development ?©UGBC©P?LEC©MD©RP?GLGLE©K?RCPG?J©RFC© A?BCKW©MDžCPQ© Programmes a vibrant learning platform that empowers potential DSRSPC©JC?BCPQ © ARGML©-PGCLRCB©*C?PLGLE© QQGELKCLRQ©'R©F?Q©?JU?WQ©@CCL©MSP©?GK©RM©APC?RC©CVCKNJ?PW©AGRGXCLQ© constitutes a large proportion of learning process andwho would drive not only corporate ambition but also the creates a dynamic environment that enables participants to learn, practice and derive results.movement for national development. Cognisant of thisEM?J©2FC©1?KN?RF© ?LI©.*!©*C?BCPQFGN©\"CTCJMNKCLR©Academy strives to develop leaders at all levels. Using Programme Target Group No of Programmes No of Participants 05 29*C?BCPQFGN©\"CTCJMNKCLR©.PMEP?K©@W© Senior Managers 05 127Franklin Covey 02 102 05 118*C?BCPQFGN©\"CTCJMNKCLR© Branch Managers.PMEP?KKC 03 87*C?BCPQFGN©\"CTCJMNKCLR© ,CUJW©.PMKMRCB©#VCASRGTCQ 01 13.PMEP?KKC*C?BCPQFGN©\"CTCJMNKCLR© ,CUJW©.PMKMRCB©(SLGMP©#VCASRGTCQ.PMEP?KKC©*C?BCPQFGN©\"CTCJMNKCLR© #KNJMWCCQ©MD©2PC?QSPW©'2©?LB© SBGR©.PMEP?KKC©DMP©'BCLRGdžCB© DepartmentsDepartments*C?BCPQFGN©\"CTCJMNKCLR© Executives attached to Departments.PMEP?KKC©All employees are subjected to an annual performance 1?KN?RF©!MJMSPQ©,GEFR©reviews and special development plans are provided for % ©* ©©employees who need assistance.ASPECT: LABOUR PRACTICES &GRIEVANCES MECHANISMSThe objective of the policy is to identify, appraise andprovide appropriate solutions / feedback for grievancesof team members arising out of ones’ employment, inorder to enhance employee motivation, commitmentand further strengthen employee relations. The Bankrecognises the importance of providing a fair andtransparent procedure for handling grievances wherethey are managed fairly, sensitively and expeditiously. 36 Grievances
83HUMAN RIGHTS 8CPM©'LBSQRPG?J© DisputesFor our part, we have worked diligently to uphold thedignity, respect and fundamental human rights of all %0'#4 ,!#1©our employees. Moreover, we have always complied 0#* 2',%©2-©&3+ ,©fully with all relevant national regulations concerning 0'%&21©4'-* 2'-,1©our employees and their interests. Our uncompromising ',©©8#0-stance in this regard has led to an unblemished record,with no human rights violations to taint our reputation. ASPECT: SECURITY PRACTICEMoreover, with a view to strengthening employeerelations and maintaining a zero industrial dispute As Bank-wide security is an outsourced service, noenvironment, we provide continuous training on industrial QNCAGdžA©RP?GLGLE©MD©QCASPGRW©NCPQMLLCJ©GQ©A?PPGCB©MSR©@W©relations best practices to employees. the Bank. All such trainings handled by the respective service providers are facilitated by the Bank.Training on Human Rights %©&0©©©©©©.JC?QC©PCDCP©N?EC©©DMP©KMPC©BCR?GJQ 1.#!21©',4#12+#,2©,-,˔DISCRIMINATION, FREEDOM OFASSOCIATION AND COLLECTIVEBARGAININGWe consider freedom of association as a right of eachemployee and respect each individual’s right to be apart of employee associations, provided their actionsdo not violate the laws of the country or infringe on thefundamental human rights of others.ASPECTS: CHILD LABOUR, FORCED OR COMPULSORY LABOUR, INDIGENOUS RIGHTS &ASSESSMENTS Indicator Status1GELGdžA?LR©PGQI©?PGQC©BSC©RM©AFGJB©J?@MSP©MP©WMSLE©UMPICPQ ,M1GELGdžA?LR©PGQI©MD©GLAGBCLR©DPMK©DMPACB©MP©AMKNSJQMPW©J?@MSP ,M'BCLRGdžCB©GLAGBCLRQ©MD©TGMJCLAC©GLTMJTGLE©RFC©PGEFRQ©MD©GLBGECLMSQ©NCMNJCQ ,M
84 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: RegulatorsGiven the nature of our business as a bank, we are stakeholders of the business while at the same time,governed by laws and regulations from multiple ensuring the best possible performance of the Bank.sources. Hence, at Sampath Bank, we strive to achievea standard of compliance which exceeds the mere legal All compliance procedures and guidelines are clearly setrequirements and voluntarily apply higher standards of MSR©GL©?© M?PB©?NNPMTCB©!MKNJG?LAC©.MJGAW ©2FC©.MJGAW©integrity and ethical conduct at all levels of operation. QNCJJQ©MSR©PGQI©GBCLRGdžA?RGML©PMJCQ©?LB©PCQNMLQG@GJGRGCQ©We remain committed to uphold not only all primary structure and processes, reporting lines and methods forlegislation, rules and standards issued by regulators and risk mitigation among others. Moreover, to indemnify thelegislators, market conventions and codes of practice Bank from any compliance risk, we adopt a three-tieredpromoted by industry associations but also adhere to risk management approach to monitor and mitigate?JJ©GLRCPL?J©AMBCQ©MD©AMLBSAR©?NNJGA?@JC©RM©RFC©QR?Dž© potential threat elements.members of the Bank. We comply with amongst others the following laws andEspousing a compliance-driven culture across the Bankwe have always stressed the importance of compliance guidelines;across all triple bottom line aspects of the business. Webelieve this is the only way to account for any and all © !MKN?LGCQ© AR©,M©©MD©actions that may impact all stakeholders associated with © ?LIGLE© AR©,M©©MD©©?LB©?KCLBKCLRQ©RFCPCRMour business. Structured as a sustainable platform for © 1PG©*?LI?© AAMSLRGLE©© SBGRGLE©1R?LB?PB© AR©,M©growth, our procedures and practices are thus geared tobuild a credible management framework that ensures 15 of 1995RP?LQN?PCLAW©UFGJC©K?GLR?GLGLE©?L©CDžCARGTC©AF?LLCJ©of information disclosure. Accordingly we embrace a © 'LJ?LB©0CTCLSC© AR©,M©©MD©©©MRFCP©PCJCT?LR© ARQgovernance framework that promotes clear and unbiased © !MJMK@M©1RMAI©#VAF?LEC©*GQRGLE©0SJCQ©CRAdisclosures, proper accountability to all stakeholders © $GL?LAG?J©2P?LQ?ARGMLQ©0CNMPRGLE© AR©,M©©MD©©?LB©RFC©KGRGE?RGML©MD©AMLLJGARGLE©GLRCPCQRQ©?KMLE©ICW© %JM@?J©0CNMPRGLE©'LGRG?RGTCQ©%0'©% ©%SGBCJGLCQ© MD©RFC©3LGRCB©,?RGMLQ©%JM@?J©!MKN?AR©3,%!© principles for human rights, labour, environment and anti-corruption The above list is not exhaustive. G4 - 56, 57, 58Materiality Assessment Boundary Sustainability Sustainability 1GELGdžA?LAC©RM© 1GELGdžA?LAC No Aspect Sampath Bank Sampath Bank to Stakeholders 0CESJ?RMPW© MBGCQ Sampath Bank 1 0CESJ?RMPWQR?RSRMPW©DP?KCUMPI Sampath Bank High High 2 LRG©©KMLCW©J?SLBCPGLE Sampath Bank High High 3 )LMU©WMSP©ASQRMKCP©)7! High High 4 'LBSQRPW©@CQR©NP?ARGAC High High1SQR?GL?@GJGRW©1GELGdžA?LAC©RM©1?KN?RF© ?LI H 1, 2, 3, 4 H High M M Medium * * *MU * MH Sustainability Significance to Stakeholders
85Stakeholder: Society2&#©\"#1'0#©2-©+ )#© ©\"'$$#0#,!#©˙© Stemming from this broader economic context, weLOCAL COMMUNITIES believe that the livelihood and well-being of the people, businesses, and communities we serve today, as well as G4 - DMA those we will serve tomorrow, will depend on access to critical resources. We reinvest back into the community,+ , %#+#,2© ..0- !&©˔©!-++3,'27 @W©MDžCPGLE©džL?LAG?J©QSNNMPR©RM©D?AGJGR?RC©?AACQQ©RM©We believe that Social Development is an such critical resources needed to produce empoweredongoing process that has a monumental communities across the nation. Moreover, we alsoimpact on individuals and the communities encourage our management team and employees toRFCW©JGTC©GL ©'R©GQ©MSP©NPGMPGRW©RM©CKNMUCP© generously dedicate their time and engage their talentsthese community cells in such a manner that to better serve the communities associated with ourwill enable them to overcome both real and UMPI ©'R©GQ©RFGQ©NFGJMQMNFW©RF?R©FCJNQ©SQ©DMQRCP©FC?JRFW©perceived limitations and create sustainable communities and strengthen local neighbourhoods inlivelihoods for the future. order to steer the course for a better tomorrow.As we endeavour to address national priorities Total Resource Allocation for CSR inGL©RFGQ©K?LLCP©?JJ©MSP©CDžMPRQ©?PC©A?PPGCB©MSR© © ̎©MD©.MQR R?V©.PMdžR©MD©with the active participation of team Sampath,encompassing our island-wide network of (Budget Rs 34.3 Mn)branches, Moreover, aligned to our value?BBCB©QRP?RCEW©BPGTCL©!10©?NNPM?AF©?JJ© Actual Commitment for CSR in 2014:projects are structured in a manner that would Rs 62.3 Mnconvey truly meaningful value to people andcommunities across the country. No of CSR Projects in 2014: 277'L©©UC©AMLBSARCB©© ©AMKKSLGRW© SUBSCRIBING TO A NEW PARADIGM OFdevelopment projects island-wide to improve SOCIAL RESPONSIBILITY AND CORPORATEand develop, marginalised communities and ACCOUNTABILITYeconomically challenged communities acrossthe island. We strongly believe that responsible stewardship is the key to creating a sustainable future for all communitiesBeing clearly ingrained into our cultural fabric, right associated with the business. By following an integratedfrom the inception, social responsibility and corporate approach that imbues greater social responsibility andaccountability have always been allocated equal priority corporate accountability on our part, we subscribe toin the day-to-day business functions of Sampath Bank responsible business practices that are interwoven into.*! ©1WK@MJGA©MD©AF?LEGLE©RGKCQ©?LB©SLAF?LEGLE©T?JSCQ© RFC©EMTCPL?LAC©DP?KCUMPI © R©1?KN?RF© ?LI©.*!©RFC©MSP©!10©NFGJMQMNFW©GQ©BCQGELCB©RM©CTMJTC©GL©R?LBCK© QRCU?PBQFGN©MD©?JJ©!10©?ARGTGRGCQ©AMLDMPK©RM©EJM@?JJW©UGRF©1PG©*?LI?Q©CKCPEGLE©QMAGM©CAMLMKGA©LCCBQ © Q© accepted good governance practices and transparenta responsible corporate citizen and a leading Bank in PCNMPRGLE©ESGBCJGLCQ©RF?R©PCLJCAR©RFC©GLRCEPGRW©MD©?JJ©MSP©the country, we continue to play an exemplary role in actions. Moreover, as a policy, the Bank refrains fromconveying change, particularly at a grass root level. SQGLE©!10©GLGRG?RGTCQ©?Q©?©@SQGLCQQ©NPMKMRGML?J©RMMJ ©'L©'L©RFGQ©PCE?PB©?©AJC?P©SLBCPQR?LBGLE©MD©RFC©@PM?BCP© CQQCLAC©UC©@CJGCTC©MSP©!10©CDžMPRQ©?PC©PCLJCARGTC©MD©RFC©socio-economic landscape of the country has helped to BCQGPC©RM©CDžCARGTCJW©K?L?EC©?LB©?AAMSLR©DMP©MSP©?ARGMLQ©BCdžLC©MSP©QRP?RCEGA©!10©NPGMPGRGCQ ©2FGQ©F?Q©GLQNGPCB©MSP© that impact all stakeholders of the business. For ourcommitment to engender sustainable social change for part, the opportunity to contribute to matters of national?JJ©AGRGXCLQ©MD©1PG©*?LI? © GKNMPR?LAC©TGQ ? TGQ©MSP©QRP?RCEW©BPGTCL©!10©?NNPM?AF©GQ© what we consider an honour in service to the nation.
86 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: SocietyBy following an Q©?L©?LjPK?RGML©MD©MSP©AMKKGRKCLR©UC©?JJMA?RC©̎©integrated approach MD©RFC©NPMdžR©?NJCP©R?V©MD©RFC©NPCTGMSQ©WC?P©RM©RFC©!10©that imbues greater $SLB©UFGAF©GQ©SQCB©RM©KCCR©RFC©AMQR©MD©?JJ©!10©NPMHCARQ ©social responsibility and The overall stewardship of the fund is listed under thecorporate accountability NSPTGCU©MD©RFC©!10©AMKKGRRCC©JCB©@W©RFC©+?L?EGLE©on our part, we Director with designated appointees to identify andsubscribe to responsible GKNJCKCLR©NPMHCARQ©SLBCP©C?AF©!10©©1SQR?GL?@GJGRW©.GJJ?P business practices. G4-42 CSR GOVERNANCE STRUCTURE MANAGING DIRECTOR Overall CSR Leader Leader Leader Leader Leader Leader Education for Empowerment of Entrepreneur Ethics and Environment Development Community Protection and Development Values Conservation Brand Manager - CSR !10©©1SQR?GL?@GJGRW©-LjACP CSR Assistant - CSR Assistant - CSR Projects CSR Reporting Sampath Team Members Encouraging each employee to embrace the role of a CSR ambassador
87SOCIAL IMPACT ASSESSMENT RCKNJ?RC©MSP©KCRGASJMSQ©KMLGRMPGLE©NPMACQQ©MDžCPQ©?© broader change perspective. As such no negative impactsUpon completion of a project, we continue to assess how have been reported for projects undertaken during 2014.each undertaking may impact the triple bottom line i.e..CMNJC©.J?LCR©?LB©.PMdžR ©#VCASRCB©@W©?©UCJJ QRPSARSPCB©INPUTS PROJECT IMPLEMENTATION Funds *?@MSP Time Knowledge / Expertise -RFCP©0CQMSPACQ TRIPLE BOTTOM LINE IMPACT ASSESSMENTPEOPLE PLANET PROFIT1MAGM©©#AMLMKGA© Bio Diversity 1R?ICFMJBCPQ©4?JSC©Development Management CreationEntrepreneur ,?RSPC©!MLQCPT?RGML 0CQNMLQG@JC© SQGLCQQ©Development .P?ARGACQ 0CBSAC©2MR?J©!?P@ML©Employee Wealth Emission Good GovernanceMaximisation 0©.P?ARGAC©ML©0CBSAC© 0GQI©+?L?ECKCLR&SK?L©0GEFRQ 0CSQC©?LB©0CAWAJC©©MD© 0CQMSPACQ,ML© ©\"GQAPGKGL?RGML 1.#!2© ,2'©˔©!-003.2'-,© 2FCPC©GQ©LM©QGELGdžA?LR©PGQI©PCJ?RCB©RM©AMPPSNRGML©QGLAC© ,2'©˔©!-+.#2'2'4#© #& 4'-30© employee performance is governed by a strict code ofAND COMPLIANCE conduct issued by the Bank. Compliance with these laws, rules and regulations continue to be well monitored. %©©©1-©©©©©©©&0©©$1© As such there have been no reported incidents on corruption. Moreover, we have not been subjected to anyFrom the inception, we have conducted our banking džLCQ©MP©JGRGE?RGML©RFPMSEFMSR©RFC©FGQRMPW©MD©RFC© ?LI©DMP©business with honesty and integrity while strictly non-compliance.conforming to all laws and regulations of the countryincluding anti-corruption regulations. Guided by ourCVCKNJ?PW©NPGLAGNJCQ©UC©F?TC©?JU?WQ©QRPGTCB©RM©DSJdžJJ©RFC©aspirations of all our stakeholders.
88 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: SocietyAs an independent service provider to the nation, Moreover, we do not engage in or promote any kindany kind of political contribution either monetary or of anti-competitive behaviour or anti-trust, monopolynon-monetary is not accepted nor received from any practices and therefore during the reporting period theorganisation. Bank was not subjected to any legal action in this regard. Aspect StatusCommunity risk related corruptions ,M.CLBGLE©GLAGBCLRQ©DMP©AMPPSNRGML©PCJ?RCB©RM©AMKKSLGRW© ,M+MLCR?PW©T?JSCQ©MD©QGELGdžA?LR©džLCQ©ML©?ARGMLQ ,M,ML KMLCR?PW©Q?LARGMLQ ,M*CE?J©?ARGMLQ©MP©NCLBGLE©JCE?J©?ARGMLQ©DMP©?LRG ©AMKNCRGRGTC©@CF?TGMSP ,MTRAINING IN ANTI CORRUPTION POLICIES & HUMAN RIGHTS No Programme Scope No of No of No of Participants Hours Programmes1 Knowledge on advanced human resource management2 Knowledge on banking internal systems, processes and 38 536 10 224 1,242 20 related procedures3 Knowledge on building and maintenance 60 287 54 Knowledge on legal and good corporate governance 52 540 105 Knowledge on procedural aspect in branch operations 2,872 27,250 736 .PMACBSP?J©?QNCAR©ML©APCBGR©©PCAMTCPW©MNCP?RGMLQ© 1,011 11,169 387 .PMACBSP?J©?QNCAR©ML©PGQI©K?L?ECKCLR©?LB©AMKNJG?LAC 271 2,273 108 Knowledge on corporate banking 285 8 43,582 3 Total 4,536 169The above training programmes covered the aspects of anti-corruption policies and human rights.DEVELOPING A STRATEGY DRIVEN CSR socio economic change across broader social strata.POLICY Underscoring the importance of social inclusiveness, the CLQSGLE©!10©T?JSC©ASPTC©CK@CBQ©?©1RP?RCEW©\"PGTCL©!10©'L©PCQNMLQC©RM©RFC©LCCBQ©MD©RFC©AMSLRPW©UC©F?TC©C?QCB© .MJGAW©RF?R©GKN?ARQ©MSP©AMPC©@SQGLCQQ away from a mere philanthropic approach and long since %© ©&0©©1-©©#!©CK@P?ACB©?©EPC?RCP©QRP?RCEGA©DMASQ©RM©AMLTCW©BCdžLGRC©CSR Value Curve - Charity Driven Approach vs Strategy Driven CSR ApproachCharity 'LRCEP?RGLE©!10© Driven 'LGRG?RGTCQ©?Q©?©N?PR©MD© Issue Corporate Strategies Driven Strategy .PMKMRGLE©#KNJMWCC© Driven 'LTMJTCKCLR .FGJ?LRFPMNGA© Community Activities \"CTCJMNKCLR©'LGRG?RGTCQ
89The transition from the conventional charity driven corporate objectives. Centred on the 5E platform, we?NNPM?AF©RM©QRP?RCEW©BPGTCL©!10©KMBCJ©F?Q©?JQM© aim to accomplish corporate goals in sync with nationalBCK?LBCB©?©K?QQGTC©?RRGRSBGL?J©QFGNJ©RM©AF?LEC©RFC© priorities, while promoting global best practices inmindset of employees at all levels of the business. cognisance with community stakeholder interests.Driven by the belief that shared experiences heightenemployee enthusiasm and give birth to greater self- Captioning this approach our initiatives are meant toAMLdžBCLAC©UC©FMNC©RM©GLTMIC©?©QCLQC©MD©AMKKSLGRW© help people to help themselves and help communities toamong our employees and urge them to volunteer pursue their future aspirations. As a priority, we empowerRFCGP©RGKC©?LB©CDžMPR©RM©EGTC©@?AI©RM©QMAGCRW©?Q©KSAF©?Q© community cells in such a manner so as to enable thempossible. By building a corporate culture that inspires the to overcome both actual and perceived limitations and“greater good of society”, we hope to nurture a breed of create sustainable livelihoods for themselves.exemplary citizens who would be the driving force behindsustainable change at a national level. AAMPBGLEJW©!10©NPMHCARQ©GL©PSP?J©?LB©QCKG©SP@?L© sectors focus on small and medium scale projects toSTEP 1: GOALS AND PRIORITIES CLQSPC©@CLCdžRQ©?PC©QF?PCB©?KMLE©?©EPC?RCP©LSK@CP©MD© @CLCdžAG?PGCQ ©5FGJC©APC?RGLE©?©TG@P?LR©QMAGM CAMLMKGA©The strategy driven approach has helped us leverage dimension, grass root level commitment of this nature ison our core competencies and unite our corporate deemed to be the catalyst of change that would translateobjectives in a bid to nurture the desired level of social into coherent economic development at a national levelAF?LEC©GL©RFC©AMSLRPW ©0CNPCQCLRCB©@W©?©QSQR?GL?@JC© RFPMSEF©MSP©#©!10©+MBCJ ©business blueprint, our philosophy resonates progressivechange at a national level vis-à-vis the achievement of 1 +. 2&© ,)©.*!©˔©#©!10©+-\"#*EDUCATION FOR EMPOWERMENT ENTREPRENEURS ENVIRONMENT ETHICS ANDDEVELOPMENT OF COMMUNITY DEVELOPMENT PROTECTION AND VALUES CONSERVATIONBridge the social Address the grass Educate the Accomplishmentand economic root levels by entrepreneurs Minimise the of prospectiveinequality, provide providing basic to facilitate their environmental principles, values,livelihoods to infrastructure or development and issues based on integrity, ethicalthose at the base necessities to enable pave the way for social priorities, behaviour andof promoting the community to wealth creation extend the message professionaleducation and the improve its lifespan than to increase to a large captive advancementdissemination of dependency on audience ofknowledge within borrowings stakeholders andthe country thereby create knowledge on environment conservation STAKEHOLDER MANAGEMENT !SQRMKCPQ©#KNJMWCCQ©!MKKSLGRW©#LTGPMLKCLR©0CESJ?RMPQ©1F?PCFMJBCPQ©1SNNJGCPQ SUSTAINABLE DEVELOPMENT 'BCLRGdžA?RGML©MD©)CW©'QQSCQ©GL©+?PICR©.J?AC© AFGCTGLE©-PE?LGQ?RGML?J©?LB©,?RGML?J©%M?JQ
90 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: SocietySTEP 2: MANAGING COMMUNITY An essential pre-requisite of a sound business model,STAKEHOLDERS stakeholder management and engagement continues to play a crucial role in the formulation of our sustainableHaving clearly understood that partnerships are the !10©QRP?RCEW ©2M©E?SEC©RFC©NSJQC©MD©C?AF©QR?ICFMJBCP©key driver of success, we have always sought to foster cluster, we pursue a range of engagement mechanismsstrong relationships with all community stakeholders. from time to time, which act as compass to transmit'L©UMPIGLE©RMU?PBQ©?©AMKKML©EM?J©UC©F?TC©RFSQ© change. By realigning key social and economicleveraged on our solid communicative culture to promote parametres of the business in this manner we are ablemeaningful dialogue with all community stakeholders to deploy timely action to address the most pertinentand interested parties. While these collaborations have issues.laid the groundwork for immediate change, we believethe ensuing synergies would set the stage for sustainabledevelopment in the future.STEP 3: IDENTIFICATION OF MATERIAL ASPECTS AND BOUNDARIES No Aspect Boundary Sustainability Sustainability 1GELGdžA?LAC©RM© 1GELGdžA?LACSocial: Society Community Sampath Bank to Stakeholders1 *MA?J©AMKKSLGRGCQ Sampath Bank2 LRG©©AMPPSNRGML Sampath Bank High High3 .S@JGA©NMJGAW Sampath Bank High High4 Anti-competitive behaviour Sampath Bank High High5 Compliance Supplier Medium Medium6 Supplier assessment for impact on society Sampath Bank High High7 Grievance mechanism for impact on Medium *MU *MU *MU societySTEP 4: MATERIALITY ASSESSMENTSustainability Significance to Sampath Bank 1, 2, 3, 5 H M6 4 *7 H High M Medium * MH * *MU Sustainability Significance to Stakeholders
91*-! *©!-++3,'27©%0'#4 ,!#©.0-!#11©˙©2&0-3%&© %©©©©©©©©©©©1-©#!©©©EXECUTING PROJECTS UNDER 5E CSR FRAMEWORKIDENTIFICATION OF COMMUNITY GRIEVANCES / KEY ISSUES IN MARKET PLACE Lack of infrastructure Lack of education facilities for our children Lack of education and training for livelihood development *?AI©©MD©GLDP?QRPSARSPC©D?AGJGRGCQ©GL©U?P©?DžCARCB©?PC?Q National health issues – Lack of health facilities for local community Environment pollution and related grievances Categorisation of Issues Education Empowerment Entrepreneur Ethics and Environment for of Community Development Values Protection and ConservationDevelopmentStep 1 Project Evaluation, Implementation, Monitoring & Stakeholder EngagementStep 2 QQGELGLE©?©3LGR©*CTCJ©!10©!MKKGRRCC©AMKNPGQGLE©MD©1?KN?RF©RC?K©KCK@CPQ©Step 3 !MKKSLGRW©JC?BCPQ©?LB©!SQRMKCP©©1MAG?J©LML NMJGRGA?J©GLRCPCQR©N?PRGCQ©Step 4 representing the areaStep 5 .PCN?P?RGML©MD©?©NPGMPGRW©JGQR©@?QCB©ML©MSP©QRSBW©džLBGLEQ©©M@QCPT?RGMLQ©?LB© AMKKSLGRW©KCK@CPQ©TGCUQ Assigning project objectives, key actions, resource requirements, time frame and involvement of Sampath team members QQCQQKCLR©MD©RFC©NPMHCAR©?E?GLQR©AMPNMP?RC©!10©ESGBCJGLCQ©PCQMSPAC©PCOSGPCKCLRQ© and team involvement 'KNJCKCLRGLE©RFC©NPMHCAR©GL©JGLC©UGRF©?©BCR?GJCB©?ARGML©NJ?L©?LB©RGKCJGLCStep 6 Continuous monitoring and evaluation of project credentials Impact Assessment Grievance Solved? NO YES Reporting and Record Keeping
92 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: Society*-! *©!-++3,'27©\"#4#*-.+#,2©.0-%0 ++#1©˒˓© 1#\"©ON LOCAL COMMUNITIES’ NEEDS Grievance / Key Issues in Market Place No of Projects Investment Employee Total Man / Financial Engagement Hours SpentEducation 27 Assistance 198 (Approx) Basic Facilities Development 13 Rs Mn *G@P?PW©$?AGJGRGCQ©'KNPMTCKCLR 5 53 4,506 Competencies and Skills 9 12.52 37 Development 108 779 188 2.97 174Community 0.89 3,553 14 8.66 'LDP?QRPSARSPC©\"CTCJMNKCLR©?LB© ?QGA©$?AGJGRGCQ©$SJdžJJKCLR© 16 215.46 349 5,774 145 Entrepreneur Development 46.20 140 3,320 SME Workshops 9 Financial Assistance 4 1.35 48 864 166.18 -- &C?JRF©$?AGJGRGCQ©'KNPMTCKCLR© U?PCLCQQ©.PMEP?KKCQ 1.46 134 1,246 0.27 27 344KEY INITIATIVES FOR 2014 1 +. 2&©\"'0'+ % ©0- \"+ .©$-0© Empowerment of Community .0-%0#11 An initiative that reinforces our commitment Driven by a deeper understanding to contribute towards progressive national of the impediments that limit development. Underpinned by a series of the progress of society, we GLDP?QRPSARSPC©BCTCJMNKCLR©CDžMPRQ©RFC© strived to transmit ongoing social 1?KN?RF©\"GPGK?E?©0M?BK?N©DMP©NPMEPCQQ© development as a means of initiative aims to enhance basic infrastructure nurturing individuals and investing requirements of predominantly rural the communities they live in. agricultural communities in the island. As a systematic and structuredintervention, these community development initiatives the necessary resources in order to help enhance thewere meant to empower communities with the tools abilities and capabilities of developing communities, werequired to better manage their livelihoods. By providing promote social inclusion in the longer term. Moreover, by creating a comparative platform for progress, these steps also aim to minimise societal inequalities and open the gateway for continuous growth.0CLMT?RGML©MD©)?J?U?L?© ?QC©&MQNGR?J© ©!FGJBPCLQ©5?PB
93Dr H K De S Kularatne MBBS.MS(Surgery) FRCS (Eng) community-based issues. By reshaping attitudes in this manner, these projects hope to encourage employees!MLQSJR?LR©,CSPM©1SPECML© ©,?RGML?J©&MQNGR?J©!MJMK@M to act responsibly in addressing critical issues faced by disadvantaged communities and work towards deriving a'©UGQF©RM©CVNPCQQ©KW©FC?PRDCJR©EP?RGRSBC©RM©1?KN?RF© suitable framework that would transmit lasting change at ?LI©.*!©DMP©EMGLE©@CWMLB©RFC©A?JJ©MD©BSRW©?LB©R?IGLE© a national level.RFC©GLGRG?RGTC©RM©DSJdžJJ©RFGQ©BGPC©LCCB©GL©RFC©,?RGML?J© “Wewata Jeewayak”&C?JRF©1CPTGAC ©1GLAC©PCACGTGLE©RFC©SLGR©RFC©,CSPM©,?TGE?RMP©QWQRCK©F?Q©FCJNCB©SQ©NCPDMPK©KMPC© LAFMPCB©RM©RFC©1?KN?RF©\"GPGK?E?©0M?BK?N©DMP©than 180 successful neuro surgeries to date, using .PMEPCQQ©RFC©5CU?R?©(CCU?W?I©NPMEP?KKC©GQ©?©the sophisticated precision scanning technology committed endeavour to restore the country’s ancientto pinpoint the exact location where surgery and GPPGE?RGML©LCRUMPI©RF?R©F?Q©QSDžCPCB©LCEJCAR©?LB©PSGL©CVAGQGML©MD©RSKMSPQ©MD©RFC©@P?GL ©'L©RFGQ©K?LLCP©UC© MTCP©RGKC ©*?SLAFCB©GL©(SJW©©RFC©džPQR©NF?QC©MD©RFC©F?TC©@CCL©?@JC©RM©GKNPMTC©RFC©OS?JGRW©?LB©CLjAGCLAW© “Wewata Jeewayak” programme saw the restoration ofMD©RFC©QSPECPW©NPMACQQ©UGRF©KGLGKSK©QGBC©CDžCARQ© RFC©\"CK?R?U?©2?LI©JMA?RCB©GL©RFC©.?LBSU?QLSU?P?©while reducing the time taken for each surgical area in the Kurunegala District. By assisting nearly 200procedure. Sampath Bank by this measure has served families in the area to cultivate more than 65 acresmany patients who need critical life saving surgeries. MD©N?BBW©J?LBQ©RFC©PCQRMP?RGML©CDžMPR©AMQRGLE©0Q© © Mn is deemed to bring new hope to the agricultural communities whose livelihood is dependent on an uninterrupted supply of water from the tank. Following the renovation of the Dematawa tank, the resulting increase in the water storage capacity would help to irrigate farm lands throughout the year and enable farmers to harvest both crop seasons, each year. Moreover, with about 80% of the community entirely BCNCLBCLR©ML©N?BBW©ASJRGT?RGML©RFC©PCQRMP?RGML©CDžMPR© would allow farmers to secure a stable livelihood and register improved living conditions culminating in a better quality of life for the community as a whole.&CLAC©MSP©!MKKSLGRW©!?N?AGRW© SGJBGLE©CDžMPRQ©?GK© “Wewata Jeewayak” - Key Highlightsto facilitate a level of societal development that wouldtranslate into tangible results for the future. Objective To support the irrigation requirements of the agriculture-based communitiesCOMMUNITY EMPOWERMENT THROUGHTHE DEVELOPMENT OF NATIONAL *MA?RGML .?LBSU?QLSU?P?INFRASTRUCTURE CLCdžAG?PGCQ Over 200 families who cultivate over 65 %©©1-©%© 1-©#!©© acres of paddy lands in the area 'LTCQRKCLR 0Q© ©+L Q©%MTCPLKCLR©JCB©GLDP?QRPSARSPC©?LB©PC@SGJBGLE©CDžMPRQ© -NCLGLE©!CPCKMLW©MD©\"CK?R?U?©R?LI© ©.?BSU?QLSU?P?©continue to gather momentum across the country, we “Wewata Jeewayak”have systematically aligned many of our communityA?N?AGRW©@SGJBGLE©CDžMPRQ©GL©AMELGQ?LAC©UGRF©QSAF©GQQSCQ©MD©national importance. Moreover, grass root level capacitybuilding initiatives of this nature are deemed to stimulatethe country’s productivity index while boosting theL?RGML?J©%\".©?TCP?EC From a business perspective, the ensuing improvementsin community livelihoods and living conditions are seenas the cornerstone in attaining our inclusive bankinggoals that seek to grow the bankability of the massisland-wide populace. A notable deviation from the core@SQGLCQQ©MD©RFC© ?LI©RFGQ©QRP?RCEGA©!10©DMASQ©?JQM©?GKQ©to heighten employee awareness regarding pressing
94 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: SocietyMr R M Upali Rathnayake villagers of this remote settlement continued to face untold hardship, with education and business activities!FGCD©'PPGE?RGML©#LEGLCCP©,MPRF©5CQRCPL©.PMTGLAC being curtailed as a result.,CEJCARCB©DMP©BCA?BCQ©RFC©\"CK?R?U?©R?LI©U?Q©GL© Following a comprehensive evaluation of the eligibilityan unusable state. From an engineering perspective, NPMdžJC©MD©RFC©@CLCdžAG?PGCQ©NPGMPGRW©U?Q©?JJMA?RCB©RM©the restoration of the tank was seen as a massive families with children showing outstanding academicundertaking that would be almost the same as potential and families with children preparing for aconstructing a new tank. Thanks to Sampath Bank, we competitive examination within the next six months.were able to carry out a comprehensive restoration Special focus was also allocated to single parent familiesCDžMPR©RF?R©F?Q©LMR©MLJW©PCQRMPCB©RFC©\"CK?R?U?©R?LI© and to non-alcoholic breadwinners. Consequently, tento its original glory, but also reinforced the structural D?KGJGCQ©UCPC©NPMTGBCB©UGRF©CJCARPGAGRW©?R©?©AMQR©MD©0Q©framework for generations to come. 0.29 Mn under the inaugural “Gamata Viduliya” initiative. 2FC©RMR?J©@CLCdžAG?PW©AMSLR©DPMK©?KMLE©RFCQC©D?KGJGCQ© stood at 33 including 19 children. “Gamata Viduliya” Mr G M Wimalarathna LMRFCP©?K@GRGMSQ©SLBCPR?IGLE©@W©1?KN?RF© ?LI©.*!© .PGLAGN?J© ©'N?JME?K?©4GBW?J?W?©,MAFAFGW?E?K?© LSP?BF?NSP?the “Gamata Viduliya” initiative aims to provide electricityto rural communities who continue to live in little isolated The Sampath Bank sponsored Gamata Viduliyahamlets across the country. The maiden undertaking NPMEP?KKC©F?Q©@CLCdžRCB©RFC©PCAGNGCLR©FMSQCFMJBQ©GL©commenced with the campaign to provide electricity to QM©K?LW©U?WQ ©'©F?TC©LMRGACB©RF?R©AFGJBPCL©DPMK©RFCQC©PSP?J©D?KGJGCQ©GL©RFC©PCKMRC©TGJJ?EC©MD©'N?JME?K?©GL©RFC© @CLCdžAG?PW©D?KGJGCQ©F?TC©@CCL©?@JC©RM©@CRRCP©RFCGP© LSP?BF?NSP?©\"GQRPGAR©GL©RFC©,MPRF©!CLRP?J©.PMTGLAC©MD© academic activities because they are now able to putthe country. Severely handicapped due to lack of basic in extra night-time work. Having a reliable electricityinfrastructure, particularly the lack of electricity, the connection has also helped boost many home-based businesses like tailoring, weaving and pottery. The Gamata Viduliya programme has brought progress RM©RFC©NCMNJC©MD©'N?JME?K?©@W©QSNNMPRGLE©JGTCJGFMMBQ© ?LB©SNJGNJGLE©RFC©JGTGLE©QR?LB?PBQ©MD©RFCQC©PCKMRC© village folk. %©©$1©%?K?R?©4GBSJGW?©.PMEP?KKC
95“Gamata Viduliya”- Key Highlights “Emblem of Hope”- Key HighlightsObjective To elevate the present living status Objective Appended to the Government led of the families, support children for 3RFSPS©+GRFSPS©,MPRF 1MSRF©*MA?RGML their education and also enhance the *MA?RGML reconciliation agenda CLCdžAG?PGCQ self-employment status, inculcating 'LTCQRKCLR positive lifestyle changes by providing Outcome: ,?T?RISJG'LTCQRKCLR electricity to needy families @CLCdžRQ©RM© stakeholders -TCP©0Q©©+L© 'N?JME?K?©4GJJ?EC©GL©RFC© LSP?BF?NSP?© District Additional Travellers - Access to the Yal-Devi @CLCdžRQ railway route 10 families Farmers - Capacity building 0Q© ©+L Entrepreneurs - Entrepreneur Livelihood Development Projects in BCTCJMNKCLR©?LB©KGAPM©džL?LAC© Navatkuli Including Rebuilding of the schemes Navatkuli Railway Station Students - Education support NNCLBCB©RM©RFC©%MTCPLKCLR©JCB©3RFSPS©+GRFSPS©,MPRF 1MSRF©PCAMLAGJG?RGML©?ECLB?©1?KN?RF© ?LI©.*!©SLBCPRMMI© !MKKSLGRW© 'LDP?QRPSARSPC©RM©PC@SGJB©RFC©,?T?RISJG©0?GJU?W©QR?RGML©GL©RFC©(?DžL?© development and capacity building\"GQRPGAR©?Q©?©N?PR©MD©RFC©PCQRMP?RGML©CDžMPR©RM©PCGLQR?RC©RFC©Yal-Devi railway track, deemed to play a pivotal role in $MJJMUGLE©RFC©,?T?RISJG©QR?RGML©BCJGTCPGLE©KC?QSP?@JC©EPMURF©RM©RFC©U?P©?DžCARCB©K?QQCQ© rebuilding initiative, Sampath BankGL©RFC©,MPRF ©2P?BGRGML?JJW©?©JGDCJGLC©RM©RFC©NCMNJC©MD©RFC© .*!©RMMI©?©QCPGCQ©MD©?BBGRGML?J©,MPRF©RFC©7?J \"CTG©P?GJU?W©PMSRC©PCK?GLQ©?©ICW©?PRCPW© steps to further integrate with@CRUCCL©RFC©,MPRF©?LB©1MSRF ©!CLRP?JJW©JMA?RCB©?BH?ACLR© RFC©AMKKSLGRGCQ©GL©RFC©(?DžL?©to trunk roads and easily accessible to the general public District. Driven by empathy forGL©RFC©QSPPMSLBGLE©?PC?Q©,?T?RISJG©GQ©RFC©NCLSJRGK?RC©QRMN© these people who had lost soML©RFGQ©LMPRFCPL©JGLC©RM©(?DžL? KSAF©1?KN?RF© ?LI©.*!©GLGRG?RCB© a number of measures to bring a glimmer of hope to the lives of these people. While deepening the connection with communities GL©RFC©?PC?©CDžMPRQ©DMASQCB© predominantly on enhancing the facilities available for children. KMLE©RFC©ICW©CDžMPRQ©GL©RFGQ© regard were the refurbishment MD©RFC©,?T?RISJG©AFGJBPCLQ©JG@P?PW© re-stocking of the children’s library at the Chavakachcheri Urban Council and the construction of a children’s park also in the ,?T?RISJG©?PC? ©,?T?RISJG©0?GJU?W©1R?RGML© ©7?J©\"CTG©P?GJU?W©RP?AI Q©NCP©RFC©+-3©QGELCB©UGRF©1PG©*?LI?©0?GJU?WQ©1*0©?R© the commencement of the undertaking, Sampath Bank .*!©UMSJB©?AR©?Q©RFC©PCQMSPAC©D?AGJGR?RMP©MD©RFC©NPMHCAR © Given that the original infrastructure was completely destroyed during the civil war, the undertaking resulted GL©RFC©PC@SGJBGLE©MD©RFC©DSJJW LJCBECB©P?GJU?W©QR?RGML© complete with all modern amenities including a 24 hour on-site ATM. !MKNJCRCB©?R©?©AMQR©MD©MTCP©0Q©©+L©?LB©MLjAG?JJW© commissioned on 13th October 2014, the rebuilding MD©RFC©,?T?RISJG©P?GJU?W©QR?RGML©CTGBCLACQ©RFC© ?LIQ© commitment to engender meaningful socio-economic
96 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: SocietyFocusing primarily on AF?LEC©DMP©RFC©NCMNJC©MD©RFC©,MPRF©?LB©AMLTCW©SNJGNJGLE©RFC©QR?LB?PB©MD© progressive development at a national level.community education $SPRFCP©@W©JCTCP?EGLE©ML©1?KN?RF© ?LI©.*!Q©AMPC©across the country, all AMKNCRCLAGCQ©UC©CVNCAR©RM©BCTCJMN©?©KSRS?JJW©@CLCdžAG?J©!10©SLBCPR?IGLEQ©?PC© business framework that would produce sustainableaimed at eliminating the QMJSRGMLQ©?LB©CKNMUCP©?JJ©QR?ICFMJBCPQ©GL©RFC©,MPRFCPL©persistent knowledge .PMTGLAC©GL©RFC©AMKGLE©WC?PQ ©disparity that exists in1PG©*?LI? Community Empowerment through Entrepreneur Development (Sampath Mr K Sachithananthan [MA. MSC, DSc Saviya) &MLMP?PW©\"CEPCC; 5FGJC©BGPCAR©AMKKSLGRW©BCTCJMNKCLR©CDžMPRQ©PCK?GL©?L© $MPKCPJW©3,©$ -©AMLQSJR?LR integral part of our operational code, we also remain committed towards long-term community building Equipping a library catering mostly to students through our involvement in supporting local businesses enhances general knowledge and peripheral and organisations that drive community-based education. Amusement, socialising, peer camaraderie economies. are promoted among kids and juveniles in a children’s park. With a robust library and a modern children’s “Sampath Saviya”- Key Highlights park, Thachchanthopu is a dream-becoming-true location for about 1,500 children in the area. The Objectives Enhancing personal ,?T?RISJG©0?GJU?W©1R?RGML©NPMTGBCQ©AMLLCARGTGRW© entrepreneurial skills RM©?@MSR©©FMSQCFMJBQ©©NCPQMLQ©GL© *MA?RGML 'BCLRGDWGLE©MNNMPRSLGRGCQ©DMP© Thenmaradchy south area. Which is one of the most CLCdžAG?PGCQ expansion of existing businesses KMBCPL©P?GJU?W©QR?RGML©?R©,?T?RISJG©?©JG@P?PW©?LB© 'LRPMBSAGLE©N?PRGAGN?LRQ©RM©RFC© the children’s park at Thachchanthopu are non- 'LTCQRKCLR ability to develop an appropriate Banking outreaches built and donated by Sampath business plan Bank, with futuristic perception. All knowledge .PMBSARGTC©SQC©MD©APCBGR©D?AGJGRGCQ FSLEPW©@CLCdžAG?PGCQ©?LB©AMLLCARGTGRW©JMTCPQ©MD©RFCQC© 'LRPMBSAGLE©@MMI©ICCNGLE©?LB© developmental infrastructure gratis inputs shall record keeping skills remain ever grateful to Sampath Bank. 'LRPMBSARGML©MD©@?QGA©@SQGLCQQ© regulations and labour laws 'QJ?LB©UGBC© 449 entrepreneurs 0Q© ©+L Our initiatives in this regard are meant to help people to help themselves. As a priority we empower community cells in such a manner so as to enable them to overcome both actual and perceived limitations and APC?RC©QSQR?GL?@JC©JGTCJGFMMBQ©DMP©RFCKQCJTCQ ©'L©BMGLE© so, we use a broad range of engagement initiatives to encourage communities to pursue their future aspirations and broader life goals. .?P?JJCJ©RM©RFCQC©KC?QSPCQ©DSPRFCP©CDžMPRQ©F?TC©@CCL© initiated to produce core values of leadership and responsibility as pre-requisites for nurturing sustainable communities in the future.
97 Education for Development Year Average Participants Colour Code 2012 6,500A key indicator of social progress, education continues 2013 9,100to play an increasingly decisive role in realising self- 2014 9,655sustainable and equal development across a widerL?RGML UGBC©NMNSJ?AC ©0CAMELGQGLE©RFC©GKNMPR?LAC©MD©RFGQ© Special Community Projects Conductedchanging status quo for education, we aim to support in 2014the broader educational needs of selected segmentsMD©QMAGCRW ©$MASQGLE©NPGK?PGJW©ML©SNJGNJGLE©RFC©QR?LB?PB© Dematawa Tank - KurunegalaMD©AMKKSLGRW©CBS?ARGML©?APMQQ©RFC©AMSLRPW©?JJ©!10©undertakings are aimed at eliminating the persistent 0?GJU?W©1R?RGML© ©,?T?RISJGILMUJCBEC©BGQN?PGRW©RF?R©CVGQRQ©GL©1PG©*?LI? ©#VRCLBGLE©@CWMLB©RFC©KCPC©džL?LAG?J©AMKKGRKCLR©UC©?JQM©GLTCQR© Gamata Viduliya - AnuradhapuraAMLQGBCP?@JC©RGKC©?LB©CDžMPR©RM©KCLRMP©@CLCdžAG?PGCQ©UGRF©the appropriate knowledge and skills to ensure that theDSJJ©@CLCdžR©GQ©RP?LQDCPPCB©?Q©LCCBCB © Sampath Bank PLC, Grade 5 Scholarship Support ProgrammeGrade 5 Scholarship Programme 2014 - Key Highlights 1?KN?RF©1?TGW?© ©'QJ?LB UGBCObjective To strengthen the Jaffna country’s primary Navatkuli*MA?RGML education sector at a CLCdžAG?PGCQ grass roots level Mulativu'LTCQRKCLR 10 locations islandwide Approximately 9,655 children 0Q© ©+L L©MLEMGLE©GLGRG?RGTC©RF?R©MDžCPQ©AMKNPCFCLQGTC© Vavunia Padaviyasupport for students preparing for the annual Grade 51AFMJ?PQFGN©CV?KGL?RGML©GL©1PG©*?LI? ©0COSGPGLE©LM©NPC Trincomaleeregistration, workshops held island-wide are conducted in Kahatagasdigiliyaboth Sinhala and Tamil, to assist students in their chosen AnuradhapuraKCBGSK©MD©GLQRPSARGML ©,MR©PCQRPGARCB©RM©RFC©1?KN?RF©Bank customers only, the highly focused half-day Hingurakgodaworkshops are intended not merely to impart theoreticalILMUJCBEC©@SR©?JQM©RM©MDžCP©ICW©GLQGEFRQ©GLRM©APGRGA?J© Puttalamaspects of the examination process, while also motivatingstudents to aspire for success by envisioning broader Batticaloalife goals. Outlining key aspects of child psychology, eachworkshop is also accompanied by a special counselling Kuliyapitiya Dehiattakandiyasession for parents, to provide insights into childpsychology while highlighting the value of childhood Chilaw Matalenutrition in maintaining good physical health Kurunegala Katugasthota Pannala Kegalle Kandy Hanguranketha Hali-Ela Monaragala Ratnapura Bandarawela Buttala Horana Balangoda Pelmadulla Kalutara Neluwa Deniyaya Embilipitiya Tissamaharamaya Kamburupitiya Galle Dikwella Matara
98 SAMPATH BANK PLC ANNUAL REPORT 2014 Financial, Social and Environmental PerformanceStakeholder: SocietyASPECT: SUPPLIER ASSESSMENT FOR !JC?PJW©BCdžLCB©?NNPMT?J©JGKGRQIMPACTS ON SOCIETY .PMACBSPC©DMP©M@R?GLGLE©OSMR?RGMLQ Tender procedure including tender negotiations %©1-©©© ?LB©K?GLR?GLGLE©AMLdžBCLRG?JGRW© Fair and equitable selection of suppliersSupplier Assessment Optimising competition *MA?J©QMSPAGLE©NP?ARGACQ©?LB©GLAJSQGTC©QMSPAGLEOur suppliers and service providers are selected Dispute resolutionthrough a highly transparent selection process.We adhere to globally accepted best practices that While price and consistent quality remain criticalemphasise the importance of anti-corruption and anti- components, supplier evaluation also focuses oncompetitive behaviour. Our supplier selection criterion establishing the overall capabilities of vendor.is comprehensively structured to cover all aspects ofsourcing and procurement, including the following critical There is no reported negative impact on society throughareas, among others. our supply chain. SUPPLIER EVALUATION CRITERIA Financial Stability 'LBSQRPG?J©1?DCRW© Market / Dependability Environmental Availability / Delivery .PMRCARGML Capability &SK?L©0CQMSPACQ 'LBSSaQfeRPtGy?J© S!MuFap?npGLaly©g0eGQmI©entSchedule / Volume #DžCARGTCLCQQ© Quality 'LLMT?RGML© Technical Handling .?AIGLE On Time Delivery Assess0GQmIe©ntCategories Supplier 0CQMSPACQ© Me*cMhEaGnQiRGsAQmand 0CEGQRPW.PMBSAR©©)LMU FMU Ma.nCaPDgMSePumpKep?lniLteArC© Criteria Supply Chain Management 'LLMT?RGTC©.MUCP Co-operation Supplier Quality Management ComViambeilritcyial Services / Supply /S?JGdžCB©2CAFLGA?J©1R?Dž© .PGAC© Quotation Behaviour Documentation Cooperation Contract ©.PMACQQCQ© Quality Management Cooperation
Search
Read the Text Version
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
- 41
- 42
- 43
- 44
- 45
- 46
- 47
- 48
- 49
- 50
- 51
- 52
- 53
- 54
- 55
- 56
- 57
- 58
- 59
- 60
- 61
- 62
- 63
- 64
- 65
- 66
- 67
- 68
- 69
- 70
- 71
- 72
- 73
- 74
- 75
- 76
- 77
- 78
- 79
- 80
- 81
- 82
- 83
- 84
- 85
- 86
- 87
- 88
- 89
- 90
- 91
- 92
- 93
- 94
- 95
- 96
- 97
- 98
- 99
- 100
- 101
- 102
- 103
- 104
- 105
- 106
- 107
- 108
- 109
- 110
- 111
- 112
- 113
- 114
- 115
- 116
- 117
- 118
- 119
- 120
- 121
- 122
- 123
- 124
- 125
- 126
- 127
- 128
- 129
- 130
- 131
- 132
- 133
- 134
- 135
- 136
- 137
- 138
- 139
- 140
- 141
- 142
- 143
- 144
- 145
- 146
- 147
- 148
- 149
- 150
- 151
- 152
- 153
- 154
- 155
- 156
- 157
- 158
- 159
- 160
- 161
- 162
- 163
- 164
- 165
- 166
- 167
- 168
- 169
- 170
- 171
- 172
- 173
- 174
- 175
- 176
- 177
- 178
- 179
- 180
- 181
- 182
- 183
- 184
- 185
- 186
- 187
- 188
- 189
- 190
- 191
- 192
- 193
- 194
- 195
- 196
- 197
- 198
- 199
- 200
- 201
- 202
- 203
- 204
- 205
- 206
- 207
- 208
- 209
- 210
- 211
- 212
- 213
- 214
- 215
- 216
- 217
- 218
- 219
- 220
- 221
- 222
- 223
- 224
- 225
- 226
- 227
- 228
- 229
- 230
- 231
- 232
- 233
- 234
- 235
- 236
- 237
- 238
- 239
- 240
- 241
- 242
- 243
- 244
- 245
- 246
- 247
- 248
- 249
- 250
- 251
- 252
- 253
- 254
- 255
- 256
- 257
- 258
- 259
- 260
- 261
- 262
- 263
- 264
- 265
- 266
- 267
- 268
- 269
- 270
- 271
- 272
- 273
- 274
- 275
- 276
- 277
- 278
- 279
- 280
- 281
- 282
- 283
- 284
- 285
- 286
- 287
- 288
- 289
- 290
- 291
- 292
- 293
- 294
- 295
- 296
- 297
- 298
- 299
- 300
- 301
- 302
- 303
- 304
- 305
- 306
- 307
- 308
- 309
- 310
- 311
- 312
- 313
- 314
- 315
- 316
- 317
- 318
- 319
- 320
- 321
- 322
- 323
- 324
- 325
- 326
- 327
- 328
- 329
- 330
- 331
- 332
- 333
- 334
- 335
- 336
- 337
- 338
- 339
- 340
- 341
- 342
- 343
- 344
- 345
- 346
- 347
- 348
- 349
- 350
- 351
- 352
- 353
- 354
- 355
- 356
- 357
- 358
- 359
- 360
- 361
- 362
- 363
- 364
- 365
- 366
- 367
- 368
- 369
- 370
- 371
- 372
- 373
- 374
- 375
- 376
- 377
- 378
- 379
- 380
- 381
- 382
- 383
- 384
- 385
- 386
- 387
- 388
- 389
- 390
- 391
- 392
- 393
- 394
- 395
- 396
- 397
- 398
- 399
- 400
- 401
- 402
- 403
- 404
- 405
- 406
- 407
- 408
- 409
- 410
- 411
- 412
- 413
- 414
- 415
- 416
- 417
- 418
- 419
- 420
- 421
- 422
- 423
- 424
- 425
- 426
- 427
- 428
- 429
- 430
- 431
- 432
- 433
- 434
- 435
- 436
- 437
- 438
- 439
- 440
- 441
- 442
- 443
- 444
- 445
- 446
- 447
- 448
- 449
- 450
- 451
- 452
- 453
- 454
- 455
- 456
- 457
- 458
- 459
- 460
- 461
- 462
- 463
- 464
- 465
- 466
- 467
- 468
- 469
- 470
- 471
- 472
- 1 - 50
- 51 - 100
- 101 - 150
- 151 - 200
- 201 - 250
- 251 - 300
- 301 - 350
- 351 - 400
- 401 - 450
- 451 - 472
Pages:
