MN7124Developing Organizational

Capabilities Assessment 1
Briefing paper on capabilities at work place

Background of the Organization

Seylan Bank PLC was founded in 1987 and opened its doors for business on 24th
March 1988, in Colombo Fort, the traditional banking district of Sri Lanka's largest city.
Originally named Seylan Trust Bank Limited, it was designated a Licensed Commercial
Bank and incorporated as a public company with a broad base of shareholders. Seylan
Bank PLC is a Public Limited Liability Company incorporated in Sri Lanka and its core
business is Conventional Commercial Banking. It has branches both in urban and rural
areas of Sri Lanka. Seylan bank is functioning with 159 fully-fledged branches, 189
ATMs and 95 student savings centers and 3035 staff members.
From the outset, Seylan Bank presented itself as a flexible, customer-friendly choice,
summing-up its promise in a service motto that soon caught the attention of prospective
customers: 'The Bank with a Heart'.
Recently the bank was announced a new Chairman, Mr. W. M. R. S Dias, who is a
banker by profession, having served Commercial Bank of Ceylon PLC as a Managing
Director/CEO. The bank`s CEO Mr. Kapila Ariyaratne is a skilled person & running the
Bank with Board of Directors & Senior Management team is extremely wonderful. The
bank is doing banking business such as, opening of various types of accounts,
accepting time deposits, granting loans, leasing operations, Treasury management,
Imports & Exports Trade finance, Pawning, Global money transfer services, Travel
cards operations.

Bank achieved a highest ever profits of Rs. 3.83bn for the year 2015. Also the bank was
increased its advance base up to Rs. 193.1bn, deposits base up to Rs. 224.5bn & asset
base by Rs. 296.33bn at the end of year 2015.

1.1 Background to the industry

Banking industries in Sri Lanka play a vital role in the country by providing financial
assistance to other industries, employment generation and product & process
innovation, contributing to the growth of GDP and stimulating other economic activities
in the national economy. Most of the service organizations are trying to speed up the
process of delivering new products and services to their customers and are increasingly
discovering the coordination among marketing, engineering, distribution. Technology is
often considered as a determinant factor of the competitiveness of service industry even
in the banking industry.

Main categories of resources available in Seylan Bank Plc

Physical Resources
1. 159 branch network in rural & urban areas in Sri Lanka
2. 100 student savings centers located in schools
3. 189 ATM network
4. IT division with latest technical equipments & latest technology. We are one of
the pioneer banks in Sri Lanka to implement the latest i-series POWER 7
architecture from IBM.
5. Well maintained staff training centre with a computer lab

Human Resources
1. 3100 experienced committed loyal staff strength
2. Marketing team with qualified staff
3. Qualified Director Board
4. Strong & quick decision making Line Management

Organizational Resources
1. Seylan Bank logo & brand image
2. Strong Fitch Rating (A-)
3. Vast product range with competitive benefits such as Seylan Sure with benefits,
Tikiri Children savings accounts with vast gifts scheme, SMILE III Loan scheme
with lower interest rate of 8% for small & medium entrepreneur, Seylan Thilina
Sayura with benefits, Seylan Harasara with benefits for senior citizens, Bundle of
package for professionals.

Organization Capability and Competitive advantage from learning

Explain

Kays identify three basic types of distinctive capabilities, which are

Reputation
Corporate Architecture
Innovation

Reputation

Corporate Architecture
Innovation

1. Revamped Seylan Sure ,Seylan Thilina Sayura & Seylan Tikiri products to
offer enhanced benefits & values to the customers
2. Seylan bank web site online chat, service, interactive calculator, online
application & secure socket layer certification (SSL)
3. Internet Banking Placement of FDs & opening of new savings accounts ,
straight through fund transfers to other bank account
4. Seylan Flexi-FD as a new product to the market
5. Introduce student savings with gift scheme
6. Develop the existing product to gain customer satisfaction & increase profit
margin
7. Develop products to cater small & medium entrepreneurs
8. Develop schools infrastructure by CSR projects

Use VRIN & RBV (Resource base view) to explain more.

Issues/Challenges in the organization

1. Lack of staff training

2. Issues in recruitment process
3. No transparency in performance appraisal system staff de-motivate
4. No succession plan in the bank to fulfill the future vacant/strategic positions
5. The Bank has not identified appropriate PR tools to enhance the bank image
6. Not enhance the market share
7. Increasing the Staff turnover rate
8. 25% of the branch network are loss making branches
9. Technology had not been properly used for the paperless banking process &
other customers requirements.