BOC.N0000 ( Bank of Ceylon)

There is no Code in CSE as BOC.N0000 but BOC. D0000. However I coded above as its easy to refer. BOC is fully owned by state.

There is a common belief among many economists that State Businesses are not successful. Many Americans believe that. Yet during the recession of 2008 even Fed Chairman , Ben Bananke was looking forward for favourable response from State owned bank of Korea, Korean Development Bank to save Lehman Brothers.

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Same situation was there in Sri Lanka. BOC being the giant State Bank became the savior  of Seylan Bank.



On 28 December 2008, the regulator replaced Seylan’s board of directors and
placed the bank under the management of the Bank of Ceylon (BOC; rated
‘AA(lka)’/Stable), the largest state bank, in order to restore public confidence
and stem the bank’s failure. The run on deposits was triggered by the failure of
an unregulated entity within the Ceylinco group of companies; the Ceylinco
group owned 23% of Seylan’s voting equity, before a new share issue in October
2009 diluted the group’s stake to 6%. The run on deposits consequently eased,
with the bank reporting a net deposit inflow of over LKR5bn in H209, compared
with a net outflow of LKR9bn in H109. Seylan subsequently lowered the risk
premium on its deposit rates and is currently in line with most peers.

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With this we will look at the position of BOC among other banks and NBFIs.

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BOC is big enough to show the real impact of SL economy since 2011.

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Even though there is a wide gap between COMB and BOC in Revenue, that gap has narrowed in PAT chart.

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Capita Adequacy Ratios

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BOC can be the biggest revenue maker of the country .

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BOC also confirms that Leasing has moved from NBFIs to Banks. It has drained the catchment areas for NBFIs in 2015.

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Gold Pawning by 2015

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Even now Pawning is 10% of the loans and advances by 2014

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Curtailing of gold pawning from 2011 was rather slower compared to other commercial banks.

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Yet its a substantially down from 2013 values.

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That is to 10% from 17%

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BOC which is 76 Years old is proud to state

*. First local bank hat has over LKR 1 Trillion asset base

*. By now the bank advertise of LKR 1 Trillion Deposit base

*. Fitch Rating Lanka AA+ (lka) - a biggest rating awarded to a local commercial bank.

*. The first Sri Lankan bank to issue an international bond (USD 500 million five year tenure bond issue)

Dear YK,

Am I missing something here ??

Other than the fact that BOC is awesome BUT we can't get a piece of it  AND Seylan Bank started doing great AFTER forcefully giving some management lessons by BOC / CBSL.

On a separate note :

I honestly hope that NSB does some wonders with ESL  for the benefit of the retailers who might be stuck with it....

No Cubedsol You are not missing any

BOC is not a listed company. Then why I included that in Banking and Finance field is without the Market Leader the industry analysis is not complete.

Further when we consider other industries we can compare them with Banking Field.

When we evaluate Budget Proposals we can really look into its impact when we have numbers.

For an example last budget proposal had an idea of ending leasing for commercial banks. When we look at the size of leasing shared by banks can that amount be easily absorbed by NBFI sector with the current capacity.

Once we have clear values , we can see the practicality of such ideas. Pawning , credit cards and other financial products status can be checked when we have industry values.


If you have gone through China thread you will come to know how three biggest IPOs of the world by Chinese.

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If China can list its state banks why can't we list BOC and PB..?

Aaahhh.... That's the angle

Thanks YK, will check it out.

YK, your thinking is good. Yes, we have to compare other banks with this giant.

I am going to do the same.

Thanx FG

BOC has increased it's total operating income by 3.9% per quarter (on average) over the last 10 quarters. This is the highest among the major banks

SEYB is at 3.7%

COMB - 3.2%

HNB & SAMP - 3.0%

with today's publishing of BOC reports , let me make a small correction, though I have taken company's revenue for 2015 at 133 B it is corrected to Group's revenue or Gross income of 139 B

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State Banks are often subject to Misrepresentation by media and Cheap Politicians.

One recent mud-slinging against BoC was its Seychelles Branch. It was said to operate just to please three customers.

If this kind of mud-slinging was done against a private owned institute they immediately take legal actions. Even Sir Richard Brandson often taken immediate legal action against any article published against Virgin Group.

However being state owned , it cannot take such actions against cheap politicians but make announcements about the real facts.

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Source: Sunday Observer

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No evidence of money laundering’:

BoC keen to expand business in Seychelles

by Chandani Jayathilleke
The Bank of Ceylon (BoC) wants to expand and continue its businesses in Victoria, Seychelles as the present management sees a huge potential for business growth in that country.
“We want to create a positive image for the bank and increase the number of customers in Seychelles,” Chairman Ronald Perera said.
The bank, he said it is now making operating profits – that is within two years of the opening. In 2015 the bank earned Rs. 32 million as operating profits and plans to increase it to Rs. 46 million in 2016. “We see a lot of untapped potential there and we can do much better in the future,” he told the Sunday Observer.
The BoC branch has 691 customers including Sri Lankans living there and residents and locals in the island. However, the Chairman confirmed that the BoC in Seychelles does not maintain accounts owned by anyone living in Sri Lanka. The branch’s main business includes maintaining savings and current accounts, lending and trading.
Perera also ruled out any possibility of wrongdoings or misusing the bank for illegal, unethical activities since the branch was opened in January 2014. “We have conducted thorough investigations and there was no evidence to confirm illegal activity or money laundering based on this branch,” he said.
Therefore, there is no reason to close down the branch. If it is to be closed down, there should be a good reason such as consistent losses or mismanagement. “We have no such issue with the Seychelles branch. “
There are eight foreign banks in Seychelles and the competition is growing.
“But it is not a tax haven for dodgers. There are strict banking regulations.” Three senior Sri Lankan officials work in the Victoria branch. However, the chairman admitted that the adverse publicity in Sri Lanka has affected the business sentiments in the Seychelles branch.
“We have to convince our existing customers that we are going to be there for a long time and attract new customers to do banking with us in the future. We plan to do a publicity campaign for that,” he said.

Kuwait, Saudi & Lebanon are a few places of high number of Sri Lankan migrant workers already available and why BoC was not thinking of expanding to those areas and only went to dubious places to spread their wings is the question they have to answer in public, money laundering or not.

BOC becomes the first company to be included in industrial analysis for 2017

A splendid revenue gain of 17% compared to last year

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Splendid performance by improving PAT by 40.1% compared to last year.

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