NDB Bank detects internal fraud with preliminary impact of Rs. 380mn

​National Development Bank PLC has uncovered a fraudulent act committed by certain employees operating in connivance with external parties.

In a formal corporate disclosure to the Colombo Stock Exchange, the bank indicated that preliminary estimates of the financial impact stand at approximately Rs. 380 million. The matter has been promptly directed to law enforcement authorities for investigation and necessary action.

​Seeking to address the situation and provide further clarity to the market, a special press conference is scheduled to be held today (6th). The briefing will feature the participation of top management, led by the Chief Executive Officer. This development comes as the initial corporate release lacked specific operational details regarding how the incident occurred or which specific areas of the institution were compromised.

​Management has candidly conceded that the bank is presently unable to quantify the exact extent of the fraud and cautioned that the final losses could be substantially greater than the initial estimate. Choosing not to speculate on the ultimate financial outcome, the institution stated it is awaiting comprehensive feedback from ongoing criminal and internal inquiries before it can provide the public with more detailed disclosures.

​In an effort to manage the fallout and maintain stakeholder confidence, the bank emphasised its proactive communication with regulators. The Central Bank of Sri Lanka has been formally informed of the matter. Furthermore, the bank intends to cooperate fully with all regulatory authorities to mitigate any resultant damage and ensure that the perpetrators are held fully accountable.

​Crucially for the public and its client base, the bank provided a firm assurance that all customer deposits and account balances remain safe and completely secure. 

According to the official statement released by order of the board, the ongoing investigations into the fraud will have no impact on the bank’s day-to-day operations on an ongoing basis.