NDB Bank fraud shock deepens to Rs. 13.2 bn

Colombo, April 6 (Daily Mirror) - National Development Bank PLC (NDB) said an internal fraud has been quantified at about 13.2 billion Sri Lankan rupees, sharply higher than earlier estimates. 

In a disclosure to the Colombo Stock Exchange (CSE) it added that the fraud was limited to a specific area of operations and recovery efforts are underway with law enforcement support.

NDB said customer balances remain unaffected and operations continue without disruption, while the bank remains well capitalised and liquid. 

The Central Bank of Sri Lanka (CBSL) has directed NDB to suspend a scheduled cash dividend payment and restrict discretionary spending, including branch expansion, while allowing the scrip dividend to proceed. The regulator has also extended support to ensure the bank maintains adequate liquidity and capital.

The bank said it has suspended implicated employees, secured records, tightened access controls and placed the affected unit under new oversight.

 An independent forensic audit will be commissioned to review the incident and strengthen internal systems.