Commercial Bank of Ceylon
Encyclopedia
Commercial Bank of Ceylon PLC (CBC) is one of the leading commercial banks in Sri Lanka with 200 branches and more than 400 ATM's.The bank has a subsidiary in Bangladesh.
It has been rated as the Best Bank in Sri Lanka by "Global Finance" for the 13th consecutive year and also as the Bank of the Year by "The Banker" Magazine on seven occasions.
History
CBC can trace its history back to 1920 when Eastern Bank, a British overseas bank, opened a branch in Ceylon. In 1957, Chartered Bank
(another British overseas bank; see below) acquired Eastern Bank but ran it separately. Four years later, the Government of Ceylon forbade foreign banks to accept deposits from Ceylonese nationals. In response,
Eastern Bank incorporated its branch under the name, Commercial Bank of Ceylon and took 40% of the equity. CBC got Mercantile Bank of India’s branches in Kandy
, Galle
and Jaffna
as part of a deal that would remove the government’s limit on deposit taking in Mercantile’s remaining branches in Colombo
and Pettah
. The branches actually transferred in 1973. (HSBC
had acquired Mercantile in 1959.) Then in 1971 Eastern bank amalgamated with Chartered Bank, which four years later merged with Standard Bank to form Standard Chartered Bank
.
In 1997 Standard Chartered divested itself of its 40% stake in CBC. DFCC Bank (formerly Development Finance Corporation of Ceylon) acquired 29.5%.
In 2003, CBC acquired Credit Agricole Indosuez's two branches in Bangladesh
at Dhaka
and Chittagong
to become the first Sri Lankan bank to establish operations outside the country. (Banque Indosuez had opened its branches in Bangladesh in 1980.) Also in 2003, the IFC
bought 15% of the bank's share capital from Sri Lanka Insurance Corporation
.
It has been rated as the Best Bank in Sri Lanka by "Global Finance" for the 13th consecutive year and also as the Bank of the Year by "The Banker" Magazine on seven occasions.
History
CBC can trace its history back to 1920 when Eastern Bank, a British overseas bank, opened a branch in Ceylon. In 1957, Chartered Bank
Chartered Bank of India, Australia and China
The Chartered Bank of India, Australia and China was a bank founded in London in 1851/1853 by Scotsman James Wilson following the grant of a Royal Charter from Queen Victoria. It opened its first branches in 1858 in Calcutta and Bombay and then in 1863 in Karachi and Shanghai...
(another British overseas bank; see below) acquired Eastern Bank but ran it separately. Four years later, the Government of Ceylon forbade foreign banks to accept deposits from Ceylonese nationals. In response,
Eastern Bank incorporated its branch under the name, Commercial Bank of Ceylon and took 40% of the equity. CBC got Mercantile Bank of India’s branches in Kandy
Kandy
Kandy is a city in the center of Sri Lanka. It was the last capital of the ancient kings' era of Sri Lanka. The city lies in the midst of hills in the Kandy plateau, which crosses an area of tropical plantations, mainly tea. Kandy is one of the most scenic cities in Sri Lanka; it is both an...
, Galle
Galle
Galle is a city situated on the southwestern tip of Sri Lanka, 119 km from Colombo. Galle is the capital city of Southern Province of Sri Lanka and it lies in Galle District....
and Jaffna
Jaffna
Jaffna is the capital city of the Northern Province, Sri Lanka. It is the administrative headquarters of the Jaffna district located on a peninsula of the same name. Jaffna is approximately six miles away from Kandarodai which served as a famous emporium in the Jaffna peninsula from classical...
as part of a deal that would remove the government’s limit on deposit taking in Mercantile’s remaining branches in Colombo
Colombo
Colombo is the largest city of Sri Lanka. It is located on the west coast of the island and adjacent to Sri Jayawardenapura Kotte, the capital of Sri Lanka. Colombo is often referred to as the capital of the country, since Sri Jayawardenapura Kotte is a satellite city of Colombo...
and Pettah
Pettah
Pettah is an urban neighbourhood of Thiruvananthapuram, the capital of the Indian state of Kerala.-Location:Pettah is on the way to Thiruvananthapuram International Airport and Shanghumugham Beach. Private and KSRTC buses connect Pettah to most parts of the city.The railway station at Pettah is...
. The branches actually transferred in 1973. (HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
had acquired Mercantile in 1959.) Then in 1971 Eastern bank amalgamated with Chartered Bank, which four years later merged with Standard Bank to form Standard Chartered Bank
Standard Chartered Bank
Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries...
.
In 1997 Standard Chartered divested itself of its 40% stake in CBC. DFCC Bank (formerly Development Finance Corporation of Ceylon) acquired 29.5%.
In 2003, CBC acquired Credit Agricole Indosuez's two branches in Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
at Dhaka
Dhaka
Dhaka is the capital of Bangladesh and the principal city of Dhaka Division. Dhaka is a megacity and one of the major cities of South Asia. Located on the banks of the Buriganga River, Dhaka, along with its metropolitan area, had a population of over 15 million in 2010, making it the largest city...
and Chittagong
Chittagong
Chittagong ) is a city in southeastern Bangladesh and the capital of an eponymous district and division. Built on the banks of the Karnaphuli River, the city is home to Bangladesh's busiest seaport and has a population of over 4.5 million, making it the second largest city in the country.A trading...
to become the first Sri Lankan bank to establish operations outside the country. (Banque Indosuez had opened its branches in Bangladesh in 1980.) Also in 2003, the IFC
International Finance Corporation
The International Finance Corporation promotes sustainable private sector investment in developing countries.IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States....
bought 15% of the bank's share capital from Sri Lanka Insurance Corporation
Sri Lanka Insurance
Sri Lanka Insurance Corporation Limited, also known as Sri Lanka Insurance is the largest and strongest composite insurance provider in Sri Lanka. It is the first and only insurance company in Sri Lanka to be assigned a prime AA- rating for Insurance Financial Strength from the global rating agency...
.