HNB Al Najaah celebrates 10 Years of Islamic banking

Hatton National Bank PLC’s Islamic Banking business celebrated a decade of successful operations under the ‘Al Najaah’ brand.

“By its nature, Islamic Banking enables opportunities for steady growth. Particularly at a time of such severe volatility, this stability is immensely valuable. Taking into consideration the fact that globally, Islamic finance is estimated to have a value of US$ 2.2 trillion, we see the potential for Islamic Banking to make vital contributions in accelerating Sri Lanka’s economic revival.” HNB Managing Director/CEO, Jonathan Alles said.

Head of Islamic Banking, Hisham Ally

Established in 2012 as a small unit with five staff members under the capable leadership of HNB AGM- Head of Islamic Banking, and local pioneer in the field of Islamic banking and finance, Hisham Ally, the division has enjoyed strong growth over the past decade. Today, the HNB Al Najaah has grown to 40 staff with a dedicated office in Marine Drive, Colombo 03 and a further six Islamic Banking centres in Pettah, Kandy, Kalmunai, Beruwela, Akurana and Kattankudy.

“For 134 years we have proven our commitment by aligning ourselves to the needs of the Sri Lankan economy and its development,” said HNB DGM – Wholesale Banking Group Damith Pallewatte.

In addition to consistently achieving the highest profits in the Sri Lankan Islamic Banking sector for the past five years running, since its inception, HNB Al Najaah has continuously been recognized for its remarkable performance. From just its second year of operations, the unit has won awards from the Sri Lanka Islamic Banking and Finance Industry (SLIBFI) as well as the Islamic Finance Forum of South Asia (IFFSA), where it beat out contenders from South Asian giants Pakistan, India, Bangladesh, Maldives, and Kuwait.

Commenting on Al Najaah’s outstanding growth story so far, AGM IBU, Hisham Ally said: “The team is ready to pursue new opportunities, particularly concerning exports – which is the need of the hour – as well as project-based funding with a strong emphasis on renewable energy, Local Manufacturing, Green Agriculture segments.”

Ally added that special priority would be given to the agriculture sector, including paddy cultivation, rice milling, plantations and other emerging agri-business enterprises.

Despite a challenging macroeconomic environment, HNB Al Najaah’s asset and liability books grew by 66% and 30% respectively in 2021. Moreover, HNB Al Najaah has been living up to the bank’s tagline “partner in progress” by maintaining a very close relationship with customers in difficult times.

Non Performing Advances (NPA) was retained below 1%; a remarkable achievement considering industry averages.

New Islamic Banking Centres are to be set up including two new units established in Akurana and Kattankudy.