The National Development Bank PLC (NDB) says the estimated loss from the recently reported fraud incident amounts to approximately Rs. 13.2 billion, while assuring that customer deposits remain unaffected and banking operations continue as normal.
In a corporate disclosure issued on 6 April, the bank said investigations determined that the fraud was confined to a specific operational area and involved certain employees acting in collusion. NDB said it is treating the matter with the highest urgency and is working with law enforcement authorities to recover the funds.
The bank said all implicated employees have been suspended and their system access revoked, while individuals connected to the fraud have been arrested. The affected operational unit has also been placed under separate oversight with revised reporting structures and enhanced access controls across the organisation.
NDB said that in the worst-case scenario, the incident would result in an unaudited loss after tax of approximately Rs. 4.0 billion for the quarter ended 31 March 2026, after making full provision for the maximum expected loss.
The bank further noted that it recorded a net profit after tax of Rs. 11.0 billion for the year ended 31 December 2025, with a Rs. 3.5 billion profit in the fourth quarter of 2025. NDB added that its total asset base of approximately Rs. 990 billion as at 31 March 2026 would be impacted by around 0.7 per cent due to the incident.
Despite the impact, the bank said its Common Equity Tier I, Tier I and Total Capital Adequacy Ratios will remain above the minimum regulatory requirements of 7.0 per cent, 8.5 per cent and 12.5 per cent, respectively.
NDB also said the Central Bank of Sri Lanka has been kept fully informed and has extended regulatory support and oversight to ensure adequate liquidity and capital, and maintain stability.
The Central Bank has further directed the bank to suspend the cash dividend payable to shareholders on 6 April 2026, while allowing the scrip dividend to proceed as planned.
The Board of Directors has also decided to appoint an independent forensic auditor to conduct a thorough review of the fraud, its causes and internal controls.
In a separate statement, NDB reiterated that customer balances remain intact and secure, with normal banking operations continuing without interruption. The bank urged the public to avoid speculation or spreading unverified information, adding that customers seeking clarification may contact their nearest NDB branch, relationship manager or customer service hotline on 011 744 8850.
