National Savings Bank has celebrated her 40th anniversary on 16th March 2012. Although formed by statute in 1972, the Bank’s origin trace back to 1832. With the establishment of Post Office Savings Bank in 1885 the deposits and withdrawals were routed smoothly through the island wide Postal network. On 16th March 1972, the National Savings Bank commenced its operations by an Act of Parliament to reach the goal of effectively channeling the idle money lying in every corner of the island towards the development process of the country. The National Savings Movement, Ceylon Savings Bank and the Savings Certificates Section of the Postmaster General's Department came under a one roof with the formation of the National Savings Bank. Even before its inception as a Bank, it was a financial institution for the little man of the country. This article is not meant to describe the history of the NSB, but to discuss the tragedy it has to face due to a misconduct of few people in the driving seat of the Bank at present. For the last two weeks all the media, especially printed media is bombarded with the news of NSB’s controversial deal of purchasing shares of The Finance Company at an inflationary rate. The ill fated deal was worth Rs.390 Million and created a much chaos among the business community, opposition political parties and especially in the Colombo Stock Exchange. Economists, Financial Analytic and politicians criticized the deal in every possible way providing all the details about the transaction so that the business community and the people that have some sort of business mind have fully updated about the situation. But those economists and analytics have neglected the majority, which are the common people. The people who have built up the assets of the NSB by saving Cent by Cent and Rupee by Rupee. It is the NSB the bank of the little people who has inculcated the savings habit among the people. The burning questions of them not answered were
- Will this ill fated transaction lead the Bank to bankruptcy?
- Will this become another Pramuka Bank scenario?
- What will happen to our money deposited at NSB?
- Is it safe to keep our deposits there?
Sandun joined Lanka Help Magazine as a contributor in June, 2011. He has been consistently writing articles to our magazine. Many useful articles of this site are under Sandun's name.
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