NDB Addresses Fraud Incident and reinforces Financial Strength and Stability

National Development Bank PLC (Bank) wishes to provide a further update on the previously disclosed fraud incident, with a clear assurance to customers and all stakeholders.

The Bank reiterates, that no customer balances have been affected by this incident. All customer balances remain intact and secure. The Bank continues to operate as normal, with uninterrupted services across all operations. Its financial position remains strong, with sufficient capacity to meet all obligations and support customers. 

Further to the disclosure made on 2nd April 2026, the Bank confirms that the incident was confined to a specific operational area and involved certain employees acting in collusion. The matter continues to be treated with the highest level of urgency. 

The Bank has acted promptly and decisively upon identifying the issue. All implicated employees have been suspended, while all relevant records and evidence have been secured to support ongoing investigations. The affected operational unit has been placed under separate oversight, supported by revised reporting structures and enhanced access controls across the organisation. Efforts are ongoing - on multiple fronts - to recover the said funds with the support of the law enforcement authorities, who have taken action including arrests connected to the matter. 

In the worst-case scenario, the financial impact to the Bank is estimated to result in an unaudited Loss after Tax for the quarter ended 31 March 2026 of approximately LKR 4.0 billion, after making full provision for the maximum loss expected from this incident. 

The Bank reported a net profit after tax of LKR 11.0 billion for the year ending December 31, 2025, with a Q4 2025 net profit of LKR 3.5 billion. The Bank remains financially strong: notwithstanding this impact, the Bank’s Common Equity Tier I, Tier I and Total CAR will continue to be above the minimum regulatory requirements of 7.0%, 8.5% and 12.5%, respectively. The unaudited Total Asset Base of the Bank, which is approximately LKR 990.0 billion as at March 31, 2026, would be impacted by 0.7%. 

The Central Bank of Sri Lanka has been kept fully informed. The Central Bank has extended appropriate regulatory support and oversight, within its mandate, to assist the Bank in maintaining adequate levels of liquidity and capital, to ensure smooth functioning and stability of the Bank.

In line with regulatory direction, the cash dividend payable to shareholders on 6th April 2026 has been suspended, while the scrip dividend will proceed as planned.  

The Board of Directors will appoint an independent forensic auditor to conduct a thorough and impartial review of the fraud. 

NDB Bank remains committed to transparency and accountability and will apprise the public as more material information becomes available.

The Bank urges the public to avoid speculation or the spread of unverified information. Customers seeking clarification are encouraged to contact their nearest NDB branch, relationship manager or customer service on 0117448850 for accurate information.