Too Much?
"With its copious asset base and over-capitalization, NDB Bank may be loading up on too much into a good thing," Nanayakkara said.
"It appears to be an obese lumbering giant in a sea of slim, swift, muscular competitors. To get its market performance up NDB Bank may need to go through a diet of capital restructuring."
NDB chief executive Eran Wickramaratne says the bank is erring on the side of prudence even if there appears to be too much capital.
"I think on the face of it if you look at ratios in isolation, it is way beyond requirement," says Wickramaratne.
"If you look beyond the ratios I think absolute numbers are not very big, generally there is a capital shortage in the industry.
"It is prudent for domestic and