Breaking News
February 25, 2018 - People want to see BNP’s corrupt leaders in jail: Hanif
February 25, 2018 - People have no sympathy for Khaleda: Rabbi
February 25, 2018 - Bollywood star Sridevi dies of heart attack: PTI
February 25, 2018 - PM seeks people’s alertness against war criminals’ cohorts
February 25, 2018 - Govt never obstructs peaceful democratic movement: Asaduzzaman
February 22, 2018 - Syed Moinuddin Ahmed, AMD of Green Delta Insurance Company Limited (GDIC) and Kazi Borhan Amin Raj, Country Manager of Seba Limited (a concern of Global Agribusiness of Kellogg Company), exchanging an MoU signing documents on Weather Index Based Agriculture Insurance at GDIC office in the city recently. Under the deal, GDIC would provide insurance coverage for the potato farmers of Seba in the Northern and Southern part of Bangladesh. Top officials from both the organizations were present.
February 22, 2018 - Md. Mahbub ul Alam, Managing Director of Islami Bank Bangladesh Limited, presiding over its clients get together on the occasion of Cash Waqf Campaign at a local hotel in Khulna on Saturday. Abu Reza Md. Yeahia, DMD, Md. Maksudur Rahman, Head of Khulna Zone, Md. Shafiul Azam, SVP of the bank, Md. Anwar Hossain, Managing Director of A Hossain Group and Md. Akhtar Hossain Firoz, Chairman of United Group among others were also present.
February 22, 2018 - PM stresses proper use of Bangla
February 22, 2018 - President off to Singapore for medical checkup
February 22, 2018 - Quader demands Bangla as UN official language
February 22, 2018 - BNP should join poll without convicts: Inu
February 17, 2018 - Dr. Mohammed Solaiman, Vice-Chancellor of University of Information Technology and Science (UITS) and M Khorshed Anowar, Head of Business, Retail Banking Division of Eastern Bank Limited (EBL), exchanging an agreement signing documents at the bank head office in the city Wednesday. Under the deal, UITS students will be able to pay their education fees through EBL DROPBOX™, without having any account or card with the bank. Senior officials from both the organizations were present.
February 17, 2018 - Engineer Md. Towhidur Rahman, EC Member of Shahjalal Islami Bank Limited, presiding over its 739th meeting at its head office in the city recently. Akkas Uddin Mollah, Chairman of the Board of Directors, Farman R Chowdhury, Managing Director and Khandaker Shakib Ahmed, Director of the bank among others were also present.
February 17, 2018 - Md. Sohrab Mustafa, DMD of United Commercial Bank Limited, presiding over a training programme on ‘Prevention of Money Laundering, Terrorist Financing and Trade Based Money Laundering’ at the banks head office in the city recently. Md. Zakir Hossain Chowdhury, Operational Head, ABM Zahurul Huda, DGM, Bhaskar Podder, Joint Director, Md. Rokon-uz-Zaman, DD of Bangladesh Financial Intelligence Unit and Abu Sadeque Miah, EVP of the bank were also present.
February 17, 2018 - PM returns home today
February 17, 2018 - Noor for learning history of genocide in liberation war
February 17, 2018 - Wazed Miah’s contribution to be ever remembered: Speakers
February 17, 2018 - BNP trying to skip polls over Khaleda’s release issue: Inu
February 7, 2018 - PM seeks joint efforts of OIC to tap tourism opportunities
February 7, 2018 - Inu asks TV channel owners’ to project peace, non-communalism
February 7, 2018 - Verdict against 4 Noakhali war crimes accused any day
February 7, 2018 - Bangladesh takes place in 5 top growth achievers among LDCs: UNCTAD
February 7, 2018 - Norway to set up 800MW solar power plant in Chandpur
February 7, 2018 - Dhaka becomes OIC “City of Tourism” for 2019
January 30, 2018 - PM arrives in Sylhet on daylong visit
January 30, 2018 - Home minister for collective efforts to combat militancy
January 30, 2018 - BNP enough to break itself: Quader
January 30, 2018 - BIWTA starts drives to free Turag River from illegal occupants
January 28, 2018 - President seeks continued Indonesian help to end Rohingya crisis
January 28, 2018 - 2nd span installation on Padma Bridge today

IFIC Bank looks at inclusive expansion of its banking network to connect the rural unbanked people: Shah A Sarwar

International Finance Investment and Commerce Bank Ltd (IFIC Bank) looks at inclusive expansion of its banking network to connect the rural unbanked people, strengthening its ‘remittance distribution channel’ and making it sustainable in the long run.

“The urban sector is already over saturated regarding expansion. Now, our strategy is quality and inclusive expansion in the rural areas connecting more and more unbanked people,” Shah A Sarwar, managing director and chief executive officer of the bank told recently  in an interview.mdific

Connecting unbanked people is important also because successful remittance business mainly depends on strength of its downstream distribution network, he said.

Mr Sarwar, however, sees materialisation of such expansion of banking service as a challenging task because one has to think over ensuring violable cost of delivery and managing operating risk.

“If we expand business in the conventional bricks and mortar basis, it will not be sustainable model; and when you collect deposit and provide services to the customers among the mass people, managing operating risk is very crucial,” he said.

To successfully meet the challenge, the 30-year experienced banker laid stress on taking help of technology and other innovative methodology.

In this connection, Mr Sarwar mentioned the mobile financial services that the IFIC Bank is set to formally launch next month in the country.

Mr Sarwar also cited different other banking services such as the agriculture and SME loans and microfinance that are useful to connect the unbanked people.

About bringing the remittance, he said, “Major challenge of the successful remittance business is not the upstream collection; rather its downstream distribution is a major issue. If you have a robust downstream distribution of remittance, you can really look for upstream mobilisation.”

Established in 1976, the bank now has 110 branches across the country. The IFIC Bank MD expressed the need for having at least 400 branches that need to be at low cost formula among the mass people. “We are now trying to address it in this way,” he continued.

The bank was set up as a joint venture between the government and sponsors in the private sector to facilitate the international business.

In 1983, when the government allowed banks in the private sector, IFIC Bank was converted into a full-fledged commercial bank. The government now holds 32.75 per cent of its share capital. Directors and sponsors own 8.62 per cent while the rest is held by the general public.

The IFIC Bank is now thinking to convert its conventional banking into Shariah-based one considering its demand in the country and methodological capability to provide services to all the clients, interested in both Shariah-based and conventional banking services.

As a major share holder at the bank, the government already gave ‘no objection’ in this connection. The bank is now applying for permission from other relevant regulators.

“We think that if the IFIC Bank as a first generation bank went into the Shariah-based banking, it would be able to serve the larger community of the people because there is no hindrance for the conventional banking customers to do banking at the Shariah-based one. So, we can serve both,” he said.

“Actually, Shariah-based banking is a kind of methodology of banking; it does not inhibit the conventional banking methodology; if you are habituated in conventional banking, there is no handicap for you to do Shariah-based banking,” he continued.

“But the customers, who want Shariah-based banking, are not interested in the conventional banking. That’s why we are thinking to convert our conventional banking into the Shariah-based one,” Mr Sarwar, who joined the bank as its managing director on December 2, 2012, added.

Mentioning prospects of Shariah-based banking in the country, Mr Sarwar also cited its challenge saying that “It’s a big challenge to do methodological refinement of the system in implementing it in the mass level. Otherwise, you are neither here nor there.”

In a query on what factors led the bank in gaining some recent vivid achievements in profit, return on assets (ROA), earnings per share (EPS) and ROE, he said, “There is no alternative of compliance and governance in a bank. Efficiency, compliance and good governance led the indicators improved, and we are practicing these.”

The IFIC Bank is also aiming to increase its sponsor shares at the Nepal Bangladesh Bank in Nepal from 40 per cent to over 50 per cent. Earlier, IFIC had controlling shares at that bank, he said.

Regarding recent political unrest, he gave a cautious signal to the banking sector. “There will be serious impact of the ongoing political turmoil in the first quarter next year.”

Mr Sarwar started his career as management trainee at ANZ Grindlays Bank in 1982. Over the last 30 years, his career evolved as a well rounded banker with adequate exposure in general management, client coverage, risk management, operations and it management.

About author

Leave a reply

You must be logged in to post a comment.

AWARD

Reflection Team

বাংলা

স্যান্ডউইচের দামে দেহ বিক্রি করছেন গ্রিক নারীরা!

স্যান্ডউইচের দামে দেহ বিক্রি করছেন গ্রিক নারীরা!

ভেঙে পড়ছে গ্রিসের অর্থনীতি। দুই মেয়াদে ক্ষমতায় এসেও সিপ্রাস সরকার চিত্রটা পাল্টাতে পারেনি। দিন দিন বাড়ছে বেকারত্ব। গোটা দেশটার আর্থ-সামাজিক…

Recent Video

Photo Gallery

Folder not found
wp-content/uploads/2012/02/