Breaking News
June 20, 2019 - Begum Zia can be released only in legal way: Hasan
June 20, 2019 - SC upholds HC order declaring gazette on FF’s minimum age illegal
June 20, 2019 - President, PM greet recipients of tree plantation, wildlife conservation awards
June 20, 2019 - CEC hopes for peaceful environment of Bogura-6 by polls
June 20, 2019 - President, PM for preservation of environment to attain SDGs
June 18, 2019 - Shakib’s ton powers Tigers to a facile victory over West Indies
June 18, 2019 - Supplementary budget of Tk 15,166 cr passed
June 18, 2019 - Probe report on Biman pilot’s travel without passport submitted
June 18, 2019 - No positive politics in Oikyafront: Nasim
June 18, 2019 - CAAB urges all not to throw laser ray targeting aircrafts
June 18, 2019 - Tribunal sends ex-Sonagazi OC to jail
June 17, 2019 - General holiday declared at 23 upazilas on June 18
June 17, 2019 - UKBCCI keen to explore opportunities in ICT, garments sectors
June 17, 2019 - Former OC of Sonagazi Moazzem held in capital
June 17, 2019 - Backlog of women, children prevention cases reducing: Anisul
June 16, 2019 - Hasan rejects criticism of CPD, BNP about budget
June 16, 2019 - Quader urges party-men to read budget to reply critics
June 16, 2019 - President, PM urge people to plant more local fruit trees
June 16, 2019 - 5th phase polls in 21 upazilas on June 18
June 16, 2019 - Police compiles citizen data of 63 lakh: DMP Chief
June 15, 2019 - Budget is pro-people, business-friendly, implementable: experts
June 15, 2019 - Bus driver held with 10,000 yaba pills in Dhaka
May 27, 2019 - S.M Amzad Hossian, Chairman of South Bangla Agriculture and Commerce (SBAC) Bank Limited, presiding over its 6th Annual General Meeting at a hotel in the city on Thursday. Vice-Chairman and Khulna City Mayor Talukder Abdul Khaleque and Managing Director Md. Golam Faruque of the Bank were also present.
May 27, 2019 - Bangladesh Development Bank Limited (BDBL) organized a daylong workshop on “e-File System” held on May 25, 2019 at its Karwan Bazar Training Institute. Deputy Managing Director and Managing Director in- Charge, Md. Abdul Matin, inaugurated the workshop as chief guest. Head of Training Institute Rubina Yeasmin Khan, AGM and concerned officials were also present.
May 27, 2019 - Padma Bank to offer new scheme for women
May 27, 2019 - Hasan urges BNP leaders not to do ‘ill politics’ over Khaleda’s health
May 27, 2019 - People don’t trust BNP, says Nasim
May 27, 2019 - PM keeps promise by launching ‘Panchagarh Express’: Sujon
May 27, 2019 - Discussion on Bangabandhu’s birth centenary held
May 27, 2019 - Security strengthened ahead of Eid: DMP commissioner

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

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/