Breaking News
June 13, 2022 - Proposed budget seems to be a challenging one: BCI
June 13, 2022 - Equip ‘testing labs’ with modern tech for int’l accreditation: DCCI
June 9, 2022 - Six-Point Demand led to liberation: Joy
May 26, 2022 - Chevron: Soft Skill Bangla App “uttoron” Launching Ceremony
May 26, 2022 - Take care of environment while taking up development projects: PM
May 26, 2022 - Tourism must grow enabling Bangladesh to achieve SDGs: FBCCI
May 26, 2022 - A five-member delegation led by Bangladesh Chamber of Industries (BCI) President Anwar-ul-Azim holding a meeting with Dr Angelika Fleddermann, Country Director of GIZ at the latter’s office in the city on Tuesday.
May 26, 2022 - Modhumoti Bank Limited, rec has been awarded with Letter of Appreciation by Bangladesh Bank (BB) for 100% disbursement of special stimulus refinance scheme for Covid-19 affected agricultural sector. BB Governor Fazle Kabir handed over the letter to Md. Md. Shafiul Azam, Managing Director & CEO of Modhumoti Bank Limited, at BB headquarters recently. Top executives from both sides were present.
May 26, 2022 - Energy-power sector master plan to be ready by Nov
May 26, 2022 - Hassan O. Rashid, Managing Director & CEO of Prime Bank Limited, inaugurates the first-ever 24X5 Trade Shop Service Initiative at a programme in the capital recently. Top officials of the bank were present.
May 23, 2022 - Big, Bold, Beautiful: The all-new Nissan Magnite launched in Bangladesh Loaded with first-in-class features, the B-SUV combines a ‘carismatic’ design, powerful performance and advanced technologies to be the ideal companion for city adventures
May 23, 2022 - Private bank, NBFI employees come under BB overseas travel ban
May 23, 2022 - Max Group Chairman receives IEB’s lifetime recognition
April 30, 2022 - Plastic pollution: A serious threat to environment
April 22, 2022 - Sheikh Rakibul Karim, CEO (CC) of Guardian Life Insurance Limited (GLIL) and Adil Islam, Country Head of Bank Al- Falah Limited, exchanging document after signing an agreement in the capital recently. Under the deal, all the employees of the bank and their families will enjoy group insurance benefits. Top officials from both sides were present.
April 22, 2022 - Walton gets huge customers response to its digital campaign
April 17, 2022 - FBCCI President Md Jashim Uddin speaks at a seminar organised by the apex trade body at its office in the capital on Saturday.
April 17, 2022 - Kyser Hamid, Managing Director and CEO of Bangladesh Finance, inaugurating the new branch of Bangladesh Finance Securities at Chowhatta in Sylhet recently. A.H.M Nazmul Hasan, Managing Director and CEO of Bangladesh Finance Securities, Borun Prasad Paul, Managing Director and CEO of BD Finance Capital Holdings Limited and local elite were present.
April 15, 2022 - Mobile money industry processes record $1.0t globally in 2021
April 15, 2022 - BSCIC fair begins in city
April 15, 2022 - Promote ‘Made in Bangladesh’ brand
April 13, 2022 - Trust deed signed for Tk100cr Golden Jubilee Fund
April 13, 2022 - E-commerce thrives in Bangladesh rapidly
April 13, 2022 - Farman R Chowdhury, Managing Director and CEO at Al-Arafah Islami Bank Limited and Syed Mohammad Kamal, Country Manager of Mastercard Bangladesh, pose for photo after launches the country’s first contactless Islami debit and prepaid cards at a hotel in the capital on Tuesday. Other top officials from both sides were present.
April 13, 2022 - Ibrahim new CEO of PPP Authority
April 7, 2022 - Eshita made first Bangladeshi Bikroy.com CEO
April 7, 2022 - Nasimul Baten, Managing Director and CEO of Delta Brac Housing Finance Corporation Limited (DBH), inaugurating its 13th branch at Moni Chottor in Shaheb Bazar of Rajshahi city on Sunday. A K M Tanvir Kamal, DMD & Head of Credit, Saiyaf Ejaz, Head of Administration & Recovery, Md. Zakaria Eusuf, Head of Loan Operations, Sabed Bin Ahsan, Head of Deposits, Business Planning & Alternate Channels and other senior officials of the company were present.
March 21, 2022 - No cut in VAT on beauty parlour services
March 17, 2022 - Berger inaugurates new flagship outlet in Chittagong
March 17, 2022 - Nagad, Dana enables financial access to the underserved

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

Pori to act in Tauquir’s next

Pori to act in Tauquir’s next

RN Desk;Pori Moni will be seen as the heroine in Tauquir Ahmed’s next film. She will be accompanied by Lux…

Reflection Team

বাংলা

আবদুল্লাহ বঙ্গবন্ধুর আদর্শের পরীক্ষিত সৈনিক ছিলেন: প্রধানমন্ত্রী

আবদুল্লাহ বঙ্গবন্ধুর আদর্শের পরীক্ষিত সৈনিক ছিলেন: প্রধানমন্ত্রী

: প্রধানমন্ত্রী শেখ হাসিনা ধর্ম বিষয়ক প্রতিমন্ত্রী ও একাত্তরের মুক্তিযুদ্ধের প্রবীণ নেতা অ্যাডভোকেট শেখ মোহাম্মদ আবদুল্লাহর মৃত্যুতে শোক জানিয়েছেন। এক…

Recent Video

Photo Gallery

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