NRB Commercial Bank Limited has planned to expand its microcredit programme in different parts of Bangladesh aiming to bring more unbanked people under the banking network, the bank’s top policy-makers have said.
The fourth generation private commercial bank (PCB) is committed to expedite its investment in rural areas in association with the non-governmental organisations (NGOs) for the improvement of the socioeconomic condition of Bangladesh.
The top policy makers also said NRBC Bank is going to expand its microcredit programme in the southern and southeast districts, gradually aiming to bring dynamism in the country’s rural economy.
Such financing will also help develop entrepreneurships across the country in the near future through boosting investment in the real sector, they explained.
As part of the moves, top management of the bank has already decided to enhance their investment in the small and medium enterprises (SMEs) and retail sector to 50 per cent within the next two years from the existing level of 40 per cent.
The scheduled bank prefers banking with common people along with corporate entities for ensuring sustainable development in Bangladesh, according to the policy makers.
“We’re giving emphasis on investment in the real sector for creating employment opportunities across the country,” Parvez Tamal, chairman of NRBC Bank, disclosed while sharing his future business strategies in an exclusive interview with the Financial Express (FE) recently ahead of the bank’s 9th anniversary.
NRBC Bank was established on February 20, 2013 and started operations on April 2 of the same year.
The chairman also said NRBC Bank wants to adopt the latest financial technology (FinTech).
In 2021, the PCB selected the country’s 16 northern districts to boost financing in the cottage, micro, small and medium enterprises (CMSMEs) to help improve socio-economic conditions of the region.
As part of the moves, the private lender has adopted a pilot project worth Tk 6.0 billion for offering microcredit through setting up 131 sub-branches in the country’s northern region.
“We want to move across the country in line with the North Bengal concept,” Mr Tamal, who obtained a post-graduate degree from the Moscow Institute of Statistics and Economics, said while replying to a query.
He also said NRBC Bank has decided to set up 100 more sub-branches in the northern region by the end of 2022 on the same ground.
He said the fourth generation bank is now providing microcredit at rural areas of Bangladesh using partnership with 30 NGOs across the country.
“We’re trying to use NGO’s concept in the banking system for ensuring financial support to the marginal people,” the chairman noted.
NRBC Bank has also helped establish a less-cash society, not cashless one, through setting up 750 sub-branches across the country.
“I am in favour of a less-cash society, not cashless one,” Mr Tamal added.
The chairman also said NRBC Bank is committed to deliver service excellence through providing existing and innovative products in cost and time efficient manner, to its all retail as well as corporate customers.
Talking to the FE, Golam Awlia, managing director (MD) and chief executive officer (CEO) of NRBC Bank, said: “We’ve planned to increase our financing in retail and SME for minimising risk and diversifying portfolios by 2024.
Under the NRBC Bank’s new plans, the investment in retail and SME will be reached at an equal level of corporate entities within the next two years from the existing levels.
“We’re focusing on microcredit along with the SME sector aiming to facilitate the ongoing financial inclusion initiatives across the country,” Mr Awlia, who obtained a postgraduate degree from the University of Dhaka, said while replying to a query.
The senior banker also spoke on different issues including the possible flow of inward remittances and enhancing shock absorbing capacity of banks after phasing out regulatory forbearances of the central bank.
The CEO expected that the inflow of remittance will increase in the coming months ahead of the Holy Ramadan and the Eid-ul-Fitr festival.
“The ongoing pressure on foreign exchange (forex) market may ease slightly in the coming months following higher inflow of remittances along with export earnings,” Mr Awlia said while predicting the country’s forex market situation.
He also said the banks may discourage ‘unnecessary’ imports considering the forex market situation.
“We’ll always be vigilant to maintain banking business risks within our tolerable limit in order to protect depositor’s interest and ensure highest return to the shareholders,” the CEO said while replying to another query.
Currently, NRBC Bank serves its 0.83 million clients through 93 branches, 750 sub-branches, 590 agent banking outlets, nearly 80 ATM (Automated Teller Machine) and CRM (Cash Recycling Machines) booths across the country.
curtsy: the financial express. Bangladesh
