DBBL to install 500 more ATMs
Sunday, 29 March 2009
Mehdi Musharraf Bhuiyan
The country's nascent ATM (automated teller machines) network is set for another booming year as one of its leading exponents in the local market- Dutch-Bangla Bank Limited (DBBL), is embarking on a massive expansion of its present ATM infrastructure during the first half of the year 2009.
The bank with the largest ATM network in the country; according to its latest annual report published earlier this month, is looking to install 500 more ATMs and 50 Deposit Kiosk around the regions in the country by the end of June this year.
The DBBL, a second generation private commercial bank has a technological edge over its competitors with its state-of-the-art IT infrastructure being its corner stone.
Currently it offers shared ATM services to 14 other banks through formal agreement whose customers are thus also able to use ATM facilities under the arrangement.
The recent year has seen an unprecedented growth of ATM network in the country; with DBBL, which is the pioneer in the field, leading the way.
As of the end of 2008, the DBBL's ATM network; which has been boosted further by the inclusion of two Mobile ATM booths last year; is supported by 350 units of ATMs spread countrywide, in addition to 750 units of POS terminals situated at various merchant locations.
However, the ongoing ATM bubble may be short lived; as the report warned, "…Bangladesh already has exceeded the number of ATMs the market can handle," adding, "The country has already surpassed many western countries in ATM statistics".
The high popularity and demand of DBBL ATM, the biggest player in the market, is driven by the cost factor; as its clients are getting ATM access free of charge -- the report noted. But on the other side of the story, the profitability in this sector is also limited, it mentioned.
"Even with ATM popularization, the case for its expansion is weakening due to sheer number of ATMs DBBL currently has and will install this year; as well as rising costs and statistical limits," the report says.
Nevertheless; this expansion of ATM network and up gradation of IT and online banking system, the Bank management says; would keep the wheel of growth moving by increasing its deposits by 55.1 percent to Taka 80,000 million in 2009 as against 51,576 million in the previous year.
At the same time, loans are projected to grow by 31.9 percent against Tk. 41698 million in 2008 to Tk. 55000 million during 2009; when DBBL is expecting to open 15 more branches countrywide.
Simultaneously, import and export businesses of the bank are expected to grow by 36.4 percent and 44.7 percent from Tk. 43,999 and Tk. 40083 during the current annum to Taka 60,000 million and Tk. 58,000 million respectively, the annual report says.
During the year 2008, the company's operating profit increased by 45.9 percent to Tk. 1935.87 million and net profit after tax increased by 71.3 percent from Tk. 479.8 million to Tk. 821.7 million.
"Lower cost of fund resulting from improved deposit mix, lower growth in operating cost emanating from better operational efficiency and productivity contributed to higher profit despite higher investment cost in IT platform, more expenditure in CSR related activities and expansion of branch and IT platform," Managing Director of DBBL Yeasin Ali said.
The country's nascent ATM (automated teller machines) network is set for another booming year as one of its leading exponents in the local market- Dutch-Bangla Bank Limited (DBBL), is embarking on a massive expansion of its present ATM infrastructure during the first half of the year 2009.
The bank with the largest ATM network in the country; according to its latest annual report published earlier this month, is looking to install 500 more ATMs and 50 Deposit Kiosk around the regions in the country by the end of June this year.
The DBBL, a second generation private commercial bank has a technological edge over its competitors with its state-of-the-art IT infrastructure being its corner stone.
Currently it offers shared ATM services to 14 other banks through formal agreement whose customers are thus also able to use ATM facilities under the arrangement.
The recent year has seen an unprecedented growth of ATM network in the country; with DBBL, which is the pioneer in the field, leading the way.
As of the end of 2008, the DBBL's ATM network; which has been boosted further by the inclusion of two Mobile ATM booths last year; is supported by 350 units of ATMs spread countrywide, in addition to 750 units of POS terminals situated at various merchant locations.
However, the ongoing ATM bubble may be short lived; as the report warned, "…Bangladesh already has exceeded the number of ATMs the market can handle," adding, "The country has already surpassed many western countries in ATM statistics".
The high popularity and demand of DBBL ATM, the biggest player in the market, is driven by the cost factor; as its clients are getting ATM access free of charge -- the report noted. But on the other side of the story, the profitability in this sector is also limited, it mentioned.
"Even with ATM popularization, the case for its expansion is weakening due to sheer number of ATMs DBBL currently has and will install this year; as well as rising costs and statistical limits," the report says.
Nevertheless; this expansion of ATM network and up gradation of IT and online banking system, the Bank management says; would keep the wheel of growth moving by increasing its deposits by 55.1 percent to Taka 80,000 million in 2009 as against 51,576 million in the previous year.
At the same time, loans are projected to grow by 31.9 percent against Tk. 41698 million in 2008 to Tk. 55000 million during 2009; when DBBL is expecting to open 15 more branches countrywide.
Simultaneously, import and export businesses of the bank are expected to grow by 36.4 percent and 44.7 percent from Tk. 43,999 and Tk. 40083 during the current annum to Taka 60,000 million and Tk. 58,000 million respectively, the annual report says.
During the year 2008, the company's operating profit increased by 45.9 percent to Tk. 1935.87 million and net profit after tax increased by 71.3 percent from Tk. 479.8 million to Tk. 821.7 million.
"Lower cost of fund resulting from improved deposit mix, lower growth in operating cost emanating from better operational efficiency and productivity contributed to higher profit despite higher investment cost in IT platform, more expenditure in CSR related activities and expansion of branch and IT platform," Managing Director of DBBL Yeasin Ali said.