ICB Islamic Bank roadmap aimed at making business competitive
Sunday, 31 May 2009
FE Report
ICB Islamic Bank has developed a roadmap for making the bank competitive.
"The roadmap is aimed to meet the need of our various valued stakeholders including customers, regulators, shareholders and various patrons including media," managing director & CEO of the bank Masihul Huq Chowdhury told the FE in an interview recently.
The roadmap includes launch of core banking solution and making all the branches online, renovation of all the branches in phases, launch of various Shariah-compliant deposit and investment products.
Bangladesh Bank has already approved a five-year business plan of ICB Islamic Bank which will work as the roadmap for making the business successful and competitive within the reasonable period of time, the MD said.
"Our Kawran Bazar, Gulshan and Principal Office have already been renovated and we have opened our new branch at Dhanmondi recently," Chowdhury said.
He said the bank's arrangements are in the pipeline to boost up the flow of inward remittance.
ICB Islamic Bank, previously known as Oriental Bank Ltd was taken over by Bangladesh Bank on June 19, 2006 due to some irregularities done by the previous management and placed under the moratorium.
There was a scheme passed by the Bangladesh Bank named 'Oriental Bank Reconstruction Scheme 2007' to manage the problems focusing primarily on the ways to repay the stuck up deposit to the depositors and other formalities to make the bank get back to the regular banking activities.
Switzerland-based ICB Financial Group Holdings AG bought 52.76 per cent of the shares (3,506,743) of the bank and injected fresh capital worth Tk 3.50 billion. The depositors were given 25 per cent of their respective deposit amount as shares.
The ICB Financial Group became the new majority owner of former Oriental Bank on February 28, 2008.
"Since inception, we are working hard to bring the bank as a fully functional and operational bank with high level of corporate governance," Chowdhury said.
He said the new management is working on automation and centralization which will enable the bank to have its operational efficiency in line with all the leading banks including the foreign banks.
The authorized capital was raised to Tk 10 billion and paid up capital Tk 7 billion under the new management.
Replying to a question on the bank's diversified areas, the chief executive said : Our key areas include SME, Retail and Corporate Banking providing Shariah Compliant range of investment products. Cash Management is one of the key areas where we would like to be the solution provider to our valued customers.
Commenting on the bank's earning in the year 2008, the MD said the management spent the major portion of the time doing the necessary house keeping including classifying the accounts as per the regulatory guideline.
As a result of which there was increase in the classified portfolio as on December 31,2008 resulting to decline in the profit income.
Masihul Huq Chowdhury is the youngest chief executive of any Bangladeshi private commercial bank.
He joined ICB Islamic Bank as MD & CEO in November 2008.
An MBA of IBA, Chowdhury did his honours in Accounting from Dhaka University in 1986 (exam held in 1988).
Ahead of joining ICB, he worked as managing director of IPDC.
He began his career in the American Express bank, later he served in Standard Chartered Bank and Citibank NA in home and abroad.
ICB Islamic Bank has developed a roadmap for making the bank competitive.
"The roadmap is aimed to meet the need of our various valued stakeholders including customers, regulators, shareholders and various patrons including media," managing director & CEO of the bank Masihul Huq Chowdhury told the FE in an interview recently.
The roadmap includes launch of core banking solution and making all the branches online, renovation of all the branches in phases, launch of various Shariah-compliant deposit and investment products.
Bangladesh Bank has already approved a five-year business plan of ICB Islamic Bank which will work as the roadmap for making the business successful and competitive within the reasonable period of time, the MD said.
"Our Kawran Bazar, Gulshan and Principal Office have already been renovated and we have opened our new branch at Dhanmondi recently," Chowdhury said.
He said the bank's arrangements are in the pipeline to boost up the flow of inward remittance.
ICB Islamic Bank, previously known as Oriental Bank Ltd was taken over by Bangladesh Bank on June 19, 2006 due to some irregularities done by the previous management and placed under the moratorium.
There was a scheme passed by the Bangladesh Bank named 'Oriental Bank Reconstruction Scheme 2007' to manage the problems focusing primarily on the ways to repay the stuck up deposit to the depositors and other formalities to make the bank get back to the regular banking activities.
Switzerland-based ICB Financial Group Holdings AG bought 52.76 per cent of the shares (3,506,743) of the bank and injected fresh capital worth Tk 3.50 billion. The depositors were given 25 per cent of their respective deposit amount as shares.
The ICB Financial Group became the new majority owner of former Oriental Bank on February 28, 2008.
"Since inception, we are working hard to bring the bank as a fully functional and operational bank with high level of corporate governance," Chowdhury said.
He said the new management is working on automation and centralization which will enable the bank to have its operational efficiency in line with all the leading banks including the foreign banks.
The authorized capital was raised to Tk 10 billion and paid up capital Tk 7 billion under the new management.
Replying to a question on the bank's diversified areas, the chief executive said : Our key areas include SME, Retail and Corporate Banking providing Shariah Compliant range of investment products. Cash Management is one of the key areas where we would like to be the solution provider to our valued customers.
Commenting on the bank's earning in the year 2008, the MD said the management spent the major portion of the time doing the necessary house keeping including classifying the accounts as per the regulatory guideline.
As a result of which there was increase in the classified portfolio as on December 31,2008 resulting to decline in the profit income.
Masihul Huq Chowdhury is the youngest chief executive of any Bangladeshi private commercial bank.
He joined ICB Islamic Bank as MD & CEO in November 2008.
An MBA of IBA, Chowdhury did his honours in Accounting from Dhaka University in 1986 (exam held in 1988).
Ahead of joining ICB, he worked as managing director of IPDC.
He began his career in the American Express bank, later he served in Standard Chartered Bank and Citibank NA in home and abroad.