'Linkage programme' with the NGOs to expand agro-credit schemes soon
FE Report | Monday, 28 July 2008
Mutual Trust Bank Ltd (MTB), a new generation private commercial bank, will launch 'linkage programme' with the non-governmental organisations (NGOs) to expand its agro-credit schemes.
"Currently, we have a strong micro-financing credit facility with Credit and Development Forum (CDF), but we are going to launch a linkage programme with the NGOs to help flourish the rural economy of the country," Kazi Md Shafiqur Rahman, managing director of the MTB told the FE in an interview.
The bank's profit before provision was Tk 514.89 million in the first six months of this calendar year which was Tk 440.51 million in the half year ended on June 30, 2007.
He said the bank's deposit marked a 21.43 per cent rise in the half year ended June 30,2008 to Tk 28,489.37 million over that of the corresponding period of 2007.
The loans and advances rose to Tk 25,687.07 million during the period from Tk 18,313.91 million of June,2007.
The bank has been rated A1 in the long term and ST3 in the short term by Credit Rating Agency of Bangladesh Ltd (CRAB).
A1 in the long term is characterised by good financial conditions, healthy and sustainable franchises and a first rate operating environment while ST3 in the short term reflects satisfactory level of liquidity, internal fund generation and access to alternative sources of funds.
The bank has developed a number of products to cater to the needs of corporate clients, small entrepreneurs and individual clients, the managing director said.
"It offers special products for the remitters, whose hard earned money helps development in the country," he said.
Representatives of the bank in the United Kingdom, the United Arab Emirates, Qatar, Canada and other countries encourage the remitters to send money through formal channel and help the economic activities going, he said.
The bank has signed an agreement with Moneygram, which has global network to channelise funds, he said, adding that the bank will expand its network in Saudi Arabia.
The remitters also get 0.5 per cent more than the normal rate if they deposit with the bank and at the same time get 0.5 per cent less when they take home or any other loans, Shafiqur said.
MTB has launched visa remittance card for the remitters, he said.
The bank started its journey in 1999 and now it has 30 branches across the country.
Six more branches and five SME-cum-remittance centres will be opened by the end of this year, the MD said.
Paid-up capital of the bank rose to Tk 1.24 billion at the end of June, 2008 from Tk 997.9 million of 2007, he said.
"We are helping the small investors so that they can generate more employment and contribute more to the economy," he explained.
Many small investors do not have assets to give as mortgage and they get Tk 0.5 million loan without any collateral, Shafiqur said. "We are expanding network in the rural areas to give more loan to the SME and agriculture sectors."
The bank has sanctioned Tk 20 million loan in the bio-fertiliser project in Dinajpur recently, the managing director said.
Officials of the rural branches are also educating the people about different deposit products and encouraging them to grow habit of savings.
Most of the deposits collected by the rural branches are channelised to the urban areas and more customer-friendly lending products should be provided for the rural clients, he said.
The merchant banking wing of the bank now gives services through five branches in Dhaka and Chittagong and will open more branches, the chief executive said.
The bank has reduced its interest rates for term-financing and working capital to 14 per cent effective from July when it is competitive and concessional for prime customers, he said.
The bank also gives special emphasis on IT and human resource development as it is mandatory to remain competitive, he also said, adding it wants 100 per cent compliance of all regulatory guidelines and core risk guidelines by this year.
A career banker, Kazi Md Shafiqur has a long 34 years of experience.
"Currently, we have a strong micro-financing credit facility with Credit and Development Forum (CDF), but we are going to launch a linkage programme with the NGOs to help flourish the rural economy of the country," Kazi Md Shafiqur Rahman, managing director of the MTB told the FE in an interview.
The bank's profit before provision was Tk 514.89 million in the first six months of this calendar year which was Tk 440.51 million in the half year ended on June 30, 2007.
He said the bank's deposit marked a 21.43 per cent rise in the half year ended June 30,2008 to Tk 28,489.37 million over that of the corresponding period of 2007.
The loans and advances rose to Tk 25,687.07 million during the period from Tk 18,313.91 million of June,2007.
The bank has been rated A1 in the long term and ST3 in the short term by Credit Rating Agency of Bangladesh Ltd (CRAB).
A1 in the long term is characterised by good financial conditions, healthy and sustainable franchises and a first rate operating environment while ST3 in the short term reflects satisfactory level of liquidity, internal fund generation and access to alternative sources of funds.
The bank has developed a number of products to cater to the needs of corporate clients, small entrepreneurs and individual clients, the managing director said.
"It offers special products for the remitters, whose hard earned money helps development in the country," he said.
Representatives of the bank in the United Kingdom, the United Arab Emirates, Qatar, Canada and other countries encourage the remitters to send money through formal channel and help the economic activities going, he said.
The bank has signed an agreement with Moneygram, which has global network to channelise funds, he said, adding that the bank will expand its network in Saudi Arabia.
The remitters also get 0.5 per cent more than the normal rate if they deposit with the bank and at the same time get 0.5 per cent less when they take home or any other loans, Shafiqur said.
MTB has launched visa remittance card for the remitters, he said.
The bank started its journey in 1999 and now it has 30 branches across the country.
Six more branches and five SME-cum-remittance centres will be opened by the end of this year, the MD said.
Paid-up capital of the bank rose to Tk 1.24 billion at the end of June, 2008 from Tk 997.9 million of 2007, he said.
"We are helping the small investors so that they can generate more employment and contribute more to the economy," he explained.
Many small investors do not have assets to give as mortgage and they get Tk 0.5 million loan without any collateral, Shafiqur said. "We are expanding network in the rural areas to give more loan to the SME and agriculture sectors."
The bank has sanctioned Tk 20 million loan in the bio-fertiliser project in Dinajpur recently, the managing director said.
Officials of the rural branches are also educating the people about different deposit products and encouraging them to grow habit of savings.
Most of the deposits collected by the rural branches are channelised to the urban areas and more customer-friendly lending products should be provided for the rural clients, he said.
The merchant banking wing of the bank now gives services through five branches in Dhaka and Chittagong and will open more branches, the chief executive said.
The bank has reduced its interest rates for term-financing and working capital to 14 per cent effective from July when it is competitive and concessional for prime customers, he said.
The bank also gives special emphasis on IT and human resource development as it is mandatory to remain competitive, he also said, adding it wants 100 per cent compliance of all regulatory guidelines and core risk guidelines by this year.
A career banker, Kazi Md Shafiqur has a long 34 years of experience.