Prime Bank to diversify investment portfolios
Thursday, 13 March 2008
Siddique Islam
Prime Bank Limited, a leading private commercial bank, plans to open more branches and diversify its investment portfolios focusing mainly on retail and small and medium enterprises (SMEs).
"We have planned to open 12 more branches by the end of this year to gear up our business activities across the country," Managing Director (MD) of the bank M Shahjahan Bhuiyan told the FE in an interview.
Currently, Prime Bank, the second generation bank, is conducting its operation through 61 branches across the country. Besides, it has one booth and an off-shore banking Unit (OBU).
It has also plans to boost up its off-shore banking operation in different Export Processing Zones (EPZs) of the country to provide services to the non-resident customers.
The bank has already obtained permission from the central bank for opening three more offshore banking units at Chittagong Export Processing Zone (CEPZ), Comilla EPZ and Adamjee EPZ in Narayangonj.
"We will start off-shore banking operation at CEPZ later this month," the managing director said, adding the bank is trying to set up such units at Comilla EPZ and Adamjee EPZ in Narayangonj.
Prime Bank opened it first off-shore banking unit in 2007 at Dhaka EPZ to provide services to the non-resident customers.
Offshore banking is a unique solution for banks across the globe to carry out international business involving foreign currency denominated assets and liabilities taking advantages of low or no tax burden and higher return on investment.
Prime Bank is now planning to diversify its business aiming to add increased value to shareholders' investments and offer highest possible benefit to their customers.
"We are now focusing more on lending to SMEs and retail clients in order to facilitate small and medium enterprises across the country," Bhuiyan noted.
He also said the bank is now providing 'big loans' only through syndication or club financing arrangements with other banks and financial institutions to minimise financial risk.
"We believe in a balanced growth of the society, therefore, lending to SMEs in addition to the corporate customers," the managing director added.
The management of the bank is putting emphasis on retail banking to facilitate small investors as well as borrowers, he said.
The bank has been regularly extending project finance, lease finance and hire purchase scheme for industrial development of the country.
"We are continuing to play a leading role in consumer banking with expanding and liberalising our financing policy," Bhuiyan noted.
The loans and advances of the bank stood at Tk 57.613 billion as on December 31, 2007 registering an annual growth of 28 per cent. Total export and import business handled during 2007 were Tk 70.617 billion and Tk 51.316 billion respectively.
"Our bank remains strong as all key indicators like capital adequacy, good asset quality, sound management, good earning and strong liquidity have been maintained " the MD observed.
Authorised capital of the bank stood at Tk 4.0 billion and paid up capital at Tk 2.275 billion after payment of bonus share for the year 2006.
Describing various activities of the bank, Bhuiyan said the bank has expanded and consolidated its customers' base in both core business and retail banking.
"We are providing different services to our clients that are helping them run their businesses properly," he said, adding that the bank is trying to improve the efficiency of its officials and motivate clients in conducting businesses smoothly.
The Prime Bank Limited started its journey in 1995 with the firm commitment to excel in customer service.
"We have been able to establish the bank as one of the leading and strongest private commercial bank having made remarkable progress in all areas of operation despite challenging environment," the MD noted.
He also said that Prime Bank follows the fundamental principles of corporate governance, accountability, responsibility and transparency in doing business.
The bank has also planned to connect it all branches with core banking software (CBS) by the end of this year.
"Some 16 branches, including the head office and treasury division, have been successfully migrated to new CBS system and hopefully entire banking operation will be connected with the software by 2008," the chief executive of the bank noted.
It is expected that with the implementation of the new CBS, operational risk will be minimised through control in operation and information on security system, he added.
"Our ATM service will be launched during the first quarter of 2008 and SMS banking and e-banking will start soon with the final installation of Temenos T-24 software," Bhuiyan hoped.
He also said: "To build our bank into an efficient, market driven and customer focused institution with good corporate governance structure, continuous improvement in our business polices and procedures will be done through integration of technology at all level."
The bank has already established arrangements with 24 leading Exchange Companies and banks including the global money transfer company, Western Union, as a principal agent to ensure sustained inflow of inward remittances supplementing export receipts for making import bill payments without depending on the inter-bank foreign exchange market.
"The regular inflow of foreign remittance has brought stability in the foreign currency management of the bank," the MD said, adding that the Prime Bank is the first private commercial bank that has been able to open an exchange house in Singapore.
The bank started credit card operation in 1999 by introducing Master Card and VISA with the aim to extend value added services to their clients.
Prime Bank Limited, a leading private commercial bank, plans to open more branches and diversify its investment portfolios focusing mainly on retail and small and medium enterprises (SMEs).
"We have planned to open 12 more branches by the end of this year to gear up our business activities across the country," Managing Director (MD) of the bank M Shahjahan Bhuiyan told the FE in an interview.
Currently, Prime Bank, the second generation bank, is conducting its operation through 61 branches across the country. Besides, it has one booth and an off-shore banking Unit (OBU).
It has also plans to boost up its off-shore banking operation in different Export Processing Zones (EPZs) of the country to provide services to the non-resident customers.
The bank has already obtained permission from the central bank for opening three more offshore banking units at Chittagong Export Processing Zone (CEPZ), Comilla EPZ and Adamjee EPZ in Narayangonj.
"We will start off-shore banking operation at CEPZ later this month," the managing director said, adding the bank is trying to set up such units at Comilla EPZ and Adamjee EPZ in Narayangonj.
Prime Bank opened it first off-shore banking unit in 2007 at Dhaka EPZ to provide services to the non-resident customers.
Offshore banking is a unique solution for banks across the globe to carry out international business involving foreign currency denominated assets and liabilities taking advantages of low or no tax burden and higher return on investment.
Prime Bank is now planning to diversify its business aiming to add increased value to shareholders' investments and offer highest possible benefit to their customers.
"We are now focusing more on lending to SMEs and retail clients in order to facilitate small and medium enterprises across the country," Bhuiyan noted.
He also said the bank is now providing 'big loans' only through syndication or club financing arrangements with other banks and financial institutions to minimise financial risk.
"We believe in a balanced growth of the society, therefore, lending to SMEs in addition to the corporate customers," the managing director added.
The management of the bank is putting emphasis on retail banking to facilitate small investors as well as borrowers, he said.
The bank has been regularly extending project finance, lease finance and hire purchase scheme for industrial development of the country.
"We are continuing to play a leading role in consumer banking with expanding and liberalising our financing policy," Bhuiyan noted.
The loans and advances of the bank stood at Tk 57.613 billion as on December 31, 2007 registering an annual growth of 28 per cent. Total export and import business handled during 2007 were Tk 70.617 billion and Tk 51.316 billion respectively.
"Our bank remains strong as all key indicators like capital adequacy, good asset quality, sound management, good earning and strong liquidity have been maintained " the MD observed.
Authorised capital of the bank stood at Tk 4.0 billion and paid up capital at Tk 2.275 billion after payment of bonus share for the year 2006.
Describing various activities of the bank, Bhuiyan said the bank has expanded and consolidated its customers' base in both core business and retail banking.
"We are providing different services to our clients that are helping them run their businesses properly," he said, adding that the bank is trying to improve the efficiency of its officials and motivate clients in conducting businesses smoothly.
The Prime Bank Limited started its journey in 1995 with the firm commitment to excel in customer service.
"We have been able to establish the bank as one of the leading and strongest private commercial bank having made remarkable progress in all areas of operation despite challenging environment," the MD noted.
He also said that Prime Bank follows the fundamental principles of corporate governance, accountability, responsibility and transparency in doing business.
The bank has also planned to connect it all branches with core banking software (CBS) by the end of this year.
"Some 16 branches, including the head office and treasury division, have been successfully migrated to new CBS system and hopefully entire banking operation will be connected with the software by 2008," the chief executive of the bank noted.
It is expected that with the implementation of the new CBS, operational risk will be minimised through control in operation and information on security system, he added.
"Our ATM service will be launched during the first quarter of 2008 and SMS banking and e-banking will start soon with the final installation of Temenos T-24 software," Bhuiyan hoped.
He also said: "To build our bank into an efficient, market driven and customer focused institution with good corporate governance structure, continuous improvement in our business polices and procedures will be done through integration of technology at all level."
The bank has already established arrangements with 24 leading Exchange Companies and banks including the global money transfer company, Western Union, as a principal agent to ensure sustained inflow of inward remittances supplementing export receipts for making import bill payments without depending on the inter-bank foreign exchange market.
"The regular inflow of foreign remittance has brought stability in the foreign currency management of the bank," the MD said, adding that the Prime Bank is the first private commercial bank that has been able to open an exchange house in Singapore.
The bank started credit card operation in 1999 by introducing Master Card and VISA with the aim to extend value added services to their clients.