SME credit makes up 76pc of total portfolio
Saturday, 7 January 2012
Md Mazadul Hoque
State-run BASIC Bank has scaled up SME lending to help create a pool of new entrepreneurs in rural and urban areas to foster socio-economic development of the country, the head of the bank said.
The bank's chairman Sheikh Abdul Hye Bacchu said that his bank has financed Tk 39.81 billion for over 4,000 small and medium enterprises as of the third quarter of 2011, which accounts for 76 per cent of the bank's total loan portfolio.
He said the 23-year-old bank has also introduced "BASIC KALYANI" to promote female entrepreneurs by providing loans at low as 10 per cent interests.
"We'll provide collateral-free loans from Tk 0.5 million to 2.5 million to women entrepreneurs, because loans recovery from them has proved satisfactory," he told the FE in an interview.
The specialised lender' operating profits grew 21.10 per cent growth in the just-concluded year, which makes them more optimistic about higher profits.
The bank racked up profits amounted to Tk 2.62 billion last year, up from Tk 2.17 billion a year ago, he said.
Loan disbursement in the agriculture sector is being given top priority to ensure food security and betterment of farmers.
"We've disbursed Tk 550 million for irrigation, poultry farms, dairy and fish farms in 2011," the chairman said.
He, however, said the bank could further increase the loan disbursement in the current year.
Mr Bacchu said the bank is engaged in financing in environment-friendly schemes such as bio-gas, solar panel and ETP and Tk 20 million is set aside to implement green banking.
Officials said BASIC Bank has put in place a modern IT infrastructure for banking operation and it will move into mobile and internet banking soon.
"We are only among a few state banks that provide centralised online facilities to the customers and we are going to implement Work Flow Management, Approval Process," He said. "Our vision is to introduce paperless banking," he added.
"We've already established Automated Teller Machines (ATMs) infrastructure and our plan is to set up ATMs across the country and soon we are going to introduce Point of Sale (PoS)," the chairman said.
The bank will extend collateral-free credits to the potential overseas jobseekers under its 'BASIC Expatriate Loan' scheme because of the contribution of an estimated 8.0 million overseas Bangladeshis who sent home $12 billion-plus last year, the chairman noted.
Last year, the chairman said the bank processed US$10 million in remittances and is planning to set up three overseas exchange houses and one overseas branch.
The bank has already launched school banking for raising saving tendency of younger students which would support achieving higher degree and by 2015 we have a target to provide 100,000 school-going children with the grounding in financial literacy, the chairman said.
Mr Bacchu said corporate social responsibility (CSR) activities are being viewed core corporate value of the bank and the management will always stand by the distressed people according to the central bank' directive.
He said although the bank has donated Tk 30 million for CSR activities, the size would be increased in the coming years.
State-run BASIC Bank has scaled up SME lending to help create a pool of new entrepreneurs in rural and urban areas to foster socio-economic development of the country, the head of the bank said.
The bank's chairman Sheikh Abdul Hye Bacchu said that his bank has financed Tk 39.81 billion for over 4,000 small and medium enterprises as of the third quarter of 2011, which accounts for 76 per cent of the bank's total loan portfolio.
He said the 23-year-old bank has also introduced "BASIC KALYANI" to promote female entrepreneurs by providing loans at low as 10 per cent interests.
"We'll provide collateral-free loans from Tk 0.5 million to 2.5 million to women entrepreneurs, because loans recovery from them has proved satisfactory," he told the FE in an interview.
The specialised lender' operating profits grew 21.10 per cent growth in the just-concluded year, which makes them more optimistic about higher profits.
The bank racked up profits amounted to Tk 2.62 billion last year, up from Tk 2.17 billion a year ago, he said.
Loan disbursement in the agriculture sector is being given top priority to ensure food security and betterment of farmers.
"We've disbursed Tk 550 million for irrigation, poultry farms, dairy and fish farms in 2011," the chairman said.
He, however, said the bank could further increase the loan disbursement in the current year.
Mr Bacchu said the bank is engaged in financing in environment-friendly schemes such as bio-gas, solar panel and ETP and Tk 20 million is set aside to implement green banking.
Officials said BASIC Bank has put in place a modern IT infrastructure for banking operation and it will move into mobile and internet banking soon.
"We are only among a few state banks that provide centralised online facilities to the customers and we are going to implement Work Flow Management, Approval Process," He said. "Our vision is to introduce paperless banking," he added.
"We've already established Automated Teller Machines (ATMs) infrastructure and our plan is to set up ATMs across the country and soon we are going to introduce Point of Sale (PoS)," the chairman said.
The bank will extend collateral-free credits to the potential overseas jobseekers under its 'BASIC Expatriate Loan' scheme because of the contribution of an estimated 8.0 million overseas Bangladeshis who sent home $12 billion-plus last year, the chairman noted.
Last year, the chairman said the bank processed US$10 million in remittances and is planning to set up three overseas exchange houses and one overseas branch.
The bank has already launched school banking for raising saving tendency of younger students which would support achieving higher degree and by 2015 we have a target to provide 100,000 school-going children with the grounding in financial literacy, the chairman said.
Mr Bacchu said corporate social responsibility (CSR) activities are being viewed core corporate value of the bank and the management will always stand by the distressed people according to the central bank' directive.
He said although the bank has donated Tk 30 million for CSR activities, the size would be increased in the coming years.