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IBBL to embrace FinTech

The bank achieved remarkable progresses in different areas including receiving deposit, increasing investment and reducing of non-performing loans in 2017

FE Report | January 16, 2018 00:00:00

Islami Bank Bangladesh Limited organised a press conference to highlight its yearly business performance at Islami Bank Tower Monday. Arastoo Khan, Chairman of the bank addressed the conference. Major General (Retd.) Engr. Abdul Matin, Chairman, Executive Committee, Dr. Md. Zillur Rahman, Chairman, Audit Committee, Md. Syful Islam, FCA, FCMA, Director and Md. Abdul Hamid Miah, Managing Director & CEO seen.

The Islami Bank Bangladesh Limited (IBBL) will upgrade technology-based banking in 2018 to make financial services more accessible to the mass people.

The Shariah-based leading bank will also give emphasis on small investment along with large one aiming to bring more people into its network during the ongoing calendar year.

The moves also came to broadening the financial inclusion as well.

These plans were disclosed at a 'Meet the Press' programme held at Islami Bank Tower in the capital on Monday to announce its business performances in the just-concluded calendar year -2017.

"We'll gear up our banking using financial technology (FinTech) in 2018 aiming to make financial services more accessible to the mass people," Arastoo Khan, chairman of the IBBL, said while sharing his future plans for strengthening financial health of the largest private commercial bank (PCB) at the programme.

FinTech is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. The use of smartphones for mobile banking and investing services are examples of technologies aiming to popularise the financial services.

"It will also help in building up digital Bangladesh," Mr. Khan, also a former secretary of the government explained.

The Shariah-based bank will design its details investment plan in line with the upcoming monetary policy that is scheduled to be announced by the Bangladesh Bank (BB), the country's central bank, in the last week of this month, the IBBL chairman added.

He also apprehended that the upcoming monetary policy may tighten to curb possible inflationary pressures on the economy.

Expressing satisfaction on the overall performances of the bank in 2017, Mr. Khan said the IBBL has achieved remarkable progresses in different areas including receiving deposit, increasing investment and reducing of non-performing loans.

On the other hand, administrative expenses came down to 5.08 per cent in 2017 from 33.8 per cent a year ago, according to the IBBL chairman.

"The excess liquidity has been mopped up from the market following higher credit growth to the private sector in the recent months," Mr. Khan said while replying to a query.

The central bank may look into the matter in the next monetary policy statement, he said. "This year is an election year so that the authorities concerned should act considering the issue."

Replying to another query, Md. Abdul Hamid Miah, managing director and chief executive officer (CEO) said the banks will shift its investment from large to small segments gradually.

"We want to go mass people through strengthening our SME (small and medium enterprises) financing schemes across the country," the CEO explained.

The IBBL reached deposit of Tk 751 billion by adding more than Tk 72 billion in its deposit portfolio in 2017, according to the bank statistics.

In 2017, the bank achieved general investment base of Tk 701 billion increasing Tk 84 billion over the previous year.

The IBBL consolidated its leadership in handling import, export and remittance business of Tk 385 billion, Tk 240 billion and Tk 233 billion respectively in 2017.

Among others, Major General (Retd.) Engr. Abdul Matin, Chairman, executive committee of the IBBL, the bank's director Md. Syful Islam, FCA, FCMA and Md. Mahbub-ul-Alam, additional managing director of the IBBL also spoke on the occasion.

Currently, the IBBL is providing its services to 12.5 million clients across the country with 332 branches.

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