Mercantile Bank Limited (MBL) has planned to bring more un-banked people into its network through setting up more sub-branches and agent banking outlets across the country, the bank's top executive has said.
"We're giving priority to ensure achieving sustainable business growth through expediting financial inclusion initiatives at different parts of the country," Quamrul Islam Chowdhury, managing director (MD) and chief executive officer (CEO) of the MBL, told the Financial Express (FE) in an exclusive interview recently ahead of the bank's 23rd anniversary.
MBL started its journey on June 02, 1999 with a slogan 'efficiency is our strength.'
"We're committed to promote financial inclusion initiatives through providing loans to marginal people," Mr. Chowdhury explained.
The third generation private commercial bank (PCB) has also planned to help create employment opportunities by boosting financing in the agriculture as well as small and medium enterprises (SME), according to the CEO.
"We want to help developing entrepreneurship through enhancing investment in the cottage, micro, small and medium enterprises (CMSMEs) and agriculture sector," Mr Chowdhury, who obtained a postgraduate degree from the University of Dhaka, explained.
Regarding FinTech-based banking services, he also said MBL is committed to place cutting edge technology at the forefront of its delivery channels and operations.
As part of the measures, MBL maintains "TEMENOS T24" which ensures real time integrated banking software.
A digital platform named "MBL Rainbow '' has also been added, which will make the banking more customer friendly and digitized which is in line with the country's goal of becoming "Digital Bangladesh".
"We've introduced on-line real time banking, SMS and internet banking services for our customers," the CEO noted.
MBL provides 24/7 banking services to clients through ATM (automated teller machine) booths across the country and mobile banking services by MBL Contact Center, he added.
"We always follow the latest regulatory ICT guideline to minimize risk through ensuring global standards in the local environment," Mr Chowdhury, a 39-year experienced commercial banker, said while replying to a query.
Being a forward looking bank, MBL is always focusing on finding and providing innovative and FinTech-based financial products and services towards its customers, he added.
The senior banker also spoke on different issues like increasing trend in non-performing loans (NPLs) in the country's banking sector and fund management strategy particularly for the foreign exchange market.
"The amount of NPLs will be reduced automatically when the economy will be able to overcome the pandemic affect emphasizing on enough securities, feasibility analysis of the project, proper documentation, strong monitoring and economic stability after Covid-19 situation's special recovery drive," the CEO said while replying to another query.
MBL has already strengthened recovery drives for improving its financial health through reducing the amount of classified loans, he added.
The amount of classified loans in the country's banking system jumped by 16.38 per cent or Tk 145.40 billion to Tk 1032.74 billion, as of December 31, in the past year from Tk 887.34 billion a year ago, despite policy support from the central bank.
He also said the government is still providing financial stimulus support from marginal businessmen to corporate customers for revamping the country's economic activities from the Covid-19 situation.
"The support protects the business community and financial institutions as well as strengthening the economic situation," he noted.
About fund management, the CEO said MBL manages its fund as per requirement based on available funds. "We're working as a Primary Dealer since 2009. By following all rules and regulations, we try to utilize our best opportunities."
Regarding business plans of MBL, Mr Chowdhury said: "Our business plans for short, medium and long terms period are concentrated on sustainable long-term growth of business, lower cost of deposit, lower lending rate, improving the quality of assets, rationalizing operating cost, improving operational efficiency and productivity of resources, better and faster customer service, expansion branches, offering number of new products in retail banking, SME financing and card services and strengthening the overall risk management and corporate governance system."
As a leading financial institution, MBL continuously contributes for the development of the country through quality financing while facilitating import and export trade, contribution to the national exchequer, industry development, infrastructure development, women entrepreneurship, SME and reaching more people with a wider array of financial solutions, according to the CEO.
The senior banker said banks have earned profit by minimizing operating costs and improving efficiency amidst pandemic crisis.
"At the present scenario, it is essential to maintain a reasonable spread through handling customer deposits and cash management efficiently," he said while explaining the latest interest rate situation.
Actually policy revisiting depends on the context of the global market scenario, he said, adding that authorities should take further action depending on the situation.
Currently, Mercantile Bank serves a large customer base comprising individuals and institutions through a network of 151 branches across the country.
Besides, the PCB is providing services to the clients through 188 ATM booths along with 20 cash deposit machines at different parts of Bangladesh.
Like other banks, MBL has already set up 173 agent banking outlets along with 21 sub-branches to provide better services to its clients.
Mercantile Bank started 'Islamic Banking Window operation' at its 45 branches in the name of Taqwa.
On the other hand, Mercantile Bank Foundation (MBF) has begun operations since 2000 with a view to enforcing the BB's guidelines for carrying out broader Corporate Social Responsibility (CSR) activity through the Foundation.
MBL has been undertaking a range of activities over the past twenty three years with the sole purpose of helping its target people to improve their quality of life.
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