"We're doing banking for all, not for any class," Shafiul Azam, managing director (MD) and chief executive officer (CEO) of the fourth generation private commercial bank (PCB) said while sharing his future business plans in an exclusive interview with the Financial Express (FE) recently.
MMBL is also working continuously to ensure faster and secure services to its valued customers across the country using the latest financial technology (FinTech) system, the CEO explained.
FinTech is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services using smartphones or internet.
The PCB's latest moves came against the backdrop of around 60 per cent of the total population of Bangladesh is still out of the banking system despite strengthening financial inclusion initiatives across the country.
"We've planned for increasing our agent banking digital points to 700 by the end of this calendar year from the existing level of 440," Mr. Azam said while replying to a query.
MMBL has started its digital operations with the state-of-the-art technology for ensuring proper security with real time banking facilities.
"We're now providing digital Government-to-Person (G2P) services to marginal people using our agent banking operations at different parts of the country to ensure receiving their allowances properly," the top executive noted.
Under the electronic payment system, the PCB is now disbursing funds to the marginal people's accounts through Union Digital Centers (UDC) in Gopalgonj,Madaripur, Mymensingh, Rajshahi, Chottogram, Rangpur, Naogaon, Tangail, Faridpur, Khulna and Bagerhat districts.
Prime Minister Sheikh Hasina inaugurated the G2P in 2018 for disbursement of the allowances of Social Safety Net (SSN) programmes for marginalised people including elderly and physically challenged people and widows.
MMBL is now providing key banking services to its clients through the agent banking digital points, according to the CEO.
Besides, MMBL is now offering lifestyle products like telemedicine service, carnival assure and health insurance through 440 digital points across the country.
The PCB is also focusing pharmaceuticals, information and communications technology (ICT) along with apparel and clothing industry to help achieve sustainable economic development in Bangladesh, he added.
Mr. Azam has been continuing as MD and CEO of MMBL since 2016.
Prior to his new role, he served as additional managing director of the PCB in 2014 before being appointed as one of the youngest MDs in the banking community of Bangladesh.
He started career in 1991 with AB Bank Limited as Probationary Officer. Later Mr. Azam took a new challenge and joined Shahjalal Islami Bank Limited.
Describing the government announced different stimulus packages and policy supports of the Bangladesh Bank (BB), the senior banker said such supports have helped the banks strengthen their investment capacities particularly in the real sectors of the economy.
Prime Minister Sheikh Hasina has so far announced 28 stimulus packages worth Tk 1.35 trillion to offset the impacts of the Covid-19 pandemic on various sectors.
The packages, which account for 4.9 per cent of the country's gross domestic product (GDP), are now being executed under the supervision of the central bank and the finance ministry for mitigating the adverse impacts of the coronavirus pandemic on the economy and facilitating faster economic recovery of Bangladesh.
MMBL has already obtained an appreciation letter from the central bank along with 12 banks for implementation of the first phase of stimulus package for the cottage, micro, small and medium enterprises (CMSMEs) properly.
The banks have been able to implement their 100 per cent initial targets, set by the central bank earlier properly, of the stimulus package under the CMSMEs.
"We're now working to help develop entrepreneurship through improving their capacity," the CEO said while explaining his future plans to facilitate CMSMEs of Bangladesh.
Under the moves, MMBL is set to sign an agreement with a leading non-governmental organization (NGO) through the United Nations Development Programme (UNDP) for entrepreneurship capacity building particularly in rural areas of the country.
He also said MMBL is the only scheduled bank in Bangladesh, which has been awarded gold dealer licence, issued by the BB in 2019, for importing the precious metal in line with the existing gold policy.
Besides, the PCB has been operating off-shore banking unit (OBU) since 2015 to facilitate business of Bangladesh, according to the CEO.
"We've already been able to collect low-cost funds in foreign currency from overseas sources to facilitate our off-shore banking operations," Mr. Azam, explained.
Mentioning improvement of different key indicators, the CEO said MMBL has been able to keep the administrative cost at 1.58 per cent and cost to income ratio at 31.06 per cent, lowest in the industry, which depicts the bank is running efficiently rationalizing cost and maximizing profit.
The senior banker also spoke on different issues like possible future challenges in the country's banking sector as the asset quality, capital and profitability are likely to be affected mainly due to the ongoing Covid-19 pandemic.
"Banks should extend credit facilities by choosing the correct entrepreneur, correct sector and observing proper due diligence," he noted.
After sanction, documentation to be completed properly, disbursement to ensure end use and post disbursement monitoring to be ensured properly to ensure quality asset portfolio, according to the senior banker.
Meanwhile, the amount of classified loans in the banking sector increased significantly in the first half (H1) of the current calendar year despite providing policy support by the central bank.
The volume of NPLs grew by nearly 12 per cent or Tk 104.71 billion to Tk 992.05 billion as on June 30, 2021 from Tk 887.34 billion six months ago, the BB's latest data showed.
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