Syed Mahbubur Rahman 
The Mutual Trust Bank (MTB) plans to double its financing in retail and small and medium enterprises (SMEs) to distribute risks by diversifying portfolios in the next three to five years, the bank's top executive says.
The investment will reach 40 per cent of its total loans and advances during the period under review from existing 20 per cent.
"We want to reach more people through boosting our digital/automated loans using our own app and partner networks that will also help achieve the investment target for retail and SME sectors as part of our business plan," said MTB managing director and CEO Syed Mahbubur Rahman.
Mr Rahman shared his future business plan in an exclusive interview with The Financial Express (FE) recently ahead of the bank's 25th anniversary today, October 24, with a theme 'A Quarter Century of Trust and Progress'.
With clients' hesitation in the banking industry and the evolving economic landscape, MTB continues to build its reputation as one of the country's most-trusted banks, ensuring robust governance and data security while maintaining a clean and reliable image since its inception in 1999.
"In the past 25 years, MTB has built itself more than just a financial institution. We have built trust-trust that stands strong in every transaction, every handshake and every innovation," explained the CEO.
MTB is now working with almost 35 different techfin and fintech companies to establish inclusive banking through bringing more unbanked people under the banking network, according to the top executive.
"Actually, we want to spread our digital loans through partnerships with telcos and fintech firms countrywide," he said, adding that MTB has provided all types of financial solutions like a digital bank to meet future client needs.
Fintech is a new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services using smartphones or internet banking.
"We aim to enhance customer-centricity by offering personalised products and services that provide meaningful solutions throughout their journey with us," cited Mr Rahman.
"Accelerating digitalisation and mass adoption of modern technology will drive this effort along with strengthening our backend and frontend systems to create a thriving connected digital ecosystem to establish MTB as the most connected bank in Bangladesh and the leader in offering Banking-as-a-Service (BaaS) and open banking initiatives."
"We're creating products that make banking simpler, smarter and more secure. In the years to come, digital transformation will remain at the heart of our strategy," noted Mr Rahman.
"We have also been working from the very beginning to contribute to the journey of establishing a cashless society in Bangladesh," he added.
As part of its strategic move, MTB has already launched a project in partnership with Zaytoon Business Solutions, to transform Sirajdikhan of Munshiganj district into the first Bangladesh cashless upazila in a unique model, which will be replicated across the country considering a foolproof model towards cashless journey, according to the CEO.
Mr Rahman took responsibility as MD and CEO of the bank on 01 December 2019. Prior to joining MTB, he held the same position at Dhaka Bank. Earlier, he served BRAC Bank as MD and CEO and deputy managing director (DMD). He also served Prime Bank Limited as DMD.
As one of the leading local banks, MTB is committed to green financing, which are environmentally sustainable and energy-efficient projects.
MTB partnered with SOLShare, a climate-tech firm, to finance smart lithium batteries for electric vehicles (EVs), a pioneering initiative aimed at reducing transportation costs and fuel dependency, as well as reducing carbon emission.
Consequently, the bank won the "Global Climate Partnership Award 2023" for this innovative idea of bridging the gap between smallholder farmers in Bangladesh and cost-effective EV solutions through accessible finance.
"We've allocated significant funds towards green financing and sustainable projects, underscoring our dedication to environmental preservation and societal advancement," noted the CEO.
He said MTB has implemented an Environment and Social Risk Management System to assess project risks and promote cleaner energy financing in alignment with our climate change mitigation efforts.
Norfund, a Norwegian state entity, holds a nearly 10 per cent stake in MTB, which helps the bank brand and build its image globally, he added.
The experienced banker also spoke on different issues like rising trend of classified loans, good governance issues, the size of the balance sheet, and the future liquidity situation in the country's banking system.
He recommended setting a roadmap as an effort to reduce the volume of non-performing loans (NPLs) to improve the financial health of the banking system.
"It should be ensured that the fresh loans will not turn into classified ones," said Mr Rahman, also the former chairman of the Association of Bankers, Bangladesh (ABB), adding that internal control and compliance would have to be strengthened to curb an uptrend in NPLs.
He also emphasised establishing a good governance system, which would help improve the overall banking situation.
Meanwhile, classified loans in the banking sector hit an all-time high at Tk 2.11 trillion in the first half of the current calendar year.
The first half (H1) volume of NPLs jumped by more than 45 per cent or Tk 657.58 billion to Tk 2113.91 billion as on June 30 from Tk 1456.33 billion six months before, according to Bangladesh Bank's latest statistics.
On the other hand, the share of classified loans also rose to 12.57 per cent of the total outstanding loans in H1 of 2024 from 9.0 per cent as on 31 December 2023 as per the consolidated statement of classified loans covering both domestic and offshore banking units.
It was 11.10 per cent as on 31 March 2024.
Despite challenging conditions, MTB achieved remarkable financial performance in 2023, supported by a diversified asset-liability portfolio, service excellence, and a steadfast commitment to good governance practices and enhanced compliance with regulatory norms, according to Mr Rahman.
"At MTB, progress doesn't stop with profits. It extends to the communities we serve. From financing the education of tribal students to being an industry pioneer with our Bravery & Courage Award, we ensure that growth is inclusive, impactful, and sustainable," noted the CEO.
"As we look to the future, we remain committed to our core values-trust, innovation and progress. We would like to thank all our stakeholders for being part of our journey. We are committed to make MTB, a bank for all generations and to meet all needs for future banking."
Mr Rahman's outstanding leadership have earned him accolades. He has been honoured with the "Banking CEO of the Year Bangladesh" by Global Banking and Finance Review and International Business Magazine.
Additionally, World Business Outlook Magazine recognised him as the "Inspirational Leader of the Year Bangladesh." He was also accorded 'The Asian Banker Leadership Achievement Award' for Bangladesh, a testament to his exceptional contributions during his tenure at BRAC Bank.
Mr Rahman began his professional journey after doing his MBA from the Institute of Business Administration at the University of Dhaka. He started career as a monitoring officer at Saudi-Bangladesh Industrial & Agricultural Investment Co Ltd (SABINCO) and subsequently worked as a manager of monitoring at Industrial Leasing & Development Co (BD) Limited (IDLC).
He also held managerial roles at ANZ Grindlays Bank, Standard Chartered Bank and Citibank N.A.
Meanwhile, MTB has already obtained multiple awards and recognitions from local and global entities for its outstanding performances in the banking sector.
It has received Asia Money award as the best bank for diversity and inclusion in Bangladesh for 2023, Bangladesh Bank award as the best PD Bank for 2023 and Global Finance World's Best Consumer Digital Bank Award in the Asia-Pacific.
Currently, MTB is running businesses with 120 branches, 41 sub-branches, nearly 200 agent banking centres, 300-plus modern ATMs with 27 CRMs (cash recycling machines) booths, eight air lounges, over 3,110 point-of-sales machines, located in both urban and rural areas.
It offers fully integrated real-time online banking services, internet and SMS banking to its clientele, through a dedicated team of experienced relationship managers and alternate delivery channels (ADCs).
The ADCs cover the operations of ATM, POS and e-Payment Gateway.
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