Mutual Trust Bank Limited (MTB) has planned to double its financing in retail and small and medium enterprises (SME) for minimising risk with diversifying portfolios by 2022, the bank's top executive has said.
Under the MTB's new plans, the investment in retail and SMEs will be reached to 50 per cent of its total loans and advances within the next two years from the existing level of 25 per cent.
"We want to reach teeming millions through boosting our investment in retail and SME sectors as part of our business plan within the next two years," Syed Mahbubur Rahman, Managing Director (MD) and Chief Executive Officer (CEO) of MTB, disclosed while sharing his future business plans in an exclusive interview with the Financial Express (FE) ahead of the bank's 21st anniversary.
The private commercial bank (PCB) started its journey with a promise - 'You can bank on us' which has both a literal and metaphorical meaning - on October 24, 1999.
"Such diversification of business portfolios will also help minimizing our risk," the top executive of MTB explained.
Mr. Rahman took responsibility as MD and CEO of the MTB on December 01, 2019. Prior to joining MTB, he was the MD & CEO of Dhaka Bank Limited and BRAC Bank Limited.
He also served Prime Bank Limited as DMD.
MTB is now diversifying its portfolios aiming to add increased value to shareholders' investments along with offering better services to the valued customers using the latest technologies, according to the CEO.
"We're now developing our technological platform and at the same time getting into partnership with different telcos, MFS and FinTech companies to provide retail and small loans instantly by the end of 2020," Mr. Rahman, also immediate past chairman of the Association of Bankers, Bangladesh (ABB), said while explaining technological advancement of the bank.
FinTech is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services using smartphones or the internet.
As part of the initiative, MTB is also migrating to the new Core Banking System (CBS), TCS BaNCS. At the same time the bank is also migrating to New Agent Banking Solution, New ERP module, New RTGS Module, New Treasury System and New IB Aps.
"Actually, we want to provide our customers world class banking experience through our well trained human resources fully equipped with cutting edge technology," the CEO explained.
Besides, MTB has introduced Green PIN Service for its cardholders with a view to enhancing green banking and sustainable development, according to the CEO.
"This paperless service will facilitate MTB Cardholders to set their new card PIN, change the old PIN as well as reset the old PIN instantly just by calling MTB 24/7 Contact Centre at 16219 from their registered phone numbers," Mr. Rahman said while replying to a query.
In September 2020, MTB also launched MEasy, an online platform, for opening accounts without physical visit to any MTB branches, he added.
He also said account holders don't need to collect his/her cheque book and debit card from the preferable branch after getting the account number.
"With a view to keeping up with the changing customer expectations, we are ready to embrace emerging technologies and accordingly adopt evolving business models," the senior banker said while replying to another query.
As part of digital banking, MTB has already started centralized banking through opening of accounts, issuing pay orders and letters of credit (LCs) to provide quality services to its clients.
"The function of branches will be reduced in the near future that will help reduce operational costs of the bank and improve customers' experience," the CEO predicted.
The former ABB chairman also spoke on different issues including implementation of the government's accounted stimulus packages particularly the cottage, micro, small and medium enterprises (CMSMEs) to help revamping recovery of the pandemic-hit economy.
"One of the major challenges to be faced by the banks is the rise in the non-performing loans (NPL)," the senior bank said while describing the future challenges in the banking sector.
The ABB leader also advised the banks particularly PCBs to expand their businesses considering the adverse impact of the ongoing Covid-19 pandemic on the economy.
Regarding the progress on implementation of the package, the private banker said: "We're now working to execute the financial stimulus package for the CMSMEs in line with the Bangladesh Bank (BB)'s directives."
The central bank has already taken different measures including engaging its 10 branch offices across the country to monitor and oversee the progress on implementation of the financial package.
The BB's latest moves came against the backdrop of slower progress in loan disbursement under the package for the CMSMEs until September 30. The banks and non-banking financial institutions (NBFIs) disbursed Tk 48.23 billion of the stimulus package by then.
The disbursed amount is 24.18 per cent of the total Tk 200 billion financial support for the sector. Loans amounting to Tk 58.82 billion were sanctioned for nearly 27000 CMSMEs during the period, according to the central bank's latest statistics.
The former ABB chairman also urged the central bank to extend the deadline further by two months more to December 31 from the existing October 31 for implantation of the package properly.
"Intensified Covid-19 pandemic along with floods in different parts of the country in recent months had hampered execution of the package," the senior banker explained.
The central bank earlier extended the deadline for execution of the stimulus package for the CMSMEs by two months to October 31 from August 31, 2020.
Prime Minister Sheikh Hasina has so far announced 19 stimulus packages worth Tk 1.03 trillion to offset the impacts of the pandemic on various sectors.
The packages, which are 3.7 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.
Mr. Rahman was accorded with 'The Asian Banker Leadership Achievement Award' for Bangladesh for his achievement in the period from 2011 to 2013.
After completing Master of Business Administration (MBA) from Institute of Business Administration of the University of Dhaka, he started his career with Saudi-Bangladesh Industrial and Agricultural Investment Company Ltd. (SABINCO) as a Monitoring Officer (Officer in Charge of Monitoring) in 1988.
He served Industrial Leasing and Development Company (Bangladesh) Limited (IDLC) as Manager, Monitoring from 1993 to 1996. Later he also worked for different foreign commercial banks including ANZ Grindlays Bank, Bangladesh, Standard Chartered Bank and Citibank N.A.
MTB has been able to achieve good progress on a significant number of fronts in the last calendar year despite the increasing challenges faced by the country's entire banking industry.
In 2019, total assets of the bank grew by 15.49 per cent to Tk 256.91 billion, marking a milestone in the bank's annals. It was supported by a prudent 14.20 per cent growth in gross loans which amounted to Tk 189.73 billion at the year closing while the total deposit grew by 14.92 per cent to Tk 190.95 billion.
MTB has been adjudged as the Best Financial Institution of 2014 at the DHL-Daily Star Business Awards 2015.
Earlier, MTB had also received the first-ever best 'SME Bank of the Year' and best 'Women Entrepreneurs' Friendly Bank of the Year' by the central bank of Bangladesh and SME Foundation.
Currently, MTB is running businesses with 118 branches, nine sub-branches, more than 140 agent banking centers, 14 kiosks, 300 plus modern ATMs (Automated Teller Machines) with two CRM (Cash Recycling Machines) booths, three Air Lounges, over 3,305 point of sales (POS) machines, located at both urban and rural areas across the country.
siddique.islam@gmail.com