Md Ali Hossain Prodhania NRBC Bank plans to boost financing in the CMSME sector while expanding its digital channels, including an app called 'Planet', to deliver financial services to unbanked and underbanked populations across the country, the bank's top policymaker has said.
"Our medium-term objectives are focused on increasing CMSME financing and enhancing digital channels to provide financial services to unbanked and underbanked populations nationwide," said Md Ali Hossain Prodhania, independent director and chairman of NRBC Bank, while outlining his future business priorities in a recent exclusive interview with The Financial Express (FE).
Currently, NRBC Bank aims to grow its CMSME portfolio to 35 per cent by the end of this calendar year, up from the current level of 29 per cent by leveraging its extensive nationwide network, he said.
Recognising the CMSME (Cottage, Micro, Small, and Medium Enterprise) sector as a key driver of Bangladesh's economic development, the chairman affirmed that NRBC Bank remains fully committed to fostering its growth and long-term sustainability.
Good governance remains a top priority, Mr. Prodhania said, noting that the fourth-generation private commercial bank (PCB) is also focusing on balance-sheet optimisation in line with network rationalisation and maintenance capital, while improving cost efficiency and ensuring regulatory compliance to support sustained profitability and growth.
"We aim to transform NRBC Bank into a premier, technology-driven financial institution, with a strong emphasis on automation, data-driven decision-making and best-in-class corporate governance as part of our long-term vision," the chairman said.
Regarding efforts to boost financing in the CMSME sector, he said that NRBC Bank has already developed a comprehensive, forward-looking CMSME financing strategy.
"We now have more than 2.0 million deposit accounts. Notably, the bank has onboarded around 400,000 current and savings accounts (CASA) this year through its extensive network of 109 branches and over 400 sub-branches nationwide. The bank maintains an advance-deposit ratio of 77 per cent, resulting in a liquidity surplus of over Tk 40 billion," the chairman said while explaining the NRBC Bank's latest deposit mobilisation situation.
In partnership with development agencies, chambers and industry bodies, NRBC Bank is also implementing entrepreneurship development and financial literacy programmes to help SMEs strengthen financial management, adopt best practices and improve access to available services, the chairman added.
"Through these strategies, NRBC Bank aims to boost rural productivity, support enterprise growth, and create employment, thus contributing to Bangladesh's inclusive economic progress. Our commitment aligns with national goals of poverty reduction, rural empowerment and sustainable development," the senior banker continued.
He also mentioned that NRBC Bank is considering introducing 'Nano loans' to support marginalised and low-income groups by offering digitally processed, small-ticket, short-term credit to daily earners, micro-traders and rural women entrepreneurs.
Highlighting several digital transformation initiatives across loan processing, documentation, compliance and relationship management, the chairman said NRBC Bank is positioning itself as a leading adopter of digital banking in Bangladesh, committed to meeting the evolving needs of modern customers while maintaining a competitive edge in the rapidly changing banking sector.
On the rising trend of non-performing loans (NPLs) in the country's banking system, Mr. Prodhania, a seasoned banking professional with four decades of experience, said that managing NPLs remains the biggest challenge for the financial sector.
"Addressing this issue requires a coordinated approach involving the government, regulators, banks, financial institutions and borrowers, as well as amendments to existing laws and the enactment of new legislation to recover stolen assets. Isolated measures may not deliver the desired results; a holistic strategy is essential," he emphasised.
He also underscored the importance of proper reporting and prudent credit assessment for borrowers with exposures across multiple banks, suggesting that policy caps on new financing in sectors with high NPL ratios, as well as bank-specific sectoral caps based on individual NPL levels, could be considered.
"At NRBC Bank, classified loans have declined significantly thanks to policy support from the Bangladesh Bank, with troubled loans rescheduled or regularised in strict compliance with its circulars," the chairman said in response to a query.
He also noted that maintaining the unclassified status of rescheduled loans under policy support, along with effectively managing cash flow during the moratorium period, would remain the highest priority for bankers.
Moreover, the chairman said, social awareness campaigns highlighting the economic and social consequences of defaults could promote responsible borrowing.
"Together, these measures can help manage stressed assets, improve asset quality and rebuild trust in the banking system," he added.
In other areas, including export, import, and remittances, NRBC Bank recorded impressive growth in 2025, reflecting its effective strategies and enhanced services that successfully met client needs, he said, adding that this robust performance not only strengthened the bank's overall financial health but also contributed significantly to the country's economic development through increased trade and financial inflows.
"By addressing issues related to board composition, related-party exposures and disclosure requirements, these reforms aim to restore confidence, promote professionalism and ensure disciplined, fact-based decision-making. In the long run, they will safeguard depositors' interests and contribute to the sustainable and inclusive growth of the banking industry," he remarked.
"Looking ahead to 2026, our strategic priorities are clearly defined. Strengthening asset quality through effective management and reduction of NPLs, along with improved recovery of classified and written-off loans, will remain a top priority. Mobilising low-cost, stable deposits through CASA, enhancing customer relationship management and ensuring strict adherence to regulatory compliance and good governance will continue to be central to our strategy," he said.
The seasoned banker also addressed a range of issues, including the overall liquidity position of the country's banking sector, sustainable financing and anticipated trends in the money and foreign exchange markets ahead of the national elections in February.
"In the lead-up to the national election, money and forex markets are expected to take a cautious stance, with potential short-term liquidity management measures and continued focus on inflation control," said Mr. Prodhania, a former chairman of the technical committee of the Bangladesh Foreign Exchange Dealers' Association (BAFEDA), while forecasting market trends.
He added that while forex demand may increase due to import activities and credit demand could rise, steady remittance inflows, export earnings and regulatory intervention through dollar purchases from commercial banks should help maintain stability.
Mr. Prodhania was recently honoured with the 'Excellence in Corporate Governance Award' in recognition of his outstanding leadership in promoting transparency, accountability and excellence in corporate governance, as well as for advancing modern, customer-centric banking services in the country.
"It is noteworthy that NRBC Bank received the Silver Award at this year's Asia Sustainability Rating Awards in recognition of its commitment to sustainable practices and corporate social responsibility. This prestigious accolade underscores the bank's dedication to implementing environmentally and socially responsible initiatives, setting a benchmark for excellence in sustainability within the banking sector and reinforcing its role as a responsible corporate citizen in the region," he noted.
Welcoming the recent initiative to establish a microcredit bank, Mr. Prodhania, also a Supernumerary Professor at BIBM (Bangladesh Institute of Bank Management), said policymakers should take effective steps to set up an SME Bank, aimed at bringing dynamism into the rural economy by boosting financing in the CMSME sector.
siddique.islam@gmail.com
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