NRB Commercial Bank Limited has planned to help create 0.1 million new entrepreneurs with expediting credit flow particularly in northern Bangladesh by the end of 2021, the bank's top policy maker said.
Under the plans, the fourth generation private commercial bank (PCB) has already selected the country's 16 northern districts to boost financing in the cottage, micro, small and medium enterprises (CMSMEs) to help improve socio-economic conditions of the region.
"We're working to boost our credit flow focusing micro one to bring more unbanked people into the banking network within this calendar," Parvez Tamal, chairman of NRBC Bank told the Financial Express (FE) in an exclusive interview recently.
Mr. Tamal, a Bangladeshi expatriate and Russian resident, visited frequently different places including Rangpur, Dinajpur, Gaibandha and Sundarganj in the last four months to assess feasibility of their fresh investment in the region.
"There is a huge scope of fresh investment particularly in small scale enterprises of the region," the chairman said while describing activities of some non-governmental organizations (NGOs) at different sectors in the areas.
NRBC Bank has planned to provide group loans like NGOs with charging a maximum 9.0 per cent interest rate to facilitate particularly micro enterprises in the country's northern districts, according to the chairman.
He also said the fourth generation bank is also committed to offer a fresh loan without mortgage if the borrower has a piece of land in the respective areas in the region.
"We're considering banks as a service point not only financial institutions. And banks have some social responsibilities," Mr. Tamal, who obtained a post-graduate degree from the Moscow Institute of Statistics and Economics, explained.
Actually, NRBC Bank has adopted the plans in line with the government's growth strategy to help create more employment opportunities across the country, he added.
"We want to bring more unbanked people into the banking network using the latest financial technology (FinTech) to ensure sustainable development of the country," the chairman noted.
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 moves, the private bank has already emphasized digital payment systems using QR (quick response) code instead of traditional chaque-based truncations.
"We're now working to develop an internal automation system to sanction more loans using FinTech for slashing our operational costs," Mr. Tamal said while replying to another query.
He also said NRBC Bank is committed to deliver service excellence through providing existing and innovative products in cost and time efficient manner, to its all retail as well as corporate customers.
"We're working to bring its 85 per cent loan accounts specially cottage, micro, retail and small enterprises under automation by the end of this calendar year," the chairman said while disclosing his future plans.
Mr. Tamal also said NRBC Bank has planned to set up more than 300 service points by the end of this calendar year aiming to provide better services to the clients.
Currently, the private bank is running its businesses with around 500 service points across the country.
Meanwhile, the scheduled bank has started the process to open its initial public offering (IPO) subscription aiming to raise Tk 1.20 billion from general investors in the stock market.
"We're going to be a public bank through listing our shares in the stock market that would help ensure our good governance," the chairman said while replying to a query.
The interest investors would be able to buy the company's primary shares till February 09. The IPO will be offered to the public at a face value of Tk 10 per share.
The bank is set to use Tk 1.10 billion of this fund for investing in the government securities, Tk 60.5 million for the secondary market and Tk 39.5 million as IPO expenses.
Mr. Tamal emphasized on ensuring good governance in the country's capital market using the latest technologies that are necessary for restoring the confidence of general investors in the market.
"We'll always be vigilant to maintain banking business risks within its tolerable limit in order to protect depositor's interest and ensure highest return to the shareholders," the chairman noted.
siddique.islam@gmail.com