NRBCB plea to allow Shariah-based banking

FE Team | Published: April 04, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

FE Report
NRB Commercial Bank Ltd (NRBCB) has celebrated its first founding anniversary with a plea to the government to allow the bank to convert it into fully Shariah-based one.
The NRBCB arranged the anniversary function at the Bangabandhu International Conference Centre (BICC) Wednesday.
Finance Minister AMA Muhith was the chief guest while LGRD and Cooperatives Minister Syed Ashraful Islam was the special guest at the anniversary, which was addressed, among others, by Engineer Farasath Ali, Chairman of the NRBCB, and Dewan Mujibur Rahman, Managing Director and CEO of the bank.
Speaking at the function, Mr Farasat Ali expressed the bank's intention to convert it into wholly Shariah principles-based one.
To make the intention a success, the bank's chairman drew attention of Finance Minister AMA Muhith.
Mr Farasat Ali sought permission of the finance minister and his ministry allowing the bank to convert it into a fully Shariah-based bank in the country.
As reasons for the conversion, the chairman mentioned, among others, the demand for Shariah-based banking in Bangladesh having over 90 per cent Muslim population.
"We have already applied to the Bangladesh Bank (central bank of Bangladesh) in this connection. Now, we seek permission from the government," Mr Farasat Ali told the FE later.
Speaking at the chief guest, Mr Muhith, however, didn't make any comment regarding the request of the NRBCB chairman.
On the occasion of its founding anniversary, the NRBCB at the function awarded two persons and an educational institution for their significant contribution in three separate sectors.
Former Bangladesh Bank Governor Dr Farasuddin received the NRBCB Award for his contribution in economics and banking, Prof Dr Anisuzzaman won the award for his contribution in the education and culture sector.
The managing director of the bank said that they will increase the number of its award in the coming days.
At the function, the bank also launched NRBCB VISA Card.
Established by the Non-Resident Bangladeshis (NRBs), the bank started its operation on April 2 in 2013.
Mr Dewan Mujibur Rahman, the bank's MD, highlighted the successes and achievements of the bank in its first one year. He also pledged to provide better services to the customers and continue its regulatory compliance in the future.
In the meantime, the bank opened 10 branches, five of which are in the rural area, in the country, he said, adding that the bank earned operating profit worth Tk 92.5 million in the first eight months of its launching.
Mr Muhith said, "The health of our business and commerce is quite well; our banking sector has expanded vastly; its health is in good condition." "If you search into its faults, you will obviously find it such as Hall-Mark, Bismillah Group etc; but if you see from the overall perspective, the banking sector's health is quite well considering the short span of time, within which the banking sector expanded vastly," he said.
Obviously, time came to give concentration to the sector; the regulatory regimes will have to be stronger, the Bangladesh Bank is attaining such kind of efficiency and there will have reflection of the competency in the sector, he said. "I feel quite proud of this sector."
In reply to many people that recent permission of nine banks 'over saturated the banking sector, the finance minister said, "Yes, (the number of banks) may became excess, but it (the action) is not unjust," Because, if you consider the number of bank branches specially in the rural areas, you cannot say that the banking sector is over saturated.