Profitability not the lone yardstick to judge performance, says NRB Bank MD

Newly launched NRB Bank Limited looks to be a 'global standard' bank by rendering technology-driven and quality financial services to both the local and non-resident Bangladeshi citizens.

 "Within only one year of its operation, we have already been equipped with almost all financial products, necessary technology and human resources, facilitating to build its strong foundation and thus preparing it to take off," Muklesur Rahman, Managing Director & CEO of NRB Bank Ltd told The FE in an interview recently at its corporate head office in the city.

"I want to make this bank a global standard bank, spurred by technology-driven and quality products and services", Mr Muklesur Rahman, a career banker said.

Started its operation on August 4, 2013, the NRB Bank already launched six branches and is set to open three more ones within one month and touch 12 by this year.

Since its inception, the bank, among few others operating in the country, is following the global standard banking model -- centralised banking, Mr Rahman said.

At this moment, it should not be the objective of the new banks to hurry up in making profit, he said, adding that profit will automatically come when the banks will stand on strong base; it's not a business to make profit hastily rather a generation business to gain and serve the nation in the long run.

Expressing strong disagreement with reported opinions about 'non-profit by the new banks yet', the veteran banker said, "Time is yet to come to judge good or bad performance of the new banks. At least three years are required for a bank to reach to an ideal scenario."

And "profitability is not the lone yardstick to judge performance of a bank, rather its CAMEL rating, management, board, products and services' quality and portfolio health are also needed to be taken into consideration, said Mr Rahman, having more than 29-year banking experience.

Since beginning, "we invested in mainly two things -- technology and HR - aiming to perform better in the long run, he continued.

The bank already launched internet banking, SMS alert services on money withdrawal from ATM booths, corporate and retail banking and a call center, and is set to introduce SME products next week.

 "Now let's start the engine," the managing director said, and hoped to establish the justness of the bank's slogan -- not just another bank -- by taking its services to the height of global standard.

Now, we are also focusing on collecting deposit, bringing the customers into our basket, providing them with products and expanding our branch network. Coincide with the slow credit flow in the banking sector, it is also going 'steady and slow' instead aggressive lending.

The bank is also sincerely working on developing alternate channel (such as mobile and internet banking) for rendering services to the customers. As part of it, the bank already launched internet banking, which is available through all electronic applications including mobile phone.

The MD also shared his plan to launch global debit and credit card shortly and products for the NRBs, premium banking for the high end people and NRB premium banking for different NRB professionals including doctors and engineers, facilitate the NRBs to open accounts and send money through banking channel.

Aside from the conventional and investment products, he said, another responsibility of the NRB Bank is to attract and facilitate investment of the fund of NRBs in different prospective sectors in Bangladesh.

In rendering financial services to the NRBs, he sought cooperation from the government and the Bangladesh Bank (BB).

There are two main objectives of the NRB Bank; these are providing financial services to the NRBs and also the local people, he said.

Apart from the corporate banking, as an MD of the NRB Bank, "I will focus on the SME banking and attract the fresh graduates to be entrepreneurs." BB's refinance scheme will be helpful in this connection.

While sharing challenges in the SME banking, he said that the banks should have strong monitoring and supervision on especially the 'S' (small) segment enterprises for proper utilisation and timely repayment of the fund.

He also lauded the central bank for its initiatives to equip itself with strong automation and make other banks automated, and for supporting the mobile banking, SME and agriculture loans and financial inclusion.

Underscoring the necessity to move to the rural areas with banking services from the urban areas, he, however, placed an appeal before the central bank to make flexible the 1:1 branch opening ratio in urban and rural areas respectively to 2:1 for the new banks for certain years, helping them to create and strengthen their foundation in the competitive market.

Mr Rahman also requested the government to reopen the provision of giving loan against savings tools investment; the BB, however, can fix a ceiling on the amount of loan against that of the savings tools.

Because it will be beneficial for both the banks and the customers, as the customers sought such loan but the banks cannot give it because of embargo imposed a number of years ago.