Rupali Bank woos big conglomerates

Rupali Bank Limited (RBL), a state-owned commercial bank (SoCB) has taken some positive measures including slashing the interest rates under single-digit, bringing more renowned corporate entities under its network and expanding the mobile-based banking services.

"We are happy to note that we have been able to reduce the interest rates as per the latest decision of Bangladesh Association of Banks (BAB) and no doubt, it will help the investment-flow as well as create more employment opportunities for the unemployed youths," Ataur Rahman Prodhan, managing director (MD) & chief executive officer (CEO) of the RBL told the FE recently.

The state-owned bank has also been able to bring some leading corporate entities of the country under its 'core banking activities'.

"Big conglomerates like Pran-RFL, Abul Khair, BSRM, Nitol Motors and Noman Group are now our corporate clients and inclusion of such leading corporate entities will definitely broaden our image and visibility in the country's growing economic sector," the Rupali Bank MD said.

He said the SoCB is now consulting with Akij and Nasir Groups to finance their projects.

Corporate insiders said big conglomerates are now being attracted by some state-owned commercial banks for borrowing at comparatively cheaper rates as private commercial banks are suffering from liquidity crunch to finance big projects.

"Why they will go to commercial banks where the cost of borrowing is higher, but now with the lowering of lending rates at single-digit, they are getting some space in the local commercial banks, specially the state-owned banks," a banking analyst commented.

Rupali Bank is also giving top priority to invest in the small and medium enterprises (SME) instead of big projects for minimising risk.

"The bank is now doing well. You will see the real visibility within the next few months," Mr. Prodhan said.

The SoCB is now expediting investment particularly in SME and agriculture sectors using its large network across the country.

"We're giving top priority to invest in the SME in line with the BB's advices," the career banker said while replying to a query.

The central bank earlier advised four SoCBs to go for small and medium scale loans instead of large ones for minimising risks.

He also said the RBL has already installed core banking solution (CBS) software in its all branches to provide better services to the clients.

"We are the lone SoCB to have a complete real-time online facility embarking on the largest mobile financial service," Mr Ataur Rahman Prodhan said.

Rupali Bank has a huge network with 12.29 million clients under its 'Rupali Bank Surecash' product.

Prime Minister Sheikh Hasina formally inaugurated this product on March 1, 2017 under which parents receive the stipend money of their children who are studying at primary schools on their mobile phones.

Such amount of stipend money disbursed under 'Rupali Bank Surecash' was Tk 11.67 billion in 2017 only.

With the launching of this mobile financial service, Rupali Bank has been able to save Tk 4.0 billion annually as there remains some room for forgery and cheating in the age-old manual system.

"Our bank is relentlessly trying to expand the mobile-based financial services to serve the teeming millions across the country," the Rupali Bank MD asserted.

Currently, the public bank is running businesses with 565 branches across the country. Of them, 304 were in urban areas and 259 in rural areas till December 31, 2017.

As many as 22 branches were opened in 2013 and 19 in 2015.

The RBL is now operating a total of 13.6 million accounts across the country.

He also said the RBL has already taken different measures including setting up 'NRBs Desk' to jack the flow of inward remittances up from different part of the world.

The central bank earlier asked the banks for taking measures to attract NRBs (non-resident Bangladeshis) through improving the quality of remittance services.

The banks have also been instructed to open 'help desk' at each branch concerned for ensuring better remittance services.

The RBL is a listed company and is traded on the country's stock exchanges as an A-category share.

Currently, the government holds 90.19 per cent shares of the commercial bank. The remaining 9.81 per cent is owned by the general public and institutions.

Mr. Prodhan joined the RBL as MD & CEO on August 28, 2016. Prior to this assignment, he was MD of Probashi Kallyan Bank, DMD of Sonali Bank Limited & CEO & General Manager of Sonali Bank (UK) Limited.

He started his banking career as Financial Analyst in Sonali Bank Limited in 1984.

raihanmchowdhury@gmail.com