Southeast Bank PLC has intensified efforts to take its banking services to global standards by further empowering its customers and riding on digital transformation.
To achieve the goal, the second-generation commercial bank that began its operation in 1995 continues to invest in cutting-edge technology, rebalance its investment portfolios and deposit mix, and intensify cash recovery drives, says its Managing Director and Chief Executive Officer Md Khalid Mahmood Khan in an exclusive interview with The Financial Express.
He says the board of the bank led by the country's renowned industrialist Mr MA Kashem is extremely knowledgeable and highly active.
The board members formulate policies and create a congenial working environment for the management, he says.
"They say that the management will work within these policies. And as the management, what we do is ensure that in every task, we properly follow the guidelines and policies of both the Bangladesh Bank and the bank itself," he says.
In some cases, he says, the management is also conducting enhanced due diligence so that the number of mistakes or shortcomings remains minimal.
Simultaneously, he says they are trying to keep the management team, branch managers, and officers vibrant.
"That is why we are gradually moving towards success in regaining part of the glory," the top executive says.
Terming cash recovery one of the key priorities, the seasoned banker says the bank maintains constant communication with the borrowers facing difficulties so that they do not go into a sleeping mode for one or two years after rescheduling.
"We are telling them, brother, we have rescheduled your loan. Please restart your factory, generate income from it, and service us with quarterly interests. Or even if it is not yet time for instalment payments, at least pay the quarterly interests or repay some amount to us," he says.
Mr Khan mentions the board has also instructed them that the loans that have already been written off and the ones that are still at the classification stage, as well as some loans that are still in comparatively good condition, must be tracked very carefully.
"For us, the biggest issue is recovery, recovery, and recovery. From A to Z, everyone is making equal efforts for this," he says, adding that they plan to cut the ratio of non-performing loans (NPL) to below 5.0 per cent within the next couple of years from the 7.51 per cent at the end of December last.
To make the balance sheet of the bank stronger, the experienced banker says they are rebalancing their investment portfolios by focusing more on small and medium enterprises (SMEs) and retail financing.
"It does not mean we will not give loans to corporate customers. We are trying to onboard 'pay master' customers (good and reliable ones) in the market," he says.
The bank continues to conduct a need-based analysis to understand the requirements of those who are not yet doing business with the bank and then try to bring them in, he says.
He also says the bank has a good position in the SME segment.
To further expand this, they have created an SME hub. Through the branches across Bangladesh, it finances SME customers.
In the case of retail products, he says they want to give more importance to home loans because these are secured ones.
At the same time, they want to focus on other retail products and especially the card business.
Mr Khan, having more than 31 years of banking experience, says the management wants to build a large portfolio so that the bank's dependence on corporates decreases.
If a large corporate customer becomes troubled for any reason, a large amount of assets of the bank becomes problematic and the classification rate increases, he says.
"So, we will onboard good mid-level corporates. In that case, perhaps we are not moving toward very large accounts. But if we do not increase corporate business, income will not increase either," he says.
About digital transformation, he says people will be happy to know that the bank has already launched credit cards for students.
Probably for the first time in Bangladesh, credit cards have been launched for students, he also says.
The bank is providing the cards in a way so that they can meet the daily needs of students.
The cards do not deal with a large amount of money, which is to ensure that they do not become a burden on the students or their families in the future.
The bank has started this on a very small scale, he says.
Already, such cards have been handed over to students at North South University, Daffodil International University, and several others.
"We are also in talks with many more universities so that we can provide these cards. One major advantage of the card is that students do not have to go to banks, but they will still be able to use ATM booths," he says.
Through these virtual credit cards, the students will be able to make payments at any POS without even carrying the card physically, he says.
When asked where he wants to see the bank in a few years, he says they want to see it in a position where its asset quality must be good, its deposit mix must be sustainable, its officers must be knowledgeable, and customer service must be world-class.
"I say world-class because we now live in a global village. Our customers are very smart. So, we have to constantly transform ourselves to make our customers happy. If I do not change myself little by little every day and prepare for customers, I will not be able to do well," he adds.
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