Rural banking

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Bangladesh's rural banking as well as mobile banking grew in the 1960s. The audit for its introduction should go to the then United Bank Limited (UBL). Though it saw almost instant success, the scheme was discontinued following a sudden change in the upper echelon of UBL management. With the departure of stalwarts like Agha Hasan Abedi, Mundrawalla and Naqvi, UBL's programme to take banking to the door step of the rural population of the then East Pakistan was abandoned.
In those days the people preferred to keep their money under the mattress or the floor. Some people would keep their savings with post offices. Only a handful would keep money with the lone public sector bank. There was no confidence on private commercial banks.
Bankers found it difficult to convince people to keep money with a bank. To earn their confidence they would go out of the way to provide personalised banking service. In those days, Habib Bank Ltd., Muslim Commercial Bank Ltd. also made their mark like their new competitor, the UBL
The UBL, which came much later, was more professional and aggressive in doing business. UBL brought about a phenomenal change in the mind sets of the bankers and clients alike. UBL used to recruit educated young boys and girls just out of the university or college.
The young climbed to top position pretty quickly. Post liberation Bangladesh faced no shortage of trained bankers, because by 1991, many bright and educated persons had shaped up as good bankers. There was no dearth of senior bankers. UBL, the youngest bank in pre-liberation period, had set up branches in every corner of this land manned by competent work force. In the mid 1960s UBL had its branches in Islampur, Nandina, Haluaghat, Tarakanda Bazar, Mohanganj, Janjail in greater Mymensingh. UBL's jute-faria / bepary finance scheme introduced in 1962, benefited the rural economy. The rural branches creating no problem for UBL. Nicely managed and monitored from the regional offices the branches earned profit from the second year of operation.
Profit or no profit, social obligation was a part of the game. Only a balanced growth can make rural and urban economies complementary to each other. Bangladesh needs bankers with vision to foster rural and urban growth.
Sayyed Husain Jamal
Former managing director of Lanka Bangla Finance,
Dhaka