Abdul Hai Sarker, Chairman of Dhaka Bank PLC, also the Chairman of Bangladesh Association of Banks (BAB), the apex body of bank owners, said the banking sector is now facing huge transitional challenges in the wake of moves for banking reforms.
As a top leader of banking association, he is working to make the banking sector more efficient and service oriented overcoming crisis like liquidity shortage and political pressure.
Talking to the Daily Observer in a Special Interview, Abdul Hai Sarker focused on the role of banking sector for the growth of trade, investment and industrialisation in the country.
A former chairman of the Board of Trustees of Independent University, Bangladesh (IUB) and a former president of Bangladesh Textile Mills Association (BTMA) and owner of Purbani Group, Hai Sarker made comprehensive remarks on banking service.
He said, emphasis is being given on increasing retail banking and guarantee business. "As chairman of BAB if a bank is in danger, it is my responsibility to rescue the bank giving all efforts. If I cannot face that danger myself, I will face it in coordination with Advisers, including the Chief Adviser of the interim government. I will do whatever is necessary to run the banking sector safely and without any interference."
He said, he served as the vice chairman of BAB for 16 years. But the former BAB Chairman Nazrul Islam Majumder (now in jail) did not allow us to speak with government leaders and make any contributions to solving problems the banking sector was facing.
"Now we are free to talk to policy makers and make contribution. We can take any problems with the Advisers and seek solutions", Sarker said.
Besides, talking about his visions to promote the banking sector and its role to contribute to the country's economic growth he also talked about the state of the art services of Dhaka Bank.
As Chairman of Dhaka Bank, he said more innovative actions are at work to transform the Dhaka Bank as a more modern and digital.
Dhaka Bank has launched mobile apps with all modern banking facilities for customers for transacting money without going to bank. More emphasis has been placed on making online banking solutions and reach banking at remote places to poor and marginalized people.
Even customers can open DPS account in Dhaka Bank now to make transactions through bKash apps, Nagad and Rocket using Dhaka Bank apps.
He said, Dhaka Bank account holders can deposit and withdraw money using their apps. In addition, Dhaka Bank has launched eRIN solution for the first time for borrowers to receive instant loan up to Tk 50,000 in the banking system digitally.
Sarker said, there is an opportunity now to withdraw money from Dhaka Bank without a check using QR code. All branches of Dhaka Bank are capable for transaction using online banking facilities.
He said, Dhaka Bank has set a target of Tk 611 crore agricultural loans in the current fiscal year and Tk 480 crore has been disbursed to farmers in the first six months.
He said, Dhaka Bank encourages creation of women entrepreneurs and providing them loans under special schemes. He said, the bank is working to continue the encouraging trend of collecting remittance. Instructions have been given to officers at all branches to collect more and more remittances.
An established industrialist and an iconic banker he said marginalized people are receiving enhanced loan supports. There are 61 government and private banks in the country and while many remain outside the banking services. He resolved to make banking service reachable to everybody.
On liquidity crisis, he said there is no liquidity crisis in Dhaka Bank and even default loans in the bank are under control which is only at 4 to 5 percent. He said whenever an initiative is taken to recover money from defaulted borrowers by filing cases; they go to the higher court and stall the loan recovery with stay orders. This is a big problem and unwanted to abolish the default loan culture.
As a result, it is not always possible to recover default loans. If the government is strong and it has the political will it is possible to recover 65 percent of the non-performing loans.
He also stressed on the strong role of the central bank (Bangladesh Bank) to stop irregularities and corruption in the banking sector.
On loan distribution, he said there are some old and good customers in every bank who are given loans. In addition, loans are also provided to new customers after verification. In terms of new loan, Dhaka Bank gives more importance to give loans to small and medium entrepreneurs.
On another question on deposit growth, he said the bank continues to take initiatives to increase deposits using campaign and incentives. There is a department in the bank whose job is to encourage customers to open accounts and increase deposits.
The officers maintain contact with various institutions and individuals. Even where no bank branch exists, customer accounts are opened through "Easy Bank Apps".
He said campaign to bring new customers plays a helpful role in increasing deposits. He also said various facilities are provided at customer level to open accounts and make deposits when banking remains stalled for liquidity shortage.
Banking 24-hour in seven days is at work at the bank through debit cards and mobile apps. Marginalized communities are encouraged so that they can become self-reliant with banking facilities. In addition, various facilities are provided to collect deposits from high-income people.
