Friday, Mar 04, 2011
Gulf News
Bangladeshi lender to roll out new online services and investment packages for expatriates
Dubai Bangladesh’s second biggest lender Janata Bank Ltd, which operates four branches in the UAE, will go public shortly and Gulf-based non-resident Bangladeshis (NRBs) will be able to invest in its primary shares, a top official said.
“As per the government rule, NRBs will have their fair shares in subscriptions when the initial public offering takes place,” S.M. Aminur Rahman, Chief Executive and Managing Director of Janata Bank Ltd, told Gulf News in an interview.
“We have submitted our plan to the government for an initial public offering (IPO) and expect it to happen in the near future.”
The government-owned bank which has 862 branches across Bangladesh, serves 8.6 million account holders with 13,000 professionals. The bank reported a near 50 per cent jump in net profits to 12 billion taka (Dh600 million), up from 8.6 billion taka in 2009, despite the global economic challenges, he said.
Tech overhaul
It is in the process of a major information technology overhaul to revamp its operations to bring in efficiency in operations in line with the government’s plan to digitise services across the country under the Digital Bangladesh platform.
“We have begun to implement IT infrastructure to bring in all the branches online. It might take time, but we are on it,” he said.
The bank is in the process of expanding its ATM networks across the country.
Although Bangladesh’s banking sector has come under pressure due to shortage in liquidity following a massive outflow of cash from the stock markets that pushed angry investors to the streets in rioting with police in recent weeks, Rahman said, the sector is still in better shape than most emerging economies.
He said, “The debacle in the stock markets have created a bit of challenges for us. There is a shortage of liquidity in the market, which is temporary. “We have restricted lending. Lending is only taking place in industrial and trade financing activities,” he said.
“However, we expect this situation to change in the coming months.
“The banking sector is now gearing up to support the massive infrastructure projects that are channelled through public-private partnerships, including a major elevated express way, roads, highways, Dhaka metro project and the bridge over the river Padma.
“Banks are strong enough to lend to these projects,” he said.
OLIVER CLARKE/Gulf News
Making a point
S.M. Aminur Rahman said Bangladesh’s banking sector is now gearing up to support the massive infrastructure projects that are channelled through public-private partnerships.
Uae operations
expansion plans
Aminur Rahman, CEO and Managing Director of Janata Bank, was in Dubai on an official tour to expand the scope of the bank’s overall operations in the UAE.
Janata Bank, which has been in operation in the UAE for more than 30 years, has roughly 50,000 account holders, nearly all NRBs. It’s UAE operations made Dh10 million net profits last year.
The bank is yet to instal an ATM machine to serve its clients — mostly low-income workers and small and medium businesses, owned by NRBs. About 10,000 NRBs own small and medium businesses in the UAE.
NRBs have expressed unhappiness on the lack of efficient services, often challenged by facilities and lack of manpower.
“We are looking into hiring more people and expand our premises to offer better services. I am aware of the issues and we are gradually addressing them,” he told a gathering organized by the recently-launched Bangladesh Business Council in Dubai. He said, his bank will raise lending ceiling and will not hold passports as collateral for loans. The bank will aggressively lend to small businesses and also offer auto loans.
Janata Bank is a major channel for outward remittance to Bangladesh from the UAE. It also offers the government bonds and saving instruments to NRBs.
— S.R.
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By Saifur Rahman?Business Editor
Gulf News 2011. All rights reserved.
