The bank’s MD informs FE
Siddique Islam |
July 30, 2020 10:45:33
July 30, 2020 14:58:27
Islami Bank Bangladesh Limited (IBBL) has proposed to establish actual time online investment banking riding on the most recent financial technology (FinTech) at the end of the calendar year, the bank’s leading executive has said.
“We are likely to sanction and disburse modest investment originally through our own FinTech platform at the end of 2020,” Md Mahbub-ul-Alam, managing director (MD) and chief executive officer (CEO) of IBBL, revealed while sharing his upcoming business plans in a private interview with the Financial Express (FE) lately.
FinTech is your newest technology and innovation that intends to compete with conventional financial systems in the delivery of services utilizing internet or smartphones.
Included in the plans, the board of supervisors of country’s biggest private commercial bank (PCB) has given acceptance of Tk 2.0 billion to secure both hardware and applications instantly for growing information and communications technologies (ICT) infrastructure.
“Truly, we’ve intended to offer all sorts of investments as well as other solutions through utilizing the FinTech platform in the future which will also reduce the price of conducting business in Bangladesh,” the CEO clarified.
Presently, IBBL is using its own FinTech platform for sanctioning improvements from branches for providing better services to its clientele.
The best management is presently hoping to convert IBBL to FinTech-based worldwide standard modern bank in the not too distant future by the present degree of this bank, according to the CEO.
The senior banker also stated IBBL has created new landmarks in deposit mobilization and inflow of remittances that signify improved public confidence in the PCB despite a significant shift in its direction in 2017.
“The people have realized that the present board of directors is capable of conducting the greatest PCB effectively with preserving its own mission, vision and dignity,” that the CEO observed.
The PCB was employed to guarantee justice and equity in most financial actions for attaining a sustainable and balanced growth and equitable socioeconomic development because its beginning March 30, 1983, based on Mr. Alam, that acquired a post-secondary diploma from the University of Dhaka.
He’s been serving as MD& CEO of IBBL because February 11, 2018. He combined the Sharia-based bank on February 05, 1984.
Aggregate deposit of IBBL has spanned Tk 1.0 trillion-mark lately for the first time from the personal banking industry of Bangladesh regardless of the continuing Covid-19 pandemic.
The deposit of this PCB climbed by Tk 53.43 billion into Tk 1000.24 billion in the first six months of 2020 in Tk 946.81 billion six months before, according to this bank’s newest figures.
The residue of IBBL has been Tk822.57 billion in 2018.
IBBL was in a position to mobilize the deposit via introducing 28 products such as different kinds of Mudaraba deposits and price free ones.
“We are investing such deposits in various productive sectors such as clothing and apparel one, both the government securities and other monetary institutions contemplating the benefit of depositors,” Mr. Alam stated while responding to a question about utilizing that the deposit.
The senior banker also urged the government concerned to issue sukuk bonds to bring dynamism in the nation’s Islamic financial sector.
Sukuk is the name for a fiscal certification, also commonly known as ‘Sharia compliant’ bond.
“Such Islamic bonds may help meet the financing gap for funding growth of the nation’s infrastructures,” the CEO said while describing the requirement of sukuk.
Presently, two Islami bonds– Bangladesh Government Islami Investment Bonds (BGIIB)–together with tenures of five and six months are traded around the Islamic money market.
Total investment (excluding investment in shares/security) increased by Tk 27.13 billion into Tk.926.14 billion at the first-half of the calendar year from Tk.899.01 billion in the previous half of 2019.
The investment was Tk 805.76billion in 2018.
Besides, the leading PCB is now working to invest around Tk 50 billion for implementation the government announced financial stimulus package for industrial and services sectors to facilitate businessmen for recovering their losses mainly due to the Covid-19 pandemic, the CEO added.
“We expect that the disbursement of funds will be completed in line with the Bangladesh Bank (BB)’s instructions,” Mr. Alam said while replying to another query.
Earlier on July 02 last, the central bank of Bangladesh asked all the scheduled banks for taking effective measures to implement the stimulus package for businesses through disbursing all funds within the next month.
The banks have also been asked to implement the lion’s share of the stimulus packages within this month and the remaining portion by August 2020.
“We’re working sincerely to implement the financial packages in time for betterment of the business community as well as the general public,” the CEO explained.
Currently, IBBL serves 15million clients through 357 branches, 60 sub-branches, 1,200 agent banking outlets, 660 own and about 11,000 shared ATM (automated teller machine) and CRM(cash recycle machine) booths across the country.
IBBL has been grabbing the number one position in collection of inward remittances since 2009 following dedication of top management as well as widening networks both domestic and globally.
But the Shariah-based bank has been able to create a new record for receiving inward remittances in the recent months despite the ongoing Covid-19 pandemic.
The top executive of IBBL predicted that his bank will receive around $750 million as remittances in July which has been $582 million in June 2020.
“We expect that the upward trend in inward remittance will continue in the current fiscal year as the government has kept continuing the 2.0 per cent incentive for remittance receipts for this fiscal year,” the CEO noted.
The BB’s latest policy support has also helped boost the flow of inward remittance in the recent months despite the Covid-19 outbreak almost across the world, Mr. Alam explained.
The central bank has already relaxed the conditions for incentives on the money sent by expatriate Bangladeshis to lift up the sinking flow of remittances amid the coronavirus pandemic.
Under the latest relaxations, the expatriate Bangladeshis can get 2.0 per cent incentives without showing any paper for incentives on remittance up to $5,000 or Tk 500,000.
Earlier, the ceiling was Tk 150,000. Moreover, those sending more than Tk 500,000 will have two months to submit the papers instead of 15 days earlier.
The expatriates who have already sent money will also get the facilities. These will be effective until December 31, 2020.
IBBL has once again secured its position for the last nine consecutive years as the only bank of Bangladesh in the list of the world’s best 1000 banks.
The top PCB has already been identified as a best bank with upgrading this ranking to 904th in 2020 from 943 rd a year ago by this Banker, a world-renowned UK-based financial magazine, recently.
“The Banker magazine has upgraded the ranking considering different latest key financial indicators including deposit, advance, cost of fund, return on assets, earnings per share and net asset value of IBBL,” Mr. Alam stated while explaining such ranking enhancement.
In 2012, IBBL became the first bank of the country to be included in the list of the world’s best banks.
Replying to some other query, the CEO said quality human asset, technology-based advancement and good corporate governance have been IBBL’s cornerstone because its beginning.