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Premier Bank to grow further on new trends

Says its Managing Director M Reazul Karim
MD FAZLUR RAHMAN
The Premier Bank Limited celebrates its 23rd anniversary today. Set up in 1999, it is one of the strongest banks in Bangladesh today with the lowest non-performing loan ratio. Its deposit base and loans have expanded in the last two decades. Recently, M Reazul Karim, managing director of Premier Bank, spoke about the bank’s journey, digital banking and new challenges and opportunities for banks, during an interview with The Daily Star.
DS : Premier Bank is going to celebrate its 23rd anniversary today. Please tell us about the journey?
Karim : The Premier Bank has been on a roll since its inception. From the very beginning, the bank has been playing an active role in the country’s economic development through financing to industrial, commercial and agricultural projects.
Over the last few years, we have achieved enviable success in all indicators. In the last five years, there has been more than 50 per cent growth in most of the indicators.
By creating hundreds of entrepreneurs, Premier Bank has paved the path for prosperity from generation to generation.
We have undergone major changes over the past four to five years. It has been possible thanks to the very active role of the board of directors headed by honourable chairman Dr HBM Iqbal.
The Premier Bank has received many national and international awards in recognition of its achievements. By gaining the trust of customers, Premier Bank has become one of the leading banks in Bangladesh.
DS : What is the key strength of your bank?
Karim : Our experienced workforce is the key strength of our bank.
We have targeted to expand our services in the rural areas to accelerate financial inclusion, alongside maintaining our focus in the urban areas.
We are continuously upgrading our service quality and bringing variety to our services. Customised services are frequently being provided to attract good clients.
DS : What is the situation of the bank?
Karim : When I took charge as the managing director and CEO of Premier Bank Limited on April 23, 2018, the bank’s asset and deposit portfolios were Tk 18,892 crore and Tk 14,631 crore respectively. As of September 2022, it rose to Tk 38,280 crore and Tk 29,130 crore, respectively. It has been possible because of the wholehearted effort of all 2,408 employees of the Premier family.
DS : The non-performing loan (NPL) ratio is decreasing at your bank. What steps have you taken to bring down bad loans?
Karim : NPLs are always destructive for an economy. We continuously analyse the basic reasons for NPLs and then we adjust our strategies to control them.
A lack of monitoring is one of the major causes of loan defaults. Keeping this in mind, we are very much cautious regarding monitoring of every loan. Since prevention is better than cure, we emphasis following a rigorous process in loan disbursement.
If a loan is disbursed complying with the process of loan approval, there should be no difficulty in the collection.
DS : What have you added to modern remittance?
Karim : Our remittances are growing steadily. We currently have agreements with 30 exchange houses to bring remittances through the banking channel.
We have recently entered into strategic alliances with some of the top mobile financial services to deliver remittance services to distant villages. After the tie-up with MFS providers, we are now able to fetch remittances to the doorsteps at the village level.
DS : How much has your bank’s asset quality improved?
Karim : We have always strived to improve and maintain the asset quality of our bank. At the time of loan originations, we check the quality of prospective borrowers, evaluate business risks and check the background of sponsors. We always try to follow the policies of the Bangladesh Bank in processing loans.
As a result, our asset quality is quite good and our classification rate was 2.49 per cent as of June this year, the lowest in the banking sector.
Question: Which sector is preferred in terms of financing? How are you contributing to green banking?