We decided to operate on our own and we would not merge. I embraced the challenge and expressed my commitment. The Bangladesh Bank cooperated much in this regard. We will be successful, Insha-Allah. I am optimistic about reviving the glory of the National Bank Limited (NBL) within the next four years.
NBL chairman Khalilur Rahman was telling all these today (May 11) in an interview with Banglanews24.com.
Leading industrialist and chairman of KDS Group Khalilur Rahman heads 19 industries in diverse sectors. On 5 May 2024, he was made chairman of NBL by Bangladesh Bank. A Commercially Important Person (CIP), he holds key positions such as president of CMCCI and vice president of BICDA. Additionally, he was the founding sponsor of Al-Arafah Islami Bank and currently holds substantial shares of that bank, along with investments in Pragati Insurance Limited and Pragati Life Insurance Limited.
Following is the detailed interview of the NBL chairman:
Banglanews: At present, the main topic of the banking sector is merger. National Bank had objections to this, which you have made clear in board meetings and press conferences. What are the challenges of the banking sector in complying with the merger directives?
Khalilur Rahman: As our bank is stronger than the one with which it was supposed to be merged, we decided that we will not merge and operate on our own. I embraced the challenge and expressed my commitment in writing. The Bangladesh Bank cooperated much in this regard. We will be successful, Insha-Allah. I am optimistic about overcoming the crisis.
We are businessmen and know how to run a bank. We established the bank as the country’s first private bank back in 1983. The bank was in the front line till 2012 from the beginning. All the directors of our bank were businessmen with enough experience. We took the bank at this stage with that experience.
The officials of the banks are Bangladeshi and some of them will lose their jobs after merging with others. There are branches of the banks in almost all areas of the country. If the banks are merged, where will the officials and staff members go? From this point of view, we did not agree to a merger.
Banglanews: Non-performing loans are still one of the major problems in the country’s banking sector. What needs to be done to get out of this culture? Where the liability of the banker and the customer lies?
Khalilur Rahman: To bring out the bank from the crisis, we informed the Bangladesh Bank about our unwillingness to merge and wanted to run by ourselves. If there is honesty, one can proceed. We will realise the defaulted loan anyhow. We will make them return the bank’s money.
We will manage deposits and do business to enhance earning. We made a profit of around Tk1800-1900 crore and provided 90% dividend earlier. We anticipate bringing back the bank to the previous state again.
It will take time to recover the loans. But, we are optimistic about recovering at least 50% of the loans. We will give loans to the real businessmen.
To recover the defaulted loans, we will go to the defaulters and recover the loans by selling their properties under the legal framework, if necessary.
I will not blame the bankers for the situation. They have nothing to do in some cases. I will also request the customers to repay the loans.
If the bank manager understands business, he will be able to provide a loan and recover it through proper monitoring in case of small industries.
Banglanews: Private sector debt is decreasing day by day. What is your opinion about it? Is the bank lending more cautiously to small industries? What is your opinion?
Khalilur Rahman: The defaulted loans were not given to real businessmen. The real businesspeople cannot be loan defaulters. Those who know the business will not incur losses. There is an assessment for all. The loans are given after assessment and they will have to be monitored. The real businesspeople will pay the amount after doing business.
To come out of the crisis, we will go to all loan defaulters. Some of the big defaulters have committed to repay the loans. We will do business to recover the losses.
The banks which did not monitor properly fell into crisis. If there is proper monitoring, no loan, whether small or big, will be defaulted.
Banglanews: People used to have more trust in private banks. However, due to various incidents, public trust has started shifting back to state-owned banks. What initiatives are needed to boost people’s confidence in the banking sector?
Khalilur Rahman: People’s trust in banks has decreased due to some incidents in the banking sector. Trust is very important for business as no business can be successful if trust breaches. Loan defaulting is a bad thing.
All of the current board members are experienced. We will use all our expertise in disbursement and realisation of the loans. If we can portray a growing image of the bank again, people will regain trust and the bank will improve.
The share price of the bank was Tk4.5 and now stands at Tk7 while the deposit is also increasing day by day.
We will go to all businesspeople, friends and well-wishers and request to deposit. Then we will do business.
Banglanews: What steps will you take to improve the financial state of the bank?
Khalilur Rahman: We will introduce different campaigns to lure more deposits into our bank. We have planned to inject Tk4,000crore in four years of which Tk1,000 crore will be added in the first one year to tackle the situation.
Banglanews: What are your future plans to make NBL a better and customer-oriented bank?
Khalilur Rahman: It will take maximum four years to restore the bank’s lost glory. We will recover all the loans anyhow by following the existing banking laws. Already we are getting some collections. People will again be interested about this bank. It is the bank of the country’s 18 crore people.
There are 11 branches of the bank in Malaysia, three in Maldives and two in Singapore among others. Foreign currencies will also come through these branches.
BDST: 2352 HRS, MAY 11, 2024
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