Cellfin App will revolutionise remittances: Islami Bank MD

Islami Bank Bangladesh Limited has been playing a major role in collecting remittances from expatriate Bangladeshis for many years. Recently it launched a new app called Cellfin to bring in remittances more easily. It also has the highest market share in other fields, including deposit, investment, import-export, and industrialisation.

Mohammed Monirul Moula, managing director and chief executive officer of the bank, talked about the bank's past successes and future plans with Sakhawat Prince, staff correspondent of The Business Standard.

How reliable is Islami bank in collecting deposits?

Islami Bank encourages people to save money in the interest of the nation and the individual. It holds 10% of the country's total bank deposits. Currently, the total deposit of Islami Bank is Tk1.39 lakh crore, which is the highest in the country's banking sector. Islami Bank has Mudaraba Hajj Savings Scheme that enables people to save money for religious observances. We also operate cash waqf accounts for the welfare of needy and deprived people.

What role has Islami Bank played in resolving the Covid-19 crisis?

Our country has faced two types of crises during the Covid-19 pandemic – one was financial and the other was health. At the moment, all the financial institutions, including ours, are trying to overcome the crisis. The prime minister's incentive fund has been playing a vital role in helping to overcome the losses incurred by businessmen during the pandemic. Islami Bank has invested almost 100% of its target from this fund.

In which sector is Islami Bank leading in investment?

Islami Bank gives priority to the sustainable development of Bangladesh's economy, meeting people's basic needs, and overall socio-economic development, including public welfare. The bank is a pioneer in developing remittance inflow and the readymade garment industry – the two main pillars of the national economy. Currently, Islami Bank's investment amounts to Tk1.26 lakh crore, which is 9% of the total banking loans in the country and the highest for a single bank.

How much do customers trust Islami Bank?

Islami Bank has emerged as a bank that the customers trust fully. Currently, the number of our customers is 1.6 crore, which is 17% of the total number of banking customers in the country. This number exceeded one crore in 2015. Islami Bank has become a unique institution that is trusted by all people irrespective of class, profession, religion and caste.  

What is Islami Bank's contribution in imports and exports?

Islami Bank is at the top of the country's foreign trade. Its contribution in imports and exports is significant. In 2021, the bank's trade amounted to Tk64,000 crore and Tk34,000 crore in imports and exports respectively. Islami Bank's market share in the country's import and export trade is 11.4% and 8% respectively.

What is the role of Islami Bank in raising remittances?

Islami Bank has been playing a pivotal role for many years in bringing expatriate Bangladeshis' hard-earned remittance into the country through the banking channels. In 2021, remittances of Tk51,000 crore were collected through Islami Bank, which is about one-third of the remittances coming to the country through the banking channel.

On average, Islami Bank is delivering Tk138 crore remittances to about 60,000 customers on a daily basis. In addition, customers will be able to receive remittances directly through the bank's Cellfin app.

What are the benefits of the Cellfin App?

Islami Bank's Cellfin app has almost all the general banking services, including transactions and opening accounts. The app allows customers to receive remittances instantly from any country in the world through the Visa Direct service.

Visa Card, bank accounts based on e-KYC (Electronic Know Your Customer) without any branch, direct fund transfer to other banks and cards through Electronic funds transfer and National Payment Switch Bangladesh, add money, request money, e-commerce payment, credit card bill payment, utility bill payment, ticketing and other banking services are also available at Cellfin.

How successful is Islami Bank in infrastructure development and industrialisation?

Over 6,000 factories and 1,000 garment industries in the country operate through Islami Bank's funding. Islami Bank has investments in various heavy industries, notably garments and textiles, spinning mills, steel re-rolling, iron and steel industries and power plants. The bank's investment in the industrial sector is Tk56,000 crore. Over 25 lakh people have been directly employed in the industries run with the bank's funding.

What is the role of Islami Bank in the SMEs and agro-based industries?

Islami Bank has the highest investment in the country's small and medium enterprise (SME) sector. Currently, it has two lakh SME subscribers. In 2021, the bank's investment in the SME sector amounted to Tk26,000 crore, which is 11% of the country's total SME investment.

Besides, Islami Bank invested in around 2.5 lakh customers in the agricultural sector in 2021. More than 2,000 agro-based industries have been set up with Islami Bank's funding. Meanwhile, 28 jute mills are being operated with the bank's funding.

What is your advice on reducing bad debts in the banking sector?

Default loan is the "blood cancer" of the banking sector. Because of bad debts, banks have to save extra provisions and a large amount of capital. It has put many organisations in a very critical position. Financial institutions should be more careful in disbursing loans. They should lend money only to good customers and take steps to recover bad debts.

What is the state of Islami Bank's corporate social responsibility activities?

Islami banking is basically a socially responsible enterprise. So far, it has spent Tk245 crore to provide healthcare to 72 lakh beneficiaries. In order to expand healthcare services in the country, the bank is operating10 hospitals of its own and nine community hospitals with 1,594 beds. Every year, about 10 lakh patients receive affordable services from these hospitals.

How much does the board of directors facilitate your overall activities?

Those who are on the board of Islami Bank do not just monitor the bank's profit; they also prioritise the bank's role in the country's economy. Our board is completely staff-friendly. We never raise a proposal on a board that will not be accepted, while the board has never proposed anything that would be bad for the bank.