Prime Bank: The Testament of Trust turns 28

Photo: Courtesy

After Bangladesh's independence in 1971, the emergence of Bangladesh's economic prowess began to take form in the mid '90s. Then, the country was considered to be one of the poorest economies of the world with a GDP of $37.94 billion and a population of 117.8 million. The country stood constantly in the midst of an economic crisis and unstructured policies with an unprecedented future. For a large period of time, the focus was to bring financial inclusion to the rural sector which would enable the country's main source of income – agriculture sector – to flourish. 

With the privatisation of the banking sector in the early '80s, the banking sector finally started to take flight in the mid-1990's, which led to the birth of one of the most prominent and leading powerhouses in the financial sector of Bangladesh – Prime Bank Limited. Prime Bank began its journey in 1995 as a second-generation private commercial bank with a vision to provide innovative banking solutions to individuals, businesses and institutions. Today, 28 years later, the bank stands strong to its promise – a bank with a difference – and positions itself as a true testament of trust for its customers. 

Fast forward to 2023, Bangladesh is being considered as one of Asia's emerging economies that has set ambitious targets for itself to achieve by 2041. Over the years, the reformation policies have paved a way for the banking sector to greatly develop and intensify its foothold at the core of the economic growth. The banking sector has played a critical role in the growth and development of Bangladesh's economy and Prime Bank has been at the forefront – driving the change and nurturing the inclusion of people from all sectors and corners of the country. 

Today, Bangladesh's GDP stands at a staggering figure of $420.25 billion. Complimenting the growth of the country, Prime Bank, alone, declared a profit of Tk400 crore in 2022. The dynamic nature of the bank has facilitated it to establish 146 branches across the country with 140 ATMS, 118 Agent banking, etc. Ever since inception, Prime Bank has always been led with a visionary approach that has steered the bank towards leaving a mark in every sector of the country – starting from RMG, power, shipping, aviation, telecommunication, renewable energy, agriculture and many more. One of the main reasons for Prime Bank's success was its ability to embrace and ensure implementation of highly governed practices in the ever-evolving world propelled by disruptive technologies. 

Serving over 1.1 million customers in the last 28 years, Prime Bank has always committed itself to deeply investing in understanding the evolving needs of its diverse customer base. The bank was also able to solidify its position as a highly credible financial institute that has gained the trust of its customers, stakeholders and regulatory authorities. Prime Bank has dedicated itself to a research-based customer-centric approach through which the bank has always identified and anticipated customer requirements, enabling it to develop tailored products and services. 

The bank has focused on building long-term relationships with its customers. It has signed dedicated relationship managers to high-net-worth individuals and corporate clients, ensuring personalised attention and prompt resolution of queries or concern. The bank has upheld a culture of transparency and ethical conduct. It maintains open communication channels with its customers, discloses all relevant information and ensures compliance with regulatory requirements and industry best practices. The bank is renowned for following stringent corporate governance practices to certify transparency, accountability and responsible decision making. Prime Bank has always concentrated on the significance of financial stability and being regulatory compliant, adhering to regulatory guidelines, audits and has ensured adequate capital reserves to ensure the safety of customer deposits and maintaining financial soundness.

The journey of 28 years for Prime Bank comprises many first-time initiatives for the banking sector of Bangladesh. In the late 90's, right after the Bank commenced with its operation in Bangladesh, the bank introduced Islamic Banking Business in its Dilkusha Branch. The bank also listed itself in the IPO and began trading in the Dhaka and Chittagong stock exchanges. In early 2000s, the bank obtained Merchant banking licence from Bangladesh Securities Exchange Commission (BSEC), primary dealership licence from Bangladesh Bank and registered itself as a Depository participant to Central Depository Bangladesh Limited (CDBL).  

From the mid 2000s to late 2010, Prime Bank initiated Prime Exchange Co., Pte. Limited and opened its first Off-shore banking unit at DEPZ in Savar. As a first of its kind service, the bank also launched the first Automated Teller Machine (ATM), Internet Banking, SMS banking and SME Centre along with the incorporation of PBL Exchange Limited in United Kingdom, Prime Bank Securities (PBSL) and Prime Bank Investment Limited (PBIL). The bank also issued subordinated bonds of Tk2.50 billion and obtained permission for issuance of Rights Share from Bangladesh Securities and Exchange Commission. 

Within the period of 2010 to 2015, the bank launched Phone Banking and introduced its premium banking service called "Monarch". Prime Bank also launched the first ever Business World MasterCard Credit Card in Bangladesh and initiated PBL Finance (Hong Kong) Limited. As the wave of Digital Bangladesh became more prominent in 2016-2020, Prime Bank introduced Omni Digital Platform – "Prime Pay" and initiated Agent Banking Operations First Interbank Blockchain LC transaction by a Bangladeshi Bank. The bank also inaugurated Mujib Corner in its Gulshan Branch. 

In 2021, in the midst of COVID-19, Prime Bank launched its first real-time remittance service named RemitPrime followed by AI and machine learning based Chatbot "Prime Assist". The bank also initiated the first digital loan disbursement system for garment workers. In the age of innovation, Prime Bank recognizes the significance of technological advancements in shaping the financial sector. The future of the banking sector heavily relies on seamless digital connectivity and platforms that have been designed to make our lives more convenient. Hence, Prime Bank has invested in state-of-the-art technology infrastructure and systems to enhance operational efficiency and deliver innovative banking services. One of the best examples of Prime Bank's digital transformation is "MyPrime" – a digital banking solution that has captured the essence for the need of experiencing the entire banking ecosystem through a mobile platform. 

With Covid-19 reeling through the economy throughout 2020-22, with the entire country stood in a standstill, consumer behaviour drastically shifted towards the use of digital services. The strategic introduction of MyPrime proved to be a convenient solution for all of Prime Bank's customers. With less than 12 months of introducing the platform, MyPrime scored 170,000+ downloads across android and iPhone devices with a staggering 750,000+ transactions and a total transaction volume of Tk1.5 billion. Subsequently, another digital platform named "Prime Plus" was also introduced. Prime Plus is an e-KYC platform that enables customers to open accounts with Prime Bank digitally. The platform attained 7,565 new customers and assisted over 6,419 customers with over 1,236 self-checks. 

The true testament for trust for banks lies in a few key areas of capital adequacy, asset quality, earning and liquidity amongst other factors. Recently, Prime Bank announced a cash dividend of 17.5% and declared net profit after tax of Tk4,022 million compared to Tk2,193 million in 2018. The deposits over the past 5 years have also increased to Tk265,841 million in 2022 from Tk197,518 million in 2018. The bank's earnings per share have also increased to Tk3.56 in 2022 from Tk1.94 in 2018 and net asset value per share increased to Tk28.53 in 2022 from Tk12.50 in 2018. The above-mentioned figures highlight the consistent performance encompassing an environment of stability and security amidst global economic downturns and recessionary signals. 

For over two decades, Prime Bank has been making contributions to the education & health sector of the country through its CSR wing, the Prime Bank Foundation (PBF). In order to foster a sustainable society, Prime Bank Foundation has donated 100,000 blankets to the Prime Minister's Relief and Welfare Fund for the victims of hard winter and donated Tk10 crore for affected people in Sylhet region. The bank has also donated Tk1.5 million to the Prime Minister's Education Assistance Trust. The bank also introduced an Education Support Programme in 2007 through which 4,000 scholarships have been awarded in the course of 16 years. 

As a part of its commitment towards the health sector, Prime Bank introduced Prime College of Nursing in Dhaka and Prime Bank Eye Hospital. Under the Nursing college initiative, over 3000 nurses have successfully graduated and have been stationed in Government hospitals across the country. On the other hand, Prime Bank Eye Hospital has served over 180,244 patients and performed over 15,447 surgeries. There are many other CSR initiatives by Prime Bank that are continuously leaving a mark in our society. As a part of its commitment towards an inclusive sustainable business environment, Prime Bank has joined the United Nations Environment Programme Finance Initiative (UNEP FI) and has joined the Net-Zero Banking Alliance (NZBA), an industry led UN-convened alliance of banks worldwide through the alignment of lending and investment portfolios with net-zero emissions by 2050. 

Over the past 28 years, Prime Bank has set industry benchmarks through its innovative practices and customer-centric approach. Its success has inspired other banks to adopt similar strategies, leading to an overall improvement in the quality of services and customer experiences in the banking sector. The bank's constant innovation and technological advancements have influenced market practices. Its introduction of digital banking solutions and emphasis on financial inclusion have prompted other banks to enhance their digital capabilities and expand their outreach to previously underserved segments of the population. The bank's commitment to financial inclusion has played a vital role in driving economic growth in Bangladesh. By providing accessible banking services to rural areas and supporting microfinance initiatives, the bank has contributed to job creation, entrepreneurship and overall development of the economy. 

The remarkable journey of trust and innovation has firmly established Prime Bank as a testament to excellence in Bangladesh's banking sector. By prioritising customer-centricity, maintaining robust business practices and embracing continuous innovation, the bank has earned the trust of customers and stakeholders alike. Prime Bank's commitment to its brand promise of "Bank with a difference" has revolutionised the industry. As the bank continues its journey, it is well positioned to navigate future challenges and maintain its position as a leader in the banking sector of Bangladesh.