78 lakh users now use our NexusPay app

How was such strong deposit growth achieved in 2024 despite the economic uncertainty?

In 2024, our deposit growth stood at 10.3%, which translates to an increase of around Tk5,000 crore. The majority of this growth came from CASA (Current and Savings Accounts).

Technology has been our core strength since we began investing in it back in 2004 when our total deposits were just Tk2,700 crore. Fast forward to today, and that figure has reached Tk55,500 crore. In 2005, only 10% of our deposits were low-cost CASA, while the remaining 90% were term deposits with higher interest costs. But we reversed that composition by consistently enhancing our tech infrastructure.

With our 24/7 banking facilities, enabled by digital platforms, customers can make deposits and withdrawals at any time. That convenience draws users to keep funds in CASA accounts, which now account for over 90% of our total deposits. This reduces our fund cost and increases our profitability.

Even amid last year's liquidity crisis—especially in August 2024—we made sure cash was available at all our ATMs. Customers could always access their money, and that helped maintain their trust. While some Islamic banks saw a significant deposit outflow due to loss of confidence, we continued to grow steadily thanks to our reputation and reliability.

Our operating income rose by 42% in 2024, reaching Tk2,300 crore—the highest in our history. A large part of this also comes from non-interest income, such as card fees and interbank ATM charges

Dutch-Bangla Bank Managing Director and CEO, Abul Kashem Md Shirin

Dutch-Bangla Bank has a large ATM network across the country. Have there been any updates to this system?

Yes, we've revamped our ATM strategy. We noticed that booths with only one machine couldn't handle high traffic efficiently—cash would run out quickly, and customers would leave frustrated.

So, we introduced Fast Track ATM booths with multiple machines and a dedicated officer on-site from 7 AM to 9 PM. If any issue arises—be it card jamming or cash shortage—the officer can resolve it instantly. Even if one or two machines run out of cash, others are there as backup.

This has significantly reduced complaints. Customer confidence has grown because they know they can rely on us, even in busy hours or high-demand periods.

Many banks are now focusing on mobile apps. What is your stance?

We were ahead of the curve in this space. We launched NexusPay long before most other banks had mobile apps. Right now, about Tk17,000 crore worth of transactions are processed through NexusPay every month.

Users can make fund transfers, pay utility bills (like gas and water), and scan QR codes for purchases. The app supports multiple cards and account types—including regular bank accounts, agent banking, and even Rocket mobile banking.

Customers can choose any card or account for a transaction. It's a consolidated digital banking solution. Every month, both the transaction volume and user base are rising. We've added government payment facilities—like land taxes, toll payments, etc.—and are integrating further with public service portals. At present, we have 78 lakh active NexusPay users.

And since most of these transactions don't require a visit to a bank branch, we save significantly on operational costs. That's the future—digital banking that reduces both cost and friction.

How does collecting low-cost deposits benefit the bank? How do you manage liquidity?

With over 90% of our deposits coming from CASA, our average deposit cost is just 2%. But because we operate the country's largest ATM and CRM network, our overhead is higher—about 4.5% to 5%. In contrast, some banks that don't invest in tech have overheads closer to 2.5%.

Still, our overall cost of funds stays around 7%. If we lend at 10%, that leaves us with a 3% net margin. It's not a massive spread, but it's sustainable.

While some banks accept high-cost term deposits and still face similar overheads, we've focused on keeping deposit costs low while accepting the relatively high infrastructure cost of maintaining a nationwide tech-enabled network.

Our strategy is bearing fruit. Our operating income rose by 42% in 2024, reaching Tk2,300 crore—the highest in our history. A large part of this also comes from non-interest income, such as card fees and interbank ATM charges.

What kind of credit growth challenges do you foresee in the private sector in 2025?

This year will be challenging for credit growth. Despite a rise in deposits, our outstanding loan amount actually dropped by about Tk1,700 crore.

Many of our borrowers are paying back term loans. Companies that had taken loans to build factories are now completing repayments. We didn't have as many large new loans in 2024. Additionally, big corporates are focusing on debt reduction and are less interested in borrowing at current interest rates.

So, even with available liquidity, there's not enough credit demand. If this continues, we'll need to find alternative, profitable avenues to deploy our funds.

How is your retail loan portfolio performing?

Retail is currently the most promising segment. We've significantly increased personal loans, home loans, and auto loans. In fact, 65% of our new loans in 2024 came from the retail segment.

The risk is lower, and margins are better. With proper credit scoring and verification, we're confident in growing this space further.

What about your credit card portfolio? Are you seeing any risks in customer repayments?

The number of credit card users is growing. People are relying more on cards for daily expenses. The good news is that most users are clearing their bills on time.

We haven't seen any alarming trend in defaults, and we're monitoring things closely. 

We believe this segment will remain healthy if managed carefully.

Is the cost of opening and running Fast Track booths higher than traditional ATMs?

Yes, it's costlier. Fast Track booths are larger, require more machines, and have permanent staff on-site. But we consider it a worthwhile investment.

Customer satisfaction is significantly higher. There are fewer failed transactions, fewer complaints, and greater usage. In the long run, the benefits outweigh the costs.

What's your outlook for 2025 in terms of profit and expansion?

We're optimistic. If we can maintain our current deposit momentum and continue building on our digital services, we'll remain profitable—even if credit growth stays muted.

We'll also be focusing more on SME and retail segments, enhancing NexusPay's capabilities, and expanding our Fast Track ATM network. Efficiency, trust, and innovation will continue to be our three pillars.