Dhaka Bank opened one million nano deposit accounts last year
While Bangladesh’s banking sector faltered in 2024, Dhaka Bank defied the odds. In an interview with The Business Standard's Sakhawat Prince, MD Sheikh Mohammad Maroof, Managing Director of Dhaka Bank PLC, walks us through how the bank’s smart tech rollout and cautious lending strategy led to stability and record growth in a time of uncertainty
The year 2024 was one of the toughest for Bangladesh's banking sector. Both loan and deposit growth dropped to their lowest levels in years, sending ripples across the financial industry. Yet, in the midst of this crisis, Dhaka Bank stood out by recording its highest-ever deposit growth. Even more impressively, the bank posted healthy profits—thanks to strong liquidity management and a forward-thinking approach.
In a conversation with The Business Standard, Sheikh Mohammad Maroof, Managing Director of Dhaka Bank PLC, reflected on how the bank managed to thrive while others struggled.
"2024 was unlike any other year for the banking sector," Maroof said. "But we've always believed that the true strength of a bank lies in its ability to return depositors' money on time. That trust is everything."
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He also pointed out a major shift in customer expectations. "People are no longer willing to wait in long queues at a bank branch. Convenience is key now. Customers want fast, easy access to banking services—ideally from the comfort of their homes."
Our current focus is on growing a strong, low-cost deposit base. With a growing client base, we will be better positioned to provide loans once we get back to usual and expected business growth.
Dhaka Bank has been quick to adapt. Through a partnership with bKash, the bank launched a nano digital deposit service that saw massive uptake. "Last year alone, we opened around one million nano deposit accounts. And in just the first two months of this year, we've already added another 300,000," he shared.
To make banking even more accessible, Dhaka Bank has rolled out a suite of app-based services. "From small daily transactions to major banking services, everything is now available in the palm of your hand," said Maroof.
They've also introduced a 'Comfort Online' platform, allowing both Islamic and conventional customers to open accounts instantly through the bank's app—using just a mobile phone.
"In this day and age, making banking simple, fast, and reliable isn't just a bonus—it's what people expect. We're committed to meeting that expectation," he added.
The veteran banker said the bank's technological capabilities, 30-year legacy, extensive branch network, and skilled staff have helped build customer trust.
"We always encourage customers to look at the bank's balance sheet before making deposits. Since August 5, we have seen increasing awareness among customers. I have repeatedly emphasised that depositors should assess a bank's financial health before making any decisions," he continued.
For instance, said the seasoned banker, if reputable banks offer a certain interest rate and another bank offers 2% more, the customer should question whether that bank will be able to return their money.
He said customers should consider a bank's management quality, governance, and track record. Deposits should be made based on these indicators. All foreign banks with high credit ratings offer relatively low deposit rates.
"We've seen many customers withdrawing funds from other banks and depositing them with us, driven by fear on other banks and trust on us" he said.
"Our core goal is to promote financial inclusion in Bangladesh. Given our country's population, it is nearly impossible to reach everyone through traditional branches alone," said Sheikh Mohammad Maroof.
He noted that bKash has around 80 million customers. "We aim to deliver banking services to depositors through this platform. This way, customers can start saving with just Tk 100."
He explained that many low-income individuals in remote areas of Bangladesh can't afford to deposit Tk 1,000 or more at once, but are capable of saving Tk 100 /200 a day.
"That's why we're focusing on nano deposit accounts. These come in both Islamic and conventional forms, and accounts can be opened with just Tk 100".
"We are planning a large-scale awareness campaign this year for nano deposits. We aim to reach the most marginalised segments of society," he added.
"Our priority is to ensure the bank's stability. A stable deposit base is essential for healthy business operations. Since investment growth is currently low in Bangladesh, we are pursuing selective growth strategies, ensuring that we can support the needs of existing clients."
The senior banker said that under the current interim government, regular business will continue, but for major capital investments, political visibility is needed. "Accordingly, we've kept loan disbursements low in this year's bank budget."
"Our current focus is on growing a strong, low-cost deposit base. With a growing client base, we will be better positioned to provide loans once we get back to usual and expected business growth " he continued.
"We have also taken steps to increase foreign deposits through our Offshore Banking Unit. We are in discussions with various foreign correspondents and multilateral agencies to bring in such deposits. Additionally, we have campaign plans for RFCD and OBU accounts."
"My main takeaway from 2024 is liquidity is once again proven to be the main strength of a bank and secondly we need to be extremely cautious when extending credit to a Politically Exposed Person In the political context of Bangladesh. A performing can turn into a non performing one due to changes in the political landscape."
