Exim Bank restored depositors’ confidence, overcoming challenges
The major problem in Exim Bank was the image crisis due to the bad reputation of its former chairman, Nazrul Islam Mazumder, who held the post for 24 years. However, the newly reconstructed board has successfully overcome the image crisis as the deposit grew by Tk 8200 crore in just eight months after 5th August
Key Highlights:
- All types of trade LCs are now being opened with transparency
- Deposits have grown by nearly Tk8,200 crore in eight months
- Around 300,000 new accounts have been opened
- Sponsor directors are being invited back to the board
- Competitive interest rates are offered on deposits
- Around Tk600 crore in default loans recovered since December
- New remittance products with incentives in development
Just months ago, EXIM Bank found itself in one of the most turbulent phases of its history. The July-August crisis, triggered by years of irregularities and corruption under the previous chairman, left depositors anxious and withdrawals surging. However, since the change in leadership and the formation of a new board in late August, the tide has begun to turn.
During the peak of the crisis, widespread financial mismanagement came to light — with large sums siphoned off using aliases by those at the top. This, coupled with the chairman's deteriorating reputation, severely damaged public confidence. But what made EXIM Bank's case more critical than other troubled banks was the sheer scale of panic among customers, which we had to address with urgency.
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Our first priority was restoring trust. We arranged meetings and get-togethers across all our branches and sub-branches, speaking directly to customers and assuring them of the bank's renewed commitment to transparency and professionalism. By October, withdrawals had slowed significantly, and by January this year, the situation had largely stabilised.
Today, we are proud to say that depositors are coming back. In the past eight months, deposits have grown by nearly Tk 8,200 crore, with Tk 5,000 crore added in just the last four months. Moreover, around 300,000 new accounts have been opened during this time. These figures speak volumes about the renewed faith customers are placing in us.
We've also resumed increments and promotions for our officers — boosting their morale after years of stagnation. A performance appraisal system is now in place, and interviews for promotions are being regularly held. We are trying to establish a disciplined, transparent structure so that the board can focus on strategic growth while everyday operations run smoothly.
Trade finance, a critical area for EXIM Bank, has also bounced back. Until last July-August, only a select few connected to the previous chairman could open trade LCs. But now, we are processing all types of trade LCs regularly with a 20% margin, ensuring access for businesses across the board. We aspire to regain our former position as the second-largest bank in terms of export financing — a spot we once proudly held just behind Islami Bank.
Internally, we are correcting a legacy of centralised power. For over 24 years, the former chairman ran the board with little accountability, often intimidating those who disagreed. That era is over. We are now actively encouraging sponsor directors who had been sidelined to return by acquiring a 2% shareholding and joining the board. I've even discussed this with the Bangladesh Bank governor and hope to facilitate their return in the upcoming AGM.
To our customers, I can confidently say: there is no restriction on withdrawing funds. If the amount is within Tk 40–50 lakh, withdrawals are seamless. Larger sums are managed with coordination. Importantly, we have not taken any liquidity support from the central bank since January and hope to fully repay previous loans in the next few months.
Looking ahead, we aim to become one of the top 3-4 banks in Bangladesh by 2027. Our vast network of branches and sub-branches is now being better utilised to attract deposits and offer loans across a diverse range of sectors. While we are expanding our lending, we are doing so responsibly, ensuring no sector is overexposed.
On the issue of default loans — a major concern across the industry — we are prioritising recovery. Relationship officers in each branch are tasked with managing client-specific portfolios. We're rebuilding personal relationships with clients while taking legal action where necessary. Since December, we've recovered about Tk 600 crore, and we aim to recover Tk 2,000-3,000 crore by the end of 2025.
Lastly, on the remittance front, we are developing new incentive-based products to encourage remittance inflows to be turned into Fixed Deposit Receipts (FDRs). This is an important segment we are actively targeting, as many banks benefit from this stream, and we aim to do the same.
EXIM Bank is once again operating with transparency, responsibility, and ambition. We've weathered the storm and are now on a clear path to renewed strength and success.
This interview was conducted by The Business Standard's Staff Correspondent Tonmoy Modak
