IFIC Bank receives Tk6,000 cr in new deposits in six months
Once shaken by massive withdrawals and damaging rumours, the bank has regained public confidence under a restructured board. With deposits restored, it now looks ahead to a stable, service-driven, and export-focused future.
Highlights:
- The bank aims to reduce total non-performing loans (NPL) by 10–12% this year
- 50% of this year's investment funds to be placed in government instruments
- Special focus on export-oriented businesses
- Full-scale lending operations planned from 2026
- The bank did not require financial support from the central bank; it overcame the crisis using its internal capabilities
When we assess the performance of a bank, we mainly look at two things—liquidity and the health of the balance sheet. After the challenges we faced post-August 2024, I can confidently say that our liquidity situation is now strong. Restoring the balance sheet fully will take a bit more time, but we're working on it every day.
The turning point came on 4 September 2024, when Bangladesh Bank restructured our board. We held our first board meeting just four days later, on 8 September. From that moment, we went into action mode. We sat down with management to understand where and how deposits were declining. We directly and digitally engaged with our branch managers across the country.
One of our first steps was to communicate clearly with both customers and employees. We made it known that the bank was now under direct government supervision. This was no longer a bank run by any single individual; this was a people's bank. Our staff began reaching out to clients, explaining the situation, and sharing positive experiences on social media. That collective effort played a huge role in restoring public trust.
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Rebuilding morale and fighting rumours
At one point during the crisis, customers were withdrawing up to Tk1,000 crore per day. Naturally, many of our colleagues felt overwhelmed and demoralised. We assured them that the situation was manageable and temporary. Through regular 'town hall' meetings, we made sure everyone, from permanent employees to contractual staff, felt included and informed.
We also encouraged our team to counter misinformation. We created a monitoring cell to respond to misleading content on platforms like YouTube. Our employees helped us directly engage with the public and restore confidence.
Ensuring liquidity and recovering deposits
Before the crisis, we used to keep about Tk650–750 crore ready for daily transactions. During the peak of the crisis, we raised that amount to Tk1,250–1,400 crore. Customers withdrawing large sums even received transport assistance. We assured them, "You can take your money anytime, but waiting a bit might actually benefit you." That message helped calm nerves.
Our deposits dropped from Tk50,000 crore to Tk44,000 crore. But by the end of October 2024, outflows had stopped. Starting from November, deposits began returning, and we saw a net inflow of Tk360 crore that month alone. By April this year, we had recovered over Tk6,000 crore, bringing us back to Tk50,000 crore in deposits—and we did it entirely with our own capabilities, without any financial support from the central bank.
Our goals for 2025
Our deposit target for 2025 is Tk62,000 crore. We're aiming to reach that milestone through improved customer service and competitive offerings. We resumed lending in April 2025, and we're proceeding cautiously. For this year, our focus is stability. From 2026, we plan to fully resume loan operations.
We're giving special attention to export-oriented businesses, and we're actively onboarding new exporters to build a strong client base in that segment.
Tackling the NPL challenge head-on
When we joined the new board, we found that the actual non-performing loan (NPL) figure was 38%, not the artificially lowered 4.5% reported in 2023. We have now classified loans into three categories, one of which is "compromised loans." These include high-profile names like Beximco Group and Salman F Rahman.
We're approaching these cases through a strict legal framework and complete transparency. Many of these loans are secured by high-quality collateral such as shares. We've started collecting dividends and are pursuing court orders to adjust them against outstanding loans.
Where the business is viable and generating positive cash flow, we're offering loan restructuring or new financing. Our aim is to reduce the NPL figure by 10–12% by the end of this year.
Our flagship housing project
We're also very proud of our housing initiative, "Amar Bari, Amar Ghor." It's possibly the largest mortgage loan project in the country after Delta BRAC Housing. The World Bank is also involved, and we're working with the stakeholders to expand it further and bring affordable housing to more people.
Our investment strategy for 2025
We've instructed management to invest at least 50% of our investable funds in government instruments this year, which currently yield about 11–11.5% returns.
We're also actively recovering previously classified loans, focusing on those we can turn around within 6–9 months. With deposit growth stabilised and customers happy with our services, we feel optimistic about the road ahead.
From July 2025, we will enter the market more competitively by gradually lowering deposit interest rates, which will help reduce our cost of funds and increase profitability.
This is our operating model for 2025. From 2026 onwards, we'll scale up investments further, again, with a sharp focus on export-oriented businesses. We already have a solid client base in this sector, and we aim to build on it in the coming years.
This interview was conducted by The Business Standard's Staff Correspondent Sakhawat Prince
