Pubali Bank aims to cross Tk1 lakh crore mobile transactions in 2025

Once, Pubali Bank was a struggling financial institution. Today, I'm proud to say it's one of the leading banks in the country. While the past year has been tough for Bangladesh's banking sector—deposit growth hit a record low—we've seen quite the opposite at Pubali Bank. 

In fact, we achieved record deposit growth during this very period.

What helped us stand out? I'd say a combination of quality customers, strong risk management, low non-performing loans (NPLs), and a highly efficient team. These pillars have made us one of the most profitable banks in the sector today.

I'll be honest—our journey hasn't been easy. When Pubali Bank was nationalised in 1984, a staggering 54% of our loans were non-performing. That's more than half our portfolio! But we've turned things around. Today, our NPL ratio is under 3%, which is even better than many international standards.

5 August was a turning point for the entire banking sector. When Bangladesh Bank Governor Ahsan H Mansur compared the state of some banks to burn victims—with some beyond saving—it made headlines. And it also reminded us how important financial discipline and long-term strategy are.

Pubali Bank has been around for 66 years. We're a traditional bank with deep roots. But that doesn't mean our path has been smooth. There was a time when we faced serious financial challenges. Our turnaround didn't happen overnight—it took 21 years of consistent effort and reform.

"This year, our target is to collect Tk14,000–15,000 crore in new deposits."

So, what's behind our recent Tk14,000 crore deposit growth? It's simple: our widespread branch network and, more importantly, the trust we've earned from customers over the decades. People have seen us weather storms, evolve, and keep pushing forward.

We started as a private bank, then became a state-owned one, and faced our toughest days during that phase. But in 2005, we truly turned a corner. Since then, we've worked hard to rebuild, and now we're moving with confidence.

Bangladesh Bank removed its observer from our bank in 2007. Over time, we rose to the number one position in some indicators and number two in others.

Following Covid-19, the country's banks became divided into two groups. One group saw rising NPLs and were identified as poor-performing banks. The other group saw improvement—declining NPLs, better asset quality, and growing customer confidence.

Infographics: TBS

Media coverage of these trends has raised awareness among the general public. Customers experienced how some banks failed to provide liquidity while others disbursed cash immediately upon cheque submission. This contrast created a lasting impression.

Such experiences built deep trust in certain banks—Pubali Bank played a major role here. Our long-standing presence, strong corporate governance, and vast network were key factors in this success.

We always strive to keep our Advance-Deposit Ratio (ADR) within 80%. Regardless of a customer's loan size, we have always been careful to honour repayments.

Our liquidity management has been excellent. We have invested in Treasury bills and bonds in such a way that our CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) requirements are never in deficit. Each of these positive aspects has increased customer confidence.

Compared to other banks, our interest rate on deposits has been lower, yet customers have willingly deposited their money for safety and security.

In Bangladesh, customers have mixed experiences—some believe that banks offering higher interest are often riskier, while more trustworthy banks offer lower returns.

Interest rates on deposits are an important factor for corporate and institutional depositors, as many banks pitch offers simultaneously to these clients. When offered higher rates, these institutions often negotiate with even the better-performing banks.

Companies involved in manufacturing, like Unilever and Pran, require a vast banking network to serve their dealers and distributors across the country. Banks with nationwide branches are their preferred partners.

We have 508 branches and around 300 sub-branches, making us a key player for large corporates needing smooth supply chain transactions.

Last year, we introduced significant technological changes. We rolled out 12,000 Point-of-Sale (POS) machines and distributed 70,000 QR codes to merchants. Out of our Tk14,000 crore deposit growth, Tk700 crore came through these alternative channels.

The money merchants receive through POS systems goes directly into our bank. The interest cost on these deposits is also very low.

This year, we plan to expand POS services further, onboarding another 10,000 merchants. Additionally, we will add 50,000–60,000 new QR code users, taking the total beyond 100,000. These efforts will help create a new image for the bank.

We have also opened many ATMs across Bangladesh, significantly enhancing our brand image among customers.

Four years ago, we launched mobile banking. Last year, the transaction volume through our app was Tk60,000 crore. This year, we expect it to exceed Tk1,00,000 crore, and in two to three years, we anticipate this figure will cross Tk5,00,000 crore.

This year, our target is to collect Tk14,000–15,000 crore in new deposits. We plan to invest half in Treasury instruments and the rest in loans.

When we were nationalised in 1984, our NPL was at 54%. After privatisation, several strategic plans were implemented, the most crucial being the ensuring of corporate governance.

We realised that unless our bank environment improved, customers would not stay with us for life. So, we invested in human resources development, offering extensive training—both local and international.

Our focus on compliance, governance, and risk mitigation through a holistic approach has made our bank stronger. Still, it took nearly 21 years to recover from the crisis.

We are also now focusing on foreign deposits, particularly through Offshore Banking Units. Through our app, deposits can be made from anywhere in the world.

We issue debit cards to foreign currency depositors, allowing them to withdraw money from any bank in any country.

There is great investment potential in Bangladesh. For example, Japan's debt market is currently negative. If Japanese investors were to deposit with us, they could earn 5–6% interest.

This interview was conducted by TBS Staff Correspondent Sakhawat Prince