Bengal Commercial Bank steps into its sixth year with a focus on compliance and financial inclusion

Over the past five years, Bengal Commercial Bank has experienced a journey of steady growth and strategic progress, but it certainly was not an easy environment to navigate. 

From our inception, the focus was on building a strong institutional foundation, expanding our network, and delivering innovative services. We operated in a highly competitive environment and faced significant hurdles along the way. The severe impact of the Covid-19 pandemic, the Russia-Ukraine war, the foreign exchange crisis, instability in the dollar price, and a general lack of confidence in the banking sector all directly affected our initial strategies and usual growth. 

However, we managed to position ourselves as a reliable financial institution. This progress is the result of the collective efforts of our employees, the guidance of our board of directors, and the trust of our customers.

During this period, we achieved several notable milestones. Perhaps the most significant is our strong asset quality. By remaining uncompromising on compliant banking, we maintained zero non-performing loans (NPL) for three consecutive years from our inception. Even as our business volume increases today, we still manage a very low level of NPL, placing us among the best-performing banks in the country in this regard. Our financial position, strong capital base, and effective management practices are reflected in our "AA-" rating. We have also expanded our outreach rapidly, currently operating 34 branches and sub-branches across the country, which includes four full-fledged Islami banking branches.

We have integrated different innovative and segmented products into our service chart alongside regular offerings. For example, we designed a home loan facility for individuals up to Tk4 crore, a limit that is currently allowable for only four banks in the entire industry. Our commitment to service excellence and innovation was also recognised internationally when the bank received the Global Brand Award in 2023.

The guiding philosophy behind our growth is rooted in customer trust, reliability, and responsible banking. In a competitive landscape like Bangladesh, sustainable growth comes from earning customer confidence through transparency, integrity, and consistent service quality. Our management and board of directors are uncompromising when it comes to maintaining compliance and good governance. We strictly adhere to the rules and regulations of Bangladesh Bank and other regulators, emphasising effective risk management frameworks and internal controls in our day-to-day affairs to ensure long-term stability.

Small and medium enterprises are the backbone of our economy, and supporting them is a major priority. We have introduced specialised financing schemes with accessible credit facilities and advisory support for CMSME entrepreneurs. Currently, we allocate almost 33% of our total loans to this sector, and we aim to reach 50% in the near future. To facilitate this growth, the bank recently signed an agreement with RSA Advisory Ltd, a leading advisory firm in the country, to help expand our CMSME business.

Digital transformation is redefining the financial landscape, and we have proactively embraced technology to provide faster and safer solutions. Customers can execute transactions anytime through our i-Banking platform and the Bengal iNSPIRE app. For further convenience, we integrated solutions allowing customers to pay utility bills, government taxes, and fees securely through the A-Challan and Ekpay systems. We also maintain an active presence on social media to engage directly with customers and respond to their queries.

Notably, Bengal Commercial Bank became the only bank in Bangladesh to conduct its operations through the Bangladesh Automated Clearing House (BACPS and BEFTN) using the clearing house of Bangladesh Bank without the support or sponsorship of any other bank. This demonstrated our strong operational capability from the outset, and Bangladesh Bank honoured us with a special award for this achievement.

All our activities are driven by a modern Core Banking Solution (CBS) that integrates our branch network, digital channels, and operational processes into a unified platform. This centralised system enables real-time transaction processing and improved data security. Alongside technology, we believe that customer service is the cornerstone of a successful bank. We continuously train our employees and strengthen customer feedback mechanisms so that every interaction reflects professionalism and efficiency.

Bringing unbanked people into the formal financial system has been a strategic priority since we obtained our license. Through our expanding branch network, we launched micro-credit, micro-finance, and CMSME products aimed particularly at individuals living in rural and semi-urban areas. Empowering women and young entrepreneurs is another major focus. We provide dedicated financing programmes, advisory services, and capacity-building initiatives tailored to women-led businesses and the youth, while also exploring accessible financing options for sustainable rural enterprise development.

As we look to the next five years, our vision is to transform Bengal Commercial Bank into a strong, innovative, and customer-focused institution that contributes meaningfully to the economic progress of Bangladesh. We aim to strengthen our digital capabilities, expand our footprint, and enhance service quality while maintaining strong governance. Our ultimate goal is to remain a trusted banking partner for individuals and businesses, supporting their growth and helping build a prosperous future for the nation.

Tarik Morshed is the Managing Director of Bengal Commercial Bank PLC.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.