Abu Sazzad :
Bankers and experts on Sunday urged the commercial banks to extend retail lending among the individuals in a bid to boost economic activities across the country.
“The retail banking introduced by commercial bank is a new concept of demand base banking in the country. In fact, such a scheme creates access to bank finance for mass people. More innovative loan products can enhance the retail banking across the country,” Dr Salehuddin Ahmed, former Governor of Bangladesh Bank (BB), told The New Nation on Sunday.
He said small and ordinary borrowers are not always getting financial services, rather facing various harassments because of the mindset of the bankers. But the retail banking creates the opportunity for such borrowers to get access of bank finance.
Dr Salehuddin Ahmed, however, asked the banks to improve customer services and reduction in interest rate for retail lending to popularise the scheme.
“Retail financing could play a vital role to generate income and job creation,” he noted.
“We have taken steps to expand retail loans in the country with a view to bolstering economy,” Shymal Kumar Shadhu, an Executive of Retail Banking Division of ONE Bank Limited, told The New Nation yesterday.
He said, the retail banking has the potential to grow faster. It can also bring the un-banked people under the banking umbrella. If we look at India, Sri Lanka or even Pakistan, their banking sector has diversified their product base considering demands of the people and economy.
Shymal Kumar Shadhu further said that his bank was immensely perusing the retail banking service as loan classification in this segment was comparatively low from the corporate and industrial loans.
When asked, he said, “Definitely, corporate and industrial loans are important to expedite the country’s industrialization process. But it is not acceptable that large borrowers would fail to repay their outstanding loan every year. Such a bad practice is crippling the financial health the banks”.
Shymal Kumar Shadhu mentioned that job creation is very essential to achieve the sustainable development. Expansion of retail loans may have a positive impact on income generation, job creation and as well as expansion of Bangladesh economy.
“Bangladesh has 56 commercial banks but most of them are yet to dedicate in retail or consumer banking division,” M Mamunur Rashid, a banking expert told The New Nation on Sunday.
He observed that banks are charging high interest rate while extending credit to the clients under the retail banking. The customers are not been able to avail the facility because of high lending rates.
“Banks should offer a flexible rate for the retail customers,” he suggested.
Bankers and experts on Sunday urged the commercial banks to extend retail lending among the individuals in a bid to boost economic activities across the country.
“The retail banking introduced by commercial bank is a new concept of demand base banking in the country. In fact, such a scheme creates access to bank finance for mass people. More innovative loan products can enhance the retail banking across the country,” Dr Salehuddin Ahmed, former Governor of Bangladesh Bank (BB), told The New Nation on Sunday.
He said small and ordinary borrowers are not always getting financial services, rather facing various harassments because of the mindset of the bankers. But the retail banking creates the opportunity for such borrowers to get access of bank finance.
Dr Salehuddin Ahmed, however, asked the banks to improve customer services and reduction in interest rate for retail lending to popularise the scheme.
“Retail financing could play a vital role to generate income and job creation,” he noted.
“We have taken steps to expand retail loans in the country with a view to bolstering economy,” Shymal Kumar Shadhu, an Executive of Retail Banking Division of ONE Bank Limited, told The New Nation yesterday.
He said, the retail banking has the potential to grow faster. It can also bring the un-banked people under the banking umbrella. If we look at India, Sri Lanka or even Pakistan, their banking sector has diversified their product base considering demands of the people and economy.
Shymal Kumar Shadhu further said that his bank was immensely perusing the retail banking service as loan classification in this segment was comparatively low from the corporate and industrial loans.
When asked, he said, “Definitely, corporate and industrial loans are important to expedite the country’s industrialization process. But it is not acceptable that large borrowers would fail to repay their outstanding loan every year. Such a bad practice is crippling the financial health the banks”.
Shymal Kumar Shadhu mentioned that job creation is very essential to achieve the sustainable development. Expansion of retail loans may have a positive impact on income generation, job creation and as well as expansion of Bangladesh economy.
“Bangladesh has 56 commercial banks but most of them are yet to dedicate in retail or consumer banking division,” M Mamunur Rashid, a banking expert told The New Nation on Sunday.
He observed that banks are charging high interest rate while extending credit to the clients under the retail banking. The customers are not been able to avail the facility because of high lending rates.
“Banks should offer a flexible rate for the retail customers,” he suggested.
