The Managing Director and CEO of the Premier Bank Limited, Khandaker Fazle Rashid, is one of the famous bankers of the country. Khandaker Fazle Rashid is one of them with whose hands banking system in this country has flourished. This expert banker has played a great role in making banking profession attractive to the new generation bankers. Side by side with building up a colorful banking career of his own, he took up banking profession as a matter of meditation. This is why he has succeeded in taking himself to the highest level of banking profession. He believes honesty, efficiency, sincerity and to be tirelessly hardworking as pre-condition, which he has followed in his own case. For this reason he has become a respectable person in all circles. Recently, New Nation had an interview with this celebrity banker.
Excerpts :
Say elaborately about your banking career:
After completing MBA from the Institute of Business Administration of Dhaka University, I started my professional career joining Sonali Bank as a senior officer in 1978. In 1982, the second stage of my career began with AB Bank, the first private sector bank of modern age. At that time AB Bank’s fine working atmosphere side by side with the culture of using modern technology to serve customers inspired me a lot. With the opportunity of working as the head of different sections at AB Bank, I developed myself into a full-fledged responsible banker. Especially as the Country Manager of Mumbai branch of AB Bank in 1997-98 a new phase in my career opened. My attempts to turn customers in new environment of foreign Mumbai city towards AB Bank succeeded a lot. The opportunity of exposing and expanding Bangladesh’s banking brand image to Mumbai was a matter of inspiration and encouragement for me. Taking new challenge in career, I joined South East Bank as an EVP in 2000 and was promoted as SEVP. As the Head of Credit, I worked smoothly for this bank with great responsibility for four years. Thereafter, in 2003, I joined, as DMD (business development), Dhaka Bank. I tried to play a great role in making transaction and business rich and progressive in Dhaka Bank that is known as market leader in modern banking. In October 2007, I joined Premier Bank as its Managing Director. I took initiative to make banking procedure and overall management system of Premier Bank strong and progressive. In 2009 I returned to Dhaka Bank as its MD. I completed five years’ tenure between 2009 and 2014 successfully. In 2014, as a matter of change, I got a call again from Premier Bank. Working as an Adviser of the Board of Directors for six months I again assumed the responsibility of Managing Director and Chief Executive Officer (CEO) of Premier Bank in February 2015 and since then I have been continuing my career there.
Throw light on strength and weakness of banking system in this country as an experienced banker
Banking sector has advanced through a lot of changes during the last few decades. These changes are positive. In this respect Financial Sector Reform Project, Core Risk Management Policy, Bank Company Act, Technological Enhancement and Automation, Inclusive Banking and Mobile Banking have played important roles. Much of the present banking system is people-oriented. Free access of all from corporate to cottage industry, professionals to students, elderly people, housewives and garment workers has been ensured. The remaining in competitive banking service, real time on-line banking, automated teller service, inter-net banking, mobile messaging service have been introduced. To face risk properly risk management culture has been created. A bank’s core stakeholders are shareholders, honourable customers and management. The Board of Directors of a bank gives main directions protecting interest of all. If Bangladesh Bank’s firm policy rules are applied, corporate governance system will be well established in all new generation banks. Banking system will advance towards more maturity.
What is the specialty of Premier Bank compared with other banks?
Our great achievement is that crossing hurdles for more than a decade we have established strong ties with honourable customers, shareholders and all stakeholders and Premier Bank’s acceptability to customers as a strong brand. We have reached the peak of success climbing the stairs of history, heritage and creativity. Our milestone is high standard customer service with the combination of ultramodern technology.
Our success is superb combination of modern technology with local culture. Moreover we have improved human resources. With their services, we are developing Premier Bank into a ‘House of Customer Service and Care’.
The Government has given approval for some more banks. Compared with the present size of our economy, how logical is this approval?
If we consider ‘banking population ratio’ in the context of our economy, approval of some banks is not a big challenge. Rather, if the banks are operated properly, sense of competitiveness will increase and along with that business, financial transaction and employment opportunity too will increase. Now it is a reality and with that we will have to move forward. When we stepped into the economy as a new generation bank, we too had to face the same question.
It is learnt from different sources that it is not being possible to bring pace in investment in the country. What is the reason? What is the way out from this tendency?
Political instability, business stagnancy and sluggishness in investment are entangled together. The political instability that occurred during the past years has left an impact on our overall business and we feel the impact in the banking sector too. In fact, there was serious political instability in 2014 and initial months of 2015 and that is being felt still.
In addition to political crisis, there is the question of infrastructure like gas, power, roads and water. Side by side with dearth of infrastructure, bureaucratic complexities also discourage local and foreign investors. They want quick decisions. But it takes a long time to get a decision. On the other hand, there is the allegation of corruption and irregularity. If it is possible to implement facilities of infrastructure, not only volume of investment will increase, but local investors too will be interested in investing more. Side by side with that, it is necessary to change the quality of politics of this country. If rule of law is established, social security increases and that is essential for investment. If there is want of security in social life, along with foreign investors local investors too will back track.
Recently, Governor of Bangladesh Bank Dr. Atiur Rahman admitted that loan defaulting has been in a dangerous situation. What is the wayout from this culture of loan defaulting? How much more is the defaulting in this country compared with neighbouring countries?
In the past years, along with the central bank, attempts have been made by other banks to reduce the rate of defaulting loans. But as there has been no remarkable improvement, conscious people have been anxious. Until September 2014, bad debts in the banking sector exceeded BDT 57,000 crore. There is no doubt that if such a huge sum of money would be working in the banking sector, two Padma bridges could be built.
The main reasons behind are initiative of disbursing risky loans, sluggish business, increasing trend of bad debt. Although it is an unavoidable truth, I am sorry to mention that dearth of quality manpower in the banking sector is to some extent responsible for this. For this it is necessary to train up employees engaged in loan risk management for long.
For controlling upward trend of bad loans, we will have to evaluate credit worthiness of borrowers. In other words, we will have to see the willingness and capacity to repay of the borrower. Side by side with that, we will have to analyze the credit proposals as per Bangladesh Bank’s and bank’s own policy rules. In this case, productive sector too will have to be taken into consideration. Monitoring process too will have to be continued after disbursement of loan. There will have to be no slackness in the culture of impunity and willful defaults for ‘powerful’ and ‘influential’ people. Above all, as conscious bankers we will have to take the lead and learn the art of saying ‘no’ to irregularity. In that case, we will be able to come out of the tendency of disbursing bad loans in the long run.
No country on earth is fully free from bad or defaulting loans. In our neighbouring countries like India, Pakistan and Sri Lanka, the rates of classified loans are 4.3 per cent, 12.3 per cent and 4.2 per cent respectively. In our country the rate is 12 per cent. But without looking into those countries, we will have to be rigid in respect or rules and morality while making our loan programmes forceful. This should be our pledge.
There has been lack of confidence among customers following financial irregularities in some banks. What, do you think, should be done to bring back this confidence?
From my long banking career experience, I can say that financial irregularity of a particular customer of a particular bank does not damage image of the entire banking sector. But if the trend of this type of tendency of irregularity and scandal is set among our present day bankers as exposed, it is really alarming. My experience also says that embezzling bank’s money one cannot go scot-free. It is bound to be on trial by the court of time. A big lesson that we get from Hallmark and Bismillah scandals is that morality, honesty and efficiency are much big compared to business. Earning profit is the purpose of a business, but that must not be sacrificing norms, law and morality. I have myself observed these principles throughout my life and expect of my colleagues of being like this.
Many say that our banking sector is passing through some sort of crisis. What do you think about it? If there is really crisis, what is the way out of this crisis?
I have already said earlier that in 2014 and in initial months of this year, political crisis left an adverse effect in our economy and banking sector. Investment-friendly environment is now being created in the economy gradually. Side by side with this, local and foreign entrepreneurs and investors are coming up for new investment. Progress in banking sector has not stopped. Brisk activities in this sector are coming back. Especially, private entrepreneurs are stepping forward on their own initiatives. In order to make banking sector more progressive and more lasting, side by side with bankers, it is necessary to have industry-friendly and business-friendly government and their spontaneous enterprise and cooperation. In order to materialise prospects of investment, the government will have to emphasise on the development of infrastructure.
Banking profession is being considered as an attractive profession among the new generation. What, do you think, is the reason behind it? What is your advice as an experienced and expert banker to the new generation bankers?
When I started my banking career at the end of seventies, government banks were the breeding place for learning banking profession. In that consideration, my joining in Sonali Bank as a banker was a timely step. But if the financial and social matter is considered, joining banking profession was not so attractive. Banking profession progressed a lot during eighties and nineties. Spontaneous launching of first, second and third generation banks has added new impetus in the success of banking profession. Now challenge as well as status of banking profession has increased. At present, banking is undoubtedly an attractive profession.
Today’s bankers will lead the future generation bankers. To face the challenge of ever increasing challenge, the present day bankers will have to be much responsible, sacrificing and active. They will have to be respectful to senior bankers. They will have to understand the notion of customers and win their mind giving them timely service. They will have to try to acquire proper knowledge in banking. New generation will have to keep in mind that self-sacrifice is the key to reach the stairs of success. They will have to always keep alert so that scope of irregularity and scandal is not created. Morality and honesty will be the provender of the new generation bankers.
The progress of banking sector in many spheres is unprecedented. Attempting to take advantage of this modern facility, often customers are being victims of harassment. What is way out of coming out of this harassment?
The progress in respect of banking efficiency and professionalism is really incredible. Especially, private banks are by far ahead of nationalised banks in this respect. Modern technology-based banking system, banking automation and above all efficient human resources are making private banks progress ahead. In rapport with the modern world, there has been a great paradigm in private banks in Bangladesh. Coming out of the special customers circle, banking system is now attaching importance to overall system and inclusiveness. As a systematic process, mobile banking, internet banking, school banking and priority banking have come up. During more than a decade, the greatest achievement we have in the Premier Bank is long lasting bondage with the customers. Premier Bank has established acceptability among the customers as a strong brand. We greatly feel to be beside the customers. Our friendly workforce is always conscious so that our customers do not have to face any adversity while taking our service. If there is any variation in this, there is the opportunity of lodging complaints and reaching instant solution. Efficient workforce, the platform of commodity and technology are behind the success of Premier Bank.
Excerpts :
Say elaborately about your banking career:
After completing MBA from the Institute of Business Administration of Dhaka University, I started my professional career joining Sonali Bank as a senior officer in 1978. In 1982, the second stage of my career began with AB Bank, the first private sector bank of modern age. At that time AB Bank’s fine working atmosphere side by side with the culture of using modern technology to serve customers inspired me a lot. With the opportunity of working as the head of different sections at AB Bank, I developed myself into a full-fledged responsible banker. Especially as the Country Manager of Mumbai branch of AB Bank in 1997-98 a new phase in my career opened. My attempts to turn customers in new environment of foreign Mumbai city towards AB Bank succeeded a lot. The opportunity of exposing and expanding Bangladesh’s banking brand image to Mumbai was a matter of inspiration and encouragement for me. Taking new challenge in career, I joined South East Bank as an EVP in 2000 and was promoted as SEVP. As the Head of Credit, I worked smoothly for this bank with great responsibility for four years. Thereafter, in 2003, I joined, as DMD (business development), Dhaka Bank. I tried to play a great role in making transaction and business rich and progressive in Dhaka Bank that is known as market leader in modern banking. In October 2007, I joined Premier Bank as its Managing Director. I took initiative to make banking procedure and overall management system of Premier Bank strong and progressive. In 2009 I returned to Dhaka Bank as its MD. I completed five years’ tenure between 2009 and 2014 successfully. In 2014, as a matter of change, I got a call again from Premier Bank. Working as an Adviser of the Board of Directors for six months I again assumed the responsibility of Managing Director and Chief Executive Officer (CEO) of Premier Bank in February 2015 and since then I have been continuing my career there.
Throw light on strength and weakness of banking system in this country as an experienced banker
Banking sector has advanced through a lot of changes during the last few decades. These changes are positive. In this respect Financial Sector Reform Project, Core Risk Management Policy, Bank Company Act, Technological Enhancement and Automation, Inclusive Banking and Mobile Banking have played important roles. Much of the present banking system is people-oriented. Free access of all from corporate to cottage industry, professionals to students, elderly people, housewives and garment workers has been ensured. The remaining in competitive banking service, real time on-line banking, automated teller service, inter-net banking, mobile messaging service have been introduced. To face risk properly risk management culture has been created. A bank’s core stakeholders are shareholders, honourable customers and management. The Board of Directors of a bank gives main directions protecting interest of all. If Bangladesh Bank’s firm policy rules are applied, corporate governance system will be well established in all new generation banks. Banking system will advance towards more maturity.
What is the specialty of Premier Bank compared with other banks?
Our great achievement is that crossing hurdles for more than a decade we have established strong ties with honourable customers, shareholders and all stakeholders and Premier Bank’s acceptability to customers as a strong brand. We have reached the peak of success climbing the stairs of history, heritage and creativity. Our milestone is high standard customer service with the combination of ultramodern technology.
Our success is superb combination of modern technology with local culture. Moreover we have improved human resources. With their services, we are developing Premier Bank into a ‘House of Customer Service and Care’.
The Government has given approval for some more banks. Compared with the present size of our economy, how logical is this approval?
If we consider ‘banking population ratio’ in the context of our economy, approval of some banks is not a big challenge. Rather, if the banks are operated properly, sense of competitiveness will increase and along with that business, financial transaction and employment opportunity too will increase. Now it is a reality and with that we will have to move forward. When we stepped into the economy as a new generation bank, we too had to face the same question.
It is learnt from different sources that it is not being possible to bring pace in investment in the country. What is the reason? What is the way out from this tendency?
Political instability, business stagnancy and sluggishness in investment are entangled together. The political instability that occurred during the past years has left an impact on our overall business and we feel the impact in the banking sector too. In fact, there was serious political instability in 2014 and initial months of 2015 and that is being felt still.
In addition to political crisis, there is the question of infrastructure like gas, power, roads and water. Side by side with dearth of infrastructure, bureaucratic complexities also discourage local and foreign investors. They want quick decisions. But it takes a long time to get a decision. On the other hand, there is the allegation of corruption and irregularity. If it is possible to implement facilities of infrastructure, not only volume of investment will increase, but local investors too will be interested in investing more. Side by side with that, it is necessary to change the quality of politics of this country. If rule of law is established, social security increases and that is essential for investment. If there is want of security in social life, along with foreign investors local investors too will back track.
Recently, Governor of Bangladesh Bank Dr. Atiur Rahman admitted that loan defaulting has been in a dangerous situation. What is the wayout from this culture of loan defaulting? How much more is the defaulting in this country compared with neighbouring countries?
In the past years, along with the central bank, attempts have been made by other banks to reduce the rate of defaulting loans. But as there has been no remarkable improvement, conscious people have been anxious. Until September 2014, bad debts in the banking sector exceeded BDT 57,000 crore. There is no doubt that if such a huge sum of money would be working in the banking sector, two Padma bridges could be built.
The main reasons behind are initiative of disbursing risky loans, sluggish business, increasing trend of bad debt. Although it is an unavoidable truth, I am sorry to mention that dearth of quality manpower in the banking sector is to some extent responsible for this. For this it is necessary to train up employees engaged in loan risk management for long.
For controlling upward trend of bad loans, we will have to evaluate credit worthiness of borrowers. In other words, we will have to see the willingness and capacity to repay of the borrower. Side by side with that, we will have to analyze the credit proposals as per Bangladesh Bank’s and bank’s own policy rules. In this case, productive sector too will have to be taken into consideration. Monitoring process too will have to be continued after disbursement of loan. There will have to be no slackness in the culture of impunity and willful defaults for ‘powerful’ and ‘influential’ people. Above all, as conscious bankers we will have to take the lead and learn the art of saying ‘no’ to irregularity. In that case, we will be able to come out of the tendency of disbursing bad loans in the long run.
No country on earth is fully free from bad or defaulting loans. In our neighbouring countries like India, Pakistan and Sri Lanka, the rates of classified loans are 4.3 per cent, 12.3 per cent and 4.2 per cent respectively. In our country the rate is 12 per cent. But without looking into those countries, we will have to be rigid in respect or rules and morality while making our loan programmes forceful. This should be our pledge.
There has been lack of confidence among customers following financial irregularities in some banks. What, do you think, should be done to bring back this confidence?
From my long banking career experience, I can say that financial irregularity of a particular customer of a particular bank does not damage image of the entire banking sector. But if the trend of this type of tendency of irregularity and scandal is set among our present day bankers as exposed, it is really alarming. My experience also says that embezzling bank’s money one cannot go scot-free. It is bound to be on trial by the court of time. A big lesson that we get from Hallmark and Bismillah scandals is that morality, honesty and efficiency are much big compared to business. Earning profit is the purpose of a business, but that must not be sacrificing norms, law and morality. I have myself observed these principles throughout my life and expect of my colleagues of being like this.
Many say that our banking sector is passing through some sort of crisis. What do you think about it? If there is really crisis, what is the way out of this crisis?
I have already said earlier that in 2014 and in initial months of this year, political crisis left an adverse effect in our economy and banking sector. Investment-friendly environment is now being created in the economy gradually. Side by side with this, local and foreign entrepreneurs and investors are coming up for new investment. Progress in banking sector has not stopped. Brisk activities in this sector are coming back. Especially, private entrepreneurs are stepping forward on their own initiatives. In order to make banking sector more progressive and more lasting, side by side with bankers, it is necessary to have industry-friendly and business-friendly government and their spontaneous enterprise and cooperation. In order to materialise prospects of investment, the government will have to emphasise on the development of infrastructure.
Banking profession is being considered as an attractive profession among the new generation. What, do you think, is the reason behind it? What is your advice as an experienced and expert banker to the new generation bankers?
When I started my banking career at the end of seventies, government banks were the breeding place for learning banking profession. In that consideration, my joining in Sonali Bank as a banker was a timely step. But if the financial and social matter is considered, joining banking profession was not so attractive. Banking profession progressed a lot during eighties and nineties. Spontaneous launching of first, second and third generation banks has added new impetus in the success of banking profession. Now challenge as well as status of banking profession has increased. At present, banking is undoubtedly an attractive profession.
Today’s bankers will lead the future generation bankers. To face the challenge of ever increasing challenge, the present day bankers will have to be much responsible, sacrificing and active. They will have to be respectful to senior bankers. They will have to understand the notion of customers and win their mind giving them timely service. They will have to try to acquire proper knowledge in banking. New generation will have to keep in mind that self-sacrifice is the key to reach the stairs of success. They will have to always keep alert so that scope of irregularity and scandal is not created. Morality and honesty will be the provender of the new generation bankers.
The progress of banking sector in many spheres is unprecedented. Attempting to take advantage of this modern facility, often customers are being victims of harassment. What is way out of coming out of this harassment?
The progress in respect of banking efficiency and professionalism is really incredible. Especially, private banks are by far ahead of nationalised banks in this respect. Modern technology-based banking system, banking automation and above all efficient human resources are making private banks progress ahead. In rapport with the modern world, there has been a great paradigm in private banks in Bangladesh. Coming out of the special customers circle, banking system is now attaching importance to overall system and inclusiveness. As a systematic process, mobile banking, internet banking, school banking and priority banking have come up. During more than a decade, the greatest achievement we have in the Premier Bank is long lasting bondage with the customers. Premier Bank has established acceptability among the customers as a strong brand. We greatly feel to be beside the customers. Our friendly workforce is always conscious so that our customers do not have to face any adversity while taking our service. If there is any variation in this, there is the opportunity of lodging complaints and reaching instant solution. Efficient workforce, the platform of commodity and technology are behind the success of Premier Bank.
