It has become a must for depositors to consider a bank’s financial health first before parking their funds there because only financially sound banks will be able to give returns against their trust, says Emranul Huq, the managing director and CEO of Dhaka Bank Limited.
In a conversation with The Business Post, Emranul advised depositors to be more conscious about the financial sector before investing their funds.
He said depositors will also have to observe various issues, such as which bank is maintaining corporate governance; who owns it; how strong is the balance sheet; which people are in the management; and the central bank’s rating on the bank, before investing their hard-earned money.
“Depositors can invest their funds in the bank or financial institution without any hesitation if their Board of Directors and management are compliants to rules and regulation and accountable to the its client with coportate integrity,” he stressed.
Banks and financial institutions have a major role to play to overcome the confidence crisis among depositors, said Emranul, adding that these institutions will have to perform well and maintain proper corporate governance also.
He said Dhaka Bank is doing everything to boost its clients’ confidence in it. “We are operating following proper guidelines. As a result, our balance sheet is accurate and transperent.”
Dhaka Bank is always trying to improve its balance sheet and maintain corporate governance, he added.
“We are always trying to make our products customer-friendly,” Emranul said. Dhaka Bank now offers a special deposit scheme with attractive monthly returns, easy overdraft and loan facilities and other free features.
At the end of December 2022, deposits in Dhaka Bank stood at Tk 22,602.99 crore. Its deposit growth was at 7.03 per cent year-on-year.
“We are trying to maintain our hard-earned reputation. There has never been any controversy about our bank since it entered the market 27 years ago,” Emranul said proudly.
“Over time, we also have achieved quality growth as we emphasised skilled manpower. Dhaka Bank is trying to keep its brand and image constant with the focus on good governance,” he said. Recently, the banking sector passed through a difficult situation due to the massive deposit withdrawal pressure from several banks. But the situation has improved due to the central bank’s initiatives, he added.
The whole banking sector fell into a crisis due to two or three banks because it’s a very sensitive sector, Emranul opined.
However, the situation has finally gotten a bit better thanks to the banking regulator, which provided immediate solutions to those banks by conducting audits and appointing observers, he said.
