10 banks, 5 NBFIs rated as top performers

The Bangladesh Bank has for the first time rated banks and non-bank financial institutions (NBFIs) based on their performances under its Sustainability Rating 2020.

The Sustainable Finance Department under the central bank picked up 10 banks and 5 non-bank financial institutions (NBFIs) in this regard to give them the rating.

The 10 banks are Al-Arafah Islami Bank, Bank Asia, BRAC Bank, Dutch-Bangla, Exim Bank, Islami Bank, Mutual Trust Bank, Prime Bank, The City Bank and United Commercial Bank.

The five financial institutions include Hodge Finance, IDLC Finance, IPDC Finance, Saudi-Bangladesh Industrial and Agriculture Investment Company and United Finance.

Bangladesh Bank Executive Director and spokesperson Sirajul Islam told The Business Post that the rating was based on a number of indicators including the banks’ Green Financing, CSR activities, Capital Situation and Agent Banking.

The benchmarking also considered the loan quality of the banks, he said, adding that the serial of the banks in the rating, however, is not a real serial, which remains classified.

The central bank determined the banks’ standard by combining the information sent by the institutions and the information contained in the eight departments of the central bank.

The Sustainable Core Banking Index takes into account banks’ creditworthiness, capital situation and agent banking activities, according to the central bank officials.