Best Financial Institution of the Year 2023

Pubali Bank has transformed from a troubled institution to one of Bangladesh's leading private banks over the last six decades.

Established in 1959 as Eastern Mercantile Bank, the lender faced numerous challenges, including a nationalisation period after Bangladesh's independence that significantly affected its corporate governance.

In 1984, the bank was privatised and renamed Pubali Bank. By 2005, its defaulted loans soared to 54 percent, making it a "problem bank".

Under the guidance of Bangladesh Bank, which appointed an observer to monitor its operations, Pubali Bank started its journey of reform.

According to the bank's managing director and CEO Mohammad Ali, the board's focus on improving corporate governance and mindset played a critical role in the turnaround.

It took 21 years for the bank to resolve its governance issues, but the lessons learned during that period helped establish a strong foundation for future growth.

The central bank withdrew its observer in 2007, signalling that Pubali had regained stability.

At present, Pubali is the largest private bank in Bangladesh, with 504 branches, 195 sub-branches and 21 Islamic Banking windows, supported by the country's largest real-time centralised online banking network.

As of 2023, the bank's deposits stood at Tk 60,629.64 crore and loans Tk 55,449.55 crore.

It has also cut back on its defaulted loans remarkably: from more than 35 percent in 2000, the ratio came down to just 2.86 percent in 2023 -- one of the lowest in the banking sector.

Pubali's success is attributed to strong governance, prudent lending practices and its commitment to financial and digital inclusion.

The bank has been at the forefront of digital banking, which has expanded its portfolio and enhanced customer confidence.