New SBAC MD remains unruffled by the adverse weather

Given the coronavirus pandemic-induced collapse in business and dragging liquidity problem, the timing could not be worse to take the helm of a relatively new bank.

But Tariqul Islam Chowdhury, the newly appointed managing director and chief executive officer of South Bangla Agriculture and Commerce (SBAC), is not panicking.

He is rather designing his targets and goals in line with the changing times.

"The banking sector has been going through a very difficult period. Overall, 2020 may be a difficult year for the banking sector. But I think we would not do badly under the circumstances," he told The Daily Star yesterday.

Staying afloat should be the main target during difficult times.

He was appointed for a three-year term starting yesterday, the bank said in a press release. He replaced Mohammad Golam Faruque.

SBAC has 82 branches mostly in the Dhaka division and has permission from the central bank to open 10 more branches. But Chowdhury says he would focus less on opening branches largely to cut back on costs.

Rather, he would focus on sub-branches, which would provide all services a branch can provide but at much lower costs and with a smaller number of staff.

"I think subbranches would fare well in the coming days in serving the unbanked people."

It has six sub-branches, which employ three to four staff each, now. This year, the bank would set up four more sub-branches.

In 2019, the bank raked in an operating profit of Tk 227 crore, up from about Tk 203 crore a year earlier.

The bank would still make a sizable amount of profit this year amidst the pandemic, he said.

At present, deposits total about Tk 7,000 crore and loans and advances Tk 5,600 crore.

Chowdhury looks to bring down the classified loans at the bank below 4 per cent. "We are working relentlessly to bring it down further."

Corporate lending at SBAC accounts for 30 to 35 per cent of the loans and advances, but the incoming MD has set a target to reduce it in phases.

The rest of the loans went to agriculture, SMEs and commercial sectors.

"Our target is to lend to micro and small entrepreneurs and implement the government's stimulus packages," he said, adding that the bank is looking to boost its presence in digital banking.

Chowdhury was serving as an additional managing director and acting MD before his elevation to the top at the bank's 105th board meeting.

The Bangladesh Bank gave its approval to his appointment, the private bank said in a press release. 

Chowdhury started his career as a financial analyst at state-run Sonali Bank in 1984.

He worked as a branch manager, regional manager, divisional manager, head of human resources, credit, treasury management division and currency management division in Sonali Bank before becoming a deputy managing director at the state-owned lender.

He obtained B. Com (Honours) and M. Com in accounting from the University of Dhaka. In 1988, he became a DAIBB diploma-holder of the Institute of Bankers Bangladesh, the press release said.