Mashrur Arefin 
Managing Director & CEO, City Bank

The Daily Star (TDS): Your bank has recently achieved an annual operating profit surpassing Tk 2,000 crore. What does this milestone signify for your organization?

Mashrur Arefin (MA): This milestone is much more than a financial number for City Bank. It's a deeply personal and collective achievement—a testament to the dedication and resilience of our team, who dreamed of reaching Tk 2,000 crore in operating profit within a year from Tk 1,350 crore. And, in the end, we reached nearly Tk 2,400 crore.

It feels especially significant because the banking landscape here is generally in tatters; it's highly earthquake-prone and uncertain. Customers are struggling to get their deposits back from many banks; many banks face basic capital shortfalls if proper audits on their loan books are conducted. In a country like this, City Bank's deposits grew by Tk 13,000 crore in just one year.

But this has two sides. First, it means that people trust our brand. Second, when a larger section of the industry is in trouble, how long can I remain unaffected since I carry systemic risk on my shoulders?

So, there is joy, and there is trepidation.

TDS: What key factors contributed to this achievement despite challenges in the banking sector?

MA: It's a combination of courageous decision-making, employee happiness, our overall customer-centric innovation, resilience in risk management, our ability to use technology as a game-changer, and our shared vision—between the bank's Chairman, board, and management.

TDS: Looking ahead, what strategies do you have in place to ensure continued growth and adaptability?

MA: Looking ahead, we will continue to focus on acquiring deposits at a cheaper cost. We will keep expanding throughout the country, with a special focus on rural areas. We will concentrate lending more on the Small & Micro segments, as well as Retail and Cards, rather than corporate, commercial, and medium segments. We will also reduce our dependency on earnings from treasury bills or bonds (last year, 19% of our total income, roughly Tk 4,000 crore, came from investment in government securities), and aim to generate more income from core banking business, such as interest income, fee and commission income, etc. Our goal is for our earnings from core banking business to exceed 81%.

A major investment will take place in the digital space in 2025. We have already started to launch across the organisation our new core institutional philosophy, which is: happy employees generate happy customers, which generate happy shareholders. This philosophy works well if there is a suitable business and operational model for it. We are currently implementing that model at City Bank.

TDS: What are the most critical areas for reform in the banking sector, and how should they be addressed to ensure long-term stability and development?

MA: The banking sector is at a crossroads. To secure a stable and inclusive future, reforms are essential. For me, the most critical areas are: 1) restoring public confidence; 2) inclusive growth, meaning financial inclusion isn't just a buzzword—it's a responsibility; 3) adapting to technology, which includes ensuring data privacy and cybersecurity; 4) sustainability in action, meaning that banking must look beyond profits; and 5) governance, which requires a cultural shift in the sector right now.

Lastly, I would say that reforms must be collaborative. Together—regulators, banks, and customers—we can create a banking sector that not only grows but uplifts society as a whole.