DHAKA: Lutfar Rahman Badol, executive chairman of private sector IFIC Bank, recently has been elected chairman of Nepal-Bangladesh Bank.

He had also performed as the chairman of the board of directors of IFIC bank. He is also known as a sports organizer particularly as an organizer of cricket his image is very much bright.

This eminent business person recently talked to Banglanews regarding IFIC bank, new bank company law, capital market and Nepal- Bangladesh Bank.

His special interview on these subjects was taken by Senior Correspondent of Banglanews Sayeed Arman. The second installment is here today for the readers.

BANGLANEWS24.com: Recently you have got the responsibility of the chairman of Nepal -Bangladesh bank which is known in Nepal as Bangladesh bank and also first as a Bangladeshi.

LUTFAR RAHMAN BADOL: Yes, you are right. As citizen of Bangladesh I am the first man to be the chairman of a foreign bank. The banking system in Nepal is as almost same of ours. It has 26 branches and the deposit stands at 2 thousand crore Nepalese rupees. In last financial year it has made profit to the tune of 90 crore rupees. I hope the growth of the bank will rapidly increase under our leadership. Our investment in the bank was only 6 crore rupees. The value of that investment has now become 200 crore.

BANGLANEWS24.COM: Would you please elaborately tell about your planning to increase share in that bank?

LUTFAR RAHMAN BADOL: IFIC bank is jointly working with Nepal- Bangladesh bank from 1994. I have been elected chairman of the bank for the first time. IFIC purchased 25 percent share of the said bank. We have planned to increase the present 25 percent share to 51 percent. We have applied to Bangladesh Bank. We have got clearance of the central bank for investment. The prayer for investment In US dollar is also finalized. Fresh 125 crore Nepalese rupees will be invested. If it materialized the power of management will also come to our hand. Bangladeshi citizen will give chances of employment right from chief executive to other posts.

BANGLANEWS24.COM: Where is the main sector of investment of this bank?

LUTFAR RAHMAN BADOL: The bank invested mainly in the infrastructure sector particularly production of MS rod, cement, road construction and in other industries. Besides, as the tourism is very important in Nepal so we have decided to increase the investment there.

BANGLANEWS24.COM: As an entrepreneur what is your observation about the functioning of nine new banks in our country?

LUTFAR RAHMAN BADOL: The customers will get good services in the new banks. Because, the customers would have to be attracted through good services. However there is chance of unhealthy competition to attract the customers. This is very natural that the banks will engage in competition to increase deposit.

BANGLANEWS24.COM: Tell something about the growth of IFIC Bank.

LUTFAR RAHMAN BADOL: We started our journey as a leasing company. Next we started as first generation bank.  Our present board took the responsibility in 2006. After we took up the task the growth the bank made in last seven years did not happen in last 30 years. We opened branches abroad, we purchased properties for the head office and changes have been brought in management. IFIC wants to be a model in banking sector. Here the management is working independently.

BANGLANEWS24.COM: In which sector you give preference for financing?

LUTFAR RAHMAN BADOL: IFIC Bank patronizes readymade garments. As single sector readymade garments got the highest financing. Besides, we also invest in women entreprenuers, there is credit facilities for SME’s, ship building industry and cottage industries. There is broad policy regarding the credit. After the Rana plaza accident we, as the first bank provided loan for fire safety which is being taken currently by the other banks. The rate of interest in this sector is only six percent. We are providing the loan as a loss item.  The loan is being adjusted against the CSR.

BANGLANEWS24.COM: Would you please tell about corporate social responsibilities and your involvement?

LUTFAR RAHMAN BADOL: We participate in CSR enmass. We provide scholarships to students. There is a program of CSR in Dhaka University. Moreover various programs are taken on health, disaster, environment and literature every year.

BANGLANEWS24.COM: In the country the outstanding debt is increasing every year. How do you observe this situation as a director?

LUTFAR RAHMAN BADOL: Due to classified loan and introduction of provisioning policy the outstanding loan has increased. For this reason a portion of their profit has to be kept as provision. Though this would be a temporary problem ultimately it will bring positive results. However the state owned banks have different picture. I hope the policy will lead to enhancing the transparency and good governance in the banks.

BANGLANEWS24.COM: The dull picture of the share market is surely worrying matter and what impacts are being caused in the banks?

LUTFAR RAHMAN BADOL: Share market is a small place for investment of the banks. The bank’s money is still in that market they invested. So nothing can be said at the moment about profit or loss. Then the capital crisis in the share market shall have to be removed. Every day there is a business of Taka 50 thousand crore. Out of the investment Taka 15 thousand crore is stuck here as loan. Government is giving Taka 900 crore. But as there is no 15 thousand crore it is no yielding results up to the expectation. So arrangements should be made for this amount and its interest.

BDST: 0921 HRS, AUG 29, 2013
Edited by shahjahan/GCP