No bad loan has been created during the years 2020, 2021 and 2022 and even any incidences of fraud, forgery or scam happened with Janata Bank in the recent years, said Janata Bank Managing Director (MD) and CEO, Abdus Salam Azad in an exclusive interview with daily Bangladesh Post.
"During my tenure in the last five and a half years no loan of Janata Bank has been classified, rather during this period the exposure of the country’s larger business conglomerates including Beximco, Orion Group, etc has increased significantly with Janata Bank," said the MD, now nearing completion of his tenure.
He believes that Janata Bank has every potential to be the best financial institute in Asia Pacific region if only the bank can bring down its ratio of non-performing loan (NPL) significantly. "I took charge as the Managing Director and CEO of Janata Bank in 2017. Honourable Prime Minister Sheikh Hasina, worthy daughter of Bangabandhu Sheikh Mujibur Rahman, entrusted me with the responsibility and I have tried my best to honour her trust," Salam added.
Replying to a query, he said, “There were some classified loans in the past which turned into bad debt during 2018. As a result the ratio of our classified loan jumped to more than double digit. At the same time an adverse situation was prevailing. Rate of interest was also brought down to single digit at 9 percent and in June 2018 there was a liquidity constraint as well, so all these together created a challenge.”
“I took part in the Liberation War, being inspired by the historic 7th March speech of Bangabandhu Sheikh Mujibur Rahman. I always held the same ideology in my professional career and practices and gave my best possible efforts to take the bank to a better position.
“Janata Bank had always been maintaining a good reputation as a good bank but some bad loans affected the institution from 2010 to December 2017. As it is public money, I thought that I have to realize them back at any cost.
"I tried my best despite facing many threats, setbacks, obstacles. Speculations were there that the Janata Bank would go into liquidation or borrow the fate of Basic Bank or the operating profit may go negative but finally nothing like that happened. Rather, operating profit has increased, growth has increased as well. This year we have earned operating profit of Tk 1400 crore, which I started with Tk 700 crore. Deposit is now Tk 104,000 crore, which I started with Tk 65,000 crore," said the MD.
“We had a total of Tk. 54,000 crore loans and advance which has now raised at Tk. 85,000 crore. Asset base now stands at Tk 128,000 crore from the previous amount of Tk 89,000 crore, capital is maintained now as per the BASEL-III guideline and we were able to hold it perfectly in the year 2022 and hope to keep the same in the current year. Our operating profit is now Tk. 1402 crore.Interview By Ahamma
“Net profit of Janata Bank was Tk. 24 crore in 2019 which now stands at Tk 310 crore. Earning Per Share (EPS) which was 1.06 has now stands at 13.4 in 2023.
“Rate of classification is now about 17 percent. We dealt with import of about 5 billion US$ in last year and handled export of 2.2 billion US$ while we drew remittance of about half a billion US$. Classified loans and advance has come down at Tk 14,387 crore which was more than Tk 18,000 crore and we were in the second position among all the public banks in December 2022.
“Under the capable leadership of Bangladesh Bank, amid the dollar crisis that was created due to the Russia-Ukraine we were able perform accordingly, none of our payments failed even amid the crisis. It’s remarkable that opening LC of any government organizations like BPC, BCIC or any others Janata Bank has never failed to make the payments even amid the recent crisis of US dollar.
“No bad loan has been created during the years 2020, 2021 and 2022, even incidences like fraud, forgery, scam etc, nothing happened with Janata Bank in the recent years. This is to be specially mentioned that during my tenure in the last five and a half years no loan of Janata Bank has been classified, rather during this period the exposure of the country’s larger business conglomerates including Beximco, Orion Group, etc. has increased significantly with Janata Bank. Mentionable, Orion Power handles all their import and export activities with Janata Bank. They generate 507 MW of power with their plants nearby Dhaka and they supply power to the national grid. This is also a contribution of Janata Bank.
“We have been able to hold the qualitative standards of loan, also have been able to establish control upon the old and defaulted loans. For Crescent, we have been able to recover about Tk 700 crore and they have started exporting. We have given them opportunity of exemption after covering cost of fund, and we hope that they will be able to come out by taking the opportunity we gave them. As a result the burden of bad asset of Janata Bank will be reduced.
“It will be easier to bring down classified loan below 10 percent which is the instruction of the central bank, also as per the condition of the IMF. And we are working with this aim in view.
“Another thing we have four branches at Abu Dhabi, founded by the father of the nation, Bangabandhu Sheikh Mujib in 1974, there are two exchange houses in Rome and Milan, so our deposit has increased significantly and now it is about Tk 4500 crore in UAE, which is a big amount.
“You know Janata Bank is only Bangladeshi bank who runs full banking operations in abroad and we have further strengthened that, full
CBS has been implemented there, now the works of using mobile apps is under process, already 80 percent done.
“We have introduced ‘e-janata’ app in abroad as well as at home. Currently we have 40,000 members for e-janata. We are going to open agency operation in different places of Italy very soon.
“Following the vision of our Prime Minister’s digital Bangladesh and now the Smart Bangladesh, we have so far been able to implement 77 percent full automation system in our bank, now we are running R-21 version, soon we are going to install hardware for this.
“Well, I must pay my heartfelt respect and gratitude to the architect of the nation, Father of the Nation Bangabandhu Sheikh Mujib because after setting up branches of Janata bank in Abu Dhabi, Sharjah, Dubai where the National Flag of Bangladesh is always hoisted in front of the branches. There is a CEO office of Janata Bank over there. There will be an own building of Janata Bank in Abu Dhabi in near future.
“This year Janata Bank has earned Tk. 60 crore profit in Abu Dhabi where there is Tk. 4,500 crore deposit. Remittance of Janata Bank was Tk 1000 crore but this year we have set a target of Tk. 2000 crore of remittance.
“We have recruited necessary manpower in Abu Dhabi as per the requirements of central bank while fulltime monitoring measures is also going on.
“You know Janata Bank is a brand, a name and a fame, early in 2018 people considered Janata bank in a different way but not today, because a sense of trust and faith has already been created. All the big conglomerates are coming back to Janata from the big banks, which was not in the past. It’s my satisfaction that this situation has been created during my tenure.
“Being imbued with the spirit of independence, with the ideology of Bangabandhu the state-run Janata Bank is stepping ahead. We have established a ‘Mujib Corner’ at Janata Bhaban, you can see a piece of Bangladesh at the very entrance of Janata Bank which will be found nowhere else. There are a mural of Bangabandhu and portraits of seven great martyred heroes of the Liberation War. This is exceptional in Janata Bank.
“I one again pay my tribute and thanks to the Architect of Independence of Bangladesh, Bangabandhu Sheikh Mujibur Rahman because this liberation was achieved with his supreme sacrifice, I got opportunity to take part in the War of Liberation. I got opportunity to become MD of a bank because of this. You can see lot of prominent and veteran persons became the MD of this bank, so the honourable Prime Minister has given me the honour by making me Managing Director for two consecutive terms, so pray for the long life and sound health of her, because the country is marching forward with her able leadership.
“All the courageous steps or mega projects taken by the Prime Minister, like the Padma Bridge, Metro Rail, Karnaphuli Tunnel etc will contribute tremendously to the country’s economic growth and overall development. So we pray from the core of our heart for long life and sound health of our Prime Minister.
“Following the Covid-19 situation, Russia-Ukrain war and other contemporary world crises, the whole world is facing tremendous economic recession. But we in Bangladesh are living comparatively in a good position, which has been possible only because of farsighted leadership of Prime Minister Sheikh Hasina.
“Tackling the sudden influx of more than 10 lakhs of displaced Rohingya nationals to Bangladesh and giving the accommodation, food, shelter etc is a very big issue which has been acclaimed by the world community. So Bangladesh is now known across the world by its own existence, identity and capacity. So this is the cause of our pride.
“Firm determination of Prime Minister Sheikh Hasina to take the country forward through Vision - 2021, Vision - 2041, Digital Bangladesh, Smart Bangladesh, is inspiring and exemplary. If we stay alive we will see a developed Bangladesh in 2041.
“So now as the outgoing Managing Director and CEO of Janata Bank PLC, I must say my success is that I have tried my best to discharge all the responsibilities given by honourable Prime Minister to me. Well, my failure is also there, I could feel much better if it could be possible to bring down rate of classified loan to the single digit. In a bank with 921 branches and more than one crore customers, there must be some problems and failures. All together, we have to move forward,” said Abdus Salam Azad.