In a significant step towards realising the government's vision of a smart economy, Sonali Bank, the country’s largest state-owned bank, has adopted cutting-edge technologies across both conventional and digital platforms.
This move underscores the bank's commitment to offering top-tier services and embracing the modern banking era.
"Sonali wants to be a smart bank to support government goals of a smart economy. Sonali e-Wallet is our driving tool for transformation. Besides, we maintain the highest quality in service as a promise to commoners," Md Afzal Karim, managing director of Sonali Bank, explained during a recent interview at the bank's headquarters in the city.
Since Karim assumed office in the last week of August 2022, Sonali Bank has demonstrated positive trends in all performance indicators.
Karim's prior excellence as managing director of Bangladesh House Building Finance Corporation (BHBFC) is now reflected in his leadership at Sonali Bank.
One of the significant successes achieved is the reduction of non-performing loans (NPL) within the bank. "Sonali Bank has cut its NPL rate to below 14 percent, which was 18 percent a year back,"
Karim stated. This marks a substantial improvement in one of the major challenges in the banking sector.
Karim also emphasised the critical factor of net interest margin (NIM), which had been negative for many years. "For the first time, we made the NIM positive in the history of Sonali Bank. We are not only overcoming the negative NIM, but also holding a surpass of Tk 2.33 billion more than the margin," he added.
In recognition of his honesty and efficiency, Karim was the sole awardee of the government's integrity award among all managing directors of banks and financial institutions for the 2021-2022 financial year.
Under Karim's prudent leadership, Sonali Bank reduced its capital shortfall to Tk 44 billion, down from Tk 68 billion a year earlier. This signifies a reduction in capital shortfall by over Tk 20 billion within a single year.
Aligning with the digital strategy of the government, Sonali Bank has been quick to adopt the latest technologies.
Karim, a graduate of Khulna University of Engineering and Technology, highlighted the recent introduction of QR (quick read) code as an alternative to traditional paper cheques for transactions.
"Any customers can cash out from any branches of Sonali Bank through scanning a code from their phone. We also tag the BanglaQR code in our service for easing the payment option for customers," he said.
Furthermore, the state-run lender has introduced electronic registration of customers to enable expatriates to open and maintain Sonali Bank accounts while abroad.
Managing Director Afzal Karim also highlighted the significant advancements aimed at facilitating banking for expatriates.
“Expatriates have a long-time demand for facilitation of online account maintenance from abroad. From now, any account holders can operate Sonali e-Wallet app from anywhere. Through the app on Android and iOS platforms, the users can pay bills and transact with mobile banking,” added Karim.
In his vision to develop a smart banking platform, Karim said Sonali Bank is following the guidelines of Bangladesh Bank on digital banking initiatives. Among state-run lenders, Sonali Bank has introduced the first-ever call centre (16639) to share information about services.
“In terms of service delivery, Sonali Bank maintains zero-tolerance mode. Among state-owned lenders, Sonali Bank has introduced the first ever call centre where anyone can learn about the service of the bank,” he said.
Aligning with the government's vision of pro-people banking and smart services for the future, Sonali Bank has taken all-out measures. Notably, Sonali Bank has recorded the highest operating profit this year in its history. In the first half of this year, the bank earned an operating profit of Tk 17 billion, which is 80 percent higher year on year.
“We will keep the growth momentum in the days to come,” said the seasoned banker, sharing his optimism about the institution.
Sonali Bank offers 37 services free of cost under the social safety net programme of the government, benefiting marginalised people. In agricultural loans, Sonali Bank has achieved a cent percent target in each financial year.
Afzal Karim also mentioned that Sonali Bank would focus on sub-branches instead of agent banking for expansion for inclusive banking with full-fledged services.
“We hope to open more than 100 sub-branches within this year. Sub-branches help us to offer full-fledged banking service at the doorsteps of people. It is very cost-effective. We have adopted Shariah-based banking at 58 branches through the Islamic window,” he said.
Sonali Bank has enrolled with the government's universal pension scheme as payment gateway partners.
“Prime Minister Sheikh Hasina has inaugurated the universal pension service. Sonali Bank has been involved with the services. Through registering at the upension website, the applicant will get a unique identity number. The users of Sonali Bank account holders can tag their account with the universal pension ID,” Karim stated.
Under the leadership of Afzal Karim, Sonali Bank has improved its performance, with the advance deposit ratio topping 61 percent in very recent times.
“We increase our performing loan which creates an impact on different performance indicators of the bank. We will keep the progress in the future,” he said.
Karim's extensive experience spans a financial career that started with BHBFC as a senior principal officer in 1995, and he has served Bangladesh Krishi Bank and Sonali Bank over the last three decades.
These innovations and successes reflect Sonali Bank's proactive approach to fulfilling the government's vision for a smart economy, making banking accessible, convenient, and beneficial for all.
Source: daily sun
BDST: 0941 HRS, AUG 20, 2023
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