‘SIBL is prioritising small loans over big ones’

As many as 10 Shariah-based banks are currently operating in the country. Social Islami Bank Limited (SIBL) is one of them, which started its journey on 22 November 1995. Initially established as Social Investment Bank Limited, the bank later ventured into operating as fully Islamic banking. Recently, the bank celebrated its 28th anniversary. Zafar Alam, Managing Director and Chief Executive Officer of SIBL, shared his views and insights about the overall activities of the bank in an exclusive interview with The Daily Messenger's Saifullah Aman recently. Following are excerpts from the interview for the readers:

The Daily Messenger: How is SIBL doing?

Zafar Alam: After the terrible impact of the COVID-19 pandemic, when the business and trade of the whole world were under extreme threat, I took responsibility as the head of the bank. With vast experience in Islamic banking, I assumed the role of the Managing Director of SIBL on 21 December 2021. Since then, I have been working to move the bank forward with time. Previously, I worked as the Deputy Managing Director in this bank in 2017. The best thing about it was that I knew almost all the officers and customers. After being appointed as the Managing Director, I was accompanied by an excellent team here, who are serving the customers of the bank in all conditions, at any time. The main credit behind the success of the bank goes to my colleagues.

Messenger: What is the status of default loans at SIBL?

Zafar Alam: After the COVID-19 outbreak, the world economy faced challenging times. Then came Russia's war in Ukraine, resulting in another blow to our economy. Due to these events, some temporary crises have been created in the country’s reserves. Besides, the biggest problem in the banking sector of our country is default loans. Our bank has performed very well in this regard. In 2022, our bank's non-performing loans were 5 percent, which decreased by 0.50 percent to 4.5 percent in the previous year. While the default loans of the whole country are increasing, our bank's have decreased. This is a unique milestone. We hope to reduce this rate to 3 percent this year.

Messenger: How is SIBL doing in remittance collection?

Zafar Alam: There is no substitute for foreign exchange to keep the country's economy in order. For this purpose, we have taken special steps to collect remittances. The results are evident. In 2021, we were ranked 26th in terms of remittance collection. By 2022, we moved up to the 18th position. By 2023, we have reached the second position in expatriate income collection due to our special measures. The commitment to our country is the primary reason behind this achievement.

Messenger: What initiatives have you taken to increase remittances?

Zafar Alam: We have taken several initiatives to increase expatriate income. One of these is gaining the trust of customers. We have conducted seminars in major expatriate countries and cities to gain customer confidence. We ran a special campaign and introduced 'I Banking' on behalf of the bank, through which customers can easily open bank accounts from 35 countries worldwide. Besides, we are providing transportation facilities from Hazrat Shahjalal International Airport in Dhaka to attract expatriate customers. If any of our customers come to the country, no matter what time it is at night, we provide transport facilities to reach the customer at his address. We offer maximum discounts in medical facilities to expatriate customers and their families in the hospital of our bank. Due to these reasons, we have gained the trust of customers.

Messenger: What is the overall condition of the bank?

Zafar Alam: We have launched an app called SIBL Now. Through this, customers can perform various activities, from opening a bank account to withdrawing money and sending money at home. In addition, Social Islami Bank has 179 branches, 216 sub-branches, 338 agent banking outlets, and 200 ATM booths to bring people from all walks of life under banking services. Our bank services are also available online from within the country and outside the country.

We were the first to launch Cash Waqf in the country, through which clients can donate the profit earned from the Waqf money. Additionally, there are various services, including Hajj Account, Mohrana Account, and Zakat Account. We have introduced new education, marriage, and medical deposit schemes and investment services. A total of 6.5 lakh new accounts were opened in 2023. So far, we have acquired 35 lakh customers.

Messenger: What new product is the bank introducing?

Zafar Alam: Six regional offices of the bank have been established across the country. Besides, three new deposit schemes have been launched recently. These schemes are SIBL Prabasi Deposit Scheme, SIBL Retired Citizen Monthly Benefit Scheme, and Hawkers Deposit and Business Development Scheme.

SIBL is providing special services to customers under these schemes. For senior citizens, SIBL Hospital on Green Road in Dhaka offers various diagnostic facilities at up to a 40% discount and provides transportation and ambulance facilities from home within Dhaka city corporations.

Messenger: What initiatives do you have for marginal customers?

Zafar Alam: We are moving forward with new ideas to increase banking activities. We want to contribute to strengthening the rural economy. We aim to provide employment to more people by offering small investments to marginalised people and creating new entrepreneurs. We want to be more involved in human development. This is our main aim and objective.

In addition to industrial loans, more emphasis is being placed on investing in the cottage, micro, small, and medium (CMSME) sectors. The people of the village are being provided with low-interest loans for their employment. Instead of focusing on large loans, we are prioritizing small loans since ordinary and small customers are less likely to embezzle the bank's money.

Meanwhile, we have initiated a rooftop garden project for the women of the country who don't want to leave their homes. We have provided loans up to Tk 3 lakh without collateral.

Messenger: Thank you for your time.

Zafar Alam: Thank you, and best wishes to The Daily Messenger.