Shah Alam Sarwar

Trust Bank Ltd, one of the third generation private commercial banks of the country, plans to expand its reach by opening more rural branches, ATM booths and pay-points countrywide.

“We pursue a financial inclusion model in our business, and want to bring the unbanked population into the banking network through low-cost technology-based services,” said Shah Alam Sarwar, chief executive officer of the Bank.

Seventy branches of the Bank are now in operation and another 10 branches will be opened mostly in rural areas by 2012, Sarwar told The Daily Star in an interview at its head office in Dhaka recently.

"We are doing our core banking business with utmost professionalism and are now focusing on small and medium enterprises, renewable energy, rural development and remittance to broaden the financial inclusion," said the 53-year-old official.

The Bank's operating profit from core banking was Tk 1,563.18 million in 2011, up from Tk 1,361.80 million in 2010, according to the Banks' annual report for 2011.

The Bank disbursed SME loans worth Tk 2,716 million in 2011, marking a growth of 49.64 percent than the previous year, according to the report.

The Bank, which recently completed 12 years of its operations, started its mobile banking services under a pilot project in 2010, said Sarwar, who has over 30 years of banking experience.

Around 60 percent population of the country lacks an access to formal banking services due to inadequate number of rural branches, industry insiders said.

The Bank, sponsored by the Army Welfare Trust, listed on the country's bourses in Dhaka and Chittagong in 2007. It has already opened 1,000 mobile pay-points countrywide.

The official said its mobile banking operations are not meant for making profits. Trust Bank pursues a bank-led model to provide mobile banking services with the total supervision of the bank, said Sarwar who joined the bank in 2009.

The Bank will take full responsibility to ensure depositor's interest in mobile banking.

Sarwar, who started his career as a management trainee with ANZ Grindlays Bank in 1982, said his bank charges Tk 10 to remit money up to Tk 2,000 and beyond that Tk 5 for each Tk 1,000.

“We want to finance more in renewable energy and bio-gas projects to mitigate the nagging power shortage.” The Bank has so far disbursed over Tk 20 crore in bio-gas projects, he said.

Despite a serious liquidity crisis, Trust Bank remained unhurt in the volatile money market in late 2010, as it judiciously maintained the fund management, he said.

Currently, the Bank lends Tk 6.5 billion on an average in the call money market as per its prudent policy, he said.

The Bank's consolidated deposit was Tk 65,930 million in 2011, up from Tk 50,537 million in 2010, according to the annual report.

Sarwar said his Bank focuses on upgrading its technology to offer supreme customer services.

He said his bank upgraded its technology depending on the rise in the Bank's business volume along with different demands from customers.

“We now offer any branch banking services to our clients and are gradually improving our technological platform.”

The Bank introduced ATM services in 2005. In January 2007, it launched different online banking services, including any branch banking, ATM banking, phone banking, SMS banking and internet banking services.

The Bank's customers can now deposit or withdraw money from any of its branches nationwide without opening multiple accounts in multiple branches, he said.

On new private banks, he said: "It will not create an uneven competition in the banking sector that grows at 25 percent annually."

“There is no sacrosanct banking business model in the world,” said Sarwar, who got his MSS degree in economics from Dhaka University and an MBA degree from Victoria University, Australia.

“If businesses think they will be able to earn money through opening new banks, let them come to the field. The market force will determine the future of the sector."

Trust Bank traded at Tk 28 on the Dhaka bourse and Tk 27.70 on Chittagong Stock Exchange each share yesterday.

The Daily Star/Bangladesh/ 4th June 2012