Check clients’ backgrounds thoroughly before lending

Bashundhara Group Chairman Ahmed Akbar Sobhan on Wednesday said the bank authorities need to conduct a thorough scrutiny of the backgrounds of loan seekers before granting them any credit.

A careful screening of loan applications and documents submitted therewith will keep the bad loan culture at bay, said the business tycoon.

Ahmed Akbar Sobhan came up with his observations while inaugurating a women’s branch of South Bangla Agriculture and Commerce (SBAC) Bank in the city’s Bashundhara Residential Area on Wednesday.
The chairman of the country’s largest business conglomerate said the liability of classified loans puts pressure on good customers, and ultimately dents businesses as a whole.

“If it is possible to prevent classified loans or bad loans from the banking sector, businessmen will reap the benefit, and ultimately the country will keep moving forward.”

A couple of years ago, the bank loan interest rate was hovering around 15 to 16 percent, which came down to 9 to 11 percent, he said, adding that if bad loan comes to an end, bank loan rate will remain in single digit.

About the newly opened women’s branch of SBAC, the business tycoon said it a great delight to see the opening of such a bank branch, as this kind of effort would help create new entrepreneurs among women.

“Half of our total population is women. I hope this fourth generation bank will play a pivotal role in generating new women entrepreneurs in the country.”

Narrating the women’s progress in all strata of life, Sobhan said women have showed their potential in every sector that is ultimately helping the country become economically more vibrant.
Bangladesh has made remarkable progress in all indices of economy, and the banking sector is contributing the most towards the growth of the country’s economy, said the seasoned businessman.

In his address, SBAC Chairman SM Amzad Hossain said banking activities are being conducted considering the welfare of the customers which is the motto of establishing the bank.

He also urged the customers and business people to bank with SBAC.

Speaking on the occasion, SBAC Managing Director Md Golam Faruque described the bank as one of the best ones among the fourth generation banks in terms of banking services.

In a bid to create new women entrepreneurs and their empowerment, SBAC established this dedicated women’s branch, he mentioned.

Kaler Kantho Editor Imdadul Haq Milon said the country’s banking sector is going through an unstable situation over the past couple of years.

“We hope that SBAC will not have to face this kind of situation,” he said.

South Bangla Agriculture and Commerce Bank Limited started its operation in 2013 and have 74 branches across the country.

SBAC Chairman SM Amzad Hossain, Bangladesh Pratidin Editor Naeem Nizam, additional Managing Director of the bank Mostafa Jalal Uddin Ahmed and Deputy Managing director Tariqul Islam Chowdhury were, among others, present on the occasion.