Janata Bank, the second largest financial institution of the country, is holding the first position among the state-owned banks in terms of making profit, maintaining low rate of classified loan and in other financial indexes.According to sources in the bank, its total asset stood at Tk 80,587 crore (805.87 billion), loan and advance at Tk 45,958 crore and deposit at Tk 64,944 crore at the end of the year closing on Dec 31, 2017.
Having A+ credit rating, its capital-to-risk weighted asset ratio (CRAR) was 10.02 percent and classified loan rate 12.74 percent at the end of the year.
Janata Bank registered an operating profit of Tk 1,171 crore in 2017, which was 112 percent higher than the target and Tk 167 crore greater than the previous year’s profit of Tk 1,004 crore. Net interest margin was Tk 458 crore positive that no other state-owned bank has earned yet.
According to the sources, Janata Bank has no deficit in capital and provision. Though the government is infusing capital into state-owned banks every year, Janata Bank did not have to take capital support from the government after 2013. The bank has taken a set of initiatives to take capital adequacy rate to 12.50 percent by 2019.
The bank has been giving priority to small and medium enterprise (SME) sector, especially entities owned by women, in providing loan. It disbursed Tk 11,226 crore, 24.43 percent of the bank’s total loan portfolio, in SME sector.
The classified loan of the bank stood at Tk 5853 crore or 12.74 percent of the total lending — the lowest among the state-owned banks — at the end of 2017. In 2016, it was Tk 5,936 crore or 14.73 percent. In the last year, the bank realised Tk 492 crore against the classified loan and Tk 110 crore against the depreciated loan.The total loan and advance of the bank was Tk 45,958 crore at the end of 2017, Tk 5654 crore higher than the previous year’s Tk 40,304 crore. The deposit stood at Tk 64,944 crore in 2017 which was Tk 64,182 crore in the previous year.
The bank has set a target to bring down the number of branches with no classified loan to 200 by 2018 and the number has already decreased to 134.
As part of digitisation, Janata Bank has brought its 908 local and four overseas branches under online core banking system — Temenos T24 Software, the sources said.
It has a plan to launch customer to customer fund transfer services by introducing real time gross settlement (RTGS) system by 2018 and has already installed RTGS system in 100 branches. The state-owned bank also planned to use banking technologies like blockchain, artificial intelligence and internet of things (IoT) and introduce online agriculture loan processing system.
In line with the government’s 2021 vision, Janata Bank has been signing annual performance agreement (APA) with finance ministry every year since 2015 to attain some business targets. The bank attains hundred percent successes in every index as per the APA.
It has also been signing memorandum of understanding (MoU) with Bangladesh Bank since 2003 to set it overall banking activities and monitoring system.
The bank is contributing to the government exchequer every year. Under the safety net programme, Janata Bank takes part in providing old age allowance, widow allowance, allowance for the people with disabilities, weekly wage for the ultra poor, wage for city corporations’ cleaning workers and many other programmes.
It pays around Tk 300 crore a year on average in corporate tax and Tk 800 crore as tax at source, VAT and other taxes to the national exchequer.
For its significant contribution to the innovative banking sector, Janata Bank got ‘Best Innovative Award in Citizen Service’ from the finance ministry, ‘School Banking Award’ in 2017, ‘Tax Card Award’ for the year 2015-16, ‘Remittance Award’ from the Bangladesh Bank, ‘ICMAB Best Corporate Award’, ‘ICAB Best Annual Report Award’, ad ‘SAFA Best Presented Annual Report’ award.
The banking activities are running under the policy prepared by its board of directors. Alongside the board of directors’ monitoring of the bank’s overall activities, audit committee and risk management committee are also regularly monitoring its affairs.
Board of directors at a glance
Luna Shamsuddoha is the chairman of Janata Bank. She was earlier a member of the 10-member board directors and took over as its chairman on February 28, 2018 to be the first woman head of any state- owned bank in the country.
A successful entrepreneur of local software industry, she was the founding president of Bangladesh Women in Technology (BWIT) and one of the pioneers in information technology sector.
She recently was elected as the director of Bangladesh Association of Software and Information Services (BASIS) and has expertise in information technology and modern banking.
The other members of the board are Manik Chandra Dey, Khondker Sabera Islam, Md Mofazzal Husain, Masih Malik Chowdhury, AK Fazlul Ahad, Selima Ahmad, Mohammad Abul Kashem, Md Abdul Haque and Md Abdus Salam Azad.
Manik Chandra Dey is the additional secretary at Bank and Financial Institutions Division of the finance ministry. He has been playing a vital role in the bank’s board.
Khondker Sabera Islam is an experienced banker who retired in 2007 as deputy managing director after she accomplished her jobs with reputation in different important posts in the banking sector. She is also the chairman of the bank’s risk management committee.
Md Mofazzal Husain retired in 2012 from Rajshahi Krishi Unnayan Bank where he was the managing director. As recognition of his expertise and honesty, he was appointed as director of the bank in 2016.
Masih Malik Chowdhury is a reputed chartered accountant. He is also the chairman of the bank’s audit committee. He has vast experience in the field of accounting, economics and banking.
AK Fazlul Ahad started his career an administration cadre member in 1977 and took retirement as additional secretary. After his retirement, he was appointed as a director of the bank. The former bureaucrat has been working relentlessly to establish good governance in the bank.
Selima Ahmad is a female entrepreneur and vice-chairman of business conglomerate, Nitol Niloy Group. She was also a director of Agrani Bank and several other financial institutions.
Mohammad Abul Kashem was appointed as director of the bank after his retirement from government service as additional secretary.
Md Abdul Haque was an executive director of Bangladesh Bank.
Md Abdus Salam Azad is the incumbent chief executive officer (CEO) and managing director of the bank. He is a freedom fighter. In over 26 years of his banking career, he worked in different capacities of the bank.