Dr Arifur Rahman, new chairman of Premier Bank, is committed to injecting foreign capital into Bangladesh’s banking sector, leveraging his extensive ties with Middle Eastern investors, as he has been a respected doctor there for the past 50 years.
However, the investors want transparency and the restoration of trust before that, he said in an interview with TIMES of Bangladesh.
Click here to watch the interview.
Having taken the helm on 19 August, Dr Rahman brings with him over 50 years of experience, including a pioneering role in Bangladesh’s manpower export industry, and is “determined to lead Premier Bank into a new era of transparency, efficiency, and innovation.”
Dr Rahman stressed that foreign investors are waiting for key reforms to restore trust before committing funds. While acknowledging challenges faced by the banking sector during the previous administration, he said that Premier Bank had managed to avoid much of the damage.
“Although we had our issues, we were not at the centre of major scandals. We faced fewer challenges compared to others,” Dr Rahman said, revealing that Premier Bank’s Non-Performing Loans (NPLs) currently stand at 23%.
Reflecting on the sector’s broader issues, Dr Rahman blamed political corruption for the vast losses suffered by many banks. “Political leaders facilitated the plundering of the economy, which had severe consequences for the sector,” he said.
He criticised the process through which new banks were created in the past decade, alleging that bribery became a pattern.
He pointed to the gigantic losses across the sector due to mismanagement and fraud, though he reassured stakeholders that Premier Bank was not part of this widespread issue.
Turning to the bank’s current position, Dr Rahman expressed confidence that Premier Bank could overcome the 23% NPL rate.
The newly appointed board, which includes five experienced independent directors, is bringing much-needed guidance.
“With the right leadership and a stronger regulatory environment, the sector is improving,” he said, stressing that accountability and transparency would be key in moving forward.
Dr Rahman’s focus is now on diversifying Premier Bank’s offerings. He is introducing a “3C approach”—Consumer, Corporate, and Conservative banking—aimed at providing more responsible banking options.
“We are shifting focus to customer-first services, while maintaining conservative banking practices that prioritise long-term stability over short-term profits,” he explained.
He added that while the bank had not paid dividends recently, a policy to ensure dividends would be implemented in the future.
One of Dr Rahman’s primary goals is to offer microloans, expand school banking services, and encourage deposits in madrassas, both Alia and Qawmi institutions.
“These initiatives will help us tap into untapped markets and reduce the NPL rate significantly,” he said, also mentioning the bank’s renewed efforts to recover loans from defaulters.
Additionally, Dr Rahman said that the bank’s tagline has been “service First”. It is embracing another concept “compliance First, Profit Later,” reflecting the bank’s commitment to internal transparency and regulatory compliance.
“We are prioritising compliance and transparency above everything else,” he said, reinforcing his message of a new direction for Premier Bank.
Dr Rahman also pointed out that attracting foreign capital is crucial for the future growth of Bangladesh.
“The country needs foreign investment to fuel its next wave of growth, and I have many investor friends abroad who are eager to contribute,” he shared.
Concluding his remarks, Dr Rahman reassured customers and shareholders that their funds are secure.
“We have implemented multiple layers of security against digital fraud, and should anything go wrong, we will compensate our clients immediately,” he promised.
“As shareholders, we are committed to recovering any past losses and ensuring better returns moving forward.”
