"I want to give a message to our clients. We are a bank continuously improving products and services. We are months away from introducing a call centre to enable customers to make all kinds of enquiries and we are also looking at the internet-based banking," Fletcher said.

He said Standard Chartered Bank is going to launch Islamic banking in Bangladesh this year with an aim to offer greater customer choice.

"We have already got approval for Islamic banking from the Bangladesh Bank," Fletcher said. "A global Shariah Board will be set up soon. It would be helpful for us to offer a wider choice of products to our customers."

But this new venture needs a lot of careful handling, according to the chief executive officer.

"Islamic banking will have to be properly managed to get the best result. You can get a lot of Islamic liabilities but not a wide range of matching products," he pointed out during an interview with The Daily Star. "You can't let normal deposit be invested in Islamic assets. There has to be a proper match."

Dwelling on the banking reforms, he praised the role of Bangladesh Bank (BB) and said: "I think the sort of reforms they (BB) are looking into -- management and internal control -- are important. But more steps are needed to open up the market."

"We need to have a much more organised money market that would allow us to offer more products to businesses for their efficiency," Fletcher said. "We need a more flexible and dynamic inter-bank market from the point of price and availability of funds. We need to have a proper situation for a common price mechanism."

He said a strong money market would lead to lesser reliance on the liability market and help reduce interest rate. "This process has already started," he added.

"We need further deregulation so that we can develop new products and the foreign exchange market. For example, we still do not have hedging products like futures. These would give a certainty to funding rate and exchange rate so that the entrepreneurs can plan their finances prudently. However, this needs a strong regulatory role."

But Fletcher expressed his satisfaction with whatever his bank could do in Bangladesh. "Clearly there are some restrictions and frustrations about what you can get done. But there are more areas of satisfaction than frustration here," he felt.

The bank's chief executive holds a favourable view of the economy. Pointing to a continued 5.5 percent GDP growth he said the macroeconomy is doing well. The current strong foreign exchange reserves, remittance, agricultural growth and low inflation rate are also good signs.

"However, there are a few areas of concern such as what is going to happen after the change in multi-fibre agreement status. It can dampen growth. At the same time, if oil prices remain high, that also is going to hurt the economy," he added.

"In the microeconomic level, we are seeing more investment and I think this could be even more if some issues like law and order were improved to promote an investment climate. I feel that more can be done in the micro level to match the good macro environment."

He said manufacturing is doing well although there is a large need for diversification since the export is dependent on the textiles sector. "Such dependence is not healthy."

The Standard Chartered CEO said there are also untapped areas where attention has to be focussed. "In my view, there is a huge investment opportunity in infrastructure, transport and port which constitute the supply chain industry.”

"One thing that hinders business is the lack of an easy supply chain and so there should be an integrated policy to bind the manufacturing and supply system for a sustainable economic development," Fletcher continued.

Explaining the contributions of the foreign banks to the economy, he said these banks are handling a large amount of Bangladeshi trade business and at the same time, indirectly giving support to local banks in terms of their trade.

"It is also not true that the foreign banks do not invest in manufacturing. Standard Chartered Bank has seen a significant growth in term lending," he asserted. "The foreign banks are also playing a leading role in imparting best practices. And we are trying to do a lot for community development."

For example, he said Standard Chartered Bank has programmes in health, youth and education in Bangladesh. It is taking a committal role in treating eye patients through supporting Islamia Eye Hospital in Dhaka.

"We take a sustainable approach there," he said. "We finance the operation theatre in the children's ward to support 12,000 eye operations a year. We also offer free operations to the poorest. Last year, our staff paid their one day's salary to support the hospital. Globally it aims to give sight to one million people over the next three years."

The Standard Chartered Bank supports 10 beds in a ward at Shishu Hospital in Dhaka. The bank also extends help to the Young Learners' Centre of the British Council. "So, we are supporting Bangladesh economically and socially," said the CEO.

Dwelling on the country's banking sector, he said the market has developed tremendously both in terms in efficiency and products. "Five years ago, our competitors were the foreign banks. Today, the private banks are our equal competitors."

Standard Chartered has 18 offices in Dhaka, Sylhet, Chittagong, Bogra, Khulna, Narayanganj and Savar with 600 staff. "We need a few more branches to extend our outreach," Fletcher felt.

He was full of praise for the local banking expertise. "The staff I have here are as good as anywhere in the world. We post our staff in foreign branches so that they can gather more experience. We could send more people outside if Bangladesh had a relaxed rule for having expatriates."

"Currently, we cannot have more than two expatriates. But when we send people outside, we sometimes need to fill in that gap and for that we need to bring replacement from foreign branches. That is not always possible because of the restriction," he continued.