Mohammad Ali, 
Managing Director & CEO, Pubali Bank

The Daily Star (TDS): Your bank has recently achieved an annual operating profit surpassing Tk 2,000 crore. What does this milestone signify for your organization?

Mohammad Ali (MA): Our significant contribution lies in expanding our marketing efforts across various sectors and building a dedicated marketing team, particularly for our export-oriented customers. As a result, we have successfully onboarded numerous exporters over the past two to three years. This has led to a remarkable 61% year-on-year growth in exports, while imports have also increased by 50%, allowing us to maintain a balanced trade portfolio. Another key development has been the lifting of the 6% and 9% interest rate restrictions, which has allowed us to leverage our goodwill effectively.

However, the most profound impact has been on customer perception. We have consistently worked to enhance our brand image by highlighting our achievements, such as earning the prestigious Triple-A Rating, being recognized as the Best Financial Institution, and obtaining ISO 27001 certification. At a time when the overall banking industry's reputation is facing challenges, we have positioned ourselves differently, reinforcing customer confidence.

As a result, our deposits have been growing steadily, increasing by 22-23% year-on-year, propelling us into the Tk 2,000 crore club.

TDS: What key factors contributed to reaching this milestone despite the current challenges in the banking sector?

MA: Our non-performing loan (NPL) ratio stands at 2.66%, the lowest in the country. One of our key strengths has been our cautious approach to lending. Rather than immediately approving business proposals, we conduct thorough due diligence.

To uphold strong corporate governance, we have implemented a tiered evaluation system that scrutinizes loan proposals at multiple levels, from branch offices to the head office. This structured approach helps us maintain loan quality and mitigate risks effectively.

In my view, the banking industry's primary focus should be on asset quality. While creating assets is relatively easy, maintaining their quality is the real challenge. On the other hand, the liability side of banking is built on trust—the more confidence customers have in us, the greater our deposit inflow.

TDS: Looking ahead, what strategies do you have in place to ensure continued growth and adaptability?

MA: Our future planning is technology-focused, with advancements in AI, robotics, and data mining reshaping the banking sector. We aim to integrate these technologies into our operations, enhancing all product offerings, including corporate banking, international trade, retail banking, and leasing, so customers can access services from their premises. Decision-making will be AI-driven for instant responses. We've already developed two AI-enabled products for flat purchases and credit card applications, marking the start of our broader digital transformation roadmap, which will progressively automate and optimize banking services, providing real-time responses to financial proposals.

TDS: What are the most critical areas for reform in the banking sector, and how should they be addressed to ensure long-term stability and development?

MA: The banking sector is in dire need of reform, and it starts with the corporate governance framework. While corporate governance measures may be in place, they are ineffective if the individuals in management roles lack quality and expertise. To truly drive reform, we must prioritize the recruitment and retention of top-tier talent.

To attract and retain high-quality professionals, the banking industry needs to offer competitive compensation packages. This includes not only higher salaries but also enhanced benefits, enabling us to bring in the best talent from both within the country and abroad.