Best bank: Eastern Bank
In a difficult economic landscape, Eastern Bank has once again proven its mettle, delivering impressive growth and financial performance in 2023. The bank’s net profit surged by 19.6%, while its assets rose by 11.5%. This is particularly noteworthy considering the high base set in 2022. Return on equity improved to 16.3% from 15.5% in 2022.
The bank’s retail loan segment saw significant growth, driven by the success of its home loan and personal loan offerings. Through strategic partnerships with real estate developers, Eastern bank made inroads in the home loan market, reaching over 6,000 new clients. Similarly, the bank’s small and medium-sized enterprise business segment achieved impressive growth, with its loan portfolio expanding by 19% in 2023.
Eastern Bank’s payroll banking arm emerged as another standout performer in 2023, successfully onboarding 292 new payroll companies and establishing more than 33,000 payroll accounts. The bank’s focus on automation played a key role in enhancing customer satisfaction by streamlining processes and reducing turnaround times.
In line with its commitment to digital innovation, Eastern Bank implemented QR transactions using a fully in-house developed solution, enabling customers to initiate transactions seamlessly by scanning QR codes through the bank’s app. Additionally, the bank introduced Digi-Remit services in collaboration with its treasury department, facilitating efficient remittance collection.
Best investment bank: UCB Investment
UCB Investment, a wholly-owned subsidiary of United Commercial Bank in Bangladesh, is the country’s best investment bank for the second consecutive year. Founded by chief executive Tanzim Alamgir in October 2020, the firm has grown rapidly, securing a significant market presence. Despite its relatively short history, it has successfully navigated complex transactions and provided tailored solutions to its clients.
In 2023, UCB Investment executed a diverse range of transactions with a value of approximately $369 million, spanning private equity, rights issues, IPOs and syndicated loans. The firm recorded a remarkable 49% growth in net profit in 2023. It has revised its financial targets upward due to this strong performance.
One notable transaction was UCB Investment’s role as the sell-side adviser for Ispahani Group’s private equity investment in Tampaco Foils. This strategic partnership aims to combine Tampaco’s expertise in packaging with Ispahani’s market experience and financial resources to drive growth and innovation in Bangladesh’s packaging sector.
Another highlight was UCB Investment’s role as the placement agent for Pubali Bank’s Tk7 billion ($59.6 million) private placement of its third subordinated bond. Pubali Bank, the country’s largest private commercial bank in the non-Islamic space, initially appointed another arranger for the bond. However, when the original arranger faced challenges in closing the deal, the bank turned to UCB Investment to complete the arrangement process and raise the funds. UCB Investment successfully closed the bond, which stands as the largest conventional bank bond in 2023, demonstrating the firm’s ability to step in and deliver results in complex situations.
Best international bank: Standard Chartered
Standard Chartered’s positive financial performance in 2023 was driven by the launch of new products and several important deals, especially in sustainable finance.
The bank became the first bank in Bangladesh to launch an insurance tagged credit card in 2023. This gives customers a discount of up to 35% at health centres across Bangladesh.
The bank also expanded support for smallholder farmers and unprivileged groups through the agriculture and rural credit programme. It now has the largest agriculture loan portfolio among the international banks in Bangladesh. The number of beneficiaries totalled 57,837 in 2023 and disbursement rose by 11% from Tk3.8 billion ($32.3 million) in 2022 to Tk4.3 billion in 2023.
StanChart also arranged the country’s first green zero-coupon bond for Sajida Foundation.
Best digital bank: Mutual Trust Bank
In 2023 Mutual Trust Bank introduced several new products and upgrades to its digital offering, including lending initiatives, improvements to its digital know-your-customer procedures and fast account opening.
The bank introduced Torit Loan, a digital ‘nano’ loan – up to a maximum of Tk50,000 ($425) – that saw disbursements of Tk8.3 million through the platform in 2023. In addition, it launched M-Auto Lead loans in 2023, which automates sales leads for the retail auto loan team. The bank also upgraded its digital lending initiatives through a partnership with the fintech, Delivery Tiger. Merchants from Delivery Tiger can apply for a digital nano loan from their platform.
Mutual Trust Bank introduced Quick account opening that allows branch users to generate account numbers within hours. In 2023, 58,672 accounts were opened through Quick account.
Best bank for SMEs: City Bank
City Bank boosted its small and medium-sized enterprise client numbers and loan portfolio in 2023, and introduced initiatives designed to empower new and female entrepreneurs through lending schemes and partnerships with organizations that provide training to SMEs.
The bank’s loan portfolio for its small and microfinance business division reached Tk38.7 billion ($328 million) for 32,500 customers. Around 82% of the loans provided are to small enterprises located in rural and suburban areas, while 23% are to women entrepreneurs.
The bank introduced the remittance beneficiaries loan in 2023, which especially targets women in both rural and urban areas. The loan size ranges up to Tk3.2 million and these facilities are repayable in monthly instalments over 12 months to 36 months. Around 70% of the total remittance beneficiaries loans were made to first-time borrowers having no loan history.
The bank also partnered with the Skills for Employment Investment Program during 2023 to train 45 new entrepreneurs. It also partnered with the Joyeeta Foundation to assist 54 women entrepreneurs with Tk100 million loans to expand their cottage businesses.
Best bank for ESG: Prime Bank
Prime Bank’s green financing portfolio achieved robust growth in 2023, increasing by 132% year on year. The bank worked on several significant sustainable finance deals during the year. The most significant of these was the $26 million syndicated deal for Meghna Ceramic, which Prime Bank lead arranged.
The bank’s green finance as a percentage of its total term loan disbursement in 2023 was up to 19.95%, from 8.33% in 2022. Additionally, its total outstanding green lending reached Tk10.7 billion ($91 million) in 2023, up from Tk5.8 billion in 2022.
Prime Bank also developed a tool in 2023 to process environmental and social risk management, which provides a quantitative risk rating system. The tool helps the bank to assess a client’s environmental, social and governance performance, identify non-compliance, generate a rating and help in decision making and the monitoring of its environmental and social action plan.
Best bank for corporate responsibility: Eastern Bank
Eastern Bank ran several programmes that address education, poverty and women’s empowerment in 2023. The bank has a board-approved policy that 2% of the latest distributed profits should be allocated to corporate social responsibility (CSR) initiatives each year.
The bank provided Tk25 million ($213,000) of aid to underprivileged students at the Begum Fazilatunnesa Medical College and Hospital, along with Tk1 million to Proyash, a school for special needs children and Tk 2.7 million to the Bangladeshi prime minister’s Education Assistance Trust for underprivileged students.
The bank has focused on promoting female education and has supported Moshang Girls’ School and College at Ujirpur in Barishal district. This is a prominent institution for promoting female education. The bank also hosted the Inspiring Women Award 2023 with the aim of recognizing the achievements of disabled female role models in their fields. Fifteen women with disabilities in different categories were awarded crests and Tk25,000.
While Eastern Bank’s policy is for 2% of profits to be committed to CSR initiatives annually, in practice it gives more. In 2023 it committed Tk6.1 billion, up 20% versus 2022 and 53% more than in 2019.
Best bank for diversity and inclusion: Mutual Trust Bank
Mutual Trust Bank pushed women’s empowerment to the front of its diversity and inclusion efforts in 2023, with a range of initiatives and programmes. The biggest of these was the establishment of a dedicated strategic business unit, MTB Angona, which is tasked with providing simplified banking solutions to ensure access to financial independence for women through branches and digital platforms. Part of the strategy is to establish strategic alliances with women-led groups. This included 33 dedicated relationship managers being assigned to different branches to provide the necessary support to female customers. A complementary data package was also offered to these customers.
Other initiatives to support Bangladesh’s women included a dedicated forum, Aporajita, for its female employees to share and discuss issues in their working life. The bank also held a graphic design training course in collaboration with Creative IT Institute that benefitted 23 women from various parts of the country.
Best bank for corporates: Dhaka Bank
Dhaka Bank posted growth in both corporate lending and deposits in 2023.
The bank arranged a syndicated term loan of $45.5 million for Ananta Real Estate for the first LEED Platinum certified gated community under the residential category in Bangladesh.
It also partnered with power projects that collectively generate over 2,800 megawatts of electricity, contributing approximately 12% of the installed electricity generation capacity of the country. Dhaka Bank was also mandated to arrange $68.20 million in financing for the Purbogaon Economic Zone.
In 2023, the bank booked a total of Tk5.2 billion ($44.3 million) of deposits and saw loans and advances of $2.3 billion – a 7% year-on-year increase.
