First NRB bank starts journey

From left, Nazrul Islam Mazumder, president of Bangladesh Association of Banks; Atiur Rahman, governor of Bangladesh Bank; AMA Muhith, finance minister; Farasat Ali, chairman of NRB Commercial Bank; Nurul Amin, chairman of Association of Bankers Bangladesh; and Shahid Reza, a director of FBCCI, attend the launch of the country's first NRB bank at Sonargaon Hotel in Dhaka yesterday. Photo:Star

A new bank started its journey yesterday with an aim to attract more investment and remittances from non-resident Bangladeshis.
Finance Minister AMA Muhith inaugurated the bank -- NRB Commercial Bank Ltd -- at a ceremony at Sonargaon Hotel in Dhaka.
With its foray into the country's banking system, the bank becomes the first one of its kind in the private sector and has been set up by 53 NRBs from eight countries.
Muhith said he hopes the bank would not run after profits only, rather it would work for the development of the country and the economy.
"So, sometimes it will have to invest in projects that might not bring higher returns."
Bangladesh Bank Governor Atiur Rahman said the bank got its licence through due diligence and on the basis of its strong financial
foundation.
He said the bank has only got licence to open its headquarters. The central bank will continue to weigh its capacity before giving it the final licence, Rahman added.
The governor also said more new banks have become necessary for the country, as its economy has been growing tremendously for a decade, its exports and imports have gone up and remittance flow and foreign currency reserves have reached new milestones.
"If we have more banks on sound financial footing, they will be able to finance big projects on their own," the governor said.
He said the new bank will have to work to take the banking services to the unbanked people in the rural areas, to the small and medium enterprises and the agriculture sector.
Farasat Ali, chairman of the bank, said: "The bank will not only target higher dividends for its shareholders, it will also bring remittances through official channels."
"We will help the NRBs get loans on easy conditions so they can set up businesses in the country. We will also help them buy government bonds," he said.
Matia Chowdhury, agriculture minister;
Abul Kalam Azad, cultural affairs minister; Nurul Amin, chairman of Association of Bankers Bangladesh; Nazrul Islam Mazumder, president of Bangladesh Association of Banks, and Shahid Reza, a director of the Federation of Bangladesh Chambers of Commerce and Industry, also attended the event.