'HBL's international network helps support businesses in Bangladesh'

Habib Bank Limited (HBL) – an international private commercial bank, majority owned by The Aga Khan Fund for Economic Development (AKFED) and headquartered in Pakistan – has been operating in Bangladesh for over four decades. Selim Barkat, Bangladesh country manager of HBL, recently spoke to The Business Standard's Staff Correspondent Tonmoy Modak. In this interview, Selim Barkat discusses a wide range of subjects, including the legacy of HBL in Bangladesh, how the bank has evolved to meet the changing needs of its customers and the banking industry, what sets HBL's offerings apart from other banks in the region, and how HBL collaborates with local businesses and industries to support their growth and enable them to expand globally.

Can you discuss the legacy of HBL in Bangladesh, and how it has evolved to meet the changing needs of customers and the banking industry?

Certainly, HBL has a long-standing legacy in Bangladesh, dating back over four decades when it first established its branch in Bangladesh in 1976. Over the years, we have played a meaningful role in supporting the growth and development of the country's economy, providing a range of financial services to individuals and businesses alike.

As the banking industry has evolved, we've adapted to meet our customers' changing needs by offering innovative solutions and a wide range of products and services. We've remained nimble and flexible in meeting the evolving needs of our customers, from traditional banking services like deposits and loans to trade and payment solutions.

I must make a note of the ownership change whereby the Aga Khan Fund for Economic Development (AKFED) – the for-profit arm of the Aga Khan Development Network (AKDN) obtained the majority stake in the bank and changed the course of its progress.

With a vision to transform the bank into one of the best financial institutions in whichever market the bank operates in, we have adjusted our strategy and focus to creating value propositions for our clients and the markets. It truly means putting the client first in everything we do and be the most compliant bank.

In recent years, we have been investing in our technological capabilities with a focus on becoming a "technology company with a banking licence." This investment will enable us to offer digital banking services like online banking, mobile banking, and other value-added services to enhance our customer experience. At the heart of our initiatives are our clients and the country we serve.

What makes HBL's offerings unique in comparison to other banks in the country and the region?

We prioritise our customers and aim to provide them with trustworthy and customised financial solutions. What sets us apart from other banks in the region is our presence in Bangladesh, as well as our international network across 14 countries of significant financial importance. We offer a wide range of services, including corporate and investment banking, commercial banking, and retail banking. For our top-tier local corporate customers, as they grow in size and embark on the ambition to become global players, we stand beside them to help them achieve that aspiration. As we stand today many of our clients are dependent on supply chains linking to these countries. This gives us a unique opportunity to facilitate our clients' businesses with end-to-end services on these cross-border transactions and help the clients to continue to grow.

How does HBL collaborate with local businesses and industries in Bangladesh to support their growth and enable them to expand globally?

We work closely with local businesses and industries in Bangladesh to offer a range of financial products and services tailored to their unique needs, including trade finance, working capital finance, and term finance. Additionally, we provide specialised expertise and advice to help businesses navigate the complex regulatory and business environment in Bangladesh, which can facilitate their growth and expansion.  We also collaborate with industry associations and business groups to promote entrepreneurship and innovation in Bangladesh.

Furthermore, as mentioned earlier, our international network enables local businesses to expand globally, providing them with access to new markets and investment opportunities. Through these efforts, we are committed to promoting economic growth and prosperity in Bangladesh while supporting local businesses in their journey toward global expansion.

Could you elaborate on the significance of the trade relationship between China and Bangladesh, and how HBL is contributing to facilitating it?

China is Bangladesh's largest trading partner, and the two countries have been actively working to expand their trade ties in recent years. As an international bank with a strong presence in both China and Bangladesh, we play an important role in facilitating trade and other economic activities between the two countries.

We have established a dedicated China Desk, which is staffed by Chinese and Bangladeshi professionals and directly services our clients who are engaged in the China-Bangladesh trade. We are also facilitating large Chinese companies who are engaged in our government's mega infrastructure projects. Our role is often facilitating these companies with their local financing needs as well as advising them of the regulatory parameters that they must abide by. Our ability to advise them of the local banking regulations has substantially contributed to the ease of doing business for these companies. We also provide RMB-denominated transactions for corporates and financial institutions and have been at the forefront of providing RMB remittance services for Chinese nationals working in Bangladesh. Our partnership with the Chinese banking sector has enabled us to develop the necessary expertise and infrastructure to support this expanding demand.

How does HBL's international network help it to support businesses in Bangladesh?

Our global network is crucial in supporting businesses in Bangladesh, providing international banking services such as trade finance, foreign currency accounts, and fund transfers. Our presence in multiple countries also offers local businesses access to wider markets and investment opportunities. For instance, through our branches in China, we assist Bangladeshi businesses in establishing partnerships and transactions with Chinese companies. Our expertise and experience can also offer valuable guidance to businesses seeking global expansion. We also facilitate international companies operating in Bangladesh.

How has HBL's association with AKFED influenced its approach to fostering economic growth and development in Bangladesh and other areas?

As the flagship company of the Aga Khan Fund for Economic Development, HBL shares AKDN's commitment to promoting economic development and sustainability. Our association with AKFED shapes our business approach and prioritises adherence to local laws and regulations and good governance. The values of excellence, integrity, progressiveness, customer focus, and meritocracy, are instilled by the Board in our organisation, reflecting our affiliation with AKFED. This partnership enables us to take a more comprehensive and sustainable approach toward supporting economic growth and development in Bangladesh and beyond.

How does HBL plan to continue its growth and expansion in Bangladesh in the coming years?

HBL is committed to expanding its business in Bangladesh with a strategic approach to benefit both our clients and the country's prosperity. We have redefined our business strategy in Bangladesh, solely focused on adding value and staying relevant.

Our plan is to continue investing in our operations and infrastructure, and strengthen our relationships with local businesses and industries. We aim to explore new opportunities to support the country's economy, including partnerships with government entities and development organisations. Furthermore, we intend to leverage our presence in markets with a large Bangladeshi population, mainly in the Middle East, to facilitate homebound remittances as part of our growth strategy.