Social Islami Bank will target remitters to build offshore deposits
The managing director and CEO of Social Islami Bank PLC believes as expatriates have found comfort in sending remittances through the bank, they can achieve similar success in foreign deposits in the Offshore Banking Unit (OBU) from these same expatriates. The bank’s favourable indicators are what will attract remitters to its OBUs
Social Islami Bank has achieved remarkable success in collecting remittances from expatriates over the past three years
As expatriates have found comfort in sending remittances through our bank, we are confident that we can achieve similar success in foreign deposits in the Offshore Banking Unit (OBU) from these expatriate brothers.
In FY24, Social Islami Bank ranked second in terms of remittance collection.
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For the current fiscal year, our target is Tk14,000 crore. However, within the first six months, we have already surpassed Tk12,000 crore in remittances.
We are providing high returns to depositors through offshore banking. Previously, banks in our country offered minimal interest on such deposits. Now, the interest rates have increased significantly. The Bangladesh Bank has made it possible for people from all walks of life to keep deposits in offshore banking units.
Social Islami Bank is offering an 8.6% profit on deposits for offshore customers.
By collecting funds in foreign currencies, Social Islami Bank has ample opportunities to invest in the country.
There are approximately 1.5 crore crore expatriates in our country, and we must leverage them. Through offshore banking methods, these customers will be able to invest in foreign currencies and open an account.
Social Islami Bank currently offers provisional rates under the Mudaraba method. Through their offshore banking unit, the bank provides Mudaraba International Term Deposit (MITD) — an Islamic product. Additionally, any individual in Bangladesh can open a Non-Resident Foreign Currency Deposit (RFCD) account against foreign travel.
We are now actively working to bring investments through our offshore banking unit. Several accounts have already been opened, and we have received deposits in foreign currencies in significant amounts. These accounts offer complete tax exemption for our customers.
We offer comparatively higher returns to depositors through offshore banking. Simultaneously, we provide our customers with convenience through our airport facility, allowing them to travel to any location inside Dhaka for a fee. We make a microbus service available for all-time use. Additionally, they will get benefits at our hospitals, similar to our employees. We provide the service to two categories of customers: retired citizens and expatriate Bangladeshis.
Apart from expatriates, the bank is also actively pursuing institutional funds from various countries.
Social Islami Bank has expanded several correspondent agencies to increase remittance. These agencies are located in Singapore, Malaysia, UAE, US, UK, and Saudi Arabia. The bank has increased the number of correspondent agencies in these locations.
We are now actively working to bring investments through our offshore banking unit. Several accounts have already been opened, and we have received deposits in foreign currencies in significant amounts. These accounts offer complete tax exemption for our customers.
All our business indicators are favourable. Our deposits have increased significantly and the growth trend is continuing. We have not only met but exceeded Bangladesh Bank's Capital Adequacy Ratio (CAR) requirements. Additionally, we have significantly reduced our Non-Performing Loans (NPL) ratio compared to the previous year, and we are optimistic that our strategic measures will bring down NPL further.
We maintain a zero-tolerance policy towards NPL, regardless of power and influence.
