Alternative delivery channel to spur NCC Bank's business

NCC Bank Ltd, a leading private commercial bank (PCB) is set to launch alternative delivery channel (ADC) to serve its growing number of clients in a smooth and hassle-free way.

"We are already serving our clients in an automated way, but once the ADC is fully implemented, our clients will get our services at their door-steps," managing director of NCC Bank Md Nurul Amin told the FE in an interview Monday.

Apart from strengthening ATMs, all other online services like SMS banking, utility bill payments will be introduced under the ADC.

"We are installing 100 ATMs by the end of March of next year," Mr Nurul Amin said.

Replying to a question, Mr Nurul said the NCCB First Mutual Fund worth Tk 1.0 billion will be floated shortly, subject to the approval of the Securities and Exchange Commission (SEC).

Another Tk 1.0 billion NCCB NRB Mutual Fund will also be floated in near future.

Commenting on the businesses of the bank, he said the company remained in a growth-path in 2010 due to its product diversification and prudent management policies.

The bank's profit after tax in the period between January to June of this year rose to Tk 1.06 billion against Tk 805.42 million of the corresponding period of the previous year.

NCC Bank is the lone Bangladeshi bank through which official remittance comes from Japan.

"We are receiving around $ 0.1 million remittance per month from Japan and it is really encouraging," Mr Nurul said.

The Bank earlier tied up with a leading micro-credit lender to reach out remittances to its beneficiaries in rural remote areas fast.

"We already signed a deal, first of its kind in Bangladesh to launch the remittance project with Thengamara Mohila Sabuj Sangha (TMSS), a micro-credit NGO (non-governmental organisation)," he added.

He said the venture is a springboard for enhanced remittance-flow as a total of 303 branches of both NCC and TMSS (250 branches of TMSS and 53 branches of NCC) are distributing the funds to the teeming millions of remittance receivers across the country.

The TMSS has 500 branches all over the country and the NCC Bank has chosen 250 in the first phase.

The venture under the project titled 'Foreign Remittance Payment Project' is funded by UK-based Department for International Development (DFID).

The paid-up capital of the bank stood at Tk 4.50 billion.

The bank has already diversified its activities in some areas like agri-financing, stock brokerage, primary dealership, credit cards and corporate social responsibilities (CSR).

He said the bank has already financed soybean cultivation in Lakhsmipur district and expanded the financing of perfume cultivation in Baralekha upazila in Moulvibazar district.

"We are working with the central bank to launch the export of perfume product through banking channel," the NCC Bank MD said.

The bank has already earned reputation due to successful implementation of agri-project in country's northern districts through Doel Agro Products.

"This project helped us exploring new avenue of lending as well as extending banking facility to a remote northern Bangladesh district," Mr Nurul Amin said.

The second generation PCB began its journey with 16 branches on May 17, 1993.

Now the bank has 72 branches across the country and eight more will be opened by the end of this year.