Strategies of Banking Industry in

Bangladesh in the context of COVID-19

global pandemic
 Prepared By
Group-5
Members
 Mohammad Riasat Ahmed (53E-20)  Mohammad Rashedul Islam (57E-52)

 Naimul Arif (57E-31)  Md. Rashedul Islam Rana (57E-49)

 Golam Towhid (57E-02)  Md. Rakibul Islam Protik (57E-10)

 Swarnil Roy (60D-40)  Mir Md. Tasnim Alam (59E-13)

 Ahmed Ali (60D-46)  Md. Mahmud Hassan (60D-26)

 Common Value Proposition

 Newness

 High Performance

 Ability to Customize

 Cost Reduction

 Convenience
 Revenue Stream
 More Charge based revenues (A/C maintenance fees,
Bank Statement fees, Late payment fees, Sanchaypatra
opening and maintaining fees etc.)

 Efficient Treasury Management (Proper utilization of new

decreased rate of REPO, Reverse REPO and bank rate
etc.)

 Credit/Debit Card Fees

 Taking the full advantages of Stimulus Packages, Credit

Guarantee Schemes and Refinancing Schemes from
Central Banks
 Key Activities
 Regular Banking Activities (General, Credit & Foreign
Exchanges with highest efficiency and limited manpower)

 Special emphasizes on loan recovery in order to lessen

the NPL ratio and provisions that enables generating high
profit

 Diligently performing the duties of disbursing the loans

and advances to the Industry & Service Sector Institution,
Export Oriented Industry, CMSME and Agricultural Sector
and also facilitating the Pre-Shipment Credit and EDF
under stimulus packages announced by the Government
considering the adverse impacts of COVID-19.
 Cost Structure

 Two major costs of banking operations:

 Payment of interests against deposit products
 Salaries and Administrative Costs
Banks are concentrating on these major two sections for cost
cutting. Due to 9% interest rate cap on lending rate banks are
compelled to decrease their deposit rates.
 Promoting cost-efficient banking through spending only
on most important areas and cutting costs from
stationaries, training, payment of incentive bonuses and
increments and salaries
 In some Banks/FIs the case of termination of jobs of the
employees also occurred in a bid to reduced costs.
 Continuity & Sustainability Plans
 Prepare for the future
 About 96 per cent of the clients were accustomed to making
transactions through traditional methods before the Covid-19
outbreak. But in general holiday they suffered a lot for making
day to day transactions. It’s high time bank made some
changes in their banking operations and offered their
customers easy and user friendly digital banking and financial
services and try to make their customers financially literate to
avail their services.
 See Challenges as opportunities
 The challenges brought by COVID-19 should be treated as
opportunities to banks as they saw a massive drops in their
profits in Q2 of this year as customers’ couldn’t avail their
services as physical presence were required. Now, Banks have
already been realized that the adaptation of technology would
be necessary in managing Covid-19 uncertainty and in ensuring
business continuity.
 Continuity & Sustainability Plans (Cont’d)

 Covid-19 can create an opportunity to support clients and

affected communities and can improve the reputation and
image of banks and vice versa i.e. increase reputational and
country risk. Digital marketing and reaction in the number of
banks employees in the current context are also important
indicators as many are isolated by the way of social distancing.
 Believe in Future, Believe in Internet
 The younger generations are keen on using up-to-date
technologies and services at banks but Bangladesh's policy-
makers are seemingly stuck in the analogue era. Banks have to
communicate to the central bank as well as MoF to make them
realize now-a-days People do not need banks, they need
banking. So, give them full supports for the expansion of DFS
in the country expedite the necessary changes to regulations.
Thank You