Wednesday, 6 July, 2022

NCC Bank to introduce Islamic banking service soon

National Credit and Commerce (NCC) Bank Limited is going to introduce Islamic banking through setting up separate windows by the third quarter of this calendar year.

"Islamic Banking is very important in the socio-economic context of Bangladesh. We're now taking preparations to launch the Islamic banking services from August or September," said Mohammad Mamdudur Rashid, Managing Director and Chief Executive Officer (CEO) of the NCC Bank Limited, reports BSS. The managing director said this while speaking at a press conference on the bank's 29th anniversary. He informed that the second generation Private Commercial Bank (PCB) has already received a no-objection certificate (NoC) from the central bank to launch the Islamic banking service.

NCC Bank's latest moves came against the backdrop of rising trend in the Islamic banking business in Bangladesh.

Currently, 10 full-fledged Islamic banks have been operating with 1671 branches out of 10,937 branches of the whole banking sector. In addition, 41 Islamic banking branches of 9 conventional commercial banks and 368 Islamic banking windows of 13 conventional commercial banks are also providing Islamic financial services in Bangladesh.

Mamdudur Rashid said NCC Bank is also planning to enhance its financing in retail and Small and Medium Enterprises (SME) for minimising risk and diversifying portfolios by the next two years.

Under the new plans of the bank, the investment in retail and SME will be reached at 35 per cent of its total loans and advances within 2023-24 from the existing level of 24 per cent, he added.