Janata Bank
Janata Bank has won the award both because of its return to profitability last year and its high degree of automation and community involvement.
The bank’s turnaround was nothing short of remarkable. After posting a loss of 428.7m taka ($7.3m) in 2001, it finished 2002 with net profit of 837.3m taka due in large part to successful cost-cutting efforts. The cost-cutting measures included closing or merging 31 unprofitable branches around the country. This enabled Janata to improve its cost-to-income ratio to 88.65% last year from 95.85% the year before. The bank also made great headway in reducing the number of non-performing loans on its book, which in turn boosted its Tier 1 capital.
The bank’s branch automation around Bangladesh continues at a brisk pace: 86 of its branches are already computerised and 48 more will follow. The bank is also planning to introduce internet banking for its customers soon.
Although Janata Bank was preoccupied with returning to profitability last year, that did not diminish its high degree of community involvement. It runs lending schemes targeted at female entrepreneurs, disabled people and those who seek to reduce poverty and hunger.
