Abstract:
Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was an
effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the
Dutch company FMO.
From the onset, the focus of the bank has been financing high-growth manufacturing industries
in Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products
worldwide. Thereby financing and concentrating on this sector allows Bangladesh to achieve
the desired growth. Dutch Bangla Bank other focus is Corporate Social Responsibility (CSR).
Even though CSR is now a cliche, Dutch Bangla Bank is the pioneer in this sector and termed
the contribution simply as 'social responsibility'. Due to its investment in this sector, Dutch
Bangla Bank has become one of the largest donors and the largest bank donor in Bangladesh.
The bank has won numerous international awards because of its unique approach as a socially
conscious bank.
Dutch Bangla Bank was the first bank in Bangladesh to be fully automated. The ElectronicBanking Division was established in 2002 to undertake rapid automation and bring modern banking services into this field. Full automation was completed in 2003 and hereby introduced plastic
money to the Bangladeshi masses. Dutch Bangla Bank also operates the nation's largest ATM
fleet and in the process drastically cut consumer costs and fees by 80%. Moreover, Dutch
Bangla Bank choosing the low profitability route for this sector has surprised many critics. Dutch
Bangla Bank had pursued the mass automation in Banking as a CSR activity and never intended
profitability from this sector. As a result, it now provides unrivalled banking technology offerings
to all its customers. Because of this mind-set, most local banks have joined Dutch Bangla Bank
banking infrastructure instead of pursuing their own.
Even with a history of hefty technological investments and an even larger donation, consumer
and investor confidence has never waned. Dutch-Bangla Bank stock set the record for the highest share price in the Dhaka Stock Exchange in 2008.
