Rupali Bank Limited Automation: A Step Towards Digitalization

1. Rupali Bank LimitedAutomation: A Step Towards Digitalization iƒcvjx e¨vsK wjwg‡UW Ahmed Al-Kabir, Ph.D Chairman 03 October 2011

2. WELCOME TO RUPALI BANK FAMILY MEETING BUSINESS NOT AS USUAL • Do we need ‘Change’? • Can we work together for a revitalized Bank? • Do we want to share with each other with an open mind? • Do we want to computerize our Bank? • What are the steps in the automation of a bank? • Who are our models – can we partner with them? • Do we need AUTOMATION? If so, let us understand the process.

3. What we want to do with the Bank – Let me share my views The overall goal is to develop the bank into a people oriented, sustainable and quality commercial enterprise with all modern facilities and systems. The Specific Objectives are: • Developing a customer oriented and quality focused (CQF) system in place. • Identifying and selecting clients through the use of best tools and judgment, and taking the responsibility of establishing professional relationship with clients through Appreciative Inquiry (AI) and close monitoring of their performance. • Reducing classified loans at a comparable level of other banks and ‘change’ branches which are losing units • Developing a community focused social banking system in close collaboration and partnership with other organizations. • Implementing innovation in the bank through human resources development, information technology, partnership with development agencies, banks, etc.

4. Our Base Line–Situation analysis The overall performance and quality have been stagnant Up to 2009 Since 2004, the growth has stopped and is showing downward trends in many areas • Capital Deficit due to cumulative loss of over Tk.1,316.82 crore as of 2009 • Classified Loan of Tk.1094.41 crore as of December, 2009 • Vacant professional positions 3,185 as of 2009 • 4,822 Cases pending for decision • 58 branches were losing entrepreneurs in 2009 • Very few product developed during the last several years • No clear strategy for resource mobilization and investments. • ‘Business’ and ‘Operation’ teams are overlapping with each other • Modernization of banking is almost absent

5. Our Base Line –Situation analysis The overall performance and quality have been stagnant up to 2009 (Cont. ….1) Our progress is slow and so far failed to coup with the modern banking systems and developments • Our credit port-follow is narrowly focused on a few less productive sectors and concentrated on a few large borrowers • SME sector is weak and new innovations are missing • Pro-poor strategies and approaches to participate in development activities of the country are missing • Foreign Exchange unit is very weak and lacks experienced human resources • Physical facilities and locations of branches are poor • Image of the bank is poor among stakeholders • Decision making process is slow and not client oriented.

6. Our Base Line–Situation analysis The overall performance and quality have been changed over the period from 2009 to 2011 From2010 and onward the scenario becomes as under: • Capital raised at 1150.69 Crore on June 2011 while minimum capital requirement as desired by BB is Tk. 1040.06 Crore (Basel-ii). However mandatory maintenance of paid up capital Tk. 200.00 crore is on process. • Classified Loan deceased at Tk.790.27 crore as of June, 2011(6.88% of the total loan and advances which is the least percentage in the history of Rupli Bank) • Vacant professional positions have been decreased by employing 1100 new officers and senior officers. • Cases pending for decision is declined to 3528 till June 2011

7. Our Base Line–Situation analysis The overall performance and quality have been changed over the period from 2009 to 2011 (Cont.) • There is only 13 losing branch in the June, 2011 which is expected to develop on ZERO level • As many as FIVE new deposit product have been introduced meanwhile. • A good number of strategies have been adopted for resource mobilization and investments. • ‘Business’ and ‘Operation’ teams are clearly separated and assigned job to the respective sector. • Modernization of banking is almost on final stage.

8. Our Base Line –Situation analysis • The overall performance and quality have been changed over the period from 2009 to 2011 (Cont.) BUSINESS SEGMENT FOCUS Figure in crore

9. Our Base Line –Situation analysis • The overall performance and quality have been changed over the period from 2009 to 2011 (Cont.) BUSINESS SEGMENT FOCUS Figure in crore

10. Present Status–Situation analysis Computerization process is slow and but we have a clear road map • Logo, sign board, website, networking, etc are slowly developing • Limited progress in Computerization – primitive approach. ATM, credit card, etc are available on a limited basis. • Forward and backward linkages are very poor. On-line banking is mostly absent. • Organizational Email system is not fully functional. No direction as yet for creating a paper less office. • Computer hardware and software teams are not defined and limited in-house capacity developed

11. Our Future We are looking towards to a fully Automated Structure • The Bank should define its core team for automation to position itself as a modern bank • Role and responsibilities of Headquarter, Divisional and Branch staffs should be clearly delineated for developing local level plans in light of corporate guidelines. • Immediate steps for completing data entry in the branch computers with the use of existing software • Networking and anywhere banking should be established as a first step of automation. • DC, DRC and core Banking solutions are essential

12. Our Future We are looking towards a fully automated structure (contd. ) • Most of the branches are located in remote rural areas (outside upazilla headquarters). A review of the present locations should be conducted on a priority basis to develop a new strategies and action plans. • We need to establish mobile banking to reach clients at their door steps. • A comprehensive review of investment tools used by the bank is essential. • Team approach will be taken and all team members in a cost centre should be rewarded or punished for their success or failures. • We need to establish a computer based HR policy, which should be based on transparency and accountability.

13. Our Future We need to change our Image • Image building campaign should br strengthened. Which will include Web-site reconstruction and a new quality based branding. • The bank should have an effective internet system in all locations and all staff should be conversant with the use of e-mail and systems available in each branch and key desks. • Can we establish a paper less office? Let us establish a new generation bank.

14. Our Future Conclusions • Our deposit base should be expanded with the opening of new bank accounts • In our investments, SME Banking will get the highest priority. • Our response to risk management should be prompt and it is our desire to see that the decisions are taken carefully with the use of modern technologies. • Your performance will be based on your branch’s client friendly facilities, team work, deposits, investments, and income. • We want to award/reward best performing teams/individuals annually for good performance. • We want to reorganize the bank with the state-of-art • modern facilities.

15. Thank You