B Mirror Report: SBAC Bank has assured that depositors’ funds remain safe and expressed optimism about announcing dividends for investors soon, despite recent financial pressures.

Speaking at a “Meet the Press” event held on Wednesday (April 1) at the bank’s head office marking its 14th anniversary, Chairman Engineer Md Mokhlesur Rahman said trust is the core strength of the banking sector. He emphasized that the bank is operating cautiously to maintain that confidence while taking various initiatives to overcome pressure on asset quality.

The event was chaired by Managing Director and CEO SM Moinul Kabir and attended by senior officials, including Additional Managing Director Md Robiul Islam and Deputy Managing Director Md Altaf Hossain Bhuiyan.

The chairman noted that the bank is not only focused on its own growth but also contributing to the country’s economic development, with increased investments in agriculture, food production, and young entrepreneurs. It has also introduced value-added services for overseas workers.

Regarding financial performance, the bank reported a 15 percent increase in deposits to BDT 110 billion (Tk 11,000 crore), while loans and advances rose by 7.5 percent to around BDT 95 billion (Tk 9,500 crore). The advance-deposit ratio (ADR) stood at 82 percent, below the regulatory ceiling of 87 percent, indicating a cautious lending approach. Total assets reached BDT 133.6 billion (Tk 13,360 crore), and paid-up capital stood at BDT 8.24 billion (Tk 824 crore). The capital adequacy ratio (CAR) under Basel III was 14.22 percent, exceeding the required minimum.

Rahman acknowledged that dividend distribution was not possible recently due to pressure on asset quality. However, he expressed hope that investors would receive dividends soon, noting that no dividend was declared in the latest fiscal year.

Managing Director SM Moinul Kabir said the bank’s liquidity position remains satisfactory, with no issues in meeting payment obligations. He added that the bank is prioritizing small and medium enterprises (SMEs), which account for 36 percent of its total investments, instead of focusing on large loans.

He also stated that non-performing loans remain at a tolerable level. Strict actions are being taken against willful defaulters, while genuine entrepreneurs affected by circumstances are being supported for recovery.

Founded on April 3, 2013, as South Bangla Agriculture and Commerce Bank Limited, the bank now operates through 90 branches, 32 sub-branches, agent outlets, and 77 ATM booths. It also offers Islamic Shariah-based banking and offshore banking services through 10 branches.