The New Nation - Internet Edition

BUSINESS REPORT

The Switzerland-based ICB Islamic Bank, formerly known as Oriental Bank, started formal operations in Bangladesh from Sunday through opening of a new branch at the city's Banani area and pledging for better services to clients.

"Today's opening of the ICB Islamic Bank Banani branch and an equal emphasis on Shariah banking moving forward, will render us combat-ready to compete in this rapidly evolving globalised banking industry,' Chairman of the ICB Islamic Bank Tan Sri Dr Hadenan bin Abdul Jalil told newsmen at a press conference in a hotel in the city on Sunday.To mark its formal operation, the ICB Islamic Bank also signed a Memorandum of Understanding (MoU) with the Malaysia-based Silverlake Corporation for the technologically advanced Islamic Core Banking System.

Abdul Latif Yahaya, Chief Executive Officer of ICB Islamic Bank Limited and KP Tan, President of Silverlink signed the MoU on behalf of their respective organizations.

Under the agreement, Silverlake will provide the bank with Silverlake Axis Islamic Integrated Banking Software (SIIBS) license. The software will facilitate Sharia compliant banking operations of the bank, said Abdul Latif Yahaya.

He said, "Silverlake's SIIBS core banking solution will allow us to stay focused on our business. Its system-based functions coupled with the consolidated customer information, will also enable us to create more innovative ideas and concepts for new products and services which in tern will generate a wealth of new business opportunities."

"This partnership will enable ICB to scale and expand their requirements according to the bank's growth, and free the bank to focus on their core business. Silverlake has been involved in Islamic banking industry for more than 10 years," said KP Tan, President of Silverlake.

Dr Hadenan bin Abdul Lalil, Chairman of the bank, said, "The change of the bank's name from Oriental Bank Ltd to ICB Islamic Bank marks a significant development for the bank as it appropriately reflects the bank's focus on Sharia-compliant banking, presents a new corporate image and re-branding in tandem with the new name and business focus and new directions for moving forward."

To ensure efficiency of the ICB Islamic Bank and make it capable to compete both locally and globally various initiatives are being put in place, said the bank chairman. He said the bank will tap into the lucrative and fastest growing Islamic banking markets which currently has a global business value of an estimated US$ 200 billion and is expected to grow at 13-16 per cent growth a year over the next 8-10 years.

"We will continue with a five-year expansion programme that will see the setting up of 50 branches," said Dr. Hadenan bin Abdul Jalil.

He said total paid up capital of the bank has already been increased to Tk 4.02 billion, the highest in Bangladesh.

It will reach further to Tk 7 billion once the issuance of shares to the depositors is completed by May 31, 2008 next, he added.

Switzerland-based ICB Financial Group Holdings AG has bought majority shares (50.10 per cent) of Oriental Bank at about Tk 350 crore ($51 million) early this year. The new owner of the majority stakes in the bank has taken over the management of the bank in March from the Bangladesh Bank.

ICB is operating in 12 countries with 134 offices.

Bangladesh Bank in June 2006 dissolved Oriental Bank's board of directors after detecting massive corruption. To safeguard the interest of the depositors, the central bank took over the management and appointed a BB executive director as the bank's administrator.

In August 2007, BB floated a tender to sell the bank's majority shares. Two bidders participated in the tender and Swiss-based ICB Group won the bid offering higher price than the competitor of a domestic consortium.

Negotiation with the bid winning ICB group started in December 2007.