Private commercial bank ONE Bank is set to enhance its digital banking services and deepen its involvement with small and medium enterprises (SMEs) and foreign trade.
According to Muhit Rahman, the bank’s managing director, ONE Bank has a robust client base in the corporate sector, but there are ample opportunities for growth in retail, SME, and digital segments. He emphasized that the future of banking lies in digital platforms and financial technology rather than solely expanding physical branches.
Rahman, a seasoned foreign bank executive with over thirty years of global banking experience, assumed the role of managing director at the Bangladeshi bank in November 2025. Drawing from his background at American Express and Standard Chartered Bank, he is confident that focused reforms can significantly elevate the performance of a mid-sized local bank.
The bank’s strategy entails expanding retail and SME banking while leveraging its existing strength in corporate banking. Plans include introducing more digital solutions in corporate banking, such as cash-management systems, payment solutions, payroll services, and distributor financing for corporate supply chains. Additionally, there is a focus on enhancing partnerships with fintech companies to broaden financial inclusion.
Despite operating over 160 locations and approximately 260 agent outlets, ONE Bank aims to bolster promotion and improve digital integration for its services. The bank is also exploring nano-loan products, a recent addition to some banks’ offerings through mobile financial services.
In terms of the forex market and external risks, Rahman highlighted ONE Bank’s robust foreign currency liquidity and timely international payments, even during periods of dollar shortages. He noted that overdue import payments in Bangladesh stem from temporary dollar shortages and exchange rate fluctuations rather than loan defaults.
Addressing non-performing loans (NPLs), Rahman identified three primary sources: legacy loans, business downturns with inadequate monitoring, and potentially questionable loan practices. He expressed confidence in the bank’s portfolio, stating that no fraudulent lending cases have been uncovered. Rahman emphasized the importance of governance, monitoring improvements, and economic recovery in enhancing asset quality.
Rahman underscored the need for Bangladesh to develop its capital market to reduce reliance on bank financing. He suggested attracting foreign portfolio investment and tapping into global funding sources like green, sustainable, and Islamic finance. He proposed hosting an international banking forum in Dhaka to showcase Bangladesh’s economic potential and attract foreign lenders and investors.
As for lending strategy and outlook, Rahman outlined plans to increase exposure to key export sectors such as ready-made garments, pharmaceuticals, commodities, and infrastructure-related industries like steel. He emphasized a shift towards cash-flow-based credit assessment over collateral-based lending to enhance asset quality. Despite challenges like high interest rates and slow private sector credit growth, Rahman remains cautiously optimistic about economic recovery through enhanced governance, digital transformation, and SME support.
