Introduction to Eastern Bank Limited
Eastern Bank Limited, also known as EBL, has a unique history. It was formed in 1992 from the remains of the collapsed Bank of Credit and Commerce International (BCCI). Despite its challenging beginnings, EBL has grown significantly over the years and is now planning to expand its operations to become a regional bank in East-Southeast Asia.
Expansion Plans
After successfully opening representative offices in China, Myanmar, and Hong Kong, EBL is now looking to spread its wings to neighboring India. This will make it the second Bangladeshi private bank to operate in India. The bank plans to open two branches, one in Kolkata and the other in Guwahati. To facilitate this expansion, EBL has hired PricewaterhouseCoopers’ Kolkata office to assist in obtaining the necessary license from the Reserve Bank of India.
Current Operations and Performance
EBL currently has 82 branches and is planning to convert its representative office in Hong Kong into a full-fledged branch. The bank’s performance indicators are impressive, with non-performing loans at only 2.69%, significantly lower than the industry average of around 10% and the state-owned banks’ average of nearly 25%. EBL’s earnings per share have also increased, and its profit after tax rose to over Tk 265 crore in 2016.
History and Growth
The bank was restructured in 1992 under the guidelines of the central bank, with some depositors of the BCCI becoming shareholders and directors. EBL began its journey with a negative capital of Tk 365 crore, but the directors did not take any dividends or fees until the bank made profits six years later. Today, the bank’s return on asset and equity has increased, and it is maintaining sustainable growth despite challenges in the global and local markets.
Core Strengths and Values
According to Ali Reza Iftekhar, the managing director and CEO of EBL, the bank’s strong ethical values and great culture are key factors in its success. He believes that a company with strong ethical values and a positive culture can better survive market shocks. EBL’s sound corporate governance, strong compliance culture, service excellence, and state-of-the-art IT platform are also sources of its strength.
Conclusion
In conclusion, Eastern Bank Limited has come a long way since its formation in 1992. From its humble beginnings to its current plans for expansion, EBL has demonstrated its ability to adapt and grow in a competitive market. With its strong performance indicators, commitment to ethical values, and plans for regional expansion, EBL is poised to become a major player in the banking industry in East-Southeast Asia.
