Depositors safe, SBAC Bank not facing liquidity stress: chairman

SBAC Bank PLC Chairman Md Moklesur Rahman yesterday said depositors remain safe with the bank and that both the board and management are taking necessary measures to ensure uninterrupted customer service.

Speaking at a press conference marking the bank’s 13th anniversary, he said the institution remains fully committed to the country and its customers.

“Banking is fundamentally built on trust,” he said, adding that confidence takes years to establish through ethical practices and high standards.

“We have competent people on both the board and in management, and we are doing our utmost to strengthen that confidence.”

He said the bank’s objective is not only institutional success but also to contribute to national development, with an emphasis on agriculture and food production. The bank also plans to expand value-added services for overseas job seekers and encourage young people to become entrepreneurs.

Referring to loan challenges in the banking sector, Moklesur said the diversion of borrowed funds into non-productive areas has become a major concern.

He noted that if a young entrepreneur uses a loan for its intended purpose, such as poultry farming, the bank can support recovery even if losses occur.

“The real problem begins when loan funds are diverted to land purchases or other unauthorised uses,” he said.

Replying to a question on dividends, he said pressure on asset quality remains severe, adding that regulators restrict dividend payments when asset quality falls below required thresholds.

Managing Director SM Mainul Kabir said the bank is operating on customer confidence and is not facing any liquidity crisis. “Our liquidity position is satisfactory. We do not believe in aggressive investment; we are cautiously financing quality clients,” he said.

He added that legal action is being intensified against wilful defaulters.