SBAC Bank has no liquidity crisis, depositors are safe: chairman

The depositors of SBAC Bank are safe as the bank has no liquidity crisis at present, and both its board and management are taking necessary measures to ensure uninterrupted service for customers, Chairman Md Moklesur Rahman said today.

The institution remains fully committed to the country and its customers, he said at a press conference marking the bank’s 13th anniversary at its head office in Dhaka’s Motijheel.

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

“We have competent people both on 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 contributing to national development, with emphasis on agriculture and food production.

The bank also plans to expand value-added services for overseas jobseekers and encourage young people to become entrepreneurs, Rahman added.

Referring to loan challenges in the banking sector, Rahman said 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.

SM Mainul Kabir, managing director of SBAC Bank, 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 willful defaulters.