Introduction
Ekhan Bank Limited (EBL) is a commercial banking institution operating primarily in Bangladesh. Established in the late 1990s, it has grown from a modest regional lender to a nationally recognized financial services provider. The bank’s operations encompass retail, corporate, and small‑and‑medium‑enterprise (SME) banking, alongside a range of financial products such as loans, deposits, and electronic banking services. Over the past two decades, Ekhan Bank has positioned itself as a significant player within the Bangladeshi banking sector, contributing to financial inclusion and economic development in the country.
History and Background
Founding
The inception of Ekhan Bank can be traced back to 1998, when a consortium of local entrepreneurs and financial experts sought to address gaps in the banking market related to underserved rural communities. The founders, influenced by the success of microfinance institutions and the need for a more diversified banking system, incorporated the bank under the Companies Act of Bangladesh. The name “Ekhan” - meaning “here” in Bengali - reflected the institution’s commitment to being present in the lives of ordinary citizens.
Early Years (1998–2005)
During its formative years, Ekhan Bank concentrated on establishing a robust branch network across the Dhaka division. By 2002, the bank had opened 20 branches, many of which were situated in peri‑urban areas lacking adequate banking services. The early strategy involved offering basic savings and current accounts, with a focus on low‑interest-rate loans to small entrepreneurs and farmers. These initiatives were supported by a modest capital base, primarily sourced from domestic investors and a few foreign development banks interested in fostering micro‑finance solutions.
Expansion Phase (2006–2015)
The period from 2006 to 2015 marked a phase of rapid expansion for Ekhan Bank. In 2007, the bank obtained a commercial banking license from the Bangladesh Bank, the central monetary authority, allowing it to extend beyond regional operations. Subsequent years saw the opening of 35 new branches, the introduction of automated teller machines (ATMs), and the launch of basic credit cards. The institution also began offering foreign exchange services to cater to the growing expatriate population and international trade demands. By 2014, Ekhan Bank had become a member of the Bangladesh Banks Association, enhancing its visibility among peers.
Digital Transformation (2016–2023)
In response to global trends toward digital banking, Ekhan Bank launched its online banking platform in 2016. The platform provided account management, bill payment, and fund transfer services accessible via web and mobile devices. 2018 saw the introduction of a dedicated mobile app, offering features such as QR‑code based payments and instant micro‑loans. These technological advancements were accompanied by the implementation of a data analytics framework to better assess credit risk and personalize product offerings. By 2021, the bank reported that approximately 35% of its transactions were conducted through digital channels, reflecting a significant shift from traditional branch interactions.
Recent Milestones (2024)
In 2024, Ekhan Bank announced a strategic partnership with a leading fintech platform to expand its digital wallet services across rural Bangladesh. This collaboration is part of the bank’s broader goal of enhancing financial inclusion by reaching households that previously lacked formal banking relationships. The partnership also aims to leverage blockchain technology for secure cross‑border remittances, positioning Ekhan Bank at the forefront of fintech innovation in the region.
Corporate Structure and Governance
Organizational Structure
Ekhan Bank is organized into several core divisions that oversee distinct functional areas. The principal divisions include:
- Retail Banking Division: Handles individual customer accounts, mortgages, and consumer loans.
- Corporate Banking Division: Serves larger corporate clients, providing commercial loans and treasury services.
- SME Banking Division: Focuses on financing needs of small and medium enterprises.
- Risk Management Division: Oversees credit, market, and operational risk controls.
- Information Technology Division: Manages the bank’s digital infrastructure and cybersecurity protocols.
- Human Resources Division: Responsible for recruitment, training, and employee welfare.
- Finance and Accounting Division: Manages financial reporting, budgeting, and compliance with accounting standards.
Each division operates under the guidance of a senior manager who reports to the Executive Management Team. This team is chaired by the Chief Executive Officer (CEO) and includes positions such as Chief Operating Officer, Chief Financial Officer, and Chief Risk Officer.
Board of Directors
The Board of Directors governs Ekhan Bank, setting strategic direction and ensuring adherence to regulatory requirements. The board is composed of fifteen members, comprising a mix of independent directors, executive directors, and representatives from shareholder groups. The composition of the board reflects a balance of expertise in banking, finance, law, and technology.
Key board committees include:
- Audit Committee: Oversees financial reporting, internal controls, and external audit processes.
- Risk Committee: Provides oversight of risk management policies and procedures.
- Remuneration Committee: Determines executive compensation and aligns it with performance metrics.
- Corporate Governance Committee: Ensures compliance with corporate governance best practices.
The board convenes quarterly, with additional meetings scheduled as needed to address emerging issues or regulatory mandates.
Products and Services
Retail Banking
Ekhan Bank’s retail banking portfolio includes a range of deposit accounts such as savings, fixed-term deposits, and current accounts tailored to individual customers. The bank offers personal loans for education, home improvement, and auto financing. Mortgage products feature competitive interest rates, flexible repayment terms, and a streamlined application process through the bank’s digital channels. The retail division also provides insurance products, including life, health, and property coverage, through partnerships with established insurers.
Corporate Banking
Corporate banking services address the financing needs of medium to large enterprises. The bank offers working capital loans, term loans, and trade financing solutions such as letters of credit and documentary collections. Treasury services include foreign exchange hedging, cash management, and advisory on capital structure optimization. The corporate division collaborates closely with client businesses to develop customized financial solutions that align with their strategic objectives.
SME Banking
Recognizing the pivotal role of SMEs in Bangladesh’s economy, Ekhan Bank provides a suite of products designed to support business growth. SME loans are available for startup capital, equipment purchase, and expansion projects. The bank also offers micro‑credit packages with minimal collateral requirements, targeting underserved entrepreneurs in rural areas. Additionally, specialized advisory services cover business planning, market analysis, and regulatory compliance.
Digital Banking Services
Ekhan Bank’s digital ecosystem comprises a web portal and a mobile application that provide comprehensive banking services. Core features include account opening, fund transfers, bill payments, loan application, and real‑time transaction monitoring. The bank has integrated biometric authentication to enhance security and user convenience. Digital wallets allow customers to store and transact funds without a traditional bank account, facilitating access for unbanked populations.
Other Services
In addition to core banking products, Ekhan Bank offers foreign exchange services, remittance processing, and investment products such as mutual funds and government securities. The institution has also introduced a corporate credit card program, offering rewards and expense management tools for business clients.
Financial Performance
Asset Growth
Over the past decade, Ekhan Bank’s total assets have expanded significantly. In 2014, assets totaled approximately 12 billion Bangladeshi taka. By the end of 2022, the figure had risen to roughly 45 billion taka, reflecting a compound annual growth rate (CAGR) of approximately 13%. Asset composition indicates a balanced mix of loans (60%), securities (10%), and cash reserves (30%).
Profitability
Net income figures demonstrate a positive trend. In 2015, net profit stood at 450 million taka. The bank achieved a net profit of 2.1 billion taka in 2021, with a return on equity (ROE) of 9.8% and a return on assets (ROA) of 1.4%. Profitability has been driven by an increase in loan disbursements, higher fee income from digital services, and efficient cost management.
Capital Adequacy
Capital adequacy ratios (CAR) are closely monitored to ensure compliance with Basel III standards. Ekhan Bank’s CAR remained above the regulatory minimum of 10.5% throughout the period 2016–2023, achieving 12.8% in 2022. This demonstrates the bank’s resilience to market volatility and credit risk exposure.
Liquidity Position
Liquidity metrics indicate a stable funding profile. The bank’s liquidity coverage ratio (LCR) has consistently exceeded the 100% target, reaching 115% in 2023. Net stable funding ratio (NSFR) figures were within acceptable limits, at 108% in 2023. These indicators confirm the institution’s capacity to meet short‑term obligations and maintain operational continuity.
Regulatory Environment
Licensing and Oversight
Ekhan Bank operates under the regulatory framework established by Bangladesh Bank, which includes licensing requirements, prudential norms, and supervisory oversight. The bank is subject to periodic examinations covering risk management, governance, and financial reporting. Bangladesh Bank’s directives on capital adequacy, asset quality, and liquidity serve as the primary benchmarks for compliance.
Anti‑Money Laundering (AML) and Counter‑Terrorist Financing (CTF)
In alignment with international AML/CTF standards, Ekhan Bank has implemented a comprehensive compliance program. The program encompasses customer due diligence, transaction monitoring, and reporting obligations to the Financial Intelligence Unit. The bank conducts regular training for staff and updates its policies to reflect evolving regulatory requirements.
Consumer Protection
The bank adheres to consumer protection guidelines issued by the Bangladesh Bank and the Consumer Protection Council. Transparent disclosure of product terms, dispute resolution mechanisms, and data privacy protocols form the basis of consumer protection practices. Ekhan Bank has established a dedicated customer grievance redressal unit to handle complaints within stipulated time frames.
International Standards
Ekhan Bank aligns its accounting and reporting practices with International Financial Reporting Standards (IFRS) to ensure comparability and transparency. The institution also participates in global best practice forums, such as the Asian Financial Forum, to stay abreast of industry developments and regulatory trends.
Corporate Social Responsibility
Financial Inclusion Initiatives
Ekhan Bank prioritizes financial inclusion through the establishment of micro‑banking branches in underserved rural districts. The bank provides subsidized interest rates on micro‑loans to women entrepreneurs and implements community outreach programs to educate potential customers on banking services. By 2023, the bank had opened 15 community micro‑branches, serving over 50,000 new customers.
Education and Scholarship Programs
The institution sponsors scholarship programs for students pursuing higher education in finance and business administration. Each academic year, 200 scholarships are awarded to meritorious and financially needy students across the country. Additionally, Ekhan Bank conducts financial literacy workshops in partnership with local NGOs.
Environmental Sustainability
Ekhan Bank has adopted a sustainability framework that includes paper‑less operations, energy‑efficient branch design, and investment in green financing projects. The bank offers preferential loan terms for renewable energy ventures such as solar farms and bioenergy plants. As part of its corporate citizenship, the bank participates in tree‑planting campaigns and coastal cleanup initiatives.
Health and Welfare Programs
The bank provides health insurance coverage for employees and their families and participates in national vaccination drives. In response to the COVID‑19 pandemic, Ekhan Bank established a fund to support frontline healthcare workers and financed the procurement of personal protective equipment for local hospitals.
Controversies and Legal Issues
Regulatory Sanctions (2015)
In 2015, Bangladesh Bank imposed a temporary suspension on a set of loan approval processes due to non‑compliance with internal control guidelines. The bank subsequently revised its risk management framework, re‑obtained approval for loan disbursements, and paid a fine of 30 million taka. The episode prompted a review of compliance procedures across the institution.
Data Breach Incident (2018)
In late 2018, Ekhan Bank experienced a data breach that exposed personal information of approximately 15,000 customers. The breach was attributed to inadequate cybersecurity protocols. Following the incident, the bank invested heavily in upgrading its IT security infrastructure, implemented multi‑factor authentication, and established an incident response team. No evidence of financial loss was reported as a result of the breach.
Credit Default Allegations (2021)
Several corporate clients filed allegations of delayed loan repayment due to misrepresentation in loan documentation. Bangladesh Bank initiated investigations and found evidence of misaligned collateral valuations in three cases. The bank settled disputes by providing compensation packages and adjusting its credit assessment models to incorporate stricter collateral verification.
Public Criticism of Fee Structure (2022)
Customer advocacy groups criticized Ekhan Bank’s fee structure for certain digital services as excessive. The bank responded by revising fee schedules, offering discount tiers for high‑volume users, and launching a fee transparency campaign to educate customers about fee components.
Current Status
Despite the controversies, Ekhan Bank maintains an overall positive reputation for transparency and stakeholder engagement. The institution continues to work with regulators to enhance governance and ensure alignment with national and international norms.
Future Outlook
Strategic Growth Plans
Ekhan Bank’s medium‑term strategy includes expanding digital service penetration to 80% of its customer base, increasing SME loan portfolio to 35% of total lending, and enhancing the micro‑branch network in rural districts. The bank plans to invest 5% of capital reserves in technology upgrades aimed at improving user experience and operational efficiency.
Technology Adoption
Artificial intelligence (AI) and machine learning (ML) are slated for integration into risk assessment and customer service modules. The bank is exploring AI‑driven credit scoring models to improve underwriting accuracy, particularly for SMEs. Blockchain technology is being evaluated for enhancing trade finance transparency and reducing transaction costs.
Partnerships and Alliances
Ekhan Bank is exploring strategic alliances with fintech companies to co‑develop innovative financial products. Potential collaborations include joint development of a peer‑to‑peer lending platform and the integration of open banking APIs to facilitate third‑party service access.
Risk Mitigation
Forward‑looking risk mitigation strategies encompass scenario analysis, stress testing, and dynamic capital buffers. The bank aims to maintain CAR above 13% to provide a cushion against economic downturns. Emphasis on operational risk monitoring ensures that emerging threats are identified and mitigated promptly.
Overall, Ekhan Bank’s trajectory illustrates a commitment to sustainable growth, robust governance, and responsible corporate citizenship. The institution remains positioned to adapt to changing market conditions and regulatory landscapes while continuing to serve a diverse customer base across Bangladesh.
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