List of top 10 Private Banks in Bangladesh 2024
By Sohagh –
Private banking is a general description for banking, investment and other financial services provided by banks and financial institutions primarily serving high-net-worth individuals (HNWIs) – those with very high income and/or substantial assets. Private banking is presented by those who provide such services as an exclusive subset of wealth management services, provided to particularly affluent clients. The term “private” refers to customer service rendered on a more personal basis than in mass-market retail banking, usually provided via dedicated bank advisers. It has typically consisted of banking services (deposit taking and payments), discretionary asset management, brokerage, limited tax advisory services and some basic concierge services, typically offered through a gateway provided by a single designated relationship manager.
Banking originated in provision of some services of what is now seen as “private” banking. Early Venetian banks provided personal finance for wealthy families. Private banks came to be known as “private” to stand out from the retail banking and savings banks aimed at the new middle class. Traditionally, private banks were linked to families for several generations. They often advised and performed all financial and banking services for these families. Historically, private banking has developed in Europe (see the List of private banks). Some banks in Europe are known for managing the assets of some royal families. The assets of the Princely Family of Liechtenstein are managed by LGT Group (founded in 1920 and originally known as The Liechtenstein Global Trust). The assets of the Dutch royal family are managed by MeesPierson (founded in 1720). The assets of the British Royal Family are managed by Coutts (founded in 1692).
1. Islami Bank Bangladesh Ltd. (IBBL)
Islami Bank Bangladesh ranks top on our list because it has the largest banking network across the country, with 357 branches. The bank was founded by Saudi and Kuwaiti investors in 1983, being the first Islamic bank in Southeast Asia. It provides commercial banking services based on Islamic Shari’ah law. IBBL serves its clients through 357 branches, 60 sub-branches, 1,200 agent banking outlets, 660 own, and about 11,000 shared ATM and CRM booths. It is a public limited company and is listed with both Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. IBBL has reached the milestone of one trillion deposits in 2020. In addition, it alone mobilizes 32% of the total foreign remittance of the country. The number of clients for the bank is 15 million now. Md. Nazmul Hassan, Ph. D, is the current chairman of the bank, and the headquarter is located at Islami Bank Tower, 40, Dilkusha C/A, Dhaka – 1000.
It is a public limited company and is listed with both Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. IBBL has reached the milestone of one trillion deposits in 2020. In addition, it alone mobilizes 32% of the total foreign remittance of the country. The number of clients for the bank is 15 million now. Md. Nazmul Hassan, Ph. D, is the current chairman of the bank, and the headquarter is located at Islami Bank Tower, 40, Dilkusha C/A, Dhaka – 1000.
2. Dutch Bangla Bank Ltd. (DBBL)
Dutch Bangla Bank Limited started its operations formally in 1996 as the first joint venture bank in Bangladesh, focusing on financing high-growth manufacturing industries. It was initiated with the combined effort of Bangladeshi shareholders led by M Sahabuddin Ahmed and the Dutch company – FMO. The bank currently has 220 branches and the largest fleet of ATM booths in the country. According to the bank’s Annual Report- 2021, there are a total of 4,917 active ATMs and 1,342 Fast Tracks to date, which ensures easy access to its banking services for its clients.
This significantly contributed to the gigantic client base of the bank. Moreover, in May 2022, DBBL mobilized 133.90 million USD foreign remittances and secured the second position in this concern. DBBL also concentrates on its corporate social responsibility. Due to the huge amount of investment in this sector, the bank has become the largest bank donor in Bangladesh. Mr. Sayem Ahmed is the current chairman of the bank, and it is headquartered at 47 Motijheel Commercial Area, Dhaka-1000.
3. AB Bank Limited
AB Bank (formerly Arab Bangladesh Bank) is a leading private sector bank in Bangladesh. AB Bank Limited was incorporated on 31st December, 1981 and its the first commercial private bank in Bangladesh.
AB Bank was established on 31 December 1981.[3] [4] This was the first joint venture private bank in Bangladesh. On 14 November 2007 Bangladesh bank approved the name change to AB Bank from Arab Bangladesh Bank.
AB Bank Limited able to show a substantial improvement during the calendar year 2019 because of the efforts of its board of directors and management and placed in the “B” category on the stock market upgraded from “Z” category.
4. The City Bank Ltd.
The City Bank Limited is a first-generation private commercial bank in Bangladesh and has been operating for 39 years. Being one of the pioneers of commercial banking in the country, City Bank offers premium services to its large customer base through its 132 branches. It is the only licensee of issuing, managing, and promoting American Express cards in Bangladesh. City Bank holds a 35% market share in the card segment, serving approximately half a million subscribers with a total of 1.2 million cards in the country.
Moreover, its real-time online banking feature offers retail banking, corporate finance, SME banking, women banking, asset management, equity brokerage, and Islamic banking through a full-fledged Islamic banking branch too. For international operations, the bank has established 10 branches abroad and 2 representative offices in Malaysia and Hong Kong. The bank is headquartered at 136 Gulshan Avenue, Circle 2, Gulshan, Dhaka, Bangladesh, and is currently operating under the leadership of Aziz Al Kaiser (Chairman).
5. Bangladesh Commerce Bank Limited
The bank can trace its origins to the former Bangladesh Commerce and Investment Limited, set up on 27 January 1986. It was a non-bank financial institution. In April 1992 its activities were suspended by Bangladesh Bank due to a liquidity crises. To protect the banking sector, the employees, and customers of the firm, it was changed into a bank by Bangladesh Bank. Bangladesh Commerce Bank Limited was incorporated on 1 June 1998. S Alam Group is an investor in the bank.
In August 2004, Bangladesh Bank placed in a watchlist of “problem banks”. The bank donated to Prime Minister Khaleda Zia’s relief fund. Md Enayet Ullah was appointed managing director of the bank.
A branch of the bank in Ashulia, Bangladesh was robbed on 21 April 2015. Nine people including the bank manager were killed. One of the robber was killed and 2 were captured out of an estimated 8-9 robbers. The attack was blamed on Islamic militants. 6 members Jama’atul Mujahideen Bangladesh (JMB) and Ansarullah Bangla Team were sentenced to death in the case and others were imprisoned.
6. BRAC Bank Ltd.
BRAC Bank Limited is a private commercial bank in Bangladesh, operated by the development organization BRAC. Focusing on Small and Medium Enterprises (SMEs), the bank started its journey in 2001, and within its 20 years of operation, it has set up 187 branches, 705 agent banking outlets, and 373 ATM booths across the country to serve its clients. It is the only member of the Global Alliance for Banking on Values (GABV) from Bangladesh.
One of the leading Mobile Financial Service providers in Bangladesh, BKash is a subsidiary of BRAC Bank. It has provided the people of rural Bangladesh with money transfer facilities through the use of mobile phones. The other subsidiaries of this bank are BRAC EPL Investments Limited, BRAC EPL Stock Brokerage Limited, and BRAC Saajan Exchange Limited. The bank is headquartered at Anik Tower, 220/B Tejgaon Gulshan Link Road, Tejgaon, Dhaka-1208, and it is run under the chairman, Dr. Ahsan H. Mansur.
7. Bank Asia Ltd.
With the acquisition of two foreign banks, Bank of Nova Scotia and Muslim Commercial Bank Limited, Bank Asia Limited started its journey in 1999. The bank provides modern and innovative banking products and services to clients through its 129 branches. Moreover, Bank Asia wishes to open a bank account for every person in the country, irrespective of socio-economic class, with the goal of making Bangladesh free of poverty. Hence, it offers banking facilities to 5 million+ customers across the rural areas of Bangladesh through 5000+ outlets of agent banking.
In 2003, the Bank made headlines when its Initial Public Offering of shares was oversubscribed by 55 times, a record in Bangladesh’s capital market history. The bank aims to make the first-ever Digital Bank in Bangladesh for the future generation of banking services. It is run under the chairman A Rouf Chowdhury and headquartered at Bank Asia Tower, 32 & 34, Kazi Nazrul Islam Avenue, Karwan Bazar, Dhaka.
8. United Commercial Bank (UCB)
In the middle of 1983, United Commercial Bank (UCB) began its journey and has since become one of the major first-generation banks in the country. In addition to reviewing and monitoring business loans, managing business financing risks, and pricing products, the Bank is firmly committed to promoting the SME sector as well. In addition, the Bank offers both incoming and outgoing remittance services to its customers. With a vast network of 215 branches, 580 ATM booths, 2 SME banking centers, and 1 offshore banking unit, the Bank has already made a distinct mark in the realm of Private Sector Banking in this country.
Since its debut in 2006, UCB Cards have shown incredible success and growth, and it quickly became the leader in the local market with over 40000 card holders. UCB Fintech Company Limited, a unit of United Commercial Bank, owns the digital financial service brand Upay. Consumers from all over the country can use Upay’s vast range of mobile banking services. The bank is headquartered at Bulus Center, Gulshan Avenue, Dhaka-1212, and is currently led by Mrs. Rukhmila Zaman.
9. Standard Chartered Bank Ltd. (SCB)
Standard Chartered Bank, established in 1948, is a prominent banking and financial services corporation. The bank initially commenced operations in Chittagong, Bangladesh, and has since expanded to become one of the country’s largest foreign banks. Although the bank has limited its ATM booth services, it continues to offer an extensive array of banking services, encompassing corporate and institutional banking, personal banking, and wealth management.
The bank has achieved remarkable performance, leading to numerous accolades, notably including the prestigious “Bank of the Year” award presented by The Banker in 2010, 2012, and 2013. Moreover, it was honored with the “Best Consumer Internet Bank” award at the Global Finance Awards in 2013. These accolades serve as a testament to the bank’s unwavering dedication to delivering exceptional financial services to its esteemed clientele. Standard Chartered Bank, with its rich history and comprehensive range of banking services, stands as a prominent financial institution. Despite the limitations in its ATM booth services, it has established itself as a top-performing foreign bank in Bangladesh. The bank’s multitude of awards and recognitions truly reflect its commitment to providing unparalleled financial services to its valued clients.
10. Mutual Trust Bank Ltd. (MTB)
Mutual Trust Bank Ltd. (MTB) is a third-generation private commercial bank incorporated as a Public Limited Company in 1999. MTB strives to be one of the most acclaimed banks in the country, as well as a recognized innovator and customer-centric business, which is why it ranked in our top 10 commercial banks in Bangladesh list. Currently, the bank has 119 branches & 33 Sub branches, 200 Agent Banking Centers, 18 kiosks, 310 modern ATM booths, 4 Air Lounges, and over 3,220 Point of Sales (POS) machines across the country to serve its client.
MTB Securities, MTB Capital Ltd., and MTB Exchange Ltd are some of the subsidiaries of the bank. In 2015, the bank joined the Life Insurance Corporation of India (LIC) as one of two local partners in Bangladesh. In addition, the bank was given the title of “one of the best-run banks in Bangladesh” at the 15th Annual Bangladesh Business Awards presented by the Daily Star. Syed Mahbubur Rahman is the managing director and CEO of the bank, and the headquarter is located at MTB Centre, 26 Gulshan Avenue, Gulshan 1, Dhaka.