Community Bank Bangladesh PLC, widely known as the ‘police bank’, is gradually transforming into a bank for all as it diversifies its deposits and lending portfolios, said its managing director (current charge) Kimiwa Saddat.
‘We want to ensure sustainable growth with strong community impact and good governance,’ Saddat told ¶¶Òõ¾«Æ· in an exclusive interview ahead of the bank’s sixth anniversary today.
Although still among the youngest banks in the country — the 59th to enter a sector of 62 banks — Community Bank has already made its mark.
Saddat noted that while about half of its deposits still come from police members, the share is steadily declining, not because of withdrawals but due to the growing inflow of funds from non-police customers.
‘It reflects our strategy to become a bank for all,’ he said.
The deposit base has expanded rapidly, with Community Bank posting the highest deposit growth among new-generation banks in June 2025.
On the lending side, about half of the loan book also comes from police members, with more than 90,000 borrowers — most of them with exposures below Tk 5,00,000.
This retail-driven and diversified portfolio, Saddat said, sets the bank apart from many peers that remain heavily corporate-focused.
‘Our biggest strength is the institutional trust of Bangladesh Police, which gives us a solid foundation,’ he said.
‘At the same time, we serve large corporates, small grocery shops, and salaried individuals. We remain open to all, but given the current industry challenges with non-performing loans, we are growing our book cautiously, always prioritising depositor protection.’
Saddat outlined a two-phase strategy — two years of capacity building, followed by three years of accelerated business growth.
To achieve this, the bank is introducing several first-of-its-kind products and services.
For small businesses, it is launching SME 360, an all-in-one business suite offering not just financing but broader entrepreneurial support.
A programme called Startup Nest is being introduced as Bangladesh’s first bank-run accelerator for startups.
Community Bank is also piloting AI-based psychometric evaluations to assess small loan applicants, a step aimed at expanding access to credit for those without traditional collateral.
For corporates, the bank is preparing to roll out virtual account solutions and plug-and-play cash management services through partnerships with fintechs.
Its existing mobile app, Community Cash, already accounts for nearly half of monthly transactions, and a major upgrade is underway to improve user experience and functionality.
He highlighted that Community Bank’s non-performing loan ratio is among the lowest in the industry, supported by 100 per cent provisioning.
The bank consistently meets liquidity and profitability benchmarks and is not listed among any problem banks, which he said reflects strong governance.
Still, the wider banking sector is under strain.
Saddat admitted that the collapse of confidence caused by irregularities in some banks has hurt the entire industry.
‘When one bank faces a scandal, it affects the perception about all banks,’ he said. ‘This is why it is vital for all stakeholders — banks, regulators, and the media — to act responsibly in rebuilding public trust.’
He called NPLs a sector-wide challenge that cannot be solved by banks alone.
Faster loan recovery mechanisms, including more efficient judicial processes and special tribunals, are needed to reduce risks and restore discipline, he said.
Saddat underscored the importance of regulatory and policy support.
He hailed Bangladesh Bank’s recent circulars on governance and liquidity, but stressed that additional reforms are essential to sustain stability and growth.
Among them, he highlighted stronger recovery frameworks, clearer guidelines for digital banking and fintech integration, incentives for SME and startup financing, and stricter enforcement of governance standards.
