Standard Chartered Bank plans to launch a number of Shariah-based products to strengthen its Islamic banking services in Bangladesh, officials said yesterday.
As part of the move, the bank yesterday rolled out a home loan scheme titled "Saadiq Home Finance" in Dhaka.
“We are willing to offer more Islamic banking solutions to Bangladesh customers to cater to their needs,” Afaq Khan, chief executive officer of Standard Chartered Saadiq, told reporters in a news briefing.
StanChart's Islamic banking is called "Saadiq".
“We are committed to bringing new products to Bangladesh. It is one of the few markets where we want to grow," Khan said.
Kamran Sunjoy Rahman, head of StanChart's Islamic banking for Bangladesh, said the new Saadiq home finance is part of a series of products to be launched by next year.
“We will roll out more financial solutions to help our customers in their financial management planning,” Rahman said.
He said the bank's next plan is to launch Shariah-based business account for small and medium enterprises.
“Also, we are planning to launch Islamic investment banking,” he added.
On the new products, Khan said: “Our product strategy has always been a truly customer-centric approach. The launch of new products depends on the customers' need.”
Standard Chartered Bangladesh has a wide variety of Islamic financial products, such as savings and current accounts, fixed deposit, credit card, personal and auto finance.
Officials said the new Saadiq home finance would provide potential as well as existing homeowners with a variety of choices in property purchases and renovation.
The maximum limit of the loan will be Tk 75 lakh. The scheme will be based on the concept of "Hire-Purchase under Shirkatul Melk".
In Shirkatul Melk, co-ownership is formed between two or more persons who share the ownership of a tangible asset in an agreed proportion. One of these co-owners undertakes to buy in periodic installment of the proportionate share of the other co-owners until the full ownership of the asset.
Standard Chartered Islamic Banking in Bangladesh was launched in 2004 and has been growing significantly in the last two years.
Sandeep Bose, head of StanChart's consumer banking in Bangladesh, Nepal and Sri Lanka, was also present at the briefing.