As banks across emerging markets navigate economic uncertainty and rising competition, many are looking beyond traditional corporate lending to drive future growth. For NCC Bank, the next phase of its strategy centres on digital transformation, stronger risk management and expanding access to SME, retail and agricultural finance. The Bangladesh-based lender is also increasing investment in AI, digital banking capabilities and sustainable finance as it seeks to build a more diversified and resilient business model.
NCC Bank has outlined plans to accelerate growth through a combination of digital innovation, SME expansion and enhanced governance, according to Managing Director and CEO M Shamsul Arefin.
The bank, which transitioned from an investment company to a commercial bank more than three decades ago, is now placing greater emphasis on small and medium-sized enterprises, retail banking and agricultural lending while maintaining its presence in corporate and trade finance segments.
Digital transformation remains a key strategic priority. NCC Bank plans to continue investing in mobile banking, QR payments, digital lending, fintech integrations, cybersecurity, automation and data analytics. The lender is also exploring the use of artificial intelligence across customer behaviour analysis, fraud detection, predictive analytics and credit risk monitoring.
AI is expected to play an increasingly important role in strengthening portfolio oversight, enhancing early warning systems and supporting risk management functions.
Alongside its technology investments, the bank is expanding its focus on sustainable finance, including renewable energy projects and environmentally responsible investments.
NCC Bank also reported improvements in asset quality despite challenging economic conditions. The bank reduced its non-performing loan ratio to 4.12% in 2025 from 7.32% a year earlier, supported by stronger recovery efforts, tighter credit controls and enhanced portfolio supervision.
Financial performance remained positive, with deposits increasing by nearly 17%, advances growing around 10% and net profit rising to Tk 476 crore during the period.
Looking ahead, the bank plans to continue strengthening governance, credit discipline and risk management while positioning itself as a digitally enabled, customer-focused financial institution.
What this means for the industry
- Regional banks are increasingly turning to AI and digital banking to improve efficiency, risk management and customer engagement.
- SME and retail banking are regaining strategic importance as institutions look to diversify revenue streams beyond large corporate lending.
- Asset quality remains a key priority, with banks investing heavily in analytics, monitoring and early warning systems.
- Sustainable finance is becoming part of mainstream banking strategy, rather than a standalone ESG initiative.
