Over the past 26 years, Mutual Trust Bank PLC (MTB) has managed to live up to the name it carries, said Syed Mahbubur Rahman, managing director and CEO of the bank.

"There has never been a case where, for example, MTB gave Tk 9 when it promised Tk 10," Rahman said in an interview with The Daily Star on the occasion of its 26th founding anniversary. "In all these years, nothing abnormal has happened in the bank."

The MTB was granted a licence by the Bangladesh Bank on October 5, 1999, and started operations later that month. Now, the third-generation private commercial bank operates 122 branches, 53 sub-branches, 185 agent banking centres, 344 ATMs, including 31 cash recycling machines, eight air lounges, four foreign exchange booths, and more than 3,300 point-of-sale terminals across the country.

The bank provides real-time online banking services along with internet and SMS services to customers.

As it enters its 27th year, the bank is focusing on building a digitally empowered institution while maintaining its reputation for trust and good governance.

"Over the last 26 years, we have built a brand based on reliability, transparency, and service. As we move forward, we want to transform this trust into a more technology-driven, customer-focused banking experience," Rahman said.

He credited the board of directors for maintaining strong governance while encouraging innovation. "The board has always supported new ideas but also ensured compliance and discipline. That balance has helped us maintain stability in a challenging environment," he said.

He continued that the MTB has evolved from a traditional bank into a diversified financial institution with strong retail, SME, and corporate portfolios. "We are not only expanding in size but transforming in spirit."

Earlier this year, the bank went through a rebranding exercise, unveiling a new logo and colour scheme to reflect youth and dynamism. "We wanted to connect with younger customers who value speed, convenience, and digital access. At the same time, we retained our core promise of trust. The new look symbolises both continuity and change."

As of December 2024, the MTB's total deposits stood at Tk 33,187 crore, while loans and advances reached Tk 30,105 crore. The bank reported a consolidated profit of Tk 569.84 crore for the year ending December 31, 2024, a 10 percent increase from the previous year.

The MTB is among the few private banks that maintained a clean image amid turbulence in the sector, marred by money laundering and loan default. Rahman attributed this to its emphasis on compliance, risk management, and internal control. "We have always prioritised reputation over short-term gain."

Retail and SME financing remain central to the bank's growth strategy. Retail banking has expanded significantly in recent years, particularly in credit cards and home loans.

"We are now among the top banks in terms of credit card outstanding, and our home loan portfolio has grown sharply," Rahman said.

To enhance efficiency, the MTB has introduced a 48-hour home loan approval process and a pre-approved credit card system for eligible customers. "We want to offer simple, fast, and transparent retail solutions."

In SME banking, the bank aims to deepen its engagement with small entrepreneurs, especially in the manufacturing and service sectors.

"We are working with fintech partners and supply chain networks to reach micro and cottage enterprises that remain underserved by traditional banking," Rahman said.

The MTB is also exploring partnerships with technology firms to improve loan assessment, credit scoring, and monitoring. "We are focusing on structured and data-driven SME lending to reduce risk and improve outreach."

Despite weak private sector credit growth in recent months, the MTB continues to take a cautious lending approach. "We are not being aggressive at this point," Rahman said. "Investor sentiment is weak, and many are waiting for stability. We are lending selectively to sectors that are performing well."

The bank now prioritises pharmaceuticals, textiles, export-oriented industries, and renewable energy while keeping limited exposure to sectors under stress like real estate and construction. "Our philosophy is to grow responsibly. Aggressive expansion without proper due diligence can create future risks. We prefer sustainable profitability over short-term volume."

Although the banking sector continues to struggle with rising non-performing loans (NPLs), the MTB has managed to keep its ratio below the industry average. At the end of 2024, the bank's NPL stood at 6.95 percent of total lending. "We have strong early-warning systems and an experienced recovery team," Rahman said.

"We conduct quarterly stress tests and closely monitor large exposures. We do not allow concentration in a few borrowers. Our credit culture is built on discipline, accountability, and data."

He added that the bank's recovery process combines negotiation with legal action. "We work with clients to revive viable businesses but take strict measures when necessary. It's a balance between empathy and enforcement."

Deposit growth has remained steady as customers shift funds from weaker institutions. "People are looking for banks they can trust. Our reputation and service quality have helped attract new deposits," Rahman said.

Digital transformation is now central to the bank's strategy. Earlier this year, it launched MTB Neo, a next-generation digital banking platform offering integrated services through a mobile app. The system features an AI-based chatbot, automated call centre support, and future plans for voice-activated banking.

"Even without a digital bank licence, we want to deliver a fully digital experience," Rahman said.

The bank is also upgrading its core banking software and data analytics capabilities. "We are investing in predictive analytics and AI to improve customer experience, risk assessment, and fraud detection," said the CEO.

Customer expectations are changing rapidly, he added. "Banking is no longer about brick-and-mortar branches. It's about accessibility and relevance. We want to serve both digitally savvy youth and traditional customers who still value personal interaction."

According to Rahman, good governance remains a cornerstone of the MTB's operations. The board maintains oversight through active committees on audit, risk, and compliance. "Our directors are experienced professionals who ensure that every major decision passes through a proper governance filter."

He emphasised the importance of human capital development in sustaining success in the long term. "Technology can only go so far. The real strength of a bank lies in its people. We invest heavily in training, mentoring, and leadership development."

The bank has also focused on gender diversity and inclusion, with growing representation of women at managerial levels, he noted.

The MTB has integrated environmental, social, and governance (ESG) principles into its operations. It finances renewable energy projects, promotes paperless operations, and encourages green office practices. Recently, it launched a vocational training initiative under its CSR programme. The MTB Skill Development School offers courses in baking, graphic design, and digital marketing, targeting 1,200 trainees over three years. "Our goal is to help young people develop employable skills," Rahman said.

Meanwhile, it continues to support education, healthcare, and disaster-relief initiatives through partnerships with NGOs and community organisations.

Looking ahead, Rahman said the bank's priorities are to strengthen its capital base, enhance digital capabilities, and ensure consistent shareholder returns. "We may not always top the profit charts, but we want to be known as the most responsible bank," he said.

The CEO envisions a hybrid banking model combining physical presence with digital agility. "We want to be the bank that every generation can relate to — modern yet trustworthy," he said. "MTB's story is not just about banking; it's about building relationships and adapting to change without losing our core values."