Md. Ali Hossain Prodhania is a seasoned and visionary banker in Bangladesh’s banking sector, with over 35 years of professional experience. Known for his dedication, strategic foresight, and administrative acumen, he has established himself not only as an efficient administrator but also as a mentor, researcher, and thought leader. Through his personal expertise in banking education, research, and training, he continues to contribute to nurturing the next generation of professionals in the country.
On March 12, 2025, appointed by Bangladesh Bank, Md. Ali Hossain Prodhania assumed responsibility as the Independent Director and Chairman of NRBC Bank PLC. His appointment is seen not merely as an administrative reshuffle but as the beginning of a new directive for the country’s banking sector.
Previously, during his tenure as Managing Director of Bangladesh Krishi Bank, Prodhania spearheaded fundamental reforms that enhanced transparency, modern automation, increased remittance inflow, and significantly reduced non-performing loans, transforming the institution into an effective financial body.
As Chairman of NRBC Bank, he is now focusing on corporate governance, ethical standards, and regulatory banking practices. His visionary leadership is expected to play a crucial role in steering the bank out of its current challenges.
Addressing Irregularities and Restoring Governance
In an exclusive interview with poet, journalist, and media personality Raju Alim, Md. Ali Hossain Prodhania discussed the present state of NRBC Bank and its future strategies. Speaking on the bank’s non-performing loans (NPLs) and prevailing banking irregularities, he stated:
“Since its inception, NRBC Bank has never defaulted on maintaining its Statutory Liquidity Reserve (SLR) and Cash Reserve Ratio (CRR), not even for a single day. Currently, the bank maintains a surplus liquidity of BDT 4,000 crore within a balance sheet of BDT 20,000 crore. Corruption has indeed occurred. Otherwise, why would the previous board be dissolved? There were logical reasons behind it. The core agenda of Bangladesh Bank was to address the lack of corporate governance. That’s precisely why we have been assigned here.”
He emphasized that the bank is actively identifying and addressing areas of irregularities. “It’s too early to claim that corporate governance has been fully restored, but we are working on pinpointing the gaps and fixing them appropriately. A forensic audit is also underway, which will provide a conclusive assessment of where governance failures occurred. We expect this audit to be completed in two months.”
A Different Case from Other Banks
Prodhania pointed out that NRBC Bank’s situation is fundamentally different from other banks that faced severe liquidity crises and widespread fake name (proxy) lending. “NRBC Bank still holds a liquidity surplus. Asset quality, compared to others, has been better. The percentage of classified loans was around 5% last year, which has now risen to about 17% as per Bangladesh Bank’s recent audit. After the Asset Quality Review (AQR), this figure might increase to 20-25%. However, without the forensic audit’s findings, we cannot conclude anything definitively.”
He noted the administrative vacuum NRBC Bank had faced: “The bank operated for an entire year without a full-time Managing Director, which is unacceptable for a commercial bank. Since March, we have been able to appoint a competent MD, Dr. Touhidul Alam Khan, thanks to Bangladesh Bank’s approval. With his leadership, we are optimistic about overcoming existing challenges.”
On Allegations of Embezzlement and Fund Laundering
Regarding allegations of embezzlement and fund laundering, Prodhania said, “Until I have concrete documentation in hand, I cannot make a conclusive statement. However, if asset quality deteriorates significantly compared to last year, it indicates major problems. A forensic audit will reveal the true extent of any malpractice.”
He criticized past practices across the banking sector: “What happened in the last 15 years with fake name loans and looting of hundreds of thousands of crores is unprecedented globally. Withdrawals made on paper alone, such activities, are utterly condemnable and catastrophic for any economy. The agencies responsible must ensure these perpetrators are brought to justice. To regain public trust, accountability is essential, and that process has already begun.”
Future of NRBC’s Non-Performing Loans
Prodhania remains cautiously optimistic: “I believe the bank’s NPLs will eventually reach a sustainable level. However, I will refrain from making any definitive comments until the AQR and an independent audit review are completed.”
Current Status and Operational Observations
Sharing his observations from four months of managing the bank, he remarked, “NRBC Bank’s situation cannot be directly compared with many other banks. This institution is navigating through a unique context. Certain individuals, whose names are often mentioned, would not have been placed on the board if there weren’t serious concerns about past activities. Our primary responsibility is to identify irregularities, correct them, and ensure such misdeeds do not recur.”
Cooperation from Bangladesh Bank and Regulatory Frameworks
Prodhania praised Bangladesh Bank’s active supervision: “The strict imposition of regulatory frameworks and the introduction of ‘Risk-Based Supervision’ are landmark steps. We are receiving continuous guidance and support from the regulators. Their proactive stance in restoring public confidence is highly commendable.”
Marketing, Branding & Branch Expansion
On NRBC Bank’s branding and marketing efforts, he commented, “We are present in both digital and print media, promoting our products, from credit cards to remittance services. However, I feel the rapid branch expansion lacked structured planning and could have been more strategically executed.”
Export Import Performance & Remittance Strategy
He stated that NRBC Bank currently ranks among the top banks in the country for export and import operations, with a target of BDT 7,000 crore in exports for the current fiscal year.
However, in remittance collection, the bank lags behind. “Given our extensive branch and network presence, our remittance inflow should be much stronger. At Krishi Bank, we enhanced remittance significantly by building relationships with foreign agents. After joining NRBC, we have held meetings with all major remittance companies and aggregators to strengthen this channel. I am hopeful that within a year, we will see visible progress in remittance inflows.”
