Janata Bank
Janata Bank PLC is a state-owned commercial bank in Bangladesh, established in 1972 shortly after the country's independence from Pakistan, through the nationalization and merger of Eastern Banking Corporation and United Bank Limited under the Bangladesh Bank Order.[1][2]
Headquartered in Motijheel, Dhaka, it serves as the second-largest state-owned bank by deposits and assets, operating 929 branches including four overseas offices in the United Arab Emirates and Oman.[2][3]
The bank has focused on socio-economic development by extending credit to agriculture, industry, and small enterprises, with total assets exceeding 1.38 trillion Bangladeshi taka and deposits over 1.10 trillion taka as of recent financial reports.[4][2]
Restructured as a public limited company in 2007, it continues to provide conventional and Islamic banking services amid challenges typical of state-owned institutions, such as managing non-performing loans while contributing to national financial stability.[1][4]
History
Establishment and Early Years
Janata Bank Limited was established in 1972 as a state-owned commercial bank through the nationalization of the banking sector following Bangladesh's independence from Pakistan. It was formed under the Bangladesh Banks (Nationalisation) Order, 1972 (President's Order No. 27 of 1972), which transferred the assets, liabilities, and operations of branches in the former East Pakistan of Pakistani banks, primarily United Bank Limited and Union Bank Limited, to the new entity.[5][6] This restructuring aimed to consolidate banking services for post-war economic recovery and socio-economic development in the nascent nation.[7] As the second-largest state-owned commercial bank at inception, Janata Bank commenced operations with a network of branches inherited from its predecessors, focusing initially on deposit mobilization, credit extension to priority sectors like agriculture and small industries, and facilitating trade in a war-ravaged economy.[8] In its early years through the 1970s, the bank supported national reconstruction efforts by channeling funds toward rebuilding infrastructure and fostering industrial growth, operating under direct government oversight to align with state-led development policies.[9] By the late 1970s, it had expanded its role in rural banking and export financing, contributing to the stabilization of the financial system amid challenges such as inflation and resource scarcity.[10]Expansion and Restructuring
Janata Bank expanded its operations following its establishment in 1972, focusing on extending financial services to support Bangladesh's socio-economic development through a growing domestic and international network. By December 2023, the bank operated 929 branches, including 909 domestic branches categorized by grade (278 Grade-1, 212 Grade-2, 259 Grade-3, and 65 Grade-4) and 4 overseas branches in the United Arab Emirates.[11] This expansion included authorized dealer branches for foreign exchange, totaling 56 within Bangladesh, enabling broader trade finance and remittance services.[2] In the mid-2000s, the bank underwent modernization efforts under the Enterprise Growth and Bank Modernization Project (EGBMP), a World Bank-supported initiative launched in 2004 to enhance governance, operational efficiency, and capacity in state-owned enterprises including banks.[12] This project facilitated management restructuring, improved risk management practices, and aligned the bank with international banking standards, addressing inefficiencies in state-owned institutions.[13] A key restructuring occurred on November 15, 2007, when Janata Bank Limited was converted into Janata Bank PLC, a public limited company, following registration with the Registrar of Joint Stock Companies and Firms, with retrospective effect from July 1, 2007; Bangladesh Bank had issued the necessary license on May 31, 2007.[11] This corporate transformation aimed to improve accountability and operational flexibility while maintaining full government ownership, without altering its state-owned status.[11] Post-restructuring, the bank continued network expansion, including non-resident Bangladeshi (NRB) banking booths beyond Dhaka by 2010 and recent openings such as its first sub-branch in Kendua upazila, Netrokona district, on October 24, 2025, to serve remote areas and boost deposit mobilization, which surpassed Tk 1.25 lakh crore by September 2025.[14][15][16]Key Milestones Post-2000
In 2000, Janata Bank's deposits surpassed 100 billion Bangladeshi taka (BDT) for the first time, marking a significant growth milestone amid expanding national economic activity.[9] The bank continued to receive recognition for operational excellence, earning the "Bank of the Year" award in Bangladesh from The Banker magazine in 2001, 2002, 2003, 2004, 2005, and 2011, reflecting consistent performance in a competitive state-owned sector.[9] A pivotal restructuring occurred on November 15, 2007, when Janata Bank was converted into a public limited company under the name Janata Bank PLC and registered with the Joint Stock Companies and Firms, enhancing its corporate governance framework while maintaining state ownership.[1] This corporatization aimed to improve efficiency and accountability, aligning with broader reforms in Bangladesh's public banking sector, though the bank retained its role as the second-largest state-owned commercial entity.[17] Post-2007, the bank emphasized modernization, including advancements in digital services such as internet banking rollout and ongoing digital transformation initiatives to meet evolving customer demands and regulatory standards from Bangladesh Bank.[18] By September 2025, deposits reached a new high, exceeding 1.25 trillion BDT, underscoring sustained asset growth despite challenges like non-performing loans in state-owned banks.[19]Organizational Structure and Governance
Board of Directors and Leadership
The Board of Directors of Janata Bank PLC, a state-owned commercial bank under the Ministry of Finance of Bangladesh, is appointed by the government and holds ultimate responsibility for policy formulation, risk oversight, and strategic guidance. Composed primarily of government officials, retired bankers, and nominees from regulatory bodies, the board ensures alignment with national financial objectives while maintaining operational independence in execution. Appointments reflect political and administrative priorities, with terms typically tied to bureaucratic tenures or government directives, leading to periodic reconstitutions.[20] As of October 2025, Md. Fazlur Rahman serves as Chairman, providing leadership in key decisions such as deposit mobilization targets and branch expansions.[21] The Managing Director and Chief Executive Officer is Md. Mozibur Rahman, a career banker responsible for day-to-day operations, including training programs and performance metrics; he assumed the role amid efforts to enhance digital services and asset recovery.[22][23] Key directors include Badre Munir Firdaus, an Additional Secretary representing governmental oversight; Dr. Md. Abdus Sabur; and Abdul Majid Sheikh, a former Deputy Managing Director contributing banking expertise. In early 2025, the board saw additions of AKM Khabir Uddin Chowdhury, Abdul Awal Sarkar, and Md. Shahadat Hossain, strengthening administrative and professional input.[20][24][25] These members participate in subcommittees, such as the Executive Committee chaired by the Chairman, focusing on audit, risk, and remuneration matters.[26]Management and Operational Hierarchy
The operational hierarchy of Janata Bank PLC is led by the Managing Director and Chief Executive Officer (MD & CEO), who executes the strategic directives of the Board of Directors and manages daily banking activities across the institution's network. As of November 2024, Md. Mazibur Rahman holds this position, appointed after serving in senior roles within the banking sector, including at Janata Capital and Investment Limited.[27] [28] Reporting to the MD & CEO are Deputy Managing Directors (DMDs), who head major operational divisions such as credit risk, international trade finance, SME banking, and corporate services; these roles coordinate policy implementation and resource allocation.[29] General Managers (GMs) then supervise specialized head office departments, including treasury, human resources, internal control and compliance, and information technology, ensuring functional oversight and support to the branch network.[2] At the regional and branch levels, the hierarchy descends through Deputy General Managers (DGMs) and Assistant General Managers (AGMs) for larger facilities and zones, followed by Senior Vice Presidents (SVPs), Vice Presidents (VPs), and lower cadres such as Senior Principal Officers (SPOs), Principal Officers (POs), Senior Officers (SOs), and Officers (Os), who manage customer transactions, loan processing, and deposit operations.[30] This tiered structure, comprising over 11,000 employees, facilitates decentralized execution while maintaining centralized control from the Motijheel headquarters in Dhaka, with 929 domestic branches and 4 overseas offices as of December 2024.[31] [11]Products and Services
Core Banking Services
Janata Bank provides core banking services focused on deposit mobilization and credit extension to individuals, businesses, and rural sectors in Bangladesh. These services form the foundation of its operations as a state-owned commercial bank, enabling customers to save, invest, and access financing for personal and economic activities. The bank utilizes the Temenos T-24 core banking software, upgraded in recent years to enhance transaction processing and account management across its network.[32] Deposit products include current accounts, which are non-interest-bearing and designed for high-volume transactions, requiring documentation such as two passport-sized photos, national ID photocopy, and TIN certificate for account opening.[33] Savings deposits offer variable interest at 4% annually, with similar opening requirements, providing liquidity and modest returns for individual savers.[34] Fixed or term deposits yield higher rates, such as 8.50% for tenures of three to six months, accommodating minimum investments and allowing premature withdrawal under specified conditions.[35] Special notice deposits cater to institutional clients with tiered rates from 4.00% for balances under 1 crore taka to 6.00% or more for larger sums exceeding 500 crore taka, requiring seven days' notice for withdrawal.[36] Scheme-based deposits encourage long-term savings through structured plans. The five-year monthly deposit scheme accepts installments from 3,000 to 20,000 taka at 8.5% simple annual interest, variable per central bank circulars.[37] The New Gen. Double Benefit Scheme involves a one-time minimum deposit of 100,000 taka or multiples, offering 11.23% effective yield without monthly installments.[38] Loan products emphasize retail, consumer, and working capital financing at variable rates set by Bangladesh Bank directives. Personal loans provide up to eight-year tenures at 13% interest, repayable in monthly installments, for salaried individuals or pensioners with collateral or guarantors.[39] Consumer financing supports purchases of household durables over two to four years at 13%, requiring income proof and security.[40] Working capital loans for businesses have no upper limit, with quarterly or semi-annual repayments at 13%, assessed based on financial statements and collateral.[41] Specialized loans start from 50,000 taka at 12% for small traders holding valid licenses, while rural credit extends up to 500,000 taka at 12% to low-income farmers and entrepreneurs for agriculture and micro-enterprises.[42][43] These services prioritize verifiable eligibility, collateral, and repayment capacity to mitigate default risks.Specialized Financial Products
Janata Bank provides specialized financial products targeted at key economic sectors including small and medium enterprises (SMEs), agriculture, rural development, and export-oriented activities to foster growth in Bangladesh's economy.[44] These offerings include concessional lending rates for priority areas, such as 9% for crop loans and 10% for agricultural term loans, as outlined in the bank's declared lending interest rates effective April 9, 2025.[45] SME financing emphasizes support for poverty alleviation through loans to economically disadvantaged borrowers, with sector-specific rates ranging from 11% to 13% for small and medium industries.[45] In agriculture, the bank extends crop production loans repayable within three months post-harvest at a variable rate of 12%, per directive 1263/24 dated June 2, 2024.[46] Rural credit programs target low-income individuals in skill-based professions, offering up to 500,000 taka per borrower at 12% interest to promote income-generating activities.[43] These initiatives align with national priorities for rural and agricultural development, though recovery challenges in state-owned banks like Janata have been noted in sector analyses.[47] For international trade, export finance includes pre-shipment financing, negotiation of export documents, advising on export letters of credit, and confirmation services to facilitate exporters' cash flow needs.[48] Import finance complements this with post-import financing options, supporting trade volumes that reached significant levels in recent fiscal years, though detailed performance metrics vary annually.[49] Specialized loans for businesses, starting from a minimum of 50,000 taka without collateral in some cases, further cater to trade license holders at 12% interest under the same June 2024 directive.[42] These products are subject to eligibility criteria like business viability and government industrial policy compliance.[42]Digital and Innovative Offerings
Janata Bank PLC operates a centralized real-time online banking network, the largest in Bangladesh, interconnecting all its branches to facilitate seamless transactions such as fund transfers via BEFTN and RTGS, ATM services, and automated challan systems.[50] This infrastructure supports features including SMS alerts for account activities and national savings scheme management, accessible through the bank's internet banking portal.[50] The eJanata Mobile App, available on iOS and Android platforms, extends these services to mobile users, enabling balance inquiries, intra-bank transfers, and cheque book requests without branch visits.[51] [52] Launched as part of the bank's digitalization push amid the COVID-19 pandemic, the app emphasizes user convenience with secure authentication, though adoption has been gradual in a market dominated by traditional banking.[53] In September 2025, Janata Bank partnered with fintech provider SSL Wireless to integrate a digital biller payment service into its online banking and eJanata app, allowing customers to pay utilities, mobile recharges, and other bills directly from smartphones.[54] [55] This initiative builds on existing utility bill collection capabilities, aiming to enhance accessibility in Bangladesh's evolving digital financial ecosystem, where state-owned banks like Janata lag behind private competitors in advanced features such as AI-driven personalization or open banking APIs.[56]Network and Operations
Domestic Branch Network
Janata Bank PLC operates a widespread domestic branch network consisting of 925 branches distributed across all 64 districts of Bangladesh, ensuring accessibility in both urban centers and rural areas.[2] This extensive coverage supports the bank's role as a state-owned entity focused on serving government transactions, agricultural financing, and general commercial banking needs nationwide.[2] The branch structure is organized under multiple divisional offices aligned with Bangladesh's administrative divisions, including separate offices for Dhaka North and Dhaka South to manage the capital's high volume, as well as offices in Chittagong, Khulna, and other regions.[57][58][59] Oversight is provided by 14 head office divisions handling specialized functions such as credit, international trade, and operations.[2] Within this network, 56 branches function as Authorized Dealers (AD) for foreign exchange transactions inside Bangladesh, facilitating import-export activities and remittances.[2] Many branches, particularly corporate and major urban ones, are equipped with SWIFT codes to enable secure international correspondence and payments, enhancing operational efficiency for trade-related services.[60] The network's rural branches emphasize small-scale lending and deposit mobilization, contributing to financial inclusion in underserved areas, though urban concentrations remain higher in districts like Dhaka and Chittagong.[61]International Presence and Subsidiaries
Janata Bank operates four overseas branches, all situated in the United Arab Emirates, to support remittance inflows and banking services for Bangladeshi expatriates in the Gulf. These include branches in Abu Dhabi, Dubai, Al Ain, and Sharjah, established to handle foreign exchange transactions, taka remittances, and deposit accounts.[2][62] The Abu Dhabi branch, for instance, is located at a central address with SWIFT code JANBAEA ABUH, facilitating direct transfers via correspondent banking networks.[62] This presence aligns with the bank's role in channeling funds from labor-exporting destinations, where UAE hosts a significant portion of Bangladesh's overseas workforce.[63] Beyond branches, Janata Bank's international subsidiaries are limited to Janata Exchange Company srl in Italy, which maintains offices in Rome (at Piazza Vescovio 31) and Milan. This entity focuses on currency exchange and remittance services for Bangladeshi migrants in Europe, enabling efficient transfers back to Bangladesh.[64] The Italian operations, however, have reported cumulative losses exceeding Tk 27 crore over four years as of 2025, prompting requests for regulatory adjustments that were denied by Bangladesh Bank.[65] No other subsidiaries or representative offices abroad are maintained, reflecting a targeted rather than expansive global footprint.[64]Financial Performance
Historical Financial Trends
Janata Bank, nationalized in 1972 following the independence of Bangladesh, initially expanded its asset base through state-directed lending, with total deposits growing from modest levels in the 1970s to over Tk 100,000 crore by the 2010s amid economic liberalization. However, profitability has been inconsistent, hampered by political interference in loan approvals and inadequate risk management, leading to recurrent provisioning for non-performing assets.[66][47] Early trends showed deposit and advance growth, with total deposits rising steadily from Tk 10,000 crore in 2009 to higher levels by 2012, but net profit turned negative in 2012 due to surging non-performing loans (NPLs) exceeding manageable thresholds.[67][47] NPL ratios trended upward over the subsequent decade, reflecting lax credit standards and exposure to politically connected borrowers, with classified loans reaching 25.42% of total advances by the late 2010s.[4][68]| Year | Profit After Tax (Tk crore) | Key Notes |
|---|---|---|
| 2012 | Negative | High NPLs drove losses; upward NPL trend began.[47][68] |
| 2019 | 553 | Recovery phase post-losses.[4] |
| 2020 | 1,133 | Continued improvement.[4] |
| 2021 | 3,003 | Peak profitability amid economic rebound.[4][69] |
| 2022 | 143 | Sharp decline due to rising provisions.[4] |
| 2023 | -3,066 | Massive loss from defaults on large exposures (e.g., Beximco, S Alam groups); NPLs >61% of portfolio.[70][71] |
Recent Results and Key Metrics
In fiscal year 2024, Janata Bank PLC recorded a consolidated net loss of Tk 3,066 crore, reversing the Tk 62 crore net profit reported for 2023.[73][74][75] This downturn stemmed primarily from elevated deposit costs, a decline in net interest income, and escalating provisions for non-performing loans (NPLs), which highlighted ongoing asset quality challenges in the state-owned lender.[73][74] Key balance sheet metrics as of December 31, 2024, showed total loans and advances at Tk 100,794 crore, with classified loans reaching Tk 68,000 crore, indicating a high NPL ratio exceeding 67%.[76][77] Total assets stood at approximately Tk 147,137 crore, while deposits totaled Tk 109,810 crore, reflecting modest growth amid the profitability slump.[78] The bank's required provisions for loans aggregated Tk 53,383 crore, underscoring the scale of potential credit impairments.[76]| Metric | 2023 (Tk crore) | 2024 (Tk crore) |
|---|---|---|
| Net Profit/Loss | 62 | -3,066 |
| Total Loans & Advances | Not specified | 100,794 |
| Classified Loans | Not specified | 68,000 |
| Total Assets | ~138,706 | ~147,137 |
| Total Deposits | Not specified | 109,810 |