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Chapter 1

City Bank PLC, established in 1983, is a leading private bank in Bangladesh that has transformed from a traditional credit-oriented institution to a comprehensive financial services provider. It offers both conventional and Shariah-based banking services, with a focus on digital transformation through its Citytouch app and partnerships for digital loans. The bank has a diverse ownership structure and collaborates with the International Finance Corporation to ensure adherence to international best practices in governance.

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Chapter 1

City Bank PLC, established in 1983, is a leading private bank in Bangladesh that has transformed from a traditional credit-oriented institution to a comprehensive financial services provider. It offers both conventional and Shariah-based banking services, with a focus on digital transformation through its Citytouch app and partnerships for digital loans. The bank has a diverse ownership structure and collaborates with the International Finance Corporation to ensure adherence to international best practices in governance.

Uploaded by

forman28159
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter-01

Introduction and Historical Background

City Bank PLC is a leader in Bangladesh's private banking industry. It was Founded on March 28,
1983. It is acknowledged as a First-Generation private sector bank. In more than forty years, the
bank has evolved from a conventional credit-oriented organization to a completely integrated
financial services provider.

In 2008, the bank experienced a significant reorganization and rebranding effort to conform to
global banking standards. At present, it operates as a leading entity in the credit card sector and is
regarded as a systemically significant bank in the Bangladeshi economy, being publicly traded on
the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE).

Nature of Operations

City Bank PLC functions with a diverse business model, offering an extensive array of financial
products and services. Its activities are divided into two main categories:

• Conventional Banking: The bank provides a wide range of interest-based products across
Retail, Corporate, and SME (Small and Medium Enterprise) sectors. It is the sole issuer
and acquirer of American Express (Amex) cards in Bangladesh, which serves as a core
competitive advantage.
• Shariah-based Banking: Under the brand "City Islamic," the bank provides a
comprehensive range of Islamic banking services. These operations are managed through
dedicated Islamic windows and are regulated by an independent Shariah Supervisory
Committee to ensure compliance with AAOIFI standards and Islamic law.

The bank’s operational strategy primarily focuses on Digital Transformation, which is led by its
main digital banking platform, “Citytouch” app, along with its recent entry into Digital Nano
Loans in partnership with mobile financial services.
Ownership Structure and Governance

The bank has a varied ownership framework, showcasing a combination of local entrepreneurial
efforts and global institutional funding. As of the latest annual report, the allocation of share
ownership is as detailed below:

Shareholder Category Shareholding Percentage


Sponsors / Directors 30.37%
Institutional Investors (Local) 19.77%
Foreign Investors 6.47%
General Public 43.39%

Strategic Partnership: An essential aspect of City Bank’s governance is its collaboration with
the International Finance Corporation (IFC), part of the World Bank Group. As a stakeholder, the
IFC offers technical support and guarantees that the bank follows international Best Practices in
Environmental, Social, and Governance (ESG) criteria.

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