National Credit and Commerce (NCC) Bank PLC has formally commenced preparations to transition its operations from a conventional commercial framework into a fully fledged Sharia-compliant Islamic bank. As part of this strategic pivot, the private sector lender has already converted four of its branches into full-fledged Islamic banking outlets and is aggressively expanding its Sharia-compliant windows across its nationwide network.

The bank aims to complete the comprehensive transformation within the coming year. To facilitate this shift, NCC Bank has submitted its operational roadmap, along with necessary compliance documentation, to the central bank, Bangladesh Bank, for regulatory evaluation and approval. Following similar trajectories set by standard industry predecessors—such as Standard Bank and NRB Global Bank, which rebranded as Standard Islamic Bank and Global Islamic Bank respectively upon conversion—NCC Bank is also expected to undergo a corporate renaming process once final approval is granted.

Nurun Nawaz, Chairman of NCC Bank, confirmed the financial institution’s direction, noting that the board and management are meticulously aligning operations with all regulatory guidelines set by Bangladesh Bank. He expressed confidence that the bank would successfully achieve full Islamic banking status by next year.

To support this structural shift, the bank has prioritised human resource development and capacity building. A total of 363 officials have undergone an intensive six-day training programme conducted by the Bangladesh Institute of Islamic Finance (BIIF). Furthermore, roughly 1,200 staff members across various tiers have received specialized training via hybrid physical and online modules, with plans underway to train the bank’s entire workforce.

Market dynamics and central bank regulatory frameworks have significantly driven the appeal of Sharia-compliant banking in Bangladesh. Beyond growing consumer demand for interest-free financial products, Islamic banks benefit from more favorable statutory reserve requirements. While conventional banks must maintain a Statutory Liquidity Reserve (SLR) and Cash Reserve Ratio (CRR) requirement totaling 17 per cent with the central bank, Islamic banks are required to reserve only 9.5 per cent. This regulatory concession allows Sharia-compliant institutions greater liquidity to deploy into investment portfolios.

According to financial disclosures submitted to the central bank, NCC Bank’s Islamic banking operations have already gathered momentum:

• Total deposits under its Islamic banking division have reached 1,437 crore BDT.

• The bank holds investments in sovereign and corporate Sukuk bonds amounting to 448 crore BDT.

• A further investment clearance of 800 crore BDT is currently awaiting final regulatory approval.

The bank’s journey into Islamic finance began on 20 November 2022 with the launch of its Islamic Banking Gulshan Branch. Expansion continued with the conversion of the Muradpur branch in Chattogram on 20 March 2025, followed by the Feni and Thakurgaon branches on 29 December 2025. Between March and May 2025, the bank also established Islamic banking windows across 32 conventional branches.

In September, NCC Bank formally requested permission from Bangladesh Bank to open Islamic banking windows across an additional 62 conventional branches, intending to progressively convert them into full Islamic service points. Responding to the proposal, the central bank has granted authorization to establish Islamic windows in 40 of those requested branches, signaling strong regulatory backing for the bank’s ongoing transition.