Eghtesad Novin Bank at a Glance

Dr. Jalal Rasoulof, Managing Director of EN Bank

Five years ago, the history of banking and monetary system of the Islamic Republic of Iran underwent a major breakthrough after victory of the 1979 Islamic Revolution and more than two decades of state-run banking. EN Bank obtained a license from the Central Bank of Iran following promulgation of the law for the establishment of non-state-owned bank.

The bank commenced its operation at a time when due to ambiguities surrounding Article 44 of the Constitution as well as various economic and social viewpoints of that time, success of private banks was seriously in question.

Fortunately, before long, five other private banks were launched after issuance of permits by concerned authorities and did their best to bring about considerable development in Iran’s modern banking.

Today, Eghtesad Novin Bank along with five other private banks plays an effective and important role in growth and prosperity of the banking and related industries and has helped domestic economy flourish.

This achievement was realized in a short period of time and under a competitive atmosphere where state-run banks had been working with a background of more than 80 years.

Eghtesad Novin Bank started operation on August 4, 2001. Initially capitalized at 250 billion rials, I am happy to announce that paid-up capital will be increased to reach 2,000 billion rials in less than two month.

The bank’s shareholders are now about 150 judicial and 10,000 real personas and trust the bank’s management to such an extent that the bank is considering an ambitious plan to open 180 branches by the end of the Iranian calendar year 1385 (ending March 20, 2007). I also proudly announce that the 46th branch of the bank was inaugurated at Tehran’s Towhid Square in late July.

It should be noted that Eghtesad Novin Bank is planning to increase the volume of credit facility for various economic sector from 10 billion rials at the beginning of the current Iranian calendar year (started March 21, 2006) to about 30,000 billion rials by the end of the year to meet a large part of financial requirements of production, industrial and entrepreneurial entities during the current Iranian calendar year.

In parallel to those developments, Eghtesad Novin Bank intends to diversify its revenue sources. Establishment of subsidiary companies including investment, leasing, insurance, foreign exchange services companies as well as initiating electronic payments and Salam Mehr Communications Company, which works round the clock to meet the needs of the bank’s customers, are but few examples of the banking services.

Also, diversity of products as well as rendering modern banking services both in rials and foreign exchange, development of the bank outside the country, and planning to reduce cost of money are major plans to be implemented by the bank in the near future.

Eghtesad Novin Bank has made major breakthroughs in the field of banking in parallel to growth of modern communication and information technologies; so that, remote banking services such as Internet banking, telephone banking, cell phone banking, as well as electronic system of payments with the highest safety and in the shortest possible time are indispensable components and among priorities of the bank.

Therefore, Eghtesad Novin Bank intends to encourage virtual banking despite limitations facing electronic banking by establishing 100,000 points of sale, installing 2,000 automated teller machines, opening three banking service kiosks, and issuing more than 3 million smart cards before the end of the Iranian calendar year, 1387 (2008-09).

It should be noted that the bank has succeeded to realize about 35 percent of promised profits for the first four months of the year on the basis of 2,000 billion rials of new capital that has been added to the bank’s initial capital. This will ensure stockholders and those who are hesitant about purchasing the bank’s shares to become more actively involved in banking activities.

The employees and management of Eghtesad Novin Bank hope that they will be good trustees for the first private bank of the Islamic Republic of Iran and they will do their best to bring more excellence to the bank’s operations.