Tojiksodirotbank, created as a branch of the USSR’s Vnesheconombank, celebrated its 20th anniversary this year. Over the past two decades, the bank has grown from a small office to become Tajikistan’s significant backbone bank. It has a 30% share of the country’s banking capital, 20% of the country’s banking assets, 20.5% of total loans, and 18.7% of total deposits.
Tojiksodirotbank is actively involved in economic and social development in all regions of the country.
Strong growth in assets, capital and loans
The bank was founded on a very solid financial base and its assets have grown from €34.2 million (TJS 198 million) in 2006 to €305 million (TJS 1.77 billion) as of July 2012, with a very impressive 50% growth in assets between 2010 and 2011. Tojiksodirotbank’s share capital has also increased significantly, from €6 million (TJS 35.3 million) in 2006 to €76.7 million (TJS 444 million) at the end of the first half of 2012, exceeding the norm by a factor of 15.
Credit transactions are an important part of Tojiksodirotbank’s activities. The bank’s loan portfolio makes up 55% to 60% of total assets and grew from €14.6 million (TJS 85 million) in 2006 to €157.2 million (TJS 910 million) in 2012, a six-fold increase. In 2011, Tojiksodirotbank increased its lending to small and mediumsized enterprises, and its total loans last year reached €148.3 million (TJS 858.3 million), an increase of 92% over 2010.
During its first 15 years of operations, Tojiksodirotbank opened nine branches. Over the past five years, it has significantly increased its footprint and now has 65 branches all over the country. Given the scale of its business development and market presence, the bank is well aware of its responsibility to the state and society. Its main priority is to provide equal opportunities for customers to receive affordable, high-quality banking services.
Branch network development
The bank launched its Branch Network programme – a kind of ‘bank card’ for its clients – three years ago as a crucial element in its modernisation campaign. Tojiksodirotbank has upgraded all its branches and added 40 modern new buildings to its network. All branches are in the same style to reinforce the bank’s brand identity.
Tojiksodirotbank is actively involved in economic and social development in all regions of the country and supports a number of economic and charitable initiatives. In addition, the bank has opened 80% of its branches in rural areas. Tojiksodirotbank’s 2012 strategy includes the intensive introduction of banking service points featuring open spaces, modern design and contemporary style. The bank has also launched Tajikistan’s only mobile bank with the help of Germany’s Sparkassenstiftung. This service is designed for residents in rural areas who would otherwise have little or no access to banking.
In 2011, Tojiksodirotbank created Tajikistan’s first banking group when it acquired JSC Development Bank of Tajikistan, which has four branches and ten banking centres. Tojiksodirotbank has also set up a modern training centre with the support of Sparkassenstiftung.
This year Tojiksodirotbank strengthened its position as an operator on the domestic market and as an active participant in investment programmes. It continues its large-scale optimisations of its operational functions, and its ‘Everything for the Customer’ focus on service has helped make Tojiksodirotbank the preferred bank for clients all over the country. The bank now serves more than 175,000 customers.
Tajikistan’s first bank to become a principal member of international payment System VISA
Tojiksodirotbank is known for innovation and in 2003 it became the first bank in Tajikistan to offer VISA cards through VISA’s international payment system. Each year, the bank sets a high goal in terms of card issuance and returns, and its VISA cards in service have grown from a total of 3,300 cards five years ago to 136,000 cards today. Tojiksodirotbank also offers MasterCards and is a principal member of the international MasterCard network. The bank now has a 27% share of Tajikistan’s card market.
Investing in human capital
Tojiksodirotbank has boosted its number of employees from 240 to 2,200 over the past five years, placing a high priority on hiring women in managerial posts. All employees are trained in the bank’s in-house centre. In an on-going investment in human capital, the bank aims to launch a customerloyalty programme and a youth programme by 2014.
This year Tojiksodirotbank is adding even more branches and ATM s to its network. The bank will continue to expand its infrastructure throughout Tajikistan as well as opening branches, subsidiaries and representative offices abroad. Tojiksodirotbank also aims to establish new partnerships with local and foreign banks; to increase its capital, assets and customer base; and to enter CIS markets and China. Other projects for the forward-thinking bank are to host a conference on banking, to develop a benefits package for its employees, and to participate in the creation of Islamic mortgage services. Tojiksodirotbank will remain a benchmark in Tajikistan’s banking sector.