ABOUT MOB
Myanmar Oriental Bank Limited was incorporated as a private limited bank under the Financial Institutions of Myanmar Law and started its operations on 18th November 1993. Its founding members were prominent bankers retired from state-owned banks, family members holding most shares, their close friends, and relatives from the business circle.
Over the past 30 years, the bank has played an important role with stability and success of domestic banking in Myanmar by contributing its efficient and reliable banking services and promoting financial intermediation in the country. The bank accepts foreign currencies (USD, EUR, SGD, THB, CNY) as current accounts and Myanmar Kyat as Current, Call, Savings, and Fixed deposits within its present banking network of 48 branches across the country. In addition, the bank also provides banking facilities and other financial assistance to its customers in the form of commercial loans, trustee, remittance services, and mobile banking services.
Upon approval from the Central Bank of Myanmar, the bank was among the first few selected financial institutions that were allowed to deal in foreign currencies and international banking. It was among the first batch of six private banks to be permitted to open currency exchange counters in the country. The bank has now opened 20 currency exchange counters in the commercial cities of Yangon and other business hub areas. As a leading member of the Myanmar Payment Union, the bank has introduced ATM and POS debit card and credit card facilities for the promotion of electronic payment systems in the country. The bank has developed an overseas network by establishing corresponding banking relationships with 29 banks in local and 57 banks in worldwide. The bank has also signed a partnership agreement with Western Union through which customers could transfer funds using its affiliated network from/to over a hundred countries from/to the bank.
Apart from its core banking business, MOB established the Oriental Leasing Company Limited (OLCL), as a subsidiary, extending financial assistance to its customers in acquiring their household and other durable consumer items. The bank owns 99% of the company’s share capital.
PRINCIPAL BUSINESS ACTIVITIES
Deposit taking in the forms of Current, Fixed, Saving, and Call deposit The bank offers an interest rate of 8% p.a. on Saving deposit (Cash A/C), 8% p.a. on 30 Days, 9.2% p.a. on 90 Days, 9.4% p.a. on 180 Days, 9.3% p.a. on 270 Days and 9.5% p.a. on 365 Days Fixed deposit and 6% p.a. on Call deposit (Cash A/C) daily balance. The bank does not allow any interest on current deposits. By the end of FY 2023-2024, the amount of deposit reached MMK 357 billion. The bank also offers new saving products, Su Boo, Anargat, and Anyeinsar. For Su Boo and Anargat, the bank offers the interest rates of 6.25% p.a. to 7% p.a. For Anyeinsar, the interest rates are 7% p.a. and 8% p.a. on deposit amount.
University Education Saving Scheme (UESS) – UESS was introduced on 2nd May, 2002 to promote saving habits among the people in Myanmar. The goal of the product is to support advance planning on tertiary education for a child currently under the age of 12. A parent or guardian, who wants his or her child to benefit from this scheme can open a saving account with the bank and regularly save in multiples of MMK 5,000 per month -the minimum amount to be saved monthly must not be less than MMK 5,000. By joining the scheme, customers will receive an additional 3% interest contribution on the account’s yearly balances. The customer can pay annual school fees out of his/her account by producing documents certifying his/her admission to a college or university.
Extension of commercial loan to business borrowers – The bank’s credit committee is composed of Chairman and members of senior management. The committee strictly observes its prudential loan policy by reviewing the prospective borrower’s credibility, business performance and collateral before it grants its approval. Currently the bank is extending commercial loans for a term of not more than one year. The loans are disbursed mainly for the borrower’s working capital. Interest on loans charged by the bank is based on the Central Bank’s interest rate policy and current rate is set at 10% p.a. The bank’s total outstanding loans and advances amounted to MMK 292.63 billion, equivalent to 81.97% of total deposits, at the end of March 2024. There has been an outstanding loan increase of 1.04% over last year. Most of the current account holders and loan customers are business entities and private entrepreneurs, the rest are household individuals.
Trustee, Telephone and Electricity bill payment services
The trustee service which started its operation on 1st February, 2001, and has experienced significant growth since its introduction. It has become one of the bank’s major sources for generating income, providing considerable funds to OLCL. In FY 2023-2024, the amount of trust deeds reached MMK 1.75 billion.
Bill payment services were launched on 2nd October 2001. The bank is collecting service charges on electricity at the rate of MMK 100 and phone bills at the rate of MMK 500 per settlement. All these bills are paid by the bank on behalf of its customers out of their designated current account.
Domestic remittance services –MOB also provides Customer Credit Transfer (CCT) service in collaboration with CBM Net member banks and online tax payment through CBM NET.
International money transfer services – In partnership with Western Union, an internationally renowned money transfer company, MOB is the first financial institution in Myanmar to deliver inbound & outbound money transfer services.
ATM and POS debit card & credit card facilities – As a leading member of the Myanmar Payment Union, MOB has been issuing debit and credit cards to its customers and installing POS terminals at various merchants like shopping centers, restaurants, hotels, airlines etc. The bank is also setting up ATMs at various public places to be more accessible for customers. MOB notably received the Member Service and Trademark License Agreement from Union Payment International (UPI).
Internet and Mobile Banking Service – MOB Bank applied for a permit from the Central Bank of Myanmar to offer comprehensive internet and mobile banking services and was granted the permit by the Central Bank of Myanmar on June 22, 2023. On July 21, 2023, MOB Bank officially launched its internet and mobile banking services to the public.
International banking services – MOB was one of the few privileged banks granted with Authorized Dealer License for international banking services from the Central Bank of Myanmar on 25th November 2011. Taking this opportunity, the bank installed SWIFT communication system and started setting up an international network of correspondent banks for its operations. Supported by international organizations and reputable global financial institutions, the bank has been able to expand its foreign banking services with a higher standard of practice for overseas remittances, trade financing and treasury operations.
Bancassurance Service – Myanmar Oriental Bank submitted applications to the Myanmar Insurance Business Regulatory Board (IBRB) for two crucial licenses: the corporate general insurance agent license for KBZMS General Insurance Company and the corporate life insurance agent license for Dai-ichi Life Insurance Myanmar. IBRB granted approval for Myanmar Oriental Bank to operate as a corporate life insurance agent on June 2, 2021. This was followed by the approval to act as a corporate general insurance agent on October 27, 2022.