Profile of Four
Banks
Dhaka Bank Limited
A private sector commercial bank. It was incorporated as a
public limited company on 6 April 1995 under the companies
act 1994. It started commercial banking operations on 5 July 1995
with an authorized capital of Tk 1000 million, divided into 10 million ordinary
shares of Tk 100 each. The issued, subscribed, and paid up capital of the bank
in 1995 was Tk 100 million, which was paid fully by the sponsors. In 2004, the
paid up capital of the bank increased to Tk 275.88 million. In 2004, the bank's
total equity (capital and reserves) was Tk 338.30 million the amount of
its reserves (statutory and general reserves and dividend equalization fund)
was Tk 62.42 million. The reserves declined to Tk 44.22 million in 2004. Every
year the Dhaka Bank, like other scheduled commercial banks in Bangladesh
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| private sector |
In addition to all sorts of traditional banking activities,
Dhaka Bank provides on-line tele-banking services and a comprehensive range of
financial services to national and multinational companies in the country. It
also underwrites shares and debentures, works as issue manager, and
participates in other operations in money
market and capital market. As a member of the
Dhaka and Chittagong
The bank has established a large network of foreign
correspondents covering important business centers in 107 countries around the
world and now has 325 foreign correspondents in these countries. The bank
introduced Reuter's screen since 1998, which has accelerated its foreign
exchange dealings. Of its 39 branches, 20 are authorized to deal in foreign
exchange. The aggregate quantum of import business handled by the bank in 2004
stood at Tk 9,075 million while the export business handled by the bank that
year was worth Tk 3,299.30 million.
Management of the bank is vested in an 18-member board of
directors that includes the chairman and a vice-chairman. The managing director
is the chief executive of the bank. He is assisted by 3 executive vice
presidents, 9 senior vice presidents, 7 vice presidents, 8 senior assistant
vice presidents, 12 first assistant vice presidents, and 9 assistant vice
presidents. Total number of regular employees working in the bank is 247. The
bank had 14 branches in December 2004.
Total deposits with Dhaka Bank on 30 June 2004 accounted for
Tk 7554.7 million. The bank introduced some innovative deposit schemes such as
the marriage deposit scheme and gift cheque. It disbursed a total of Tk 5,414.9
million in loans and advances in 2004. The average growth rate of loans and
advances disbursed during 2003-2004 was 18.71%. The bank extends credit facilities
to the private sector for trade as well as to meet working capital needs and it
offers some project loans to industries such as textile, ready made garments,
shipping, ship-breaking, steel and engineering, and edible oil. The bank also
extends credit facilities under lease financing and hire purchase schemes as
well as through syndication with other banks. In December 2004, classified
loans of the bank stood at Tk 93.2 (1.72% of total) and the bank had a deficit
in statutory liquidity reserve.
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private sector |
Total investment of the bank stood at Tk 813.73 million on 31
December 2004. The investment portfolio was made up of treasury
bills (Tk 720 million), debentures of Investment Corporation of
Bangladesh (Tk 20 million), prize bonds (Tk 0.98 million),
shares (Tk 55.03 million), debentures of corporate bodies (Tk 1.20 million) and
other investments (Tk 16.52 million). Total assets of the bank enhanced to Tk
11,646.4 million in December 2004, when its off-balance sheet transaction
amounted to Tk 4,798.2 million.
In 2004, the bank earned a net profit (after tax) of Tk
173.12 million. Its operating incomes were net interest income (Tk 201.38
million), interest on investment (Tk 60.47 million), commissions, exchange
earnings and brokerages (Tk 246.51 million), and incomes from other sources (Tk
18.92 million). Operating expenses in the year was Tk 231.71 million. During 2004,
the bank's earning per share, return on assets, and return on equity were Tk
34.30 and 0.99%, and 27.98% respectively.
Islami Bank Bangladesh Limited (IBBL)
An Islami Bank is a financial institution that operates
with the objective to implement and materialize the economic and financial
principles of Islam in the banking area.
The Organization of Islamic Conference (OIC) defined an
Islami Bank as “a financial institution whose statutes, rules and procedures
expressly stated its commitment to the principles of Islamic Shariah and to the
banning of the receipt and payment of interest on any of its operations”.
According
to Islami Banking Act 1983 of Malaysia ,
“an Islami Bank is a company which carries on Islamic banking business; Islamic
banking business means banking business whose aims and operations did not
involve any element which is not approved by the religion Islam”.
Bangladesh is
one of the largest Muslim countries in the world. Its people are seriously
committed to Islamic way of life as enshrined in the Holy Quran and the Sunnah.
Naturally, It remains a deep cry in their hearts to fashion and design their
economic lives in accordance with the precepts of Islam. The establishment of
Islami Bank Bangladesh Limited on March 30, 1983, is torture reflection of this
inner urge of its people. This Bank is the first of its kind of South-East Asia . It is committed to conduct all banking
and investment activities on the basis of interest free Profit-Loss Sharing
System (PLS). In doing so, it has unveiled a new horizon and ushered in a new
silver lining of hope towards materializing a long cherished dream of the
people of Bangladesh
for doing their banking transaction in line with what is prescribed by Islam.
With the active co-operation and participation of Islamic Development Bank
(IDB) and some other Islami Banks, financial institutions, government bodies
and eminent personalities of the Middle East and the Gulf countries, Islami
Bank Bangladesh Limited has by now earned the unique position of a leading
private commercial bank in Bangladesh .
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| private sector |
In August 1974, Bangladesh
In January 1981, Shaheed President Ziaur Rahman while
addressing the 3rd Islamic Summit Conference held at Makkah and Taif
suggested, “The Islamic countries should develop separate banking system of
their own in order to facilitate their trade and commerce”.
This statement of Shaheed President Ziaur Rahman
indicated favorable attitude of the Government of the People’s Rupublic of
Bangladesh towards establishing Islamic bank and financial institutions in the
country.
Earlier in November 1980, Bangladesh Bank, the
country’s Central Bank, sent a representative to study the working of several
Islami banks abroad.
In
November 1982, a delegation of IDB visited Bangladesh and showed keen interest
participate in establishing a joint venture Islamic Bank in the private sector.
They found a lot of work have already been done and Islamic banking was in a
ready form for immediate introduction.
They
came forward to provide training on Islamic banking to top bankers and
economists to fill-up the vacuum of leadership for the future Islamic banks in Bangladesh .
They also held seminars, symposiam and workshops on Islamic economics and
banking throughout the country to mobilize public opinion in favor of Islamic
banking.
Their professional activities were reinforced by a
number of Muslim Businessmen Society. The body concentrated mainly in
mobilizing equity capital for the emerging Islamic bank.
At last, the long drawn struggle to establish an
Islami Bank in Bangladesh become a reality and Islami Bank Bangladesh Limited
was established in March 1983 in which 19 Bangladesh nationals, 4 government
bodies of the Middle East and Europe including IDB and two eminent
personalities of the kingdom of Saudi Arabia Joined bank to make the dream a
success.
Islami Bank Bangladesh Limited (IBBL) was incorporated
on 13.03.1983 as a Public Company with limited liability under the Companies Act,
1913. The Bank started functioning with effect from 30.03.1983. IBBL is the
first private sector Islamic Bank in South-east Asia .
The establishment of this Bank ushered a new era in Bangladesh
Prime Bank Limited
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| private sector |
A private sector commercial bank incorporated in Bangladesh Dhaka and Chittagong Stock
Exchanges. In 2004, the total shareholders equity of the bank was Tk 897
million which comprised paid up capital Tk 400 million, statutory reserves Tk 221.91
million, other reserves Tk 1.72 million, and surplus in the per profit and loss
account Tk 273.37 million.
The management of the bank is vested in a 12-member board of
directors with the managing director as the chief executive. In 2006, the bank
had 52 branches. The registered head office of the bank is at Dhaka .
The bank carries out all types of banking activities and along with traditional
commercial banking services; it provides islami
banking through two of its branches, one in each Dhaka
and Sylhet.
In December 2004, the total deposits of the bank, including
bills payable amounted to Tk 10,518.72 million. Innovative savings schemes of
the bank include Installment-based Savings Plan, Monthly Profit-based Deposit
Scheme, Special Deposit Scheme, Educational Savings Plan, 30-day Term Deposit
Scheme, Prime Bank Money Scheme, Prime Bank Insured Deposit Scheme and
Multi-currency F/C Account. The deposit-mix of the bank in 2004 comprised
savings deposits Tk 1,058.49 million, bearer certificate of deposits Tk 40.68
million, term deposits Tk 7,018.59, and current deposits and other accounts Tk
2,214.25 million. Interest rate offered by the bank on the deposits varied
between 8% and 10.5%. On 31 December 2004, total loans and advances of the bank
stood at Tk 7,667.74 million. Major lending areas include agriculture, small,
medium and large-scale industries, working capital, exports, and other
commercial purposes. The lending rates varied between 12% and 16.5%. The
classified loans of the bank amounted to Tk 110.1 million or 1.42% up to
December 2004. The bank introduced Master Card Credit in 1999 and next year, it
commissioned on-line banking facility. The bank has a merchant banking division
and an investment division in its head office. To deal in foreign exchange
transactions all over the world, the bank established a dealing room equipped
with Reuters' Machine and SWIFT (Society for Worldwide Interbank Financial
Telecommunications).
On 31 December 2004, total assets of the bank including
off-balance-sheet items were valued at Tk 19,007.6 million. Major components of
the asset portfolio were cash in hand, balance with bangladesh
bank and other banks at home and abroad, money at call and short
notice, investments, loans and advances, bills purchased, and fixed assets and
other properties. Assets in off-balance-sheet items were valued at Tk 6,161.8
million. Foreign exchange business handled by the bank in 2004 was Tk 17,256
million, of which Tk 6,731 million were in export servicing, Tk 8,775 million
in import financing and Tk 1,750 million in remittance service. The bank
established correspondent relationships with approximately 250 foreign
banks/exchange houses located in different international financial markets.
In 2004, investments of the bank other than the loans and
advances amounted to Tk 1,524.54 million which comprised government treasury
bills/bonds Tk 1,380 million, debentures Tk 75 million, prize
bonds Tk 0.65 million, and shares of companies Tk 68.88 million.
That year, the bank earned a net profit after tax and provisions of Tk 360.44
million, which was appropriated as statutory reserves (Tk 105.24 million), and
proposed dividend (Tk 220 million).
BRAC Bank Ltd.
BRAC is a famous NGO established in 1972 by Fajle
Hasan Abed. It is the largest organization in terms of loan allocation in the
world. It provided 1707 crores taka loan. Day by day it expanded its services
in various sectors. On the consistence of this expansion it introduced banking
service named as BRAC Bank.
BRAC Bank is established at the last of 2000. Now it
is operating activities by various divisions. These divisions are as follows:
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| private sector |
° SME
division
° Retail
banking division
° Corporate
division
° Remittance
banking
° Human
resource division
° Marketing
and Product Development division
° CID
(Channel Infrastructure Development)
° Treasury
division
° IT division
° CPC
division
° SRS
division
° Sales
division.
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