LIM

TED

EXCELLENCE IN BANKING

HeadOffice: Biman Bhaban, 100 Motijheel Commercial Area, Dhaka-l000. Bangladesh

Phone: 9554514, Fax: 880-2-9556584, e-mail:info@dhakabank.com.bd, SWIFT: DHBLBDDH

ANNUAL REPORT I 2009

LIM
EXCELLENCE

IT
IN

ED

BANKING

www.dhokobonkltd.com

design & concept by: I Positive Communications Ltd.

ur

MISSION
To be the premier
institution in the
providing high quality
and services backed

financial
country
products
by latest

technology and a team of

highly moHvated personnel to
deliverExcellence In Banking.

VALU S
Customer Focus
Integrity and Honesty
Quality
Teamwork
Respect for the Individual
Responsible Citizenship

Transparency and Accountability

Environmentally Conscious
High Morale

T
OB ECTV
1. Our objectives are to conduct transparent and high quality business operation
based on market mechanism within the legal and social framework spelt in
our mission and reflected in our vision.
2. Our greatest concerns are our customers to provide them continually efficient,
innovative and high quality products with excellent delivery system.
3. Our motto is to generate profit with qualitative business as a sustainable evergrowing organization and enhancefair returns to our shareholders.
4. We are committed to our community as a corporate citizen and contributing
towards the progressofthe nation as our corporate social responsibility.
S. Our employees are our backbone. We promote their well being through
attractive compensation package, promoting staff morale through training,
development and career planning.
6. We strive for fulfillment of our responsibility to the government through
paying entire range of taxes and duties and abiding the other rules.
7. We are cautious about environment & climatic change and dutiful to make
our homeland a green and clean soil.

CHA T
We seek to build long-term, sustainable beneficial relationships with all our
customers based on the service- commitments and on our underlying values of
mutual respect,the pursuit of excellence and integrity in all our dealings.
1. Our primary concern is to understand and satisfy customers' needs and
expectations. We promise to use all means open to us to establish and
understand these needs which are both mutually benefidal and respect the
values and principles in all our actions.
2. We promise to deal quickly, courteously and accurately with all
correspondence between us.
3. Should disagreements arise between us we undertake to seek a speedy and
equitable solution, which takes account of the rights and obligations, both
parties and is framed in the context of a long- term and enduring
relationship.
4. We believe in openness, integrity, transparency and accountability and
provide high standard of servicesto our valued customers.
S.We create customer value, loyalty and equity, which create customer delight
over a lifetime of patronage.

en

---a.
CD

oe

We arecompliant to our country's laws and regulations.

--

We reject bribery and corruption.

We speak up if we suspect any actual, planned or

potential behavior that may breach any laws and
regulations.

e,

o
o
--

s:
-fw

Weavoid compromised gifts and entertainment.

We are compliant to Anti Money Laundering guidelines

and other prudential regulations provided by our
regulators.
We resolvecustomer complaints quickly and fairly.
We maintain confidentiality and fidelity of our customer.
We treat our colleagues with fairness and respect; work
with highly motivated team spirit and fellowship
bondage.

corporate
INFORMATION
Dhilb. Bank UrnJted

A public limited company incorpol'lted in Bangladesh on April 06, 1995

underthe Compilnles Act 1994 and listed in Dhakii Stock Exdlallgl! LImited

and OI1ttagong Stock Exl::hiInge Umlted

JuIyQS,1995

Biman Bhabln (lstFloorj l00Motijheel CIA,

Dhab.-l000 Silngladesh

,....pholW

,.,SWIn....

+88029554514

e-....

infoOdhl.k.lblnk.com.bd
www.dhakllbanldtd.com

-...-.

+880 2 9556584.9571013.9565011

DHBLBOOH

A<mIlIN

Chlt1ered Accountants
Howlilldar,Yunus"Co.
ChIlt1ered Accountants
Khondker Fule Rilshld

From FebrUlry 24,2009

Arhilm Masudul Huq

Board of Directors
Executive Committee
Audit Committee
Sponsor Shareholders
5- year Financial Highlights
Value Added Statement
Credit Ratings
Chairman's Address
Core Management Team
Management Team
Message from the Managing Director
Directors' Report
Compliance Reporton SEC Notification

01
03
04
05
07
09
12
13
17
18
19
21
67

Financial Statements
Auditor's Report
Balance Sheet
Profit and Loss Account
Cash Flow statement
Statementof Changesin Equity
Uquidity Statement
Highlights on the Overall Activities of the Bank
Notes to the Financial Statements
Annexures
Shariah Council
Offshore Banking Unit
Head Office Contact
Ust of Executives
Branch Network
Event of the Year
Notice
Proxy Form

74
76
78
79
80
81
82
83
118
125
131
142
143
146
149
160
162

Mr. .M.d ~ s,1\ef -(haiftr'llln,

01

M,. iMo"-lI'Il'Md Iob"tr Vi ~ e O'liWtr'WICl. Mr. ~bcM I{.tl s.br -o~"IOr. MI'$.M'oPo

'*.

AhbM -Dl~r, MI"I..~ ZnUrl -:JI~or. Mr. ~ Man" Uddln -llIredor.M,. Mod. ~l'U llah -:J'redor ,
IIm lflUl ~la.n -OI~Qf. Mr. R.Hn.du~ RllhlNri - [] I ~, Mr. Al)du.. tl ~ Atwin -DJ1'W"t=Or. M" I1\Illdlbr MDhal'l"lmolldi
~ Oile<l.Or,....r, M.N.H.6\111,1I i)ir"e'(t.(l', .... r.Taf'lldvlltkII4aIn cnowdJ'M'Y -U"t(tot. ~r1. J.lll'\IlIlQ'IItloll'l -o.t<tOf.

Mr.;.hlm Uddin -(llteeto'. M1r.

-Di~. MrS. FLlIthl

F.u:l. RaINd

K/1oIl~ ' ~ ill)dtSin .(Ji~t(l r.

Mr.A,bdr,ll~ - -Dil'l'(.w . Mr_M~JJI Str1l.er

~m HLll.Yll... oUIr'r1:11", Mr . ~

oe Cil.lptll -:JlrK".u(.Mr. SUU: II1lM -~ . Mr. GMt

~~II'ISI OI~~Qr. MI'. Aduiflt Mau"dul ~llq -QfI'll"'~ S4!'<mo",

02

committee
of the board 0

Mr. Altaf Hossain Sarker-Chalrman, Mr. Mohammed Hanif -Vice Chairman, Mr.Abdul HaiSarker-Director, Mrs.AfrozaAbbas-Dlrector,
Mrs. Rokshana Zaman -Director, Mr. Khondoker Monir Uddin -Director,Mr. Reshadur Rahman -Dlrector, Mr. Md. Amirullah -Dlrector,
Mr. Khondker Fazle Rashid -Managing Director, Mr. Arham Masudul Huq - Company Secretary,

03

~U

it

COMMITTEE

SHAREHOLDER
1. Mr. Abdul Hai Sarker
2. Mr. A.T.M. Hayatuzzaman Khan
3. Mrs. Afroza Abbas
4. Mr. Altaf Hossain Sarker
5. Mr. Khandaker Mohammad Shahjahan
6. Mr. Aminul Islam
7. Mr. Md. Amirullah
8. Mr. Reshadur Rahman
9. Mr. Abdullah AI Ahsan
10. Mr. Khondoker Monir Uddin
11. Mr. M.N.H. Bulu
12. Mrs. Rakhi Das Gupta
13. Mr. Tahidul Hossain Chowdhury
14. Mr. Jashim Uddin
15. Mrs. Kamala Khatun
16. Mr. Abdul Wahed
17. Mr. Mohammed Hanft
18. Mr. Khondoker Jarnll
19. Mr. Moha mad Ali
20. Suez Islam

05

FOUNDER &
former advisor
Mr. Mirza Abbas Uddi Ahmed

06

5-YEAR FINANCIAL HIGHLIGHTS

Figurein Million

2005

2006

2007

2008

2,897
2,149
748

4,342
3,380
962

5,636
4,049
1,587

7,171
5,214

739
594
145

1,110
889
221

893
125
305
463

2009 Growth %

Income Statement
Interest [nco me
Interest Expense

Net Interest Income

Non Interest [nco me
Non Interest Expense

Nilrt Non Interest Income

Profit before Tax & Provision
Provision for Loans & Assets
Provision for Tax (including Deferred Tax)
Profit after Tax

',958

7,466
5,407
2,060

4
4
5

1,582
1,159
423

1,929
1,353
576

2,175
1,424
751

13
5
30

1,183

2,010

2,533

2,810

11

233
370
580

479
827
704

669
1,025
839

675
1,176
959

1
15
14

2,650
1,228
988
2,216
28,439
23,372
3,926
122
33,072

2,650
1,289
1,262
2,551
41,554
34,049
5,378
217
47,594

6,000
1,547
1,578
3,125
48,731
39,972
5,972
291
57,443

6,000
1,934
2,065
4,000
56,986
49,698
7,239
387
71,137

6,000
2,128
2,838
4,966
60,918
52,910
8,660
424
77,767

30,213
13,505
6,099
3,377

46,277
23,268
6,473
16,764

49,496
31,081
6,523
10,609

65,737
39,038
7,887
11,834

46,160
33,305
6,462
9,786

(30)
(15)
(18)
(17)

2,216
237

2,551
373

3,126
554

4,634
1,000

9.94
1.06
2,453
11.00

8.23
1.2
2,924
9.43

8.80
1.56
3,680
10.36

3,964
844
9.77
2.08
4,808
11.84

17
18
(5)
(3)

Balance Sheet
Authorize Capital
Paid up capital
Reserve Funds & Other Reserve
Shareholders' Equity (Capital & Reserve)
Deposits (Base & Bank excluding Call)
Loans & Advances
Investments
Fixed Assets
Total Assets (excluding off-balance sheet items)

10
37
24
7
6
20
10
9

Foreign Exchange Business

Import Business
Export Business
Guarantee Business
Inward Foreign Remittance

Capital Measures
Core Capital (Tier I )
Supplementary Capital (Tier [] )
Tier I Capital Ratio
Tier [] Capital Ratio
Total Eligible Capital
Total Capital Ratio

07

9.30
2.01
5,634
11.31

17
(4)

Figurein Million

2005

2006

2007

2008

2009 Growth %

Credit Quality
Volume of Non-performing loans

351

554

1,258

1,908

2,946

54

% of N?Ls to Total Loans & Advances

1.51

1.64-

3.15

3.84

557

45

Provision for unclassified Loans

236

372

465

620

625

Provision for Classified Loans

103

172

439

825

t,488

80

10

Share Information
Number of Shares Outstanding

12.28

12.89

15.47

19.34

21.28

Earning per Share (Taka)

43.99

45.00

46.06

39.42

45.09

Book Value per share (Taka)

180

198

202

207

233

13

Market Price per share (Taka)

469

466

706

361

484

34

Price Earning Ratio (Times)

10.66

10.32

15.33

9.15

10.72

29

Price Equity Ratio (Times)

2.60

2.35

3.49

1.74

2.07

19

Dividend per Share:

Cash Dividend (%)

20

10

1:20

1:5

1:4

1:10

1:4

3.43

3.77

4.54

4.60

4.56

(1)

82.18

81.94

82.03

87.21

86.85

1.33

1.24

1.38

1.28

2.10

{OJ
64-

Return on Equity (ROE) %

20.89

22.74

22.53

20.97

19.32

(8)

Return on Assets (ROA) %

1.40

1.22

1.23

1.18

1.29

Cost of Deposit (%)

8.13

9.15

8.97

9.40

8.6B

(8)

75.44

78.14

72.15

72.16

70.85

(2)

Number of Branches

29

37

41

45

50

11

Number ofCMS Unit

20

tOO

Bonus Share

15

Operating Perfonnance Ratio

Net Interest Margin
Credit / Deposit Ratio (%)
Current Ratio (Times)

Cost / income ratio in operating business (%)

Other Information

Number of SME Business Center

Number of Employees
Number ofSharehoiders
Number of Foreign Correspondents/Banks

688

786

842

898

924

3,677

4,187

5,340

8,198

10,530

28

406

350

350

350

350

08

Value Added Statement for th y

r nded 31 December 20 9

The value edded itatement fur the bank shCWi5 hew the value is created and distributed amonG
different g;akeholders of the bank.

BOT n
P rtlcul ,.

2009
Taka

2008

Tka

IllOOmo (rom B!lnklng Services

l ilSS: Cost of services & s:uppll s

9.641.32
a.o 38.99

9,100.06
5,858.72

ValUB added by tIKI Banking llBrvice.a

3,602.34

3,241.35

lIioo
%

Nonbank! II Income
t.oen & Other p fQylshms

Dls lrlbutlo n 01value added

To Employees Cl8 salaries & alloWllnoeli
To Shareholders as [lividand
To Govemment as Income Tax
To S1atutory RSSBJVIl
To wcpansion & growth

09

729,23
531 ,92
,176.07
<427,09
63.14

40%
15%
2%

660.61
4la.56
1,025.13
372..78
29.84

35%

2.927.45 100%

2,571.92

88%

25%
18%

23%
17%
13%
1%

DfstributlOll of V.luo Ad""" 2008

trtb<ltlon of VlII"" Add" d 2009

To Employ

solanes &

l1NlItlCflS

To Snareho!dBnl 86 Di" dend

To Gll'oC

nl

Incomo Tax

To SlaMory RcsCM

To Employees as salaries & allowances

To Shareholde~ as DMdend

To Govomment as Jnrome Tilll

To Statutory RcsCItV

To exp&nSion & gltlWU1

To Wlpan~ion & growth

Economic Valu Add d (EVA) St t ment for the ye r nd d 31 Decemb

Economic V I .Added (EVAl Indlal te' the true economic
. mount by which Mnln ~.~ or t II ~hCltI or ~Q\l lred m
Sh;,reholderstEqulty provider, are oil ays con$CIOUI about
b n~l"'ll com ~ny we il'e deeply Cort n (or delivery 01 vnlu

2009

prOnt 01 lhe ComPoilny. EVA Is ~ n ~tim III 01

n mum return for
eholtfftl t comp r bIc:- rlskl.
th eir ~ u m on pit I Inveted. As <I commer
fO ll ~
our
rcholdell/ Equlty provkJ

or

BOTIn

IIlot1

econom ic Value Add d-2009

50%

1%
-4%
6%

Co r P<lrale T"" (10 11Ul)

expe naea (7,505.88)

39%

Tot... InCilme (1,54 1.32)

10

arke V lueAddedlMVAIStatementfortheye rended3' December2009

Market Value Added (MilA) Is t he diffe r"n ce betwe " n the eq uity ma rket va lue of a company and t he book
vafu" of e qu ity Invested In the com pany. A high MIlA Indk ates the com pa ny has created substantial wealth fo r
the sha",hoId~

ilOT'ln

10,287.32

Market value of
Total Eq Ully

Less: Book value

on ota! Equity

11

I on IPre\llotn Yt'a( s figu res In brad e )

(6,9n .98l

4,965.68
(3,999.5H

Market Value

5,321.64

Added

[2,973.471

Ohaka Ban~ LI Ired was rated by Credit Rating Agency of Ban ladesh
li mited (CRABI on the basls of audited Rnanclal Statement, as on
December 31 . 2009.The wrrun.a<y of llatlng 1, presented below:

Statui
Long Term
ShortTerm

2OO!l
Al
51-2

2008
A+
51-2

Credit ~t1ng Agency of Binglade,h Ilmlled (CRAB) ha,a,s1g ned ' 10.1'
(Pronounced a, Single A One) fallng tn the ~ong Tefm and "51-2' In the
Skort Term to Dha a Bank lim ed.
In 200a Credit Fl.arll'9 In'ormatlon and 5e1'11r;es miredlCRlSLj awalded 10.+
(Pronounced a, Single A Plu, ) n the LQng Term and ST-21n the Short term
10 Ohaka Bank Llmlred.

.-

CommercIal Ilastks rated 'Al ' n the LOO9 Term are ad udgl to be sbOng
banks, chara" ertled by good fi nanCIal",healthY and , un a nable franchlSoe$,
and a fi rst rare-eper tlng environment.This level of rating incJ1cate5 strong
capadty f Ol timely payment of nanclal commnmems. WiTh low II ellnes,
of being adv rseIy affected by f~abte evenu.

Commercial 8a1l\c$ rared '5T-2' In Ihe Short fem1 are con',ldered to ~

moog capacity for trmely r e ~n t. Banks rated n thl, categmy are
charaet rtz d wIlh to rnmendable posItion In remll of liquidity. Intemal
runcl 9 eranen,and accessto eltefnatlve 5Oun:es of rund, " outstanding.

12

CHAIRMAN'S ADDRESS
",..I.mu At kum

Pi '~O'd 5h....held.... G_t, of /blour.~.... nd GontloTMn.

be"""

I " Ind d my gw;'ll """'UI1l that on

of
BaOfd of DinlcftlrJ 01on
Elanl< Um~1Id I wolttln>ll yooJ all h_ at tl>l,
brlitti nq nu~ for th. 15th Annuol Go"" r.' Mo..nllg lAG"I t aft"" a.nt. 1~k. thi& opportun ity 10 mcpro:u my grn'tudo i1'1d
hNrtIc!lt thon.. "" )'OUT oon1l'nucd .upporl nnd impir '
which has r ul''''' in grtar MIlXII" in mony ."'''' of 0IJl'
opcfiltion\. W ,nR Wnorr st Bring a ImlQl1Ii1tlt R mod m (onwnE'l'Cii1I 8;
fOCU' en Coruiumar, Corpori1 ~ . iV1d
Int......no",, 1B 'Ilg. We firmly beiew in ' ... mWtJrk ~ .......n. nt loynt officion. ond mOllva'od IDMTl of emDIDY""' I. (Nt
hl"mo.lioIn mo ngth.
Wit!l Imlh VtIW to 1>10..... n 0'. II...... .. se nna!. Ohw

~nk

!la. a twaY' tJic:><t for

toIonlan and ar . upqoor "" Pf'lIlOSi ion. Tost",nqlhon our lI!ChndoqlrnlDlatform. w

tho iIrt t"g,nol<Jgy to giV'l th dKo nt "'. tim onlinot fo. i1ity

lnq wi3<l ormy af bonlW1v

h;mr ..t"'odr Instnn<>d ~' I

rJf

ThtI """unding su...." tha t w p hav~ hlmrod lu. vr wos 1lO'.lbl. for )'OUf ,. loMI" " ",ppon ter tl1e Bon Our
commltmon, to )'OU for malcing yOUr
nmo m to """" . ll oYoNncrNsing ";olu ho. m
pos. lble to reech a
commondabl
....,1 01 .. fCC..... B.onung vrtol .aor of ," nolio""r o<"" orny .",, ' ..., to bu.v.,y lmpnrtanr
p.,n frublrly in tho b,1ddrop of
ccmptilic>n and ~ gIobal" ,'ion P"""""" W. plI). <JUci.>lly implJrt;ml rol.
in cr..at inq omplOjlTl1<!nt throUQ h lnwwnonl.

13

no 'I' J
a.n opet.ring profit WilS lk.2,.810 mi lion. The

deposit sll<K up by 1'lb to TUO.918 111100 e"c1udlng Glnde"",lu.

Loans and ad",,",. . rose by 6'16 a nd stood . t 11<5 2,910 mill on as on De<:ember 31, 1009, The d.ta com"n l1 are
<upplom ed Inthe fi nandnl <talement,

ann 11' 0
We expect h h.. growlh of buslness n 2010. l he growth 11 " r<!dietably gen...re from the dlv.oooed Corporate
Sector, PHsonal Ilo nkir>g, Morn!)' MarXet Operaoon5, COOSOttlum and Structur<!d ....oong, V;sa Debit and Pre paid
Card, Owned A' M Network and Expon Oriented init l. t l.... We h. ... Introdu ced iNIovat lve prod uet'S I ke Callital
Market Bundled Savv>qs Account and ~efu<blshed tiome Loa n. etc. ro .e"'e the consumers with highest . p",eGallon.
We would ~ke to t ake tI>I! op porrunlty to ""pr6s our appreciation on the varlo<J. reforms Implemented by ' he pre>enl
gO\'ernrnent In the ba king sector as prudential ., ulo. ines to ens ure finand al discipline. We express ou r dee p
gratitude to Almlght)' Alloh tOf enabling rhe Bank to oehle.e considerable prog" " s and growth In an hor. - war
du .ng 2009. We are no t cornplacent rat her we .. t l!J<Ce1oo lSel...... to dell.., the ben "the year to ro me. We are
grateful to OUT v. lued sha' eholders . nd clients for melr contlnuou. ",,,port and confidence In our effom to Impro. e
the performance and profllilblQty oJtI>I! Bank. We wish I" hlghnght . orne eCOflOmic Indlaton of B"tlIIladesh.
1M!
""my
Real GOP growth atta ln<!<l ln FY09 est llllo1led by BaS.t 5.9 pe",enl a~l n 't 6.2 pe' Cl!f1t llrowth of FY 08 . nd IIle inItial
6.5 percent target for FY09. ",bsequemly "'med downward a, lhe global do wnturn sta rt...d Impacting export g rowth
and Investment momenl um. Agrlcul '" sector perfonned 5tloogly, , uppa rted by favorable wealher and oPllmistk
porke ' expectations, ove<COml"il ad......, itles of the pre<:e<!'!l9 yea" but O}Io"":h In Ind ll5tly and , erutces weakened.
mainly d... to ..ea e r>g of export <lemand.
Idn

The bonkln9 sector specially the pmot" seaor b""k' mad" "g mCilllt prog,ess and CJfowth '" term, oJ "9"lficom
market ,ha,' oJ depo. its and ad"" nces through Improved ( u,tome. service, IntrodllCtion or n"'" product, . nd
switching 0\'''' to onl'ne banking ~ plng pace
h the globaf,satlon process. The 30 banks In the prJ""te sector
posted a 24"- 9rowlh In OI><!rallng profit In2009(l'Y01 Ihe "r e.IOII5 year,
Bangladesh Dank s beoen playing an Impoftanl role fOf brlngong out disciple"" anclllynamlsm In tl>e banking sector of
Ihe country. Due to " ringenl rupl!f\'1, lon and cootrol exerdsec by the central bank, there had bee n a cootlnuaus
Pf09ress In Ihe reduction of per( enlage of classIDed loans In Ihe ban Ing sector with the recO'l'l!'/)' of default 103ns.
""

a....HlSI'Hl'I... 1I

At !he conclu, loo of my addre ,.. I e'press my graleful thanks and appreciation 10 all at v.,l"", I""el of the
Man"'llefnent a ng wItt1 tl>e orner staff for their nme an<l effort the~ ' penI 10 achl""e the MIs, loo of 0\If Ilonk. The
confidence mat the shareho lders and clients have on us has always bee n the source of 00f .trenC}lll. We are gralefulla
them fOfIhe support must tha nk Ihe Bangladesh Bank, the Mlnlstr)' of FinalKe, SeGlm le, and E. change Commls500n.
Registrar of Joint StOck Companies and FUm. and various Govem me" t and othe r ,egulatory bod l.. foI thelr gu'ldance
and other peer grou ps for their sueeort, My collHQues at Ihe Board of ClreetOfs of 0Uf Bank deserve speGal mention
fo, ptO\'ld r>g relentless support.

AU., 1Io... 1n ia....

Chalnnan

14

mo

'"!I'iI~t(i\ShI1"'. ''''if;M a f~N1"" '<lll" ~

<!

'5!i ~ll'!

""1""''''1 "I'l"~ I
~
~...... ~ 'lS'j

l!iw",,, IlI1ft'l 111'Jt

'1!bT

f;'f.!di"'-4R
"l19f'!

)et~ ~ 'lilf1il'l >r-rnr

("ltI

""'"'"t[l.'I"

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~ >IWi 11'1161 ,jRt ~ "" ""~'I~ ~'!'Ov.lt'l'
~ J6ijlijl~ >m ~. I
I
~ ~, ~I'Rltm'!:llI
fWi6 1 'll <5IttlRl4 I(i!J'll'i ~ ~ I ~. 'I'~t;d; <!I

" 'IilEtIf.w

ZIl't!'U RfJI ~I .~ ~ 'l1t't 4'l'!lI ~~ "l"n

'<iO i>IIPi'" 1lf'1liiU.. ~~ .,f'iilil"l.i "Rffi: I ~ ~ ~ ~
W:l

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~~ I~
0lIilj(!111
~ '<il1",1e'l'" >f"lfila
I
'11>!~1I

'~ t

1l1J:'1l

~ ~"t>1
''lIi- f'!t; ~1 'l11~'l' ~ t'l~
~ ~t 'l'lI'lA C'I1I1ll a;l] ~ ~ ~ "It'fu!i ~
0f1!1>I ""'II ~ I ' ~ '1fi ~rio1 c-.t~ ~ ~ ~~'lft'lJ~
~offirl; ~
~O\i; ~ ~ ~ ~ ~ ",...,11"

f.I

till ~

~i{1(1 t"!t'l' "Il~ I

~"l'!1'JTt ~ >!1l~ VQl1: ~ ~ ~ "1119" ~"+rfl ~

<'mIft I ,'1"0- 00 ~l'itlIftol ~I '1Wllo1 "i'1l ~ . 'lIrtll l'wa

lltotTil' ~ J1't ~~ >J1iI'I'IJ ~ '>l'Pl ~ I ~ ~
_~ ~

~1ll l!l'lt ~ ~~II ..."" "'I'OJl'l"IT'l' ~" ~,. ~"l1l ,~ ~ Ntt'oIl

~t w~'1.'"
. "ftJr-i -.r.t ~ I f.\f),tlllt"i'il "lllllt'll "':>rt.(I'I 1lh
t'!'1jII" ~ ~"l;I ~~"11" t'( K"lfii: I

.ll "l1'II "'i1Iit'!'lI "l1lIb1.,... lJ:l1'Pl ~ClI ~.lr )o 1tIr'l1:'l llt I mtC'H "'IIt;I;<"oJ
'PI f;c~ ~ '1% ~ eOftV q'~(m , 'bolr ~ fn<1il , 0)

~~. ~ooli> or(w ."l '6

,,% ~ C"lfJI ~ of'~ ~~ N ,lo)O

f.t.iI1fiIfn<1il 1~ 1l~"'"''1 oJl~ ili"lI@1,~~>iWl'~ I

0)0.2 ........

~ '<0)0 ~ 1I1PiT1i i~o:Ns ~ ",ij I

~l.

~ofltlr'J~ . flrt;.,~

~ .,[i""l. +'It>llltll1'i iii '!l1..alt "'it l6 f.lMCOiti, ft;>n

r;tif;iiJ '6 f"e'1l~ ' .
, ~oJj\1 '"J~ ~t lIUlf~ C'fI1"1 t'l~
1lI~ 'if'IJl <ll'I$! >iii'! 'lC'l ~ 'l1ll"lT <Rfl l

'l5I

tA"t""t"1 ~ I'!l'R ~ 't.ll'lfi",""~ ~"RI o!llf1t'lll ~ 'lJ1tf"l't

~ ~ >fffil! ~ ~11Qi1iWt'll ';OiU '<5I1'l1ll ~ >t<"'fGC" ~
~'\f'lt'l Wl'!1l l ~ilt"='!ll xoolo 0\1.., "IJn.'l'!lI ~t"tM l 'It:fll'l '6 e-'lfii

15

16

"'". _lionel f ..", A....Id-M.IlIlQI"'iI ~

Mr. l _, II.JIllm.()op&ay
I1fIQ Ol,t'(1IJr lBuo_ aaNkhl1
MI. ~ T mil
-DePtJl;l PI.MIa
Otrf.aa!(OpeOOoo!>l
~ M""1IIIIII1IOd IOton ~ r"" ""II I ~ !lreclo, tlIbk Mona!l""",1IIl

~I

I'

MANAGE E TTEAM
Mr. "'rh~ m M4Sudui Huq -EVP & Comp, ny S~lary, Ms. Shamshod Be9um -Prln p.'I~ Ohakll 8a.nk Training
Mr. Kal. Tamil ...m l n O uty
nl glng Olr ctorOp r lion Mr. Khondk r F I I Ruhld
l19'n9 Oirecto~ Mr. nl Moham mad Kh n O put)' M~n glng Dill!etDf Ills!< Mana~ m 'nL Mr. li n
r
Rahim- Dl!pvl)' n ing OlrKtOr-8~s ln ss 9i n 1n9o Mr. M~hlmmld M~ hlflliar I Ii hml SEVP & H ad,
~ Il Compllan(ll 8< Admlnlslr lion Division, Head Ollle Mr. Dar shlko Khalru -'if' &
ad, n n nee &
I\ccounls Olvlslon. H~d Offlc Mr. Shfth Azll\d Islam -liP & In1:lWIfile, ~la l1 8a "9 Dlvlslol\ Head Offl~, Mr
.... K. M. Ah n Kablr . FAVP & In-<h rgl!, Inlam I Control & Compl"'nc " OM~lon, He d Offlct!, Mr. Md. Shaukat
All Khln SAVP 8. In-eh r
5ME Unll. HNd OffICl!, Mr. Imr n Ahm SAVp, H d Office. Mr. Sy d Fit I
Omar SAVP 8< In1:t '9 , Glob I Tr dr ScMe~, H d Of Ct, Mr. 5.A.FA Mu
r -$VP,
& f\tc ll'l' ry
(Corporale R~). He d Office. Mr. Md. Flkhrull.1 m -SVP 8< H a Opet lions Olvision. ad efflC , Mf. II.
M, Fol fa ruq~ 1 -SPO & In char!} . Tralul.Iry Di\of~ He. d Of xe, Ms. Alkon Koblr Cho ~dhUf I -'if' 8< H d,
Hum n R"sOl.lr~ Division. Head Ome Mr. Kamrul AIlI Nippon.. AVP & In-charge. ClpoIlal [Mrke' SvICft
Division , ad Off" ", Mr. J Q M H blbul~ h SJ\Vp, Do rd secret lat, li!M1 Office, Mr. flruk Ahmed -FAVP & In
e!\GIgI, CPC .. Trdde OIl ril lom, ad Offica, Mr. Md. Mullbul Quad r svp, Ltogal & f\tcovary fLegal), ad
OffIcll, Mr. Sl lful Moml" FAIIP & In,c!\G'ge, rTDMslon. @3d Offoc .
In~ll tu[a.

18

MA AGING DIRECTOR'S ROUND UP

"tr_

lookIng bad<I~ ..... y. h i> cen.alnlysa ... IhOn looking ahead. FOI ,t~ wI'" "IeO'~ I' wm
a , honce 10 red, ess Ih~ loin",
ot the p.tsl
. )'ed'. The y'" 2009 ...... d'dl~ """ unlqu~ In mony way. nOl OI1ly for !tI. 8dnl:lng 5e(Ult In Ilongl.cl
.
bUI 01", IOf glob.>l .'Oll0ln)' .. .... h"le, Ad.or>a!d eee.......l... of U>e _
... Itn~ manum. ntol d <d l ~ in .....1 GOP.
Ernetglng e<Qf1cml.. also ...."""sed oontr"" lIon In lht!ft ,.aNllles as ,esuh of foil out of lIIe dltr'ocuIU.. el l"" ad"..,><""
ecanom1eo. The world eronamy uRd........1I lund.men d1ange bolh In lu " n.CI.... and ,on,,,,,... Th ~ eceoo mrc
'n"*",,," 01the d""doped !alIlOrnl.. hiffl! I.ft permOr>erl1
In the . ",lIDmiC_ fl>l:lll "",ppinq 0' the globe.
BUSI"

GKOWTll MD UPAIljSIOIl

The Glub.1 .~ lias bn:>oghl In

lhra,,!!h l he ea:n>rnlc meltdown

<ounuy and It (III be sa,. Iy said we have w.-de<!

ll)ing tolo13. The high 011<I ,nlghty institution or U .....1 hod been predlrtl ng 0

'Oml! Importon~

leo.nlng fot

00'

1I1..,p downl.. In ........."Ie .oaIYlty In a..ngl..s..n dutlng U\I!

I nn. ndd t lu."toll bUl og;>iMI lhl.",,"I' duII ltnglrq
b' dulf op Dtlaka Bank IUlned n a "...y solid performo.><e- W. took adlfantag. 01 the fa "",abJ~ "",diu"" , or l h~ ' ealI'd
half01 2009and t1trnomttd'ed Slrenglh and .",nlen<e In m, n"9"'9 """ket ' lW, foreign e>chongl! risk!, In l~resl rete "ski
and ope tdllOl1ol rIW In
."vI"",menl af rolling In",,,,,, lncnme, rll.1ng COlt af hUllt> end "",,,,,,,Lion In f. .. and
e>dunge e4tf,lng<. Ihe
pet!ClImen,. 01Oho"" lI.o"kwao al!<l due 10 COl _
grawth baM _ deposit>.

"""'y

. rood ... Tl.77 .77 Dillion .. of 31<t eec"",b:lOO9 0" In""", of 9'lO g.owth Os "9" ln.1 I... )"'ar,
fh" lliOn k """,dod . 6'110 growIh ""... """ ~ willi. totol lo. .. portfo lle of TL52.9 1 bllllcn I.. 2009 eornpered to Tlc.49.69
Tot al ..,.,.. 01 Ih .

19

bT IDA ira 20011. n." <a'1 free and ..,.; co>! d"f>l>'il' rompri<ed or 2B\l1 cI the d<p<nif5. fixed de pe loiU t<fIIhll1 II malA
rornpooent of d l!p<J>IU [o ntrtbutlng 69111 cI the ICC" d<po</U, ...hlch ..... '7D'lt> In 2008. A"""'ge cost of depo5lU was
d" tTea>ed Itl 8.6B'lb In 2ll09 ...g. I,m g.<\O'lO In 2008. Hc!llnteresl lnca"", CNU) ~ re<fS<d by I ~ % trom 'Ik1.li21 million In
>008 to T\.2,'liOO million In 1009 mainly """ 10 , lightly lncre~", of volume of loon s, Inco","" from ~v<st""'~ts . nd dC!Cl1!ase
or cesr 01 ""POOI"'The nlrt l)<ciil of me oonk as of 3ht ll<xemb., W09 stood . 1'T\9S9 million [omool'Cd to pn:'Viou. yrilf'. 11<839

""'ki ng growth of , 4%, Earnlrlg Po< 5t..re

Ion

w.' Tk.45..09 In 2009 as againit 11<J9.421n 2008.

AN IS
en D ASSET
'Nfl: bell..... th aI Humon R",ourte iJ til<! menl valuable asset .nd Its t rue d~lo p"", n t Is the l~ to ""cess and fu:u",
.u'ta ln4bll y. We have re-str u enned .nd suengther>ed cur Training IlSlIwte
2009 ta rted t he In' lltu,l"" th
In! tho t
1"11
comprU!nt pels on"".nd conducting .kJII d<!WIopIMnt tg"",", fur our manillJ'!",.nt team. Vi< firmly
coupled wi'" se
''!IIXWI1~nl emp loy"", wi fUl1het /'IlOdWale ou, ded'l<.Il.ed ,.,an"'9"'1""'l le.>n, '0 >chlelle high'"
nandiKd and po l!CDOO.

co

IlA11

NS LI'TY

I be<orne a cruclal llSu" Bl.lSines.s Cl9"nl:.lldon. Ole now regarded .os "<o' IJO,a,e
Suffice1050y t hough living
OUzen,' and as '. ~WIt t hl! ""'In ss world I, strlvlMIJ to play tholrrupemfbllty In th is reg
up 10 ou, corporate 1.0<:101"'<paM1
'Is an ~ ral polrt of OUI COtpCX.<le cult";" ",hlc>. OUting 2009 "",!>.we...un "p
diffc""'t hum. nltil rt... . nd soci
which Indude don. tIOn of TaI<a 1
lion to Pnme 'nlster , Rolief fund Jor
Cyda~
vied PM"""ntlng 2 [hWll AmbuL!nre. to PrI"'" Mlnl' ler
e
d... h I'ob .nd ptnvld
dcn.ttlc>n
T. ka 2.4 Million to th o trilf>5 pl w"t of BIRDEM.

'The imp.oc. o( bu'ln.... on tl>o <eelet)'

.<ttvlt""

8A

0'

'or

Impleme,",,!lan of BM a. II pellcy Quldelln... on <.a pl141 . deqwcy I, 9"*'!1 10 ~""~

un.,..,<e<Ie"''''' kl'l p.l<t Irt th~
C\l.. ration of oonks. We _ OU" .. I~1 as. streng .nd elfectlw ~ .. In the fi n....dil sYslem and would ", main .... dy fur Ie.
!Io uteBJu l lm p~~rion.

00lI 5TAIlEHOUlEll

CUENTIi

To o ur sharon"'''''r who once . g

demoll5Uated thei, confident<! .. Ohaka Bilnk In 2009, I would II"" to expre, s my
hN ttf.illllonk,...., .1""... gr.!lll1lde. Nothing ..u.lles.; nn
. , . nd """I'" ptavlder mo'e II,"" ktoeplng W>!anll!/ .nd
. han,l" lid,,,, In....luable trust d urtng turbulent times, Mysincere not<! of glUntlJ"" go,," out to OUl dlstl"ll ul5lJed Ola lrman
llIId honorable m.....b... of tlW! Il<>ard ot IltreclOr1 fat 1n.1, con 'inuaus guidanc.o. encouragernl!l\l .nd .",powe r_n ~
which Is urUque Inth o history of awparate gOV'l!lThlnCe In Bilngl;Jde
l.&t bUI not UlI! .. t, I ""P"'" my apptl!da'ion fat
the foKe of <ifflcult [ondltl""
Ib<!lIeve wl, h Out Wength we ,h

unfted

~I'fa tb

a t OUI

~Al plO!fee',

who portOftned comrr....d.sbly In

be Ilble to . _ t"" llision.

The be b yet to camel

WI!h warAl r"9"rdS

S!ocen>Iy,

~---1I1l0nditet Fut. Ra5h1d

ManaglnQDirt'Clor

20

Glob I E(o" my

IR eTO

1<n

Acrordlng .to ~ '", pa n ~ IMF', the ;10001 K onDmy ~ p p""n to be exp,ncinll ag

""I d up by the >troI>V p<!rfoomanCl! ~ lIslan EalIlOITllesand na blUUtlD<t or mod;!st
1KOIIef)' el<evdlere. In the """'anced economle!, unprecedented Il'IbIlc InleI1lenbon
hio, .tablllzPd ;w:t IYl!)o ~nd ha, e. en fo5tl!fllCl ~ rewm to modest growm ~ !e'>'l!ra1
economies. Eme'1llng lII1d ~Ioplng erona"*' al1! 9"n"",lIy (urlher ahe~ a n Ihe
road to P'!C<M!f)',led by. ""u<gena n As1.. Therecent rebound In commodity priaS '
and suD partlYe POlicies an! helping many at me<! l!O)I\Qmles, Many countries In
eme<glno Europe and Ihe Commomw h
IIwlEpet1Ol!m !Jutes ha"" bee n ~ t
p;lrtlcularly h~ by tIie als!<, ami d....eicpments In these economies .... 9l'fler.llly
'alllling tllose e~re.. The pace of recovet)' is !lOw, and aalvlty remaln> far belo..
lIW<IlsU lewis. The plctuD is being led by a rebound In manLrliKturing and a tWll In
the In"" n:ory cycle. and there are some "lin, 01 gradually !ta bl ng retail ..re..
retumlng consum t a,nndenre; . nd firm"!. hauslno ","rla!u... As prospects have
Impro.l!l1 commodity prices /\ave stiJ9"d a comebaa,from lo'oB reached ...uer Ihls
year, and world trade IsDeglnnlng to pick up. The triggen for thl5 rebound a,e "'cog
publt polities aaos, MlIlaOCec and many em"rglng EalflOmles tho have ,u ppon"",
demand and an but ellmltlaled fea" of , gliJbal.diipr.,slon, The<! Iem co"ulbu,!,d to
the steepest drop " g loba aalYlty iIfIIl trade slnc.'Wo, ld W~ U. Cenual banks I'l!llCled
qulckty willi excepdooally large lmerl!$t rate ClJl3 as wei as lIntO/IVern;ooal mea......
to Injoa rtquldlty and su"aln credit. Go....mm""n launched major rl5GI1 stimulus
prngrJm' while . uppenlng b.-Its wlth guarantees ~ capita
etlon.. ogether,
ltlese me",ure, reduced lWlterta .. ty ~n d creased conftden<e. 'fOsten"ll ...
Impr<M!ment In fl",mclal t oolillons, is eoldeoced by rtrong rallies 00 00. m.ny
marl<e" and a rebound 0( In,ernatlon. " apltal flow s, H'....-~ . er, the ..,vlronm.fIt
~ery duUenglng fur rOWl!fd", bo~rt ore geneally, as e h..lled
rem
the Octtlbe. ioo9 Global Flnarid S
Ity R~n IG~lll, th~ n of. re"-~I Is
lgnlt1tant market <oncem. and a number 0( Mantl al stress Indltat0f5,emaln el..... ~od.
l..aobng ahead. the polley (ortes thau.e dri'llr>q,Vle curreru reoauod will ~ua lty bse
511""1111-1. and rear, IIId fl nd al f0e5Ithou !Jradually bu lng, "!lm .n ......
Sped(lcally. fi!Cll1stl"""us WI dim nWtand Inventory rebuilding .,,111 gradually e 115'
Influence. Mean
, can5UlT1 ptian ;wid
trnent a", gaining stJen'g<h only .10,,1)'
.. "na nt l coodItIo.... rem , dgl>t ill many ec:ooomies.. Thus, af't., canuaalnq by
about I perrent In '200J, glo aaMty I. foreGtrt to ~nd IJy abc ut 3 percenl
2010. '
Is 11 below th e raies achieved befall! the cil5l s, 'TlieSe prole<don5fellect
modest u p.... 'd
isIcns to those In tbe July 2009 WOlId <conomo< Outlook Updale.
Advaclced economies are projected to expand . Iugglshly Ih ro"ll~ much 012010, til
ulle1n~em mn
U> rise until l;>te, In the year. Annu" 9'OWlh In 201015
prOf"Cted txI be about I}!, pt!fCl!nl. follOWing a contr.K1lor1 of ] \; poercl!1lt In 2009. The
,,,co..,ry of acttvlty I. more dea1l~ e'/\dent all (ouM-quarteH7I'er,murdl-qllartl!i

bo,I<: """, 2009:04 to 2010c01. re" GOP Is ellP'?Cted to

nse by abollll ~ percent. up from ~n ~p" nslon of aboul
)\ percent (aM U ized) dum.;, the "",ood half of 2009
itl>d a 2 percent conlJacllon .. the fi~t half. In emerging
eoooomles. l1!al GOP growth k toreGIR to re.ldl afmolt 3
pe"e", 1<0 2010, ~p from 1\4 percent In 2lXl'l.
rebound I, dm.on by ab. Ind' and a number of ot her
emerlllllg ASIan eronoml,.,. O1JIer emergll'9 ecooomle,
are stag ing modest ""ovene" "",poned by poley
.t imu l~, . 1Id I"",IDI/Ing global
ad. and fin. nda l
cond ltiOM. Down, lde ri, k, to growth are rN edlng
gOOoolly but rem a concern. The mom s/lon.tem1 ri,k

"""""'Y

f1 t ho the
will stal Pr. mature g lt from
accommodative monet. ry and fiscal poIe l... , em, a
,IQnificant risk because the pollcylndoced rebound
might be mistaken for !be beginning of a strong reco....ry
In pnvrn! dem.nd. III venera~ the IraogIe global economy
, 1111 Seem, .ulne,.bl. 10 a Iimge of , hocks, Indudl ng
ri, lng ..1 prices. a virulent return of HI NI flu. gl!<Jll(lltlcal
events, or re,u'lJel11 prot eclJ<l<lkm.

ngl

h Etc"

According to the latest Monetary PolicyStatemenl l 51

of llangladesh ~. nl<, unll"" most other economies In the
region and e'"""here, olltpllt growth ln Bangl. desh has
Ihu. far been onl~ mildly Impad ed byt he ~ glob. 1
economIC recession. whh .>tIm.ted 5.9 percent re. 1GtW'
growth In FY 09 following the 6.2
growth of FY
OIL Financial markets and Instltullons In Bang ladesh
IPllWnoed frP.e of the IDOllC as.. U and contagion aflllcting
Ih. global fin. nclal marl<elS. . nd output activities
meeting d_ est'< clemand remalne:l robust In FY 09
0u1PUt actMtles for e>:POJtdl!m. nd weakened as e>:pens
declined f<>t molt Item, otherl h.n apparels and lextlles,
which al,o r.ced ,orne gr""1h slowdown. Decline In
capital mach nery imports In FY 09 illdlcaled
,Iugglshnes, In In.esunent actMt les. Despite Incipient
, Igns .it rec""ery or globa.l nn. nela] m.n;en and
Instltudons. efleas of the global 5lo'wdown .re widely
'o'IeWed as JI\:ely to ~ rt i ll mid 20IO,I.e, throughout the
whole of FY10. affealng me gr""m momentum In our
expoll man u raC1~rln g .,,(j InY2stmenl actl.I"""
Accordingly, f Y10 real GOP growth I, projected
coo,.,.atl,ely to be In !be rar>ge of 5.S to 6.D percent.

"".-en!

II ely to bo outperformed ' globol eco

fP(O"OI!f5
fo st~r .nd If tl-..various In ~tves proposed In h. Yl 0
n. llooal budget Indu
the Innova
public p rivilt~
parmeril1c> lPl'Pl'or lnfrn5truetural d....eIopment can be
lrnp lemern ed In right earnest, Inflation outcome and
outlook: FY 09 beg wlth double digit (to.OpeKent In
fiI9'l CPI Infl. lion. which came down
July oaf annool
to slr>gll! di9'l 1e'o'e Is by the secood Q 00 lIet aidI!d by g 00<l
domes1lc ~I outptJl and the collapse at global
commodll)' price bubbl. , Annual ....orag. 0'1 flatlon
continued declining In H2 FY09 17.3 percen In M.y 09],
.nd Is likely to h""e been about 7JJ percent In June 09 .
The plumme g tr!'fld> In gIob;tl commodity prices by
afid l" ge cea>edIn d1~ bE'Q lnnlng of 2009. Paifi to point
domestJc CPI lntIalIon bas started edolng UP from April
D9; anecd otal PVIdeoc ... loolcate concnued , tro ng
upward trend In ",al estate pdces. with the attondant
potonti;ll gged Impact 00 consumer prices. ,he dl!cfine
In dom.stlc annual a....rag. CPI nflallon I, therefore
likely 10 be , lower oncI ",,.II.r n FYl 0,and " proj ected to
be at M percent by June 2010
M,metilt)l outro me aOO out look; .tilJ1(e for Hl FY ] 0:
h domesllc credit
Double diqlt InflatiOn rate. and
growth (Well . bcwe ;zo pem!f1t year-o",yea,) In Ql f 'fO'J
desplre on.. t or glob,l recession prompted tl8'J
p rec.~ lfona ry 15 basls point h e In rope and "'..rse
repo Interest rates re, pectl'E I~ In Septem ber . nd
Noyember Illl. Sub seq u~ these hikes w.... "",...,od In
Ma<dl 09 as domestic Inflallooabated and credit growth
...sed down. whh Ihe global recesSIon ....akenlng ... poll
dema<1d .nd rNtE!d oulil'lt actlYtlies.. CAlm pethlv.""" oJ
expon growth at
the app.rel' sedOf , U\U Ine<l
double dig
e imports <wed down falter
with good domesOC food gtain output and lane. Import
prices of major comrnodl~es r.cllJdlng fuel 011. Worker>'
remitta ncE Inflows l=eased by 22.3 pertent In FY O'J
desp~ e decline n ne w rea utun enn In host m.rl<ets
abroad. The resllltant ,w elling bop curr""t account
surplu, kept the local fOfelgn ellCha. and T. b market
....ry I,qutd thrOO!lhout FY 09. a8 pUrchasetl USD l AS
bll
from me local Inter bank marke1 ln FY 09, ta\lng
foreign e>och. nge reseN6 to new height, e:raedi"'l US D
'billion by 04 FY 0ge.en afterth. lumpy IlImomhlyACU
sewement. . ka r.ma lrled under .ppredatlon "",,,ure

Ie""'..

DYe'"

22

t"""!.llhoul fY 09 beaus. of slowe ""dlOW! for 111lIXl't>,

but B9 acred to k..,p Ta,," at somewhat und.rvalued

nai:lIe I....et WlIh CllfMinuOU. forl!!gnl!>d"QI! purchase.

fro the Ioal mar\lzt. to proteo: "" port oompeotiveness
and .10 malnt. ln Incentrve fo r Innows from workers
abroad lMtll.a vi"'" 10 s!>o<JnIJ up domestIC demand Il1l
kept a edlt roDdltlOOs . .. y for bo<row~ refralnlll\l from
reverse rep<> ope rations portic~ r ly In ()4 fY 09, ... ..."9
the Taka liquid ity from Its fo,,"gn exchange purchases
lJnS{e rlllzed. YIelds 011 lreaw ry securmes and 11\1...,<1
rates o n baM d.posits declined promplly n tM """k~
awas!! with liquidity, but ..1tIl no com!SpoOOi"9 decline n
Iendlnq Interest rates or servke ch' lJjes and fees. B8 hod
to add ress this "roadon Wlth mandato ry rat her tha n
ad. hory fnsmlClioos to banks .boot the '"""Is of I
"9
Interest rates and service chat9es1f..... particularlyfor \he
prlority erooorn ic sector.. 1I8 Is keeping d ose "'atch o n
milllet behaVIOr of banks iIfl<l shall . pproprlately red ress
the do wlYWird stickIness 01 len ng terest rates tI)'
InsIll
comp('l:ltNe loan PfioD9 praaJ ces the m.rket.
To h"'" the real e<on0"'l' sustain g rowth momentum II
tile lKes"onal)' g lobal e n\lllOl1me n~ B8<h II coounue tc
m.lntaln easy credit conditions In FVlo. wITh special
an enttcn to the crooit needs 01 secto rs hurt by the
!lowdown and of se<!on like agriculture and !'>!lIE thus ~
I n .~ualely served by the m.rIc ~ . TM monetary
program for FY 10 I:s des igned 10 accommodilte 6.0
perceIlt real GVP vrowth.

Inflation proJec1>d at 6.S

perrEN by June 2OTo. 8esldes iO(cOO1roodat lr>g

the po blc
sector borrowing needs eslImated .. the FY 10 n. oona!

blldget lI".red tow. rds meeti"ll the ch lenges from 1M

Ofl9Olng global recessloo, 811's moneta ry llfOIIram ",I
amply accommodate the cr!!<lit needs of the prlv.te
sector for attaining the targeted I"" of reol (:IJI' vrowth.
88 has taken !tel" to st r""'1then Its nnan d , ' sector
""",slgltl. p.rticularly In areas 01 liquidity. cap ital
adequacy aI1d rlsk ," an.me n ~ Soae1n9 to It thill banks
and f1nanaal lnstllUtlons In 8angladesh comlnu. to be In

lIOOd shape to SlClPCft our KOlIornic growth eIIam; free

ma lalse ~ now
afflctlng the global flnaoctal sy~t. m. There are s...../a!
<O\Iea t$ and d""",slde ",ItS [0 the growth and InflatIOn
apectatlons Underlying the monetary stAnce outlined
above fo< F'f , o. On \he el<tl!rnal front, attt>ooqll growtll
pro . elions for major ecooornies . re OOH being upgraded

of cOlTl, g n and InslA bility from the

23

mey ar. yet to

be tufty conndent that

global marlce<s iV1d lnsuwdons . re o n path 01solid broad
based recoyery. '110
,ecoy..,. falte" or slack..,., Our
ell1>Ort lI'owth. worlo:ers' remillalnce Inflows an d
Irwestment . ctivitles may ....ken In FV 10. Yrith ""9"M
~pl lcat lo ns or GDfl groWl'" r he opposite sc....no of
tI)' fore<asterl,

un"" pectedlyfaster global ~ will alio In.oIw """.

risk of ....cerb.tlno domestJc InnatJo", Irom possib lf:
relgnltlon 01 glob.1 co,"",odltjl prke ~perulatloo ..,d reeme,,"ence of price bubbles. 01\ the do mestic from.
agrladtural q""""h will dep end, beside' f....,rablf:
....the. and reasonilble market prices; on ad""""te and
tWneIy avallabllity at
tion, rertillZl!fS andother Inpull
to tho growers, a ch. llenge not . Iwoys we add ressed In
the past..The stlOJ'9 le..orohlt> In the ~ ... e millklry
and 88's ""emly . nnollllCl!d ' lPiculturai credit program
"' ill hopefully main
a S<J1llXlf11.... supply sid. sJtuatloo
... the ag riculture sect or. nlra>trlKtU ral Inadequaci es,
pa rtlcularty of power and oas remain as before severe
constrai nts for .apid growth In all ""onomle se<!orJ;
",,1Jdr>q InfrastrIKture proiects . nd the public prlvat.
.partnership program . """"need In the FY 10 natIOnal
l>ud(jet
II need to De brought to rapld fruition fO'
growth illplrations of tile economy to be fu Illed. B8 .. m
stal'd ready to modify monetary stance alJ(>fOllrlalely
towards more act",e <lomond managemem (tlght. nlng
aedit fO( ~lS..,tl .1. rDnsump!ion Of speculation) f
slow output responses In ~ pr""alling .... y """"'tory
.coodltlons te<><! to escalate domes tk lnfl. tloo and 10
erode competlttv...... of ex<1la"ll" raee of T. ka. BB shan
contlnu
monitor domest ic and ""lem .1 d..... lopmentl
and stand ready to respood . ppmp rlale ly to chall""ge5
for macrofillanclal stabl t f and lor the growth . nd
;><M!rty redUCTion asptraoon> 01the government ancl the
~ tlon ~ Iargl!.

t.

icy t

pproat:he.s

9ll d.....' up m<lfI<!t,ry pragra"" for eam flnanctal '1'!

Uuly-JOOI! ~ accommoda In9 monetary growth adequat e
lor . aalnlng the t>IOjeaed rcal GOI' grovrth with 'nnatiOfl
n tlw! liIrgeted ' ange. Broad money (M2. currency In
eweutotlon plus time and dem and dEposits) growth path
Is me lmermedl'lI! tlrget In the program, with Re>efW
Monl!')'
currency In d rculatlon a!>d balances of
scheduled b.nks with BIl) g rowth path . s opera ting

t" QI!! of 88, The IlfOQI"iIfT1 alsolriICb tho Qrowth path. of

...."....1 other 999r"9"''''' sub "9Ilreg.at "" <11. a>'ll>l
and bill\)' sl60 (domestic and ooilln essots. credll to
public and privati! sea"", curronocy I.. d rcu bOfl.
deman d ...cl time def)O!llS and '0 fo<th~ to htlp assess
tl>e Ilrowttl support""'""" snd likely Inflaoonaty Impact
of monl!tO ry upal'l5ion., R.!\,e rse "'00 atld rl!PO Interest
late> . re 8'. day to day lltsuum enu On I)O!ndnll the
9"""'" path 0( lesefW mooey, ultlmateJv to Influence
",fl."lon vi. 9fDWlh p. 0( broad money. Cash Reserve
Rallo (eM) and 5.tatuto ", liquidity R.tlo ISUO for
1dw!du"' d ban ks are too Dther monetal)' policy tODI",
used sparingly In slwatlor>s of drastic 1mb;Jlance. from
m. Jor silod<5. Recemlr, In the backdrop of til . global
economic . loMJown the ,OO1lIl<! reverse repo Dperatlon>
a", elso belroq used _rl ngly, lo ~e p credit condition.
"'y; and 88. lnsuuctlons to b .nks are now more
orul5te", on CIlannellnog of adequa e aedtt to sectors like
_gocultur nd S
not well served by 1M market,
~ gricuJtu ra l lend ing has been miOd. obllgatDry fDr an
rom merclal banl<s, with aceess to . opropda te refln. nce
wpport for agllCul,ural. SME and ot her priority sector
lend'
Ihl. dlrecticnal bia. ln r r
policies INended
to enhance the Ind uslveness of fi neta' .l!fV\ces and of
economic IlfOW1h b)' .ddtesslnll market 11.1'5and I......
'" "",ching out to
p<JJlOJLnlon segments. ea's IK ent
policy Instructlo". 10 bafl&:l. also Indude broader . ,ray
of
on Interest rates and 1.... 1. of ch.rvestree5 for
,ervlc'" 10 cioenu In priority economic sect.,... Tht! wa5
neces' lta,ed by me 510m of banks In 10we,Ing 1l!<IdIng
Interest rales and ch"'9l!" tees In the pr..... lIlnll e.sy and
vO$'f liqulll markel coodltlDn5, while prompttr slash1n9
deposit Intl!f'2Sl fates. To the extrot th . t depostto,. and
bar""",.,. res>den, In econo""", ~b limited ope nnes5
like B.angJadesh e captl.e cllenu of fin.nml 5l! Ice
providers In tne loe. markeL \he<Je regu lato ')'
Intervent lDns In l be pricing practices of banks haYe a
co nsumer p' 0tecooo I. Ilonale.

ulrm9s

Agrkutt ur. sector pe rformed 5Irongl)', wPPorted by

I.vorabl. _amer ami optimistic pric. expectaoom
overcomOng adverlitle. of Ih. ~ I n g y...r, but growUl
n Indust')' and se rvices .... . kened , mainly d ue to
wealu!nlr>g of e>:POrt dema nd,
Al/r1cultur . : Owrall out pu, of th e ' agrlruln re secto!
...-- by U percenl ln FY 09. aa ilin:st 12 percent of FY 08-

The crops & IlofbcYtute and ilflim.1 f.r mong sub-sectors

reglstet'd h/lg her output g ro..m In FY 011 ( ~.O and 3.5
pertffil respealvely, ag.lnst previOU5 yea ~. 2.7 and 2.4
pe rtrotl. FY 09 arowlh In the forestry 5Ub-Sector WiB at
tile same 5..5 percem Je. of 111. preced<'ll yeal. A5t>ery
subsectnr glVWlh we. kened In FY09 10 4.0 pelce nt from
til. precedinJ;j ye 4.2 peKl' n~ du e to ck!c1lne In mrtmp
..pom.
Induflry: Industiy sector ou\pOt 9fl!W by i.9 pen:ent In
fY09, weakenlnog /Tom preceding year'. 6.8 Pt!Keflt
Manufacturing sub-sector gro..m wea\o!ned 51gnlflGilnlly
lio", 7.2 percent an yoa to 5.9 pero!nt In ~ Y09; pow....
gal .nd water sub-sector C}l'OWlh dipped tD 45 pe",e nl In
fY 09 from 6.B pe rcent Df FV 08, refleatng the persistent
dequacy Df phy.lco l InfraslnJct ure (n . uppo rtlng
growth erforts t he ......."11 & llWrrylng wl>-seaor h. d
modest 9'OWlh 901 n5, from 8.9 pe<cenl 01 fY 08 to 9,4
perte<>! In FY 09. Constroetion suo-secto r maintaif'lecl FY
09 growth . 1 the same5.7 percent level of FY 08.

S..vlu. : Outpu, of the 5.rvlces sector IIr.... by 6.3

perce<>! In FY 09, ....!lenlng frDm 65 Pl!ro!nl Df FY 0&
Growth n lhe tramP"'t. ~ge and co mmunlcotlOfl
sub-sector dedlned 10 1.6 perc.nt" from 8..6 percent of FY
08; In the
nclal seMce5 5ub-5ector, growm _
ro
8.0 pe<cenl In FY 09 from 8.9 percent oj FY ca. CirowUl

Growth: Real GDP growth attained k1 FY 091> esllmated

decline In both of these major 5tJb.5ectors .... '" caused

mainly by sIowdDwn In growth of Imports .nd ""IlQItS In
FY 09, The high, at>ove-mm d FY 09 ag rlcultute 5l!CtOf
growth m.y be hard to repeat or oUlperform In FY 10,
e"ept perha ps In the fl5he ry sub-sectDr If the e.pott
market5 abroad c. n come out of recession QuIO;Jy, Wt:t1
tile stroog A1Jl1'D't rommnmenu from the lIO"emrnenl
and SS, f V 10 DUtput gr<l'tlttl In . g rlcull",e ran be

by aIlSat 5.9 percent agaln5l5.2 perc_ growth of FY 08

.nd the
I.' 5..5 pe rtent ....get for FY09, 5Ub>eque",ly
'....15ed <Iownw. rd ." the g lob.al downturn .la,ted
lmlMctlng e.poet grewth . nd m eslml!flt mome nw""

"lfJI'l!eted to be
0' nea' ~ .o perc. nt" batrlng
elm. tIc0< other rna 01 debacleA"",. mef\1lng atten~ ""
rowards susrn/c1oed hi<;lh agricultural output growtl1 ~
d'l! medi um t. rm Inclucle large sc. 1e dom.stlc

2.

Cl)no",l ( OVtCl)'" IOPd l)ullOO

.00..

24

production of high quality seeds (including hybrids/super

2009, prices of fuel oil and some food items have actually

hybrids) of crop varieties suited to different regions of the

increased thereafter. The April 09 issue of IMF's WED

country; efficient, market-based availability of production

forecasts one percent decline in consumer prices in

inputs; transportation, warehousing and processing of

emerging and developing economies, and a small increase

agricultural output; crop insurance (usually hard to initiate)

to positive (one half percent increaseto 0.3 percent) in the

to protect growers and their lenders against losses from

advanced economies. In Bangladesh point to point CPI

output risk and price risk. Subsidies for a well designed crop

inflation hasedged up in April and May 09; real estate prices

insuranceschemewill be a more efficient alternative to those

continue in strong upward trend with potential for some

involved in the current (not very well managed) practices of

lagged impact on consumer prices; and the liquidity

government purchases at support prices and loan waivers

overhang in the market if prolonged and not absorbed in

etc after major crop losses. Outlook for FY10 growth in

productive and supply augmenting uses may also have

industry and services will depend substantially on pickup in

inflationary consequences. The decline in annual average

export demand and in new investment activities. If the global

CPI inflation in FY10 is therefore expected to be smaller and

downturn deepensand prolongs, export growth may not be

slower, from 7.0 percent of end FY09 to 6.5 percent by end

sustained, and large scale return of migrant workers losing

FY10{June 10). Effective implementation of the various

jobs in recession ridden host countries may add to difficulties

measures announced in the FY 10 national budget for

in the domestic scene.With these risks in view, overall FY 10

stimulating economic activities and investment including

output growth has been projected conservatively to be in

the

the range of 5.5-6.0 percent. There are indications however

development will be important not just for growth but also

of onset of global recovery; major global stock markets have

for keeping inflationary pressures in check. The monetary

recouped much of the losses incurred at the height of crisis;

program for FY 10 accordingly projects the foreign

public

private

partnership

for

infrastructural

some of the distressed US financial giants have already paid

exchange reserves by the end of FY 10 to be about half a

back the government ballout money they drew earlier; and

biIIion USO lower than at end FY09, the reserve drawdown

forecasters including those in IMF and WB have of late

for import of investment and consumption goods abating

upgraded their global growth forecasts. In Bangladesh the

inflationary concerns by using up the liquidity overhang in

FY10 national budget announced expanded social safety net

Takamoney market.

expenditures and support packages for sectors hurt by the

global slowdown. Theseflscal measures and BB's supportive
monetary policies will provide some cushion against
weakening of domestic demand and economic activities; and
Bangladesh economy may well outperform the 6.0 percent
real GOP growth projection, particularly if the infrastructure
development initiatives induding PPP can be implemented
in right earnest.

Money and Cl'f!dit developments: Growth trends of broad

money and domestic credit were on upward bias relative to
program paths in H1 FY09 with year-on-year credit growth
rate well above twenty percent. To nudge down credit
growth toward program path BBraisedby 25 basis points its
repo and reverse repo interest rates in September and
November 08 respectively.Credit demand easeddown in H2
FY 09 as import growth slowed down due to lower food

25

Inflation: The 2008 burst in global commodity price bubble

grain import needs and lower global prices of commodities,

impacted domestic inflation in Bangladesh with some lag.

investment activities slackened in the recessionary external

The Inflationary pressures from FY08 continued in 01 FY09

situation. Both foreign exchange and Taka liqUidity swelled

with annual average CPI inflation at double digit levels;

in the domestic market in the later months of FY 09; with

easing thereafter with good domestic harvest bringing

low outflows for imports and other settlements from the

down food grain prices and with faIling import prices of fuel

buoyant inflows of workers' remittances and export receipts.

oil and other commodities. Inflation data for end FY 09

To keep domestic borrowing cond itions easy in the

(June09) are yet to be available, but is likely to have been at

recessionary global environment BB reversed in March 09

or around 7.0 percent. The plummeting trends in global

its earlier hike in repo and reverse repo interest rates, and

commodity prices by and large ceased in the beginning of

in 04 FY 09 also refrained from reverse repo operations,

leaving unsterilized the Taka liquidity from its regular

activities against likely shocks from the ongoing global

purchase of USD funds from the interbank market. The

downturn and to restore investment momentum. Key

resultant surge in Taka liquidity meant surge in reserve

projections of monetary and credit growth in the FY 10

money (currencyin circulation pius balances of bankswith

monetary program may be seenat last coiumn ofTabie 2;

BB) growth Taka balances of bankswith BB stood Taka 98.9

the program is designed to accommodate 6.0 percent reai

billion in excess of CRR asof end FY 09. interbank overnight

GDP growth, with 6.5 percent inflation and estimated 3.0

interest rates plummeted as low as 0.10 percent, yields on

percent decline in income velocity of money. Besides

treasury bonds/bills and interest rates on deposits

tracking the monetary and credit aggregates, BB will

declined, but

maintain constant watch on trends of exchange rates and

banks displayed no enthusiasm for

corresponding decline in their lending interest rates. BB

interest rates, intervening as and when necessary to

addressed this downward stickiness of lending interest

protect competitiveness of Taka and to maintain orderly,

rates by prescribing ceilings on lending interest rates and

stable conditions congenial for both savers and investors.

charges feesfor borrowers in priority economic sectors, To

The monetary stance will be modified appropriately if

promote more inclusiveequitable and broad based growth

growth or inflation prospects change substantially,

by redressing the market gaps and failures, BB has taken

modifications effected or intended will be reported in the

more extensive recourse to mandatory rather than advisory

next MPS due in January2010.

directional guidance and refinance support for bank

lending to agriculture(now obligatory for all commercial
banks) and other priority sectors like SME not served
adequately or spontaneously by the market. Because
branch-based delivery of small ioans to rurai farming
households will be costly and unviabie for urban based
commercial banksthey are getting engaged in agricultural
lending indirectly through locally active microfinance
organizations;they can also creatively engage with mobile
phone companies to introduce mobile phone based
banking, using the IT platforms and area agent networks of
the later to disburseand recover ioansdirectly to and from
small borrowers in rural areas, expanding into new
customer

bases cost effectively and quickly. The

government and BB has finalized steps for obtaining

sovereign credit rating for Bangladesh, to facilitate
borroWing abroad by private sector industrial enterprises
and confirmation of credit iines on more favorable terms.
Country risk premiums charged on loans and credit
confirmation lines are reportedly higher for unrated
countries. Sovereign credit rating of Bangladesh is
therefore expected to lower these costs for private sector
borrowers and banks; there are no plans however for
government borrowing on non-concessionai commercial
terms from the international market.

As usual, there are severai caveats and downside risksto

the growth and inflation expectations (domestic and
external) underlying the monetary stance outlined for FY
10.The global economy is recovering from recession and
growth forecasts are being upgraded, but analyst are 5tH!
not altogether sanguine that the global financial markets
and institutions are out of the woods and on course of
solid broad based recovery. If missteps cause globa i
recovery to falter or slacken, growth in our exports and
workers' remittance inflows may not be sustained, and
investment activit ies may weaken further; with negative
consequences for growth and economic well-being. The
opposite scenario of unexpectediy rapid global recovery
will heighten risks of re-kindling of giobal commodity
price speculation and reemergence of price bubbles,
exacerbating inflat ion in our economy now carrying large
overhang of excess liquidity. in the domestic front,
reaping fruits from the bold initiatives of the FY 10
national budget towards addressing the infrastructure
deficiencies and speeding up growth in various sectors
will

depend

crucially on

capacity

for

efficient

implementation, perennial underperformance of ADPs in

annual national budgets indicate capacity limitations. BB
is strengthening oversight on liquidity, capital adequacy
and risk management in banks and financiai institutions

Monetary stane for Hl FY 10

The supportive monetary conditions prevalent in H2 FY 09
will be continued in FY 10 to cushion domestic economic

to protect the domestic financiai sector from instabilities

of the kind now afflicting markets in advanced
economies; in the last MPS issued in January 09, BB

26

mentioned the need for appropriate limits preventing

customers. In line with that commitment the bank is always

excessive leveraging by corporates, to reduce the risksof

evolving itself to provide seamless processes and services

their financial distress in economic downturns. liquidity

to its customers. Centralization of its Trade Services and

requirements and leveraging limits may also be desirable

Credit Operationsis one step forward to that direction. This

for capital market institutions in broker-dealer roles. BB

important initiative is aligned with the CRM guideline of

stands ready for engagement with other regulators and

Bangladesh Bank. On the recommendation of the top

stakeholders in following up such issues. Over the longer

management of the Bank, the Executive Committee

term, fostering cultural attitudes relying predominantly

approved the centralization initiatives of the bank in its

on equity-based rather than debt-based investments and

557th EC meeting held on 12 February 2008. The

on disposable income-based rather than credit-based

centralization of these functions lead to better control and

consumption may be better safeguards of financial

monitoring and minimizing of risks, and helps in

stability than arrays of regulations of ever increasing

segregationof duties and responsibilities aswell as reduces

complexity. BB will continually monitor the unfolding

different type of irregularities. It also helps in maintaining

domestic and external developments, and will stand

uniform process and policy, rational and optimum

ready to intervene appropriately to meet challenges for

utilization of manpower and taking fuJI advantageof bank's

macrofinancial stability and for the growth and poverty

existing cutting edge technology platform.

reduction aspirations of the government and the

population at large.

Accordingly a high-powered project steering committee

chaired by Managing Director has been formed in

Meanwhile, Bangladesh Bank has relaxed a regulation

February 18,2009and as per the decision of the project

allowing commercial banks to engage in forward dealing

steering committee all branches of Dhaka Bank have

of foreign exchange freely to add an impetus to the

been brought under credit centralization in a phase-wise

country's forex market activities. The new regulation has

manner starting from April 01,2009.

empowered foreign exchange dealer banks to deal with

forward trade in foreign exchange without any

It is a milestone for Dhaka Bank Limited and the whole

restriction. The Bangladesh Bank (BB) issued a circular in

Credit Operations and Trade related operations are being

this connection on October 4, 2009 asking the

processedfrom a Central Processing Center (CPC) located

commercial banks to follow the new regulation in

at BGMEA Bhaban, Karwan Bazar, Dhaka with full

transaction of foreign exchangethrough forward deals.

satisfaction of its different stakeholders.

Management

Corpor te Social Responsibility (CS

The Managing Director heads the Management team of

In today's competitive globaIised economy, CSR has

Dhaka Bank Ltd. Several management committees have

assumed a great deal of importance for all business

been formed to handle the banking operation and

enterprises.

identifying and managing risk. The committees are

management processes by companies to have an overall

MANCOM, ALCO. As per Bangladesh Bank's instruction

positive impact on society. CSR means continuing

It enhances adoption

of

businesses

"BASEL II Implementation Team" has been formed which

commitment by businesses to behave ethically and

will be responsible for proper implementation of BASEL []

contribute to economic development through efforts to

capital adequacy guidelines in the Bank.The guidelines

improve the quality of life of the workforce and their

have been issued by Bangladesh Bank recently but the

families as well as the local community and society at

target date for implementation is 31st December 2009.

large. Adoption of CSR is a crucial need for promoting

sustainable development and long-term advancement of

Centr Iization of Credit &Tr deOperations

businesses. Indeed, CSR is a growing demand being

It is alwaysan endeavor of Dhaka BankLimited to offer the

made by the investors and marketers globally. The

best possible and world-class service experience to its

importance that is attached to the concepts like Ethical

Trading Initiatives (ET!) does amply bear this out. Thus,

27

the demand for products and exportable of companies

oriented activities. For all practical pu rposes, CSR has now

and businesses in the global market-place depends

become a synonym for social reporting by responsible

largely on the degree of their compliance with ETI codes.

companies and business entities. It is a relat ively new

Such codes relate

issues concerning workers'

discipline that is responding to increasing demands in

productivity and retention, supply chain management,

society for accountability and transparency. It aims to

meeting consumers' concerns, building community

strike a balance between stakeholders' reason able

to

relationships and compliance with local and international

expectations and efforts by businesses to run t hei r

laws. In this context, business houses in Bangladesh, as in

operations

elsewhere in the world, do need to adopt CSR before it

international standard for social reporting has come into

gets too late. Businesses competing in the global

a sharp focus. This standard seeks to improve th e

economy can no longer afford to ignore the issues that

accountability and overall performance of business

are related to CSR. A new paradigm of marketing for

organisations by increasing quality in social and eth ical

successfully.

In

this

connection,

t he

successful businesses are, therefore, developing around

accounting, auditing and reporti ng (SEAAR). It is

CSR. Consumers and stakeholders are now increasingly

essentially a process standard, not a substantive

concerned about the ethical standards. ln today's world,

performance standard.

CSR represents an essential measure for quality control

and human rights promotion. Hence, it needs to be
implemented particularly at all levels of production-

Dhaka Bank feels proud for its strong involvement with the
CSR and t he Bankhas already won some awards on CSR.

Th list of Dhaka Bank'sCSR activities

CSRActivities in the Year 2009

Expenditure incurred
against CSRactivities

Donation to Prime Minister's Relief Fund for bereaved family members of the Army
Officers martyred during the recent carnage at BDRHead Quarter, Peelkhan a, Dhaka on
March 10, 2009

25 lac

Donation to Prime Minister's Relief Fund f or bereaved family members ofTwo Army
Officers martyred during the carnage at BDRHead Quarter, Peelkhana, Dhaka on April
1,2009.

9.60 Lac

Donation to BIRDEM Hospital in 2009.

24 lac

Donation to Center for Women & Child Health Hospital in 2009.

24 lac

Contribution to Bangladesh Tennis Federation (BTF) as sponsorship of 23 m Banqladesh

lnternational Junior Tennis Championships 2009.

5 Lac

Financial assistance for Shahidbagh Jame Mosque, Dhaka.

SO lac

Financial assistance for Kapasatia Jame Mosque, Hossainpur, Kishoregonj.

20 lac

Donation to Bangladesh Hockey Federation for sponsorship of Jawharlal Nehru Cup

Hockey Tournament.

10lac

Donation for the Aila Cyclone Victims

10lac

Donate 2 unit of Ambulances to be used by the Highway Police.

Donation of to the Players and Officials of National Hockey Team fo r winning 3 ra AHP
Cup Tournament held in Singapore.

4B.B6Lac
2 Lac

Donation to Bangladesh Athletic Federation Sponsorship of 25 UI National Junior

Athletic Championships 2009.

Blac

Sponsorship of Air Ticket an International player to participate in International Chess

Tournament to be held in Hungary.

O.BOlac

Donation to Bangladesh Olympic Association for sponsorsh ip of BOA Sports

Development lottery 2009.

10lac

28

and Efficiency cf Internal

& Compliance

Scope of an Internal Control & Compliance

Function

The bank has designed its internal control System based

From a general point of view, the scope of internal

on the guidelines framed by Bangladesh Bank in

control & Compliance includes:

Managing Core Risks in Banking: Internal Control &

the examination and evaluation of the adequacy and

on r

Compliance

and

Guideline

on

Information

&

Communication Technology for Scheduled Banks and

Financial Institutions.

effectiveness ofthe internal control systems;

the review of the application and effectiveness of risk
management

procedures

and

risk assessment

methodologies;

The Audit and lnternal Control Division covers all areas

of banking operational activities including IS/[T

the review of the management and financial information

Infrastructure and [S/IT Governance where risk of

systems, including the electronic informati on system

operational losses may arise. The division also monitors

and electronic banking services;

and

follow-up

the

ethical

standards

through

the review of the Completeness, Accuracy, Validity and

Departmenta[ Control Function Check List (DCFCl),

Restrictedaccess (CAVR) of the accounting records and

Loan Documentation Check List (LDCL) and Ouarterly

Com pleteness,

Operation Reports.

Occurrence,

Valuation/A[location,

Right/Obligation

and

Existence/

Presentation!

Disclosure (l.e. Flnanclal Statement Assertions) of the

In order to have efficient, effective and compliant

financial reports;

Internal Control system, the bank has strengthened and

segregated its 'Audit and Internal Control Division' into

the review of the bank's system of assessing its risk

capital;

four separate units:

1.Audit & Inspection;

the appraisal of the economy and efficiency of the

operations;

2.Information System/lntorrnatlon Technology Audit;

3. Compliance; and

the review of the systems established to ensure

compliance with legal and regulatory requirements,

4. Monitoring.

codes of conduct and the imp lementation of policies

and procedures;

The Management Committee (MANCOM) of the Bank

monitors the effectiveness of the internal control

the testing of the reliability and timeliness of the

regulatory reporting; and

functions time to time. The MANCOM provides

certification on overall adequacy and effectiveness of

the carrying-out of special investigations.

the internal control system based on Bank's policy and

procedure to the Board of Director on yearly Basis.

Indep ndent Function

Dhaka Bank'sInternal Control & Compliance's function is

Risk Based Internal Audit In 2009

independent and is given an appropriate standing

lnternal audit is part of the ongoing monitoring of

within the Bank and carries out its assignments with

Dhaka Bank's internal controls system and its internal

objectiVity and impartiality.

capital assessment procedure. Internal Control &

29

Compliance provides an independent assessment of

Impartiality

the adequacy of, and compliance with, the Bank's

Dhaka Bank's Internal Control & Compliance's function is

established policies and procedures. As such, the

objective and impartial, l.e. it is in a position to perform its

internal control function assists the senior management

assignments free from bias and interference. As required

and the Board of Directors in the efficient and effective

to

discharge of their responsibilities.

Compliance is not involved in the operations of the Bank.

maintain

Impartiality the Internal Control &

AuditCharter

audit plan included the timing and frequency of planned

Dhaka Bank has an internal audit charter that enhances

audits. This audit plan was based on a met hodical control

the standing and authority of the internal audit function

risk assessment that documents the int ernal auditor's

within the Bank. The charter includes (i) the objectives

understanding of t he Bank's significant activities and their

and scope of the internal audit function; (ii) The internal

associated risks.

audit division's position within the Bank, its powers,

responsibilities and relations with other control functions;

Sh riahAudit

and (iii) the accountability of the head of the internal

Dhaka Bank has been providing Islamic Banking services

to it s customers through two branches in Dhaka and

audit department.

Chittagong. The Muraq ib under Shariah Council conducts

Professional Competence

shariah audit in these two branches at least twice in t he

Dhaka Bank has put utmost effort to maintain adequate

year as per instruction given by Shariah Council of t he

professional competence of its Internal Control &

Bank.Through shariah audit it is to confi rm compliance of

Compliance's Division, as it is essential for the proper

shariah in all kinds of Mudarabah Amanat (Deposit) and

functioning of the Bank's internal audit function.

Investment Accounts. Shariah aud it main ly covers to

Management arranges regular trainings and workshops

confirm sale & pu rchase in Murabaha and Bai-Muazzal

in a bid to improve competence level ofthe Division.

Investment, to ascertain doubtful income of the branch

RiskFocus and Audit Plan

during

the

per iod,

checking

all

kinds

of

agreemenUcontracts whether those are in accordance

Dhaka Bank's Audit & Internal Control Division prepared a

with the principles of Islamic Shariah, to train up officers of

plan for 2009 for all the assignments to be performed. The

two branches with the knowledge of Islamic Banking etc.

Internal AuditS tistics

Sin

Nature of Audit

2009
No. of Branches/
Divisions/Units

1.

Comprehensive Inspection

2008

Frequency

No. of Branches/
Divisions/Units

Frequency

42 Branches

Yearly

38 Branches

Yearly

2 Branches

Half Yearly

2 Branches

Half Yearly

1 Branch

Quarterly

11 Divisions/Units

Yearly

6 Divisions

Yearly

2.

Special
Inspections/Investigations

16 Branches

Surprise

8 Branches

Surprise

3.

Regular Inspection

Capital Market
Services

Monthly.

Capital Market
Service

Fortnightly

4.

Review on Profitability

Saidpur Branch

Surprise

Chittagong Region

Surprise

Khatungonj Branch

5.

Nostro Accounts Review

Finance &
Accounts Div ision

Quarterly

Finance &
Accounts Div.

Quarterly

6.

Global Aud it Reporting

Global

Yearly

Global

Yearly

7.

Health of the Bank Reporting

Global

Yearly

Global

Yearly

30

for
on Syst ms (15) I Information
nology (In Audit in 2009

frauds and potential lossesto an online banking system.

Information systems audit is a part of the overall audit

Dhaka Bank has adopted a risk-based audit approach for

process, which is one of the facilitators for good

its information systems and information technology viz.:

corporate governance in the Bank. Information systems

1.

risk of unauthorized modification can be a source of

are the lifeblood of Dhaka Bank's business; all the

Inventory the information systems in use in the Bank

and categorize them.

branches and divisions are interconnected and providing

Online services to the valued clients. Computer systems

Determine which of the systems impact critical

functions or assets, such as money, customers,

do not merely record business transactions but actually

decision making, and how close to real time they

drive the key business processes of the Bank.

operate.
The primary functions of an IS/ITaudit are to evaluate the
system's efficacy and security protocols, in particular, to

Assess risks that affect these systems and the severity

of impact on the business.

evaluate the Bank's ability to protect its information

assets and properly dispense information to authorized

Rankthe systems based on the assessmentand decide

parties. The IS/IT audit focuses on determining risks that

the audit priority, resources, schedule and frequency.

are relevant to information assets, and in assessing &

suggesting controls in order to reduce or mitigate these
risks to acceptable level. IS/IT audits included audit of (i)
Systems and Applications (ii) Information Processing
Facilities (iii) Systems Development (iv) Management of
[SIlT and Enterprise Architecture (v) Telecommunications
and lntranets,

Elements of IS Audit
In the advent of complex IT culture Dhaka Bank is

The [5 Audit Unit of Dhaka Bank drew up a yearly audit

plan that listed the audits that would be performed
during the year 2009 aswell asthe resourcesrequired.

The Audit Process

Dhaka Bank [S/IT audit is performed to determine the
Bank's level of compliance with int ernal and external
requirements (l.e. legal and regulatory) and deals with:

Electronic data, persona l data, copyrights and ecommerce etc.

reasonably sensitive to prevalent business risks and

security threats. Assurances about an information system

can be obtained only if all the elements are appropriately

The manner in which computers, programs and data

evaluated and rightly secured. The major elements of IS

audit in Dhaka Bank is classified in the following fashion:

are stored.

Physicaland environmental review

Systemadministration review
Application software review.
Network security review.

Computer system practices and controls .

Document pertinent to laws and regulations.

[T Divisions' function and activity documents that
address adherence to laws applicable for banks.

IT organizational structure (l.e. segregation of duties)

and human capital.

Business continuity review.

Data integrity review.

Key Chall nges

All these elements need to be adequately addressed to

that are highly technical. Such technical depth was

present to management a clear assessmentof the system

required to perform effective [5 audits. At the same time it

to get the total view of the issuesand problems.

was

ISaudit often involves finding and recording observations

necessary

to

translate

audit

findings

into

vulnerabilities and businessesimpacts to which operating

31

Risk-based Approach

managers and senior management could relate. Dhaka

While there are risks inherent to information systems,

Bank can reasonably claim success in responding to its

these risks impact different systems in different ways. The

key challenges for 2009.

ISIIT Audit Statistics of 2009

SIn

Natur@ of Audit

2009

2008

No. of Branches/
Divisions/Units
1.

IS/ITInfrastructure & IS/IT

Governance Review
(Company Level Controls)

2.

logical Test Report

3.

15 Audit (General
Computer Contro ls)

No. of Branches/
Divisions/Units

TImes

Fixed Deposit

Times

Global

9 Branches

8 Branches

7 Divisions

IT Division

4.

Disaster RecoveryTesting
Observation

5.

Financial Authority &

logical Access to System

IT Division

Compliance

Bangladesh ank Report Compliance

The Compliance Unit is respons ible for ensur ing

Compliance unit received

compliance w ith all regulatory requirements while

Bangladesh Bank during 2009 and successfully submitted

conducting bank's business. Its duty is to maintain liaison

compliance of all reports/letters within prescribed

with the regulators and notify the other divisions/

deadlines.

168 report s/ letter from

units/branches regarding regulatory changes & maintain

proper record.

Bangladesh ank Inspection

This unit works as the point of contact when any

Bangladesh Bank inspection teams conducted a tota l

regulatory inspect ion is carried out and ensures that

number of 55 inspecti ons on 9 Divisions/Units of Head

corrective measures are taken and the appropriate

Office & 27 branches during the year which included

responses are made on a timely fashion. If the regulatory

ComprehensiveInspection, Foreign Exchange Transactions

authority identifies any major lapses then it notifies to

Inspection & Core Risk Inspection on Anti Money

the senior management and/or to the Audit Committee

laundering Activities, Credit Risk Management, Internal

ofthe Bank.

Control & Complianceand Informati on System Security.

B ngladesh Bank Inspection St tistics of 2009

Sin

2009

Nature of Inspection

2008

H@adOffice!
Division

Branch

Head Office!
Division

Branch

1.

Comprehensive

23

15

2.

Anti Money Laundering

3.

Credit Risk Management

4.

Internal Control and Compliance

5.

Information Systems Security

6.

Foreign Exchange Transactions

16

32

7.

Foreign Exchange Risk Management

8.

Small Enterprise Financing

9.

Consumer Financing

10

Special Inspection

12

SS

Total Inspection
Total reports/lettersreceivedform
Bangladesh Bankfor compliance

Monitoring

3S
115

168

Monitoring
The

twice in the year as per instruction given by Shariah

Unit

of the

division

monitors

Council of the Bank. The Audit Committee of the Board

effectiveness of the Bank's internal control system on an

subsequently reviews all audit/inspections reports and

ongoing basis through follow-up of compliances and

authorizes suggested corrective measures.

regularization of deficiencies that are identified by Audit

& Inspection teams throughout the year. It also regularly

monitors branch MIS (e.g. Classification, Excess Over

Limit, Overdue facilities, KYC, TP etc.) online from the
systems and notifies deficiencies, if any, to the auditee
management as well as to the top management and/or
the Audit Committee for reguiarization and rectification.

Particulars
Total Internal Audit Compliance
reports/ letters issued by ICCD
Monitoring Unit

2009

2008

182

148

The Information Systems/information Technology Audit

Unit conducts audits to evaluate the system's efficacy
and security protocols, in particular, to evaluate the
Bank's ability to protect its information assets and
properly dispense information to authorized parties. The
IS/IT audit focuses on determining risks that are relevant
to information assets, and in assessing & suggesting
controls in order to reduce or mitigate these risks to
acceptable level.
The Compliance Unit of the division works as the point of
contact when any regulatory inspection is carried out and
ensures that corrective measures are taken and the

Core Risk Managem nt (Notes to the

FinancialStatements):

appropriate responses are made on a timely fashion. If

the regulatory authority identifies any major lapses then
it notifies to the senior management and/or to the Audit

33

Internal Control & Compliance

Committee of the Bank.

The Bank stresses on both the design and operation

The Monitoring Unit of the division monitors and folIow-

effectiveness of its internal control system to protect the

up the ethical standards through Departmental Control

bank from possible loss that may arise from either

Function Check List {DCFCLj, Loan Documentation Check

intentionall unintentional errors or from fraudulent

List (LDCL) and Quarterly Operation Reports. On receipt

activities. The Internal Control & Compliance Division of

of the compliance report the Monitoring Unit carefully

the Bank is independent and able to carry out its

checks the compliance status with the help of systems. It

assignments with objectivity and impartiality. The

also regularly monitors branch MIS (e.g. Classification,

division makes a year wise risk based audit plan to carry

Excess Over Limit, Overdue facilities, KYC, TP etc.) online

out comprehensive audits and inspections on the

from the systems and notifies deficiencies, if any, to the

banking operations in various divisions of head office and

auditee management as well as to the top management

branches in order to ensure that internal control practice

and/or the

and procedures are in place and complied with. On the

rectification.

other hand, the Muraqib under Shariah Council conducts

Moreover, External Auditors conducts an independent

shariah audit in the Islamic banking branches at least

assessment of Bank's internal controls over financial

Audit Committee

for

regularization/

reporting and comment on its effectiveness. The External

Market Risk -!int erest rates Risk, Foreign Exchange

Auditors also reports strengths and weaknesses of the

Position Risk, Equities Position Risk and commodities

internal control system of the Bank.

Position Risk.

Implementation of Basel II

Bangladesh Bank Requirement

Basel II Capital Accord is the revised framework of

At the end of December 2007 Bangladesh Bank issued a

'International Convergence of Capital Measurement and

Road Map for implementation of new capital accord

Capital Standards' the comprehensive version of which

(Basel II) in Bangladesh. Major milestones of Bangladesh

issued by the BaselCommittee on Banking Supervision in

Bank for the implementation are as below:

June 2006. The BaselII Capital Accord hasthree pillars.

On December 31, 2008 Bangladesh Bank issued the

1st Pili r Minimum Capital Requirements

Minimum Capital Requirements based on market,
credit and operational risk to (0 reduce risks of failure
by cushioning against losses (ii) provide continuing

Guidelines on Risk Based Capital Adequacy for Banks

(Revised Regulatory Capital Framework in lie with Basel 11).
The guideline is structured around following three steps:

i.

a bank against credit, market and operational risk.

access to financial markets to meet liquidity need, and

(iii) provide incentives to prudent risk management.

Minimum Capital Requirement to be maintained by

ii,

Process for assessing overall capital adequacy in

relation to a bank's risk profile and a strategy for

2nd Pillar: Sup rvlsory R vi w Process

Qualitative supervision by regulators of bank's internal
risk control and capital assessment process, including

maintaining its Capital at an adequate level.

iii. To make public disclosure Information on the bank's

risk profiles, capital adequacy and risk management.

supervisory power to require banks to hold more

capital than required under 1st pillar.

Ba~alll

Dh kB Bank Parpadlva

Dhaka Bank considers implementation of Risk Based

3rd Pillar: Market Discipline

Capital Adequacy for Banks (Revised Regulatory Capital

New public disclosure requirements to compel

Framework in line with Basel II) is one of its topmost

improved bank risk management.

priority. Accordingly Dhaka Bank has established a Basel II

According to the 1st pillar Banks have to calculate

Implementation Unit (BIU) in the 1st Quarter of year 2007

total minimum capital requirements for credit, market

for effective implementation of the capital accord

and operational risk. The capital ratio is calculated

ensuring Board and Senior Management oversight. The

using the definition of regulatory capital and risk-

BIU is exclusively assigned with the task of reviewing the

weighted assets.

nature and level of risks relating to banking assets and

planning for adequate capital framework. The BIU

Thr e Risks & Capital Charge Method

members meet on regular basis, at least monthly, to

Credit Risk - debtor's non-payment of a loan, double

monitor implementation status of Risk Based Capital

default etc.

Adequacy of Banks and also those issues which may

Operational Risk General Computer Control lapses,

directly effect capital requirement (e.g. compliance with

DOS5 circular of 2008).

Fraud, legal documentation etc.

The BIU iscomprised of 15 members

-Chairman

1.

Mr. Khondker FazleRashid

- Managing Director

2.

Mr. Tanweer Rahim

- Deputy Managing Director (Business Banking)

-Member

3.

Mr. KaiserTamiz Amin

- Deputy Managing Director (Operations)

-Member

4.

Mr. NeazMohammad Khan

- Deputy Managing Director (RiskManagement)

- Member

5.

Mr. M.M. Haikal Hashmi

- SEVP & Head, Credit Compliance

-Member

34

6.

Mr. Darashiko Khasru

- VP & Head, Finance & Accounts Division

-Member

7.

Mr. Munzoor Mursheed

- VP & In charge, Operat ions

-Member

8.

Mr.lmran Ahmed

- SAVP & in-Charge, Internal Control & Compliance

-Member Secretary

9.

Mr. Saiful Momin

- FAVP& ln charge, Information Technology

-Member

10. Mr. Mohammad Ali

- AVP, Interna l control & Compliance

-Member

11. Mr. Md. Shahinur Rahman

- AVP, Interna l control & Compliance

-Member

12. Mr. Headayetul Kabir

- AVP, Interna l control & Compliance

- Member

13. Mr. KM FaisalFaruqui

-spa & In-Charqe, Treasury

- Member

14. Mr. Mohammad Ainul Haque

- PO, Finance & Accounts Division

- Member

15. Mr. Sheikh Nahid Reza

- Senior Officer, Information Techno logy

- Mem ber

In a view to make the BlU more functional Dhaka Bank has

successful to meet all the deadlines so far as prescribed by

formed a Basel II Core Team headed by Deputy Managing

Bangladesh Bank with quality del iverables like quartely

Director (Business Banking). Dhaka Bank has been

Min imum Capital Reporting, Position Paper etc.

B selllimplementation tatus inDh ka B n

Sin

35

Deliverables

Format/Method

Compliance Remarks

1.

Quantitative Impact Analysis (Q[S)

Prescribed Quest ionnaire

Complied

2.

Establishing Basel II Implementation Unit

Bangladesh Bank Directive

Complied

3.

Nomination of recogn ized External Credit

Assessment Institutes (ECAls)

BRPD Circular # 0912008 and BRPD

Circular # OS/2009

Complied

4.

Pillar - 1: Minimum Capital Requirement

(MCR) Reporting

Reporting Format per BRPD Circular

# 09/2008

Complied

Credit Risk

Standardized Approach

Operational Risk

BasicIndicator Approach

Market Risk

Standardized Approach

5.

Pillar -1: A separate MCRReporting for

lslarnlc Branches

Reporting Format under BRPD

Circular # 0912008

Complied

6.

Pillar - 2: Supervisory Review Process(a

detailed Plan for maintaining adequate
capital to compensate all risks, risk
management techniques, setting capital
target & pricing that are commensurate
with bank's risk profile and control
environment etc.)

Chapter 8 of the BBGuideline

A Position Paper subm itted

in October 2009.

7.

Pillar - 3: Market Discipline

Chapter 9 of the BBGuideline

A Disclosure Framework (Qualitative &

Quantitative)

Effective Date: March 31, 2010

Quantitative Breakdownsdone
Qualitative - In-progress

Syndic tion and Structured Finance

different sectors including RMG and textile sub sector.

In the current corporate finance environment, the role

Moreover, we would explore new businessopportunities

of a separate Syndication and Structured Finance Unit is

in

undoubtedly a major necessity for the Bank / Financial

port/container terminal, etc. to be implemented through

different

infrastructure

projects

Institute. Proper structuring of a financial facility is a

Public Private Partnership (PPP) program. In the coming

comfort to both the lender and the borrower in terms of

year, the unit also wants to expand its business horizon

investing fund and mitigating risk factors. Syndication

through dealing with the new Structured Finance

finance has become a popular mode of financing from

products like Asset-based Securitization, Bond, Foreign

i.e,

power,

the viewpoint of both sides especially for setting up big

Currency Syndication, etc. along with conventional

size projects/ventures. This popularity of syndications

financial products in financial sectors.

can be primarily attributed to the prudential lending

gUidelines of the Bangladesh Bank. A commercial bank
may provide funded facilities up to a maximum of 15%
of its equity. Due to this reason, projects with sizeable
costs need to approach more than one bank for their
debt requirements and therefore the demand for
syndications exists.

At the same time the Unit is committed to handle all the

existing deals / accounts efficiently which will give the
Banka sound portfolio from this area of investment.

Hum n Resource Development

We aim to be the best bank to our customers-and to
achieve this, we must also be the best banks for our

However, the Syndication Financing faced a set back in

employees. They are the ones who work with

the year 2009 due to slow investment in the state of

competence, dedication, reliability and a strong focus on

global economic meltdown in the

whole world.

service to make the Dhaka Bank Limited a successful

Therefore, investors/sponsors adopted a go-slow strategy

institution. This is why we are committed to offering our

to initiate new ventures, which subsequently deters the

staff an environment where they can identify and

credit growth in project financing.

develop their skills with optimal advantage. Centralized

At Dhaka Bank Limited, the Syndication and Structured

Finance unit was setup in October 2004. The unit has
successfully closed 14 (fourteen) syndicated deals till the
year 2009. In this year, DBL has arranged 2 (two)
syndication deals for a total amount of BDT 1,535.00
million. Despite of the economic slowdown in the year
2009, the activities of the team ended on high note as
we have been able to close 2 (two) syndicated deals as
the Lead Bank and 7 (seven) deals as participant with
other banks.
As the world is getting out of the impact of the global
financial meltdown, the investors/sponsors of our country
would also feel encouraged to initiate new ventures.
Moreover, our main export oriented industry, l.e, RMG
and Textile Sector has also managed to absorb the shock
of the global financial turmoil and expect to attain
substantial growth in their export volume and earnings in
the coming years.

Human Resources Management is the paraphernalia to

achieve the goal. Its new focus of Human Resources
Management as well as marking operational and
structural adjustments, it is now concentrating even more
on the strategic aspects of HR work. That means we are
playing a more active role in shaping the future and the
success of our "Internal Customers", i.e. "the Employee's".
We thus provide more targeted, ongoing support not
only to the Bank's individual divisions/branches but to
each of its employees as welL
Promoting internal talent and potential, optimal and
efficient processes, and closeness to our staff are decisive
factors in the ever changing, complex world of human
resources that help us identify and retain the right people
to take the Bankforward into the future by transforming
Human Resources (HR) into Human Capital (HO. HR work
that confines itself to a purely administrative focus will
not succeed in meeting this challenge. It needs to look
ahead and take appropriate action. The aim, more

Therefore, for the next year we are hopeful that we would

particularly in critical times, is to win new talented people

be able to increaseour business portfolio substantially in

and create an attractive environment for high achievers,

36

so that we can remain successful in the fiercely

for Women & Child Health (CWCH) and donated Tk1.2

contended financial services marketplace.

Million to BIRDEM as a gesture of human itar ian

This is a major reasonwhy our HRactivities pursue a longterm approach that is in line with the market and
employee-driven. This works by interacting closely with
the strategies of the individual businesslines, which feed
directly into our HR policy concepts and instruments.

consideration for the dialysis treatment of the financially

needy kidney patients. In 2008 Dhaka Bank Limited
associated with Bangladesh Hockey Federation as
Partners in Progress for development of Hockey and
donated Tk 2.5 Million to Bangladesh Hockey Federation.

What is important here is the clear separation of strategic

from operational tasks, and advice that is professional

T e Bankalso sponsored-

and specific to the target group.

DhakaBankVictory Day HockeyTournament

DhakaBankShaheed Dibash HockeyTournament

Attracting and keeping young, talented and highly

potential people is essential to conserve Dhaka Bank's
ability to thrive in future. Besides attracting and retaining
young

professionals

with

praiseworthy academic

qualifications, who are well managed and enabled to

develop their skills further, going forward the Bank will
also have a talent pool of specialists, project and

DhakaBankIndependence Day HockeyTornament

1st DhakaBankCup GolfTournament
Dhaka Bank 22nd Bangladesh Int ernational Junior
TennisChampionships
National HockeyTeam in AsiaCup
National HockeyTeam in Nehru Cup
DhakaBankPremierCricket League at Rangpur

management experts. In order to fill vacant positions

even better in future, and above all as quickly as possible,

ka Bank was w r

the Bank will keep a precise record of all employees'

In 2009 Dh

capabilities and potential aswell as their goals and career

Certificate of Merit from lCAB

aims by way of creating a talent management wing. This

BestBankAward

will enable us to fill internal vacancies systematically and

CSRAward

effectively, thereby considerably reducing the number of

external recruitments-and hence the induction time
needed for new job entrants. At the same time, we will be

Off-Shore Banking 2009 and beyond

We have come a long way since we launched our Off-

able to show employee's development prospects and

shore Banking operations in Dhaka Export Processing

career paths that make bank as a branded employer over

Zone 3 yearsago. Marking another successful year, Dhaka

the long term in the market. These included the planning

Bank Limited ended 2008 with more than 7 (Seven) Type-

of career steps but also ensuring that employees are

A clients, up from only 3 (Three) in December 2006. The

qualified and trained with a view to a specific function to

Off-shore Banking Unit has been able to maintain it s

ensure achieving the organizations goals and objective as

leadership position in the area of Off-shore banking

a Term Dhaka Bankin the days to come.

businessamong local private sector banks by continuing

to deliver tailor made services and support to its clients.

Corpor te Sodal Responsibility

Dhaka

Bank

is

committed

to

corporate

Prevailing stable law and order environment, generous

social

management support and continued good work of all Off-

responsibilities towards the community. The Bank

shore team members have truly paved the way to earn a

allocates 2% of pre-tax profit for CSR practices each year.

profit of USD800,000.OO from Off-shore Unit in 2009.

Lastyear,the Bankhastaken numerous initiatives towards

Together with the assistance and support of our clients,

social welfare and community improvements, which

we have been able to execute export of US$ 40 million

donation of Tk20.00 Million to Kidney

while an import of US$37 million in 2008 with honesty,

includes

Foundation Hospital to install state of the art DialysisUnit

to mitigate the sufferings of the poor women and children
ofthe country. The Bank provlded Tk1.2 Million to Center

37

integrity and compassion.

Dhaka Bank Limited has so far invested around US$ 10
Million in Off-Shore unit to strengthen its asset portfolios

since inception and eager to invest more in future

Services

depending on the stable and steady growth in this sector.

Internet Banking

As a second generation private commercial Bank, Dhaka

SMSBanking

Bank limited Off-shore Banking Unit has already earned

locker

confidence of the foreign investors due to its strong

ATM Card

commitment and dedication. We, the Off-shore Banking

VISACredit Card

Unit, pride ourselves in our ability to provide premier Off-

Utility BillfTuition FeeCollection

shore trade solutions to our clients, while ensuring that

In 2010, Dhaka Bank will introduce its own ATM network

the highest levels of professionalism is practiced by our

and introduce innovative, technology-based products

colleagues.

and services to further strengthen our position in the

Dhaka Bank limited expects to uphold its strong foothold

Retail Banking sector.

in Off-shore arena by doing business of at least 12 Type-A

customers with an exposure of around 50 million USD

SMAL & MEDIUM ENTERPRISE (SME)

within the end of December 2009. The Off-shore Banking

The business model that Dhaka Bank pursues and tried to

Unit is determined to continue its journey of successand

perfect through out 2008 has been significantly applied

look forward to put commendable contribution to the

in 2009 in lending various fund and non-fund based loans

growth and prosperity of Dhaka bank Limited in the year

& advances to a wide array of customers through existing

to come.

as well as a number of new SME Branch and Service

Centers. The Bank was quite optimistic about surpassing

Retail B n ing & C rd

RETAIL BA KI G
In 2009, Dhaka Bank further consolidated its position as a
leading bank in the country's consumer banking arena.
Emphasis on customer service, product innovation, asset

the portfolio of 2008. But, due to sharp fall in demand for

credit in the market caused by global meltdown and
constant repayment against continuous, short, mid and
long-term loans, it's very unlikely that the expectation
could be translated into reality in the time left.
Despite this setback, the Bank is optimistic as before.

quality and brand building continued to be the

Because, the appetite of investors for borrowed funds

cornerstones of our Retail Banking strategy.

seems to be growing again and Bank's network too is

The major products and services of Retail Banking

include:

expected to be expanded through opening of another 6

to 7 SME Branch and I or Service centers across the
country by the end of 2009. Signing of a new refinancing

LiabilityProducts

deal on 'Solar Energy, Solar panel assembling plant and

Savings Bundled Product

ETP with Bangladesh Bank is another major reason

Deposit Pension Scheme (DPS)

behind this optimism. Anyways, if everything goes well in

Special Deposit Scheme

2010, the Bank will be able to do a great deal of

Deposit Double Scheme

businesses in addition to existing and generate a

Gift Cheque

handsome profit from this sector.

Asset Products

Fin ncial Performance of the Bank

Homeloan

Dhaka

Personal loan

commercial bank, which further consolidated its position

Bank limited

is high

performing

private

Vacation loan

in the market in terms of quality servicesto the customers

Carloan

and value addition for the shareholders. The Bank made

Any Purpose loan

healthy progress in all areas of business in 2009.

38

ts

Loans and Advances: The Bank implemented the

As of 31 December 2009 total asset of the Bank stood at

system of credit risk assessment and [ending procedures

Tk.77.77 billion, an increase of 9% as against 2008. The

by stricter separation of responsibilities between risk

increase in asset was mainly driven by significant growth

assessment, [ending decisions and monitoring functions

of customer deposits. The growth of deposits was used

to improve the quality and soundness of loan portfolio.

for funding in loans & advances and holding of securities

The Bank recorded a 6% growth in advances with a total

for SLR.

loans and advances portfolio of Tk.52,910 mHIion at the

Cash & Balances with Bangladesh Bank and its

Agent: The Cash & Balances with Bangladesh Bank and its

end of December 2009 compared to Tk.. 49,698 million at

the end of December 2008.

Agent registered 33% growth as of 31 December 2009.

Advances

The growth of deposits increased the balances with

Bangladesh Bank and its agent for maintaining the Cash
C

adequately.

Balances with Other Banks and Financial

Institutions: The Balances with Other Banks and
Hnanclal Institutions increased by 9% which was mainly

49,698

60,000~

Reserve Requirement (CRR), which was maintained

39,372
34,Q49

45,OOO~

~ 30,000
.f:
]! 15,000
<l;l

!-

due to transfer of fund to Current Accounts of different

23.372

2005

2006

2007

2008

2009

banks for covering the payments against Inward Foreign

Remittances to beneficiaries.

As of 31 December 2009, 94.43% of the total Bank's loan

Money at (all and Short Notice: This was the major

portfolio was regular while only 5.57% of the total

functional area of the Treasury Division of the Bank. The

portfolio was non-performing as compared to 3.84% of

Bank registered a growth of 35% in Money at Call & Short

2008. Bank made required provision as of 31 December

Notice as against previous year. The amount of Placement

against performing and non -performing loans as per rate

was invested at higher rate of interest to NBFls during the

and classification norm provided by Bangladesh Bank..

year 2009.

The volume of non-performing loans stood at Tk.2,946

million in 2009 from Tk. 1,908 mHIion in 2008. Of the total

Investment: The Bank's Investment during the year

2009 were mostly in long term Government Securities
which stood at Tk.8,660 million as against Tk, 7,239
million making a growth of 20% over the last year. The

loan provision of Tk.2,113 million, Tk.625 million was

general provision, which was 30% of the total provision.
The rest Tk.1,488 miIlion was against the classified
accounts.

Government Treasury Bonds purchased at higher rate of

interest to cover the increased 5LR arising from the

5.57%

growth of deposit llabllltles,

Investments
8.660

7,500
c

6,000

~ 4,500

.s

3,000 -

!-

.J

1,500

Non
performing loan

5,972

.s

<l;l

7,239
5,378
3,926

Regular
loan

-t

2005

39

2006

2008

2009

 A wide range of business industries and sectors

Sectoral allocation of advances reveals a well-diversified

constitutes the Bank's advance portfolio. Major sectors

portfolio of the Bank with balance exposure in different

where

the Bank extended credit include steel &

sectors. High concentration sectors are textile and

engineering, ship breaking, edible oil, sugar, housing &

garment industries with outstanding of Tk.9,729 million,

construction, pharmaceuticals, chemicals, electronic &

housing and construction with Tk.6,916 million, food and

automobiles, energy & power, service industries, trade

allied industries with Tk.3,506 million and engineering

finance, personal I consumer credit, leasing etc. The Bank

and metal including ship breaking with Tk.3,937 million

continued to support Small and Medium Enterprises(SME)

as at 31 December 2009.

and expended credit facilities to them through its SME Cell.

Sector wise Advance

/lGrIcultural IndustrIes

2%

7%

4% 0%

18%

Pharmaceuticals Industries
Textile & Garment Industries

13%

Chemical Industries
Food & alied Industries

7%
Transport & Communication

1% - - - ....- ,

1%
3%

Electronics & .Automobile Industries

HousIng & Construction Industries
Engineering & Metal Industres Including
ShIp BreakIng
Energy & Power Industries
Service IndustrIes
Other Industries

Uabllltl

excluding call as of 31 December 2009 compared to Tk.

TotalliabiIities of the Bank stood at Tk.72,802 million as of

56,986 million of the previous year registered a 7%

31 December 2009 registering a growth of 8% over the

growth. The growth was supported by branch network

last year. This has happened for increase of deposits from

and high standard products and service along with

customers mainly and settlement of import payments

competitive interest rate provided to customers. The

against deferred and cash Letter of Credits.

customer group of the Bank was Individuals, Corporation,

Borrowings from Banks, Financial Institutions and

Deposits

Agents: Treasury Division resorted to borrowing from

money market. The Bank registered a negative growth of
3% in Borrowlnqs from Banks, Financial Institutions and

I
60,000c:

Agents as against last year position. The main reason of

,g

this negative growth was DBL's borrowing from call

~ 30,OOOj
.!:

money market was significantly reduces.

Deposits: The deposit base of the Bank continued to

register a steady growth and stood at Tk.60,918 million

56,986
48,731

.s
~

41,5S4

45,OOOj
28,439

15,0001

-r

2005

2006

2007

2008

2009

40

NBFl, Government Bodies, NGO, Autonomous Bodies etc.

Typesof Deposit

Taka inMillion

network and high standard products and service provided

%ofTotal
Deposit

to customers. The customer group of the Bank was

Current and other deposits

5,553

Individuals, Corporation, NBFI, Government Bodies, and

Savings Deposits

5,881

10

Autonomous Bodies etc.

Short Term Deposits

3,319

Fixed Deposits

41,795

69

DPS I MDS & Gift Cheques

2,219

2,151

60,918

100

The cost free and low cost deposits comprised of 28% of

the deposits. Fixed deposits remained the main
component of deposits contributing about 70% of the

Bills payable

Total

total deposits. Average Cost of Deposits was 8.68% in

2009 as against 9.40% in 2008. Deposit Mix of the Bank as
of 31 December 2009 was as follows:

Deposit Mix
FDR
/68%

Current & Other

9%
Capital: Dhaka Bank limited commenced its operation
on July 05, 1995 as a private sector bank with an
authorized capital of Tk.1,000 million and paid-up capital
of Tk.100 million. The Bank raised its authorized capital

Bills
4%

advances, and provision of Tk.208 million was made

against Off BalanceSheet Exposure, both of which will be
treated as supplementary capital. The strong growth in
equity will help the bank to expand its business.

from Tk.1,000 million to Tk.2,650 million in 2005 and

Tk.6,000million in 2007.

Sources of Fund

The paid-up capital of the Bank amounted to Tk.2,128

million as of 31 December 2009. Paid-up capital increased
by Tk.194 million (bonus share of 2008) in 2009. The

4%

11%
4%----

statutory reserve also increased by Tk.427 million during

the year by transferring 20% of pre-tax profit as per
Companies Act 1991. The total shareholders' equity

18%

(capital & reserve) of the Bank as at the end of December

2009 stood at Tk.4,965.68 million including sponsor
capital of Tk.l,192 million. The Bank also made general
provision of Tk.625 million as per rate given by
Bangladesh Bank against the unclassified loans and

41

Paid up capital
Reserve & Surplus
Deposits

Other Liabilities

Borrowing from Banks

USes of Fund

due to increase of interest income from both advances

and investments.

Expenses
Interest expense increased by 4% from Tk. 5,214 million
in 2008 to Tk.5,407 million in 2009. This rise in interest
expense is mainly attributable to the overall increase in
Deposit base of the bank.

Pr.m;ses & FixedAliset>

Loan' & Advance

. Investm.ms

Other Aliset>

Cash 8> Elolance wtth Bonk

Money.tGOIl

Salary & Allowance increased by Tk.68 million from

2008 mainly due to recruitment of new Employees during

Income ndRevenue

the year, annual increment etc.

Interest income increased by 4% from Tk.7,171 million

Other overhead expenses increased by only Tk.3 million

in 2008 to Tk.7,466 million in 2009. The growth of

as compared to 2008 mainly because of increase of Office

advance resulted this growth of interest income. Average

Rent, Insurance of Banks Assets, printing stationery, legal

yield on advance was 14.32% during 2009.

expenses, opening of some new branches, depreciation of

Income from investments increased by 38% from Tk.664

assets, repair & maintenance, direct sales agents

million in 2008 to Tk.920 million in 2009 mainly due to the

remuneration, contractual agency charges etc.

income from five and ten yearsGovernment Bondsat higher

Earning Basein Assets of the Bank remains unchanged

rate of interest which was maintained for 5LR purpose.

in 2009, which was 88% in 2008. The ratio indicates

Commission and Exchange earnings decreased by 1%

efficient utilization of resources to earn revenues.

from Tk,l,077 million in 2008to Tk.1,061 million in 2009 due

to decrease of import & Export business which ultimately

Operating and Net Profit

causethe decreaseof commIssion & feesincome.

Dhaka Bank Limited registered an operating profit of

Tk.2,810 million in 2009 compared to Tk. 2,533 million in

The Net Interest Margin (NIM), which is derived by net

interest income divided by average assets, was 4.56% in
2009 as compared to 4.60% in 2008. The decrease of Net
interest margin (NIM) was mainly because of increase of
earning assets but lower rate of return from advance
which results the lower spread.

2008 making a growth of 11%. After all provisions

including general provisions on unclassified loans, profit
before tax stood at Tk.2,135 million. Provision for tax for
I

the year 2009 amounted to Tk, 1,176 million. The net

profit of the Bank as of 31 December 2009 stood at Tk.959
million compared to previous year's Tk..839 million

Net Interest Income (NIl) increased by 14% from Tk.

making growth of 14%. Earning per Share (EPS) was

2,622 million in 2008 to Tk.2,980 million in 2009 mainly

Tk.45.09in 2009 compared to Tk.39.42in 2008.

Operating Profit vs Net Profit

2, 81 0

2,550

e
,g 2,050

:E

1,550

909

.s 1,050

550
50

463

2005

704

2006

2007

580

839

2008

959

2009

42

Ion

ax

The Bank has duly submitted the Quantitative Impact

Provision for current year tax was Tk.1,176 miilion

compared to Tk.1,025 miilion of previous year. Deferred
tax was introduced as per requirement of Bangiadesh

Analysis (QIS) to Bangiadesh Bank.

The Bank has established a separate unit for Basel-i1
implementation as per Bangiadesh Bank requirement.

Accounting Standard (BAS) 12 from the year 2006 and a

sum of Tk.O.08 million was shown to Profit and [ass
Account for creating deferred tax asset in the account.

The Bank has nominated Credit Rating information and

Services Ltd. (CRiSL) and Credit Rating Agency of
Bangiadesh Ltd. (CRAB) as its External Credit Assessment
institutions (ECAls). Both the companies are recognized

C pltal Adequ cy

by Bangladesh Bank.

tlo (CAR)

Capital adequacy is measured by the ratio of the Bank's

The Bank submitted four quarterly reports on Minimum

capitai to risk weighted assets both on balance sheet and

Capital Requirement (MCR) under PiIlar-1 of Basel-It to

off balance sheet transactions. The Eiigible capital fund of

Bangiadesh Bank parallel to semiannual reporting of MCR

the

under Basel-i

Bank increased

by Tk.826

million

in

2009.

Sharehoiders' equity grew by Tk.966 million and stood at

Tk4,966 miliion during the year. Total capital (Tler-I &
Tier-2) of the Bank as of 31 December 2009 stood at
Tk.5,634 miliion against Tk.4,808 million of 2008. Bank's
risk weighted assets increased by Tk.8,500 miliion and
stood at Tk.49,098 million in 2009 due to mainiy increase
of loans and advances. According to Balance Sheet 2009,
capitai ratio was equivaient to 11.31% of Risk Weighted
Assetsagainst 11.84%of 2008 (seenote--14.8for detail).

The Bank is currently devising a process for maintaining

adequate

capitai

to

compensate

all

risks,

risk

management techniques, setting capital targets & pricing

that are commensurate with the bank's risk profile and
control environment etc under Piilar 2: Supervisory
Review Process. In this regard, the Bank has submitted a
detailed plan (Position Paper) to Bangiadesh Bank.
The Bank is developing a disclosure framework
(Qualitative and Quantitative) under Piilar 3: Market
Discipline, which wiil be reported to Bangiadesh Bank

Impl m ntatlon of BASEL - II

After a year of parallel run with Basel-l for a period from 1st
January 2009 to 31st December 2009 Bangladesh Bank has
formally rolied out Risk Based Capitai Adequacy (Revised
Reguiatory Capitai Framework in line with Basel-It) fully
into force from 1st January 2010. Basei iI accord or the
international Convergence of Capital Measurement and

aiong with Q1/2010 MCRReport.

The Bank arranged a seminar on "Importance of Credit
Rating for Better Access to Finance" in January 2010,
where the representatives from Bangladesh Bank and
aiso from CRISL & CRAB gave their vaiuable presentation
before the Bank's major clients.

Counterparty credit

rating took a more vigorous turn after the seminar.

Capital Standards is designed to help banks adopt a more

comprehensive, sophisticated and risk-sensitive approach
for its iending business.Objectives of this accord are:

Import
in the year 2009, Dhaka Bank Limited was active in

To provide comprehensive coverage of risks;

extending services to their valued clients related with

To provide more precise classifications of risk ieveis;

import business. As of 31st December 2009 our import

To encourage continuous improvement in bank's

volume was Tk. 46,160 million compared to the volume of

Internal risk management capabiiities;

To use a consistent framework for ail banks.

2008 for Tk, 65,737 million Showing a decrease of 30%

from the iast year. The major import items of the year
were: Capital Machinery scrap vessel, hot rolled non alloy

43

The status of Implementation of Basel-Ii Accord in Dhaka

steel, HDPE, raw cotton, fabrics & accessories, fertiiizers

Bank Limited is as below:

and edibie ell/oil seeds.

Internal Control 8r Compliance

Import

The Bank stresses on both the design and operation

80,000

effectiveness of its internal control system to protect the

65,737

60,000
46,277

<::

40,000

.s
..\i

20,000 .

:E

{2.

46,159

49,496

bank from possible loss that may arise from either

intentional/ unintentional errors or from fraudulent
activities. The Audit & Internal Control Division of the
Bankis independent and able to carry out its assignments

30,213

with objectivity and impartiality. The division makes a

year wise

2005

2006

2007

2008

2009

risk based audit plan

to

carry

out

comprehensive audits and inspections on the banking

operations in various divisions of head office and
branches in order to ensure that internal control practice

Export

and procedures are in place and complied with. On the

Dhaka Bank Limited experienced a negative growth of

other hand, the Muraqib under Shariah Council conducts

export businessin 2009 from 2008. The volume of export

sharlah audit in the Islamic banking branches at least

business decrease to Tk. 33,305 million from Tk. 39,038

twice in the year as per instruction given by Shariah

million in 2009 showing an decrease of 15%. As before,

Council of the Bank.The Audit Committee of the Board

readymade garments still remained the major export

subsequently reviews all auditlinspections reports and

item of 2009. The other export items were jute,

authorizes suggested corrective measures.

accessories (buttons, interlinings, labels etc.) and

footwear etc.

The Information Systems/Information Technology Audit

Unit conducts audits to evaluate the system'sefficacy and
security protocols, in particular, to evaluate the Bank's

Export

ability to protect its information assets and properly

dispense information to authorized parties. The IS/IT

40,000

3:\..305
39,038

<::

,g
~

controls in order to reduce or mitigate these risks to

31,081
23,269

..\i

information assets, and in assessing & suggesting

30,000

:i 20.000

audit focuses on determining risks that are relevant to

acceptable level.

13,505
10.000

The Compliance Unit of the division works as the point of

contact when any regulatory inspection is carried out and

2005

2006

2007

2008

2009

ensures that corrective measures are taken and the

appropriate responses are made on a timely fashion. If
the regulatory authority identifies any major lapsesthen

Inward For ignR mittance

it notifies to the senior management and/or to the Audit

Dhaka Bank Limited has ended the year 2009 with total

Committee of the Bank.

Inward Foreign Remittance of Tk.9,786 million. It has

The Monitoring Unit of the division monitors and follow-

commenced its operation with the view to serving the

up the ethical standards through Departmental Control

expatriate Bangladeshis through fast and efficient

Function Check List (DCFCL), Loan Documentation Check

disbursement of remittances. Providing fast and efficient

List (LDCll and Quarterly Operation Reports. On receipt

service to its expatriate clients has been the banks top

of the compliance report the Monitoring Unit carefully

priority, along with increasing the inflow of foreign

checks the compliance status with the help of systems. It

currency to contribute to the country's foreign reserve.

also regularly monitors branch MIS (e.g. Classification,

We begin our journey in 2010 with a view to avail further

Excess Over Limit, Overdue facilities, KYC, T? etc.) online

Banking Services to its valued clients local and abroad.

from the systems and notifies deficiencies, if any, to the

44

auditee management as well as to the top management

To achieve excellency in exposure to the immigrant

and/or the

Bangladeshis, DBl is considering to introduce a

Audit Committee for

regularization!

dedicated NRB service. From money transfer to

rectification.
Moreover, External Auditors conducts an independent
assessment of Bank's internal controls over financial
reporting and comment on its effectiveness.The External
Auditors also reports strengths and weaknesses of the
internal control systemof the Bank.

satisfy all the banking needs of the NRBs related to

banking activities in Bangladesh. The bank is about to
introduce Mobile remittance disbursement partnering
with Banglalink, which will be a revolution in remittance
payment system in our country. Inauguration of th is
Mobile payment system will definitely make remittance

Remittance
With an astounding increase of 23%, the last fiscal year
has been a ground breaking successful one for
Remittance flow in Bangladesh. The whole banking
sector was focused to smoother mobilization of fund
from the NRBs. DBl also intensified its Remittance
operation for a easier transfer of the hard earned money
of NRBs. As a result of its constant endeavor, DBl has
channeled USD 374 Min to Bangladesh in last 3 year with
the last year alone contributing USD 112 Min as
remittance.

disbursement faster and easier. With such acumen and

execution DBl is hopeful to continue the successful trend
of remittance in upcoming years.

Corr spond nt Banking

Despite the volatility in global markets & low commodity
pricesdue to recession, year 2009 brought better resultsto
the bank in terms of significant increase in fee based
earnings from Correspondent Banking. For effective
negotiation

with

the

correspondents

and

better

monitoring, Rebate earnings from UC advising and

For easing up the whole remittance disbursement

Charges in Guarantee againstCounter Guarantee increased

process, DBl is continuously trying to increase its

by 461 %, and 100%respectively compared to 2008.

distribution channel. As a part of the effort, DBl has

already started payment of remittance through two
renowned NGO of Bangladesh-PAGE and PADAKHEP
MANOBIK UNNOYON KENDRO, which added 250 more
distribution points to DBl's existing network. Moreover,
the bank has entered into the 9-Bank Elite Network
known as 'EI Dorado' covering 950 locations only to

Dhaka Bank Limited, as always, keeps enhancing its

correspondent

relationships

for

accommodating

increasing client requirements for letter of Credit

issuance,

confirmation

internationally

reputed

and
banks.

payment
To

through

reinforce

its

international acceptability and improve capacity to issue

more UCs requiring confirmation, Dhaka Bank Limited

augment its remittance facility to the furthest part of the

signed

country. Besides, the bank has diversified its network

Development Bank (ADB) on 17th December, 2009 in

strength with Private Commercial Banks like lslarnl Bank

Dhaka. Under the agreement ADB shall offer Trade

and

FinanceGuarantee Facility to UC confirming banks under

Southeast

Bank for

faster disbursement of

the

Issuing Bank Agreement with Asian

remittance.

it's Trade Finance Facilitation Program (TFFP) for

DBl has enhanced its reach to the NRBs for safer transfer

confirmation of UCs issuedby DhakaBank Limited.

of money. It has started operation with one of the largest

In addition to the above Dhaka Bankltd. tied up with few

money transfer network- Western Union Money Transfer.

large & highly reputed Foreign Banks in 2009 to further

Along with its 13-exchange house network, affiliation

enhance our UC advising, confirmation and payment

with Western Union has ameliorated DBl's presence to

facilities in specific corridors for South-East Asia and

the NRBs worldwide. With USA, UK, Italy, Germany, UAE,

European regions.

Saudi Arabia and Malaysia- Spain, libya, Oman and

Australia were also brought under the coverage of DBl as
result of such frequent efforts.

45

investment, this One Stop service will be devoted to

With augmented correspondent network and support

from the newly introduced Trade Operations team, we

are highly hopeful of optimizing our relations and

in offshore arena by doing businessof at least 14Type-A

doing better in trade towards superior growth of

customers with an exposure of around 40 million USD

revenue in 2010.

within the end of December 2010.The Off-shore Banking

Unit is determined to cont inue its journey of success and

Offshore Banking

look forward to put commendab le contribution to the

The offshore Banking Units in Bangladesh are operated

growth and prosperity of Dhaka Bank limited in the year

through completely separate counter and maintain own

to come. At the same time the unit is committed to

account

handle all the existing clients efficiently that will give the

relating

to

Off-shore

Banking

business

separately. We the Dhaka Bank Limited have started Off-

Banka sound portfolio from this areaof investment.

shore Banking operation in the year of 2006 in Dhaka

Export Processing Zone. At present we have extended

Customer Service

OBU services to the clients of CEPZ. We will extend our

Dhaka Bank is committed to deliver better service to our

services to another 02(Two) EPZ located in Karnafuli &

distinguished customers. Customers are our first priority

Adamjee with in the year of 201O.

and driving force. Superior quality customer service

Off shore banking unit of Dhaka Bank limited ended

2009 with 11 (Eleven) Type- A clients, up from only 3
(three) in December 2006. The Off-shore Banking Unit
has been rnaintaining its leadership position in the area
of Off-shore Banking business & revenue market share
among local private sector banks by delivering excellent
services

and

support

to

its

clients.

Generous

management support and continued hard work of all

Off-shore team members have earned a profit of US$
825,000.00from Off-shore Unit in 2009 in spite of global

through the integration of the lat est state-of- the-art

technology is our motto. Our customers come from all
walks of life. They are professional, businessmen, public
servants, entrepreneurs, homemakers, men & women,
residents and non-residents maintaining local & foreign
currency accounts. introducing new products and
developing the quality of the existing products are the
strategies adopted by the Bank to serve the customers.
We are always committed to sustain the commitment
"Excellence in Banking".

recession and economic down trend over the world.

We are aware of natural consequences of globalization,

Continuing assistance and support of our clients, the

liberalization, privatization, reforms, foreign investment,

unit have been able to execute export of US$ 40 million

economic policy and infrastructure development. We

while an import of US$ 20 million in 2009 with honesty,

have long-term sustainable relationship with strong

integrity and compassion.

bondage of caring and sharing with our customers.

Dhaka Bank limited has so far invested around US$ 13

million in offshore clients to strengthen its asset
portfolios since inception. The unit wants to expand its
business horizon by investing more in future depending
on the stable and steady growth in this sector.

Inform lion Technology

The Information Technology (In Division of Dhaka Bank
limited is run by a highly-motivated talent pool, enabling
the Bank to deliver the benefits of tru ly real-time, on-line
banking services to customers through all its 51 branches

As a second-generation private commercial Bank, Dhaka

and 6 SME servicecenters.

Bank limited Off-shore Banking Unit has already earned

confidence of the foreign investors due to its strong

Branch banking transactions are processedon a real-time

commitment and dedication. We, the Off-shore Banking

basis side-by-side with customer transactions picked up

Unit, pride ourselves in our ability to provide premier

through alternate delivery channels such as ATM, SMS

Off-shore trade solutions to our clients, while ensuring

and Internet Banking. At the enterprise level, IT provides

that the highest levels of professionalism is practiced by

senior management with a wide-range of MIS reports

our colleagues.

through its powerful reporting engine.

Dhaka Banklimited expects to uphold its strong foothold

The Bank hasembarked on a new initiative to implement

46

its own ATM Switch and Card Management System as

Committee (AlCO), which should meet at least once

well as ATM machines.This will further expand its service

every month to Analyze, Review and Formulate strategy

delivery capability by opening the doors of greater inter-

to manage the BalanceSheet of the Bank.

operability with other networks in the country.

The Asset Liability Committee (AlCC) of the Dhaka Bank

In 2009, Dhaka Bank became a member of the EI Dorado

monitors Market Risk and Liquidity Risks, and at the same

inter bank fund transfer network which allows real-time

time it interprets the market views, competition and the

electronic fund transfers between customers of member

potential target market. AlCC prepares the liquidity plan

banks.

as per the Maturity Profile of Assets and Liabilities,

Also during the year, the Bank introduced MICR enabled

check processing as part of the Bangladesh Automated

Deposits and Advances, and analyzes the Factor

Sensitivity of interest rates.

Clearing House (BACH) project of Bangladesh Bankand is

The most important objective of the AlCC is to maintain

working closely with the Central Bank for full automation

a contingency plan to equivocate significant market

ofthis important function at a national level.

volatility like Interest Rate Risk. Asset Liability Committee

In line with the organizational imperative to achieve

better economies of scale and efficiency in transaction
processing the IT Division played a key role in the
centralization of Trade Finance and Credit operations in

(ALCO) evaluates liquidity requirement and the pricing

strategy of the bank. It also emphasizes on maximizing
return and minimizing risk by acquiring assets that have a
low rate of default risk and by diversifying assetholding.
AlCC takes necessary market information from Treasury

2009.
The Bank continues to invest more resources to further
strengthen its robust IT platform and keeping it aligned
with industry best practices and the ever-expanding

Division, Finance & Account Division and from all other

well conversant members of the committee to take
strategic decision.The members of the committee are
The Managing Director,

needsof its customers.

The Deputy Managing Director-Business Development,

Envtronm ntalPolicy

The Deputy Managing Direetor- Operations

Sustainableeconomic, ecological and socialdevelopment

The Deputy Managing Director - Risk Management,

of the surroundings are the key elements of business

The Headof Credit,

decisions of Dhaka Bank Limited. Our environmental

The Headof Retail Banking,

management

policy

stipulates

adherence

with

environmental health and safety regulations and

The Headof Finance& Accounts Division,

The HeadofTreasury Division.

gUidelines, refraining from business that impairs the

ability to our future generations to meet their own needs.

AlCC also includes invitees to enrich the decision making

The policies

and

process by their valuable interpretation. Through ALCC,

environment management are being observed in our

Dhaka Bank takes all major strategic plan regarding

lending decisions, several steps have also been taken

interest rates on Deposits and Advances, Market Risk,

within the Bank such as declaring all Dhaka Bank

Interest Rate Risk and compliance with the regulatory

with

regard to safety, health

branchesand offices smoking free zones.

requirement of Bangladesh Bank.In every ALCC meeting

the key points of the discussion are minuted and the

Asset Li blllty M n g m nt

action points are highlighted to strengthen the balance

The Asset Liability Management procedure has been

sheet position of the bank.

designed to earn an adequate return while maintaining a

47

comfortable level of Assets with liabilities. The Dhaka

liquidity Risk Management

Bank has a committee typically called the Asset Liability

Liquidity management is the constant ability to

accommodate

liability

and

deposit

moved within the range of 7.50% to 15.00% but after that

asset growth and

business

in the next quarters of 2009 the weighted averageinterest

operations, and meet contractuai obligations. Liquidity

rates moved within the range of 0.20% to 4.50%. In such

withdrawals, funded

maturities

management involves forecasting funding requirements

there was no liquldity crunch due to decrease of

and maintaining sufficient capacity to meet the financiai

Government borrowing for infrastructure development

needs and accommodate fluctuations in asset and

and the lower growth of demand for credit in the private

liability levels due to changes in our businessoperations

sector comparing to the previous year and abundant

or unanticipated events.

inflow from wage remittance.The fund utilization was also

To ensure ample liquidity through the full range of

potential operating environments and market conditions,
we conduct our liquidity management and business
activities in a manner that wii! preserve and enhance

decreased due to lower commodity price. At the same

time investment in the private sector as wei! as public
sector was depressing because of the lack of business
confidence caused by recession in the globai market.

funding stability, flexibility and diversity. liquidity Risk

While pursulnq a contraction measure in the first two

Management enables us to ensure that the bank does

quarters and also considering an expansionary measure

have sufficient fund to meet its financial commitments

in the remaining period of 2009,taken by the Bangiadesh

even in times of crisis.

bank in the Monetary policy, Bangladesh bank kept the

The main objective of liquidity management is to ensure

to generate sufficient funds to meet all of its financial
commitments in a timely and cost effective manner. The
liquidity risk management framework is designed to
identify, measure, monitor, and control the liquidity
position. Dhaka Bank'sllquldlty risk management process
has been maintaining adequate liquidity and a healthy

Repo and Reverse repo window open time to time

whenever required. Repo injects money in the market
while Reverse Repo takes it away from the market. The
interest rate on Repo in the first three quarters of 2009
was 8.50%but the subsequent quarter, Repo interest rate
was 4.50% while the interest on Reverse repo in the first
three quarters of 2009 was 6.50% but the subsequent
quarter, the Reverse Repo rate was 2.50%.

funding profile.
Dhaka Bank has an overall flexible funding strategy to

Foreign Exchange Reserv

cover both short and long-term liquidity needs. Dhaka

Foreign ExchangeReserve, the stock of foreign currencies

Bank's liquidity risk management approach starts at the

a country holds to buffer out imbalances foreign receipts

intra day level managing the daily payment queue,

and payments. Main objectives of the Bangladesh bank

forecasting cash flows and our access to central bank. A

for

contingency plan is in place to cover unexpected or

maintenance and safety of adequate ievel of reserve to

lead to market

meet foreign obligations, liquidity of reserve for the

unusual situations, which could

holding

foreign

exchange

reserves

include

disruptions. We manage the liquidity structure of our

purpose of monetary and exchange rate management

assets, liabilities and commitments so that the cash flows

and finally, optimal return from the reserves assuming

are appropriately balanced and all funding obligations

controlled risks in a prudent manner that will preserve

are met when appropriate. Sources of liquidity include

the nominal vaiue of the reserve.

deposits and other customer-based funding, wholesale

market-based funding, and liqUidity provided by the sale
or securitization of assets.

Foreign Exchange Reserves of the Bangladesh bank

continued to grow in the backdrop of steadily increasing
workers' remittances aswell as export earnings,and stood

Money Market Seen rio

The overall money market scenario was stable and sound

throughout the year 2009.The weighted average interest
rates in the call money market in the first quarter of 2009

at USD 10340.00million as at the end of November 2009

and initially it was 5577.10 million as at end of January
2009. This was, however, higher than the reserves as of
end November 2008 by USD 5245.40 million.

48

Period

Jan'09

fXReserve
(fia. In Million)
5577.10

Feb'09

5871.90

Mar09

5953.20

Apr'09

6508.50

May'09

6562.90

June'09

7470.90

July'09

7741.50

Aug'09

9155.70

5ep'09

9362.60

Oct'09

9544.70

Nov09

10340.00

Foreign Exchange Reserve

12,500
10,000
l;;

~ 7,500

o 5,000
l;;

V>
~

2,500

,<::)0)

,>'1>~

,<f!

'<.~

i.,<f!

~'fi

.<f!

~<$:

,<f!

~'1>'"\

,<f!

'>~""

'$,.<f!
,>v

.~

,?-~o,

.~

,,(l~

A,~

c-

J.rg,

~o

Month

Sourc.e : Bangladesh Bank.

Public FInance

downtown, interest payment and salary of Government

Public finance is the study of government finance, which

employee. In the budget of FY09, the sector-wise shareof

includes spending by public bodies, taxation, incomes

revenue expenditure showsthat the largest allocations of

from government properties, and debt and borrowing.

current expenditure are likely to go to subsidies and

Collection of taxes from those who benefit from the

current transfer (36.7%), pay and allowances (23.2%), and

provision of public goods

interest payments (18.8%). In the backdrop of low

and

services by the

government, and the use of those tax funds toward

production that is, transformation of tangible inputs and
intangible inputs into goods or services and distribution
of the public goods and services.

implementation of ADP, the target for development

expenditure has been trimmed down to TI<.230 billion for
FY09 from TI<.256 billion fixed in the FY09 budget. The
sector-wise AD? expenditure shows that the major

Total revenue collection, both tax and non-tax, was under

allocations would go to local government and rural

performed slightly in FY09. Preliminary estimate of total

development (21.0%), energy and power (15.7%),

revenue earning stood at Tk.660.0 billion in FY09 as

transport and communication (12.7%), education and

against the yearly revised target of Tk.691.0 billion, which

information technology (12.8%), health (8.9%), and

is 10.60% higher than the actual revenue collection of

agriculture (8.5%). The preliminary estimate data show

Fy08. During FY09, tax revenue and non-tax revenue

that ADPexpenditure stood at Tk.153.6 billion in FY09.

earning stood at Tk.523.4 billion and Tk.135.0 billion as

against the yearly revised targets of Tk.555.2 billion and

The overall budget deficit in FY09was revised at Tk.249.6

Tk.136.6 billion respectively, which is 5.4% and 36.8%

billion (4% of GOP) from original target of Tk.305.80

higher than their actual levels in FY08.

billion (4.99% of GOP), In FY09, deficit financing from

The preliminary estimated data indicate that current

expenditure stood at Tk.695.0 billion in FY09 as against
the yearly revised target of Tk.671.0 billion, which is
22.5% higher than the level of the same period of FY08

49

domestic and foreign sources is revised at Tk.141.98

billion and Tk.58.33 billion respectively from original
target of Tk.169.98 billion

and

Tk.72.36 billion

respectively. Among domestic sources, bank financing

due to increased expenditure on subsidies and current

was revised at Tk.l06.98 billion and non-bank financing

transfer including relief and stimulate package for

at Tk.35.0 billion as against the original of Tk.135 billion

protecting economic activities from bad impact of global

and Tk.35 bHIion respectively.

Training

The main purpose for establishing the RMU is to prevent

To ensure effective implementation Dhaka Bank has

the Bank from taking too much risk and build up a Capital

trained around 150 of its employees at national and

Adequacy, which is more risk sensitive. The RMU tends to

international levels. The Bank arranges trainings and

take necessary measures and find out strategy against

workshops on BaselII compliance regularly.

financial crisis, unusual market condition, and different

investment vulnerabilities.

Ratin of Clients/Obligors of Dh ka Bank

Dhaka Bank recognizes the fact that capital requirement
increases for the Bank if it holds risky assets and
decreases significantly if it holds safer portfolios and
counterparty credit rating is the primary driver to ensure
risk sensitive portfolio. Dhaka Bank is consistently

Under the scope of Basel-II implementation, Dhaka Bank

emphasizes on the reserve of adequate Risk BasedCapital
to keep the Bank shock absorbent and stabilized. The
Managing Director regularly apprises the Board of
Directors of the Bank on recent updates of RMU on
regular basis.

pursuIng its clients for credit rating.

As per Bangladesh Bank BRPD Circular No. 05 dated April

Functions/Purposes of RMU

29, 2009 Dhaka Bank has nominated two recognized

The Terms of Reference (ToR) of RMU includes the

External Credit Assessment Institute (ECAI) namely (i)

following functions:

Credit Rating Information & Services ltd. (CRISl) and (Ii)

Conducting StressTesting for all functional levels of

Credit Rating Agency of Bangladesh (CRAB).

the Bank in a view to eliminate the existence of any

Minimum Capital Calculation and Reporting

capability of the Bank in combating different

in-explicable mistakes and analyze resilience

Dhaka Bank regularly submits reports to Bangladesh Bank
on Minimum Capital Requirement (MCR), Eligible Capital

financial distress.

Measuring the Risk appetite of the Bank and try

and RiskWeighted Assets (RWAj under Risk Based Capital

check taking excessive risk even in lure of hefty

(Basel II) since first quarter of 2009.

bonus.
Helping the Bank in preparing to combat any likely

Part II

financial distress, economic or industry downturns,

Risk M nagement Unit (RMU)

market risk events and liquidity conditions and update

DurIng the 3rd quarter of the year 2009 the Management

the BODand Managing Director on regular basis.

of the Bank has set up a Separate Risk Management Unit

(RMUj in line with Bangladesh Bank directives. The RMU

Branch N Mark

functions under direct supervision of the Managing

The Bank has a total number of 50 branches and 1 Off

Director, who is assisted by the Deputy Managing

Shore Banking Unit at DEPZ Savar Dhaka, 7 SME Service

Director (Risk Management). The Risk Management Unit

Centres, 1 Kiosk (Business Centre) and 1 Central

supervises and monitors independently and consistently

Processing Centre in 2009. We committed to present

the management of following Main Risks:

ourselves at all commercially important places across the

country and to provide with multidimensional banking

1. Credit Risk

8. Operational Risk

services to the people. Next year we have a plan to add a

2. Asset-liability Risk

9. Market Risk

few new branches to our network, which will offer the

3. Foreign Exchange Risk

10. Llquldlty Risk

Bank new opportunities in terms of operation and

4. Internal Control & Compliance

11. Reputational Risk

business potentials.

5. Anti Money Laundering

12. Insurance Risk

6. Information & Communication

13.Sustainability Risk

Intern I Control System

Technology

Internal Control System are processes designed by the

7. BalanceSheet Risk

management and effected by the Board of Directors and

50

all tiers of management to provide reasonable assurance

modular training programs.

With a view to achieve

regarding the reliability of financial reporting, operation and

professional excellence in Banking, DBTI conducts various

risk management and the preparation of financial statements

courses, workshops, executive development programs

mainly for officers and executives of the Bank. During

for external purposesand includesobjectives that:

l,

Pertain to the maintenance of records that in

reasonable detail accurately and fairly reflect the
transactions and quality management of assets.

ii.

iii.

Provide reasonable assurance that transactions are

managements, laws etc. DBTl has international exposure

and

formulated, designed and delivered 12 training

financial

with

Project of National Bank of Tajikistan{Central Bank)

Bangladesh Financial Reporting Standards (BFRS)

financed by Islamic Development Bank for "Assistance in

and applicable laws.

formulating Courses based on Banking Services' at

Provide reasonable assurance regarding prevention

Dushanbe,Tajikistan during November 2005 to April 2006.

statements

in

accordance

effect on the financial statements.

vi.

programs covering all diverse courses for banking, finance,

courses under the Capacity Building Technical Assistance

and financial activities that could have material

v,

as 7130 participants through 291 different training

recorded as necessary to permit preparations of

and timely detection of unauthorized operational

iv,

August 2000 till December 2009, the DBTI trained as many

Besides conventional banking related trainings; the DBTI also

arranged, facilitated and conducted various Executive
Development Programs, workshops, discussion meetings

Facilitates fraud and reputation-risk assessments at

and exchanged views for the improvements in banking

the Divisions, branch level and links & documents

challenges in twenty-first century.

Alongside normal

antifraud control activities to identified fraud risk.

training programs DBTl arranges short programs and events

Ensuresefficiency and effectiveness ofthe activities

and regularly visit brachesand conduct different workshops..

of the bank, reliability, completeness and timelines

Internal and external resource persons are invited to lead

of financial and management information &

the class sessions.at DBTI. It has full-furnished facilities

compliance with applicable laws and regulations.

with computers, IT and all modern electronic devices to

Providing reasonable assurance that, aU IS/IT assets

accommodate 50 trainees at a time. DBTI has a library

(i.e. People, Process & Technology) are adequately

with more than 1,050 books covering aU sides of banking

safeguarded against fraud and malicious attempts

needs. The DBTI library has professional linkages with

from internal and external threats.

many organizations at home and abroad.

As a complete Training Institute, DBTInot only train staffs

Dh k Bank Tr ining Institute

of Dhaka Bank but also renders training services to other

Human resource development is the most important part

banks as well.

in any organizational sustainability, growth, development

and expansion. The need for professional excellence at
Dhaka Bank was duly recognized by its Board of Directors
and Management and since December 1999, as it is
evident by the decision to create Dhaka Bank Training

The

DBTI

maintains

constant

liaison

with

Universities/other organizationslTraining Institutes for

keeping itself updated with recent changes/development
in relevant areas and also for necessary dissemination
thereof among our people working at field level.

Institute (DBTI) that came into reality in 2000.

Dhaka Bank Training Institute has been working with its
Initially in June 2000, a makeshift arrangement was made

Board of Directors and

training institute later was relocated to Uttara and shifted

Excellence in Banking through development of attitude,

Management to provide

to the present premises of Sara Tower in Motijheel

knowledge and skill keeping in view the organizational

Commercial Area in January 2004.

goal and economic prosperity of the country in the

The DBTI is committed to develop the human resources,

the main driving force of the Bank through structured

51

full dedication & efforts and continuous support from

at a temporary location at DBl Local Office and the

background of present globalize world Jn 2009, DBTI has

conducted 45 courses involving 1173 participants.

Details of Executive Development Programl Tr inlng Course/Workshop on 2009

Number of

Number of

Courses

Participants

Dhaka Bank Savings Bundle Product

106

Workshop on SB5-2 & SB5-3

52

Balance of Payments & Reporting of Foreign Exchange Transactions to

Bangladesh Bank

20

Automated Clearing House

S6

Credit RiskManagement

26

Anti-Money Laundering: Policies & Implementation

IT Operations & Policy Compliance: Branch Perspective

26

IT Training for Branch System Administrator

80

Workshop on UCP600

28

10

Workshop on BACH & MICR

25

11

Training on Credit Management

32

12

Training on Handling the Cash Counter

23

13

Training on Eldorado: The Nationwide Remittance and Payment System

14

Orientation & Basicsof Banking

15

Workshop on Professional Skill Development & AntMoney Laundering

issues

51. No.

TItle Of Courses

Sl

55
33

15

286

16

international Trade Finance & Foreign Exchange

26

17

Executive Development Program on Fund Management & Product

Development

32

18

Presentation on Automated Clearing Module Under BACH

16

19

Training Workshop on General Le~er Reconciliation

21

20

Software Demonstration Training by Techno Haven

15

21

Foundation Training for Bankers Course

37

22

Islamic Banking-conducted by Central Shariah Board for Islamic Banks

of Bangladesh

30

23

BASEL Il: Technical lssies, Challenges and implementation Initiative

47

24

Workshop on Marketing of Bank Services, Skill Development & Anti

50

45

1173

Money Laundering initiatives

Grand Total

52

"t R"

anagement

The strategy of ALCO is to structure assets and liabilities

At its core, Credit Risk Management in Dhaka Bank Ltd,

operates independent of but in partnership with the

market demand and guidance receive from the its Board

business. Within this framework, limits and approval

and to guide I direct the efforts of different line of

authorities are exercised by branch managers, and risk

businessin the overall interest of the Bank..

officers at Head Office level within defined approval

authorities conferred by the Board.

ALCO looks after the deployment of assets across the

Bank,monitors the liability mix and associated costs,acts

During 2008, the Bank continued to evaluate and further

as the focal point for continuous adjustment of pricing

refine its risk management process. In line with

and maturity profiles of the Bank's deposits, advances

Bangladesh Bank gUideline necessary steps have been

and investments. It also reviews the Bank's foreign

taken to reevaluate the scope of Credit Risk and Credit

currency exposure and setting dealing I exposure limits

Operations.

for Treasury.

Centralized

Credit

Operations

and

Administration department is established at Head Office

level which looks after all post-approval processes
including disbursement, adjustments, monitoring of the
accounts, exception reporting and approval processes,
documentation validation etc. Credit Risk is managed
through a series of fundamental principles within the
regulatory framework, and following Bank's internal
policies, procedures and documentation standards. All
credit lines are approved in accordance with Bank's Credit
Policy. Credit and Marketing functions are segregated at
Head Office level. In addition, whenever possible loans
and advances are secured by acceptable forms of
collaterais in order to mitigate credit risk.

The Bank's ALCO is consisted of Managing Director,

Deputy Managing Directors, Head of Credit, Head of
Finance & Accounts, Head of Treasury, Head of Retail
Banking and also invites representatives from different
businessgroup on need basis.

Liquidity Risk Management

Liquidity risk is the risk that the Bank will encounter
difficulty in meeting obligations from its financial
liabilities at a point of time. The Bank's approach to
manage liquidity is to ensure that it will always have
sufficient liqUidity to meet its liabilities when due, under
both normal and stressed situations, without incurring

The asset portfolio of the bank remains strong and the

unacceptable losses or risking damage to the Bank's

growth remains stable. The Bank has a conservative

reputation.

policy for early recognition of impaired assets and for

building up sufficient reserves for non-performing assets
as per Central Bank gUideline. All credit facilities are
monitored by Credit Operations Department through
different monitoring tools. Moreover, periodic reviews are
also conducted by Bank's audit department. Retail and
SME Lending is also growing at healthy pace. Each retail
credit application is considered for approval according to
a product program duly approved by the Board.

Asset Lia i1ity Management

ALCO is responsible for monitoring and managing the
Bank's assets and liabilities with the main objective of
managing liquidity to ensure obligations, commitments
and applicable regulatory requirements are met on an
ongoing basis and on the other hand also mitigating
interest rate risks,

53

in line with the Bank's strategic goals in line with the

The daily liqUidity position is monitored and necessary

steps are taken by the Bank's Treasury department to
keep the liquidity position up to the mark. The key
measure used by the Bank for managing liquidity risk is
the Advances to Deposit ratio, matching of different
maturity profiles, projection of payments, assets and
liabilities

maturity

analysis,

and

different

key

management indicators which are thoroughly discussed

in the monthly ALCO meetings.

MARKET RISK
Market Risk is the risk that the fair value or future cash
flows of the financial instruments will fluctuate due to
changes in different market variables,namely:
1. Interest RateRisk
2. Equity Position Risk

3. Foreign Exchange Risk

Committees and developments in the Bank's business.All

4. Commodity Risk

Directors have full and timely access to all relevant

All these risks are monitored by the Treasury. The Bank

information and may take independent professional

uses simulation-modeling tools to periodically measure

advice if necessary. The Bank has taken the following

and monitor interest rate sensitivity. The sensitivity of

measures to implement Corporate Governance as

equity is analyzed by maturity of the assets. The foreign

instructed by Bangladesh Bank and the Securities and

exchange risk is managed by setting limits on open

ExchangeCommission:

foreign exchange position.

Internal Control System

FOREIG EXCHANGE RISK MANAGEMENT

Internal Control System are processes designed by the

Foreign Exchange risk represents the fluctuation in

management and effected by the board of directors and

of management to provide reasonable

exchange rate movement which may affect the Bank's

all tiers

open position on some currency. The Bank has set limits

assurance regarding the reliability of financial reporting,

on positions by currencies which are monitored daily and

operation and risk management and the preparation of

hedging tools are used to ensure that positions are

financial statements for external purposes and includes

maintained within the prescribed limits.

objectives that:

l, Pertain to the maintenance of records that in

Corpor t Govern nee

reasonabledetail accurately and fairly reflect the

Corporate Governance represents the system by which

transactions and quality management of assets.

business corporations are directed and controlled. The

Corporate Governancestructure specifiesthe distribution

ii. Provide reasonable assurance that transactions

are recorded as necessary to permit preparations

of rights and responsibilities among different participants

of financial statements in accordance with

in the corporation, such as, the Board, Managers,

Bangladesh Financial Reporting

Shareholders and other Stakeholders and spells out the

rules and procedures for making decisions on corporate
affairs. Bydoing this it also provides the structure through

Standards

(BFRS) and applicable laws.

lll.

Provide

reasonable assurance regarding

which the company objectives are set and the means of

prevention and timely detection of unauthorized

attaining those objectives and monitoring performance.

operational and financial activities that could

Other than Regulatory Authorities, parties to Corporate

have material effect on the financial statements.

Governance are Board of Directors, Executive Committee

iv. Facilitatesfraud and reputation-risk assessments

of the Board of Directors, Audit Committee of the Board

at the Divisions, branch level and links and

of Directors, Management Credit Committee, Asset

documents antifraud control activities to

Liability Committee, Management Committee, etc.

identified fraud risk.

The objective of the Management structures headed by

v. Ensures efficiency and effectiveness of the

the Board of Directors of Dhaka Bank Limited and led by

activities of the bank, reliability, completeness

the Chairman are to deliver sustainable value to

and timelines of financial and management

shareholders. Implementation of the strategy set by the

information & compliance with applicable laws

Board is delegated to the Branch Management and Unit

and regulations.

Management under the leadership of Managing Director.

The Board sets the strategy and approves the annual
operating plans presented by the Management for
achievement of the strategic objectives. The Board of
Directors

meets

regularly and

Directors

receive

information between meetings about the activities of the

vi. Providing reasonable assurance that, all IS/IT

assets (l.e, People, Process & Technology) are
adequately safeguarded against fraud and
malicious attempts from internal and external
threats.

54

Co

ositl

of the Board

basis and verifies audit reports of different regulatory

The Board of Directors of the Bank consists of 21 (twenty

authorities. Besides,the Committee is empowered to verify

one) Directors. Among them one Director has come from

for the purpose of internal control of each and every

Group "B" shareholders l.e. from Public Sector, as per

matter of the Bank, which may affect the interest of the

Article 89 of the Articles of Association of the Bank.

Bank. Audit Committee of the Board of Directors takes

initiative to keep the Bank from any possible mishap.

Executive Committee
The Executive Committee of the Board of Directors is

The patt rn of shar holdings

comprised of 8 (eight) Board Members, the Managing

The Authorized Capital of Dhaka Bank Limited is

Director and the Company Secretary. The Executive

Tk.600,00,00,OOO divided into 6,00,00,000 ordinary shares

Committee sits once a week and evaluates all the business

of Tk.100 each. The Paid Up capital of the Bank is

proposals forwarded by Management Credit Committee

Tk.2,127,678,163 divided into 21,276,781.63 ordinary

received from branches and units. Besides approving or

shares. As per Section 1.4 (k) of SEC Notification No-

declining

SEClCMRRCD/2006-158/Admin/02-08 dated February 20,

the

business

proposals,

the

Executive

Committee takes strategies, policies and management

2006 the pattern of shareholding is given below:

decisions to run the Bank effectively and efficiently.

Parent/Subsidiary/Associated Companies and

l)

other related parties: N/A

Audt Committee

i1) Share held by Directors, Chief Executive Officer,

The Audit Committee of the Board of Directors is

Company Secretary, Chief Financial Officer,

comprised of three members of the Board and Company

Head of Internal Audit and their spouses and

Secretary. Audit Committee sits in meeting on regular

a) Shares
SI.No.

Id by the Directors and their spouses:

Name

Designation

Number of

Name of

Shares

Spouse

Number of

Shares

Chairman

6,33,377

Mrs.Nilufar Hossain

32,369

ViceChairman
Director

6,48,104
4,58,980

Mrs.Rowshan Ara Hanif

Mrs.SelinaHal

17,644
26,479

Director

6,53,028

Mr. MirzaAbbasUddin Ahmed

4,60,428

Director

1,20,549

Mr. A.T.M.Hayatuzzaman Khan

3,55,531

Director
Director
Director

6,11,041
4,42,293
2,64,585

Mrs.JasmineSultana
Mrs.Ayesha Amir
Mrs.lucky Islam

1,43,720
33,550
69,307

Director

6,88,894

Mrs.ShamsiRahman

69,169

Mr. Abdullah AI Ahsan

Mr.Khandaker Mohammad
Shahjahan
Mr. M.N.H.Bulu
Mr.Tahidul Hossain
Chowdhurv
Mrs.Kamala Khatun

Director
Director

4,06,660
4,49,842

Mrs.Amena Begum
Mrs.Nazmun Nahar

Nil
2,15,583

Director
Director

5,55,429
3,21,839

Nil
46,472

Director

5,000

Mrs.Jannat Ara PushoaBulu

Mrs.JesminSultana
Chowdhurv
late Abdur Razzaque

18

Mr. JashimUddin
Mr. KhondokerJamil Uddin
Mr. Abdul Wahed
Mr. AI Haj Mohammad Ali Sarker

Director
Director
Director
Director

4,60,198
5,04,080
2,31,365
2,92,646

Mrs.Mamtaj Begum
Mrs.Afroza Bequm
Mrs.ZahedaWahed
Mrs.Amlna Khatun

96,472
1,13,615
319
32,529

19

Mrs.Rakhi DasGupta

Director

1,54,922

Mr. AsokeDasGupta

Nil

20

Mr. SuezIslam

21

Mr. G.M.Shameem Hussain

01

Mr. Altaf Hossain Sarker

02
03

Mr. Mohammed Hanif

Mr. Abdul Hal Sarker

04

Mrs.Afroza Abbas

05

Mrs.Rokshana Zaman

06
07
08

Mr. KhondokerMonir Uddin

Mr. Md. AmiruJlah
Mr. Aminul Islam

09

Mr. Reshadur Rahman

10
11
12
13
14
15
16
17

55

minor children are as follows:

Nil

Director

76,691

Mrs.Arman Islam

Nil

Director ( B
Group)

73,047

Mrs.Sabera Hussain

Nil

b) Shares held by the Choef Executive Officer, Co pany Secretary, Chief

Financial Officer and Head of Internal Audit:
Number of
Shares

SI.No

Name

Status

01
02
03

Mr. Khondker Fazle Rashid

Managing Director

Nil

Mr. Arham Masudul HUQ

EVP& Company Secretary

Nil

Mr . Darashiko Khasru

Vice President & Head of Finance &

Accounts Division

Nil

04

Mr. Imran Ahmed

Senior Assistant Vice President

Nil

c) Shares h Id by top five salaried employees other than the Diredors, Chief Executive
Officer, Company Secretary, Chief Fin ncial Officer and Head of Internal Audit are as follows:
SI.No

Status

Name

Number of

Share

01
02
03

Mr. Tanweer Rahim

Nil

Mr. KaiserTamiz Amin

Mr. NeazMohammad Khan

Deputv Manaoinq Director (SS)

Deputy Manaqinq Director (Oper.)
Deputy Managing Director (RM)

04

Mr. Muhammad Mustafa Haikal Hashmi

senior Execut ive Vice President

Nil

05

Mr. Md. Sirajul Hoque

EVP & Regional Manager, Ctg.

Nil

Nil
Nil

Board Me tlngs
During the year 2009, 11 (eleven) Board Meetings were held. The atte ndance by each Director is as follows;
Name of Directors

Position

Numberof
Meeting Held

Attended

Mr. Altaf Hossain Sarker

Chairman

Mr. Mohammed Hanif

Vice Chairman

Mr. Abdul Hai Sarker

Director

Mrs. Afroza Abbas

Director

Mrs. Rokshana Zaman

Director

11
11
11
07
08

11
10
11
06
06

Mr. Khondoker Monir Uddin

Director

11

Mr. Md . Am iruHah

Director

Mr. Aminul islam

Director

Mr. Reshadur Rahman

Director

11
11
07

03
10
05
06
08
00

Mr. Abdullah AI Ahsan

Director

11

Mr. Khandaker Mohammad Shahjahan

Director

Mr. M.NH. Bulu

Director

Mr. Tahidul Hossain Chowdhury

Director

Mrs. Kamala Khatun

Director

07
11
07
07

Mr. Jashim Uddin

Director

11

Mr. Khondoker Jamil Uddin

Director

Mr. Abdul Wahed

Director

Mr. Mohammad Ali Sarker

Director

Mrs. Rakhi Das Gupta

Director

Mr. Suez Islam

Director

07
07
07
07
07

Mr. G.M. Shameem Hussain

Director

11

Mr. Khondker Fazie Rashid

Managing Director

09

04

07
00
10
06
00
00
07
06
07
09

56

AGM

Conclusion

14th Annual general meeting was held on TuesdayMarch

The Board of Directors of the bank takes the opportunity

31,2009. 15th Annual general meeting is scheduled to be

to express gratitude to the shareholders, valued

held on Sunday March 28,2010.

customers, patrons and well wishers of the bank for their

appreciation and continued support and cooperation.

Dividend

The Board of Directors also places on record its deep

It is a great pleasure for the Board of Directors of Dhaka

appreciation for the employees, the steering wheels of

Bank Limited to recommend a 25% Stock Dividend i.e. 1

the bank. The bank is indebted to the Government of the

(one) Bonus Share for every 4 (four) shares for the year

People's Republic of Bangladesh, Bangladesh Bank,

that ended on December 31, 2009 subject to approval of

Registrar of Joint Stock Companies and Firms, Securities

the 15th Annual General Meeting.

and Exchange Commission, Dhaka Stock Exchange and

Chittagong Stock Exchange for their continued support

Election of Directors

towards the growth of tile bank.

The Chairman informed that the under noted Directors of

the Bank who retired by rotation in terms of Article 98
having given their consent for reelection in terms of
Articles 100 including one Director from existing sponsors
are hereby reelected as Directors in the 15th Annual
Altaf Hossain Sarker

General Meeting.

Chairman
1. Mr. Abdul Hai Sarker

Director

2. Mr. Khandaker Mohammad Shahjahan

Director

3. Mr. Md. Amirullah

Director

4. Mr. Aminul Islam

Director

5. Mr. Abdullah AI Ahsan

Director

6. Mr. JashirnUddin

Director

7. Mr. G.M.Shameem Hussain

Director

Appointment of Auditors
In terms of Article 141 of the Articles of Association the
Company at each annual General Meeting shall appoint
one or more Auditors being a Chartered Accountant or
Accountants to hold the office until the next Annual
General Meeting. Retiring Auditors shall be eligible for reappoi ntment (Article 141. C.) MIs . ACNABIN, Chartered
Accountants has completed 3rd year as Auditors of the
Bank to hold office until the conclusion of the 15th
Annual General Meeting. As such MIs. ACNABIN.
Chartered Accountant.s will not be eligible for reappointment.

57

Compliance Report on SEC Notification

Status of compliance with the conditions imposed by the Commission's Notification No. SEC/CMRRCD/2006158/Admin/02-Q8 dated February 20,2006 issued under section XC of the Securities and Exchange Ordinance, 1969.
Directors' Report to the Shareholders as per SEC notification SEC/CMRRCD/2006/-158/Admin/02-Q8 dated February
20,2006.
The Directors also report that:
The financial statements prepared by the management of the company present fairly its state of affairs, the result of
its operations, cash flows and changes in equity.
Proper books of account of the company have been maintained.
Appropriate accounting policies have been consistently applied in preparation of the financial statements and that
the accounting estimates are based on reasonable and prudent judgment.
International Accounting Standards, as applicable in Bangladesh, have been followed in preparation of the financia l
statements.
The system of internal control is sound in design and has been effectively implemented and monitored.
There are no significant doubts upon the issuer company's ability to continue as a going concern.
There is no significant deviation in the operating results from the result of the last year.
Key operating and financial data of 5 preceding years have been presented in summarized form (page No. 07).
The number of Board Meetings and Executive Committee Meetings and the attendance of Directors during the year
2007 showed in Annexure -2
The pattern of share holding along with name wise details of:
Parenti Subsidiary/Associated companies and other parties: Nil
Directors: Shareholding presented in Related Party Disclosure at page 122 and Chief Executive Officer, Company
Secretary,Chief Financial Officer, Head of Internal Audit and their spouses and minor Children, Senior Executives.
Shareholders holding ten percent (10%) or more voting interest in the company as at 31 December 2009: Nil.

67

Number of Board Meetings and attendance of Directors

(from 01.01.2009 to 31.12 .2009)
Name of Directors

Position

Mr. Altaf Hossain Sarker

Mr. Mohammed Hanif
Mr. Abdul Hai Sarker

Chairman
Vice Chairman
Director
Director

Number of
Meeting Held

07
08

Director

11

Mr. Md. Amirullah

Director

11

Mr. Aminul Islam

Mr. Reshadur Rahman
Mr. Abdullah AI Ahsan

Director
Director
Director

07

Mr.Khandaker Mohammad Shahjahan

Director

07

Mr. M.N.H. Bulu

Mr. Tahidul Hossain Chowdhury

Director
Director

Mrs. Kamala Khatun

Mr. Jashim Uddin
Mr. Khondoker Jamil Uddin

Director
Director

Mr. Abdul Wahed

Director

Mr. Mohammad Ali Sarker

Mrs. Rakhi Das Gupta

Director
Director

Mr. Suez Islam

Mr. G.M. Shameem Hussain
Mr. Khondker Fazle Rashid

Director
Director
Managing Director

Mrs. RokshanaZaman
Mr. Khondoker Monir Uddin

11
10
11
06
06
03
10
05
06
08
00
04
07
00
10
06
00
00
07
06
07
09

11
11
11

Director

Mrs. Afroza Abbas

Attended

11
11
11

07
07
11

Director

07
07
07
07
07
11

09

Number of Executive Committee Meetings and the attendance of the Directors,

(from 01.01 .2009 to 31.12.2009)
Name of Directors

Position

Mr. Altaf Hossain sarker

Chairman

Mr. Mohammed Hanif

Mr. Abdul Hal Sarker

Vice Chairman

Mrs. Afroza Abbas

Director

Mrs. Rokshana Zaman

Mr. Khondoker Monir Uddin
Mr.Reshadur Rahman

Director
Director
Director

Mr. Md. Amirullah

Mr.Khondker FazleRashid

Director
Managing Director

Director

Number
of
Meeting Held

Attended

47
47
47
32
36
47
32
47
39

46

34
39
32
30
28
20
37
39

68

Status of Compliance with the conditions imposed by the Securities and

Exchange Commission's Notification No.SEC/CMRRCD/2006-15S/Admin/02-QS
dated 20th February 2006:
Condition
No.

Title

Complied status
Complied

1.00
1.1
1.2 (n
1.2 (ii)

1.3

1.4
l.4(a)
l.4(b)
l.4(c)
l.4(d)
l.4(e)
1.4(f)
l.4(g)
l.4(h)
1.4(i)
1.4{j)
l.4(k)
2.00
2.1

2.2

3.00
3.1(0
3.1(il)
3.1(iii)
3.2(0
3.2(il)

69

Board of Directors
Board's size:
Independent Director
Appointment of Independent Directors
Chairman of the Board and Chief Executive Officer

Not
Complied

Explanation for
noncompliance.
With the
condition.
After the death
of former
Independent
Director, New
Independent
Director is yet
to be appointed.

The Directors' Report to the Shareholders

Fairness of state ofaffairs
Keeping proper books of accounts
Consistent application of Accounting Policies in
preparation of Financial Statements
Observance of Bangladesh Accounting Standard (BAS)
Soundness in design and efficiency of internal control
Ability to continue as going concern
Significant deviations from last year in operating result
Summary of key operating and financial data for the
last three years
Declaration of stock dividend
Disclosure about number of Board meeting held during
the year and attendance by each Director
Disclosure about shareholding pattern
Chief Financial Officer, Head of Internal Audit and
Company Secretary
Appointment of
Chief Financial Officer (CFO)
Head of Internal Audit
Company Secretary
Requirements to Attend Board Meetings
Chief Financial Officer (CFO)
Company Secretary
Audit Committee
Number of Members of Audit Committee
Inclusion of Independent Director in the Audit
Committee
Filling of the casual vacancy in the Audit Committee
Selection of Chairman of the Audit Committee
Qualification of Chairman of the Audit Committee

The condition
is under
review.
The condition
is under
review.

The condition
is under
review.
No such case

3.3
3.3.1(i)
3.3.1 (ii)(a)
3.3.1 (ii)(b)

3.3.1 (ii)(c)

3.3.1 (ij){d)
3.3.2
3.4
4.00
4.00(1)

-iooen
4.oo(iii)
4.oo(iv)
4.oo(v)
4.oo(vi)
4.oo(vii)

Reporting ofthe Audit Committee

Reporting its activities to the Board of Directors
Reporting to the Board of Directors on conflicts of
interest
Reporting to the Board of Directors on suspected or
presumed fraud or irregularity or material defect in the
internal control system
Reporting to the Board of Directors on suspected
infringement of laws,including securities related laws,
rules and regulations
Reporting to the Board of Directors on any other matter
which should be disclosedto the Board of Directors
Reporting to the Authorities
ReportinQto the Shareholdersand GeneralInvestors
External! Statutory Auditors:
Appraisal or valuation services of fairnessopinions
Financial information systemsdesign and
implementation
Book-Keeping or other services related to accounting
records of FinancialStatements
Broker-dealerservices
Actuarial services

'i
'i
'i
'i
'i
'i
'i
'i
'i
'i
'i
'i
'i

Status of Compliance of Bangladesh Bank's guidelinefor Corporate Governance

(BRPD circular no 16 dated 24.07.2003)
SI
No Particulars
1. Responsibilities and authorities ofthe Board of Directors
(a) Work-planning and strategic management:
(i) The board shall determine the objectives and goals and to this end shall chalk out
strategies and work-plans on annual basis. It shall specially engage itself in the affairs of
making strategies consistent with the determined objectives and goals and in the issues
relating to structural change and reorganization for enhancement of institutional
efficiency and other relevant policy matters. It shall analyze/monitor at quarterly rests the
development of implementation of the work-plans.
(ii) The board shall have its analytical review incorporated in the Annual Report as regard
the success/failure in achieving the business and other targets as set out in its annual
work-plan and shall apprise the shareholders of its opinions/recommendations on future
plans and strategies. It shall set the Key Performance Indicators (KPls) for the CEO and
other senior executives and have it evaluated at times.
(b) lending and risk management:
(i) The policies, strategies, procedures etc. in respect of appraisal of loanl investment
proposal, sanction, disbursement, recovery, reschedulement and write-off thereof shall be
made with the board's approval under the purview of the existing laws, rules and
regulations. The board shall specifically distribute the power of sanction of
loan/investment and such distribution should desirably be made among the CEO and his
subordinate executives as much as possible. No director, however, shall interfere, directly
or indirectly, into the process of loan approval. (iI) The board shall frame policies for risk
management and get them complied with and shall monitor at quarterly rests the
compliance thereof.

Compliance Status

Complied

Complied

Complied

Complied

70

71

(c) Internal control management:

The board shall be vigilant on the internal control system of the bank in order to attain
and; maintain satisfactory qualitative standard of its loan/investment portfolio. It shall
review at quarterly rests the reports submitted by its audit committee regarding
compliance of recommendations made in internal and external audit reports and the
Bangladesh Bank inspection reports.
(d) Human resources management and development:
i) Policies relating to recruitment, promotion, transfer, disciplinary and punitive
measures, human resources development etc. and service rules shall be framed and
approved by the board. The chairman or the directors shall in no way involve themselves
or interfere into or influence over any administrative affairs including recruitment,
promotion, transfer and disciplinary measures as executed under the set service rules. No
member of the board of directors shall be included in the selection committees for
recruitment and promotion to different levels. Recruitment and promotion to the
immediate two tiers below the CEO shall, however, rest upon the board. Such recruitment
and promotion shall have to be carried out complying with the service rules i.e., policies
for recruitment and promotion.

Complied

Complied

ii) The board shall focus its special attention to the development of skills of bank's staff in
different fields of its business activities including prudent appraisal of loan/investment
proposals, and to the adoption of modern electronic and information technologies and the
introduction of effective Management Information System (MIS). The board shall get these
programs incorporated in its annual work plan.
(e) Financial management:
(I) The annual budget and the statutory financial statements shall finally be prepared with
the approval of the board. It shall at quarterly rests review/ monitor the positions in
respect of bank's income, expenditure, liquidity, non-performing asset, capital base and
adequacy, maintenance of loan. loss provision and steps taken for recovery of defaulted
loans including legal measures.

Complied

(tt) The board shall frame the policies and procedures for bank's purchase and
procurement activities and shall accordingly approve the distribution of power for
making such expenditures. The maximum possible delegation of such power shall rest on
the CEO and his subordinates. The decision on matters relating to infrastructure
development and purchase of land, building, vehicles etc. for the purpose of bank's
business shall, however, be adopted with the approval of the board.

Complied

(f) Formation of supporting committees:

For decision on urgent matters an executive committee, whatever name called, may be
formed with the directors. There shall be no committee or sub-committee of the board
other than the executive committee and the audit committee. No alternate director shall
be included in these committees.
(g) Appointment of CEO:
The board shall appoint a competent CEO for the bank with the approval of the
Bangladesh Bank.
2. Responsibi Ilties of the Chairma n and Board of Director
(a) As the chairman of the board of directors (or chairman of any committee formed by the
board or any director) does not personally possess the jurisdiction to apply policymaking
or executive authority, he shall not participate in or interfere into the administrative or
operational and routine affairs ofthe bank.
(b) The chairman may conduct on-site inspection of any bank-branch or financing
activities under the purview of the oversig ht responsi bilities of the board. He may call for
any information relating to bank's operation or ask for investigation into any such affairs;
he may submit such information or investigation report to the meeting of the board or
the executive committee and if deemed necessary, with the approval of the board, he
shall effect necessary action thereon in accordance with the set rules through the CEO.
However, any complaint against the CEO shall have to be apprised to Bangladesh Bank
throuqh the board alonq with the statement of the CEO.
(c) The chairman may be offered an office-room, a personal secretary/ assistant, a
telephone at the office and a vehicle in the business-interest of the bank subject to the
approval of the board.

Complied

Complied

Complied

Com plied

Complied

Complied

3. Responsibilities of Adviser
The adviser, whatever name called, shaII advise the board of directors or the CEO on such
issues only for which he is engaged in terms of the conditions of his appointment. He shall
neither have access to the process of decision- making nor shall have the scope of
effecting executive authority in any matters of the bank including financial, adm inistrative
or operational affairs.
4. Responsibilities and authorities of CEO
The CEO of the bank, whatever name called, shall discharge the responsibilities and effect
the authorities as follows:
(a) In terms of the financial, business and administrative authorities vested upon him by
the board, the CEO shall discharge his own responsibilities. He shall remain accountable
for achievement of financial and other business targets by means of business plan,
efficient implementation thereof and prudent administrative and financial management.
(b) The CEO shall ensure compliance of the BankCompanies Act, t 991 and/ or other relevant laws
and regulations in discharge of routine functions of the bank.
(c) The CEO shall report to Bangladesh Bank of issues violative of the Bank Companies Act,
1991 or of other laws/requlatlons and, if required, may apprise the board post facto.(d) The recruitment and promotion of all staff of the bank except those in the two tiers
below him shall rest on the CEO. He shall act in such cases in accordance with the
approved service rules on the basis of the human resources policy and sanctioned strength
of employees as approved by the board. The board or the chairman of any committee of
the board or any director shaII not get involved or interfere into such affairs. The authority
relating to transfer of and disciplinary measures against the staff, except those at one tier
below the CEO, shaII rest on him, which he shall apply in accordance with the approved
service rules. Besides, under the purview of the human resources policy as approved by the
board, he shall nominate officers for tralnino etc.

No Adviser

Complied

Complied

Complied
Complied

72


(I

73

AUDITORS' REPORT
TO THESHAREHOLDERS OFDHAKA BANK LIMITED

We have audited the accompanying Consolidated Balance Sheet of Dhaka Bank Limited as at 31 December 2009 and the
related Consolidated Profit and Loss Account, Consolidated Cash Flow Statement, Consolidated Statement of Changes in
Equity, Liquidity statement and Notes to the financial statements for the year then ended. These financial statements are
the responsibility of the management of the Bank. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Bangladesh Standard on Auditing {BSA}. Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
ln our opinion, the financial statements referred to above which have been prepared in the format prescribed by
Banqladesh Bank vide Circular no. 14 dated 25 june 2003 give a true and fair view of the state of the affairs of the Bank as at
31 December 2009 and of the results of its operations and its cash flows for the year then ended and comply with the
Companies Act, 1994, the Bank Company Act 1991, Rules and Regulations issued by the Bangladesh Bank, Securities and
Exchange Rules1987 and other applicable laws and regulations.

We also report that;

(I)

we have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purpose of our audit and made due verification thereof;

(ii)

in our opinion, proper books of account as required by law have been kept by the Bank so far as it appeared from our
examination of those books and proper returns adequate for the purpose of our audit have been received from
branches not visited by us;

(iii)

the Bank'sBalanceSheet and Profit and Lossaccount dealt with by the report are in agreement with the books of
account and returns;
I

(Iv) the expenditure incurred were for the purpose of the Bank's operations;
(v)

the financial position of the Bank as at 31 December 2009 and the Profit for the year then ended have been properly
reflected in the financial statements, the financial statements have been prepared in accordance with the generally
accepted accounting principles;

(vi) the financial statements have been drawn up in conformity with the Bank Company Act, t 991 and in accordance with
the accounting rules and regulations issued by the Bangladesh Bank;
(vii) adequate provision have been made for advances and other assetswhich are, in our opinion, doubtful of recovery;
(viii) the records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
(Ix) the financial statements conform to the prescribed standards set in the accounting regulations issued by the
Bangladesh Bank after consultation with the professional accounting bodies of Bangladesh;

74

Consolidated Balance Sheet

as at 31 December 2009
2009

2008

Taka

Taka

PROPERTY AND ASSETS

Cash

03

Cash in Hand (including foreign currencies)

Balance with Bangladesh Bank & Sonali Bank (including foreign currencies)

Balance With Other Banks & Financial Institutions

04

In Bangladesh
Outside Bangladesh

5,035,699,739
546,917,770]
4,488,781,969

3,797,376,032
508,308,936
3,289,067,096

8,224,866,995
7,277,224,162 ]
947,642,833

7,566,847,030
6,805,881, 557
760,965,473

Money at Call and Short Notice

05

269,800,000

199,900,000

Investments

06

8,659,565,948

7,239A37,583
7,134,620,224
104,817,359

Government
Others

Loans & Advances

8,440,481,806]
219,084,142
07

52,909,814,017

49,697,705,621

51'343'861,8491 147'709'856'1~

Loans, Cash Credit & Over Draft etc.

Bills Discounted and Purchased

1,565,952,168

1,987,849,424

Premises and Fixed Assets

08

424,462,708

386,594,140

Other Assets

09

2,243,203,687

2,206,581,614

Non-Banking Assets

10

Total Assets

42,400,000
77,767,413,094

71,136,842,020

LIABILITIES & CAPITAL

Borrowings from other banks I financial Institutions and agents

11

3,489,759,326

3,614,567,300

Deposits and Other Accounts

12

60,918,374,023
5,552,769, 281
2,151,455,682
5,881,201,270
47,332,947,790

56,985,924,645
5,926,486,159
2,123,586,864
5,015,235,168
43,920,616,454

Current Accounts & Other Accounts

Bills Payable
Savings Bank Deposits
Term Deposits

Other Liabilities

13

Total Liabilities

8,393,597,775] I 6,536,838,019
72,801,731,124

67,137,329,964

2,127,678,163
1,970,287,116
3,438,685
331,993,799
532,284,207
4,965,681,970

1,934,252,875
1,543,198,507
21,016,806
35,058,770
465,985,098
3,999,512,056

77,767,413,094

71,136,842,020

Capital/Shareholders' Equity
Paid-up Capital
Statutory Reserve
Other Reserve
Revaluation Reserve on Investment
Surplus in Profit and Loss Account

Total Shareholders' Equity

Total Liabilities & Shareholders' Equity

14
15
16
16(a)
17

76

Consolidated Off Balance h et

as at 31 December 2009
Notes
CONTINGENT LIABILITIES:

2009

2008

Taka

Taka

18
6,478,544,661
7,421,865,808
6,616,431,639
4,036,788,540
506,000,968

8,011,875,905
6,570,930,805
6,225,787,643
4,637,809,053
514,261,721

25,059,631,616

25,960,666,127

Accepta nces and Endorsements

Letter of Credit
Letter of Guarantee
Bills for Collection
Other Contingent Liabilities

TOTAL:
OTHER COMMITMENTS;

LJLJ

Documentary credit and short term trade-related tra nsactions

Forward assets purchased and forward deposits placed
Undrawn note issuance and revolvi ng underwriting facilities
Undrawn formal standby facilities, credit lines and other commitments

TOTAL:
TOTALOFF- BALANCE SHEET ITEMS

25,059,631,616

25,960,666,127

The annexed notes form an integral part of the Consolidated Balance Sheet.

Khondker Fazle Rashid

Khondoker Monir Uddin

Abdul Hai Sarker

Altaf Hossain Sarker

Managing Director

Director

Director

Chairman

This is the Consolidated Balance Sheet referred to in our separate report of even date.

Dhaka
11 February 201

77

ACNABIN
Chhartered Accountants

Consolidat d Profit &Los Accou t

for the year ended 31 December 2009

Operating Income
Interest I Profit Income
Interest I Profit paid on Deposits & Borrowings
Net Interest Income
Income from Investment
Commission I Fees, Exchange Earnings & Brokerage
Other Operating Income
TOTAL OPERATING INCOME (A)

~
20
21
22
23
24

2009

2008

Taka

Taka

7,466,348,667
5,406,545,979

7,171,329,773
5,213,697,657

2,059,802,688

1,957,632,116

920,155,479
1,061,326,669
193,493,307

664,473,023
1,077,458,400
186,800,312

4,234,778,143

3,886,363,851

Operating Expenses
Salary & Allowances;
Rent, Taxes, Insurance, Lighting etc.
Legal & Professional Expenses
Postage, Stamp, Telecommunication etc.
Stationery, Printing, Advertisement etc.
Chief Executive's sala ry & allowa nces
Directors' Fee & Meeting Expenses
Audit Fee
Charges on loan losses
Depreciation of Bank's Assets
Repair & Maintenance of Bank's Assets
Other Expenses
TOTAL OPERATING EXPENSES lBI
Profit I (Loss) Before Provision (C) = (A - B)
Provision for loan
Provision for Off Balance Sheet Exposure
Provision for diminution in value of investments
Provision for Dhaka Bank Foundation
Total Provision (0)

25
26
27
28
29
30
31
32
33
34
35

36
37
38
39

Total Profit I (Loss) before Tax (C - 0)

Provision for Current Tax (Note-13.5)
Provision for Deferred Tax
Net Profit I (Loss) after Tax

722,019,707
165,779,070
5,531,948
41,479,236
81,096,575
7,212,500
2,131,656
500,000
517,422
62,778,905
35,632,364
299,771,898

652,989,727
134,696,933
3,777,479
47,052,44496,133,707
7,615,322
1,634,674
550,000
2,002,962
47,416,007
32,385,785
326,783,458

1,424,451,281
2,810,326,862

1,353,038,498
2,533,325,353

674,883,819

545,948,977
119,479,000
4,000,000

674,883,819

669,427,977

2,135,443,043

1,863,897,376

1,176,070,22~ I

1,025, 132,80~

959,372,816

838,764,573

427,088,609

372,779,475

532,284,207

465,985,098

45.09

39.42

Distribution:
Statutory Reserve
General Reserve
Dividend etc.
Retained surplus

40

Earning per Share (EPS)

The annexed notes form an integral part of the Consolidated Profit & Loss Account.

1~J~
Khondker Fazle Rashid
Managing Director

Khondoker Monir Uddin

Director

Abdul Hai Sarker

Director

Altaf Hossain Sarker

Chairman

This is the Consolidated Profit & Loss Account referred to in our separate report of even date.

Dhaka
11 February 2010

ACNABIN
Chhartered Accountants

78

Consol" da d Cash FI w Sta 'e

nt

for the year ended 31 December 2009

Notes
Cash Flow From Operating Activities
Interest I Profit receipts
Interest / Profit paym en ts
Dividend receipts
Fee and commission receipts
Recoveries on loans previously written off
Payments to em ployees
Payments to suppliers
Income taxes paid
Receipts from other operating activities
Payments for other operating activities
Operating profit before changes in current assets & liabilities
Increase I Decrease in operating assets and liabilities:
Statutory deposits
Purchase / Sale of trading securities
Loans and advances to other banks
Loans and advances to customers
Oth er assets
Deposits from other banks
Deposits from customers
Other liabilities account of customers
Trading liabilities
Other liabilities
Net cash flow from operating activities (A)

41
42

2009

2008

Taka

Taka

7,542,077,472
(5,111,402,791)
2,004,272
625,633,314
914,709
(722,019,707)
(128,607,759)
(889,049,549)
439,741,485
(511,044,910)
1,248,246,536

6,984,225,132
(4,639,960,770)
882,400
770,691,334
1,263,778
(652,989,727)
{l4 7,513,630}
(708,933,737)
342,215,173
(50S,119,134)
1A44,760,819

(1,008,963,153)

(1,745,230,298)

(3,212,108,396)
9,029,894
(2,650,227,914)
6,582,677,292
3,735,486

(9,725,802,381 )
{280,760,555}
808,258,914
7,446,989,409
14,470,343

517351 369
1,489,741,114

(389 145095)
(2,426,458,844)

Cash Flow From Investing Activities

Proceeds from sale of securities
Purchase of securities
Purchase of property, plant &equipment
Sale of property, pia nt & equipment
Purchase / sale of subsidiary

917,795,651
(114,266,783)
(100,647,473)
184,400

663,133,123
512,344,434
(142,750,937)
653,206

Net cash used In investing activities (S)

703,065,795

1.033,379,826

(124,807,974)

3,084,153,800

43

44

Cash Flow From Financing Activities

Borrowing from other banks
Receipts from issue of ordinary shares
Dividends paid

(290,137,931)

Net cash flow from financing activities (C)

(414,945,905)

3,084,153,800

Net increase I (Decrease) in cash IA+S+C)

Effects of exchange rate changes on cash & cash equivalent
Opening cash & cash equivaient as at 1 January
Closing cash & cash equivalent as at 31 December

1,777,861,004
188,346,068
11,566,811,462
13,533,018,534

1,691,074,782
149,435,221
9,726,301,459
11,566,811,462

Closing cash & cash equivalents

Cash in Hand
Balance with Bangladesh Bank & Sonali Bank
Balance with other banks & Financial Institutions
Money at call & Short Notice
Prize Bond (Investment, Note - 6.1)
Total

546,917,770
4,488,781,969
8,224,866,995
269,800,000
2651800
13,533,018,534

508,308,936
3,289,067,096
4,565,897,030
3,200,850,000
2688AOO

11,566,811,462

The annexed notes form an integral part of the Consolidated Cash Flow Statement.
-- -

\ (Ly-.7. _---

dF~-

<~

Khondker Fazle Rashid

Managing Director

1~,t
Khondoker Monir Uddin
Director

Abdul Hai Sarker

Director

Altaf Hossain Sarker

Chairman

This is the Consolidated Cash Flow Statement referred to in our separate report of even date.

Dhaka
11 February 2010

79

ACNABIN
Chhartered Accountants

Consolidat d Statement of Ch nges in quity

for the year ended 3' December 2009

Pardculars

Paid up

Statutory

Other

Revaluation

Profit and Loss

capital

Reserve

Reserve

Reserve

Account

Total

on Investment
Balance as at 1 January 2009

1,934,252,875

, ,543,198,507

21,016,806

35,058,770

465,985,098

3,999,512,056

1,934,252,875

Changes in account ing policy

Restated balance
Surplus/deficit on account of revaluation of propert ies
Surplus/deficit an account of revaluation of investments
Currency t ransaction differences
Net gains and losses not recognized in the income stat ment
Net profit for the year

1,543,198,507

21 ,016,806

35,058,770

465,985,098

3,999,512,056

296,935,029

296,935,029

331,993,799

427,088,609

Changes in reserve

193,425,288
-

Transferred from Profit and Lossaccount

Balance as at 31 December 2009

2,127,678,163

co
o

Khondoker Monir Uddin

Director

959,372,816
(290,137,931)
(427,088,609)
(193,425.288 )

959,372,816
(290, 137.93 1)

514.706,086

4.965.681.970

1.970,287.116

21,016,806

1~,~
Khondker Fazle Rashid
Managing Director

Divid end paid during the year

Issuance of Bonu s Shares

331.993.799

r-

XfL."" \ .. ~{.

7f1't~

Abdul Hai Sa.ke.

Director

A Itaf Hassa i n Sarker

Chairman

....co
Consolidated liquidity St tement
(Asset and Liability Maturity Analysis)
as at 31 December 2009

P"tlculs
A""IIb:
Cash in hand
Ba lance with other banks and financiaI insnrurl0 ns
Moneyat ~a IIon shortnotice
Investment
Loan sand Adva ness
Fixed assets ineluding premises, furnitureand fixlu res
Othe. assets
Non-banking assets

TcItalAssets

UptoOl month

, -3 months

M.. th.n 5 Yell's

Totlll

5,035,699,739

5,035,699,739

8,224,866,995

167,554,428
9,809,871,510

499,795,327
7,613,261,480

370,959,741
-

617,430,902
14,627,835,863

4,226 ,296,249
18,071,752,791
240,033,915

3,148,489,042
2,787,092,373
184,428,793

269,800.000
8,659,565,948
52,909,814,017
424,462,708

742,858,682

1,119,868,908
-

9,516,356
-

2.243,203,687
-

15.988,125,447

23,657,951,863

6,129,526,564

77,767,4U,0\)4

12.666.440,000)
(37,710,055,851)

(296,337,879)

n,443,290,942)

(106.981.447)
(4,770,258,487)

8,113,056,807

1420,000,0001
(7,709,577,5021
(3,244,002,5661

(9,285,191,241)

(11,373,580,068J

Net LIquidlty Gllp

CumuI.tive Liquidity Gllp

Total Lillbilities

1-5)'NfS

8,224,866,995
269,800,000

23,$)78,752,413

Ullbllitles:
Borrowi ng from Ban 9ladesh Ban k Otherbanils.
finandaI institutlonsandagents
Deposits& Other Accou nts
Other liabilities
Capital & Rese rve

3 -12 months

(3,489,759.326)
(60,918,374,023)
(8,393,597,775)
(4,965,681,970)

15,144,11 7,463)

(5,477,746)
(4,965,681,970)

(9,285,191 ,241 )

(45,520,613,314)

(6,710,788,537)

(4,877,239.934)

(77,767,413,0941

U,S05,172,345

(1,172,134,434)

(29,532,487,867)

16,947,163,326

1,252,286,630

12,505,172,345

11,333,037,911

(18,199,449,956)

(1,252,286,630)

Highlights on the overall activities of the Bank

Particulars

SL

2009

2008

Change
In%

Paid up Capital

2,127,678,163

1,934,252,875

10

Total Capital

5,799,765,059

4,808,212,249

21

Capital surplus I (deficit) [see note 14.8J

652,185,034

748,363,332

(B)

Total Assets

77,767,413,094

7 1,136,842,020

Total Deposits

60,918,374,023

56,985,924,645

Total Loans and Advances

52,909,814,017

49,697,705,621

Total Contingent Liabilities and Commitments

25,059,631,616

25,960,666,127

(3)

Credit Deposit Ratio (%)

86.85

87.21

(0)

Percentage of classified loans against total loans and advances

5.57

3.84

45

10

Profit after tax and provision

959,372,816

838,764,573

14

11

Amount of classified loans during the year

2,946,138,271

1,908,258,498

54

12

Prov isions kept against classified loans

1,488,012,719

825,217,000

80

13

Provision surplus I (deficit)

14

Cost of fund [deposit cost & overhead costl (%)

10.94

11.53

(5)

15

Interest earning Assets

68,102,685,664

62,635,781,661

16

Non-interest earning Assets

9,664,727,430

8,501,060,359

14

17

Return on Investment (ROn

11.58

9.18

26

18

Return on Assets (ROA)

1.29

1.18

19

Incomes from Investments

920,155,479

664,473,023

38

20

Earning per Share (Taka)

45.09

39.42

14

21

Net Income per Share (Taka)

45.09

39.42

14

22

Price Earning Ratio (Times)

10.72

8.31

29

82

Notes to the Financial Statem nts

for the year ended 31 December 2009
01.

Status of the Bank and Principal Activities

The Dhaka Bank Limited was incorporated in Bangladesh as a public limited company with limited liability as on 6
April 1995 under Companies Act 1994 and commenced commercial operation on 5 July 1995.The Company went for
the public issue of shares on 18 November 1999 and its shares are listed with the Stock Exchangesof Bangladesh.
Now it has 50 branches all over Bangladesh, an offshore banking unit at EPZ, Dhaka, 6 SME Service Centers and 6
units of Capital Market Services(CMS).
The principal place of business is the registered office at 100, Motijheel Commercial Area, Biman Bhaban, Dhaka1000, Bangladesh.The principal activities carried out by the bank include all kinds of commercial banking activities I
services to its customers through its branches, SME service centers, CMS units and electronic delivery channels in
Bangladesh.Out of the above, two branches of the bank are run under Islamic Shariah,the modus operandi of wh ich
is substantiaily different from other non- Islamic branches. The bank is listed with Dhaka Stock Exchange and
Chittagong Stock Exchange as a publicly quoted company for its general class of shares. Dhaka Bank is also the
member of Central Depository of Bangladesh Limited (CDBl).

02.

Significant Accounting Policies and basis of preparation of the Financial Statements

2.1

Basis of accounting
a) Conventional Banking:
The financial statements of the Company are made up to 31 December each year, and are prepared under the
historical cost convention and in accordance with first schedule of Bank Companies Act (BCA) 1991 as amended by
Bangladesh Bank (Central Bank) BRPD Circular No.14 dated 25 June 2003, other Bangladesh Bank circulars,
International Financial Reporting Standards adopted as Bangladesh Accounting Standards (BAS), the Companies Act
1994,the listing Regulations of the Stock Exchanges, the Securities and Exchange Rule 1987 and other laws and rules
applicable in Bangladesh on a going concern basis.

b) Islamic Banking:
The bank operates Islamic Banking in two branches designated for the purpose in complying with the rules of Islamic
shariah. The operations of Islamic Branches are accounted for and the financial statements of the branches are
prepared as per Bank Companies Act 1991, Bangladesh Accounting Standards (BAS) and Financial Accounting
Standard issued by the Accountancy & Auditing organization for Islamic Financial Institutions for which a separate
set of books and records are being maintained. A separate balance sheet, income statement and a statement of
profit paid on deposits are shown in Annexure - F and the figures appearing in the annexure have been incorporated
in the respective heads of these financial statements as recommended by the Central Shariah Board for Islamic Banks
in Bangladesh.

c) Off-shore Banking Unit:

The Off-shore banking unit maintains its accounting records in USDfrom which accounts are prepared according to
the Bank Companies Act 1991, Bangladesh Accounting Standards and other applicable directives issued by
Bangladesh Bank.

dl Capital Market Services:

Dhaka Bank also performs brokerage operation through its six units under the license issued by Securities &
Exchange Commission (SEC), Dhaka, Bangladesh. The unit maintains its accounting record through consolidation
with Head Office General ledger.

e) SME Service Center:

SME Service Centers of Dhaka Bank limited maintain its accounting records in the general ledger of their parent
branches. The main functions of SME Service Centers are to render services only for receiving application,

83

disbursement, monitoring, and recovery of SMEJRetail loans. They also serve the customers for opening of account,
payments offoreign remittance etc.
f) Central Processing Center (CPC):

Dhaka Bank established the Central Processing Center for Trade & Credit Operations. The center maintains its
accounting records in the general ledger of the respective branches. The import/Export related processing & Credit
Operations are centrally controlled and monitored by the CPC for efficient and effective decision-making and
reduction of cost as well.

2.2

Basis of Consolidation
A Banking software system 'FlEXCUBE' produces consolidated Balance Sheet and Profit & loss Account including
Offshore Banking and Islamic Banking operation. These consolidated records are maintained at the Head Office of
the Bank based on which these financial statements have been prepared.

2.3

Loans and Advances

Interest is calculated on daily product basis but charged and accounted for quarterly on accrual basis. Interest on
classified loans is kept in interest suspense account as per Bangladesh Bank guidelines and such interest is not
accounted for as income until realized from borrowers. Interest are not charged on bad / loss loans as per
instructions of Bangladesh Bank.
Provision for loans and advances is made on the basis of year-end review by the management and of instructions
contained in Bangladesh Bank BCD Circular No.34 dated1611111989, BCD Circular No.20 dated 2711211994, BCD
Circular No.12 dated 04/0911 995, BRPD Circular No.16 dated 0611211 998 and BRPD Circular No.09 dated 14/05/2001. A
provision of Tk.674,883,819 has been made during the year 2009 which has been found to be adequate. The total
volume of non-performing loan is Tk.2,946.14 million as of 31 December 2009. The classification rates are given below:
UC
Prov (%)

SMA
Prov(%)

55

DF

Prov(%)

Prov(%)

BL
Prov(%}

House building
& Professional

2%

5%

20%

50%

100%

Other than House

building & Professional

5%

5%

20%

50%

100%

Small & Medium

1%

5%

20%

50%

100%

All Others

1%

5%

20%

50%

100%

BusinessUnit

Consumer:

Loans and advances are written off to the extent that (I) there is no realistic prospect to recovery (il) against which Ieqal
cases are pending for more than five years as per guidelines of Bangladesh Bank. However write off will not reduce the
claim against the borrower. Detailed records for all such write off accounts are maintained in separate register.

2.4

Investments
All investment securities are initially recognized at cost, being fair value of the consideration given, including
acquisition charges associated with the investment. Premiums are amortized and discounts accredited, using the
effective yield method and are taken to discount income. The valuation method of investments used is:

a) Held to Maturity (HTM)

Investments which have fixed or determinable payments and are intended to be held to maturity, are classified as
held to maturity. These investments are subsequently measured at amortized cost, lessany provision for impairment
in value. Amortized cost is calculated by taking into account any discount or premium on acquisition. Any gain or
loss on such investments is recognized in the statement of income when the investment is derecognized or impaired
as per IA5-39 " Flnandal Instruments: Recognition and Measurement.

84

b) Held for Trading (HFT)

The securities under this category are the securities acquired by the bank with the intention to trade by taking
advantages of short term price I interest movement, and the securities those are classified as HFTby the banks held
in excessof SlR (net of CRR) at a minimum level. Investments classified in this category are principally for the purpose
of seIling or repurchasing on short trading or if designated as such by the management. In this category, investments
are measured in fair value and any change in the fair value i.e. profit or loss on sale of securities in HFT category is
recognized in the statement of income.
Value of Investment have been enumerated as follows:

Partiiculars

Applicable Accounting

Government Treasury BiIIs I Bonds

Amortized value

T &TBonds

Amortized value

Prize Bond

Cost Price

investment Corporation of Bangladesh Debenture

At redeemable vaiue

Shares (private)

At cost or market vaiue at the Balance

Sheet date whichever is lower

For the shortfall in the market price of shares,adequate provisions have been made.

2.5

Fixed Assets and Depreciation

(I) All fixed assetsare stated at cost lessaccumulated depreciation.
(Ii) Depreciation is charged on straight-line method at the following rates on cost of assetsfor the full period
irrespective of their date of purchase. No depreciation has been charged on land.

Name of the Assets

Land
Building
Furniture & Fixtures
Office Appliances & Equipment
Computer and Software
Vehicles

2.6

Rate of Depreciation
Nil
2.50%p.a.
10.00% p.a.
20.00% p.a.
20.00% p.a.
20.00% p.a.

Non-Banking Assets
Non-banking assetsare acquired on account of the failure of a debtor to repay the loan in time after receiving the
decree from Court regarding the right & title of mortgaged property during the period of financial statements. The
value of the properties has been incorporated in the books of accounts on the basis of third party valuation report.
The property has already sold in 2009 as per decision of the Executive Committee of the Board of Directors of the
Bank.

2.7

leasing
Leases are classified as Finance Leasewhenever the terms of the leasetransfer substantially all the risks and rewards
of ownership to the lessee. All other leasesare classified as Operating Leases.

a) The Bank as lessor

Amounts due from leasesunder finance lease are recorded in the assets side of the Balance Sheet at the amount of
the bank's net investment in the leases. Finance lease rental income is allocated to accounting periods so asto reflect
a constant periodic rate of return on the bank's net investment outstanding in respect of the leases. No depreciation
has been charged for such lease in the account.

85

b) The Bank as lessee

Assets held under finance leases are recognized as assetsof Bank at fair value at the date of acquisition or if lower, at
the present value ofthe minimum lease payments. The corresponding liability to the lessor is included in the Balance
Sheet as a Finance Lessee obligation. Leasepayments are apportioned between finance charges and reduction of the
lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges
are charged directly against income. Assets held under Finance Leases are depreciated over their expected useful
lives on the same basis as owned assets.

2.8

Offshore Banking Unit

Offshore Banking Unit is a separate business unit of Dhaka Bank Limited, governed under the Rules & Guidelines of
Bangladesh Bank.The Bank obtained the Offshore Banking Unit permission vide letter no.BRPO (P)744(92)12005-2181
dated June 18, 2005. The Bank commenced the operation of its Offshore Banking Unit with effect from May 10, 2006.

2.9

Retirement benefits to the employees

a) Provident Fund - Provident Fund benefits are given to the employees of the bank in accordance with the locally
registered Provident Fund Rules.The Commissioner of Income Tax, Tax Zone - 5, Dhaka has approved the provident
fund as a recognized provident fund as per section 2(1) of part-B of the first schedule of Income Tax Ordinance 1984.
The recognition took effect from 1st July 1996. All confirmed employees of the Bank are contributing 10% of their
basic salary as subscription of the fund. The Bank also contributes equal amount of the employees' contribution to
the fund. Interest earned from the investments is credited to the members account annually.
b) Superannuation Fund - The bank operates a Superannuation Fund Trust by a Board ofTrustees consisting of five
members. The death - cum survival benefits are given to the employees as per the elig ibility narrated in the Trust
Rules.The fund got recognition from the National Board of Revenue (NBR) effect from 1st January 2001 under section
3 & 4 of part- A of first schedule of Income Tax Ordinance 1984. The Bank contributes to the fund annually as per
Superannuation Fund Rulesofthe bank.
c) Gratuity - The bank operates an Employee Gratuity Fund Trust by a Board of Trustees consisting of six members.
All confirmed employees who have been in the service of the bank for a minimum of five years without break, shou ld
eligible to have the benefit under the gratuity scheme. The Gratuity Trust Rules got recognized from the National
Board of Revenue (NBR) effect from 25/04/2006 under section 2 & 3 of part- C of first schedu le of Income Tax
Ordinance 1984.The bank has started making provision against gratuity from the year 2004.

2.10 RevenueRecognition
The revenue during the year is recognized as following which satisfy all conditions of revenue recognition as
prescribed by BAS18 "Revenue Recognition".

a) Interest Income - The interest receivable on unclassified loans and advances 1 investments is recognized quarterly
on accrual basis. Interest on loans and advances 1 investments, ceases to be taken into income when such advances
are classified or treated as SMA as per Bangladesh Bank BRPD circular No. 16 of 1989, kept in interest suspense
account and in memo account. Interest on classified advances is accounted for on a cash receipt basis.
Interest on Credit Card outstanding is calculated on daily product but charged on monthly basis. Interest charged on
Credit Card up to 25 December 2009. Monthly bill of Credit Card issued on 25 day of each month and amount
payable for transaction occurred after 15 December has not been accounted for.

b) Fees and Commission Income - Fees and commission income arises on services provided by the Bank and
recognized on a cash receipt basis. Commission charged to customers on letter of credit and letter of guarantee are
credited to income at the time effecting the transactions.
c) Dividend Income - Dividend income from shares is recognized at the time when it is realized.
d) Interest paid and other expenses - The interest paid on deposits and borrowings and other expenses are
recognized on accrual basis as prescribed by BAS- 1 "Presentation of Financial Statements",

86

2.11 Foreign Currency Transactions

Foreign currency transactions are converted into equivalent Taka currency using the ruling exchange rates on the
dates of respective transactions. Assetsand liabilities as at 31 December 2009 in foreign currencies are translated into
Taka currency at the prevailing selling and buying rates of the concerned foreign currencies of that day. Difference
arising through transactions of foreign currencies buying and selling on different dates of the year has been adjusted
by debiting I crediting to the Profit & loss Account.

2.12 Taxation
a) Provision for Taxation
The company is a publicly traded company as per the Income Tax Ordinance 1984. Provision for Current Income Tax
has been made at the existing rate of 42.50% as prescribed in Finance Act 2009 of the accounting profit made by the
Bank after considering some ofthe Taxable add backs of income and disallowances of expenditures.
b) Deferred Tax

Deferred tax arises due to temporary difference deductible or taxable for the events or transaction recognized in the
income statement. Deferred tax assets are the amount of income taxes recoverable in future periods in respect of
deductible temporary differences. Deferred tax liabilities are the amount of income taxes payable in future periods in
respect of taxable temporary differences. Deferred tax assetsand liabilities are measured using tax rates and tax laws
that have been enacted or substantially enacted at the balance sheet date. The Bank has recognized Deferred Tax
accounting policy as per Bangladesh Accounting Standard (BAS)-12.

2.13 Earning per Shares {EPS)

Earning per share has been calculated in accordance with BAS33 "Earnings per Share" which has been shown on the
face of Profit and loss Account. This has been calculated by dividing the basic earnings by the weighted average
number of ordinary shares outstanding during the year. Previous year's figures have been adjusted as per guidelines
of BAS33.

2.14 Off-balance sheet Items & provisions

As per Bangladesh Bank Guidelines Off-balance sheet items have been disclosed under contingent liabilities & other
commitments. Dhaka Bank limited. has maintained provision @ 1% against off-balance sheet exposures (UC and
Guarantee) as per BRPD Circular #10, dated September 18,2007.

2.15 Cash Flow Statement

Cash Flow Statement is prepared principally in accordance with BAS 7 "Cash Flow Statement" and under the
gUidelines of Bangladesh Bank BRPD Circular No.14 dated 25th June 2003. The cash flow statement shows the
structure of and changes in cash and cash equivalents during the financial year. It is broken down into operating
activities, investing activities and financial activities.

2.16 Statement of Changes in Equity

Statement of Changes in Equity is prepared principally in accordance with BAS-1 "Presentation of Financial
Statements" and under the guidelines of Bangladesh Bank BRPD Circular No.14 dated 25th June 2003.

2.17 Statement of Liquidity

The liquidity statement has been prepared in accordance with the remaining maturity grouping of the value of the
assets and liabilities as on 31 December 2009 and under the guidelines of Bangladesh Bank BRPD Circular No.14
dated 25th June 2003.

87

2.18 Reconciliation of inter-bank / books of Accounts

Books of accounts in regard to inter-bank (in Bangladesh and outside Bangladesh) and inter-branch are reconciled
and no material difference was found which might effect the financial statements significantly.
Un-reconciled entries in case of inter-branch transactions as on the reporting date are not mentionable due to the
time gap before finalizing the same.
2.19 Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize
the asset and settle the liability substantially.

2.20 Post Balance Sheet events

No material events had occurred after Balance Sheet date, which could affect the values reported in the financial
statements.
2.21 General
fa) Wherever considered necessary figures of previous year have been rearranged to conform to current year's
presentation.
(b) The expenses, irrespective of capital or revenue nature, accrued/due but not paid have been provided for in the
books of the bank.
(c) Figures appearing in these financial statements have been rounded off to the nearest Taka

2.22 Number of Employees

The number of employees engaged for the whole year or part thereof was 924 (Male-743 & Female - 18t). The Bank
recruited 56 numbers of staff during the year. Attrition rate is 3.25% in 2009 compared to 5.23% in 2008.

2.23 Risk Management

The Bank has established effective risk management for steady and stable growth of the Bank in accordance with the
guidelines of Bangladesh Bank. The RiskManagement of the Bank covers following five core risk areas of banking:
i) Credit Risk
ii) Foreign Exchange Risk
iii) Assets - Liability Management
iv) Prevention of Money laundering
v) Internal Control and Compliance

The prime objective of the risk management is that the bank takes credit and business risks while safeguarding the
Bank's interest from the possibility of losses, financial or otherwise. The Bank's risk management ensures internal
control and compliance are adhered by all branches and divisions of Head Office. The Bank has Management
Committee (MANCOM), Asset liability Committee (AlCO), Cost Containment Committee and Credit Risk
Management Committee for assessment of credit risk, foreign exchange rlsk, market risk, money laundering risk,
reduction of operating cost etc. at Head Office level on regular basis. Above that, the Executive Committee and Aud it
Committee comprising of members of the Board of Directors conduct the RiskAssessment at Board level.
i) Credit Risk

Credit Risk means un-certainty to meet financial obligations as per agreed terms by the borrowers during the tenure
of the credit facilities. For maintaining steady growth rate of the bank and economic development of the country,
Dhaka Bank manages the Credit Risk properly. Dhaka Bank extends credit facilities to different clients in different
sectors after doing due diligence and mitigating risk factors properly as per gUidelines/standard set by Bangladesh
Bank, Executive Committee of the Board of Directors and Management Credit Committee of the Bank.

88

Credit related works are segregated in different stage for mitigating credit risks. The duties of Credit Risk
Management is to maintain asset quality, assessing risk in lending to a particular client, sanction ing credit facilities,
formulating policy/strategy for extending credit facilities. Credit Administration cell in branch completes all
necessary documentation formalities before disbursement of funds. Monitoring & Recovery unit monitor the clients
regularly and necessaryactions are taken for recovery of loans. Legal & Compliance unit is entrusted with the duties
of dealing with the casesfiled for recovery of loans and ensuring compliance of terms & conditions of sanction letter.
In case of Large Loan, the instructions and guidelines of Bangladesh Bank are followed meticulously and Form-L is
submitted to Bangladesh Bank on monthly basis.
ii) Foreign Exchange Risk

To address the issue of Foreign Exchange Risk Management, all foreign exchange activities has been segregated
between Front and Back Office. The issue is being addressed through various techniques so that no exposure is
uncovered in any time. Dhaka Bank foliows ail prudential procedures for covering foreign exchange risks as per
gUidelines of Bangladesh Bank. Treasury Division always monitors the market scenario of risks and manage the
foreign exchange operations in a way so that earnings is not hampered against any adverse movement in market
prices. The foreign exchange risk is at minimum level as all the transactions are carried out on behalf of the
customers against UCs and remittances. All Nostro accounts are reconciled on monthly basis and outstanding entry
beyond 30 days is reviewed by the management for its settlement.
iii) AssetsLiability Management

Dhaka Bank formed AssetsLiability Committee (ALCO) in March 2003. The ALCOcomprisesof the Managing Director,
Deputy Managing Directors, Head of Treasury, Credit, Personal Banking, & Finance and Accounts Divisions. ALCO
regularly reviews issues like Interest Ratestrends, Foreign Exchange position, Balance Sheet Risk, Ratesof Interest on
Deposit and Advances, liquidity requirements of the bank, maturities mismatch posit ion of Asset and Liabilities, Cost
of Deposits, Net Interest rnargin etc. and takes appropriate action.

Iv) Prevention of Money laundering

Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in
prevention of money laundering. Nominated anti money laundering compliance officers in branches report to Chief
Anti Money Compliance Officers (who is also Head of Operation Division) in head office on any suspicious
transaction. Steps are taken to have transaction profile before opening any account. Bank has prepared its moneylaundering manual for applications. Training has been continuously given to all officers and executives for
developing awareness and skill for identifying suspicious transactions/activities.

v) Internal Control and Compliance

The Bank stresseson both the design and operation effectiveness of its internal control system to protect the bank
from possible loss that may arise from either intentional/ unintentional errors or from fraudulent activities. The Audit
& Internal Control Division of the Bank is independent and able to carry out it s assignments with objectivity and
impartiality. The division makes a year wise risk based audit plan to carry out comprehensive audits and inspections
on the banking operations in various divisions of head office and branches in order to ensure that internal control
practice and procedures are in place and complied with. On the other hand, the Muraqib under Shariah Council
conducts shariah audit in the Islamic banking branches at least twice in the year as per inst ruction given by Shariah
Council of the Bank. The Audit Committee of the Board subsequently reviews all auditJinspections reports and
authorizes suggested corrective measures.
The Information Systems/Information Technology Audit Unit conducts audits to evaluate the system's efficacy and
security protocols, in particular, to evaluate the Bank's ability to protect its information assetsand properly dispense
information to authorized parties. The IS/ITaudit focuses on determining risks that are relevant to information assets,
and in assessing & suggesting controls in order to reduce or mitigate these risks to acceptable level.

89

The Compliance Unit of the division works as the point of contact when any regulatory inspection is carried out and
ensures that corrective measures are taken and the appropriate responses are made on a timely fashion. If the
regulatory authority identifies any major lapses then it notifies to the senior management and/or to the Audit
Committee of the Board of Directors of the Bank.
The Monitoring Unit of the division monitors and follow-up the ethical standards through Departmental Control
Function Check List (DCFCl), loan Documentation Check List (WCl) and Quarterly Operation Reports. On receipt of
the compliance report the Monitoring Unit carefully checks the compliance status with the help of systems. It also
regularly monitors branch MIS (e.g. Classification, Excess Over Limit, Overdue facilities, KYC, TP etc.) online from the
systems and notifies deficiencies, if any, to the auditee management as well as to the top management and/or the
Audit Committee for regularization/rectification.
To managing core risk in banking, Dhaka Bank formed a management Reporting System (MRS) Committee to ensure
effective reporting system in consistent format for efficient decision making. The MRS committee comprises of
Deputy Managing Directors, Head of Credit, Operations, Finance & Accounts, Information Technology, Internal
Control & Compliance and Treasury to evaluate periodically reported data and data channel for accuracy and
efficacy.

2.24 Audit Committee of the Board of Dil'f!ctors

i) Particulars of Audit Committee
The Audit Committee of the Board was duly constituted by the Board of Directors of the Bank in accordance with the
BRPD Circular No. 12 dated December 23, 2002 issued by Bangladesh Bank.The Committee was formed comprising 3
(three) members of the Board.
SI

Name

01

Mr. Abdul Hai Sarker

02
03

Status with Bank

Status with Committee

Educational Qualification

Director

Chairman

M.Com

Mr. Mohammed Hanif

Vice Chairman

Member

Intermediate

Mrs. RokshanaZaman

Director

Member

Intermediate

Ii) Meeting held with Audit Committee

During the year, the Audit Committee of the Board conducted three meetings to undertake various functions
including reviewing financial statements in compliance with the Bangladesh Bank. The discussed issues are as
follows:
Audit plan for the year 2009
Financial Report on the health ofthe Bank
Status of progress report of all irregular accounts
Review of classified loans and advances
Review of court cases
Reviewing the status of top borrowers of the Bank
Reviewing the half- yearly financial statements of the Bank
Global Inspection Report of Dhaka Bank ltd covering the period from January 01, 2009 to December 31,2009

iii) Steps taken for implementation on effective internal control procedure of the Bank
The Committee placed its report regularly to the Board of Directors of the Bank mentioning its review results and
recommendations on internal control system, compliance of rules and regulations and establishment of good
governance within the organization.

90

2.18 Reconciliation of inter-bank I books of Accounts

Books of accounts in regard to inter-bank (in Bangladesh and outside Bangladesh) and inter-branch are reconciled
and no material difference was found which might effect the financial statements sign ificantly.
Un-reconciled entries in case of int er-branch transactions as on t he reporting date are not mentionab le due to the
time gap before finalizing the same.

2.25 Shariah Council Committee

The Executive Committee of the Board of Directors const ituted Shariah Council of Dhaka Bank Limited. The following
are the members;

Educational Qualification

Sl Name

Status with the Bank

Status with the

01 Mr. MAzizul Huq

Chairperson

M.A (Economics)

Member

Kamil, MA (Islamic Stud ies)

Member

Kamil, M.A {Islam ic Stud ies)

Member

Barrister at Law

05 Mr. Khondker Fazle Rashid

Managing Director

Member

MBA from IBA,. Dhaka University

05 Mr. Syed Abdul Quader

Vice President & Manager,

Secretary Member

B.Com (Hons.)

Committee
02 Professor Moulana
Mohammad Salah Uddin

03 Mr. Md. Mokhlesur Rahman

04 Mr. M2iaul Hassan

M. Com (Management)

Islamic Banking BranchMotijhee l

During the year 2009, the following issues were discussed in the meetings;
Awareness for Compliance of Shariah Principles among the executives & officers.
Decision regarding Compensation/Doubtful Income.
Implementation of Islamic Banking guidelines circulated by Bangladesh Bank.

Distribution of Final Profit in different Mudaraba Deposit Accounts after adjustment.

Introduction of Common Islamic Banking Software or to modify the existing software w ith t he
Islamic Sharlah Principles.

2.26 Information about Segment Reporting

The bank operates under the following business segments:

Particulars

Conventional

Islamic

Total

Total Operating Income

4,107,013,054

127,765,089

4,234,778,143

Allocated Expenses

1,396,644,018

27,807,263

1,424,45 1,281

Operating Profit (Before Tax & Provision)

2,710,369,036

99,957,826

2,810,326,862

Total Provision (loans/Advances & Others)

674,883 ,819

Profit Before Tax

2,135,443,043

Segment Assets

71,364,402,836

6,403,010,258

77,767,413,094

Segment Liabilities

71,364,402,836

6,403,0 10,258

77,767,413,094

Provision for Income Tax

Net Profit

91

1,176,070,227
959,372,816

The operations of these segments are specifically identified by Income, expenses, assets and liabilities. Based on such
allocation, segment balance sheet as at 31 December 2009 and segmental profit and loss account for the year ended
31 December 2009 have been prepared.

2.27 Compliance report on Bangladesh Accounting Standards (BAS)

BAS no

Status

Presentation of Financial Statements

Applied

Inventories

N/A

Cash Flow Statement

Applied

Accounting Policies, Changes in Accounting estimates & errors

Applied

Events after the Balance Sheet Date

10

Applied

Construction Contracts

11

N/A

Income Taxes

12

Applied

Segment Reporting

14

Applied

Property Plant & Equipment

16

Applied

leases

17

Applied

Revenue

18

Applied

Employee benefits

19

Applied

Accounting for Governments Grants and Disclosure of Government Assistances

20

N/A

The Effects of Changes in Foreign Exchange Rates

21

Applied

Borrowing Costs

23

Applied

Related Party Disclosures

24

Applied

Accounting for investments

25

Applied

Accounting & Reporting by Retirement Benefit Plans

26

Applied

Consolidated & Separate Financial Statements

27

Applied

Investments in Associates

28

N/A

Disclosures in the Financial Statements of Banks and similar Financial Institutions

30

Applied

Interest in Joint Ventures

31

N/A

Earning Per Share

33

Applied

Interim Financial Reporting

34

Applied

Impairment of Assets

36

Applied

Provisions, contingent liabilities and Contingent Assets

37

Applied

Intangible Assets

38

N/A

Investment Property

40

Applied

Agriculture

41

N/A

Name ofthe BAS

* NIA = not applicable

92

2009
Taka

03 Cash
3.1

2008
Taka

Cash in Hand
In Local Currency (Bangladesh Bank Note & Government Note)
In Foreign Currencies

492,689,563

516,981,549 ]
2~~36,221

15,619,373
'--_=,,~""-'-'~

546,917,770
3.2

Balance with Bangladesh Bank

In Local Currency

2,828,052,859
1,573,823,174
4,401,876,033
86,905,936

In Foreign Currencies
Balance with Sonali Bank as agent of Bangladesh Bank

Total
3.3

508,308,936

2,295,041,121
936,902,846
3,231,943,967
57,123,129

4,488,781,969
5,035,699,739

-I

3,289,067,096
3,797,376,032

Statutory Deposits
Cash Reserve Ratio and Statutory Liquidity Ratio have been calculated and maintained as per Section 33 of the
Bank Companies Act 1991 and BCD Circular No.13 dated 24.05.1992, BRPDCircular No.12 dated 20.09.1999 &
BRPDCircular No.22 dated 06.11.2003 and BRPDCircular No. 12 dated 25.08.2005.

3.3.1 Cash Reserve Ratio (CRR)

(5% of Average Demand & Time Liabilities)
Required Reserve
Actual reserve maintained

2,864,619,000
3,25f~-,895,000

394,276,000

Surplus
Percentage (%) held against Requirement (5%)

5.69%

2,591,819,850
2,624,631,000

32,811,150

JI

5.06%

3.3.2 Statutory liquidity Ratio (SLR)

(13% of Average Demand & Time Liabilities)
Required Reserve
Actual reserve maintained

7,448,009,000
9,047,482,000

Surplus

1,599,473,000

533,249,390

15.79% ] I

Percentage (%) held against Requirement (13%)

3.3.3 Total Required Reserve

Total Actual reserve maintained

10,312,628,000
12,306,377,000

Total Surplus

1,993,749,000

Total Percentage (%) held against Requirement (18%)

21.48% ]

6,738,731,610
7,271,981,000

14.03%
9,330,551,460
9,896,612,QOO _

566,060,540.00

19.09%

04 Balance With Other Banks & Financial Institutions

In Bangladesh (Note 4.1)
Outside Bangladesh (Nostro Accounts) (Note 4.2)

7,277,224,162 ]
94?,642,833

Total
4.1

6,805,881,557
- 760,965-'.473

8,224,866,995

7,566,847,030

1,895,176,314
9,876,576
508
5,831
2,125,227
27,289,870
2,851,507
772,027

1,990,667,406
40,354,681
1,796
263,931
2,243,857

1,938,097,860

2,036,532,257

In Bangladesh
Form of Deposits

4.1.1 Current Deposit

Sonali Bank Limited
Janata Bank Limited
Southeast Bank Limited
Bank Asia Limited
Standard Chartered Bank (Visa Settlement)
Brae Bank Limited
AB Bank Limited
United Commercial Bank Limited

93

3,000,586

4.1.2 Short Term Deposit (STD)

2009
Taka

2008
Taka

140,334,680
1,023
13,377,165
84,126
10,593,246
16,386,062
180,776,302

Janata Bank limited

Agrani Bank Limited
Dutch Bangia Bank Limited
Eastern Bank Limited
AB Bank limited
National Bank Limited

4.1.3 Fixed Deposit

Commercial Bania
1,100,000,000
800,000,000

Social Investment Bank Limited

Shahjalallslami Bank Lirnited
AI-Arafah lslarni Bank Limited
National Bank of Pakistan
Mutual Trust Bank limited
Brae Bank Limited
Jamuna Bank limited

40,211,534
723
13,680,904
81,142
5,750,934
8,674,QL.
68,399,300

-- 800,000,000
800,000,000
100,000,000

100,000,000
100,000,000
100,000,000
200,000,000

2Aoo,OOO,OOO

1,700,000,000

100,000,000
869,150,000
100,000,000
270,000,000
120,000,000
200,000,000
99,200,000
800,000,000
200,000,000

100,000,000
571,750,000
100,000,000
270,000,000
120,000,000
240,000,000
99,200,000
850,000,000
500,000,000
150,000,000

FlnQnciQllnstltutlons
Premier leasing International Limited
Phoenix leasing Company limited
Bangladesh Industrial Finance Company limited
Prime Finance & Investment limited
Peoples leasing Cornpany Lirnited
National Housing Finance & Investment Limited
Uttara Finanace & Investment Limited
International leasing & Financial Services limited
United leasing Company limited
Industrial & Infrastructure Development Finance Company limited

2,758,350,000

Total Fixed Deposits

Total

3,000,950,000
----5,158,350.000 ] I 4,700~950;OOO~
7,277,224,162
6,805,881,557
",.

4.2

Outside Bangladesh (Nostro Accounts)

4.2.1 Interest-Maring Accounts

American Express Bank, New York
Standard Chartered, New York
Mashreq Bank, New York
Marine Midland Bank, New York
cm Bank NA, New York
Commerz Bank, Frankfurt
Habib American Bank
Wachovia Bank NA, New York
American Express Bank, Kolkata
Standard Chartered, Mumbai
Banca Nazionale Dellavoro
ern Bank NA, Murnbai
ICiCIBank limited, India
Union Bank of Switzerland
Standard Chartered Bank, United Kingdom
Commerz Bank, Frankfurt
American Express Bank, GMBW, Frankfurt
Bank Nazional Del Italy
Unicredit S.P.A. Milano
Commonwealth Bank of Australia, Sydney
Standard Chartered Bank, Japan
Standard Chartered london
HSBC,Canada
Habib Metropolitan Bank ltd. Karachi

376,685,895
118,423,208
75,418,160
79,586,871
10,694,529
51,641,252
29,693,622
4,937,925
62,240,577
1,667,520
663,523
20,749,891
4,374,637
24,808,124
14,082,556
5,166,457
1,020,045
14,906,163
1,104,974
1,489,447
19,693,399
1,021,268
6,961,156
927,031,197

47,983,479
255,258,533
39,522,066
56,393,741
132,134,757
1,508,984
53,957,352
12,498,907
4,401,951
899,838
9,750,151
513,840
14,961,764
1,474,122
89,539,863
3,427,255
201,320
3,819,208

484,722
2,518,343
4,883,753
1,610,204
(5,666,596)
-----n2,077,557 -

94

06

2009

2008

Taka

Taka

Investments
6.1

Government Securities
Treasury Bills (Note 6.1.1)
Treasury Bonds (Note 6.1.2)

1,117,226,229
7,320,603,777
2,651,800
8,440,481,806

Prize Bond

6.2

Other Investments
Shares (Note 6.2.1)
ICBDebenture (6.2.2)
Zero Coupon Bonds (6.2.3)
Others (6.2.4)

149,423,110 ]
6,000,000
48,181,514
15,479,518
219,084,142

Total
6.1.1 Treasury Bills (at amortized value)
28 days Treasury Bills
30 days Treasury Bills
91 days Treasury Bills
181 days Treasury Bills
364 days Treasury Bills

6.1.2 Treasury Bonds (at amortized value)

3 years T & T Bond
5 years Bangladesh Government Treasury Bond
10 years Bangladesh Government Treasury Bond
15 years Bangladesh Government Treasury Bond

1,035,388,007
6,096,543,817
2,688,400
7,134,620,224

5
'399'774 ]
8,000,000
35,941,993
15,475,592
104,817,359

8,659,565,948

7,239,437,583

499,795,327

885,815,357
149,572,650

617,430,902
1,117,226,229

1,035,388,007

4,178,114,735- j2,629,241,495
513,247,547
7,320,603,777

~3,110,571,842
96,721,514 J
2,485,250,461
404,000,000
6,096,543,817

6.2.1 Shares
Quoted companies (Note - 6.2.1.1)
Private
Unquoted companies
Central Depository Bangladesh Limited

4,000,000
149,423,110

6.2.2 Debentures
ICBDebenture (at redeemable value)

6.2.3 Zero Coupon Bond (at present value)

Industrial Promotion & Development Company Limited
United Leasing Company Limited
Industrial Development Leasing Company of Bangladesh Limited

41,399,774

145,423,110 ]

6,000,000

4,000,000
45,399,774

JC

48,'8,,51~ j

8,o00~OO

48,181,514

918,612
1,666,370
33,357,011
35,941,993

9,120,000 ]
5,000,000
1,359,518
15,479,518

9,120,000
5,000,000
1,355,592
15,475,592

6.2.4 Other Investments

Dhaka Stock Exchange
Chittagong Stock Exchange
Investment against Fund abroad

6.2.1.1 Book value of Share as on 31 December 2009 as follows

Quoted Shares in
Eastern Bank Limited
Beximco Pharmaceuticals Limited
Brae Bank Limited
ICBAMCL 1st Mutual Fund
Jamuna Oil Company Limited
Lafarge Surma Cement Limited
Mercantile Bank Limited
Meghna Petroleum Limited
National Bank Limited

34,423,830
100,000,000
2,390,000
6,970,984
1,638,296

145,423,110

1,532,522
2,509,635
7,855,273
6,970,984
1,365,396
19,661,422
'--~;o-l ,504,542

41,399,774

(Details of Investment in shares may kindly be seen in Annexure - B)

96

2009

2008
Taka

Taka
6.3

Investment in Sec:urltles are classified as per

Bangladesh Bank Circular
Held for Trading (HFT)
Held to Maturity (HTM)

3,401,780,856 ]
5,042.049,150
8,443,830,006

6.4

686,074,599
6,453,857,225
7,139,931,824

Assetspledged as security

Assets In the amounts shown below were pledged as security

for the following liabilities
Liabilities to bank
Liabilities to customers

220,OOO,00~ ]
220,000,000

Following assetswere pledged as security for the above

mentioned liabilities
Claim on banks
Claim on customers

-1-

238,963,958

238,963,958

6.5

07

Maturity Grouping of Investments

On demand
Upto 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years

167,554,428

63,563,766

499,795,327
617,430,902
4,226,296,249
3,148,489,042
8,659,565,948

885,815,357
149,572,650
3,243,235,349
2,897,250,461
7,239A37,583

11,342,253,636
915,494
3,362,145,039
920,345,334
457,719,351
16,016,404,706
6,975,966,663
647,023,683
162,366,862
388,396,297
8,243,158
1,221,483,668
144,524,031
3,842,429,558
5,853,644,369

12,331,027,323
85,846
3,532,417,037
756,104,195
390,891,037
14,767,609,448
7,576,639,263
384,828,078
177,256,470
292,315,224
10,956,769
1,327,898,411
120,581,047
3,803,331,066
2,237,914,983

Loans & Advances

7.1

Loans,Cash Credits & Overdrafts etc.

In Bangladesh
Secured OverdraftlQuard againstTDR
Demand Loan
Cash CreditlMurabaha
House Building Loan
Transport Loan
Term Loan
Loan Against Trust Receipt
Payment Against Documents
Loan Against Imported Merchandize
Loan Against Accepted Bills
Packing Credit
Lease Finance I lzara (Note - 7.4)
Credit card
Retail Loan
Other Loans (Including Bai-Muajjal)

--- ~-

51,343,861,849

47,709,856,197

51,343,861,849

47,709,856,197

Outside Bangladesh
Sub-total

97

7.2

2008
Taka

2009
Taka

Bills Purchased & Discounted

Payable in Bangladesh

Inland bills purchased & discounted

1,413,460,504

Payable outside Bangladesh

Foreign bills purchased & discounted

152,491,664

Sub-total
Total
7.3

1,785,920,996
_

201,928,428

1,565,952,168

1,987,849,424

52,909,814,017

49,697,705,621

9,809,871,510
7,613,261,480
14,627,835,863
18,071,752,791
2,787,092,373

6,146,223,205
301,497,439
23,080,301,484
15,791,451,685
4,378,231,808

52,909,814,017

49,697,705,621

Residual maturity grouping of loans Including bills

purchased and discounted

Repayable on Demand
Not more than 3 months
More than 3 months but not more than 1 year
More than 1 year but not more than 5 years
More than 5 years
Total

7A

Investment in lease Jizara finance

Lease rental receivable within 1 year

lease rental receivable within more than 1 year

1,044,983,799 ]
810,326,144
1,855,309,943

Total leasel izara rental receivable

less: unearned interest receivable

Net Investment In leaseflzara finance
7.5

Total

385,090,539
1,646,594,030

----=----=-=--::-::-::-c:-::-::-::-c----'

2,031,684,569

633,826,275

703,786,158

1,221,483,668

1,327,898,411

Loans on the basisof significant concentration including

bills purchased & discounted

a. Advances to allied concerns of Directors

b. Advances to Chief Executive
c. Advances to Other Senior Executives
d. Advances to Customer's Group:
Agriculture loan
Commercial lending
Export financing
Consumer credit scheme
Special Program Loan (SME)
Staff loan
Others
Total

999,000
676,000 ]
4,560,925
72,800,000
74,124,852 '--_'-="'~-="::"';:=--304,077,254
30,231,701,932
2,375,342,713
3,986,953,589
4,404,910,668
255,191,472
11,272,274,612

175,887,000
20,369,100,249
1,934,825,692
3,995,184,179
1,766,748,826
228,722,784
21,153,437,891

52,909,814,017

49,697,705,621

14

20
16,311,842,494

Loans and advances allowed to each customer exceeding

15% of Bank's total Equity

Number of Customers
Amount of outstanding loans"
Classified amount thereon
Measures taken for recovery

14,826,150,745

*The amount represents the sum of total loans (Both Funded & Non funded) to each customer exceeding
15% of total Equity of the bank as at 31 December 2009.
(Details are given in Annexure - C)

98

2009
Taka
7.6

Industry - wise loans including bills purchased & discounted

Agricultural Industries
Pharmaceuticals Industries
Textile & Garment Industries
Chemical industries
Food & alled Industries
Transport & Communication
Electronics & Automobile Industries
Housing & Construction Industries
Engineering & Metal industres including Ship Breaking
Energy & Power Industries
Service Industries
Other Industries
Total

7.7

2008
Taka

304,077,254
560,659,236
9,728,960,598
1,304,896,985
3,503,653,972
1,905,175,353
93,827,975
6,916,089,291
3,937,102,428
584,723,090
1,578,187,986
22,492,459,849
52,909,814,017

175,887,105
747,024,025
10,215,803,054
1,135,507,236
2,728,766,012
2,116,126,321
497,388,231
4,669,178,053
2,504,950,104
852,829,303
1,163,693,231
22,890,552,946
49,697,705,621

Geographical Location wise Loansand Advances;

Urban
Dhaka Region
Chittagong Region
Sylhet Region
Other

36,419,760,755
8,974,349,898
620,286,686
3,371,401,134
49,385,798,473

35,423,699,642
7,151,122,732
479,122,087
3,434,550,645
-46,488,495,106

Rural
Dhaka Region
Chittagong Region
Sylhet Region
Other

Total
7.8

1,725,509,732 1 1 ,731,881,743
127,287,927
78,124,637
201,677,863
76,595,872
1,469,540,022 e....-l ,322,608 ~
3,524,015,544
- 3,209,210,515
52,909,814,017
49,697,705,621
:

Sector wise loans

In Bangladesh
Government & Autonomous bodies
Financial institutions (Public & Private)
Other Public Sector
Private Sector

-1

664,869,437

221,871,729

~,475,833,~

52,244,944,580
5~909,81~017

49,69~70~621

5~909,81~017

49,69~70~621

Outside Bangladesh
Total
7.9

Classificationof loans & advances

Unclassified(Including staff loan)
Standard
Special Mention Account

48,796,610,890 ] 1 46'705'554'405l
1,167,064,857 I 1,083,892,718
49,963,675,747
47,789,447,123
-

Classified
Sub-Standard
Doubtfui
Bad or loss

431,585,008 ]
591,158,155
1,923,395,108
2,946,138,271

139,780,693
904,911,608
~_ 863,566}97 _
1,908,258,498

Total

99

5~909,81~018

49,69~70~621

7.10 A) Provision required for loans and advances

Status

Base for Provision

45,277,840,545
1,446,068,908
1,738,835,889
1,123,534,084

Unclassified
Unclassified
Unclassified
Special Mention Account

Rate %
1
2
5
5

2009
Taka

452,778,405
28,921,378
86,941,794
56,176,704

2008
Taka

428,255,000
25,440,000
115,331,000
51,217,000
--

624,818,281

620,243,000

71,521,527
195,252,599
1,221,238,639

21,821,000
324,205,000
479,191,000

1,488,012,765

825,217,000

Required provision for loans & advances

2,112,831,046

1,445,460,000

Total provision maintained

2,112,831,046

1,445,460,000

Classified:

357,607,635
390,505,197
1221,238,639

Sub-Standard
Doubtful
Bad or loss

20
50
100

Excess/short provision as at 31 December

Details of provision may kindly be seen in Note 2.3
B) Provision required for Off-Balance Sheet Exposures
Status

Base for Provision

Acceptances and Endorsements

letter of Credit
letter of Guarantee

6,478,544,661
7,421,865,808
6,616,431,639

Rate %
1
1
1

Required provision
Total Provision Maintained

Excess / (Short) Provision at 31 December 2009

64,785,447 ]
80,118,769
74,218,658
65,709,308
66,164,316 _ _62,257,8.?6_
205,168,421

208,085,954

208,086,000

208,086,000

2,917,579

46

42,24J3,595,231
1,150,543,381
176,181,829
647,023,683

16,282,105,192
1,785,920,996
3,100,000,000
201,928,428
1,723,685,629

4,132,788,470
369,373,393

8,632,293,086
735,719,500

3,986,953,589
198,354,441

13,109,967,807
4,126,084,983

52,909,814,017

49,697,705,621

7.11 Securities against loans including bills purchased & discounted

a.Secured
Collateral of movable I immovable assets
local Banks & Financial Institutions guarantee
Government Guarantee
Foreign Banks Guarantee
Export documents
Fixed Deposits Receipts
OwnFDR
FORof Other Banks
Government bonds
Personal Guarantee
Other Securities

b. Unsecured
Total

100

2009
Taka

2008
Taka

7.12 Particulars of loans and Advances:

(i)
(ii)

Loans considered good in respect of which the bank company

is fully secured;
Loans considered good against which the banking company
holds no security other than the debtor's personal guarantee;

25,903,254,700

24,320,600,234

976,575,390

13,109,967,807

25,696,106,679

11,965,614,796

(iii)

Loans considered good secured by the personal undertakings

of one or more parties in addition to the personal guarantee
of the debtors;

(Iv)

Loans adversely classified; provision not maintained thereagainst;

(v)

Loans due by directors or officers of the banking company or

any of these either separately or jointly with any other persons;*

333,877,249

301,522,784

Loans due from companies or firms in which the directors

of the banking company have interests as directors, partners or
managing agents or in case of private companies as members;

676,000

999,000

(vii) Maximum total amount of advances including temporary

advance made at any time during the year to directors or
managers or officers of the banking companies or any of them
either separately or jointly with any other person;

334,553,249

320,586,298

(viii) Maximum total amount of advances including temporary

advances granted during the year to the companies or firms
in which the directors of the banking company have interests
as directors, partners or managing agents or in the case of
private companies as members;

999,000

1,317,000

662,795,719
150,160,034
7,412,423

117,117,000
150,144,910
1,263,778

1,221,379,000

479,191,000

150,160,034

150,144,910

15,124

6,612,114

130,835,007

129,766,814

(vi)

(ix)

Due from banking companies;

(x)

Amount of classified loan on which interest has not been

charged, should be mentioned as follows:
a) Decrease/ increase in provision;
b) Amount of loan written off;
c) Amount realized against loan previously written off;
d) Amount of provision kept against loan classified as
'bad/loss" on the date of preparing the balance sheet;
e) Interest creditable to the Interest Suspense Nc;

(xi)

Cumulative amount of the written off loan;

(xii) Amount written off during the current year;

(xiii) The amount of written off loan for which lawsuit has been filed;

* There is no loans in the name of existing Directors. This amount represents loan to officers of the bank.
7.13 Bills Purchased and Discounted
Payable in Bangladesh
Payable outside Bangladesh

Total

1,413,460,504
152,491,664

1,785,920,996
201,928,428

1,565,952,168

1,987,849A24

723,068,368
638,845,406
82,469,147
121,569,247

667,439,203
806,820,247
472,382,163
41,207,811

-,-- -,-- -, ._-

1,987,849A24

7.13.1 Maturity grouping of bills purchased & discounted

Payable within 1 month
Over 1 month but less than 3 months
Over 3 months but less than 6 months
6 months or more

Total

101

1 ..,... Q<;, 1 lOSt

08 Premises and Fixed Assets

Own Assets
Land
Building
Furniture and Fixture including Office decoration
Office Appliances & EqUipment
Computer & Software
Bank's Vehicle

2009
Taka

2008
Taka

125,670,000
58,758,793
153,443,979
114,798,991
93,541,209
11,025,460

125,670,000
58,758,793
109,834,025
88,215,725
75,933,666
_ _2,300,000 _

557,238,432
Less: Accumulated depreciation

138,253,470

418,984,962
Leased Assets
Furniture and Fixture
Office Appliances & EqUipment
Computer & Software

5,122,050
2,636,908
1,370,619

460,712,209
-

3,651,831

5,477,746

424,462 ,108

Total

5'122'050J
2,636,908

1,3 ~0,6~9

9,129,577
Less: Accumulated depreciation

81,421,731

379,290,478

9,129,577

1,825,915

7,303,662
386,594,140

(Annexure - D may kindly be seen for details)

09 Other Assets
a)

b)
c)
d)

e)

1)
g)
h)
I)

j)

Investment in Shares of subsidiary companies;

1) In Bangladesh
2) Outside Bangladesh
Stationery, stamps, printing materials etc.
Advance rent and advertisement;
Interest accrued on investment but not collected, commission &
brokerage receivable on shares and debenture and
other income receivable; (Note: 9.1)
Security deposit;
Preliminary, formation and organization expenses, renovation I
development expenses and prepaid expenses (Note - 9.2)
Branch adjustments;(Net & Reconciled) (Note - 9.3)
Suspense account; (Note - 9.4)
Silver;
Others (Note - 9.5)

Total
9.1

7,279,155
113,218,907

6,937,386
111,164,916

333,259,801
9,516,356

408,633,050
4,037,529

289,100,819
80,522,984

61,102,710
3,357,736
225,915,148

1,410,305,665

1,385,433,139

2,243,203,687

2,206,581,614

,,I

Interest accrued and other receivable

Amount represents interest receivable with other banks, call loans, interest receivable on loans and advances,
fees receivable, other receivable etc.

9,2

9.3

Amount paid in advance against opening of new branches, various types of insurance premiums, legal expenses,
software maintenance etc, including advance for Head Office Building ofTk. 7.30 cr. as work in progress.

Branch adjustment
Branch adjustment account represents outstanding Inter-Branch and Head Office transactions originated but yet
to be responded at the Balance Sheet date. The balance of unreconciled items has been adjusted I reconciled
subsequently on the date of issue of financial statements.

9A

Suspense account
Amount of Suspense Account represents amounts paid against renovation of different branches and other
advance payments against various contracts.

102

9.5

Others
Advance Tax Paid
Export Development Fund {Net} (Note - 9.5.1)
Cheques in Hand for clearing
Account Receivable Others (Note - 9.5.2)

2009
Taka

2008
Taka
998,843,692
228,270,1 05
46,369,212
111,950,130

1,119,868,908 ]
180,921,120
109,515,637

'-----------'

Total

1,410,305,665

1,385A33,139

9.5.1 The amount of Export Development Fund shows the net balance of EDF receivables from customers and EDF
liabilities to Banglasdesh Bank.

9.5.2 Account Receivable Others

Bangladesh I Paribar Sanchaya Patra
Audit Fees Receivable from Bangladesh Bank against cash incentive
Excise Duty Receivable
Fees Receivable
Receivable due to ATM Settlement Account
Receivables from Western Union Money Transfer
TC Purchased

Total
9.6

10

50,313,243
292,000
20,626,039
788,761
36,488,256
1,007,338

51,479,852
667,000
12,313,269
54,60B
25,553,456

109,515,637

111,950,130

21,881,945

Other Assets amounting to Tk.2,243,203,687 is non income generating assets and classification status of these
Assets is unclassified as per Bangladesh Bank Circular Ref; BRPD- 14 dated 25 June 2003.

Non-Banking Assets
Land
Building
Machinery

,
_
_
n
-~

3_1,200'000
4,200,000
7,000,000

42AOO,000

Dhaka Bank received a decree from Court regarding right and title of mortgaged land, building and ownership of
machineries of a default borrower, which was mutated in the name of Dhaka Bank limited. The value of the properties
was incorporated in the books of accounts on the basis of third party valuation report provided by a surveyor company.
The property has already sold in 2009 as per decision of the Executive Committee of the Board of Directors of the Bank.

11

Borrowing From Other Banks Including Financial Institutions & Agents

In Bangladesh:
Pubali Bank Limited
BASICBank Limited
Bank Alfalah Limited
Dutch Bangia Bank limited
One Bank Limited
Standard Bank Limited
Bank Alfalah
National Bank Limited
Mutual Trust Bank Limited
Trust Bank Limited
Eastern Bank Limited
Habib Bank Limited
Infrastructure Development Company Limited
Hongkong & Shanghai Banking Corporation Limited

Outside Bangladesh:
Repo Agreement with Banks {Note 11.1}
Woor! Bank limited
Sonali Bank Limited

Refinance from Bangladesh Bank

Islami Investment Bond's Fund from Bangladesh Bank
Total

103

200,000,000
50,000,000
150,000,000
200,000,000
50,000,000
20,000,000
100,000,000
100,000,000
20,000,000
100,000,000
100,000,000

170,000,000
70,000,000
30,000,000
50,000,000

45,000,000

420,000,000

1,035,000,000

- J I'----

~]

-_ I

40,000,000
180,000,000 _
220,000,000

1,169,759,326 ] ~,567,~
1,900,000,000
3,489,759,326

J[L6oO:000;000~
3,614,567,300

11.1 REPOand Reverse REPOAgrument

Repo agreement as a borrower
liabilities to Banks
liabilities to customers

2009

2008

Taka

Taka

~ ] L220~000~0~
220,000,000

Reverse Repo Agreement as a lender

Claims on Banks
Claims on customers

~ J1_-------'

11.2 Maturity grouping borrowings from other banks,

financial institutions & agents
Repayable on demand;
Repayable within 1 month;
Over 1 month but within 6 months;
Over 6 months but within 1 year;
Over 1 year but within 5 years;
Over 5 years

Total

420,000,000

1,255,000,000
53,340,000
320,600,500
1,810,602,978
175,023,822

2,592,500,000
73,940,000
296,337,879
106,981,447

3,489,759,326

3,614,567,300

3,009,457,286
299,510,543
566,713,260
593,789,424
140,207,324
943,091,444
5,552,769,281

2,867,759,318
234,717,050
902,812,979
649,029,364
231,021 ,424
_ 1,04 1,146,024 _
5,926,486,159

12 Deposits & Other Accounts

12.1 Non-Interest bearing Accounts
12.1.1 Current and Other Accounts
Current Account
Foreign Currency Deposits
Margin under Letter of Credit
Margin under Letter of Guarantee
Deposits Awaiting Disposal
Sundry Deposit

12.1.2 BillsPayable
Pay Order
Demand Draft

Sub-Total

869,573, 005
1,281,882,677
2,151,455,682
7,7~,224,963

1
_

636,607,762
1,486,979,102
2,123,586,864

~,050,073,023

12.2 Intf!fl!st bf!aring Account

12.2.1 Savings Deposits
Savings Account
Mudaraba Savings Accounts

5,485,957,321 ]
395,243,949
5,881,201,270

3,299,902,307
1,715,332,861
5,015,235,168

12.2.2 Tenn Deposits

Short Term Deposits
Fixed Deposits
Deposit Pension Scheme
Gift Cheque
Marriage Deposit Scheme
Non Resident Foreign Currency Deposit (NFCD)

3,318,914,570
41,762,786,449
2,209,301,152
5,352,539
4,816,100
31,776,980
47,332,947,790

2,682,922,934
39,719,888,561
1,481,235,535
3,800,029
6,656,389
26,113,006
43,920,616,454

Sub-Total

53,214,149,060

48,935,851,622

Total

60,918,374,023

56,985,924,645

104

2009
Taka

2008
Taka

12.3 Maturity grouping of deposits and other accounts

Other than Bank Deposits:

Repayable on demand;
Repayable within 1 month;
Over 1 month but within 6 months;
Over 6 months but within 1 year;
Over 1 year but within 5 years;

Over 5 years but within 1 years;

Sub-total:

7,709,577,502
9,034,603,241

8,053,873,052
6,479,678,836

19,818,252,569
15,241,803,282
1,443,290,942
4,770,258,487

13,649,673,675
18,114,803,989
1,465,267,259
3,671,811,920

58,017,786,023

51A35,108,731

250,588,000
2,650,000,000

1,610,815,914
3,940,000,000

2,900,588,000

5,550,815,914

60,918,374,023

56,985,924,645

Inter-bank deposits:

Repayable on demand;
Repayable within 1 month;
Over 1 month but within 6 months;
Over 6 months but within 1 year;
Over 1 year but within 5 years;
Over 5 years but within 10 years;
Sub-total:
Total
12.4 Sector wise Deposits

Government
Public Sector
Private Sector
Total

13

2,218,010,079
2,909,362,000
51,858,552,566

60,918,374,023

56,985,924,645

2,351,023,520
2,112,831,000
208,086,000
619,312,149
12,356,314
11,250,000

2,055,880,332
1,445,460,000
208,086,000
310,071,018
21,978,124
11,250,000

2,191,459,506
30,044,476
44,969,188
805,609,068
1,178,808
5,477,746

1,783,413,612
45,922,834
25,355,344
578,538,285
1,178,808
42,400,000
7,303,662

8,393,597,775

6,536,838,019

Other Liabilities

Accrued Interest
Provision on loans and advances (Note - 13.1)
Provision for Off Balance Sheet Exposure (Note - 36)
Interest Suspense Account (Note - 13.2)
Provision against Expenses (Note - 13.3)
Provision for decrease in value of investments (Note 37)
Provision for Other Assets (Note - 13.4)
Provision for Dhaka Bank Foundation (Note 38)
Provision for Income Tax (Note - 13.5)
Tax deducted at source & payable
Excise Duty Payable
Other Account Payable (Note - 13.6)
Exchange Equalization Account
Reserve for Non-Banking Assets
Obligation under finance lease
Total

105

2,555,653,077
3,922,377,203
54,440,343,743

2009
Taka

2008
Taka

13.1 Provision for loans and advances:

I)

The Movement In specific provision for Bad and Doubtful Debts:.

Provision held at the beginning of the year
Fully provided debt written off
(-)
Recoveries of amounts previously written off
(+)
Specific provision for the year
(+)
Provision no longer required due to recoveries
(-)
Provision held at the end of the year

ii) The movement in general provision on unclassified loans:

Provision held at the beginning of the year
Additional provision for the year

825,217,000
(7,527,943)
7,412,423
1,031,546,214
(368,634,975)

439,468,000
(6,814,182)
6,384,422
395,749,000
(9,570,240}

1,488,012,719

825,217,000

620,243,000
4,575,281

464,854,243
155,388,757
'---------'

624,818,281 _ _

Provision held atthe end ofthe year

2,112,831,000

Total

620,243,000
1,445,460,000

13.2 Interest SuspenseAccount

Balance at the beginning of the year
Amount transferred to "Interest Suspense" Nc during the year
Amount recovered in "Interest Suspense" Nc during the year
Amount written off during the year (-)

(+)
(-)

0 18
310,071,
367,378,112
(57,207,981)
(929,000)

202,038,272
256,960,843
(142,113,915)
(6,814,182)

'---------'

Balance at the end of the year

619,312,149

310,071,018

13.3 Provision against Expenses

Provision
Provision
Provision
Provision

for Audit & Rating Fees

for Superannuation Fund
for Gratuity Expenses *
for House Rent, Telephone, Utility, lFA, RiskPremium etc.

2,~~:~~~ 1u'~:::: ~ J

8,898,314

10,000,000

1~;~~fj~14

21,978,124

8,~,124

*Banks gratuity policy as approved by the National Board of Revenue with effect from 1 January 2006, requires
gradual provision equivalent to two month's basic salary for each employee for every completed years of service,
applicable only for employees completing minimum five years of continuous service.

13.4 Provision for Other Assets

No provision have been kept against Other Assets as classification status is unclassified as per Bangladesh Bank
Circular Ref; BRPD- 14 dated 25 June 2003.

13.5 Provision for Income Tax

Advance Tax
Balance of Advance Income Tax on 1 January
Paid during the year
Settlement for previous years
Provision
Balance of provision including Deferred Tax on 1 January
Provision made during the year:
Current Tax
Deferred Tax (Note - 13.5.1)
Settlement for previous years tax liability

998,843,692
889,049,549
(768,024,333)

745,567,623
708,933,737
(455,657,668)

1,119,868,908

998,843,692

1,783,413,612

1,213,938,477

1,176,070,227

1,025,132,803

(768,024,333)

(455,657,668)

2,191,459,506

1,783,413,612

106

2009

2008

Taka

Taka

Provision for taxation has been made on accounting profit considering taxable allowances f disallowances as per
Income Tax Ordinance 1984 amounting to Tk.1,189,OOO,000asCurrent Tax Provision for the year 2009 (Assessment
Year 2010-201 1).This provision for corporate tax has been made as per estimate of the bank's tax consu ltants.
The tax provision is found adequate.
Assessment for the years from 1995 to 2006 have since been completed and Bank got Tax Clearence Certificate upto
2006 (Assesment year 2007-2008) from Tax Authority. The Tax Return ofthe Bank for 2008 (Assessment year 2009-2010)
has been submitted to Tax Authority on August 31,2009. The Tax Return of the Bank for 2007 is under assessment.

13.5.1 Deferred Tax

Deferred Tax Assets

Opening Balance as on January 1, 2009
Add: Addition during the year

ClosIng Balance as on December 31, 2009

Deferred Tax LIability
Opening Balance as on January 1, 2009
Add: Addition during the year

Closing Balance as on December 31,2009

Net Deferred Tax Liability

79,549.~ ]

79,549.00
1

79,549.00

79,549.00

79,549.00

79,549.00

The bank has calculated deferred tax as per BAS-12 and found no deffer tax asset / liability for the current year.

13.6 Other Account Payable

3 month and 5 years BSP/PSP
Application, Processing, Membership & Utilisation Fee
Adjusting Account Credit
Export Proceeds Suspense
Import Payment Suspense
ATM Settlement Account

14

47,695,000
211,263
12,996,175
69,768,739
666,295,663
8,642,228

17,574,969
426,859
14,409,538
215,699,070
325,447,669
4,980,180

805,609,068

578,538,285

6,000,000,000

6,000,000,000

Capital
14.1 Authorized
60,000,000 ordinary shares ofTk.100 each

The Bank increased its authorized capital from Tk.2,650 million to Tk.6,000 million by passing a special resolution
in the bank's 3rd Extra Ordinary General Meeting held on to September 2007.

14.2 Issued, subscribed and paid up

The issued, subscribed and paid up capital of the bank as follows:

19,342,529 ordinary shares ( 2008:15,474,023 ordinary shares)
ofTk.1 00 each
1,934,253 ordinary shares ( 2008: 3,868,505 ordinary shares)
ofTk.100 each issued as bonus shares

Total

1,934,252,875

1,547,402,300

193,425,288

386,850,575

2,127,678,163

1,934,252,&75

Bank has increased its paid up capital by Issuance of 10:1 Bonus share on 09 April 2009.

107

14.3 Initial Public Offer OPO)

Out of the total issued, subscribed and paid up capital of the bank 1,320,000 ordinary shares ofTk.l 00 each
amounting to Tk.132,000,000was raised through public offering of shares held in 24 February 2000.
14A Rightlssue

Bank has increased its paid up capital twice by issuance of 2:1 right share at par on 15 April 2003 and
30 November 2005 respectively.
14.5 Percentage of Shareholdings at 31 Dec:ember 2009

Particulars
1.

%of
holdings

Local Ownership
Government
Banking Companies
Financial Institutions
Sponsors
General Public
Mutual Funds
Unit Funds
ICMl NC, Chittagong
ICB Account Holders
ICB
ICB Unit Fund
ICB Asset Managemet Company limited
Non-Resident Bangladeshi (NRB)
ICB Mutual Fund
ICB Investor's AlC,Bogra
SubTotal

2.

Foreign Ownership
Financial Company
Individual Investors

2009
Value of
Shares (Tk.)

2008

%of
holdings

Value of
Shares (Tk.)

12.447
3.529
56.000
22.670
0.869
0.412
0.043
0.214
0.266

264,824,400
75,078,300
1,191,560,800
482,343,300
18,489,900
8,761,400
907,800
4,548,500
5,648,100

6.534
6.558
57.558
16.648

126,374,000
126,843,100
1,113,318,600
322,018,075

3.276
0.029
0.003

69,696,200
610,000
59,500

0.453
0.253
0.151
0.009
0.063
0.210
0.004

8,754,700
4,895,300
2,926,800
180,200
1,209,800
4,059,000
79,900

99.76

2,122,528,200

88.44

1,71 0,659,475

0.242

5,150,000

11.405
0.155

220,593,400
3,000,000

SubTotal

0.24

5,150,000

11.56

223,593,400

Total

100.00

2,127,678,200

100.00

1,934,252,875

14.6 Classification of shareholders by holding as on 31 Dec:ember 2009

Holdings
1 to sao shares
501 to 5,000 shares
5,001 to 10,000 shares
10,001 to 20,000 shares
20,001 to 30,000 shares
30,001 to 40,000 shares
40,001 to 50,000 shares
5~001to10~000shares

100,001 to 1,000,000 shares

1000001 & above shares
Total

No. of
Share
9,498
847
55
29
10
13
12
20
45
1

Number of
Shares
812,279
1,152,348
403,575
437,275
262,547
449,294
551,119
1,501,432
14,074,527
1,632,386

%of
Holdings
3.82
5.42
1.90
2.06
1.23
2.11
2.59
7.06
66.15
7.67

10,530

21,276,782

100.00

108

14.7 Name of Directors and their shoreholdings

2009

SL

Name of Directors

StatU5

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Mr.Altaf Hossaln Sarker

Mr.Mohammad Hanif
Mr.Abdul Hal Sarker
Mrs. Afroza Abbas
Mr.Khondoker Monir Uddin
Mr.AminulIslam
Mr.Md.Amiruliah
Mr. Reshadur Rahman
Mr.Abdullah AIAhsan
Mr. Khandaker Mohammad Shahjahan
Mr.M.N.H Bulu
Mr.Tahidul Hossain Chowdhury
Mrs. Kamala Khatun
Mr.Jashim Uddin
Mr. Khondoker Jamil Uddin
Mr.AbdulWahed
Mr.Mohammad Ali Sarker
Mrs. Rakhi Das Gupta
Mr.Suez Islam
Mrs. Rokshana Zaman
Mr.G.M. Shameem Hussain

Chairman
Vice Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director

Total

633,377
648,104
458,980
653,028
611,041
264,585
442,293
688,894
406,660
449,842
555,429
321,839
5,000
460,198
504,080
231,365
292,646
154,922
76,691
120,549
73,047
8,052,570

14.8 Risk-weighted assets and Capital ratios as defined by

2008

Value of Shires

No ofShare5

63,337,700
64,810,400
45,898,000
65,302,800
61,104,100
2~45a500

44,229,300
68,889,400
40,666,000
44,984,200
55,542,900
32,183,900
500,000
46,019,800
50,408,000
23,136,500
29,264,600
15,492,200
7,669,100
12,054,900
7,304,700
805,257,000

Noof Shue5

ValueofShare5

575,798
589,186
417,255
1,306,058
555,492
240,532
402,085
626,268
369,691
408,948
504~36

57,579,800
58,918,600
41,725,500
130,605,800
55,549,200
24,053,200
40,208,500
62,626,800
36,969,100
40,894,800
50,493~00

292,581
441,440
418,362
512,800
210,332
266,042
51,293
42,250
109,590
66,407
8A07,346

29,258,100
44,144,000
41,836,200
51,280,000
21,033,200
26,604,200
5,129,300
4,225,000
10,959,000
6,640,700
840,734,600

2009

2008

Taka

Taka

the Basel Capital Accord

Core Capital (Tier - 1 )
Paid up Capital
Statutory Reserve
Other Reserve
Surplus in Profit and LossAccount

1,934,252,875
1,543,198,507
21,016,806
465,985,098

2,127,678,'6' 1
1,970,287,116
3,438,685
532,284,207

Total

------

4,633,688,171

Suplementary Capital (Tier - 2)

General Provision
Provision for Off BalanceSheet Exposure
Revaluation Reserve for HTM & HFTSecurities (50%)
Exchange Equalization Account

624,818,281
208,086,000
165,996,900
1,178,808

3,964A53,286

620,243,000
208,086,000
14,251,155
1,178,808

Total

1,000,079,989

843,758,963

A.Total Eligible Capital

5,633,768,159

4,808,212,249

B. Risk Weighted Assets

Balancesheet business
00- Balance sheet business

46,976,800,700
2,839,030,550

Total Risk-weighted Assets

C. Required Capital on Risk Weighted Assets

37,836,300,113
2,762,189,061

49,815,831,250

40,598,489,174

4,981,583,125

4,059,848,917

652,185,034

748,363,332

(10% on Total RiskWeighted Assets)

D. Capital Surplus I (Shortfall) [A-BI

Total Capital Ratio (%)
Capital Requirement
Core Capital (Tler-l)
Supplementary Capital (Tier - II)

109

11.31

Required(%1
5.00

11.84

Held(%) Required{%l
9.30
2.01

5.00

Held(%1
9.77
2.08

15

Statutory Reserve
Opening balance at the beginning of the year
Add: Addition during the year from net profit
Closing balance at the end of the year

2009
Taka
1,543,198,507
427,088,609

2008
Taka

1L
1

1,970,287,116

1,170,419,032
372,779,475

1,543,198,507

As per Section 24 of Bank Companies Act 1991,20% of pre tax profit has been transferred to Statutory Reserve Account.

16

Other Reserve
Opening balance at the beginning of the year
Add: Transferred during the year from Profit & Loss Account
Less: Paid during the year for issuance of Bonus Share
Closing balance at the end of the year

10,266,672
10,750,134

21,016,806
{17 t:S78,121)

'-------

3,438,685

21,016,806

As per Rule,Bonus share/ cash dividend may be issued out of surplus of the profit of the year.lfthere is any shortfall, that may be
covered from Other Reserve Account as per approval of the Board of Directors of the bank.

16 (a) Revaluation Reserveon Investment

Revaluation Reservefor HTM securities
Opening balance
Add: Addition during the year
Less: Adjustment during the year
Closing balance at the end ofthe year

28,502,309
279,178,338
(l8,568,671)

289,111,976

28,502,309

28,502,309

---

Revaluation Reservefor HFTSecurities

Opening balance
Add: Addition during the year
Less: Adjustment during the year
Closing balance at the end ofthe year

6,556,461 ] [
264,462,436
(228,137,074)

6,556,461
_ -_

42,881,823

6,556,461

331,993,799

35,058,770

Interest income of HTMand HFTsecurities transferred to Revaluation Reserve Account as per BangladeshBank DOSCircular No. 05
dated 26.05.2008of which 50% of revaluation reserve for HTM &HIT wiII be treated as Supplementary Capital.

17

Profit & loss Account

Income
Interest, discount and similar income
Dividend Income
Fee, Commission and Brokerage
Gains less Losses arising from dealing securities
Gains less Losses arising from investment securities
Gains less Losses arising from dealing in foreign currencies
Income from non-banking assets
Other operating income
Profit less Losses on interest rate changes

7,466,348,667
2,004,272
872,351,110

7,171,329,773
882,400
926,241,194

930,994,958
188,975,559

664,676,630
151,217,206

180,649,556

185,714,305

9,641,324,122

9,100,061,508

5,406,545,979
517,422
1,061,383,056
299,771,898
62,778,905

5,213,697,657
2,002,962
976,836,071
326,783,458
47,416,007

6,830,997,260

6,566,736,155

2,810,326,862

2,533,325,353

Expenses
Interest, fee and commission
Losses on loans and advances
Administrative expenses
Other operating expenses
Depreciation on banking assets

Profit before tax & provision

110

2009
Taka

2008
Taka

17.1 Profit & loss Account Surplus

Operating income as on 31 December
less: Provision for loans during the year
Provision for Off Balance Sheet Item
Provision for diminution in value of Investment
Provision for Dhaka Bank Foundation
Provision for Income Tax
Statutory Reserve (20% of pre tax profit)

Net Profit

18

2,810,326,862
674,883,819

2,533,325,353
545,948,977
119,479,000
4,000,000

1,176,070,227
427,088,609

1,025,132,803
372,779,475

2,278,042,655

2,067,340,255

532,284,207

465,985,098

6,478,544,661

8,011,876,905

1,739,395,646
4,158,350,793
690,987,948

122,769,892
4,691,048,585
990,797,103

182,956,136
650,175,285

290,872,201
475A43,024

7,421,865,808

6,570,930,805

1,452,689,641
2,781,820,214
329,673,781
2,033,529,302
18,718,701

596,234,043
3,390,327,809
273,263,684
1,965,961,504
603

6,616,431,639

6,225,787,643

Contingent Liabilities
Acceptance & Endorsement
Letters of Credit
Usance/Defer UC
SightUC
UC Back to Back
Foreign & Inland
BD-Sight (EDF)
B/B - Local

Letters of Guarantee (Note - 18.1)

Bid Bond
Performance Bond
Counter Guarantee
Other Guarantee
Shipping Guarantee

Bills for Collection

Local Bills for Collection
Foreign Bills for Collection

Other Contingent Liabilities

T.C.- Stock
BSP/PSP/PS
tea Unit Certificate
FWD Exchange Sold
US Investment & Premium Bond

Total

2,994,403,458 ]
1,042,385,082

3,230,961,688
1,406,847,365

'------'

4,036,788,540

4,637,809,053

974,263
444,605,000
52,940,600
2,105
7,479,000

18,618,041
435,815,000
51,678,800
1,980
8,147,900

506,000,968

514,261,721

2~059,631,616

2~960,666,127

943,079,625

84,305,933

5,673,352,014

6,141,481,710

6,616,431,639

6,225,787,643

18.1 letters of Guarantee

Money for which the Bank is contingently liable in respect of
guarantees given favouring:
Directors
Government
Bank and other financial institutions
Others

Total

111

I
19

2009

2008

Taka

Taka

Litigation pending of bank

SL# Branch Name
Local Office
Islampur Branch
02
03
Imamganj Branch
Bangshal Branch
04
05
Banan! Branch
06
AminBazar
01

661,479,000
1,039,000
6,874,000

502,458,000
1,039,000
1,398,000

25,469,000
92,691,000

7,318,000
46,915,000
11,583,000

07
08

Khatunganj Branch
Agrabad Branch

142,043,000
147,882,000

09

Gulshan Branch

145,793,000
2,925,000

10

Uttara Branch

Total

1,226,195,000

147,151,000

717,862,000

In some cases,the bank obtained preliminary / final decree against pending litigation. As per Artha Rin Adalat (Money
Loan Court) Ain 2003, legal procedure yet to be completed for final disposal.

20

Interest I Profit Income

Term Loan
Overdrafts

Demand Loan
2,419,369,397
2,062,641,911

46,496
2,257,619,573
1,798,339,123

Loan against Imported Merchandise / Murabaha

22,998,483
1,011,095,040

122,138,034
1,060,039,489

1,401,312
577,081,507
248,803,626

1,402,063
568,230,486
269,964,328

Loan against Trust Receipt

Packing Credits
Cash Credits /8ai-Muajjal
Payment against Documents
House Building Loan
Transport Loan
Syndicate Loan

105,916,011
56,476,709

86,615,563
48,190,782

186,065,998

170,593,281

Hire Purchase
Lease Rental!lzara

5,209,637
188,549,350

4,359,189
172,919,206

Credit Card

22,049,378

16,789,285

6,577,246,898

Accounts with Foreign Banks

6,907,658,359
546,222,443
12,467,865

Total

7,466,348,667

7,171,329,773

208,135,734

254,850,328

127,408,200
4,353,588,156

149,609,231
4,163,543,436

Deposits under Scheme

556,769,105

387,439,525

Call Borrowing & Fund Placement

Repurchase Agreement (REPO)

101,882,382

199,838,208

1,227,404

12,532,692
2,144,494
43,739,743

Total Interest I profit & Rental Income on loans & advances

Call Lending and Fund Placement with banks

21

556,979,750
37,103,125

Interest I Profit Paid On Deposits & Borrowings

Savings Account including Mudaraba
Short Term Deposits
Term Deposits

Overseas Accounts charges

Others (Note-21.1)

2,476,415
55,058,583

5,406,545,979

'------- - - -

5,213,697,657

112

2009

2008

Taka

Taka

21.1 Others
Interest paid on NFCD
Interest paid against Refinance from Bangladesh Bank
Interest paid on Gift Cheque
Interest paid on Excel Account
Interest on Smart Plant (Deposit)
Treasury Bond Premium

22

281,794
25,654,180

88,747

65,530

840,629

3,126,789

1,234,744

1,166,515

13,730,503

13,444,935

55,058,583

43,739,743

Income from Investment

Interest on Treasury bills I bonds
Interest on Debentures
Dividend on Shares

23

167,881
38,996,079

917,795,651
355,556

457,500

2,004,272

882,400

920,155A79

664A73,023

268,223,308

346,186,189

96,070,057

118,375,774

Commission I fees, Exchange Eamings & Brokerage

Commission on
Commission on

UC
UG

Commission on Remmittance I Bills

Processing Fee Consumer Loan
Other Commission I Fees

1,750,521

937,322

33,853,175

59,758,255

219,396,940

241,052,607

6,339,313

4,381,187

Exchange gain including gain from foreign currency dealings

188,975,559

151,217,206

Brokerage (Dhaka Stock Exchange & Chittagong Stock Exchange)

246,717,796

155,549,860

, ..n';1.::l2';.NiQ

1,077A58,400

Commission & Fee on Credit card

.,- - .,-- -.- ------z

24

663,133,123

Other Operating Income

7,476,515

7,169,709

Postage charge recoveries

19,019,317

22,683,177

Incidental charges

81,145,012

79,347,932

Other Income on Credit Card

Supervision & monitoring charges of lease

Swift charge recoveries
Locker rent

2,499,875

3,730,571

66,089,443

67,706,296

2,837,050

2,342,200

Godown charges recovery

483,235

817,436

Recovery of loan previously written off

914,709

1,263,778

12,843,751

1,086,007

184,400

653,206

193,493,307

186,800,312

Sale proceeds of Shares

83,478,285

1,291,007

Less:Cost of Shares

70,634,534

205,000

12,843,751

1,086,007

Capital gain on sale of Shares (Note - 24.1)

Profit from sale of fixed assets

24.1 Profit on sale of Shares

113

Each Director is paid for Tk.3,400.00 net of VAT per meeting per atttendence from May 16,2006 as per Bangladesh Bank's
BRPDCircular # 04 dated May 9, 2006. There was no other financial benefits provided to the directors of the bank.

114

2009
Taka
32

Charges on Loan Losses

2008
Taka

As there is no realistic prospect to recovery, an amount of Tk, 517,422.00 has been charged to expense account to adjust
classified retail loans as per decision of Executive Committee of the Board of Directors.

33

Depreciation of Bank's Assets

Depredation on own Assets
land
Building
Furniture & Fixture
Office Appliance & Equipment
Computer & Software
Motor Vehicle
Depreciation on Leased Assets
Furniture & Fixture
Office Appliance & Equipment
Computer & Software

Total
34

60,952,990

45,742,251

1,024,410
527,382
274,123

939,043
483,433
251,280

1,.825,915

1,673,756

62,778,905

47,416,007

10,763,872
12,972,636
406,137
3,427,548
8,062,171

9,278,443
9,905,632
359,015
2,724,371
10,118,324

35,632,364

32,385,785

2,500,000
63,469,398
11,586,024
15,902,222
4,616,330
15,892,803
8,590,868
5,822,131
143,188,468
419,990
2,815,741
1,199,825
1,777,921
224,790
884,485
1,401,394
7,832,820
1,389,444
6,912,733
2,106,776
1,237,735

2,500,000
56,674,817
7,311,787
14,789,855
3,336,344
15,043,371
8,671,752
12,364,264
165,460,886
1,766,420
5,360,429
1,178,006
1,476,297
243,775
341,198
1,230,747
16,063,576
1,285,886
8,312,840
2,216,071
1,155,137

299,771,898

326,783,458

Other Expenses
Contribution to Superannuation Fund
Contractual Service Charge
Petrol, Oil and Lubricants (Vehicle & Generator)
Entertainment: canteen & other
AGM Expenses
Donation and Subscription
Travelling and Conveyance
lease rent for Vehicle
lease rent for Fixed Assets
Branch Opening Expenses
Training Expenses
Books and Papers
WASA Charges
Staff Uniform
Vehicle Registration Charges
Potted Plants
Business Development & Promotion
Reuters Charges
Fee & expenses for Credit Card
ATM Network Service Charges
Other expenses

115

1,468,970
10,983,403
17,643,145
15,186,733
460,000

Repair & Maintenance of Bank's Assets

Office Premises
Office Equipment
Office Furniture
Motor Vehicle
Computer & Office Appliances

35

1,469,000
15,313,367
23,208,639
18,756,892
2,205,092

2009
Taka
36

2008
Taka

Provision for Loans & Advances

On classified loans & advances as per Bangladesh Bank circular
On unclassified loans & advances

670,308,538 ]
4,575,281

l...-

674,883,819
37

390,560,220
155,388,757
-'
545,948,977

Provision for Off Balance Sheet Exposures

-] I

Provision charged during the year

119,479,000

Bank has made a provision ofTk. 208,086,000 @ 1.00% on off balance sheet exposure (Le. Acceptence & Endorsement,
Letter of Credit & Letter of Guarantee) as per BRPDCircular number 10 dated 18.09.2007 by the year 2008. As the
provision amount is adequate for the current years Off balance sheet exposure, so no provision has been made from
current years profit. The total amount of provision ofTk. 208,086,000 will be treated as Supplementary Capital of the Bank.
38

Provision against Dec:reasein Value of Investment

Dealing Securities
Quoted
Unquoted
Investment securities
Quoted
Opening balance at the beginning of the year
Addition during the year
Closing balance at the end of the year
Unquoted

~ ] I11

,250,OO~ ]

11,250,000
11,250,000

Total

7,250,000
4,000,000

11,250,000

Cost price of investment in shares represents the book value as on 31.12.2009 being ordinary shares of different
companies purchased from primary and secondary market. No provision is required from current years profit as the
esisting provision of Tk.11,250,000 is significantly in excess against current year's requirement.
39

Provision for Dhaka Bank foundation

Provision for Dhaka Bank Foundation has been made @ 2% on pre tax profit (i.e. profit after provision for loans and
other provisions) every year. No provision has been made from previous year as well as current year's profit as per
decesion of the Executive Committee of the Board of Directors of the bank (dated 27.01.2009).

40

Earnings Per Share (EPSj

Bonus Issue:
Net Profit after Tax
Number of ordinary shares outstanding
Earnings per share (EPS)

959,372,816
21,276,782

838,764,573
21,276,782

45.09

39.42

Earnings Per Share has been calculated in accordance with BAS - 33 "Earning Per Share (EPS)". Previous year's figures
have been adjusted for the issue of 1,934,253 Bonus Shares (for 2008) during the year.
41

Receipts from Other Operating Activities

Exchange earnings
Brokerage
Other Operating Income
Total

629,491
246,717,796
192,394,198

1,781,985
155,549,860
184,883,328

439,741,485

342,215.173

116

42

2008

Taka

Taka

Payments for Other Operating Activities

Rent, Taxes, Insurance, Lighting etc.
Chief executive's salary & allowances
Directors' fees & Meeting expenses
Repair of bank's assets
Other expenses
Charges on loan losses

Total

43

2009

165,779,070
7,212,500
2,131,656
35,632,364
299,771,898
517,422

134,696,933
7,615,322
1,634,674
32,385,785
326,783,458
2,002,962

511,044,910

505,119,134

7,279,155
113,218,907
9,516,356

6,937,386
111,164,916
4,037,529

289,100,819
80,522,984
290,436,757

61,102,710
3,357,736
225,915,148
386,589,447

790,074,978

799,104,872

9,029,894

(280,760,555)

12,356,314
619,312,149
805,609,068
1,178,808
5,477,746

21,978,124
310,071,018
578,538,285
1,178,808
7,303,662

1,443,934,085

919,069,897

(7,512,819)

30,732,800
(4,811,220)

517,351,369

(389,145,095)

Other Assets
Stationery, stamps, printing materials etc.
Advance rent and advertisement;
Security deposit;
Preliminary, formation and organization expenses, renovation I
development expenses and prepaid expenses;
Branch adjustments;
Suspense account;
Other assets

(Increase) I decrease during the year

44 Other Liabilities
Provision against Expenses
Interest Suspense Account
Other Account Payable
Exchange Equalization Account
Obligation under finance lease

Total
Provision of DBL Foundation Trf STD Account
Adjustment of Classified Loan from Provision

Increase I (decrease) during the year

117

2009

Particul ars

Currency
nil me

Amount

InP(

Conversion rale
per unit Fe

Amount

lnaDT

InBOT

0.00

0.00

Standard Chartered, New Yerk

USD

5,439,507.51

69 ,Z5

376,685,895

Mashreq Bank.New Yo rk

1,710,082,42

69,25

118,423,208

HSBC,. New York

USD
USD

1,089,070.90

69,25

75,418,160

ern Bank NA, New York

U5D

1,149,268.89

69.25

79,586,871

Commerz Bank Frankfurt

Habib American Bank

USD

154,433.63

69 ,Z5

10,694,529

69.05

1.508,984

745,722.05

69,25

51,641,252

21,854

USD

781,424

53,957,352

l
l

694.909

69.05

47,983.479

3,696.720

69.05

255,258,533

572,369

69.05

39,522,066

816,709

69.05

56,393,741

1,913,610

69.05

132.134,757

USD

428,788.76

69,25

29,693,622

181,012

69.05
69.05

America n ExpressBank.Kolkata

ACUD

71,305.77

69,25

4,937,925

63,750

69.05

4,401,951

Standard Chartered, Mumbal

ACUD

898,780.90

69,25

62,240,577

13,032

69.05

899,838

SonaIi Ba n II. Kolkata

ACUD

9,494.58

69,25

657.500

3,255

69.05

224.729

AB Bank Mumbai
Nepa[ Bangladesh Ba nk

ACUD

74,076.03

5,129,765

330,642

69.05

22,830,836

ACUD

21,241.90

69,25
69,25

1,471,002

49.930

69.05

3,447,660

Sampath Bank, Srilanka

ACUD

172,553.88

69 ,Z5

11,949,356

2,340

69.05

161,576

8hutan Nationa I 8ank

ACUD

14,281.17

69 ,Z5

988,971

14,281

69.05

986,115

8ank of Bhutan

ACUD

5,993.38

69,25

415,042

17.915

69.05

1,237,002

Banca Nazlonale Del Lavoro

24,079.71

69,25

1,667,520

141,204

69.05

9,750,151

cm Bank NA, Mum ba[

USD
ACUD

9,5B1.56

69,25

663,523

7,442

69.05

513,840

ICICI Bank Limited, India

ACUD

299,637.41

69,25

20,749,891

216,680

69.05

14.961,764

65.2594

CHF

65,572.41

66.7146

4,374,637

22,589

Standard Chartered Bank,UK

EURO

250,317.83

99,11

24,808,124

928.933

Commerz 8ank, Frankfurt

EURO

142,095,18

99,11

14,082,556

America n Expreo;s Sank,GMBW,Frankfurt

EURO

52,130.35

99,11

5,166,457

Bank NazionaI Del ItaIy

EURO

10,292.41

99,11

1,020,045

99,11

14,906,163

Unicredit S,P.A. Mi lano

EURO

150,405.50

Commo nwealt h Sank of Australia, Sydney

AUD

17,887.66

Standard Chartered Bank.Japan

JPY

1,981,174.00

61.7730

1,104,974

0.7518

1,489,447

1.474.122

96.39

89,539,863

35.556

96.39

3,427,255

2,089

96.39

201,320

39,622
-

96.39
-

3.819,208
-

10.222
3,303.178

47.4175
0.7624

484.722
2,518,343
4,883,753

Standard Charter!>d Londo n

GBP

178,936.88

110.0578

19,693,399

99.9434

15,424.73

66.2098

1,021,268

48,865

CAD

28,445

56.6075

1.610,204

Habib Metro politan Sank Ltd. Karachi

USD

100,522.11

69 ,Z5

6,961,156

(82,065)

69.05

(5.666,596)

12,498,907

HSBC, Canada

947,642,t133

CO

Amount

USD

Unio n Bank of Switzerland

...

Conversion rah!
pet un/t FC

American ExpressBank.New Yo rk

Wachovia Bank NA, New York

->

20QIJ

Amount
In PC

760.96SA73

As per Bangladesh Bank Circular ND. FEPO(FEMOl!0112005-677 dated 13th September 2005, the books of accounts of Nostro account are reconciled and th ere exist no
un-reconclled entries that may affect financial statements significantiy,

......

\0

In...e stmentln Shares as at 31 Decem ber 2009

51

Nam.. ofth.. Company

no

Typ".of
Shar...

Fac.. Valu ..

No.of
Sharfl,

Cost Price

A..." 'a9'!
Cost

Quoted Rat..
ptII'Sharaa.
on 30.12.2009

TotalMarlcflt
Valuflat
30.12.2001

Quoted
1

Eastern Bank Limited

100

82,840

34,423,830

415 .546

644.25

53,369,670

ICBAMCL 1st Mutual Fund

100

23,900

2,390.000

100.000

541.75

12,947,825

Lafarge Surma (em ent Limired

lOa

13,100

6,970,984

532.136

505.00

6,615,500

Mereanti Ie Ba nk Limited

lOa

16,376

1,638,296

100.043

395,00

BeKimoo PharrnaceuticaIs Limited

100

1,000,000

100,000,000

100.000

6,468520
100,000,000

145,423,110

179.401.515

4,000,000

4,000,000

149,42],110

18].401,515

Unquoted

CenITal Depos ito ry Bangladesh Limited

Total

Detail of informlltlon on i>dVlInceS more 'hlln 15% of blink's 'otlll ClIpitlll (funded Br non-funded):
Ou~ndlng liS

51
no

Rem.rks
Funded

Non Funded

Toul

Meghna Group

570.007,692

1,055,635,551

1,625,643 ,243
1,407,127 ,225

Armana Appa reIsand allies

357,943 ,486

1,049,183,739

Epyllion Fabrics and allies

367,993,601

982.050,140

1,350.043 ,741

Fakir Apperals and allies

532.850,201

791.650,718

1.324.500.919

Sam Ree dyeing and allies

361,509,436

874 ,547,831

1,236.057,267

Malek Spinning and allies

726,791 ,Q12

441,165,938

1,167,956,950

Noman Group

578,779,859

549,886,239

1,128,666,098

Islam trading Consortium and allies

441,997,830

448,192,164

890 ,189,994

B5RM

319,549,983

491,396,156

810 ,946 ,139

10

Ahmed Muztaba 5teel a nd allies

680,899,711

104,475.000

785,374,711

11

A.K Group

402,602,723

381,375,491

783,978,214

12

Bengal Group

480,952,873

297,933,684

778,886,557

13

M.MVeg and allies

754,497 ,521

17.40 7,550

771.905.071

14

GSB Ltd. and allies

TotlIl

on 31.12.2009

Name ofthe Client

532.706 ,850

232.167.767

764.874.617

7,109,oB2,n7

7.717.067.968

14.826.150.745

...
...

EDULE OF PRE 15ES

DFlXED

CostPrlce

P.rtltuilirs

IIIlI.nte
lSat
1 January

Addition
during
the yea.

1009

Depred.tlon

OI.po
..1i Ii 1IIl1.
nte
Tr.nsfer
lSat
dUling
31 De<ember
the year
1009

RIle

of
Dep.

8Ililinte
.sal
l~ry

II.dclItlon
durillg
the year

I AGjustment
Tron"erl
during
lheyear

OI'paOIl!
Tr.nsferlO

WrltlenDuwn
V.'ue ... t
1IIl1.1K.
lS.t
31 Dt<ember
3\ Decembe.
2009 I
1009

OwnA t.

land

Bulld;r.g

125,670.000
58)58)93

125,670.000

58,758)93

2.5%

5,277,709

1.469j)1)O

153,443,979

10%

13,329,882

15.313.367

1.040.064

114,798,991

20%

33)74)96

23,208,639

125.670.000
6.746.709

52.012.084

29.683.313

123.760.666

109,834.025

43.609,954

Office Appliances & Equ Ipments

&8,215,725

31.145,550

(4,562.2841

(4.604,045)

51,779.390

63.019.601

Com puter& Software

75,933,666

17.607,543

93,541 ,209

20%

29,179,344

18,756,892

(557,269)

47,378,967

46,162,242

2,300,000

8,725,460

11,025,460

20%

460,000

2,205,092

2,665.092

8.360,368

81,421,730 60,952,990

1,044l,064

49,855,B2B 45,742,251

Fumiture .& Fixture

lIankVehicie
Total1009

460,711,109 101,11I8,507

14,562,:1141 557,l38,432

Total2008

332,U7,610 150,899,100 (12,324,5111 460,712,209

(5,161,114) 1]8,253,470 411,914,962

676,142 (14,1152,491)

11,421,730 379,290,479

I.elIsedAssets

Furniture & Fixture

5,122.050

Office Appliances & Equ ipments

2,636.908

1,370.619

Com puter& Software

2.048.820

3.073.230

1.054,763

1.582.145

20%

1,024,410

1,Q24,410

2.636.908

20%

527.381

527,382

1,370.619

20%

274.124

274,124

548,247

822,372

152,160

1,125,915

3,651,B3\

5,477,746

152,160

1,673,755

1,825,915

7,303,662

5,122.050

TOIilI2009

9,129,577

9,129,577

Total2008

9,129,577

9,129,577

Related Party Disclosures

01.a) (i) Name ofthe Directors and their interest in bank (31.12.2009)

SINo

0102

Name of Directors

- 03

Chairman

2.97685

Vice Chairman

3.04606

Mr. Abdul Hai Sarker

Director

2.15719

Mr. Mohammed Hanif

04

Mrs. Afroza Abbas

Director

3.06920

Mrs. Rokshana Zaman

Director

0.56658

06

Mr. Khondoker Monir Uddin

Director

2.87187

07

Mr. Md. Amirullah

Director

2.07876

08

Mr.Aminullslam

Director

1.24354

09

Mr. Reshadur Rahman

Director

3.23777

10

Mr. Abdullah AI Ahsan

Director

1.91129

11

Mr. Khandaker Mohammad 5hahjahan

Director

2.11424

Mr. M.N.H. BuIu

Director

2.61049

12

----

'-

13

Mr.Tahidul Hossain Chowdhury

Director

1.51263

14

Mrs. Kamala Khatun

Director

0.02350

15

Mr.Jashim Uddin

Director

2.16291

16

Mr. Khondoker Jamil Uddin

Director

2.36916

- --

Mr.AltafHossain Sarker

% of Interest
31.12.2009

05

--

Designation

'-

17

Mr. Abdul Wahed

Director

1.08741

18
-19

Mr. Mohammad Ali Sarker

Director

1.37542

'-

Mrs. Rakhi Das Gupta

Director

0.72813

20

Mr. Suez Islam

Director

0.36044

21

Mr. G.M. Shameem Hussain

Director (B Group)

0.34332

I
01.a) (ii) Name of the Directors and their interest in bank (31.12.2008)

SINo

Name of Directors

-01
-02

Mr. Altaf Hossain Sarker

Mr. Mohammed Hanif

Designation

% of Interest
31.12.2008

Chairman

2.97685

Vice Chairman

3.04607
2.15719

03

Mr. Abdul Hai Sarker

Director

04

Mr. A.T.M.Hayatuzzaman Khan

Director

1.67098

05

Mr. Khondoker Monir Uddin

Director

2.87187

06

Mr. Md. Amirullah

Director

2.07876

07

Mr. Aminul Islam

Director

1.24354

08

Mr. Abdullah AI-Ahsan

Director

1.91129

09

Mr.Jashim Uddin

Director

2.16292

10

Mr. M.N.H. BuIu

Director

2.61050

11

Mr.Matin Uddin Ahmed Barabhuiya

Independent Director

0.00052

12

Mr.Shameem Hussain

Director (Group-B)

0.34332

122

b) Name of Directors and their interest in different entities;

- _.
51

Name of Directors

Status

Education

Lenglhof
Experience

with Bank

No

Directorship in other Companies

01

Mr. Altaf Hossain Sarker

Chairman

B.Com

38 years

MIs. RahmatTextlies Ltd.

MIs. Rahmat Spinning MjJJs ltd.
MIs. Belkuchi Spinning Mills Ltd.
MIs. China Plastic (BD)ltd.
MIs. Rahmat Plastic and AccessoriesLtd.
MIs. Rahmat Knit Dyeing & Finishing Ltd.
MIs. Rahmat Sweaters (BD) Ltd.
ExpressInsurance Ltd.

02

Mr. Mohammed Hanif

Vice
Chairman

Intermediate

45 years

MIs. Hanif Steelsltd.

MIs. Hanif Spinning Mills Ltd.
MIs. National Foundry & Engineering
works (pvt.) ltd.

03

Mr. Abdul Hal Sarker

Director

M.Com

36 years

MIs. Shohagpur Textlle Mills Ltd.

MIs. Purbani FabricsLtd.
MIs. Karim Textiles ltd.
MIs. Purbani Traders ltd.
MIs. Purbani Fishersltd.
MIs. Purbani Yarn Dyein~ ltd.
MIs. Karim Spinning Mil s ltd.
MIs. Purbani Synthetic Spinnina: ltd.
Mls.Purbani Rotor Spinning Lt

04
05

06

Mrs. Afroza Abbas

Director

BA

10 years

Former Director Dhaka Telephone Co.Ltd.

Mrs. Rokshana Zaman

Director

Intermediate

10 years

Former Director Brothers Knitwear ltd.

Mr. Khondoker Monir Uddin

Director

B.Com (Hons.)
M.Com
(Accounting)

28 years

Shanta Industries Ltd.

Shanta Garments ltd.
Shanta Apparel ltd.
Moazzem Garment Industries Ltd.
ShantaWashin? Plant ltd.
Shanta Medica Centre Ltd.
Metro Homes Ltd.
Universal BusinessMachines Ltd.
GDSChemical Bangladesh (Pvt.) Ltd.
STS Educational Group ltd.
STS Holdings ltd.
Shanta Properties ltd.
SPl HOldin~s ltd.
lankaBan~ a Securities ltd.
Spring val ey ltd.

Mr. Md. Amirullah

Director

Intermediate

40 years

MIs. H.P.Chemicals Ltd.

1-

07
08

Mr.Aminullslam

Director

Bachelor of Arts

31 years

Brothers Knitwear Ltd.

09

Mr. Reshadur Rahman

Director

Graduate

30 years

RRGroup
RR Trading & co.
RR Holdings ltd.
RR Enterprise.
National Traders ltd.
Dhaka Telephone Co.l.td,
H.P.Chemicals Ltd.
Quality Breedersltd.

10

I Mr. Abdullah AI Ahsan

Director

M.Com.

26 years

Eastern Filament Ltd.

Aroma Poultry.

11

Mr. Khandaker Mohammad

I Shahj ahan

Director

M.A

35 years

Bari pOXworld Ltd.

Bari an Pack Plast Ltd.
SMANFlexible packagi~ ltd.
Micro Disc Industries lt .

Director

B.Com

27 years

M/s.National Chemical Manufacturing ltd.

MIs. Abico Industries Ltd.
MIs. Rumki Industries Ltd.
Shafkat PVC sole Industries Ltd.
Bulu International
Oishee International
Aleef Enterprise
Nawshin Vinyl Industries.
Boss PVCVinyl Industries.
BNSInternational co.

12

123

Mr. M.N.H. Bulu

13

Mr.Tahidul Hossain
Chowdhury

Director

Bachelor of Arts

31 years

K.B.Knit FashionLtd.
Jerat FashionLtd.
Hurdco Ltd.
Central Hospital Ud.
Hotel Victory Ltd.

14

Mrs. Kamala Khatun

Director

11 years

Directorship in Dhaka Bank

Limited since inception.

15

Mr.Jashim Uddin

Director

Bachelor of Arts

25 years

Impel Shares& Securities Ltd.

FederalInsurance Co.Ltd.
HURDCO (Human Resources &
Development Co.Ltd.)
Rafid Enterprise.
ProgressivePlanters& Traders

16

Mr. Khondoker Jamil Uddin

Director

BSS(Hons)
MSSMPhii

32 years

Apollo Hospitals Dhaka

International School Dhaka.
DPS-STS School Dhaka.
ShantaGarments Ltd.
Shanta Apparel Ltd.
Moazzem Garment Industries Ltd.
ShantaWashing Plant Ltd.
Shanta Industries Ltd.
STS Holdings Ltd.
STS Educational Group ltd.
Shanta Properties Ltd
GDSChemical BangJadesh (Pvt.) Ud.
Universal Business Machines Ltd.
A & A Accessories Limited
JAAZ. Concerns Ltd.

17 Mr. Abdul Wahed

Director

Masters in
Electrical
Engineering

30 years

18

Mr. Mohammad Ali Sarker

Director

Matriculation

45 years

RahmatTextiles Ltd.
Rahmat Sftinning Mills Ltd.
Belkuchi pinning Mills Ud.
China Plasticand Accessories Ltd.
Rahmat Knit Dyeing & Finishing Ltd.
ShahiWeaving Factory
Shahi Products

19

Mrs. Rakhi Das Gupta

Director

BA(Hons),
MAEngIish

30 years

Uniroyal Trade Ltd.

Uniroyal Securities Ltd.
System Resources Ltd.

20

Mr. Suez Islam

Director

BBA

15 years

Brothers-Ltd.

21

Mr. G.M.Shameem Hussain

Director
(BGroup)

Machanical
EnWneer
(Hert ordshire
University, UK)

25 years

Zenith (Bangladesh)RollersLtd.
Robin Printing & PaCka~es Ltd.
Polyweb printinl & Pac ages Ltd.
Dhaka Refilling ServicesCentre Ltd.
Gateway Dhaka Ud.
H.P.chemicals Ltd.
Robistix Ltd.

02. Significant contracts where Bank is a party and wherein Directors have interest:

Nil

03. Shares issued to Directors & Executives without consideration or exercisable at discount; Nil
04. Related party Transactions;

Nil

05. Lending policies to I't!lated parties:

Lending to related parties is effected as per requirements of Section 27 (1) of Bank Companies Act' 1991.
06. Loan and Advances to Directors and their related concern:

Nil

07. Business other than Banking business with any related concern ofthe Directors as per Section 18 (2) of
Bank Companies Act' 1991;

Nil

08. Investments in the Securities of Directors and their related concern:

Nil

124

Annual Report of Shariah Council, 2009

All praise is due to Allah, the lord of the World, the Beneficent, the Merciful. Durud
and Sala m is for our Prophet (SM)who is Rahmat for the creatures of the World.
We take the opportunity to express our wholehearted gratitude to the Board of
Directors, the Managing Director and all members of the Management body for
their continuous support. We are grateful to the Shareholders and clients for their
confidence on us.We are also grateful to our centra l bank authority for circulation of
Islamic Banking guidelines, which shall guide us to bring uniformity in following the
Shariah Principle in Islamic Banking.
During the year 2009 the Shariah Council of Dhaka Bank arranged 3 meetings and
reviewed various operational issues of Islamic banking in the light of Shariah
Principles rules.
Besides, the Muraqib of the Shariah Council inspected the two Islamic Banking
Branchesof our Bank duri ng the year and submitted his report.
Some issues discussed in the meeting of Shariah CounciI of Dhaka Bank Ltd in 2009
are as under:
a)

Awareness for Compliance of ShariahPrincipies among the executives & officers.

b)

Decision regarding Compensation/Doubtfullncome.

c)

Implementation of Islamic Banking guidelines circulated by Bangladesh Bank.

d)

Distribution of Final Profit in different Mudaraba Deposit Accounts after

adjustment.

e)

Introduction of Common Islamic Banking Software or to modify t he existing

software w ith the Islamic Shariah Principles.

Suggestions given by the Shariah Council were as follows:

i)

The Training of the manpower of the Islamic Banking Branches regarding

Sharlah should be strengthened.

ii)

The officers should be more cautious in implementation of Shariah Principles

in buying and selling of the goods, while making invest ment.

iii)

iv)

The inspection by the Murqib should be frequent.

Introducing Islamic banking software in the light of guidelines given by
Bangladesh Bank.

May Allah help us in establishing Shariah based banking in the country with a view
to obta in His Satisfaction.

M. AzizulHuq
Chairman

125

Distribution of Profit Under Islamic Banking Operation

Dhaka Bank operating two Islamic Banking branches in complying with the rules of Islamic shariah, which absolutely
prohibits receipts and payments of interest in any form. The modus operandi of these two branches is totally different from
other conventional branches. A separate balance sheet and income statement are being maintained as recommended by
the Central Shariah Board for Islamic Banking in Bangladesh.

Fixation of final rate forthe year 2009

Profit and loss of Islamic banking branches is calculated annually as on 31 December in every year. 70% of full year's
investment income shall be distributed to the different types of Mudaraba depositors according to the weightage and the
rest (30%) will be retained by the bank to meet administrative expenses and investment loss offsetting reserve.
Provisional profit are applied to the different types of depositors at the rates to be decided by the Bank from time to time
taking into consideration of the industry trend and that of the rates of other Islamic banks in Bangladesh. Final rates of
profit are declared annually on the basis of income earned from different investments and other business by individual
branches and distributed as per weightage of the different deposit products.
Final profit to the depositors for the year 2009 has been paid as per following weightage and rates:
TypiK of Df!posit

Weightage

final Rate of Profrt

1. Mudaraba Savings Deposits

O.7S

4.32

2. Mudaraba Savings Deposits for Bank

0.70

4.00

2. Mudaraba Short Term Deposits

0.50

2.85

0.98
0.92
0.90
0.85

5.59
5.25
5.14
4.85

0.80
1.10
1.00
1.10

4.57
6.28
5.71
6.28

3.

Mudaraba Term Deposits

36 Months
24 Months
12 Months
6 Months
3 Months
1 Months

4.
5.
6.
7.

Mudara Term Deposit Bank

Mudara Hajj Savings Scheme
Mudaraba Special Deposit Scheme
Mudaraba Deposit Pension Scheme

126

B) List of the Board of Directors

51. No.
01

Name
Mr. Altaf Hossain sarker

Designation
Chairman

02

Mr. Mohammed Hanif

03

Mr. Abdul Hai Sarker

Director

Vice Chairman

04

Mrs. Afroza Abbas

Director

05

Mrs. Rokshana Zaman

Director

06

Mr. Khondoker Monir Uddin

Director

07

Mr. Md. Amirullah

Director

08

Mr. Aminul Islam

Director

09

Mr. Reshadur Rahman

Director

10

Mr. Abdullah AI Ahsan

Director

11

Mr.Khandaker Mohammad Shahjahan

Director

12

Mr. M.N.H. Bulu

Director

13

Mr. Tahldul Hossain Chowdhury

Director

14

Mrs. Kamala Khatun

Director

15

Mr. Jashim Uddin

Director

16

Mr. Khondoker Jamil Udd in

Director

17

Mr. Abdul Wahed

Director

18

Mr. Mohammad Ali Sarker

Director

19

Mrs. Rakhi Das Gupta

Director

20

Mr. Suez Islam

21

Mr. G.M. Shameem Hussain

Director
Director (BGroup)

Cl List of th~ Dir~ctors of the Ex~cutiv~Committ~~

5L.No.

1.
2.
3.
4.

5.
6.
7.
8.

127

Name of Directors
Mr. Altaf Hossain Sarker
Mr. Mohammed Hanif
Mr. Abdul Hai Sarker
Mrs. Afroza Abbas
Mrs. Rokshana Zaman
Mr. Khondoker Monir Uddin
Mr. Md. Am irullah
Mr. Reshadur Rahman

Designation
Chairman
Vice Chairman
Director
Director
Director
Director
Director
Director

D) Particulars of Audit Committee

51

01
02
03

Name
Mr. Abdul Hai Sarker
Mr. Mohammed Hanif
Mrs. Rokshana Zaman

Status with Bank

Status with

Director
Vice Chairman
Director

Committee
Chairman
Member
Member

Educational
Qualification
M.Com
Intermediate
Intermediate

E) List of the Shariah Council Committee

51.

Name

No

01
02
03
04

Mr. M.Azizul Huq

Professor Moulana Mohammad Salah
Uddin
Mr. Md. Mokhlesur Rahman

05

Mr. M. Ziaul Hassan

Mr. Khondker Fazle Rashid

06

Mr. Syed Abdul Quader

Status with
the Bank

Status with the

Committee
Chairperson
Member

Member

Member
Member

Managing
Director
Vice President
& Manager,
Islam ic Banking
Branch Motiiheel

Member secretary

Educational
Qualfficatlon
MA (Economics)
Kami!, MA (Islamic
Studies)
Kami!, MA (Islamic
Studies)
Barrister at Law
MBA from IBA,
Dhaka University.
B.Com (Hons.)
M.Com
(Management)

128

Annexure - F(i)

Balance Sheet
as at 31 December 2009
(Islamic BanlUng)
2009

PROPERTY & ASSETS

2008
Taka

Taka
Cash
Cash in Hand (includIng foreign currencies)
Balance with Bangladesh Bank & Sonall Bank
(including foreign currencies)

8,509,664

Balance With Other Banks & Financial Institutions

8,509~64 J

t3,207,~221

1,900,000,000

1,700,000,000

Money at Call and Short Notice

Investmenu (Including BILLS)
Murabaha (Purchase Order)
Murabaha (Term Financing)
MPI Trust ReceIpt
Murabaha Import Bill (PAD)
Bal Muajjal
Ijara (Lease Financing)
Shirkatul Melk (Hire Purchase)
Others
Premises and Fixed Assets

13,207,622

Other Assets

1,878,749,303

371,178,615
1,412,389,411

324,980,406
1,213,556,569

45,188,092
1,827,913
108,180,468
163,589,501

4,453,330
35,220,237
232,130,994

46,925,436

30,120,049

105,991,494

38,287,718

27,376,350 ]
2,211,853,314

Non-Banking Assets

2,255,270,930

6,403,010,258

Total Assets

4'194,943,~671

26,581,453

7,813,482,245

LIABILITIES & CAPITAL

LIABILITIES:
Borrowings from other banks I financIal Institutions
and agents

Total LIabilities
CONTINGENT LIABILITIES:
Acceptances and Endorsements
Letter of Guarantees
Letter of Credit
Bills for Collection
Other Contingent liabilities
TOTAL:
OTHER COMMITMENTS:
Documentary credit and short term trade-related transactions

143,745,501 1
6,403,010,258
693,638,598
36,770,659
169,328,336
145,873,976

1,045,61 1,569

1,600,000,000

7,813,482,245
---

279,878,615
41,033,391
80,498,238
108,047,814

509,458,058
-

TOTAL:

129

194,324,151

1,045,61 1,569

6,019,158,094
52,453,689
28,202,839
1,715,244,859
67,389,142
30,430,373
4,125,437,192

FOlWard assets purchased and forward deposits placed

Undrawn note issuance and revolving underwrltlnq facilities
Undrawn formal standby facilities, credit lines and other commitments

TOTAL OFF - BALANCE 5HEET ITEMS

I~

4,359,264,757
117,986,387
12,505,939
395,154,193
32,614,326
53,911,307
3,747,092,605

Deposits and Other Accounts

AI Wadlah Current Account
BlIIsPayable
Mudaraba Savings Deposits
Mudaraba Short Notice Deposit
Mudaraba Deposit Pension / Han Savings Scheme
Term Deposits
Other Liabilities

1,900,000,000

509,458,058

Annexure - F(ii)
Profit and LossAccount
for the year ended 31 December 2009
(Islamic Banking)

2009

2008

!aka

IU.a

Operating Incom

624,749,610
519,409,338

752,313,563
652,850,370

105,340,272

99,463,193

19,789,158
2,635,659

17,044,292
2,596,518

127,765,089

119,104,003

18,128,490
1,954,815
7,500
676,072
614,740
1,216,348
792,257
4,417,041

17,542,842
2,108,850
8,200
801,757
1,691,657
34,440
906,722
635,619
9,943,156

TOTAL Operating Expenses (B)

27,807,263

33,673,243

Net Profit During the Year {A - B I

99,957,826

85A30,760

Profit Received from Investment

Profit Paid on Deposits & Borrowings

Net Profit Received

Commission, Exchange Earnings & Brokerage
Other Operating Income

Total Operating Income (A )

Operating Expenses

Salary & Allowance:

Rent, Taxes, Insurance, Lighting etc.
legal Expenses
Postage, Stamp, Telecommunication etc.
Stationery, Printing, Advertisement etc.
Shariah Council Meeting Expenses
Depreciation of Bank's Assets
Repair of Bank's Assets
Other Expenses

130

AUDITORS' REPORT TOTHESHAREHOLDERS

We have audited the accompanying Balance Sheet of Offshore Banking Unit of Dhaka
Bank Limited as on 31 D&ember 2009 and the related Profit and Loss Account and Cash
Flow Statement and Notes to the Financial Statement for the year then ended. These
financial statements are the responsibility of the banks management. Our responsibility
is to expressan opinion on these financial statements based on our audit.
We conducted our audit in accordance with Bangladesh Standard on Auditing (BSA).
Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a
reasonable basisfor our opinion.
In our opinion, the financial statements prepared in accordance with Bangladesh
Accounting Standards (BAS), give a true and fair view of the state of the bank's affairs as
of 31 December 2009 and of the results of its operations and its cash flows for the year

131

then ended and comply with the Bank Companies Act,

xi) It appeared from our test checks that the internal

1991,the rules and regulations issued by the Bangladesh

control system was satisfactory and adequate to prevent

Bank, the Companies Act, 1994, the Securities and

probable frauds and forgeries;

Exchange Rules 1987 and other applicable laws and

regulations.

xii) We are not aware of any other matters, which are

required to be brought to the notice of the shareholders
of the Bank;

We also report that;

xiii) 80% of the risk-weighted assets of the unit have been

i) we have obtained all the information and explanations

which to the best of our knowledge and belief were

audited;
xiv) we have been spent 650 man hours for the audit of

necessary for the purpose of our audit and made due

books and accounts of the offshore Banking Unit of the

verification thereof;

Bank.

ii) in our opinion, proper books of account as required by

law have been kept by the unit so far as it appeared from
our examination of those books.
iii) the unit's Balance Sheet and Profit and Loss account
dealt with by the report are in agreement with the books

(a)

(b) the audit covered above 80% of the risk-weighted

assets a of the unit.

of account and returns;

iv) the expenditure incurred was for the purpose of the
unit's business,
v) the fi nancial position of the unit as at 31 December
2009 and the Profit for the year ended have been
properly reflected in the financial statements; the
financial statements have been prepared in accordance
with the generally accepted accounting principles;

Dated
Dhaka,12 February 2009

4.~l
ACNABIN

Chartered Accountants

vi) the financial statements have been drawn up in

conformity with the Bank Companies Act, 1991 and in
accordance with the accounting rules and regulations
issued by the SangJadesh Bank;
vii) adequate provisions have been made for advances
and other assets which are, in our opinion, doubtful of
recovery;
viii) the financial statements conform to the prescribed
standards set in the accounting regulations issued by the
Bangladesh Bank after consultation with the professional
accounting bodies of Bangladesh;
ix) the information and explanations required by us have
been received and found satisfactory.
x) As far as it was revealed from our test checks, the
existing rules and regulations for Joan sanctioning and
disbursements have been followed properly ;

132

Ba ance Sheet
as at 31 December 2009
(OffShore Banking Unit)

2009

2008

PROPERTY & ASSETS

CASH:
Cash in Hand(including foreign currencies)
Balance with Bangladesh Bank &SonaIi Bank
(including foreign currencies)

II _I I_ _

11" - - - - - - -

BALANCE WITH OTHER BANKS AND FINANCIAL INSTITl1T10NS:

In Bangladesh
OutsideBangladesh
MONEY AT CALLAND SHORT NOTICE:

II

I I

II

II

II

INVESTMENTS:
Government

II

Others
LOANS & ADVANCES:
Loans, Cash Credit& Over Draft etc.

10,070,915.35

---

450,907,050
246,503,838

----

II

PREMISES ANDFIXED ASSETS:

OTHER ASSETS:

697,410,888

6,511,293.1411
3,559,622.21

BiIIs Discountedand Purchased

II

2,368,230.99

I
I

10,923,682.17
4,241,213.95 1
6,682,468.23

---

163,999,996

1,723,333.08

861,410,884

12,647,015.25

II

NON-BANKlNG ASSETS:
TOTALASSETS

12,439,146.34

754,280,254
292,855,8231
461,424,431

-- - -

118,996,149

II
873,276,403

LIABILITIES & CAPITAL

LIABILITIES:
Borrowingsfrom other bankslfinancial
Institutions and agents

10,000,000.00

DEPOSITS ANDOTHER ACCOUNTS:

1,714,808.94

118,750,S19

1,198,921.30

82,785,516

1,566,506.84

108,480,599

1,118,756.09

77,250,108

148,302.09

10,269,920

80,165.21

5,535,408

58,346.74

4,040,512

10,811,327.95

746,522,195

11,773,155.68

815,291,031

12,010,249.25

829,307,711

CurrentAccounts &Other Accounts

BiIIs Payable
Other Deposits
OTHER LIABILITIES
TOTALLIABILITIES

II

692,500,000

II

CAPITAL I SHAREHOLDERS' EQUITY:

Paid-up Capital
StatutoryReserve
Other Reserve
Surplus in Profit and Loss Account
TOTAL SHAREHOLDERS' EQUITY:
TOTALLIABILITIES & SHAREHOLDERS' EQUITY

133

M5,~J

%,'19J

636'7M~O

665,990.66

46,119,853

636,766.00

12,439,146.34

861,410,884

12,647,015.25

43,968,692
43,968,692
873,276,403

for the year ended 31 December 2009

(Offshore Banking Unit)

2009
Notes
CONTINGENT LIABILITIES:
Acceptances and Endorsements
letter of Credit
letter of Guarantee
Bills for Collection

US$

2008

Taka

Taka

US$

9
5,104,969.08
4,224,332.90

353,519,109
292,535,053

12,711,084.55
6,169,129.08

877,700,388
425,978,363

8,332,858.58

577,050,457

9,702,315.22

669,944,866

17,662,160.56

1,223,104,619

28,582,528.85

1,973,623,617

Other Contingent Liabilities

TOTAL:
OTHER COMMITMENTS:
Documentary credit and short term trade-related transactions
Forward assets purchased and forward deposits placed
Undrawn note issuance and revolving underwriting facilities

Undrawn forma I stan dbyfaciiities, credit Iines andother

commitments
TOTAL:
TOTAL OFF - BALANCE SHEET ITEMS

DDD
17,662,160.56

1,223,104,619

28,582,528.85

1,973,623,617

The annexed notes forman integral part of the Balance Sheet.

Khondker Fazle Rashid

Managing Director

Khondoker Monir Uddin

Director

Thisis the Balance Sheet referred to in our report of even date.

Abdul Hai Sarker

Director

Altaf Hossain Sarker

Chairman

ACNABIN
Chhartered Accountants

Dhaka, 11 February 2010

134

La

Pr i

cc

for the year ended 31 December 2009

(OffShore Banking Unit}

2009

2008

tmtes

52.642'~041

563,377.66

39,013,903

762,385.29

563,377.66

39,013,903

762,385.29

52,642,704

984,151.64
18,633.33

68,152,501
1,290,358

270,619.46
27,033.01

18,686,274
1,866,629

1,566,162.63

108,456,762

1,060,037.76

73,195,607

900,171,97

62,336,909

423,271.76

29,226,915

Profit I (Loss) Before Provision (C j = (A - B I

665,990.66

46,119,853

636,765.99

Less: Provision for loans (D)

9,490.67
656,499,99

657,229
45,462,624

51,006.00
585,760.00

10

Interest Income
Interest paid on Deposits & Borrowings

Net Interest Inrome

Income from Investment
Commission / Fees, Exchange Earnings & Brokerage

11

Other Operating Income

12

Total Operating Income (A)

13

Less: Operating Expenses IS)

Total Profit I (Loss) before Tax (C - D)

Less: Provision for Income Tax

Net Profit I (Loss) after Tax:

656,499,99

Distribution:
Statu to ry Reserve
General Reserve
Dividends etc.

656,499,99

Retained surplus

45,462,624

585,760,00

I
I
I
I

43,968,692
3,521,964
40,446,728

40,446,728

oeD
45,462,624

585,760.00

40,446,728

Earning per Share (EPSj:

The annexed notes form an integral part of the Balance Sheet .

Khondker Fazle Rashid

Managing Director

Khondoker Monir Uddin

Director

Abdul Hai Sarker

Director

Altaf Hossain Sarker

Chairman

This is the profit and loss account referred to in our report of even date.

ACNABIN
Chhartered Accountants

Dhaka, 11 February 2010

135

(as

ow S a e ent

for the year ended 31 December 2009

(OffShore Banking Unit)

Notes

2009

Uil
Cash Flow from Operating Acrivities
Interest receipts
Interest payments
Receipts from other operating activities
Payments for ot her 0 perating actlviti e s

14
15

Operating profit before changes incurrent assets & liabilities

IncreasefOecrease inoperatiing assets and liabililies

Loans and advancesto other ba nks

Loans and advancesto customers
Other assets
Deposits fromother banks
Deposits fromcustomers
Other liabilities account of customers
Other liabilities
Netcash flow from operating activities (AI
Cash Flowfrom Investing Activities
Cash Flow from Financiang Activities
Profit remitted to Head Office
Net cash used in financing activitives
NetIncrease I (Decrease) incash (A+B+C)

2008

Taka

USS

Taka

563,377.66

39,013,903

762,385.29

52,642,704

1,002,784,97
(900,171 .97)

69,442,859
(62,336,909)

297,652,47
(423,271 .76)

20,552,903
(29,226,915)

665,990.66

46,119,853

636,766.00

43,968,692

821,218.28
(649,875.05)
10,000,000.00
519.350.22

56,869,366
(45,003,847)
692.500,000
35,965,003

(4.743,214.22)
(1.723,244.19)

(327,518,942)
(118,990,011)

(784,171.11 )

I
(54'147~15l 1

(l 0,721 ,757.16)

(742,481,683)
43,968,692

7,019,964.24
406,100.72

634,926.95

484,728,531
28,041,255
1

(634,926.96)

(43.968,692)

(406,100.72)

{28,041 ,255)

(634,926.96) 1

(43.968,692)1

1 (406,100.72)1

(28,041,25S)

Opening cash & cash equivalent as at 1 January

Closing cash & cash equivalent as at 31 December
Closing cash & cash equivalents
Cash in Hand
Balance with Bangladesh Bank & Sonali Bank
Balance withother banks& Financial Institutions
Money at call&ShortNotice
Prize Bond
Total
The accompanying notesform an integral partofthiscash
flow statement

KhondkerFazleRashid
Managing Director

Khondoker Monir Uddin

Director

Abdul Hai Sarker

Director

Altaf Hossain Sarker

Chairman

~]

Dhaka, 11 February 2010

ACNABIN
ChharteredAccountants

136

...w
......

iq

ity S te en

(Asset and Lia bility Maturity Analysis)

asat 3 1 December1009(Offshore Banking Unit)

1 - 3 rnonllu

Uplo 01 mOlllh

un

un

Toka

3 - 12 mOlll'"

Toka

USS

To'"

1 -5'....

Tou.

USS

Totol

nlONlIlonsY"0"
USS

loU.

T.1<.o

USS

Amll:
Cash in hand

8alance withotherb,nk>and
finandal i nsteuuons

Money ,t coil on ,hort notice

Investmel'lt
Loan:s and Affiia1lces

- I

- I

- I

==t===t=
.

<.370.,1

164,158

3,519,612.1I

146,10l,ll38

3,403,753.0l

1J5,71l9,1l'17

1,368,230.9'1

163,999,m

3,105,169.60

--- ----- --215,032,'195

1ll,070,915.35

697,410,/lll8

F ~ assets indu[jjng premlses,

JumibJr",lId fildur"

Other assets

Noo-banking ,assets

TotoIAnm

2,370.51

I
lM,15!

246,503,ll311

3,'59,6JUI

---

5,771,_.02

3",7011,11t3 3,105,1119.60

2.368'230.!I'J

12,439,146.34

215,032,"'

163,m ,9%

B61,410,llM

Lablll1lfi;

Borrowingfrom aangl.<Iosh
Ban'" OtherOanks, fl.."ci,1
institutions.mel agents

Deposm& om.r ~counlS

Other liabilitiiS

(10,000,000.00)

(692,100,000)

( l,11 4,8(l1l-~1

(58,332.6811

11 18.750,5191
14,039,5381

. I
(14,CMi)

(66S,990,661

11 ,m ,141.621 1122,790,Osn 11 O.ooo.oW)6)

1692,500,914)

I66S,990,661

!lei UquldityGop

11,770,771.111 (122,625,899)

Cumulotlveliquidity Gop

11,770,nl ,111 (122,625,8!1l1) 18,211,162.95) (568,623,0351 (WM78.941 1168.'13,142)

16,440,3~1 ,lI~

(445,"7,1361 5,771,9B4.Q2

---

(974)

Capit,l & R" "",,,

ToQlUobilltl..

I
I

(10,000,00Il00) (692,500,000)

3",7011,893

2,43',178,94

146,119,1lS31
146,119,1lSll
168,'13,142

(1.114.801l-~)

(118,750,519)

(58,346.74)

(4.040,512)

(661,990.66)

(46,119,813)

(12,439.146.34) (601,410,884)

Notes to the Financial Statements

For the year ended 31 December 2009
Nature of Business
Offshore Banking Unit is a separate business unit of Dhaka Bank Limited, governed under the Rules & Guidellnes of Bangladesh
Bank.The Bank obtaIned the Offshore BankIng Unit permIssIon vIde letter nO.BRPD (P}744(92)/200S-2181 dated June 18, 2005. The
Bank commenced the operation of !ts Offshore Banking Unit with effect from May 10, 2006.
2
Significant Accounting Policy
2.1 Basis of accounting
The accounting records of the unit are maintains in USDforms and the financial statements are made up to 31 December each year,
and are prepared under the historical cost convention and in accordance with first schedule of Bank Companies Act (SCA) 1991 as
amended by Bangladesh Bank (Central Bank) BRPD Circular NO.14 dated 25 June 20(B, other Bangladesh Bank circulars, International
Financial ReportIng Standards adopted as Bangladesh AccountIng Standards (BAS), the Companies Act 1994, the Listing RegulatIons
of the Stock Exchanges, the Securities and Exchange Rule 1987 and other laws and rules applicable in Bangladesh on a going
concern basis.
2.2 Allocation ofcommon expenses
Establishment expenses in the nature of rent, rates, taxes, salaries, management expenses, printing & stationery, electricity &
lighting, postage, stamps, telecommunication etc. have not been separately accounted for in the Financial Statements.
2009

2008

Taka

Taka

Money at cell and Short Notice

Lo.ansand Advances
4.1 Lo.ans,Cash Credits & Overdrafts etc.:
In Bangladesh
Overdraft
Term Loan
Loan aga Inst Accepted Bills
Payment Against Documents

___11'-------__

-11_-

- 1

1,641,687.00
s.t 05,169.60
1,762.066.02
2,370.51
6,511,293.14

11:i,686,825
215,032,995
122,023,072
164,158
450,907.050

1,358,333.40
2,848,831.21

93,792,921
196,711.795

34,049.34
4,241,213.95

2,351,107
292,855,823

6,511,293.14

450,907.050

4,241,213.95

292,855,823

3,251,316.48

225,153,666

6,617,333.22

456,926,859

308,305.73
3,559,622.21

21,350,172
246,503,838

65,135.00
6,682,468.23

4,497,572
461,424,431

10,070,915.35

697,410,888

10,923,682.17

754,280,254

2.37051
3,559,622.21
3,403,753.03
3,105,169.60

164,158
246,503,838
235,709,897
215,032,995

34,049.34
6,682,468.23
1,358,333.40
2,848,831 .21

2,351,107
461,424,431
93,792,921
196,711,795

10.070,915,35

697,410,888

10,923,682.17

'~,"""

6,617,:i33.22

246,503,838

6,617,333.22

Outside Bangladesh
5ub-totaI
4.2 Blils Purchased & DIscounted
Payable in Bangladesh:
Inland bills purchased
Payable outside Bangladesh;
ForeIgn bills purchased & discounted
5ub-totaI
Total
4.3 Residual maturIty grouping of Joens including bills
purchased and discounted
Repayable on Demand
Not more than 3 months
More than 3 months but not more than 1 year
More than 1 year but not more than 5 years
More than 5 years

Totel

754,280,254

4.4 Maturity groupIng of bills purchased & discounted

Payable within 1 month
Over 1 month but less than 3 months
Over 3 months but less than 6 months
6 months or more

:i,559,622.21

Total

3,559,622,21

I ~""A" I
461,424,431

138

2009

a.
b.

1.oIIno on the bufo of olanlllant c o n < _

Inc!lKUng blfo purd>lll.d adllCOunt.d:
Advances to allied ecncems of Directors;
ndvences to Chtef Ex.@cudv.@!

c.

Advanc es to Other Senior ExecutIves.

d.

Advances k) CU$tmea Group;

4.5

2008

Tilia

.lISD

I I~ ~I

Taka

.lISD

Ag ,Icul,ure loa n
Commerdal lend ing

4,746.856.61
5,324.058.74

Export fl nandng

spedal prog ram loon (SMEl

5laffLoan
Others

Jndult!1 ..... 100"" Includ!rlg blIopurdIoMd:. di'J<II<I!ItOd:

Agrlrultura' tndustnes
Pharmaceuticals Indu'trt..
T"",lle &-Gorment Indu>ln ..
Chemtc.a1 rndustnes
Food 8< e lted Indu>lrte s
Trans""rt 8< Communi ca~on
Ele<:tronlc 8< Automobile Indu>lne,
Hou s:tng &ICo nst ru cti on rndustnes
E"!i"""ring &M<.. ttrdustreslndudi"~SI1lp ~",bog
Energy 8< Power Industrle,

10,(170,915.35

461,424,432

10,923,6112.17

6!17,410'-

292,8 55,822

10,070,915.35

Tobl

4,241,213.93
6,682,4&8.24

3t">6,691,068

Consumercredll'Scheme

4.\\

328,719,820

754,260,254

697,410.888

461,424,431

6.682,468 .23

5ervJeeIndustnes.
4,241,213.95

Other rndustrt es

10,ll7O,915.35

Tobl
4.7

Geogl1lphlal location - wise LolIns and Advanca;

Dhaka Region
Chlttagong Region
5ylh., Region
Other

4.11 Sector w1'U!! 1oIIm:

i '"W
O
'"''

In Banglade'h
Go\'emmen, 8< Autonomous bodle,
FlnandallnsdlU\lon, (Public & Prl.. le)
Other Publt c Sector
Private Sector

10,ll7O,915.35

Tobl

10.923.682.17

6!17,410'-

754,260,254

10,923.6112.17

LW7,41O~

10.070.915.35
10,ll7O,9u.35

292,855,823
754,260,254

10,923.6112.17

697,410'-

~S4,280;54

1_ _ 10.923.682:17

69"1,410,1lIlIl

10,923,682.17

10,070,9U.35

697,4 10.1lIlIl

10,923,6112.17

10.032A82.63
36.063.72
2,369.00

694,672.174
2.569.902
166,812

10.923.682 .17

697,410'-

10,923,6112.17

754,1IlO,254

Outside Bangladesh
4.9

ClI_tlonof kNlns a advanCfl:

T.....I

Unclassified (Including 'tall loan)

Sub -Standard
Doubtful
Elo<Iortoss
Tobl

10,ll7O,915.35

754,1IlO,254

754,260,254

4.10 ProvkJon :r8ql.llNd fOf' loan:!..nd.d....nt.es:

SWIu.
unclassuted
S~d i3:1 M@ntfonAccount

CLmIlif:d:
5u1>-5land.,d
Doubtful
Bod or los.

Ilaa.'lb
1,2&-5
5
20
SO
100

M60.741
1.097.00 1
7.757.74
118,414.59
118,414.59

Re'lulred prO\'lslon for loons & advances

TClal pro_lslon maintained
EKul-s 15hort pwyision lIt 31 DK.mb4:r
4.11 _ I f I Trut Ioo.. ln<kJcjlngblk.............. _
a.

93,270 .93 1
17,385.92
110,ti5ti.ll5

For-elgn Banks GUCI:ranlee

Ex""rt documents

42,345.13
70,340 .33

2.924,000 1
4,857,000
7,781,000

112.6116.4&

474,645
78,172

552.817
8,438,229

II
llZ,686.46
11Z,686.46

8,43~

Set;wed
Cotlaserel of mov eble I Immovable 3 5'Se15
local Banks & Ptnanclal tn.'St1Mlon.s gUilraTttBe
Govemmen! Guarantee

6,646,490
1,238,922
7,1l1l5,412

7,7111,000
7,7111,000

I
-

4,746.856.61

328,719,820

4,241 ,213.95

292,855 ,823

5,324.058.74

368,691,0t>8

6,68 2,468.23

461,424,431

FixedDe posft $ RtreJpts

1 Own fOR
2 fOR ofOther Bonks
Go\'emment bonds
Personal Guarantee
Other 5ecurlde,
b.

Unsecured
Tobl

139

10,ll7O,91 5.35

I
697,410'-

10,923,6112.17

I
754,260,254

2008

2009

USD

Ii)

loans considered good inrespect ofwhidl thebank company isfully

secured;

(ill

loans considered good against which the banking company holds 00

securityother than thedebtots perscnal guarantre;

(iii)

loans considered good secured bythepe~onal undertlkings ofoneormore

parties inadd~ion to the personal goaranlee ofthedebtors;

4,746,685,6.61

USD

4,241,213.95

328,719,820

5,324,059.74

6,682 ,468.23

368,691,068

292,855,823

46 1,424,43 1

(Iv) loans adversely dmifted: provision notmaintained thereagai nst;

M loans due bydirectors orofficersofthebanki!l9 companyorany ofthese

loans due from companies orfirms inwhich thedirectors ofthebanking

company have interests asdirectors, penners ormanaging agents orincase
ofprivate companies asmembers;

(vii) Maximu mtotal amount ofadvances including temp oraryadvance made at

any time during theyear todirectors ormanagers orofficers ofthebanking
companies oranyofthem either separately orjointly wtth anyother person;

(viii) Maximu mtotal amount ofadvance sincluding temp orary advance sgranted
during theyear tothecompaniesorfirms inwhich thedirectors ofthe
banking company have interests asdirectors, partners ormanaging agents or
inthecase ofprivate companies asmembers;

either separatelyorjointlywith any other persons;"

(vi)

(ix)

Due from banking companies;

(~}

Amount ofclassified loan onwhich interest has not been charged, should be
mentioned asfollows:

a) Denease I increase inprovision;

b)Amount ofloan written off,

c)Amount realized against loan prEviously written off;

d)Amount ofprovision kept againSlloan classified as'badiloss' onthedate of
preparing the balance sheet;

Cumulative amount ofthewritten off loan;

(xii) Amount wrinen off during thecurrent year,

(xiii) The amount ofwritten off loan for whim lawsuit has been filed:

e) Interest creditable totheInterest Suspense Alc;

(xi)

5 OtherAssets

Accrued Interest
AdvancePaymentagainst DeferredLC
Branch Adjustment

1,723,333.08

1,723,333.08

6 Borrowing fromotherBanks/Financillllnstitll1mns
6.1 Maturitygrouping of Borrowings

Repayableon demand;
Repayablewlthin1 month;
Over 1 month but within 6 months;
Over6 months but within 1 year;
Over 1year but within5 years;

110,000,~

1692,500,000

II

1"8,996,1491
118,996,149

If - - -

D oDD
10,000,000,00

692,500,000

140

7 o.poslts and om.. Accou nts

7.1

Curr.nt and OIhef Accou nls

1,S66,~11

Foreign Currency Depo,lts

7.2

Bills Payable

7.3

OIlIar d.posll
Margin under UC
Deposits Awa~lng Dlspo~1

49,955,70

71.2S0,108 I
I I 1,118,756.091 ~I====~
I L-I _ _------'
Ie - -

l08,480,m

_ _ _-'1'---1

40::_'
_ _--=-:-98::-':-:)46.c::-::L-----,-::-':-::c:-':-=-::-

148,302.09

i_I

1,714,808.94

L-_-=-,=-=- L-_-=-':=-=-,~

118,750,5 It

1,198,921.30

82,.785,516

7.4 Mlturily groupingof deposlls I odothe<ICtOU nts

Repa~a ble

on demand;

Rep~able

within 1 month;
Over 1 month but within 6 month,;
Over 6 months bUI wllhln 1 ~ear;

Over 1 ~e.r but within 5 yea",;

Over 5 ~ea", but

~hln

10 ~ea",;

i_I
8

OIhKUlblllIl..

DDDC
118,750,519

P14,808.9'I

Accrued tnrerest
upon proceeds ,u,pense
Interest Suspense Account
Tax deducted at 'OUKe & pa~able
Sranch AdJu<lment

1,198,921.30

82,.785,516

640,142
24,130,956
69,782
.7,288
721,654,0<7

13,416.19
(7,714.31)
47,414.31
5,215.88
14.G6
5B,346.14

929,113
(534-216)
3.2S3,441
361,.1.00
974
4,040,512

9,.70.70
349,470.76
1,01060
395.19
10,451,180.70
10,811,327.95

746,522,195

5,I04,969.Q8
4,'24,33HO

353,519,109
29.,535,053

12.711,08455
6,169,1.9.08

4'5,978,363

8,3H,lIS8.58

5n,oso,457

9,70<,315.:12

669,~,lI66

9 C<lnllng.onl Ulbltilles
Acceptance & Endorsement
Lette", 01 Oedlt

87l.700,3ll8

Lette" 01 Guarantee

sm, for Collection

Other Conungent Uabtlltle.
iotll

17~,160.56

1,223,1~19

1,97 3,623~ 17

10 Inleresllncome

Interest on Advance,
Interest on Mone~ at call and short Notice
Call Lending and Fund Plaoement with banks
Accounts with Foreign Ban'"

i_I
11 Commission' fees, Exdtange Elmir>g56 Brokerage

563,377.66

39,013,903

=:J

Commission' Fee Income

Exchangegain in<ludioggain form foreign currency
dealing. Brokerage
12 0IhK Op<orlllng lnoom.

D L LJL

i_I

Poot. ge charge recoverles

Swift charge recovertes
Other fee.

i_I

6a1S2~01

68, t 52,501

984,151.6'1

18,633.33

1,2!ilO,358

62,336,!ilO!il

1-'1 Cash Rea!lved from OIh.. OpenItlng Acllvltles

Commission, uchange & Brokerage
Other Operating Income

i_I

984,151.64
18,63333
1,002,78"-97

4611
270.619:

18h86~741
18,686,274

- - -624.728
665,630

!ilOO,171.97 1

52,642,104

270,619.46

9
,021.34
9,611:99

Office operatin g Expense,

162,385.29

68,151,501
1,290,358
69,442,859

423,271.761

29,226,915 1

15 Cash PlkllorOlllarOp<oratlngAClIvIll..
Office 0P eratlng expense,

16

r -!ilOO,171.97 !I- -

62,336,tOl1

- -423,27 1.76

I!

29.226,915

General
16.1 Fi~ed As,ets of this unit are appearing in the books of the main operation of the bank and depreciation is also charged to Profit & Loss Atcount of the
main operation of the ban k.
16.2 Assets and lIabllltie. have bee converted into Taka Currency@U5$ 1 ~ Tk, 69.25, GBP~110,05718,Euro ~ 99.1065 (2008: U. $ 1 ~ T1< 69.05l whleh
represents the year end mid rate of exchange as at 31 December 2009.
16.3 Previous years figures have been rearranged, where considered necessary, to conform to current year's presentation.

141

Mr. Khondker Fazle Rashid

ManagingDirector
Mr.TanweerRahim
Deputy ManagingDirector-Business Banking
Mr. KaiserTamizAmin
Deputy ManagingDirector-Operations
Mr. NeazMohammad Khan
Deputy ManagingDirector-Risk Management

z
o
u
w

LL
LL

o
o
u.J
I

Mr. Muhammad Mustafa HaikaIHashml

SEVP & Head, CreditCompliance & Administration Division, HeadOffice
Mr. Arham Masudul Huq
EVP & CompanySecretary
Ms.Shamshad Begum
PrincipaL Dhaka BankTraining Institute
Mr. Md. MujibuI Quader
SVP. Legal & Recovery (Legal), Head Office
Mr. S.A.F.A. Musabbir
SVp' Legal & Recovery (Corporate Recovery), HeadOffice
Mr. Md. Fakhrullslam
SVP & Head, OperationsDivision, Head Office
Mr. Andre KemalRahim
VP & In-charge, Reconciliation Unit,HeadOffice
Ms.AIkona Kahir Choudhuri
VP & Head, Human Resources Division, Head Office
Mr. ShahAzlzuI Islam
VP & In-charge, Retail Banking Division. Head Office
Mr. Md. ShahadatHossain
VP & In-Charge, CreditOperations. Head Office
Mr. DarashikoKhasru
VP & Head. Finance & AccountsDivision, HeadOffice
Mr. J Q M Habibullah
SAVP. Board Secretariat. HeadOffice
Mr. SyedFalsaI Omar
SAVP & In-charge, GlobalTrade Services, Head Office
Mr. Md. ShaukatAli Khan
SAVP & In-charge, SME Unit,HeadOffice
Mr. A. K.M. AhsanKahir
FAVP & In-charge, InternalControl & Compliance Division, HeadOffice
Mr. Saiful Momin
FAVP & In-charge, ITDivision, Head Office
Mr. FarukAhmed
FAVP & In-charge, epc -Trade Operations, Head Office
Mr. ShaikhAltaf Mahmood
FAVP & In-charge, Monitoring Unit,HeadOffice
Mr. Md. Mesbah Uddin Ahmed
FAVP & In-charge, Syndications & Structured Finance Unit, Head Office
Mr. KamruI Azjz Nippon
AVP & In-charge, Capital MarketServices Division, Head Office
Mr. Zia Uddin Ahmed
ChiefEngineer
Mr. K. M. Faisal Faruqui
SPO & In-charge, Treasury Division, HeadOffice
Mr. KaziSohelAhmed
SO & In-charge, General Services Division, HeadOffice

142

STOF

143

E UTIV S

designation wise

Staff Name

Designation

Branch

Khondker Fazle Rashid

ManagingDirector

HeadOffice

Tanweer Rahim

Deputy ManagingDirector

HeadOffice

Kaiser TamizAmin

Deputy ManagingDirector

HeadOffice

NeazMohammad Khan

Deputy ManagingDirector

HeadOffice

Muhammad Mustafa Haikal Hashrni

Senior Executive VicePresident

HeadOffice

Arham Masudul Huq

Executive VicePresident

HeadOffice

Khan ShahadatHossain

Executive VicePresident

Banani Branch

M. ShulaurRahman

Executive VicePresident

Foreign Exchange Branch

Emranul Huq

Executive VicePresident

Local Office

Md. Sirajul Hoque

Executive VicePresident

RegionalOftke-Chinagong

Md. ShakirAmin Chowdhury

Executive VicePresident

Gulshan Branch

Mrs. Shamshad Begum

Principal (DBTI)

HeadOffice

Mostaque Ahmed Khan

Senior VicePresident

Dhanmondi Branch

Md. FakhrulIslam

Senior VicePresident

HeadOffice

Md. Mujibul Quader

Senior VicePresident

HeadOffice
HeadOffice

S.A.F.A. Musabbir

Senior VicePresident

Md. Muhibbul Abrar Choudhury

Senior VicePresident

Agrabad Branch

Md. Mozammal Hoque Chowdhury

Senior VicePresident

Khatunganj Branch

Md. ShahadatHossain

VicePresident

HeadOffice

Md. Mostaque Ahmed Karwan

VicePresident

Bazar Branch

Nurul Arshad Chowdhury

VicePresident

CDAAvenue Branch

SyedAbdul Quader

VicePresident

Islamic Banking Br. Motijheel

Aftab Ahmed Chowdhury

VicePresident

Mirpur Branch

Md. TIpu Sultan

VicePresident

Imamganj Branch

Manik Lal Biswas

VicePresident

Local Office

DarashlkoKhasru

VicePresident

HeadOffice

Sheikh Abdul Sakir

VicePresident

Local Office

Shabbir Ahmed

VicePresident

Baridhara Branch

SyedAhsanur Reza

VicePresident

Laldighirpar Branch

Md. Munzoor Mur:sheed

VicePresident

HeadOffice

Saimur Pervez

VicePresident

Narayanganj Branch

Mukarram HossainChowdhury

VicePresident

Gulshan Branch

Alkona Kabir Choudhuri

VicePresident

HeadOffice

ShahAzizul Islam

VicePresident

HeadOffice

Andre KemalRahim

VicePresident

HeadOffice

Abdul Malek Howlader

Senior Assistant VicePresident

Madhabdi Bazar Branch

JubileeRoad Branch

Iqbal Parvez Chowdhury

Senior Assistant VicePresident

Md. Zlaur Rahman

Senior Assistant VicePresident

Uttara Branch

Md. Shaukat Ali Khan

Senior Assistant VicePresident

HeadOffice

KaziArIf-ur Rahman

Senior Assistant VicePresident

Amin Bazar Branch

Akhlaqur Rahman

Senior Assistant VicePresident

Gulshan Branch

Mirza Ismail Hossen

Senior Assistant VicePresident

Dhanmondi Branch

KaziZafar Hasan

Senior Assistant VICe President

Bangshal Branch

Staff Name

Designation

Branch

Chowdhury NazmuIAhsan

SeniorAssistant VicePresident

Banani Branch

Md. Shahadat Hossain

SeniorAssistant VicePresident

lslernpurBranch

Zinnat Sultana

SeniorAssista nt VicePresident

Foreign Exchange Branch

Md. Ahsanullah

Senior Assistant VicePresident

Local Office

A.T. M. Monzurul Hoque

Senior Asststa nt VicePresident

Imamganj Branch

D.A.N.M. Mostafizur Rahman

Senior Asststa nt VicePresident

HeadOffice

Md.Wahldur Rahman Chowdhury

Senior Asststa nt VicePresident

HeadOffice

SyedMafiz Uddin Ahmed

Senior Assistant VicePresident

Halishahar Branch

S.M. Mohammad Ali

Senior Assistant VicePresident

Khatunganj Branch

Md. Shaminoor Rahman

Senior Assistant VicePresident

Fantasy Kingdom Branch

ImranAhmed

Senior Assistant VicePresident

HeadOffice

Md.Jahir Uddin Ferdous

Senior Assistant VicePresident

HeadOffice

SyedFaisal Ornar

SeniorAssistant VicePresident

HeadOffice

Md. MazharullsJam

SeniorAssistant VicePresident

ComillaBranch

J Q M HabibuIIah

SeniorAssista nt VicePresident

HeadOffice

Md. AbuI Hasnat

Senior Assistant VicePresident

HeadOffice

Md.AbuSIna

Senior Asststa nt VicePresident

Bogra Branch

Mohammad Sirajul Islam

First Asst. VicePresident

Hathazari Branch

Md. Mesbah Uddin Ahmed

First Asst. VicePresident

HeadOffice

Mohammed EmtlazUddin

First Asst. VicePresident

HeadOffice

Chowdhury Sherlaman

First Asst. VicePresident

HeadOffice

Saiful Momin

First Asst. VicePresident

HeadOffice

Md. Abu SufianTalukdar

First Asst. VicePresident

Savar Branch

FarukAhmed

FirstAsst. VicePresident

HeadOffice

Abu TaharMlah

First Asst. VicePresident

RegionalOffice-Chittagong

Parvez Rifat Ahmed

First Asst. VicePresident

Agrabad Branch

Tahera Begum

First Asst. VicePresident

CDA AvenueBranch

Mesbah Uddin Kutubi

First Asst. VicePresident

Agrabad Branch

Md. Aminur Rahman

First Asst. VicePresident

Konabari Branch

Ismat Ara

First Asst. VicePresident

Dhanmondi Branch

Md. Fakhrul Abedln

First Asst. VicePresident

HeadOffice

SyedAshraful Alam

First Asst. VicePresident

HeadOffice

Mustafa Husain

First Asst. VicePresident

Board Bazar Branch

SyedAkhlaque Hossain

First Asst. VicePresident

Narayanganj Branch

AKM. AhsanKabir

First Asst. VicePresident

HeadOffice

Harunur Rashid Bhuiyan

FirstAsst. VicePresident

HeadOffice

Mohammad MokhIesuzzamanKhan

First Asst. VicePresident

HeadOffice

Fazle Ahmed Rabbi

First Asst. VicePresident

Moulvibazar Branch

Mohammad Zakir Hossain

First Asst. VicePresident

Baridhara Branch

ShaIkhSohallKhurshid

First Asst. VicePresident

Foreign Exchange Branch

Md. ZahiduI Kabir

First Asst. VicePresident

Pagla Branch

MIr SaIdulIslam

First Asst. VicePresident

Karwan Bazar Branch

ShaIkhAltafMahmood

First Asst. VicePresident

HeadOffice

Muhammad Sahel ShahriarAkhand

First Asst. VicePresident

HeadOffice

Mohammad Siddiqur Rahman

Assi stant VicePresiden t

IslampurBranch

144

145

Staff Name

Designation

Md. Mohibullah Khan

Assistant VicePresident

Local Office

Branch

K.B.M. IsmailChowdhury

Assistant VicePresident

Islamic Banking Br. Agrabad

Md. Maksumul Ahmed

Asststa nt VicePresident

ImamganjBranch

Md. Azad UddIn

Assistant VicePresident

Uposhahar

Md. Kamrul HassanTalukder

Assistant VicePresident

Local Office

Md. Abdul Muhyemen

Assistant VicePresident

Local Office
HeadOffice

Kamrul Azjz Nippon

Assistant VicePresident

Monirul Islam

Assistant VicePresident

B.B. Road Branch

Md. Altamas

Assistant VicePresident

Moghbazar Branch

Mehreen Islam

Assistant VicePresident

Uttara Branch

A.S.M. Kamrul Huda

Assistant VicePresident

Karwan Bazar Branch

Md. Mesbahuddin Ahmed

Assistant VicePresident

HeadOffice

Rashed Imam

Assistant VicePresident

Islamic Banking Br. - Motijheel

A.N.M. Z3hed

Assistant VicePresident

HeadOffice

Zashimul Alam Chowdhury

Asststa nt VicePresident

JubileeRoad Branch

Afroza Akhter

Assistant VicePresident

Gulshan Branch

Krishna Bandhu Nath

Assistant VicePresident

Local Office

Md. ShahJahan

Assistant VicePresident

HeadOffice

Mohammad Headayetul Kahir

Assistant VicePresident

HeadOffice

Zahedul Matln

Assistant VicePresident

Uttara Branch

Md. Shahinur Rahman

Assistant VicePresident

HeadOffice

RetantlTalukder

Assistant VicePresident

HeadOffice

MohammadAIi

Assistant VicePresident

HeadOffice

Nazmul Arefin

Assistant VicePresident

Banani Branch

AHMMorshed

Assistant VicePresident

EPZ Branch

Khan Md. Moshiur Rahman

Assistant VicePresident

Banani Branch

Md. Badiul Alam

Asststa nt VicePresident

Cox's Bazar Branch

Mr. Zia Uddin Ahmed

ChiefEngineer

HeadOffice

LOCAL OFFICE

EPIBRANCH
Zone ServIce Building,Room # 51,DEPl,
Ganakbarl, Savar, Dhaka
Phone:7701671 -72,Fax: 7701672
E-malI:depz@dhakabank.com.bd

;:

AdamjeeCourt (GF)
115-120 Motljheel CIA,Dhaka-I 000
Phone:957113B, 955:65:92-3,955:6587
Fax: 95:5:65:83
E-mal!:local@dhakabank.com.bd

NGSHAlB

a:
I-

FANTASY KI GDOM BRANCH

CH

88 Shaheed SyedNazrulIslam Sharani

1st & 2nd Floor,Bangshal, Dhaka-1100
Phone:7113748,7110463, 717S275,
Fax: 95584S1
E-malI:bangshal@dhakabank.com.bd

BANANIBRANCH

Banani,Dhaka-1213
Phone:9881582,9882324-5, Fax: 8B13349
E-mail: banani@dhakabank.com.bd

IMAMGONJ BRANCH

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73/B KemalAtaturk Avenue,

1lmamgonj lane,lmamgonj Bazar.Dhaka

Phone:7314032,7314136,7318031,
Fax:731413S
E-malI:Imamgonj@dhakabank.com.bd

ISLAMPUR BRANCH
6-7lslampur Road,lslampur,Dhaka-1100
Phone:7392942,7393980-81
Fax: 7392942
Telex: 0642435,E-mal!:
Islampur@dhakabank.com.bd

FOREIGN EXCHANGE BRANCH

BimanBhaban(lst Floor)
100Motijheel CIA,Dhaka-l000
Phone:9554S14,7169282,9571 006-1 0
Fax: 7169328
E-malI:fex@dhakabank.com.bd

UnAKA BRANCH
House # 1,Road # 13,Sector # 1
Uttara,Dhaka-1230
Phone:8919742,8919947-8, 89S1788
Fax:8919742,8951755
E-mail: uttara@dhakabilnk.com.bd

DHANMONDI BRANCH
House # SOD, Road # 7,Dhanmondi RIA,Dhaka
Phone:911537,8121097, Fax: 8624489
E-mail:dhanmondi@dhakabank.com.bd

KARWAN BAZAR BRANQI

Summit Centre (l st floor)
18 Karwan Bazar, Dhaka-1215
Phone: 8119025,9118001,9134323
Fax: 8125764
E-malI:karwanbazardhakabank.com.bd

AMIN BAZAR BRANCH

Market Complex (tst floor)
Amin Bazar JameMosque
780 Begun BariUnion,Amin Bazar,Savar, Dhaka
Phone:01711-619440, 9008998,Fax: 9008998
E-mal!:aminbazar@dhakabank.com,bd

Chowdhury Plaza, Jarnqara, Savar, Dhaka

Phone:7790711 -2,Fax: 7702712
E-malI: fkingdom@dhakabank.com.bd

ISLAMIC BANKING BRANCH, MOTUHEEL

Sara Tower (1st floor), 111AToyenbee
Circular Road, Motijheel CIA,Dhaka
Phone:7160913-5, 9567815,9569033
Fax: 7160912
E-malI:ibbsara@dhakabank.com.bd

GULSHANB

CH

Plot # 7,Block # SE (D),Holding # 24

GulshanAvenue.Gulshan-t, Dhaka-1212
Phone:8825113,8816442,9897431
Fax:9881026
E-mal!:gulshan@dhakabank.com.bd

OGHBAZAR BRANCH
70 Outer Circular Road(1st & 2nd Floor)
Moghbazar,Dhaka
Phone:8331945-7,01713-453234
Fax:8331948
E-mail: moghbazardhakabank.com.bd

BARIDH RA BRANCH
House # 27,Block - K
Shaheed ShuhrawardiAvenue
Baridhara, Dhaka.
Phone: 8832063-Q4,01713-451972, Fax: 8832068
E-mail:baridhara@dhakabank.com.bd

BOARD BAZAR BRANCH

Dag No.361,Muza No.84,Board8azar, Gazipur

Phone: 9293595-6, 01713-082193, Fax: 9293595
E-mail:boardbazardhakabank.com.bd

KONABARI BRANCH
Plot # 146/147 (tsr Floor),BSCIC
Konabari,Gazlpur
Phone:9298701,E-mail:
konabarI@dhakabank,com,bd

NARAYANGANJBRANCH
26-29,S.M. Maleh Road, Tanbazar, Narayanganj
Phone:9750300,9750400,7630427
Fax: 7630429, 9755750,Telex:633621
E-mail:narayanganj@dhakabank.com.bd

JOYPARA BRANOI
Munshi SuperMarket (1st Floor)
1083,Joypara,Dohar,Dhaka
Phone: 03894680012, Fax:8806223-87427
E-malI:dohardhakabank.com.bd

MADHABDI BAZAR BRANCH

8 BankRoad, Madhabdi Bazar, Narshingdi
Phone:0717-564923,05257-68Q-81, Fax:0625756680,88069351214
E-mal!:madhabdI@dhakabank.com,bd

146

BELKUCHI BRA CH

ISLAMIC BANKING BRA CH,AGRABAD

Jamuna Shopping Complex,

Mukundagantl Bazar, Belkuchi, Sirajganj
Phone:07522-56280,56428, Fax: 07522-56280
E-mail: belkuchi@dhakabank.com.bd

SadharanBimaSadan(Ground Floor)
102Agrabad CIA,Chittagong
Fax: 031-713393, E-mail:
ibb.agrabad@dhakabank.com.bd

LALDIGHIRPAR BRANCH

CDA AVENUE BRANCH

960 Laldighirpar,P.S. Kotwali,Sylhet

Phone:0821-721116-19,Fax:0821-721120
E-mail: laldighirpar@dhakabank.com.bd

565/A,CDA Avenue,
East Nasirabad, Chittagong
Phone:031-2850950-52, Fax: 031-2850953
E-mail;cdaavenue@dhakabank.com.bd

GOA

AZAR BRANCH

Rahman Complex (1st Floor),Goalabazar;

Osmaninagar, Sylhet
Phone:08242-56707, 01713-120427
Fax: 08242-5671 0
E-mail: goalabazar@dhakabank.com.bd

BSROAD BRANCH

MOULVIBAZA BRA CH

J &G Shopping Complex (1st Floor)

NazirhatRoad, Hathazari,Chittagong
Phone:031-2601528, 01713-453235
Fax: 031-2601529
E-mail: hathazari@dhakabank.com.bd

12788 Road, Narayanganj

Phone:7646668,7646658, Fax: 7630017
E-mail;bbroad@dhakabank.com.bd

HATHAZARI BRANCH
S.R.Plaza (1 st floor), 1151/3 M Saifur Rahman
Road, Paschim Bazar, Moulvibazar-32oo
Phone:0661-62173-74, Fax: 0661-62175
E-mail: moulvibazar@dhakabank.com.bd

OGRA8RA CH
KazI NazrulIslam Road,Jawtola, Bogra
Phone:OS1-69814,69813,01713-066330
Fax: 051-69815
E-mail: bogra@dhakabank.com.bd

RAJSHAHI B

CH

73 Gonok Para, ShahebBazar, Rajshahl

Phone:0721-812330-31,0713-066250
Fax: 0721-812331
E-mail: rajshahi@dhakabank.com.bd

COX'S AZAR BRANOI

RakshitMarket (1st Floor),Main Road
Laldighirpar,Cox'sBazar
Phone:0341-63931,51015, Fax.: 0341-63164
E-mail: coxsbazardhakabank.com.bd

SONAI URI R NCH

TofaelShopping Mall
Sonaimori Bazar, Noakhali
Phone: 01713-()61180,01199-811267, 06074476194
Fax:880602218035, Email:
sonaimuri@dhakabanlr..com.bd

RANGPUR BRANCH
Moti Plaza (1st Floor),Station Road, Rangpur
Phone:0521-61494, 01713-202662
Fax:0521-61494
E-mail: rangpur@dhakabank.com.bd

5 IDPUR BRANCH
ShaheedDr.Zikrul Haque Road
Saidpur,Nilphamari
Phone:0552-672952, Fax.: 0552-672952
E-mail: saidpur@dhakabank.l;om.bd

SATKHJRA BRANOI
Plot No.12266-12268, Bara Bazar
Thana Road, SatkhiraSadar, Satkhira
Phone:0471-63647,01713-120429
Fax: 0471-63647
E-mail: satkhira@dhakabank.com.bd

FENIBRANCH
City Plaza, 132S.S.K.Road, Feni

Phone:0331-63541, Fax:0331-63542
E-mail: feni@dhakabankcom.bd

KERANIGANJ BRANCH

AG

BRA CH

Chamber House,38 Agrabad CIA,Chittagong

Phone:031-2523420-2, Fax: 031-814871
E-mail: agrabad@dhakabank.com.bd

KhanPlaza (1 st Floor), Shaheed DelwarHossain

Road, East Aganagar, Keraniganj, Dhaka-1310
Phone:0666r2607312,0171~1846

E-mail: keraniganj@dhakabank.com.bd

KHATUNGANJ BRANCH

UPOSHOHOR BRANCH

292-293 Khatunganj Road,

Khatunganj,Chittagong
Phone:031-622132-3
Fax: 031-622130, Telex: 633063
E-mail: khatunganj@dhakabank.com.bd

House #10,Road #32, Block #D, Upcshohor, 5ylhet

Phone:2831780, 2831781,06669080080
Fax: 776225
E-mail;uposhahar@dhakabank.com.bd

SAVAR BAZAR BRANCH

JUBILEE ROAD BRANCH

147

183 Jubilee Road, Chittagong

Phone;031-630183-86
Fax: 031-630187, Telex: 633046
E-mail: jubilee@dhakabank.com.bd

Alam Plaza (1 st Floor),122 Jaleshwar

Sayar Bazar BusStand,5avar, Dhaka
Phone:7743435, 0666-23030B5
Fax.: 7743436
E-mail: savar@dhakabank.com.bd

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PAGLA BAZAR BRA CH

BHULTA BRANCH

Alhaj AfsarUddin Karim Bhaban(1st Floor)

PaglaBazar, Fatullah,Narayanganj
Phone:7681288,7681299, Fax: 7681289
E-mail: paglabazar@dhakabank.com.bd

1st Floor,Noor Mansion Market

GolakandaiI,P.O- Bhulta
Thana- Rupgonj,Narayangonj.

PATIVA BRANCH
MIRPUR BRANCH
1st and 2nd floor, Plot No.-Ql
RoadNo.-Q5, Block-A,Section-lO,
Thana-Mlrpur,Ward NO.-3
Dhaka City Corporation, Dhaka-1216.

1st Floor,AS RahatAll High SchoolMarket,

ThanaRoad, Patlya, Chittagong.

COMILLA BRANCH
1st Floor,20,KandirparMoor,Camilla.

KDA AVENUE BRANCH

HA1.ISHAHAR BRANCH

Ground & 1st Floor

2B,KDAAvenue,Khulna

1st Floor,14/A,Block- G,Port Connecting Road

HalishaharHousing Estate,Chittagong

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SME SERVICE CENTER

UTfARA BRANCH

CEPZ:
Zone ServiceComplex"CEPl,South
Hallshahar, Chittagong
Phone:031 -741613-4,01714-111672,06663041741
Fax:031-741614
E-mail:cepz@dhakabank.com.bd

HouseItl, RoadIt13,Sector #1
Uttara,Dhaka-1230
Phone:8951788,01813-658133, 06662609520
Fax:88028951755, E-mail:

GORAN

DHAKA STOCK EXCHANGE BRANCH

179North Goran (1st Floor),

PO& PS Khilgaon,Dhaka-1219
Phone:01730-097259, 06662303067

Dhaka Stock Exchange Annex Building

WEMotljheel CIA,Dhaka-1000
Phone:7168184,7165094,7164684
Fax:8802 7168019
E-mail:helpde5k.cms@dhakabank.com.bd

USINESS CENTER:

helpdesk.cmssidhakabankcom.bd

NEWMARKET

DHANMONDI BRANCH

Shop 189,Dhaka New Market,Dhaka-1219

Phone:01730-097257

House #20,Road#7
Dhanmondi RIA,Dhaka-1205
Phone:0666260731 0,9122278,8124997
Fax: 88 02 8624480
E-mail:helpdeskcms@dhakabankcom.bd

eMS

OKERAGEHOUS~

DAMJEE COURT
1st Floor,115-120 Motijheel CIA, Dhaka-l 000
Phone: 9570905,9553113,9553104,9553136,9553518
Fax: 8802 9570132,E-mail:
helpdesk.cms@dhakabank.com.bd

AGRABAD BRANCH
Chamber House,38 Agrabad CIA,Chittagong
Phone: 0666 30417,031 2515996-7,01711-384901
E-mail:helpdeskcms@dhakabankcom.bd

148

EVE TS

OFTHEYEAR

Oh

Bank Foun

rim Minister's

ue don

"f Fu

Dhaka Bank Foundation donated Tk, 25 Lac to

Prime Minister's Relief Fund for bereaved family
members of the Army Officers martyred the recent
carnage at BDR Head quarter, Peelkhana, Dhaka on
March 10, 2009. The donation was formally handed
over to Sheikh Haslna, Prime Minister, Government
of the People's Republic of Bangladesh at her office .

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~

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B n Fou d Ion don

m Mlnlst r's

9.6

C 0

I f un

Dhaka Bank Foundat ion donated Tk.9.6 Lac to

Prime Minister's Relief Fund for bereaved family
members of Two Army Officers martyred during the
carnage at BDR Head quarter, Peelkhana, Dhaka on
April 1, 2009. The donation was formally handed
over to Sheikh Hasina, Prime Minister , Government
of the People's Republic of Bangladesh at her office.

-I-J

co

L-

D-

o Ambul nc
gl

Prim Min s r or

esh ponce

Dhaka Bank donated two Highway Ambulance to

Bangladesh Police Mr. Altaf Hossain Sarker, Chairman,
Mr. ATM Hayatuzzaman Khan, former chairman, Mr.
Khondker Fazle Rashid, Managing Director handed
over the keys of the ambulance to Prime Minister
SheikhHasina at her office on august 9. 2009.

150

Dh.

on t d TkO l e o Pr m
Ii fFundforCycion Ail Victim

Dhaka Bank Limited donated Tk.TG Lac to the

Prime Minister's Relief Fund for

post Cyclone

rehabilitation program for Cyclone Aila victim.

ResadurRahmab, Director, Dhaka Bank Limited and
Chairman, Executive Committee of Dhaka Bank
Foundation handed over to Prime Minister Sheikh
Hasina at Dhaka.

.-

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Fa n

10 do

Tak

oQ.

eto

IRDE
Dhaka Bank has provided Tk, 24 lac as donation in

V)

the year 2009to Kidney transplant Unit of Bangladesh

CLJ

-.-to

Institute if Research and Rehabilitation in diabetes,

!l...-

Endocrine& Metabolic Disorder (BIRD EM) as a gesture

of humanitarian consideration for the treatment of
the financially insolvent persons. Altaf Hossain Sarker

Chairman, Dhaka Bank Limited formally handed over

this donation to Professor A K Azad Khan, President,

Diabetic Association of Bangladesh on July 12, 2009 at

'"CLJ

BI RDEM ConferenceCenter.

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Dh k

oQ.

B nk 2 th

Champions hi 20 9
The Dhaka Bank 25th National Junior Athletic
Championship 2009

was concluded

at the

Bangabandhu National stadium, Dhaka on May

10, 2009 Mr Altaf Hossain Sarker, Chairman, of
Dhaka Bank Limited was present on the occation
as Chief Guest and distributed prizes among the
winners. among others, Mr. ATM Hayatuzzaman
Khan President, Bangladesh athletic Federation,
Mr. Khondker Fazle Rashed, Managing Director,
Mr. Arham Masudul Huq, Company Secretary.

151

!o......

B n Faun atlen don ted T k 24

Dh

ca

CWCH
To mitigate suffering of the poor women and
children of the country, Dhaka Bank Foundation
has provided Tk. 24 Lac. in the year 2009 to center
Women and Child Health (CWCH) as bear their
operational cost.

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~

ttl

oVI
GJ

Dh lea

nk 23rd B ngl desh Intern.tlcn I

Junia Tennl

eh

mplanshl

Contribution to Bangladeshtennis Federation (BTF)

as sponsorship of 23rd Bangladesh International
junior Tennis championships 2009.

4-'

CO

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ll.......

Oil k

"91

3rd

AHf CUP Wlnn r

h Hock

Dhaka Bank Feliciated Bangladesh National Hockey

Team for

Winnin the 3rd AHF Cup Hockey

Championship Trophy 2008 held in Singapore. In

this connection a reception was held at Dhaka
Club. Honorable state Minister fir Youth & sports
Mr. Ahad Ali Sarkerwas present on the occasion as
Chlef Guest.

152

Mirpur Branch
Mr.AltafHossain Sarker; Chairman of
Dhaka Banklimited formally inaugUrated
the MirpurBranch 1st and 2nd floor, Plot
nO.-01, Road nO.-05, Section -10, Mirpur,

Dhaka.

Patiya Branch

MOham~a

d HanifVke chairman of
Mr.
. to' allyinaugurated
Dhaka BanklimIted r~ A S Rahat ali
the
Patiya
Bra,nMch
Patiya,
High
Schoo
arkatet,,
Chittagong.

~a~~rRO~d,

Halishahar Banch
and former
Mr Abdul Hai Sarker, Director
.
fDhaka Bank limited formally
chairman 0
Halishahar Branch
inaugurated the k G Port Connectmg

~t

14/A,1st floo~, blohc

Road,Halisha ar

~~using Estate,

Chittagong.

Bhulta Branch
Managing
Ie Rashid,
formally
KhondkarFat.Bank Limited 1st floor,
Mr.
f Dhaka
nch at
.
Director
0
he Bhulta BraGolakandilll,
gurated
t. Market,
on].
inau
ManSion . Narayang
Noor
UpgonJ,
Bhulta,r

153

comi"aBranch
Mr. K'nOnd\<.a r fa'1le Rashid,Managing
ited
Director of Dha'K3 8an\<.lirn nch
formally
Inaugurated the coroi\la Bril
{loor, 20, Kandirpa[

at 1st

MOOT, comi\la.

central Processing Center

~r. Khondkar Fazle Rashid,Managing
. DIrector of DhakaBank Umited formally
Inaugurated the central Processing Center
~ Limited at BGMEA Bhab a~
of Dhaka Bank
""rwan Bazar,Dhaka.

Jubilee Road SME ServlceCe

t
M',Abdul
Sark
'
n er

H.,

aJuab~ank Limited fo~:~I~

chairman of Dh
inaugurated the

er,DIrector and f

Center at 6 Jubil
eeRoad(l
Road st
SME
, I ee
FI ServlIce
Chlttaqonq,
oor),

ShewraparaSME Service C
Mr. Khondk
enter

"
arF I
.D irector of
az e Rashid

InaugUrated~~:~hBank
Limit~~~~;ing
Center at F'
ewrapara SM maJly
Shewr rrst floor, Plot N

EService

apara,Mirpur, Dh~k~~36,

154

MEE ING

Directors Present on 14th Annual General Meeting

syndications & s r

c
.,

Caption ofthe Photos

per til n m :

A 3S MW power plant of Malancha Holdings Limited

at Dhaka EPZ under syndication financing arranged
by Dhaka Bank limited including financing from
Investment Promotion and Financing Facility (lPFF) of
Bangladesh Bank,a World Bank financed project.

155

uratiO n of
1 Project \naug . 't d at
.
siteUI'l'\ e
,'\kbar Compo nsing h under
.
Bhaluka,Myme.
syndication FinanCIng k
d by Dhaka Ban
arrange
Limited.

2 power Plant of Doreen power

House & Technologies limited
at Mohipal, Feni under
Syndication Financing
arranged by Ohak.a Bank
limited.

.".,

V1

co
Cf)

c. -o

3. Production going on at Faisal

Spinning Mills Limited at
Saiham Nagar, Noyapara,
Hobigonj under Syndication
Financing arranged by Dhaka
Bank Limited.

ro

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.-

-0

4. Implementation going on at
the Paper Project of Creative
Paper Mills Limited at Rupshi,
Narayanganj under
Syndication Financing
arranged by Dhaka Bank
Limited.

156

RECOGNITION

Dh

ICAH N tion I Aw rd.s

Mr. Khondker Fazle Rashid, Managing Director of

Dhaka Bank Limited, receiving the "Certificate of
Merit" of ICAB National Awards-200B on behalf of the
Bank from Commerce Minister Mr. Muhammad Faruk
Khan,MP atthe Dhaka SheratonHotel recently.

nc Aw rds 2009

Dhl!

Mr. Khondker Fazle Rashid, Managing Director of

Dhaka Bank Limited, received Bangladesh remittance
Awards -2009 for his outstanding contribution in the
field of remittance collection through banki9ng
channel. Finance Minister Abul Mal Abdul Muhith
handed over the award as chief guest on the
occasion of first Bangladesh Remittance fair held at
Dhopa Dighir purdopar at Sylhet.

ssocl tlon

elicit t s

Bangladesh Olympic Association felicitated its

sponsors for

their contribution towards the

development of sports at a felicitation ceremony

held at the national sports Council Tower Auditorium.
President of Bangladesh Olympic Association and
chief of acknowledgement for sponsor to Mr. Altaf
Hossain, Chairman,Dhaka Banklimited.

157

TRIN/NG

Dh

lea Ban

Arran ed II Workshop in UCPDC600

On June 13,2009,Dhaka BankTraining Institute arranged

a daylong Workshop on UCPDC 600 at the institute at
Motijheel. Dhaka,where twenty-eight Officers/Executives
from different branches and divisions of Head Office of
Dhaka Bank limited attended. The about the
implications of the articles of UCPDC 600 for effective
management of international trade payment and
finance.
Mr. Khondker Fazle Rashid, Managing Director of Dhaka
Bank limited inaugurated the program as Chief Guest
where Mr. Mohammad Abu Musa, Deputy Managing
Director attended the program as SpecialGuest.

Dh ka B nk St rts Found tlon Tr Inlng for

nken Cours 19th B tch

Recently Dhaka Bank Training Institute has starts a
ten-day Foundation Training Program for Bankers at
the institute at Motijheel, Dhaka.Thirty-Seven officers
from different branches and Head Office of Dhaka
Bank limited will attend the program . Mr. Khondker
Fazle Rashid, Managing Director of Dhaka Bank
limited inaugurated the program asthe Chief Guest.

Dh k B nk ar, n d Tr Inlng Cours on

Prof sslcn I Skill Developm@nt & AntlMon 'I
und ring

Recently Dhaka Bank Training Institute arranged a

daylong workshop on ProfessionalSkill Development
& Anti-Money laundering at Narayanganj Branch,
Narayanganj.Twenty-eight Executives and Officers of
the Branch attended the Workshop. The Principal of
DBTI Mrs. Shamshad Begum conducted the program .
Mr. Saimur Parvez, VP & Manager of the Branch also
spoke of the occasion.

158

Dhaka
nk Arr ng d Tr Inlng Course on
Int m tionalTrad I Fin ncaBc For I "Exch nge

Dhaka Bank Training Institute (DBTIl has arranged a

eight-day long Training Course on International
Trade, Finance & Foreign Exchange from August 10 to
20,2009 at the Institute at Motijheel, Dhaka. Twentysix Officers/Executives from different branches and
Head Office attended the course. The basic purpose
of the course was to develop a group of human
resources from different branches and divisions with
the knowledge, skill & technicalities of global trade
business, finance & foreign exchange.
Mr_ Khondker Fazle Rashid. Managing Director of
Dhaka Bank addressed the valediction session as the
Chief Guest and distributed certificates among the
participants. Ms. Shamshad Begum, Principal of the
Training Institute and representatives from the
participants also spoke in the program.

Dh k

8 nk

Orientation

'. i

rr"g d lJ Tr Inlng Progrllm on

Bal: es of BankIng

Dhaka BankTraining Institute has arranged a two -day

short training course on Orientation & Basics of
Banking recently at the institute at Motijhee/, Dhaka.
Thirty-three neWly recruited officers from different
branches and Head Office of Dhaka Bank limited
have attended the program. The objective of this
short course was to acquaint the participants with
fundamentals of banking towards grooming their
career as a professional banker.
Mr. Khondker Fazle Rashid, Managing Director of
Dhaka Bank limited inaugurated the program as
Chief Guest . Among others, Ms. Shamshad Begum,
Principal of the Training Institute, Mr. Syed Abdul
Quader, VP & Manager of Islamic Banking BranchMotijheel, Mr. lmran Ahmed, SAVP & In-charge of
Internal Control & Compliance Division also attended
and spoke in the program.

159

Biman Bhaban, 100 Motijheel CIA.Dhaka-1 000

Notice of the 15thAnnual General Meeting

Notice is hereby given to all Members of Dhaka Bank Limited that the 15th Annual General Meeting of the Members of
the Company will be held on Sunday Man:h 28,2010 at The Bangabandhu International Conference Centre,
Agargaon, Sher-e-Banglanagar,Dhaka at 11:00 a.rn,to transact the following business:

AGENDA
1.

To receive, consider and adopt the Profit and loss Account of the Company for the year ended 31st December, 2009
and Balance Sheet as of that date together with the reports of the Directors and Auditors thereon.

2.

To declare dividend for the Shareholders out of the profits of the year ended 31st December 2009 as recommended by
the Board of Directors.

3.

To elect/reelect Directors in place of those who shall retire by rotation as per the Articles of Association of the
Company.

4.

To appoint Auditor of the Company for the term until the next Annual General Meeting and to fix their remuneration.

5.

To transact any other business with the permission of the chair.

February 12,2010

By order of the Board

Arham Masudul Huq

Executive Vice President &
Company Secretary

I
NOTES:
a.

The 'Record Date' shall be on Wednesday,March 03,2010.

b.

The Shareholders whose names would appear in the Register of Members of the Company on the Record Date will be
eligible to attend the meeting and qualify for dividend.

c.

A member eligible to attend and vote at the Annual General Meeting may appoint proxy to attend and vote on his/her
behalf. Proxy Form must be affixed with revenue stamp ofTk.l 0.00 and submit at the Registered Office ofthe Company
not later than 48 hours before the time fixed for the Annual General Meeting.

d.

MIs. ACNABIN, Chartered Accountants, the current auditors will retire from office in the 15th AGM.Since they have audited
the accounts of the company for three consecutive years,as such MIs. ACNABIN are not eligible for re-appo intment as per
Bangladesh Bank letter no BCD(P) 748/3-544-561 dated 31.03.1991.Members are requested to send nomination for
appointment of new auditors from the list of audit firms of Bangladesh Bank on or before March 04,2010. Auditors should
not be shareholders ofthe Company.

e.

Election of Directors will be dealt in terms of Articles of Association of the Company and relevant Rules/Circulars in force.

f.

Shareholders and proxies are requested to record their entry in the AGM well in time. No. entry will be recorded after
12.00 noon.

g.

Members are advised to update change of address (if any) through their respective Depository Participant.

OlES

Proxy Form
JfVoIe

of

............................................................................................... being member of Dhaka Bank Limited and entitled to vote, hereby appoint
MrJMs

of

................................................................................................ as my/our proxy to attend and vote on my/our behalf at the 15th Annual
General Meeting of the Company to be held on Sunday March 28, 2010 at Bangabandhu International Conference Centre,
Agargaon, Sher-e-Bangla Nagar, Dhaka at 11:00 a.m,or at any adjournment thereof.
Signed this

day of

, 2010.

Signature of Proxy

..

Signature of Shareholder

BOlD- I

I I I I I I I I I I I I

I I

Folio No

..

No. of Shares

N.B.lmportant
1.

This Proxy Form, duly completed, must be deposited at least 48 hours before the meeting at the Company's Registered
Office. Proxy is invalid if not signed and stamped as explained above.

2.

Signature of the Shareholders should agree with the Specimen Signature registered with the Company.

Attendance Slip
I hereby record my attendance at the 15th Annual General Meeting of the Company being held on Sunday March 28,2010
at Bangabandhu International Conference Centre, Agargaon, Sher-e-Bangla Nagar, Dhaka.
Name of Member! Proxy
BOJD- I I

I I I I I I I I I I I I I

Folio No

Signature

..

Date

N.B.Shareholders attending the meeting in person or by proxy are requested to complete the attendance slip and deposit
the same at the entrance ofthe meeting hall.