Birth Of Bangladesh Development Bank Limited (BDBL)

With the decision of the Government, Bangladesh Development Bank Ltd.(BDBL) was established under the Companies Act,1994 on the 16 november,2009 by merger of former Bangladesh Shilpa Bank(BSB) and Bangladesh Shilpa Rin Sangstha(BSRS), two Development Financial Institutions(DFIs) in the public sector.
Bangladesh Shilpa Bank (1972) Bangladesh Shilpa Rin Sangstha(1972)

Bangladesh Development Bank Limited (BDBL) Est.:

November 16, 2009

Bangladesh Shilpa Bank (BSB) Bangladesh Shilpa Bank (BSB) established in October 31,1972 for accelerating the industrial pace of the country through

providing loans and equity to the industrial projects as per Bangladesh Shilpa Bank ordered, 1972(Presidents Order No 129, of 1972)

Profile of Bangladesh Shilpa Bank(BSB) Name Legal status Shareholding Bangladesh Shilpa Bank Public Limited Company 51% of the authorized capital owned by Government and 49% capital owned by Local or foreign financial institutions. Before turn to BDBL 100% ownership of the bank belongs to the Government. 2,000 million 2,000 million October 31,1972 BSB Bhaban,8 Rajuk Avenue,Dhaka-1000 Development in industrial sector in Bangladesh through loans and equity. Dhaka 09 674

Authorized Capital Paid-Up Capital Formal Inauguration Registered Office Line Of Business

Head Office Directors Total Human Resources Number Of 21 Departments Number Of 05 Divisions Number Of Zonal 03

Offices Number Of Branch Offices

15

Bangladesh Shilpa Rin Sangstha(BSRS): Bangladesh Shilpa Rin Sangstha(BSRS) was also established in October 31,1972 as per Bangladesh Shilpa Rin Sangstha Order,1972 (Presidents Order No.128 of 1972).This bank established to improve industrial condition of Bangladesh by providing loans and equity to the industrial projects, similar to Bangladesh Shilpa Bank.

Bangladesh Development Bank Limited (BDBL):

In order to carry on business activities of BDBL, Bangladesh Bank issued banking license on19/11/2009.

Two vendor assignments were signed on 31 December, 2009 between the Government and the government nomination Board of Directors to acquire and take-over all of their (BSB and BSRS) assets, benefits, rights, power, authorities, privileges, liabilities, borrowings and obligations and to carry on with the same business. As a public limited company, Bangladesh Development Bank Limited (BDBL) formally embarked its journey on 3 January,2009. It extends financial assistance both in local and foreign currencies for setting up industries and provdes all kind of commercial banking services to its customers through its branches in Bangladesh.

The Bangladesh Development Bank Limited (BDBL) inherited membership of Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange Limited (CSE), acts as stock dealer and operates two brokerage houses one at Motijheel and the other at Kerwan Bazar which providing services to investors small and medium. The Bangladesh Development Bank Limited (BDBL) is also managing a close-end Mutual Fund with paid up capital of Tk.5.00 crore.

Corporate Profile of Bangladesh Development Bank Limited (BDBL)

(1) Name Bangladesh Development Bank Limited

(2) (3) (4) (5) (6) (7) (8)

Legal Status Shareholding Authorized Capital Paid-Up Capital

1.1.2010)

Public Limited Company 100% share owned by the Government of Bangladesh. 10,000 million 4,000 millon

Reserve (As on 2,270 million Total Assets

(As on 1.1.2010)

16,747 million Tk.100.00

Face Value per Share Incorporation Date

(9)

November 16,2009

(10) Certification of November 16,2009 Commenceme nt of Business (11) Banking License Obtained (12) Vendors Agreement Signed November 19,2009 issued by Bangladesh Bank December 31, 2009 between the Government and the Board of Directors of BDBL nominated by the Government.

(13) Formal Inauguration (14) Registered Office (15) LINE Of Business

January 3, 2010 BDBL Bhaban,8 Rajuk Avenue, Dhaka. Development Financing and Commercial Banking and Services

(16) Launching of April 2010 Retail Banking (17) Total Human Resources 771

(18) Number Of 04 Zonal Offices (19) Number Of 18 Branch Offices (20) Divisions 08 (21) membership Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.

(22) License issued by Bangladesh Bank as Primary Dealer

April 7,2010

(23) Corporate tax

42.50%

rate (24) Auditors (25) Income Tax Adviser Messers Acnabin and Hoda Vasi Chowdury & Co. K.M. Hasan & Co. Chartered accountant Home Town Apartment 87, New Eskaton (7th & 8th floor), Dhaka-1000. (26) Credit Rating Agency Credit Rating Information & Services Limited (CRISL) Nakshi Hoes (1st,4th & 5th floor) 6/1A, Segun Bagicha, Dhaka-1000. (27) Website www.bdbl.com.bd

Shareholders and Shareholding Structure Of BDBL

Sponsor Shareholders The Government of the Peoples Republic of Bangladesh represented by: Dr. Mohammad Tareque

No. of shares Amount (taka) 3,99,99,994 3,99,99,99400.00

Secretary Finance Division of Ministry of Finance, Government of the Peoples republic of Bangladesh. Individual directors nominated by the Government Mr. Nazem Ahmed Chowdury Chairman of the Board of Directors Prof. Santi Narayan Ghosh Director Me.Dewan Nurul Islam Director 1 (One) 100.00 1 (One) 100.00 1 (One) 100.00

Mr. Niaz Rahim Director Mr. Amalendu Mukherjee Director Mr. Md. Humayun Kabir Director Total:

1 (One)

100.00

1 (One)

100.00

1 (One)

100.00

4,00,00,000

4,000,000,000.00

Total Capital Adequacy of the BDBL

Year

Required Capital

Reserve Capital

Excess Capital

(in crore taka) (in crore taka) (in crore taka) 2009 (BSB & BSRS) 2010(BDBL) As per Basel-2 343.766 1030.95 684.19 400 650.19 250.19

Bangladesh Development Bank Limited. At a glance

Sl no.

Description

Former BDBLS Increase or BSB & Position decrease BSRS as (%) Position December, as on 2010 December, 2009

01.

Deposit

143.00

325.00

127

02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14.

Loans & Advances DSL Paid Balance of DSL Income Expenditure Net Profit Before Tax Loan Sanction Loan Disbursed Recovery of Loan Recovery from Written-Off Loan Balance of WrittenOff Loan Balance of Classified Loan Rate of Classified Loan (Excluding Staff Loan) Balance of Interest in Suspense

1027.00 55.34 316.22 121.00 67.00 53.55 109.84 91.21 106.58 20.65 2437.96 293.20 34.25%

990.47 55.16 261.06 184.51 102.00 82.51 94.33 90.08 170.52 24.64 2387.23 310.17 38.50%

(4) (0.32) (17) 52 52 54 (14) (1) 60 19 (20 6 6

15.

139.36

125.32

(10)

Divisions:
Bangladesh development bank has 8 divisions to operate its official activities. These divisions are i. ii. iii. iv. v. vi. Development Banking Division Commercial Banking Division Administrative & Legal Affairs Division Finance & Account Division Internal Control & Compliance Division Information Technology division a) Economic Recharge b) ICT c) MIS

vii. viii.

Foreign Exchange division Board of Directors Division

Working Departments Number of main working department : 23 Number of Zonal office : 4 Dhaka, Rajshahi, Khulna Chottrogram Number of Branch office : 17 Principal branch, Dhaka Kawran Bazar branch, Dhaka Motijeel branch, Dhaka

Moymansing branch, Moymansing Foridpur branch, Foridpur Rajshahi branch, Rajshahi Bogura branch, Bogura Pabna branch, Pabna Rongpur branch, Rongpur

Dinajpur branch, Dinajpur Khulna branch, Khulna Zinaidoho branch, Zinaidoho Barishal branch, Barishal Chottrogram branch, Chottrogram Comilla branch, Comilla Noakhali branch, Noakhali & Syleth branch, Syleth

VISION of BDBL :

To emerge as the countrys prime Financial Institution for supporting private sector industrial and other projects of great significance to the countrys economic development. Also be active participant in commercial banking by introducing new lines of product and providing excellent services to the customers. So working for the growth of our country to turn it as Digital Bangladesh and participate in commercial banking are the vision of Bangladesh Development Bank Limited.

VALUES of BDBL : Values of Bangladesh Development Bank are -

Customer focus

Provide smart, efficient, transparent and courteous services.

Social Practice corporate social responsibility. Responsibility

MISSION of BDBL : To be competitive with other Banks and Financial Institutions in rendering services ; To contribute to the countrys socio-economic development by identifying new and profitable areas for investment ; To mobilize deposit for productive investment ; To expand branch network in commercially and geographically important places ; To employ quality human resources and enhance their capability through motivation and right type of training at home and abroad. To delegate maximum authority ensuring proper accountability ; To maintain continuous improvement and up-gradation in business policies and procedures ; To adopt and adapt to new technology ; To maximize profit by strong, efficient and prudent financial performance ; and To introduce new product lines according to market needs.

STRATEGIC PRIORITIES of BDBL :

o

Invest in Eco friendly industries that help mitigate environmental degradation by lending more for renewable energy, and effluent treatment plants and other projects that employ energy efficient low-emission technologies including agro-based industries, small power projects, and ICT, transport and infrastructure projects.

Select and invest industrial projects where location advantages like local availability of raw materials, good infrastructural facilities (road communication, transport facilities, etc.) and utilities (power, gas, water, etc.) shall be available.

Limit project loan to Tk. 15 crore maximum and Tk.2 crore minimum (for large projects). Arrange and participate in syndicated loan for projects above Tk. 15 crore.

Identify prospective and potential entrepreneurs and investors/ clients and motivate, guide and help them select profitable industrial venture for investment.

Regularly publish financial disclosures.

Undertake from time to time SWOT (Strength, Weakness, Opportunity and Threats) analysis for reviewing banks market position.

Business Challenges of BDBL : 1) Intense competition in the domestic market 2) Global economy slowdown 3) Stricter capital requirement under Basel ii 4) Sharp rise in the interest rates on deposit 5) Increase business risk

Prospects of BDBL : 1.Diversification of assets portfolios through introducing new lines of products 2.Expansion of branch network 3.Progressive automation

Confidence of BDBL :

1.A spirit of care, concern and consciousness 2.Well-define strategy and targets

Products of the bank :

The bank is always committed to serve the clients with the best values and innovative products and services to enrich its portfolio looking at the clients demands and desires. Development Banking