Annual Report 2016

Partial view of attendance of the Hon'ble Shareholders and Members of the Board of Directors at 20th AGM
NOTICE OF THE 21st
ANNUAL GENERAL MEETING
Notice is hereby given that the 21st Annual General Meeting (AGM) of the Honble
Members of Dutch-Bangla Bank Limited (the Bank / the Company) will be held
on Thursday, March 30, 2017 at 10:00 A.M. at Convention Hall (ground floor) of
Senamalancha, Dhaka Cantonment, Dhaka, Bangladesh to transact the following
business:
Agenda with revenue stamp of Taka 20.00 and submitted to
the Registered Office of the Company not later than
72 hours before the time fixed for the Annual General
01. To receive, consider and adopt the Audited
Meeting.
Financial Statements of the Company with
v. The election of Directors of the Company will be dealt
Auditors Report thereon and the Directors Report
with as per rules and regulations in force.
for the year ended December 31, 2016.
02. To declare dividend for the year 2016. vi. The existing auditors, M/s. A. Qasem & Co., Chartered
Accountants will retire and as per rule, they are
03. To elect Directors.
eligible for re-appointment.
04. To appoint Auditors for the year 2017 and fix up
their remuneration. vii. Annual Report, among others, including the
Directors Report and audited Financial Statements
By order of the Board of the Bank for the year ended 31st December 2016
will be available at the Banks Website (www.
dutchbanglabank.com) before the date of AGM.
viii. Honble Members are requested to update their
mailing address with cell No., bank account No.,
Md. Monirul Alam, FCS branch routing No., signature and other related
Company Secretary information in their BOID number maintained with
Dated: Dhaka, March 16, 2017 DP before the Record Date.
ix. Honble Members are requested to provide their e-TIN
NOTES to their Depository Participants (for BOID number
i. The Record Date for the purpose was Wednesday, holders) and share department of the Bank (for Folio
March 15, 2017. number holders) before the Record Date with a view
to update their records, failing which, income tax at
ii. The Members whose names would appear on the source will be deducted from Cash Dividend @ 15%
Record Date in the Member / Depository Register of (fifteen percent) instead of @ 10% (ten percent) (for
the Company are eligible to attend the meeting and individual) as per income tax rules in force.
entitled to dividend.
x. Depositary Participants (DP) / Stock Brokers are
iii. Honble Members are requested to submit their requested to send the list of Margin Account Holders,
written option to the Company regarding the way if any, within March 20, 2017 to the Company,
of receiving their dividend within March 16, 2017, otherwise, the dividend will be paid to Honble
otherwise, the dividend will be paid through BEFTN Members bank account whose names would appear
or any other mode as may be deemed appropriate by on the Record Date.
the Company.
xi. No gift or benefit in cash or kind shall be paid /
iv. A Member eligible to attend and vote at the Annual offered to the Honble Members in the 21st AGM of
General Meeting may appoint a proxy to attend and the Bank as per BSEC Circular and listing regulations
vote on his / her behalf. Proxy Form must be affixed of Stock Exchanges.
Vision
Dutch-Bangla Bank dreams of better
Bangladesh, where arts and letters,
sports and athletics, music and
entertainment, science and education,
health and hygiene, clean and pollution
free environment and above all a
society based on morality and ethics
make all our lives worth living. DBBLs
essence and ethos rest on a cosmos of
creativity and the marvel-magic of a
charmed life that abounds with spirit
of life and adventures that contributes
towards human development.
Mission
Dutch-Bangla Bank engineers enterprise and
creativity in business and industry with a
commitment to social cause. Profits alone
do not hold a central focus in the Banks
operation; because man does not live by
bread and butter alone.
Core
objectives
Dutch-Bangla Bank believes in its uncompromising commitment to
fulfill its customer needs and satisfaction and to become their first
choice in banking. Taking cue from its pool of esteemed clientele,
Dutch-Bangla Bank intends to pave the way for a new era in
banking that upholds and epitomizes its vaunted marques "Your
Trusted Partner".
CONTENTS
notice of the 21st annual general meeting 4
vision 5
mission 7
core objectives 9
the board and its committees 12
chairmans foreword 13
from the desk of the managing director & CEO 17
stakeholders information 21
segments analysis 36
sustainability report 39
corporate governance 53
status of compliance with the conditions imposed by BSEC on corporate governance 59
report of the audit committee of the board 70
certificate of managing director & CEO and chief financial officer (CFO) to the board 72
certificate on compliance status of corporate governance guidelines of BSEC 73
risk management 75
disclosures on risk based capital (Basel III) 107
banking automation 139
financial inclusion 165
awards 189
agreements signed 193
events 197
retail banking, school banking & SME finance 205
agricultural credit 219
green banking 229
social cause 237
economy and financial market 299
some of the projects financed by Dutch-Bangla Bank 321
directors report 331
directors responsibility for internal control and financial reporting 358
auditors report 359
financial statements 363
off-shore banking unit 437
top management of dbbl 449
dbbl branches 450
forward looking statements 457
list of abbreviations 458
proxy form 459

ANNUAL REPORT 2016 11

THE BOARD &
ITS COMMITTEES
The Board
Chairman
Mr. Sayem Ahmed

Directors
Mr. Abedur Rashid Khan : Sponsor Director
Mr. Bernhard Frey : Nominee of Ecotrim Hong Kong Limited
Mr. Md. Fakhrul Islam : Elected from General Public Shareholders Group
Mr. Md. Nazim Uddin Bhuiyan, FCMA : Independent Director
Mr. Mohd. Khorshed Alam : Independent Director
Mr. Abul Kashem Md. Shirin : Ex-officio Director (Managing Director & CEO)

The Committees of the Board

1. Executive Committee
Mr. Abedur Rashid Khan : Chairman
Mr. Sayem Ahmed : Member
Mr. Abul Kashem Md. Shirin : Member

2. Audit Committee
Mr. Md. Nazim Uddin Bhuiyan, FCMA : Chairman
Mr. Md. Fakhrul Islam : Member
Mr. Mohd. Khorshed Alam : Member

3. Risk Management Committee

Mr. Abedur Rashid Khan : Chairman
Mr. Sayem Ahmed : Member
Mr. Md. Nazim Uddin Bhuiyan, FCMA : Member

Founder, Dutch-Bangla Bank &

Chairman, Dutch-Bangla Bank Foundation
Mr. M. Sahabuddin Ahmed
CHAIRMANS
FOREWORD
Bismillahir Rahmanir Rahim In 2015, Bangladesh reached the lower middle-
income country status, and expects to reach upper
Dear Shareholders middle-income country status by 2030 or earlier. The
Assalamu Alaikum government's focus on easing infrastructure bottlenecks
and improving business climate would support potential
It is a great pleasure and honor to welcome you at the
growth and medium term growth performance. The
21st Annual General Meeting of the members of Dutch- government's prudent fiscal policy, accompanied by
Bangla Bank Limited. On behalf of the Board of Directors the Bangladesh Banks monetary policy and effective
and from myself, I would like to express my sincere supervision are expected to support macro-financial
gratitude to all of you for your active support. It is your stability.
kind patronage and relentless support that have always
resulted in continued success for the Bank. From a macro perspective, domestic demand growth is
expected to remain robust over the near and medium-
In its 21 years of existence, Dutch-Bangla Bank has term reflecting demographics, investments, and
transformed the banking landscape of Bangladesh with improving infrastructure and cost of doing business.
its innovation and integrity. The Bank continues to grow Furthermore, favorable monetary conditions would likely
with the values that were established since its founding support growth but economic spillovers from weaker
for a bigger and better future. external demand need to be closely monitored.
Business Environment Dutch-Bangla Banks main goal, regardless of any
The Bangladesh economy registered 7.1% GDP growth business environment, is for a safe and steady growth.
in FY 2016 against GDP growth of 6.6% in FY 2015. In Because of our conservative banking practices, Dutch-
absence of high agricultural growth, the 7.1 percent GDP Bangla Bank was largely immune to many large-scale
growth was mainly due to the industry and services frauds and loopholes in the banking system. But the
sectors. The industry sector grew by 11.1 percent, followed Bank did take the national issues that came to light and
by services sector (6.3 percent) while the agriculture Bangladesh Bank guidelines to make our internal controls
sector grew by a moderate 2.8 percent. Out of the overall stronger and safer.
GDP growth, 3.4 percent was contributed by the industry The Bank has adopted new technologies and guidelines
sector, followed by the services sector (3.3 percent) and that make every part of the Bank more transparent to
the agriculture sector (0.4 percent). the central management. It has cut down the processes
Bangladesh Bank pursued a cautious yet growth friendly that used to take hours, will now take a few minutes. The
monetary policy stance for FY 2016. The objective of Bank has introduced new divisions that are equipped to
the monetary policy was to attain the target growth as handle tasks faster in a transparent manner.
well as to maintain price and macroeconomic stability. Mobile Banking and Agent Banking
Dutch-Bangla Bank was heavily involved in inclusive
and environmentally sustainable financing of economic Dutch-Bangla Bank continues to make advancements in
activities. Mobile Banking. More importantly, the Bank takes a fully
KYC compliant mobile banking stance. Because of this
The near- and medium-term outlook for Bangladesh strict adherence to banking principles and rules, there
economy looks positive, supported by higher domestic has been no extortion, fraud, robberies, or killings using
and foreign investments, buoyant trade, capital inflows our mobile banking system. The bank stands as the only
and favorable inflationary environment. KYC-compliant major mobile banking service provider in
Global economic prospects remain sluggish and Bangladesh.
growth has been revised downward, particularly for the Mobile Banking is by no means profitable and does not
advanced countries (WEO, October 2016). Most of the seem to be profitable even in the foreseeable long term.
macroeconomic indicators in Bangladesh are performing But the Bank sees this as its duty, to bring financial
well and domestic demand remains buoyant. inclusion to all of Bangladesh. The Bank does not have

ANNUAL REPORT 2016 13

any plans to exit this sector because offering Mobile Banks performance in 2016
Banking for the unbanked and rural population of
Bangladesh is an undertaking that we conduct regardless Our operating profit and net profit after tax growth
of financial viability. decreased in 2016 for adverse business conditions
throughout the year. Deposit growth was 11.0 percent
In order to reinforce our commitment to marginal people whereas credit growth was higher than deposits as 13.9
mainly those unbanked masses living mostly in rural percent. Import businesses decreased by 0.2 percent and
areas, we introduced Agent Banking operation in 2015, export businesses rose by 3.2 percent.
which will be further expanded in coming years using
latest technology to fulfill the ever growing demand of Our strategic investments in IT infrastructure, branch,
customers in a cost-effective manner. ATM network, mobile banking services and human
capital continued in 2016. DBBL has been consciously
ATM Services making these strategically important investments
to provide much better customer service with a wide
Dutch-Bangla Bank gives free transactions to its
range of products that will definitely bring long-term
customers. The charges for other banks are insignificant
stable growth and a more inclusive banking for all of
as determined by Bangladesh Bank the Bank is effectively
Bangladesh.
subsidizing all of Bangladesh with this service.

The Bank approached ATM services as a component of

Focus and Strategy
the Social Cause program, where the intrinsic value of During the year under review, our focus and strategy
the system would outweigh the financial costs. We have was concentrated on sustainable long-term growth
enabled cash withdrawals and constant access to banking of business, better deposit mix, improving the quality
services all over Bangladesh. of assets, rationalizing operating cost, improving
operational efficiency and productivity of resources,
The ATM services are a universal service which enables
better and faster customer service, expansion of branches
financial access.
and ATM & Fast Track network, mobile banking services,
Expansion of delivery channels offering a number of new products in retail banking, SME
financing and card services and strengthening the overall
Dutch-Bangla Bank opened 10 new branches, which, at risk management and corporate governance system.
the end of 2016 stood at 165 compared to the 155 of the
previous year. 743 ATMs were installed in 2016 to reach Growth requires vision and long-term targets.
4,331 ATMs at the end of 2016 and 192 new Fast Tracks Bangladesh is still one of the fastest growing economies
were inaugurated in 2016 to reach 708 Fast Tracks. Mobile in the world. This also means that the banks strategy
banking services were expanded to every customer across of prioritizing investments over profits will yield greater
the country, providing instant banking services. returns in this growing economy. Dutch-Bangla Bank
does not want to be just any bank, but it wants to be
This expansion of services was possible by increased the largest and biggest bank. It wants to be a bank that
investment and up gradation of online banking software matters.
and infrastructure. New personnel were recruited in
2016 to strengthen HR to support the business growth Profit after tax
and expansion of network and to provide personalized
In 2016, profit before tax decreased by 48.4% and stood
services to our customers.
at Taka 3,234.0 million compared to Taka 6,267.3 million
All the branches are being remodeled to allow better in 2015. Profit after tax decreased by 41.6% and stood
access and shorter wait-times for customers. Dutch- at Taka 1,762.6 million compared to Taka 3,020.3 million
Bangla Bank deals with a very large customer base and in 2015. The return on equity was 10.2% compared to
it is important to the Bank that all delivery channels are 19.3% in 2015. During the year under review, earnings per
updated to allow more efficient and faster access to our share attributable to shareholders amounted to Taka 8.8
client base. compared to Taka 15.1 during the previous year.
Asset quality and Capital adequacy There are more issues that are more important than
profits for our Bank. This includes the amount of
Classified loan as a percentage of total loan portfolios classified loans and various ratios that are constantly
increased to 5.2% at the end of 2016. At the end of 2016, being monitored by the Bank. Maintaining certain
total equity stood at Taka 17,660.2 million as compared performance and efficiency metrics are more important
to Taka 16,754.3 million in 2015. Under Basel III, Tier 1 to the Bank because it reflects the Banks true potential.
capital stood at Taka 14,937.6 million as on 31 December That is why in the case of Dutch-Bangla Bank, profits are
2016 as compared to Taka 14,729.8 million in 2015. The not sufficient to illustrate the complete strength of the
supplementary capital (Tier 2 capital) stood at Taka Bank.
6,311.8 million at the end of December 2016 compared to
Taka 6,407.8 million at the end of 2015. Total regulatory As you also know, a significant part of the profit is also
capital was Taka 21,249.4 million at the end of 2016, an returned to the common and distressed people of the
increase of Taka 111.8 million from previous year. As of country through various Social Causes Programs in which
31 December 2016, Capital to risk-weighted asset Ratio DBBL is a pioneer in this country. We strongly believe
(CRAR) under Basel III stood 13.1% (Tier 1 capital 9.2% that our strong social commitment and better customer
and Tier 2 capital 3.9%) against the Bangladesh Bank service at affordable cost will make DBBL stronger and
minimum requirement of 10.625%. provide long term sustainable growth to enhance not only
the shareholders value but also the role that the Bank
As you know, Basel III has been introduced by Bangladesh plays in our society.
Bank from 01 January 2015. It will be fully implemented
over five years from 2015 to 2019. More emphasis has Corporate Governance
been put on Tier 1 capital in Basel III than Basel II. The
As you know, good corporate governance system is
Tier I capital requirement has been increased from 5.0%
vital for efficient and effective business operation,
to 8.5% against Capital to Risk-weighted Asset Ratio
long-term stability, and sustainable growth for any
(CRAR) including 2.5% Capital Conservation Buffer (CCB)
organization. The corporate governance system in DBBL
against Basel II while Tier -2 capital requirement has
is designed to ensure transparency and accountability
been reduced from 5.0% to 4.0% only with provision for
at all levels of doing business. It also ensures that
phasing out some weaker elements of capital. In addition
duties and responsibilities are appropriately segregated
liquidity risk management has been emphasized in
between the Board and management to provide
Basel III and Liquidity Coverage Ratio (LCR), Net Stable
sufficient checks and balances and flexibility for smooth
Funding Ratio (NSFR) and Leverage Ratio (LR) have
business operations. The Board provides leadership and
been introduced for more efficient liquidity and liquidity
direction for the management, approves strategic and
risk management and developing a more resilient and
major policy decisions and oversees management to
stable banking sector in the long term. DBBL was able to
attain predetermined goals and objectives of the Bank.
maintain 13.1% CRAR including CCB as of 31 December
Integrity and compliance throughout DBBL are strongly
2016 against minimum capital requirement including CCB
encouraged by the Board.
of 10.625% by Bangladesh Bank.
The Board also ensures that adequate internal control
Only profits are not the true picture
systems are in place and these are consistently
Respected shareholders, you are aware of the fact that, complied with to provide reasonable assurance that
DBBLs performance cannot be judged by profit figures financial records are reliable for preparation of financial
alone. Many of our services including online banking, statements. The Board further ensures that quality of
ATM and Fast Track services are offered at free of cost or financial reporting is maintained, assets of the Bank are
at a very low cost even though the cost of providing this safeguarded against unauthorized use or disposition and
service is very high. That is where DBBL is different from accountability for assets and business transactions is
other banks in this country. maintained.

ANNUAL REPORT 2016 15

In Compliance with Bangladesh Securities and Exchange graduation levels on a yearly basis. This scholarship
Commission (BSEC) regulations and Bangladesh Bank program was continued in 2016.
regulations and to further strengthen our corporate
governance system, two Independent Directors have been
Future Outlook
inducted in the Board. I believe that our customer service with existing and new
products and the support of our IT investment, branch,
Social Causes Programs
ATM & Fast Track networks, efficient and productive
As you all know, DBBL has pioneered Social Causes management of resources, better risk management and
Programs in this country. Since inception, DBBL tried to corporate governance will bring sustainable growth with
enrich economic and social indicators of the society by improved asset quality that will maximize value for all
supporting sectors such as education, living standards, the stakeholders in the coming years.
healthcare, nutrition, and the environment.
I would like to express my gratitude to the Government
Our lending policy is also supportive for creating of Bangladesh, Bangladesh Bank, Bangladesh Securities
employment opportunities and ethical businesses. and Exchange Commission, Office of the Registrar of
Education and healthcare are key areas that we focus on. Joint Stock Companies and Firms, the Stock Exchanges
This is because Education will reflect on the future of any for their continued support and guidance. I would also
nation, including Bangladesh. It has long lasting effects like to express my thanks to all valued clients, patrons,
that can effectively change a country. Healthcare on the well wishers, shareholders and all employees for their
other hand deals with the most pertinent and important continued support and cooperation, without which the
issues that continue to have serious consequences for Bank would not be able to achieve its present position. I
most people in Bangladesh. For the Bank, eliminating am thankful to our statutory auditors A. Qasem & Co. My
or at least alleviating healthcare issues allows people, appreciation also goes to my fellow members in the Board
and the society to which they belong, to reach their full of Directors of the Bank for their generous assistance,
potential. guidance and leadership that will move the Bank forward.

We strongly believe that these kinds of social and

philanthropic activities would ultimately improve the
To conclude, we reaffirm our intention to remain Your
quality of lives of the disadvantaged people of the Trusted Partner.
country by receiving support for education, healthcare
facilities, financial support and assistance whenever May Allah help us and be with us.
there is a natural disaster. With best regards,

Largest Scholarship Program continued in

2016
You will be pleased to know that DBBL introduced the
largest scholarship in the private sector. This scholarship Sayem Ahmed
helps more than 20,000 students studying in HSC and Chairman
FROM THE DESK
OF THE MANAGING DIRECTOR & CEO
It gives me immense pleasure in presenting the 4.5 percent. Due to higher export growth than import
performance of your Bank for the year 2016. DBBL growth, despite negative growth in workers remittance,
passed another eventful year in terms of its expansion there was a current account surplus of USD 3.7 billion in
and consolidation despite prevailing adverse condition FY 2016. However, Taka weakened against USD during FY
throughout the year. Our triumphant journey was 2016. In interbank market exchange rate was Taka 78.4
continued as usual along with trend setting in many =USD 1 on 30 June 2016 against Taka 77.6 = USD 1 on 30
fields of mechanized and innovative banking. At this June, 2015. Foreign exchange reserves continued to grow
august moment, I sincerely offer my heartfelt gratitude throughout the year reaching USD 30.2 billion on 30 June,
and congratulate our valued clients, patrons, well- 2016, which is equal to eight months import payments.
wishers for their active support, cooperation and strong
association with us. Especially, I express my gratitude
Business
to our honorable shareholders for their continuous Like previous years, our efforts were continued to
partnership and collaboration without which it would not further improve the deposit mix targeting to reduce
have been possible for us to take the Bank to this height. the cost of funds. Simultaneously, efforts were on to
Dutch- Bangla Bank can look on its past with great deal maintain assets quality and look for diversified sectors
of pride. with emphasis on non-funded business. Our long term
Prudent approach endeavor to reach to larger number of clients through
providing easy access to technology driven modern
As we firmly believe in achieving long term goal through banking services to the masses continued as well during
safe and sound banking, we always keep a constant eye the year under review. Our networks have been expanded
on the market and analyze the market behavior very through different and innovative mode of delivery
intensively. Therefore, our approach towards taking channels that include 4,331 ATM units, the largest
risk was calculative and well thought out. As such, our proprietary network in the country, 708 Fast Tracks, a
focus on development of service delivery channels, new idea of extended services for the convenience of the
improvement of asset quality and to maintain a sound clients and 165 full fledged branches all over the country.
and safe portfolio remains same as previous years. Like Our effort brings very notable results. Our client base
before, our efforts have been continued to bring stable increased to 5.2+ million. The deposits grew by Taka
and predictable earnings. We always emphasize on 20,469.0 million in 2016 from Taka 186,765.0 million to
business stability, strengthening our ability and focusing Taka 207,234.0 million. In this highly competitive market,
on our core business as usual. we have been able to achieve 11.0% growth in deposit
mobilization. Loans and advances stood at Taka 173,397.8
Economic Scenario
million as at the end of 2016 from Taka 152,270.0 million
During FY 2016, macro indicators were positive and GDP in 2015 having growth of 13.9%. The Bank continued
growth was 7.1 percent against 6.6 percent of FY 2015. to grow and diversify its portfolio in 2016 to have a
Inflationary pressures continued to soften. Surplus diversified client base and portfolio distributed across
liquidity position in the banking system continued in the sectors to reduce client specific and industry specific
2016 creating further pressure on downward interest rate. concentration and to reduce overall portfolio risk. I feel
While lending and deposit rates continued to decline, it pertinent to mention that all the business activities of
interest in call market ranged in between 2.0 per cent to DBBL are done in full conformity with social, ethical and

ANNUAL REPORT 2016 17

environmental standards. We strive to meet our clients Sustained credit rating
changing needs and they will remain our major priority.
The Bank has been able to sustain its credit rating at
Building on our core strength AA1 in the Long Term and ST-1 in the Short Term for
the consecutive last 5 years from 2011 to 2015. The credit
DBBL is the most tech-savvy bank in the country having rating of the Bank for the year 2016 will be completed
huge IT infrastructure aiming to reach to the common within the stipulated time of 30 June 2017.
people all over the country at very nominal and affordable
prices. In most cases, we offer technology based modern
Social Causes Program
services to the mass people at subsidized costs. In order Since inception, DBBL champions a mission to bring
to help country achieve its goal to reach digital access human development through helping in various social
to the masses through financial inclusion program, we ingredients. It was proved in many ways that a small
continued to expand our delivery channels along with initiative can bring about phenomenal changes through
IT infrastructures to the remotest possible areas. Like demonstration effect. DBBL starts contributing to social
causes since almost its inception, which now become
many other innovative banking services in the country, we
mandatory for other fellow institutions and over the years
are the pioneer in introducing bank-led mobile banking
CSR now become part of their regular activities. Social
services. DBBL is proud to be the first to bring this cause initiatives undertaken by DBBL includes awarding
revolutionary banking solution to the masses who has of scholarship to the needy and meritorious students,
long been deprived of the opportunity to be included in Smile Brighter Program for cleft lipped children, rural
the conventional banking. Agent banking was introduced healthcare, financial support to medical infrastructures
in 2015 to reinforce our commitment to bring the and many other social developments programs. Over the
unbanked masses under the banking services. years, DBBLs various social cause obligations increases
manifold. DBBL is regarded as the largest contributor in
Strong Capital to Risk-weighted Assets Ratio the education sector among the private business houses
in terms of CSR activities.
As part of our guiding policy, DBBL maintains strong
capital adequacy ratio to have sufficient cushion to Human Resources
absorb any unforeseen shock arising from any potential
As DBBL is having a highly technology based work
risk, to ensure long-term solvency of the Bank and to environment, it is one of the basic objectives to build a
help sustainable business and profit growth of the robust and productive workforce fit for the job. Therefore,
Bank. DBBLs regulatory capital as on 31 December 2016 training and practical orientation on various disciplines
stood at Taka 21,249.4 million. As at the end of 2016, of banking throughout the year continues under HR
Capital to risk-weighted asset Ratio was 13.1% as against improvement plan. Motivation process through various
minimum requirement of 10.625% and well above of means also continues to invigorate the workforce.
Basel III requirement. DBBL is taking necessary steps Special training and workshops including refreshers
training on Anti Money Laundering and Anti Terrorism are
for full compliance with Basel III in line with the relevant
undertaken throughout the year.
policy guidelines of Bangladesh Bank. In this process, the
Board is guiding the management for setting strategic Outlook
planning with regards to maintenance of capital ratios
DBBL sets its priority to continue implementation of its
commensurate with the Banks risk appetite capacity,
growth strategy with particular emphasis on improving
liquidity position and leverage etc. The capital to risk deposit mix, reducing cost of fund and strengthening
weighted asset ratios of DBBL at the end of 31 December overall risk management process. These initiatives will
2016, consisting of 9.2% of Tier 1 capital and 3.9% of Tier help the Bank to improve its business performances in
2 capital endorsed DBBLs comfortability for maintenance all areas, bolster profits and ultimately create value for
of capital ratios as stipulated by BB in its implementation shareholders who are the main driving force behind all of
roadmap starting from 2015 to 2019. our many efforts.
Thanks and gratitude Chittagong Stock Exchange for the cooperation and
support for the development of the Bank. Thanks to
I would take the opportunity to extend our thanks to my colleagues of all levels for their sincere efforts and
our valued clients, respected shareholders, patrons and dedication in achieving sound performances as well as in
well wishers for reposing their complete confidence and upholding the Banks image through delivering distinctive
trust on us which has been a great source of strength services to the valued clients.
at all times. The Management is amply thankful to the
Members of the Board of Directors for their prudent
policy guidelines, support and inspiration in achieving
the Banks cherished goal. We would like to convey
our sincere thanks and gratitude to the Government
Agencies, Bangladesh Bank, Bangladesh Securities and
Exchange Commission, Office of the Registrar of Joint Abul Kashem Md. Shirin
Stock Companies and Firms, Dhaka Stock Exchange, Managing Director & CEO

ANNUAL REPORT 2016 19

stakeholders'
information
SHAREHOLDING POSITION
Number of shares held Percentage (%) of shares held
as of 31 December as of 31 December
Particulars

2016 2015 2016 2015

Sponsors

Local 122,634,240 122,634,240 61.3% 61.3%

Foreign 51,348,900 51,348,900 25.7% 25.7%

Total Sponsors 173,983,140 173,983,140 87.0% 87.0%

General Public

Institutions 14,081,595 12,826,328 7.0% 6.4%

Individuals 11,935,265 13,190,532 6.0% 6.6%

Total General Public 26,016,860 26,016,860 13.0% 13.0%

Grand Total 200,000,000 200,000,000 100.0% 100.0%

13.0% 13.0%

25.7%
2016 25.7%
2015

61.3% 61.3%

Sponsors-Local Sponsors-Local

Sponsors-Foreign Sponsors-Foreign

GeneralPublic GeneralPublic

ANNUAL REPORT 2016 23

HIGHLIGHTS
ATM
Units
Branches
4,331
Fast Track 165
708
Deposits
Taka
Loans and
207,234 Advances
Taka
million
Earnings 173,398
Per Share million
Taka

8.8

Dividend
(Cash Dividend)
30%
Total Regulatory
Capital
Taka 21,249 million
Capital to Risk-weighted
Asset Ratio (CRAR)
13.1% Any time
Anywhere
FINANCIAL HIGHLIGHTS
In million Taka
Particulars 2016 2015 Growth (%) 2014 2013 2012
Result of operation (for the year)
Total revenue 21,613.3 21,849.0 -1.1% 20,741.8 20,050.6 18,213.1
Operating profit 5,521.8 6,433.9 -14.2% 5,324.4 4,583.6 5,205.6
Profit before taxation 3,234.0 6,267.3 -48.4% 4,518.8 3,547.0 4,817.1
Profit after taxation 1,762.6 3,020.3 -41.6% 2,206.6 2,000.8 2,314.1
Financial position (at year end)
Total assets 276,844.4 244,057.6 13.4% 215,993.5 185,537.4 155,918.6
Total risk-weighted assets 162,165.3 154,548.6 4.9% 130,709.5 112,770.7 102,518.8
Total loans and advances 173,397.8 152,270.0 13.9% 124,423.0 106,422.8 91,648.9
Total deposits 207,234.0 186,765.0 11.0% 166,762.3 145,230.1 125,433.1
Total import business 134,768.1 135,047.1 -0.2% 123,391.9 108,259.3 104,306.1
Total export business 134,166.5 129,954.5 3.2% 117,777.3 118,045.2 108,878.6
Total shareholders fund 17,660.2 16,754.3 5.4% 14,517.4 12,641.7 10,854.5
Total capital 21,249.4 21,137.6 0.5% 18,077.9 15,403.4 12,284.0
Market capitalization 23,340.0 21,520.0 8.5% 21,160.0 20,940.0 22,850.0

Particulars 2016 2015 Deviation 2014 2013 2012

Per share (Taka)
Earnings per share 8.8 15.1 (6.3) 11.0 10.0 11.6
Dividend per share
Cash 3.0 4.0 (1.0) 4.0 4.0 4.0
Bonus - - - - - -
Net asset value (NAV) per share 88.3 83.8 4.5 72.6 63.2 54.3
Closing Market price per share 116.7 107.6 9.1 105.8 104.7 114.3
Financial ratios (In Percentage)
Loan deposit ratio 83.7% 81.5% 2.1% 74.6% 73.3% 73.1%
Return on average total assets 0.7% 1.3% -0.6% 1.1% 1.2% 1.7%
Return on average risk-weighted assets 1.1% 2.1% -1.0% 1.8% 1.9% 2.4%
Return on average shareholders fund 10.2% 19.3% -9.1% 16.2% 17.0% 23.4%
Ratio of non-performing loan to total loan 5.2% 3.7% 1.5% 4.4% 3.9% 3.0%
Capital to risk-weighted asset ratio (Basel III) 13.1% 13.7% -0.6% 13.8% 13.7% 12.0%
Cost-income ratio 65.3% 58.8% 6.6% 61.6% 63.9% 53.9%

* Proposed (30% cash dividend i.e. Taka 3 per share for the year ended 31 December 2016)

17,660.2
3,020.3 16,754.3

14,517.4
2,314.1
2,206.6 12,641.7
2,000.8
10,854.5
1,762.6
Taka in Million

Taka in Million

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

NET PROFIT AFTER TAX SHAREHOLDERS' FUND

ANNUAL REPORT 2016 25

KEY FINANCIAL INFORMATION
& RATIO-LAST FIVE YEARS
In million Taka
Particulars 2016 2015 2014 2013 2012
Operating performance (income statement) (for the year)
Total revenue 21,613.3 21,849.0 20,741.8 20,050.6 18,213.1
Total expenses 16,091.5 15,415.0 15,417.4 15,467.0 13,007.5
Profit before provisions 5,521.8 6,433.9 5,324.4 4,583.6 5,205.6
Total provision 2,287.8 166.6 805.6 1,036.5 388.5
Profit before taxes 3,234.0 6,267.3 4,518.8 3,547.0 4,817.1
Provision for taxation 1,471.4 3,247.1 2,312.1 1,546.3 2,503.0
Net profit after taxation 1,762.6 3,020.3 2,206.6 2,000.8 2,314.1
Statement of financial position (Balance Sheet) (As at 31 December )
Authorized capital 4,000.0 4,000.0 4,000.0 4,000.0 4,000.0
Paid-up share capital 2,000.0 2,000.0 2,000.0 2,000.0 2,000.0
Total shareholders fund 17,660.2 16,754.3 14,517.4 12,641.7 10,854.5
Deposits 207,234.0 186,765.0 166,762.3 145,230.1 125,433.1
Loans and advances 173,397.8 152,270.0 124,423.0 106,422.8 91,648.9
Investments 31,778.5 20,210.3 19,261.2 17,441.9 13,428.6
Property, plant and equipment (net) 4,871.9 4,519.3 4,141.7 4,382.6 4,676.7
Total assets 276,844.4 244,057.6 215,993.5 185,537.4 155,918.6
Total earning assets 233,602.3 210,882.3 178,435.7 150,588.8 125,900.0
Total contingent liabilities 60,051.7 55,015.0 47,279.9 46,561.9 43,522.8
Other business (trade finance) for the year
Import business 134,768.1 135,047.1 123,391.9 108,259.3 104,306.1
Export business 134,166.5 129,954.5 117,777.3 118,045.2 108,878.6
Asset quality (As of 31 December)
Amount of classified advances (Taka) 8,999.0 5,624.9 5,475.3 4,175.6 2,728.4
Classified loans to total loans (%) 5.2% 3.7% 4.4% 3.9% 3.0%
Capital measurement
Core (Tier 1) capital 14,937.6 14,729.8 12,276.8 10,693.5 9,395.5
Supplementary (Tier 2) capital 6,311.8 6,407.8 5,801.2 4,709.8 2,888.5
Total capital (Tier 1 and Tier 2) 21,249.4 21,137.6 18,077.9 15,403.4 12,284.0
Total risk-weighted assets 162,165.3 154,548.6 130,709.5 112,770.7 102,518.8
Tier 1 capital adequacy ratio (%) 9.2% 9.5% 9.4% 9.5% 9.2%
Tier 2 capital adequacy ratio (%) 3.9% 4.2% 4.4% 4.2% 2.8%
Total capital to risk-weighted asset ratio (Basel III) 13.1% 13.7% 13.8% 13.7% 12.0%
Capital surplus 4,019.3 5,682.7 5,007.0 4,126.3 2,032.2
Share information
Number of share outstanding 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000
Earnings per share (Taka) 8.8 15.1 11.0 10.0 11.6
Market price per share (Taka) 116.7 107.6 105.8 104.7 114.3
Price earning (P/E) ratio (Times) 13.2 7.1 9.6 10.5 9.9
Market capitalization 23,340.0 21,520.0 21,160.0 20,940.0 22,850.0
Dividend per share
Cash (Taka) 3.0 4.0 4.0 4.0 4.0
Bonus - - - - -
Net asset value (NAV) per share (Taka) 88.3 83.8 72.6 63.2 54.3
Number of shareholders 3,959 4,711 5,951 6,611 6,637
Financial ratios (In Percentage)
Gross profit ratio (%) 25.5 29.4 25.7 22.9 28.6
Debt equity ratio (%) 21.0 26.3 32.1 23.6 11.0
Loan deposit ratio (%) 83.7 81.5 74.6 73.3 73.1
Return on average investment (ROI %) 8.0 10.4 10.8 10.8 11.6
Yield on loans and advances (%) 9.4 11.0 12.4 13.5 14.3
Return on average equity (ROE %) 10.2 19.3 16.2 17.0 23.4
Return on average assets (ROA %) 0.7 1.3 1.1 1.2 1.7
Other information
Number of employees 6,127 5,201 5,556 4,666 5,268
Number of branches 165 155 145 136 126
Number of ATM Units 4,331 3,588 2,705 2,454 2,366
Number of Fast Track 708 516 365 263 235
Number of deposit account holder 5,204,168 4,444,747 3,795,255 3,405,671 2,755,149
Number of loan account holder 31,448 26,936 26,268 26,052 24,650
*Proposed(30% cash dividendi.e.Taka3persharefortheyearended31December2016)
GRAPHICAL
PRESENTATION
TOTAL REVENUE (TAKA IN MILLION)
25,000
20,741.8 21,849.0 21,613.3
20,000 20,050.6
18,213.1

15,000

10,000

5,000

2012 2013 2014 2015 2016

OPERATING INCOME (TAKA IN MILLION)

7,000 6,433.9
6,000 5,205.6 5,324.4 5,521.8
5,000 4,583.6
4,000
3,000
2,000
1,000

2012 2013 2014 2015 2016

NON-INTEREST INCOME (TAKA IN MILLION)

4,000 3,692.0 3,761.4 3,895.8
3,545.3
3,500
3,000 2,907.0
2,500
2,000
1,500
1,000
500

2012 2013 2014 2015 2016

ANNUAL REPORT 2016 27
 TOTAL DEPOSITS (TAKA IN MILLION)
220,000 207,234.0
200,000 186,765.0
180,000 166,762.3
160,000 145,230.1
125,433.1
140,000
120,000
100,000
80,000
60,000
40,000
2012 2013 2014 2015 2016

TOTAL LOANS AND ADVANCES (TAKA IN MILLION)

180,000 173,397.8
160,000 152,270.0
140,000 124,423.0
120,000 106,422.8
91,648.9
100,000
80,000
60,000
40,000

2012 2013 2014 2015 2016

TOTAL ASSETS (TAKA IN MILLION)

300,000
276,844.4
250,000 244,057.6
215,993.5
200,000 185,537.4
155,918.6
150,000

100,000

50,000

2012 2013 2014 2015 2016

 TOTAL IMPORT BUSINESS (TAKA IN MILLION)
140,000 135,047.1 134,768.1
123,391.9
120,000 108,259.3
104,306.1
100,000
80,000
60,000
40,000
20,000

2012 2013 2014 2015 2016

TOTAL EXPORT BUSINESS (TAKA IN MILLION)

140,000 129,954.5 134,166.5
118,045.2 117,777.3
120,000 108,878.6
100,000
80,000
60,000
40,000
20,000

2012 2013 2014 2015 2016

EARNINGS PER SHARE (TAKA)

16 15.1
14
12 11.6 11.0
10.0
10
8.8
8
6

2012 2013 2014 2015 2016

ANNUAL REPORT 2016 29
 PRICE EARNING (P/E) RATIO (TIMES)
20.0

16.0
13.2
12.0 10.5
9.9 9.6
8.0 7.1

4.0

2012 2013 2014 2015 2016

DIVIDEND
45.0
40.0% 40.0% 40.0% 40.0%
40.0
35.0
30.0%
30.0
25.0
20.0
15.0
10.0
5.0
2012 2013 2014 2015 2016

NET ASSET VALUE (NAV) PER SHARE (TAKA)

100.0
90.0 83.8 88.3
80.0 72.6
70.0 63.2
60.0 54.3
50.0
40.0
30.0
20.0
10.0
2012 2013 2014 2015 2016
 RETURN ON SHAREHOLDERS' FUND
40.0
35.0
30.0
25.0 23.4%
20.0 19.3%
17.0% 16.2%
15.0
10.0 10.2%
5.0

2012 2013 2014 2015 2016

GROSS PROFIT RATIO (%)

45.0
40.0
35.0
30.0 28.6 29.4
22.9 25.7 25.5
25.0
20.0
15.0
10.0
5.0
2012 2013 2014 2015 2016

LOAN DEPOSIT RATIO (%)

85.0 83.7
81.5
80.0
75.0 73.3 74.6
73.1
70.0
65.0
60.0
55.0

2012 2013 2014 2015 2016

ANNUAL REPORT 2016 31
 COST-INCOME RATIO
70.0 65.3%
63.9% 61.6%
60.0 58.8%
53.9%
50.0
40.0
30.0
20.0
10.0

2012 2013 2014 2015 2016

RATIO OF NON-PERFORMING LOANS (NPL) TO TOTAL LOANS

5.5 5.2%
5.0
4.5 4.4%
4.0 3.9% 3.7%
3.5
3.0%
3.0
2.5
2.0
1.5
1.0
0.5
2012 2013 2014 2015 2016

RETURN ON ASSETS (ROA) (%)

2.5

2.0
1.7
1.5 1.3
1.2 1.1
1.0
0.7
0.5

2012 2013 2014 2015 2016

Value Added Statement
The value added statement of Dutch-Bangla Bank Limited shows how the value is created and distributed to
the different stakeholders of the Bank.

2016 2015
Particulars
Amount in Taka Percentage (%) Amount in Taka Percentage (%)
Value added
Incomefrombankingservices 21,613,342,990 21,848,963,991
Less:Costofservicesandsupplies 11,111,565,915 10,955,272,733
Sub Total 10,501,777,075 10,893,691,258
Chargesonloanlosses (357,439,118) (49,701,103)
Provisionfordeferredtax 678,332,779 (23,991,629)
Loanlossprovisionandotherprovisions (2,287,815,125) (166,601,376)
TotalValue added 8,534,855,611 10,653,397,150
Distributionof Value added
Toemployeesassalaryand allowances 3,049,162,077 35.7% 2,884,553,161 27.1%
ToGovernmentasincometax 2,149,728,516 25.2% 3,223,066,022 30.3%
Tostatutoryreservefund 646,801,738 7.6% 1,253,467,972 11.8%
To Depreciation 1,573,352,067 18.4% 1,525,495,759 14.3%
ToShareholders 1,115,811,213 13.1% 1,766,814,236 16.6%
Ascashdividend 600,000,000 800,000,000
AsBonusshare - -
AsDividendequalization reserve 200,000,000 400,000,000
Asretainedearnings 315,811,213 566,814,236
Total 8,534,855,611 100% 10,653,397,150 100%

VALUE ADDED STATEMENT 2016 (%) VALUE ADDED STATEMENT 2015 (%)

13.1% 16.6%

35.7% 27.1%

18.4% 14.3%

7.6% 11.8%
25.2% 30.3%
To employees as salary To Depreciation To employees as salary To Depreciation
and allowances and allowances
To Shareholders To Shareholders
To Government as income tax To Government as income tax

To statutory reserve fund To statutory reserve fund

ANNUAL REPORT 2016 33

Financial Calendar
Particulars
Financial calendar for 2017
Date of recommendation of dividend by the Board of Directors for the year 2016 22 February 2017
Record date for entitlement of dividend for the year 2016 15 March 2017
Notice of the 21st Annual General Meeting 16 March 2017
21st Annual General Meeting to be held on 30 March 2017
Next 1st Quarter (Q1) Financial Statements within 15 May 2017
Next 2nd Quarter (Q2-Half Yearly) Financial Statements within 30 July 2017
Next 3rd Quarter (Q3) Financial Statements within 30 October 2017

Financial calendar for 2016

Notice of the 20th Annual General Meeting 16 March 2016
Date of holding of 20th Annual General Meeting 30 March 2016
Distribution of Dividend for the year 2015 06 April 2016
1st Quarter (Q1) Financial Statements released on 05 May 2016
2nd Quarter (Q2-Half Yearly) Financial Statements released on 30 July 2016
3rd Quarter (Q3) Financial Statements released on 30 October 2016

Information on dividend for the year

2016: Proposed cash dividend @ 30% (i.e. Taka 3 per share of Taka 10 each)
2015: Cash dividend @ 40% (i.e. Taka 4 per share of Taka 10 each)
2014: Cash dividend @ 40% (i.e. Taka 4 per share of Taka 10 each)

Share transfer system

The shares of Dutch-Bangla Bank Limited (DBBL) are being traded at the Stock Exchanges in Dematerialized form
through CDS of Central Depository Bangladesh Limited (CDBL) as per directive of Bangladesh Securities and Exchange
Commission (BSEC). Physical shares, which are not yet dematerialized, can be dematerialized under Central Depository
System (CDS).

Information relating to shareholdings

Position of shares of DBBL and shareholdings by the Directors are given in Note 16 to Financial Statements of this
Annual Report.

Listing on Stock Exchanges

Particulars Dhaka Stock Exchange Chittagong Stock Exchange
Trading Code DUTCHBANGL DUTCHBANGL
Company Code (Scrip) 11121 22017
Listing year 2001 2001
Market Category A A
Electronic Share Yes Yes
Total number of shares 200,000,000 200,000,000
Paid-up capital (in million Taka) 2,000 2,000
Face value (in Taka) 10 10
5 Years Highlights of DBBL Shares
Period (For the year ended 31 December)
Particulars
2016 2015 2014 2013 2012
Sharesoutstanding(Numbers) 200,000,000 200,000,000 200,000,000 200,000,000 200,000,000
DSEclosingprice(Taka) 116.7 107.6 105.8 104.7 114.3
Earningspershare(Taka) 8.8 15.1 11.0 10.0 11.6
Netassetvalue(NAV)pershare(Taka) 88.3 83.8 72.6 63.2 54.3
Marketprice/netassetvalue(Times) 1.3 1.3 1.5 1.7 2.1
Marketcapitalization(InmillionTaka) 23,340.0 21,520.0 21,160.0 20,940.0 22,850.0

116.7

114.3 Statutory Auditors

A. Qasem & Co.
Chartered Accountants
Gulshan Pink City, Suites # 01-03, Level: 7
107.6 Plot # 15, Road # 103, Gulshan Avenue
105.8 Dhaka-1212, Bangladesh
104.7 Tel No. 88-02-8881824-6
Fax No. 88-02-8881822
e-mail: [email protected]

2012 2013 2014 2015 2016

External Credit Assessment Institution (ECAI)

Credit Rating Agency of Bangladesh Limited (CRAB)

Queries relating to corporate D H Tower, Level-15
information 6 Panthapath, Dhaka-1215, Bangladesh
Tel No. 88-02-55013678-9, 55013681-3
Queries relating to any corporate information and
Fax No. 88-02-55013684
published financial information may be directed to the
e-mail: [email protected]
Company Secretary of DBBL in the following address:
Web: www.crabrating.com
Md. Monirul Alam, FCS
Company Secretary Tax & company affairs consultant
Sena Kalyan Bhaban
195, Motijheel Commercial Area Ahmed Zaker & Co.
Dhaka-1000, Bangladesh Chartered Accountants
Tel No. 47112240, Fax No. 9561889 Green City Edge (Level 10)
Mobile No. 01711-59 45 10 89, Kakrail, Dhaka-1000, Bangladesh
Tel No. 88-02-8300504-8
Other Information Fax No. 88-02-8300509
Registered Office e-mail: [email protected]
Web: www.ahmed-zaker.com
Sena Kalyan Bhaban
195, Motijheel Commercial Area
Dhaka-1000, Bangladesh Our website
Tel No. 88-02-9574196-8 (PABX)
Audited financial statements and other useful
Fax No. 88-02-9561889
information are available in our website as follows:
e-mail: [email protected]
SWIFT: DBBL BD DH www.dutchbanglabank.com

ANNUAL REPORT 2016 35

BUSINESS SEGMENT RESULTS OF DBBL FOR THE YEAR 2016
In million Taka
Off-shore
Corporate Retail Financial SME
Particulars Treasury Banking Total
Banking Banking Inclusion Banking
Unit
Interest income 7,817.8 3,503.5 229.9 2,605.9 3,254.7 300.0 17,711.8
Interest paid on deposits and borrowings 1,796.7 2,621.5 5.8 600.8 442.9 214.6 5,682.3
Net interest income 6,021.1 882.0 224.1 2,005.1 2,811.8 85.4 12,029.5
Transfer of interest between business
(3,562.5) 7,482.7 - (1,149.3) (2,770.8) - -
segments
Net interest income(NII) after transfer of
2,458.6 8,364.7 224.1 855.8 41.0 85.4 12,029.5
interest between business segments
Non-interest income (fees, commission,
1,784.9 1,006.7 55.9 595.0 458.0 0.9 3,901.4
exchange & other operating income)
Total operating income 4,243.5 9,371.6 280.0 1,450.8 499.0 86.2 15,931.1
Operating expenses 1,210.2 7,790.0 514.8 421.5 466.8 5.9 10,409.2
Profit before provision 3,033.3 1,581.6 (234.8) 1,029.3 32.2 80.3 5,521.9
Provision for loans and off-balance sheet
1,623.0 105.5 - 541.0 - 18.3 2,287.8
exposures (specific and general)
Profit before taxes 1,410.3 1,476.1 (234.8) 488.3 32.2 62.0 3,234.0
Total provision for taxation (current and
614.9 643.6 - 212.9 - - 1,471.4
deferred)
Net profit after taxation 795.4 832.5 (234.8) 275.4 32.2 62.0 1,762.6

Total Avarage Assets 153,471.8 4,435.4 3,636.3 37,139.3 52,419.7 9,348.5 260,451.0
Total Avarage Liabiltis 67,792.7 120,036.1 3,738.9 23,684.6 18,681.2 9,310.2 243,243.7

SEGMENT-WISE AVERAGE ASSETS (IN MILLION TAKA) SEGMENT-WISE AVERAGE LIABILITES (IN MILLION TAKA)

9,349
67,793

52,420
9,310

18,681

3,636
3,739
153,472

37,139 23,685

4,435 120,036

Corporate Banking Financial Inclusion

Retail Banking Treasury
SME Banking
BASIS FOR MEASUREMENT AND REPORTING OF BUSINESS SEGMENTS OF DBBL

Our business segment reporting is intended to Net interest income

measure the true performance of each business segment
Net interest income (NII) for each segment is
as it were a stand-alone business and reflect how
determined based on interest income on average earning
the business segment is managed. This approach
assets related to each segment net off cost of
is intended to ensure that our business segments'
deposits including deposits transferred to and from other
results include all relevant revenue and expenses business segments.
associated with the conduct of their business.

Transfer pricing of funds

Highlights of the key aspects of how our
A product specific fund transfer pricing methodology is
business segments are managed and
used to allocate interest income and expense to each
reported business segments. This allocation considers the interest
rate risk, liquidity and funding risks, cash requirement
l Corporate banking results include interest and
and regulatory requirements of each of our business
non-interest income related to corporate loans and
segments. Taking into account these factors, transfer
allied business and related amounts for specific pricing is based on external and competitive market
and general provisions for loan losses. costs of funding. Each business segment fully absorbs
the competitive interest costs to finance its assets.
l Small and Medium Enterprises (SME) banking
Business segments may retain certain interest rate
results include interest and non-interest income
exposures subject to management approval and limits
related to SME loans and allied business and
that may be expected in the normal course of business
related amounts for specific and general provisions
operations.
for loan losses.

l Retail banking results include interest and non- Operating expense allocation
interest income related to personal/ retail loans,
To ensure that our business segments results include
debit cards and credit cards and related amounts
respective expenses associated with the conduct of
for specific and general provisions for loan losses. their business, costs directly associated with a business
segment is allocated to the respective business segment.
l Treasury results include interest and non-interest
Other costs not directly attributable to any business
income related to treasury operations covering both
segments, including overhead costs and other indirect
local currency and foreign currency operations.
expense, are allocated to each business segment
in a manner that reflects the underlying benefits
Key methodologies used proportionately enjoyed by the business segment.

The key methodologies and assumptions used in our

segment reporting are periodically reviewed by the
Specific and general provisions
management to ensure validity and adjustments are Specific provisions against loans are deducted to
made if and when necessary to reflect true results of each recognize probable losses in our lending portfolio on loans
business segment. The methodologies and assumptions that have become classified. The specific provisions for
are given below: loan losses are deducted to arrive at the results of

ANNUAL REPORT 2016 37

each business segment to truly reflect the appropriate Capital assignment
expenses related to the conduct of each business
segment. The assignment of capital to our business segments is
allocated in a manner to consistently measure and align
A general provision is maintained to cover estimated
economic costs with the underlying benefits and risks
loan losses in the lending portfolio that have not been
associated with the business operations of each business
specifically identified as classified or doubtful of recovery.
segment.
Income tax
Income tax (current tax and deferred tax) is allocated on
taxable income of each segment at effective rate as per
income tax law.
sustainability
report
Overview committed to providing fair & transparent banking
experience to our customers in strengthening confidence
DBBL is committed to building a more sustainable bank, of customers and other stakeholders in the bank on a
a progressively responsible company and conducting sustainable basis.
business in an increasingly sustainable way. In the process
to improving sustainability, impacts of our long-term and We are ensuring our contribution to the economic
development of the country by providing loans in
short-term decisions are adequately considered in our
the productive & priority sectors particularly in SMEs
business decisions. We feel proud that our largest digital
extending financial inclusion and inclusive growth.
banking platform in the country including ATMs and Fast
Tracks, our mobile banking & agent banking operations As an environmentally responsible bank, DBBL complies
underpinning widespread financial inclusions and our CSR with environmental standard while financing industrial
programs including the largest private sector scholarship projects. Projects with likely adverse impact on
programs are showing the difference we are creating for environment are strongly discouraged by DBBL.
our clients and communities in general.
DBBL has established an international standard
DBBL continues to uphold its core values and pursue its Environmental & Social Management System (ESMS)
vision of dreaming a Bangladesh where science and that is supported by FMO, Netherlands with technical
education, health and hygiene , clean and pollution free assistance from F.I. Konsult from Czech Republic. As part
environment and above all a society based on morality of the capacity development program for implementing,
and ethics make all our lives worth living . the bank has launched the software Environmental &
Social (E&S) Categorization Tool (Environmental Risk
We have been conveying to our customers since inception Rating) as per ERM guidelines of Bangladesh Bank and
in 1996 that we are Your Trusted Partner. We are international best practices.

ANNUAL REPORT 2016 41

DBBL has been pioneer in our banking industry that cares by mobilizing savings & other resources, allocating
for the society. It has been operating the largest private such resources to productive investments, local &
sector Social Cause programs in our banking sector. It international trades and consumptions. In the process
has been intensifying its resources and efforts on a the Bank is directly or indirectly creating a lot of wealth
continuous basis to reach the distressed & needy people by accelerating economic activities & growth. By offering
of the society in order to bring smile on their faces and to its unique products & services the Bank is engaged in
improve their health and educational standard and overall maximizing savings, investments, productions, trading,
quality of life. employment, consumptions etc to maximize economic
growth and welfare of the society. Therefore, banking
company is holding a key position in economic and social
development of a country.

DBBL is a corporate citizen. It cannot act on its own

without its stakeholders. The stakeholders as a whole
help, direct and monitor the Bank to perform its
operations in an effective way to create and maximize
value for the economy & society.

Shareholders provide the vital equity capital, depositors

& lenders put their money in the Bank, and borrowers
take the credits for production, trading or consumptions,
employees put their services to serve the customers, and
government, Bangladesh Bank and Bangladesh Securities
and Exchange Commission provide legal & regulatory
framework, infrastructure, economic & business
environment etc. to ensure smooth operations of banking
activities with transparency and accountability.

With the support & resources from various stakeholders,

We are continuing a massive and expanded scholarship
DBBL conducts its businesses to provide services to
program since 2011 which provides yearly scholarships to
the customers and society at large and in the process
more than 20,000 students mainly studying in HSC and
creates and maximizes value for all its stakeholders
graduation levels.
in a fair, transparent and ethical way. Maximization of
DBBL has been operating mobile banking services since profit cannot be the only objective of the Bank, rather
2011 to reach the unbanked poor people of the country maximizing benefits & value for all stakeholders in a fair
to bring them under financial services network, who are and balanced way thereby maximizing welfare of the
economy & society as a whole is the objective of DBBL.
deprived from traditional banking services, living mostly in
However, profit is also important to give satisfactory
rural and remote areas
returns to all the stakeholders and to ensure sustainable
A further extension of banking for mass people to reach operations, growth and long- term solvency of the Bank
even the remotest corner of the country, DDBL has been which in turns enable the Bank to contribute in a greater
operating agent banking services since 2015. way to the economy & society.

Economic contribution As DBBL is dependent on its stakeholders to continue its

operation and wealth creation activities, therefore, wealth
Savings, investments, employment generation, created by the Bank is also distributed to its various
productions, distribution and consumptions are essential stakeholders. Shareholders get dividends, depositors get
part of any economic system. The Bank being a financial interest, employees receive salaries and government gets
intermediary plays a significant role in this process tax, VAT etc.
Measures taken by DBBL to maximize value for its stakeholders and to increase its
contribution to the economy & society in a sustainable way
DBBL as a responsible citizen has taken effective measures to continue its operations in a sustainable way thereby
to increase its contribution to the economy & society. DBBL has undertaken due process, procedures and systems in
compliance with best practices in corporate governance, risk management, regulatory requirements, environmental
issues, staff welfare, customer services and business practices to strengthen its ability to serve the stakeholders and
society increasingly in a greater way.

Creation of revenues and its distribution by DBBL

In million Taka
Period (For the year ended 31 December)
Particulars
2016 2015 2014 2013 2012
Creationofrevenues
Interestincome 15,646 16,028 15,207 14,690 13,925
Investmentincome 2,072 2,059 1,990 1,669 1,381
Commission,exchangeand brokerage 1,545 1,503 1,349 1,601 1,200
Otheroperatingincome 2,351 2,259 2,196 2,091 1,707
Totalrevenue 21,613 21,849 20,742 20,051 18,213
Distributionofrevenues
Todepositorsandlendersasinterest
5,682 6,240 6,873 7,353 6,919
ondepositsandborrowingsetc.
Toemployeesassalaryand allowances 3,049 2,885 2,901 3,483 3,087
Tosuppliersforprovidinggoods& services 5,787 4,765 4,327 3,370 2,413
Depreciation 1,573 1,525 1,316 1,261 588
Loanlossprovisionandother provisions 2,288 167 806 1,037 389
ToGovernmentasincometax 2,150 3,223 2,698 2,179 2,497
ToDeferredtax (678) 24 (386) (632) 6
Tostatutoryreservefund 647 1,253 904 709 963
ToShareholders 1,116 1,767 1,303 1,291 1,351
Ascashdividend 600 800 800 309 309
AsBonusshare - - - - -
AsDividendequalization reserve 200 400 400 155 155
Asretainedearnings 316 567 103 827 887
Total 21,613 21,849 20,742 20,051 18,213

21,849
21,613
20,742
20,051
Taka in Million

18,213

2012 2013 2014 2015 2016

TOTAL REVENUE

ANNUAL REPORT 2016 43

Economic Value Added (EVA) Statement
Economic value added (EVA) is a key performance indicator to measure profitability of a Bank as compared
to cost of equity capital. It indicates how much excess value has been created by the Bank for its shareholders after
deducting the minimum rate of return required by the shareholders i.e. cost of equity. DBBL has been consistently able
to deliver higher EVA to its shareholders:

Economic Value Addition by DBBL

In million Taka
Period (For the year ended 31 December)
Particulars
2016 2015 2014 2013 2012
Investedfundbytheshareholders
Shareholdersequity 17,660 16,754 14,517 12,642 10,854
Add:Provisionforloansandoff-balance sheetexposures 7,096 4,828 4,679 3,827 2,779
Add:Deferredtaxprovision(net) 783 1,954 996 1,392 2,000
Totalinvestedfundbytheshareholders 25,539 23,536 20,193 17,861 15,633
Averageinvestedfundbytheshareholders[A] 24,538 21,864 19,027 16,747 14,298
Earningsfortheyear
Profitbeforetaxation 3,234 6,267 4,519 3,547 4,817
Add:Provisionforloansandoff-balance
Sheetexposuresandotherprovisions 2,288 167 806 1,037 389
Less:Loanwritten-off 357 50 136 214 204
Less:Cashtaxespaid 2,642 2,288 2,708 2,155 2,134
Earningfortheyear[B] 2,522 4,096 2,480 2,215 2,868
Costofequity(Onthebasisofthe weighted average
annual yieldof 364-day treasury bills plus 2%
risk premium)[C] 7.0% 10.4% 11.6% 12.9% 13.3%
Costofaverageequity[D=AXC] 1,705 2,275 2,209 2,156 1,900
Economicvalueadded[BD] 817 1,821 271 59 968

1,821
Taka in Million

968
817

271
59
2012 2013 2014 2015 2016
Market Value Added Statement

Market Value Added (MVA) is the difference between the total market value (Based on the price quoted in
the main bourse of the country) of equity and the total book value of equity of the Bank as at the reporting date. The
higher MVA means that the market is confident in sustainable and progressive business & profit growth and cash
flows of the Bank.
The following table shows that DBBL has been able to earn confidence of the shareholders & market in its ability to
deliver higher value to the shareholders in future years:

Market Value Added (MVA) Statement

In million Taka

Period (For the year ended 31 December)

Particulars
2016 2015 2014 2013 2012

Totalmarketvalueoftheequity 23,340 21,520 21,160 20,940 22,850

Less:Totalbookvalueoftheequity 17,660 16,754 14,517 12,642 10,854

Marketvalueadded 5,680 4,766 6,643 8,298 11,996

11,996

8,298
Taka in Million

6,643

5,680
4,766

2012 2013 2014 2015 2016

ANNUAL REPORT 2016 45

Social Contribution contributed Taka 5,861.0 million to national exchequer as
against Taka 4,787.1 million in the previous year.
DBBL being a responsible corporate citizen of the country
has been playing a pioneering role in implementing 5,861
various social and philanthropic programs to help
5,193
disadvantaged people of the country. Education,
4,566 4,787
healthcare, human resource development, conservation
of nature, creation of social awareness, rehabilitation of 4,087
distress humanities and such other programs to redress
human sufferings are some of the important areas where
the Bank carries out its social and philanthropic activities.

Taka in Million
In order to discharge activities related to Social Cause
Programs in an effective way, DBBL established the
Dutch-Bangla Bank Foundation (DBBF) in 2001 in
which contribution is made by the Bank to carry out
highly important social cause programs in the areas of
2012 2013 2014 2015 2016
education, healthcare etc. DBBLs contribution to Social
cause programs was Taka 838.2 million in 2016 compared CONTRIBUTION TO NATIONAL EXCHEQUER
to Taka 901.7 million in 2015.

With the aim of illuminating lives of tens of thousands Human Resources

of students with the light of education, DBBL continued The Banks Human Resources policies are based on trust
its newly expanded and massive scholarship program in and relationship. The Banks policy is to look after people
2016 which would provide yearly to more than 20,000 who want to make a long-term career with the Bank
meritorious but needy students studying in HSC and because trust and relationship are built over time.
graduation levels. A number of well thought out policies are in place for
welfare of employees in DBBL those are in addition to
competitive compensation package available in the
1,116
industry:
838
788
902 l DBBL Provident Fund
l DBBL Superannuation Fund
528
l DBBL Gratuity Fund
l House Building Loan Scheme
l Car lease finance scheme
l Festival bonus
l Performance bonus and
2012 2013 2014 2015 2016 l Study leave
CONTRIBUTION TO SOCIAL CAUSE (TAKA IN MILLION)
Career development and training program
DBBL attaches utmost importance to the development of
Contribution to the national exchequer its employees through continuous training so that DBBL
executives can have competitive advantage in the market.
DBBL made significant contribution to the government
The training need of individual employees including
in boosting its revenue collection. As per the prevailing
training need for introducing new products, services and
law of the country, the Bank being a corporate citizen technology is evaluated on a continuous and systematic
pays tax and VAT on its own income. Besides, the Bank way. DBBL executives are encouraged to attend high
deducts income tax, VAT and excise duty at source from quality training at home and abroad to develop and
clients, depositors and suppliers, and deposits the same broaden existing knowledge and skills and to acquire new
to the national exchequer. During the year 2016, the Bank skills and expertise.
 Serial Number of Number of
Subject
No courses Participants

1 Training Courses

a FoundationTrainingCourse 9 508

b Credit Risk Management 3 90

c International Trade and Foreign Exchange 3 119

Sub-total of training 15 717

2. Workshop

a Prevention of Money Laundering and Combating Terrorist Financing 6 473

b Green Banking 1 64

c Merchant Acquiring AROs and Merchant Managers 1 60

d Integrated Supervision System (ISS) Reporting 1 119

e Error Free CTR & STR 1 38

f Workshop on Internal Control & Compliance 1 41

g Trade Service Operation: for ensuring smooth customer services 1 79

h Ethics and integrity 2 120

i Credit Monitoring & Recovery Tools and Techniques 1 60

Sub-total of workshop 15 1,054

Grand total of training and workshop 30 1,771

Banking Automation milestone in the banking sector of the country. In many

areas of banking service DBBL has been the leader &
In todays global business scenario, particularly in banking shown path to others.
sector, technology plays a vital role in executing all sorts
of customer friendly banking operations with cost- It has setup country's largest ATM network comprising of
effective services. In this sector, competition is rising more than 4,300 ATMs at the end of 2016. DBBL has
steadily day by day. As a result, technology has become introduced Fast Tracks for the first time in the country
an aide of necessity rather than option in financial to ensure better and wider range of services to its valued
institutions just to satisfy the growing service demand of customers.
the customer in a cost effective way. Keeping this in view,
the bank has adopted many technology based solutions DBBL has also launched the first ever e-payment gateway
that has placed our bank at the zenith of the technological of the country which has started bringing a change in the
advancement in our banking industry. online purchase and other services gradually. All these

Since the start of its operation, Dutch-Bangla Bank have been possible with the help of a well-trained, highly
Limited has been continuously striving towards professional work force and a strong IT infrastructure.
bringing world-class technology driven banking services, To run all the services smoothly DBBL has invested a
conveniences and satisfaction to its customers setting a substantial amount in developing its IT backbone.

ANNUAL REPORT 2016 47

Automated Teller Machine (ATM) POS (Point of Sales) Merchants
DBBL started its ATM/POS service back in 2004 and
became the leader soon. The ever expanding DBBL ATM POS business team acquires new retail outlets (POS

network is a mystery to other players of the country. Merchants) and installs Point of Sales (POS) machines in
the outlets. DBBL Nexus, VISA, MasterCard, Union Pay,
4,331 Discover, Diners Club card users can make transaction
3,588 through EMV readable POS machines.

2,705 17,227
2,454
2,366 15,396
Number

11,791

Taka in Million
2012 2013 2014 2015 2016
6,675
ATM
5,135

Core Banking Software

DBBL was the first Bank in the country to introduce 2012 2013 2014 2015 2016
truly online Banking services with all delivery channels. YEAR WISE POS TRANSACTION VOLUME
To ensure better customer service, DBBL has upgraded
its core banking software from its earlier version to Flex
cube Universal Banking Solution (UBS) in 2012. It has the
following key features: Mobile Banking

l Any Branch Banking Mobile banking service, first of its kind in the country,
l Internet Banking Services introduced by DBBL in 2011, was further strengthened in
l SMS and Alert Banking Service
2016 to cover the entire Bangladesh. The mobile banking
Fast Track services were rebranded in 2016 with Rocket logo for
To provide quick and faster service and move the banking more visibility and customer-centric. The mobile banking
services to the doorsteps of our valued customers, the services are now spread all over Bangladesh.
Bank has introduced Fast Tracks (FT) for the first time in
the country. These FTs are comprised of ATMs, Deposit The services were targeted to reach the unbanked poor
Kiosks, and Customer Service help desk officers. people of the country, who are deprived from traditional
banking services, living mostly in rural and remote areas
708
to include them in financial services network through
mobile phone.
516

Compared to traditional banking, mobile banking services

365
are close to the doorsteps of customers, easier to use (can
263
be operated without writing any cheque or using any card
Number

235
but using pin number only) through mobile phone and
highly convenient for instant remittance of money from
2012 2013 2014 2015 2016
abroad or within the country to any remote destination of
FAST TRACK
the country.
 1,080

Pioneering
Financial Inclusion
DBBL started the
foundation for mobile

Number
banking in 2005. In 2011,
Bangladesh Bank gave 152
DBBL the approval to
launch the country's first
mobile banking service. 2016 2015
SUB-AGENT POINT

Technology Infrastructure

To support the on-line transactions with highest level

of security, DBBL has a robust network infrastructure
with scalable, secure, redundant and load balanced
Agent Banking architecture. DBBL is using world renowned CISCO and
Juniper devices in its network infrastructure.
Agent banking services was introduced in 2015. This
is deposit based service and extended hands of DBBL Several important projects are going on under IT
Development Division. A brief list of the majors ongoing
branches. The objective is to bring rural small depositors
projects are:
under the banking umbrella.
l Near Data Center setup
To serve this untapped and unprivileged market, a total
l Expansion of Data Center and DRS
number of 593 employees in 77 offices across the country l Document Management System
are continuously working together with agent points to l Queue Management System
meet customer requirements. In addition, all the 165
DBBL Branches have dedicated counters to serve mobile Commitment to rural area and Supporting
banking customers where they can make transactions free SME
of cost. DBBL has seven SME/Agriculture branch mainly in rural
areas to support SMEs and to bring related low income
A further extension of banking for mass people to reach
group under financial intermediation to help them
even the remotest corner of the country, agent banking become self reliant and unleash the potential of economic
services introduced in 2015 was further expanded in 2016. growth in rural area.
As many as 1080 Sub-Agent Points covering 470 Upazilas In order to reinforce our commitment to rural and
under 64 District were operating at the end of Dec 2016 to marginal people of the country, mobile banking services
serve the agent banking customers. A total of 392 Agents and agent banking services are offered by DBBL for
providing banking services to mainly those people who
were engaged in providing re-balancing service to the Sub-
are living in rural areas of the country and mostly deprived
Agents for smooth operation of customer service. of conventional banking services.

ANNUAL REPORT 2016 49

SME Financing Bangladesh Bank for the FY 2016-2017 has set a target
for DBBL of Tk.2, 650.00 million for disbursement of
In the context of Bangladesh, the development of
Cottage, Micro, Small and Medium Enterprises (CMSMEs) agricultural and rural credit. It is worth mentioning that up
can be considered as a vital instrument for poverty to June 30, 2016, DBBL has disbursed Tk. 2,331.10 million
alleviation and ensure the rapid industrialization. out of the target amount of Tk. 2,300.00 million for
the FY 2015-2016. As per guideline of Bangladesh Bank,
Since inception, DBBL is constantly working for the
betterment of the CMSME sector of the country. DBBL DBBL is actively financing in crop, fisheries, poultry and
has a well-organized and fully functional SME Division livestock sectors within which crop sector occupies the
equipped with efficient manpower and is actively majority portion.
supporting this industry through its widespread network
all over the country. Green Banking
DBBL is committed to eco-friendly business environment
and green banking
23,435 23,720
22,649
In light with Banking Regulations & Policy Department,
22,802 Bangladesh Bank vide their Circular No. 02 dated
21,095 February 27, 2011; DBBL has outlined a detail policy
guideline for implementing Green Banking activities
under a comprehensive Green Banking Policy in a formal
and structured manner in line with global norms so
as to protect environmental degradation and ensure
2012 2013 2014 2015 2016 sustainable banking practices. DBBL believes that Green
YEARLY OUTSTANDING (TAKA IN MILLION) Banks or environmentally responsible banks do not only
improve their own standards but also affect socially
Agricultural Financing
responsible behavior of other businesses.
Bangladesh Banks Agricultural & Rural Credit Policy
and Program emphasize to ensuring food security and DBBL, with the support of FMO, has established
alleviating rural poverty through escalating the scope an international standard Environmental & Social
of agricultural credit, financial inclusion, resulting in Management System (ESMS) of its own by the
increased fund flow in rural areas. Under the policy, technical assistance of a 3rd party consultant viz. F.I.
adequate credit has also been provided for two other Konsult from Czech Republic. As part of the capacity
main sub-sectors namely Fishery and Livestock alongside development program, DBBL has completed, among
the crop loan including income generating and poverty others, revision of its existing Green Banking policy along
alleviation activities in rural areas. with internationally accepted exclusion list and launched
Environmental & Social (E&S) Categorization Tool
2,954 2,909 (Environmental Risk Rating) in excel based software as
per ERM guidelines of Bangladesh Bank and international
best practices.

DBBL complies with environmental standard while

financing industrial projects. Projects with likely adverse
Taka in Million

impact on environment are strongly discouraged by

DBBL. We are trying to incorporate sound environmental
management process in business operations of projects
financed by us that can ensure healthy and sustainable
lives for our future generations. DBBL introduced a
2016 2015 guideline demanding assessment of environmental and
AGRICULTURAL FINANCING social impacts of the projects to ensure that operations of
the projects would be eco-friendly.
DBBL is sponsoring social awareness programs for Natural calamities like floods, cyclones and tidal bores
protecting the environment. Environmental degradation also result in severe socio-economic and environmental
and depletion of natural resources are matters of great damage. DBBL has been continuously creating social
concern in Bangladesh like anywhere in the world. awareness to protect the environment that is essential
Environmental degradation is taking place due to for present and future generations. With that end in view,
poverty, over population and lack of awareness about DBBL is regularly advertising in print and electronic media
the environment. It is manifested by deforestation, to develop an eco-friendly society for sustainable and
destruction of wetlands, depletion of soil nutrients etc. healthy human life.

Taka Taka
5,000,000 7,500,000
budget allocation as
donation to the victims
Climate Risk Fund of natural disasters in
for 2016. 2016 against the Climate
Risk Fund.

ANNUAL REPORT 2016 51

 corporate
governance
CORPORATE GOVERNANCE
Corporate Governance is the system of internal controls The Board is made up of seven directors including a
and procedures used to define and protect the rights and non-executive chairman (sponsor director) and two
responsibilities of various stakeholders. The Bank has non-executive sponsor directors, one non-executive
adequately complied with all the Corporate Governance director representing general public shareholders, two
Guidelines of Bangladesh Bank and Bangladesh Securities independent directors and one executive managing
and Exchange Commission (BSEC). It is ensured by the director & CEO as follows:
Board that all activities and transactions of the Bank are
conducted in compliance with international best practices Mr. Sayem Ahmed
to protect the highest interest of all the stakeholders. Sponsor Director & Chairman

Maximizing value for shareholders through performance Mr. Abedur Rashid Khan
with good governance is the responsibility of corporate Sponsor Director
management. In line with the best practice, the corporate
Mr. Bernhard Frey
governance systems and practices in DBBL are designed to
Nominee of Ecotrim Hong Kong Limited, a sponsoring
ensure adequate internal control in operational process,
shareholder
transparency and accountability in doing business and
proper and timely disclosures in financial reporting so that Mr. Md. Fakhrul Islam
value is maximized for all the stakeholders. Elected from General Public Shareholders' group
Responsibilities and functions are segregated in a Mr. Md. Nazim Uddin Bhuiyan, FCMA
way to strike the right balance between the Board and Independent Director
the Management. The Board provides leadership and
direction of the Bank, approves strategic plans and major Mr. Mohd. Khorshed Alam
policy decisions and supervises performance of the Independent Director
management. The Board is responsible for ensuring and
Mr. Abul Kashem Md. Shirin
encouraging compliance, ethical standard and integrity
Ex-officio Director (Managing Director & CEO)
throughout DBBL.

The Bank has a policy for delegation of authority. Chairman of the Board
Accordingly, authorities are delegated to CEO, other
senior management and cross functional management The non-executive Chairman of the Board is fully
committees comprising head of functional divisions independent of the Managing Director & CEO of the Bank.
and senior management to review achievements of
key objectives. The Board has also clearly delegated Independent Director
authorities to Board Committees with specific terms
DBBL has two independent directors in the Board of the
of reference which sets out their objectives and
Bank. In compliance with corporate governance guidelines
responsibilities.
of BSEC and as per rule of Bangladesh Bank, two
independent directors have been appointed in the Board
The Board of Directors.
The Board is comprised of directors having diverse skills,
Mr. Md. Nazim Uddin Bhuiyan, FCMA is an independent
experience and expertise to add value towards better
director in the Board of the Bank. Mr. Bhuiyan is a
corporate governance of the Bank and maximizing value
Professor, Department of Accounting & Information
for all stakeholders.
Systems, University of Dhaka having long 27 years of
The Board discharges its responsibilities itself or through teaching experience. He is a Fellow Member of the
various committees. The Board meets on a regular basis Institute of Cost and Management Accountants of
to discharge its responsibilities. Bangladesh.

ANNUAL REPORT 2016 55

Mr. Mohd. Khorshed Alam is also an independent l be knowledgeable about the business and
director in the Board of the Bank. Mr. Alam is a renowned challenges that DBBL is facing.
businessman, having long 41 years of business experience.
l apply prudence and judgment in decision making.
He is a director of Bangladesh Textile Mills Association,
Dhaka and Managing Director of Duptara Spinning Mills l display commitments to the Bank and its all
Ltd. and Intimate International Ltd. stakeholders through participation in the affairs of
the Bank.
Key objectives of the directors
The Board is responsible for ensuring governance and
Number of Board Meeting held in 2016
performance of the company by directing and overseeing Number of Board Meetings held in 2016 and the
activities of the executive management by making attendance of each Director are shown in Annexure A of
them transparent, accountable and responsible. The Corporate Governance Guidelines of BSEC.
directors are expected to protect the long term interest
of the shareholders and all stakeholders by setting The Committees of the Board of Directors
key objectives for the management and by monitoring
and ensuring that those objectives are achieved by the As per Bangladesh Bank guidelines, the Board has
management in a sustainable way while maintaining three committees namely Executive Committee, Audit
transparency and accountability at every stage of Committee and Risk Management Committee. Each
operations. Committee operates under specific Terms of Reference
(TOR) that sets out its responsibilities and composition.
The Board must be satisfied that sufficient risk
management systems are in place to mitigate core risks of The TORs are designed and reviewed to ensure that the
the Bank and that there are adequate checks and balances objectives of each committee are achieved in an effective
in the internal control system to protect the value and way and that regulatory obligations and obligation to
quality of assets of the Bank. shareholders are fulfilled. The Committee regularly
evaluates progress towards key objectives. Accordingly,
The Board of Directors is entitled to timely, accurate time and efforts are dedicated to focus on responsibilities
and adequate information & data to ensure effective those are central to achieve the core objectives of
control over operational, financial, strategic, compliance, respective committees.
governance and risk management issues of the Bank.
Executive Committee of the Board
The Board is responsible for ensuring the
The Executive Committee of the Board is comprised of
following
the following members of the Board.
l Policy formulation and implementation, risk
Mr. Abedur Rashid Khan : Chairman
management, internal control, internal audit and
Mr. Sayem Ahmed : Member
its compliance.
Mr. Abul Kashem Md. Shirin : Member
l Setting key targets of the Bank and monitoring
progress towards achievement of such targets. Responsibility of Executive Committee (EC)
l Approval of major policy decisions and long term The responsibility of Executive Committee of the Board
strategic plans to achieve key objectives in an is clearly delegated by the Board in line with regulatory
efficient and effective way. guidelines. Accordingly, the EC exercises all the powers
and functions on behalf of the Board in regard to:
l Disclosure of accurate, timely and reliable
information to shareholders. l approving credit proposals and monitoring quality
of loan portfolio;
They are expected to l administrative affairs; and
l demonstrate the highest professional and ethical l financial affairs.
standards.
However, all policy matters and strategic issues are dealt
l be fully independent from management. with by the Board of Directors of the Bank.
Audit Committee of the Board (AC) Directors Responsibility for Internal
The Audit Committee of the Board is comprised of the
Control and Financial Reporting
following non-executive members of the Board Directors statement on their responsibility for internal
control and financial reporting of the Bank is given on
Mr. Md. Nazim Uddin Bhuiyan, FCMA : Chairman
page 358 of this Annual Report.
Mr. Md. Fakhrul Islam : Member
Mr. Mohd. Khorshed Alam : Member
External audit
Salient Feature of the Objectives and Responsibilities
M/s. A. Qasem & Co., [A member firm of Ernst & Young
of the Audit Committee of the Board, number of Audit
Global Limited], Chartered Accountants is the statutory
Committee meeting held in 2016 and Report of the Audit
(external) auditors of the Bank. They dont provide any
Committee of the Board are given on page 70 to 71 of this
other accounting, taxation or advisory services to the
Annual Report.
Bank except certification of cash incentives payable to
exporters.
Risk Management Committee of the Board
(RMC) Compliance with Bangladesh Bank regulations
The Risk Management Committee of the Board is As a commercial bank, DBBL is regulated and supervised
comprised of the following non-executive members of by Bangladesh Bank under the Banking Companies Act,
the Board 1991 and rules and regulations made there under. DBBL
Mr. Abedur Rashid Khan : Chairman attaches highest priority to strict compliance with all
regulatory requirements of Bangladesh Bank in terms of
Mr. Sayem Ahmed : Member
core risk management, capital adequacy ratio, foreign
Mr. Md. Nazim Uddin Bhuiyan, FCMA : Member exchange regulations, liquidity management, KYC and
Salient Feature of the Objectives and Responsibilities of anti-money laundering compliance etc.
the Risk Management Committee of the Board are given
below Audit and Inspection by Bangladesh Bank
The TORs of the RMC is to oversee as to whether various Bangladesh Bank also undertakes audit & inspection of
core risks of the Bank i.e. credit risk, foreign exchange DBBL at regular intervals. Compliance with observations
risk, internal control & compliance risk, money laundering and recommendations made by Bangladesh Bank help
risk, ICT risk, operational risk , interest rate risk, liquidity the Bank to improve internal control, risk management,
risk and other residual risks have been identified and corporate governance and regulatory compliance
measured by the Bank management and whether maximizing benefit for all stakeholders.
adequate risk management and risk mitigation systems
have been put in place by the Bank management and
whether adequate provisions and capital have been Compliance with Corporate Governance
maintained against combined risks undertaken by the Guidelines of Bangladesh Bank
Bank.
DBBL has also adequately complied with Corporate
Governance Guideline of Bangladesh Bank (BRPD
Preparation of Financial Statements Circular No 11, dated October 27, 2013) in terms of overall
business activities of the Bank including credit and
Financial statements of DBBL give a true and fair view
risk management, internal control, human resource
of the state of affairs of the Bank and the results of its
operations and cash flows. All the applicable Bangladesh management as well as income and expenses. It also fully
Accounting Standards (BAS) and Bangladesh Financial complies with formation of Board, Executive Committee,
Reporting Standards (BFRS) adopted by the Institute of Audit Committee and Risk Management Committee of
Chartered Accountants of Bangladesh (ICAB) are complied the Board and their TORs to improve overall corporate
with for preparation of financial statements. The governance system of the Bank and safeguard the interest
financial statements are prepared by the management of all stakeholders. Segregation of financial, operational
and approved by the Board of Directors and audited by and administrative authorities and responsibilities
auditors appointed in the Annual General Meeting. between Board and Management have been also ensured.

ANNUAL REPORT 2016 57

Compliance with BSEC regulations Credit Rating of the Bank

As a listed company, DBBL is regulated by the Bangladesh In line with Bangladesh Banks BRPD Circular No. 06
Securities and Exchange Commission (BSEC). We dated July 05, 2006 and in order to improve the risk
have adequately complied with corporate governance management and corporate governance system of
the Bank and to safeguard the interest of investors,
guidelines issued by the Bangladesh Securities and
depositors, creditors, shareholders and the Bank
Exchange Commission as follows:
Management as a whole, Credit Rating of the Bank
l There are two independent directors on the Board for the year 2015 was done by Credit Rating Agency of
Bangladesh (CRAB). The date of rating by CRAB was 23
of the Bank.
June, 2016.
l Both the independent directors are members of the
CRAB assigned AA1 (pronounced as double A one) rating
Audit Committee of the Board with one appointed
in the Long Term and ST-1 rating in the Short Term.
as its Chairman.
Credit rating will be done regularly on a yearly basis and
l The quorum of the Audit Committee is not credit rating of 2016 will be completed before June 30,
constituted without at least one independent 2017.
director.
Relations and communication with
l A certificate has been obtained from M/s. Hoda shareholders
Vasi Chowdhury & Co., Chartered Accountants on
The Bank attaches highest importance on two way
reporting and compliance of Corporate Governance
communications with the shareholders. The Bank believes
guidelines of BSEC.
that the shareholders should have access to all relevant
information about the Bank to make informed, judgment
l Code of Conduct for the directors as laid down by
and decisions. All the relevant information is placed in
Bangladesh Bank and Bangladesh Securities and
the website (www.dutchbanglabank.com) of the Bank for
Exchange Commission in their respective Corporate
convenience of the shareholders. As per BSEC guidelines
Governance guidelines, is followed by the directors all the price-sensitive information having any possible
and annual compliance has been reviewed and impact on share prices of the Bank are communicated
recorded. to the shareholders by publication in national dailies,
online news portal and through website of DSE, CSE and
l The Board has clearly defined the respective roles BSEC. Quarterly and Half-yearly financial statements
and responsibilities of the Chairman and the Chief are published in the national dailies and these are also
Executive Officer. communicated to all the shareholders through DSE,
CSE and BSEC. Audited yearly Financial Statements are
l The Board has also clearly defined the respective published in the national dailies. The half-yearly and
roles, responsibilities and duties of the Chief yearly results and press releases are also made available
Financial Officer (CFO), the Head of Internal Audit in our website. The Annual General Meeting provides very
and the Company Secretary. good opportunities for communication with shareholders.
All the suggestions or recommendations made by the
l The Board has clearly set forth in writing, the duties shareholders in AGM or any time during the year are
of the Audit Committee of the Board in terms of taken very seriously for compliance and better corporate
BSEC and Bangladesh Bank guidelines. governance of the Bank.
Status of compliance with the conditions imposed by Bangladesh Securities and Exchange Commissions Notification
No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012:

Compliance Status
Condition (Put in the appropriate Remarks
Title column)
No. (if any)
Complied Not Complied

1.1 The number of the Board Members of the company

Boards Size shall not be less than 5 (five) and more than 20
(twenty).
1.2 i) At least one fifth (1/5) of the total number of
Independent directors in the companys Board shall be independent
Directors directors.
ii) For the purpose of this clause Independent
director means a director-
(a) who either does not hold any share in the company
or holds less than one percent (1%) shares of the total
paid-up shares of the company;
(b) who is not a sponsor of the company and is not
connected with the companys any sponsor or director
or shareholder who holds one percent (1%) or more
shares of the total paid-up shares of the company
on the basis of family relationship. His/her family

members also should not hold above mentioned
shares in the company: Provided that spouse, son,
daughter, father, mother, brother, sister, son-in-law
and daughter-in-law shall be considered as family
members;
(c) who does not have any other relationship, whether
pecuniary or otherwise, with the company or its
subsidiary/ associated companies;
(d) who is not a member, director or officer of any

stock exchange;
(e) who is not a shareholder, director or officer of any
member of stock exchange or an intermediary of the
capital market;
(f) who is not a partner or an executive or was not
a partner or an executive during the preceding 3

(three) years of the concerned company's statutory
audit firm;
(g) who shall not be an independent director in more

than 3 (three) listed companies;
(h) who has not been convicted by a court of
competent jurisdiction as a defaulter in payment of

any loan to a bank or a Non-Bank Financial Institution
(NBFI);

ANNUAL REPORT 2016 59

 (i) who has not been convicted for a criminal offence

involving moral turpitude;
iii) the independent director(s) shall be appointed
by the Board of Directors and approved by the
shareholders in the Annual General Meeting (AGM).
iv) the post of independent director(s) cannot remain

vacant for more than 90 (ninety) days.
v) the Board shall lay down a code of conduct of all
Board Members and annual compliance of the code to
be recorded.
vi) the tenure of office of an independent director
shall be for a period of 3 (three) years, which may be
extended for 1 (one) term only.
1.3 i) Independent Director shall be a knowledgeable
Qualification individual with integrity who is able to ensure
of compliance with financial, regulatory and corporate
Independent laws and can make meaningful contribution to
Director (ID) business.
ii) The person should be a Business Leader / Corporate
Leader / Bureaucrat / University Teacher with
Economics or Business Studies or Law Background
/ Professionals like Chartered Accountants, Cost &

Management Accountants, Chartered Secretaries. The
independent director must have at least 12 (twelve)
years of corporate management / professional
experiences.
iii) In special cases the above qualifications may be Not applicable
relaxed subject to prior approval of the Commission.
1.4 The position of the Chairman of the Board and the Roles and
Chairman of Chief Executive Officer of the companies shall be filled responsibilities
the Board by different individuals. The Chairman of the company are as per
and Chief shall be elected from among the directors of the Bangladesh
Executive company. The Board of Directors shall clearly define Bank guidelines
Officer respective roles and responsibilities of the Chairman and service rules
and the Chief Executive Officer. of the Bank.

1.5: The Directors Report to Shareholders

i. Industry outlook and possible future developments in

the industry.
ii. Segment-wise or product-wise performance.
iii. Risks and concerns.
iv. A discussion on Cost of Goods Sold, Gross Profit Not applicable
Margin and Net Profit Margin.
v. Discussion on continuity of any Extra-Ordinary gain or Not applicable
loss.
 vi. Basis for related party transactions- a statement of all
related party transactions should be disclosed in the
annual report.
vii. Utilization of proceeds from public issues, rights IPO was made
issues and / or through any others instrument. in 2001 and
the IPO fund
were used for
acquisition of
fixed assets and
lending
viii. An explanation if the financial results deteriorate Not applicable
after the company goes for Initial Public Offering
(IPO), Repeat Public Offering (RPO), Rights Offer,
Direct Listing, etc.
ix. If significant variance occurs between Quarterly Not applicable
Financial Performance and Annual Financial
Statements the management shall explain about the
variance on their Annual Report.
x. Remuneration to directors including independent

directors.
xi. The financial statements prepared by the
management of the issuer company present fairly its

state of affairs, the result of its operations, cash flows
and changes in equity.
xii. Proper books of account of the issuer company have

been maintained.
xiii. 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.
xiv. International Accounting Standards (IAS) /
Bangladesh Accounting Standards (BAS) /
International Financial Reporting Standards (IFRS)
/ Bangladesh Financial Reporting Standards (BFRS),
as applicable in Bangladesh, have been followed
in preparation of the financial statements and any
departure there-from has been adequately disclosed.
xv. The system of internal control is sound in design and

has been effectively implemented and monitored.
xvi. There are no significant doubts upon the issuer Not applicable
companys ability to continue as a going concern. If
the issuer company is not considered to be a going
concern, the fact along with reasons thereof should be
disclosed.
xvii. Significant deviations from the last years operating Not applicable
results of the issuer company shall be highlighted and
the reasons thereof should be explained.

ANNUAL REPORT 2016 61

 xviii. Key operating and financial data of at least preceding

5 (five) years shall be summarized.

xix. If the issuer company has not declared dividend (cash Not applicable
or stock) for the year, the reasons thereof shall be
given.

xx. The number of Board meeting held during the year

and attendance by each director shall be disclosed.

xxi. The pattern of shareholding shall be reported to

disclose the aggregate number of shares (along with
name wise details where stated below) held by:-

(a) Parent / Subsidiary / Associated Companies and Not applicable

other related parties (name wise details);

(b) Directors, Chief Executive Officer, Company

Secretary, Chief Financial Officer, Head of Internal

Audit and their spouses and minor children (name
wise details);

(c) Executives;

(d) Shareholders holding ten percent (10%) or more

voting interest in the company (name wise details).

xxii. In case of appointment / re-appointment of a director

the company shall disclose the following information
to the shareholders:-

(a) a brief resume of the director;

(b) nature of his / her expertise in specific functional

areas;

(c) names of companies in which the person also holds

the directorship and the membership of committees
of the board.

2.00: Chief Financial Officer (CFO), Head of Internal Audit and Company Secretary (CS)

2.1 The company shall appoint a Chief Financial Officer

(CFO), a Head of Internal Audit (Internal Control and
Appointment
Compliance) and a Company Secretary (CS). The Board

of Directors should clearly define respective roles,
responsibilities and duties of the CFO, the Head of
Internal Audit and the CS.
2.2 The CFO and the Company Secretary of the companies
shall attend the meetings of the Board of Directors,
Requirement
provided that the CFO and / or the Company Secretary
to attend
shall not attend such part of a meeting of the Board
the Board
of Directors which involves consideration of an agenda
Meetings
item relating to their personal matters.
3.00: Audit Committee

i. The company shall have an Audit Committee as a sub-

committee of the Board of Directors.
ii. The Audit Committee shall assist the Board of
Directors in ensuring that the financial statements
reflect true and fair view of the state of affairs of the
company and in ensuring a good monitoring system
within the business.
iii. The Audit Committee shall be responsible to the Board As per
of Directors. The duties of the Audit Committee shall Bangladesh

be clearly set forth in writing. Bank and BSEC
guidelines

3.1: Constitution of the Audit Committee

i. The Audit Committee shall be composed of at least 3

(three) members.
ii. The Board of Directors shall appoint members of the
Audit Committee who shall be directors of the company
and shall include at least 1 (one) independent director.
iii. All members of the Audit Committee should be
financially literate and at least 1 (one) member shall

have accounting or related financial management
experience.
iv. When the term of service of the Committee members
expires or there is any circumstance causing any
Committee member to be unable to hold office until
expiration of the term of service, thus making the
number of the Committee members to be lower
than the prescribed number of 3 (three) persons, the Not applicable
Board of Directors shall appoint the new Committee
member(s) to fill up the vacancy(ies) immediately
or not later than 1 (one) month from the date of
vacancy(ies) in the Committee to ensure continuity of
the performance of work of the Audit Committee.
v. The company secretary shall act as the secretary of the

Committee.
vi. The quorum of the Audit Committee meeting shall not

constitute without at least 1 (one) independent director.

3.2: Chairman of the Audit Committee

i. The Board of Directors shall select 1 (one) member

of the Audit Committee to be Chairman of the Audit
Committee, who shall be an independent director.
ii. Chairman of the Audit Committee shall remain present

in the Annual General Meeting (AGM).

ANNUAL REPORT 2016 63

3.3 Role of Audit Committee

i. Oversee the financial reporting process.

ii. Monitor choice of accounting policies and principles.
iii. Monitor internal Control Risk Management process.
iv. Oversee hiring and performance of external auditors.
v. Review along with the management, the annual
financial statements before submission to the Board
for approval.
vi. Review along with the management, the quarterly and
half yearly financial statements before submission to
the board for approval.
vii. Review the adequacy of internal audit function.
viii. Review statement of significant related party
transactions submitted by the management.
ix. Review Management Letters / Letter of Internal
Control weakness issued by statutory auditors.
x. When money is raised through Initial Public Offering
(IPO) / Repeat Public Offering (RPO) / Rights Issue the
IPO was made
company shall disclose to the Audit Committee about
in 2001 and
the uses / applications of funds by major category
the IPO fund
(capital expenditure, sales and marketing expenses,
were used for
working capital, etc), on a quarterly basis, as a part of
acquisition of
their quarterly declaration of financial results. Further,
fixed assets
on an annual basis, the company shall prepare a
and lending
statement of funds utilized for the purposes other than
those stated in the offer documents / prospectus.

3.4: Reporting of the Audit Committee

3.4.1 i) The Audit Committee shall report on its activities to

the Board of Directors.
Reporting to
the Board of ii) The Audit Committee shall immediately report to the
Directors Board of Directors on the following findings, if any:-
(a) report on conflicts of interests; Not applicable
(b) suspected or presumed fraud or irregularity or Not applicable
material defect in the internal control system;
(c) suspected infringement of laws, including securities Not applicable
related laws, rules and regulations;
(d) any other matter which shall be disclosed to the Not applicable
Board of Directors immediately.
3.4.2 If the Audit Committee has reported to the Board of Not applicable
Directors about anything which has material impact
Reporting on the financial condition and results of operation
to the and has discussed with the Board of Directors and the
Authorities management that any rectification is necessary and if
the Audit Committee finds that such rectification has
been unreasonably ignored, the Audit Committee shall
report such finding to the Commission, upon reporting
of such matters to the Board of Directors for three
times or completion of a period of 6 (six) months from
the date of first reporting to the Board of Directors,
whichever is earlier.

3.5: Reporting to the Shareholders and General Investors

Report on activities carried out by the Audit

Committee, including any report made to the Board
of Directors under condition 3.4.1 (ii) above during the

year, shall be signed by the Chairman of the Audit
Committee and disclosed in the Annual Report of the
issuer company.

4.00: External / Statutory Auditors

The issuer company should not engage its external / statutory auditors to perform the following services of the
company; namely:-

i. Appraisal or valuation services of fairness opinions.

ii. Financial information systems design and

implementation.
iii. Book-keeping or other services related to the

accounting records or financial statements.
iv. Broker-dealer services.
v. Actuarial services.
vi. Internal audit services.
vii. Any other service that the Audit Committee

determines.
viii. No partner or employees of the external audit firms
shall possess any share of the company they audit at

least during the tenure of their audit assignment of
that company.
ix Audit / certification services on compliance of
corporate governance as required under clause (i) of
condition No. 7.

ANNUAL REPORT 2016 65

5.00: Subsidiary Company

i. Provisions relating to the composition of the Board Not applicable

of Directors of the holding company shall be made (a subsidiary
applicable to the composition of the Board of Directors company was
of the subsidiary company. incorporated in
2010 and did
not start any
operation)

ii. At least 1 (one) independent director on the Board of Not applicable

Directors of the holding company shall be a director on
the Board of Directors of the subsidiary company.

iii. The minutes of the Board meeting of the subsidiary Not applicable
company shall be placed for review at the following
Board meeting of the holding company.

iv. The minutes of the respective Board meeting of the Not applicable
holding company shall state that they have reviewed
the affairs of the subsidiary company also.

v. The Audit Committee of the holding company shall Not applicable

also review the financial statements, in particular the
investments made by the subsidiary company.

6.00: Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO)

The CEO and CFO shall certify to the Board that:-

i. They have reviewed financial statements for the year

and that to the best of their knowledge and belief:

(a) these statements do not contain any materially

untrue statement or omit any material fact or contain
statement that might be misleading;

(b) these statements together present a true and fair

view of the companys affairs and are in compliance
with existing accounting standards and applicable
laws.

ii. There are, to the best of knowledge and belief, no

transactions entered into by the company during the

year which are fraudulent, illegal or violation of the
companys code of conduct.
7.00: Reporting and compliance of Corporate Governance

i. The company shall obtain a certificate from a

practicing Professional Accountant / Secretary
(Chartered Accountant / Cost & Management
Accountant / Chartered Secretary) regarding

compliance of conditions of Corporate Governance
Guidelines of the Commission and shall send the same
to the shareholders along with the Annual Report on a
yearly basis.
ii. The directors of the company shall state, in accordance
with the Annexure attached, in the directors report

whether the company has complied with these
conditions.

Annexure-A
13 (thirteen) meetings of the Board of Directors were held in the year 2016. Attendance of the
Hon'ble Directors is given below:

Sl. No. of No. of

Name of Directors Remarks
No. Attendance Absence

01. Mr. Sayem Ahmed 12 01 He was pre-occupied and Leave of absence was granted
by the Board.

02. Mr. Abedur Rashid Khan 13 -

03. Mr. Bernhard Frey 01 12 i) Nominee of M/s. Ecotrim Hong Kong Limited.

ii) He was Pre-occupied and leave of absence was

granted by the Board.

04. Mr. Md. Fakhrul Islam 11 02 He was pre-occupied and Leave of absence was granted
by the Board.

05. Mr. Md. Nazim Uddin Bhuiyan, 11 02 He was pre-occupied and leave of absence was granted
FCMA by the Board.

06. Mr. Mohd. Khorshed Alam 13 -

07. Mr. K. Shamshi Tabrez 11 - i) Retired from the office of the Managing Director
Ex-officio Director with effect from at the close of business of 31st
(Managing Director) October 2016.
ii) During his period 11 (eleven) meetings were held.

08. Mr. Abul Kashem Md. Shirin 02 - i) Appointed as Managing Director & CEO with
Ex-officio Director effect from November 01, 2016.
(Managing Director & CEO) ii) During his period 02 (two) meetings were held.

ANNUAL REPORT 2016 67

 Annexure B
The pattern of Shareholding of Dutch-Bangla Bank Limited as of 31 December 2016 as per BSECs Notification No. SEC/
CMRRCD/2006-158/134/Admin/44 dated 07 August 2012:

(i) Shareholding by Parent/Subsidiary/Associated Companies and other related parties: Nil

(ii) Shareholding by:

Directors : Given in the notes to the Financial Statements (Note 16.5)

MD & Chief Executive Officer : Nil

Company Secretary : Nil

Chief Financial Officer : Nil

Head of Internal Audit : Nil

Spouse of above Executives : Nil

(iii) Shareholding by Executives : Nil

(iv) Shareholders holding ten percent (10%) or more shares:

Sl. No. Name of the shareholders No. of shares as of 31 December 2016

01 Mr. Mohammed Sahabuddin Ahmed 44,424,650 shares = 22.21%

02 Mr. Md. Abdus Salam* 29,763,330 shares = 14.88%

03 M/s. Ecotrim Hong Kong Limited 49,471,880 shares = 24.74%

*Change of name of the owner of 29,763,330 Shares from Mr. Md. Abdus Salam to M/s. Horizon Associates Ltd. is under process in
terms of the Decree of the Court.

Information of Directors in compliance with the condition No. 1.5 (xxii) of Corporate Governance guidelines dated
07 August 2012 of Bangladesh Securities and Exchange Commission (BSEC):

Sl. Date of Educational

Name of the Director Experience CIB Status
No. Birth Qualification
01. Mr. Sayem Ahmed 10/12/1985 i) Bachelor He is a businessman having 18 years Clean
of Software experience.
Sponsor Director & Chairman (Unclassified)
Engineering, He is a Director of
University of i) Kader Compact Spinning Ltd.; and
Toronto, Canada;
ii) AA Yarn Mills Ltd.
and
Deputy Managing Director of
ii) Certified i) Kader Synthetic Fibres Ltd.;
Managerial
ii) MSA Spinning Ltd.;
Accountant (CMA),
University of iii) AA Synthetic Fibres Ltd.;
Toronto, Canada. iv) SR Synthetic Fibres Ltd.; and
v) AA Power Generation Co. Ltd.
Sl. Date of Educational
Name of the Director Experience CIB Status
No. Birth Qualification
02. Mr. Abedur Rashid Khan 12/09/1950 B. Sc. He is a businessman having 28 Clean
years of experience specially in
Sponsor Director (Unclassified)
Export- Import trading. He is
proprietor of Avanti International
Ltd. and Chairman of Nextgen
Trading Ltd.

03. Mr. Bernhard Frey 18/12/1949 Chartered He has 35 years of business Clean
Accountant experience. He is the Managing
Nominee Director (Unclassified)
Director of M/s. Ecotrim Hong Kong
Limited.

Information of remaining Directors

Sl. Date of Educational
Name of the Director Experience CIB Status
No. Birth Qualification
01. Mr. Md. Fakhrul Islam 01/01/1966 B. Sc. Engineering He has 22 years of business Clean
(Buet) experience. He is Managing Director
Director from the General Public (Unclassified)
of M/s. Adept Ltd. and proprietor of
Shareholders group
M/s. Dev Con.

02. Mr. Md. Nazim Uddin Bhuiyan, 15/07/1965 B. Com. (Hons), He is a Professor of Department of Clean
FCMA M. Com Accounting & Information Systems,
(Unclassified)
(Accounting), Dhaka University having 27 years of
Independent Director
University of Dhaka, teaching experience.
FCMA

03. Mr. Mohd. Khorshed Alam 06/06/1950 Bachelor of He has 41 years of business Clean
Commerce (under experience. He is a Director
Independent Director (Unclassified)
University of Dhaka) of Bangladesh Textile Mills
Association, Dhaka and Managing
Director of
i) M/s. Duptara Spinning Mills Ltd.;
and
ii) M/s. Intimate International Ltd.

04. Mr. Abul Kashem Md. Shirin 07/02/1961 i) Master of He has 31 years of experience Clean
Engineering from in Commercial Banks and Govt.
Ex-officio Director (Unclassified)
BUET, Dhaka; and organization.
(Managing Director & CEO)
ii) Master of
Engineering from
Asian Institute
of Technology,
Bangkok, Thailand.

ANNUAL REPORT 2016 69

Report of the Audit Committee of the Board as per compliance and regularization of recommendations
Bangladesh Securities and Exchange Commission made by the auditors.
Notification No. SEC/CMRRCD/2006-158/134/Admin/44
l Reporting to the Board of Directors on mistakes,
dated August 07, 2012 on Corporate Governance. frauds and forgeries and other irregularities, if
The Audit Committee of the Board was first duly any, observed by internal / external auditors and
regulatory authority for guidelines of the Board.
constituted by the Board of Directors of the Bank in
accordance with the BRPD Circular Number 12 dated l Reviewing compliance of all applicable rules and
December 23, 2002 of Bangladesh Bank. Subsequently, regulations and the directives made by the Board of
the Committee was reconstituted several times due Directors of the Bank and controlling authorities.
to change of Members of the Board of Directors / l Review statement of significant related party
Committee and to comply with the rules and regulations transactions submitted by the management.
of Bangladesh Bank as well as Bangladesh Securities and
Exchange Commission. Accordingly, last 24 December l Review Management Letters / Letter of Internal
2014, the Audit Committee was reconstituted in 148th Control weakness issued by statutory auditors.
meeting of the Board of Directors in compliance with the l Reviewing the financial statements and consult
BRPD Circular No. 11 dated 27 October 2013. with the external auditor and management team of
the Bank before finalization.
The objectives of the Audit Committee are to assist the l The committee will submit a report on quarterly
Board of Directors mainly in the following areas: basis to the Board of Directors for compliance on
mistakes, frauds & forgeries and other irregularities,
Establishing a compliance culture through adequate if any, identified by internal auditor, external
internal control system to ensure that sufficient risk auditor and Bangladesh Bank inspection team.
management system is in place to manage core risks of
the Bank and that financial reports disclosed by the Bank l The Committee will evaluate the efficiency and
are reliable. effectiveness of internal audit.
l The internal auditor and external auditor will
l Developing an adequate Information Technology
submit an evaluation report on the concerned
(IT) and MIS and establishing sufficient control
subject after verified by the Committee.
system in IT operations to protect the Bank against
any operational risk. l The Committee will regularly evaluate its activities
and other supervising activities vested by the Board
l Ensuring true and fair presentation of financial of Directors.
statements with adequate disclosure in compliance
l Monitor Internal Control Risk Management process.
with Bangladesh Accounting Standards /
Bangladesh Financial Reporting Standards / l Review along with the management, the quarterly
Accounting Standard as directed by Bangladesh and half yearly financial statements before
Bank. submission to the board for approval.
l Reviewing the internal audit procedure of the l The Audit Committee will evaluate the audited
Bank to ensure to work independently from the accounts and report thereon made by the external
management of the Bank. auditors.

l Reviewing the adequacy and effectiveness In pursuance of the objectives, fifteen (15) meetings
of the Audit Committee of the Board were held during
of internal audit and whether management is
the year 2016. The Committee reviewed compliance of
complying with recommendations made by the policy issues, regulations and applicable laws in general
internal audit and external audit to ensure good and audit reports submitted by Banks Internal Control
monitoring system within the business. & Compliance Division as well as reports of external
l Reviewing whether the officers / staffs of the auditors.
Bank are clearly advised regarding their duties & Upon review of 488 audit reports on Branches and Head
responsibilities and evaluating their performance Office Divisions submitted in fifteen (15) meetings by
through the report of the Internal Auditor. Banks Internal Control & Compliance Division, the Audit
Committee issued a number of instructions and provided
l Recommending appointment of external auditors guidelines to improve the state of operation, internal
and special auditors, if any, to the Board and also control and compliance procedure and risk management
reviewing audit works and reports submitted by system of the Bank including operational risk, credit risk
external auditors and special auditors to ensure and documentation.
The Committee also instructed for immediate compliance l To prepare manpower planning of the Branches.
of all issues raised and stressed the need for compliance
l To maintain Departmental Control Function Check
on the part of the managers/divisional heads and to
List (DCFCL).
review the progress on a regular basis and to submit
updated compliance reports to Internal Control & l To maintain fire proof safe custody for ensuring
Compliance Division. security of documents.

The Committee, among others, put special emphasis on l To open accounts with proper documents and
the following areas: complying all the rules and regulations in force.

l To comply with all the requirements of the l To secure the vault room of the Branch.
regulatory circulars meticulously provided by
l To obtain the network document and electric design
the Regulatory Authority like Bangladesh Bank,
diagram of the Branches.
Bangladesh Securities and Exchange Commission
(BSEC) etc. l To strengthen the internal control system.

l To give emphasis on improving the customer l To implement the Core Risk Management
services as well as ATM service. Guidelines.

l To complete all documentation formalities in the l To regularize various lapses, irregularities in general
loan accounts and foreign trade, if any. banking, foreign trade and credit in the Branches.

l To improve the deposit mix with a view to bringing The Committee also reviewed the audited financial
down the cost of fund. statements as of 31 December 2015, first quarter financial
statement as of 31 March 2016, half-yearly financial
l To give emphasis on account opening, retail and
statements as of 30 June 2016 and third quarter financial
SME business.
statements as of 30 September 2016 of the Bank.
l To take necessary actions for proper and prompt
While observing financial statements, the Committee
delivery of ATM cards and cheque books.
thoroughly reviewed adequacy of provisions made against
l Not to provide EOL without the approval of the loans and advances and other assets and Capital to Risk-
competent authority of the Bank. weighted Assets Ratio.

l To complete Balancing / Breakup of GL Heads. The Committee stressed the need for close co-ordination
between External Auditors and Internal Control &
l To check the daily activity reports of the Branches
Compliance Division for continuous improvement of
regularly.
internal control procedure and risk management system
l To complete the audit of the new Branches within of the Bank.
06 (six) months from the date of the opening with a
view to complying with the irregularities at the early
stage.

l To comply the Anti Money Laundering rules and

regularize the KYC profiles.
Md. Nazim Uddin Bhuiyan, FCMA
l To define roles and responsibilities of all officers of Chairman
the Branch. Audit Committee of the Board

ANNUAL REPORT 2016 71

February 22, 2017

To
The Board of Directors
Dutch-Bangla Bank Limited
Head Office, Dhaka

Subject: Certification of Managing Director & CEO and Chief Financial Officer
(CFO) to the Board.

In terms of the Notification of Bangladesh Securities and Exchange Commission (BSEC)

bearing No. SEC/CMRRCD/2006-158/134/Admin/44 dated August 07, 2012, both we,
the undersigned Managing Director & CEO and Chief Financial Officer (CFO) do hereby
certify that we have reviewed the financial statements for the year ended 31 December
2016 of Dutch-Bangla Bank Limited (DBBL) and to the best of our knowledge and belief:

i) (a) these statements do not contain any materially untrue statement or omit any
material fact or contain statements that might be misleading; and

(b) these statements together present a true and fair view of the Companys
affairs and are in compliance with existing accounting standards and applicable
laws.

ii) no transactions entered into by the Company during the year which are fraudulent,
illegal or violation of the Companys code of conduct.

Khan Tariqul Islam, FCA Abul Kashem Md. Shirin

Chief Financial Officer (CFO) Managing Director & CEO
Certificate on Compliance of Conditions of Corporate Governance Guidelines to
the Shareholders of Dutch-Bangla Bank Limited

We have examined the compliance of condition of corporate governance guidelines

of the Bangladesh Securities and Exchange Commission (BSEC) by Dutch-
Bangla Bank Limited (the Bank) as stipulated in the BSEC notification no. SEC/
CMRRCD/2006-158/134/Admin/44 dated 7th August 2012 and subsequent modification
SEC/CMRRCD/2006-158/147/Admin/48 dated 21 July 2013 as at 31st December 2016.

The Banks Responsibilities

Those charged with governance and management of the Bank are responsible for
complying with the conditions of corporate governance guidelines as stated in the
aforesaid notification and reporting of the status of compliance in the annual report.

Our Responsibilities
Our examination for the purpose of issuing this certification was limited to the checking
of procedures and implementations thereof, adopted by the Bank for ensuring the
compliance of conditions of corporate governance and correct reporting of compliance
status on the attached statement on the basis of evidence gathered and representation
received.

Conclusion
To the best of our information and according to the explanations given to us, we certify
that the Bank has complied with the conditions of corporate governance stipulated in
the above mentioned BSEC notification and reported thereon.

Dated: Dhaka Manzoor Alam, FCA

26 February 2017 Senior Partner
ICAB Enrolment Number 132
For Hoda Vasi Chowdhury & Co
Chartered Accountants

ANNUAL REPORT 2016 73

 risk
management
RISK MANAGEMENT
FRAMEWORK AND STRATEGY
The objective of risk management system is to identify, In DBBL, only calculated risks are taken while
assess, record and actively manage any internal or conducting banking business to strike a balance
external risks that could pose a threat to the attainment between risk and return. Risk is clearly identified,
of the Banks corporate goals. mitigated or minimized and if possible eliminated
to protect capital and to maximize value for the
In this section a summarized position of various shareholders.
inherent and potential risks, DBBL is facing, while
conducting its business and operations and steps taken DBBL follows the Tone at the Top strategy for overall
by the Bank to effectively manage and mitigate such risk management. That means, ultimate responsibility
risks are discussed. for effective risk management of the Bank lies with
the Board of Directors. The Board itself and through
delegated authority to various committees of the
Risk Management Framework
Board, like Audit Committee, Executive Committee
Risk is defined by DBBL as risk of potential losses and Risk Management Committee sets principles and
or foregone profits that can be triggered by internal limits, reviews and monitors various risks to assess
and external factors. Therefore, the objectives of risk adequacy of the system and to ensure that the Bank
management are identification of potential risks in our is operating within approved systems & procedures.
operations and transactions, in our assets, liabilities, Through delegated authority, management committees,
income, cost and offbalance sheet exposures and like ALCO, Credit Committee, Management Committee
independent measurement and assessment of such (MANCOM) and Risk Management Committee also
risks and initiating timely and adequate measures to oversee and ensure that sufficient risk management
manage and mitigate such risks within a risk-return systems are in place and these are consistently applied
framework. to protect the interest of the Bank.

DBBL RISK MANAGEMENT FRAMEWORK

Identification of
risks / events
Decision Decision
making making

Controlling Risk assessment &

Reporting measurement

Decision Decision
making making

Risk response
Monitoring Information &
Mentoring communication

Decision
making

ANNUAL REPORT 2016 77

DBBL also follows the Three (3) Lines of Defense (LoD) ii. Reporting to a sufficiently high level in the
approach of modern risk management for the Bank-wide organization to be able to perform its duties
comprehensive risk management. Three (3) LoD of DBBL independently; and
is as under:
iii. Having an active and effective reporting line to
First Line of Defense Business and Operational the governing body.
Segment/Units: includes those functional divisions/
However, external auditors, regulators, and other
branches/units/segments who own the risks associated
external bodies reside outside the Banks structure, but
with their operational area/portfolio and primarily
they can have an important role in overall governance
responsible for managing risks under the respective
and control structure of the Bank. These stakeholders
regulatory directives for day-to-day affairs of
are also considered as additional lines of defense,
operations/business of banks.
providing assurance to the Banks shareholders,
Adequate managerial and supervisory controls have including the Board/ senior management.
been in place to ensure compliance and to highlight
A wide range of tools and techniques are used to
control breakdown, inadequate processes, and
address & mitigate all kinds of inherent and potential
unexpected events.
risks in banking operations. The Bank attaches highest
Second Line of Defense- Risk Management Division priority to establish, maintain and upgrade risk
and other Back-Offices: includes those divisions/units/ management infrastructure, systems and procedures. In
segments of the operations who are responsible for this regard, sufficient resources are allocated to improve
managing risk and ensuring the compliance functions skills and expertise of relevant banking professionals
to help build and/or monitor the first line-of-defense to manage the risk effectively. The policies and
controls. Top of the all functional divisions/units, procedures are approved by the Board and assessed on
Risk Management Division (RMD) is entrusted to a regular basis to bring these to the level of satisfaction
play a pivotal role for bank-wide risk management in required to manage & mitigate the risks adequately and
coordination with all concerned of the Bank. consistently.

Third Line of Defense Internal Control & Complaince:

Elements of DBBL Risk Management
Internal auditors provide the Board/Senior Management
Framework
with comprehensive assurance based on the highest
level of independence and objectivity within the With a view to achieving the overall goal and objective
organization. Internal audit provides assurance on the of the Bank through optimization of shareholders value
effectiveness of governance, risk management, and and to protect the depositors interest through trust
internal controls, including the manner in which the first & confidence on a sustained fashion, DBBL considers
and second lines of defense achieve risk management the following key elements in its risk management
and control objectives. framework:

Internal audit actively contributes to effective 1. Risk governance, Infrastructure and supporting
organizational governance providing certain conditions risk policies;
fostering its independence and professionalism are
2. Individual (per financial transaction) and Overall
met. Best practice is to establish and maintain an
(entire portfolio basis) Risk Appetite with regard
independent, adequately, and competently staffed
to Capital, Liquidity and Profitability of the
internal audit function, which includes:
Bank; and
i. Acting in accordance with recognized
3. Ensuring regulatory reporting and compliance.
international standards for the practice of
internal auditing;
RISK MANAGEMENT PROCEDURE or transactions and international best practice. These
policies are regularly reviewed and updated to keep pace
with the changing operating environment, technology
Approved predetermined policies and and regulatory requirements. Meticulous compliance
guidelines with the established procedures are ensured to satisfy
that the Bank is operating within approved procedures
To ensure that risks are properly addressed and and limits and that risks are within tolerable limits to
protected for sustainable development of the Bank, effectively ensure long term solvency and sustainable
there are approved policies and procedures covering growth of the Bank.
all the risk areas i.e. credit risk, operational risk and
market risk. These are formulated taking into account
Risk management infrastructure
Bangladesh Banks Guidelines on managing core risks
on Asset-Liability Risk Management, Credit Risk Risk management procedures are approved, monitored,
Management, Internal Control & Compliance Risk and mitigated at various stages of the Bank with a
Management, Foreign Exchange Risk Management, combination of Board, its committees, management
Information & Communication Technology Risk committees, management units, Internal Control &
Management and Money Laundering Risk Management Compliance Division and Risk Management Division. The
as well as the business environment in which the Bank hierarchy of DBBL risk management infrastructure is as
operates, specific needs for particular type of operations under:

DBBL RISK MANAGEMENT INFRASTRUCTURE

Board

Executive Risk Management

Audit Committee
Committee Committee

Internal
Control &
Compliance
Division

Risk Senior Management- Risk

Drivers- & CEO, Management
External Division
and other Senior Management
Internal
Events

ALM Central Credit Risk Management Purchase

Compliance Management
Committee Unit (CCU) Committee Committee Committee

Business Units/Lines/Segments

ANNUAL REPORT 2016 79

Board of Directors effectively and potential and actual losses arising from
risks are within the acceptable limits. EC also approves
The Board oversees and approves all major risk all credit proposals except the large loan proposals,
management policies and parameters taking into administrative proposals and major purchases
account market condition, regulatory requirements and as recommended by the Credit Risk Committee,
lessons learned in the past. While setting policies and Management Committee and Purchase Committee
parameters for credit, operational and market risks, respectively.
a balance is maintained for ensuring smooth banking
operations while protecting against down side risk from Audit Committee of the Board
potential loss or foregone income and to protect interest
of shareholders and depositors. Audit Committee independently monitors all activities
of banking operations involving credit risks, operational
Role of the Board of Directors (BODs) risks and market risks through Internal Control &
Compliance Division (IC&CD) of the Bank. Risk based
a) Defining the risk appetite; audit plan for IC&CD is approved by the Committee and
b) Ensuring annual business plan are in line with its implementation is monitored on a regular basis to
risk appetite; ensure that all risk factors are adequately addressed and
any deviation is quickly corrected to ensure sustainable
c) Designing the organizational structure to operation of banking activities.
manage risk within the Bank;
Risk Management Committee of the Board
d) Understanding the inherent risks of the Bank;
In compliance with the Sub-section (3) of Section 15Kha
e) Reviewing and approving risk management
of the Bank Company (Amended) Act, 2013 and the
policies at least annually;
BRPD Circular No. 11 dated 27 October 2013 issued by
f) Enforcing and using adequate record keeping Bangladesh Bank, Risk Management Committee of the
and reporting systems; Board has been formed. The Terms of Reference (ToR)
of the Committee is determined as per the guidelines/
g) Reviewing and approving limits at least
circulars of Bangladesh Bank issued and in-force from
annually;
time to time.
h) Approving the credit proposals considered as
As per the Terms of Reference (ToR), four (4) meetings
large loan exposures as defined by Bangladesh
of Risk Management Committee of the Board were held
Bank (i.e. exposures to a single person/
during 2016.
counterparty or a group equal to or greater than
10% of the Banks regulatory capital); and In compliance with DOS Circular Letter No. 13 dated 9
September 2015 of BB, following developments have
i) Monitoring the compliance with overall risk
been made during the year:
management policies and limits.
i. Minutes of the Board Risk Management
Executive Committee (EC) of the Board Committee meetings have been submitting to
BB within 7 days of the meeting;
Executive Committee of the Board is responsible to
oversee that the management and its committees ii. Risk Management Division (RMD) has been
are operating within approved limits and authorities reporting the high-risk related matters,
and that all major risks are managed & mitigated identified by the management-level risk
 committee, directly to the Board Risk g. Establishing committees and sub-committees
Management Committee; and providing a copy to be in charge of ongoing risk management
to the Managing Director for information; functions.

iii. The Comprehensive Risk Management Report

Management Committees
(CRMR) for the month of June and December
are being submitted to Bangladesh Bank. The Committees like Credit Risk Management Committee,
monthly risk management report for the months Asset-Liability Management Committee (ALCO),
except June and December have also been Purchase Committee, Management Committee
submitting to BB within the stipulated time; and (MANCOM), Recruitment Committee, Supervisory
Review Process (SRP) Team comprising of senior
iv. The resolutions/ decisions of the meetings were
executives and concerned heads of functional divisions
also conveyed to all concerned of the Bank for
ensure compliance with all relevant risk management
ensuring their compliance.
policies and strategies. On top of these, a high level Risk
Management Committee through Risk Management
Role of Risk Management Committee of
Division is overseeing and mitigating all the major
the Board
existing and potential risks, the Bank is facing, in
a. Supervising and monitoring the compliance of carrying out its business and operational activities.
core risks management practices (asset-liability
risk management, credit risk management, Management units
foreign exchange risk management, internal
Management units like Credit Risk Management
control & compliance risk management,
Division, Treasury Division, Credit Administration
anti-money laundering risk management,
Division, Special Asset Management Division, Office of
information & communication risk management
the Chief Anti Money Laundering Compliance Officer
including other risk related guidelines);
(CAMLCO), Sustainable Finance Unit, Vigilance Cell,
b. Oversee the cause and effect relationship Central Customer Service & Complaint Management
of risk identification, measurement and its Cell etc. ensure and monitor risk management system
ultimate impact on banks capital. That means, and compliance with all approved limits, procedures,
the Committee reviews the risk management regulatory stipulations at all operational levels on a
and capital management functions of the Bank; daily basis.

c. Ensuring sufficient staff resources for each risk Internal Control & Compliance Division
management activity; directly reporting to Audit Committee of
d. Establishing standards of ethics and integrity for
the Board
staff and enforcing these standards; Internal Control & Compliance Division (IC&CD) on a
regular basis independently verifies compliance with all
e. Supervising day-to-day activities of senior
approved risk management and internal control policies.
management and heads of business lines with
Deviations are identified, reported and corrected to
regard to effective risk management;
mitigate risk on a continuous basis and to ensure that
f. Identifying risks involved in new products the Bank is operating in compliance with all approved
and activities and ensuring that the risks and established policies. Internal Control & Compliance
can be measured, monitored, and controlled Division directly reports to the Audit Committee of the
adequately; and Board.

ANNUAL REPORT 2016 81

Credit Risk designed and regularly updated to identify, measure,

Credit risk is the most significant and inherent risk in manage and mitigate credit risk to maintain and improve
banking business. Every loan exposure or transaction quality of loan portfolio and reduce actual loan losses
with counterparty involves the Bank to some extent of and to ensure that approved processes are followed and
credit risks. Credit Risk Management is at the heart of appropriate due diligence are made in approving new
the overall risk management system of the Bank. It is credit facilities and renewals.

CREDIT RISK MANAGEMENT INFRASTRUCTURE OF DBBL

Board

Risk Management Executive

Committee Committee Audit Committee

Credit Committee
of the Bank

Managing
Director
Risk Management Internal Control & Compliance Division
Division

Deputy Managing
Directors

Credit Risk
Management

Credit Branch/ Small and Retail Business

Credit Risk Special Asset
Administration Corporate/ Medium Division &
Management Management
Division Commercial/ Enterprise (PPG) e- Business
Division Division
Business Division Division Division
THE SETS OF PRINCIPLES USED FOR ii. Credit approval is delegated properly
A SOUND CREDIT RISK MANAGEMENT Credit approval authorities are carefully delegated
CULTURE IN DBBL INCLUDE THE to the Executive Committee of the Board and
FOLLOWING AMONG OTHERS: appropriate level of management to strike a
balance between adequate control and flexibility
Trade off Between Risk and Return: Risk is in credit operations to ensure full transparency and
taken considering the interest of the stakeholders, in line
accountability at all levels.
with strategy and risk appetite of the Bank.

iii. Independent Credit Risk Management Division

Responsibility and Accountability: Entrusted
employees ensure that risk- taking is disciplined and There is an independent credit risk management
focused. Risk is taken only by delegated authorities and division to assess credit risks and suggest/
where there is appropriate infrastructure and resources. recommend for mitigations approving every credit
DBBL maintains a clear and transparent process for all proposal under their jurisdiction.
credit risk-taking actions.
iv. Separate Credit Administration Division for
Anticipation: DBBL seeks to anticipate future documentation
potential risks and aims to ensure awareness of all known
A separate credit administration division confirms
risks.
that perfected security documents are in place before
disbursement. DBBL is continuing a unique process
Competitive Advantage: DBBL seeks to achieve
of rechecking security documentation by a second
competitive advantage through effective and efficient risk
legal adviser other than the lawyer who vetted it
management and control practices.
originally.
Salient features of credit risk management v. Independent Special Asset Management Division
of DBBL
An independent and fully dedicated credit
The salient features of credit risk management practices
monitoring and recovery division monitors the
have been put in place at different tiers of the DBBL
performance and recovery of loans, identify early
Board and the management are as under:
signs of delinquencies in portfolio and take corrective
measures including legal actions to mitigate risks,
i. Credit policy approved by the Board
improve loan quality and to ensure recovery of loans
The Board approves the major policy guidelines, on time. This division also monitors risk status
growth strategy, exposure limits for particular sector, of loan portfolio and ensures adequate loan loss
product, individual company and group, keeping provision.
in view regulatory compliance, risk management
strategy and industry best practice. vi. Maintenance of adequate provision & suspension of
interest
In compliance with the Bangladesh Bank directive,
Board approves the limits and other terms & Interest accrued on classified loan is suspended and
conditions of credit proposals falls under category of adequate provision is maintained there-against as
large loan as defined by Bangladesh Bank; per Bangladesh Banks Guidelines.

ANNUAL REPORT 2016 83

vii. Conducting Credit Risk Grading (CRG) aggregation of such grading across the borrowers,
activities and the lines of business can provide better
Credit risk grading is an important tool for credit assessment of the quality of credit portfolio of a
risk management as it helps the Banks & financial bank. The credit risk grading system is vital to take
institutions to understand various dimensions of decisions both at the pre- sanction stage as well as
risk involved in different credit transactions. The post-sanction stage.

CRG Parameters
Leverage

Liquidity
Financial risk
Profitability

Coverage

Size of business

Age of business

Business outlook
Business/Industry risk
Industry growth

Market competition

Barriers to business

Credit risk
Experience

Management risk Succession

Team work

Security coverage

Security risk Collateral coverage

Support

Account conduct

Utilization of limit
Relationship risk
Compliance of
covenants/condition

Personal deposits
viii. Borrowers credit rating are substantially higher. Although the concept of
According to Pillar 1 of Basel III, RWA of banks is borrowers credit rating started in our industry with
the introduction of Basel II capital measurement
calculated against Credit Risk, Market Risk and
norms in 2010, still it is new idea for the borrowers.
Operational Risk. As per guideline on Risk Based
It has become a major challenge for our banking
Capital Adequacy for Banks, calculation of RWA
sector to maintain the increased CRAR under Basel
follows Standardized Approach for Credit Risk,
III with the backdrop of limited scope of generating
Standardized Approach for Market Risk and Basic capital internally due to deteriorating trend of asset
Indicator Approach for Operational Risk. Under the quality i.e. increasing the NPLs and the corresponding
Standardized Approach of the Risk Based Capital provisioning requirements, lower interest/profit
Adequacy framework (Basel III), Risk Weighted Asset margin attributing for high competition, and
(RWA) against credit risk for the corporate borrowers increasing trend of operating costs to support the
is determined on the basis of credit rating assessed enhanced business activities.
by External Credit Assessment Institutions (ECAIs).
The Bank has taken the challenge positively. As a
Measuring RWA for credit risk under standardized result, out of total Taka 140,612.6 million of loan
approach, in absence of credit rating of the borrowers, of the Bank eligible for credit rating (corporate and
risk weight for the corporate loan is assigned 125% SME), Taka 102,022.8 million (72.6 % of eligible loan
on outstanding loans. As a result, risk weighted exposures) has been brought under the rating purview
assets and capital requirement under Basel III at the end of 2016.

December 2016 and 31 December 2015 is furnished below:

60,075

46,512

31,646
Taka in Million

22,889

12,458
10,302

2016 2015 2016 2015 2016 2015

20% 50% 100%
RATED EXPOSURES

RWA MIX (%) AS ON 31 DECEMBER 2016 RWA MIX (%) AS ON 31 DECEMBER 2015
31% 28%
(BDT 31,646 (BDT 22,889
million) million)

15%
10% (BDT 12,458
(BDT 10,302
million)
million)

59% 57%
(BDT 60,075 (BDT 46,512
million) million)

RWA @ 20% risk weight RWA @ 20% risk weight

RWA @ 50% risk weight RWA @ 50% risk weight

RWA @ 100% risk weight RWA @ 100% risk weight

ANNUAL REPORT 2016 85

ix. Credit operations are subject to independent The Treasury Division manages the Market risk including
Internal Audit the liquidity, interest rate and foreign exchange risks with
oversight from Asset-Liability Management Committee
Internal Control & Compliance Division independently
(ALCO) comprising of the Senior Executives of the Bank.
verifies and ensures, at least once in a year,
ALCO is chaired by the Managing Director & CEO. The
compliance with approved lending guidelines,
Committee meets at least once in a month. The Board
Bangladesh Bank guidelines, operational procedures,
approves all risk management policies, sets limits
adequacy of internal control and documentation. and reviews compliance on a regular basis. The overall
x. Early warning system objective is to provide cost effective funding to finance
the asset growth and trade related transactions, optimize
Operation and performance of loans are regularly the funding cost, increase spread with the lowest possible
monitored to trigger early warning system to address liquidity, maturity, foreign exchange and interest rate
the loans whose performance show any deteriorating risks.
trend enabling the Bank to grow its credit portfolio
in a sustainable way to ensure higher quality and Interest rate risk
lower risk with the ultimate objective to protect the
interest of depositors and shareholders. Interest rate risk is the potential impact on the
Banks earnings and net asset value due to changes in
xi. Reporting to Board /Executive Committee/Risk market interest rates. Interest rate risk is the result of
Management Committee mismatches of interest rate re-pricing of financial assets
and liabilities.
Overall quality, performance, recovery status, risks
status, adequacy of provision of loan portfolio are DBBL uses the following tools for measuring the interest
regularly reported to the Board of Directors/Executive rate risk:
Committee/ Risk Management Committee of the
Board for information and guidance. a. Gap analysis

Under this system, a gap i.e. the difference between

xii. Addressing environmental issues
the amount of financial assets and the amount of
Apart from significant financial, business, liabilities is calculated at a pre- determined time
management, security risk, DBBL also considers the bucket. The interest rate factor (say 1%) is then
environmental risk of the borrowers while processing applied on the assessed financial value of Gap for
the loan proposals specially in case of project measuring the earning impact due to movement of
financing, term financing etc. under the purview interest rate.
of environmental due diligence stipulated by the
Based on the position of financial assets and
concerned authority and Bangladesh Bank.
liabilities as of 31 December 2016, the Bank measured
Market risk that, with the 1% rise in interest rate for all its
financial assets and liabilities, Banks yearly earnings
Market risk is the risk of losses in On and Off-balance
will be increased by Taka 83.3 million and in case of
sheet positions arising from movements in market price
interest rate cut by 1%, the position will be vice-
such as changes in interest rate and price of equity,
versa. For detail calculation, the earnings impact at
foreign exchange and commodity. Market risk consists of
each time bucket is shown at Page 125 of this Annual
the following basic risk parameters as under:
Report.

Market Risk b. Duration analysis

Duration is the time-weighted average maturity of

the present value of the cash flows from on- balance
Interest Rate Foreign Equity Price Commodity Price
Risk Exchange Risk Risk Risk sheet assets and liabilities. It measures the relative
sensitivity of the value of these instruments to
 changing interest rates, and therefore reflects on the environmental risk. It exists in some form in every Bank
economic value i.e. the present value of shareholders business and function. Operational risk can not only
equity of the Bank. result in financial loss, but also regulatory sanctions and
damage to the Banks reputation. DBBL is successful in
Foreign Exchange Risk managing operational risk with a view to safeguarding
client assets and preserving shareholders' value.
Foreign exchange risk is the potential loss arising from
changes in foreign currency exchange rate in either DBBL manages operational risks in the following manner:
direction. Assets and liabilities denominated in foreign 1. Risks are identified, measured, monitored and
currencies generally entail foreign exchange risks. mitigated with reference to the relevant policy,
operational manuals, processes, and practices;
The Bank operates its foreign exchange and money
market activities under a centralized and single functional 2. Departmental Control Function Check List (DCFCL)
area. DBBLs dealing room is equipped with advanced is in place for assessment of control;
technology and experienced personnel. Banks Exchange
3. Review of safety and control measures of premises
Rate Committee meets on a daily basis to review the and equipments;
prevailing market condition, exchange rate, exposure and
transactions to mitigate foreign exchange risk. 4. Management of technological and information
security risks; and
Liquidity risks 5. Ensuring the maintenance of the Banks business
continuity plan (BCP) and crisis management
Liquidity risk is the risk that we may not meet our
policy.
financial obligation as they become due. Liquidity
risks also include our inability to liquidate any asset at
Internal Control & Compliance Risk
reasonable price in a timely manner. It is the policy of
the Bank to maintain adequate liquidity at all times The Board of Directors approved updated policy guidelines
in both local and foreign currencies. Liquidity risks are on Internal Control & Compliance (ICC) risk management
managed on a short, medium and long term basis. There thereby restructuring the organizational chart of the Bank
are approved limits for credit / deposit ratio, liquid assets in accordance with the instructions of Bangladesh Bank
to total assets ratio, maturity mismatch, commitments for managing core risks. In line with the aforesaid policy
for both on-balance sheet and off-balance sheet items guidelines, Banks own operational manual on ICC has
and borrowing from money market to ensure that loans been approved by the Board of Directors and the manual is
and investments are funded by stable sources, maturity now in force.
mismatches are within limits and that cash inflow from
Internal Control & Compliance Division (IC&CD) of the
maturities of assets, customer deposits in a given period
Bank under direct supervision of Audit Committee of the
exceeds cash outflow by a comfortable margin even under Board has been implementing detail guidelines on ICC risk
a stressed liquidity scenario. management to assess and mitigate risks and as part of
it, the IC&CD has been divided into three (3) independent
Operational Risk units; namely :-
Operational risk can be defined as the possibilities
of losses resulting from inadequate or failed internal
processes, people and systems or from external events. Audit & Inspection
Unit
Operational risk includes legal and regulatory risk,
Monitoring Compliance
business process and change risk, fiduciary or disclosure
Unit Unit
breaches, technology failure, financial crime and

ANNUAL REPORT 2016 87

The units have been functioning independently & Under recent instruction from EC of the Board, this Cell
separately with direct reporting lines to the Head of has started checking large loans, LCs etc. exceeding Taka
IC&CD. 50 million with the high risk branches to mitigate the
irregularities so as to minimize operational risk.
In addition, Departmental Control Function Check List
The Vigilance Cell also observes some aspects of Code
(DCFCL) has been introduced in the branches & divisions
of Conduct i.e. employees personal behavioral pattern,
at head office under direct supervision of Monitoring
official decorum, dress code, environmental and
Unit of IC&CD which ensures compliance with regulatory
disciplinary arrangement for the staffs and the customers
rules and regulations as well as general banking norms in the bank premises in line with banks Policy Guidelines
and procedures. Documentation Check List has been on customer services and complaint management.
brought in practice under supervision of a dedicated unit.
Exceptions are addressed, monitored and corrected on a All these activities of the Vigilance Cell are devoted to
address and mitigate operational risks of the Bank in a
regular basis.
more effective way to ensure reliability and completeness
Policy guidelines on Risk Based Internal Audit (RBIA) of financial and management information and to ensure
system have been formulated and the branches have compliance with legal and regulatory requirements.
already been brought under RBIA purview. As per RBIA,
marks/scores have been allocated for rating of the
Central Customer Service & Complaint
Management Cell (CCS & CMC)
branches in terms of business risk & compliance risks. The
branches scoring more are being subjected to audit with In compliance with the FICSD Circular No. 1 dated 13 July
more frequency. 2014 and the instructions contained in the guidelines for
Customer Services and Complaint Management issued by
It is the policy of the Bank to put all branches of the Bank BB in June 2014, the Central Customer Service & Complaint
under any form of audit at least once in a year and IC&CD Management Cell (CCS & CMC) has been established under
has been working in that direction. the direct supervision of the Managing Director & CEO of
the Bank. The Branch Level Customer Service & Complaint
Vigilance Cell Management Desk at every branch of DBBL has also been
put in place. CCS & CMC is always vigilant to settle the
A Vigilance Cell was established in 2009 with dedicated complaints lodged by our valued clients with a view to
teams to re-enforce operational risk management of the ensuring uninterrupted, dedicated and satisfactory to the
Bank. The team conducts short but surprise inspection on existing and potential customers to uphold the Banks
the operational activities of the branches and divisions of goodwill and brand image which is to be considered very
DBBL at regular intervals highlighting areas of strength crucial for our sustainable growth and development.
and weakness of the unit inspected and submits report
Different types of queries/complaints received from
to the Managing Director & CEO with suggestions for the valued customers of the Bank as well as from the
improvement of working standard and mitigation of the Financial Integrity & Customer Services Department of
deficiencies detected. Bangladesh Bank (FICSD) through mail, land/cell phone,
Web Complaint Box etc. has been mitigated/solved by the
They make special reporting in case of major flaws in
CCS&CMC.
operational matters of the unit to the Managing Director
& CEO with recommendation for remedial measures and During the year 2016, a total of 212 numbers of complaints
administrative actions, if needed. were received by the CCS & CMC; and all of those were
resolved with utmost dedication and in incompliance
Besides, the team conducts investigations on any special with the regulatory stipulations as well as customers
situation that crops up and submits detailed report to the satisfaction. Resultantly, the percentage of complaints
concerned authority of the Bank for necessary action. resolution for 2016 was 100%.
Money Laundering Risk and Terrorist l DBBL has deployed and effectively using an
Financing Risk automated Sanction-screening tool (of Global
standard) to ensure that bank does not get involved
It is a matter of pride that, due to tremendous efforts with any restricted parties;
of the Government of Bangladesh and particularly the
Bangladesh Financial Intelligence Unit (BFIU), our beloved l Our in-house expert IT department has developed a
country Bangladesh has come out from the International good number of Transaction Monitoring mechanism
Cooperation & Review Group (ICRG) process i.e. it is no & Reports - that are raising early alerts on any
more treated as a risky country. In the 3rd Round APG suspicious indicators;
Mutual Evaluation Report 2016, it has been stated that
l Chief Anti Money Laundering Compliance Officer
Bangladesh has made significant progress on Overall
(CAMLCO)s office & Branch AMLCOs are regularly
Level of Effectiveness and Technical Compliance against
screening all the adverse-news and escalating
the yardstick of FATF 40 Recommendations. This has
any unusual account &/or transaction to senior
made our country viable & reliable towards both the global
management & regulators;
regulators and investors. With the pragmatic focus of the
Government towards continuous growth & development; l An increased awareness on AML/ CTF among staff
this achievement from the ICRG process has also made with almost 100% training coverage (including
DBBL confident to nourish its financial-system & structure Trade-based Money Laundering by Training wing &
with more dynamism and professionalism to protect CAMLCO office);
its customers deposits & reputation from any Money-
l A significant growth in submission of STR in 2016,
Laundering (ML) or Terrorist-Financing (TF) risks.
demonstrates a very-positive functioning of our
DBBL from the very beginning has been treating the AML structures/ systems & practices;
ML&TF risks as one of the vital agendas in its core-
l Regular audit & compliance Review undertaken
risk management strategies. The Bank under the
covering all branches & key units by the Internal
legal framework and focus of the Money Laundering
Audit team and CAMLCO office;
Prevention Act, 2012 (MLPA, amended in 2015) and Anti
Terrorism Act, 2009 (ATA, amended in 2013) has been l DBBL has been efficiently utilizing the direct access
pursuing the policy of strict compliance to all regulatory to the National Election Commission database to
directives and culture of good governance in all aspects verify independently the authenticity of NID of
of its banking services & operations. In 2016, DBBL took potential & existing customers to ensure correct
following measures to adequately mitigate and prevent KYC;
the ML&TF risks:
l KYC update/ remediation of accounts, specially
l Being one of the most technologically advanced legacy A/Cs, Correspondent Banking A/Cs, High Risk
banks with wide presence in the country, the Banks A/Cs have been initiated & almost completed;
senior management has demonstrated strong
commitment to comply with the local & global l Enhanced Due Diligence (EDD) is being performed
AML/CTF standards with zero tolerance on any for high risk accounts including Politically
control-lapses; Exposed Persons (PEPs) in line with both BFIU
directives & Financial Action Task Force (FATF)
l Banks Manual on Anti Money Laundering (AML) recommendations;
& Combating Terrorist Financing (CTF) has been
revised in the light of BFIU master Circular No. 10 l Regular meetings of Central Compliance Unit (CCU),
and approved by the Board of Directors of the Bank; BAMLCO are being conducted with clear actionable;

l Banks Risk Management Guideline on AML & CTF l Accurate & on-time reporting of Regulatory Returns
has been introduced in the light of BFIU directives (including CTR, bi-annual Self-Assessment, etc.) are
and approved by the Board of Directors; being ensured;

ANNUAL REPORT 2016 89

 l A seamless Advisory & Governance service to therefore be managed effectively in order to uphold
all staff from the CAMLCO office with Senior the Banks reputation. The management ensures that
Management Commitment has assured DBBL with DBBL is aware of any changes in market perceptions as
no penalty, no censure and no major regulatory soon as possible. Accordingly, all business policies and
observation in the ground of AML/CTF risks in 2016. transactions are subjected to careful consideration. DBBL
takes necessary precautions to avoid business policies
Legal Risks and transactions that may result in significant tax, legal or
environmental risks. Reputational risk is also factored into
In DBBL, legal risks are covered by recognizing potential
major credit decisions that may lead to credit proposal
losses from litigation or possible litigation at an early
being declined.
stage and by formulating solutions for reducing,
restricting and avoiding such risks and creating adequate
Compliance Risk
provision there- against.

The success of DBBL is largely dependent on the trust

OTHER RISKS
and confidence of our existing and potential customers,

Business Risk our shareholders, our staff, our regulators and the
general public in our integrity and ethical standard. The
Business risk covers the risk of losses arising from lower confidence largely depends on meticulous compliance
non-interest income and higher expenses from the with applicable legal and regulatory requirements and
budgeted amount. The business risk is resulted from the internal policies of DBBL. The confidence also depends
market condition, greater customer expectation and or on conformity with generally accepted market norms
technological development that may change compared to and standards in our business operations. The Board of
the assumptions made at the time of planning. Directors is primarily responsible for compliance with all
applicable norms and regulations. The Board discharges
Business risk in DBBL is managed by setting clear targets
its responsibilities itself and through delegation of
for specific business units, in terms of business volume,
authorities to Executive Committee, Audit Committee and
income, cost, cost/income ratio, quality of assets etc.
Risk Management Committee of the Board. The objective
with an ongoing process of continuous improvement.
is to identify any compliance risks at an early stage that

Reputational Risk may undermine the integrity and the success of DBBL and
to mitigate the risks in most appropriate way.
Reputational risk is defined as the risk of losses, falling
business volume or income as well as reduced value of the Technology Risk
company arising from business events that may reduce
Technology risk is the risk of financial loss arising
the confidence of the customers & clients, shareholders,
from failure, exploitation of vulnerabilities or other
investors, counterparties, business partners, credit rating
deficiencies in the electronic platforms that support
agencies, regulators and general public in DBBL.
our daily operations and the system applications and
The branches and operational divisions are directly infrastructure on which they reside. Technology risk is
responsible for reputational risks arising from their inherent not only in our IT assets, but also in the people
business operations. Reputational risks may also arise and processes that interact with them. Cyber risk, which
from a deficiency in managing other risks. All risk must is part of technology risk, is the risk that our systems
will not operate properly or will be compromised as a l Keeping sufficient cushion to absorb unforeseen
result of cyber-attacks, security breaches, unauthorized shock or stress;
access, loss or destruction of data, unavailability of
l Increased capital requirement for sustainable
service, computer viruses or other events that could
business growth;
have an adverse security impact. Any such event could
subject us to litigation or cause us to suffer a financial l Cost effective options for raising Tier 1 and Tier 2
loss, a disruption of our businesses, liability to our clients, capital;
regulatory intervention or reputational damage. We could
l Improving credit rating, risk management rating and
also be required to expend significant additional resources
CAMELS rating of the Bank;
to modify our protective measures or to investigate and
remediate vulnerabilities or other exposures. Service and l Meeting regulatory requirements; and
infrastructure disruption risks are managed through our
l Meeting covenants of lenders.
business continuity management plan, our technology
risk management program and other contingency and The Board is responsible for ensuring capital management
resiliency plans. Although we have business continuity within a broad framework of risk management.
plans, our businesses face a wide variety of operational The Bank has been pursuing a dividend policy that must
risks, including technology risk arising from dependencies ensure satisfactory return for shareholders as well as
on IT, third-party suppliers and the worldwide sustainable growth of the Bank with adequate capital
telecommunications infrastructure. As the largest IT in terms of regulatory requirement to protect long term
investment Bank in Bangladesh, we operate in a complex interest of depositors and shareholders.
technological landscape covering our diverse business
As per Section 13(2) of the Bank Company Act, 1991
model. Ensuring that the confidentiality, integrity and
(amended up to 2013) and the instruction contained
availability of information assets are protected is critical
in BRPD Circular Letter No. 11 dated 14 August 2008,
to our operations.
Paid- up share capital and statutory reserve should be
at least Taka 4,000 million within which paid-up share
Capital Plan and Management
capital would be minimum Taka 2,000 million. DBBL has
The Bank is committed to maintaining a strong capital fully complied with the requirement.
base to support business growth, ensuring compliance
As of 31 December 2016, the aggregate amount of Paid-up
with all regulatory requirements, obtaining good credit share capital and the Statutory Reserve stood at Taka
rating, risk management rating and CAMELS rating and 10,134.4 million consisting of Paid up share capital of
having a cushion to absorb any unforeseen shocks arising Taka 2,000 million and Statutory Reserve of Taka 8,134.4
from credit, operational, market risks and other residual million.
risks.
Basel Capital Accord a transition from
Capital is managed and monitored based on planned
Basel II to Basel III
changes in the Banks business strategy, identified and
potential changes in its operating environment or changes Following the lessons learnt from the financial crises
in its risk profile. As part of the Banks comprehensive began in the western economies in 2007 and gradually
ICAAP, sources and uses of capital are measured and spread allover the world, the Basel Committee on Banking
monitored through financial metrics, including regulatory Supervision (BCBS) upgraded the capital measurement
thresholds. standard and released the final document of Basel III:
A global regulatory framework for more resilient banks
The capital maintenance and dividend policies of DBBL are and banking system in December, 2010 (updated in
pursued taking into consideration of the following factors: June, 2011).

ANNUAL REPORT 2016 91

The Basel III has brought some financial models, tools Principal of the instruments may be
& techniques namely, Liquidity Coverage Ratio (LCR), repaid through repurchase/redemption
Net Stable Funding Ratio (NSFR) and Financial Leverage only with prior approval of BB; and
for the financial intermediaries aiming to better risk
Dividend discretion- the bank must
management for a sustained and sound financial system
have full discretion at all times to
in addition to the Basel II. The level and quality of capital
cancel distributions/ payments.
components are also made more stringent. Emphasis
has been given to raise the Common Equity Tier 1 (CET 1) 2. Tier 2 capital
capital. A provision of creating capital conservation buffer
l General provisions on unclassified loans and
@2.50% of RWA with the CET 1 capital gradually is also
off-balance sheet exposures; and
made. Raising of Tier 2 capital by revaluation of fixed
assets, equity and investments are discouraged; rather l Subordinated debt/instruments issued by
phased-in deduction of such capital elements has been banks.
during the course of Basel III implementation.
BB also stipulated necessary deductions from Tier 1 and
In line with the international best practices, Bangladesh Tier 2 Capital.
Bank issued the guideline on Risk Based Capital Adequacy
(Revised Regulatory Capital Framework for banks in B. To increase the risk coverage of capital framework;
line with Basel III) vide BRPD Circular No. 18 dated 21 C. To introduce leverage ratio to serve as a backstop to
December 2014. the risk-based capital measure;
The main features of this new regulatory guideline of BB D. To raise the standards for the supervisory review
for capital measurements are as under: process; and
A. To increase the quality and level of capital to ensure E. To widen the quantitative and qualitative disclosure
that banks are better able to absorb the unforeseen aspects for the stakeholders.
losses associated with the banking operations. To
this end, components of capital are divided into 2 BB also sets the Minimum and Maximum limits
(two) Tiers, namely, for maintenance of capital adequacy ratios in a
phased manner starting from January, 2015, with full
1. Tier 1 capital consisting of implementation of capital ratios from January, 2020 as
under:
i. Common Equity Tier 1 (CET 1) mainly includes
i. Common Equity Tier 1 (CET 1) of at least 4.50%
l Paid-up share capital of total risk weighted assets (RWA);
l Non-repayable share premium
ii. Tier 1 capital will be at least 6.0% of total RWA;
l Statutory reserve
l Retained earnings iii. Minimum Capital to Risk-weighted Asset Ratio
l Dividend equalization account etc. (CRAR) will be 10% of RWA;

iv. In addition to minimum CRAR, Capital

ii. Additional Tier 1 capital, includes Conservation Buffer (CCB) @ 2.50% of RWA
l Instruments (i.e. Bond) issued by banks should be maintained in the form of CET 1; and
subject to fulfilling the following criteria
v. Minimum total capital plus capital conservation
Maturity period the instrument shall buffer should be 12.50%. DBBL is formulating
be perpetual i.e. no specific maturity; strategies towards maintenance of capital
Repurchase/Buy-back/Redemption- requirements as per the Basel III guideline.
BB Roadmap for implementation of Basel III
Bangladesh Bank has set a Roadmap for implementation of Basel III in banks as under:
Roadmap for implementation of Basel III capital to
Particulars risk weighted asset ratios (CRAR)
2015 2016 2017 2018 2019
Minimum Common Equity Tier 1-CET/Tier 1 capital ratio 5.5% 5.5% 6.0% 6.0% 6.0%

Plus Capital conservation buffer on CET 1 capital - 0.625% 1.25% 1.875% 2.5%

Minimum Tier 1 plus capital conservation buffer 5.5% 6.125% 7.25% 7.875% 8.5%

Maximum Tier 2 capital 4.5% 4.5% 4.0% 4.0% 4.0%

Minimum total capital plus capital conservative buffer 10.00% 10.625% 11.25% 11.875% 12.5%

Phase-in deductions from CET1 capital

Excess Investment over 10% of a banks equity in the equity of

20% 40% 60% 80% 100%
banking, financial and insurance entities

Phase-in deductions from Tier 2 capital

Revaluation Reserves for Fixed Assets, Securities and Equity Securities 20% 40% 60% 80% 100%

For Liquidity management, BB introduced different ratios as under:

Particulars 2015 2016 2017 2018 2019

Liquidity Coverage Ratio (LCR) 100% 100% 100% 100% 100%

Net Stable Funding Ratio (NSFR) > 100% >100% >100% >100% >100%
Leverage Ratio 3% 3% 3% Readjustment Migration to Pillar 1

Implementation of BASEL III (Risk Based and to maintain the required capital commensurate with
Capital Adequacy- RBCA for banks)
their risk profile. Basel III has linked capital to the level of
Calibration between risk management and
risk management. Therefore, banks are required to have
capital management
effective risk management techniques in monitoring and
In order to have a sound and robust banking industry and
mitigating their risks.
to make the banks in Bangladesh more shock absorbent
as well as to cope with international best practice for
Implementation of Pillar 1 Minimum
risk management, Bangladesh Bank introduced 3 (three)
Capital Requirement (MCR) of Basel III
Pillars Capital Requirements as Risk Based Capital
Adequacy (RBCA) for Banks (Revised regulatory capital In compliance with the regulatory guidelines, DBBL
framework in line with Basel II) in our banking sector measures the capital to risk weighted asset ratio (CRAR)
effective from January, 2010. Subsequently, BB has under Basel III starting from January, 2015 and submitted
adopted the Basel III capital measurement norms and the same to BB on quarterly rest.
other stipulations regarding liquidity management from
Apart from CRAR, DBBL has also assesses the Liquidity
January, 2015.
Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR)
Under this framework, banks are required to make and Leverage Ratio and submitted the same to BB within
accurate assessment of all the risks they are exposed to the stipulated time.

ANNUAL REPORT 2016 93

DBBL capital position
A comparative position of regulatory capital determined under Basel III as of 31 December 2016 and 31 December 2015 of
DBBL is as under:
In million Taka

Particulars 2016 2015

A. Common Equity Tier 1 (CET 1) capital
Paid up share capital 2,000.0 2,000.0
Share premium 11.1 11.1
Statutory reserve 8,134.4 7,487.6
Dividend equalization account 1,566.8 1,366.8
Proposed cash dividend 600.0 800.0
Retained earnings 4,437.7 4,121.9
Gross Total CET 1 capital 16,750.0 15,787.4
Less: Regulatory Deduction (Deferred tax asset on specific provision) 1,812.4 1,057.6
Net CET 1 capital 14,937.6 14,729.8
B. Additional Tier 1 capital - -
C. Total Tier 1 capital [A+B] 14,937.6 14,729.8
D. Tier 2 capital
General provision against unclassified loans and off-balance sheet
2,326.6 1,625.8
exposures (including OBU)
Subordinated debt capital 3,700.1 4,401.9
Revaluation reserve on fixed assets and HTM securities 475.2 475.2
Gross total Tier 2 capital 6,501.9 6,502.8
Less: Regulatory Adjustment/Deduction 190.1 95.0
Net Tier 2 capital 6,311.8 6,407.8
E. Total eligible regulatory capital [C+D] 21,249.4 21,137.6
Risk Weighted Asset against
Credit Risk 136,995.9 132,760.0
Market Risk 2,364.9 1,682.2
Operational Risk 22,804.4 20,106.5
F. Total RWA 162,165.3 154,548.6
G. Capital to risk-weighted asset ratio [CRAR]
CET 1 capital to RWA [A/F] 9.2% 9.5%
Tier 1 capital to RWA [C/F] 9.2% 9.5%
Tier 2 capital to RWA [D/F] 3.9% 4.2%
Total capital to RWA [E/F] 13.1% 13.7%
As of 31 December 2016, the LCR and NSFR of DBBL stood at 129.9 % and 117.2% respectively against the BBs minimum
threshold of 100%.

Besides, at the end of 2016, Leverage Ratio of DBBL stood at 5.2% against regulatory requirement of minimum 3%.

Regulatory Capital position of DBBL

21,138 21,249

18,078
6,408 6,312
15,403
5,801
12,284 4,710
Taka in Million

2,888
CET1/ Tier 1 Capital
14,938
14,730 Tier 2 Capital
10,693 12,277
9,396

2012 2013 2014 2015 2016

Under Basel II Under Basel III

DBBLS CAPITAL POSITION

Capital Adequacy Ratio/ Capital to Risk-weighted Asset Ratio of DBBL

13.7% 13.8% 13.7%

13.1%
12.0%
4.2%
4.4% 4.2%
2.8% 3.9%
In Percentage

CET1/ Tier 1 Capital Ratio

9.2%
9.5% Tier 2 Capital Ratio
9.5% 9.4%
9.2%

2012 2013 2014 2015 2016

Under Basel II Under Basel III

DBBLS CAR/CRAR POSITION

ANNUAL REPORT 2016 95

Risk Weighted Asset (RWA) mix based on risk type of DBBL
RWA MIX (%) 2016 RWA MIX (%) 2015

14.1% 13.0%

1.5% 1.1%

84.5% 85.9%

Credit risk Credit risk

Market risk Market risk
Operational risk Operational risk

Risk Weighted Asset Vs. Total Loans of DBBL (Taka In Million)

173,398

154,549 162,165

Total Risk Weighted Asset (RWA)

152,270
130,710

Total Loans & Advance

112,771
124,423
102,519

106,423

91,649

2012 2013 2014 2015 2016

Implementation of Pillar 2 - Supervisory Review Process (SRP) is that banks have a process for
Review Process: SRP-SREP Dialogue on assessing overall capital adequacy in relation to their risk
ICAAP profile and a strategy for maintaining their capital at an
adequate level. Banks are instructed to form a SRP team,
Bangladesh Bank has also implemented the Pillar 2 of where risk management division be an integral part, and
RBCA framework. The key principle of the Supervisory to develop a process document called Internal Capital
Adequacy Assessment Process (ICAAP) for assessing their management procedures, methods and tools in place to
overall risk profile. control the risks:
l Internal audit report of the Bank;
The areas to be covered by the process document are
review of risk management and planning for adequate l Capital growth plan;
capital against comprehensive risk profile including credit,
l Valuation methodology;
market, operational and all other risks which are not
captured in the process of determining MCR. l Assessment procedure and evaluation of report of
each core risk;
That is along with credit, market, operational risks; banks
will allocate capital against other risks which are not l Wholesale borrowing and funding guidelines;
captured in calculating MCR.
l Liquidity contingency plan;
Supervisory Review Evaluation Process (SREP) of l Management Action Trigger (MAT);
Bangladesh Bank includes dialogue between Bangladesh
l Fraud detection and management process;
Bank and the Banks SRP team followed by findings/
evaluation of the Banks Internal Capital Adequacy l Methodology for assessing customer service and
Assessment Process (ICAAP). During SRP-SREP dialogue, evaluation report;
Bangladesh Bank will review and determine additional
l Methodology for calculating weighted average cost
capital to MCR of banks.
of fund;
With this end in view, in May 2014, Bangladesh Bank l Deposit growth plan;
issued the Revised Process Document for SRP-SREP
l Loans / advances growth plan;
Dialogue on ICAAP to facilitate the dialogue for
determination of capital requirement under Pillar 2 of l Profit growth plan;
Basel II. On the basis of the revised process document and
l Stress testing report; and
prescribed reporting format, banks have been advised to
submit their quantitative information regarding ICAAP l Copy of the Board Resolution through which the
based on 31 December 2014 onwards along with the statements on ICAAP under Supervisory Review
supplementary documents. Under the process document, Process have been approved.
Bangladesh Bank also provided guidance to calculate
DBBL compliance towards the BB
required capital against the following risks under Pillar 2
in a specified reporting format:
instruction for implementation of Pillar 2
i. Residual risk; In compliance with the BB instruction for implementation
ii. Concentration risk; of Pillar 2 under Basel II/III, DBBL made the following
iii. Liquidity risk; developments in 2016
iv. Reputation risk;
i. the Bank submitted the ICAAP Report for
v. Strategic risk;
calculation of capital requirement under Pillar 2 of
vi. Settlement risk;
Basel III for year ended 31 December 2015 with due
vii. Evaluation of Core Risk Management;
approval of the Board of Directors: Determination of
viii. Environmental & climate change risk; and
adequate capital for Pillar 2 for the year 2015 will be
ix. Other material risk. finalized through SRP-SREP Meeting/Dialogue in
In addition to the numerical calculation of capital due course; and
requirement against the risks under Pillar 2, Bank should
ii. The Bank will submit the ICAAP report for the
also submit the following supplementary documents to
Bangladesh Bank for regulatory requirement of ICAAP year-end 2016 within the stipulated time with due
reporting to demonstrate that they have proper risk approval of the Board of the Bank.

ANNUAL REPORT 2016 97

Basel Unit/Capital Management Desk and review and, where appropriate, the involvement of
Supervisory Review Process (SRP) Team of internal or external audits. The Banks Board of Directors
DBBL were active in 2016 has the responsibility to ensure that management
establishes a system for assessing the various risks,
DBBL has a separate Basel Unit/Capital Management develops a system to relate risk to the Banks capital level,
Desk to ensure implementation and full compliance with
and establishes a method for monitoring compliance with
Basel Capital Accords. In addition, during the year 2016,
internal policies.
the SRP team of DBBL has been active to review the
Internal Capital Adequacy Assessment Process (ICAAP) for Accordingly, risk factors and possible consequence of
determining capital requirement under Pillar 2 covering all every transaction and operation are considered by the
residual risks in addition to risks covered under Pillar 1 i.e. management of DBBL for ensuring that Bank is operating
credit risk, market risk or operational risk. within approved risk management guidelines of Board
of Directors of the Bank within the broader framework
The Board approved Terms of References (ToRs), among
of Basel III guidelines of Bangladesh Bank. Boards Risk
others, in brief, under which the SRP Team of DBBL has
Management Committee, Audit Committee, Internal
been working are as under:
Auditors, External Auditors and Risk Management
i) Reviewing and upgradation of ICAAP document for Division are actively involved, wherever necessary, to
assessing the overall risk profile of the Bank; assess compliance status and adequacy of capital of the
Bank.
ii) Formulation of strategies for maintaining adequate
capital covering all risks under Pillar 1 and Pillar 2; Implementation of Pillar 3 Market
Discipline (Disclosures on risk based capital
iii) Reviewing the stress testing results and setting under Basel III)
strategies for improvement of the post shocked
Capital Adequacy Ratio (CAR) of the Bank; DBBL fully comply with the disclosures framework under
Pillar 3 as stipulated by Bangladesh Bank. Under the
iv) SRP Team will be responsible for providing, disclosures framework, the qualitative and quantitative
verification & authentication of data/information aspects of credit, market and operational risks along with
required for preparing the ICAAP reporting including the approaches applied for calculation of MCR are also
preparation of possible SRP-SREP dialogue on their disclosed.
respective area of operation for determination of
capital requirement of DBBL under Pillar 2; and The detailed disclosures under Pillar 3 for the year ended
31 December 2016 are furnished from Pages 107 to 138 of
v) The SRP Team should meet at least bi-monthly this Annual Report.
(at least once in every two months) to monitor the
implementation of SRP of the Bank. These disclosures are also posted in the Banks website in
compliance with the BB directive.
Mentionable that, the SRP team of DBBL was active in
2016 for working under the above-mentioned ToRs set by DBBL Risk Management Division
the Board. During the year 2016, the SRP team of DBBL entrusted with overall and integrated risk
held 6 Meetings. management of the Bank

Importance of internal control system for Bangladesh Bank (BB) continuously underscored the
risk assessment and capital requirement importance for bringing dynamism and establishing
better risk management system in the banks through
The Banks internal control structure is essential to the issuing independent risk management policy guidelines,
capital assessment process. Effective control of the regulatory reporting framework etc. In continuation
capital assessment process includes an independent of these policy initiatives, Bangladesh Bank in 2011
instructed to prepare a Risk Management Paper (RMP) proposals, post sanction process, follow up & monitoring
containing the analysis of all types of existing and of loans, operation level risk verifications, liquidity risk,
probable risks that might occur in future, place the same etc.) are included in the new format.
in their regular monthly meeting and submit the RMP
The revised CRMR mainly includes both quantitative
along with the decisions of the meetings to BB. Based
and qualitative analysis of different risk parameters. The
on the RMP, BB regularly evaluates the risk management
segment-wise (namely, credit risk, market risk, liquidity
activities of each bank and provides constructive
risk, operational risk) quantitative analysis are carrying
recommendations to improve their conditions. Banks have out through the actual position of the portfolio vis--vis
to execute all the recommendations and submit their the approved internal or external limit set corresponding
compliance reports within a specified time frame. to each risk parameter/area. While the qualitative
analyses are made based on questionnaire check list for
In 2012, BB issued guideline called Risk Management
each segment of risk.
Guideline for banks. This guideline promotes an
integrated, bank-wide approach to risk management BB has also developed rating procedure to quantify all
which will facilitate banks in adopting contemporary possible risks based on available information in the
methods to identify, measure, monitor and control risks CRMR, minutes of RMD and board risk management
throughout their institutions. committee meetings, compliance status of previous
quarters submitted by banks and other sources. This risk
The guideline encompasses the most common risks in
rating is done on half yearly basis and carries a certain
banking companies of Bangladesh including credit risk,
weightage in the management component of CAMELS
market risk, liquidity risk, operational risk and other
rating. Therefore, a bank's risk management practices will
residue risks, namely, compliance risk, strategic risk, have a significant effect on its CAMELS rating.
money laundering risk, reputation risk etc.
Compliance with the implementation of
The guideline, among others, outlined the following key core risk management practice
issues for establishing a better risk management culture
in the Bank: Bangladesh Bank vide BRPD Circular No. 17 dated 7
October 2003 instructed banks to prepare the core
a) Elements of a sound risk management system;
risk management guidelines for key areas of banks
b) The Board and senior management oversight; operations, namely, (i) asset-liability/balance sheet risks;
c) Risk measurement, monitoring and management (ii) credit risk; (iii) foreign exchange risk; (iv) internal
reporting system; and control & compliance risk; and (v) money laundering risk
in line with the BB circulated indicative guideline for each
d) Internal control and comprehensive audits.
area of core risk segment. Later, in 2007, BB included the
Keeping an adequate risk management framework in Information & Communication Technology (ICT) under the
place is the responsibility of the Banks senior executives, purview of core risks of banks.
in particular the Managing Director / CEO, subject to the
In line with the international best practices and to
oversight of the Board of Directors (BOD). bringing dynamism in risk management for a sustainable
In September, 2015, BB has introduced a new reporting financial sector in Bangladesh, BB has upgraded &
format named as Comprehensive Risk Management circulated the revised version of all core risks guidelines in
March 2016 for compliance by all banks.
Report (CRMR) for banks in place of the previous format
(RMP). To make the risk management activities more In compliance with the BB instructions have been brought
effective, various types of contemporary risk issues and to us through core risk guidelines, DBBL has been under
a questionnaire (related to risk management structure, process for implementation of the new and upgraded
credit policies & procedures, evaluation process of credit issues.

ANNUAL REPORT 2016 99

The compliance status against the BB observations/recommendations towards implementation of core risk
management practices of DBBL are as under:

Referencedate Numberof Numberof

Numberof
ofBangladesh observations observations
observations Remarks
Areaofcorerisks Bank raisedby remainduefor
compliedby
inspection* Bangladesh compliance
DBBL
Bank

Asset&Liabilityrisk 30-Jun-15 24 15 9 The latest status of compliance

management for the remaining observations
was submitted to BB.

Creditrisk 30-Jun-15 29 23 6 The latest status of

management compliance for the remaining
observations was submitted
to BB.

AntiMoney 31-Dec-14 14 14 - Complied with all of the

laundering observations raised by the
riskmanagement Bangladesh Bank.

Information& 30-Jun-15 106 87 19 The latest status of

communication compliance for the remaining
observations was submitted
to BB.

Foreign Exchange 30-Jun-15 2 1 1 The latest status of

risk management compliance for the remaining
(Off site) observations was submitted
to BB.

Internal Control & 30-Jun-15 10 8 2 The latest status of

Compliance risk compliance for the remaining
observations was submitted
to BB.

* BB conducted inspection based on the position as on 30 June 2016, the reports of which were received in January 17
with deadline for submission of compliance there-against in March 17. As a result, the compliance status based on
the earlier reference date available has been furnished.
Steps/ action taken for implementation of of the core risk guidelines/ practices efficiently and
core risk management effectively. Within the management, there are several
risk management committees, namely, ALCO, Credit
The Board of Directors of the Bank and its sub- Risk Management Committee, Management Committee
committees, namely, Audit Committee, Risk Management (MANCOM) for overseeing the relevant risk exclusively.
Committee etc. approves relevant guidelines, polices for In addition to the risk management committee through
implementation of core risk management practices across risk management division regularly assesses the overall
the Bank. The Board and its committees also review implementation status of core risk management aspects
the implementation status, regulatory compliance and and report the same to the Risk Management Committee
guide the management for ensuring the implementation of the Board of the Bank on quarterly rest.

a. Steps/measures taken in 2016 by the individual functional divisions/respective management committees

Asset- l Banks ALCO held regular meetings in 2016 for betterment of ALM functions;
liability risk
l To manage the liquidity position of the Bank. As part of ALM, Banks Credit-Deposit Ratio
management
(CDR) at the end of 31 December 2016 stood at 83.6%, low cost deposits (except Fixed Deposit
Receipts) improved to 78.3 % of total deposits against 75.7% of 2015;
l The Bank posted 68.7% net interest margin (NIM) in the year 2016;
l Maintained the adequate CRR and SLR throughout 2016; and
l At the end of 2016, Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) stood
at 129.9% and 117.2% respectively against the BBs minimum threshold of 100%. Leverage
Ratio of DBBL stood at 5.2% against regulatory requirement of minimum 3%.
Credit risk l Banks Credit Committee held regular meetings to review the credit proposals in compliance
management with the regulatory stipulations;
l Compliance with the BB observations on credit risk management including yearly review of
Banks Credit Policy highlighting the succession plan, business delegation power, maximum
industry cap, key responsibilities etc. has been made; and
l The Bank complied with most of the BB observations as of 30 June 2015.
Anti money l Reviewed and updated the KYCs of almost all customer accounts under Time Bound Action
laundering risk Plan;
management
l Banks Manual on Anti Money Laundering (AML) & Combating Terrorist Financing (CTF) has
been revised in the light of BFIU master Circular no. 10 and approved by the Board of Directors
of the Bank;
l Banks Risk Management Guideline on AML & CTF has been introduced in the light of BFIU
directives and approved by the Board of Directors;
l Our in-house expert IT department has developed a good number of Transaction Monitoring
mechanism & Reports - that are raising early alerts on any suspicious indicators;
l DBBL has deployed and effectively using an automated Sanction-screening tool (of Global
standard) to ensure bank does not get involved with any restricted parties;
l The Bank complied with all the BB observations as of 30 June 2015;
l A seamless Advisory & Governance service to all staff from the CAMLCO office with Senior
Management Commitment has assured DBBL with no penalty, no censure and no major
regulatory observation in the ground of AML/CTF risks in 2016; and
l Special AML audit of branches has been conducted by the Office of the CAMLCO as well as by
the Internal Control & Compliance Division.

ANNUAL REPORT 2016 101

Information & l Compliance was made with the BB observation on ICT risk management including yearly
communication review of Banks ICT Policy;
technology risk
management l DBBL complied with 87 (eighty seven) recommendation (out of 106 recommendation) of BB as
of 30 June 2015;

l Apart from the concerned division, MANCOM and risk management committee regularly
monitored the implementation status of ICT risk management; and

l In addition to the existing 1 Disaster Recovery Site (DRS), DBBL has decided in principle to
build the 2nd DRS.
Foreign l Banks ALCO has been in close vigilance for managing the foreign exchange risk through out
exchange risk the year; and
management
l A Rate Committee Chaired by the Managing Director & CEO met daily to fix the DBBL foreign
exchange rates against the respective currencies upon reviewing the foreign exchange
movement, DBBL portfolio position, overall demand-supply position of the market and took
measures for optimizing the exchange position.
Internal l Enforcement procedures related to ICC risk was under direct supervision of the Audit
control & Committee of the Board for achieving required performance, information and compliance
compliance risk objectives;
management
l Risk Based Internal Audit (RBIA) system has been put in place effectively and all branches
and divisions were rated accordingly conforming to RBIA;
l Intensive monitoring on implementation of DCFCL in branches and divisions. Quarterly
Operation Review (QOR) for all concerned were also ensured;
l All branches has been brought under inspection by the Internal Control & Compliance Division
(IC&CD) as per the Annual Inspection Plan approved by the Board; and
l Regularization of lapses/ irregularities in loan documentation identified/ detected in course
of Periodical Inspection was ensured promptly by the dedicated team.

b. Steps taken by the Risk Management Division iii. An evaluation guideline/criteria has been prepared
for implementation of core risk management with due approval of the Board for determination of
synchronization with capital requirement under Pillar 2 capital requirement against each core risk aspect as
(Supervisory Review Process) of Basel III stipulated by BB under Pillar II (Supervisory Review
Process) of Basel III. As per the set guideline, RMD
Apart from the risk management measures mentioned
evaluated implementation status of each core risk
above, the Risk Management Division as a coordinating
management practice regularly and determined the
division also took the following initiatives for
capital requirement there-against.
strengthening the core risk management practices across
the Bank: Risk Appetite
i. Risk Management Division has played a pivotal and In accordance with DOS Circular Letter No. 13 dated 9
coordinating role with all concerned of the Bank for September 2015 of Bangladesh Bank, Risk Management
ensuring implementation of core risk management
Division shall ascertain risk appetites on yearly basis for
practices including mitigation of BB observations in
all possible measurable risks including:
all core risk areas;
l Sector, industry and area-wise loan targets, credit
ii. Compliance status of each core risk aspect of
concentration among top-20 borrowers;
the Bank was reported to the Risk Management
Committee of the Board of DBBL. The decisions l Off balance sheet exposures as a percentage of
taken by the Committee were also disseminated to total assets, the annual growth rate of loans and
all concerned for further compliance; and advances;
 l Limitations on the percentage of financial liabilities areas of the Bank and placed to the Risk Management
sourced from the top -10 suppliers, gaps between Committee of Board/Senior Management for taking
total assets and liabilities in different time buckets remedial measures.
of the liquidity profile; and
l Gap between rate sensitive assets and liabilities, The Board approved risk appetites have submitted to
various ratios regarding liquid assets, expected Bangladesh Bank as regulatory compliance. These have
loss from operational loss and the Capital to Risk also been communicated to all concerned of the Bank for
Weighted Assets (CRAR) after applying stress test. implementation.

Tools, techniques and approaches for ii. Stress Testing as a forward-looking tool
strengthening the overall risk management for risk management
activities - introduced by Bangladesh Bank
Stress testing is an important risk management tool that
Bangladesh Bank as the regulator has been shifting its identifies potential risks and supports the optimization
strategy from compliance based approach to forward of capital and liquidity buffers. It enables the exploration
looking risk based approach with a view to strengthening of vulnerabilities in business models whilst overcoming
the overall risk management activities, financial stability the limitations historical data. Stress tests are used to
and soundness and the corporate governance of banks in measure the impact of extreme, yet plausible events.
line with international best practices. In compliance with Where necessary, measures are taken on the basis of the
the BB directives/ guidelines, DBBL has been practicing, results of the stress tests that are in line with DBBLs risk
among others, the following major risk management tools appetite.
and techniques as under:
The Bank should conduct periodic reviews of its risk
i. Risk Appetite Statement (RAS) management process to ensure its integrity, accuracy, and
In compliance with the DOS Circular Letter No. 13 dated reasonableness through stress testing. A bank should
9 September 2015 of Bangladesh Bank, a Risk Appetite have written policies and procedures governing the stress-
Statement covering credit, liquidity, Foreign exchange and testing program.
other areas of banking operations have been put in place
DBBL carried out stress testing as per Bangladesh Bank
with due approval of the Board. As per BB directive, the
guidelines regularly in 2016 on quarterly intervals. The
Risk Appetites have been set taking into consideration
findings were reported to Bangladesh Bank and Board
of the existing as well as emerging risks supposed to be
of Directors of the Bank for compliance and guidance.
associated with the overall activities of the Bank within
Findings of stress testing and guidance from Bangladesh
next one year. For example, targeted credit concentration
Bank and Board are also taken into account for assessing
to specific single borrower/ industry/sector/geographical
potential risk, mitigation of such risks as well as current
region; annual growth of loan, growth of overall size of
and future capital requirement of the Bank.
balance sheet, growth of off-balance sheet exposures in
relation to total assets of the Bank, liability/depositors As of 31 December 2016, the combined post-shocks
concentration, gap of financial assets and liabilities in capital adequacy ratio (CAR) at minor level of DBBL
different time buckets, growth of rate sensitive assets stood at 10.1% in terms of stress test parameters set by
and rate sensitive liabilities and its impact on the Banks Bangladesh Bank (BB).
earnings due to changes of market interest rates, net
open position of banks foreign exchange exposures, iii. Financial Projection Model (FPM)
expected loss due to the adverse operational events,
position of capital to risk weighted asset ratio (CRAR) of In compliance with the BB instructions, DBBL has
the Bank. submitted the FPM on quarterly rest regularly in 2016.
Through the FPM, the Bank tries to identify the risk-
Risk Management Division (RMD) upon analyzing the prone area, conducts further in-depth review and
actual position in relation to the risk appetites set by sets the remedial measures to address the risks and
the Board identifies the existing and emerging risk prone vulnerabilities.

ANNUAL REPORT 2016 103

iv. Quick Review Report (QRR) DBBL has been submitting this statement to BB on
quarterly rest for ensuring the regulatory compliance and
Bangladesh Bank started evaluating the financial positions taking measures for improvement of the Banks internal
of banks upon review/analysis of banks submitted data/ control and compliance system, where necessary.
information in prescribed reporting format through Quick
Review Report (QRR) on quarterly rest. The report focuses
vi. Integrated Supervision System (ISS)
on major risks existed in the bank portfolio and helps for With a view to bringing the branch and head office of
taking measures to address/ overcome the risks. commercial banks under close monitoring, supervision and
control, BB has introduced Integrated Supervision System
Since introduction of this risk identification tool by BB in
(ISS) with effect from February 2014. Under this system,
March 2012, DBBL has been submitting the statement to BB has developed a reporting infrastructure segregating
BB within the stipulated time for ensuring the regulatory the reporting requirements for branches and head office
compliance as well as taking measures for mitigating the separately. This ISS covers the position of overall state of
risks by reviewing the findings/ observations of this report. affairs of the respective banks at the end of each month/
quarter.
v. Self-Assessment of Anti-Fraud Internal
Controls Since introduction, DBBL has complied with the ISS
reporting requirements of BB.
For identifying the strengths and weaknesses of internal
control and compliances concerning the major area of Regulatory compliance with regards to
operations of banks, namely, general banking, credit risk management reporting through risk
portfolio, information and communication technology management division of DBBL
(ICT), BB has introduced a Questionnaire based checklist
In addition to the regular regulatory compliances, DBBL
for Self-Assessment of Anti-Fraud Internal Controls in
also complied with the risk management reporting as
2012. Under reporting framework, banks should submit the stipulated in Risk Management Guidelines for Banks in
filled-in questionnaire with relevant supporting papers to February 2012 and others instructions/circulars issued by
BB on quarterly rest. Bangladesh Bank from time to time.

The compliance status of risk management reporting by the Risk Management Division of DBBL during the year 2016
are as under:

Particulars Reporting to Compliance status Remarks

1. Risk management reporting
i. Quarterly risk management Risk Complied
reporting covering management
l Internal capital committee of the
adequacy assessment Board
process (ICAAP);
l Key figures from the
credit portfolio;
l Market risk;
l Large exposures;
l Liquidity risk.
ii. Submission of Monthly Bangladesh Bank Complied
Risk Management Report on Monthly rest
and minutes of risk
management committee
 Particulars Reporting to Compliance status Remarks
iii. Comprehensive Risk Bangladesh Bank Complied
Management Report on Half Yearly
(CRMR) and minutes of risk rest
management committee
2. Basel III reporting and capital
management
i. Submission of MCR Bangladesh Bank Quarterly MCR and CRAR under Basel III
under Pillar 1 on quarterly was submitted to BB within the stipulated
rest; time.

ii. Submission of ICAAP Bangladesh ICAAP document of DBBL was submitted Board approved
Report for calculation Bank to BB with in stipulated time. the ICAAP
of adequate capital Document for
requirement under Pillar submission to
2 annually; BB.

iii. Disclosures requirement Bangladesh Bank l Disclosure requirements as per BB

under Pillar 3; with uploading a reporting format for the year 2015
soft copy in the was submitted to BB and posted in
Banks website the Banks website;

l Disclosures for the year ended 2016

are set from Pages 107 to 138 of
this Annual Report. The soft copy
of disclosures has been uploaded in
the Banks website. A printed copy
of the same will also be submitted
to BB within the stipulated time for
regulatory compliance.
iv. Basel III liquidity ratios Bangladesh Bank Under Basel III guideline, Bank has been
a. Liquidity coverage Monthly compliant for submission of statements of
ratio (LCR) Liquidity Coverage Ratio (LCR), Net Stable
Funding Ration (NSFR) and Leverage Ratio
b. Net stable funding Quarterly
to Bangladesh Bank within the stipulated
ratio (NSFR)
time.
c. Leverage ratio Quarterly

v. Capital planning in line Board/ Information memorandum has been placed to

with the implementation management the Board regarding capital management in line
of Basel III; with the Basel III guideline from time to time.

3. Stress testing Bangladesh Bank has been compliant for submission Stress test
Bank, Board/Risk of stress testing reports to BB on quarterly reports have
Management rest within the stipulated time. been reported
Committee of the to the Board on
Board of the Bank quarterly rest.

ANNUAL REPORT 2016 105

 Particulars Reporting to Compliance status Remarks

4. Statement of Off-Site Bangladesh Bank, Bank has been compliant for submission The
Supervision (CAMELS Pack) Board/ senior of required information/ data on CAMELS observations/
for conducting CAMELS management rating and its subsequent regulatory findings of BB
Rating by BB compliance to BB on half-yearly rest within made in the
the stipulated time. CAMELS rating
reports were
also submitted
to the Board for
concurrence,
guidance and
compliance
with the BB
observations.

5. Financial Projection Model Bangladesh Bank has been compliant for submission of
(FPM) Bank/senior filled-in FPM to BB on quarterly rest within
management of the stipulated time.
the Bank

6. Quick Review Report (QRR) Bangladesh Bank has been compliant for submission
under BSS Bank/senior of QRR and its subsequent compliance to
management of BB on quarterly rest within the stipulated
the Bank time.

7. Credit rating Bangladesh Bank l Bank was compliant for conducting

credit rating for the year ended 2015
including submission of the rating
report to BB, serving press release
for public notification etc. within the
stipulated time.

l The credit rating of DBBL for the year

ended 2016 will be completed within
30 June 2017.

8. Compliance with the core risk Bangladesh Bank has been compliant with the BB
management practices Bank recommendations/ suggestions made in
different inspection reports of core risks
management practices. The Compliance
status is furnished at Page 100 of the
Annual Report.
 disclosures
on risk based
capital (Basel III)
DISCLOSURES ON
RISK BASED CAPITAL (BASEL III)
Scope of Application
Qualitative Disclosures
a) The name of the top corporate Dutch-Bangla Bank Limited (the Bank)
entity in the group to which this
guidelines applies.
b) An outline of differences in The consolidated financial statements of the Bank include the financial
the basis of consolidation for statements of Dutch-Bangla Bank Limited and the Off-shore Banking Units
accounting and regulatory (OBUs). A brief description of the Bank and the OBUs are given below:
purposes, with a brief description of
the entities within the group The Bank [Main operation]
Dutch-Bangla Bank Limited (the Bank) is a scheduled commercial bank set up
(a) that are fully consolidated; as a joint venture between Bangladesh and the Netherlands. Incorporated as
a public limited company under the Companies Act, 1994, the Bank obtained
(b) that are given a deduction licence from Bangladesh Bank on 23 July 1995 and started its banking business
treatment; and with one branch on 3 June 1996. The number of branches was 165 as on 31
December 2016 all over Bangladesh. The Bank is listed with Dhaka Stock
(c) that are neither consolidated Exchange and Chittagong Stock Exchange as a publicly quoted company.
nor deducted (e.g. where the
The principal activities of the Bank are to carry on all kinds of commercial
investment is risk-weighted).
banking bussiness in Bangladesh.

Mobile Banking Services

The Bank obtained the permission for conducting the Mobile Banking Services
from Bangladesh Bank on 28 April 2010. The Bank started operation of Mobile
Banking Services on 31 March 2011.
The principal activities of the Mobile Banking Services are to provide banking
services to Mobile Banking customers through Mobile Phone and multiple
delivery channels within the applicable rules & regulations and guidelines of
Bangladesh Bank.
Mobile Banking Services are part of Main Operation of the Bank.

Agent Banking Services

The Bank obtained the permission for conducting the Agent Banking services
from Bangladesh Bank on 27 July 2014. The Bank started operation of Agent
Banking Services on 19 January 2015.
The principal activities of the Agent Banking Services are to provide banking
services to the Bank customers through engagement of agents who conducts
Banking Transaction on behalf of the Bank under a valid agency agreements
rather than Bank's own Tellers/Cashiers to deliver the services within the
applicable rules & regulations and guidelines of Bangladesh Bank.
Agent Banking Services are part of Main Operation of the Bank.

ANNUAL REPORT 2016 109

Scope of Application (Continued)
Off-shore Banking Unit (OBU)
The Off-shore Banking Unit (OBU) of the Bank is the separate business entity
governed by the applicable rules & regulations and guidelines of Bangladesh
Bank. The Bank obtained the permission for conducting the operations of OBU
from Bangladesh Bank on 23 February 2010. The Bank started the operation of
OBU on 12 July 2010. The number of OBUs was 2 (two) as at 31 December 2016
located at Chittagong EPZ Branch-Chittagong and Dhaka EPZ Branch-Dhaka.
The principal activities of the OBUs are to provide commercial banking services
through its Units within the rules & regulations and guidelines of Bangladesh
Bank applicable for the Off-shore Banking Units.
c) Any restrictions, or other major
impediments, on transfer of funds
Not applicable
or regulatory capital within the
group.
Quantitative Disclosures
d) The aggregate amount of surplus
capital of insurance subsidiaries
(whether deducted or subjected to an Not applicable
alternative method) included in the
capital of the consolidated group.

Capital structure
Qualitative Disclosures
a) Summary information on the terms In terms of Section 13 of the Bank Company Act, 1991 (Amended upto 2013),
and conditions of the main features the terms and conditions of the main features of all capital instruments
of all capital instruments, especially have been segregated in terms of the eligibility criteria set forth vide BRPD
in the case of capital instruments Circular No. 18 dated 21 December 2014 [Guidelines on Risk Based Capital
eligible for inclusion in CET 1, Adequacy (Revised Regulatory Capital Framework for Banks in line with
Additional Tier 1 or in Tier 2 Capital. Basel III)] and other relevant instructions given by Bangladesh Bank from
time to time. The main features of the capital instruments are as follows:
Common Equity Tier 1 (CET1) capital instruments
Paid-up share capital: Issued, subscribed and fully paid up share capital
of the Bank.
Non-repayable share premium account: Amount of premium realized
with the face value per share at the time of issuing shares through initial
public offering.
Statutory reserve: As per Section 24 of the Bank Company Act, 1991
(Amended upto 2013), an amount equivalent to 20% of the profit before
taxes for each year of the Bank has been transferred to the Statutory
Reserve Fund.
Dividend equalization account: As per BRPD Circular Letter No. 18 dated
20 October 2002 issued by Bangladesh Bank, Dividend Equalization
Account has been created by transferring the amount from the profit
that is equal to the cash dividend paid in excess of 20%.
Retained earnings: Amount of profit retained with the banking company
after meeting up all expenses, provisions and appropriations.
Capital Structure (Continued)
Additional Tier 1 (AT1) capital instruments
Instruments issued by the banks that meet the qualifying criteria for
AT1: Issued, subscribed and fully paid perpetual subordinated debt/ bond
which meet the qualifying criteria for AT1 as stipulated in guidelines on Risk
Based Capital Adequacy.

Tier 2 capital instruments

General provision against unclassified loans and off-balance sheet
exposures: As per BRPD Circular Letter No. 5 dated 31 May 2016, amount
of general provision maintained against unclassified loans and off-
balance sheet exposures as of the reporting date has been considered.

Subordinated debt capital: Outstanding amount of subordinated debt as

of the reporting date.

Assets revaluation reserves: As per Bangladesh Banks instruction, until

31 December 2014, 50% of incremental value of Banks assets has been
considered. Revaluation Reserve (RR) based on the position as of 31
December 2014 will be deducted @ 20% on yearly basis from 2015 to 2019
under Basel III guideline.

Revaluation reserves of HTM securities: As per Bangladesh Banks

instruction, until 31 December 2014, 50% of revaluation reserve of HTM
securities has been considered. Revaluation Reserve (RR) based on the
position as of 31 December 2014 will be deducted @ 20% on yearly basis
from 2015 to 2019 under Basel III guideline.

Revaluation reserves of HFT securities: As per Bangladesh Banks

instruction, until 31 December 2014, 50% of revaluation reserve of HFT
securities has been considered. Revaluation Reserve (RR) based on the
position as of 31 December 2014 will be deducted @ 20% on yearly basis
from 2015 to 2019 under Basel III guideline.
Quantitative Disclosures

b) The amount of Common Equity The amount of Common Equity Tier 1 (CET1) capital as per disclosures in the
Tier 1 (CET1) capital audited financial statements as of 31 December 2016 are as follows:
In million Taka
Particulars Amount
Paid up capital 2,000.0
Non-repayable share premium account 11.1
Statutory reserve 8,134.4
General reserve -
Retained earnings (including proposed cash dividend for 2016) 5,237.7
Dividend equalization account 1,366.8
Other (if any item approved by Bangladesh Bank) -
Sub-Total of CET 1 Capital [A] 16,750.0

ANNUAL REPORT 2016 111

Capital Structure (Continued)
c) The amount of Additional Tier 1 The amount of Additional Tier 1 (AT1) capital as per disclosures in the audited
(AT1) capital financial statements as of 31 December 2016 are as follows:
In million Taka
Particulars Amount
Non-cumulative irredeemable preference shares -
Instruments issued by the banks that meet the qualifying
-
criteria for AT1
Others (if any item approved by Bangladesh Bank) -
Sub-Total AT1 Capital [B] -
d) The amount of Tier 2 capital The amount of Tier 2 capital as per disclosures in the audited financial
statements as of 31 December 2016 are as follows:
In million Taka
Particulars Amount
General provision against unclassified loans and off-balance
2,326.6
sheet exposures (including OBU)
All other preference shares -
Subordinated debt 3,700.1
Revaluation Reserves as on 31 December 2014 (50% of Fixed
475.2
Assets and HTM Securities)
Others (if any item approved by Bangladesh Bank) -
Sub-Total of Tier 2 Capital [C] 6,501.9

e) Regulatory Adjustments/ In million Taka

Deductions from capital Particulars Amount
Deferred tax assets against the specific loan loss provision
1,812.4
from CET 1 capital*
Revaluation Reserves for Fixed Assets, Securities (40% for
190.1
the year 2016) from Tier 2 capital
Sub-Total of Deduction [D] 2,002.5
f) Total eligible capital In million Taka
Particulars Amount
Total Eligible Capital [A+B+C-D] 21,249.4

* As per the Bangladesh Bank instructions contained in BRPD Circular No. 11 dated 12 December 2011 and BRPD letter No. BRPD(BFIS)661/14B(P)/2015-18014
dated 24 December 2015.

Capital Adequacy
Qualitative Disclosures
(a) A summary discussion of the The Bank assesses the adequacy of its capital in terms of Section 13 (1) of the
banks approach to assessing the Bank Company Act, 1991 (Amended up to 2013) and instruction contained in
adequacy of its capital to support BRPD Circular No. 18 dated 21 December 2014 [Guidelines on Risk Based Capital
current and future activities. Adequacy for Banks (Revised regulatory capital framework in line with Basel III)].
However, in terms of the regulatory guidelines, the Bank computes the capital
charge / requirement as under:
i. Credit risk : On the basis of Standardized Approach;
ii. Market risk : On the basis of Standardized Approach; and
iii. Operational risk: On the basis of Basic Indicator Approach.
Capital Adequacy (Continued)
The Bank assesses the capital requirement considering the existing size of
portfolio, concentration of portfolio to different risk weight groups, asset
quality, profit trend etc. on quarterly rest. The Bank also forecasts the
adequacy of capital in terms of its capacity of internal capital generation,
maintaining the size of the portfolio, asset quality, conducting credit rating of
the borrowers, segregation of portfolio to different risk weight groups etc. As
of 31 December 2016, Bank maintained total capital (CET 1 and Tier 2) of Taka
21.25 billion against the minimum requirement including capital conservation
buffer of Taka 17.23 billion with a surplus of Taka 4.02 billion. Banks capital
to risk-weighed asset ratio (CRAR) as of 31 December 2016 stood at 13.1%
(consisting of 9.2% in CET 1 capital and 3.9% in Tier 2 capital) against the
regulatory requirement of minimum including capital conservation buffer
10.625%. This surplus capital both in term of absolute amount and ratio
(CRAR) is considered to be adequate to absorb all the material risks to
which the Bank may be exposed in future. The Bank maintained more
than adequate capital against the regulatory requirement to upheld and
strengthen the confidence of its investors, depositors and other stakeholders.

Quantitative Disclosures

(b) Capital requirement for Credit Risk In million Taka

Minimum Capital
Risk Weighted
Particulars Requirement
Assets (RWA)
(MCR)
Credit Risk
On-balance sheet 127,731.2 12,773.1
Off-balance sheet 9,264.7 926.5
Total 136,995.9 13,699.6

(c) Capital requirement for Market In million Taka

Risk Minimum Capital
Risk Weighted
Particulars Requirement
Assets (RWA)
(MCR)
Market Risk
Interest Rate related instrument - -
Equities 22.6 2.3
Foreign exchange position 2,342.3 234.2
Commodities - -
Total 2,364.9 236.5

(d) Capital requirement for In million Taka

Operational Risk Minimum Capital
Risk Weighted
Particulars Requirement
Assets (RWA)
(MCR)
Operational Risk 22,804.4 2,280.4
Total 22,804.4 2,280.4

ANNUAL REPORT 2016 113

Capital Adequacy (Continued)
(e) Total Risk Weighted Assets In million Taka
(RWA), Total Minimum Capital Particulars Amount
Requirement (MCR) and Total Total Risk Weighted Assets (RWA)
Eligible Regulatory Capital Credit Risk
On-balance sheet 127,731.2
Off-balance sheet 9,264.7
Total Credit Risk [i] 136,995.9
Market Risk [ii] 2,364.9
Operational Risk [iii] 22,804.4
Total Risk Weighted Assets (RWA) [i+ii+iii] 162,165.2

Total Minimum Capital Requirement (MCR)

Credit Risk
On-balance sheet 12,773.1
Off-balance sheet 926.5
Total Credit Risk [i] 13,699.6
Market Risk [ii] 236.5
Operational Risk [iii] 2,280.4
Total Minimum Capital Requirement (MCR) 16,216.5

Total Eligible Regulatory Capital 21,249.4

(f) Total capital, CET1 capital, Total

Tier 1 capital and Tier 2 capital ratio:
For the consolidated group In Percentage
Particulars Ratio (%)
Total Capital to Risk-weighted Asset Ratio (CRAR) 13.1%
Common Equity Tier 1 Capital to Risk-weighted Asset Ratio 9.2%
Total Tier 1 Capital to Risk-weighted Asset Ratio 9.2%
Tier 2 Capital to Risk-weighted Asset Ratio 3.9%

For stand alone In Percentage

Particulars Ratio (%)
Total Capital to Risk-weighted Asset Ratio (CRAR) 13.1%
Common Equity Tier 1 Capital to Risk-weighted Asset Ratio 9.2%
Total Tier 1 Capital to Risk-weighted Asset Ratio 9.2%
Tier 2 Capital to Risk-weighted Asset Ratio 3.9%

(g) Capital Conservation Buffer (CCB) In million Taka

Particulars Amount
Risk Weighted Assets [A] 162,165.2
Rate of Capital Conservation Buffer for 2016 in Percentage [B] 0.625%
Amount of Common Equity Tier 1 (CET 1) Capital is required
1,013.5
as Capital Conservation Buffer [ C = A x B ]
Capital Adequacy (Continued)

(h) Available Capital under Pillar 2 In million Taka

Requirement
Particulars Amount
Total Eligible Regulatory Capital [A] 21,249.4
Minimum Capital Requirement under Pillar 1 [B] 16,216.5
Capital Conservation Buffer [C] 1,013.5
Minimum Capital Requirement including Capital
17,230.0
Conservation Buffer [D=B+C]
Available Capital for Pillar 2 [E=A-D] 4,019.4

Credit Risk
Qualitative Disclosures

(a) The general qualitative disclosure requirement with respect to credit risk, including:

(i) Definitions of past due and As per relevant Bangladesh Bank guidelines, the Bank defines the past due
impaired (for accounting and impaired loans and advances for strengthening the credit discipline and
purposes);
mitigating the credit risk of the Bank. The impaired loans and advances are
defined on the basis of (i) Objective / Quantitative Criteria and (ii) Qualitative
judgment. For this purposes, all loans and advances are grouped into 4
(four) categories namely- (a) Continuous Loan (b) Demand Loan (c) Fixed
Term Loan and (d) Short-term Agricultural & Micro Credit.

Definition of past due/overdue:

i. Any Continuous Loan if not repaid/renewed within the fixed expiry

date for repayment or after the demand by the bank will be treated
as past due/overdue from the following day of the expiry date;

ii. Any Demand Loan if not repaid within the fixed expiry date for
repayment or after the demand by the bank will be treated as past
due/overdue from the following day of the expiry date;

iii. In case of any installment(s) or part of installment(s) of a Fixed

Term Loan is not repaid within the fixed expiry date, the amount of
unpaid installment(s) will be treated as past due/overdue from the
following day of the expiry date;

iv. The Short-term Agricultural and Micro-Credit if not repaid within

the fixed expiry date for repayment will be considered past due/
overdue after six months of the expiry date.

However, a continuous loan, demand loan or a term loan which will remain
overdue for a period of 2 (two) months or more, will be put into the Special
Mention Account (SMA), the prior status of becoming the loan into
impaired/classified/ non-performing.

ANNUAL REPORT 2016 115

Credit Risk (Continued)
Definition of impaired / classified / non-performing loans and advances are
as follows:

Continuous loans are classified as follows:

l Substandard: If it is past due /overdue for 3 (three) months or
beyond but less than 6 (six) months;

l Doubtful: If it is past due / overdue for 6 (six) months or beyond but

less than 9 (nine) months; and

l Bad / Loss: If it is past due / overdue for 9 (nine) months or beyond.

Demand loans are classified as follows:

l Substandard: If it remains past due / overdue for 3 (three) months
or beyond but not over 6 (six) months from the date of expiry or
claim by the Bank or from the date of creation of forced loan;

l Doubtful: If it remains past due / overdue for 6 (six) months or

beyond but not over 9 (nine) months from the date of expiry or
claim by the Bank or from the date of creation of forced loan; and

l Bad / Loss: If it remains past due / overdue for 9 (nine) months or

beyond from the date of expiry or claim by the Bank or from the
date of creation of forced loan.

Fixed Term Loans are classified as follows:

a) In case of any installment (s) or part of installment (s) of a Fixed Term
Loan amounting upto Taka 10 lacs is not repaid within the due date,
the classification is as under:

l Substandard: If the amount of past due installment is equal to or

more than the amount of installment (s) due within 6 (six) months,
the entire loan will be classified as Sub- standard;

l Doubtful: If the amount of past due installment is equal to or more

than the amount of installment (s) due within 9 (nine) months, the
entire loan will be classified as Doubtful; and

l Bad / Loss: If the amount of past due installment is equal to or

more than the amount of installment (s) due within 12 (twelve)
months, the entire loan will be classified as Bad/Loss.

b) In case of any installment (s) or part of installment (s) of a fixed term

loan amounting more than taka 10 lacs is not repaid within the due
date, the classification is as under:

l Substandard: If the amount of past due installment is equal to

or more than the amount of installment (s) due within 3 (three)
months, the entire loan will be classified as Sub- standard;
Credit Risk (Continued)
l Doubtful: If the amount of past due installment is equal to or more
than the amount of installment (s) due within 6 (six) months, the
entire loan will be classified as Doubtful; and

l Bad / Loss: If the amount of past due installment is equal to

or more than the amount of installment (s) due within 9 (nine)
months, the entire loan will be classified as Bad/Loss.
Short-term Agricultural and Micro-credit: The Short-term Agricultural and
Micro Credit will be considered irregular if not repaid within the due date as
stipulated in the loan agreement. If the said irregular status continues, the
credit will be classified as Sub-standard after a period of 12 months, as
Doubtful after a period of 36 months and as Bad/Loss after a period of 60
months from the stipulated due date as per the loan agreement.

ii) Description of approaches The Bank follows the relevant Bangladesh Bank guideline for determination
followed for specific and of general and specific allowances for loans and advances. firstly, the base
general allowances and for provision for the unclassified and classified loans are calculated as under:
statistical methods a) Calculation of base for provision for unclassified /standard loans:
Outstanding amount less suspended interest, if any;
b) Calculation of base for provision for the classified loans, the higher of
the following two amounts:
i. Outstanding amount less suspended interest less value of eligible
securities;
or
ii. 15% of outstanding amount.
Secondly, the following rates are applied on base for provision for
determination of general and specific allowances for loans:

General provisions for unclassified loans and advances: Rates [%]

All unclassified loans (Other than loans under special
mention account, short term agricultural credit, loans to
Brokerage Houses (BHs) / Merchant Banks (MBs) / Stock 1.00%
Dealers (SDs) against Shares, consumer financing, small
and medium enterprise financing, and staff loans)
Small and medium enterprise financing 0.25%
Consumer financing (other than housing finance and loans
5.00%
for professionals under consumer financing scheme)
Consumer financing (for housing finance) 2.00%
Consumer financing (for professionals) 2.00%
Loans to Brokerage Houses (BHs) / Merchant Banks(MBs) /
2.00%
Stock Dealers (SDs) against Shares etc.
Short term agricultural credit 2.50%

ANNUAL REPORT 2016 117

Credit Risk (Continued)
General provisions against Special Mention Account (SMA)
Rates [%]
loans and advances:
All unclassified loans (other than loans under small and
1.00%
medium enterprise and consumer financing and BHs, MBs, SDs)
Small and medium enterprise financing 0.25%
Consumer financing (other than housing finance and loans
5.00%
for professionals under consumer financing scheme)
Consumer financing (for housing finance) 2.00%
Consumer financing (for professionals) 2.00%
Loans to Brokerage Houses (BHs) / Merchant Banks(MBs) /
2.00%
Stock Dealers (SDs) against Shares etc.
Short term agricultural credit 2.50%

Specific provision for classified loans and advances: Rates [%]

Substandard 20.00%
Doubtful 50.00%
Bad/loss 100.00%
Mentionable that, all interest accrued is credited to interest suspense account
instead of crediting the same to income account if the loan is classified as
sub-standard and doubtful. However, charging of interest is discontinued
when the loan is classified as bad/loss.
As per BRPD Circular No. 4 dated 29 January 2015, the restructured large loan
facilities have been treated as Special Mention Account (SMA) for the purpose
of classification. Provision has also been calculated at existing applicable
rate of SMA with additional 1%. The income from restructured loan has been
accounted for only when it was actually received.
iii) Discussion of the Banks credit The salient features of DBBL credit risk management policy and procedures
risk management policy are as under:
l Credit policy approved by the Board: The Board approves the Credit
Risk Management Policy of DBBL for ensuring the best practice in
credit risk management and maintaining quality of assets. The credit
policy/manual has been put in place in compliance with Bangladesh
Banks guidelines on credit risk management and other rules &
regulations circulated by BB from time to time. The policy envisages
making credit decisions based on sound lending principles and
practices supported by reliable and accurate financials, management
integrity, industry/ technical analysis, environmental due diligence,
industry information of the borrowing entity/ company.
l Credit approval is delegated properly: Authorities are properly
delegated ensuring check and balance in credit operation at every
stage i.e. screening, assessing risk, identification, management
and mitigation of credit risk as well as monitoring, supervision and
recovery of loans with provision for early warning system.
l Independent Credit Risk Management Division: There is an
independent Credit Risk Management Division to assess credit
risks and suggest the mitigation procedures & techniques while
processing the credit proposals by the different Corporate Business
Divisions for approval.
Credit Risk (Continued)
l Separate Credit Administration Division: A separate credit
administration division confirms that perfected security documents
are in place before disbursement. DBBL is continuing a unique
process of rechecking security documentation by a second legal
advisor other than the lawyer who vetted it originally. The division
also monitors borrower's compliance with lending covenants and
agreed terms and conditions.

l Independent Special Asset Management Division and

Management Recovery Committee: An independent and
fully dedicated Special Asset Management Division monitors
the performance and recovery of loans, identify early signs of
delinquencies in portfolio and take corrective measures including
legal actions to mitigate risks, improve loan quality and to ensure
timely recovery of loans. This division also monitors risk status of
loan portfolio and ensures adequate loan loss provision. There is a
dedicated and high-level management recovery committee to deal
with the problem loans for early and most appropriate settlements.

l Credit operations are subject to independent internal Audit:

Internal Control & Compliance Division independently verifies and
ensures, at least once in a year, compliance with approved lending
guidelines, Bangladesh Bank guidelines, operational procedures,
adequacy of internal control, documentation and overall Credit Risk
Management System.

l Reporting to Board/ Executive Committee/Risk Management

Committee: Overall quality, performance, recovery status, risks
status, adequacy of provision of loan portfolio are regularly reported
to the Board of Directors/ Executive Committee/ Risk Management
Committee of the Board for information and guidance.

Above all, the Risk Management Division is regularly suggesting/

recommending the Credit Risk Management Division (s) on increasing
the collateral coverage, product/sector specific diversification of credit
exposures, single borrower exposures limit, large loan portfolio ceiling as
stipulated by Bangladesh Bank, improving the asset quality, conducting
credit rating of the borrowers to minimize the capital charge against credit
risk of the Bank.

Adequate provision is maintained against classified loans as per Bangladesh

Bank Guidelines. Status of loans are regularly reported to the Board of
Directors/ Risk Management Committee of the Board.

ANNUAL REPORT 2016 119

Credit Risk (Continued)
Quantitative Disclosures
(b) Total gross credit risk Major types of credit exposure as per disclosures in the audited
exposures broken down by financial statements as of 31 December 2016:
major types of credit exposures In million Taka
Outstanding
Particulars Mix (%)
Amount
Overdraft 19,857.2 11.5%
Cash credit 46,031.4 26.6%
Export cash credit 15,516.6 9.0%
Transport loan 1,766.8 1.0%
House building loan 1,244.5 0.7%
Loan against trust receipt 6,300.1 3.6%
Term loan - industrial 44,876.7 25.9%
Term loan - other 20,910.6 12.1%
Payment against document- cash 231.5 0.1%
Payment against document- EDF 1,207.1 0.7%
Consumer Finance 3,881.6 2.2%
Staff loan 591.6 0.3%
Bills purchased and discounted 10,982.1 6.3%
Total Loans and advances 173,397.8 100.0%

(c) Geographical distribution of Geographical distribution of credit exposures as per the disclosures in the
exposures, broken down in audited financial statements as of 31 December 2016 are as follows:
significant areas by major In million Taka
types of credit exposure. Outstanding
Particulars Mix (%)
Amount
Urban
Dhaka Division 146,695.6 84.6%
Chittagong Division 12,283.5 7.1%
Khulna Division 1,746.9 1.0%
Sylhet Division 371.9 0.2%
Barisal Division 130.2 0.1%
Rajshahi Division 790.9 0.5%
Rangpur Division 612.8 0.4%
Mymensingh Division 407.6 0.2%
Sub-total (Urban) 163,039.4 94.0%
Rural
Dhaka Division 9,172.0 5.3%
Chittagong Division 634.1 0.4%
Sylhet Division 277.0 0.2%
Rajshahi Division 147.5 0.1%
Rangpur Division 65.8 0.0%
Mymensingh Division 62.0 0.0%
Sub-total (Rural) 10,358.4 6.0%
Grand Total (Urban and Rural) 173,397.8 100.0%
Credit Risk (Continued)
(d) Industry or counterparty type Industry or counterparty type distribution of exposures, broken down
distribution of exposures, by major types of credit exposures as per the disclosures in the audited
broken down by major types of financial statements as of 31 December 2016 are as follows:
credit exposures. (i) Loans and Advances including bills purchased and discounted on the
basis of significant concentration:
In million Taka
Outstanding
Particulars Mix (%)
Amount
Commercial lending 7,344.1 4.2%
Agricultural loan 2,578.6 1.5%
Export financing 9,253.4 5.4%
Consumer credit scheme 3,913.3 2.3%
Small and medium enterprise financing 23,720.5 13.7%
Staff loan 591.7 0.3%
House building loan (other than the
1,243.5 0.7%
employees)
Others 124,752.7 71.9%
Total 173,397.8 100.0%

(ii) Industry-wise Loans and Advances including bills purchased and

discounted:
In million Taka
Outstanding
Particulars Mix (%)
Amount
Agriculture, fisheries and forestry 2,578.6 1.5%
Pharmaceutical industries 1,867.3 1.1%
Textile industries 61,230.3 35.3%
Ready- made garment industries 26,636.1 15.4%
Chemical industries 233.4 0.1%
Bank and other financial institutions 4,034.4 2.3%
Transport and communication 1,175.1 0.7%
Electronics and automobile industries 2,032.9 1.2%
Housing and construction industries 6,771.4 3.9%
Energy and power industries 529.7 0.3%
Cement and ceramic industries 1,579.7 0.9%
Food and allied industries 6,172.1 3.5%
Engineering and metal industries including
5,514.2 3.2%
ship breaking
Service industries 7,500.8 4.3%
Other industries 45,541.8 26.3%
Total 173,397.8 100.0%

ANNUAL REPORT 2016 121

Credit Risk (Continued)
(e) Residual contractual maturity Residual contractual maturity of exposures as per the disclosures furnished
breakdown of the whole in the audited financial statements as of 31 December 2016 are as follows:
portfolio, broken down by In million Taka
major types of credit exposure.
Outstanding
Repayable Mix (%)
Amount
On demand 15,478.1 8.9%
Within one to three months 42,025.4 24.3%
Within three to twelve months 74,936.5 43.2%
Within one to five years 29,119.1 16.8%
More than five years 11,838.7 6.8%
Total 173,397.8 100.0%

(f) By major industry or a) Amount of impaired loans and if available, past due loans, provided
counterparty type separately
i) Amount of impaired / classified loans by major industry/sector-type
as of 31 December 2016 was as under:
In million Taka
Outstanding
Major industry/sector type Mix (%)
Amount
Agriculture financing - -
Ready made garments (RMG) industries 412.8 4.6%
Textile industries 5,187.5 57.7%
Other manufacturing industries 84.6 0.9%
Small & medium enterprise (SME) loans 1,327.9 14.8%
Commercial real estate including construction
264.5 2.9%
industries
Residential real estate financing 10.4 0.1%
Power and Gas industries 555.2 6.2%
Transport, storage and communication industries 156.0 1.7%
Trade services 258.0 2.9%
Consumer credit 81.6 0.9%
Others 660.5 7.3%
Total 8,999.0 100.0%

ii) Amount of impaired / classified loans by major counterparty type as

of 31 December 2016 was as under:
In million Taka
Status-wise amount of impaired /
Major classified loans Total
counterparty type
Substandard Doubtful Bad/Loss
Continuous loan 205.3 335.9 503.3 1,044.5
Demand loan 26.6 - 978.2 1,004.8
Term loan 121.1 4.1 6,824.5 6,949.7
Other loans - - - -
Total 353.0 340.0 8,306.0 8,999.0
Credit Risk (Continued)
b) Specific and general provisions
Specific and general provisions for loans portfolio and general provision
for off-balance sheet exposures of the Bank as per audited financial
statements as of 31 December 2016 was as under:
In million Taka
Particulars of specific and general provisions for entire
Amount
loan portfolio and off-balance sheet exposures
Specific provision for loans and advances 4,769.6
General provision for loans and advances 1,726.1
General provision for off-balance sheet exposures 600.5
Total 7,096.2

c) Charges for specific allowances and charges-offs (general allowances)

during the period
The Specific and general provisions for loans portfolio and general
provision for off-balance sheet exposures of the Bank charged during the
year as per audited financial statements for the year ended 31 December
2016 was as under:
In million Taka
Particulars Amount
Specific provision for loans and advances 1,985.9
General provision for loans and advances 231.5
General provision for off-balance sheet exposures 50.4
Total 2,267.8

(g) Gross Non Performing Assets Position of Non Performing Loans and Advances including bills purchased
and discounted of the Bank as per audited financial statements for the year
(NPAs) ended 31 December 2016 was as under:
In million Taka
Particulars Amount
Gross Non Performing Assets (NPAs) 8,999.0
Non Performing Assets (NPAs) to Outstanding Loans &
5.19%
Advances
Movement of Non Performing Assets (NPAs)
Opening balance 5,624.9
Additions/ adjustment during the year (net) 3,374.1
Closing balance 8,999.0
Movement of specific provisions for NPAs
Opening balance 2,783.1
Add: Provision made during the year 1,985.9
Less: Write-off -
Add: Write-back of excess provisions 0.5
Closing balance 4,769.6

ANNUAL REPORT 2016 123

Equities: Disclosures for Banking Book Positions
Qualitative Disclosures
a) The general qualitative disclosure requirement with respect to equity risk, including:
Differentiation between holdings on
which capital gains are expected and
those taken under other objectives Not Applicable
including for relationship and strategic
reasons; and
Discussion of important policies covering Despite, at the end of 31 December 2016, the Bank had no investment
the valuation and accounting of equity to the equity instruments/exposures, but the accounting policies,
holdings in the banking book. This techniques and valuation methodologies were put in places as under:
includes the accounting techniques and
Particulars Valuation method
valuation methodologies used, including
key assumptions and practices affecting Shares:
valuation as well as significant changes Quoted Cost or market price whichever is lower
in these practices. Cost or Book value, as per latest audited
Unquoted financial statements of that entity
(ies), whichever is lower
Bonds:
Subordinated bonds At redemption value
Quantitative Disclosures
b) Value disclosed in the balance sheet of
investments, as well as the fair value of
those investments; for quoted securities,
Not Applicable
a comparison to publicly quoted share
values where the share price is materially
different from fair value.
c) The cumulative realized gains (losses)
arising from sales and liquidations in the
reporting period. -
-Realized gain (losses) from equity
investments
d) l Total unrealized gains (losses)
l Total latent revaluation gains
(losses) -
l Any amounts of the above
included in Tier 2 capital.
e) Capital requirements broken down by The capital requirements for equity investments as of 31 December
appropriate equity groupings, consistent 2016 was as under:
with the banks methodology, as well
as the aggregate amounts and the
type of equity investments subject to In Million Taka
any supervisory provisions regarding Amount Capital
regulatory capital requirements. Capital
Particulars (Market Charge
Charge
Value) Weight
l Capital requirements for equity
investments Specific Risk 11.3 10% 1.13
- For Specific market risk General Risk 11.3 10% 1.13
- For General market risk Total 2.3
Interest rate risk in the banking book (IRRBB)
Qualitative Disclosures
a) The general qualitative disclosure Interest rate risk is the potential impact on the Banks earnings (Net Interest
requirement including the nature Income- NII) and net asset values due to changes in market interest rates.
of IRRBB and key assumptions, Interest rate risk arises when the Banks principal and interest cash flows
including assumptions regarding (including final maturities), for both On and Off-balance sheet exposures,
loan prepayments and behaviour have mismatched re-pricing dates. The amount at risk is a function of the
of non-maturity deposits, magnitude and direction of interest rate changes and the size and maturity
and frequency of IRRBB structure of the mismatch position. The portfolio of assets and liabilities in
measurement. the banking book sensitive to interest rate changes is the element of interest
rate risk.
The immediate impact of changes in interest rates is on the Banks net
interest income (difference between interest income accrued on rate
sensitive asset portfolio and interest expenses accrued on rate sensitive
liability portfolio) for particular period of time, while the long term impact
is on the Banks net worth since the economic value of the Banks assets,
liabilities and off-balance sheet exposures are affected.
Key assumptions on loan prepayments and behavior of non-maturity
deposits:
a) Loans with defined contractual maturity are re-priced in the respective
time buckets in which it falls as per the loan repayment schedule;
b) Loans without defined contractual maturity are segregated into
different time buckets based on the past trend, seasonality,
geographical perspective and re-priced accordingly;
c) Non-maturity deposits namely current, saving deposits are segregated
into different time buckets on the basis of past trend of withdrawal,
seasonality, religious festivals, geographical perspective and re-priced
accordingly. However, the behavior of withdrawal of non-maturity
deposits of DBBL is more or less stable.
DBBL measures the IRRBB as per the regulatory guidelines on a quarterly rest.
Quantitative Disclosures
b) The impact of changes in interest rate for On-balance sheet rate sensitive assets and liabilities of DBBL as per
the audited financial statements as of 31 December 2016 is furnished below:
In Million Taka

Residual maturity bucket

Particulars 1-90 91-180 181-270 271-364
Days Days Days Days
Rate sensitive assets [A] 92,243.7 41,270.0 21,541.4 23,114.5
Rate sensitive liabilities [B] 79,047.0 32,178.0 17,692.4 15,921.4
GAP [A-B] 13,196.7 9,092.0 3,849.0 7,193.1
Cumulative GAP 13,196.7 22,288.7 26,137.7 33,330.8
Interest rate change (IRC) [Note 1] 1% 1% 1% 1%
Quarterly earnings impact [GAP x IRC] 33.0 22.7 9.6 18.0
Cumulative earnings impact 33.0 55.7 65.3 83.3
Note 1: Assuming 1% rise in interest rates for both asset and liability portfolio of the Bank.

ANNUAL REPORT 2016 125

Market risk
Qualitative Disclosures
a) i) Views of Board of Directors The Board approves all policies related to market risk, set limits and
(BOD) on trading / investment reviews compliance on a regular basis. The objective is to provide cost
activities effective funding to finance assets growth and trade related transactions.
The market risk covers the followings risks of the Banks balance sheet:
i) Interest rate risk;
ii) Equity price risk;
iii) Foreign exchange risk; and
iv) Commodity price risk.
ii) Methods used to measure Methods used to measure Market risk
market risk
As per relevant Bangladesh Bank guidelines, Standardized Approach has
been used to measure the Market Risk for capital requirement for trading
book of the Bank. The total capital requirement in respect of market
risk is the aggregate capital requirement calculated for each of the risk
sub-categories. For each risk category minimum capital requirement
is measured in terms of two separately calculated capital charges for
specific risk and general market risk as under:

Component of Capital Charged For Market Risk

Market Risk General Market risk Specific Market risk
Interest Rate Risk Applied Applied
Equity Price Risk Applied Applied
Foreign Exchange Risk Applied
Commodities Price Risk Applied
iii) Market risk management system The Treasury Division of the Bank manages market risk covering liquidity,
interest rate and foreign exchange risks with oversight from Assets-
Liability Management Committee (ALCO) comprising senior executives of
the Bank. ALCO is chaired by the Managing Director & CEO. ALCO meets at
least once in a month.
The Risk Management Division also reviews the market risk parameters
on monthly basis and recommends on portfolio concentration for
containing the RWA.
iv) Policies and processes for There are approved limits for credit deposit ratio, liquid assets to total
mitigating market risk assets ratio, maturity mismatch, commitments for both on-balance
sheet and off-balance sheet items and borrowing from money market
and foreign exchange position. The limits are monitored and enforced
on a regular basis to protect against market risks. The exchange rate
committee of the bank meets on a daily basis to review the prevailing
market condition, exchange rate, foreign exchange position, and
transactions to mitigate foreign exchange risks.
Quantitative Disclosures
b) The capital requirements for market In million Taka
risk The Capital Requirements for: Amount
l Interest rate risk -
l Equity position risk 2.3
l Foreign exchange risk 234.2
l Commodity risk -
Total capital requirement for Market risk 236.5
Operational risk
Qualitative Disclosures
a) i) Views of Board of Directors (BOD) on The policy for operational risks including internal control and
system to reduce Operational Risk compliance risk is approved by the Board in line with the relevant
guidelines of Bangladesh Bank. Audit Committee of the Board
directly oversees the activities of Internal Control and Compliance
Division (IC&CD) to protect against all operational risks.
As a part of continued surveillance, the management
committee (MANCOM), Risk Management Committee (at the
management level), independent Risk Management Division
regularly reviews different aspects of operational risk. The
analytical assessment was reported to the Board/ Risk
Management Committee/Audit Committee of the Bank for
review and formulating appropriate policies, tools & techniques
for mitigation of operational risk.
ii) Performance gap of executives and staffs DBBL has a policy to provide competitive package and best
working environment to attract and retain the most talented
people available in the industry. DBBLs strong brand image
plays an important role in employee motivation. As a result,
there is no significant performance gap.
iii) Potential external events Like other peers, DBBL operates its business with few external
risk factors relating to the socio-economic condition, political
atmosphere, regulatory policy changes, natural disaster etc.
based on the overall perspective of the country. Potential
external events and related downside risk, namely, political
impasse, damage of Banks delivery channel including ATM,
Fast Track, fear of theft/ robbery in banks vaults, compliance/
adjustment due to changes of regulatory policy stance, laws &
regulations etc. are managed to keep within tolerable limit.
iv) Policies and processes for mitigating The policy for operational risks including internal control and
operational risk compliance risk is approved by the Board taking into account
relevant guidelines of Bangladesh Bank. A policy guideline on
Risk Based Internal Audit (RBIA) System is in operation. As per
RBIA, branches with high risk status and subjected to more
frequent audit by Internal Control and Compliance Division
(IC&CD). IC&CD directly reports to Audit Committee of the Board.
Currently, DBBL are using some models or tools for mitigating
operational risk such as Self Assessment of Anti-fraud Internal
Control; Quarterly Operational Report (QOR) and Departmental
Control Function Check List (DCFCL) in line with the Bangladesh
Banks relevant Instructions and recommendations. It is
required to submit the statement on Self Assessment of Anti-
fraud Internal Control to Bangladesh Bank on quarterly rest.
In addition, there is a Vigilance Cell established in 2009 to
reinforce the operational risk management of the Bank. Banks
Anti- Money laundering activities are headed by CAMLCO
and their activities are devoted to protect against all money
laundering and terrorist finance related activities. The newly
established Central Customer Service & Complaint Management
Cell was also engaged in mitigating the operation risks of the
Bank. Apart from that, there is adequate check and balance at
every stage of operation, authorities are properly segregated
and there is at least dual control on every transaction to protect
against operational risk.

ANNUAL REPORT 2016 127

Operational risk (Continued)
v) Approach for calculating capital The Bank follows the Basic Indicator Approach (BIA) in terms of BRPD
charge for operational risk
Circular No. 18 dated 21 December2014 [Guidelines on Risk Based
Capital Adequacy for Banks (revised regulatory capital framework in
line with Basel III)]. The BIA stipulates the capital charge for operational
risk is a fixed percentage, denoted by (alpha) of average positive annual
gross income of the Bank over the past three years. It also states that if
the annual gross income for any year is negative or zero, that should be
excluded from both the numerator and denominator when calculating
the average gross income. The capital charge for operational risk is
enumerated by applying the following formula:

K = [(GI 1 + GI2 + GI3) ]/n

Where:

K = the capital charge under the Basic Indicator Approach

GI = only positive annual gross income over the previous three years (i.e.,
negative or zero gross income if any shall be excluded)

= 15 percent

n = number of the previous three years for which gross income is positive.

Besides, Gross Income (GI) is calculated as Net Interest Income plus

Net non-Interest Income. The GI is also the net result of :

i) Gross of any provisions;

ii) Gross of operating expenses, including fees paid to outsourcing
service providers;
iii) Excluding realized profits/losses from the sale of securities held to
maturity in the banking book;
iv) Excluding extraordinary or irregular items;
v) Excluding income derived from insurance.
Quantitative Disclosures
b) The capital requirement for In million Taka
operational risk
Particulars Amount

Capital requirement for Operational Risk 2,280.4

Total Capital Requirement for Operational Risk 2,280.4

Liquidity Ratio
In line with the provisions of liquidity risk management under Basel III, Bangladesh Bank on the basis of the relevant
guideline of Bank for International Settlements (BIS) has identified the (i) Liquidity Coverage Ratio (LCR); (ii) Net Stable
Funding Ratio (NSFR); and (iii) Leverage ratio under the purview of Liquidity ratio vide BRPD Circular No. 18 dated 21
December 2014 and DOS Circular No. 1 dated 1 January 2015.

Qualitative Disclosures
a) i) Views of Board of Directors The Board of Directors reviews the liquidity risk of the Bank on quarterly
(BOD) on system to reduce rest while reviewing the Quarterly Financial Statements, Stress Testing
Liquidity Risk Report etc. Besides, the EC of the Board also reviews the liquidity position
while reviewing the management information system (MIS) report on
monthly basis.
Upon reviewing the overall liquidity position along with the outlook of
DBBL funding need, investment opportunity, market/industry trend,
the Board takes its strategic decision regarding deposits, funding,
investments, loans as well as interest rates polices etc.
The Board of DBBL always strives to maintain adequate liquidity to meet
up Banks overall funding need for the huge retail depositors, borrowers
requirements as well as maintain regulatory requirements comfortably.
ii) Methods used to measure The maintenance of Cash Reserve Requirement (CRR) and Statutory
Liquidity Risk Liquidity Ratio (SLR) are considered as the fundamental methods/tools
to measure the liquidity position/risk of DBBL.
However, under Basel III, the following methods and tools are mandated
for measuring the liquidity risk.
a) Liquidity Coverage Ratio (LCR): Liquidity Coverage Ratio ensures
to maintain an adequate level of stock of high quality liquid
assets that can be converted into cash to meet its liquidity needs
(i.e. total net cash outflows) over the next 30 calendar days.
b) Net Stable Funding Ratio (NSFR): Net Stable Funding Ratio
aims to limit over-reliance on short-term wholesale funding
during times of abundant market liquidity and encourage better
assessment of liquidity risk across all on- and off-balance
sheet items. The minimum acceptable value of this ratio is 100
percent, indicating that, available stable funding (ASF) should be
at least equal to required stable funding (RSF).
ASF consists of various kinds of liabilities and capital with
percentage weights attached given their perceived stability.
RSF consists of assets and off-balance sheet items, also with
percentage weights attached given the degree to which they are
illiquid or long-term and therefore requires stable funding.
In addition to the above, the following measures have been put in place
to monitor the liquidity risk management position of the Bank on a
continued manner:
a) Asset-Liability Maturity Analysis (Liquidity profile);
b) Whole sale borrowing capacity;
c) Maximum Cumulative Outflow (MCO);
Besides the above, the following tools are also used for measuring
liquidity risk:
a) Stress Testing (Liquidity Stress);
b) Net open position limit - to monitor the FX funding liquidity risk;

ANNUAL REPORT 2016 129

Liquidity Ratio (Continued)
iii) Liquidity risk management In DBBL, at the management level, the liquidity risk is primarily managed
system by the Treasury Division (Front Office) under oversight of ALCO which
is headed by the Managing Director & CEO along with other senior
management.
Treasury Division (Front Office) upon reviewing the overall funding
requirements on daily basis sets their strategy to maintain a
comfortable/adequate liquidity position taking into consideration of
Bank's approved credit deposit ratio, liquid assets to total assets ratio,
asset-liability maturity profile, Bank's earning/profitability as well as
overall market behavior and sentiment etc.
Apart from the above, Risk Management Division also monitors &
measures the liquidity risk in line with the Basel III liquidity measurement
tools, namely, LCR, NSFR, Leverage Ratio. RMD addresses the key issues
and strategies to maintain the Basel III liquidity ratios to the respective
division (s) on regular interval.
iv) Policies and processes for The Asset-Liability (ALCO) policy leads the process & procedures for
mitigating Liquidity Risk mitigation of liquidity risk of DBBL.
ALCO works under specific Terms of References (functions) approved by
the Board.
Treasury Division (Front Office) and ALM desk under regular supervision
of Top Management reviews the overall liquidity position of DBBL and
takes appropriate strategy, process in line with the industry position for
managing liquidity risk of the Bank.
Quantitative Disclosures
b) i) Liquidity Coverage Ratio (LCR) The Liquidity Coverage Ratio (LCR) under Liquidity Ratios of Basel III of
Dutch-Bangla Bank Limited as of 31 December 2016 was as under:
Stock of High quality liquid assets
Liquitity Coverage Ratio (LCR) =
Net cash outflows over the next 30 calendar

Ratio (%)
Particulars
BB Requirement DBBLs Position
Liquidity Coverage Ratio (LCR) 100% 129.9%

ii) Net Stable Funding Ratio (NSFR) The Net Stable Funding Ratio (NSFR) under Liquidity Ratios of Basel III of
Dutch-Bangla Bank Limited as of 31 December 2016 was as under:
Available amount of stable funding (ASF)
Net Stable Funding Ratio (NSFR) =
Required amount of stable funding (RSF)

Ratio (%)
Particulars
BB Requirement DBBLs Position

Net Stable Funding Ratio (NSFR) > 100% 117.2%

Liquidity Ratio (Continued)
iii) Stock of High Quality Liquid As stipulated by BB vide DOS Circular Letter No. 1 dated 1 January 2015,
Assets (SHQLA) the Stock of High Quality Liquid Assets (SHQLA) of Dutch-Bangla Bank
Limited as of 31 December 2016 was as under:
In million Taka
Particulars Amount

Cash in hand 11,052.0

Balance with BB 17,731.5

Un-encumbered approved securities 31,285.7

Total Stock of High Quality Liquid Assets (SHQLA) 60,069.2

iv) Total net cash outflows over the As stipulated by BB vide DOS Circular Letter No. 1 dated 1 January 2015,
next 30 calendar days total net cash outflows over the next 30 calendar days of Dutch-Bangla
Bank Limited based on the position as of 31 December 2016 was as under:
In million Taka
Particulars Amount

Total weighted cash outflows over next 30 calendar days [A] 53,624.3

Total weighted cash inflows over next 30 calendar days [B] 7,380.3

Total net cash outflows over the next 30 calendars days [A-B] 46,244.0

v) Available amount of stable As stipulated by BB vide DOS Circular Letter No. 1 dated 1 January 2015,
funding the available amount of stable funding (ASF) of Dutch-Bangla Bank
Limited as of 31 December 2016 was as under:
In Million Taka

Outstanding Weighted
Particulars
Amount Amount

Available amount of Stable Funding (ASF) 233,241.0 202,620.0

Total 233,241.0 202,620.0

vi) Required amount of stable As stipulated by BB vide DOS Circular Letter No. 1 dated 1 January 2015,
funding the required amount of stable funding (RSF) of Dutch-Bangla Bank
Limited as of 31 December 2016 was as under:
In Million Taka
Outstanding Weighted
Particulars
Amount Amount

Required amount of Stable Funding (RSF) 325,096.9 172,854.2

Total 325,096.9 172,854.2

ANNUAL REPORT 2016 131

Leverage Ratio
Qualitative Disclosures
a) i) Views of BOD on system to The Board of Directors of DBBL primarily views on the growth of On
reduce excessive leverage and Off balance sheet exposures commensurate with its expected
capital growth so that the excessive leverage is reduced. Within the
On-balance components, again, the Board emphasises on the growth of
the prime component i.e. the loans and advances and maintaining good
asset quality so as to maximize the revenue as well as the capacity to
generate capital internally (in the form of retained earnings) to trade-off
the excessive leverage supposed to be caused by asset growth.
At the outset of asset growth, the Board also views the growth of
its sources of fund i.e. deposit growth taking into consideration of
projected business growth so that the credit-deposit ratio is maintained
at a sustainable basis as well as to reduce the mismatches of asset-
liability gap within the tolerable limit to manage the liquidity risk.
ii) Policies and processes for First and foremost, Banks policy is to maintain the Leverage Ratio
managing excessive on and off- (Tier 1 capital as proportion to total adjusted On and Off balance sheet
balance sheet leverage asset) well above the regulatory requirement. To this end, the striking
components of balance sheet, namely, the deposits & borrowing, loans &
advances, other liquid assets (treasury bills, bonds, fund placements) are
analyzed on monthly basis.
Measures are taken to contain the growth of overall size of balance sheet
(On and Off balance sheet exposures aggregately) considering short term
outlook of the industry indicators as well as possible growth of equity
(Tier 1 capital) of the Bank on quarterly rest.
With regard to managing the excessive leverage, the regulatory stance
through the monetary policy initiatives i.e. the scope of expected
business potential (growth), estimated money supply, inflation, resulting
the estimated overall liquidity of the industry as well as the Bank in
particular is also considered.
iii) Approach for calculating The exposures of balance sheet representing the overall position of the Bank
exposure/Leverage as of the reporting date are calculated and presented in terms of applicable
relevant accounting standards, i.e., IASs (BASs), IFRSs (BFRSs), etc.
The accounting values of assets and liabilities are also presented and
measured at gross. Netting of assets and liabilities are also made where
permitted in compliance with the respective accounting standards and
the regulatory instruction.
For calculating "leverage", DBBL follows the Leverage Ratio approach/
method as suggested by Bangladesh Bank.
Quantitative Disclosures
b) i) Leverage Ratio Leverage Ratio (LR) under Basel III of Dutch-Bangla Bank Limited as of 31
December 2016 was as under:
Tier 1 Capital (after related adjustment)
Leverage Ratio (LR) =
Total Exposure (after related deductions)

Ratio (%)
Particulars
BB Requirement DBBLs Position
Leverage Ratio (LR) > 3% 5.2%
Leverage Ratio (Continued)
ii) On balance sheet exposure Total On-balance Sheet exposure for calculating Leverage Ratio under
Basel III of Dutch-Bangla Bank Limited as of 31 December 2016 was as
under:
In million Taka

Particulars Amount

Total On Balance Sheet Assets [A] 276,844.4

Less: Total Specific Provision [B] 4,769.6

Total Adjusted On Balance Sheet exposure [A-B] 272,074.8

iii) Off balance sheet exposure Total Off-balance Sheet exposure for calculating Leverage Ratio under
Basel III of Dutch-Bangla Bank Limited as of 31 December 2016 was as
under:
In million Taka
Credit
Notional Conversion Weighted
Exposures Types
Amount Factor Amount
(CCF)

1 2 3 4=2 x 3

Direct credit substitutes 3,051.8 100% 3,051.8

Performance related contingencies 11,844.2 50% 5,922.1

Short-term self-liquidating trade

14,799.0 20% 2,959.8
letters of credit

Other commitments that can be

unconditionally cancelled by any 23,383.7 10% 2,338.4
time

Total 53,078.7 14,272.1

iv) Total exposure Total Exposures for calculating Leverage Ratio under Basel III of Dutch-
Bangla Bank Limited as of 31 December 2016 was as under:
In million Taka

Particulars Amount

Total On Balance Sheet Exposures [A] 272,074.8

Total Off-Balance Sheet Exposures [B] 14,272.1

Less: Total Deduction / Regulatory adjustments [C] 1,812.4

Total Adjusted exposure [A+B-C] 284,534.5

ANNUAL REPORT 2016 133

Remuneration
Qualitative Disclosures

a) Information relating to the bodies that oversee remuneration.

i) Name of the bodies that oversee remuneration At the management level, primarily the Human Resources
Division oversees the remuneration in line with its HR
management strategy/policy under direct supervision and
guidance of Management Committee (MANCOM) of the Bank.

ii) Composition of the main body overseeing The MANCOM is headed and chaired by the Managing
remuneration Director & CEO of the Bank; along with other members of top
executive management (Deputy Managing Directors) and the
Heads of different functional divisions of Head Office. Head
of Human Resources Division acts as the Member Secretary
of the MANCOM of DBBL.

iii) Mandate of the main body overseeing The mandate of the Management Committee (MANCOM)
remuneration as the main body for overseeing the Banks remuneration
is to review the position of remuneration and associated
matters and recommend to the Board of Directors for
approval of its restructuring, rearrangement and modification
commensurate with the industry best practices as per
requirement.

iv) External consultants whose advice has The Bank has no External Consultant permanently regarding
been sought, the body by which they were remuneration and its process. However, experts opinion
commissioned, and in what areas of the may have been sought in case to case basis regarding income
remuneration process. tax matter, lawyers opinion for settlement of employees
dues in case of death, penalty etc. if required, by the
management.

v) A description of the scope of the banks The Bank does not differentiate the Pay Structure and
remuneration policy (eg by regions, business employee benefits by regions. However, variation in
lines), including the extent to which it remuneration is in practice based on nature of job/business
is applicable to foreign subsidiaries and line/activity primarily bifurcated for the employees who are
branches. directly recruited by the Bank and the headcounts/employees
explored through outsourcing service providers as per rule.
As of 31 December 2016, the Bank had no foreign subsidiaries
and branches outside Bangladesh.

vi) A description of the types of employees We consider the members of the senior management, branch
considered as material risk takers and as managers and the employees engaged in different functional
senior managers, including the number of divisions at Head Office (except the employees involved in
employees in each group. internal control, risk management and compliance) as the
material risk takers of DBBL.
Remuneration (Continued)
b) Information relating to the design and structure of remuneration processes.
i) An overview of the key features and objectives Remuneration and other associated matters are guided by the
of remuneration policy. Banks Service Rule as well as instruction, guidance from the
Board from time to time in line with the industry practice with
the objectives of retention/hiring of experienced, talented
workforce focusing on sustainable growth of the Bank.
ii) Whether the remuneration committee reviewed Human Resources Division under guidance of MANCOM,
the banks remuneration policy during the past the Board and senior management reviews the issues of
year, and if so, an overview of any changes that remuneration & its associated matters from time to time.
were made.
iii) A discussion of how the bank ensures that risk The risk and compliance employees are carrying out the
and compliance employees are remunerated activities independently as per specific terms of references,
independently of the businesses they oversee. job allocated to them.
Regarding remuneration of the risk and compliance
employees, Human Resources Division does not make any
difference with other mainstream/ regular employees and
sets the remuneration as per the prevailing rule of the Bank
primarily governed by the employees service rule of the Bank.
c) Description of the ways in which current and future risks are taken into account in the remuneration processes.
i) An overview of the key risks that the bank takes The business risk including credit/default risk, compliance &
into account when implementing remuneration reputational risk are mostly considered when implementing
measures. the remuneration measures for each employee/group of
employee.
Financial and liquidity risk are also considered.
ii) An overview of the nature and type of the key Different set of measures are in practice based on the nature
measures used to take account of these risks, & type of business lines/segments etc. These measures are
including risks difficult to measure. primarily focused on the business target/goals set for each
area of operation, branch vis--vis the actual results achieved
as of the reporting date. The most vital tools & indicators
used for measuring the risks are the asset quality (NPL ratio),
Net Interest Margin (NIM), provision coverage ratio, credit-
deposit ratio, cost-income ratio, growth of net profit, as well
the non-financial indicators, namely, the compliance status
with the regulatory norms, instructions has been brought to
all concerned of the Bank from time to time.
iii) A discussion of the ways in which these While evaluating the performance of each employee
measures affect remuneration. annually, all the financial and non-financial indicators as per
pre-determined set criteria are considered; and accordingly
the result of the performance varies from one to another and
thus affect the remuneration as well.
iv) A discussion of how the nature and type of No material change has been made during the year 2016 that
these measures has changed over the past could the affect the remuneration.
year and reasons for the change, as well as the
impact of changes on remuneration.

ANNUAL REPORT 2016 135

Remuneration (Continued)
d) Description of the ways in which the bank seeks to link performance during a performance measurement period
with levels of remuneration.
i) An overview of main performance metrics for The Board sets the Key Performance Indicators (KPIs) while
bank, top-level business lines and individuals. approving the business target/budget for each year for the
Bank and business lines/segments. The management sets
the appropriate tools, techniques and strategic planning
(with due concurrence/approval of the Board) towards
achieving those targets. The most common KPIs are the
achievement of loan, deposit and profit target with the
threshold of NPL ratio, cost-income ratio, cost of fund,
yield on loans, provision coverage ratio, capital to risk
weighted asset ratio (CRAR), ROE, ROA, liquidity position
(maintenance of CRR and SLR) etc.
ii) A discussion of how amounts of individual The remuneration of each employee is paid based on her/
remuneration are linked to bank-wide and his individual performance evaluated as per set criteria. And,
individual performance. accordingly, the aggregate amount of remuneration of the
Bank as a whole is linked/ impacted to the same extent.
iii) A discussion of the measures the bank will in The Bank follows remuneration process as per set criteria
general implement to adjust remuneration in the with no in general adjustment in the event of weak
event that performance metrics are weak. This performance metrics/scorecard.
should include the banks criteria for determining
weak performance metrics.
e) Description of the ways in which the bank seek to adjust remuneration to take account of longer-term
performance.
i) A discussion of the banks policy on deferral The Bank pays variable remuneration i.e. annual increment
and vesting of variable remuneration and, if the based on the yearly performance rating on cash basis with
fraction of variable remuneration that is deferred the monthly pay. While the value of longer term variable part
differs across employees or groups of employees, of remuneration i.e. the amount of provident fund, gratuity
a description of the factors that determine the fund are made provision on aggregate/individual employee
fraction and their relative importance. basis; actual payment is made upon retirement, resignation
etc. as the case may be, as per rule.
ii) A discussion of the banks policy and criteria for
adjusting deferred remuneration before vesting
Not Applicable
and (if permitted by national law) after vesting
through claw back arrangements.
f) Description of the different forms of variable remuneration that the bank utilises and the rationale for using
these different forms.
i) An overview of the forms of variable The Bank pays variable remuneration on cash basis (i.e. direct
remuneration offered (i.e. cash, shares and credit to the employee Bank account and/or Payment Order/
share-linked instruments and other forms. A Cheque), as the case may be, as per rule/practice.
description of the elements corresponding to
other forms of variable remuneration (if any)
should be provided.
ii) A discussion of the use of the different forms The following variable remuneration has been offered by
of variable remuneration and, if the mix of DBBL to its employees:
different forms of variable remuneration differs Annual Increment
across employees or groups of employees), a Bank provides annual increments based on performance
description the factors that determine the mix to the employees with the view of medium to long term
and their relative importance. strategy and adherence to Dutch-Bangla Bank values.
Remuneration (Continued)
Quantitative Disclosures
g) Number of meetings held by the main There were 11 (Eleven) meetings of the Management Committee
body overseeing remuneration during (MANCOM) held during the year 2016. All the members of MANCOM
the financial year and remuneration are from the core banking area/operation of the Bank. No additional
paid to its member. remuneration was paid to the members of the Management Committee
for attending the meeting except their regular remuneration.

h) i) Number of employees having The following Number of Employees were received a variable
received a variable remuneration remuneration during the year 2016:
award during the financial year.
Particulars Number

Number of employees having received a variable remuneration

4,711
award during the year 2016

ii) Number and total amount of The following number and total amount of Guaranteed bonuses awarded
guaranteed bonuses awarded during the year 2016:
during the financial year.
Total amount
Number of
of guaranteed
Particulars employees
bonuses (In
(In Unit)
Million Taka)
Guaranteed bonuses awarded during the
6,127 230.2
year 2016

iii) Number and total amount of There was no sign-on awards made in 2016.
sign-on awards made during the
financial year.

iv) Number and total amount of There was no severance payment made during the year 2016.
severance payments made during
the financial year.
i) i) Total amount of outstanding
deferred remuneration, split into
-
cash, shares and share-linked
instruments and other forms.
ii) Total amount of deferred Total amount of deferred remuneration paid in cash during the year 2016
remuneration paid out in the was Taka 163.4 million
financial year.
j) Breakdown of amount of i) Fixed and variable remuneration paid in 2016 are as follows:
remuneration awards for the financial
In Million Taka
year to show:
Particulars Amount
Fixed pay 3,059.02
Variable pay 116.52
Total fixed and variable pay 3,175.54

ANNUAL REPORT 2016 137

Remuneration (Continued)
ii) Deferred and non-deferred (paid during the year).

In Million Taka
Particulars Amount

Deferred 163.4

Non-deferred -

iii) Different forms used (cash, shares and share linked instruments,
other forms).

l Remuneration is paid on cash basis (i.e. direct credit to the

employee Bank account and/or Payment Order/Cheque), as the
case may be, as per rule/practice.
k) Quantitative information about employees exposure to implicit (e.g. fluctuations in the value of shares or
performance units) and explicit adjustments (e.g. claw backs or similar reversals or downward revaluations of
awards) of deferred remuneration and retained remuneration:

i) Total amount of outstanding

deferred remuneration and
retained remuneration exposed
Not Applicable
to ex post explicit and/or implicit
adjustments.

ii) Total amount of reductions during

the financial year due to ex post
Not Applicable
explicit adjustments.

iii) Total amount of reductions during

the financial year due to ex post Not Applicable
implicit adjustments.
 banking
automation
BANKING AUTOMATION AT
DUTCH-BANGLA BANK
Dutch-Bangla Bank is now a Bank of 15 million happy network comprising of more than 4,300 ATMs at the end
customers. It has reached this milestone recently with of 2016. DBBL has introduced Fast Tracks for the first time
relentless support of people from across the whole in the country to ensure better and wider range of services
country. This proves that DBBL wins the heart of mass to its valued customers. DBBL has also launched the
people and become their Bank. This has been possible first ever e-payment gateway of the country which has
started bringing a change in the online purchase and other
due to a strong & robust IT infrastructure working as the
services gradually. All these have been possible with the
backbone of all services. No wonder, DBBL has invested
help of a well-trained, highly professional work force and
more than 1,000 crore taka in building this infrastructure
a strong IT infrastructure. To run all the services smoothly
which is the highest amongst the Banking industry. DBBL has invested a substantial amount in developing its
DBBL is running in its 21st year of operation with a IT backbone.
countrywide branch network of 165 branches with more
New initiatives in 2016
than 15 million customers who are using Banks various
services like core banking, mobile banking (Rocket), agent l Online Sanction Screening to combat Anti-
banking etc. Since the start of its operation, Dutch-Bangla Money Laundering (AML) & Combating Terrorist
Bank Limited has been continuously striving towards Financing (CTF)
bringing world-class technology driven banking services,
Dutch-Bangla Bank Limited has always been a
conveniences and satisfaction to its customers setting a
compliant Bank. To comply with the AML & CTF
milestone in the banking sector of the country. In many
laws, the Bank has adopted an online sanction
areas of banking service DBBL has been the leader &
shown path to others. It has setup country's largest ATM screening application Accuity Compliance Link.

View of compliance link

ANNUAL REPORT 2016 141

 With this, the new customers & existing customers it accordingly by using token dispenser, Queue Pro
of the Bank are screened against the sanction Software and display units. The management of
lists time to time updated by various national & DBBL can monitor the queue of the branches from
international organizations UN (United Nations), central point of DBBL.
UN SC (United nations Security Council), OFAC Using statistical analysis the QMS has made it
(Organization of Foreign Assets Control, USA), Bank easier for customers to direct themselves to the
of England, Her Majestys list etc. The application available counters. It has optimized productivity
also screens against PEPs (Politically Exposed of branch officials by being able to identify the
Persons) data. Thus the Bank has become more customer's needs as soon as they walk into the
compliant and transactions are safer in this Bank. branch using the Queue Management System.
The QMS has a centralized MIS system that can
l Queue Management System in branches
provide important statistical details about the
The Bank has implemented Queue Management waiting time of customers, processing time for
System (QMS) in all its branches to diverse queuing transactions/services, number of customers in a
problems faced in branches. The QMS is capable of period, processing time taken by particular counter
categorizing the services/ customers and manage and other efficiency reports.

Dashboard of Queue management system

Waiting view of valued customers at a Branch

ANNUAL REPORT 2016 143

Core Banking Software banking for the convenience of the customer. At
this moment more than 4.2 million customers are
DBBL is the first Bank in the country to introduce truly
configured to receive transaction alerts whenever
online Banking services with all delivery channels. The
truly online core banking software, Flexcube has been any debit or credit transaction is made to his
running since 2004. Meantime, the number of customers, account. DBBL customers are also receiving month-
accounts, ATMs, Point of Sales (POS) terminals, cards end account balance through SMS at the end of
etc has increased enormously. To ensure better customer each month.
service the Bank has upgraded its core banking software
from its earlier version to Flexcube Universal Banking l E-Commerce Payment Gateway (Nexus Payment
Solution (UBS) in 2012. After that the Bank has gone Gateway) : DBBL is the first bank in Bangladesh to
through some major customization based on business have the e-payment gateway. This gives a person
needs. With these upgradations, it has been possible the liberty to purchase online, pay utility bills etc.
to provide round the clock customer service. It has the
Most importantly, the person doesnt necessarily
following key features:
has to be an account holder/ card holder of DBBL.
l Any Branch Banking: All the 165 branches are
connected online with the centralized server located DBBL has been a trend setter in the country in the field
at the data center. After introducing the real-time of technology based banking. It is one of the pioneers
online core banking software, all the new branches in Bangladesh to introduce so many innovations for its
are opened with the online connectivity from day 1. valued clients. All of its 165 branches across the country
are connected on-line making it very easy and convenient
l Online ATM / POS service: Like the branches, all
ATMs (Automated Teller Machine) & POSs (Point to the valued customers. They no longer require going
of Sales) are connected to the central server at to their home branches for banking, rather bank has
the data center allowing the valued clients of the introduced many delivery channels at the proximity of its
bank as well card holders of other banks to meet customers.
their financial needs. DBBL started its ATM/ POS
service back in 2004 and became the leader soon. Switching Software
All transactions are free of cost in ATM and POS
terminals for DBBL customers. A remarkable percentage of transactions of DBBL are
performed using the most popular delivery channel ATM.
l Internet banking service: This allows a customer
As such, it is equally important to have strong switching
to access his/ her account from home or office by
software to handle different types of transactions as well
virtue of internet connectivity. The customer is
able to open and close Term Deposit, perform fund as high volume of transactions. Considering this, the bank
transfer, pay utility bills etc. The Bank has been one has upgraded its switching software in 2012. The upgraded
of the pioneers in introducing Internet Banking in software has ensured better and quick response to the
the country back in 2004. requested transactions; also it is capable of handling EMV

Recently, the Bank has taken steps to allow transactions.

interbank Funds Transfers using Internet Banking.
All the ATMs and POS terminals are EMV-compliant.
This allows the customers to initiate Interbank
The EMV security policy has been introduced by Europay,
BEFTN or RTGS transactions without going even to
MasterCard and VISA jointly to protect capturing card
his branch.
data and duplication of a card. We are again the first
l SMS and Alert banking service: Considering the Bank in Bangladesh to ensure such security to our valued
availability of mobile phones in almost everybodys customers. DBBL has also introduced EMV compliant chip
hand, the bank has introduced SMS and Alert
based Mastercard cards and VISA Cards for the first time
in Bangladesh which is the most secure card in the world. custom-made van, is available anywhere anytime and
The ATM / POS network of the DBBL accepts the following allow customers to deposit cash / cheque, withdraw cash,
cards: inquire account balance, print mini statement, pay utility
bills and to access all other services offered by a standard
l EMV compliant chip cards of all the banks in the
world; ATM.

l Non-EMV Visa & MasterCard cards of all the banks Technology Refresh (Data Center and DR
in the world; Site expansion)
l Unionpay & Dinners club With the introduction of Mobile Banking System and
Agent Banking System along with our Core Banking
l DBBLs proprietary cards (Nexus).
System, DBBL has a customer base of around 15 million.
DBBL has put its level of innovation and standard of Customers and transactions are also increasing rapidly in
customer support to a new height by setting another all the 03 major systems. So to keep these huge customers
milestone in the history of banking sector by adding two
and transactions Bank has already upgraded its existing
units of Mobile ATM booths to its existing ATM network.
Data Center and Disaster Recovery (DR) Site with new
DBBL has become the first bank in the country to provide
Enterprise level Server, Storage and network equipment as
such unique service and convenience to the customers.
a part of the Technology refresh project.
The DBBL Mobile ATM Booth, which is outfitted in a

Partial view of extended data center

ANNUAL REPORT 2016 145

Ongoing Projects we have taken initiative to introduce contactless
and token based payment 1st time in Bangladesh
Several important projects are ongoing under IT
by using NFC enabled smart phone and POS.
Development Division. A brief list of the major ongoing
Customers can download their debit and credit card
projects is given as under:
information to Smartphone and using token, they
a) Document Management System can perform transactions without exposing actual
b) Establishment of near Data Center card information in-store, in-app and online. We are
hopeful to bring this system to go live within the
c) HCE Solution for in-store, in-app and online
payment year 2017.
d) Nexus pay for contactless payment options Tokenization
l Document Management System With its state-of-art card technology DBBL is going
Bank has already taken initiative to implement to introduce Tokenization facility to its cardholders,
paperless banking for the first time in financial a new security feature that replaces sensitive
sector in Bangladesh. In that perspective we have account information, such as the 16-digit account
already purchased world renowned document number, with a unique digital identifier called a
management system to automate all its paper token. The token allows payments to be processed
based business processes as well as administrative without exposing actual account details that could
processes to further improve the customer service. potentially be compromised. It is a safe way to shop
We have already started the development to online and with mobile devices.
automate the process. Here, a consumer enrolls his/her card with a digital
payment service provider (such as an online retailer
l Near Data Center Set-up
or mobile wallet) by providing card number, security
A massive project for building a state of the art code, and other account information. Instead of
new Near Data Center (Near DC) has been taken to sending these sensitive payment data the service
implement. The Near DC will be connected to the DC provider sends a token for transaction processing.
in a sync mode with zero RPO. Both the DC and the A payment token can be limited to a specific
Near DC will run alternatively on monthly basis. This mobile device, e-commerce merchant, or number of
will improve the system down time occurs in the purchase transactions before expiring.
DC due to unavoidable circumstances like failure in
cooling system, power system (ATS, Generator, UPS, l DBBL Nexus-Pay
MDB) or at any DC non-redundant component. Civil Dutch-Bangla Bank is going to launch an innovative
works of the proposed building is almost completed payment system namely Nexus-Pay which will
and this dream project is expected to go live in 2017. enhance banks payment system by introducing
We are planning to have a tier 4 data center. contactless payment technology 1st time in
Bangladesh. Nexus-pay is using latest technology
l HCE Solution for in-store, in-app and online
like HCE (host card emulation), tokenization,
payment
NFC (near field communication), QR code, Mobile
Host Card Emulation (HCE) technology is the latest apps and POS application. This solution is getting
introduction in the payment industry. The solution popularity in the developed countries due to its
is getting popularity in the developed countries advanced security and faster transaction features.
due to its advanced security and fast transaction The Nexus-Pay will facilitate the following services
features. As a technologically advanced bank, through Debit and Credit Card System, Core Banking
 System, Mobile Banking System (Rocket account) machine. Payment by POS terminal is now common
and Agent Banking System using mobile apps: scenery. Internet Banking and e-Commerce are getting
i) Purchase more and more popular. Instead of paper based complaints
and queries, people are now used to contact at Call Center.
ii) Utility Bill
iii) Top-up Automated teller machine (ATM):

iv) Fund Transfer The ever expanding DBBL ATM network is a mystery to
v) Balance enquiry other players of the country. The convoy of ATMs is covered
with world renowned brands of NCR and Wincor Nixdorf.
vi) Transaction History As of 31st December 2016, Bank has installed 4,331 ATMs.
In keeping pace with the demand, the network is getting
Dutch-Bangla Bank customer can use any of Dutch-
bigger and bigger.
Bangla banks account or card to perform above
transactions from a single platform which will
assure their contemporary taste and needs. DIVISION WISE ATM BOOTH COVERAGE
Creation of IT Security Division
732
Dutch-Bangla Bank is growing very fast and different
threats are also growing with this which includes but not
limited to IT related threats. For protecting the Banks IT
resources and information assets, based on industrys 65 41 30
10
best practices and the Banks policies and guidance, a 59 18
separate division is very much needed comparing to the
traditional approach of having few persons in the IT team
115
to look after the security. This need was realized by the
management and for that the bank created new division
394
named IT Security Division. This new division will work
closely with network team, server & storage team, security
professionals and application developers to collaborate on
secure solutions for the bank.

Mobile Banking
Mass people of the country do not get the banking service.
Considering this huge unbanked population, DBBL has Dhaka Rajshahi Barisal
launched mobile banking in the country, again to be the
Ctg Khulna Mymensingh
first Bank to do so. With this facility any person having
a mobile number will be able to treat that like a Bank Sylhet Rangpur Total
account.

Alternative Delivery Channel

ATM Uptime Statistics
Significant shift from Cash based society towards Sl No. Year ATM Uptime (%)
paperless society has lifted the life style of general people
to the advanced, safe and much smoother level. Now a 01 2015 95.80
major portion of the society cannot think without ATM,
02 2016 96.74
people are now used to deposit cash at cash deposit

ANNUAL REPORT 2016 147

Transactional Data at DBBL ATM

Year 2015 2016

Volume of Txn Volume of Txn

Sl No. Particular No. of Txn No. of Txn
(In Million Tk.) (In Million Tk.)

01 DBBL network 45,708,787 307,544.61 52,121,877 353,471.73

02 Qcash 46,293 324.78 0 0.00

03 MasterCard 161,727 1,697.78 169,134 1,716.00

04 Bangladesh Bank employee 165,863 966.28 201,655 1,333.17

05 Dhaka Bank 45,426 336.50 0 0.00

06 VISA 809,217 6,414.06 833,294 6,913.70

07 Union Pay 3,372 40.93 4,378 55.68

08 NCCBL 39,397 305.83 0 0.00

09 DBBL Rocket account 9,616,076 40,524.57 14,508,854 63,785.93

10 National Payment Switch 2,143,643 14,814.37 2,397,105 18,063.23

11 DBBL Agent Banking 17,907 125.27 500,318 4,301.76

Total 58,757,708 373,094.96 70,736,615 449,641.19

An ATM Booth at Bangladesh Bank premises

ATMs at Important Locations

DBBL ATM has presence at many important premises of the country. Some of the important locations are mentioned below:

SL No. Key Points Name of the Location

01 Airports Hazrat Shah Jalal Intl Airport, Dhaka Domestic Airport, Hazrat Shah Amanat Intl
Airport Chittagong, Adjacent to Jessore Airport. Other airports are under processing.
02 EPZs Dhaka EPZ, Savar; Dhaka EPZ-Extension, Savar; Adamjee EPZ, Narayanganj, Comilla
EPZ, Comilla, Uttara EPZ, Saidpur & Pabna EPZ
03 Railway Stations Kamalapur Railway Station, Dhaka; Chittagong Railway Stations; Sylhet Railway
Station; Rajshahi Railway Station & Khulna Railway Station
04 Universities Dhaka University; Chittagong University; Rajshahi University; Khulna University; Comilla
University; Haji Danesh Science & Technology University, Dinajpur; Jessore Science
& Technology University, Jessore; Mawlana Vashani Science & Technology University,
Tangail; DUET, Gazipur; Bangladesh Agriculture University, Mymensingh; Shre-e-Bangla
Agriculture University, Dhaka; Banga Bandhu Agriculture University, Gazipur
05 Bangladesh Bank Head Office, Dhaka, BBTA; Branches: Chittagong, Sylhet, Khulna and Bogra

06 Five Start Hotels Radisson Blue Water Garden, Dhaka, Radisson Bay View, Chittagong, Hotel Sea Palace,
Coxs Bazar;
07 Hospitals Apollo Hospitals, United Hospital, Square Hospital, Lions Eye Hospital, Ahsania
Mission Cancer Hospital Dhaka, Sylhet Osmani Medical College, PG Hospital, Mirpur
eye Hospital, Delta Hospital Mirpur, Prime Hospital Naogaon, Faridpur Medical College
Hospital, Chittagong Maa o Shishu Hospital, Sheikh Fazilatunnessa Mujib Memorial KPJ
Specialized Hospital and Nursing College Kashimpur
08 Shopping Center Bashundhara Shopping Mall, Dhaka; Jamuna Future Park, Dhaka; Dhaka New Market,
Shimanto Square, Dhaka and other various shopping malls across the country.

ANNUAL REPORT 2016 149

 SL No. Key Points Name of the Location
09 Bangladesh Air Force All major Air Force Bases

10 Bangladesh Army Savar Cantonment; MIST

11 Bangladesh Navy Shaheed Moazzam Naval Base, Kaptai.

12 Bangladesh Police Police Head Quarters, Rajarbag Police Line, People Order Management (POM), Mirpur;
Tangail Police Line, Moulvi Bazar Police Line; Narsingdi Police Line; Rajshahi Police Line,
Bangladesh Police Academy Rajshahi, Madaripur Police Line, Naogaon Police Line,
Armed Police Battalion Uttara, Narayanganj Police Line, Rajbari Police Line, Manikganj
Police Line
13 Govt. Office Secretariat, Dhaka

Fast Track (FT) 708

Fast Track is a service concept developed and implemented

by DBBL where a customer can deposit & withdraw money 516

using deposit kiosk & ATM respectively. The target is to

365
deploy Fast Track in each and every Upazila of the country.
235 261
By the end of 2016, a total of 708 Fast Tracks are live which
covers 276 Upazilas and 59 districts of the country. 153
51
2010 2011 2012 2013 2014 2015 2016
DIVISION WISE FAST TRACK COVERAGE Yearwise Fast Track Growth

708 Fast Track banking hour

Two trained officers are posted at each FT who works from
9:00 am to 9:00 pm on each working day, and 9:00 am to
6:00 pm on Fridays and Saturdays. However, all FT remain
56 43 24 open for cash withdrawal and utility payment facility
34 through ATM from 6:00 am to 12:30 am daily.
68

47

312
124

Dhaka Rajshahi Barisal

Ctg Khulna Mymensingh

Sylhet Rangpur Total

 Outside view of a Fast Track

Number of deposit machine deployed

CDM & Cash Deposit Statistics at Fast Track
To extend the quality service to the valued customers and No. of Envelope
No. of CDM
to reduce customer pressure at branch level, the Bank Deposited

has introduced service centers namely: Fast Track (FT) on 2015 2016 2015 2016
20th January, 2010. The main objective is to set up a Fast
427 658 2,340,000 3,120,000
Track to provide cash deposit facility to DBBLs customer
through Cash Deposit Machine (CDM). DBBL established Multiple ATMs increases satisfied customer
FT at locality to provide door to door electronics services
Each FT is comprised of multiple ATMs based on size of
to its customer and also offer cash/cheque/documents
the premises, importance of the location, potential size
collection service at Fast Track. Initially, only general of business, demand for banking services and estimated
Banking customer of DBBL could deposit cash or cheque footprints in the FT for electronic banking services. The
at Fast Track through CDM but now ROCKET and Agent strategy ensures more satisfied customers as in case of
any downtime at least one ATM remains operational.
banking customers also can enjoy the same facility at FT.
At the time of cash/cheque deposit, customer deposits
Demography of DBBL ATM in Bangladesh
cash inside the provided envelop with the assistance
of FT Officer. Before dropping the envelop at CDM, FT Division District Upazilla

officer keeps the record of deposit at register and provide Areas Covered 8 59 276
CDM generated receipt paper to customer for his future
Total 8 64 488
reference.

ANNUAL REPORT 2016 151

 Inside view of a Fast Track
Mobile ATM Van

Since 2010 DBBL is providing ATM service through two units of Mobile ATM Van that run across the country to disburse
cash to people where there is no ATM. Specially during the pay days of garments workers these two van remains very
busy in providing service to millions of workers at Gazipur and Savar area. Also the Vans roam around sometimes in the
city at important junctions. In addition to that mobile ATM vans participate at important fairs across the country and
also as and when any corporate institution requests immediately they move. To enhance the customer satisfaction, each
van is now accommodated with two units of ATMs instead of one earlier. Also as the response on cash deposit at these
vans is insignificant, the CDM is replaced by the second unit of ATM.
Withdrawal of money from Western Union through ATM or any other device, only mobile phone having the Rocket
account is the requirement for the service.
This is a unique service of Dutch-Bangla Bank. PIN based
foreign remittance beneficiary of Western Union can ATM Monitoring system
withdraw his/her remittance through all ATM of DBBL.
Dutch-Bangla Bank Limited possesses the largest ATM
Customer has to give some information of WU remittance
network of the country. Efficiency has become more crucial
including PIN at specific menu of ATM. After verification
than ever to the ATM management stream. One of the
of the given remittance information by both DBBL and WU
options for a better and efficient service to the customers
system, the amount credited to the beneficiarys account.
is more streamlined ATM management. The key is quick
Thereafter he can use this amount as per his requirement. access to information and diagnostic feedback about the
This is an easy process of transactions. state of an ATM.

Cardless ATM transaction for Rocket customers Considering these, the bank management has introduced
a project to implement an efficient, user friendly and of
The introduction of cardless ATM transaction has further course cost effective solution to monitor the huge ATM
popularized mobile banking venture in the country. network. Not surprising that the bank has selected the
Customer can withdraw cash visiting any of the DBBL ATM monitoring solution from the worlds leading provider
ATMs without using any Card through menu driven of advanced solutions for managing the business and
systems of an ATM. The service is very popular and operations of ATM and Point-of-Sale (POS) payment-
convenient as customer does not need to carry any plastic processing infrastructures.

ATM Monitoring Dash Board

ANNUAL REPORT 2016 153

 Online Management Report on ATM uptime

POS (Point of Sales) A statistics of SMS and Alert Banking is furnished as of

31st December 2016 as under:
POS business team acquires new retail outlets and installs
Point of Sales (POS) machines in the outlets. DBBL Description No. of Users
Nexus, VISA, MasterCard, Union Pay, Discover, Diners Club
SMS Banking 1,392,874
card users can make transaction through EMV readable
POS machines. DBBL has the largest POS network in Alert Banking 4,879,853
Bangladesh. For last couple of years number of POS and
POS transaction is growing consistently. Alert Banking

This is a bank initiated service. This service is very

convenient, useful & easy way to know the activity of a
SMS and Alert banking System bank account. When an account is debited or credited
more than a certain amount, an automatic alert is sent
SMS Banking is a common and popular terms in the
to the account holders mobile phone informing about
present context of Bangladesh. SMS Banking serves to
the transactions time & amount. Similar alerts are sent
enquire about account balance, see on the screen last few
for transaction in credit card account & agent banking
transactions, transfer funds, pay utility bills and many account too. Moreover a message is sent to account
more. On the other hand, Alert Banking is now a part and holders mobile at the end of each month. The client is
parcel of every individual with mobile phone and a bank automatically registered for this service free of cost at the
account in any form. time of account opening.
SMS Banking Call Center 16216
This is another mobile phone based service. However,
it is a customer initiated service where a customer can
perform few activities simply by just sending an SMS to
3225 (DBBL) using some keywords. As for example, if a
customer wants to know the real-time current balance
of his account and if the PIN of the customer is 2016, he
will type BAL 2016 in the message option of his mobile
& send to 3225. In reply his accounts balance will be
sent to his mobile immediately. The services available
through SMS Banking are (a) Account Balance enquiry
(b) Statement enquiry (c) Payment of utility bills (d) PIN
Change (e) Fund Transfer

Sitting view of call center

ANNUAL REPORT 2016 155

Call Center has been providing quality services to our valuable customers since 2011. Our Call Center short code 16216 has
been a well acquaintance number for Banks customers. It has become a popular service among our valuable customers
to meet their day to day banking needs. As a reflection of its increasing acceptability, Call Center has received around 2
million calls in the year 2016. It has a 66.93% call growth in 2016 over the previous year. Various call data of Call Center for
the year 2016 is given as under:

Call Type: Year to year comparison of call type is shown in the below pie-charts

CALL TYPE - 2016 CALL TYPE - 2015

1.05% 0.13%

15.36% 17.98%

52.10%

16.64% 65.25%

31.49%

Query Complaint Query Complaint

Request Others Request Feedback

Plastic Money
Plastic cards or plastic money is gaining popularity In Bangladesh, DBBL is the first bank to issue EMV Debit
day by day. It is a means of making payments without & Credit cards and acquire EMV cards in the POS terminals
cash against services or purchases. Considering the and ATMs. EMV is the most advanced technology for
inconvenience of carrying cash, safety etc., plastic cards secure payment which was developed jointly by Europay,
are being used in more and more sectors.
MasterCard & Visa and was later adopted by other
DBBL is the leading financial institution in providing payments card brands. EMV protects cardholders by
card services in Bangladesh. DBBL has already expanded preventing copying of card data and ensures a liability shift
its portfolio in all arena of card business. DBBL has benefit which protects cardholders in non-EMV terminals.
adopted new technology as the basis for development of
As mentioned earlier, we are not only the first bank but
card products. The first Nexus debit card was issued on
also one of a few banks in the sub-continent to implement
August 14, 2004. Now Nexus is the most popular card in
EMV for the issuing of both MasterCard/Visa debit and
Bangladesh. With our expansion we have also adopted
more secure and reliable technology to protect customers' credit cards and for acquisition of all ATMs (NCR, Wincor
and the bank's interests and prevent unauthorized and & Diebold) and POS terminals. Meantime DBBL has also
fraudulent transactions. implemented EMV for its all Nexus proprietary cards.
Debit Cards facility to our loyal customers. Customers are no longer
required to wait for their debit cards after opening an
DBBL's card issuing portfolio is enriched with both debit
account with Dutch-Bangla Bank. Customers instantly get
and credit cards of various card brands. DBBL is the pioneer
their Instant EMV Chip based Debit Cards along with PIN
in issuing debit cards in Bangladesh. The first debit card
after opening an account in any DBBL branch. Previously
of the country, the Nexus debit card was issued on August
customers had to wait at least 07 (seven) days to get
14, 2004. Since then DBBL has been the market leader with their debit cards. Moreover, a customer can get instant
the largest debit card base. DBBL issues EMV compliant replacement of his/her lost or damaged debit cards from
multi-application enabled smart cards. The EMV debit card his/her nearest branch. This reduces customer hassle and
consisted of Dynamic Data Authentication (DDA) chip and brings additional satisfaction to them.
Multos operating system. It ensures additional software
level security for chips.

EMV based card issuing

DBBL has started issuing EMV Card for the first time in
Bangladesh. With this security feature (EMV), all the DBBL
cardholders are protected from any kind of frauds at home
and abroad.

While an EMV card may look similar to a normal card, the

technology on it and supporting it is revolutionary. It uses
an onboard computer chip instead of a magnetic stripe and
relies on DBBLs data centre for on the spot verification.
Agent Banking Debit Card
It features built-in encryption algorithms mandated by
Visa and MasterCard which are impossible to duplicate Agent banking service is targeted to the rural
or modify. It was designed and researched by Visa and customer who does not have access to formal banking
MasterCard to be the most advanced card and eliminates system even through Mobile Banking. A wide range
the security problems of normal cards.If the terminal
of customers throughout the country is served by
supports EMV, chip transaction takes place. If the terminal
providing Agent Banking services with the help of mobile
does not support EMV, transaction will be completed
telecommunication devices/e-POS/ computer system
using the magnetic stripe of the card. However, customer
will be protected for any dispute if the mag-stripe of the using biometric technology. DBBL introduced EMV chip
card gets compromised and any fraud transaction happen based debit cards for this segment of customers as well.
with the counterfeit card. This card can be issued for any
MasterCard, Visa, Nexus cards accepting POS terminal
or ATM, and can be used for e-commerce transactions as
well.

Instant EMV Chip based Debit Cards (Reward cards)

DBBL has introduced chip based Proprietary Nexus Debit

card first time in Bangladesh. The most popular card brand
of Bangladesh DBBL Nexus Debit card is now migrating
to Nexus Digital Reward card to cope up the digitization
era of Bangladesh. It also comes with the lucrative reward

ANNUAL REPORT 2016 157

Agent banking helps the customers to deposit and International Debit Cards
withdraw funds and other admissible services at banking DBBL issues international debit cards - either MasterCard
agents, i.e., retail outlets that turn Deposit to electronic or Visa. As per Bangladesh Bank's circular, an international
funds and vice versa. With the help of the agent banking card can be issued against customer foreign currency
account like Resident Foreign Currency Deposit (RFCD)
service customer can enjoy the convenience of banking
account, Foreign Currency (FC) account or Exporter
service like shopping, ATM withdrawal and e-commerce
Retention Quota (ERQ) account.
transactions at anytime from anywhere.
MasterCard Debit
DBBL - Bangladesh Bank Co-Branded EMV Card DBBL issues EMV chip enabled debit cards of MasterCard
known as "MasterCard Debit" cards. This card can be
The widely accepted proprietary brand NEXUS card has
issued for both local and international use. This card
been migrated to most secured form of its kind i.e. consists of both EMV chip and Magnetic stripe for wider
EMV chip. Along with this enhanced feature DBBL also acceptance.
introduced a co-branded card with Bangladesh Bank for its
staff. Now employees of Bangladesh Bank can use their
card with more comfort and security since skimming or
copying chip card is not possible. The advanced security
features tied up in the card to protect the interest of our
valued customer.

Visa Debit
DBBL issues chip based Visa branded debit cards called
VISA Debit. This card can be issued for both local and
international use. VISA Debit card is accepted in all VISA
chip based and magnetic stripe based POS/ATM terminals
and in internet for ecommerce transactions. Since this card
is EMV chip based card, the transactions of this card are
ATM card for Central Bank of Bangladesh: Dhaka & Chittagong office more secured.
Credit Cards possibility to avoid any declines due to network issues.
This provides greater customer satisfaction and capability
DBBL has been issuing Visa EMV credit cards since
of authorization host system. DBBL issues both silver and
November 2008 and MasterCard EMV credit cards since
gold cards with local and international acceptability.
April, 2010. Although DBBL's entrance in credit card
services was delayed, it made a difference in the market
by issuing the most secure EMV credit cards from the
first day. The EMV credit cards consist of Dynamic Data
Authentication (DDA) chip and Multos operating system. It
ensures additional software level security for chips.

Due to security, other card-issuing banks in Bangladesh

usually block customers International transactions and
require the customer to make prior phone calls to the
card-issuing bank to open international transactions in
their card. When a customer returns to Bangladesh, he/ VISA Platinum Card (the Premium brand)
she has to call the bank to block their cards' international
DBBL has launched VISA Platinum card for its privileged
transactions. Sometimes card-issuing banks replace
customer. Visa Platinum offers a high credit limit and
the customer's card when the customer visits high
acceptance at more than 29 million worldwide locations,
risk countries such as Malaysia, Thailand etc. But with
including one million ATMs in the Visa Global ATM
DBBL's EMV enabled chip cards there is no such hassle
Network. A world of privileges is available with Visa
as international transactions are always open and the
Platinum. From golf to dining to shopping and more,
customer is fully secured. In addition to providing security
Visa Platinum lets the valued cardholders enjoy a host
DBBL also charges the lowest Interest rate in the market
of attractive lifestyle privileges and experiences. These
on purchase transaction and has a maximum of 50
cards are targeted to high net worth individuals who are
days interest free (grace) period. There is also no cash
international in outlook with large disposable income and
withdrawal fee in the DBBL ATM network.
consistency of service. The card holders get airport lounge
VISA Credit Card facilities and priority pass in 600 airports, discount in
hotel, dining, restaurants in almost all the tourist cities
DBBL is the first bank to introduce EMV enabled Visa credit
worldwide as well.
cards in Bangladesh. All cards have DDA chip with Multos
application which protects them from any alternation of
card data and ensures secure transaction worldwide on any
Visa accepted POS terminals and ATMs. This card has both
chip and magnetic stripe so acceptability is not restricted
to any type of terminals. This card is capable of working in
off-line environments with off-line PIN. In that case the
card will validate customer PIN entered in POS terminals
and is also capable of approving low value transactions.
This feature reduces transaction processing time and

ANNUAL REPORT 2016 159

MasterCard Credit Card VIP Cards

DBBL issues EMV enabled MasterCard credit cards to A premium brand proprietary featured card especially
its customers. All cards have DDA chip with Multos meant for the VIP customers. This card will drive the high
application, which protect them from any alternation of net-worth customers to feel aristocrat. The customers
card data and ensures secure transactions worldwide on will have the facility to avail DBBL VIP Banking Lounge
any MasterCard accepted POS terminals and ATMs. This at branches. He/she will have enhanced ATM withdrawal
card has both chip and magnetic stripe so acceptability
limit, dedicated VIP customer services, dedicated
is not restricted to any type of terminals. DBBL issues
relationship manager, special gift on various occasions,
both standard and gold cards with local and international
invitation on special events, yearly customer night and
acceptability. Customers have the option to select as per
their requirements other reward & discount facilities and many more.

MasterCard Titanium Card (the Premium brand) Virtual Card

DBBL has launched MasterCard Titanium in Bangladesh Like the regular debit/credit card Virtual card is not a
for the first time. With this stylish Chip based credit card, plastic card - it is just a piece of paper inside a closed
customers can enjoy exclusive benefits, experiences and envelop which carries valid card number, expiry date and
lifestyle privileges; including access to entertainment, CVV/CVC (card verification value/Code). The nature of the
sport, electronics and much more. The MasterCard card is pre-paid i.e. the amount or the value is pre-loaded
Titanium Credit Card opens up a world of convenience,
as per the requirement of the purchaser. The virtual card
safety and simplicity. With access to over 30 million
is distributed from any DBBL branches. It has become
merchants across the globe, it offers an excitingly diverse
very popular amongst students and IT professions. DBBL
range of shopping, dining and travel experiences to enrich
the lifestyle including airport lounge facility and priority introduced Virtual Card for the first time in Bangladesh
in 2011.
pass.
Students pursuing higher education and/or scholarships
abroad can pay the fees & charges, and participate at
IELTS, TOEFL, GMAT, GRE exams online using this card.

The developers/freelancers of mobile apps and games

can also use Virtual Card for payments of registration/
license fees to reputed online or mobile application
marketplace like Google, iTunes, Firefox, Windows,
Blackberry etc., any associated license fees such as game
engine or other software license for mobile application
or game development, online training fees for programs
Acquiring Diners & Discover cards
such as vendor certification examination etc., any domain
registration/renewal, hosting/cloud solutions within the Diners Club International, listed company in NYSE is

scope of mobile/game application development. owned by Discover Financial Services, a renowned direct
banking and payment services company of U.S. who issues
Card Loyalty Program Discover and Diners Club cards. Travelers bearing these
cards can withdraw money from the DBBL ATM booths
A point-based loyalty program has been introduced for
from April 2013. Also, DBBL will issue these cards for local
DBBL Credit card and Debit card cardholders. Customers
clients in the future.
will gain loyalty points against their card spending
which can be redeemed later on upon reaching to a
certain threshold point or completion of a certain period.
Customers may prefer to redeem these loyalty points for
their annual fee waiver, cash back to their account or gift
voucher which is expendable at DBBL merchant outlets.

Installment Payment

DBBL cardholders can buy different products and services

from selected merchant outlets with monthly installments
at zero percent interest. The installment period varies
for different products from minimum three months to
maximum twenty four months installment. Under this
facility customers can buy furniture, electronics goods,
jewelery and pay hospital bills etc.

Acquiring Union Pay cards

Every year travelers and workers visit Bangladesh for

different purposes from Thailand, Malaysia, China, Korea,
Japan, and Singapore who often have a Union Pay card.
Now Union Pay cardholders can withdraw cash from DBBL
ATM or use DBBL POS for shopping. DBBL also plans to
issue Union Pay cards to prospective clients in future.

ANNUAL REPORT 2016 161

E-Commerce the shopping spree Second Factor Authentication for All E-Com Transaction

Dutch-Bangla Bank Limited (DBBL) has introduced To secure e-commerce transaction, DBBL has introduced
e-Commerce Payment Gateway System for the first time in second factor authentication (2FA) facilities for the first
Bangladesh in the name of NEXUS Gateway from 3rd June, time in Bangladesh. Now, an additional authentication
2010. It is a milestone in the banking history in the country of the cardholder named second factor authentication
and has created opportunity for cardholders of all local and is performed for each E-Com transaction. In this process,
foreign banks to pay online. customer is required to enter a secret code (which is
different for each transaction) in internet at the time
E-Commerce/internet Payment Gateway (Nexus
of making e-com transaction that ensures genuine
Gateway)
cardholders participation and protects fraud.
Nexus Gateway is a system deployed by the Dutch-
Bangla Bank to facilitate payment during e-commerce
transactions. Nexus gateway is embedded with the
e-commerce site of the merchants.

Currently there are more than 500 merchants registered

with DBBL Nexus Payment Gateway and this volume is
increasing day by day. Currently we accept MasterCard,
Visa, DBBL Nexus cards and Rocket in our payment
Now, DBBL cardholders perform 2FA authentication for
gateway. Nexus card customers can use their regular
all e-com transaction in DBBL Payment Gateway and ACS
PIN for e-commerce transactions. To secure e-commerce
based 3D secure authentication for all e-com sites. DBBL
transactions, we have implemented 3D secure facilities
offers 3 options to generate this one time password (OTP);
Visas Verified by Visa (VbV) and MasterCards Secure
using hardware token or software token provided to him
Code which protect the merchants from fraud transaction
by the bank, or receiving the OTP via SMS. At the time of
loss.
registration process cardholders choose the option which is
suitable to him.

e-Banking Business
e-Banking Business Division (e-BBD) of DBBL delivers
diversified banking products and services including Credit
Card, merchant acquiring, i.e. POS (Point of Sales), Rocket
(Mobile Banking) and e-Payment solution through NEXUS
gateway.

Credit Card

DBBL has been issuing Visa EMV credit cards since

November 2008 and MasterCard EMV credit cards since
April, 2010. Although DBBLs entrance in credit card
The services available through the e-merchants are (a) services was delayed, it made a difference in the market
Online purchases of goods and commodities (b) Utility bill by issuing the most secure EMV credit cards from the first
payments (c) Hotel Bookings (d) Purchase of bus/train/ day. In 2015 we have launched MasterCard Titanium and
cinema/airline tickets VISA Platinum Credit Card with exclusive features in it.
As of 2016 the total number of Credit Card stood at 69,218 located inside Bangladesh and pay back in easy and
from 2015 to 2016 the no. of cards growth rate was convenient 3,6,9,12,18,24 & 36 months equal installments
16.48%. at 0% interest.

Merchant Acquiring
59,421 69,218 POS (Point of Sales) Merchant
53,640
POS business team acquires new retail outlets (POS
Merchants) and installs Point of Sales (POS) machines in
43,625
the outlets. DBBL Nexus, VISA, MasterCard, Union Pay
card users can make transaction through EMV readable
31,982
16,592 POS machines. DBBL has the nationwide large POS
network to cater the demand of card users. Currently DBBL
8,031
has 6,609 numbers of POS across the country. For last
couple of years POS transaction is growing consistently.
2010 2011 2012 2013 2014 2015 2016
Year wise Number of Credit Card 17,227
15,396
Card Loyalty Program

A point-based loyalty program has been introduced

11,791
forDBBL Credit card and Debit card holders. Customers will
gain loyalty points against their card spending which can
be redeemed later on upon reaching to a certain threshold
point or completion of a certain period. Customers may 6,675
prefer to redeem these loyalty points for their annual fee 5,135
4,149
waiver, cash back to their account or gift voucher which is
2,786
expendable at DBBL merchant outlets.

Discount Partner 2010 2011 2012 2013 2014 2015 2016

Yearwise POS Transaction Volume (BDT in million )
To promote the POS usage and to make our card user
more loyal, we have introduced discount partnership e-Commerce Payment Gateway
with our POS merchants. Debit/Credit card users can
enjoy attractive discount from our wide array of discount DBBL has been the first Bank in the country to have an
partners ranging from Restaurant, Furniture, Life e-commerce payment gateway in the name of Nexus
style shops, Hotel & Resorts, Hospital, Fashion house, Gateway.
Electronics, Daily Deal Shop. Currently we have 150+ 1,274.40
discount partners across the country, where card holders
can enjoy up to 55% discount. 976.82
0% InstaPay 830.07

To promote the Credit Card usage and to cater the huge

demand for purchase through credit cards in installments,
DBBL has introduced 0% InstaPay facility for their credit
293.78
card holders. Through this facility, credit cardholders
can buy their required and favorite products, furniture, 9.44 57.31
0.57
electronics goods, jewelery and pay hospital bills from 2010 2011 2012 2013 2014 2015 2016
more than 80 (eighty) 0% InstaPay partner outlets Yearwise e-com Transaction Volume (BDT in million )

ANNUAL REPORT 2016 163

With the help of this, any person in home or abroad can do IT infrastructure as Green IT. Environment friendly
financial transactions using DBBLs proprietary cards and options like virtualization, power management and proper
MasterCard/Visa credit and debit cards. They can purchase recycling habits towards certifying our data centers as
online sitting in their office or home. It is becoming
Green are under our active consideration. DBBL has
popular day by day due to its convenience. As of 2016
total e-Merchant stood more than 500 and total volume taken some steps to be greener. DBBL has started sending
of transaction was BDT 1274.40 Million. From 2015 to 2016 month-end account balances to mobiles, replacing the
the rate of growth of transaction in e-Com was 30.46%. conventional paper-based account statements. The
Some of our e-merchants are: recruitment process of the Bank is electronic; meaning

In 2016 DBBL has signed up some prominent e-merchant that the applicants apply through the Banks web portal by
like Open University, Daffodil University, Centre for the filling up the applicants details, upload the photo, scanned
Rehabilitation of the Paralysed (CRP), DESCO Application, certificates etc.
Bangladesh Road Transport Authority (BRTA), Ispahani
School & College, North South University etc. Dutch-Bangla Bank is highly active and enthusiastic in
transforming the society into a high tech society. In doing
Rocket Merchant
so, the Green Banking Umbrella formulated by DBBL is
Merchant payment is one of the important Rocket persistently working with required hard work, creativity
products to boost financial inclusion. Using this product,
and zeal.
the customers can pay their bills against purchase of
goods and services in the shops. As of 2016 total volume DBBL Green Banking Umbrella is operating with the
of transaction was 475.53 million and at the same time in following segments:
2015 it was 89.60 million. From 2015 to 2016 the rate of
growth of transaction in Rocket merchants was 430.72%.

475.53
Electronic
Student Booth Fast Track

Internet
Payment POS
Gateway

DBBL GREEN BANKING

89.60 Call Center e-Com

42.92

SMS & Alert Internet

2014 2015 2016
Banking Banking
Year wise Rocket Transaction volume
(BDT in Million)

Green IT Each single delivery channel displayed in the pie chart

contributes significantly in the financial activities of
Dutch-Bangla Bank has always been careful about
environment. DBBL has taken initiatives to make its general people.
financial
inclusion
FINANCIAL INCLUSION THROUGH MOBILE BANKING &
AGENT BANKING
Financial Inclusion can be defined as access to the Mobile banking achieved a remarkable growth in the
range of financial services at a reasonable cost for the year 2016 in Agent expansion, Customer acquisition and
unbanked people and firms. Basic financial services transaction compare to previous years.
include savings, credits, pensions, payments, money
transfers and International remittances. Greater access
to financial services for both individuals and firms may
help to reduce income inequality and accelerate economic
growth. Financial exclusion is a barrier to economic
development. Financial Inclusion thus is a high priority
policy goal for developing and developed countries in order Pioneering
to ensure stable and equitable economic growth and it is
not possible leaving aside a large number of populations Financial Inclusion
out of the box. Digitizing payments with the help of
telecommunication network can play a vital role in the
DBBL started the
process of financial inclusion. foundation for mobile
banking in 2005. In 2011,
The developments in Mobile Phone density in Bangladesh Bangladesh Bank gave
can be used as Platform for shifting to digital payments DBBL the approval to
as first entry point into the formal financial system, which launch the country's first
can lead to significant increases in formal and informal mobile banking service.
savings. New technologies like Mobile Phone, Biometric
POS came up with huge opportunities for branchless
banking covering the whole country. In this way, Mobile
Financial Services (MFS) and Biometric based banking
Agent Banking have opened up a new window for
Bangladesh for Financial Inclusion.
Introducing ROCKET as Brand Logo of
DBBL, the leader of technology driven innovative banking Mobile Banking
in Bangladesh, is the pioneer to introduce cell phone
based Mobile Banking services and Biometric based Agent The Bank was searching for a suitable name of its
banking services in Bangladesh as a part of inclusive mobile banking service for branding purpose and also
Banking. conducts market research in this respect. The outcome
of the market research was that the customers as well
Mobile Banking as its Agents wanted a short but suitable name for
DBBL Mobile Banking Services. Keeping in this mind,
DBBL has started this journey in the first time of the
DBBL launched ROCKET as Brand logo of DBBL Mobile
country on 31st March 2011. Since then DBBL have been
providing Mobile Financial Services (MFS) to unbanked Banking on October, 2016 which creates a tremendous
people through various products & service in the country. hype amongst the Customers and well-wishers of DBBL.
Also different kind of initiatives and development has
It is expected that this will boost up the customer
been taken to ensure smoother and flawless service.
acquisition across the country which in turn will increase
Technological advancement is always a greater strength
the transactions in coming days.
for DBBL and mobile banking always provides best service
for customers on that developed technology platform. ROCKET is the symbol of Faster & Flexible banking
In the year 2016 DBBL has restructured its regional solution with advanced technology which assuring
organogram and also went for huge expansion in sales highest security of every transaction that gives a comfort
and distribution and revamped the distribution set up. to a Customer

ANNUAL REPORT 2016 167

 New Logo of Rocket

Sponsorship tieup with BCB of Bangladesh. DBBL own the title sponsorship of all

The Bank has decided to launch new brand and logo home series of Bangladesh and thus Rocket has become
with a big bang and it could not be better than this associated with the Afghanistan and England home
to tie up with Cricket the game of all class of people series. It was a huge success.

Unveiling of Rocket Logo at Bangladesh Cricket Board

Employee day out to promote new brand

To make new brand more visible and make more people

aware of the new brand within short time; FID Head
Office employees and regional employees made several
days out program through which they made one to one
interaction and drive acquisition and explain the features
and benefits of rocket product. They visit institution and
high footfall areas too.

Through the whole year DBBL has offered number of

Snapshot of Rocket Team before Day out program top-up campaign for the customers. Moreover, DBBL is
offering 2% bonus on foreign remittance credited directly
Product, Process & Price Review to the account to encourage the inward remittance
through ROCKET account as legal channel. This initiative
DBBL Mobile Banking has created the milestone in
will encourage our wage earners to send their money in
the history of Mobile Financial Service by commencing
legal channel.
number of remarkable Customer oriented products. DBBL
has introduced Cash-in free and ATM free products In addition, to increase the habit of savings and use the

considering the requirement of all sorts of Customers. account as wallet, DBBL is giving interest on the deposited

This initiative encourages the Customer for depositing amount for the DBBL ROCKET account holders. It helps to

money, top up, bill pay and purchase products or sends increase the habit of saving among all segments of people

money etc. through DBBL Mobile Banking. which help the formation of domestic capital.
Besides, being the only MFS in the Industry, DBBL has got
We have also developed a new Process namely, Pre-
the access to the NID verification system of the Election
registration which enables the Customer to register DBBL
Commission from 14 Nov 2015.
Mobile Banking account just dialing *322# avoiding the
To address the untapped and unprivileged market, a total
dependency to open the account from the Agent points.
number of 593 employees, 77 MB Offices and 1,48,478+
This facility became very popular especially among the
agent points are continuously working together to meet
young and female group of segment.
all part of customer requirements. Moreover, 165 DBBL
Considering the daily requirement of the general people Branches, 716 Fast Tracks, 10,000 Merchants and 4331
DBBL is giving the fund transfer (P2P) completely free plus ATMs and partners banks branches are also working
among the same product (ATM free/Cash in free) product. as mobile banking access channel for the customers.

ANNUAL REPORT 2016 169

Some exclusive Rocket products
ATM Free product & Cash-in Free Product

Considering the customers convenience DBBL has

introduced two new products such as Cash-in Free and
ATM Free Product. Cash-in free Product means cash-in
charge is free and ATM Free Product means cash-out
is Free from ATM. All existing account holders are either
under ATM free product or Cash-in Free product and
but he/she can migrate to cash-in free product to ATM
Free product & vice versa after a certain period of time
by himself/herself by dialing *322#. New customer can
choose any of the option while opening the account.

Interest Payment to Rocket account

DBBL is providing interest to its Rocket account holders.
Interest amount is accrued in every month against the
customers monthly minimum balance and credit to every
June and December end.
Process flow of transfer from/to any DBBL Card
Pre-Registration Number or Core Banking Account:
Pre-registration facility enables the Customer to register
DBBL Mobile Banking account just by dialing *322# Core Banking Account to *322# 4 1 1
avoiding the dependency to open the account from the Rocket Account Amount PIN
Agent points. When a new customer dial *322#, system
Rocket Account to your *322# 4 2 1
will ask him whether he is interested to register DBBL
linked Core Banking Account Amount PIN
Mobile banking or not. If yes, press 1 or 2 to cancel.
Rocket account to any Core *322# 4 3 CBS A/C
To get the full benefit of DBBL Mobile Banking, Pre- Banking Account No. Amount PIN
Registered customer needs to fill up KYC form and submit
Rocket account to any Debit *322# 4 4 Debit
it to any Agent or DBBL First Track or any Mobile Banking
Card Card No. Amount PIN
office with required documents. After authorization by
the bank Official pre-registered customer will be allowed
Salary Disbursement through Rocket
to do all types of transaction.
account
Linkage Facility and transfer from/to any DBBL Mobile Banking is the pioneer and popular payment
DBBL Card Number or Core Banking Account disbursement solution for the corporate bodies and
different government and private houses. Presently DBBL
A Rocket Account Holder can easily Link his Core banking is disbursing salaries / allowances to the employees/
account with his Rocket Account and enjoys the facility of beneficiaries of different government organization
transferring funds. This facility enables him transferring and garments/ factory, grants to the natural calamity
funds from his Core Banking Account to ROCKET Account affected people, insurance claims /payments etc. Rocket
and/or sending money to any DBBL Core Banking Account is holding almost 90% market share of Global statistics
of Disbursement in Mobile Financial Services. Digitization
or DBBL Nexus Card. After transferring money from core
of payment system is one of the priorities of the
banking account to Rocket account, Rocket Account government. Presently, we are disbursing salaries of the
holder can easily do Top-up, Bills Payment, P2P, Merchant staffs of AC Land office, UP Chairman, Member, Secretary
Payment and ATM Cash withdrawal without having any and Village Police of different districts through DBBL
Debit Card. Mobile Banking.
Stipend Disbursement of Education During this year, we have also disbursed stipend to the
Rocket account of 11,46,004 students under Secondary
Ministry
Education Stipend Project (SESP) of Ministry of Education
In the year 2016, DBBL Mobile Banking has disbursed at 13,941 schools under 218 Upazilla of 54 districts. Under
Stipend Project for the Student of Degree (SPSD), we
Stipend to the Rocket account of 502,684 students under
have disbursed stipend to the Rocket account of 208,886
Higher Secondary Stipend Project (HSSP) at 6714 colleges students at 2851 Colleges under 500 Upazillas & thanas of
of 496 upazillas & thanas under 64 districts. 64 Districts.

Briefing of teachers & students on stipend

Team of senior officials of education ministry at DBBL

ANNUAL REPORT 2016 171

Garments Salary Disbursement
Bangladesh earns highest foreign currency from garments
industry and a large number of employees are involved in
this sector. Ensuring their salary disbursement is a huge
task to the owners. As per recently published data from
Bangladesh Bank, DBBL Rocket is the Major Market Player
having 90% Global Share in MFS Provider in terms of
disbursement of Salary to different Garments Industries
and its associates at a very low cost.

Tuition Fee payment through Rocket account

Agreement signing ceremony with DBL Group for Salary disbursement

Payment Disbursement to Agro Sector

Agricultural sector is one of the major sectors of
Bangladesh which contributes lion portion of the
economy. Recently, we have made an arrangement with
International Food Policy research Institute (IFPRI), a
renowned NGO in Bangladesh to disburse Government
agri-subsidy directly to the Farmers through ROCKET Collection
Account to 16 Upazilla of 16 Districts. This process of
Collection product of DBBL through its Rocket account is
disbursement is faster and transparent without any
intervention of the any middleman. one of the unique service solution for the large business
houses which has business operation throughout the
Payment of Tuition Fees, Admission Fees
country. The product is popular to the companies like
and Bills
FMCG where large numbers of distribution houses work
This is the unique features of DBBL Rocket. About 400
throughout the country. DBBL is collecting money from
number of institutions are collecting their Tuition Fees/
their exclusive distributors across Bangladesh and credit
Admission fees through Bills Pay Option of DBBL mobile
banking. to companys account instantly.
 perform all types of transactions using Apps efficiently
and easily. We are getting tremendous response from
our valued Customers on use of Apps. This gives
an opportunity of freedom of Banking and efficient
managing of customers accounts, make payments to
payees, transfer money to any mobile number or any
DBBL Core Banking Account/Nexus Card. A DBBL Rocket
account customer having smart phone (android operating
system) can download DBBL Rocket account apps from
Google Play store or DBBL web site.

Agreement signing ceremony for collection services.

Collection and Disbursement of Insurance

Payment
Collection of Insurance Premium through mobile banking
is an innovative method that DBBL has delivered to the
insurance Industry. Payment by own through a mobile is
always convenient to the policy holders which saves their
time and reduces the cost and tension.

ROCKET mobile apps interface

Access to NID Database

DBBL is the first Bank who is verifying the information
of KYC with NID database for its Mobile banking and core
banking customers. We have got the access for the NID
Agreement Signing with Insurance Company verification provided by the Election Commission for the
1st time in the banking sector of Bangladesh. By this we
Foreign Remittance are one step ahead of anyone regarding the compliance
DBBL Rocket is also pioneer in disbursing Foreign issue.
Remittance through legal Channel to the remotest area
across the country. Rocket is having 90% market share of
remittance and through Mobile Financial Services. DBBL
is offering 2% bonus on Remittance disbursed through
Rocket & Biometric Account.

Introduce of Rocket account Applications

(Mobile Apps)
Mobile Banking Applications is an application of Rocket
account by which customers & agents of Rocket can

ANNUAL REPORT 2016 173

Brand Visibility As the market is very competitive and agent points are
limited; all operators are fighting to keep own brands POS
Brand visibility is the single, most powerful message that
materials. DBBL is ensuring its visibility in market place
a consumer can receive. And the message says that, this
product is good and you can trust this product. This brand and presently rocket has its fair share in market place in
visibility encourages and motivates the customer to look terms of visibility.
at the product along with the brand attributes.
DSR activity

Distributors Sales Representative (DSR) are the face of

ROCKET business, every day they represent the brand,
communications, products and service to the channel
partners as well as the end customers.

Visibility at different agent points

On duty DSR

Account opening campaign

DBBL runs different types of account opening campaign
directly or through its Super Agent having different types
of activities like Canopy, Door to Door, Institution based
campaign, mela etc. Due to this campaign, a positive
growth in overall transactions, activation of New Agents,
Activation of New Customer and the business growth is
achieved in the year 2016.
 Account opening Campaign (Canopy)

Account opening Campaign (Door to Door)

DBBL Initiated Super Agent & Agent Meet

DBBL arranges Super Agent Meet in Different region of the country. The Rocket team demonstrated the Business
portfolio, targets & success story way forward of Rocket and guidelines on AML in different Super Agent Meet.

Super Agent & Agent Meet

ANNUAL REPORT 2016 175

Employment Generation for Rural completing their graduation from different educational
Bangladesh institutions. DBBL operate its mobile banking business
by local community. As a result, a big employment
In Bangladesh, the unemployment rate is very high. opportunity has been created at different rural area in
Thousands of educated people are searching jobs after Bangladesh.

Award Pictures

Prize taken from Digital World-2016 at International Convension City Bashundhara

Rocket stall win the first prize at Digital Innovation Fair at brac inn
Agent Banking Globally these retailers are being increasingly utilized as
important distribution channels for financial inclusion.
Agent banking means providing limited scale banking Bangladesh Bank has also decided to promote this
and financial services to the underserved population complimentary channel to reach to the poor segment of
through engaged agents under a valid agency agreement, the society as well as existing bank customer with a range
rather than a teller/ cashier of a branch. The owner of a of financial services especially to geographically dispersed
point conducts banking transactions on behalf of a bank. locations.

Customers at Agent banking point

ANNUAL REPORT 2016 177

What is Biometric Account?
Biometric Account is an account opened by the customer registering his/her Finger-Print at DBBL nominated Agent
Banking point.

View of transactions at a DBBL Agent banking point through finger print verification.

Geographical coverage
DBBL started its Pilot operation of Agent banking on 19th January 2015 to serve the un-banked people with 100%
secured transaction using their Finger Print from any corner of the country. DBBL has already launched 1080 Sub-Agent
Point covering 470 Upazilla under 64 District at the end of Dec 2016. A Sub-agent is the place where customer can get
DBBL Agent Banking services. We are having 392 number. of Agent engaged in re-balancing service to 1080 Sub-Agents
for smooth operation of client service.

Number
District MBO
Sl No. Region Name of Sub
Coverage Office
Agent
01 BARISAL 10 10 120
02 CHITTAGONG 5 6 70
03 COMILLA 6 6 95
04 DHAKA NORTH 3 11 108
05 DHAKA SOUTH 3 7 87
06 KHULNA 10 10 105
07 MYMENSINGH 6 6 106
08 RAJSHAHI 9 9 147
09 RANGPUR 8 8 153
10 SYLHET 4 4 89
Total 64 77 1,080
Account Opening or Registration
Customer can open Biometric Account from any DBBL
authorized Agent Banking points. Existing banking
customer of DBBL can also register their finger from
any DBBL branches to get the Agent banking services.
Customer will get an Account Card mentioning Account
Number and other information immediate after opening
of Biometric Account. However, the Bank Official verifies
the information on the KYC form and authorizes the
account. Normally, it takes 1-3 working days for approval
by the bank officials.

View of receiving Fixed Deposit acknowledgment

Cash Deposit and Withdrawal from Agent

Point
Customer can deposit money immediately after opening
of Bio-metric savings account but the withdrawal is
allowed only after the approval of the Account.

Opening of DPS Account

Biometric Deposit Plus Scheme (DPS) is a special type
of Savings product designed for the small savers who
can save money on monthly basis. The amount to be
deposited every month is Tk.100/- per month or its
multiple and the tenure is 3,5,8 or 10 years. An attractive
interest rate is offered for this product. The monthly
installment is realized automatically from the Biometric
Savings Account of the Customer.

Opening of Fixed Deposit Account

Biometric Fixed Deposit (FDR) is a special type of Term
Deposit product designed for the savers who are willing to
deposit money for specific time period. The Customer can
open Biometric FDR for Tk.10,000/- and above amount
for 3, 6 & 12 months tenure. An Attractive interest rate
is offered for this product. Cash transaction for opening
the FDR will not be allowed. FDR will be opened by
debiting customers Biometric savings account and again
will be credited to that savings account at the time of
encashment.

ANNUAL REPORT 2016 179

Linkage between Core Banking & Agent Services at Different Channels of Dutch-
Banking Bangla Bank
The beauty of our Agent Banking system is that our Core Customer of DBBL agent banking gets different banking
Banking Customers can establish linkage by registering services from different channels. After opening an account
their Finger in any of DBBL Branches with his own Branch customer gets a Nexus biometric card and he can enjoy all
banking account and can enjoy cash withdrawal & deposit types of available facilities from DBBL ATM & Fast Tracks.
facility using his branch banking account from any Agent Different channels of DBBL are given below:
banking Point. The system will verify his finger print at
l All Sub Agent Points
the time of cash withdrawal.
l All DBBL Branches
l ALL DBBL ATMs and Fast Tracks
Disbursement
l Internet Payment Gateway
DBBL Agent Banking Disbursement product is a lucrative
product for the salaried person. Business enterprise or any
public/private institution can provide salary and wages of
their organization through DBBL agent banking. DBBL has
so far disbursed 28 Companys Salary/wages for 1,23,686
individual accounts.

Nexus card for biometric account.

Devices used at Agent Banking

The following IT devices are used at agent banking point:
a. e POS
Salary disbursement ac opening@ Ansar & VDP b. Computer Portal
c. m POS
Bills pay
DBBL Agent Banking Bills product is a popular product for
Transaction using e-POS
the rural people. DBBL already introduced 26 Companys e-POS is a device where customer can put their Finger
Bills pay collection among them NID correction, Farmers for verification to withdrawal of money at agent point.
Loan collection, College Admission Fees etc is remarkable. Customer can also pay the bill at DBBL authorized
Merchant point by using e-POS.

View of tuition fees payment by a guardian e-POS machine

Transaction using Computer portal and DBBL has covered 470 Upazilla and successfully ensured
Finger Print Scanner footprint in those areas. Local people & other renowned
citizens are invited to attend in inaugural program of Sub
Finger Print scanner is a device which is connected with
Agent Points and a large number of people are seen to be
DBBL authorized PC from where customer can verify
using their captured finger print and can do transaction. present in each program.
Here Finger print scanner is connected with authorized
computer.

PC with Finger print scanner Inauguration program of Agent banking opeartion

m-POS for Bio-Metric Transaction Sales & Marketing Activities

m-POS means mobile POS from where DBBL Agent To promote the DBBL Agent Banking products & services,
Banking Customer can do their transaction from DBBL a massive sales & marketing activity needs to run across
authorized m-POS only. Here Finger Print scanner is
the country through Uthan Boithok, KYC Mela, MSE
connected with OTG enables mobile handset
Account opening campaign, Entrepreneur A/C opening
campaign, Door-to Door campaign etc. to attract people
for opening of biometric accounts. We emphasize on
opening of unbanked people especially female account in
our channel. In this regard, several programs have been
run in 2016.

Uthan Baithak Program

An Uthan Baithak Program is an activity where DBBL
arrange a gathering of people especially women of a
village to inform them different services DBBL Agent
banking. On that program DBBL representatives try
to briefed about the Agent Banking product and
Sub-Agent Point inauguration Program demonstrate the benefit of savings habit which will help

All the Sub-Agent Points are selected considering the them to fulfill their demand when they required money at
needs & demographic condition of that area. Meantime, a time.

ANNUAL REPORT 2016 181

 Uthan Baithak Program

Door to Door campaign

Authorized person of DBBL at Agent Banking point visit their locality and asking for new account opening after
demonstrate the product features of agent banking.

Door to Door campaign

 Account opening in char area & Brick field

Account opening at different houses

MSE A/C of Woman entrepreneur

Women are engaged with different small business located at rural areas are very much interested to open MSE A/C to
run their business. DBBL is utilizing this demand of Banking services and providing smooth to them from DBBL Agent
Banking point.

Transactions of a women entrepreneur

ANNUAL REPORT 2016 183

Small Industry/Micro Businessman opens MSE A/C
Some Small Industry/Micro Businessman like grocery shop owner, Tailors, Mobile Handset seller, Retailers opens MSE
A/C from DBBL Agent Banking point to get the facility of deposit/withdrawal from 09:00am to 07:00 pm from DBBL
Agent point.

Account opening Campaign for MSE account holder

Training & Development Program

Training of agents & internal resources is an ongoing program and DBBL always run training & development programs
for DBBL own staff and also for partners and partners dedicated staff (teller) as and when required. DBBL provides on
the job training on different operations & AML (Anti-Money Laundering).
 Training is going on for partners Development

On the Job Training for DBBL own employee and partners Training for DBBL Field staff

Customer Service
DBBL always care about its customer service and thats why DBBL established 77 offices in 64 District to serve by DBBL
own people. Besides, DBBL Agent Banking customers also receive services from DBBL Agent point, DBBL Branches and
DBBL Fast Track.

ANNUAL REPORT 2016 185

 Customer service at agent point

Performance Comparison: 2015 and 2016

In Number
2015 2016
Particulars Growth
Number Number
Agent 89 392 340%
Sub-Agent 160 1,080 575%
Biometric A/C 32,431 320,389 888%
DPS 7,643 44,014 476%
FDR 603 3,223 434%

In Number & Amount

2015 2016 Growth Growth
Particulars
Number Amount number Amount (number) (amount)

Transaction 145,843 1,649,215,163 2,326,403 43,278,140,835 1,495% 2,524%

Remittance 1,599 61,518,492 28,315 1,381,862,956 1,671% 2,146%
Disbursement 1,693 14,784,189 123,686 593,901,915 7,206% 3,917%
Bills Pay 569 1,161,105 5,233 10,609,970 820% 814%
*Amount in BDT
Agent Banking pictures

Front view of Agent Banking outlet

Account opening campaign

ANNUAL REPORT 2016 187

awards
Dutch-Bangla Bank has been awarded the leading partner bank in Bangladesh by the Asian Development Bank (ADB). DBBL has
proved to be a strong and reliable partner under the Trade Finance Program (TFP) of the ADB. DBBL has been awarded this prestigious
recognition for the two consecutive years that the ADB has given awards in this category in each country under ADBs Trade Finance
program operations.

ANNUAL REPORT 2016 191

Dutch-Bangla Bank has been awarded as Best Bank in Bangladesh by Finance Asia in Country Awards Presentation held in Singapore
on September 08, 2016.

Dutch-Bangla Bank has been awarded the ICAB Best Corporate Award-2015 in Traditional Banking Category. Mr. Abul Maal Abdul
Muhith, MP, Honble Minister, Ministry of Finance, Govt. of Peoples Republic of Bangladesh as the Chief Guest on the occasion handed
over the trophy to Mr. Khan Tariqul Islam, Deputy Managing Director of Dutch-Bangla Bank. Prof. Dr. M. Khairul Hossain, Chairman,
Bangladesh Securities and Exchange Commission was present as Special Guest.
agreements
signed
Dutch-Bangla Bank and e-Generation signed an agreement for providing Anti-Virus Solution to DBBL. Mr. Sayem Ahmed, Chairman of
Dutch-Bangla Bank was present at the signing ceremony.

ANNUAL REPORT 2016 195

Dutch-Bangla Bank and Daffodil International University (DIU) signed an agreement for e-payment of student fees of DIU through
DBBL Nexus Gateway.

Dutch-Bangla Bank signed an agreement with Military Institute of Science & Technology (MIST) for establishing a Fast Track at the
MIST Campus, Mirpur Cantonment, Dhaka.
events
Mr. Sayem Ahmed, the honorable Chairman of DBBL is seen handing over the replica check, Rocket Man of the Match of
Bangladesh VS England ODI Series 2016 to the captain of Bangladesh Cricket Team, Mr. Mashrafee-Bin-Martuza while Mr. Nazmul
Hasan Papon, MP, President of Bangladesh Crocket Board was also present.
Dutch-Bangla Bank has become the Title Sponsor for 02 years of home series of Bangladesh Cricket team which was commenced
from September 25, 2016 between Bangladesh and Afghanistan. This was also followed by home series against England starting from
October 05. The title of the series was ROCKET- Dutch Bangla Bank Mobile Banking.

Dutch-Bangla Bank sponsored the 6th DBBL- Golf Tournament-2016, organized by Shaheen Golf and Country Club, Patenga,
Chittagong. The Closing and Prize Distribution ceremony of the tournament was held on March 19, 2016 at Shaheen Golf and Country
Club Patenga, Chittagong.
Chief of Air Staff, Bangladesh Air Force, Air Chief Marshal Abu Esrar, BBP, ndc, acsc graced the occasion as Chief Guest and distributed
the prizes amongst the Winners. Mr. K. S. Tabrez, Managing Director of Dutch-Bangla Bank was present on the occasion as Special
Guest. Among others, senior officers of Bangladesh Army, Bangladesh Navy and Bangladesh Air Force were present on the occasion.

ANNUAL REPORT 2016 199

Dutch-Bangla Bank sponsored the Bangladesh Police Volleyball Championship 2016, organized by Bangladesh Police Volleyball Club.
Inspector General of Police Mr. K. M. Shahidul Huq and Managing Director of Dutch-Bangla Bank were present as the Chief Guest &
Special Guest respectively at the Closing Ceremony and distributed the winning trophy to the winners held at Rajarbagh Police Line,
Dhaka.
Dutch-Bangla Bank launched International Virtual Credit Card for the students, IT profesionals and enterpreneurs to payment of
tuition fees, membership fees, any kind of registration/license fees etc. using DBBL Virtual Credit Card. Mr. Sayem Ahmed, Chairman
of Dutch-Bangla Bank is seen delivering speech at the press conference while launching of the Virtual Credit Card.

Dutch-Bangla Bank has opened a Fast Track (FT) at Military Institute of Science and Technology (MIST) campus, Mirpur Cantonment,
Dhaka. Brigadier General K M Salzar Hossain, ndc, psc, Commandant of MIST inaugurated the Fast Track on September 26, 2016 while
Mr. Sayem Ahmed, Chairman of the Bank was present at the inauguration program.

ANNUAL REPORT 2016 201

Dutch-Bangla Bank donated Tk. 1.0 million only to Salimullah Muslim Hall Alumni Association for organizing Reunion-2016 held on
November 26, 2016 at Dhaka University campus. Mr. K. M. Mozammel Haque Mukul, Secretary General of Salimullah Muslim Hall
Alumni Association is seen receiving the payment order from Mr. Abul Kashem Md. Shirin, Managing Director & CEO of DBBL at the
Head Office of the Bank.

As an appriciation and for overall contribution in the DITF-2016 DBBL was awarded by Export Promotion Bureau of Bangladesh, the
organiser of DITF. DBBL representative is seen receiving award.
Just like each year, Dutch-Bangla Bank has successfully participated in Dhaka International Trade Fair (DITF) -2016. In the DITF
pavillion, beside the service desk, there was ATM & Cash Deposit Machine for cash withdrawal and deposit. Both visitors and
partcipated marchants appreciated our presence at the fair. The picture shows a section of customers/visitors at DBBL pavillion at
DITF 2016 are receiving the banking services.

Dutch Bangla Bank formally launched the ABMT Service of Western Union for the first time in Bangladesh on 24 February, 2016. ABMT
which stands for Account Based Money Transfer, allows the beneficiaries to get the Western Union remittance from DBBL ATMs. Mr.
Faisal Alhijawi, Senior Business Development Manager, Western Union-Middle East & Africa and Mr. Naved Ashraf, Senior Country
Manager, Western Union-Bangladesh and Mr. Abul Kashem Md. Shirin, Deputy Managing Director of Dutch Bangla Bank were present
at the ceremony.

ANNUAL REPORT 2016 203

 retail banking,
school banking &
SME finance
BUSINESS OPERATIONS

Retail Banking Lending Products Festival Line :

Retail Banking in DBBL delivers diversified financial To enjoy festive period
products and services including various lending products
Gift for the family / in laws / relatives
i.e., Personal Loan, Auto loan, Home Loan and so on
tailored in a customized way to bring utmost comfort Dreams Come True line :
and enhance the lifestyle of the consumers of different To purchase TV, Fridge, Furniture, Home
segments. DBBL has launched Retail Lending Products on
September 26, 2007 under the product namely Life Line Theatre, Motor Cycle, AC etc.
- a complete series of Personal Credit Facilities. To decorate/renovate own Home/Car.
The purpose of the Life Line products can be defined as Care Line:
under: Loan for fulfillment of parents need/dream
To purchase economy car for the family
Personal Loan (Clean Credit Line)
(i.e. to purchase low cost second hand car)
Health Line
Hospitalisation or other emergency medical Secured Credit Line
needs Auto Line:
To purchase body fitness equipments To purchase a new / re-conditioned car
Education Line Refinancing of availed car
For Higher education purposes Home Line :
Tuition fees or other Educational expenses To buy new or old house/ flat
To purchase of computer etc. To construct / extend of house/ apartment

Professionals Line To renovate/ alteration of existing house/ flat

Purchase of Professional equipments. Taking over of the existing housing loan from
other Bank/ Financial Institution
For Office renovation/decoration
Refinance of an own availed flat/house
Marriage line :
Full Secured Lines:
To meet marriage expenses for himself/herself
Loans against Liquid Securities
Marriages in the family
For family needs or any other valid purposes
Travel Line:
Secured Overdraft (SOD) for Individuals:
For Honeymoon trip, abroad or in the country OD facility against Liquid Securities for
For Family trip, abroad or in the country miscellaneous purposes

ANNUAL REPORT 2016 207

Salient features of Life Line Products
Product Name Customer Segment Loan Amount (BDT) Loan Period
Personal Loan Any credit worthy individuals who 50,000 1,000,000 12 60 months
Auto Loan maintain salary account with DBBL 100,000 4,000,000 12 60 months
Professionals like Doctors, Architects,
Engineers, Chartered Accountant etc.
Home Loan Land Lord/ Land Lady 200,000 12,000,000 01- 25 Years
Business individuals

Portfolio Mix:
DBBL has BDT3,913.30 million of Retail Loan (other than credit card) at the end of December, 2016 comprising of 72.42%
Personal Loan, 21.98% Home loan, 2.14% Auto Loan and 3.46% Secured Loan/OD. Retail loan portfolio has increased by
BDT1,783.25 million from the year 2015 to 2016 at the growth rate of 83.72%. Retail loan Portfolio Mix in 2015 and 2016
are as follows:

PORTFOLIO MIX AS ON 31 DEC 2016 PORTFOLIO MIX AS ON 31 DEC 2015

72.42% 82.37%

2.14%

1.43%
3.46% 21.98%
13.10% 3.10%
Personal Loan Home Loan Personal Loan Home Loan
Auto Loan Full Secured Loan Auto Loan Full Secured Loan

Year-wise Retail loan disbursement & number of disbursement Account

3,016
7,719

4,289
3,996
Taka in Million

1,204 3,978 4,039

1,074 1,029
1,041

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
RETAIL LOAN DISBURSEMENT TREND NUMBER OF RETAIL LOAN DISBRUSEMENT ACCOUNT
 Year-wise Retail loan outstanding & number of Account
3,913 13,827

9,421 11,208
10,808
7,711
2,164 2,130
2,006
1,798
Taka in Million

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
RETAIL LOAN OUTSTANDING TREND NUMBER OF RETAIL LOAN ACCOUNT

DBBL School Banking

Dutch-Bangla Bank launched the DBBL School Savers manage their online account on their own schedule with
Account in March 2011 with the objective to implant the convenient 24/7 access to their funds through ATM and
habit of contemporary banking practice from an early age internet. DBBL School Savers Account may be one of
into the students and to popularize the usage of ATM and the best ways to encourage the savings aptitude of the
technology. school going students and to help a student learn how to
budget, account for and manage their own fund for higher
DBBL School Savers Account, a program designed to
education.
balance convenience for parents and their children with
financial responsibility. This account enable students to

ANNUAL REPORT 2016 209

Key Features & Benefits of Account l This account will be jointly operated by the student
with parents or guardian
Bangladeshi student aged below 18 (eighteen) years can
open the account As a part of financial inclusion endeavor, in 2016,
l Interest bearing savings account DBBL has conducted Financial Literacy Campaign in 61
l Opening deposit as minimum as BDT 100/- only (Sixty One) Schools across the country to boost up and
l Free DBBL Nexus Debit/ATM Card create awareness of School Banking products among
l No renewal fee for DBBL Nexus Debit/ATM Card the students, guardians and educational institutions.
l No yearly account maintenance/service fee Moreover, we have undertaken the program to conduct
l Free SMS alert service Financial Literacy Campaign through Lead Bank Method in
l 24 hour cash withdrawal facility by using the largest Sylhet and Moulavibazar district as per recent guidelines
ATM network of Bangladesh Bank which will be implemented in the
l e-Commerce facility for payment of tuition fees, upcoming year of 2017. Now DBBL has 123,172 number
purchasing of books, stationeries etc. of School Banking Account as of 31st December, 2016
l Cash-free purchase/shopping through large POS including the scheme A/C. Moreover DBBL is also collecting
network students tuition fees from (09) educational institutions
l In addition to wide range of branch network, such as BAF Shaheen School, International Turkish Hope
convenient deposit facility through Cash Deposit School, American International School Dhaka (AISD) etc.
Machine at Fast Tracks across the country through the Nexus Payment Gateway.

123,172

98,328

60,486

41,083

26,757
17,198

2011 2012 2013 2014 2015 2016

YEARWISE NUMBER OF SCHOOL BANKING ACCOUNT

Financial Literacy Campaign in Rangdhanu Kindergarten & Model High School, Sirajgonj conducted by DBBL Shahjadpur Branch
for creating awareness among students and guardians regarding practice of banking from the early age.

Financial Literacy Campaign in Rasulpur Matain Hazi Asaduzzaman High School, Narayangonj conducted by DBBL Baburhat Branch

ANNUAL REPORT 2016 211

Financial Literacy Campaign in BAF Shaheen College, Chittagong conducted by DBBL Chittagong EPZ Branch

Financial Literacy Campaign in Gopaldi Girls High School, Gopaldi, Araihazar, Narayanganj conducted by DBBL Gopaldi Branch
Small and Medium Enterprises (SME) value-added to gross domestic product (GDP).
Financing Since inception, DBBL is constantly working for the
betterment of the CMSME sector of the country. DBBL
In the context of Bangladesh, the development of
has a well-organized and fully functional SME Division
Cottage, Micro, Small and Medium Enterprises (CMSMEs)
equipped with efficient manpower and is actively
can be considered as a vital instrument for poverty
supporting this industry through its widespread network
alleviation and ensure the rapid industrialization.
all over the country.
CMSMEs are the crucial business concerns for the
economic and social developments of a country and play Based on the requirements of the entrepreneurs, both
dominantly important role in the national economy of existing and new, DBBL presents new innovative products
Bangladesh by making up over 90 per cent of industrial and services to meet the emerging financial needs of the
enterprises, providing employment to 4 out of 5 industrial clients.
workers and contributing to over one-third of industrial

SME products are currently offered by DBBL:

Product Name Purpose Target Customers Limit (Taka)
DBBL SMART Cash For working capital requirement as well Cottage, Micro, Small and Medium 100,000/-
Credit as expansion of business. Enterprise as per definition provided
by Bangladesh Bank. up-to 20,000,000/-

DBBL SMART Term 1. For procurement of Fixed Cottage, Micro, Small and Medium 100,000/-
Loan Assets. Enterprise as per definition
2. For working capital requirement provided by Bangladesh Bank. up-to 20,000,000/-
and expansion of business.
DBBL SMART For seasonal working capital requirement Existing DBBL clients (time tasted 100,000/-
Festival Loan during different festivals like Eid, Puja, clients and highly recommended by
Hal-khata, etc. and urgent working capital Branch). up-to 20,000,000/-
requirement of DBBLs existing clients.
DBBL SMART To meet the fund requirement of Cottage, Micro, Small and 100,000/-
Women business set up by the Women Medium Enterprise (led by women
Entrepreneurs Entrepreneurs. entrepreneur) as per definition up-to 20,000,000/-
Financing (CC) provided by Bangladesh Bank.
DBBL SMART To meet the fund requirement of Cottage, Micro, Small and 100,000/-
Women business set up by the Women Medium Enterprise (led by women
Entrepreneurs Entrepreneurs. entrepreneur) as per definition up-to 20,000,000/-
Financing (Term provided by Bangladesh Bank.
Loan)
CC (Hypo) limit For working capital requirement as well Small Enterprise as per definition 100,000/-
under Small Shop as expansion of business. provided by Bangladesh Bank.
Financing Scheme up-to 500,000/-

DBBL SMART Working capital requirement of Distributor of well-known local or 100,000/-

Distributorship Distributors of well-known company multinational company. Distributor
Financing operating in Bangladesh. firm must be under Small and up-to 20,000,000/-
Medium Enterprise as per definition
provided by Bangladesh Bank.
DBBL Prantik To meet the fund requirement of 10 Taka No-frill account holders. up-to 50,000/-
marginal/landless people for any income
generating activity.

ANNUAL REPORT 2016 213

Salient features of DBBL SME products:
l Easy and simple application process Customers can avail of SME loans through any branch of
l Flexible security arrangement DBBL. The SME Help Desk and Women Entrepreneur

l Fast and hassle free approval Dedicated Desk are actively extending support to SME
entrepreneurs.
l Competitive rate of interest
l Flexible repayment terms The Bank is an active participant in various refinance
l Automatic payment system schemes funded by Bangladesh Bank, World Bank, ADB
l Partial and full pre-payment facility and JICA.
l No processing and renewal fees
l Renewal and enhancement facilities
l Collateral free loan up to Tk.2.50million (applicable
for women entrepreneurs)
l Rate of interest 10% under refinancing scheme
(applicable for women entrepreneurs) and 9.50%
for the borrowers of 10 Taka No-frill account.

23,720
23,435

22,649 22,802

21,095

19,816
Taka in Million

2011 2012 2013 2014 2015 2016

YEARLY OUTSTANDING

Women Entrepreneurs Financing:

Factors like family influence, lack of education, lack of financing, family values and superstation play a crucial role in
blocking women from attaining success. Notwithstanding, the contribution of women entrepreneurs to the national
economy is enormous. Despite having huge potential and ability, women often face difficulty in obtaining finance from
banks and financial institutions. In order to facilitate the women entrepreneurs with institutional credit facilities and
to ensure their active participation in the growth of the economy, DBBL offers attractive and flexible financing schemes
under SME financing.
Women Entrepreneur engaged in manufacturing and trading of handicrafts

Women Entrepreneur engaged in manufacturing of handicrafts instructing her workers

ANNUAL REPORT 2016 215

Financing in cottage industry
Among many cottage industries, DBBL finances in manufacturing of Tape Loom and Door Mat (Paposh)

Yarn processing unit of a Tape Loom. Weaving Door Mat

Financing in Micro Industry

DBBL finances in the micro industry, involved in manufacturing of Handicrafts.

Outlet of a handicraft manufacturer financed by DBBL

Financing in Small Industry
Small industries remain one of the major and most important contributors of the development of the national
economy. The country has a handful of successful stories of the small industry. However, much more is left to be done
and there is still huge scope for financing in this area. Considering the financial needs of the small entrepreneurs, the
prospect of developing and their capacity to generate income and employment, DBBL generously finances in the small
industry.

Small scale garments accessories (Elastic Cosset) industry

Cluster Financing

Among different clusters, DBBL finances to Bamboo Traders of Coxs Bazar District

ANNUAL REPORT 2016 217

agricultural
credit
SUSTAINABLE AGRICULTURE: SUPPORT FOR
OUTREACHING THE NEEDS OF PRIMARY PRODUCERS

Prudential Policy of Bangladesh Bank and rural economy supporting agri-policy directives.
Bangladesh Bank has set an amount of Tk.175,500.00
Bangladesh Banks Agricultural & Rural Credit Policy million target for all banks for the fiscal year 2016-2017
and Programme emphasize to ensuring food security for agricultural and rural credit which is 7.01% higher than
and alleviating rural poverty through escalating the that of the previous year (Tk.164,000.00 million).
scope of agricultural credit, financial inclusion, resulting
in increased fund flow in rural areas. Under the policy, Partnership/Linkage with Micro Finance
adequate credit has also been provided for two other Institutions (MFIs)
main sub-sectors namely Fishery and Livestock alongside
the crop loan including income generating and poverty To achieve the desired goal, the Central bank has been
alleviation activities in rural areas. allowing the banks, having not enough branches in
rural areas, to use MFIs linkage for disbursement of
Bangladesh Bank recommends farmers including small, agricultural credit.
landless and sharecroppers be provided with Banks
agricultural credit just in time for successful cultivation. DBBL has been increasingly extending agricultural credit
line to reputed MFIs for onward disbursement to ultimate
The Government has undertaken changes in rural credit beneficiaries over last one decade. DBBL has also been
distribution for the Banks in the current fiscal year providing agricultural credit directly to the primary
(2016-2017) in order to keep pace with annual budget producers in rural areas through its own branch network.

ANNUAL REPORT 2016 221

Agricultural financing and recovery thereof require Target and Achievements
a nationwide frameworks having skilled manpower.
Bangladesh Bank for the FY 2016-2017 has set a target
As such, DBBL established a very good relationship with
for DBBL of Tk.2,650.00 million for disbursement of
internationally reputed MFIs like BURO Bangladesh,
agricultural and rural credit. It is worth mentioning that up
UDDIPAN, TMSS, RDRS Bangladesh, RDF, DSK, Ad-din to June 30, 2016, DBBL has disbursed Tk.2,331.10 million
Welfare Centre, BEES, Padakhep Manabik Unnayan out of the target amount of Tk.2,300.00 million for the FY
Kendra, AID Foundation, Aungkur Palli Unnayan Kendra 2015-2016. As per guideline of Bangladesh Bank, DBBL is
and Uttaran. Side by side, there have been a number of actively financing in crop, fisheries, poultry and livestock
MFIs working regionally efficiently, who have also been sectors within which crop sector occupies the majority
portion.
made linkage partner of DBBL during last couple of years.
Agricultural financing using MFI linkage could reach hard A brief view of Agricultural performance of the Bank for
core poorer section of primary producers. last 02 (two) years is appended below:

(Amount in million BDT)

Fresh disbursement in Fresh disbursement in

Sectors
2015 2016
1. Short Term Loan:
a. Crops 1,744.37 1,788.50
b. Pisciculture - -
(i) Fishery (Shrimp) 94.06 155.23
(ii) Others 207.50 159.60
c. Crop Storage 48.53 1.95
d. Livestock - -
(i) Development 276.08 394.68
(ii) Ox/ Buffalo for ploughing 53.88 92.84
(iii) Poultry Firm 41.76 52.31
e. Poverty Alleviation 15.04 -
f. Others 98.82 16.51
Subtotal: 2,580.04 2,661.62
2. Term Loan:
a. Irrigation Tools 132.80 209.26
b. Pisciculture - -
(i) Fishery (Shrimp) - -
(ii) Others 23.27 -
c. Agricultural Tools 18.05 3.65
d. Livestock - -
(i) Development - -
(ii) Ox/ Buffalo for ploughing 35.04 -
(iii) Poultry Firm 7.46 -
e. Poverty Alleviation 51.22 -
f. Others 61.09 79.07
Subtotal: 328.93 291.98
Grand total: 2,908.97 2,953.60
 Crops

1,788.50
1,744.37

Fisheries

Crop Storage

Livestok Development
Figure in millon BDT

Ploughing

Poultry Farm

394.68
324.83

314.83
276.08

Poverty Alleviation

212.91
150.85

159.91
48.53

95.58
66.26

92.84
88.92
49.22

52.31
Agricultural Tools

1.95
Others

0
2015 2016
Sector-wise disbursement of Agricultural Credit
Agricultural Credit disbursement for the year 2015 & 2016

Strategies to Achieve the Target for the

FY 2016-2017
In order to achieve the target for the FY 2016-2017, DBBL l We have instructed our branches located at districts
has adopted following measures: head quarter/representing the district to attend

l Branches have been assigned to find out suitable at the meeting of District Agricultural Credit
MFIs, who have good expertise in microfinance. Committee as and when required.

l For disbursement of agricultural and rural credit, l We have identified some branches in different
we have given priority in 03 (three) core sectors divisions of the country as important agricultural
(crops, fisheries and livestock) compared to other hub and set target against the total target for the
agricultural sectors.
FY 2016-2017.
l We finance through MFIs recognized by Microcredit
l We have instructed the Managers of DBBL Branches
Regulatory Authority on partnership basis.
locating close to 111 extinct enclaves (obtained
l In light of Bangladesh Banks Agricultural & Rural through exchange contract with India) in different
Credit Policy and Programme, Branches also work areas of the country to disburse agricultural & rural
for procuring potential candidates, who are good
credit according to Bangladesh Banks policy to
primary producers in agriculture.
those areas.
l We have strengthened capacity building to
financing rural credit so that, the target as fixed by l We are exploring the possibility of providing
Bangladesh Bank could be achieved. agricultural credit through Agent Banking of DBBL.

ANNUAL REPORT 2016 223

ANNUAL REPORT 2016 225
ANNUAL REPORT 2016 227
 green
banking
GREEN BANKING
CURRENT SCENARIO

The concept of 'Green Banking' originates in modern of rivers; improper disposal of industrial, medical and
banking approaches. The concept has actually been house-hold waste; deforestation; loss of open space,
derived from ethical banking which seeks to mitigate the and loss of biodiversity. In addition, Bangladesh is one
hazards of climate change due to global warming. Climate of the most climate-vulnerable countries. In line with
change has direct impact on biodiversity, agriculture, global development and response to environmental
forestry, water resources and human health. Due to degradation, the financial sector, as one of the key
unusual weather pattern, rising greenhouse gas, declining
stakeholders in society, should play its due role.
air quality etc. society demands that businesses also take
responsibility of safeguarding the planet. Green finance as DBBL, since its inception, has been maintaining leading
a part of green banking can make great contribution to the position in Bangladesh to provide IT based banking
transition to resource-efficient and low-carbon industries services to its valued customers. DBBL provides online
i.e. green industry and green economy in general. banking through its 165 Branches and a number of Agents,
Green banking is a component of the global initiative ATM/Fast Track, Mobile Banking viz. Rocket, Internet
by a group of stakeholders to save the environment. Banking, SMS Banking, Debit Card, Credit Card, Virtual
The environment in Bangladesh is rapidly deteriorating. card, E-payment and so on. Besides, DBBL has completed
The key areas of environmental degradation are: air its process of full Centralization as per CRM Guideline of
pollution; water pollution and scarcity; encroachment Bangladesh Bank.

ANNUAL REPORT 2016 231

DBBLs in-house Management are well aware regarding l Soft archival of customer documents for electronic
the DBBL Green Office Guide which includes among other, access and retrieval is enabling us to reduce
well known 3R activities viz. Reduce, Reuse & Recycle, consumption of paper.
economic use of office equipments (Computer, Laptop,
Photocopier, AC, Light etc.) and efficient use of papers and l Majority of internal memos, process notes and
inks by encouraging paperless electronic Banking. records are in electronic form.

Sustainable Finance Unit l Customer communications are being done

through emails, SMS or ATM display instead
In terms of Sustainable Finance Department of of letter communication (except for regulatory
Bangladesh Bank vide circular No. 02 dated 01.12.2016 the
requirements).
Board of Director of DBBL in its meeting held on 27.12.2016
has approved formation of Sustainable Finance Unit l IP phone with video conferencing system has been
under supervision of Head of Credit Risk Management introduced for telecommunication between the
Division and Sustainable Finance Committee with the officials of the Bank.
membership of different divisional Heads of the Bank. The
Board has also abolished existing Green Banking Cell of the l Solar energy has been used to power 50 ATM
Bank. Sustainable Finance Unit and Sustainable Finance booths/Fast Tracks and 9 Branches (partially) in the
Committee of DBBL will work under the guidelines of country.
above circular of Bangladesh Bank.
Fund Allocation for Climate change Risks
In-house Green Management
The Management allocated budget for Tk.5.00 million as
DBBL, since its inception, has been maintaining a balanced Climate Risk Fund for help/rehabilitation of the affected
initiative and supporting activity to contain things that people in the country due to natural disasters like flood,
may adversely affect environment and contribute to cyclone, drought etc. for climate change. DBBL has,
pollution. The 3R thumb rule drives us towards Reuse, however, donated Tk.7.50 million for rehabilitation of the
Reduce and Recycle in our daily activities in order to flood affected peoples in the country during the year 2016
arrest emissions from carbon footprint, a few of which which is a part of CSR activity against climate change.
mentioned below:

Taka Taka
5,000,000 7,500,000
budget allocation as
donation to the victims
Climate Risk Fund of natural disasters in
for 2016. 2016 against the Climate
Risk Fund.

Environmental and Social Management along with internationally accepted exclusion list and
System (ESMS) in DBBL launched Environmental & Social (E&S) Categorization
Tool (Environmental Risk Rating) in excel based
DBBL, with the support of FMO, has established software as per ERM guidelines of Bangladesh Bank
an internationally standard Environmental & Social and internationally best practices. DBBL also includes
Management System (ESMS) of its own by the technical procedure for managing environmental and social risks
assistance of a 3rd party consultant viz. F.I. Konsult for commercial lending operations in their credit manual.
s.r.o. from Czech Republic. As part of the capacity Environmental and Social due diligence is our key issue in
development program, DBBL has completed, among approving credit proposals.
others, revision of its existing Green Banking policy

ETP project financed by DBBL

Fund Allocation for Capacity Building for Structural Reform

Awareness Development
DBBL has completed its centralization process of
The Management has also allocated fund for Corporate Credit operation including Trade Service
Tk.5.00million as Capacity Building for awareness business. In this regard, DBBLs Trade Service operation,
development and training of the officials of the Bank as Credit Administration, Credit Marketing, Credit

well as awareness development among the consumers/ Monitoring, Credit Risk Management and Credit Approval
process have gone under the umbrella of Centralization.
clients of the Bank in respect of sustainable development
Business mobilization, proposal processing, review,
issue. DBBL is continuously making necessary training
approval as well as documentation and disbursement are
programs on regular basis for capacity building of its
being made in a centralized manner. We are now keeping
employees on these issues. This year we have trained a
the clients security documents in the Central Vault.
number of officials of the Bank on Environmental & Social Every foreign trade related business such as opening
Risk Management issues. DBBL officials also participated of LC, negotiation of export documents etc. are being
in different trainings, workshops and seminars on made through one platform. Now we can reduce paper
Sustainable/Green banking issue time to time as per consumption and avoid wasting valuable time in making
invitations of different institutions. decisions and approving credit proposals.

ANNUAL REPORT 2016 233

 A partial view of CDM project financed by DBBL.

Finance made in environmentally complied Financing 10 (Ten) Taka account holders

industries
DBBL has continued financing a significant amount Bangladesh Bank has built a Revolving Refinance Fund of
as Direct Green Finance like installation of Effluent Tk.200.00 crore for the purpose of facilitating landless/
Treatment Plant (ETP) from its own sources. So far, we small/marginal/victim of natural disaster/low income
have financed several projects like ETP, Solar, Automatic group of the country having account of Tk.10 (Taka ten)
Brick Manufacturing industry such as Tunnel Kiln,
only through extending credit facilities specifically in
Zig-Zag etc. We have already obtained refinance from
the income generating activities at easier terms and
Bangladesh Bank for financing ETP and Solar panel
project. Some of the factories that we have financed conditions. DBBL has completed the Participation
maintain environmentally friendly procedures such as Agreement with Bangladesh Bank in 2014 and made
handling waste in a safe manner in hospital, hot water finance to different borrowers through MFI linkage. DBBL
heat recovery system in Textile/RMG, converting non- has so far obtained refinance from Bangladesh Bank
compliance factory into environmentally complied factory
against financing in favour of 187 individual clients of
as per observation of accord alliance and so on. Power
which 146 refinances are obtained in the year 2016. We
generation projects financed by DBBL submitted their
environmental monitoring compliance report to World have also obtained refinance from Bangladesh Bank
Bank through Bangladesh Bank IPFF cell. against financing through 2 MFIs.
 A partial view of an Auto Brick project using Tunnel Kiln Technology financed by DBBL.

Online Banking facilities financial services such as cash-in, cash out, merchant
payment, utility payment, salary disbursement, foreign
DBBL maintains the largest on-line banking network remittance, government allowance disbursement, ATM
supported with state-ofthe-art technological
innovations and extensively using its on-line facilities
which has meantime received an extreme recognition in
the country. It has brought user-friendly technologies
for the masses, offering variety of product supports at a
minimum cost and fostering fastest customer services
through its professional expertise. It has reduced cost
burden, ensured speedy transactions, one point banking
support and familiarizing clients with Internet supporting
activities. The practice of electronic mail for internal
communications has also been our regular practice.
money withdrawal through mobile technology etc. all
Mobile Banking (ROCKET) over the country at an affordable cost.
DBBL mobile banking is renamed as ROCKET. It is the
2nd largest mobile banking system in Bangladesh. Mobile E-Payment Gateway facilities
Banking facilities bring a huge number of unbanked DBBL is the first bank in Bangladesh to introduce
people of the country under banking arrangement. It is e-payment gateway. Now it is easier to purchase online,
in a true sense of paperless banking. Mobile Banking is pay utility bills, tution fee etc. without having an account
a Banking process without bank branch which provides and paper notes. By this electronic media we do not need

ANNUAL REPORT 2016 235

 Solar panel project financed by DBBL

Annual Disclosure for the year ended 2016

Taka in million
Sl. Beginning of End of the
Item/Particulars Total in 2016 Remarks
No. the year year
1. Direct & Indirect Green Finance 10,868.71 8,794.17 32,815.62
2. Utilization of Climate Risk Fund - 7.50 7.50 Donation made for flood
effected peoples in
August 2016.
3. Expense related with Marketing, 0.12 - 0.17 -
Training & Capacity Building
4. No. of Branches 155 10 165
5. Consumptions: Consumption increased
Paper & Stationary: 30.76 50.78 due to opening of 10 new
Water: 1.62 1.69 branches in last quarter.
Electricity Consumption: 57.54 70.40
Fuel: 12.38 11.34
6. ATM powered by Solar Energy - - 50 Nos.
7. Branches partially powered by Solar - - 9 Nos.
Energy
8. Environmental Risk Rating 994 clients up to 2016

In line with the core objectives of Bangladesh Bank, the Government and World Forum towards a better Earth and
careful practices for safeguarding this beautiful planet for the future generations, DBBL always remains and will actively
work with the people as best as it can.
social cause
Dutch-Bangla Bank donated Tk. 2 crore to the Prime Ministers Relief Fund for helping the distressed people of the country.
Honorable Prime Minister Sheikh Hasina received the payment order of Tk. 2 crore from Mr. M. Sahabuddin Ahmed, Founder of Dutch-
Bangla Bank & Chairman of Dutch-Bangla Bank Foundation at a ceremony held at Gono Bhaban, Sher-e-Bangla Nagar, Dhaka.

ANNUAL REPORT 2016 239

Dutch-Bangla Bank donated Tk. 75 lac to the Prime Ministers Relief Fund for flood victims of the country. The flood displaced
thousands of people from their homes and caused severe damage to crops across the country.

Honorable Prime Minister Sheikh Hasina received the payment order of Tk. 75 lac from Mr. M. Sahabuddin Ahmed, Founder of Dutch-
Bangla Bank & Chairman of Dutch-Bangla Bank Foundation at a ceremony held at Gono Bhaban, Sher-e-Bangla Nagar, Dhaka.
Honorable Prime Minister Sheikh Hasina receiving a sample of blanket from Mr. M. Sahabuddin Ahmed, Founder of Dutch-Bangla
Bank & Chairman of Dutch-Bangla Bank Foundation. Dutch-Bangla Bank donated 1,00,000 pieces of blankets in December 08, 2016
at Prime Ministers Office, Tejgaon, Dhaka for distribution among the cold hit people of the country.

Dutch-Bangla Bank has been distributing blankets among the poor people particularly of the northern districts of the country for the
last many years.
Our future scholars are not lacking in
intelligence. They are severely limited
simply by having been born into
poverty. Let us wholeheartedly
support them through their journey
and embolden them to build a
prosperous Bangladesh.

ANNUAL REPORT 2016 245

A full view of DBBL Scholarship Awarding Ceremony
 SOCIAL CAUSE
Social Cause is something that is mutually beneficial, relationship between social cause and sustainable
both for the organization in the sense of goodwill and success.
interaction with the people and the community as far as
economic emancipation is concerned. Dutch-Bangla Bank DBBL is not only a financial institution acting as an engine
shows great discernment in its services from the inception of growth for economic development in Bangladesh; but
of the Bank in 1996. With the largest IT platform in the also a catalyst in societal progress. As an extension of
banking industry, the Bank has epitomized the services this quintessential philosophy, the Bank has established
and innovations including its commitment to the society Dutch-Bangla Bank Foundation which has been rendering
through Corporate Social Responsibility (CSR) activities. services to various fields relentlessly covering the areas of
education, health care, natural calamities as well as man-
According to the World Business Council for Sustainable made disaster.
Development, Corporate Social Responsibility is the
continuing commitment by business to behave ethically Conducting business in an ethical way, creating
and contribute to economic development while improving opportunities for business & economic growth,
the quality of life of the workforce and their families as empowering people to fulfill their aspirations, ensuring
well as of the local community and society at large. protection of environment while financing businesses
and supporting the distressed people of the society are
In DBBL, CSR is modified to the term of Social Cause at the heart of social cause policy of DBBL. DBBL since its
in order to make its services more pro-active towards inception in 1996 had adopted the policy of contributing
social needs and national development through ethical, to the social cause. It has been continuing its effort during
legal and commercial conduct. DBBL has always aspired the last 20 years as a pioneer in the banking sector and
to the highest standards of conduct, recognizes its has become the leader much ahead of the other banks
wider obligation to society and believes the intertwining due to its cinematic tour de force.
CONTRIBUTION OF DBBL IN DIFFERENT SECTORS IN 2016

Education 72%

Health 7%

Social
Development 8%

Disaster
Management 11%

Social
Awareness 1%

Miscellaneous 1%
DBBL dreams of a country free from hunger and a society free from vices. It is impossible without education. As such
the bank places much importance on education. Meritorious students, particularly in rural areas are dropped every
year because of financial constraint. But they could contribute to the nation building if they could have some financial
assistance. Keeping this view in mind DBBL has been awarding scholarship to the meritorious students in need of
financial aid since its beginning. Considering the number of such students is huge the Bank has planned to increase the
scholarship number to an insurmountable level.

In addition to scholarship, DBBLs social cause initiatives includes - building of educational infrastructure, Smile brighter
program for the underprivileged cleft lipped & cleft palate children, cataract operation program for the underprivileged
blind people, healthcare support for helpless patients, financial support for developing medical infrastructures,
communication infrastructures and many other social developments programs. Over the years, DBBLs various social
cause obligations increases manifold and the initiatives taken in 2016 is explained sector-wise in the following pages:

1. Contribution to Education Sector

Education is necessary for the overall development of the country. Keeping this view in mind, Dutch-Bangla Bank
has been giving top priority to promote the education sector. Awarding scholarship to meritorious students in
need of financial aid, financial support for organizing the prestigious Ganit Olympiad, Physics Olympiad, helping
development of educational infrastructural facilities, providing essential educational equipment etc. are some of
the aspects included in the program.

CONTRIBUTION TO EDUCATION SECTOR IN 2016

1% 6% 93%

GANIT & PHYSICS INFRASTRUCTURAL SCHOLARSHIP

OLYMPIAD DEVELOPMENT
1.1. Scholarship Program

Dutch-Bangla Bank, under its social cause program, has been awarding the scholarships to the meritorious
students in need of financial aid studying at different levels of education since its beginning. New scholarships
were awarded every year along with renewal of existing awardees.

The Bank has given scholarships to the deserving students from huge applications following a set of criteria such as
the applicants academic results, financial capability, physical conditions etc. Around 90% of the total scholarships
have been given to the rural students and 50% to the female students.

ANNUAL REPORT 2016 249

The scholarship awardees are provided with the following benefits:

Level of Duration of Amount of scholarship One time grant annually (Taka) Total amount per
Study scholarship per month (Taka) For reading materials For clothing year (Taka)
H.S.C. 2 years 2,000.00 2,500.00 1,000.00 27,500.00
Graduation 3-5 years 2,500.00 5,000.00 1,000.00 36,000.00
Realizing the fact that every year many meritorious students, mostly in rural areas, are compelled to discontinue their
study because of poverty, the bank has increased the number of scholarship substantially. Accordingly, 41,600 students
of HSC and graduation level were awarded scholarship under this program as detailed below:

Batch wise no. of Scholarship awardees

Passed H.S.C.
Passed S.S.C.
Batch (scholarship for graduation Total no. of awardees
(scholarship for HSC level)
level)
2001
(Students of different batches of - 47 47
Dhaka University)
2002 - 50 50
2003 100 100 200
2004 126 126 252
2005 159 166 325
2006 156 198 354
2007 100 101 201
2008 100 100 200
2009 107 110 217
2010 3,021 1,883 4,904
2011 3,008 857 3,865
2012 4,015 2,030 6,045
2013 4,057 2,518 6,575
2014 5,050 4,100 9,150
2015 4,025 2,153 6,178
2016 3,037 - 3,037
Sub Total 27,061 14,539 41,600
41,600
36,410
28,285

27,061
24,024
19,999
20,717
16,660

14,949

14,539
12,386
No. of awardees

10,892

8,286
5,768
5,768

2012 2013 2014 2015 2016

Total HSC Level Graduation Level

The scholarships of DBBL are available for the entire of helping the meritorious and needy students of the
academic period for different levels of education like- country. He expected that all the corporate bodies of the
H.S.C. and Graduation level. country would come forward with such programs for the
benefit of the society.
i). H.S.C. level: After passing S.S.C. examination in the
current year, the students, who have been studying at Mr. Anisul Huq, MP, Honorable Minister, Ministry of Law,
H.S.C. level are eligible to apply for scholarship. The Justice and Parliamentary Affairs, Government of the
scholarships are renewable for the entire academic period Peoples Republic of Bangladesh was present as the
of H.S.C. level. Already 27,061 scholarships have been Special Guest in the scholarship awarding program.
awarded in this level of which 3,037 new scholarships Honorable Minister Mr. Anisul Huq lauded the role of
were awarded in the year 2016.
DBBL in connection with philanthropic activities to stand
by the distressed people of the country, adding that DBBL
The scholarship awarding ceremony was held at Shaheed
is also a pioneer in providing modern banking services to
Surhawardy Indoor Stadium, Mirpur Circle-10, Dhaka on
its clients. He congratulated the scholarship awardees
October 29, 2016 where DBBL awarded scholarship to
and expected that they would dedicate themselves by
3,037 students who passed S.S.C./equivalent examination
achieving real education.
in 2016 and studying at H.S.C. level in different colleges of
the country. Mr. Abul Maal Abdul Muhith, MP, Honorable His Excellency, Mr. Benot-Pierre Larame, the High
Minister, Ministry of Finance, Government of the Peoples Commissioner of Canada to Bangladesh was also present
Republic of Bangladesh was present as Chief Guest. as the Special Guest in the scholarship awarding program.

Guests are seen at the Scholarship Awarding Ceremony of S.S.C. 2016 batch.

Honorable Minister Mr. Abul Maal Abdul Muhith in his While speaking on the occasion, His Excellency, Mr.
speech profusely lauded the scholarship program of Benot-Pierre Larame appreciated Dutch-Bangla Bank
Dutch-Bangla Bank and recalled other philanthropic for its generous initiative to build the future of the
activities of the Bank. He appreciated the DBBLs underprivileged students which would go a long to the
continuous humanitarian and welfare activities and development of the human resources of the country. He
termed this scholarship program as a unique example congratulated the students who got DBBLs Scholarship.

ANNUAL REPORT 2016 251

 An awardee (visually impaired) of S.S.C. 2016 Batch is seen expressing his feelings after getting DBBL scholarship.

While speaking, Mr. Sayem Ahmed, Honorable Chairman The scholarship awarding ceremony was held at Shaheed
of the Board of Directors of DBBL also expressed his Surhawardy Indoor Stadium, Mirpur Circle-10, Dhaka on
appreciation for being associated with these scholarship
April 02, 2016 where DBBL awarded scholarship to 2,153
awardees.
students who passed H.S.C./equivalent examination in
The Chief Guest and Special Guests handed over the 2015 and studying at graduation level in different public
Scholarship Awarding Letters among the scholarship
universities and/or colleges of the country.
awardees.

ii). Graduation level: Every year DBBL awards new Mr. Abul Maal Abdul Muhith, MP, Honorable Minister,

scholarships for the meritorious students in need of Ministry of Finance, Government of the Peoples Republic
financial aid of this level along with the continuation of of Bangladesh was present as Chief Guest. Mr. Anisul
existing awardees. The students, who have been studying
Huq, MP, Honorable Minister, Ministry of Law, Justice
at graduation level after passing H.S.C. examination in the
and Parliamentary Affairs, Government of the Peoples
current year, are eligible to apply for scholarship of this
level. Republic of Bangladesh and His Excellency, Mr. Benot-
Pierre Larame, the High Commissioner of Canada to
The scholarships are renewable for the entire academic
Bangladesh were present as the Special Guests. The Chief
period of graduation level. Already 14,539 scholarships
have been awarded in this level of which 2,153 new Guest and Special Guests handed over the Scholarship
scholarships were awarded in the year 2016. Awarding Letters to the recipients.
Guests are seen at the Scholarship Awarding Ceremony of H.S.C. 2015 batch.

A DBBL Scholar (Lecturer of a Govt. College) is seen expressing her feelings about the contribution of DBBL scholarship behind the
success of her life.

ANNUAL REPORT 2016 253

 A view of the Scholarship Awarding Ceremony of H.S.C. 2015 batch.

1.2. Donation for organizing Bangladesh Physics participation in the International Physics Olympiad
Olympiad (IPhO).

Physics is the mother of all sciences and the root of The 6th Physics Olympiad was held in 2016 in 12 regions
all concepts. Making Physics flourish will help science where 10,000 students participated in the program. It is
to develop beyond just textual studies. The Physics a great success that a lot of students of Bangladesh have
Olympiad will arouse interest regarding science in the been attracted in Physics and Science through arranging
minds of the new generation and draw them towards Bangladesh Physics Olympiad. The National round of
it, as well as encourage them to learn in-depth about the Olympiad was held in 2 phases at Curzon Hall and
this field of knowledge. Keeping this view in mind, Nabab Nawab Ali Chowdhury Senate Bhaban, University
Bangladesh Physics Olympiad Committee has been of Dhaka.
arranging Bangladesh Physics Olympiad for the last six
years successfully. DBBL has been providing financial It is mentionable that the Bangladeshi participants
support for last 04(four) consecutive years at the rate achieved 01 Bronze medal and 01 Honorable Mention
of Tk.2,500,000/- in 2013, Tk.2,500,000/- in 2014, Award in the 47th International Physics Olympiad (IPhO)
Tk.3,130,000/- in 2015 and Tk.3,500,000/- in 2016 for held at Zurich, Switzerland in July 2016. Apart from this,
organizing Bangladesh Physics Olympiad along with the contribution of DBBL as well as the achievement of
Flag hoisting ceremony of the National Round of Dutch-Bangla Bank Bangladesh Physics Olympiad, organized by Bangladesh
Physics Olympiad Committee at Curzon Hall, University of Dhaka.
Honorable Minister, Ministry of Science and Technology, Govt. of the Peoples Republic of Bangladesh, Architect Yeafesh Osman
was present as chief guest, while Prof. A. A. M. S. Arefin Siddique, Vice Chancellor, University of Dhaka was present as special guest.
Among others Mr. K.S. Tabrez, Managing Director of Dutch-Bangla Bank was also present in the ceremony.

the Bangladeshi participants in the International Physics Olympiad (IPhO) is increased remarkably which is summarized
as under:

Contribution of Number of Inland Olympiad IPhO held Achievement of

Year
DBBL participants held in in participants in the IPhO.

2013 01 Honorable
Tk.2,500,000/- 4,000 7 regions Denmark
(3rd Physics Olympiad) mention award
2014 02 Honorable
Tk.2,500,000/- 6,000 10 regions Kajaksthan
(4th Physics Olympiad) mention award
01 Bronze medal &
2015 Mumbai,
Tk.3,130,000/- 9,000 12 regions 01 Honorable mention
(5 Physics Olympiad)
th
India
award
01 Bronze medal &
2016 Zurich,
Tk.3,500,000/- 10,000 12 regions 02 Honorable mention
(6 Physics Olympiad)
th
Switzerland
awards

Considering the importance of this event, DBBL further committed to provide financial support of Tk. 3,500,000/- only
to Bangladesh Physics Olympiad Committee for organizing the 7th Dutch-Bangla Bank -Bangladesh Physics Olympiad
2017 along with participation in the 48th International Physics Olympiad (IPhO) which will be held in Indonesia in 2017.

ANNUAL REPORT 2016 255

 Among the participants of the above mentioned
3.50 catagories, more than 1,350 students qualified for the
3.13 national round of the program and participated in the
14th Bangladesh Ganit Olympiad held in Dhaka. Then
2.50 2.50 ganit camp was arranged with the winners of the National
Olympiad and finally a team of 06 (six) members were
Taka in million

selected and they participated in the 57th International

Mathematical Olympiad (IMO) held in Hongkong in July
2016.

It is mentionable that starting in 2004 Dutch-Bangla

Bank-Prothom Alo Ganit Utsab has been engaged in
2013 2014 2015 2016 developing the mathematical efficiency of the students
Contribution for arranging Bangladesh Physics Olympiad for last 4 years as well as facilitating the participation in the International
Mathematical Olympiad. This program has now become
1.3. The Math Olympiad, Dutch-Bangla Bank - Prothom a prestigious event for the school and college going
Alo Ganit Utsab students of the country. The program is jointly organized
Ganit Utsab (Math Olympiad) has been introduced by by Bangladesh Mathematical Olympiad Committee,
the Bangladesh Mathematical Olympiad Committee Dutch-Bangla Bank Limited and Daily Prothom Alo at
with a view to remove the math-phobia as well as make regional, divisional and national level so as to bring out
Mathematics attractive among the school and college the latent potential of the future nation builders of the
going students. This Olympiad has now become a country. A team consisting of 6 to 8 members is selected
prestigious event for the students all over the country. for participating in the Asian Mathematical Olympiad,
Since its beginning, Dutch-Bangla Bank has been
International Mathematical Olympiad (IMO) and so on
providing financial support for organizing the prestigious
Ganit Olympiad and continuing its support under the title held in different countries in each year.
of Dutch-Bangla Bank-Prothom Alo Ganit Utsab for the
DBBL has been providing financial support for organizing
last 13 (thirteen) years.
this prestigious Ganit Utsab. From 2004 to 2015 Tk.58,589,000/-
About 32,000 students from different schools and (Taka fifty eight million five hundred eighty nine
colleges of the country, participated in the Ganit Utsab
thousand) only was provided to organize the events.
held in 2016. The program was held in 24 different regions
In 2016, DBBL provided Tk.7,500,000/- (Taka seven
of the country like -Panchagarh, Rangpur, Lalmonirhat,
Bogra, Khulna, Jessore, Chuadanga, Rajbari, Rajshahi, million five hundred thousand) only for arranging this
Pabna, Sunamgonj, Habigonj, Narsingdi, Jhalakathi, program.
Barguna, Chandpur, Noakhali, Shariatpur, Mymensingh,
Netrokona, Rangamati, Coxs Bazar, Chittagong and
Dhaka. 7.5 7.5
7.4
For participating in the Olympiad the students are divided
into the following 4 catagories:
7.0
SL. Catagory Eligible Students
Taka in million

1 Primary For the students of Class-III to Class-V

6.5
2 Junior For the students of Class-VI to Class-VIII
3 Secondary For the students of Class-IX to Class-X
4 Higher For the students of Class-XI to Class-
2012 2013 2014 2015 2016
Secondary XII
Contribution for arranging Ganit Utsab in last 5 years
 A moment of the opening ceremony of DBBL-Prothom alo Ganit Utsab-2016

The number of participants as well as contribution of Dutch-Bangla Bank for organizing this Ganit Utsab is increased
consecutively from the year 2004 which can be summarized below:

Contribution of Regional Program No. of participants in No. of participants in

Year
DBBL (Taka) held in regional program National Program
2004 1,500,000/- 6 regions 9,000 360
2005 3,000,000/- 10 regions 12,000 600
2006 3,500,000/- 14 regions 15,000 840
2007 4,000,000/- 14 regions 15,000 840
2008 4,000,000/- 14 regions 15,000 840
2009 4,500,000/- 14 regions 15,000 900
2010 4,700,000/- 13 regions 16,000 840
2011 5,000,000/- 13 regions 18,000 840
2012 6,500,000/- 17 regions 22,000 856
2013 7,000,000/- 17 regions 22,000 838
2014 7,386,000/- 22 regions 25,000 1,055
2015 7,503,000/- 24 regions 30,000 1,281
2016 7,500,000/- 24 regions 32,000 1,350

ANNUAL REPORT 2016 257

 32,000 1,350
30,000 1,281

25,000 1,055
22,000 22,000
900
840 840 840 840 840 856 838
18,000
16,000
15,000 15,000 15,000 15,000
600
12,000

9,000 360

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Graphical presentation of participants at Regional Level of DBBL Ganit Olympiad for last 13 years Graphical presentation of participants at National Program of DBBL Ganit Olympiad for last 13 years

Achievements of Bangladeshi Participants in International Mathematical Olympiad (IMO)

Bangladeshi students have been participating regularly in the IMO since the year 2005. The Bangladeshi participants proved
their mathematical efficiency in the IMO and achieved a total of 04 Silver medals, 17 Bronze medals and 23 admirable
recognitions. In continuation of this, the latest 57th IMO was held in Hong Kong in July 2016 where 06 Bangladeshi students
participated the program. Among the 06 Bangladeshi students, 01 earned Silver medal & 03 earned Bronze medal and 02
earned admirable recognitions.

Statistical data of Bangladesh in IMO

Country where No.of participating No.of competitor Position of Bangladesh
Year Achievements of Bangladesh
IMO was held countries from Bangladesh based on achievement

2005 Mexico 91 6 85

2006 Slovenia 90 4 2 Admirable recognitions 80

2007 Vietnam 93 5 3 Admirable recognitions 80

2008 Spain 97 4 1 Admirable recognition 75

2009 Germany 104 6 2 Bronze medal & 3 admirable recognitions 58

2010 Kazakhstan 97 5 1 Bronze medal & 3 admirable recognitions 69

2011 Netherlands 101 6 1 Bronze medal & 1 admirable recognition 72

1 Silver medal, 2 Bronze medals & 2

2012 Argentina 100 5 54
admirable recognition

2013 Colombia 97 4 3 Bronze medals & 1 admirable recognition 61

1 Silver medal, 1 Bronze medal & 4

2014 South Africa 106 6 53
admirable recognitions

1 Silver medal, 4 Bronze medals & 1

2015 Thailand 104 6 33
admirable recognition

1 Silver medal, 3 Bronze medals & 2

2016 Hongkong 109 6 35
admirable recognitions
 112

97
84

67 74
60
54

50

33
31
22

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Obtained Marks of Bangladeshi student in IMO

1.4. Educational Infrastructural development

1.4.1. Donation to Narayanganj Bar Academy at Khanpur, Narayanganj for constructing its school building
Narayangonj Bar Academy is a Non-Govt.(under MPO), renowned and largest educational institution of Narayangonj
city. It is a historical educational institution established in 1906. As informed, more than 1,500 students are now
studying in this school. Its main academic building was built in 1965. The building has already passed 51 years and
now becomes dilapidated which may be collapsed at any moment. So the students are always at risk to continue their
regular classes. As such there is a dire need to construct a new building of the school after demolishing the old and
ruined one.
It is mentionable here that as stated by the Headmaster, though the school is situated in the Narayangonj city, it is
surrounded by some large slums. The students of this school are mostly from poor families of these surrounding slum

A partial view of the ongoing construction work of Narayangonj Bar Academy at Khanpur, Narayanganj

ANNUAL REPORT 2016 259

areas and their tuition fees are also nominal. There is no a result they face difficulties due to lack of sufficient
other income source of this school without these tuition classrooms, laboratory, washrooms and library for the
fees. As such, it is not possible for the school authority to students. Besides, the existing infrastructures of this
mobilize the huge fund for constructing the new building school have now become very old and ruined. So the
after demolishing the old and ruined one. students are always at risk to continue their regular
classes. As such there is a dire need to construct a new
Considering the importance of this historical educational
institution, DBBL provided an amount of Tk.22,000,000/- building of the school after demolishing the old and
(Taka twenty two million) only as financial support ruined one.
for constructing the academic building (upto 2
It is mentionable here that as stated by the Headmaster,
floors, measuring approx. 5,000 sft. at each floor) of
the school is situated in a remote area. The students
Narayangonj Bar Academy. The construction work of the
of this school are mostly from poor families of these
academy is close to end and expected to open shortly.
surrounding villages and their tuition fees are also
1.4.2. Donation to Kabi Nazrul High School, Bimail, nominal. There is no other income source of this school
Singair, Manikgonj for meeting up the cost of without these tuition fees. As such, it is not possible
constructing its academic building for the school authority to mobilize the huge fund for
constructing the new building after demolishing the old
Kabi Nazrul High School, Bimail is a Non-Govt. renowned and ruined one. In this connection, the Headmaster in
educational institution established in 1970 at Bimail favor of the Managing Committee of Kabi Nazrul High
village of Singair upazila under Manikgonj District. As School, Bimail has requested Dutch-Bangla Bank for
stated, more than 850 students of class-6 to class-10
financial support for constructing the academic building
under 3 groups like Science, Humanities and Business
of the school.
Studies are now studying in this school under the
guidance of 21 teachers. The local students are getting In response to the application of the Headmaster as
great opportunity and especially the women education well as considering the importance of the educational
has been expanded from the school. The J.S.C. and S.S.C. institution, the competent authority of DBBL provided
result of this school is also very satisfactory.
financial support of Tk.11,000,000/- (Taka eleven
Most of the students of this school are from poor families million) only to Kabi Nazrul High School, Bimail, Singair,
and the number of students is increasing every year. As Manikgonj for meeting up the cost of constructing its

New building of Kabi Nazrul High School, Bimail, Singair, Manikgonj.

school building upto 2 floors (measuring approx. 2,964 The competent authority of DBBL approved a total
sft. at each floor) and procuring furniture and educational donation of Tk.33,000,000/- (Taka thirty three million)
equipment for the school. The construction work of the only to EKMATTRA for establishing an academy named as
school has been completed and functioning smoothly.
EKMATTRA-Dutch-Bangla Bank Academy at Gobrakura
1.4.3. Donation to EKMATTRA for establishing an union of Haluaghat upazila under Mymensingh district
academy for the underprivileged children where the underprivileged children will get shelter, food,
cloths, basic education, practical training and all other
EKMATTRA is a non-profitable social development necessary supports required to prepare them as resources
organization has been working to make a better future for instead of burden for the society. In this connection
underprivileged children since 2003. EKMATTRA has taken a Memorandum of Understanding (MOU) was signed
an initiative to establish a Childrens Academy where the between Dutch-Bangla Bank Foundation and EKMATTRA

A partial view of academic building (under construction) of EKMATTRA-Dutch-Bangla Bank academy at Haluaghat, Mymensingh

underprivileged children will have all the facilities that are and it has been decided that the payment of donation
very much essential for making their future. For this should be made in phases. The organization has already
purpose EKMATTRA purchased a land of 3.5 acres at received Tk.28,000,000/- (Taka twenty eight million) only
Gobrakura union of Haluaghat upazila under Mymensingh in five (05) installments for construction works of the
District. The organization requested DBBL for financial project.
support to build an academy for the underprivileged
children in this location.

ANNUAL REPORT 2016 261

 A partial view of academic building (under construction) of EKMATTRA-Dutch-Bangla Bank academy at Haluaghat, Mymensingh

The construction work was jointly inaugurated in August performing equitably and effectively through civic
2010 by Advocate Promod Mankin, the then Honorable education and engagement and improvement of lives.
State Minister of Cultural Affairs and Mr. Sayem Ahmed, The organization has run a school named as Yunus MLA
Chairman of Dutch-Bangla Bank Limited. The construction
Memorial Shixmayton popularly known as Shixmayton
work is going on in full-swing and expected to complete
in their rural development area of Bhangura upazila in
within the current year.
Pabna district.
Among the above mentioned amount, Tk.5,000,000/-
(Taka five million) only is given in 2016 to continue the As stated, Shixmayton was originally founded in 1956 by
construction works smoothly within the stipulated Late Abu Md. Yunus Ali (MLA) with a view to educating
time. women but the institution was destroyed in the late

1.4.4. Donation to Civic Bangladesh for constructing 1970s. Civic Bangladesh took an initiative to rebuild
a school building at Bhangura upazila in Pabna (with wooden structure tin shade) the institution in 2014
District
with renaming as Yunus MLA Memorial Shixmayton

Civic Bangladesh, a nonprofit development organization, to provide quality education for the disadvantaged and
has been working since 2005 to help governance marginalized community children.
 The underconstruction academic building of Shixmayaton School at Vangura, Pabna

Tragically, the school was devastated by a violent tornado Since inception, the school has been running smoothly
that hit the area in May 2015 and left the children out of with experienced teachers and efficient management as
school. So there is a dire need to rebuild the institution. In well as approval of the concerned authority. Its objective
this connection, Civic Bangladesh has taken initiative to is providing basic modern education inspiring through the
reconstruct the institution. As part of this initiative they
spirit of independence. As stated the result of this school
got a design/plan prepared by professional civil engineers,
is very satisfactory in all public and private examinations
invited quotations from the local contractors for
construction of the school building including classrooms, which make the institution reputed and praised to mass
library, washrooms, water supply arrangement and people of Magura district. More than 700 students of play
provision for furniture and fixture. As informed, group to class-10 has been studying in this school under
considering the lowest costing, the authority of Civic the guidance of 20 teachers and the number of students
Bangladesh has selected a firm for constructing the said is increasing day by day. In this circumstance, the school
school building (measuring approx. 4,193 sft.) as specified faces difficulty to maintain its class schedules smoothly.
against the design. But the organization has no sufficient Sometimes the teachers have to take classes in open
fund to bear the cost of constructing the school.
places due to lack of sufficient classrooms. As such there
Considering the importance of the matter DBBL provided is a crying need to construct an academic building to
an amount of Tk.3,500,000/- (Taka three million five provide education smoothly.
hundred thousand) only as financial assistance to Civic
Bangladesh for constructing the school building named as In this connection the school authority has planned
Yunus MLA Memorial Shixmayton at Bhangura upazila in to construct a new academic building considering the
Pabna district and help the underprivileged children return huge number of students and has already prepared
to their study. The construction work of the school is near a design through experts and estimated a total cost
to complete and expected to inaugurate soon. of Tk.5,703,867/- only for constructing the building.
Mentionable that in spite of getting academic recognition,
1.4.5. Financial support to A. Mozid Academy-
the school is yet to be listed under MPO and for this
Grihogram, Magura for meeting up the cost of
the school is not entitled to get any govt. fund. The
construction of its academic building
Headmaster of the school has, therefore, requested
A. Mozid Academy was established in 1995 at Grihogram Dutch-Bangla Bank for financial assistance to establish an
of Bogia union under sadar upazila of Magura district. academic building for providing education smoothly.

ANNUAL REPORT 2016 263

 The underconstruction building of A.Mozid Academy-Grihogram, Magura

In response to the application of the Headmaster as approximately 11,000 sq. feet at each floor) having all
well as considering the importance of the educational modern facilities. As stated, 02 floors of the academic
institution, the competent authority of DBBL committed building with all accessories will be constructed at the
to provide financial support of Tk.3,000,000/- (Taka three first phase which requires a huge amount of fund. In
this connection, the General Officer Commanding (GOC)
million) only to A. Mozid Academy- Grihogram, Magura
of 10-Infantry Division of Ramu Cantonment, requested
for meeting up the cost of construction of its academic
DBBL to provide financial support.
building. Among the committed amount, Tk.2,000,000/-
has already been disbursed in 2016 in favour of the In this connection, the competent authority of DBBL
school authority to carry on the construction work. The provided financial support of Tk.5,000,000/- (Taka
construction work is going on in full swing and expected to five million) only to Ramu Cantt. English School, Ramu
complete soon. Cantonment, Coxs Bazar for constructing its school
building measuring 11,000 sq. feet (approx.) at each floor.
1.4.6. Financial support to Ramu Cantt. English School,
Coxs Bazar, for constructing a school building at
2. Contribution to Health Sector
Ramu
Health is one of the prime parameters to indicate the
Ramu Cantt. English School is an institute established by
development of a nation. The need for healthcare is
Bangladesh Army with a view to provide quality education
increasing everyday due to rapid growth of population.
for every students in the community. The institute is Dutch-Bangla Bank has identified health care as a priority
established at the newly raised Ramu Cantonment in sector and helped create better health care facilities at
Coxs Bazar district where people are deprived of modern a cheaper cost for the disadvantaged population. In this
education. As such, Ramu Cantonment authority has connection Dutch-Bangla Bank extended its support for
planned to construct a 6 storied academic building (with the following programs in 2016:
 CONTRIBUTION TO HEALTH SECTOR IN 2016 poor patients are treated free of cost. It provides free
insulin to all registered diabetic patients upto the age of
6%
22 years. Besides, insulin is provided free or subsidized
rate to the poor patients through social welfare scheme
of BIRDEM and from its own source. In the last year as
15%
many as 5,15,447 patients attended Faridpur Diabetic
Hospital of which 4,42,006 in outdoor and 73,441 in
indoor departments. It is to be mentioned that out of the
total patients 1,16,454 are diabetic and 3,98,993 are non-
diabetic.
The existing total floor space of the medical college &
79% hospital is about 2,34,000 sq. feet. But they are not in a
position to cope-up with the demand of ever increasing
number of patients and other institutional requirements.
The foundation of the building is 16 storied one. The
construction up to 5th floor of the building was completed
Infrastructural Development
under Government grant. 6th to 9th floor was completed
Cataract and Cleft-lip/Cleft-palate operation
from their own fund. The remaining 11th to 15th floor
Individual donation for treatment purpose
mainly civil structure except other facilities are required to
be completed, if fund to the tune of Tk. 10.00 crore could
be arranged.
2.1. Contribution for Health infrastructure development
In these circumstances, the General Secretary of Faridpur
2.1.1. Donation to Faridpur Diabetic Association
Diabetic Association requested DBBL for providing
Faridpur Diabetic Association, a non-profit voluntary financial assistance to construct the 11th to 15th floors
socio-medical service organization was established in of the hospital building and to purchase 13 numbers
1983 to serve the distressed humanity who has been of Haemodialysis machines to create a separate
suffering from the curse of non-curable disease of Haemodialysis unit.
diabetes-mellitus. It obtained the affiliation of Diabetic
DBBL granted their appeal and decided to provide a
Association of Bangladesh in 1985 and started its journey
with an out-patient clinic in 1985 and 400 bed Multi- donation of Tk.100,000,000/- (Taka one hundred million)
disciplinary Hospital, Nursing Institute and Medical only to Faridpur Diabetic Association for meeting up
College. In recognition of the service, International the expansion cost of 5 (five) floors (11th to 15th) of the
Diabetic Federation (IDF) was pleased to accord full Medical College & Hospital Building located at Jhiltuly,
membership in 2009. Faridpur Diabetic Association is the Faridpur. In this connection an MOU was signed between
2nd IDF member after Diabetic Association of Bangladesh. Dutch-Bangla Bank and Faridpur Diabetic Association to
Faridpur Diabetic Association provides healthcare disburse the fund in phases subject to the progress of the
services including rehabilitation for all diabetic patients construction work. It is mentionable that an amount of
irrespective of gender-economic and social status. It runs Tk. 70,000,000/- has already been disbursed upto the
the following institutions- year 2016 and the construction work is going on in full
swing.
A) a) 400 - bed Faridpur Diabetic Hospital (Multi
disciplined). Besides these, Dutch-Bangla Bank provided 13 numbers
of German-made Fresenius Brand (Model # 4008S)
A) b) Diabetic Association Nursing Institute.
Haemodialysis machines to Faridpur Diabetic Association
A) c) Diabetic Association Medical College. Medical College Hospital for creating a separate
As stated, the hospital has been providing services to Haemodialysis Unit to serve the dialysis patients affected
both diabetic & non-diabetic outdoor patients those are by kidney disease. The said Haemodialysis machines
around 1,500 per day on an average. Bed occupancy is have already been installed and the Haemodialysis Unit is
around seventy percent (70%) and thirty percent (30%) functioning properly to serve the patients.

ANNUAL REPORT 2016 265

 Dutch-Bangla Bank Haemodialysis Unit at Faridpur Diabetic Association Medical College Hospital (inside view)

Construction work of 5 floors (11th to 15th floor) of the Diabetic Association Medical College Hospital building at Jhiltuly, Faridpur is
going on in full swing. Picture showing the recent progress of the construction work.
2.1.2. Donation to SHEBA Health Center
SHEBA Health Center, a benevolent medical service
provider, is located in BAF Ghati Bangabandhu at
Kurmitola in Dhaka Cantonment. It is run under the
supervision of Bangladesh Air Force Women Welfare
Association (BAFWWA). It has been providing treatment
facilities for the non-entitled class-IV personnel like Aya,
Dai, Sweeper, Guard, Conservancy labor, Anti-malaria
workers etc. of BAF since June 2013.
As a non-political, non-govt. and welfare organization,
SHEBA Health Center is run with the help of donations
from different sources. Besides, in this early stage the
organization requires huge amount of fund to continue
its services smoothly. In this connection, the authority
of SHEBA Health Center requested Dutch-Bangla Bank Photograph of a cleft-lip baby after operation
for donation of an amount of Taka 150,000/- per month.
Considering the situation, DBBL has been donating country, poor cleft patients have very little access to the
plastic surgery. Most of the patients receive no treatment
Tk.100,000/- (Taka one hundred thousand) only on at all.
monthly basis for a period of 03 years effective from May
2014 to SHEBA Health Center for continuing its treatment Considering the sufferings of the cleft lipped boys &
facilities to the non-entitled class-iv personnel of BAF. girls, Dutch-Bangla Bank has taken an initiative to bring
back smile on the face of the boys and girls with cleft-
In this continuation DBBL provided Tk.1,200,000/- (Taka
lips through plastic surgery at free of cost across the
one million two hundred thousand) only in 2016 to SHEBA country under the banner Smile Brighter in 2003. This
Health Center. is a continuous program aiming at performing as much
2.2. Smile-Brighter program operation as possible per year.

Smile-Brighter program is an initiative taken by DBBL DBBLs efforts towards the cleft-lipped and cleft-palate
patients
to bring back smile on the face of the boys and girls with
cleft-lip and cleft-palate through plastic surgery at free In the year of 2016 several cleft-lip and cleft-palate
of cost. DBBL contributed Tk.55,940,000/- for cleft-lip operation camps were arranged in different parts of
and cleft-palate operation under Smile-Brighter program Bangladesh like- Lalmonirhat, Satkhira, Sunamganj,
Brahmanbaria, Dhaka and Gazipur. During 2003 to 2016
since 2003.
more than 5,852 poor cleft-lipped boys & girls have been
Boys and girls cursed with cleft-lips face numerous successfully operated upon across the country under
problems in everyday life such as disruption of formal the Banks Smile Brighter program. Among which 307
education, hassle in attending social ceremonies and operations were done in the year 2016.
restraint while getting married. They live in our society Total number of cleft-lip and cleft-palate operation and
with no destiny, shattered hope and gloomy future. In our expenditure since 2003

Total no. of Total expenditure (Taka

Period
operation in million)
2003-2016 5,852 55.94

307

218 214
No. of operation

165

93

2012 2013 2014 2015 2016

Cleft-lip & Cleft-palate operation of last five years
Photograph of a cleft-lip baby before operation

ANNUAL REPORT 2016 267

 A view of a Cleft-lip and Cleft-palate operation camp organized by DBBL at Kapasia, Gazipur.

2.3. Cataract operation for underprivileged blind people Statistics of Cataract operation of last five years

Visual impairment is an immense social problem in our No. of Expenditure

Year
country. Cataract is the major cause of blindness and 80% operation (Taka in million)
of them can resume vision through cataract operation. 2012 1,200 2.88
A large number of rural poor people are deprived of the 2013 1,500 3.60
opportunity to do away with the problem. Keeping their
2014 1,500 3.60
sufferings in mind, Dutch-Bangla Bank Foundation
2015 1,600 3.84
started the program of operating 12,000 underprivileged
blind people by providing sophisticated cataract surgery 2016 1,900 4.56
(Intra Ocular Lens) throughout the country in phases since
2008. 1,900

Several Camps were arranged under this program in 1,600

Dhaka, Mymensingh, Rangpur, Lalmonirhat, Hobiganj, 1,500 1,500
Sylhet, Magura, Khulna, Coxs Bazar, Laxmipur, Chandpur,
Noakhali, Narayanganj and Kushtia districts. About 1,200
10,005 cataract operations have so far been completed
No. of operation

successfully among which 1,900 operations were done in

2016.

Total number of cataract operation and expenditure

since 2008

Total no. of Total expenditure 2012 2013 2014 2015 2016

Period
operation (Taka in million)
2008-2016 10,005 23.46 Graphical presentation of cataract operation of last five years
As a part of social cause activities to serve the distress humanity, Dutch-Bangla Bank arrange Cataract Operation camps (IOL) at free
of cost for the poor blind patients round the year at different locations of the country.

2.4. Support for medical treatment year. Poor people particularly in the northern region of the
country become the worst sufferers in the chilling cold as
DBBL provide one time financial assistance to those who
have been suffering from diseases for long time and are they can not buy warm clothes due to financial hardships.
not able to bear the treatment cost. In the year 2016 a As in the past this year also Dutch-Bangla Bank has come
total amount of Tk. 3,520,000/- was made as financial forward to stand by the cold-hit people of the country for
assistance to different helpless persons to meet the cost distribution of blankets among the poor.
of their treatment.
Dutch-Bangla Bank has been distributing blankets among
3. Contribution in Disaster Management the poor people of the country for the last many years. In
Dutch-Bangla Bank Limited (DBBL) stands by the this connection DBBL donated total 1,50,000 (one lac fifty
distressed people at the time when natural calamities thousand) blankets in the year 2016.
occur. DBBL provides support to the affected people in
cash and kind for their rehabilitation after the natural Continuing with its yearly tradition, Dutch-Bangla Bank
calamities like cyclone, flood, tornado, landslide, river has donated 1,00,000 (one lac) blankets to the Prime
erosion, devastating fire etc. The donation in kind includes Ministers Relief Fund to address the misery of the poor
food, medicine, water purifying tablets, blankets, GCI and floating people, who are the worst sufferers in the
sheets etc. Some of the contributions of DBBL in this
chilling cold sweeping through many districts of the
sector in 2016 are mentioned below:
country. In this connection, Mr. M Sahabuddin Ahmed,
3.1. Donation of blankets to the cold affected people of Honorable Founder of Dutch-Bangla Bank handed over a
the country sample of blanket to the Honorable Prime Minister Sheikh
The people of Bangladesh usually suffer in the chilling Hasina on December 08, 2016 at Prime Ministers Office,
cold sweeps through many districts of the country every Tejgaon, Dhaka.

ANNUAL REPORT 2016 269

The Honorable Prime Minister lauded the role of Dutch- named Mr. Seth Ibrahim Mohammad Dupley. Under the
Bangla Bank for extending its helping hands to mitigate great leadership of Nawab Sir Samiullah, A. K. Fazlul Huq
the sufferings of the fellow countrymen and added that and H. S. Suhrawardi, who were the President of Anjuman,
this donation is very timely and would inspire others to it steadily grew into a highly respected and successful
stand by the side of the cold-hit people of the country. public institution. For more than 108 glorious years now,
Anjuman has been serving the deprived humanity with a
Dutch-Bangla Bank also donated 10,000 blankets to
Bangladesh Bank for distribution among the cold hit poor high degree of trust, dedication and distinction. Except

people living in the remote area to reduce their sufferings. the burial service (Dafon Sheba) all other services of
Besides, the rest blankets were distributed to the cold Anjuman including free ambulance service, free medical
affected poor people of different district of the country. service, relief program, poverty eradication program,
orphanage program are available to all the poor people
3.2. Donation to Prime Ministers Relief Fund to meet
irrespective of faith, caste and creed.
up emergency need for the distressed people of the
country Anjuman is almost entirely dependent on private charity
(Zakat & Sadaqa) as its source of income. To create an
DBBL donated Tk.20,000,000/- (Taka twenty million)
additional source of income, in view of providing the
only to Prime Ministers Relief Fund to meet up
utmost services to the distressed humanity, Anjuman
emergency need for the distressed people of the country.
has taken up a landmark project to build a state of the art
In this connection, Mr. M Sahabuddin Ahmed, Honorable
Founder of Dutch-Bangla Bank handed over the cheque of high-rise commercial building containing 15 floors (10,000
donation to the Honorable Prime Minister Sheikh Hasina sft per floor), 3 basements, 1,84,000 sft area on its own
on June 27, 2016 at her Gonobabhan residence, Dhaka. land at 42, Anjuman Mufidul Islam Road, Kakrail, Dhaka.

3.3. Donation to Prime Ministers Relief Fund for In order to complete the construction works of the
helping the Flood Affected distressed people of the proposed complex, Anjuman needs to mobilize a huge
country amount of fund from the donors. In this circumstance, the
President of Anjuman Mufidul Islam, requested DBBL for
DBBL donated Tk.7,500,000/- (Taka seven million five
providing financial assistance to construct the imposing
hundred thousand) only to Prime Ministers Relief Fund
building. After discussion with the authority of Anjuman
to mitigate the sufferings of the flood-hit people and
Mufidul Islam and reviewing the project proposal, DBBL
meet up the urgent need of crisis for flood affected people
across the country. In this connection, Mr. M Sahabuddin committed to make financial support/donation of

Ahmed, Honorable Founder of Dutch-Bangla Bank Tk.60,000,000/- in phases to Anjuman Mufidul Islam for
handed over the cheque of donation to the Honorable meeting up the cost of construction of 3 floors (Ground,
Prime Minister Sheikh Hasina on August 07, 2016 at her 1st and 2nd floor) of the Anjuman Mufidul Islam building
Gonobabhan residence, Dhaka. subject to progress of the construction work.

4. Contribution to Social Development Among the committed amount, Tk.20,000,000/- (Taka

twenty million) only has already been disbursed in 2016
4.1. Donation to Anjuman Mufidul Islam
in favour of Anjuman Mufidul Islam to carry on the
Anjuman Mufidul Islam (AMI) started its humble journey construction work. The construction work is going on in
in 1905 in Calcutta, sponsored by a noble philanthropist full swing.
Dutch-Bangla Bank commited to make financial support /donation of Tk. 60.00 million in phases to Anjuman Mufidul Islam, a
charitable organization for constructing a state-of-the-art high-rise commercial building containing 15 floors (measuring 10,000 sft
at each floor) on its own land at 42, Anjuman Mufidul Islam Road, Kakrail, Dhaka. As a part of this, Mr. Sayem Ahmed, Chairman
of Dutch-Bangla Bank handed over a payment order amounting to Tk. 20.00 million to Mr. Mufleh R. Osmany, Trustee of Anjuman
Mufidul Islam.

4.2. Donation for construction of a Bridge (with approach town are facing untold sufferings, especially those who
road at both sides) over Bizana Gang river on are to carry daily necessities to and from hatbazar, go to
Kashba-Kuti road, Brahmanbaria Thana sadar, and communicate with the railway station
everyday and to go schools.
Kashba to Kuti is an important road which connects
Brahmanbaria (Sarail) district with Comilla (Moynamoti). DBBL amply moved after going through the sufferings
Total length of this road is 10.00 km. Kashba Railway of the inhabitants of the locality as well as importance
station is very adjacent to this road. Many light and heavy of the bridge. From the urge of its social commitment
vehicles move through this road daily. A river named and social value of the project, DBBL agreed to provide
as Bizna Gang divides the road into two parts. Over the financial assistance of Tk.49,725,000/- (Taka forty
Bizna Gang there is a 44 meters long Baily Bridge which nine million seven hundred twenty five thousand) only
connects the two parts of the road. But due to excessive inclusive of applicable VAT and AIT for constructing a
use for a long time, the existing Baily Bridge has lost its bridge over Bizna Gang river on Kashba- Kuti Road under
temperaments. Different parts of the bridge have lost Brahmanbaria Road Division, Brahmanbaria through the
its capacity and become useless. Reconstruction work joint venture of Total Design Consultant Limited (TDCL) &
of the Baily Bridge has been done several times to keep M/S Jewel Electronic (JE).
the bridge functioning but due to excessive use it was It is mentionable that the Roads and Highways Division
not so useful. As a result vehicle movement through of the Ministry of Road Transport and Bridges has given
this bridge has become slow and very often accidents its clearance to construct the bridge through a reputed
are being occurred as well as heavy traffic congestion at engineering firm with financial assistance of DBBL. The
starting and closing time of schools, colleges, offices etc. construction work of the bridge was inaugurated on
are found regularly. Communication through this road October 28, 2014. Already an amount of Tk.42,700,000/-
has become hazardous and time consuming. More than only out of the committed amount was paid till now and
15,000 inhabitants of 9 Wards and 22 Mahallas of Kashba the construction work has almost completed.

ANNUAL REPORT 2016 271

 Photograph of Kashba Bridge

Though the construction work of the bridge is completed, retired officers and their family members. They have also
the bituminous carpeting work of the approach road at informed that they have taken the initiative to construct
both sides of the bridge is yet to start and it is understood a 5-storied Mosque complex having modern facilities in
that more time is required to start the bituminous Mirpur DOHS area. The approximate construction cost of
carpeting work of the approach road by Roads and the Mosque has been estimated at Tk.20,000,000/- only.
Highways Division of the Ministry of Road Transport In this connection, they have requested DBBL for providing
and Bridges. As such the facility of the bridge will not be financial assistance to construct the said Mosque.
utilized without execution of the bituminous carpeting of
Mentionable that DBBL since its inception has been
the approach road. To improve the communication system
rendering philanthropic services for the society. As the
as well as public interest, it is required to execute the
part of social causes, the Bank has already achieved
bituminous carpeting work of the approach road at both
laurels from various corners of the society. Considering
sides of the bridge immediately.
the importance of the proposal the competent
Considering the above, the competent authority of DBBL authority of DBBL has approved financial assistance of
has provided financial support of Tk.7,735,000/- only Tk.20,000,000/- (Taka twenty million) only to Army Head
including of applicable VAT and AIT for execution of Quarters, Directorate of M&Q, Dhaka Cantonment, Dhaka
bituminous carpeting work of the approach road at both for constructing the Mosque atMirpur DOHS. The financial
sides of the bridge. Among which Tk.5,500,000/- only was assistance was made in phases as and when required
paid during the year 2016. with the progression of the construction work of this said
Mosque.
4.3. Donation for constructing a 5-storied Mosque
Complex at Mirpur DOHS, Dhaka The mosque has already been inaugurated on March 26,
2016 at the time of Juma Prayer in presence of a large
The authority of Army HQs, QMG Section, Directorate number of devotees but some construction and finishing
of M&Q, Dhaka Cantonment, Dhaka have informed that work is yet to be completed. In this regards DBBL provided
there is no mosque in Mirpur DOHS for performing prayers Tk.5,000,000/- only to complete the rest construction
by the members of Armed Forces, high Govt. officers/ work of the Mosque at Mirpur DOHS area.
4.4. Financial support to Dhaka Metropolitan Police 4.5. Donation to Dhaka Metropolitan Police for meeting
(DMP) for meeting up the construction cost of 2nd up the construction cost of a Modern Multipurpose
Shed at Rajarbag Police Lines, Dhaka
floor measuring about 5,200 sft. of the Modern
Building of newly formed Counter Terrorism Unit of The Commissioner of Dhaka Metropolitan Police (DMP)
DMP informed that there is no wide hall room at Rajarbagh
Police Lines under Dhaka Metropolitan Police to organize
Counter Terrorism Unit has been formed under DMP for various programs such as, meetings, seminars and
workshops, addressing to the force by the Honble Home
control and restrict the militancy, fundamentalism and
Minister and Honble IGP, important meetings on law and
different special crimes. A new modern building is being order situation, social welfare activities of the force etc.
constructed at Minto Road, Dhaka for the accommodation He also informed that they have undertaken a project
of this unit. As per the estimation of the engineers, to construct a Modern Multipurpose Shed at Rajarbag
about Tk.20,000,000/- (Taka twenty million) only will Police Lines, Dhaka and the construction work of the
be required for each floor. In this connection, they have shed has already been started. As per their estimation,
Tk.6,500,000/- only is required for the construction work.
requested DBBL to provide financial support for meeting
In this connection, he has requested DBBL to provide
up the construction cost of a floor of the proposed financial support of Tk.6,500,000/- only for the said
building of the Counter Terrorism Unit of DMP at Minto purpose.
Road, Dhaka.
Considering the importance of the proposal the
Considering the importance of the issue DBBL provided competent authority of DBBL has approved financial
support of Tk.6,500,000/- (Taka six million five hundred
financial support Tk.20,000,000/- (Taka twenty million)
thousand) only to Dhaka Metropolitan Police Head
only to Dhaka Metropolitan Police for meeting up the Quarters for meeting up the construction cost of a Modern
construction cost of 2nd floor measuring about 5,200 sft. Multipurpose Shed at Rajarbag Police Lines, Dhaka. The
of the Modern Building of Counter Terrorism Unit of DMP. shed was inaugurated on 1st February, 2016.

Mr. Md. Asaduzzaman Mia,bpm,ppm, Commissioner of DMP is seen inaugurating the multipurpose shed at a simple ceremony held on
1st February, 2016 at Rajarbag Police Lines, Dhaka.

ANNUAL REPORT 2016 273

5. Contribution to environmental the road islands and footpaths from Kakrail Crossing to
beautification Hotel Ropashi Bangla Crossing of Dhaka metro as a part
of city beautification project. Taka 589,800/- (Taka five
Dutch-Bangla Bank constructed a monument in the hundred eighty nine thousand and eight hundred) only
crossing of Hotel Ruposhi Bangla and State Guests was spent in last year for maintenance of the monument
House Jamuna. DBBL is also engaged in beautification of and fountain.

DBBL monument and fountain in the crossing of Hotel Ruposhi Bangla and State Guests House Jamuna.

6. Contribution for creating awareness on Drug addiction- a menace to destroy life, Plant tree- save
different social issues environment etc.

The short dramas focusing on above social issues

DBBL has been engaged in creating awareness through
are telecast on several electronic media for creating
electronic and print media since long on different social
awareness among the mass people. Considering this
issues like Hope and love make us lovely, Willpower is Dutch-Bangla Bank contributed Tk.5,990,000/- only in
enough to do a good job, Good behavior with mentally 2016. Some of the initiatives of DBBL regarding creation of
retarded persons- a moral duty, Human for humanity, awareness are enumerated here under:
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Avkvq, `k evuP fvjvevmvq|

2. fvjv KvR Kivi Rb c~ecwiKbvi cqvRb

cobv, BQvB h_:

gv, gvZfvlv I gvZf~wgi Rb G`ki gvbyliv c~e KZ ZvMB

bv KiQb| Avgiv wK Gi h_vh_ g~jvqb KiZ ciwQ ?
fvlv Av`vjb I gywhyi PZbv wbq Mov G evsjv`ki
KZB ev DbwZ nqQ| Pvwiw`K AvR ay AwiZv, AivRKZv
I AmZZv| Gfve Avi PjZ `qv hvqbv| G`ki ZiYiv
wK cvibv `kUvK e`j w`Z, Giv wK cvibv mKj Af
ZrciZvi wei iL `vuovZ| `k cgi PZbv wbq `p
cwZv KiZ ne h, AvR _K Kvb Abvq bq, Avgiv
bvqi mv_B _vKev|

ANNUAL REPORT 2016 275

ZeB G `kwU GKw`b mvbvi evsjv wnme ic wbe| GB
Av`k `k Movi PZbv mevi gvS RvMZ KiZ WvP&-evsjv
evsK wewfb BjKUwbK wgwWqv, wcU wgwWqv I iZc~Y vb WvP&-evsjv evsK GB wekvmK mevi gvS Qwoq w`Z wewfb
BjKUwbK wgwWqv, wcU wgwWqv I iZc~Y vb wej evW
wej evW vcbi gvag cPvi Ki AvmQ _vKev bvqi
vcbi gvag cPvi KiQ cwZex`i cwZ my AvPiY mevi
m| bwZK `vwqZ|
5. gv`Kvmw Rxeb _K Rxeb Ko bq:
gv`Kvmw AvR Avgv`i hyemgvRK asmi w`K wbq hvQ| h
eqm ZiY`i `k I wbRK mvgbi w`K GwMq bqvi j
e _vKvi K_v m eqm AvR Zviv nZvkvM nq gv`K Avm
nq coQ| gv`Kvm ewiv ay wbRivB wbR`i RxebK b
KiQbv eis Gi bwZevPK cfve cwievi, mgvR I ivi Dci
coQ| dj mgvR AwiZv weivR KiQ|

4. cwZex`i cwZ my AvPiY mevi bwZK `vwqZ:

cwZexiv mgvR memgqB Aenjvi wkKvi nb| wK GivI

Avgv`i mgvRi GKwU Ask Ges G`iI mgvR myzfve evuPvi
AwaKvi iqQ| ZvB cwZex`iK Avi Aenjv bq, Zv`i
mv_ Avgv`i memgq mnhvwMZvg~jK I my AvPiY Kiv DwPZ|
ZvB gv`KK wbirmvwnZ Kivi j WvP&-evsjv evsK wewfb the human values. Thats why men/women come forward
BjKUwbK wgwWqv, wcU wgwWqv I iZc~Y vb wej evW for the welfare of society and country as well. DBBL has
vcbi gvag cPvi Ki AvmQ gv`Kvmw Rxeb _K Rxeb taken a move on the theme to make awareness among
Ko bq | the masses to promote moral values and patriotism. A
campaign has been launched through electronic media,
6. MvQ jvMvb, cwiek evuPvb: print media and bill boards by the DBBL carrying the
slogan Hope and Love make us lively.

ii. Willpower is enough to do a good job

Men are destroying the green environment through

cutting trees and killing birds. A lot of preparations are
needed to perpetrate such misdeeds. But we can free
the birds from cage at our own wish. There is no need of
pre-planning to do such good jobs, rather willpower is
enough. DBBL has taken a move on the theme to make
awareness among the masses. A campaign has been
launched through electronic media, print media and bill
boards by the DBBL carrying the slogan Willpower is
enough to do a good job.

iii. Uphold justice

In the past, the citizens of this country sacrificed a lot

to the cause of mother, mother-tongue and mother-
land. Have we properly evaluated their contribution?
Established on the spirit of language movement and
liberation war, Bangladesh has not achieved desired
development. Chaos, dishonesty and other vices have
engulfed the country. But it cannot be tolerated further.
The young generation should come forward to change the
situation and resist all evil forces. There must be a strong
determination in favour of justice and no compromise
with the injustice. This country will be a true Golden
Bengal with accomplishment of such promises. Thats
cvKwZK fvimvg iv_ ekx Ki MvQ jvMvbvi Rb Avgv`i
why a campaign has been launched through electronic
mKjK GwMq AvmZ ne| GRb cqvRb Avgv`i mwwj^Z
media, print media and bill boards by the DBBL carrying
D`vM I mPZbZv| `ki RbMYK mPZb Kivi j
the slogan Uphold justice.
WvP&-evsjv evsK wewfb BjKUwbK wgwWqv, wcU wgwWqv I
iZc~Y vb wej evW vcbi gvag cPvi Ki AvmQ iv. Good behaviour with mentally-retarded persons, a
MvQ jvMvb, cwiek evuPvb | moral duty

Mentally-retarded persons are neglected in our society.

CREATING AWARENESS ON SOCIAL ISSUES But they are part of our society and they have due right to
i. Hope and Love make us lively live with honour. So there should not be any negligence
towards such persons, rather we should extend
Hope is a sine qua non factor in human life but all hopes cooperation in all aspects to them. A campaign has been
cannot be fulfilled. One dream falls apart and another launched through electronic media, print media and bill
one rises. Life goes through a topsy-turvy. Amid such a boards by the DBBL carrying the slogan Good behaviour
notion, respect, love and responsibility grow to support with mentally-retarded persons, a moral duty.

ANNUAL REPORT 2016 277

v. Drug addiction - a menace to destroy life
BA No. & Name of the Martyred Name of the
SL
Drug addiction has been ruining our youth generation. Army Officers Survivor
The age which is supposed to build a country towards
prosperity is being trapped by drug addiction. Drug 1 BA-2480, Major Mokbul, EB Tahira Nipa
addicted people are not only destroying their lives, they
are also ruining the family bondage and society fabrics BA-2790, Major Azizul Hakim,
2 Mrs. Aflima Aziz
creating imbalances in the society. DBBL has launched a Engineer
campaign through electronic media, print media and bill
boards carrying the slogan Drug addiction-A menace to BA-4711, Major Syed Idris Iqbal,
3 Dr. Taslima Rafiq
destroy life. Engineer

vi. Plant tree, save environment BA-5108, Major Abu Syed Kazi Ibrahim
4
Gazzali Dastagir Dastagir
We must come forward to plant trees for the sake of
environment balance. We need initiatives and awareness. BA-5987, Captain Mohammed
DBBL has launched a campaign through electronic media, 5 Tasnuva Maha
Tanvir Haider Noor
print media and bill boards carrying the slogan Plant tree,
save environment. In this connection DBBL donated Tk. 2,400,000/- (Taka
two million four hundred thousand) only in the year 2016.

7. Donation on account of miscellaneous 7.2. Donation to Law and Order Coordination Committee
purposes: of Dhaka Metropolitan Police for installing CCTV
Cameras under Surveillance Project
7.1. Contribution to the bereaved family members of the
martyred Army Officers killed in BDR carnage Law and Order Coordination Committee (LOCC) of
Gulshan Police Station under Dhaka Metropolitan
A good number of the brilliant officers of Bangladesh Police informed that CCTV Surveillance Project initiated
Army and some of their family members were brutally by LOCC in partnership with Dhaka Metropolitan
killed at the then BDR Headquarters at Pilkhana, Dhaka by Police, aiming at ensuring safety and security to the
some mutineers on February 25 & 26, 2009. As the nation community by installing CCTV Cameras. The project
would include installing IP CCTV Cameras in all entry and
mourned the loss of these valiant officers, Dutch-Bangla
exit points, main junction and thoroughfare roads, key
Bank made one-time donation of Tk. 2,500,000/- towards establishments primarily in Gulshan, Banani, Niketon
assisting the bereaved family members of the martyred and Baridhara Residential & Diplomatic Zone. Under the
Army Officers through Prime Ministers Relief Fund. The project they would also envisage installing 900 CCTV
Honourable Founder Chairman of DBBL handed over the cameras.
cheque for Tk. 2,500,000/- to the Prime Minister on 10th
A total of 100 cameras (under the first phase) had already
March, 2009. been installed at all entry and exit points. Looking at the
success of the first phase, a revised and expanded project
Dutch-Bangla Bank with a plan of long term financial
had been undertaken with an estimated budget of Tk. 12
assistance for the bereaved family members, decided Crores. To implement the project, they requested DBBL to
that it would make a donation of Tk. 40,000/- per provide a financial support of Tk.2,500,000/- only.
month totaling Tk.480,000/- (Taka four hundred eighty
Considering the issue of public safety and security, the
thousand) only per year to every bereaved family to
competent authority of DBBL agreed to provide financial
continue for the next 10 (ten) years starting from 2009. support of Tk.2,500,000/- only to Law and Order
Coordination Committee of Gulshan Police Station under
The survived members of the following 5 martyred army
Dhaka Metropolitan Police. The cheque of the financial
officers have been getting Tk.480,000/- (Taka four support was handed over in a simple ceremony organized
hundred eighty thousand) only each per year from Dutch- by Dhaka North City Corporation in its office on the 2nd
Bangla Bank since 2009: February, 2016.
 Mr. K. S. Tabrez, Managing Director of Dutch-Bangla Bank is seen handing over the cheque of financial support to Mr. Annisul Huq,
Mayor of Dhaka North City Corporation. Mr. Md. Sayedul Hasan, Deputy Managing Director of DBBL was also present in the occasion.

7.3. Contribution to reduce the sufferings of the helpless 7.4. Contribution to Old Care Home (Briddasram), Jessore
prisoners through legal assistance for ensuring better living facilities to the old and
helpless women
Legal Assistance to Helpless Prisoners (LAHP) is a non-
profitable, non government organization which provides Old Care Home (Briddasram) was established at Shomspur
legal assistance to helpless prisoners and persons who village of Kotwali upazila under Jessore district. At present
have little or no knowledge of court proceedings. The 20 aged, helpless and poor women of its surrounding
organization has also extended assistance to prisoners
areas have been living in this Briddasram. President of Old
who have been detained in custody for years without any
Care Home, has built a house for living of such old women
specific case or did not have the means to proceed with
which is too little than the requirements. For better living
their case because of dire financial reasons.
of the old and helpless women, now a huge amount of
LAHP was funding its activities from resources of its fund is needed for providing food, shelter, treatment,
members and contributions from generous individuals. medicine as well as constructing a residential unit. As
The response to the service has made the organization stated, now the authority is facing difficulty to run the
acknowledge the fact that a large segment of the Old Care Home smoothly due to financial constraints and
population is deprived of legal coverage due to financial has requested Dutch-Bangla Bank for financial assistance.
limitation. In this connection, the Chairman of LAHP
requested Dutch-Bangla Bank to make financial Considering the importance of the proposal the
assistance for enabling the organization to lessen the competent authority of DBBL has approved financial
sufferings of the helpless prisoners. support of Tk.500,000/- (Taka five hundred thousand)
DBBL considered the issue and then contributed an only to Old Care Home (Briddasram), Vill: Shomspur,
amount of Tk.1,500,000/- (Taka one million five hundred PO: Teerer Hat, PS: Kotwali, Dist: Jessore for ensuring
thousand) only to Legal Assistance to Helpless Prisoners better living facilities to the old and destitute women
(LAHP) to reduce the sufferings of the helpless prisoners by providing food, shelter, treatment and constructing a
through legal assistance. residential unit.

ANNUAL REPORT 2016 279

 A few of many memorable incidents and illustrations of the impact of DBBL
scholarship program are described here for our valued clients and stakeholders.
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^c c~iYi c_ hme wkv_xiv.... Avgv`i cwievi nvbv w`j GK wnsm nvqbv hvi wbgg _vev _K
iv cvqwb Avgv`i cwievi| RGmwm Z G+ cq hLb 9g
WvP&-evsjv evsK Zvi ew Kgm~wPi AvIZvq Avw_Kfve AmQj kYxZ DxY nB ZLb Avgvi evev `~ivivM Kvvi Avv
A_P gavex nvRviv Qv-QvxK ew w`q AvmQ| Gme Qv- nq gZzeiY Kib| evevi gZzZ Avgiv wbevK nq Kuv`ZI
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hv bj h Kviv PvL Rj Avme| mme Qv-Qvxiv Zv`i cwoq Ges gv Kuv_v mjvB Ki msmvi LiP gUvZb| ZvB
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wKQzUv njI Q`gq KiZ WvP&-evsjv evsKi z` cqvm njv ZLb AvZxq ^Rb`i AbKB AvgvK jLvcov e Ki w`q
G wkvew Kgm~wP| hme gavexiv AKvj Si co hvwQj Abi `vKvb KvR cvVvbvi Rb gvK civgk `q| wK
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Ki evuPvi Avkvq eyK evuaQb Zviv| Zv`i gbi Awfewjv GwMq bIqvi j wbRB KVvi cwikg Kiv i Kib | ^c
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A_i| ZvB Avwg eemvq wkv wefvMi Qv wnmveB jLvcov
covbv Ki gvqi `ytL K jvNe KiZ Pvq ivnvZ Pvwjq hZ _vwK Ges ZLb _K gbwi Kwi h Avwg evsKvi
nev| gvgv I wkK`i mnhvMxZvq Rxeb msMvg GwMq hZ
_vwK Ges 2016 mvj Avwg Mvb wRwcG-5 cq Gm.Gm.wm
cixvq DxY nB|
cieZxZ `ki ^bvgab wkv cwZvb bUiWg KjR covi
myhvM cvB| LeiUv b Avgvi gv AvgvK Rwoq ai Kvbvq
f cob GB fe h, UvKvi Rb wK Avgvi DP gvawgK
covjLv ne bv? ZLb Avwg fvewQjvg h GLvbB wK Avgvi ^c
c~iYi Awfhvv _g hve?
GgbB GK mgq cwKvZ WvP&-evsjv evsKi ewi wevcb
`L Ave`b Kwi Ges Pzov fve wbevwPZ nB| WvP&-evsjv
evsKi GB ewwU AvgvK Rxebi bvbv cwZK~jZv gvKvejv
Kivi gZv kw I mvnm hvMve| Avwg Avjvni `ievi c_g
KZZv I Kwiqv Av`vq KiwQ Ges Gici KZZv cKvk
gv: ivnvZ ivbv KiwQ WvP&-evsjv evsKi cwZ| GB evsKwUi cwZ iBj `q
wbsovbv GK ivk fvjevmv I f Kvgbv|
ivnvZ 2016 mvj Gm.Gm.wm cvk Ki WvP&-evsjv evsKi ewi
Rb wbevwPZ nq| eZgvb m XvKvi bUiWg KjR eemvq
wkv wefvM 1g eli Qv| jLvcov Ki m evev gvqi ^c On way to fulfill the dreams of the learners
c~iY Ki `ki Dbqb AMYx f~wgKv ivLZ Pvq| ivnvZi
gyLB kvbv hvK Zvi wbRi K_v:- Dutch-Bangla Bank Limited (DBBL), under its scholarship
program, has been awarding scholarships to thousands of
Avwg wbgwe I `wi` cwievii mvb| Avgvi evev dwi Ki meritorious students in need of financial aid in studying
kvK-mw wew KiZb Avi gv Kuv_v mjvBqi KvR KiZb| at different levels of education. Talking with the family
`yB fvB-evb mn Avgv`i cwievii gvU m`m msLv 4 Rb| members of the students, we came to know the sad
Avgv`iK wbq evev-gvqi AbK ^c, AbK Avkv h mvbiv history of their family. The touchy stories brought a tear
jLvcov wkL GKw`b AbK eo ne| Avgv`i jLvcovi to every bodys eye. The students are fighting poverty
LiP mn Abvb LiP hvMvbvi Rb evev cwZw`b Avgv`i Nyg and conquered the suffering and came to the long. To
_K IVviI AbK AvM KvRi Rb ei nq hZb Ges make their way easy, the Dutch-Bangla Bank Limited
AbK ivZ Aewa dwi Ki eovZb| mvivwU w`b KVvi cwikg (DBBL) initiates the scholarship program. The meritorious
KiI Avgv`i fwelZi w`K ZvwKq Zvi Kvwfve wZwb students who were being dropped out because of poverty,
Avgv`iK KLbv eySZ w`Zb bv| Afve-AbUbi gaI GK the programs salvaged them to survive. They are finding
a new lease of hope. Some of their expressions are wPwKrmK nq `yt`i mevq wbRK wbqvwRZ KiZ
mentioned here: Pvb kviwgb
Rahat wants to remove mothers pain
Md Rahat Rana was selected for Dutch-Bangla Bank
scholarship in 2016. Now, he is a first year student in
Business Studies of Notre Dame College in Dhaka. After
completing education he wants to fulfill his parents
dream and also be a very good citizen to contribute in
the development of the country. Now the story could be
shared by himself.

I came from a very poor family. My father was a vegetable

vendor and my mother was sewing katha. We are four
in total with two brothers and sisters in the family. My
parents have a dream about us that after completing
study, we will establish ourselves properly. For completing
our study and another cost, my father woke up very early
kviwgb Avvi
in the morning, sells vegetables and comes late night. He kviwgb Avvi XvKvi eMg e`iybmv miKvwi gwnjv KjRi
never feels us that he is working very hard to establish GKv`k kYxi wevb wefvMi GKRb Qvx| 2016 mvj AbywZ
our good future. Everything was ok despite various odds Gm. Gm. wm. cixvq wR.wc.G. 5 (Mvb 5) cq DxY nq|
but then our family faced a serious blow. When I passed kyay ZvB bq gavex GB Qvx cg I Ag kYxZI wR.wc.G 5
JSC examination successfully and admitted in class-Nine, cq Zvi gavi ^vi iLwQjb| wK Zvi covkybvi mvdj
then my father was attacked by cancer and expired. I ARbi wcQb h KwVb I wbgg eveZv AwbwnZ wQj ZvB
forgot crying in my fathers death. After my fathers GLvb eYbv Kiv njt
death, we survived on our two siblings tuition salary and
my mother also sewed katha. So it was totally impossible wZb evb GK fvB I wcZv-gvZvmn 6 m`mi cwievi Zvi
to continue our study. Then our relative advises us to get a wcZvB GKgv DcvRbg ew| Zvi wcZv XvKv kni fvb
job in a shop. But my mother did not listen to any advices Mvox Pvwjq cwievii mKj m`mi fiY cvlb I Qj
and started to work hard to fulfill her dream about us. gq`i covkybvi LiP wbevn KiQb| evb`i ga kviwgb
QvovI Zvi eo evb RMbv_ wekwe`vjq evsjv wefvM I gRv
I wanted to be an engineer. So I needed more money evb XvKvi Kwe bRiyj KjR BsiRx wefvM AaqbiZ| Zvi
to fulfill it. So I continued my study in commerce and I wcZv fvb Pvwjq mvb`i covkybvi LiP hvMvZ w`b ivZ
decided to be a banker. With the help of my uncle and gvbyli vi vi KvRi mvb QzU ewoqQb| wbR Lq
my teacher I continued my study. In 2016, I passed SSC bv Lq KVvi cwikg Ki mvb`i Avnvi I covkybvi LiP
examination with golden GPA 5. hvMvQb| ZviciI mvb`i covkybv ei wmv bbwb|
Later, I get a chance to study in the countrys famous
KLbI Gic AvksKv `Lv w`j gv wbRI KvRi mvb wewfb
education institution Notre Dame College. After getting
RvqMvq ewoq ciZb hb Kvb fve Zv`i covbv e bv
this news, my mother cried because she thought that I
nq|
cannot continue my study due to lack of money. Then I eis wbR`i gyLi LveviUyKzI mvb`i gyL Zzj w`Zb hb
thought whether my study will stop here? Zv`i covbvi Kvbv wZ bv nq| Gm. Gm. wm.- cixvi dig
At that very crucial moment, I applied for the Dutch-
c~iYi Rb 7,000/- (mvZ nvRvi UvKv) cqvRb ci kviwgbi|
Bangla Bank Education Scholarship and got selected
Avi GB mvZ nvRvi UvKvi cwigvYUv hb mvZ KvwU UvKvi PqI
finally. The Dutch-Bangla Bank Education Scholarship
ekx fvi wnme ci Zvi wcZv-gvZvi Dci| Zvi wcZv-gvZv
will encourage me and help me to be very brave in my
GLvb ILvb nvZ cZ AbK K GB mvZ nvRvi UvKv hvMvo
critical juncture. I pray to the Almighty , the Supreme
KiwQjb hb Zv`i GB gavex gq Gm. Gm. wm. cixvq
Almighty and also I am cordially thankful to the Dutch-
AskMnb KiZ cvi| Aekl wcZv-gvZvi K `~i nq Zvi Gm.
Bangla Bank Limited for giving me such kind of chance.
Gm. wm. cixvi fvj djvdj `L| wK Zv`i GB Avb` UzKz
I offer a lot of good wishes and love from the core of my
AveviI wdK nq hvq kviwgbi fwelZi covbvi LiPi
mind for the Bank.
K_v fe| Ggb GK AwbwZ gyn~Z WvP&-evsjv evsKi wkv

ANNUAL REPORT 2016 281

ewi wevcb Zvi PvL co| cieZxZ m GB ewi Rb SSC examination. But their pleasure could not sustain
Ave`b Ki I GBP.Gm.wm. chvqi ewi Rb gbvbxZ nq| when they thought about Sharmins future educational
GLb m GBP.Gm.wm cixvqI fvj dj Ki fwelZ Wvvi expenses. During this uncertain period, they had seen
nIqvi ^c `L Ges fvj Wvvi nq `yt`i mev Ki wcZv- an advertisement of Dutch-Bangla Bank Educational
gvZvi gyL Dj Ki Zuv`i K ^v_K KiZ Pvq| WvP&-evsjv scholarship. Later she applied for the scholarship and
evsK c` wkv ew h_vh_ eenvii gvag GBP.Gm.wm. got selected. Now she is dreaming to serve poor people
chvqi covbvq AviI gbvhvMx nq m Zvi Afx j after becoming a good doctor. She wants to brighten
cuQvZ Pvq| her parents face and remove their pain by serving poor
people as a very good doctor. She wants to fulfill her goal
WvP&-evsjv evsKi cwZ KZZv cKvk Ki m ej, Avgvi through attentive study by utilising Dutch- Bangla Bank
fwelr Rxeb MVb GLb GKgv mnvqK GB WvP&-evsjv evsK educational scholarship.
c` wkv ew| GB wkv ew c`vbi gvag Avgvi fwelr
covbvi hveZxq AwbwqZv _K gyw `vb GB evsK h I remain thankful to Dutch-Bangla Bank as it built my
mnvqZvi nvZ evwoqQ Zvi Rb Avwg WvP&-evsjv evsKK future career. By giving this educational scholarship this
`qi Atj _K abev` I KZZv vcb KiwQ Ges GB Bank helps me to remove all kinds of uncertainty in my
cwZvbi Divi mdjZv Kvgbv KiwQ| study. So I am very thankful to this bank from the core of
my heart and expect further development of this great
kviwgb Avvi Bank.
eMg e`iybmv miKvwi gwnjv KjR, XvKv
GKv`k kYx, wevb wefvM, Gm. Gm. wm. 2016 Sharmin Akter
Begum Badrunnessa Govt Girls College, Dhaka
Class: XI, Group: Science, SSC 2016
Sharmin wants to be a doctor, treat poor
Sharmin Akter is a student of class eleven (Science Group)
in Begum Badrunnessa Govt Girls College. In 2016 she
passed SSC examination with GPA 5 (Golden 5). Not only
she shined as a brilliant student but also obtained GPA gvwbKi ^c cwZwZ cKkjx nIqvi
5 in class five and class eight. She endured numerous
critical impediments against her success, these are
described below. Her father was the lone bread-winner
with three sisters, a brother, in a six-member family. Her
father is steering the family and educational expenses of
the children through driving van in the city.

Besides Sharmin, her elder sister also studies in English

Department of Jagannath University and another sister
also in English Department in Kabi Nazrul Govt College.
Her father moves from here to there to manage his
childrens educational expenses. He works very hard to
help survive the family and also to manage educational
expenses. Even after that he never thought to stop his
childrens study. Their mother also began to move for
some works to ensure the education of their children. gv: gvwbK kL

He also serves hygienic food to his children so that they Avgvi bvg gv: gvwbK kL| Avwg Rvgvjcyi Rjvi Bmjvgcyi
remain healthy. Sharmeen needs seven thousand taka DcRjvi hgybv b`xi ZxieZx exib`bi cvov Mvgi GK
(tk. 7,000/-) to fill up SSC form. And managing this `wi` cwievii mvb| Avgiv Qq fvB-evb hvi ga Avgiv wZb
amount became a burden to her parents as if it was fvB-evb jLvcov KiwQ| Avgvi evev wQjb KviLvbvi wbg
more than Tk 7.0 crore. After searching different places, Avqi GKRb kwgK| wZwbB wQjb Avgv`i cwievii GKgv
her parents managed this seven thousand taka so that DcvRbkxj ew Ges Zvi ^ Avq Avgv`i Rxeb hvcb KiZ
she could appear at SSC examination. At last all sorrows nZv| Avwg Mvgi GKwU cv_wgK we`vjq _K cg kYx ch
were over when her parents saw her brilliant result in jLvcov Ki vbxq GKwU gvawgK we`vjq l kYxZ fwZ
nB| Ggb mgq Avgvi evev Kvvi Avv nq gZzeiY Kib| takes all the responsibility of our family. But it was
wcZvi gZzZ Avgv`i mg msmvi Ki Pv`i XuvKv co hvq| becoming too tough to maintain the cost of our study.
GB cwiwwZZ msmvii m~Y `vwqZ wbZ nq Avgvi gvK| After that, I studied from class six to ten with a full free
wK Zvi c Avgv`i covjLvi LiP Pvjvbv KwVb nq co| studentship by the help of our principal.
Zvici we`vjqi cavb wkKi KvQ Ave`bi cwZ Avwg Under such hardship, I passed SSC examination with
l _K `kg kYx ch jLvcov Kwi m~Y webv LiP| GPA 5 and got admitted at Civil Technology in Dhaka
Polytechnique Institute in 2016. On the other hand, we
Gfve e Ki ga w`q 2016 mvj wRwcG-5 cq Gm.Gm. lost our family land due to erosion of Jamuna river. After
wm. cixvq DxY nq XvKv cwjUKwbK BwUwUDU wmwfj losing the family land and house, I was totally in doubt
UKbvjwRZ fwZ nIqvi myhvM ARb Kwi| Abw`K GB to continue my study in this capital city. My family was
2016 mvjB hgybv b`xi Kivj Mvm Avgv`i kl m^j gv_v so poor to offer me Tk 500/- in a month. Then I informed
MuvRvi VvB cwK wfUv UzKz wejxb nq hvq| wfUv-gvwUnxb it to my teacher and he managed two tuitions through
cwievii c Rxeb aviY KivB hLvb KKi mLvb Avgv`i another student for me. But I needed some more money
jLvcovi LiP RvUvev wK Ki? ZvB kni jLvcov Kivi to support my educational expenses. At that critical
gZv fimv cvwQjvg bv| Avgvi cwievi GZUvB `wi` h, AvgvK moment, a friend by the name of Dutch Bangla Bank
gvm cuvP kZ UvKv w`Z Amg_| Zvici Avgvi GK kq Limited offers his hand. Dutch Bangla Bank Limited
wkKi KvQ Avgvi mgmvi K_v Lyj ejj wZwb Zvi GK education scholarship removed my pains by giving this
scholarship and inspired me to move on. Dutch Bangla
Qvi gvag kni `ywU wUDkwbi eev Ki `b| wUDkwbi
Bank Limited gives the chance to study like me and
A wKQz UvKvq Avgvi jLvcov Pvwjq hvIqv KKi nq co|
many more students across the nation irrespective of
GQvov KjRi AvbylwK LiP eve` AvivI wKQz UvKvi cqvRb religion and color. This bank works as a catalyst to remove
nq co, ZLb Avgvi GB wec`i mgq mnvqZvi nvZ evwoq illiteracy from the country. After getting this scholarship I
`q WvP&-evsjv evsK bvgK cig DcKvix ez| WvP&-evsjv evsK will grow myself as a civil citizen and help others in future.
AvgvK wkv ew c`vb Ki Avgvi A_ K AbKUvB jvNe Ki
w`qQ Ges mB mv_ hywMqQ Akl AYyciYv | ay AvgvK At last, I am very thankful to the Dutch Bangla Bank
bq Avgvi gZv AmsL `wi` wkv_x`i wkv ew c`vb Ki Limited for the scholarship and wish its further
jLvcovi myhvM Ki w`qQ WvP&-evsjv evsK| RvwZ, ag, development.
eY wbwekl mKjK wkvi Avjvq AvjvwKZ nIqvi myhvM
w`qQ WvP&-evsjv evsK| evsjv`ki wbiiZv `~ixKiY mnvqK GKRb ^cv I Zvi cwievii M
wnmve KvR Ki hvQ GB evsKwU| GB wkv ew cq Avwg
Aviv gbvhvM mnKvi Avgvi jLvcov Ki GKRb Kgg
mybvMwiK wnme wbRK Mo Zzjev, hvZ AvwgI GKw`b
Avgvi gZv Amnvq`i w`K mnhvwMZvi nvZ evwoq w`Z cvwi|
cwikl, Avgvi GB wec`i mgq wkv ewi mnvqZvi Rb Avwg
WvP&-evsjv evsKi KvQ KZZv cKvk KiwQ Ges evsKi
Divi DbwZ Kvgbv KiwQ|

Maniks dream to be an established

engineer
My name is Md Manik Sheikh. I am a son of very poor
family from Birnandan para village under the Islampur
upazila at Jamalpur district in the bank of Jamuna river.
We, the six siblings and three of them are continuing
study. My father was a very low-paid worker in a factory.
He was the lone bread-winner of our family and we had to ^cv cvifxb
survive with his scanty income. After completing primary
education from a school of our village I got admitted in
mvivw`b KVvi cwik&g Ki evev hLb Ni wdiZb ZLb Zuvi
class six in our local secondary school. Within this time, Kv `nUv `Lj gb nZv KZw`b wZwb Lvbwb ------evevi
my father had died of cancer. My fathers death brought Ki K_v e KiZ wMq ^cvi Giyc AwfewB dzU DVwQj
much anguish to our family. In this situation, my mother Zvi gyL |

ANNUAL REPORT 2016 283

^cv cvifxb, w`bvRcyi Rjvi nvwKgcyi DcRjvi GK cZ Avgvi evev-gv I WvP&-evsjv evsKi ewZ wbwnZ gnr Dk
Mvgi AwZ wbwe cwievi Rb bqv GB A`g gavex Qvx c~iY KiZ PvB|
GLb XvKv wekwe`vjqi MYhvMvhvM I mvsevw`KZv wefvM
AaqbiZ| evev-gv I Pvi evbi msmvi evevB GKgv Avgvi gZ nvRvi nvRvi gavex I `wi` Qv-Qvx`i cvk
DcvRbg ew, whwb eqm nIqv mI w`b gRyii KvR Ki `vwoq Ges Zv`i wkv Rxebi cwZeKZv jvNe Ki WvP&-
cwievii fiY cvlYi fvi enb KiQb| evevi mvgvb Avq evsjv evsK h `v vcb KiQ Zv wbtm`n cksmvi `vex
viv mvb`i covbv Zv `~ii K_v, `y ejv Avnvi RvMvbvI ivL| GB evsKi KvQ Avwg I Avgvi cwievi wPiKvj KZ
^ci gZv wQj| cvqB Aavnvi-Abvnvi _vKZ nZv Zv`i| _vKev|
eQi GKwU cvkvK KbvI me nZv bv| ^cv cvifxb
cwievii Ki K_v ejZ wMq Ak wm bqb GfveB e MYhvMvhvM I mvsevw`KZv wefvM, XvKv wekwe`vjq
Kijb Zvi wbRi Kvwnbx- GBP. Gm. wm.-2015

mvivw`b KVvi cwik&g Ki evev hLb Ni wdiZb ZLb Zvi

Kv `nUv `Lj gb nZv KZw`b wZwb Lvbwb| Avi gb gb A tale of Swapna and her family
fveZvg Avi KZw`b Gfve cwikg Kij Avgv`i Afve gvPb When my father returned home and I watch his tired
ne? Kx eje Avi Rbg `y:Lx gvqi K_v, wZwb Zv mviv RxebB body, I feel that he is starving for many days when tells
Avgv`i Rb K KiQb| gvqi cwiwnZ Qov kvoxUv Avi about her father such kind of explanation bloom in her
Aavnvi-Abvnvi _vKv gyLUv `Lj K Avgvi gbUv nvnvKvi face.
KiZ| KZBbv ZvM ^xKvi KiQb Avgv`i Rb| gvS gvS
Swapna Parvin, a very brilliant student of a very lower
gb nZv wKQz wKQz gvbyl cw_exZ Rb bq ayB K cvIqvi
income family from a village under Hakimpur upazila of
Rb| Avgv`i QvU QvU PvIqv cvIqv jvK cvavb w`Z Dinajpur district is now studying at Mass Communication
wMq AvR Zuv`i GB Aev| evev-gvi AbK mc, h KiB and Journalism Department in Dhaka University. Her
nvK Avgv`iK gvbyli gZ gvbyl Ki Zyjeb hb Zv`i gZ father is the only bread-winning member in a six-member
Avgv`iKI fwelZ GZ K KiZ bv nq| wK byb AvbZ family with four sisters although the old-aged father still
cvv dzivq Ggb cwievi evev-gvi ^c Av` c~iY ne wKbv Zv delivers. It was a dream to bear the expense for education
wbq wQj h_ mskq| BZvga eo evbi covbv A_vfve with a very low income. They have to starve often. It was
e nq wMqwQj| wK Avwg nvj Qo `Bwb| gav _vKjB not possible to buy a dress in a year also.
covbv kl Kiv hvq bv, A_iI cqvRb nq| gvawgK chvqi
She speaks about her painful family story with tearful
covbv kl KiZ AvgvK AbK cwZK~j cwiwwZ gvKvejv eyes.
KiZ nqQ| Avgvi Rxebi AbK mgq GgbI MQ hLb
cwiaq Kvco bv _vKvq zj Kvm KiZ hZ cvwiwb| Avevi When my father returned home and I watch his tired body,
Abvnvi _KI zj Kvm KiwQ| Avevi AbK mgq LvZv, I feel that he was starving from many days. I thought how
Kjg, eB A_ev Kywci Zji Afve covbv wVK fve KiZ many days are needed to remove poverty from our life?
cviZvg bv| What I will say about my mother? She also works hard
for us in her whole life. My mind was full in anguish when
2013 mvj Gm.Gm.wm. cixvq KwZi mv_ cvk Kivi ci I saw her wearing torn cloth. She sacrifices many things
DP gvawgK bZzb Ki fwZ, GBP. Gm. wm. chvq AveviI for us. Sometimes I thought that few people come in this
covbv Avi Ges A_vfve m cwZK~j cwiwwZjvK ZLb world to endure pain. To fulfill our small needs my parents
gvKvejv Kiv Avgvi cwievii c cvq Ame wQj| Ggb embraced such kind of critical condition now. My parents
have many dreams, anyhow they will establish us so that
e`bv wea~i gyn~Z Avgvi covbv Pvwjq wbq hvIqvi cv_q
we remain safe and sound in future. But I was in doubt
wnmve WvP&-evsjv evsKi MnxZ wkv ewK cqwQjvg| whether my parents dreams come true where our family
Zvici 2015 mvj GBP.Gm.wm cixvqI KwZi mv_ cvk have to live on hand to mouth. Within this time my elder
Kivi ci AveviI Avgvi vZK chvqi covbv my`ifve sister had to stop her study due to lack of money. But I
Pvwjq wbq hvIqvi cv_q wnmve WvP&-evsjv evsKi wkv kept hope. With the talents study cant complete, money
ewK cqwQ| also needed for it. To complete SSC examination I had to
face many critical situations. Most of the time, I could not
wekwe`vjq fwZi UvKv hvMvoi Rb evevi Kiv my`i Dci attend in the school classes for not having dress in my life.
FY kva mn Avgvi fwelZ covbv my`ifve Pvwjq hvIqvi I also attended the classes without taking foods. Most
c_K myMg KiQ GB WvP&-evsjv evsKi MnxZ wkv ew| of the time, I could not complete my study due to lack of
Avwg GB ew h_vh_ eenvii gvag Avgvi Afx j cQ exercise books, pens, text books or lamp light.
In 2013, I passed the S.S.C. examination successfully and wK gvS c_B _gK hve ? DjL h, evevi Dci Avw_K Pvc
got admitted in H.S.C classes. It was totally impossible to jvNe Kivi Rb 10g kYx _KB wUDkwb KiZvg| DP gvawgK
complete my education due to lack of expenses. At that i wevb wefvM cov jLvi Pvci gaI wUDkwb KiwQ|
painful juncture I got the Dutch-Bangla Bank education 2015 mvj DP gvawgK G+ cq hLb gwWKj fwZi Rb
scholarship to continue my study. Later, in 2015 after
cwZ wbwQjvg ZLbv AbK `ywv Mvm KiwQjv, Avwg wK m
passing HSC examination successfully, I also obtained
Dutch-Bangla Bank education scholarship to continue my myhvMwU cvev?
study properly. Dutch- Bangla Bank education scholarship
wbRi GKv wbNyg cPv, gvZv-wcZvi Avkxev` I Avjvni
smoothen my educational life by managing university
Akl Kcvq Avwg Avgvi ^c hvvq mdj njvg| gav KvVvq
admission fees with my fathers loan.
Kzwgjv gwWKj fwZ nq hvIqvi ci evmv Qo Kzwgjv Pj
I want to fulfill my parents desire and Dutch-Bangla Bank Avmjvg| eB Kbv _K i Ki gvwmK LiPi K_v wPv Ki
helped me a lot in this regard. ek wegl njvg| gwWKj Pv cqI Avw_K `ywv _K
gyw cjvg bv|
Dutch Bangla Bank established an example by helping
thousands of brilliant and poor students and removed
their educational obstacles. I and my family will remain
thankful to the Dutch-Bangla Bank always.

Swapna Parvin
Mass Communication and Journalism Department,
Dhaka University, HSC 2015

widvZ gwWwmb wekl nZ Pvq

kke _KB Avwgbyj Bmjvg widvZi ^c wPwKrmv we`v
wbq covbv Kiv| wbRi AKv cPvq I mw KZvi Akl
Kcvq AvR m Zvi KvwLZ fwelZi c_ Pjgvb| m gwWwmb
wekl nq ckvMZ `vwqZ cvjbi cvkvcvwk `ki myweav
ewZ gvbyli ^v mevq wbRK wbqvwRZ KiZ Pvq| widvZ
Gi KvQ _KB kvbv hvK Zvi wbR Rxebi wKQz K_vt
Avwg wbg gawe cwievii mvb| evev GKwU emiKvwi
QvcvLvbvi KgPvix| `yB fvB GK evbi msmvi AvwgB mevi
eo| eni gqgbwmsn wefvMi bKvbv Rjvq Avgv`i
evwo|cvwievwiK h Rwg-Rgv wQj ZvZ Drcb dmj w`q Kvb
iKg Pj hZ| Avgvi evevK cwievii eo mvb nIqvi Kvib
PvPv-dzdz`i jvjb cvjb _K i Ki weq ch `Lfvj
KiZ nqQ| hvi ik Avgv`i Dci w`qI eq PjQ| evmv
_K gvBj PviK `~i AewZ miKvix c&v_wgK zjwUZ Avwgbyj Bmjvg widvZ
AwaKvsk w`b nUB Avmv hvIqv KiZvg| c&v_wgK wkv Rxebi
Aekl WvP&-evsjv evsK dvDkb GBP.Gm.wm. 2015 evP
Mw cwiq gvawgK zj covi mgq Rxebi j wi Kivi
ewi Ave`b Ki hLb gbvbxZ njvg ZLb GKUv Pvcv cv_i
Rb evKzj nq Mjvg| Rxebi me wKQzZ hgb wnmve Avi
hb Avgvi gv_v _K mi Mj| Avgvi ^c hvvi mnvqK wnme
hyw Pj bv, j wbaviYI nqZv ZvB| mB kke _KB
Wvvwi we`v ARbi Rb gvbwmK fve c&yZ njvg hw`I WvP&-evsjv evsKK KvQ cq Avgvi `q AvR KZZvq c~Y|
BZvc~e Avgvi yj Ges Mvg _K KDB m myhvM jvf mKj AwbqZvK `~i Vj Avgvi gwWKj KjRi wkv
Kiwb| RxebK mvgbi w`K GwMq wbZ mnvqZv Kivq G gvbweK
cwZvbi cwZ AvwiK KZZv I kv wbe`b KiwQ|
2013 mvj gvawgK cixvq me welq G+ cq hLb DP
gvawgK chvq fwZ njvg ZLb Pviw`K AbK mgq AKvi Avwgbyj Bmjvg widvZ
gb nZv| wbg gawe cwievii eo Qj nq wK Avwg Avgvi Gg.we.we.Gm. 2q el
jLv-cov Pvwjq hZ cviev ? Avgvi e AvKvwLZ ^wcj hvv Kzwgjv gwWKj KjR, Kzwgjv|

ANNUAL REPORT 2016 285

Rifat wants to be a medicine specialist ^c c~iY
From the childhood, Aminul Islam Rifat had a dream to
study on medical science. With the heart and soul effort WvP&-evsjv evsK Gi ew cq Avw_Kfve AmQj A_P gavex
blessings of Almighty his expected dream is going to be AbK Qv-Qvx AvR wbR wbR Kg cwZwZ nqQ| Gme
true. Besides to be a medicine specialist he wanted to Qv-Qvx`i weMZ mgqi cvwievwiK BwZnvm AbK KiY| hv
contribute in health service for the under privileged people bj PgK DVe AbKB| mme Qv-Qvxiv Zv`i AeYbxq
in our society. Now lets listen from Rifat KK Rq Ki GZ`~i ch GmQ| Zv`i c_PjvK wKQzUv
njI Q`gq KiwQj WvP&-evsjv evsKi G wkvew| Zv`i
I am a son of lower middle class family. My father is a GB mvdji avivevwnKZvq mnhvMx nZ ci WvP&-evsjv evsK
worker of nongovernment printers. I am the eldest with AvR MweZ| Zv`i gbi Awfewjv GLvb Zzj aivi Pv
two brothers and one sister of the family. We are from
Kiv njvt
Netrokona district of Mymensingh division.

We live on working in our family land. My father was the `vwi` Rq Ki eyjeyj GLb wekwe`vjq wkK
elder son of the family so he had to take care of my uncles
till their marriage. Most of the time, I walk from house to
school in a distance of four miles.

After completing primary school level I fixed an aim for

the future. Everything is not maintained through the
logic, to decide the aim of life. From the childhood I was
mentally prepared to be a doctor although no one gets the
chance as same as me.

In 2013, when I got admitted in higher secondary obtaining

A+ marks in every subject then I was seeing darkness
everywhere in life. As a lower middle class family son how
could I manage my study? Will my long-cherished dreamy
journey halt in the middle way of my study? I took a part-
time job of tuition from class ten to reduce my fathers
pressure.

I got another tuition job at higher secondary stage when

I was in Science Group embracing a big pressure. In
2015, when I passed higher secondary exam obtaining
A+ and preparing for the medical admission test I faced
uncertainties and tension whether I get the chance?

Due to my unwavering effort, blessings of parents and

help of Almighty I succeed in my dreamy journey. After
admitted in Comilla Medical College on merit quota I left eyjeyj Avng`
my home and came to Comilla. I was upset about buying cfvlK, AvRvwZK mK wefvM
books due to high expenses and was not free from tension evsjv`k BDwbfvwmwU Ae cdmbvj
after admitting in the medical college.
mgqUv 2011 mvj| wKQzw`b njv XvKv wekwe`vjq fwZ nqwQ|
At last, I became free from the burden of my mind when iZB Rxeb eo KwVb gb njv| XvKv wekwe`vjq fwZi wd
I was selected for the scholarship of Dutch- Bangla Bank AbK K hvMvo KiwQ| GLb covbv wKfve Pje Zv wbq
Foundation HSC -2015 batch. My heart remains very `ywZvi kl bB| GKRb fvb PvjK wcZvi eo mvb Avwg|
thankful to Dutch Bangla Bank for standing beside me. I hLvb `yejv Wvj-fvZ Lq euP _vKvUvB g~L, DPwkv
am ever thankful to this kind of humane institution for mLvb mgvRi MZvbyMwZK wPvi KvQ wejvwmZv cZxqgvb nq|
removing all kinds of uncertainty against my medical mg kYxZ covi mgqB GB covbvi BwZ NUZ cviZv| wK
college study. mB mgqB RxebK Dcjw KiZ wkLwQ| G Rxeb Kvb wKQz
mnRB jvf Kiv hvq bv| KvVwgxi KvR _K i Ki cii nvovBwb| evwoZB covbv i Kwi | GfveB bvbvwea
ZLvgvi, Pvqi `vKvb, wewoi dvixZ, cvU avqvi kwgK cwZKjZv cvwo w`q 2010-2011 mkb fwZ nB XvKv
wnme, gvwUKvUvi KvR wKQzB ev` cowb GB Rxeb msMvg| wekwe`vjq| 2011 mvji c_gw`K `uvwoq Gme K_v gb Ki
Ag kYxZ covi mgq we`vjq _K wekl AbygwZ wbq gbK mvnm w`Z _vwK h Avgvi Rxebi Pjvi c_ Zv KLbv
mvn wZb w`b Kvm Avi wZb w`b KviLvbvq KvR KiwQ cyiv gmY wQj bv Ze AvR Kb Avgvi c_Pjv _g _vKe| GB
`yB eQi ai| MxKvjxb, c~Rv, C` GiKg eo QzwUi w`b jvi cZq wbqB Avgvi c_Pjv iy nq XvKv wekwe`vjq| wVK GgbB
cyiv mgqB Pj hZ KvVi KviLvbvq| mB 2005 mvj Avgvi mgq WvP&-evsjv evsK Avgvi cvk Gm `vuovq Zvi wkv ewi
gb AvQ Avwg `wbK nvwRiv cZvg cuvP UvKv| GZ msmvi mnhvMxZvi gvag| Avgvi Rxebi Pjvi c_i gvo Nywiq `q
bv PjjI Avgvi jLvcovi LiPi GKUv eo hvMvb wQj| WvP&-evsjv evsKi wkv ew| 2014 mvj c_g kYxZ mvZK
Ges 2015 mvj c_g kYxZ c_g nq Peace & Conflict
Kvm Ub G covi mgq Avwg evwo evwo wMq wUDkwb iy Kwi, Studies wefvM _K mvZKvi wWwM jvf Kwi| eZgvb Avwg
Avgvi evwo _K wZb wKjvwgUvi `~i gvwmK 200 UvKvi RbB XvKvi wgicyi KvUbgU AewZ `ki AbZg LvZbvgv
kg w`qwQ| Avgvi gb AvQ mB mgq Avgvi Kvb evBmvBKj cvewjK wekwe`vjq, evsjv`k BDwbfvwmwU Ae cdmbvj G
wQj bv| gvS gvS PvPvi mvBKj, gvS gvS nuU GfveB Avwg AvZRvwZK mK wefvM cfvlK wnme KgiZ AvwQ|
PjZ _vK Rxeb| GmGmwm cixvi mgq cixv K` evmv
_K AbK `yi nIqvq hvZvqvZi Rb AbK K Ki WvP&-evsjv evsKi cwZ Avgvi KZZv fvlvq cKvkhvM bq|
cixvq AskMnY KiwQjvg| Ze Avwg me cwZKjZvK Lye GB ew ay AvgvK bq Avgvi gZv jvLv wkv_xi ^cK
^vfvweKfveB wbqwQ| evwoZ we`yr bB, Kivwmbi Zj eve iyc w`Z mnhvwMZv Ki AvmQ| WvP&-evsjv evsKi
evwZ RvwjqB vb ivR Pj Awfhvb| Migi w`b DVvb em GB aibi mvnmx Ges Abymibxq DvM G `ki gvbweK
cov, kxZKvj gvwUi Ni KvYvq Romo nq Mfxi ivZ Aewa g~jevaK RvMZ Ki `k MVb AmvaviY f~wgKv ivLe ej
PjZv GB Awfhvb| Avwg `pfve wekvm Kwi| RqZz WvP&-evsjv evsK |
Lye mKvj DV mKvj `kUv ch KviLvbvq KvR Kiv, Zvici
Avevi Kvmi Rb `o| cixvi mgq wjLZ Lye K nZv, mviv
eQi KivZ ai ai nvZ AbK jv dvv co _vKZv| zj Fulfilling a dream
_K wdi KvbviKg Lq Avevi QzUZvg evmvq evmvq wUDkwb
KiZ| wkK`i Drmvn Avgvi Kvw jvNe KiZ| Kvb KB K Getting scholarship from Dutch-Bangla Bank Limited
gb nZv bv hLb `LZvg cixvi djvdj Avwg kxl| Avgvi (DBBL), the meritorious students in need of financial
kixii IRb wQj cqvRbi Zzjbvq AbK Kg, gvqi `y:wZv aid now are established in their own profession. The
wQj GKevi Amy nj Avi my nZ cvie wKbv? Gfve Gm.Gm. histories of their family are very sad. The students after
wm. U cixv w`jvg| U I Gm.Gm.wm. cixv gaeZx fighting poverty conquered the suffering and came to
mgq _vbv knii GKwU wKviMvUb zj wcqb c` KvR iy the long. To make their way easy, the Dutch-Bangla Bank
Kijvg| hvZ cixvi wdmi UvKv hvMvi Kiv mnR nq| Limited (DBBL) takes the scholarship programme. DBBL
feels proud to assist the poor continuously. Here few are
covbvi evBi weZK wQj Avgvi wcq, hw`I GB msMvg mB mentioned :
cwZfv Lye KgB `LvZ ciwQ| 2008 mvj Av: DcRjv
gvawgK zj weZK cwZhvwMZvq Avgvi `j ivbvm Avc nq
Ges Avwg nB k ev| U cixvi djvdj cKvk nj Avwg Wining Poverty Bulbul Now a University
wevb I gvbweK wefvM wgwjq h_fve c_g njvg| mB mgq Teacher
wkKiv Avgvi cksmv Ki ejwQjb h MZ 10-12 eQi
It was 2011. Few days have passed that I got admitted
Ggb djvdj KD KiZ cviwb| ZLb Avb` PvL Rj Gm
in Dhaka University. At first, the feeling of life was very
wMqwQj| Zvici 2008 mvj Gm.Gm.wm. cixvq gvbweK
critical to me. I managed the university admission fees
wefvM _K wRwcG-5 cq DxY nB| Gici DcRjv chvq
facing hardships. Then I was very much tensed about my
KjR fwZ njvg GmGmwmZ wRwcG-5 cvIqvZ wUDkwbi GKUz
study. I am the elder son of my van driver fathers family.
eZZv evoj| KjR hvIqvi Rb fvj cvkvKi AcZzjZv
It is important to live in hand to mouth and to do higher
AvgvK `vibfve cxov w`qQ| hvBnvK GfveB wRwcG-5 wbq
study is very tough. When I was in class seven my study
GBP.Gm.wm. cvk Kijvg 2010 mvj| faced closure. But I could feel about life at that time.
cixv cieZx mgq cowQjvg gnvmU, Gmgq wekwe`vjq Nothing is available free in this life. I had to work in all
KvwPs Kivi Dk XvKv iIbv w`jI mLvb Avw_K AbUb kinds of menial services including carpentering, farming,
GK cKvj Gi ewk mgq _vKZ cvwiwb| ZviciI gbvej tea-making, assisting in cigarette factories, jute clearing

ANNUAL REPORT 2016 287

working, cutting soil, etc. to survive in my life struggle. faced some critical problems after the exam. At that
When I was in class eight I attended the classes three moment I started to come in Dhaka but I cannot stay
days of a week and I worked in factory in another three here due to financial problem. But I did not lost mental
days with the special permission of the school. Public stability. I started my study at home. In this way after
holidays like summer season, puja, Eid passed silently surviving different types of adversities, I got admitted in
from my life in timber factory. At that time I remembered Dhaka University in 2010-2011 sessions. In 2011, I realised
clearly that I used to get five taka per day. This scanty myself that my path was not very smooth, so why I will
amount of money could not fulfill my family need but it stop today. I started to move in Dhaka University with this
was a very big support for my study. determination. At that time, Dutch- Bangla Bank stands
beside me offering a scholarship. Dutch-Bangla Bank
When I was in class ten I started tuitions in door to door in education scholarship changed my life fully.
our village. I walked about three kilometers away from my
village to earn only Tk two hundred (200) from a tuition. I In 2014, I obtained first class in honors and in 2015
remembered that I had no bicycle. Sometimes I managed obtained first class first position in Masters from Peace &
my uncles bicycle, sometimes I walked and my life went Conflict Studies department.
on in this way. I appeared at SSC examination facing
Now I am working as a lecturer in International Affairs
hardships as the exam centre was located far away from
department in Bangladesh University of Professionals at
our house. But I accepted each challengs very normally.
Mirpur Cantonment in Dhaka.
There was no electricity in my house, so I studied through
kerosene oil lamp. During summer season, I studied in I cannot explain how I am thankful to Dutch-Bangla Bank.
our yard, in winter season I studied in the corner of our This scholarship helps me and more than thousands of
thatched house till late night. students to make their dream come true. I believe that
such kind of brave and bold steps encourage us to develop
I woke up early in the morning then worked at ten am human values to develop this country. Long live Dutch-
in the factory ahead of joining the classes. It was very Bangla Bank
painful to write in the examination because my fingers
had blisters as I used saw with my hands in the saw mills
round the year. After returning home I took some lunch
^cK Rq Ki ejvj GLb Wvvi
and then moved hurriedly for tuition. Teachers inspiration n `vwi`, Zzwg gvi KiQ gnvb
relieved my distress. I did not feel any pain when I Zzwg gvi `vwbqvQ Lxi mvb|
watched the result of my examination in top position. -KvRx bRij Bmjvg
My weight was much below from appropriate level, so
my mother was too worried about my health whether I RvZxq Kwe KvRx bRij Bmjvg h_v_B ejQb| ^c Rqi c_
fall ill. Under such circumstances I appeared at the SSC `vwi` Kvb evav bq| KvRx bRiji Rxeb chvjvPbv Kij
test examination. I also started to work as a peon in a Avgiv `LZ cvB Pig `vwi` Zvi mci AMhvvK evavM
kindergarten school between test and SSC examination to KiZ cviwb, eis wZwbB `vwi`K Rq KiQb Zvi gav, gbb
manage the examination fees. I cvi gvag| cw_exi BwZnvm hyM hyM e ^c wejvmx gvbyl
Pig `vwi`K Dcv Ki wevb, wk, mvwnZ, wPKjv mn
Besides study, debate was very favourite to me although I Abvb AbK iZc~Y Ae`vb iLQb|
could not perform in this area strongly. In 2008, my team
became runners up and I was the best speaker in inter- 1991 mvji GK KzqvkvfRv mKvj ewikvj wefvMi AMZ
upazila secondary school debate competition. I stood first DcK~jxq Rjv wcivRcyi knii GK `vwi` cwievi Avgvi
jointly in Science and Arts group in the test examination. Rb| ckvq w`bgRyi Avgvi wcZv wQjb AZ `wi` wK
At that time teachers admired me and said that no one ^cPvix gvbyl| Zvi mvgvb Avq cwievii iwU-iwRi msvb
performed like me in the previous 10-12 years. My eyes `ytmva njI wZwb Zvi mvbK mgvR cwZwZ Kivi ^c `L
were filled with tears with happiness. After that I passed wQjb, hv AvR eve cwibwZ ARb KiQ| ^fveZB ^c Rqi
SSC examination obtaining A+ from human studies group GB c_ gvUI gmb wQj bv|
in 2008. Then I got admitted in a upazila level college. I
became little bit busy in tuition after obtaining A+ in SSC Avgvi cwZvwbK wkv MnYi myPbv 1996 mvj wcivRcyi
level. Lack of proper dresses irritated me to go to college. wmwbqi dvwRj gv`ivmvq c_g kYxZ fwZi gvag| cieZxZ
However I passed HSC exam obtaining A+ in 2010. 1999 mvj wcivRcyi miKvix DP we`vjq PZz_ kYxZ
fwZ nB| zj AaqbKvjxb Avgvi covbvi hveZxq LiP enb wcZvi ^c wewbgvYi GK iZc~b Askx`vi| cieZxZ Avwg
Kiv Avgvi e I `wi` wcZvi c AZ KKi wQj eU wK 2014 mvji Rvbyqvix gvm AbywZ Gg we we Gm dvBbvj
wZwb AvgvK K` Ki h ^ci Rvj eybwQjb, Zv Avgvi cdkbvj cixvq AskMnb Ki DxY nqwQ Ges mwZ
gaI mdj fve mvwiZ KiZ ciwQjb| wZwb cvwK `wi` 35Zg we we Gm cixvq Ask wbq ^ KvWvi mnKvix mvRb
mvgvwRK Aevbi cvcU Zvi GKgv cyK covjLvi c` wbqvMi Rb mycvwikcv nqwQ|
cwieZ DcvRbg KvR wbhy Ki jvfRbK cv Aej^b
KiZ cviZb| wK Gi cwieZ wZwb Zuvi e eqmi kgNb cKZc, GB `ki cZK `wi` I gavex wkv_xi gvSB
KgNUv jvK wewbqvM KiwQjb| iqQ Acvi mvebv | WvP&-evsjv evsK Gi wkv ew GB
mvebv jvi cwiPhvi iZc~b f~wgKv ivLQ| Avwg
Avkv Kie WvP&-evsjv evsK Ggb gnZx D`vM Pjgvb ivLe I
h_vmva mmvib Kie|

Epic journey to win a dream

Oh poverty, you make me noble
you established me
in the position of Christ
-- Kazi Nazrul Islam

Our national poet Kazi Nazrul said it properly. To win

a dream, poverty is not an obstacle. If we consider the
whole life of Kazi Nazrul then we could see that serious
poverty could not create any obstacles in his life rather
he won the poverty through his skills, intellect and
knowledge.

gvt ejvj nvmb In every era of the world history, many dreamy people
avoid serious poverty and gave a very heroic contribution
zji AwaKvsk wkK`i fvjevmv I mnhvMxZvB wQj Avgvi in different places of science, art, literature and culture.
KUKvKxY c_i AbZg AbyciYv| cieZxZ 2006 mvj
AbywZ Gm Gm wm cixvh AskMnY Ki wevb wefvM wRwcG In 1991, I was born in a winter morning in Pirozpur city of
5 ARb ^ci cwiwaK ejvsk mmvwiZ Ki| 2008 Barisal division. By profession, my father was very poor
mvj AbywZ GBP Gm wm cixvq wevb wefvM _K wRwcG but a humble person. Although, it was very tough to
5 ARb Kwi Ges 2008-09 mkb gwWKj fwZ cixvq maintain the family with the scanty income but he had
Ask wbq RvZxq gav ZvwjKvq 288 Zg vb ARbi gvag a dream to establish his children in the society which is
mvi mwjgyjvn& gwWKj KjR Gg we we Gm Aaqbi myhvM going to be true now. Naturally, the way to win the dream
cvB| GB ARb cwievii mevB Avb` DvwmZ njI Zv was not easy.
ewkw`b vqx nqwb| gwWKj KjR fwZ wd, gwWKj wkvi
In 1996, I started my educational journey by admitting in
cqvRbxq DcKiYi DP g~j I cieZx cuvP eQii hveZxq
class one at Pirozpur senior Fazil Madrasa. In 1999, I got
wkv eq enb Kiv Avgvi `wi` wcZvi c Kej `ytmvaB
admitted in Pirozpur Govt. High School in class four. It was
wQjbv eis Ame wQj| GgbwK A_vfve Avgvi ^cPvix wcZv I
too tough to maintain my educational expenses for my old
Avgvi mviv Rxebi jvwjZ ^c evevqbi Ggb myhvM AziB and poor father. But he depicted his dream in front of me
web nq- Ggb cwiwwZ mw nqwQj| GK Amnvq wcZv I Zuvi properly. On the basis of his poorly marginal social status,
cyi Rxeb hyi Ggb GK vwjM bZzb Avkvi Avjv nq he could enable his son to earn more in a profitable way
Avwef~Z nqwQj WvP&-evsjv evsK| GB evsKi wkv ewB except study. But he invested his experience for his sons
wQj Avgvi wPwKrmK nIqvi AvRb ^c evevqbi c_ AbZg study.
iZc~Y mnhvMx| ewi gvag cv A_ gwWKj KjR
AaqbiZ cuvP eQi wbavwiZ wd cwikva, wkv DcKiY q I School teachers love and co-operation was my lone
AvbymvwK hveZxq LiP gUvZ Zvrchc~Y f~wgKv cvjb KiQ| inspiration in that critical juncture. Later in 2006, I
WvP&-evsjv evsK dvDkbi D ew Avgvi KvQ aygv achieved GPA 5 from Science Group in SSC examination
A_hvMi GKwU gvag wQjbv- GUv wQj GK `wi` ^cwejvmx and widened my dream. In 2008, I achieved GPA 5 from

ANNUAL REPORT 2016 289

Science Group in HSC examination. In 2008-09 session, I me mgq KwVb cwiwwZZ Kvb bv Kvb c_i `Lv cZbB|
appeared at medical admission test, passed successfully Avgvi zji 146 Rb wkv_x`i ga Avgiv 3 Rb mKj welq
with 288th position in merit list and got the chance to get G+ cq Gm.Gm.wm cixvq DxY nqwQjvg|
admitted in MBBS in Sir Salimullah Medical College.
Gm.Gm.wm Z Ggb djvdj _KB Avgvi gvqi wPv-fvebv
My family members were very happy for my achievement. jv AvswkK mwZ nZ _vK| GRb Avwg mekwgvb Avjvni
But the Medical College admission fee, medical text KvQ KZ h Avgvi AKv cwikg Ges Avgvi cwievii msMvg
books and instruments were very costly. It was totally e_v hvqwb| wK eveZv AbK KwVb Kvib fvj wekwe`vjq
impossible to bear my educational expenses for 5 years for fwZ nZ Mj hgb ewZgx Ges gavex nIqv cqvRb Zgb
my father. This critical financial constraint was going to
mbvgab KjRi f~wgKvI GLvb AZ iyZc~Y| Avgvi gv
destroy my dream. At that moment, Dutch-Bangla Bank
GKRb Mwnbx njI memgq DPvKvLx wQjb| wZwb AvgvK
brings a new hope to make my dream come true. The
XvKvi Kvb fvj KjR covbvi ^c `LZb, wK XvKv
Dutch-Bangla Bank educational scholarship was the most
kni iL covbv AbK eqej| wZwb me mgq Avkvev`x
important catalyst in my medical education journey. The
wPv KiZb Ges mvgb GMvbvi Aej^b LyRZb | wZwb
money from Dutch-Bangla Bank scholarship played a very
significant role in medical college fee, buying equipment
AvgvK XvKvi Kvb KjR fwZi Rb Pv KiZ ejZb Ges
and another cost. AvwgI XvKv iwmWwqvj gWj KjR GKv`k kbxZ fwZi
myhvM cq Mjvg| wK Avwg Dcjw Kijvg h XvKvq _K
Dutch-Bangla Bank Foundation scholarship was not jLvcovi LiP Pvjvbv wQj cwievii mvai evBi| ZLb Avwg
only a source of money but also a very important share- GK eo fvBqi KvQ _K WvP&-evsjv evsKi ewi K_v RvbZ
holder to construct a poor fathers dream. Later, I passed cvijvg| ewi Rb Ave`b Kwi Ges Avjvni Akl ingZ
MBBS final professional examination in 2014. Recently Avwg Pzovfve wbevwPZ nB| ew cvIqvi ci Avwg AbK
I qualified in 35th BCS examination and got assistant Avbw`Z nqwQjvg Kvib GB ewwU AvgvK Avgvi jLvcov
surgeon post. myfve Pvwjq hZ mvnvh KiwQj|
Actually, each poor and brilliant student has huge WvP&-evsjv evsKi ewwUB wQj Avgvi Aej^b hv AvgvK
potentiality in our country. Dutch-Bangla Bank scholarship
mdjZvi hvvq mvgbi w`K avweZ KiQ| mB mgq ewwU
is nurturing such kinds of potentiality. I wish Dutch-
cq Avgvi covjLvq Avwg m~bfve gbvwbek Kwi Ges
Bangla Bank will continue to perform their noble duties in
GBP.Gm.wm ZI wRwcG-5 cq DxY nB| Avwg WvP&-evsjv
wide range of this area.
evsKi KvQ AZ KZ KviY H mgq evsKwU AvgvK wkv
ew c`vb Ki Avgvi cvk `vwoqwQj| ewwU bv cj Avgvi
gvqi ^c c~ib KiQ Rqbvj Ave`xb covbv mwVKfve Pvjvbv me wQj bv| GBP.Gm.wm cvki
ci hLb BUET G fwZi Rb cwZ wbwQjvg ZLb WvP&-evsjv
evsKi ewi gqv` kl nq wMqwQj Avi m mgq Avgvi evev-
gv wewfb cwZvb _K FY wbq Avgvi LiP RvMvo Kib, Avi
GK_v Rb Avwg cP Pvc Abyfe Kwi hw` Kv_vI fwZi myhvM
bv cvB Zvnj Avgvi covbv Zv Zrbvr e nq hve| wK
cvkvcvwk Avgvi GB AvZwekvmI wQj h hw` Kvb wekwe`vjq
fwZ nZ cvwi Zvnj Avwg nqZv WvP&-evsjv evsK _K Avevi
ewi Rb wbevwPZ nev| myZivs Avwg KVvi cwikg KiZ
_vwK Ges Avjvni Akl ingZ fwZ cixvi gav ZvwjKvq
eyqU 80 Zg, XvKv wekwe`vjq K BDwbU 372 Zg Ges
gvt Rqbvj Ave`xb AvBBDwU Z 65 Zg vb ARb Kwi| cieZxZ eyqUi EEE
Z fwZ nB Ges Avevi WvP&-evsjv evsKi ewi Rb Ave`b
gnicyi Rjvi Mvsbx DcRjvi AMZ kjvUvKv Mvgi GK Kwi| DP gvawgK Aaqb Kvj evsKi ewi Rgvbv UvKv
KlK cwievi Avgvi Rb| eo `yB evbmn cvuP m`mi Avgv`i w`q eyqUi fwZ wd cwikva Kwi| eyqU Aaqb Kvjxb mgq
cwievi evevB Kej DcvRbkxj ew wQjb| Avwg hLb beg Avwg gvUvgvwU wbwZ wQjwg h DBBL AvgvK c~bivq ewi
kbxZ coZvg ZLb Avgvi Ab evbivI covbv KiZb Ges Rb wbevwPZ Kieb| cieZxZ DBBL ewi Rb Avwg Aveviv
Avgv`i wkvi LiP hvMvbv wQj Avgvi evevi KvQ ixwZgZ Pzovfve wbevwPZ nB| evsKi ewi UvKv w`q Avwg mdjfve
hy, wK wZwb KLbv AvkvnZ nbwb| wekl Ki Avgvi gv, wZwb eyqU _K mvZK chvqi covbv kl Kwi|
DBBL Gi ewi RbB AvgvK Avw_K AmQjZvq coZ nqwb much happy. Because getting this scholarship it helps me
Ges Avwg mvZK chvqi cwZwU mwgvi fvj djvdj KiZ to continue my study properly.
_vwK ZviB avivevwnKZvq wRwcG 4.00 Gi ga 3.85 cqU
This Dutch-Bangla Bank scholarship was my only one
ARb Ki mvZK Pzov cixvq DxY nB| Avgvi KVvi cwikg,
support which helps me to move on. At that time, after
eqvRv`i `vqv Ges WvP&-evsjv evsKi ewi RbB me getting the scholarship I fully concentrated on my study
nqQ Avgvi GB mvdj| a~ A_bwZK AmQjZvi Kvib and achieved GPA 5 in HSC exam. I am very thankful to
AbK Qv-Qvx jLvcov _K AKvjB Si co, wK Avwg Dutch-Bangla Bank because the bank stands beside me by
mfvMevb wQjvg h A_bwZK AmQjZv _vKv mI WvP&- giving the education scholarship at that tough time.
evsjv evsKi ewi KviY Avgvi jLvcovi DjLhvM Ask
mgv KiZ ciwQjvg| Without the scholarship it was totally impossible to
continue my study properly. After passing HSC exam,
GLb Avwg MxY BDwbfvwmwU Ae evsjv`k Gi EEE wefvM when I prepared to get admit in BUET. But the date of
cfvlK wnmve KgiZ AvwQ| Avwg PhD. Kivi ^c `wL| WvP&- the scholarship expired. Then my parents managed
evsjv evsKi KvQ KZZv cKvk Ki kl Kiv hve bv, ay my educational expenses by taking loan from different
Avjvni KvQ GB cv_bv Kwi GB evsKwU Aviv DbwZ KiyK Ges institutions. When, I came to know about all of this I felt
Zv`i mnhvwMZvi nvZ Aviv cmvwiZ nvK| ewcv mKj Qv- a mental pressure. If I cannot get chance in any place, my
Qvxi c _K iBj WvP&-evsjv evsKi cwZ fKvgbv| study will stop instantly. But I was confident that if I get
admitted in any Govt. University then I will be selected
for Dutch-Bangla Bank scholarship again. So, I started to
Joynal Abedin fulfilled mothers dream work very hard. At last, by the grace of Allah I achieved
the merit list in the admission test with 80th position in
I was born in a farmers family at Salotoka village under
BUET, 372nd at K Unit in Dhaka University, 65th in IUT
the Gangni upazilla of Meherpur district. My father and 127th in Buetex.
was the only one earning member with two sisters of
our family. When I studied in class nine my sisters also Later, I admitted in EEE in BUET and applied again for
studied in another class and it was a war to manage our Dutch-Bangla Bank scholarship. I paid BUET admission
educational expenses, with additional cost of our family fee from the Dutch-Bank Bank scholarship fee in HSC
but my father never lost hope. Specially, my mother which was deposited in the bank. When I studied in BUET,
always searched for any new option to support our family. I was sure that the bank will select me for the scholarship.
We, the three students got A+ in SSC examination among
Later, I was selected for the Dutch-Bangla Bank
146 students.
scholarship finally. At last, I completed my bachelor
From my SSC level, my mothers thoughts became true. degree successfully from BUET riding on the Dutch
So, I am very thankful to the Almighty that me and my -Bangla Bank scholarship.
family work very hard. But the reality was too tough
I have never faced financial instability due to Dutch-
because to admit into a good university, students should
Bangla Bank scholarship and I performed well in every
be very brilliant and different. On the other hand, the
semester of the bachelor stage and in that continuation
significance of a renowned college is very important. My I achieved 3.85 point out of 4.00 point in the final
mother was a housewife but she was very ambitious. examination. My hard work, seniors good wishes and
She had a dream about me to be a student of a very Dutch-Bangla Bank scholarship helped me to bring this
good college of Dhaka city but accommodation cost and success. Many students faced financial uncertainty but
educational expenses in Dhaka city remain very high. She I was lucky. Although, I had financial uncertainty but I
completed the very important part of my study-life only
was always very hopeful and searched for a support to
for Dutch-Bangla Bank scholarship.
move on this way. She asked me to try to get admit in a
college of the city and I also got the chance to admit in Now I am a Lecturer of Green University of Bangladesh in
class XI in Dhaka Residential Model College. But I realised EEE department. I have a dream to complete Ph.D. I am
that my family was unable to manage my expenses in the very thankful to Dutch-Bangla Bank. I pray to Almighty
capital. Then I came to know about Dutch-Bangla Bank for the gradual development of the Bank and I wish they
educational scholarship from a senior brother. I applied open their helping hand widely. A very good wishes to
for the scholarship and finally I was selected by the grace the Dutch Bangla Bank from those who get Dutch-Bangla
of Almighty. After getting the scholarship I became very Bank scholarship.

ANNUAL REPORT 2016 291

WvP&-evsjv evsK Gi Ggb cksmvZzj c_Pjv Lets the admirable journey of Dutch-
AvMvgxZ Aviv eMevb nvK Bangla Bank gets pace
Wvt gv. nvib Ai ikx`
Dr. Md. Harun Ar Rashid
WvP&-evsjv evsK dvDkbi cwZ Avwg fxlbfve KZ|
KZZv cKvki cvkvcvwk AZxZi wKQz K_v ejwQ hv mwZB I am very thankful to Dutch-Bangla Bank Foundation.
ejv cqvRb| Apart from offering thanks I am telling about some
previous experience which is needed to explain.
2006 mvj| m` DP gawgK cixvq G cvm cq cvk KiwQ
Ges BDwbfvwmwUZ covi ^c `LwQ| Gw`K 1997 mvj _K It was 2006. I just passed HSC examination obtaining
Amy wcZvi wPwKrmvi wcQb cwievi mekv| `ytL `~`kvq
with A+ and have a dream to read in a university. Besides,
wbgwZ cwievi AvwgB wQjvg evev-gvi GKgv Avkvi Avjv|
Zvi AvgvK wNi Avkvq eyK euvaZb| hvnvK, GBPGmwm cvk my family was utterly ruined on my ill fathers treatment
Kivi ci Kv_vq fwZ ne, wKfve covjLv Pvjve, cwievi from 1997. I was the only one light of hope for my parents
wKfve Pje ? Gme wPvq AvwgI nvwiq hvwQjvg| Ggwb GK in the shattered family. They have dreams about me.
mgq gnvb Avjvn&i ingZ Avgvi GK gvgvi KvQ _K DBBL Anyway, after passing HSC I was very worried about
Gi ewi Lei cq ewi Rb Ave`b Kwi I wbevwPZ nB| admission, continuation of study and bearing family
cieZxZ Avwg gqgbwmsn AewZ evsjv`k Kwl wek^we`vjq expenses. I was upset about these. At that moment I
Gi fUwibvix mvq dvKvwZ DVM (Doctor of Veterinary was informed from my uncle about DBBF scholarship by
Medicine) Kvm fwZ nB | Avgvi gZ nvRviv Amnvq Qv- the grace of Almighty. I applied and was selected for the
Qvxi `~tmgqi ez WvP&-evsjv evsK wbiwewQb fve ewi A_ scholarship finally.
c`vb Ki AvgvK DVM Kvm mb KiZ mnvqZv KiQ|
Avwg 2010 mvj DVM Ges 2012 mvj gvvm Kvm mb Later, I admitted in the Doctor of Veterinary Medicine
Kwi| cieZxZ 34 Zg wewmGm cixvq DxY nq wewmGm (DVM) course in science faculty of Bangladesh Agriculture
(cvwbm`) KvWvi cvB Ges 02 Ryb 2016Bs ZvwiL cvwbm`
University at Mymensingh. Dutch- Bangla Bank financially
Awa`i, dvgMU, XvKvq hvM`vb Kwi|
helped me to complete DVM course by the scholarship and
many more students also. I completed DVM course in 2010
and Master degree in 2012. Later, I passed BCS 34th batch
in fisheries and livestock cadre and I joined in Fisheries
and Livestock Department, Farmgate, Dhaka.

Because of Dutch-Bangla Bank scholarship many needy

family like us get success and are inspired in patriotism
mnKgx`i mv_ Wvt gv. nvib Ai ikx` (Wvb w`K _K wZxq) and work for the development of the country from their
respective places. I wish the admirable journey of Dutch-
WvP&-evsjv evsK mnhvwMZvi nvZ evwoq `Iqvq AvR nqZv
Bangla Bank will get pace in future.
`yt cwievii AbKB Avgvi gZ mdjZv cqQ Ges
`kcg Dy nq `ki KjvY hvi hvi Aevb _K KvR At last, I am very thankful to Dutch-Bangla Bank and
Ki hvQ| myZivs WvP&-evsjv evsK Gi Ggb cksmvZzj c_Pjv
AvMvgxZ Aviv eMevb nvK - mUvB cZvkv KiwQ| those noble persons who started the scholarships system.
I cordially salute them from the core of my heart.
cwikl, WvP&-evsjv evsK Gi cwZ KZZv RvbvB Ges h
mKj eweMi D`vM DBBL Gi wkv ew Kvhg Pvjy
iqQ Zuv`i web mvb RvbvB| Dr. Md Harun Ar Rashid
Veterinary Surgeon, 34th BCS (Fisheries and Livestock)
Wvt gv. nvib Ai ikx`
fUwibvix mvRb, 34Zg weweGm (cvwbmc`), Fisheries and Livestock Department, Rangunia,
DcRjv cvwbmc` `i, ivybxqv, PMvg Chittagong
 A few of many memorable incidents and illustrations of the impact of DBBL Cataract
operation program for the poor blind patients are described here under:
`w cwZexZ Avgv`i `ki GKwU AeYbxq mvgvwRK mgmv| gvivZK wZM nq Ges axi axi Zvi `w kw Svcmv nq
PvLi Qvwb njv AZi cavb KviY| Ze Avkvi K_v njv, hvq| eva nqB wZwb AUvwiv Pvjvbv e Ki `b| dj Zvi
cv_wgK Aevq 80% Qvwbcov ivMxKB Qvwb Acvikbi Avq ivRMviI e nq hvq| `Lv `q Pig A_bwZK `~`kv|
gvag ^vfvweK `wkw wdwiq `qv hvq| wK Avgv`i `ki avi `bv Ki Kvb iKg msmvi Pvjvbv MjI eKqv co hvq
cZ GjvKvi AbK `wi` Qvwb cov ivMx GB Qvwb Acvikbi evwo fvov| evwoIqvjv cwZw`bB fvov cwikvai ZvMv`v w`q
myhvM _K ewZ| GB Aev weePbv Ki WvP&-evsjv evsK hvq| Gw`K Qji GmGmwm cixvi wdmI Rgv w`Z ne| kZ
2008 mvj cZ Aji `wi` Qvwb cov ivMx`i Rb BbUv Ki gaI wZwb Qjgqi jLvcov LiP wbq KLbv KvcY
IwKDjvi j eenvi Ki webvg~j PvLi Qvwb Acvikb Kibwb| KviY wZwb Zvi QjgqK DPwkZ Ki mybvMwiK
Kvhg i Ki| GB Kgm~Pxi gvag 2016 mvj ch wnme Mo ZzjZ Pvb| wK Zvi GB ^c AvR f hZ
mviv`kevcx 10 nvRviiI ewk `wi` Qvwb cov ivMxi PvLi emQ, KviY Qji GmGmwm cixvi wdm Rgv `Iqvi gZ
Qvwb Acvikbi gvag ^vfvweK `wkw wdi cqQb| UvKv Zvi nvZ bB|
Amnvq GB me gvbyljvi ^vfvweK Rxeb wdi Avmvi c_
mnhvMx nZ ci WvP&-evsjv evsK AvR MweZ| Ggwb `yRb wZwb eySZ cvib msmvi wVK ivLZ nj Ges Qj-gq`i
Qvwbcov Amnvq ivMxi ^vfvweK Rxeb wdi Avmvi Kvwnbx jLv cov Pvwjq hZ nj ZvK ivRMvi KiZ ne| Avi
GLvb Zzj aiv njv t GRb c_gB ZvK `w kw wdi cZ ne | wZwb Pz
wekli KvQ wMq RvbZ cvib h Zvi PvL Kwg j
mshvRb Kiv Mj wZwb Avevi AvMi gZ `LZ cvieb| wK
DBBL Cataract operation Programme
GB Acvikbi Rb cqvRbxq 20 nvRvi UvKv hvMvo KiZ bv
Visual impairment is an immense social problem in our cvivq ZvK webv wPwKrmvq gvbeZi Rxeb hvcb Ki hvQb|
country. Cataract is the major cause of blindness and 80%
GKw`b GjvKvi GK Wvvi KQ _K wZwb RvbZ cvib WvP&-
of them can resume vision through cataract operation.
evsjv evsK webv g~j Amnvq I `wi` ivMx`i Qvwb Acvikb
A large number of poor rural people are deprived of the
Ki _vK| wZwb eyKfiv Akv wbq WvP&-evsjv evsK AvqvwRZ
opportunity to cure the problem. Keeping their sufferings
Pz Kv hvMvhvM Kib| cv_wgK cixvi-wbixv kl
in mind, in the year 2008 Dutch-Bangla Bank started a
WvP&-evsjv evsKi my` Pz mvRb MY MZ 26 Rvbyqvix 2016
new program of operating cataract patients more than
ZvwiL Zviv PvL mdj fve Kwg j mshvRb Ki `b|
8,000 surgery (Intra Ocular Lens) throughout the country
in phases. Under this program more than 8,000 surgery
have been done till the year 2015. Dutch-Bangla Bank
feels proud to assists the victims. Two successful stories
are mentioned here:

PvLi Avjv wdi cqQb AUvwivPvjK RvwKi

nvmb
AUvwivPvjK RvwKi nvmbi eZgvb eqm 45 eQi| cvq `o
hyM ai GB ckvq AvQb| x Ges GK Qj I GK gq wbq
Zvi msmvi| QjwU `kg kYxZ Ges gqwU cg kYxZ
co| cwievi wbq _vKb Mvovb 8 b^i jbi 224 b^i
evmvq| cKZc XvKvi AwjMwj I ivRc_B Zvi Avmj Ni|
cwZw`b mKvj _K ga ivZ ch GB knii GKcv _K
Ab cv hvx wbq QzU eovb| cwZw`bi ivRMvi _K
Rgv LiP ev` w`q hv _vK Zv w`q Zvi msmvi Pj | GfveB
cwiq MQ `o hyM| GB `xN mgq Ggb AbK NUbv NUQ
hv gb nj wZwb Avbw`Z I MweZ eva Kib| Avevi Ggb wKQz
e`bv`vqK NUbv NUQ hjvi KviY Zvi AbK eo wZ
nqQ| GKevi hvxekx wQbZvBKvixiv gwiPi ov w`q Zix
GKaibi Zij c`v_ Zvi PvL jvwMq `q| GZ Zvi PvL gvt RvwKi nvmb

ANNUAL REPORT 2016 293

PvLi Avjv wdi cq RvwKi nvmb eZgvb Avevi AvMi After getting back eyesight, Jakir Hossain now lives with
gZ AUvwiv Pvwjq RxweKv wbevn KiQb| `~i nqQ Zvi driving auto-rickshaw as same as he did previously.
A_bwZK `~`kv| Zvi ` nvZ I Awf PvLi mg^q gbi All types of financial problem has removed. By the
Avb` QzU Pjb knii GK gv_v _K Ab gv_vq| combination of his skilled hand and experienced eyes
he moved on with mental happiness from one side to
Auto rickshaw driver Jakir Hossain gets another in the capital.
back eye-sight
bvwQgvi mKj AvksKv `~i KiQ WvP&-evsjv evsK
Auto rickshaw driver Jakir Hossain is now 45 years old.
He is doing this job about one and half decade ago. There bvwQgv LvZzb gqgbwmsni MdiMuvI _vbvi GK wbfZ Mvgi cjx
are wife and a son and a daughter in his family. His son ea~| Zvi ^vgx Avyj Rwjj GKRb w`bgRyi| wfUv evwo eZxZ
reads in class ten and his daughter in class five. He lives Zv`i Kvb RvqMv Rwg bB| ^vgx Avyj Rwjj Abi RwgZ
in house no 224, road no 8 at Goran. Basically, different w`bgRyix w`q hv Avq Ki Zv w`q msmvi LiP gUvbv hvq bv
lane and roads are his real home. Everyday, he moves ej Aviv wKQz Avqi Avkvq wKkvi eqmx Qj jLvcov e
with passengers in his auto-rickshaw from morning to Ki w`q is wgxi KR hvM w`qQ| bvwQgv LvZzb wbRI
late night in the city. He managed his family with the evoxZ kvK-mwewR Pvl Ki wKQz Avqi Pv Kib| ZeyI
daily basis income after adjusting deposit and earning. In wZb Qj I Pvi gq wbq 9 m`mi enr cwievii `bw`b
this way he passes one and half decade. Within this long gwjK Pvwn`v jv me mgq c~iY Kiv hvq bv| wKQz Pwn`v Ac~YB
period of time, some events happened in his life which _K hvq| Avi GUv wbq Zv`i Kvb AwfhvM bB| `vwi`
made him very happy and proud. Besides, few painful hv`i wbZ mx Zv`i Afve-AwfhvM wbq ci _vKj Pje
occurrences cost him dearly. Kb ?
One day, some snatchers who were acting like passengers
put pepper spray in his eyes. So, his eyes were affected
very badly and the power of his eye sight gradually
became very low. He was bound to stop driving auto-
rickshaw. So his income stopped bringing extreme
financial crisis. He managed his household activities by
loan but he could not manage the house rent. The house
owner comes everyday for collecting the house rent. On
the other hand he had to pay his sons examination fees
also. With the thousands of pains, he never hesitate to
manage his childrens educational expenses. Because,
he wanted to establish his children as highly educated
citizen. But this dream shattered because he has no
money to pay for his sons SSC examination fees.

He understood that he has to earn for maintaining his

family and his childrens study. At first he have to get
back his eyesight. He was informed from an eye specialist
that if lens is replaced in his eyes then he could get back
the eye sight again. But he needed twenty thousand taka
only.

He cant manage twenty thousand taka as his life is

already distressed. One day he was informed from a
doctor that Dutch-Bangla Bank has been organizing
cataract operation at free of cost for the poor blind
bvwQgv LvZzb
patients. He later contacted with the cataract operation
camp, organized by Dutch- Bangla Bank. hvB nvK GfveB ^vgx, Qj-gq Avi msmvi wbq eZvi
After primary treatment, special eye surgeons of Dutch- ga bvwQgvi w`b KU hvq| wK wKQz w`b ai GK wfb agx
Bangla Bank operated his eye and added false lens in his mgmv ZvK Rvwjq gviQ| Avi Zv njv wZwb wKQzw`b ai
eyes successfully on 26th January 2016. PvL Svcmv `LQb| hZ w`b hvQ `bw`K KvRKg Kiv
Zvi Rb KwVb nq hvQ| wZwb eySZ cvib h, Gfve their basic needs always in a nine member family. Some
PjZ _vKj Lye ZvovZvwo wZwb A nq hveb| ZvB wZwb basic needs always remain unfulfilled. And they have no
GKRb Pz wekli mv_ civgk Ki RbZ cvib h Zvi complaint about it. Why they will raise complaint when
PvL Qvwb coQ| wZwb Aviv RvbZ cvib h, Acvikbi poverty is their daily-life partner.
gvag j mshvRb Kiv Mj Avevi wZwb AvMi gZ `LZ
However Nasimas life was going on with husband,
cveb Ges `yB PvLi Acvikb eve` 20-25 nvRvi UvKvi gZ
children and family in a very busy way. But for few days
jvMe| UvKvi cwigvb b bvwQgv cyivcywi `g hvb| KviY Zvi
she feels a serious problem in her eyes. As the days go
cwievii c GZ UvKv hvMvi Kiv KLbvB me bq|
on it becomes too hard to do daily works with a poor
ZvB Zvi fq Aviv eo hvq GB AvksKvq h, Gevi nqZ A eyesight.
nqB evKx Rxeb cvi KiZ ne| wK bvwQgvK A nZ nqwb|
So she understood that if it goes on in such way she will
Zvi mKj AvksKv `~i KiQ WvP&-evsjv evsK| A_vr Zvi `yB
be blind soon. So, after consulting with an eye specialist
PvLB Qvwb Acvikb nqQ Ges Gi hveZxq eq enb KiQ
she was informed that her eyes are affected by cataract.
WvP&-evsjv evsK| `w wdi cq bvwQgv Avevi AvMi gZ
She was also informed that if her eyes are operated and
Mnvwj KvR Ki hvQb|
lens are added she could see again. She needs 20,000-
Dutch-Bangla Bank removes Nasimas 25,000 (twenty to twenty five thousand taka) to operate
sorrow her eyes. After knowing the amount of money she was
very frustrated. Because, to manage such kind of big
Nasima Khatun is a village wife under Gafargaon thana in amount is not possible for her family. She became very
Mymensingh. His husband, Abdul Jalil was a day labour. afraid and worried about having a blind life.
They had no extra land except their house land. It is not
possible to maintain the family only for his husbands But, she had not to be blind. Dutch- Bangla Bank removed
income by giving labour on others land so only for earning her all anxiety. At last, her eyes cataract was operated.
more her teenager son joined as a carpenter stopping Dutch- Bangla Bank bore all expenses. Getting eyesight
Nasima is doing her household activities as same she did
his study. Nasima Khatun also tried to earn something
previously.
by selling vegetables. But it is not possible to fulfill

A few of many memorable incidents and illustrations of the impact of DBBL Smile
Brighter program for the poor cleft-lipped boys and girls are described here under:

VuvUKvUv hZUv bv ^vMZ mgmv Zvi Pq ekx mvgvwRK DBBL Smile Brighter program
cwZeKZv| VuvUKvUv Qjgq`i covbv Pvwjq hvIqv,
Cleft-lip is far more a social setback than a health
mvgvwRK AvPvi Abyvb hvM`vb Kiv wKsev weq `qv BZvw`
problem. Boys and girls cursed with cleft-lips face
bvbvwea cwZeKZvi myLxb nZ nq| G Aev weePbv
numerous problems in everyday life ranging from
Ki, WvP&-evsjv evsK cvwK mvRvixi gvag wPwKrmv c`vb
disruption of formal education, attending social
Ki VuvUKvUv Qjgq`i gyL nvwm wdwiq AvbZ 2003
ceremonies and impediment at the time of getting
mvj _K vBj evBUvi bvg GKwU Abb mvaviY wPwKrmv
married. Considering the gravity of the situation, DBBL
Kgm~wP MnY KiQ| G Kgm~Pxi gvag 2016 mvj ch 5,852
Rb `wi` VuvUKvUv Qjgq`i gyLi ^vfvweK nvwm wdwiq has taken the initiative to bring back smile on the face of
Gb mgvRi g~j vZ GKvZ Kiv nqQ| Zv`i GB ^vfvweK the boys and girls with cleft-lip through plastic surgery at
Rxebi mnhvMx nZ ci WvP&-evsjv evsK AvR MweZ| Amnvq free of cost since 2003 under the banner Smile Brighter.
wcZvgvZvi Ggwb `yRb wki ^vfvweK Rxeb wdi Avmvi Kvwnbx More than 5,500 numbers of poor cleft-lipped boys and
GLvb Zzj aiv njvt girls have so far been successfully operated across the

ANNUAL REPORT 2016 295

country till 2015 bringing them under the main-stream of mnKvi gvKvejv KiZ ne| wZwb vbxq Wvvii mv_
the society. Dutch-Bangla Bank feels proud to assist the civgk Ki RvbZ cvib h Acvikbi gvag VuvU I Zvjy
victims. Two stories of two children who are now getting KvUv mgmv mvwiq Zvjv me| Ze Zvi gqi `ywU Acvikb
their normal life are mentioned here: jvMe Ges cwZ Acvikbi Rb nvmcvZvj LiPmn 40
nvRvi UvKv Ki gvU 80 nvRvi UvKv jvMe| mvZ m`m wewk
b~cyi GLb my I ^vfvweK cwievii fiY-cvlY eq gUvZ wMq hvK cwZwbqZ wngwkg
LZ nq| mLvb Acvikbi GB wecyj eq m wKfve gUve?
MvBevv Rjvi mv`yjvcyi DcRjvi imyjcyi bvgK GK cZ
Mvg wegj P`i evwo| eZgvb eqm 31 eQi| A_i Afve wegj GKwU RvZxq `wbK WvP&-evsjv evsKi wevcb `L
DPwkv MnYi ^c c~iY nqwb| cwievi _K A_i hvMvb bv RvbZ cvib h WvP&-evsjv evsK Avw_K fve A^Qj wcZv-
_vKvq GBPGmwm cvki ci jLvcov e nq hvq| wcZvi GKvi gvZvi VuvU I Zvjy KvUv Qj gq`i webv LiP cvwK mvRvix
Avq msmvi Pjbv weavq wbRI i Kii z` eemv| g~jZ Ki _vK| wZwb Zvi gqi Acvikbi Rb WvP&-evsjv evsK
wZwb vbxq evRvi jyw, MvgQv BZvw` wew Ki _vKb| KZci mv_ hvMvhvM Kij MZ 30 gvP 2016 ZvwiL
2014 mvj wZwb weevn eb Ave nb w`w ivYxi mv_| eve-gv, webv LiP b~cyii VuvU cvwK mvRvix mb Kiv nq| GKB
fvB-evb I xK wbq myLB PjwQj Zvi w`b| mB myL Aviv fve MZ 01 m^i 2016 ZvwiL webv LiP b~cyii Zvjy
eb eo hvq hLb m RvbZ cvi h Zv`i Ni Avjv KvUv Acvikb mb Kiv nq | eZgvb b~cyii my I ^vfvweK
Ki bZzb AwZw_ AvmQ&| mvb Rbi mgq cZK wcZv-gvZvi Rxeb hvcb KiQ| ZvK GLb Avi KD cwZex ej wUbx
GKUvB PvIqv _vK Avi Zv njv Zv`i mvb hb my ^vfvweK KvU bv|

Acvikbi AvM b~cyi eZgvb b~cyi

fve Rb bq| wKy 2015 mvji 18 m^i hLb Zvi c_g

Nupur is fine and normal now
mvb b~cyii Rb nq ZLb Zvi mKj Avb` `~i nq hvq| KviY Bimal Chandras house is in a rural area by the name of
Zvi c_g mvb VuvU I Zvjy KvUv mgmv wbq RbQ| VuvU Rasulpur village under Sadullahpur upazila of Gaibandha
I Zvjy KvUv Ggb GKwU Awfkvc hv wkK mgvRi g~j vZ district. At present, he is 31 years old. His dream of higher
_K `~i mwiq ivL| GKUz eo njB Zviv eySZ cvi h Zviv study was not completed due to financial crisis. After
mKji Dcnvmi cv ZvB Zviv mvgvwRK AvPvi-Abyvb jv passing HSC he has to stop his study due to financial
Gwoq Pj| AwaKvsk Zv`i jLvcov e nq hvq| constraint. The family could not manage the expenses on
his fathers income only so he started a small business.
c_g mvb VuvU I Zvjy KvUv mgmv wbq Rb bIqvq wegj I Basically he sells lungi, towel etc in local market.
w`w `wZi gb f hvq| Zviv eySZ cvibv Kvb Aciva
mwKZv Zv`iK GZ eo kvw w`j| GKw`K mvbi Rb In 2014, he married Dipti Rani. His life was going on
`ywv Ab w`K cwZewk`i wUwb - Gme wKQy wegjK GK happily with parents, siblings and wife. His happiness rose
KwVb cixvi mvgb `uvo Kwiq `q| wegj eySZ cvi h G to a new mark when he came to know that a new baby is
aibi wec` ah nviv nj Pjebv| GK Vvv gv_vq ah coming in their family. Each parent expected that their
baby will born with a healthy body. But all the pleasure cixvi mvgb| KviY Zv`i mvb VvU I Zvjy KvUv mgmv wbq
eroded from their life when his first baby was born on 18th RbQ| ZvB eKwLZ cy mvb jvf KiI AvR Zv`i gyL
September, 2015 as the baby was born with cleft lip and nvwm bB| eis Zv`i gyL fi Ki AvQ ivRi nZvkv| Zviv
cleft palate problem. To be born with cleft lip and cleft eySZ cviwQjbv wKfve GB mvbK wbq cwievi cwiRbi
palate problem is a curse which segregated the baby from mvgb `uvove|
the mainstream of the society. With the growing up of the
baby, they understood that they become very ridiculous in Qji fwelr wPvq GB Mvg `wZ Amnvq eva KiZ _vKb|
front of the society. So they started to avoid all types of KviY Zviv Rvbb G aiYi cwZewiv Avgv`i mgvR eevq
social and cultural functions. Most of the cases they have Acgvb Avi ebvi Dcj gv| Ze wK Zv`i Qj AvivdvZ
to stop study. mvwb mKji ebv Avi Dcnvmi cv nqB _vKe ? hLb Zviv
Bimal and Dipti couples mind broke down because their G cki mgvavb LyuR giQ ZLbB GKw`b Kvkg Zvi `vKvbi
first baby was born with cleft lip and cleft palate problem. GK Zvi KvQ _K RvbZ cvi h WvP-evsjv evsK Avw_K
They couldnt understand that why the Almighty has fve A^Qj wcZv-gvZvi VuvU I Zvjy KvUv Qj gq`i webv
given them such kind of punishment. In one side, stress LiP cvwK mvRvix Ki _vK| wZwb Zvi Qji Acvikbi
for babys health and on the other hand neighbours Rb WvP&-evsjv evsK Ave`b Kij MZ 23 gvP 2016 ZvwiL
mockery put Bimal in front of a critical juncture. webv LiP AvivdvZi VuvU cvwK mvRvix mb Kiv nq|
Bimal understood that it is not time to lose patience. They
have to face this problem with cool mind. After contacting
local doctors they were informed that cleft lip and cleft
palate problem could be solved through operation. But his
daughter needs two operations. Each operations cost was
Tk forty thousand and they need Tk eighty thousand in
total.

One day Bimal saw Dutch-Bangla Bank advertisement

in a national daily and was informed that the bank is
treating cleft lip and cleft palate problem to the financially
insolvent children through plastic surgery with free of
cost.

After contacting with Dutch-Bangla Bank authority

about his daughters treatment, the bank managed to Acvikbi AvM AvivdvZ
treat Nupurs lip by plastic surgery with free of cost on
30th March 2016. As same as, Nupurs cleft palate cut
operation was completed on 1st September 2016 with free
of cost. Now Nupur is living healthy and happy life. Now
no one cant tease her as a autistic.

AvivdvZi VuvU GLb gaiy nvwm wSwjK w`q hvq

Kvkg wgqv GKRb gyw` `vKvb`vi| Zvi evox mybvgM Rjvi
myigv _vbvi mq`cyi| x gvidv AvKZvi I GK gq wbq
Zvi msmvi| A_ wei Afve _vKjI msmvi myLi NvUwZ
wQjbv| Kkg hv Avq Kib Zv w`q gvUvgywU fve msmvi Pvwjq
wbQb| 2014 mvji gvSvgvwS mgqi K_v- Kvmg `wZ eySZ
cvi h Zv`i Ni Avjv KiZ AviKwU mvb AvmQ| hnZz
c_g mvb gq ZvB Zviv Lye Ki PvwQjb Gevi hb Avjvn& eZgvb 18 gvm eqmx AvivdvZ
Zv`iK GKwU cy mvb `b| Av Av w`b GwMq hvq Avi
Zv`i ^ci cvj nvIqvi Zvi Aviv evoZ _vK| Aekl GKB fve MZ 28 m^i 2016 ZvwiL webv LiP
Avm mB gn` Y| 2015 mvji 20 gvP Rb bq Zv`i AvivdvZi Zvjy KvUv Acvikb mb Kiv nq | eZgvb
wZxq mvb| Zv`i PvIqv Abyhvqx Avjvn& Zv`iK GKwU cy AvivdvZ my I ^vfvweK Rxeb hvcb KiQ| Zvi VuvU GLb
mvbB w`qQb| wK Zv`i `uvo Kwiq w`qQb GK KwVb gaiy nvwm wSwjK w`q hvq|

ANNUAL REPORT 2016 297

Sweet smile seen in Arafats face Their face was gloomy with full of frustration. They could
not understand how they will stand in the family with this
Kasem Miah is a grocery shop keeper. His house is in son.
Saiyedpur under Surma thana in Sunamganj district.
His family was very needy with wife Marufa Akter and To think about the baby boys future the rural couple feels
a daughter. But they have no shortage of happiness. helpless. Because they know that such kind of autistic
The family was managed by Kasems earnings within a children is a symbol of criticism in our society. So will their
minimum way. boy Arafat Sunny stay with them in such way? When
they search to get the answer of this question then one
It was time in the middle of 2014, Kasem couple could
day Kasem came to know from a buyer in his shop that
understand that another children is coming to lighten
their house. Though their first child was a girl so they Dutch-Bangla Bank arranges treatment to the cleft lip and
keenly expected to the Almighty for a baby boy. The day cleft palate problem of the financially insolvent children
was going on and the speed of the sails on the boat of through plastic surgery with free of cost. He applied to
dream was very fast. At last, the expected time came to Dutch-Bangla Bank authority for his boys operation.
near at hand. On 20th March 2015, their second baby was On 23 March 2016, plastic surgery was done in his boys
born. The Almighty has given them a baby boy as their lip with free of cost. In the same way his cleft palate
expectation but in a critical condition. Because their baby operation was completed on 28th September 2016 with
was born with cleft lip and cleft palate problem. So they free of cost. Now Arafat is living healthy and happy life.
were not happy after getting their very expected son. Now natural smile is seen in his face with full of joy.
 economy
and financial
market
ECONOMY AND
FINANCIAL MARKET
Global economic outlook global financial conditions that could interact with
balance sheet weaknesses in parts of the euro area and in
A Shifting Global Economic Landscape some emerging market economies, increased geopolitical
After a lackluster outturn in 2016, economic activity is tensions, and a more severe slowdown in China.
projected to pick up pace in 2017 and 2018, especially in
emerging market and developing economies. However,
Developments in the second half of 2016
there is a wide dispersion of possible outcomes around Global output growth is estimated at about 3 percent
the projections, given uncertainty surrounding the (at an annualized rate) for the third quarter of 2016
policy stance of the incoming U.S. administration and
broadly unchanged relative to the first two quarters
its global ramifications. The assumptions underpinning
of the year. This stable average growth rate, however,
the forecast should be more specific in the next quarter,
masks divergent developments in different country
as more clarity emerges on U.S. policies and their
groups. There has been a stronger-than-expected
implications for the global economy.
pickup in growth in advanced economies, due mostly
With these caveats, aggregate growth estimates and to a reduced drag from inventories and some recovery
projections for 201618 remain unchanged relative to the in manufacturing output. In contrast, it is matched by
previous Outlook. The outlook for advanced economies an unexpected slowdown in some emerging market
has improved for 201718, reflecting somewhat stronger economies, mostly reflecting idiosyncratic factors.
activity in the second half of 2016 as well as a projected Forward-looking indicators such as purchasing managers
fiscal stimulus in the United States. Growth prospects indices have remained strong in the fourth quarter in
have marginally worsened for emerging market and most areas.
developing economies, where financial conditions have
generally tightened. Near-term growth prospects were Among advanced economies, activity rebounded strongly
revised up for China, due to expected policy stimulus, in the United States after a weak first half of 2016, and
but were revised down for a number of other large the economy is approaching full employment. Output
economiesmost notably India, Brazil, and Mexico. remains below potential in a number of other advanced
economies, notably in the euro area. Preliminary third-
This forecast is based on the assumption of a changing
policy mix under a new administration in the United quarter growth figures were somewhat stronger than
States and its global spillovers. project Some near- previously forecast in some economies, such as Spain and
term fiscal stimulus and a less gradual normalization the United Kingdom, where domestic demand held up
of monetary policy are expected. This projection is better than expected in the aftermath of the Brexit vote.
consistent with the steepening U.S. yield curve, the rise Historical growth revisions indicate that Japans growth
in equity prices, and the sizable appreciation of the U.S. rate in 2016 and in preceding years was stronger than
dollar since the November 8 election. This WEO forecast previously estimated.
also incorporates a firming of oil prices following the
agreement among OPEC members and several other The picture for emerging market and developing
major producers to limit supply. economies (EMDEs) remains much more diverse. The
growth rate in China was a bit stronger than expected,
While the balance of risks is viewed as being to the supported by continued policy stimulus. But activity was
downside, there are also upside risks to near-term weaker than expected in some Latin American countries
growth. Specifically, global activity could accelerate currently in recession, such as Argentina and Brazil, as
more strongly if policy stimulus turns out to be larger well as in Turkey,
than currently projected in the United States or China.
Notable negative risks to activity include a possible which faced a sharp contraction in tourism revenues.
shift toward inward-looking policy platforms and Activity in Russia was slightly better than expected, in
protectionism, a sharper than expected tightening in part reflecting firmer oil prices.

ANNUAL REPORT 2016 301

Commodity prices and inflation emerging market currencies depreciated substantially
in recent monthsmost notably the Turkish lira and the
Oil prices have increased in recent weeks, reflecting an Mexican pesowhile the currencies of several commodity
agreement among major producers to trim supply. With exportersmost notably Russiaappreciated. Preliminary
strong infrastructure and real estate investment in China data point to sharp nonresident portfolio outflows from
as well as expectations of fiscal easing in the United emerging markets in the wake of the U.S. election,
States, prices for base metals have also strengthened. following a few months of solid inflows.
Headline inflation rates have recovered in advanced
economies in recent months with the bottoming out of Forecast
commodity prices, but core inflation rates have remained
Global growth for 2016 is estimated at 3.1 percent. .
broadly unchanged and generally below inflation targets.
Economic activity in both advanced economies and EMDEs
Inflation ticked up in China as capacity cuts and higher
is forecast to accelerate in 201718, with global growth
commodity prices have pushed producer price inflation
projected to be 3.4 percent and 3.6 percent, respectively.
to positive territory after more than four years of
deflation. In other EMDEs, inflation developments have Advanced economies are projected to grow by 1.9 percent
been heterogeneous, reflecting differing exchange rate in 2017 and 2.0 percent in 2018 respectively. As noted,
movements and idiosyncratic factors. this forecast is particularly uncertain in light of potential
changes in the policy stance of the United States under
Financial market developments the incoming administration. The projection for the
Long-term nominal and real interest rates have risen United States is the one with the highest likelihood
substantially since August 2016, particularly in the United among a wide range of possible scenarios. It assumes a
Kingdom and in the United States since the November fiscal stimulus that leads growth to rise to 2.3 percent in
election. As of January 3, nominal yields on 10-year U.S. 2017 and 2.5 percent in 2018. Growth projections for 2017
Treasury bonds have increased by close to one percentage have also been revised upward for Germany, Japan, Spain,
point since August, and 60 basis points since the U.S. and the United Kingdom, mostly on account of a stronger-
election. These changes have been mostly driven by an than-expected performance during the latter part of 2016.
anticipated shift in the U.S. policy mix. Specifically, U.S. These upward revisions more than offset the downward
fiscal policy is projected to become more expansionary, revisions to the outlook for Italy and Korea.
with stronger future demand implying more inflationary The primary factor underlying the strengthening global
pressure and a less gradual normalization of U.S. outlook over 201718 is, however, the projected pickup in
monetary policy. The increase in euro area long-term EMDEs growth. The projection reflects to an important
yields since August was more moderatesome 35 basis extent a gradual normalization of conditions in a number
points in Germany but 70 basis points in Italy, reflecting of large economies that are currently experiencing
elevated political and banking sector uncertainties. The macroeconomic strains. EMDE growth is currently
U.S. Federal Reserve raised short-term interest rates estimated at 4.1 percent in 2016, and is projected to reach
in December, as expected, but in most other advanced 4.5 percent for 2017. A further pickup in growth to 4.8
economies the monetary policy stance has remained percent is projected for 2018.
broadly unchanged. In emerging market economies,
financial conditions were heterogeneous but generally l Notably, the growth forecast for 2017 was revised up
tightened, with higher long-term interest rates on local- for China (to 6.5 percent, 0.3 percentage point above
currency bonds, especially in emerging Europe and Latin the October forecast) on expectations of continued
America. Policy rate changes since August also reflected policy support. However, continued reliance on
this heterogeneitywith rate hikes in Mexico and Turkey policy stimulus measures, with rapid expansion of
and cuts in Brazil, India, and Russiaas did changes in credit and slow progress in addressing corporate
EMBI (Emerging Market Bond Index) spreads. debt, especially in hardening the budget constraints
of state-owned enterprises, raises the risk of a
Exchange rates and capital flows sharper slowdown or a disruptive adjustment.
These risks can be exacerbated by capital outflow
The U.S. dollar has appreciated in real effective terms by
pressures.
over 6 percent since August. The currencies of advanced
commodity exporters have also strengthened, reflecting l Nigerias forecasts were also revised up, primarily
the firming of commodity prices, whereas the euro and reflecting higher oil production due to security
especially the Japanese yen have weakened. Several improvements.
Growth forecasts for 2017 were instead revised down in a l In those advanced economies where balance sheets
number of other regions remain impaired, an extended shortfall in private
demand and inadequate progress on reforms
l In India, the growth forecast for the current
(including bank balance sheet repair) could lead
(201617) and next fiscal year were trimmed by
to permanently lower growth and inflation, with
one percentage point and 0.4 percentage point,
negative implications for debt dynamics.
respectively, primarily due to the temporary
negative consumption shock induced by cash l In addition to the risks already mentioned in
shortages and payment disruptions associated with the previous section, underlying vulnerabilities
the recent currency note withdrawal and exchange remain among some other large emerging market
initiative. economies. High corporate debt, declining
profitability, weak bank balance sheets, and thin
l Elsewhere in emerging Asia, growth was also
revised down in Indonesia, reflecting weaker-than- policy buffers imply that these economies are still
projected private investment, and in Thailand, in exposed to tighter global financial conditions,
light of a slowdown in consumption and tourism. capital flow reversals, and the balance sheet
implications of sharp depreciations. In many low-
l In Latin America, the growth downgrade reflects income economies, low commodity prices and
to an important extent more muted expectations expansionary policies have eroded fiscal buffers
of short-term recovery in Argentina and Brazil and led in some cases to a precarious economic
following weaker-than-expected growth outturns in situation, heightening their vulnerability to further
the second half of 2016, tighter financial conditions
external shocks
and increased headwinds from U.S.-related
uncertainty in Mexico, and continued deterioration l Geopolitical risks and a range of other noneconomic
in Venezuela. factors continue to weigh on the outlook in various
regionscivil war and domestic conflict in parts
l In the Middle East, growth in Saudi Arabia is
of the Middle East and Africa, the tragic plight of
expected to be weaker than previously forecast in
refugees and migrants in neighboring countries and
2017 as oil production is cut back in line with the
in Europe, acts of terror worldwide, the protracted
recent OPEC agreement, while civil strife continues
effects of a drought in eastern and southern Africa,
to take a heavy toll on a number of other countries.
and the spread of the Zika virus. If these factors
Risks intensify, they would deepen the hardship in
directly affected countries. Increased geopolitical
Risks to the global growth outlook are two sided but are
tensions and terrorism could also take a large toll on
assessed to be skewed to the downside, especially over
global market sentiment and economic confidence.
the medium term:
l On the upside, the support to activity from policy
l Recent political developments highlight a fraying
stimulus in the United States and/or China
consensus about the benefits of cross-border
could turn out to be larger than what has been
economic integration. A potential widening of
incorporated into current forecasts, which also
global imbalances coupled with sharp exchange
rate movements, should those occur in response would result in a stronger pickup of activity in their
to major policy shifts, could further intensify trading partners unless the positive spillovers are
protectionist pressures. Increased restrictions on tempered by protectionist trade policies. Upside
global trade and migration would hurt productivity risks also include higher investment if confidence in
and incomes, and take an immediate toll on market the recovery of global demand strengthens, as some
sentiment. financial market indicators seem to suggest.

ANNUAL REPORT 2016 303

Policies challenges. In general, enhancing financial resilience
can reduce the vulnerability to a tightening of global
The baseline forecast for the global economy points financial conditions, sharp currency movements,
to a pickup in growth over the rest of the forecast and the risk of capital flow reversals. Economies
horizon from its subdued pace this year, in the context with large and rising nonfinancial debt, unhedged
of positive financial market sentiment, especially in foreign liabilities, or heavy reliance on short-term
advanced economies. Nonetheless, the potential for borrowing to fund longer-term investments must
disappointments is high, as underscored by repeated adopt stronger risk management practices and
growth markdowns in recent years. Against this backdrop, contain balance sheet mismatches.
and given the diversity in cyclical positions and policy
space, priorities differ across individual economies: l In low-income countries that have seen their fiscal
buffers decrease over the last few years, the priority
l In those advanced economies where output gaps is to restore those buffers while continuing to
are still negative and wage pressures muted, the spend efficiently on critical capital needs and social
risk of persistent low inflation (or deflation, in some outlays, strengthen debt management, improve
cases) remains. Monetary policy therefore must
domestic revenue mobilization, and implement
remain accommodative, relying on unconventional
structural reformsincluding in educationthat
strategies as needed. But accommodative monetary
pave the way for economic diversification and
policy alone cannot lift demand sufficiently,
higher productivity.
and fiscal supportcalibrated to the amount of
space available and oriented toward policies that l For the countries hardest hit by the decline in
protect the vulnerable and lift medium-term commodity prices, the recent market firming
growth prospectstherefore remains essential provides some relief, but the adjustment to
for generating momentum. In cases where fiscal reestablish macroeconomic stability is urgent.
adjustment cannot be postponed, its pace and This implies allowing the exchange rate to adjust
composition should be calibrated to minimize the in countries not relying on an exchange rate peg,
drag on output. tightening monetary policy where needed to
tackle increases in inflation, and ensuring that
l In those advanced economies without substantially
needed fiscal consolidation is as growth-friendly
negative output gaps, any fiscal support should
as possible. The latter is particularly important
be targeted toward strengthening safety nets
in countries with pegs, where the exchange rate
(including for aiding the integration of refugees in
cannot act as a shock absorber. Over the longer
some cases) and increasing longer-term potential
term, countries highly dependent on one or a few
output through high-quality infrastructure
commodity products should work to diversify their
investment and supply-friendly and equitable
export bases.
tax reform. In such cases, well-anchored inflation
expectations should allow for a gradual pace in the l With growth weak and policy space limited in many
normalization of monetary policy. countries, continued multilateral effort is required
in several areas to minimize risks to financial
l More broadly, accommodative macroeconomic
stability and sustain global improvements in living
policies must be accompanied by and support
standards. This effort must proceed simultaneously
structural reforms that can counteract waning
on a number of fronts. To share the long-term
potential growthincluding efforts to boost labor
benefits of economic integration more broadly,
force participation, encourage investments in skills,
policymakers must ensure that well-targeted
improve the matching process in labor markets,
initiatives are in place to help those adversely
liberalize entry into closed professions, increase
affected by trade opening and to facilitate their
dynamism and innovation in product and service
ability to find jobs in the sectors of the economy
markets, and promote business investment,
that are expanding. Economic fairness also calls
including in research and development.
for multilateral and national efforts to crack
l Emerging market and developing economies face down on tax evasion and prevent tax avoidance
starkly diverse cyclical positions and structural practices. Efforts to strengthen the resilience of
 the financial system must continue, including by provided some cushion to competitiveness. Foreign
recapitalizing institutions and cleaning up balance exchange reserves reached USD 30.2 billion at the end of
sheets where necessary, ensuring effective national FY 2016 equivalent to around eight months of prospective
and international banking resolution frameworks, import. Bangladesh Bank tried to smooth out any large
and addressing emerging risks from nonbank fluctuations in the exchange rate and nominal Taka-USD
intermediaries. A stronger global safety net can exchange rate remained broadly stable during FY 2016.
protect economies with robust fundamentals that
may nevertheless be vulnerable to cross-border GDP Growth
contagion and spillovers. Last but not least,
Bangladesh has experienced high and steady growth
multilateral cooperation is also indispensable to
for more than a decade, with an average growth of over
address important longer-term global challenges,
6.0 percent. Growth exceeded 7 percent in FY 2016, a
such as meeting the 2015 Sustainable Development
decade high, and higher than the average in peer Asian
Goals, mitigating and coping with climate change,
economies, making Bangladesh the 3rd best growth
and preventing the spread of global epidemics.
performer in Asia.

Developments in Bangladesh Economy Growth accelerated to 7.1 percent in FY 2016, up from 6.6
percent in FY 2015, with support from both domestic
Overview of Bangladesh Economy and external demand. On the supply side, industry and
in FY 2016 services sectors contributed to the growth. According to
the Bangladesh Bureau of Statistics (BBS), GDP at current
Bangladesh economy grew by 7.1 percent, exceeding the 7.0
market price was Taka 17,328.6 billion for FY 2016, which
percent growth target and the 6 percent growth trajectory.
was 14.3 percent higher than that of the preceding fiscal
This strong growth was mainly supported by industry and
year. In FY 2016, per capita real GDP was estimated at
services sectors. Annual average CPI inflation continued
Taka 55259. Per capita nominal GDP and per capita real
to decline to 5.9 percent in June 2016, below the target of
GDP grew faster in FY 2016 than in the previous fiscal year.
6.2 percent. The declining trend in average CPI inflation is
mainly driven by favorable food inflation. Agriculture Sector

In FY 2016, Bangladesh Bank (BB) implemented a cautious Agriculture growth deceleration stems from lower growth
but pro-growth monetary policy stance that promotes (0.9 percent) in crops and horticulture. Resultantly, the
investments through the strategy of selective easing to share of agriculture relative to GDP declined from 16.0
support the 7.0 percent growth target and the 6.2 percent percent in FY 2015 to 15.4 percent in FY 2016.
inflation target. Both the targets were fulfilled in FY 2016.
Forest and related services subsector's growth remain
In the H2 of FY 2016, BB lowered the policy rates by 50
unchanged at 5.1 percent. Animal farming sub-sector
basis points. Market interest rates moderated reflecting
growth edged up to 3.2 percent in FY 2016. Fishing sub-
policy support and liquidity conditions.
sectors grew by 6.1 percent in FY 2016.
Export grew by 8.9 percent, while import by 5.5 percent in
Total food production (rice-Aus, Aman, Boro and wheat)
FY 2016. Remittances, however, ended up with a negative
declined by 0.5 percent to 35.9 MMT in FY 2016. The
growth of 3.0 percent during the same period. The current
production of Aus, a relatively minor crop, declined to
account surplus of USD 3.7 billion led to an overall balance
2.17 MMT in FY 2016 from 2.33 MMT in FY 2015. Aman
of USD 5.0 billion, building net foreign assets.
production, the second largest crop, increased slightly to
Import benefitted from subdued global commodity prices. 13.5 MMT in FY 2016. Boro, the largest crop of the year,
Despite some initial competitiveness concerns from was estimated to be produced at 18.9 MMT in FY 2016.
appreciation in Real Effective Exchange Rate (REER),
Industry Sector
exports held up well, despite weak external demand.
Support mechanisms like low cost export development Industry sector grew robustly by 11.1 percent in FY 2016,
fund (EDF) financing for input imports and cash incentives buoyed by power, gas and water supply, and mining and

ANNUAL REPORT 2016 305

quarrying subsectors. Mining and quarrying accelerated 11.1%
its growth to 12.8 percent in FY 2016. Electricity, gas, and
water supply sub-sector grew by 13.3 percent.
9.6%
Manufacturing sub-sector grew by 11.7 percent. Its
higher growth reflects a strong performance by large and
medium scale enterprises (12.3 percent). Similarly, small-
scale manufacturing registered a higher growth of 9.1 FY 2015
percent in FY 2016 compared to 8.5 percent in FY 2015. 6.3%
5.8%
The large and medium scale manufacturing and small FY 2016
scale-manufacturing sub-sector contributed about 82.7
and 17.3 percent respectively of the total output of the
manufacturing sector. Quantum Index of Industrial
3.0% 2.8%
Production (QIIP) showed a growth of 13.5 percent in FY
2016, which was higher than the preceding fiscal year.
Production of motor vehicles, trailers and semi trailers,
and other transport equipments grew significantly (85.4
and 74.2 percent) in FY 2016. Computer, electronic and
optical products, other non-metallic mineral products,
machinery and equipment, electrical equipment, Agriculture Industry Service
Sector Sector Sector
chemicals and chemical products, beverages, food
products, and rubber and plastic products registered
higher growth in FY 2016 compared to FY 2015. Moreover,
other major industry group's production also increased
Sectoral Composition of GDP
except leather and related products, tobacco products
and coke, and refined petroleum products. The woven With continued economic transformation, sectoral
garments and knitwear, country's two key export items,
composition of output is shifting towards industry and
showed a strong growth of 10.2 percent in FY 2016
compared with 4.1 percent growth in FY 2015. away from agriculture, a pattern commonly observed in
other countries. The contribution of the industry sector in
Services Sector
GDP increased to 31.5 percent in FY 2016. This was mainly
The services sector improved its performance in FY 2016 driven by the manufacturing sub-sector whose share in
and grew by 6.3 percent. Its growth was broad-based and GDP increased by 0.8 percentage point to 21.0 percentage
covered public administration and defence, education,
health and social work, and transport, storage and points.
communication subsectors. The new public pay scale
On the other hand, services sector's share in GDP declined
provided a significant boost to public administration and
defence sub-sector. Education sub-sector also posted slightly to 53.1 percent in FY 2016 as compared to the
a higher growth of 11.7 percent in FY 2016. Transport, preceding fiscal year. However, the shares of public
storage and communication sub-sector grew by 6.1 administration and defence, and education sub-sectors
percent in FY 2016. Wholesale and retail trade, repair of
increased while those of real estate, renting and business
motor vehicles, motorcycles and personal and household
goods; hotel and restaurants; and real estate, rental, and activities and community, social and personal services
business activities sub-sectors grew slightly higher at 6.5, subsectors declined.
7.0 and 4.5 percent respectively in FY 2016 compared to
6.4, 6.8 and 4.4 percent respectively in FY 2015. Health Agricultures share in GDP marginally declined in FY 2016
and social work sub-sector also recorded a higher growth to 15.4 percent from 16.0 percent in preceding fiscal year
of 7.5 percent in FY 2016 compared to 5.2 percent in FY
mainly due to reduced share of crops and horticulture,
2015.
the leading sub-sector comprising of 54.4 percent of uninterrupted supply of gas and electricity throughout the
agriculture, which declined to 8.4 percent in FY 2016 from year contributed to achieve 7.1 percent real GDP growth
8.9 percent in FY 2015. in FY 2016 and lifted up the country from the 6.0 percent
GDP by Expenditure GDP growth trajectory. Annual average CPI inflation
contained at 5.9 percent, well below the targeted level
Expenditure-based GDP in FY 2016 increased by 14.3 of 6.2 percent even though the pass through of global oil
percent to Taka 17,328.6 billion as compared to FY 2015 price decline to consumer prices was belated and minimal.
.Gross domestic expenditure (GDE) reflects the aggregate
Government's domestic borrowing using the costly
demand generated by domestic economic activity,
instrument of high yield non-bank NSD instruments was
measured as the sum of consumption and investment
non-inflationary nearly entire FY 2016, though afflicting
and net export. Domestic demand was estimated at Taka
18,138.7 billion at current market prices in FY 2016, 12.1 banks with a liquidity glut and Bangladesh Bank with a
percent higher than FY 2015. Net export was estimated high sterilisation cost burden.
at Taka -806.6 billion in FY 2016.Total consumption
Partly due to subdued price levels in global commodity
expenditure and trade deficit accounted for 75.0
markets, import growth in FY 2016 remained slow
percent and 4.7 percent of GDE respectively in FY 2016.
and lagging in absorbing the inflows from workers'
While investment (comprising both private and public
investment) accounted for 29.7 percent of GDP. In nominal remittances and growing exports and foreign direct
terms, investment increased by 17.4 percent outpacing the investment (FDI), Bangladesh Bank had to keep buying
growth in consumption 10.2 percent. the market surpluses of USD inflows to ease appreciation
pressures on Taka. The consequent foreign exchange
Bangladesh Banks policy towards economic reserve growth is bolstering confidence of foreign
development investors on the strength and stability of the Bangladesh
economy.
Bangladesh Bank pursued cautious but growth-
supportive, inclusive and investment friendly monetary
Government policy towards macroeconomic
policy stances in FY 2016 with a view to achieving desired
stability and sustainable growth
economic growth and maintaining inflation at a moderate
level. Monetary and credit policies and programmes were The Government has continued to pursue a prudent fiscal
designed to contain average inflation at 6.2 percent and policy stance with a view to ensuring macroeconomic
attain output growth of 7.0 percent as per aspiration of FY stability and sustainable growth. Government has
2016 national budget. Available data indicate attainment undertaken a wide range of reforms to streamline revenue
of key objectives of monetary and credit programmes
collection and expenditure management.
and policies for FY 2016. Though broad money (M2)
growth surpassed the target ceiling a bit due mainly to According to the revised National Budget for FY 2016, the
an extraordinary growth in net foreign assets, overall overall budget deficit (excluding grants) as percentage of
domestic credit growth remained below the target ceiling GDP increased from 3.9 percent in FY 2015 to 5.0 percent
in FY 2016. Though government's net borrowing from the in FY 2016. The overall budget deficit (including grants)
banking system ended up with an upbeat at the end of FY of 4.7 percent of GDP was largely financed by domestic
2016; it was in a downward trend in entire period of the sources, contribution of which increased to 3.6 percent of
fiscal year which created an extra-space for the private GDP in FY 2016 from 3.4 percent of GDP in FY 2015. The
sector and as such private sector credit grew robustly Government's financing from banking system increased
at 16.6 percent overshooting the targeted ceiling of 14.8
from 0.03 percent of GDP in FY 2015 to 1.8 percent of
percent at the end of June 2016.
GDP in FY 2016, while financing from non- bank sources
Strong private sector credit growth, stability in dropped significantly from 3.3 to 1.8 percent of GDP over
macroeconomic management along with the the same period.

ANNUAL REPORT 2016 307

The growth of total revenue registered a sharp increase million during FY 2015. Significant growth of gross
from 4.0 percent in FY 2015 to 21.5 percent in FY exports along with slight import growth led to lower trade
2016 mainly benefiting from significant expansion of deficit. The deficit in the services account decreased by
NBR tax revenue, but it remained below the annual 12.3 percent to USD 2,793.0 million in FY 2016 from USD
target stipulated in the revised budget for FY 2016. 3,186.0 million in FY 2015. The deficit of primary income
Consequently, revenue-GDP ratio increased from 9.6 accounts also lessened by 10.0 percent to USD 2,582.0
percent to 10.2 percent over the same period. Total million in FY 2016 from USD 2,869.0 million in FY 2015.
revenue and grants as a share of GDP improved to 10.5 Secondary income decreased by 3.4 percent from USD
percent in FY 2016 from 9.8 percent in FY 2015. 15,895.0 million in FY 2015 to USD 15,355.0 million in
Public expenditure as percentage of GDP increased from FY 2016. The workers' remittances recorded 3.0 percent
13.5 percent in FY 2015 to 15.3 percent in FY 2016. It grew decrease in FY 2016. The net outcome of all these, the
by 29.5 percent in FY 2016 compared to 8.6 percent in FY current account balance increased substantially from USD
2015. Current expenditure in FY 2016 stood at 8.7 percent 2,875.0 million surplus in FY 2015 to USD 3,706.0 million
of GDP which was 7.9 percent in FY 2015. in FY 2016.

Foreign Direct Investment (FDI) is now an important

External sector
driver of the financial account. The Government in its 7th
In FY 2016, despite a weak global economic recovery, five-year plan placed strategic priority on FDI. FDI inflow
macroeconomic performance in Bangladesh was strong, increased by 9.3 percent, crossing the USD 2.0 billion
driven by buoyant performance of external sector mark for the first time. Portfolio investment, however,
activities. Export growth increased, while import posted decreased significantly by 67.3 percent to USD 124 million
a somewhat lower growth due to lower prices of food and in FY 2016, partly reflecting the lower yield in government
non-food commodities (i.e., iron, cotton, coal, fertilizer, securities.
crude petroleum and soya bean oil). Consequently, the
current account balance improved, further stabilizing Export earnings increased by 9.8 percent in FY 2016 to
the foreign exchange market, building foreign reserves. USD 34,257.2 million from USD 31,208.9 million in FY 2015.
Capital and financial account surplus decreased, but was Woven and knitwear products (RMG), which fetch about
cushioned by a strong current account balance. 82 percent of total export earnings, registered a strong
growth from USD 25,491.4 million of FY 2015 to USD
Most external sector indicators showed improvements in
28,094.1 million in FY 2016. Export of Woven and Knitwear
FY 2016. Current account balance as a percentage of GDP
stood at 1.7 in FY 2016 against 1.5 in FY 2015. External products grew by 12.8 and 7.5 percent respectively in FY
debt to GDP ratio declined further and stood at 11.7 2016.
percent. REER index appreciated by 5.6 percent but export
The EDF commenced its operation in 1989 with the
performance held up well. The foreign exchange reserves
participation of International Development Association
stood at USD 30.2 billion covering around 8 months of
(IDA) and Government of Bangladesh (GOB), to provide
prospective imports of goods and services.
foreign exchange refinancing facilities to exporters. In
The current account improvement stemmed from strong June 2016, the fund was enhanced to USD 2,000 million.
export earnings and a pickup in income from services. Furthermore, USD 200 million has been allocated to
The capital and financial accounts surplus decreased refinance the Green Projects. Exporters can avail EDF
and stood at USD 478 million and USD 1,610 million loan for imports against export LC/firm export contract/
respectively in FY 2016. During the same period, overall inland back to back L/C through Authorized Dealer (AD)
balance recorded a surplus of USD 5,036 million compared banks. The EDF refinancing covers sectors like textile,
to USD 4,373 million in FY 2015.
garments, accessories/packaging material, plastic goods,
Trade Balance recorded a deficit of USD 6,274 million leather goods & footwear, ceramic wares, dyed yarn, agro
during FY 2016 as compared to the deficit of USD 6,965 food processing, bicycle, etc. At present, the single party
borrower maximum limit is set at USD 20.0 million, except supply and stable exchange rate altogether played an
some specific sectors having lower limits. The limit is instrumental role in this respect. Similarly, the twelve-
maximum USD 15.0 million for leather goods & footwear, month point-to point CPI inflation went down to 5.5
ceramic wears, dyed yarn, agro-food processing and percent in June 2016 from 6.3 percent in June 2015.
bicycle. The interest rate on EDF financing facilities is six
month USD LIBOR+2.5 percent. Out of that, Bangladesh The rate of annual average food inflation depicted a
Bank's portion is LIBOR+1 percent and the rest of 1.5 declining trend while point -to- point food inflation
showed mixed trends in FY 2016. Annual average food
percent is shared by commercial banks. In general, the
inflation continuously declined from 6.5 percent in July
reimbursement from the EDF is initially made for a tenor
2015 to 4.9 percent in June 2016. However, Point-to-point
of 180 days with a provision for further extension of 90
food inflation stood at 6.1 percent in July 2015 and reached
days, if required for delay in repatriation of related export
3.8 percent in February 2016. With some fluctuations in
proceeds of the exporter concerned.
the following few months, point-to-point food inflation
Total import in FY 2016 stood at USD 39,715.0 million ended up 4.2 percent in June 2016 that was much lower
registering a growth of 5.5 percent compared to USD than 6.3 percent that prevailed in June 2015.
37,662.0 million in FY 2015. Import of food grain recorded
Although annual average non-food inflation followed
significant negative growth of 29.1 percent (rice 77.9
upward trend, point-to-point non-food inflation had a
percent and wheat 3.8 percent) in FY 2016 mainly due to
mixed trend throughout FY 2016. Annual average non-
decrease of rice import. Import (landed) for food grains
food inflation rate gradually increased to 7.5 percent in
stood at USD 1,057.6 million in FY 2016 compared to USD
June 2016, which was 5.9 percent in June 2015. However,
1,490.6 million in FY 2015. Import of other food items'
in June 2015, point-to- point non-food inflation was
increased by 17.8 percent to 3,511.2 million in FY 2016 from
6.2 percent. With ups and downs in the following few
USD 2,980.4 million in FY 2015. Except negative growth
months, the rate reached its peak at 8.7 percent in January
of milk & cream (22.4 percent) and sugar (17.4 percent),
2016, due mainly on clothing and footwear; gross rent,
all other items showed positive growth. Consumer and
fuel and lighting; and furniture furnishing and others.
intermediate goods increased by 3.2 percent to USD
Since January 2016, point-to-point non-food inflation kept
20,488.6 million in FY 2016 from USD 19,847.6 million in
declining to reach 7.5 percent in June 2016.
FY 2015. Capital goods and others categories grew by 9.0
percent to USD 17,863.4 million in FY 2016. Core inflation (non-food, non-fuel) on point-to-point basis
has been continuously higher over headline inflation but
The terms of trade was unchanged at 85.9 in FY 2016 as in showed a mixed trend throughout FY 2016 and reached
FY 2015 (base year FY 2006). Both the export price index its peak at 9.4 percent in January 2016 and settled down
and import price index increased by 7.5 and 7.4 percent to 8.2 percent in June 2016, which was 6.7 percent in June
respectively during the year. 2015. Monthly general, food and non-food inflation also
showed a mixed trend in FY 2016. In FY 2016, Inflation in
Consumer Prices in Bangladesh urban area was much higher than that of rural areas. In
Annual average CPI inflation in Bangladesh has continued rural areas, average inflation was 5.3 percent in June 2016
its declining trend in FY 2016 as in FY 2015. The headline (6.2 percent in June 2015), while it was 7.1 percent in urban
inflation rate stood at 5.9 percent in June 2016 against areas (6.8 percent in June 2015).
the forecast of 6.1 percent reported in the Monetary Policy
Statement (January- June 2016) of Bangladesh Bank,
Savings and Investment
while it was 6.4 percent in FY 2015. A sharp fall in food Gross domestic savings (GDS) in FY 2016 at current market
inflation resulting from sufficient food-grains supply price stood at 25.0 percent of GDP, higher than 22.2
mainly contributed to the decline of headline inflation. percent of GDP in the previous fiscal year. Gross national
In addition, lower fuel prices and non-fuel commodity savings (GNS) increased to 30.8 percent of GDP in FY 2016
prices in the international market, accommodative money from 29.0 percent in FY 2015.

ANNUAL REPORT 2016 309

Gross domestic savings (GDS) and national savings at revenue receipts in FY 2015. The tax revenue constituted
current market prices increased significantly by 28.9 and 87.6 percent of the total revenue receipts and was 20.7
21.2 percent respectively in FY 2016, sharply higher than in percent higher than the actual tax collected in FY 2015.
FY 2015. The non-tax revenue of FY 2016 was 28.1 percent higher
than that of FY 2015. In the revised budget for FY 2016,
Investment as a share of GDP edged up to 29.7 percent total revenue receipts as percentage of GDP stood at 10.2
in FY 2016 from 28.9 percent in FY 2015. Although public percent which was 9.6 percent in FY 2015. The total tax
investment declined marginally, it was more than offset revenue receipts, as percentage of GDP was 9.0 percent
by the pick-up in private investment, which rose from 22.1 in FY16 which was 8.5 percent in the preceding fiscal year.
percent in FY 2015 to 23.0 percent in FY 2016. As a result, Similarly, the total non-tax revenue receipts as percentage
domestic savings-investment gap as a percentage of GDP of GDP stood at 1.3 percent in FY 2016 which was 1.1
declined from 6.7 in FY 2015 to 4.7 in FY 2016. This gap percent in FY 2015.
was met with the help of the net factor income and net
current transfer. In the revised budget for FY 2016, direct taxes on income
and profit increased by 27.2 percent to Taka 518.0 billion
Public Finance from Taka 407.1 billion in FY 2015. Receipts from taxes
on income and profit, supplementary duty and value
Public finances have gradually been improving in the
added tax (VAT) increased by 27.2, 18.9 and 18.8 percent
country through budgetary measures. Within the
respectively in FY 2016 compared to those of FY 2015.
economy's potential, the FY 2016 budget was formulated
with the vow to scale the wall of 7.0 percent GDP growth Expenditure
similar to the seventh five-year plan, after years of drifting
in the edge of 6.0 percent growth trap. All out efforts The total expenditure in the revised budget for FY 2016
have been made to put the economy on a path of higher amounted to Taka 2,645.7 billion (15.3 percent of GDP)
which was 29.5 percent higher than the actual expenditure
growth by stimulating private investment-both domestic
in FY 2015. The current expenditure in the revised budget
and foreign, creating special economic zones, fast tracking
for FY 2016 stood at Taka 1503.8 billion (8.7 percent of
several transformative infrastructure projects, adopting
GDP) which was 26.4 percent higher than the actual
national social protection strategy and also spending
expenditure of Taka 1,189.9 billion in FY 2015.
more on human capital and skill development. Attention
has increasingly turned to lift foreign direct investment Annual Development Plan
(FDI) from 0.5 percent of GDP to 1.00 percent and raising
the rate of female labour force participation are the other The Annual Development Programme (ADP) for FY 2016
strategies bound to yield good growth dividend over the was revised downward by 6.2 percent to Taka 910.0 billion.
medium term. In the budget for FY 2016 raising total However, it was 50.7 percent higher than the actual ADP
factor productivity (TFP) by making labour and capital for FY 2015. In revised budget for FY 2016, it is found
more productive through the wider application of ICT has that nearly, 43.5 percent of the total ADP was spent on
also been listed as a means to achieve higher growth. the infrastructure sector (power, oil, gas and natural
resources, transport and communication), 17.0 percent
To stabilize the fiscal consolidation, efforts were made to on the social sector education and religious affairs and
raise direct tax buoyancy, to rationalize on development health, nutrition, population and family welfare), and 5.2
spending and leakage and to hold public debt at percent on agriculture sector.
sustainable level. Budget deficit contained at 5.0 percent
of GDP in FY 2016.
Financing FY 2016 Budget Deficit
Total deficit (excluding grants) in the revised budget for
Revenue Receipts
FY 2016 stood at Taka 871.7 billion (5.0 percent of the
The revised total revenue receipts in FY 2016 stood at GDP). The domestic borrowing component of the deficit
Taka 1,774.0 billion, which was 14.9 percent lower than financing was Taka 621.8 billion (3.6 percent of the GDP) in
initial target. It was 21.5 percent higher than the actual FY 2016. Of this component, Taka 316.8 billion (1.8 percent
of the GDP) was bank borrowing and Taka 305.0 billion (1.8 growing by 16.5 percent and credit to the public sector by
percent of the GDP) was non-bank borrowing mainly net 15.9 percent. In FY 2017, imports are projected to grow by
sales of national savings schemes. The foreign financing 8.5 percent, exports by 8.5 percent and remittances by
component (excluding grants) of the budget deficit was 10.0 percent. The foreign exchange reserves are projected
Taka 199.6 billion (1.2 percent of the GDP). to reach USD 33.0 billion or higher in FY 2017 from USD
30.2 billion in FY 2016.
Near and Medium -Term outlook for
Bangladesh Economy From a macro perspective, domestic demand growth is
expected to remain robust over the near and medium-
The near- and medium-term outlook for Bangladesh term reflecting demographics, investments, and
economy looks positive, supported by higher domestic
improving infrastructure and cost of doing business.
and foreign investments, buoyant trade, capital inflows
Furthermore, favorable monetary conditions would likely
and favorable inflationary environment.
support growth but economic spillovers from weaker
Global economic prospects remain sluggish and external demand need to be closely monitored.
growth has been revised downward, particularly for the
advanced countries (WEO, October 2016). Most of the Money, Credit and Financial Market
macroeconomic indicators in Bangladesh are performing
Stance of Monetary and Credit Policy
well and domestic demand remains buoyant. In recent
months, prompt actions taken by the Bangladesh Bangladesh Bank pursued cautious but growth-
Government in the aftermath of the terrorist attacks supportive, inclusive and investment friendly monetary
in July 2016 helped restore investors confidence.
policy stances in FY 2016 with a view to achieving desired
Nonetheless, any fallout from the weaker external
economic growth and maintaining inflation at a moderate
demand from a mediocre global growth needs to be
level. Monetary and credit policies and programmes were
closely monitored.
designed to contain average inflation at 6.2 percent and
In 2015, Bangladesh reached the lower middle-income attain output growth of 7.0 percent as per aspiration of FY
country status, and expects to reach upper middle-income 2016 national budget. Available data indicate attainment
country status by 2030 or earlier. The government's of key objectives of monetary and credit programmes
focus on easing infrastructure bottlenecks and improving and policies for FY 2016. Though broad money (M2)
business climate would support potential growth and
growth surpassed the target ceiling a bit due mainly to
medium term growth performance. The government's
an extraordinary growth in net foreign assets, overall
prudent fiscal policy, accompanied by the Bangladesh's
domestic credit growth remained below the target ceiling
Bank monetary policy and effective supervision are
expected to support macro-financial stability. in FY 2016. Though government's net borrowing from the
banking system ended up with an upbeat at the end of FY
Aided by pragmatic policy support from the Bangladesh 2016; it was in a downward trend in entire period of the
Government and Bangladesh Bank, the low and stable fiscal year which created an extra-space for the private
inflation accompanied by a macroeconomic environment
sector and as such private sector credit grew robustly
helped Bangladesh become a role model of sustainable
at 16.6 percent overshooting the targeted ceiling of 14.8
finance. In this regard, banks and financial institutions
percent at the end of June 2016.
are playing a significant role by providing credit to the un-
banked, un-served and underserved people, particularly Strong private sector credit growth, stability in
women supported by the low cost refinance windows
macroeconomic management along with the
of Bangladesh Bank for Micro, Small and Medium
uninterrupted supply of gas and electricity throughout the
Enterprises (MSMEs) output initiatives and eco-friendly
year contributed to achieve 7.1 percent real GDP growth
green projects. These policies would make finance and
growth more sustainable. in FY 2016 and lifted up the country from the 6.0 percent
GDP growth trajectory. Annual average CPI inflation
Looking ahead, in FY 2017, domestic credit is projected contained at 5.9 percent, well below the targeted level
to grow by 16.4 percent (y-o-y) with private sector credit of 6.2 percent even though the pass through of global oil

ANNUAL REPORT 2016 311

price decline to consumer prices was belated and minimal. foreign financing facilities at lower interest rate, subdued
Government's domestic borrowing using the costly lending rates as well as political stability have contributed
instrument of high yield non-bank NSD instruments was to an increase in private sector credit growth in FY 2016.
non-inflationary nearly entire FY 2016, though afflicting Thus, net domestic assets (NDA) in the banking system
banks with a liquidity glut and Bangladesh Bank with a registered 14.3 percent growth in FY 2016 against the
high sterilization cost burden. targeted 16.2 percent growth, while it was 9.9 percent in
Partly due to subdued price levels in global commodity FY 2015.
markets, import growth in FY 2016 remained slow Reserve Money Developments
and lagging in absorbing the inflows from workers'
remittances and growing exports and foreign direct Reserve money (RM) has been used as an operating
investment (FDI), Bangladesh Bank had to keep buying target to modulate liquidity consistent with the overall
the market surpluses of USD inflows to ease appreciation monetary projection. The weekly auctions of Government
pressures on Taka. The consequent foreign exchange treasury bills and bonds usually influence the level of RM,
reserve growth is bolstering confidence of foreign while repo and reverse repo operations are applied for
investors on the strength and stability of the Bangladesh smoothing the money market.
economy.
In line with the projected broad money growth, the
Money and Credit Situation
monetary programme set a 14.3 percent growth of RM for
Following the growth supportive stance, broad money FY 2016 but the actual growth was 30.1 percent. Reserve
(M2) growth was programmed at 15.0 percent where money growth was unprecedentedly higher than the
growth in net foreign assets and net domestic assets were target due to Bangladesh Bank's absorption of excessive
projected at 11.1 percent and 16.2 percent respectively. flow of foreign currency from the banking system.
Broad Money (M2) grew by 16.3 percent in FY 2016 against Bangladesh Bank bought USD 4,131.0 million from the
15.0 percent targeted and 12.4 percent actual growth in FY foreign exchange market in FY 2016 to maintain external
2015. Broad money growth above the targeted level can be competitiveness of Taka against the US dollar. As a result,
attributed to buoyant growth in net foreign assets (NFA). net foreign assets of Bangladesh Bank increased by Taka
Growth in NFA stood at 22.8 percent against the targeted 236.6 billion and stood at Taka 2,102.4 billion in FY 2016
growth of 11.1 percent for FY 2016. Higher growth in NFA against the programmed level of Taka 1,865.8 billion.
above the target is the outcome of higher export growth
along with moderate import growth. Domestic credit On the other hand, net domestic assets stood negative
grew by 14.4 percent against the targeted growth of 15.5 at Taka 176.3 billion against the programmed level
percent for FY 2016 and actual 10.1 percent growth in FY of negative Taka 174.2 billion. Domestic credit of BB
2015. Domestic credit grew lower than the targeted level registered 61.1 percent growth associated with its
due to lower public sector credit growth. Growth in public components where public sector credit recorded 96.7
sector credit stood at 3.3 percent against the targeted 18.7 percent growth against the programmed growth of 10.5
percent in FY 2016, while public sector credit growth was percent. BB's credit to the deposit money banks stood at
negative 2.5 percent in FY 2015.
Taka 43.8 billion in FY 2016 against the targeted amount
An unusually high receipt of the government borrowing of Taka 52.1 billion in FY 2016.
originated from net selling of national saving certificates
Money multiplier decreased to 4.8 in FY 2016 as compared
and supernatural profit earnings by the state-owned
to 5.4 in FY 2015. Reserve deposit ratio increased to 0.089
Bangladesh Petroleum Corporation (BPC) owing to a
in FY 2016 from 0.086 in FY 2015 and currency-deposit
drop in global oil prices contributed to subdued growth in
public sector credit. However, credit to the private sector ratio also increased to 0.154 in FY 2016 as compared
recorded at 16.8 percent in FY 2016 against the targeted to 0.126 in FY 2015. Changes in both reserve deposit
growth of 14.8 percent for FY 2016 and actual 13.2 percent and currency-deposit ratios led to decrease in money
growth in FY 2015. BB's revised policy rates, access of multiplier.
Income Velocity of Money declined from a pick of 8.5 percent in FY 2014 to 5.5
percent in FY 2016. Similarly, weighted average interest
The income velocity of money decreased to 1.89 in FY
rates on lending also moved upward from FY 2011 to FY
2016 from 1.92 in FY 2015. The rate of decrease in FY
2012 and gradually declined from a pick of 13.7 percent
2016 was 1.6 percent as against 0.5 percent decline in FY
in FY 2012 to 10.4 percent in FY 2016. Access of foreign
2015. Income velocity of money was on a declining trend
financing facilities at lower interest rate, the subdued
over the past several years indicating increased speed of
policy rate coupled with stringent loan practices by
transaction because of some other factors, which includes
Bangladesh Bank contributed to decline in interest rates
rapid commercial bank branch expansion and financial
on both deposits and lending. The spreads between
inclusion, drives in the financial system.
lending and deposit rates were above 5.0 percent from
Bank Credit FY 2011 to FY 2014. The interest rate spread pulled down
to 4.9 percent in FY 2015 and further marginally declined
Outstanding bank credit (excluding foreign bills and
to 4.8 percent in FY 2016 following the declining trend of
interbank items) during FY 2016 rose by Taka 925.8
both lending and deposit rates.
billion or 16.2 percent to Taka 6,654.7 billion as against an
increase of 13.5 percent in FY 2015. The rise in the bank Interest Rate and Liquidity Management
credit during FY 2016 was driven by both the increase in
bills and advances. Borrowing and lending interest rates of banks were
on a declining trend in FY 2016, aided by low interest
Bank Deposits foreign borrowing option kept open for input and capital
equipment imports by manufacturing undertakings.
Bank deposits (excluding interbank items) increased by
Bangladesh Bank also reduced the repo and reverse repo
Taka 1,032.8 billion or 13.8 percent to Taka 8,495.8 billion
rates by 50 basis points to 6.75 percent and 4.75 percent
during FY 2016 against 12.6 percent increase in FY 2015.
respectively on 14 January 2016 to align the policy rates
The rise in total bank deposits was shared by all kinds of
with market rates and to stimulate investment. However,
deposits. Time deposits increased by Taka 771.5 billion or
12.3 percent and stood at Taka 7,039.5 billion in FY 2016 the market was still swamped with excess liquidity, which
against growth of 12.1 percent during FY 2015. Demand induced to introduce 7- day and 14-day Bangladesh Bank
deposits increased by Taka 173.7 billion or 24.0 percent in Bills alongside the 30-day Bill in FY 2016 to effectively
FY 2016 to Taka 897.6 billion against 12.5 percent decrease manage the market liquidity.
in FY 2015. Government deposits increased by Taka 87.6 Effective transmission of monetary policy requires
billion or 18.6 percent to Taka 558.7 billion in FY 2016
strengthening credit and debt markets. Towards
against 20.1 percent increase in FY 2015.
enhancing effectiveness of the financial market
Credit/ Deposit Ratio instruments in order to smooth functioning of
transmission channels for monetary policy, Bangladesh
The credit/deposit ratio of the scheduled banks, excluding Bank's supervisory oversight on credit disbursement
the specialized banks was 0.8 at the end of June 2016, and loan recovery disciplines in banks and financial
which was also 0.8 at the end of June 2015. institutions has been intensified in FY 2016. In doing so,
Bank Rate BB has given particular emphasis on risk management,
internal audit and internal controls, accountability and
The bank rate remained unchanged at 5.0 percent in FY transparency. Besides, firmly discouraging the abetting
2016, which became effective on 6 November 2003 that of habitual, willful repayment default; creating room for
has been just a symbolic rate having no effective role in helping out recovery of genuine businesses distressed
implementing monetary policy of Bangladesh Bank. by circumstances beyond their control with realistic debt
restructuring in line with international best practices.
Interest Rates on Deposits and lending
Furthermore, digital technology has been employed to
The weighted average interest rates on deposits moved investigate big financial transaction and loans in order to
upward from FY 2011 to FY13. Deposit rates gradually stop the repetition of banking irregularities.

ANNUAL REPORT 2016 313

Financial Markets, Foreign Exchange by 99.72 percent during FY 2016. The range of interest
Market and Workers Remittances rate against the accepted bids was 7.25-10.25 percent per
annum, which was same as previous fiscal year.
Bangladesh Bank (BB) continued its efforts to maintain
transparency and stability in financial market of the Reverse Repo Auctions
country during FY 2016. BB remained cautious about
In line with the broad objective of monetary policy,
financial market development and reacted with its repo
Bangladesh Bank continues to mop up liquidity from the
market operation to ensure soundness of its monetary
banks through the reverse repo auctions in order to keep
policy stance. Because of BB's proactive role money
markets were stable and liquid with the spread of call up reserve money and money multiplier on track. In case
money rate (with policy rate) evolving steadily around the of reverse repo, BB does not provide any collateral to the
policy repo rate. banks. A total of 215 daily reverse repo auctions were held
in FY 2016. In total 1,797 bids of 1-2 day and 472 bids of 3-7
Money Market day tenors for a total of Taka 14,538.5 billion were received
Call Money Market and Taka 11747.9 billion was accepted. During FY 2015 bids
for Taka 5,477.6 billion were received and all bids were
The money market in Bangladesh comprising banks and accepted. The interest rate against the accepted bids was
financial institutions passed through a steady growth 5.25 percent, which changed at 4.75 percent per annum
path in FY 2016. BB provided repo, special repo and since 14 January 2016.
liquidity support facility (LSF) to the primary dealers
(PDs) and non-PD banks against their holdings of eligible Bangladesh Bank Bill
treasury bills and bonds.BBs prudential policy measures
Operations of 7-day and 14-day Bangladesh Bank Bill
resulted in a stable weighted average interest rate in the
were introduced in April, 2016 and 30-day Bangladesh
call money market ranging from 3.7 percent to 5.7 percent.
Bank Bill which revived in FY 2009 was also continued
During FY 2016, weighted average interest rate showed a
in FY 2016 as a tool of Open Market Operations (OMOs)
declining trend and remained closely aligned to the policy
in order to effective management and sterilize liquidity
repo rate.
of the banking system. With a view to maintaining
Repo Auctions stable interest rate and exchange rate, Bangladesh Bank
vigorously used these instruments in FY 2016.
Bangladesh Bank usually conducts various types of repo
auctions to provide overnight liquidity facility to banks at Government Securities Market
a pre-determined policy rate as against the collateral face
value of government treasury bills and bonds to maintain Government Treasury Bills Auctions
their instant liquidity requirements. Repo and reserve Treasury bills and bonds are short term and long-term
repo rates were reduced by 50 basis points and refixed at debt instruments issued by Bangladesh Bank on behalf
6.7 percent and 4.7 percent respectively from 7.2 percent
of the Government of Bangladesh. These are the indirect
and 5.2 percent on 14 January 2016 while special repo rate
monetary instruments that the BB uses mainly for
remained unchanged at 9.7 percent for discouraging banks
debt management purpose. The objectives of issuing
to borrow from BB and encouraging them to borrow from
these securities are two-fold. The first is to provide a
the market for achieving broad objective of monetary
mechanism for financing Government budget deficit
policy.
and secondly managing excess liquidity prevailing in the
A total of three repo auctions (including special repo and market. According to the revised auction procedure 12
LSF auctions) were held during FY 2016. In all 10 bids for PD banks will accept 60 percent and 25 non PD banks will
Taka 13.3 billion were received, of which Taka 13.1 billion accept 40 percent of the unsubscribed amount of auction
was accepted. During FY 2015 total 2,983 bids for Taka considering their total demand and time liabilities (TDTL).
4,597.2 billion were received, of which Taka 4,593.4 billion Of 60 percent of the notified amount, 50 percent will be
was accepted. The volume of accepted amounts decreased distributed among 12 PD banks according to TDTL and the
rest 50 percent will be distributed equally. In addition to The weighted average annual yield to-maturity for the
the 12 PD banks, currently eight new banks are also acting treasury bonds ranged from 4.2 percent to 10.4 percent in
as PD assuming fixed underwriting obligations. Apart FY 2016.
from that, the auction committee may also devolve the
unsubscribed amount to Bangladesh Bank considering the It is mentionable that in FY 2015, bids for a total of Taka
auction rate, market timing and macroeconomic situation. 414.8 billion were received and Taka 170.3 billion was
accepted, of which Taka 20.9 billion was devolved on BB/
Weekly auctions of 91-day, 182-day and 364-day treasury
PDs and non-PDs. The overall weighted average yield-
bills were continued in FY 2016. The range of annual
to-maturity ranged from 8.4 percent to 12.1 percent in FY
weighted average yields of most of the treasury bills
sharply decreased in FY 2016 as compared to FY 2015 due 2015.
mainly to an existence of excess liquidity situation in the Bangladesh Government Islamic Investment Bond
market while Government's borrowing from the banking
(Islamic Bond)
system was very low.
The Government issues bond as guarantee against the
A total of 3,212 bids amounting to Taka 1914.1 billion were
received, of which 878 bids amounting to Taka 588.0 pool of funds formed by the Islamic banks and individuals
billion (including Taka 16.1 billion as devolved amount) in order to develop money market for smooth liquidity
were accepted. The weighted average yield-to- maturity management of Islamic banks. Virtually the government
against the accepted bids ranged from 2.4 percent to 6.7 does not borrow money from this sector. The return
percent. In FY 2015 3,600 bids amounting to Taka 1601.1 of the bonds depends on profit or loss in line with the
billion were received, of which Taka 741.9 billion was Islamic Shariah savings rate and related factors reflected
accepted.
in the balance sheet of the respective Islamic bank. This
Bangladesh Government Treasury Bonds (BGTBs) Government Bond is operated in accordance with the
Auctions rules of Islamic Shariah. As per the rules, Bangladeshi
institutions, individuals and non-resident Bangladeshis
Treasury Bonds, bearing half yearly interest coupons
who agree to share profit or loss in accordance with
with tenors of 2-year, 5-year, 10-year, 15-year and
20-year are auctioned in every month following a pre- Islamic Shariah may buy these bonds. As of end June 2016
announced auction calendar prepared by Bangladesh the total sale against this bond amounted to Taka 122.9
Bank in collaboration with the Ministry of Finance billion while balance of total amount of financing stood
of the Government of the People's Republic of at Taka 37.8 billion and net outstanding against the bond
Bangladesh considering liquidity situation and status of stood at Taka 85.1 billion. As of end June 2015 the total
macroeconomic indicators. sale against this bond was Taka 135.8 billion against the
Banks are eligible to use government treasury bills and balance of total financing of Taka 25.4 billion and net
BGTBs for statutory liquidity requirement (SLR) purpose outstanding of Taka 110.4 billion.
in the form of held to maturity (HTM) and held for trade
(HFT). HTM securities are amortized in order to converge Credit Market
at face value and HFT securities are traded following
Advances of Scheduled Banks by Economic Purposes
marking to market method. This bills and bonds are
eligible for trading in the secondary market. Forty eight Total advances of scheduled banks by economic purposes
(48) auctions of these instruments were held in FY 2016. stood at Taka 6,215.6 billion at the end of June 2016,
A total of 2370 bids for Taka 777.3 billion were received
which was 15.9 percent higher than the total advances
and 666 bids for Taka 241.5 billion were accepted, of which
of Taka 5,361.5 billion at the end of June 2015. Of the
Taka 30.1 billion was devolved on BB, PDs and non-PDs.
total advances, working capital financing sector recorded
The amount of outstanding bonds was increased by 10.8
percent from Tk. 1,152.7 billion at the end of June 2015 to the significant improvement by 30.2 percent followed
Taka 1,277.3 billion at the end of June 2016. by construction sector (23.1 percent), transports and

ANNUAL REPORT 2016 315

communication sector (17.3 percent), agriculture, forestry deposits with internationally reputed foreign commercial
and fishing sector (16.7 percent), trade sector (13.8 banks. In addition, BB opened a new window called Long
percent), industry sector (10.2 percent), and other sectors Term Financing (LTF) to support manufacturing sector of
(4.5 percent) in FY 2016 compared to FY 2015. the country with the financial assistance of International
Development Association (IDA).
Sector-wise contribution of total advances shows
that the trade sector played the dominant role (36.0 Workers' Remittance
percent) followed by working capital financing sector The inflow of remittance from Bangladeshi nationals
(20.0 percent), advances for industry (17.0 percent), working abroad has been playing an important role in
construction (9.0 percent), agriculture, fishing and forestry strengthening the current account balance.
(6.0 percent), transport and communication sector (1.0
The remittance witnessed fair earnings of USD 14,931.2
percent) and other sectors (11.0 percent) in FY 2016.
million in FY 2016, which is, however, 2.5 percent lower
Industrial Term Loans of Banks and Financial compared to USD 15,316.9 million in FY 2015. The shortfall
Institutions of remittance is due mainly to the prolonged decline in
oil prices and economic downturn in the GCC countries.
Disbursement of industrial term loans by banks and
Bangladesh Bank is encouraging remittance through
financial institutions increased by 9.6 percent to Taka
the formal channel and working on simplifying the
655.4 billion. The outstanding balance showed a positive
remittance distribution networks including easing the
growth of 18.6 percent and stood at Taka 1,461.0 billion
approval policy of drawing arrangements between foreign
as of end June 2016. However, the overdue increased
exchange houses abroad and domestic banks. At present,
by 32.9 percent in FY 2016 and that was 13.5 percent of
commercial banks have 1142 drawing arrangements with
outstanding loans as of end June 2016.
more than 320 exchange houses all over the world for
Foreign Exchange Market collecting remittances. Banks are being encouraged to
open new exchange houses/branch offices. Banks have
Bangladesh Bank closely monitors the foreign exchange already established 33 exchange houses/subsidiaries
market to avoid undue volatility in the exchange rate. BB abroad to collect remittances.
engages in market interventions if it deems necessary.
Some Micro Finance Institutions (MFIs) have facilitated
In FY 2016, Taka experienced a depreciation of 0.77 the delivery of inward remittances. Banks are now using
percent against US dollar compared to 0.22 percent the branch networks of the MFIs and Bangladesh Post
depreciation in FY 2015 due mainly to BB's interventions Office as the sub-agent for remittance distribution. Banks
in the foreign exchange market to maintain stability as are instructed to ensure the delivery of remittance to
well as to ensure external competitiveness. The weighted the beneficiaries within 2 (two) working days. Several
average inter-bank rate stood at Taka 78.4 per USD as banks are now allowed to distribute remittance using
of 30 June 2016 against Taka 77.80 per USD as of 30 June the countrywide outlets of mobile operators like
2015. Grameenphone, Banglalink and Robi. Almost 20 percent
Foreign Exchange Reserves remittance came from KSA, 18.2 percent from UAE and
16.2 percent from USA.
The gross foreign exchange reserves held by BB comprises
foreign exchange, holdings of gold, and Special Drawing Development in the Banking Sector
Rights (SDR). Foreign exchange reserves grew steadily Banking Sector Performance, Regulation and Bank
(20.55 percent) over FY 2016 and stood at USD 30.2 billion Supervision
at the end of June 2016. BB prioritized capital preservation
while increasing returns by diversifying the foreign asset Bangladesh Bank continued its efforts to improve
portfolio in bonds (issued by sovereign, supranational and the performance of the banking sector and ensure a
highly reputed foreign commercial banks), Treasury Bills sound, efficient and resilient financial system. In FY16,
and Treasury Notes of US Government and in short term Bangladesh Bank (BB) adopted a number of policy
measures to emphasize risk management and corporate PCBs increased by 15.0 percent. Loans and advances
governance in the banks, periodic review of stability stood at Taka 5,846.2 billion which constituted the most
of the individual bank as well as the whole banking significant portion (56.7percent) of the sector's aggregate
system, stress testing, monitoring of large borrowers, assets of Taka 10,314.7 billion. Investment in government
fraud-forgeries and strengthening internal control and bills & bonds were Taka 1830.0 billion.
compliance through self assessment of anti-fraud
Deposits served as the main sources of funds for the
internal controls etc. Monitoring of investment in shares
banking industry and constituted 76.9 percent (Taka
by the scheduled banks has been stringent in light of
7,928.6 billion) of total liability in 2015. Capital and
the amendment brought in the Bank Company Act, 1991
reserves of the banks were Taka 753.5 billion (7.3 percent
(amended up to 2013). Risk Management Committee at
of the liability) in 2015 compared to Taka 741.3 billion (8.1
the board level has been made mandatory, with regular
percent) in 2014.
evaluation. A revised risk guideline has already been put
into effect for banks to improve resiliency. Besides, all core Capital Adequacy
risks management guidelines including Asset Liability
Capital adequacy measures the loss absorption capacity
Management Guideline have been revised recently
of the banks, related to credit, market, operation,
for timely identification, measurement, control, and
interest rate, liquidity, reputation, settlement, strategy,
monitoring of all existing and probable risks of banks. environment and climate change risks etc. Under Basel-
Banking Sector Performance III, banks in Bangladesh are instructed to maintain the
Minimum Capital Requirement (MCR) at 10.0 percent of
The banking sector in Bangladesh comprises four the Risk Weighted Assets (RWA) or Taka 4.0 billion as
categories of scheduled banks- state-owned commercial capital, whichever is higher. Under the Supervisory Review
banks (SCBs), state-owned development financial Process (SRP), banks are directed to maintain a level of
institutions (DFIs), private commercial banks (PCBs) and "adequate" capital, which is higher than the minimum
foreign commercial banks (FCBs). As of December 2015, required capital and sufficient to cover for all possible
there are 56 banks in Bangladesh and the number of bank risks in their business. This higher level of capital for
the banks is usually determined and finalized through
branches increased to 9397 from 9040 as of December
SP-SREP (Supervisory Review\ Evaluation Process, the
2014 due mainly to opening of new branches by the banks
central bank's assessment) dialogue. The amount of
during the year. At the end of June 2016, the total number
capital was Taka 753.5 billion at the end of December
of bank branches increased further to 9,453.
2015.
In 2015, the SCBs held 27.5 percent share of the total
On 31 December 2015, in aggregate, the SCBs, DFIs, PCBs
assets, which was the same as in 2014. PCBs' share of the and FCBs maintained CAR of 6.4, -32.0, 12.4 and 25.6
total assets increased from 63.3 percent in 2014 to 64.5 percent respectively. However, individually, four SCBs,
percent in 2015. two PCBs and two DFIs did not maintain the minimum
required CAR. The CAR of the banking industry as a whole
Total deposits of the banks in 2015 rose to Taka 7,928.6
was 10.8 percent at the end of December 2015 as against
billion from Taka 6,965.1 billion in 2014 showing an overall
11.3 percent at the end of 2014. The CAR of the industry
increase of 13.8 percent. The SCBs' share in deposits
was 10.3 percent at the end of June 2016.
slightly increased from 28.0 percent in 2014 to 28.4
percent in 2015. PCBs' deposits in 2015 amounted to Asset Quality
Taka 5110.4 billion or 64.5 percent of the total deposit
Loans and advances constitute the largest share of
compared to Taka 4,449.4 billion or 63.9 percent in 2014.
assets. The high concentration of loans and advances can
Aggregate Balance Sheet increase credit risk. The most important measure of asset
quality in the non-performing loans (NPLs) ratio. At the
Total assets of the banking industry in 2015 increased end of December 2015, PCBs had the lowest and DFIs had
by 12.8 percent over 2014. During this period, the assets the highest ratio of gross NPLs to total loans. PCBs' gross
of the SCBs increased by 12.8 percent and those of the NPLs to total loans ratio was 4.9 percent, whereas that

ANNUAL REPORT 2016 317

of SCBs, FCBs and DFIs were 21.5, 7.8 and 23.2 percent (76.0 percent) of NII in 2015 like previous years. NII of
respectively. The gross NPL ratios to total loans for the the PCBs increased to Taka 222.6 billion from Taka 205.8
SCBs, PCBs, FCBs and DFIs were recorded as 25.7, 5.4, 8.3 billion in the last year.
and 26.1 percent respectively at the end of June 2016.
CAMELS Rating
In 2015, the ratio of net NPLs (net of provisions and
interest suspense) to net total loans (net of provisions CAMELS rating is a supervisory tool to identify to improve
and interest suspense) was 2.3 percent for the banking supervision. The previous CAMELS rating guideline has
sector. The net NPLs to net total loan ratios were 9.2, 6.9, been updated and effective since December 2013.
0.6 and -0.2 percent for SCBs, DFIs, PCBs and FCBs at the The revised CAMELS rating guideline has brought not
end of December 2015.The ratios were 11.8, 10.8, 0.6 and only major changes in ratios or indicators but also
0.9 percent for SCBs, DFIs, PCBs and FCBs respectively at
modifications in the qualitative evaluation questionnaire.
the end of June 2016.
Basel-III principles related to capital adequacy have been
Banks maintained 86.1 percent of the required provisions reflected in the guideline. Along with emphasizing best
in 2015. In June 2016, it increased to 87.7 percent. The main quality capital, investments in the capital market, the
reason for the shortfall in provision against NPLs was the amount of off balance sheet items in comparison to the
inability of some SCBs, DFIs and PCBs including those capital of the banks, large loan exposures to capital,
in the problem bank category due to inadequate profits. etc. are considered to calculate capital adequacy. HHI
37 out of 39 PCBs were able to maintain the required (Herfindahl-Hirschman Index) has been incorporated in
provision at the end of December 2015, but the remaining the updated CAMELS rating guideline to analyse loan
two failed due to their poor asset portfolios and earning portfolio concentration, as a complement to percentages
levels. of classified loans and provisioning in the evaluation of
asset quality. The amount of loan disbursed to different
Writing off Bad Loans risk associated sectors has been included as well. Under
this rating system, banking companies are assigned two
There is a uniform guideline for write-offs bad /loss loans.
sets of ratings- (i) performance ratings, based on six
According to the policy, the loans classified as bad/loss
individual ratings that address six components of CAMELS
for the last 5 years or more with 100 percent, provisions
(capital, assets, management, earnings, liquidity and
embarked can be written-off. The total amount of written
sensitivity to Market Risk) and (ii) an overall composite
off bad debts by Banks was Taka 423.2 billion upto 30
rating, based on a comprehensive assessment of the
June 2016.
overall condition of the banking company. Both ratings
Earnings and Profitability are expressed by using a numerical scale of "1" to "5" in
ascending order of supervisory concern, "1" representing
Although there are various indicators of earnings and the best rating, while "5" indicating the worst. Any bank
profitability, the most representative and widely used rated 4 or 5, i.e., 'Marginal' or 'Unsatisfactory' under the
one is return on assets (ROA), which is supplemented by composite CAMELS rating is generally identified as a
return on equity (ROE) and net interest margin (NIM). problem bank, and the activities of these banks are closely
Earnings as measured by ROA and ROE differ greatly monitored by BB.
within the banking industry. Analysis of these indicators
reveals that the ROA of the SCBs and DFIs was less than Bangladesh Bank has introduced the early warning
the industry average. ROE of the SCBs was -1.5 percent in system (EWS) since March 2005 to address the difficulties
2015, but improved compared to negative 13.6 percent in faced by the banks in any of the areas of CAMELS. Any
previous year. ROE of the DFIs was also negative. ROE of bank found to have difficulty in any areas of operation, is
the PCBs slightly increased to 10.8 percent in 2015 from brought under the Early Warning category and monitored
10.3 percent in 2014. very closely to help improve its performance. Presently, no
banks are monitored under EWS.
Aggregate net interest income (NII) of the banking
industry in 2015 stood at Taka 292.9 billion which was In December 2015, CAMELS rating, no banks were rated '1'
Taka 274.2 billion in 2014. NII of the SCBs increased to or 'Strong'; the rating of 36 banks was '2' or 'Satisfactory';
Taka 40.4 billion in 2015 from Taka 39.7 billion in 2014. NII rating of 13 banks was '3' or 'Fair'; five banks were rated
of the DFIs decreased to Taka 1.7 billion in 2015 from Taka '4' or 'Marginal' and two banks received the rating of '5' or
2.1 billion in the previous year. PCBs held the major portion 'Unsatisfactory'.
Risk Based Capital Adequacy (RBCA) for Banks the SREP team of BB may apply their prudence and
also uses the available information from the inspection
To comply with international best practices and to departments in determining the adequate capital. All 56
improve financial stability, Bangladesh Bank has banks submitted their ICAAP report based on 31 December
commenced implementation of Basel III capital adequacy 2014 and one to one meeting with BRPD and SRP team of
framework since January 2015. According to Pillar-1 of 56 banks have already been completed.
Basel-III, RWA of banks is calculated against credit
risk, market risk, and operational risk.After successful Loan Classification and Loan-Loss Provisions
completion of Basel-II in December 2014, BB has started BB has changed its policies on loan classification
implementation of Basel-III in a phased manner which and loan-loss provisions near the end of FY 2013. BB
has already been started since January 2015. At the end also introduced and clarified the difference between
of June 2016, CRAR of the banking industry stood at 10.3 a "defaulted loan," which is a legal concept granting
percent while CET1 was 7.5 percent which fulfilled Basel- the bank the right to take certain actions against the
III capital adequacy requirements. However, at individual borrower, and a "classified loan," which is an accounting
level, seven banks out of 56 scheduled banks failed to concept that implies a certain required level of
maintain CET1 and CRAR requirements as per Basel-III. provisioning for expected losses.
In order to avoid building-up excessive on and off-balance Corporate Governance in Banks
sheet advantage in the banking system, a simple,
transparent, non-risk based advantage ratio has been Bangladesh Bank has undertaken a number of measures
introduced. In Bangladesh, the minimum requirement in the recent years to establish good corporate governance
of leverage ratio is 3 percent. Instructions mentioned in the banking sector. These include a "fit and proper"
in the Guidelines will be adopted phase by phase, with test for appointment of chief executive officers of
full implementation of capital ratios by December 2019. PCBs, specifying the constitution of audit committee
Under the new capital adequacy framework, all banks will of the Board, enhanced disclosure requirements, etc. In
be required to maintain i. Common Equity Tier-1 (CET1) continuation of the above reforms, the roles and functions
of at least 4.5 percent of the total RWA plus Capital of the board and management have been redefined
Conservation Buffer (CCB) of 2.5 per cent of RWA ii. Tier-1 and clarified with a view to specifying the powers of
capital will be at least 8.5 percent (including CCB) of the the management and restricting the intervention of
total RWA. iii. Minimum total capital to risk-weighted directors in day-to- day management of the bank. In this
asset ratio (CRAR) should be at least 12.5 percent of the connection, related clauses of the Bank Company Act, 1991
total RWA i.e. Tier-2 capital can be admitted maximum up have already been amended.
to 4.0 percent of the total RWA. Risk Management Activities of Banks
Considering the recent scenario of country is banking Bangladesh Bank has issued six core risks management
industry, Guidelines on Risk Based Capital Adequacy has guidelines (revised during 2015-2016), risk based capital
been partially revised and the entire general provision adequacy guideline and stress testing guideline to
maintained against unclassified loans and advances will ensure robustness, efficiency and effectiveness of risk
be now considered as capital under Tier-2". management systems for the banking sector. On 15
February 2012, BB issued another guideline called Risk
The Supervisory Review Evaluation Process (SREP) of BB
Management Guideline for banks. This guideline promotes
includes dialogue between BB and the bank's SRP team,
an integrated, bank-wide approach to risk management,
followed by findings/evaluation of the bank's Internal
which will facilitate banks in adopting contemporary
Capital Adequacy Assessment Process (ICAAP). During
methods to identify measure, monitor and control risks
the SRP-SREP dialogue, BB reviews and determines any
throughout their institutions.
additional capital that would be required for banks based
on quantitative as well as qualitative judgment. Under Banks have been instructed to establish Risk
the process document, BB provided guidance to calculate Management Division (RMD) in place of previous Risk
required capital against residual risk, credit concentration Management Unit and to appoint a chief risk officer (CRO)
risk, interest rate risk, liquidity risk, reputational risk, from a senior management position (at least from the
settlement risk, strategic risk, appraisal of core risk Deputy Managing Director level) to give more emphasis
management practice, environmental & climate change on risk management practices. BB has instructed the
risk and other material risks. Information of banks' banks to form a risk management committee whose
ICAAP is counter checked with the information available members will be nominated by the board of directors from
from both on-site inspection and off-site supervisory themselves and the company secretary of the bank will be
departments of BB. During the SRP-SREP dialogue, the secretary of the risk management committee.

ANNUAL REPORT 2016 319

A risk rating procedure has been developed to quantify all Infrastructures. On the other hand, BIRP provides
possible risks based on available information. This risk more effective tools and information in order to enable
rating is done on a half yearly basis and carries 15 percent the orderly resolution of banks without any resort of
weight in the management component of CAMELS rating. taxpayers' fund.
Therefore, a bank's risk management practices will have a
significant effect on its CAMELS rating. According to the The department has been preparing Bank Health Index
rating of December 2015, out of 56 scheduled banks, 24 (BHI) and Heat Map on a half-yearly basis to monitor
banks were rated as low risk, 23 as moderate and the rest the relative health of the banks from liquidity, solvency
nine as high-risk category banks. and earning perspectives. A concept paper titled as
"Coordinated Supervision Framework for Bangladesh"
Banks are now required to submit a self-assessment has also been prepared with a view to better supervise
report on internal control systems. The objective of this the financial sector and to avoid the duplication of
self-assessment process is to keep the operational risk at
efforts of different regulators. The department has
a minimum level by strengthening the internal control and
prepared a database called 'Central Depository for Large
compliance system of a bank.
Credit' (CDLC) as corporate watch-list to observe the
Financial Stability and Macro Prudential Supervision indebtedness of the corporate those may create systemic
consequences.
The Financial Stability Department (FSD) has been
engaged to examine the stability of the financial system Activities of Credit Information Bureau
through macro prudential analysis. Since inception, this
department has been publishing Financial Stability Report The objective of Credit Information Bureau (CIB) has been
on a yearly basis to evaluate overall financial stability minimizing the extent of default loans in the banking
aiming at conveying the risks and vulnerabilities of the sector. The Online system of CIB, established in 2011, has
financial system to various stakeholders. In addition, the been playing an important role to maintain a risk free
department has also been publishing a Quarterly Financial lending procedure in the banking industry. The New CIB
Stability Assessment Report (QFSR) with the aim of Online Solution started its operation in October 2015. It
assessing the overall financial conditions during a quarter. eliminated vendor dependency as well as reduced huge
cost. As a result, the performance of the CIB services has
The department primarily has designed macro stress tests been improved significantly in terms of efficiency and
to quantify the impact of possible changes in economic quality in reducing time and physical movement for the
environment on the financial system. The Financial banks/NBFIs in submission of credit information and CIB
Projection Model (FPM) has also been implemented with
report generation process which ultimately make the loan
the technical assistance of the World Bank. To observe the
processing activities faster.
liquidity management of banks and NBFIs, a tool called
Inter-bank Transaction Matrix (ITM) has been introduced. The CIB database consists of detailed credit information
This matrix will help to find out the institutions, which in respect of borrowers, co-borrowers and guarantors.
may potentially face any crisis and give early warning CIB database includes credit information of borrowers
signals for safeguarding financial institutions. having outstanding amount of Taka 50,000 and above
The department has developed a framework for and defaulted credit card information having outstanding
identifying and dealing with the Domestic Systemically amount of Taka 10,000 and above. The total number of
Important Banks (DSIB) in its jurisdiction due to borrowers increased by around 22 percent to 1,101,046 at
the underlying assumption that the impact of the the end of June 2016 compared to 905,112 at the same
failure of DSIBs will be significantly greater than that month of previous year.
of a non-systemic institution. The formulation and
The total outstanding amount of loans and advances of
implementation plan of Counter-cyclical Capital Buffer
(CCB) in the time of crisis is under process to resist the the banking and nonbanking financial institutions stood
pro-cyclicality of financial system. As part of contingency at Taka 6,852.6 billion (including BLW amount) in June
plans, the department has prepared several documents 2016, which was around 22 percent higher compared to
under lender of last resort (LOLR) and Bank Intervention the same period of last year. Furthermore, total classified
Resolution Plan (BIRP). LOLR aims to provide emergency outstanding amount increased by around 19 percent in
liquidity assistance (ELA) to banks in serious liquidity June 2016 over the same period of last year. The classified
problems to prevent or mitigate potential systemic effects amount was Taka 929.5 billion in June 2016 while it was
resulted from contagion through other banks or market Taka 778.4 billion in June 2015.
SOME OF THE PROJECTS FINANCED BY DUTCH-BANGLA BANK

A partial view of a finishing section of a 100% export oriented knit garment industry located at Fatullah, Narayanganj.

A partial view of a most modern dying section of a 100% export oriented knit composite garment industry located at Mirzapur Bazar, Gazipur.

ANNUAL REPORT 2016 321

A partial view of a most modern printing section of a 100% export oriented garment industry located at Rupganj, Narayanganj.

A partial view of a 100% export oriented knit composite garment industry located at Rupganj, Narayanganj.
A partial view of a most modern & fully automated 100% export oriented denim fabrics manufacturing, finishing , washing and woven
fabrics dying printing and finishing industry located at Sreepur, Gazipur.

ANNUAL REPORT 2016 323

A partial view of a most modern & fully automated beverage industry located at Mouchak, Kaliakoir, Gazipur.

A partial view of a most modern food & beverage industry (biscuit factory) located at Domna, Kashimpur, Gazipur.
A partial view of a most modern & exclusive ice cream factory located at Shyampur, Dhaka.

A partial view of a modern sugar refinery & manufacturing industry located at Meghna Ghat, Sonargoan, Narayanganj.

ANNUAL REPORT 2016 325

A partial view of a modern restaurant located at Gulshan, Dhaka.

A partial view of a fully automated poultry feed plant located at Sreepur, Gazipur.
A partial view of an electric accessories manufacturing industry located at Sreepur, Gazipur.

A partial view of an electronics appliance (refrigerator) manufacturing industry located at Valoka, Mymensingh.

ANNUAL REPORT 2016 327

A partial view of a most modern & sofisticated electric transformer manufacturing industry located at Savar, Dhaka

A partial view of a most modern & exclusive plastic industry located at Kaliganj, Gazipur.
A partial view of a UPVC pipe manufacturing industry located at Zerabo, Savar, Dhaka.

A partial view of a steel re-rolling mill located at Gazaria, Munshiganj.

ANNUAL REPORT 2016 329

A partial view of a most modern & sophisticated Pharmaceutical industry located at Sreepur, Gazipur.

A partial view of a ball point pen industry located at Kamrangirchor, Dhaka.

directors'
report
DIRECTORS' REPORT
Bismillahir Rahmanir Rahim supported Chip based MasterCard and VISA Credit Cards
for the first time in Bangladesh. Thereafter, EMV Nexus
Dear Fellow Shareholders
Debit Cards were introduced in 2015. The EMV feature
The Board of Directors is pleased to welcome the shields DBBL customers from any kind of frauds as per the
honorable shareholders in the 21st Annual General guidelines provided by MasterCard, VISA and Bangladesh
Meeting of the Bank. The Directors' Report along with Bank.
audited financial statements and auditors' report thereon In addition, mobile banking services were introduced in
for the year ended December 31, 2016 are presented 2011 by DBBL which was first of its kind in the country to
before your kind self. provide banking services to mainly those people who are
In the report, DBBL's operational performance of 2016 living in rural areas of the country and mostly deprived
as compared to 2015 has been evaluated and analyzed of conventional banking services. The mobile banking
within the prevailing business environment. The services were rebranded in 2016 with Rocket logo for
information and analysis may be read in conjunction more visibility and customer-centric. The mobile banking
with the DBBL's audited financial statements for the services are now spread all over Bangladesh. DBBL also
year ended December 31, 2016 which have been prepared introduced Biometric Agent Banking services in 2015. This
in accordance with Bangladesh Accounting Standards, is deposit based service and extended hands of DBBL
Bangladesh Financial Reporting Standards, Bangladesh branches. The objective is to bring rural small depositors
Securities & Exchange Commission rules and applicable under the banking umbrella.
legal and regulatory requirements. As part of its strategic plan, DBBL continued to invest
heavily to improve and expand IT network, ATM services,
REVIEW OF BUSINESS OPERATIONS AND and Fast Track and card services, mobile banking and
STRATEGY agent banking services along with branch network,
business promotion and activities related to Social Cause.
Though expenses on such investments in 2016 apparently
Principal activities
resulted in lower profit, however, these will substantially
The principal activities of DBBL are to provide all kinds improve our capacity to deliver customer services with a
of commercial banking products and services to the wide range of products and services that can be matched
customers including working capital finance, trade finance with the best in the industry by strengthening IT platform,
and project finance for corporate customers, SME loans expanding distribution channels and communication
to small traders & businesses; and house building loan, networks, and improving productivity. DBBL's strategic
car loan and wide range of life style and need based loans objective is to have a clear competitive advantage over its
for retail customers. There are various deposit products competitors to provide the full range of banking services
particularly suitable for retail and institutional customers. via multiple delivery channels through state-of-the-art-
DBBL's state-of-the-art IT platform and online banking technology at the lowest cost.
system provide the largest ATM network, Fast Track and
POS services of the country through which customers are Brand positioning
getting any-branch and anytime banking for 24 hours a day
and 365 days a year. IT network also provides e-Commerce Throughout its operation for last 21 years, DBBL has
Payment System, SMS banking, alert banking and internet established itself as a different Bank from others. It has
banking services. Debit cards of MasterCard International differentiated itself as a leader in technology by reaching
and DBBL's propriety cards are in operation. International the latest banking services to its customers through
cards (VISA & MasterCard) of different local & international largest ATM network in the country at free or affordable
banks are accepted at DBBL's ATMs for withdrawal of cost. Fast Track was introduced in 2010 to expand the
money and at POS terminals for payments of shopping, ATM services. Fast Track includes deposit kiosk supported
hotel and dining bills etc. DBBL earlier introduced EMV by an officer from the Bank to facilitate deposit in

ANNUAL REPORT 2016 333

accounts by our valued customers that is in addition to Upazilas under 64 District were operating at the end of
multiple ATMs housed in a Fast Track. The Fast Track and December 2016 to serve the agent banking customers.
ATM network was further expanded in 2016. A total of 392 Agents were engaged in providing re-
balancing service to the Sub-Agents for smooth operation
DBBL has also established itself as a Bank that cares for of customer service.
the society. All the business activities of DBBL are done
in full conformity with social, ethical and environmental Our report on mobile and agent banking services is set
standards. DBBL is the pioneer in Social Cause programs out on pages 165 to 188 of this Annual Report.
in the country. It has been intensifying its resources and
Customer focus and customers right
efforts on a continuous basis to reach the distressed &
needy people of the society to bring smile on their faces DBBL's performance cannot be judged by just looking at
and to improve their health and educational standard and profit figures. DBBL considers that it is the customers'
overall quality of life. right to get modern, online and full ranges of banking
services at an affordable price anytime and anywhere.
DBBL is continuing a massive and expanded scholarship
DBBL's service cost is the lowest in the industry and
program since 2011 which provides yearly scholarships to
in most cases services provided through ATM and Fast
more than 20,000 students mainly studying in HSC and
Track are free. DBBL is committed to put the customers
graduation levels.
interest first. In line with its central vision, DBBL is
promise-bound to extend personalized services to the full
Mobile banking services expanded and satisfaction of the customers that should be considered
covered whole Bangladesh. by the customers to be the best in the industry.
Mobile banking service, first of its kind in the country, Corporate governance ensuring best
introduced by DBBL in 2011, was further strengthened practices
in 2016 to cover the entire Bangladesh. The services
were targeted to reach the unbanked poor people of DBBL complies with good corporate governance practices
the country, who are deprived from traditional banking in line with industry best practices and regulatory
services, living mostly in rural and remote areas to include requirements of The Bangladesh Securities and Exchange
them in financial services network through mobile phone. Commission (BSEC) and Bangladesh Bank ensuring
transparency, accountability and fairness at every step
Compared to traditional banking, mobile banking services of its business operations to maximize performance with
are close to the doorsteps of customers, easier to use governance.
(can be operated without writing any cheque or using
any card but using pin number only) through mobile Corporate governance practices in DBBL are set out on
phone and highly convenient for instant remittance of pages 53 to 74 of this Annual Report.
money from abroad or within the country to any remote
destination of the country. Managing risks ensuring quality and value
of assets and uninterrupted operations
To serve this untapped and unprivileged market, a total
number of 593 employees in 77 offices across the country Risk management covering credit risks, operational risks,
are continuously working together with agent points to market risks and other risks is at the heart of all business
meet customer requirements. In addition, all the 165 operations and transactions of DBBL. Risk management
DBBL Branches have dedicated counters to serve mobile systems are designed and implemented to maintain
banking customers where they can make transactions and improve quality and value of assets, and to ensure
free of cost. smooth banking operations and services in a sustainable
way to protect interest of shareholders, depositors and
A further extension of banking for mass people to reach all the stakeholders. Risk management system also
even the remotest corner of the country, Biometric Agent complies with Bangladesh Banks core risk management
Banking services introduced in 2015 was further expanded guidelines, guideline for risk management division (RMD)
in 2016. As many as 1080 Sub-Agent Points covering 470 as well as capital adequacy as per Basel III.
Future risks and uncertainties in business outlook and cash flows and DBBLs responses to
address such issues.

Potential Risks and Uncertainties Policy and Action plan for mitigating Risks and Uncertainties

Higher capital requirement under Basel -III l Retaining profit

Under Basel -III, capital requirement is much A certain portion of profit generated from business operations
higher along with higher proportion of equity will be retained to strengthen the capital position of the Bank.
capital, to have adequate cushion against
l Strengthening Tier 2 capital
credit risk, market risk, operational risk and
other residual risks. Issuing of subordinated debt to the extent of Taka 5,000.0 million
is under process. Because in future, it may be phased out under
Basel-III or Basel IV thats why adequate measures would be
taken well in time for enhancing Tier-1 capital of the Bank

l Credit rating of borrowers

Increasingly more corporate borrowers will be brought under credit

rating to reduce risk weighted assets and capital requirement,

l Strengthening overall risk management system

Overall risk management system will be further strengthened

throughout the Bank and particularly under RMD to reduce
combined risk exposure of the Bank that will also enhance the
capital to risk-weighted asstet ratio of the Bank.

Falling margin l Emphasis on retail deposit

Higher cost of funding and customers We will put more emphasis on retail account opening and
pressure on yield and limited scope of further increasing stable and low risk retail deposits to contain our cost of
reduction of yield will reduce margin fund and to rationalize operating cost on servicing those accounts

l Benchmarking our lending rate with market

Our lending rate will be rationalized towards competitive market

norms reflecting risk status of particular borrower or group of
borrowers representing similar industries & borrowers keeping in
mind risk- adjusted return on our combined credit portfolio.

l Improving quality of assets

Credit screening, monitoring and recovery efforts will be

strengthened to reduce non-performing loans to improve
effective yield on loans.

ANNUAL REPORT 2016 335

Quality of assets l Diversified lending

Quality of assets may decline for business or We are continuously diversifying our portfolio towards smaller
political uncertainty or external reasons corporate, SMEs and retail borrowers to reduce portfolio, industry
and customer specific credit risks.

New organizational structure has been put in place for

streamlining our lending operations with particular attention
on overall credit risk management and special asset (impaired
assets) management.

l Intensified monitoring

We will continue intensified monitoring and recovery efforts,

under special assets management division and high powered
recovery team, with early warning system in place, to maintain
and improve quality of assets
Containing cost / income ratio l Operating cost will be rationalized

Cost / income ratio may be increasing Operating cost will be rationalized by using modern software,
digitalizing the filing, documentation and working process,
improving productivity of resources, improving internal control
system and reducing duplication of process , wastage and
pilferage.

l Source of income will be diversified

Sources of income will be diversified by developing new value

added products and services with particular emphasis on low risk
corporate fee income and retail products.
Fierce competition in the market l Customer services will be improved

Fierce competition may reduce our market Our state of the art technology, innovative and value added
share and growth potential services will help us to attract new customers and to retain
existing customers.

l Brand image will be strengthened

We will keep strengthening our brand image, delivery channel

and customer services to add value to both corporate and retail
customers to bolster our asset and liability growth.
Liquidity and foreign exchange risk l We will pursue prudent assetliability management.

Volatile money market and foreign exchange Our strong treasury team under the guidance of ALCO is watchful
market may increase risk and reduce profit of the ongoing market condition and they are operating within
limits without taking any undue or disproportionate risk.

l We will have surplus liquidity

We will run comfortable liquidity by containing credit deposit

ratio within limits , expanding low cost & stable deposit base to
stave off any possible liquidity crisis in banking sector.

Market risk in equity l We have no exposure in stock market

Volatile & bearish stock market may increase We have no exposure in stock market. We are dedicating our
market risk and increase loss of the Bank. focus and efforts on our core banking business.
Sufficient skilled manpower may not be l We have strong brand image and competitive package
available
Our working environment and compensation package are highly
Sufficient manpower with adequate competitive. Moreover, our strong brand image is increasingly
experience and expertise may not be available attracting more talented people in joining and staying in DBBL.
to support the customer services, business
growth and brand position
Market condition may limit our business l Our products and services will attract and retain the depositors.
growth.
Depositors can be retained with better access, product and
Current economic and business condition may services. With that end in view we will provide them more
slowdown our deposit and business growth. convenient access to wide range of banking services and options.

We will seek diversified credit growth.

Credit portfolio will be grown in a diversified way within

acceptable risk profile.
Disruption in online banking system l We are upgrading our software system

Excessive burden on software system may We have upgraded our software and hardware in 2012 enabling
disrupt or delay transaction resulting in the IT platform more secure and capable of handling huge
information loss, disruption in business volume compared to our previous system. Moreover, we have
& financial transaction and customer implemented Synchronous Disaster Recovery Site (DRS) to
dissatisfaction. provide uninterrupted and reliable banking convenience to our
customers.

A 2nd data centre is expected to be implemented in 2017, for

having extra cushion for ensuring uninterrupted IT operations
even under adverse condition.
External factors l We will remain cautious

External factors may adversely affect our We are aware of latest development in global economy
business growth particularly in the USA, EURO area and China. However, we
will remain cautious about external factors and take necessary
measures well in advance to protect interest of depositors and
other stake holders. We will be particularly cautious in credit
approval (both funded and non-funded) and having adequate
liquidity.

Our report on Risk management systems in DBBL are set out on Pages 75 to 106 of this Annual Report.

Maintaining adequate capital and capital During 2016, Shareholders' equity (Tier-1 capital)
to risk-weighted asset ratio cushion to increased to Taka 14,937.6 million being 9.2% of risk
absorb the unforeseen shocks weighted assets (RWA) and supplementary capital
(Tier 2 capital) stood at Taka 6,311.8 million being 3.9%
As part of risk management system, it is the policy of
of RWA. Tier-2 capital is comprised of subordinated
DBBL to maintain strong capital adequacy ratio to have
debt obtained from FMO and DEG, revaluation of fixed
sufficient cushion to absorb any unforeseen shock arising
from any potential risk, to ensure long-term solvency assets and revaluation of held to maturity securities

of the Bank and to help sustainable business and and held for trading securities as of 31 December 2016. It
profit growth of the Bank that can maximize value for may be noted that as per Bangladesh Bank regulation,
stakeholders. subordinated loan is eligible as Tier-2 capital and 50% of

ANNUAL REPORT 2016 337

assets revaluation reserve and 50% of revaluation reserve with Basel III requirement, adequate capital adequacy
on held for trading and held to maturity securities are also ratio was maintained in 2016 which stood at 13.1% at
eligible as Tier-2 capital subject to haircut (40% at the end
of 2016) as per Basel III regulation. In line with long-term the end of the year (2015: 13.7%) that was well above
capital management plan of the Bank and in compliance statutory requirement of 10.625 %.

Summary of total capital and capital to risk-weighted asset ratio of DBBL is as follows
In million Taka
Particulars 2016 2015
Computation of capital
Tier I capital [A] 14,937.6 14,729.8
Tier 2 capital [B] 6,311.8 6,407.8
Total capital (Tier I and 2) [C] 21,249.4 21,137.6
Risk weighted assets [D] 162,165.3 154,548.6
Tier 1 capital (against minimum requirement of 5.50%) [A/D] 9.2% 9.5%
Total capital (against minimum requirement of 10.625%) [C/D] 13.1% 13.7%

l Minimum requirement of capital to risk-weighted Asset ratio was 10.625% at the end 2016.

21,137.6 21,249.4

18,077.9

15,403.4

12,284.0
Taka in Million

2012 2013 2014 2015 2016

TOTAL CAPITAL

PERCENTAGE (%) OF CAPITAL TO RISK-WEIGHTED ASSET RATIO

15 13.7% 13.8% 13.7%
13.1%
12.0%
12

2012 2013 2014 2015 2016

AUTOMATION IN DBBL services, DBBL is enabling the customers to maximize their
business potentials and to fulfill their personal hopes and
aspirations.
Development in IT infrastructure and
Online Banking Services Our report on Automation in DBBL is set out on Pages 139
to 164 of this Annual Report.
In todays global business scenario, particularly in
banking sector, technology plays a vital role in executing
all sorts of customer friendly banking operations with SME Financing
cost-effective services. In this sector, competition is rising Small and Medium Enterprises (SMEs) play a significant
steadily day by day. As a result, technology has become
role in the economy in terms of balanced and sustainable
an aide of necessity rather than option in financial
growth, employment generation, development of
institutions just to satisfy the growing service demand
entrepreneurial skills and contribution to GDP. DBBL
of the customer in a cost effective way. Keeping this
in view, the bank has adopted many technology based strongly believes that SME sector is one of the main
solutions that has placed our bank at the zenith of the driving forces of economic growth and there is a market
technological advancement in the banking industry. with huge potential.

With the advance of technology, customers are more In order to facilitate the SMEs of our country, the Bank
powerful and more demanding. They want to get the has been financing the SME sectors since its inception.
service instantly. They do not want to understand the Full-fledged SME Division has been established to
barrier of time and geographical limitations. Without further reinforce SME financing to bring the grass-root
having a state of the art technology, it is not possible entrepreneurs into the main stream of economic growth.
to satisfy such customers. Being understood that Subsequently, SME Division was further strengthened
customers are the king, Dutch-Bangla Bank has set up a with sufficient manpower and various rules and
comprehensive ICT infrastructure to manage the time and procedures at different times. A number of need based
geographical limitations, to bring employee efficiency, to SME products are offered to our SME clients.
provide cost effective service to the customers with the
ultimate objective of complete customer satisfaction. Our report on SME Financing is set out on Pages 213 to
218 of this Annual Report.
Making technology affordable for masses
to facilitate seamless transaction and Retail Banking & e banking
socio-economic development Retail Banking and e-banking divisions of DBBL deliver
In DBBL, banking products and services based on latest diversified electronic and retail banking products and
technology and multiple delivery channels are aimed services including personal loan, auto loan, home loan,
at faster and better customer services at the doorsteps credit card, POS (Point of Sales) and e-Payment solutions
of customers at affordable cost. DBBL being the most through NEXUS gateway to bring utmost comfort and
technologically advanced Bank has established the largest enhance the lifestyle of the consumers of different
ATM and Fast Track network of the country and the first segments.
mobile and agent banking services with a huge investment
which is not at all financially rewarding. Still DBBL has Our report on Retail Banking is set out on Pages 205 to
taken these initiatives as part of its Social Cause programs 212 of this Annual Report.
to reach the benefits to the customers enabling them to
make seamless transaction across the country. At the end Expansion of bank branches and mobile
of 2016, such services were provided through 165 branches,
4,331 ATMs, 708 Fast Tracks, student electronic booths and
banking offices / agent banking operation
a large number of POS terminals spread throughout the The Bank opened 10 new branches in 2016 to reach 165
country. branches at the end of the year spreading the branch
To widen and spread the benefit of the ATM network, DBBL network throughout the country. More branches will be
is allowing customers of other banks to use the Network opened in 2017 to expand the branch and distribution
at nominal cost through central switching network. DBBL network. Mobile banking operation started in 2011 was
is committed to spreading the network even further to also expanded in 2016 covering all over the country to
maximize socio-economic benefits of the country though spread our banking services to the remotest villages of
it is not cost-effective for the Bank. By providing such the country to serve mainly the marginal customers who

ANNUAL REPORT 2016 339

are mostly deprived from traditional banking services. slow-moving economic trends at home and abroad.
Agent banking services were also introduced in 2015 to DBBL is well equipped with state of the art technology
reinforce our commitment to unbanked people mainly in to provide instant services to the growing customers
rural area. These will bring up-to-date banking services demand. International Divisions strategy is to focus
to our existing and potential customers both in rural and
on providing end-to-end solutions for the international
urban areas. At the same time it will optimize utilization
of our strong delivery channels, increase our resource banking requirements of corporate clients. Our mission
position and business potentials that will maximize is to establish DBBL as the Bank of choice for key
profitability and shareholders' value. DBBL's strategy is to global markets. To provide all the international banking
reach the doorsteps of customers to provide full range of solutions more effectively by bringing all Trade Service
banking services based on state- of -the- art- technology units under a single roof. Accordingly, Centralized Trade
and IT platform at free or affordable cost. Service (CTS) has been established to offer premium
service through reliable, accurate, timely delivery and
165 customized solution for business needs.
155
145 DBBL has further streamlined Trade Finance business
136 while strengthening risk management activities. During
126
the year 2016, banks import business was USD 1,712.4
million against 1,720.3 USD million in 2015. The export
business in 2016 was USD 1,704.7 million against 1,655.5
in 2015.
Number

Trade finance experienced higher demand from the

expanding domestic economy. Import and supply chain
services registered higher growth in various industry
segments. International Division of Dutch-Bangla
2012 2013 2014 2015 2016 Bank always strives to enhance and expand foreign
correspondence relationship to facilitate International
BRANCHES
trade business of the Bank. This enabled DBBL to be well
positioned to facilitate trade flows through our global
network with Relationship Management Applications
(RMA) with 602 numbers of reputed foreign banks
covering 77 countries across the globe. To facilitate the
foreign exchange transactions, Bank maintains 21 nostro
4,331
accounts in 9 major currencies with internationally
reputed banks across the globe. Under Trade Finance
3,588
Program of Asian Development Bank (ADB) and sufficient
credit lines from correspondent banks, DBBL enjoys add
2,705 confirmation facilities for letter of credits as and when
2,366 2,454
required. In 2016, international division arranged Add
Confirmation and Discounting for USD 448.0 million only
Number

for the LCs issued by different branches of DBBL.

Bangladesh continues to remain the one of the largest

remittance receiving country in the world and DBBL
2012 2013 2014 2015 2016 experienced a significant growth in market share of
remittances. This has been made possible through
ATM our diversified products and service offerings to meet
the requirements of the Non Resident Bangladeshi
(NRB) spread over the world. Wage remittance is
indivisible from banking services and has a significant
Correspondent banking relationship role in balance of payment. DBBL always focus on
inward remittance and also continues effort on further
During the year 2016, Dutch-Bangla Bank has registered expanding of remittance services through arranging
consistent growth in Foreign Trade business, despite new partnerships and distribution channels to uphold
Dutch-Bangla Banks name at home and abroad. During one. The corporate culture at DBBL as grew over last 21
the year 2016, 46 Exchange Houses all over the world years is such that the members of the staff have ample
routed USD 579.45 million remittances thru Dutch-Bangla opportunities to take initiative and responsibilities to
Bank with a y-o-y growth of 10.88%. unleash their hidden potential to maximize benefits
for themselves and for the society. The challenge is to
Off-shore Banking Unit (OBU) maintain a business like, committed corporate culture
that matches DBBL's mission. Achieving results and
Dutch-Bangla Bank is offering Foreign Currency (FCY) taking responsibility are important components of the
financing facilities at a lower rate of interest to its prime culture we pursue, one in which management and staff
customers through Off-shore Banking Unit. DBBL has work together and are mutually accountable.
two OBU Units located at Chittagong EPZ and Dhaka
EPZ. Total advance rose to USD 98.5 million at the end of DBBL provides challenging but rewarding
December, 2016, from USD 75.4 million in the previous career where good values, fairness and
year. hard work are highly encouraged.
Progressive, healthy and safe working In case of DBBL, it is excellence of DBBL with good values,
environment for staff fairness, potential for success, scope to develop a broad
interesting career etc. which attract people to join and
A high quality and competent human resource is crucial work with DBBL. DBBL always encourages excellence in
to continued growth and success of any business entity performance by rewards and recognition.
which can be achieved by improving skill, knowledge
and productivity of employees. Accordingly, how human Healthcare, safety standards and modern
resource is recruited, trained, developed & motivated working environment
has far reaching implication on long-term sustainable
growth of the Bank. Customers perception & satisfaction l A thorough medical checkup facility is provided to
ultimately determines relative or absolute success or each employee in every alternate year.
failure of an organization. In turn, we need a competent, l Medical allowance @ 10% of basic salary is paid to
well-trained, committed & motivated team of human each employee.
resources with positive & sincere attitude towards l In order to provide highly sophisticated and
customers that can develop, maintain and strengthen encouraging working environment, all the DBBL
trust & confidence in our customers that is crucial for our offices including head office and branches
success. are equipped with modern facilities with air-
conditioning and generator for power back up.
A talented, committed, skilled and fully motivated
team of human resources is the main driving force for l All DBBL offices including head office and branches
providing better, faster and coordinated services to are equipped with fire fighting material and have
the clients and for performing at the highest level in a multiple exit points for emergency exit.
fiercely competitive financial market like Bangladesh.
Accordingly, the Bank's strategy is to attract, retain and Staff welfare schemes in DBBL
motivate the most talented people and providing them
A number of well thought out policies are in place for
with healthy, safe and progressive working environment
welfare of employees in DBBL those are in addition to
and competitive compensation package.
competitive compensation package available in the
industry.
Human Resources policies are designed to
long-term career growth - unleashing the l DBBL Provident Fund
hidden potential l DBBL Gratuity Fund
l DBBL Superannuation Fund
The Bank's Human Resources policies are based on
l House Building Loan Scheme
trust and relationship. The Bank's policy is to look after
l Car lease finance Scheme
people who want to make a long-term career with the
Bank because trust and relationship are built over time. l Festival bonus
Remuneration package may be an important factor to l Performance bonus and
motivate for joining a company, but it is not the only l Study leave

ANNUAL REPORT 2016 341

Career development and training program. attached with the training institute, has been equipped
with sufficient number of latest books published
DBBL attaches utmost importance to the development
by internationally reputed writers and publishers
of its employees through continuous training so that
DBBL executives can have competitive advantage in on banking, finance, management, economics, ITC,
the market. The training need of individual employees marketing, branding, mobile banking, retail banking, etc.
including training need for introducing new products, The Library also provides opportunity to the executives
services and technology is evaluated on a continuous / officers for studying international magazines and
and systematic way. DBBL executives are encouraged
journals like The Economist, The Banker, Business world
to attend high quality training at home and abroad to
and Harvard Business Review.
develop and broaden existing knowledge and skills and to
acquire new skills and expertise.
DBBL training institute organized 15 different training
DBBL Library has been equipped with sufficient number courses and 15 workshops on important banking issues
of latest professional books and journals. with active participation of 1,771 employees during

In order to provide latest knowledge, research and the year 2016. Trainings carried out by the Banks own
strategy to executives and officers, DBBL library, training institute for the year 2016 are outlined below:

Serial Number of Number of

Subject
No courses Participants
1 Training Courses
a FoundationTrainingCourse 9 508
b Credit Risk Management 3 90
c International Trade and Foreign Exchange 3 119
Sub-total of training 15 717
2. Workshop
a Prevention of Money Laundering and Combating Terrorist Financing 6 473
b Green Banking 1 64
c Merchant Acquiring AROs and Merchant Managers 1 60
d Integrated Supervision System (ISS) Reporting 1 119
e Error Free CTR & STR 1 38
f Workshop on Internal Control & Compliance 1 41
g Trade Service Operation: for ensuring smooth customer services 1 79
h Ethics and integrity 2 120
i Credit Monitoring & Recovery Tools and Techniques 1 60
Sub-total of workshop 15 1,054
Grand total of training and workshop 30 1,771

Apart from the above training programs, the Bank also In addition, 13 officials were sent abroad for attending
nominated 279 officials to undergo 160 different training overseas training and workshop on 7 different aspects.
programs/courses organized by different organizations
like Bangladesh Institute of Bank Management (BIBM), The number of DBBL staff increased by 926 in 2016. At
Bangladesh Bank Training Academy (BBTA) and other the end of 2016, number of staff stood at 6,127 compared
similar organizations. to 5,201 at the end of 2015.
CONTRIBUTION TO NATIONAL ECONOMY & In order to reinforce our commitment to rural and
NATIONAL EXCHEQUER marginal people of the country, mobile banking services
and agent banking services are offered by DBBL for
Contribution to national economy providing banking services to mainly those people
who are living in rural areas of the country and mostly
Primarily our business strategies are based on goodwill deprived of conventional banking services.
and trust of the customers and other stakeholders. Our
Social Cause programs help strengthens this trust. DBBL Contribution to the national exchequer
conducts its activities in responsible way to maximize
DBBL made significant contribution to the government
value for its customers, stakeholders and the economy.
in boosting its revenue collection. As per the prevailing
law of the country, the Bank being a corporate citizen
Mobilization and allocation of resources in pays tax and VAT on its own income. Besides, the Bank
optimum way-extending loans to important deducts income tax, VAT and excise duty at source from
sectors at reasonable interest rate and charges clients, depositors and suppliers, and deposits the same
to the national exchequer.
It is the policy of DBBL to mobilize resources from
During the year 2016, the Bank contributed Taka 5,861.0
diversified sources to make it cost effective and
million to national exchequer as against Taka 4,787.1
sustainable to support business growth. Depositors are
million in the previous year.
offered the best technology driven products & services
available in the market to encourage them in savings. 5,861
While resources are allocated at competitive rates
preferably in most productive as well as export-oriented
sectors to maximize economic and social development 4,566
5,193
of the country. Resources are also allocated to farmers, 4,087
4,787
people engaged in small business and trade and other
individuals to make them self reliant so that they can
fulfill their hopes and aspirations and lead a meaningful
life and contribute to social progress. Credit-deposit ratio
is contained within optimum limits to ensure utilization
of resources within tolerable risks.

In 2016 total liability, including capital, deposit, borrowing

and others increased from Taka 244,057.6 million to 2012 2013 2014 2015 2016
Taka 276,844.4 million. Number of deposit accounts
CONTRIBUTION TO NATIONAL EXCHEQUER (TAKA IN MILLION)
increased from 4.4 million to 5.2 million Loans &
advances increased from Taka 152,270.0 million to Taka
173,397.8 million. Within loans, Taka 23,720.5 million Social Cause (Corporate social responsibility)
was given to SME, Taka 3,913.3 million was given to retail Supporting the society at large
and consumer and Taka 2,578.6 million was given to
DBBL being a responsible corporate citizen of the country
Agriculture sector.
has been playing a pioneering role in implementing
various social and philanthropic programs to help
Commitment to rural area and Supporting SME disadvantaged people of the country. Education,
DBBL has seven SME/Agriculture branch mainly in healthcare, human resource development, conservation
rural areas to support SMEs and to bring related low of nature, creation of social awareness, rehabilitation of
income group under financial intermediation to help distress humanities and such other programs to redress
them become self reliant and unleash the potential of human sufferings are some of the important areas where
economic growth in rural area. the Bank carries out its social and philanthropic activities.

ANNUAL REPORT 2016 343

 DBBL, with the support of FMO, has established
1,116
an international standard Environmental & Social
902 Management System (ESMS) of its own by the
838
788
technical assistance of a 3rd party consultant viz. F.I.
Konsult from Czech Republic. As part of the capacity
development program, DBBL has completed, among
528
Taka in Million

others, revision of its existing Green Banking policy along

with internationally accepted exclusion list and launched
Environmental & Social (E&S) Categorization Tool
(Environmental Risk Rating) in excel based software as
2012 2013 2014 2015 2016 per ERM guidelines of Bangladesh Bank and international
best practices.
CONTRIBUTION TO SOCIAL CAUSE

DBBL complies with environmental standard while

In order to discharge activities related to Social Cause financing industrial projects. Projects with likely adverse
Programs in an effective way, DBBL established the
impact on environment are strongly discouraged by
Dutch-Bangla Bank Foundation (DBBF) in 2001 in
DBBL. We are trying to incorporate sound environmental
which contribution is made by the Bank to carry out
management process in business operations of projects
highly important social cause programs in the areas of
education, healthcare etc. DBBLs contribution to Social financed by us that can ensure healthy and sustainable
cause programs was Taka 838.2 million in 2016 compared lives for our future generations. DBBL introduced a
to Taka 901.7 million in 2015. guideline demanding assessment of environmental and
social impacts of the projects to ensure that operations
With the aim of illuminating lives of tens of thousands
of the projects would be eco-friendly.
of students with the light of education, DBBL continued
its newly expanded and massive scholarship program in DBBL is sponsoring social awareness programs for
2016 which would provide yearly scholarship to more than protecting the environment.
20,000 meritorious but needy students studying in HSC
and graduation levels. Environmental degradation and depletion of natural
resources are matters of great concern in Bangladesh
Our Full Report on Social Cause Programs is set out on
Pages 237 to 298 of this Annual Report. like anywhere in the world. Environmental degradation
is taking place due to poverty, over population and lack
DBBL is committed to eco-friendly business of awareness about the environment. It is manifested
environment and green banking by deforestation, destruction of wetlands, depletion of
soil nutrients etc. Natural calamities like floods, cyclones
In light with Banking Regulations & Policy Department,
and tidal bores also result in severe socio-economic and
Bangladesh Bank vide their Circular No. 02 dated
February 27, 2011, DBBL has outlined a detail policy environmental damage. DBBL has been continuously
guidelines for implementing Green Banking activities creating social awareness to protect the environment
under a comprehensive Green Banking Policy in a formal that is essential for present and future generations. With
and structured manner in line with global norms so that end in view, DBBL is regularly advertising in print and
as to protect environmental degradation and ensure electronic media to develop an eco-friendly society for
sustainable banking practices. DBBL believes that Green sustainable and healthy human life.
Banks or environmentally responsible banks do not only
improve their own standards but also affect socially Our Report on Green Banking Activities is set out on
responsible behavior of other businesses. Pages 229 to 236 of this Annual Report.
REVIEW OF FINANCIAL RESULTS AND Despite Higher investments in IT platform, operation
FINANCIAL POSITION OF THE BANK of online banking, expansion of delivery channels like
branch network, Fast Track and ATM network, mobile
Summary
banking services, card services as well as human
Profit declined for squeezed interest margin resources and better services to increasingly higher client
and higher NPL under adverse market condition base though resulted negative profit growth (-41.6%)
despite healthy business growth. in 2016, however, these investments will increase
resource capacity, increase distribution network, improve
Despite healthy business growth, operating profit in 2016
efficiency in operations, augment resource flow to
declined due to falling interest margin under difficult
expand customer base and ensure much better and faster
business environment. The management of DBBL was
customer services. As a result, in the long term, it will
very cautious to protect against credit risk and other
bring substantial and sustainable business and financial
banking risks while conducting business operations
benefits for the Bank.
during the year 2016 in the face of adverse market
condition that was characterized by higher liquidity Net interest income
surplus, unhealthy competition and rising NPL. During the year 2016, the net interest income of the
The deposit of the Bank increased by 11.0% from Taka Bank rose by Taka 175.5 million or 1.8% to Taka 9,963.5
186,765.0 million in 2015 to Taka 207,234.0 million in million from Taka 9,788.0 million of the previous year.
2016, loans and advances increased by a higher rate Net interest income increased marginally mainly due to
of 13.9% from Taka 152,270.0 million to Taka 173,397.8 downward market pressure on interest margin despite
million in 2016 while export business of the Bank higher volume of loans and advances in 2016 which rose
increased by 3.2% and import business marginally by 13.9%. Yield on loans and advances declined by 1.6% to
decreased by 0.2%. Operating profit decreased by 14.2% 9.4% in 2016 from 11.0% in 2015 mainly due to sustained
from Taka 6,433.9 million to Taka 5,521.8 million in lower interest rate prevailing in the market with huge
2016 and net profit after tax also decreased from Taka liquidity surplus. However, Cost of fund decreased by
only 0.8% to 7.3% in 2016 from 8.1% in 2015. That means
3,020.3 million to Taka 1,762.6 million in 2016 showing
lower yield could not be fully passed on deposits, which is
a negative growth of 41.6%. Slower positive growth in
the main reason for lower growth in net interest income.
net interest income (+1.8%) and non-interest income
The share of net interest income to the total income
(+3.6%) resulted in only 2.1% growth in operating income.
of the Bank marginally decreased to 62.5% in 2016
Despite lower growth in revenue, operating expenses
compared to 62.7% of the previous year.
increased by (+13.5%) that was essential for maintaining
and enhancing quality & speed of customer service and Investment income
investment in delivery network and technology. Actual During the year 2016, the investment income of the Bank
expenses growth is attributable to expansion of branch, increased by Taka 12.2 million (+0.6%) to Taka 2,071.6
Fast Track & ATM network; mobile & agent banking million from Taka 2,059.4 million of the previous year.
operation, operation of robust IT platform & online Investment income marginally increased mainly due to
banking, strategic promotional activities and improved higher investments portfolio in 2016 despite falling yield.
customer services provided through multiple delivery
channels to millions of customers. However, as a result of
Non-interest income
higher expenses growth than revenue growth, operating The non-interest income consists of the commission,
profit declined by 14.2%. Net profit after tax decreased exchange and other operating income of the Bank.
(-41.6%) at a higher rate than operating profit mainly due Total non-interest income of DBBL increased by Taka
to higher loan loss provisioning in 2016. Return on equity 134.4 million (+3.6%) in 2016 over the previous year.
was 10.2% in 2016 compared to 19.3% in 2015. Return on Commission and exchange income increased by
assets was 0.7% in 2016 as compared to 1.3% in 2015. Taka 42.4 million (+2.8%) during the year 2016

ANNUAL REPORT 2016 345

mainly due to higher volume of import and export over the country. Installing new software, maintenance
business as well as higher remittance inflow during and up gradation of IT network including ATM and Fast
2016. While other operating income grew by Taka Track, expansion of Mobile & Agent Banking Operations
92.0 million (+4.1%) from Taka 2,258.6 million in and increasing of branch network for supporting
2015 to Taka 2,350.6 million in 2016. Other operating expanded business operations and customer services are
income increased due to growing value added services attributable to higher operating expenses.
provided through multiple delivery channels powered
by state-of- the-art IT network of the Bank including Provision for loans & advances and off-balance
branch Fast Track and ATM network.
sheet exposures
Total operating expenses
Total provision for loans & advances and off-balance
Total operating expenses of the Bank during the year 2016 sheet exposures sharply increased by Taka 2,125.3 million
grew by Taka 1,234.3 million or 13.5%. Higher operating during the year 2016. The specific provision against loans
expenses were necessary to support the long term growth increased by Taka 2,245.2 million during the year because
strategy and overall business operations and customer of few big accounts becoming NPLs at the end of 2016.
services of the Bank during the year 2016. Increased The general provision for unclassified loans decreased
expenses were required to support capacity building and by Taka 92.9 million in consistent with growing loan
expansion of distribution network and multiple delivery portfolio. The general provision for off-balance sheet
channels. Ten new branches were opened in 2016 and 192 exposures decreased by Taka 27.0 million because of lower
new Fast Tracks and 743 ATM units were installed in 2016, growth in outstanding off-balance sheet exposures in the
while mobile & agent banking services were spread to all banking book at the end of 2016.

Summary of operating results

The summary of operating results for the years 2016 and 2015 with the variance is given below:
In million Taka
Amount
Variance
Particulars
(%)
2016 2015

Interestincome 15,645.9 16,028.2 -2.4%

Interestexpenses 5,682.3 6,240.2 -8.9%
Netinterestincome 9,963.5 9,788.0 1.8%
Investmentincome 2,071.6 2,059.4 0.6%
Non-interestincome 3,895.8 3,761.4 3.6%
Totaloperatingincome 15,931.0 15,608.8 2.1%
Totaloperatingexpenses 10,409.2 9,174.9 13.5%
Profitbeforeprovision 5,521.8 6,433.9 -14.2%
Provisionforloansandadvances(includingoff-balance sheetexposures) 2,267.8 142.5 1,491.8%
Otherprovisions 20.0 24.1 -17.1%
Profitbeforetaxes 3,234.0 6,267.3 -48.4%
Provisionfortaxation(currentanddeferred) 1,471.4 3,247.1 -54.7%
Netprofitaftertaxation 1,762.6 3,020.3 -41.6%
 COMPOSITION OF REVENUE AND EXPENSE 2016
11%

7%

9%
2%
23% 2%
10%

35%
10%

19% 72%

Interest income Interst expenses Rent and insurance

Investment income Salary and allowance Stationery, printing

and advertisement
Commission, exchange and brokerage Depreciation and
repair of Banks assets Postage, stamp,
Other operationg income telecommunications
Other expenses

Profit before taxes tax rate increased to 66.5% from 51.4% of 2015 against
nominal rate of 40.0%. The effective tax rate is higher
During the year 2016, profit before taxes of the Bank than nominal tax rate mainly due to adding back of
decreased by Taka 3,033.3 million or 48.4% to Taka specific loan loss provisions which is not tax-deductible,
3,234.0 million from Taka 6,267.3 million of previous year. inadmissible expenses & perquisites as per Income Tax
This growth was mainly attributed to lower operating Law.
profit and much higher specific provisions for few big
loans turning as NPLs at the end of 2016
Net profit after taxation
Provision for taxation The net profit after taxation decreased by Taka 1,257.7
million (-41.6%) to Taka 1,762.6 million from Taka 3,020.3
As per Income Tax Ordinance, 1984, an amount of Taka million of the preceding year. The decline in after tax
2,149.7 has been charged as provision for current tax for profit is attributed to lower operating profit and higher
the year 2016 compared to Taka 3,223.1 million of 2015. specific loan loss provisions. However, this profit after tax
However, Taka (-) 678.3 million has been (credited) as contributed to high Tier 1 capital as well as total capital
deferred tax income for the year 2016 as compared to to risk-weighted asset ratio of the Bank under Basel-III
Taka 24.0 million expenses in 2015 as per provision of strengthening the capital base and widening business
Bangladesh Accounting Standard (BAS) - 12. The effective opportunities for the Bank.

ANNUAL REPORT 2016 347

Significant profitability ratio
The key profitability performance indicators for the years 2016 and 2015 are furnished below:

Year
Particulars Deviation
2016 2015

Netinterestmargin 63.7% 61.1% 2.6%
Non-interestincometototalincome 18.0% 17.2% 0.8%
Cost-incomeratio 65.3% 58.8% 6.6%
Profitaftertaxtototalincome 8.2% 13.8% -5.7%
Returnonaverageassets(ROA) 0.7% 1.3% -0.6%
Returnonaverageequity(ROE) 10.2% 19.3% -9.1%

Netinterestmargin 63.7%
Non-interestincome
tototalincome
18.0%
Cost-incomeratio
65.3%
Profitaftertax
tototalincome 8.2%
Returnonaverage
assets(ROA) 0.7%
Returnonaverage
equity(ROE) 10.2%

REVIEW OF BALANCE SHEET

Total assets
Total assets of the Bank as at 31 December 2016 stood at Taka 276,844.4 million compared to Taka 244,057.6 million
of 2015 registering a growth by Taka 32,786.8 million or 13.4%. Loans and advances is the largest component of assets
followed by investments.
Summary of assets
The composition of assets vis--vis the assets mix and growth are furnished below:
In million Taka
Year Growth Mix (%)
Particulars
2016 2015 (%) 2016 2015

Cash in hand (including foreign currencies) 11,052.0 8,297.0 33.2% 4.0% 3.4%
Balance with Bangladesh Bank and its agent
17,660.7 14,555.9 21.3% 6.4% 6.0%
bank (including foreign currencies)
Balance with other banks and financial institutions 23,576.9 28,745.8 -18.0% 8.5% 11.8%
Money at call and short notice 116.0 5,270.0 -97.8% 0.0% 2.2%
Investments 31,778.5 20,210.3 57.2% 11.5% 8.3%
Loans and advances 173,397.8 152,270.0 13.9% 62.6% 62.4%
Fixed assets 4,871.9 4,519.3 7.8% 1.8% 1.9%
Other assets 14,390.6 10,189.3 41.2% 5.2% 4.2%
Total 276,844.4 244,057.6 13.4% 100.0% 100.0%

COMPOSITION OF ASSETS (%)

1.8 % 5.2% 4.0%
6.4%

8.5%

0.0%

11.5%

62.6%

Loans and advances Balance with other banks Fixed assets

Investments Balance with Bangladesh Bank Other assets

Money at call and short notice Cash in hand

ANNUAL REPORT 2016 349

Cash in hand and balances with Bangladesh Bank and to boost the income from investments as well as
and its agent bank(s) (including foreign currencies) total profitability of the Bank.

As at 31 December 2016, cash in hand and balances with

Bangladesh Bank and its agent banks (including foreign
currencies) stood at Taka 28,712.7 million as against
Taka 22,852.9 million of 2015 registering a growth by
Taka 5,859.8 million or (+25.6%). The adequate cash was
13.4%
required to provide uninterrupted cash services to our
growing customers through multiple delivery channels. Total assets increased by 13.4%
Online transaction facilities with 165 branches, 4,331 units compared to previous year.
of ATMs, and growing number of account holders, both
in core banking and mobile banking operations, required

33.2% 21.3%
adequate cash balance in our branches, Fast Tracks and
ATMs. Growth in deposits required higher balance with
Bangladesh Bank to maintain the CRR minimum @ 6.5%
or above. Cash in hand (including Balance with Bangladesh Bank
foreign currencies) increased and its agent bank (including
Balance with other banks and financial institutions by 33.2% compared to foreign currencies) increased by
previous year. 21.3% compared to previous year.
A portion of the excess fund, if any, after meeting the
requirement to finance loan portfolio, is placed with banks
and financial institutions as term deposits for optimizing 18.0% 97.8%
the utilization of fund and profit of the Bank. Apart
Balance with other banks and Money at call and short
from that, the Treasury Division of the Bank (TFO) has financial institutions assets notice assets decreased by
to maintain some special notice deposit (SND) accounts decreased by 18.0% compared 97.8% compared to previous
and current deposit (CD) accounts with other banks to previous year. year.
and financial institutions in and outside the country for
smooth functioning of treasury operations and trade
finance. Because of optimizing credit-deposit ratio during 57.2% 13.9%
2016, balance outstanding with other banks and financial
Investments increased Loans and advances
institutions decreased to Taka 23,576.9 million at the end
by 57.2% compared to increased by 13.9%
of 2016 from Taka 28,745.8 million at the end of 2015.
previous year. compared to previous year.

Money at call on short notice

Money at call and short notice stood at Taka 116.0 million
at the end of 2016 compared to Taka 5,270.0 million at
7.8% 41.2%
the end of 2015. The balance in this account also declined Fixed assets increased Other assets increased
for optimizing credit-deposit ratio during 2016. The by 7.8% compared to by 41.2% compared to
average yield on fund placement at call and short notice previous year. previous year.
of the Bank was 4.5% in 2016 against 6.1% in 2015.
Treasury team of the Bank was very much watchful
Investments and active to manage market risk & uncertainty and to
ensure maximum return from investments in security,
The Banks investments increased to Taka 31,778.5 bonds, term deposits and overnight lending, in a market
million at the end of 2016 compared to Taka 20,210.3 that was characterized by increasing liquidity surplus
million at the end of 2015. The investments mainly and falling yield throughout the year 2016 with record
included Government securities for Taka 31,291.3 million foreign exchange reserve reaching USD 32.1 billion as at 31
(98.5% of total investments) maintained mainly to cover December 2016 (USD 27.5 billion as at 31 December, 2015).
However, at the end of the year Taka was slightly weaker
SLR requirement and intake of mandatory devolvement
than USD as compared to exchange rate at the beginning
of treasury bonds/treasury bills by Bangladesh Bank. In of the year. The Bank was able to maintain adequate cash
addition, investments were planned in a way to provide reserve requirement (CRR) and statutory liquidity ratio
sufficient liquidity and flexibility in treasury operations (SLR) successfully throughout the year 2016.
Loans and advances Slower business condition throughout the year put
Loans and advances of the Bank stood at Taka 173,397.8 downward pressure on recovery of regular and classified
million at the end of 2016, a growth of 13.9% over Taka loans. Classified loans of the Bank as a percentage of
152,270.0 million at the end of 2015 amidst rapidly falling total loan portfolios increased to 5.2% at the end of
interest yield driven by huge liquidity surplus prevailing in 2016 compared to 3.7% at the end of 2015. However,
the banking industry where too much money is chasing interest was suspended & transferred to non-accrual
too few borrowers. account and full provision was made against all classified
The Bank continued to diversify its portfolio in 2016 to loans despite adverse business conditions, serious
have a diversified client base and portfolio distributed efforts are being continued to bring down the amount
across the sectors to reduce client specific and industry and percentage of classified loan further by exploring
specific concentration and to reduce overall portfolio all options including legal actions and out of court
risk. At the end of 2016, DBBLs total retail loan portfolio
settlements depending on the merit of the cases. Two
was Taka 3,913.3 million (2.3% of total loan portfolio)
high powered Recovery Teams headed by two Deputy
compared to Taka 3,197.2 million at the end of 2015. At
the end of 2016, DBBLs total SME loan portfolio stood Managing Directors have been also making intensified
at Taka 23,720.5 million (13.7% of total loan portfolio) efforts for recovery & regularization of probable and
compared to Taka 22,719.0 million of 2015. already classified loans.

Summary of loans and advances with the risk status

The summary of loans and advances with the risk status is given below:
In million Taka
Positionasof 31December Variance
Particulars
2016 2015 (%)

Totalloansandadvances 173,397.8 152,270.0 13.9%
Less:Totalprovisionforloansandadvances 6,495.6 4,277.7 51.8%
Less:Totalbalanceininterestsuspenseaccount 2,148.4 1,552.4 38.4%
Netloansandadvances 164,753.7 146,439.9 12.5%

Classifiedloans
Substandard 353.0 1,215.7 -71.0%
Doubtful 340.0 191.3 77.8%
Bad/loss 8,306.1 4,217.8 96.9%
Totalclassifiedloansandadvances 8,999.0 5,624.9 60.0%
Netclassifiedloans 355.0 (205.3) -272.9%

Particulars 2016 2015 Deviation

Classifiedloansas%oftotalloans
Substandard 0.2% 0.8% -0.6%
Doubtful 0.2% 0.1% 0.1%
Bad/Loss 4.8% 2.8% 2.0%
Total 5.2% 3.7% 1.5%
Netclassifiedloansas%ofnetloans 0.2% -0.1% 0.3%

ANNUAL REPORT 2016 351

Total liabilities
The Banks outside liabilities (except shareholders equity) as at 31 December 2016 increased to Taka 259,184.2 million
compared to Taka 227,303.2 million at the end of 2015 showing a growth of 14.0%

Deposit, the biggest component of liabilities stood at 80.0 % of total liabilities as at 31 December 2016 compared to
82.2 % of the preceding year-end.

Summary of liabilities (except shareholders equity )

The summary of liabilities along the growth is furnished below:
In million Taka

Positionasof 31December
Particulars Variance
(%)
2016 2015

Borrowingfromotherbanks,financialinstitutionsandagents 27,331.5 20,283.5 34.7%

Deposits

Currentandotherdepositsincludingbillspayable 59,772.6 50,312.9 18.8%

Savingsdeposits 82,480.1 70,609.6 16.8%

Termdeposits 64,981.3 65,842.5 -1.3%

Totaldeposits 207,234.0 186,765.0 11.0%

Otherliabilities 20,918.6 15,852.8 32.0%

Subordinateddebt 3,700.1 4,401.9 -15.9%

Totalliabilities 259,184.2 227,303.2 14.0%

Deposits deposits increased substantially in 2016. The share of

cost free or low cost deposits increased to 78.1% of total
The deposits grew by Taka 20,469.0 million in 2016
deposits in 2016 (75.9% in 2015). As a result, weighted
from Taka 186,765.0 million to Taka 207,234.0 million
average cost of fund including operating cost decreased
showing a growth of 11.0%. The growth was supported
to 7.3% in 2016 from 8.1% in 2015.
by expansion of distribution network; by opening 10
new branches, 743 new ATM units and 192 Fast Tracks The savings deposits of the Bank increased by Taka
at different rural and urban locations throughout the 11,870.5 million to Taka 82,480.1 million from Taka
country. DBBLs deposit mix further improved in 2016. 70,609.6 million of the preceding year showing a
Online banking with expanded ATM network and tailor growth of 16.8%. The share of high cost fixed deposits
made products and customer services helped increase decreased to 21.9% of total deposits in 2016 from 24.1%
confidence of customers in DBBL. As a result, number of the preceding year with the absolute amount of fixed
of savings and current accounts as well as amount of deposits increased by Taka 411.4 million.
Deposit growth and mix
The growth and deposit mix at the end of 2016 and 2015 are furnished below:
In million Taka

Outstandingamount Deposit Mix (%)

Growth
Particulars
(%)
2016 2015 2016 2015

Current and other accounts 59,909.4 50,519.1 18.6% 28.9% 27.0%

Savings deposits 82,480.1 70,609.6 16.8% 39.8% 37.9%

Special notice deposits (SND) 19,397.3 20,600.5 -5.8% 9.4% 11.0%

Fixed deposit receipt (FDR) accounts 45,447.2 45,035.8 0.9% 21.9% 24.1%

Total 207,234.0 186,765.0 11.0% 100.0% 100.0%

DEPOSIT MIX 2016 (%) DEPOSIT MIX 2015 (%)

21.9% 24.1%
27.0%
28.9%

9.4%

11.0%

37.9%
39.8%
Currentandotheraccounts Currentandotheraccounts

Savingsdeposits Savingsdeposits

Specialnoticedeposits Specialnoticedeposits

Fixeddeposits Fixeddeposits

ANNUAL REPORT 2016 353

Borrowing from other banks, financial institutions Finance Company (FMO) and Deutsche Investitionsund
and agents Entwicklungsgesellschaft mbH (DEG) mainly
for strengthening the Tier 2 capital of the Bank.
Borrowing from other banks, financial institutions and
Subordinated loans are eligible as Tier 2 capital of the
agents including overnight borrowing stood at Taka
Bank subject to the regulatory conditions.
27,331.6 million at the end of 2016 compared to Taka
20,283.5 million at the end of 2015. There was no overnight Shareholders equity
borrowing from call market at the end of the year.
Regulatory requirement stipulates that the Bank should
The Banks borrowing includes borrowing against refinance have 10.625% capital to risk-weighted asset ratio (CRAR)
from Bangladesh Bank for financing under (i) housing
as per Basel-III or Taka 4,000.0 million whichever is
scheme, (ii) refinance for export financing under Export
higher. As at 31 December 2016, DBBLs shareholders
Development Fund (EDF), (iii) Small & Medium Enterprise
equity increased to Taka 17,660.2 million from Taka
financing and (iv) financing to the power sector under
16,754.3 million of 2015 registering an increase by Taka
Investment Promotion and Financing Facility (IPFF).
905.8 million (5.4%). The increase mainly resulted from
Besides, the Bank has been availing credit line facilities
from the Rupantarita Prakritik Gas Company Limited Taka 1,762.6 million after tax profit. As per Bangladesh
(RPGCL) for financing CNG buses/ chassis under Dhaka Bank regulation, paid up share capital and statutory
Clean Fuel project and credit lines from Netherlands reserve should be at least Taka 4,000.0 million of which
Development Finance Company (FMO), The Netherlands. paid up share capital should be minimum Taka 2,000.0
million. Against this, the paid up share capital of the
Subordinated debt Bank stood at Taka 2,000.0 million at the end of 2016.
The total amount of subordinated loan stood at The statutory reserve increased to Taka 8,134.4 million
Taka 3,700.1 million at the end of 2016 against Taka at the end of 2016 from Taka 7,487.6 million of 2015. The
4,401.9 million at the end of 2015. Subordinated loans paid up share capital and the statutory reserve together
have been arranged from Netherlands Development stood at Taka 10,134.4 million as at 31 December 2016.

The summary of shareholders equity is furnished below:

In million Taka

Positionasof 31December
Variance
Particulars
(%)
2016 2015

Shareholdersequity

Paidupsharecapital 2,000.0 2,000.0 0.0%

Statutoryreserve 8,134.4 7,487.6 8.6%

Otherreservesandsharepremium 3,088.1 3,144.9 -1.8%

Retainedearning 4,437.7 4,121.9 7.7%

Totalshareholdersequity 17,660.2 16,754.3 5.4%

Capital management plan and capital to risk-weighted asset ratio
As per Bangladesh Bank guidelines for determining minimum capital requirement (MCR) and the capital to risk-
weighted asset ratio (CRAR) for banks, Basel III guidelines has been in force with effect from 1 January 2015.
Under Basel III guideline, the capital to risk-weighted asset ratio (CRAR) at the end of 2016 stood at 13.1% compared to
13.7% of the previous year against regulatory requirement of minimum 10.625%. Tier 1 capital increased to Taka 14,937.6
million being 9.2% of total of risk weighted assets (RWA). Supplementary capital (Tier 2 capital) stood at Taka 6,311.8
million being 3.9% of RWA.
The details of risk weighted assets, minimum capital requirement and the capital to risk-weighted asset ratio (CRAR)
are given below:
In million Taka
Asof 31December Variance
Particulars
2016 2015 (%)
Totalriskweightedassets 162,165.3 154,548.6 4.9%
Tier1capital 14,937.6 14,729.8 1.4%
Tier2capital 6,311.8 6,407.8 -1.5%
Totalcapital 21,249.4 21,137.6 0.5%
Particulars 2016 2015 Deviation
Minimumcapitalrequirement 10.625% 10.0% 0.625%
Tier1capital to risk-weighted asset ratio 9.2% 9.5% -0.3%
Tier2 capital to risk-weighted asset ratio 3.9% 4.2% -0.3%
Totalcapital to risk-weighted asset ratio 13.1% 13.7% -0.6%

REVIEW OF OFF - BALANCE SHEET EXPOSURES AS AT 31 DECEMBER 2016

Total outstanding amount of off-balance sheet exposures of the Bank stood at Taka 60,051.7 million at the end of
2016 from Taka 55,015.0 million of 2015.
The summary of off-balance sheet exposures is furnished below:
In million Taka
Particulars 2016 2015 Growth (%)
Acceptances and endorsements - - -
Lettersofguarantee 5,203.5 3,870.9 34.4%
Irrevocablelettersofcredit 20,376.8 15,982.9 27.5%
Billsforcollection 29,178.3 31,223.5 -6.5%
Othercontingentliabilities 5,293.1 3,937.6 34.4%
Total 60,051.7 55,015.0 9.2%

Import-Export business
During the year under review, import business of DBBL stood at Taka 134,768.1 million against Taka 135,047.1 million
registering a negative growth of 0.2% while export business stood at Taka 134,166.5 million against Taka 129,954.5
million registering a growth of 3.2%.
The summary of Import and Export business for the years 2016 and 2015 is given below:
In million Taka
Particulars 2016 2015 Growth (%)
Import 134,768.1 135,047.1 -0.2%
Export 134,166.5 129,954.5 3.2%
Total 268,934.6 265,001.6 1.5%

Key financial information and ratios for last five years

Key financial information and ratios for last five years are set out on Page no. 26 of this Annual Report.

ANNUAL REPORT 2016 355

Future outlook for Banking Industry l Running adequate liquidity to ensure smooth
transactions including that of ATMs, mobile
Macroeconomic scenario
banking and agent banking transactions to protect
Bangladesh Bank is pursuing the monetary policy stance the bank from exposure to excessive interest rate
with a view to containing inflation, reducing interest or liquidity crises;
rate, expanding private sector credit growth, and limiting
government borrowing from the banking system for Key targets in 2017
healthy, inclusive and sustainable economic growth.
Keeping in view the above goals, in the business plan
Business and financial plan 2017 and budget for 2017, deposits are projected to grow by
Within the context of above noted macroeconomic 9.2% to Taka 262,000.0 million and loans are projected
scenario, depressed business confidence, lower than to increase by 11.5% to Taka 227,500.0 million. Import
expected investment and declining interest rate in the and export businesses are expected to grow by 26.1%
market resulting from surplus liquidity condition, DBBL and 26.7% to Taka 170,000.0 million and Taka 170,000.0
has formulated its business and financial plan for 2017. million respectively. With improved deposit mix,
Strategic goals of business & financial plan 2017 better quality of assets, growing funded and non-
funded business particularly those related to corporate
l Be cautiously optimistic about business prospect in
business and value added online services, and increased
2017;
productivity of resources, healthy growth in operating
l Strengthening risk management to protect against profit and after tax profit is expected in 2017.
any unusual risk arising from uncertainty in local
market and international economic and financial Strategies to achieve the business & financial goals
crises; in 2017
l Expanding funded and non-funded business growth The above growth will be supported by expansion of
while ensuring quality of portfolio and limiting branches & ATM network and further up gradation of
risk; In this respect, the organizational structure of
IT and online banking system to provide better and
the bank has been changed mainly strengthening
faster services to customers. Mobile and Agent banking
and focusing on streamlining business operations
operation will be expanded further. Organizational
and expansions by centralizing credit operations,
structure and business process will be further streamlined
marketing and decision making.
to improve efficiency & productivity, rationalize cost
l Containing cost of fund by opening new savings and enhance customer satisfaction. Human resources
deposit accounts, introducing value added retail will be further strengthened through motivations and
deposit products & services and increasing the incentives to improve operational efficiency, productivity
amount and percentage of low cost deposits; and performance. A number of new products and services
l Rationalizing operating cost to optimize particularly in mobile banking and agent banking, SME and
operational efficiency and effectiveness, enhancing retail segments will be introduced to provide wider choice
productivity of resources. and convenience to the customers.

Appropriation of profit
The financial results and recommended appropriation of profit for the year 2016 are given below:
In million Taka
Particulars 2016 2015
Netprofitaftertax 1,762.6 3,020.3
Add: Retainedearningsbroughtforwardfrompreviousyears 4,121.9 3,555.1
Profitavailableforappropriations 5,884.5 6,575.4
AppropriationsrecommendedbytheBoardofDirectors
Transfertostatutoryreservefund 646.8 1,253.5
Transfertodividendequalizationaccount 200.0 400.0
Proposeddividend: Cashdividend 30% i.e. 3 Taka pershareof Taka 10 each
600.0 800.0
(2015: Cashdividend40%i.e. Taka4per share of Taka 10 each.)
Retainedearningscarriedforward 4,437.7 4,121.9
The Bank earned a net profit after tax of Taka 1,762.6 BRPD Circular Letter No. 12 dated 11 July 2001 and order of
million in 2016 that was 41.6% lower than Taka 3,020.3 Bangladesh Securities and Exchange Commission dated
million in 2015. 08 July 2015, they are eligible for re-appointment for 2017.
They will be appointed and their remuneration will be
Sustainable dividend policy to ensure growth and fixed for the year 2017 by the Honorable Shareholders in
maximize share value this Annual General Meeting.
DBBLs dividend policy is designed in a way to ensure
sustainable growth of the Bank with strong capital
Gratitude
adequacy ratio, which must maximize value for The members of the Board of Directors of DBBL would
shareholders. DBBL paid 40.0% cash dividend in 2015. like to express their gratitude to all shareholders, valued
The proposed cash dividend for 2016 is 30%. clients, patrons, all employees and well-wishers for their
continued support and cooperation, without which the
Election of the Directors Bank would not be able to achieve its present amazing
position. We are also indebted to the Government of
In terms of Article 113 of the Articles of Association of the
Bangladesh, Bangladesh Bank, Bangladesh Securities
Company, at every Ordinary General Meeting, one-third
and Exchange Commission, Office of the Registrar of Joint
of the Directors for the time being or if their number is
Stock Companies & Firms, Dhaka Stock Exchange and
not three or multiple of three, then the number nearest
Chittagong Stock Exchange for their continued support
to one-third shall retire from the office. Accordingly, as
and cooperation.
per Article 114, Mr. Md. Nazim Uddin Bhuiyan, FCMA
and Mr Mohd. Khorshed Alam will retire from the We look forward for your continuous support and best
office of Directors. They are eligible for re-election/re- wishes for meeting the future challenges awaiting us in
appointment. They offered themselves for re-election. the fiercely competitive financial market and satisfying
ever increasing expectation of our customers, patrons and
Meetings of the Directors well wishers.

13 Meetings of the Board of Directors, 45 Meetings of the

Executive Committee of the Board, 15 Meetings of the
Audit Committee of the Board and 06 Meetings of the With best regards,
Risk Management Committee of the Board were held On behalf of the Board of Directors
during the year under review.

Appointment of Auditors
Our existing Auditors M/s. A Qasem & Co., Chartered
Accountants has completed audit for the year ended 2016 Sayem Ahmed
as first year of their audit and as per Bangladesh Banks Chairman

ANNUAL REPORT 2016 357

directors responsibility for internal control Effective Internal Audit Department with
and financial reporting Direct Access and Reporting to Audit
Committee of the Board
The Board of Directors of DBBL is responsible to
cause preparation and true & fair presentation of Inter Control & Compliance Division (IC&CD) of the Bank
the annual financial statements of 2016 and other work under close coordination with Audit Committee of
financial information and reports contained in this the Board for ensuring better internal control, effective
annual report by the management. The accompanying operational procedure and reliable financial reporting.
financial statements have been prepared in accordance
IC&CD undertakes details audit of the activities of
with Bangladesh Accounting Standards as adopted
branches and head office on a regular basis. Its reports
by Institute of Chartered Accountants of Bangladesh
and Companies Act 1994, Banking Companies Act 1991 are presented directly to Audit Committee of the Board.
and Securities and Exchange Rules 1987 as considered IC&CD has also direct access to the Audit Committee of
relevant and appropriate under the circumstances. In the Board to discuss any matter related to their audit,
cases where amounts are stated based on estimate those adequacy of internal control procedure and compliance as
are based on informed judgment and estimate made by well as overall risk management of the Bank.
the management and agreed by Board of Directors. The
financial information and data provided in this annual External Auditors has full access to the
report is fully consistent with financial statements. Audit Committee of the Board for ensuring
effectiveness of internal control procedure
The Board is responsible for ensuring and reliability of financial reporting
Adequate Internal Control
A. Qasem & Co., Chartered Accountants is external
The Board of Directors is responsible for ensuring adequate auditors of the Bank for auditing annual financial
internal control on financial transactions and reporting. In statements. The A. Qasem & Co. keeps an understanding
order to ensure effective risk management, the Board also of DBBLs internal control system for preparation
ensures that adequate internal control system is in place of financial statements and financial reporting and
and it is consistently complied with to provide reasonable
undertakes such auditing tests and other auditing
assurance that financial records are reliable for preparation
procedures as may be considered appropriate under the
of financial statements, that quality of financial reporting
is maintained, that assets of the bank are safeguarded circumstances to express its independent opinion on the
against unauthorized use or disposition and that financial statements that follow. The A. Qasem & Co.
accountability for assets and business transactions are has full access to the Audit Committee to discuss any
maintained. The Board monitors and updates internal matter related to its audit to ensure reliability of financial
control procedure on a continuous basis. reporting and effectiveness of internal control procedure.

Internal control, accounting policies and The Board understands that despite taking all cares,
any internal control system may have limitations in its
financial reporting under direct supervision
effectiveness. However, the Board believes that effective
of Audit Committee of the Board that is control was maintained over preparation of financial
fully comprised of non-executive members statements for the year ended December 31, 2016.
of the Board and independent of executive
management
DBBLs internal control, accounting policies and financial With best regards,
reporting are under direct supervision of the Audit
Committee of the Board that in turn report to the Board On behalf of the Board of the Directors
of Directors for general oversight and supervision. Audit
Committee of the Board is fully independent of executive
management. The Committee regularly reviews reports
prepared by Internal Control & Compliance Division
(IC&CD) covering all the business operations of the Bank Sayem Ahmed
with particular focus on core risks. Chairman
auditors'
report
AUDITORS REPORT TO THE SHAREHOLDERS OF
DUTCH-BANGLA BANK LIMITED

We have audited the accompanying financial statements the assessment of the risks of material misstatement
of Dutch-Bangla Bank Limited (the Bank), which of the financial statements of the Bank, whether due
comprise the balance sheet as at 31 December 2016 and to fraud or error. In making those risk assessments, the
the profit and loss account, statements of changes in auditor considers internal control relevant to the entitys
equity and cash flow statements for the year then ended, preparation of financial statements of the Bank that give
and a summary of significant accounting policies and a true and fair view in order to design audit procedures
other explanatory information. that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting
Managements Responsibility for the policies used and the reasonableness of accounting
Financial Statements and Internal Controls estimates made by management, as well as evaluating
Management is responsible for the preparation of the overall presentation of the financial statements of
financial statements of the Bank that give a true and fair the Bank.
view in accordance with Bangladesh Financial Reporting
We believe that the audit evidence we have obtained is
Standards (BFRS) as explained in note 2 and for such
sufficient and appropriate to provide a basis for our audit
internal control as management determines is necessary
opinion.
to enable the preparation of financial statements of
the Bank that are free from material misstatement, Opinion
whether due to fraud or error. The Banking Companies
In our opinion, the financial statements of the Bank give
Act, 1991 (as amended in 2013) and the Bangladesh Bank
a true and fair view of the financial position of the Bank
Regulations require the Management to ensure effective
as at 31 December 2016 and of its financial performance
internal audit, internal control and risk management
and cash flows for the year then ended in accordance with
functions of the Bank. The Management is also required
Bangladesh Financial Reporting Standards (BFRS) as
to make a self-assessment on the effectiveness of anti-
explained in note 2.
fraud internal controls and report to Bangladesh Bank on
instances of fraud and forgeries. Report on Other Legal and Regulatory
Auditors Responsibility Requirements
In accordance with the Companies Act 1994, Securities
Our responsibility is to express an opinion on these
and Exchange Rules 1987, the Banking Companies Act,
financial statements based on our audit. We conducted
1991 (as amended in 2013) and the rules and regulations
our audit in accordance with Bangladesh Standards on
issued by Bangladesh Bank, we also report the following:
Auditing (BSA). Those standards require that we comply
with ethical requirements and plan and perform the (a) we have obtained all the information and
audit to obtain reasonable assurance about whether the explanation which to the best of our knowledge
financial statements of the Bank are free from material and belief were necessary for the purpose of our
misstatement. audit and made due verification thereof;
An audit involves performing procedures to obtain (b) to the extent noted during the course of our
audit evidence about the amounts and disclosures in audit work performed on the basis stated under
the financial statements of the Bank. The procedures the Auditors Responsibility section in forming
selected depend on the auditors judgment, including the above opinion on the financial statements

ANNUAL REPORT 2016 361

 of the Bank and considering the reports of the (e) the expenditure incurred was for the purposes of
Management to Bangladesh Bank on anti-fraud the Banks business;
internal controls and instances of fraud and
(f) the financial statements of the Bank have been
forgeries as stated under the Managements
drawn up in conformity with prevailing rules,
Responsibility for the Financial Statements and
regulations and accounting standards as well
Internal Control:
as with related guidance issued by Bangladesh
i) internal audit, internal control and risk Bank;
management arrangements of the Bank,
(g) adequate provisions have been made for
as disclosed in the notes to the financial
statements appeared to be materially advances and other assets which are, in our

adequate; opinion, doubtful of recovery;

ii) nothing has come to our attention (h) the records and statements submitted by the

regarding material instances of forgery branches have been properly maintained and
or irregularity or administrative error consolidated in the financial statements;
and exception or anything detrimental
(i) the information and explanation required by us
committed by employees of the Bank and
have been received and found satisfactory;
its related entities;
(j) we have reviewed over 80% of the risk weighted
(c) in our opinion, proper books of account as
assets of the Bank and we have spent around
required by law have been kept by the Bank so
4,900 person hours for the audit of the books
far as it appeared from our examination of those
and accounts of the Bank; and
books;
(k) Capital to Risk-Weighted Asset Ratio (CRAR)
(d) the balance sheet and profit and loss account
as required by the Bangladesh Bank has been
of the Bank dealt with by the report are in
agreement with the books of account and return; maintained adequately during the year.

Dhaka: 22 February 2017 A Qasem & Co.

Chartered Accountants
 financial
statements
Balance Sheet as at 31 December 2016
(Main Operation and Off-shore Banking Unit)

PROPERTY AND ASSETS Notes 2016 2015

Taka Taka
Main Operation Off-shore Total Total
Cash
In hand (including foreign currencies) 4 11,051,999,011 - 11,051,999,011 8,296,998,632
Balance with Bangladesh Bank and its agent bank (s) 5 17,660,677,577 - 17,660,677,577 14,555,926,865
(including foreign currencies) 28,712,676,588 - 28,712,676,588 22,852,925,497
Balance with other banks and financial institutions 6
In Bangladesh 18,253,220,112 2,924,658,763 21,177,878,875 27,591,599,177
Outside Bangladesh 2,399,011,762 - 2,399,011,762 1,154,177,150
20,652,231,874 2,924,658,763 23,576,890,637 28,745,776,327

Money at call on short notice 7 116,000,000 - 116,000,000 5,270,000,000

Investments 8
Government 31,291,256,232 - 31,291,256,232 19,405,280,474
Others 487,243,434 - 487,243,434 804,983,434
31,778,499,666 - 31,778,499,666 20,210,263,908
Loans and advances 9
Loans, cash credits, overdrafts, etc. 161,604,799,911 810,947,527 162,415,747,438 146,351,641,108
Bills purchased and discounted 4,043,027,535 6,939,022,658 10,982,050,193 5,918,359,357
165,647,827,446 7,749,970,185 173,397,797,631 152,270,000,465

Fixed assets including land, building, 10 4,871,866,975 82 4,871,867,057 4,519,304,790

furniture and fixtures
Other assets 11 14,374,242,044 16,387,601 14,390,629,645 10,189,299,337
Non-banking assets - - - -
TOTAL ASSETS 266,153,344,593 10,691,016,631 276,844,361,224 244,057,570,324

LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and agents 12 16,897,769,257 10,433,779,680 27,331,548,937 20,283,536,724

Deposits and other accounts 13

Current deposits and other accounts 55,933,478,154 48,624,470 55,982,102,624 47,484,925,764
Bills payable 3,790,478,406 - 3,790,478,406 2,827,945,083
Savings bank deposits 82,480,121,034 - 82,480,121,034 70,609,619,683
Term deposits 64,981,263,299 - 64,981,263,299 65,842,511,008
207,185,340,893 48,624,470 207,233,965,363 186,765,001,538
Other liabilities 14 20,779,319,601 139,246,609 20,918,566,210 15,852,794,427
Subordinated debt 15 3,700,122,226 - 3,700,122,226 4,401,902,157
TOTAL LIABILITIES 248,562,551,977 10,621,650,759 259,184,202,736 227,303,234,846

ANNUAL REPORT 2016 365

Balance Sheet as at 31 December 2016
(Main Operation and Off-shore Banking Unit)

PROPERTY AND ASSETS Notes 2016 2015

Taka Taka
Main Operation Off-shore Total Total
Shareholders equity
Paid up share capital 16.2 2,000,000,000 - 2,000,000,000 2,000,000,000
Share premium 17 11,067,500 - 11,067,500 11,067,500
Statutory reserve 18 8,134,390,476 - 8,134,390,476 7,487,588,738
Other reserve 19 - - - -
Dividend equalization account 20 1,566,827,195 - 1,566,827,195 1,366,827,195
Assets revaluation reserve 21 850,413,777 - 850,413,777 850,413,777
Revaluation reserve of HTM securities 22 59,754,912 - 59,754,912 116,544,853
Proposed dividend: Cash dividend @ 30%
i.e. Taka 3 per share of Taka 10 each.
(2015:Cashdividend40%i.e.Taka4per share of
Taka 10 each) 600,000,000 - 600,000,000 800,000,000
Retained earnings 4,368,338,756 69,365,872 4,437,704,628 4,121,893,415
TOTAL SHAREHOLDERS EQUITY 17,590,792,616 69,365,872 17,660,158,488 16,754,335,478
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 266,153,344,593 10,691,016,631 276,844,361,224 244,057,570,324

OFF-BALANCE SHEET ITEMS

Contingent liabilities 24

Acceptances and endorsements - - - -

Letters of guarantee 5,203,462,715 - 5,203,462,715 3,870,934,586
Irrevocable letters of credit 20,373,991,602 2,815,128 20,376,806,730 15,982,927,771
Bills for collection 29,178,346,804 - 29,178,346,804 31,223,479,628
Other contingent liabilities 5,293,065,506 - 5,293,065,506 3,937,612,870
Total contingent liabilities 60,048,866,627 2,815,128 60,051,681,755 55,014,954,855

Other commitments
Documentary credits and short term trade-related transactions - - - -
Forward assets purchased and forward deposits placed - - - -
Undrawn note issuance and revolving underwriting facilities - - - -
Undrawn formal standby facilities, credit lines and other commitments - - - -
Total other commitments - - - -

Total off-balance sheet items including contingent liabilities 60,048,866,627 2,815,128 60,051,681,755 55,014,954,855

The annexed notes 1 to 50 form an integral part of these financial statements.

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Auditors' report to the Shareholders

See annexed report of date

______________________________
Dhaka, 22 February 2017 A. Qasem & Co.
Chartered Accountants
Profit and Loss Account for the year ended 31 December 2016
(Main Operation and Off-shore Banking Unit)

2016 2015
Notes
Taka Taka
Main Operation Off-shore Total Total

Interest income 26 15,345,915,147 299,955,552 15,645,870,699 16,028,164,208

Interest paid on deposits and borrowings etc. 27 5,467,727,487 214,594,108 5,682,321,595 6,240,169,618
Net interest income 9,878,187,660 85,361,444 9,963,549,104 9,787,994,590
Investment income 28 2,071,631,905 - 2,071,631,905 2,059,385,395
Commission, exchange and brokerage 29 1,545,244,966 - 1,545,244,966 1,502,836,751
Other operating income 30 2,349,739,222 856,198 2,350,595,420 2,258,577,637
Total operating income 15,844,803,753 86,217,642 15,931,021,395 15,608,794,373
Salary and allowances 32 3,033,532,963 4,983,114 3,038,516,077 2,873,797,161
Rent, taxes, insurance, electricity, etc. 34 1,385,333,829 - 1,385,333,829 1,142,193,758
Legal expenses 35 3,506,506 - 3,506,506 4,556,127
Postage, stamp, telecommunications, etc. 36 272,852,747 4,904 272,857,651 237,788,107
Stationery, printings, advertisements, etc. 37 365,019,157 - 365,019,157 631,694,640
Managing Director & CEOs salary and allowances 38 10,646,000 - 10,646,000 10,756,000
Directors fees 39 252,000 - 252,000 215,000
Auditors fees 40 701,500 - 701,500 540,500
Charges on loan losses 41 357,439,118 - 357,439,118 49,701,103
Depreciation and repair of banks assets 42 1,573,036,637 315,430 1,573,352,067 1,525,495,759
Other expenses 43 3,400,983,563 590,114 3,401,573,677 2,698,114,983
Total operating expenses 10,403,304,020 5,893,562 10,409,197,582 9,174,853,138
Profit before provision 5,441,499,733 80,324,080 5,521,823,813 6,433,941,235

Provision for loans and off-balance sheet exposures 14.1.3

Specific provision for loans 14.1.3(A) 1,985,931,729 - 1,985,931,729 (259,249,975)
General provision for loans 14.1.3(B) 213,200,000 18,316,127 231,516,127 324,371,107
General provision for off-balance sheet exposures 14.1.3(B) 50,367,269 - 50,367,269 77,350,244
2,249,498,998 18,316,127 2,267,815,125 142,471,376
Other provision 14.1.1.1 20,000,000 - 20,000,000 24,130,000
Total provision 2,269,498,998 18,316,127 2,287,815,125 166,601,376
Profit before taxes 3,172,000,735 62,007,953 3,234,008,688 6,267,339,859
Provision for taxation
Current tax 14.1.2 2,149,728,516 - 2,149,728,516 3,223,066,022
Deferred tax 11.2.2 (678,332,779) - (678,332,779) 23,991,629
1,471,395,737 - 1,471,395,737 3,247,057,651
Net profit after taxation 1,700,604,998 62,007,953 1,762,612,951 3,020,282,208
Retained earnings brought forward from previous years 4,114,535,496 7,357,919 4,121,893,415 3,555,079,179
5,815,140,494 69,365,872 5,884,506,366 6,575,361,387
Appropriations
Statutory reserve 18 646,801,738 - 646,801,738 1,253,467,972
Dividend equalization account 20 200,000,000 - 200,000,000 400,000,000
Proposeddividend:Cash dividend @ 30% i.e. Taka 3 per share
of Taka 10 each. (2015:Cashdividend40%i.e.Taka4per
share of Taka 10 each) 600,000,000 - 600,000,000 800,000,000
1,446,801,738 - 1,446,801,738 2,453,467,972
Retained earnings carried forward 4,368,338,756 69,365,872 4,437,704,628 4,121,893,415
Earnings per share (EPS) 23 8.81 15.10

The annexed notes 1 to 50 form an integral part of these financial statements.

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Auditors' report to the Shareholders

See annexed report of date

______________________________
Dhaka, 22 February 2017 A. Qasem & Co.
Chartered Accountants

ANNUAL REPORT 2016 367

Cash Flow Statement for the year ended 31 December 2016
(Main Operation and Off-shore Banking Unit)
Notes 2016 2015
Taka Taka
A) Cash flows from operating activities Main Operation Off-shore Total Total

Interest receipts in cash 17,385,700,301 299,955,552 17,685,655,853 18,101,128,599

Interest payments (5,587,795,876) (214,594,108) (5,802,389,984) (6,433,452,862)
Dividend receipts in cash 5,712,228 - 5,712,228 425
Gain on sale of shares - - - -
Gain on sale of securities - - - -
Recoveries of loan previously written-off 502,680 - 502,680 6,299,930
Fee and commission receipts in cash 729,408,589 - 729,408,589 761,721,636
Cash payments to employees (3,045,538,163) (4,983,114) (3,050,521,277) (2,886,679,535)
Cash payments to suppliers (2,299,706,996) - (2,299,706,996) (1,793,004,343)
Income taxes paid (2,642,292,384) - (2,642,292,384) (2,288,453,419)
Receipts from other operating activities 44 3,164,342,422 856,198 3,165,198,620 2,999,692,752
Payments for other operating activities 45 (4,500,754,864) (590,114) (4,501,344,978) (3,873,949,763)
Operating profit before changes in operating assets and liabilities 3,209,577,937 80,644,414 3,290,222,351 4,593,303,420

Increase/(decrease) in operating assets and liabilities

Statutory deposits 5,322,399,000 - 5,322,399,000 3,704,701,940

Purchase /sale of trading securities (4,997,960,529) - (4,997,960,529) -
Loans and advances to other banks - - - -
Loans and advances to customers (19,324,101,439) (1,831,610,828) (21,155,712,267) (28,485,305,106)
Other assets 46 (412,505,727) - (412,505,727) (144,662,409)
Deposits from other banks (15,408,934) - (15,408,934) (61,902,723)
Deposits from customers 15,326,317,416 (7,783,066) 15,318,534,350 16,587,398,116
Other liabilities account of customers 4,430,763,116 2,617,249,097 7,048,012,213 9,659,427,504
Other liabilities 47 529,153,488 (12,212,476) 516,941,012 46,207,184
Net cash from operating activities 4,068,234,328 846,287,141 4,914,521,469 5,899,167,926

B) Cash flows from investing activities

Payments for purchase of securities (66,450,391,899) - (66,450,391,899) (37,086,253,756)

Proceeds from sale of securities 59,878,281,565 - 59,878,281,565 38,419,120,997
Purchase of property, plant and equipment (1,434,698,390) - (1,434,698,390) (1,431,092,709)
Sale proceeds of property, plant and equipment 9,841,723 - 9,841,723 5,689,669
Net cash used in investing activities (7,996,967,001) - (7,996,967,001) (92,535,799)

C) Cash flows from financing activities

Receipts from issue of loan capital and debt securities - - - -

Payment for redemption of loan capital and debt securities (701,779,931) - (701,779,931) (255,706,895)
Dividends paid (680,743,036) - (680,743,036) (680,667,628)
Net cash from financing activities (1,382,522,967) - (1,382,522,967) (936,374,523)

D) Net increase / (decrease) in cash (A+B+C) (5,311,255,640) 846,287,141 (4,464,968,499) 4,870,257,604

E) Cash and cash-equivalents at beginning of the year 54,797,722,602 2,078,371,622 56,876,094,224 52,005,836,620

F) Cash and cash-equivalents at end of the year (D+E) 48 49,486,466,962 2,924,658,763 52,411,125,725 56,876,094,224

Net Operating Cash Flow Per Share (NOCFPS) 24.57 29.50

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Auditors' report to the Shareholders

See annexed report of date

______________________________
Dhaka, 22 February 2017 A. Qasem & Co.
Chartered Accountants
 Statement of Changes in Equity for the year ended 31 December 2016
(Main Operation and Off-shore Banking Unit)
Figures in Taka

Proposed dividend
Dividend Assets Revaluation
Paid up Share Statutory Other Retained
Particulars equalization revaluation reserve Total
share capital premium reserve reserve Bonus earnings
account Cash reserve of HTM
share
securities

Balance at 1 January 2016 2,000,000,000 11,067,500 7,487,588,738 - 1,366,827,195 800,000,000 - 850,413,777 116,544,853 4,121,893,415 16,754,335,478

Changes in accounting policy - - - - - - - - - - -

Restated balance 2,000,000,000 11,067,500 7,487,588,738 - 1,366,827,195 800,000,000 - 850,413,777 116,544,853 4,121,893,415 16,754,335,478
Surplus/deficit on account of revaluation of properties - - - - - - - - - - -
Surplus/deficit on account of revaluation of investments - - - - - - - - (56,789,941) - (56,789,941)
Currency translation differences - - - - - - - - - - -
Net gains and losses not recognized in the income statement - - - - - - - - - - -
Payment of dividend for the year 2015 - - - - - (800,000,000) - - - - (800,000,000)

Net profit for the year 2016 - - - - - - - - - 1,762,612,951 1,762,612,951

Issue of share capital - - - - - - - - - - -

Appropriations during the year - - 646,801,738 - 200,000,000 600,000,000 - - - (1,446,801,738) -

Balance at 31 December 2016 2,000,000,000 11,067,500 8,134,390,476 - 1,566,827,195 600,000,000 - 850,413,777 59,754,912 4,437,704,628 17,660,158,488

Balance at 31 December 2015 2,000,000,000 11,067,500 7,487,588,738 - 1,366,827,195 800,000,000 - 850,413,777 116,544,853 4,121,893,415 16,754,335,478

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Auditors' report to the Shareholders

See annexed report of date

ANNUAL REPORT 2016

______________________________
Dhaka, 22 February 2017 A. Qasem & Co.
Chartered Accountants

369
Liquidity Statement (Assets and liabilities maturity analysis)
as at 31 December 2016
(Main Operation and Off-shore Banking Unit)

Residual Maturities

Within
Within Within
Within three to More than Total
Particulars one to three one to five
one month twelve five years Taka
months years
months

Taka Taka Taka Taka Taka

Assets

Cash in hand 11,051,999,011 - - - - 11,051,999,011

Balance with other banks and financial institutions 24,137,547,909 10,067,390,863 1,592,415,207 5,440,214,235 - 41,237,568,214

Money at call on short notice 116,000,000 - - - - 116,000,000

Investments 11,002,458,600 487,243,434 - 11,113,844,630 9,174,953,002 31,778,499,666

Loans and advances 14,596,266,950 39,751,461,341 78,903,664,783 28,483,070,999 11,663,333,559 173,397,797,631

Fixed assets including land, building, furniture and fixtures - - - 2,329,547,526 2,542,319,531 4,871,867,057

Other assets 7,263,689,335 3,919,975,683 2,361,572,520 845,392,107 - 14,390,629,645

Non-banking assets - - - - - -

Total assets [A] 68,167,961,805 54,226,071,321 82,857,652,509 48,212,069,497 23,380,606,091 276,844,361,224

Liabilities

Borrowings from other banks, financial institutions and agents 994,506,629 4,950,559,662 15,135,679,866 4,728,377,004 1,522,425,776 27,331,548,937

Deposits 50,577,579,037 38,446,336,519 61,237,926,850 37,937,544,725 15,244,099,826 203,443,486,957

Other accounts 3,790,478,406 - - - - 3,790,478,406

Provision and other liabilities 5,339,060,736 7,319,471,377 2,177,783,667 757,778,513 5,324,471,917 20,918,566,210

Subordinated debt - - 1,112,227,988 2,587,894,238 - 3,700,122,226

Total liabilities [B] 60,701,624,808 50,716,367,558 79,663,618,371 46,011,594,481 22,090,997,519 259,184,202,736

Liquidity surplus [A-B] 7,466,336,997 3,509,703,763 3,194,034,139 2,200,475,017 1,289,608,572 17,660,158,488

Cumulative liquidity surplus 7,466,336,997 10,976,040,760 14,170,074,899 16,370,549,915 17,660,158,488 -

Balance Sheet as at 31 December 2016
(Main Operation)

PROPERTY AND ASSETS 2016 2015

Notes
Taka Taka
Main Operation Total
Cash
In hand (including foreign currencies) 4 11,051,999,011 8,296,998,632
Balance with Bangladesh Bank and its agent bank (s)
(including foreign currencies) 5 17,660,677,577 14,555,926,865
28,712,676,588 22,852,925,497

Balance with other banks and financial institutions 6

In Bangladesh 18,253,220,112 25,513,227,555
Outside Bangladesh 2,399,011,762 1,154,177,150
20,652,231,874 26,667,404,705

Money at call on short notice 7 116,000,000 5,270,000,000

Investments 8
Government 31,291,256,232 19,405,280,474
Others 487,243,434 804,983,434
31,778,499,666 20,210,263,908
Loans and advances 9
Loans, cash credits, overdrafts, etc. 161,604,799,911 141,916,487,380
Bills purchased and discounted 4,043,027,535 4,435,153,728
165,647,827,446 146,351,641,108

Fixed assets including land, building, furniture and fixtures 10 4,871,866,975 4,519,293,774
Other assets 11 14,374,242,044 10,180,005,187
Non-banking assets - -
TOTAL ASSETS 266,153,344,593 236,051,534,179

LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and agents 12 16,897,769,257 12,467,006,141

Deposits and other accounts 13

Current deposits and other accounts 55,933,478,154 47,428,518,228
Bills payable 3,790,478,406 2,827,945,083
Savings bank deposits 82,480,121,034 70,609,619,683
Term deposits 64,981,263,299 65,842,511,008
207,185,340,893 186,708,594,002
Other liabilities 14 20,779,319,601 15,727,054,320
Subordinated debt 15 3,700,122,226 4,401,902,157
TOTAL LIABILITIES 248,562,551,977 219,304,556,620

ANNUAL REPORT 2016 371

Balance Sheet as at 31 December 2016
(Main Operation)

Notes 2016 2015

Taka Taka
Main Operation Total
Shareholders' equity
Paid up share capital 16.2 2,000,000,000 2,000,000,000
Share premium 17 11,067,500 11,067,500
Statutory reserve 18 8,134,390,476 7,487,588,738
Other reserve 19 - -
Dividend equalization account 20 1,566,827,195 1,366,827,195
Assets revaluation reserve 21 850,413,777 850,413,777
Revaluation reserve of HTM securities 22 59,754,912 116,544,853
Proposeddividend:Cash dividend @ 30% i.e. Taka 3 per share of Taka 10 each. 600,000,000 800,000,000
(2015:Cashdividend40%i.e.Taka4per share of Taka 10 each)
Retained earnings 4,368,338,756 4,114,535,496
TOTAL SHAREHOLDERS' EQUITY 17,590,792,616 16,746,977,559
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 266,153,344,593 236,051,534,179

OFF-BALANCE SHEET ITEMS

Contingent liabilities 24

Acceptances and endorsements - -

Letters of guarantee 5,203,462,715 3,870,934,586
Irrevocable letters of credit 20,373,991,602 15,982,927,771
Bills for collection 29,178,346,804 31,223,479,628
Other contingent liabilities 5,293,065,506 3,937,612,870
Total contingent liabilities 60,048,866,627 55,014,954,855

Other commitments
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -

Total other commitments - -

Total off-balance sheet items including contingent liabilities 60,048,866,627 55,014,954,855

The annexed notes 1 to 50 form an integral part of these financial statements.

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Auditors' report to the Shareholders

See annexed report of date

______________________________
Dhaka, 22 February 2017 A. Qasem & Co.
Chartered Accountants
Profit and Loss Account for the year ended 31 December 2016
(Main Operation )
Notes 2016 2015
Taka Taka
Main Operation Total

Interest income 26 15,345,915,147 15,852,976,151

Interest paid on deposits and borrowings etc. 27 5,467,727,487 6,099,771,043
Net interest income 9,878,187,660 9,753,205,108
Investment income 28 2,071,631,905 2,059,385,395
Commission, exchange and brokerage 29 1,545,244,966 1,502,836,751
Other operating income 30 2,349,739,222 2,257,254,549
Total operating income 15,844,803,753 15,572,681,803
Salary and allowances 32 3,033,532,963 2,868,966,866
Rent, taxes, insurance, electricity, etc. 34 1,385,333,829 1,142,193,758
Legal expenses 35 3,506,506 4,556,127
Postage, stamp, telecommunications, etc. 36 272,852,747 237,745,444
Stationery, printings, advertisements, etc. 37 365,019,157 631,694,640
Managing Director & CEO's salary and allowances 38 10,646,000 10,756,000
Directors' fees 39 252,000 215,000
Auditors' fees 40 701,500 540,500
Charges on loan losses 41 357,439,118 49,701,103
Depreciation and repair of bank's assets 42 1,573,036,637 1,525,140,011
Other expenses 43 3,400,983,563 2,697,451,652
Total operating expenses 10,403,304,020 9,168,961,101
Profit before provision 5,441,499,733 6,403,720,702

Provision for loans and off-balance sheet exposures 14.1.3

Specific provision for loans 14.1.3(A) 1,985,931,729 (259,249,975)
General provision for loans 14.1.3(B) 213,200,000 269,801,200
General provision for off-balance sheet exposures 14.1.3(B) 50,367,269 77,350,244
2,249,498,998 87,901,469
Other provision 14.1.1.1 20,000,000 24,130,000
Total provision 2,269,498,998 112,031,469
Profit before taxes 3,172,000,735 6,291,689,233
Provision for taxation
Current tax 14.1.2 2,149,728,516 3,223,066,022
Deferred tax 11.2.2 (678,332,779) 23,991,629
1,471,395,737 3,247,057,651
Net profit after taxation 1,700,604,998 3,044,631,582
Retained earnings brought forward from previous years 4,114,535,496 3,523,371,886
5,815,140,494 6,568,003,468
Appropriations
Statutory reserve 18 646,801,738 1,253,467,972
Dividend equalization account 20 200,000,000 400,000,000
Proposeddividend:Cash dividend @ 30% i.e. Taka 3 per share of Taka 10 each.
(2015:Cashdividend40%i.e.Taka4per share of Taka 10 each) 600,000,000 800,000,000
1,446,801,738 2,453,467,972
Retained earnings carried forward 4,368,338,756 4,114,535,496
The annexed notes 1 to 50 form an integral part of these financial statements.

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Auditors' report to the Shareholders

See annexed report of date

______________________________
Dhaka, 22 February 2017 A. Qasem & Co.
Chartered Accountants

ANNUAL REPORT 2016 373

Cash Flow Statement for the year ended 31 December 2016
(Main Operation)
Notes 2016 2015
Taka Taka
Main Operation Total
A) Cash flows from operating activities

Interest receipts in cash 17,385,700,301 17,925,940,542

Interest payments (5,587,795,876) (6,293,054,287)
Dividend receipts in cash 5,712,228 425
Gain on sale of shares - -
Gain on sale of securities - -
Recoveries of loan previously written-off 502,680 6,299,930
Fee and commission receipts in cash 729,408,589 761,721,636
Cash payments to employees (3,045,538,163) (2,881,849,240)
Cash payments to suppliers (2,299,706,996) (1,793,004,343)
Income taxes paid (2,642,292,384) (2,288,453,419)
Receipts from other operating activities 44 3,164,342,422 2,998,369,664
Payments for other operating activities 45 (4,500,754,864) (3,873,286,432)
Operating profit before changes in operating assets and liabilities 3,209,577,937 4,562,684,476

Increase/(decrease) in operating assets and liabilities

Statutory deposits 5,322,399,000 3,704,701,940

Purchase /sale of trading securities (4,997,960,529) 38,419,120,997
Loans and advances to other banks - -
Loans and advances to customers (19,324,101,439) (22,566,945,749)
Other assets 46 (412,505,727) (144,662,409)
Deposits from other banks (15,408,934) (61,902,723)
Deposits from customers 15,326,317,416 16,530,990,580
Other liabilities account of customers 4,430,763,116 1,842,896,921
Other liabilities 47 529,153,488 641,761,466
Net cash from operating activities 4,068,234,328 42,928,645,499

B) Cash flows from investing activities

Payments for purchase of securities (66,450,391,899) (37,086,253,756)

Proceeds from sale of securities 59,878,281,565 -
Purchase of property, plant and equipment (1,434,698,390) (1,431,092,709)
Sale proceeds of property, plant and equipment 9,841,723 5,689,669
Net cash used in investing activities (7,996,967,001) (38,511,656,796)

C) Cash flows from financing activities

Receipts from issue of loan capital and debt securities - -

Payment for redemption of loan capital and debt securities (701,779,931) (255,706,895)
Dividends paid (680,743,036) (680,667,628)
Net cash from financing activities (1,382,522,967) (936,374,523)

D) Net increase / (decrease) in cash (A+B+C) (5,311,255,640) 3,480,614,180

E) Cash and cash-equivalents at beginning of the year 54,797,722,602 51,317,108,422

F) Cash and cash-equivalents at end of the year (D+E) 48 49,486,466,962 54,797,722,602

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Auditors' report to the Shareholders

See annexed report of date

______________________________
Dhaka, 22 February 2017 A. Qasem & Co.
Chartered Accountants
 Statement of Changes in Equity for the year ended 31 December 2016
(Main Operation)
Figures in Taka

Proposed dividend
Dividend Assets Revaluation
Paid up Share Statutory Other Retained
Particulars equalization revaluation reserve Total
share capital premium reserve reserve Bonus earnings
account Cash reserve of HTM
share
securities

Balance at 1 January 2016 2,000,000,000 11,067,500 7,487,588,738 - 1,366,827,195 800,000,000 - 850,413,777 116,544,853 4,114,535,496 16,746,977,559

Changes in accounting policy - - - - - - - - - - -

Restated balance 2,000,000,000 11,067,500 7,487,588,738 - 1,366,827,195 800,000,000 - 850,413,777 116,544,853 4,114,535,496 16,746,977,559
Surplus/deficit on account of revaluation of properties - - - - - - - - - - -
Surplus/deficit on account of revaluation of investments - - - - - - - - (56,789,941) - (56,789,941)
Currency translation differences - - - - - - - - - - -
Net gains and losses not recognized in the income statement - - - - - - - - - - -
Payment of dividend for the year 2015 - - - - - (800,000,000) - - - - (800,000,000)

Net profit for the year 2016 - - - - - - - - - 1,700,604,998 1,700,604,998

Issue of share capital - - - - - - - - - - -

Appropriations during the year - - 646,801,738 - 200,000,000 600,000,000 - - - (1,446,801,738) -

Balance at 31 December 2016 2,000,000,000 11,067,500 8,134,390,476 - 1,566,827,195 600,000,000 - 850,413,777 59,754,912 4,368,338,756 17,590,792,616

Balance at 31 December 2015 2,000,000,000 11,067,500 7,487,588,738 - 1,366,827,195 800,000,000 - 850,413,777 116,544,853 4,114,535,496 16,746,977,559

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Auditors' report to the Shareholders

See annexed report of date

ANNUAL REPORT 2016

______________________________
Dhaka, 22 February 2017 A. Qasem & Co.
Chartered Accountants

375
Notes to the Financial Statements as at and for the year ended 2016
(Main Operation and Off-shore Banking Unit)
1. Status of the Bank

1.1 Dutch-Bangla Bank Limited (the Bank) is a scheduled commercial bank set up as a joint venture between Bangladesh and
The Netherlands. Incorporated as a public limited company under the Companies Act 1994 , the Bank obtained license from
Bangladesh Bank on 23 July 1995 and started its banking business with one branch on 3 June 1996. The number of branches
was 165 as at 31 December 2016 all over Bangladesh. The Bank is listed with Dhaka Stock Exchange and Chittagong Stock
Exchange as a publicly quoted company.
1.2 Nature of business

Main operation

The principal activities of the Bank are to carry on all kinds of commercial banking business in Bangladesh.

Mobile Banking Services

The Bank obtained the permission for conducting the Mobile Banking Services from Bangladesh Bank on 28 April 2010.
The Bank started operation of Mobile Banking Services on 31 March 2011.
The principal activities of the Mobile Banking Services are to provide banking services to Mobile Banking customers
through Mobile Phone and multiple delivery channels within the applicable rules & regulations and guidelines of
Bangladesh Bank.
Mobile Banking Services are part of Main Operation of the Bank.
Agent Banking Services
The Bank obtained the permission for conducting the Agent Banking services from Bangladesh Bank on 27 July 2014.
The Bank started operation of Agent Banking Services on 19 January 2015.
The principal activities of the Agent Banking Services are to provide banking services to the Bank customers through
engagement of agents who conducts Banking Transaction on behalf of the Bank under a valid agency agreements
rather than Banks own Tellers/Cashiers to deliver the services within the applicable rules & regulations and guidelines
of Bangladesh Bank.
Agent Banking Services are part of Main Operation of the Bank.
Off-shore Banking Unit (OBU)
The Off-shore Banking Unit (OBU) of the Bank is the separate business entity governed by the applicable rules &
regulations and guidelines of Bangladesh Bank. The Bank obtained the permission for conducting the operations of OBU
from Bangladesh Bank on 23 February 2010. The Bank started the operation of OBU on 12 July 2010. The number of OBUs
were two as at 31 December 2016 located at Chittagong EPZ Branch-Chittagong and Dhaka EPZ Branch-Dhaka.
The principal activities of the OBUs are to provide commercial banking services through its Units within the rules &
regulations and guidelines of Bangladesh Bank applicable for the Off-shore Banking Units.
2. Significant accounting policies and basis of preparation of financial statements
2.1. Basis of accounting
The financial statements of the Bank have been prepared under historical cost convention except investments which
are measured at present value and in accordance with First Schedule of the Bank Companies Act, 1991 as amended
under sub-section 38(4) of the Act, relevant Bangladesh Bank Circulars, International Accounting Standards (IASs) and
International Financial Reporting Standards (IFRSs) adopted by the Institute of Chartered Accountants of Bangladesh
(ICAB) and named as Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs)
respectively, the Companies Act, 1994, the Securities and Exchange Rules, 1987 and other rules and regulations applicable
for Banks in Bangladesh.
In cases, any requirement of provisions and circulars issued by Bangladesh Bank differs with those of other regulatory
authorities, the provisions & circulars issued by Bangladesh Bank shall prevail. Material departures from the requirement of
BAS & BFRS are as follows:
2.1.1 Investment in shares and Securities
BFRS & BAS:
As per requirements of BAS 39, investment in shares and securities generally falls either under at fair value through profit
and loss account or under available for sale where any change in the fair value (as measured in accordance with BFRS 13)
at the year-end is taken to profit and loss account or revaluation reserve respectively.
Bangladesh Bank:
As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquoted shares are revalued at the year
end at market price and as per book value of last audited balance sheet respectively. Provision should be made for any loss
arising from diminution in value of investment.
2.1.2 Revaluation gain/loss on Government securities

BFRS & BAS:

As per requirement of BAS 39, where securities treasury bills and treasury bonds fall under the category of held for
trading, any change in the fair value (as measured in accordance with BFRS 13) of held for trading assets is recognized
through profit and loss account. T-bills and T-Bonds designated as held to maturity are measured at amortized cost
method and interest income is recognized through the profit and loss account.
Bangladesh Bank:
HFT securities are revalued on the basis of marking to market and at year end any gains on revaluation of securities
which have not matured as at the balance sheet date are recognized in other reserve as a part of equity and any losses on
revaluation of securities which have not matured as at the balance sheet date are charged in the profit and loss account.
Interest on HFT securities including amortization of discount are recognized in the profit and loss account.
2.1.3 Provision on loans and advances

BFRS & BAS:

As per BAS 39 an entity should start the impairment assessment by considering whether objective evidence of impairment
exists for financial assets that are individually significant. For financial assets are not individually significant, the
assessment can be performed on an individual or collective (portfolio) basis.
Bangladesh Bank:
As per BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012, BRPD circular
no. 05 dated 29 May 2013 & BRPD circular no. 16 dated 18 November 2014, a general provision at 0.25% to 5% under
different categories of unclassified loans (good/standard loans) has to be maintained regardless of objective evidence
of impairment. Also provision for sub-standard loans, doubtful loans and bad losses has to be provided at 20%, 50%
and 100% respectively for loans and advances depending on time past due. Again as per BRPD circular no. 10 dated 18
September 2007 and BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is required to be provided for
all off-balance sheet exposures. Such provision policies are not specifically in line with those prescribed by BAS 39.
2.1.4 Recognition of interest in suspense

BFRS & BAS:

Loans and advances to customers are generally classified as loans and receivables as per BAS 39 and interest income is
recognized through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is
recognized in profit and loss account on the same basis based on revised carrying amount.
Bangladesh Bank:
As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans are not allowed to be
recognized as income, rather the corresponding amount needs to be credited to an interest in suspense account, which is
presented as liability in the balance sheet.
2.1.5 Other comprehensive income

BFRS & BAS:

As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of Other
Comprehensive Income are to be included in a Single Other Comprehensive Income (OCI) Statement.

ANNUAL REPORT 2016 377

 Bangladesh Bank:
Bangladesh Bank has issued templates for financial statements which will strictly be followed by all banks. The templates
of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income nor are the elements
of Other Comprehensive Income allowed to include in a Single Comprehensive Income (OCI) Statement. As such the
company does not prepare the other comprehensive income statement. However elements of OCI, if any, are shown in the
statements of changes in equity.
2.1.6 Financial instruments presentation and disclosure

In several cases Bangladesh Bank guidelines categorize, recognize, measure and present financial instruments differently
from those prescribed in BAS 39. As such some disclosure and presentation requirements of BFRS 7 and BAS 32 cannot be
made in the financial statements.
2.1.7 Repo and Reverse Repo transactions

BFRS & BAS:

When an entity sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a similar
asset) at a fixed price on a future date (repo or stock lending), the arrangement is treated as a loan and the underlying
asset continues to be recognized in the entitys financial statements. The difference between selling price and repurchase
price will be treated as interest expense. Same rule applies to the opposite side of the transaction (reverse repo).
Bangladesh Bank:
As per DOS Circular letter no. 6 dated 15 July 2010 and subsequent clarification in DOS circular no. 2 dated 23 January
2013, when a bank sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a
similar asset) at a fixed price on a future date (repo or stock lending), the arrangement is accounted for as a normal sales
transactions and the financial assets are derecognized in the sellers book and recognized in the buyers book. However, as
per DMD circular letter no. 7 dated 29 July 2012, non primary dealer banks are eligible to participate in the Assured Liquidity
Support (ALS) program, whereby such banks may enter collateralized repo arrangements with Bangladesh Bank. Here the
selling bank accounts for the arrangement as a loan, thereby continuing to recognize the asset.
2.1.8 Financial guarantees

BFRS & BAS:

As per BAS 39, financial guarantees are contracts that require an entity to make specified payments to reimburse the
holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a
debt instrument. Financial guarantee liabilities are recognized initially at their fair value (as measured in accordance with
BFRS 13), and the initial fair value is amortized over the life of the financial guarantee. The financial guarantee liability
is subsequently carried at the higher of this amortized amount and the present value of any expected payment when a
payment under the guarantee has become probable. Financial guarantees are included within other liabilities.
Bangladesh Bank:
As per BRPD 14,2003, financial guarantees such as letter of credit, letter of guarantee will be treated as Off- Balance Sheet
items. No liability is recognized for the guarantee except the cash margin.
2.1.9 Cash and cash equivalent

BFRS & BAS:

Cash and cash equivalent items should be reported as cash item as per BAS 7.
Bangladesh Bank:
Some cash and cash equivalent items such as money at call and on short notice, Treasury bills, Bangladesh Bank bills
and Prize bond are not shown as cash and cash equivalent. Money at call and on short notice presented on the face of the
balance sheet, and Treasury bills, Prize bonds are shown in investments.
2.1.10 Cash flow statement

BFRS & BAS:

Cash flow statement can be prepared either in direct method or in indirect method. The presentation is selected to present
these cash flows in a manner that is most appropriate for the business or industry. The method selected is applied consistently.
Bangladesh Bank:
As per BRPD circular no. 14 dated 25 June 2003, cash flows is the mixture of direct and indirect method.
2.1.11 Balance with Bangladesh Bank: (CRR)
BFRS & BAS:
Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per
BAS 7.
Bangladesh Bank:
Balance with Bangladesh Bank is treated as cash and cash equivalents.
2.1.12 Presentation of intangible asset

BFRS & BAS:

An intangible asset must be identified and recognized, and the disclosure must be given as per BAS 38.
Bangladesh Bank:
There is no requirement for regulation of intangible assets in BRPD 14.
2.1.13 Off-balance sheet items

BFRS & BAS:

There is no concept of off-balance sheet items in any BFRS; the off-balance sheet item e.g., Letter of credit, Letter of
guarantee etc are considered as contingent liability and require disclosure on note to the financial statements.
Bangladesh Bank:
As per BRPD circular no. 14 dated 25 June 2003, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must
be disclosed separately on the face of balance sheet.
2.1.14 Disclosure of appropriation of profit

BFRS & BAS:

There is no requirement to show appropriation of profit in the face of statement of comprehensive income.
Bangladesh Bank:
As per BRPD circular no. 14 dated 25 June 2003, an appropriation of profit should be disclosed in the face of profit and loss
account.
2.1.15 Loans and advance net of provision

BFRS & BAS:

Loans and advances should be presented net of provisions.
Bangladesh Bank:
As per BRPD circular no. 14 dated 25 June 2003, provision on loans and advances are presented separately as liability and
cannot be netted off against loans and advances.
2.2 Consolidation of financial statements
The consolidated financial statements of the Bank include the financial statements of Dutch-Bangla Bank Limited and the
Off-shore Banking Units.
The consolidated financial statements have been prepared on the basis of the consolidated statements of affairs and
income and expenditure account of all branches and head office of Main Operations as well as the consolidated statement
of affairs and income and expenditure account of all Off-shore Banking Units of the Bank.
All the financial transactions of the OBUs are recorded and maintained separately. A set of financial statements for the
Off-shore Banking Units of the Bank are also shown separately.
2.3 Functional and presentation currency

These financial statements are presented in Taka, which is the Banks functional currency. Figures appearing in these
financial statements have been rounded off to the nearest Taka.
2.4 Use of estimates and judgements
The preparation of financial statements requires management to make informed judgements, estimates and assumptions
that affect the application of accounting policies and the amounts of assets, liabilities, income and expenses reported in
the financial statements. Actual results may differ from these estimates.

ANNUAL REPORT 2016 379

2.5 Foreign currency transactions

Foreign currency transactions are converted into Taka using the exchange rates prevailing on the dates of respective
transactions. In terms of instructions contained in Bangladesh Banks Letter No. BRPD(R)717/2004-959 dated 21 November
2004, foreign currency assets and liabilities are translated into Taka at the weighted average rate as on balance sheet date
as determined by Bangladesh Bank. Gains and losses arising from foreign currency transactions are credited/charged to profit
and loss account.

2.6 Taxation

As per provisions of Bangladesh Accounting Standard (BAS) 12 Income Taxes, provision for income taxes has been made
as under:

2.6.1 Current tax

Provision for current income tax has been made @ 40.00% on taxable profit as per Income Tax Ordinance 1984 and as per
Finance Act 2016.

2.6.2 Deferred tax

Deferred tax is accounted for all temporary timing differences arising between the tax base of assets and liabilities and their
carrying value for financial reporting purpose. Tax rate (@ 40.00%) prevailing at the balance sheet date is used to determine
deferred tax.

2.7 Bases for valuation of assets

2.7.1 Loans and advances

a) Loans and advances are stated at gross amount. Provision and interest suspense against loans and advances are shown
separately as other liabilities. Interest income is accounted for on accrual basis until the loans and advances are defined
as classified accounts as per Bangladesh Bank guidelines.
Interest on classified loans (other than bad/loss loans) are credited to interest suspense account instead of income
account. Such interest kept in suspense account is reversed to income account only when respective loan accounts are
regularized and /or realized in cash, in accordance with Bangladesh Bank guidelines.
As per Bangladesh Bank directives, interest on loans and advances classified as bad/loss is not accounted for. A separate
memorandum record is maintained for such interest on bad/loss loans.

b) Provision for loans and advances is made on the basis of the year end review by the management of the Bank in line
with the instructions contained in BRPD Master Circular No. 14 dated 23 September 2012, BRPD Circular No. 19 dated 27
December 2012, BRPD Circular No. 05 and 06 dated 29 May 2013, BRPD Circular No. 15 dated 23 December 2013, BRPD
Circular No. 16 dated 18 November 2014 and BRPD Circular No. 08 dated 02 August 2015 issued by Bangladesh Bank on
the following basis:

Rates
Bangladesh
Category / status of loans and advances Maintained by
Banks
the Bank
requirement
General provisions for unclassified loans and advances :
All unclassified loans (other than loans under small and medium enterprise financing,
consumer financing, loans to Brokerage Houses (BHs) / Merchant Banks (MBs) / Stock
Dealers (SDs) against Shares, short term agricultural credit and staff loans) 1.00% 1.00%
Small and medium enterprise financing 0.25% 0.25%
Consumer financing (other than housing finance and loans for professionals under
consumer financing scheme) 5.00% 5.00%
 Consumer financing for housing finance, loans to professionals and loans to Brokerage
Houses (BHs) / Merchant Banks (MBs) / Stock Dealers (SDs) against Shares etc. 2.00% 2.00%
Short term agricultural credit 2.50% 2.50%
Special mention account
All loans (other than loans under small and medium enterprise financing, consumer
financing, loans to Brokerage Houses (BHs) / Merchant Banks (MBs) / Stock Dealers
(SDs) against Shares, short term agricultural credit and staff loans) 1.00% 1.00%
Small & Medium enterprise financing 0.25% 0.25%
Consumer financing (other than housing finance and loans for professionals under
consumer financing scheme) 5.00% 5.00%
Consumer financing for housing finance, loans to professionals and loans to
Brokerage Houses (BHs) / Merchant Banks (MBs) / Stock Dealers (SDs) against
Shares etc. 2.00% 2.00%
Short term agricultural credit 2.50% 2.50%
Specific provision for classified loans and advances:
Substandard 20.00% 20.00%
Doubtful 50.00% 50.00%
Bad/loss 100.00% 100.00%

General provision

General provision for all unclassified and SMA loans and advances (other than loans under small and medium enterprise
financing, consumer financing, loans to Brokerage Houses (BHs) / Merchant Banks (MBs) / Stock Dealers (SDs) against
Shares, short term agricultural credit and staff loans) has been maintained @ 1%.

General provision for all unclassified and SMA loans and advance under small & medium enterprise financing has been
maintained @ 0.25%.

General provision for all unclassified and SMA loans and advance under consumer financing for housing finance, loans to
professionals and loans to Brokerage Houses (BHs) / Merchant Banks (MBs) / Stock Dealers (SDs) against Shares, short
term agricultural credit has been maintained @ 2% to 5%.

Specific provision

Specific provision for classified loans and advances has been maintained @ 20% to 100% as prescribed by Bangladesh Bank.

c) Loans and advances are written-off in line with Bangladesh Banks BRPD Circular No. 02 dated 13 January 2003 and DOS
Circular No. 01 dated 29 December 2004, when prospect of recovery of such loans and advances become non-existent .
However, such write-off does not reduce the claim against the borrower. Detailed records for all write-off accounts are
separately maintained by the Bank to continue the recovery efforts.
2.7.2 Investments

a) Investments have been accounted for as follows :

Particulars Valuation method

Government treasury bills Present value
Government treasury bonds Present value
Subordinated bonds At redemption value
ICBs debenture At redemption value
Prize bond Cost price
Shares:
Quoted Cost or market price whichever is lower
Unquoted Cost or Book value as per latest audited accounts whichever is lower

ANNUAL REPORT 2016 381

 b) The investment in government securities (Treasury bills and bonds) are classified into Held to Maturity (HTM) and Held
for Trading (HFT) as per Bangladesh Banks guidelines contained in DOS Circular Letter No. 05 dated 26 May 2008, DOS
Circular Letter No. 05 dated 28 January 2009, DOS Circular No. 06 dated 15 July 2010 and under reference Letter No. DOS
(SR)1153/120-A/2011-746 dated 29 December 2011. Reclassification of HTM securities into HFT securities are also done in
compliance with Bangladesh Banks guidelines.
The government securities under Held to Maturity (HTM) category are valued at present value at amortized cost at
the end of the year. The Held to Maturity securities are amortized to ensure a constant yield over the remaining period
of maturity of the securities. The resulting gains / (losses) are credited to revaluation reserve account and shown in the
equity. Such gains / (losses) are credited to income account at the time of maturity or sale of the security.
The government securities under Held for Trading (HFT) category are valued at present value on the basis of marking
to market method. The resulting gains / (losses) are transferred to other reserve account. The gains / (losses) arising
on maturity or sale of such securities are credited to income.

2.7.3 Fixed assets

a) All fixed assets are stated at cost or revalued amount less accumulated depreciation.

b) Depreciation is charged over the estimated useful life of fixed assets excepting land on a straight line method. The
useful life of fixed assets are reviewed on a yearly basis to determine if there has been any significant change in the
expected pattern of consumption resulting in changes in estimated residual value and useful life of the fixed assets and
if considered appropriate, adjustment is made at the balance sheet date.
The annual rates of depreciation based on estimated useful life for fixed assets are given below:

Building 2.50%
Interior decoration 15.00%
Furniture and fixtures 10.00%
ATM Booth 10.00%
ATM/Fast Track 12.50%
Computer equipment and software 20.00%
Other machinery and equipment 15.00%
Motor vehicles 20.00%
Books 10.00%

c) As at 31 December 2010, all immovable properties of the Bank including land, building and ready made floor spaces
were revalued by a professionally qualified valuation firm and certified by the external auditors, M/S. A. Qasem & Co.,
Chartered Accountants. Accordingly, revaluation surplus is included in fixed assets and equity in terms of instructions
contained in BRPD Circular No. 10 dated 25 November 2002.

2.8 Off-balance sheet exposures

In compliance with the instruction contained in BRPD Circular No. 10 dated 18 September 2007 issued by Bangladesh Bank,
provision against the off-balance sheet exposures of the Bank as at reporting date has been made as under:

Rates
Bangladesh
Category / status of Off-balance sheet exposures Maintained by
Banks
the Bank
requirement
General provision for Off-balance sheet exposures
All types of Off-balance sheet exposures 1.00% 1.00%
2.9 Bases for valuation of liabilities and provisions

2.9.1 Retirement benefits to the employees

The retirement benefits accrued for the employees of the Bank as at the reporting date have been accounted for in accordance
with the provisions of Bangladesh Accounting Standard (BAS) 19, Employee Benefits as outlined below:

a) Provident fund

There is a Provident Fund Scheme under defined contribution plan. The Fund is operated by a separate Board of Trustees
approved by the National Board of Revenue as per Income Tax Ordinance, 1984. All eligible employees contribute 10% of
their basic pay to the Fund . The Bank also contributes equal amount of employees contribution to the Fund. Benefits from
the Fund is given to eligible employees at the time of retirement/resignation as per approved rules of the Fund.

b) Gratuity fund

The Bank has a separate Board of Trustees for operating the staff gratuity fund approved by the National Board of
Revenue. The provision for the gratuity fund is made in the books of account of the Bank for the eligible employees
on the basis of the assessment made by the management at the year end [Note 14.1]. The amount of provision is
transferred to the Board of Trustees of the Fund on a yearly basis.

c) Superannuation fund

The Bank has a separate Board of Trustees for operating the staff superannuation fund approved by the National Board
of Revenue. The provision for the superannuation fund is made in the books of account of the Bank for the eligible
employees on the basis of the assessment made by the management at the year end. The amount of provision is
transferred to the Board of Trustees of the Fund on a yearly basis.

2.9.2 Workers Profit Participation Fund (WPPF)

Consistent with the Industry practice and in accordance with the Bank Company Act, 1991, no provision has been made for WPPF.

2.10 Revenue recognition

The revenues of the Bank during the year have been recognized in terms of the provisions of Bangladesh Accounting
Standard (BAS) 18, Revenue as outlined below:

2.10.1 Interest income

a) Interest income from loans and advances

The policy for accounting of interest income on loans and advances is stated in 2.7.1.a and 2.7.2 above.
b) Other interest income
Interest income from investments, money at call on short notice and fund placement with other banks and financial
institutions is recognized on accrual basis.
2.10.2 Fees and commission income

Fees and commission income arising from different services provided by the Bank is recognized on cash receipt basis. Commission
realized on letters of credit and letters of guarantee is credited to income at the time of effecting the respective transactions.

2.10.3 Dividend income

Dividend income from investments in shares is accounted for on cash receipt basis.

2.10.4 Interest paid on deposits and borrowings

Interest paid on deposits, borrowings etc. are accounted for on accrual basis.

ANNUAL REPORT 2016 383

2.10.5 Other operating expenses

All other operating expenses are provided for in the books of the accounts on accrual basis.

2.11 Earnings per share

Earnings per share (EPS) has been computed by dividing the basic earnings by the number of ordinary shares outstanding as
at 31 December 2015 as per Bangladesh Accounting Standard (BAS) 33, Earnings Per Share.

2.12 Cash flow statement

Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard (BAS) 7, Statement of
Cash Flows under Direct method as recommended in the BRPD Circular No. 14 dated 25 June 2003 issued by the Banking
Regulation & Policy Department of Bangladesh Bank.

2.13 Statement of liquidity

The liquidity statement of assets and liabilities as at the reporting date has been prepared on residual maturity term as per
the following bases:
a) Balance with other banks and financial institutions, money at call on short notice etc. are on the basis of their maturity term.
b) Investments are on the basis of their maturity.
c) Loans and advances are on the basis of their repayment / maturity schedule.
d) Fixed assets are on the basis of their useful life.
e) Other assets are on the basis of their realization/adjustment.
f) Borrowing from other banks, financial institutions and agents are as per their maturity /repayment term.
g) Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal by the depositors.
h) Other long term liabilities are on the basis of their maturity term.
i) Provisions and other liabilities are on the basis of their payment /adjustment schedule.

2.14 Events after the reporting period

a) There were no material post balance sheet events which could affect the values stated in these financial statements.
b) The Board of Directors of the Bank in its 177th meeting held on 22 February 2017 recommended cash dividend @ 30% for
the year 2016.

2.15 Reconciliation of books of account

Books of account with regard to inter-bank (in Bangladesh and outside Bangladesh) transactions and inter-branch
transactions are reconciled in all material respects. There were no un-reconciled entries which could materially affect the
financial condition or results of the Bank.
2.16 Reporting period
The reporting period of these financial statements cover one calendar year from 1 January 2016 to 31 December 2016.

2.17 Offsetting

No asset or liability has been offset or reduced by any other asset or liability unless a legal right [Note 10, 28 (revaluation
gain on securities), 29.2 and 30.2] of set-off exists and the offsetting represents the expectation as to the realization or
settlement of the asset or liability in normal course of business.

2.18 Compliance report on Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs)

The Institute of Chartered Accountants of Bangladesh (ICAB) is the official standard setting body in the country. ICAB has adopted
most of the International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) as Bangladesh
Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs). The Bank has complied with all the applicable
Bangladesh Accounting Standards and Bangladesh Financial Reporting Standards for preparation and presentation of the financial
statements of the Bank as at 31 December 2016 as noted below:
 Bangladesh Accounting Standards (BASs) BAS Number Status of compliance by DBBL
Presentation of Financial Statements BAS -1 Complied
Inventories BAS -2 Complied
Statement of Cash Flows BAS -7 Complied
Accounting Policies, Changes in Accounting Estimates and Errors BAS -8 Complied
Events After the Reporting Period BAS -10 Complied
Construction Contracts BAS -11 Not applicable
Income Taxes BAS -12 Complied
Property, Plant and Equipment BAS -16 Complied
Leases BAS -17 Complied
Revenue BAS -18 Complied
Employee Benefits BAS -19 Complied
Accounting for Government Grants and Disclosure of Government Assistance BAS -20 Not applicable
The Effects of Changes in Foreign Exchange Rates BAS -21 Complied
Borrowing Costs BAS -23 Complied
Related Party Disclosures BAS -24 Complied
Accounting and Reporting by Retirement Benefit Plans BAS -26 Complied
Separate Financial Statements BAS -27 Not applicable
Investments in Associates and Joint Ventures BAS -28 Not applicable
Financial Reporting in Hyperinflationary Economics BAS -29 Not applicable
Interest in Joint Ventures BAS -31 Not applicable
Financial Instruments: Presentation BAS -32 Complied
Earnings Per Share BAS -33 Complied
Interim Financial Reporting BAS -34 Complied
Impairment of Assets BAS -36 Complied
Provisions, Contingent Liabilities and Contingent Assets BAS -37 Complied
Intangible assets BAS -38 Not applicable
Financial Instruments: Recognition and Measurement BAS -39 Complied
Investment Property BAS -40 Not applicable
Agriculture BAS -41 Not applicable

Bangladesh Financial Reporting Standards (BFRSs) BFRS Number Status of compliance by DBBL
First-time Adoption of Bangladesh Financial Reporting Standards BFRS - 1 Not applicable
Share-based Payment BFRS - 2 Not applicable
Business Combinations BFRS - 3 Not applicable
Insurance Contracts BFRS - 4 Not applicable
Non-current Assets Held for Sale and Discontinued Operations BFRS - 5 Not applicable
Exploration for and Evaluation of Mineral Resources BFRS - 6 Not applicable
Financial Instruments : Disclosures BFRS - 7 Complied
Operating Segments BFRS - 8 Complied
Consolidated Financial Statements BFRS - 10 Not applicable
Joint Arrangements BFRS - 11 Not applicable
Disclosure of Interests in other Entities BFRS - 12 Not applicable
Fair Value Measurement BFRS - 13 Complied

2.19 Approval of the financial statements

The Board of Directors of the Bank in its 177th meeting held on 22 February 2017 approved the financial statements of the
Bank for the year ended 31 December 2016.

3. General

3.1 Wherever considered necessary previous years figures and presentation have been rearranged to conform with the current
years presentation.

3.2 Auditors work-hour

The external auditors, M/S. A. Qasem & Co. , Chartered Accountants of the Bank worked about in excess of 4,900 work-hours
at the Banks Head Office and different branches. During their audit, they audited above 80% of the Banks risk weighted
assets as at the reporting date.

ANNUAL REPORT 2016 385

 2016 2015
Taka Taka
4. Cash in hand (including foreign currencies)

Local currency 11,035,206,461 8,276,489,032

Foreign currencies 16,792,550 20,509,600
11,051,999,011 8,296,998,632
5. Balance with Bangladesh Bank and its agent bank(s) (including foreign currencies)

Bangladesh Bank
Local currency 15,702,327,016 12,234,960,865
Foreign currencies 1,339,380,905 1,537,323,673
17,041,707,921 13,772,284,538
Sonali Bank Limited (as an agent of Bangladesh Bank) - Local currency 618,969,656 783,642,327
17,660,677,577 14,555,926,865

5.1 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)

Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been
calculated and maintained in accordance with the Section 33 of the Bank Companies
Act, 1991 and of instructions contained in BRPD Circular No. 11 dated 25 August 2005,
BRPD Circular No. 12 dated 25 August 2005, Monetary Policy Department (MPD) Circular
No. 1 dated 4 May 2010, MPD Circular No. 2 dated 4 May 2010, MPD Circular No. 4 dated
1 December 2010, MPD Circular No. 5 dated 1 December 2010, DOS Circular No. 1 date 19
January 2014, MPD Circular No. 1 date 23 June 2014 and MPD Circular No. 116/2014-853
date 23 June 2014 issued by Bangladesh Bank.

5.1.1 Cash Reserve Requirement (CRR): average 6.5% of average demand and time
liabilities with minimum 6% on any date

Required reserve 13,358,545,000 11,584,412,000

Actual reserve maintained
Balance with Bangladesh Bank-Local currency [Note 5] 15,702,327,016 12,234,960,865
Surplus 2,343,782,016 650,548,865

Cash Reserve Maintained: more than 6% throughout the accounting year and 7.64%
on the Balance Sheet date 7.64% 6.87%
5.1.2 Statutory Liquidity Ratio (SLR): 13% of average demand and time liabilities

Required reserve 26,717,090,000 23,168,824,000

Available for maintenance:

Cash in hand (including foreign currencies) 11,051,999,011 8,296,998,632

Balance with Bangladesh Bank - Foreign currencies 1,339,380,905 1,537,323,673
Balance with Sonali Bank Limited (as an agent of Bangladesh Bank) 618,969,656 783,642,327
Unencumbered approved securities (treasury bills and bonds, debentures etc.) 31,285,697,732 19,397,888,074
44,296,047,304 30,015,852,706
Surplus 17,578,957,304 6,847,028,706
Total surplus (5.1.1+5.1.2) 19,922,739,320 7,497,577,571

Statutory Liquidity Ratio (SLR) Maintained (%) 21.55% 16.84%

 2016 2015
Taka Taka

6. Balance with other banks and financial institutions

Main Operation [Note 6.1]

In Bangladesh 18,253,220,112 25,513,227,555

Outside Bangladesh 2,399,011,762 1,154,177,150
20,652,231,874 26,667,404,705
Off-shore Banking Unit

In Bangladesh 2,924,658,763 2,078,371,622

Outside Bangladesh - -
2,924,658,763 2,078,371,622
Total Balance with other banks and financial institutions 23,576,890,637 28,745,776,327

6.1 Balance with other banks and financial institutions

(a) In Bangladesh

In current deposit accounts with

Janata Bank Limited 93,051 18,385,520
Sonali Bank Limited 105,577,405 86,552,779
Standard Chartered Bank, Dhaka 59,366,925 15,730,677
Islami Bank Bangladesh Limited 104,800,782 95,710,537
Agrani Bank Limited 65,335 225,551
Al Arafah Islami Bank Limited 5,500 -
National Bank Limited 45,304 88,197
269,954,302 216,693,261
In special notice deposit accounts with
Sonali Bank Limited 1,520,311,059 1,479,578,409
National Bank Limited 32,307,819 24,909,456
The City Bank Limited 4,668 (5,021)
Rupali Bank Limited 8,101,283 4,217,515
Agrani Bank Limited 15,767,411 23,573,171
Janata Bank Limited 145,259,338 136,820,516
Dhaka Bank Limited 1,614,019 1,614,019
Islami Bank Limited 487,052,921 535,850,949
2,210,418,518 2,206,559,014

ANNUAL REPORT 2016 387

 2016 2015
Taka Taka
In fixed deposit accounts with

Dhaka Bank Limited - 2,000,000,000

Brac Bank Limited - 1,500,000,000
Standard Bank Limited - 1,000,000,000
- 4,500,000,000
In fixed deposit accounts (in foreign currency) with

Off-shore Banking Unit, Agrabad Branch-Chittagong,Dutch-Bangla Bank Ltd 11,072,847,292 9,389,975,280

11,072,847,292 9,389,975,280

Other financial institutions

In fixed deposit accounts with
Investment Corporation of Bangladesh 1,000,000,000 4,500,000,000
Industrial and Infrastructure Development Finance Company Limited (IIDFC) 150,000,000 -
United Leasing Company Limited - 950,000,000
Phoenix Finance & Investments Limited 200,000,000 200,000,000
International Leasing & Financial Services Limited 400,000,000 400,000,000
Bangladesh Industrial Finance Company Limited 350,000,000 400,000,000
Fareast Finance & Investment Limited 200,000,000 250,000,000
Lanka Bangla Finance Limited 1,100,000,000 950,000,000
IDLC Finance Limited 300,000,000 700,000,000
Premier Leasing & Finance Limited 150,000,000 150,000,000
Prime Finance and Investment Limited 600,000,000 50,000,000
Bay Leasing Company Limited - 300,000,000
Union Capital Limited 150,000,000 250,000,000
National Finance Limited 100,000,000 100,000,000
Union Capital Limited 250,000,000 100,000,000
National Finance Limited 100,000,000 -
4,700,000,000 9,200,000,000
Total (a) In Bangladesh 18,253,220,112 25,513,227,555
(b) Outside Bangladesh

In demand deposit accounts (interest bearing) with

2016 2015
Exchange Exchange
Amount rate for Amount rate for
Name of the correspondent Bank Currency Amount in Amount in
in foreign per unit in foreign per unit
Taka Taka
currency foreign currency foreign
currency currency

Mashreqbank PSC, New York, USA USD 6,925,510 78.7022 545,052,896 2,001,267 78.5003 157,100,054
Commerzbank AG, Frankfurt, Germany EUR 79,210 81.8896 6,486,456 443,224 85.8008 38,028,933
AB Bank Ltd., Mumbai, India ACU 440,078 78.7022 34,635,127 361,430 78.5003 28,372,377
Citibank N.A., New York, USA USD 5,777,287 78.7022 454,685,181 4,593,219 78.5003 360,569,100
Unicredit S.P.A., Milano, Italy EUR 419,041 81.8896 34,315,066 162,090 85.8008 13,907,432
ICICI Bank Limited, Mumbai, India ACU 76,120 78.7022 5,990,804 8,503 78.5003 667,480
1,081,165,530 598,645,376

In demand deposit account (non-interest bearing) with

2016 2015
Exchange Exchange
Amount rate for Amount rate for
Name of the correspondent Bank Currency Amount in Amount in
in foreign per unit in foreign per unit
Taka Taka
currency foreign currency foreign
currency currency

Standard Chartered Bank, London, UK GBP 14,049 96.1662 1,351,031 83,649 116.2668 9,725,618
Standard Chartered Bank, New York, USA USD 12,593,404 78.7022 991,128,586 1,928,308 78.5003 151,372,762
JP Morgan Chase Bank N.A., New York, USA USD 3,573,645 78.7022 281,253,727 4,374,116 78.5003 343,369,431
Standard Chartered Bank, Colombo, Sri Lanka ACU 4,559 78.7022 358,802 4,138 78.5003 324,802
Commerzbank AG, Frankfurt, Germany CHF 35,585 76.4470 2,720,374 60,538 79.4779 4,811,425
The Bank of Tokyo-Mitsubishi UFJ Ltd., Tokyo, Japan JPY 3,856,859 0.6715 2,589,881 14,758,304 0.6513 9,612,083
Bank of Montreal, Canada CAD 19,264 58.0485 1,118,243 - - -
The Bank of Nova Scotia, Toronto, Canada CAD - - - 26,458 56.5116 1,495,196
Commerz Bank AC, Germany AUD 1,733 56.5239 97,937 16,627 57.1953 950,995
Westpac Banking Corporation, Australia AUD 28,861 56.5239 1,631,349 20,699 57.1953 1,183,893
Mashreqbank PSC, Mumbai, India ACU 124,394 78.7022 9,790,081 2,503 78.5003 196,480
Mashreqbank PSC, Mumbai, India EUR 683 81.8896 55,966 2,495 85.8008 214,101
Standard Chartered Bank, Mumbai, India ACU 138,717 78.7022 10,917,326 98,425 78.5003 7,726,410
HDFC Bank Limited ACU 167,079 78.7022 13,149,520 305,929 78.5003 24,015,520
Bank of Ceylon, Colombo, Sri Lanka ACU 1,960 78.7022 154,217 - - -
Habib Metropolitan Bank, Karachi, Pakistan ACU 19,430 78.7022 1,529,192 6,791 78.5003 533,058
1,317,846,232 555,531,774
Total (b) Outside Bangladesh 2,399,011,762 1,154,177,150
Total (a+b) 20,652,231,874 26,667,404,705

ANNUAL REPORT 2016 389

 2016 2015
Taka Taka
6.2 Maturity grouping of balance with other banks and financial institutions

On demand 3,552,211,569 2,791,977,706

Within one to three months 10,067,390,863 18,219,390,021

Within three to twelve months 1,592,415,207 5,656,036,978

Within one to five years 5,440,214,235 -

More than five years - -

20,652,231,874 26,667,404,705

7. Money at call on short notice

a) With banks

NRB Bank Limited - 290,000,000

Bank Alfalah - 200,000,000

Brac Bank Limited - 1,100,000,000

AB Bank Limited - 750,000,000

National Credit and Commerce Bank Limited - 400,000,000

- 2,740,000,000

b) With non bank financial institutions

Investment Corporation of Bangladesh - 1,300,000,000

Union Capital Limited - 40,000,000

Fareast Finance Limited 50,000,000 250,000,000

Delta Brac Housing Finance Corporation Limited - 90,000,000

United Finance Limited - 50,000,000

Industrial and Infrastructure Development Finance Company Limited - 370,000,000

Lanka Bangla Finance Limited - 210,000,000

Premier Leasing & Finance Limited 30,000,000 40,000,000

Bangladesh Industrial Finance Limited 36,000,000 40,000,000

Phoenix Finance & Investment Limited - 50,000,000

International Leasing & Financial Services Limited - 90,000,000

116,000,000 2,530,000,000

Total (a+b) 116,000,000 5,270,000,000

 2016 2015
Taka Taka
8. Investments

In Government securities
Treasury bills
91-day treasury bills - -
182-day treasury bills - -
364-day treasury bills - -
07-day Bangladesh Bank bills 10,996,900,100 2,574,924,555
10,996,900,100 2,574,924,555
Treasury bonds
2-year treasury bonds 16,998,702 84,703,614
5-year treasury bonds 5,782,861,125 5,783,318,007
10-year treasury bonds 12,201,657,431 8,666,263,259
15-year treasury bonds 1,993,088,882 1,994,497,291
20-year treasury bonds 294,191,492 294,181,348
20,288,797,632 16,822,963,519
Total treasury bills and bonds 31,285,697,732 19,397,888,074
Prize bonds 5,558,500 7,392,400
31,291,256,232 19,405,280,474
Other investments

Subordinated bonds [Note 8.3] 475,960,000 793,700,000

Shares [Note 8.4] 11,283,434 11,283,434
487,243,434 804,983,434
31,778,499,666 20,210,263,908

8.1 Classification of investments

Government treasury bills and bonds

Held for trading (HFT) 4,997,960,529 -
Held to maturity (HTM) 26,287,737,203 19,397,888,074
Total investments in government securities 31,285,697,732 19,397,888,074
Prize bonds 5,558,500 7,392,400
Other investments 487,243,434 804,983,434
31,778,499,666 20,210,263,908

8.2 Details of treasury bills and bonds

Present value (Taka)

Tenors and Status (HFT) Coupon/Interest Date of maturity As at 31 Dec As at 31 Dec
2016 2015
Held for trading (HFT) [Note 8.1]
07-day Bangladesh Bank bills 2.98% 5-Jan-2017 4,997,960,529 -
5-year treasury bonds - -
Total of held for trading (HFT) securities 4,997,960,529 -

ANNUAL REPORT 2016 391

 Present value (Taka)
Tenors and Status (HTM) Coupon / interest rate Date of maturity As at 31 Dec As at 31 Dec
2016 2015
Held to maturity (HTM) [Note 8.1]
07-day treasury bills 2.98% 2-Jan-17 4,999,184,286 -
07-day treasury bills 2.98% 3-Jan-17 999,755,286 -
30-day treasury bills 2.89% 20-Jan-16 - 394,375,900
30-day treasury bills 2.80% 23-Jan-16 - 399,295,893
30-day treasury bills 2.55% 28-Jan-16 - 783,467,261
30-day treasury bills 2.74% 30-Jan-16 - 498,876,500
30-day treasury bills 2.66% 30-Jan-16 - 498,909,000
2-year treasury bonds 8.59% 5-Nov-16 - 67,711,114
2-year treasury bonds 8.50% 4-Mar-17 16,998,702 16,992,500
5-year treasury bonds 11.50% 8-Aug-17 165,900,000 165,900,000
5-year treasury bonds 11.55% 5-Sep-17 164,600,000 164,600,000
5-year treasury bonds 11.55% 3-Oct-17 129,500,000 129,500,000
5-year treasury bonds 11.50% 7-Nov-17 79,785,943 79,773,084
5-year treasury bonds 11.52% 5-Dec-17 138,139,297 138,172,407
5-year treasury bonds 11.62% 2-Jan-18 152,230,920 152,254,982
5-year treasury bonds 11.72% 6-Feb-18 156,334,118 156,358,530
5-year treasury bonds 11.82% 6-Mar-18 138,900,000 138,900,000
5-year treasury bonds 11.70% 8-May-18 74,252,154 74,223,940
5-year treasury bonds 11.75% 10-Jul-18 95,359,253 95,337,943
5-year treasury bonds 11.78% 14-Aug-18 103,853,276 103,830,334
5-year treasury bonds 11.78% 11-Sep-18 128,100,057 128,053,310
5-year treasury bonds 11.78% 9-Oct-18 136,567,173 136,507,898
5-year treasury bonds 9.82% 13-Aug-19 2,000,917,166 2,001,199,629
5-year treasury bonds 9.82% 13-Aug-19 2,000,917,166 2,001,199,629
5-year treasury bonds 9.59% 15-Oct-19 62,545,571 62,558,713
5-year treasury bonds 9.66% 12-Nov-19 54,959,032 54,947,609
10-year treasury bonds 8.50% 6-Sep-16 - 1,110,197,021
10-year treasury bonds 8.50% 4-Oct-16 - 461,482,734
10-year treasury bonds 8.50% 8-Nov-16 - 199,951,741
10-year treasury bonds 8.50% 7-Feb-17 218,615,898 212,891,375
10-year treasury bonds 8.50% 7-Mar-17 319,020,418 310,712,965
10-year treasury bonds 8.50% 9-May-17 299,913,077 299,933,545
10-year treasury bonds 8.50% 6-Jun-17 299,935,541 299,950,720
10-year treasury bonds 11.74% 2-Jan-18 500,056,384 500,095,215
10-year treasury bonds 11.72% 7-Jan-19 210,268,664 214,412,727
10-year treasury bonds 11.72% 4-Feb-19 210,586,710 214,702,801
10-year treasury bonds 11.68% 8-Apr-19 430,684,179 438,842,163
10-year treasury bonds 10.23% 6-May-19 820,892,228 828,203,148
10-year treasury bonds 9.45% 8-Jul-19 1,010,252,145 1,013,539,113
10-year treasury bonds 8.74% 5-Aug-19 993,759,561 991,893,991
10-year treasury bonds 11.75% 22-Aug-22 108,100,000 108,100,000
10-year treasury bonds 11.75% 12-Sep-22 150,400,000 150,400,000
10-year treasury bonds 11.80% 10-Oct-22 132,900,000 132,900,000
10-year treasury bonds 11.75% 14-Nov-22 160,130,218 160,101,278
10-year treasury bonds 11.80% 12-Dec-22 178,424,304 178,416,335
10-year treasury bonds 11.90% 9-Jan-23 96,900,000 96,900,000
10-year treasury bonds 12.00% 13-Feb-23 83,900,000 83,900,000
10-year treasury bonds 12.10% 13-Mar-23 111,895,886 111,860,497
10-year treasury bonds 12.10% 13-Mar-23 118,060,648 118,024,110
 Present value (Taka)
Tenors and Status (HTM) Coupon / interest rate Date of maturity As at 31 Dec As at 31 Dec
2016 2015
10-year treasury bonds 12.10% 10-Apr-23 94,253,623 94,229,781
10-year treasury bonds 12.22% 17-Jul-23 68,808,018 68,799,642
10-year treasury bonds 12.22% 17-Jul-23 66,365,333 66,349,500
10-year treasury bonds 12.22% 17-Jul-23 77,446,245 77,432,479
10-year treasury bonds 12.22% 17-Jul-23 65,282,079 65,270,915
10-year treasury bonds 12.16% 20-Nov-23 56,776,297 56,769,463
10-year treasury bonds 7.59% 20-Jul-26 519,548,446 -
10-year treasury bonds 7.59% 20-Jul-26 522,022,159 -
10-year treasury bonds 7.59% 20-Jul-26 516,040,566 -
10-year treasury bonds 7.59% 20-Jul-26 517,089,821 -
10-year treasury bonds 7.59% 20-Jul-26 265,653,370 -
10-year treasury bonds 7.59% 20-Jul-26 264,748,823 -
10-year treasury bonds 7.59% 20-Jul-26 264,208,033 -
10-year treasury bonds 7.59% 20-Jul-26 263,848,149 -
10-year treasury bonds 7.59% 20-Jul-26 550,260,631 -
10-year treasury bonds 7.59% 20-Jul-26 548,747,077 -
10-year treasury bonds 7.59% 20-Jul-26 543,490,448 -
10-year treasury bonds 7.59% 20-Jul-26 542,372,454 -
15-year treasury bonds 13.97% 15-Aug-22 358,600,000 358,600,000
15-year treasury bonds 12.22% 9-Jan-23 304,000,000 304,000,000
15-year treasury bonds 11.75% 23-May-27 1,028,931,103 1,030,363,379
15-year treasury bonds 11.88% 19-Sep-27 66,600,000 66,600,000
15-year treasury bonds 11.93% 17-Oct-27 18,267,037 18,265,654
15-year treasury bonds 12.10% 29-Dec-27 16,618,916 16,620,037
15-year treasury bonds 12.20% 16-Jan-28 14,600,000 14,600,000
15-year treasury bonds 12.38% 20-Mar-28 8,195,080 8,194,893
15-year treasury bonds 12.40% 19-Jun-28 41,548,895 41,543,389
15-year treasury bonds 12.40% 24-Jul-28 16,927,899 16,925,312
15-year treasury bonds 12.42% 25-Sep-28 38,881,071 38,876,919
15-year treasury bonds 12.42% 23-Oct-28 26,087,921 26,084,062
15-year treasury bonds 11.47% 26-Nov-29 21,157,690 21,156,350
15-year treasury bonds 11.47% 26-Nov-29 32,673,270 32,667,295
20-year treasury bonds 12.16% 29-Aug-32 58,200,000 58,200,000
20-year treasury bonds 12.16% 26-Sep-32 28,400,000 28,400,000
20-year treasury bonds 12.16% 25-Oct-32 19,672,574 19,672,039
20-year treasury bonds 12.18% 28-Nov-32 9,274,111 9,273,615
20-year treasury bonds 12.28% 26-Dec-32 19,000,000 19,000,000
20-year treasury bonds 12.48% 27-Mar-33 13,871,260 13,870,749
20-year treasury bonds 12.48% 26-Jun-33 20,002,804 20,001,141
20-year treasury bonds 12.48% 25-Sep-33 19,405,280 19,403,714
20-year treasury bonds 12.33% 26-Dec-33 24,889,851 24,889,858
20-year treasury bonds 11.98% 29-Oct-34 37,064,553 37,062,497
20-year treasury bonds 11.98% 26-Nov-34 16,304,492 16,303,062
20-year treasury bonds 11.98% 26-Nov-34 28,106,567 28,104,671
Total of held to maturity (HTM) securities 26,287,737,203 19,397,888,074
Total of treasury bills and bonds (HFT and HTM) 31,285,697,732 19,397,888,074

ANNUAL REPORT 2016 393

 2016 2015
Taka Taka
8.3 Other investments -Subordinated Bonds

Prime Bank 7 Years Bond 200,000,000 400,000,000

Mutual Trust Bank Bond 75,000,000 112,500,000
Dhaka Bank Bond 40,000,000 70,000,000
National Bank Bond 40,960,000 51,200,000
First Security Islami Bank Mudaraba Bond 120,000,000 160,000,000
475,960,000 793,700,000
8.4 Other investments - shares

In shares (quoted and unquoted)

Quoted
RAK Ceramics (Bangladesh) Limited 5,664 5,664
5,664 5,664
Unquoted
Central Depository Bangladesh Limited 6,277,770 6,277,770
Market Stabilization Fund (MSF) Asset Management Company Limited 5,000,000 5,000,000
11,277,770 11,277,770
11,283,434 11,283,434
8.5 Valuation of investments
Cost / present Market/present
value value
at 31 Dec 2016
Taka Taka
Government securities
Treasury bills and bonds
Held for trading (HFT) 4,997,960,529 4,997,960,529
Held to maturity (HTM) 26,287,737,203 26,287,737,203
Prize bonds 5,558,500 5,558,500
31,291,256,232 31,291,256,232
Other investments
Subordinated bonds
Prime Bank 7 Years Bond 200,000,000 200,000,000
Mutual Trust Bank Bond 75,000,000 75,000,000
Dhaka Bank Bond 40,000,000 40,000,000
National Bank Bond 40,960,000 40,960,000
First Security Islami Bank Mudaraba Bond 120,000,000 120,000,000
475,960,000 475,960,000
Shares (Quoted and unquoted)
Number of Cost per share
Quoted as at 31 December 2016
shares Taka
RAK Ceramics (Bangladesh) Limited 170 33.32 5,664 8,728
Sub total 170 33.32 5,664 8,728
Unquoted as at 31 December 2016
Central Depository Bangladesh Limited 2,284,721 2.75 6,277,770 6,277,770
Market Stabilization Fund (MSF) Asset
Management Company Limited 500,000 10.00 5,000,000 5,000,000
Sub total 2,784,721 11,283,434 11,286,498
Total of other investments 2,784,891 487,243,434 487,246,498
Total investments 31,778,499,666 31,778,502,730
 2016 2015
Taka Taka
8.6 Maturity grouping of investments

Payable
On demand 11,002,458,600 7,392,400
Within one to three months 487,243,434 3,379,907,989
Within three to twelve months - 1,839,342,610
Within one to five years 11,113,844,630 11,125,488,271
More than five years 9,174,953,002 3,858,132,638
31,778,499,666 20,210,263,908
8.7 Disclosures for REPO and Reverse REPO transactions

In terms of the instructions contained in DOS Circular No. 6 dated 15 July 2010,
the disclosures requirements for REPO and Reverse REPO transactions of the
Bank are furnished below:

8.7.1 Disclosure regarding outstanding REPO as on 31 December 2016

Amount
Agreement
SL No. Name of the counter party Reversal date (1st leg cash
date
consideration)
- - - -

8.7.2 Disclosure regarding outstanding Reverse REPO as on 31 December 2016

Amount
Agreement
SL No. Name of the counter party Reversal date (1st leg cash
date
consideration)
- - - -

8.7.3 Disclosure regarding overall transactions of REPO and Reverse REPO for the year
ended 31 December 2016

Minimum Maximum Daily average

outstanding outstanding outstanding
Particulars
during the year during the year during the year
Taka Taka Taka
Securities sold under repo / ALS
i) With Bangladesh Bank - - -
ii) With other banks and financial institutions - - -
Securities purchased under reverse repo
i) From Bangladesh Bank - - -
ii) From other banks and financial institutions - - -

9. Loans and advances

Main Operation [Note 9.1]

Loans, cash credits, overdrafts, etc. 161,604,799,911 141,916,487,380

Bills purchased and discounted 4,043,027,535 4,435,153,728
165,647,827,446 146,351,641,108
Off-shore Banking Unit

Loans, cash credits, overdrafts, etc. 810,947,527 564,580,712

Bills purchased and discounted 6,939,022,658 5,353,778,645
7,749,970,185 5,918,359,357
Total loans and advances 173,397,797,631 152,270,000,465

ANNUAL REPORT 2016 395

 2016 2015
Taka Taka
9.1 Loans, cash credits, overdrafts etc.-Main Operation

In Bangladesh
Overdraft 19,857,236,266 20,799,012,656
Cash credit 46,031,393,256 40,721,204,430
Export cash credit 15,516,564,255 11,381,634,576
Transport loan 1,766,837,610 1,628,922,673
House building loan 1,244,458,024 1,015,454,534
Loan against trust receipt 6,300,107,014 7,249,482,303
Term loan - industrial 44,876,698,889 39,308,844,576
Term loan - other 20,099,619,806 15,570,227,158
Payment against document - cash 231,466,581 56,829,166
Payment against document - EDF 1,207,104,350 1,523,653,000
Consumer Finance 3,881,634,939 2,103,959,432
Staff loan 591,678,921 557,262,876
161,604,799,911 141,916,487,380
Outside Bangladesh - -
161,604,799,911 141,916,487,380
Bills purchased and discounted -Main Operation
Payable in Bangladesh
Inland bills purchased 3,984,735,262 4,342,400,803
Payable outside Bangladesh
Foreign bills purchased and discounted 58,292,273 92,752,925
4,043,027,535 4,435,153,728
Total loans and advances 165,647,827,446 146,351,641,108

Total loans and advances of the Bank include outstanding amount against the Small
and Medium Enterprises (SME) financing as follows [Note 9.5]:

Loans to Small and Medium Enterprise (SME) financing 23,720,499,207 22,719,034,851

9.2 Net loans and advances including bills purchased and discounted

Total loans and advances [Note 9.1] 165,647,827,446 146,351,641,108

Less : Provision against loans and advances (specific and general) [Note 9.9(b)] 6,418,141,865 4,218,507,456
Less : Cumulative balance of interest suspense account [Note 14.1.4] 2,148,422,267 1,552,447,367
157,081,263,314 140,580,686,285

9.3 Residual maturity grouping of loans and advances including bills purchased and discounted

Payable
On demand 14,596,266,950 13,748,410,432
Within one to three months 39,751,461,341 39,235,759,352
Within three to twelve months 71,153,694,598 52,097,020,639
Within one to five years 28,483,070,999 27,139,072,836
More than five years 11,663,333,559 14,131,377,849
165,647,827,446 146,351,641,108
 2016 2015
Taka Taka
9.4 Loans and advances including bills purchased and discounted are classified into
the following broad categories -Main Operation

a) Loans and advances

In Bangladesh
Loans 95,716,170,389 80,396,270,294
Cash credit 46,031,393,256 40,721,204,430
Overdraft 19,857,236,266 20,799,012,656
161,604,799,911 141,916,487,380
Outside Bangladesh - -
161,604,799,911 141,916,487,380

b) Bills purchased and discounted

Payable in Bangladesh 3,984,735,262 4,342,400,803

Payable outside Bangladesh 58,292,273 92,752,925
4,043,027,535 4,435,153,728
Total (a+b) 165,647,827,446 146,351,641,108

9.5 Loans and advances including bills purchased and discounted on the basis of
significant concentration

i. Loans and advances to the allied concerns of the directors - -

ii. Advances to chief executive and other senior executives (AVP and above) 587,563,315 545,180,830

iii. Advances to customers group

Commercial lending 7,344,100,794 14,811,992,291
Agricultural loan 2,578,596,561 2,348,752,121
Export financing 1,503,446,480 1,261,359,460
Consumer credit scheme 3,913,304,584 3,197,153,780
Small and medium enterprise financing 23,720,499,207 22,719,034,851
Staff loan (except Sl. No. ii) 4,115,606 12,082,046
House building loan (other than the employees) 1,243,532,204 470,328,478
Others 124,752,668,696 100,985,757,251
165,060,264,131 145,806,460,278
165,647,827,446 146,351,641,108

iii(a). Disclosure on large loan

Disclosures on large loan i.e. loan sanctioned to any individual or enterprise

or any organization of a group amounting to 10% or more of the Banks total
capital and classified amount therein and measures taken for recovery of
such loan have been furnished as under. Mentionable that, total capital of the
Bank as at 31 December 2016 was Taka 21,249,366,086 against that of Taka
21,137,599,847 as at 31 December 2015.

iii (a.i) Number of clients to whom loans and advances sanctioned each more than 10%
of the Banks total capital 41 35

iii (a.ii) Amount of outstanding loans and advances [to the clients quoted in iii(a.i) above] 68,450,100,000 58,443,800,017

iii (a.iii) Amount of classified loans and advances [out of the amount quoted in iii(a.ii) above] - -

iii (a.iv) Measures taken for recovery [for the amount mentioned in iii(a.iii) above] Not applicable Not applicable

ANNUAL REPORT 2016 397

 2016 2015
Taka Taka
9.6 Industry-wise loans and advances including bills purchased and discounted

Agriculture, fisheries and forestry 2,578,596,561 2,348,752,121

Pharmaceutical industries 1,867,338,341 2,567,139,854
Textile industries 61,230,322,986 42,749,356,692
Ready- made garment industries 18,886,122,604 24,051,528,683
Chemical industries 233,366,822 163,404,630
Bank and other financial institutions 4,034,402,159 2,283,567,153
Transport and communication 1,175,132,756 2,400,865,143
Electronics and automobile industries 2,032,916,140 2,717,465,806
Housing and construction industries 6,771,363,854 6,355,293,020
Energy and power industries 529,711,540 939,762,185
Cement and ceramic industries 1,579,685,840 1,507,860,535
Food and allied industries 6,172,074,040 2,216,670,148
Engineering and metal industries including ship breaking 5,514,221,542 6,379,026,518
Service industries 7,500,780,667 8,173,934,390
Other industries 455,41,791,595 41,497,014,230
165,647,827,446 146,351,641,108

9.7 Geographical location-wise loans and advances including bills purchased and discounted

Urban
Dhaka Division 139,606,458,740 121,242,480,978
Chittagong Division 11,622,662,554 13,088,046,145
Khulna Division 1,746,852,612 1,680,668,146
Sylhet Division 371,872,285 217,652,565
Barisal Division 130,214,840 102,704,878
Rajshahi Division 790,902,542 581,706,122
Rangpur Division 612,828,630 299,810,279
Mymensingh Division 407,600,015 287,565,381
155,289,392,218 137,500,634,494
Rural
Dhaka Division 9,171,971,755 7,855,897,254
Chittagong Division 634,103,801 542,880,309
Sylhet Division 276,992,313 175,354,165
Rajshahi Division 147,544,847 136,271,237
Rangpur Division 65,834,104 64,520,016
Mymensingh Division 61,988,408 76,083,633
10,358,435,228 8,851,006,614
165,647,827,446 146,351,641,108
9.8 Broad economic sector-wise segregation of loans and advances including bills
purchased and discounted

Government and autonomous bodies - -

Bank and financial institutions (public and private) 4,034,402,159 2,283,567,153
Other public sector 132,263,858 113,336,593
Private sector 161,481,161,429 143,954,737,362
165,647,827,446 146,351,641,108
9.9 a) Classification of loans and advances including bills purchased and discounted
Year
2016 2015
Status of loans and advances Outstanding amount (Taka) Total
Main Operation Off-shore Mix (%) Outstanding Mix (%)
Total
[Note 9.9.b] Banking Unit amount (Taka)
Unclassified loans and advances
Standard (including staff loans) 151,555,294,416 7,749,970,185 159,305,264,601 91.87% 140,317,638,920 92.15%
Special mention account 5,093,502,835 - 5,093,502,835 2.94% 6,327,504,475 4.16%
Total unclassified loans and advances 156,648,797,251 7,749,970,185 164,398,767,436 94.81% 146,645,143,395 96.31%
Classified loans and advances
Substandard 352,956,624 - 352,956,624 0.20% 1,215,748,451 0.80%
Doubtful 340,001,334 - 340,001,334 0.20% 191,276,743 0.13%
Bad/loss 8,306,072,236 - 8,306,072,236 4.79% 4,217,831,876 2.77%
Total classified loans and advances 8,999,030,195 - 8,999,030,195 5.19% 5,624,857,070 3.69%
Total loans and advances 165,647,827,446 7,749,970,185 173,397,797,631 100.00% 152,270,000,465 100.00%

b) Classification and provisioning of loans and advances including bills purchased and discounted

Percentage
Amount of
(%) of Amount of Amount of
outstanding
Base for provision provision provision
loans and
Classification / Status of provision required as per required as at required as at
advances as at
loans and advances Bangladesh 31 December 31 December
31 December
Banks 2016 2015
2016
(Taka) directives (Taka) (Taka)
(Taka)
Unclassified loans and advances
All unclassified loans (other than loans under
small and medium enterprise, consumer
financing and short term agricultural credit) 120,636,520,706 120,044,841,785 1% 1,233,052,636 1,091,065,803
Small and medium enterprise financing 22,155,958,715 22,155,958,715 0.25% 55,389,897 51,922,342
Consumer financing (other than housing
finance under consumer financing scheme) 3,901,058,600 3,901,058,600 5% 195,052,930 138,586,059
Consumer financing (for housing finance) 2,042,163,112 2,042,163,112 2% 40,843,262 25,514,284
Loans to BHs/MBs/SDs 240,996,722 240,996,722 2% 4,819,935 8,167,397
Short term agricultural credit 2,578,596,561 2,578,596,561 2.5% 64,464,914 58,574,586
151,555,294,416 150,963,615,495 1,593,623,574 1,373,830,471
Special mention account
All unclassified loans (other than loans under
small enterprise and consumer financing) 4,723,469,758 4,723,469,758 1% 47,234,698 56,659,857
Small & Medium enterprise financing 236,672,633 236,672,633 0.25% 591,682 1,466,811
Consumer financing (other than housing
finance under consumer financing scheme) 79,082,528 79,082,528 5% 3,954,126 3,195,132
Consumer financing (for housing finance) 54,277,916 54,277,916 2% 1,085,558 217,838
5,093,502,835 5,093,502,835 52,866,064 61,539,638
156,648,797,251 156,057,118,330 1,646,489,638 1,435,370,109
Classified loans and advances

Substandard 352,956,624 241,516,534 20% 48,387,667 156,189,527

Doubtful 340,001,334 56,867,394 50% 28,433,697 31,153,150
Bad /loss 8,306,072,236 4,684,578,840 100% 4,684,578,840 2,397,793,779
8,999,030,195 4,982,962,768 4,761,400,204 2,585,136,456
165,647,827,446 161,040,081,099 6,407,889,842 4,020,506,565

Total provision maintained 6,418,141,865 4,218,507,456

Total provision surplus 10,252,023 198,000,891

ANNUAL REPORT 2016 399

 2016 2015
Taka Taka
b.1) Total provision required
Main Operation (i) 6,407,889,842 4,020,506,565
Off-shore Banking Unit (ii) 77,499,702 59,183,594
6,485,389,544 4,079,690,159
Total provision maintained
Main Operation (iii) 6,418,141,865 4,218,507,456
Off-shore Banking Unit (iv) 77,499,755 59,183,628
6,495,641,620 4,277,691,084
Total provision surplus
Main Operation (iii-i) 10,252,023 198,000,891
Off-shore Banking Unit (iv-ii) 53 34
10,252,076 198,000,925
c) Disclosure on large loan restructure

The Bank has restructured large loan facilities of M/S Jamuna Spinning Mills
Limited and M/S Jamuna Builders Limited for an aggregate amount of Taka
1,754,510,000 under BRPD Circular No. 04 dated 29 January 2015 as approved
by Bangladesh Bank vide BRPD letter no. BRPD(P-1)/661/13(Cha)/2015-11522
dated 02 September 2015 .

9.10 Particulars of loans and advances including bills purchased and discounted

i) Loans considered good in respect of which the banking company is fully secured 132,169,254,736 116,773,974,440

ii) Loans considered good for which the banking company holds no other security
other than the debtors personal guarantee 6,837,100,364 6,039,932,229

iii) Loans considered good and secured by the personal undertakings of one or
more parties in addition to the personal guarantee of the debtors 26,641,472,346 23,537,734,439

iv) Loans adversely classified; provision not maintained thereagainst - -

165,647,827,446 146,351,641,108

v) Loans due by directors or officers of the banking company or any of them either
separately or jointly with any other persons * 591,678,921 557,262,876

vi) 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 - -

vii) Maximum total amount of advances, including temporary advances made at

any time during the year to directors or managers or officers of the banking
company or any of them either separately or jointly with any other persons 591,678,921 557,262,876

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 - -
 2016 2015
Taka Taka

ix) Due from other banking companies - -

x) Amount of classified loans on which interest has not been charged 8,306,072,236 4,217,831,876

a.i) Increase/(decrease) in specific provision 1,986,434,409 (252,950,045)

a.ii) Amount of loan written-off during the year 407,892,546 61,220,853
a.iii) Amount realized against loan previously written-off 493,980 6,299,930
b) Amount of provision kept against loan classified as bad/loss on the
date of preparing the balance sheet 4,684,578,840 2,397,793,779
c) Interest creditable to the interest suspense account (during the year) 1,545,038,895 1,135,833,214
* Amount represents loans to employees of the Bank only.

xi) a) Cumulative amount of written-off loan

Opening balance 1,115,694,766 1,071,233,933
Add: Amount written-off during the year 407,892,546 61,220,853
Less: Amount realized against written-off loan during the year 493,980 6,299,930
Less: Amount waiver / adjustment against written-off loan during the year - 10,460,090
Balance as on 31 December 1,523,093,332 1,115,694,766

b) Amount realized against loan previously written - off 493,980 6,299,930

c) Amount of written-off loan for which lawsuit has been filed for its recovery 1,523,093,332 1,115,694,766

9.11 Bills purchased and discounted

Payable
In Bangladesh 3,984,735,262 4,342,400,803
Outside Bangladesh 58,292,273 92,752,925
4,043,027,535 4,435,153,728
9.11.1 Bills purchased and discounted on the basis of the residual maturity grouping

Payable
Within one month 1,384,372,210 1,838,858,286
More than one month but less than three months 1,859,772,567 1,773,620,140
More than three months but less than six months 798,882,758 822,675,302
Above six months - -
4,043,027,535 4,435,153,728

ANNUAL REPORT 2016 401

9.12 Litigation filed by the Bank
As of the reporting date, the Bank filed lawsuit against recovery of its defaulted loans and advances as under:
Lawsuit filed for recovery of loans
and advances outstanding as at
Name of the Branch 31 December
2016 2015
Local Office 1,629,544,529 1,203,836,575
Agrabad Branch 263,137,720 466,366,918
Banani Branch 5,615,756 5,615,756
Nababpur Branch 8,741,410 8,355,550
Motijheel (Foreign Exchange) Branch 282,596,656 285,032,575
Narayangonj Branch 82,325,845 82,325,845
Kawran Bazar Branch 122,890,177 123,373,746
Shantinagar Branch 196,923 25,925,817
Baburhat Branch 1,271,388,693 168,563,234
Dhanmondi Branch 1,173,118 1,173,118
Patherhat Branch - 635,685
Mohakhali Branch 166,827,630 166,827,630
Gulshan Branch 294,965,283 667,243,505
Khulna Branch 1,755,044 1,755,044
Sylhet Branch 18,499,578 17,982,848
Board Bazar Branch 174,905,286 174,905,286
Elephant Road Branch 300,432 300,432
Shimrail Branch 241,033 241,033
CDA Avenue 65,443,008 127,943,008
Joypara Branch 2,526,447 2,689,573
Biswanath Branch - 610,000
Moulvibazar Branch 122,222 261,182
Muradpur Branch 55,417,618 54,533,196
Rajshahi Branch 1,971,743 1,971,743
Savar Bazar Branch 309,483 309,483
Gazipur Chowrasta Branch 211,370 226,707
Imamgonj Branch 83,628 83,628
Jubilee Road Branch 3,279,755 3,444,587
Kadamtoli Branch 4,854,337 5,734,308
Cox's Bazar 417,858 417,858
Lohagara Branch 1,546,782 911,362
Ring Road Branch 872,145 1,412,145
Fatikchari 4,100,027 -
Goalabazar Branch 3,522,423 4,975,255
Khatungonj Branch 27,630,089 24,817,042
Beani Bazar Branch 869,093 1,445,933
Chhatak Branch 568,000 568,000
Rangpur Branch 2,094,515 2,094,515
Halishahar Branch 14,587,452 1,194,521
Sreemongal Branch 268,789 268,789
Bhairab Branch 329,950 329,950
Gobindagonj Branch 1,133,711 1,133,711
Tongi 4,690,250 -
Satkhira Branch 5,952,763 3,560,400
Madaripur Branch - 258,790
Meghula SME / Agriculture Branch 1,000,000 1,196,763
Habiganj Branch 2,074,090 2,379,649
Shahjalal Uposhohar Branch - 1,361,545
Raozan SME / Agriculture Branch 1,361,545 559,213
Borolekha Branch 171,473 171,473
Naogaon Branch 697,459 697,459
Total 4,533,213,139 3,648,022,384
 2016 2015
Taka Taka
10. Fixed assets at cost or revalued amount including land, building, furniture and fixtures

Main Operation [Note 10.1]

Total cost 11,215,668,937 9,864,578,033

Less: Accumulated depreciation 6,343,801,962 5,345,284,259
4,871,866,975 4,519,293,774
Off-shore Banking Unit

Total cost 101,633 101,633

Less: Accumulated depreciation 101,551 90,617
82 11,016
Total Fixed assets at cost or revalued 4,871,867,057 4,519,304,790

Details are shown in Annexure-A

10.1 Fixed assets at cost or revalued amount including land, building, furniture and fixtures

Land 748,360,000 748,360,000

Building 399,543,957 399,543,957
Interior decoration 946,202,143 834,792,761
Furniture and fixtures 315,212,029 286,839,559
Other machinery and equipment 1,562,898,392 1,321,069,745
Computer equipment and software 3,314,094,278 2,961,879,713
Motor vehicles 399,368,525 390,860,145
ATM Booth 979,321,342 819,303,882
ATM/Fast Track (Deposit Machine) 2,550,473,680 2,101,733,680
Books 194,591 194,591
11,215,668,937 9,864,578,033
Less: Accumulated depreciation 6,343,801,962 5,345,284,259
4,871,866,975 4,519,293,774
11. Other assets

Main Operation

Income generating other assets (Note 11.1.a) - -

Non-income generating other assets (Note 11.1.b) 14,374,242,044 10,180,005,187
14,374,242,044 10,180,005,187
Off-shore Banking Unit 16,387,601 9,294,150
Total Other assets 14,390,629,645 10,189,299,337

11.1.a Income generating other assets

i) Investment in shares of subsidiary companies:

In Bangladesh - -
Outside Bangladesh - -
- -

ANNUAL REPORT 2016 403

 2016 2015
Taka Taka
11.1.b Non-income generating other assets

i) Stationery, stamps, printing materials in stock 136,479,702 176,985,243

ii) Advance rent and advertisement 641,272,498 489,739,629
iii) Interest accrued on investment but not collected, commission and brokerage
receivable on shares and debentures and other income receivable 848,266,647 794,217,023
iv) Security deposits 13,018,436 11,907,787
v) Preliminary, formation and organization expenses, renovation/
development expenses and prepaid expenses 1,688,585,620 1,392,556,605
vi) Branch adjustment (net) 5,639,176 5,856,274
vii) Suspense account (8,800,498) 1,915,683
viii) Silver - -
ix) Others [Note 11.2] 11,049,780,463 7,306,826,943
14,374,242,044 10,180,005,187
11.2 Break-up of others

Encashment of Sanchaya Patra (awaiting realization) 331,338,472 185,402,332

Advance tax [Note 11.2.1] 7,772,859,414 5,130,567,030
Deferred tax [Note 11.2.2] 1,833,787,677 1,155,454,898
Sundry assets [Note 11.2.3] 1,111,794,900 835,402,683
11,049,780,463 7,306,826,943
11.2.1 Advance tax

The amount is stated after adjustment of advance income tax against final
assessment orders for the accounting years 1996, 1997, 2001, 2002, 2003, 2004,
2005, 2006, 2007, 2008 and 2009. [Note 14.1.2 and 14.1.2.2]

11.2.2 Deferred tax

Opening balance 1,155,454,898 1,179,446,527

Add: Deferred tax assets / (liability) for the year [Note11.2.2.1] 678,332,779 (23,991,629)
Closing balance 1,833,787,677 1,155,454,898

11.2.2.1 Detail calculation of deferred tax asset / (liability)

In terms of instructions contained in BRPD Circular No. 11 dated 12 December 2011

and provision of Bangladesh Accounting Standard (BAS) - 12, Taxation, the detail
calculation of deferred tax asset / (liability) of the Bank is furnished as under:

i) Temporary timing difference in written down value (WDV) of Fixed Assets

Accounting written down value [carrying amount] of fixed assets (excluding value of land) [A] 3,952,352,928 3,594,600,548
Written down value of fixed assets as per Tax (Tax base) as of the balance sheet date (excluding
value of land) [B] 3,427,558,255 3,335,208,337
Temporary timing difference in Accounting WDV and Tax WDV (excluding value of land) [B - A] (524,794,673) (259,392,211)
 2016 2015
Taka Taka

ii) Temporary timing difference in provision for other classified assets [Note 14.1.1] 104,893,000 84,893,000

iii) Temporary timing difference in specific provision for loans and advances [Note 14.1.3(A)] 4,769,570,865 2,783,136,456

iv) Temporary timing difference in provision for Gratuity [Note 14.1] 234,800,000 280,000,000

Total amount of temporary timing differences in assets / (liabilities) [i+ii+iii] [C] 4,584,469,192 2,888,637,245

Effective tax rate [D] 40.00% 40.00%

Deferred tax asset / (liability) [ C X D] 1,833,787,677 1,155,454,898

Deferred tax (liability) / asset for the year [ Note 11.2.2 ] 678,332,779 (23,991,629)

iv) Detail description of deferred tax asset recognized on specific loan loss provision

a) Amount of deferred tax asset recognized on specific loan loss provision

Temporary timing difference in specific provision for loans and advances 4,769,570,865 2,783,136,456
Effective tax rate 40.00% 40.00%
Deferred tax asset recognized 1,907,828,346 1,113,254,582

b) Method of calculation As per BAS -12 As per BAS -12

and Income Tax and Income Tax
Ordinance, 1984 Ordinance, 1984

c) Year of origin of deferred tax asset on specific loan loss provision

2007 229,694,727 229,694,727

2008 (20,889,786) (20,889,786)
2009 106,847,212 106,847,212
2010 60,085,384 60,085,384
2011 75,234,728 75,234,728
2012 132,159,371 132,159,371
2013 393,254,949 393,254,949
2014 313,950,178 313,950,178
2015 (177,082,181) (177,082,181)
2016 794,573,764 -
Total as at 31 December 1,907,828,346 1,113,254,582

As per BRPD Circular no. 11 dated 12 December 2011, the above amount of
deferred tax originated against specific loan loss provision and included
in the accumulated retained earning is not distributable as dividend.

d) Amount recognized and realized in the financial statements for the year 794,573,764 (177,082,181)

e) Expected time of adjustment of deferred tax asset recognized against

specific loan loss provision

Temporary timing difference in terms of specific provision against

loans and advances will be adjusted in future when the loans and
advances will be recovered or written-off.
ANNUAL REPORT 2016 405
 2016 2015
Taka Taka
11.2.3 Sundry assets

Sundry debtors 82,396,350 72,800,461

Cash remittance 168,827,393 162,728,877
Others 860,571,157 599,873,345
1,111,794,900 835,402,683
12. Borrowings from other banks, financial institutions and agents

Main Operation [Note 12.1] 16,897,769,257 12,467,006,141

Off-shore Banking Unit 10,433,779,680 7,816,530,583
27,331,548,937 20,283,536,724
12.1 Borrowings from other banks, financial institutions and agents- Main operation

a) In Bangladesh

Secured
Refinance from Bangladesh Bank
Housing [Note 12.3] 14,488,988 7,357,136
Investment Promotion and Financing Facility (IPFF) [Note 12.3] - 450,458,795
Export Development Fund (EDF) 13,892,564,091 9,877,692,229
Small and Medium Enterprise (SME) [Note 12.2 , 12.3] 45,580,893 26,260,714
13,952,633,972 10,361,768,874
Unsecured

Credit lines
From Rupantarita Prakritik Gas Company Limited (RPGCL) 71,681,760 111,915,691
71,681,760 111,915,691
14,024,315,732 10,473,684,565
b) Outside Bangladesh

Secured - -
Unsecured
Credit lines
Others 2,873,453,525 1,993,321,576
2,873,453,525 1,993,321,576
2,873,453,525 1,993,321,576
Total (a+b) 16,897,769,257 12,467,006,141

12.2 Small and Medium Enterprise (SME)

Refinance facility (ies) availed from Bangladesh Bank under the following
schemes for Small and Medium Enterprises :

Asian Development Bank Fund [Note 12.3] 6,845,625 16,312,500

International Development Agency (IDA) and Enterprise Growth and
Bank Modernization Programme (EGBMP) Fund [Note 12.3] 57,143 357,143
Women Entrepreneur Fund [Note 12.3] 33,678,125 9,591,071
10 Taka Account Fund [Note 12.3] 5,000,000 -
45,580,893 26,260,714
 2016 2015
Taka Taka
12.3 Assets pledged as security for liability

As at the reporting date of these financial statements, the Bank had no assets pledged
as security except the Balance with Bangladesh Bank (local currency) against liability of
refinance facility availed from Bangladesh Bank under the Housing Loan, Investment
Promotion and Financing Facility (IPFF), Small & Medium Enterprising Financing
under Asian Development Bank Fund, International Development Agency (IDA) and
Enterprise Growth and Bank Modernization Programme (EGBMP) Fund and Women
Entrepreneur Fund by the Bank. [Note 12.1]

12.4 Residual maturity grouping of borrowings from other banks, financial institutions and agents

Repayable
Within one month 994,506,629 393,483,966
Over one month but within three months 4,950,559,662 3,402,494,785
Over three months but within twelve months 4,701,900,186 5,195,443,938
Over one year but within five years 4,728,377,004 2,271,195,945
More than five years 1,522,425,776 1,204,387,506
16,897,769,257 12,467,006,141
13. Deposits and other accounts

Main Operation [Note 13.1] 207,185,340,893 186,708,594,002

Off-shore Banking Unit 48,624,470 56,407,536
207,233,965,363 186,765,001,538
13.1 Deposits and other accounts - Main Operation

Current deposits and other accounts

Current deposits 44,430,502,804 36,413,812,227
Foreign currency deposits 1,421,786,722 1,064,391,111
Sundry deposits [Note 13.2] 10,081,188,628 9,950,314,890
55,933,478,154 47,428,518,228
Bills payable
Payment order 3,770,600,641 2,781,866,148
Demand draft 19,877,765 46,078,935
3,790,478,406 2,827,945,083
Savings bank deposits 82,480,121,034 70,609,619,683

Term deposits
Fixed deposits 45,447,175,897 45,035,754,514
Special notice deposits 19,397,274,804 20,600,546,972
Non resident foreign currency deposits 2,702,945 2,698,932
Resident foreign currency deposits 57,399,841 41,584,230
Monthly term deposits 76,709,812 161,926,360
64,981,263,299 65,842,511,008
207,185,340,893 186,708,594,002

ANNUAL REPORT 2016 407

 2016 2015
Taka Taka
13.2 Details of sundry deposits

Margin on irrevocable letters of credit 634,791,690 716,946,661

Margin on letters of guarantee 266,030,112 227,851,317
Margin on inward foreign documentary bills for collection (IFDBC) 380,123,552 562,524,062
Sundry deposit on foreign bills purchased awaiting for realization (FBPAR) 5,860,881,903 5,903,097,850
Sundry deposit - withholding tax -IT 304,151,299 271,611,404
Sundry deposit - excise duty 484,991,502 434,803,318
Sundry deposit - withholding tax -VAT 137,134,869 114,299,930
Sundry deposits-sale proceeds of Sanchay Patra 64,962,484 144,902,183
Interest payable on deposit accounts 568,176,883 724,737,474
Deposits on lease finance 200,000 200,000
Others sundry deposits 1,379,744,334 849,340,691
10,081,188,628 9,950,314,890
13.3 Segregation of deposits and other accounts

Other than inter-bank deposits 207,176,308,722 186,684,152,897

Inter-bank deposits [Note 13.7] 9,032,171 24,441,105
207,185,340,893 186,708,594,002
13.4 Residual maturity grouping of deposits and other accounts

(a) Other than inter-bank deposits

Repayable
On demand 33,933,806,533 27,880,680,804
Within one month 20,427,613,153 21,109,472,831
Over one month but within six months 57,667,110,364 51,961,003,944
Over six months but within one year 41,966,134,120 37,813,624,556
Over one year but within five years 37,937,544,725 34,183,660,299
Over five years but within ten years 15,244,099,826 13,735,710,463
207,176,308,722 186,684,152,897
(b) Inter-bank deposits [Note 13.6]

Repayable
On demand 724,320 1,960,013
Within one month 5,913,436 16,001,792
Over one month but within six months 2,394,415 6,479,301
Over six months but within one year - -
Over one year but within five years - -
Over five years but within ten years - -
9,032,171 24,441,105
Total (a+b) 207,185,340,893 186,708,594,002

13.5 Unclaimed deposits for ten (10) years and more held by the Bank - -
- -
 2016 2015
Taka Taka
13.6 As at the reporting date of these financial statements, there were no valuable
items unclaimed for ten (10) years or more held by the Bank.

13.7 Details of inter-bank deposits

In current deposits account

Al-Arafah Islami Bank Limited 740,893 8,249,543
Dhaka Bank Limited - 77,705
Southeast Bank Limited 9,975 11,125
750,868 8,338,373
In special notice deposits account
Janata Bank Limited 56,061 56,102
Dhaka Bank Limited 6,867,770 8,435,280
Mutual Trust Bank Limited 64,831 64,454
National Credit and Commerce Bank Limited 154,115 154,985
Prime Bank Limited 862,673 6,333,612
ICB Islami Bank Limited 108,167 106,111
Bank Asia Limited - 770
The City Bank Limited 82,649 80,328
First Security Islami Bank Limited 1,671 2,731
The Trust Bank Limited 83,366 868,359
8,281,303 16,102,732
9,032,171 24,441,105
13.8 Sector-wise break up of deposits and other accounts

Year
2016 2015
Deposit and other accounts
Outstanding Outstanding
Mix (%) Mix (%)
amount (Taka) amount (Taka)
a) Other than inter-bank deposits
Government institutions 1,110,995,000 0.54% 994,697,000 0.53%
Autonomous and semi autonomous bodies 782,208,000 0.38% 853,698,000 0.46%
Public non-financial corporations 5,505,865,000 2.66% 5,055,923,000 2.71%
Local authorities 578,132,000 0.28% 583,260,000 0.31%
Non-bank depository corporations-public 158,395,000 0.08% 145,349,000 0.08%
Other financial intermediaries-public 25,167,000 0.01% 25,162,000 0.01%
Insurance companies and pension funds - public 16,392,000 0.01% 20,892,000 0.01%
Private sector (including individual public deposit) 198,999,154,722 96.03% 179,005,171,897 95.87%
207,176,308,722 99.99% 186,684,152,897 99.98%
b) Inter-bank deposits [Note 13.7]
State-owned commercial banks (SCBs) 56,061 0.00% 56,102 0.00%
Specialised banks (SBs) - 0.00% - 0.00%
Private commercial banks (PCBs) 8,976,110 0.01% 24,385,003 0.02%
9,032,171 0.01% 24,441,105 0.02%
Total (a+b) 207,185,340,893 100.00% 186,708,594,002 100.00%

ANNUAL REPORT 2016 409

 2016 2015
Taka Taka
14. Other liabilities

Main Operation [Note 14.1] 20,779,319,601 15,727,054,320

Off-shore Banking Unit 139,246,609 125,740,107
20,918,566,210 15,852,794,427

14.1 Other liabilities- Main operation Notes

Unclaimed dividends 247,344,005 128,087,041

Provision for expenses 183,082,761 249,540,269
Contribution to Dutch-Bangla Bank Limited Employees' Superannuation Fund 12,500,000 10,000,000
Contribution to Dutch-Bangla Bank Limited Employees' Gratuity Fund 234,800,000 280,000,000
Provision for interest on credit lines, refinance scheme and subordinated debt 195,703,324 159,211,122
Provision for classified assets 14.1.1 104,893,000 84,893,000
Provision for taxation 14.1.2 10,389,863,042 8,240,134,526
Accumulated provision for loans and advances including off-balance sheet exposures 14.1.3 7,018,658,683 4,768,657,005
Cumulative balance of interest suspense account 14.1.4 2,148,422,267 1,552,447,367
Others 244,052,519 254,083,990
20,779,319,601 15,727,054,320
14.1.1 Provision for classified assets

Provision for other classified assets [Note 14.1.1.1] 104,893,000 84,893,000

Provision for nostro accounts [Note 14.1.1.2] - -
104,893,000 84,893,000
14.1.1.1 Provision for other classified assets

As per BRPD Circular No. 14 dated 25 June 2001, the following amount has been
provided in the financial statements of the Bank as provision for other classified
assets (legal expenses recoverable from the defaulted borrowers):

Opening balance 84,893,000 60,763,000

Add: Provision made for the year 20,000,000 24,130,000
Closing balance 104,893,000 84,893,000

14.1.1.2 Provision for nostro accounts

As per instructions contained in the Circular Letter No. FEPD (FEMO)/01/2005-

677 dated 13 September 2005 issued by Foreign Exchange Policy Department of
Bangladesh Bank, following provision has been made against the un-reconciled debit
balance of nostro accounts:

Opening balance - -
Add: Adjustment during the year - -
Closing balance - -
 2016 2015
Taka Taka
14.1.2 Provision for taxation
Current tax
Opening balance 8,240,134,526 11,503,373,078
Add: Provision made for the year [Note 14.1.2.1] 2,149,728,516 3,223,066,022
Less: Adjustment made against Advance Tax/Adjustment made against final
assessment orders by the Deputy Commissioner of Taxes or the Appellate Authority - 6,486,304,574
Closing balance [Note 14.1.2.2] 10,389,863,042 8,240,134,526
14.1.2.1 Current tax - Provision for the year
Provision made for the current year on taxable income 2,149,728,516 3,223,066,022
Adjustment for the previous year - -
2,149,728,516 3,223,066,022
14.1.2.2 Assessment of income tax has been finalized with the tax authority for the
accounting years 1996, 1997, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008 and
2009. [Note 11.2.1]
Final assessment of income tax for accounting years 1998, 1999, 2000, 2010, 2011 and
2012 are pending with Appellate Authorities. Full tax provision has been made in the
accounts for the respective years based on the latest assessment orders made by the
Deputy Commissioner of Taxes or Appellate Authorities.
14.1.3 Accumulated provision for loans and advances and Off-balance sheet exposures
(A) Specific provision for bad and doubtful loans and advances
Opening balance 2,783,136,456 3,036,086,501
Less : Fully provided debt written-off - -
Add: Recoveries of amounts previously written-off 502,680 6,299,930
Add: Specific provision for the year 1,985,931,729 (259,249,975)
Less: Provision no more required for advances realized - -
Add: Net charge to profit and loss account - -
Provision held at the end of the year [Note 9.9(b)] 4,769,570,865 2,783,136,456
(B) General provision
General provision against unclassified loans and advances
Opening balance 1,435,371,000 1,165,569,800
General provision for the year 213,200,000 269,801,200
Provision held at the end of the year [Note 9.9(b)] 1,648,571,000 1,435,371,000
General provision against Off-balance sheet exposures
As per the instructions contained in BRPD Circular No. 8 dated 7 August 2007
and BRPD Circular No. 10 dated 18 September 2007, following provision has
been made against the Off-balance sheet exposures of the Bank:
Opening balance 550,149,549 472,799,305
Add: Provision made for the year 50,367,269 77,350,244
Provision held at the end of the year 600,516,818 550,149,549
2,249,087,818 1,985,520,549
Total (A) + (B) 7,018,658,683 4,768,657,005
(C) General provision against unclassified loans and advances
Main Operation 1,648,571,000 1,435,371,000
Off-Shore Banking Unit 77,499,755 59,183,628
1,726,070,755 1,494,554,628

ANNUAL REPORT 2016 411

 2016 2015
Taka Taka
14.1.4 Cumulative balance of interest suspense account

Opening balance 1,552,447,367 1,062,236,453

Add: Amount transferred to interest suspense account during the year 1,545,038,895 1,135,833,214
Less: Amount recovered from interest suspense account during the year 885,451,270 631,418,754
Less: Amount written-off/waived during the year 63,612,725 14,203,546
Balance at the end of the year 2,148,422,267 1,552,447,367

15. Subordinated debt

Subordinated debt - Taka 492,884,500

The Bank arranged a subordinated debt from FMO, the Netherlands of Taka 492,884,500 equivalent
to EURO 5 million for a term of nine years to strengthen the capital base of the Bank. Principal
amount of Taka 457,678,464 has been restructured in 2010 with the approval of Bangladesh Bank.
The principal amount is repayable in five (5) equal yearly installments, last installment of which is
payable on 15 December 2016. - 91,535,693

Subordinated debt - Taka 642,252,440

The Bank arranged a subordinated debt from FMO, the Netherlands totaling Taka 642,252,440
equivalent to EURO 6.6 million for a term of ten years to strengthen the capital base of the
Bank. Principal amount of Taka 642,252,440 has been restructured in 2010 with the approval of
Bangladesh Bank. The principal amount is repayable in five (5) equal yearly installments, last
installment of which is payable on 15 December 2018. 256,900,976 385,351,464

The interest rate for the Subordinated debt is fixed at 7%.

Subordinated debt - Taka 1,934,375,000

The Bank arranged a subordinated debt from FMO, the Netherlands for USD 25 million equivalent
to Taka 1,934,375,000 for a term of six years to strengthen the Tier-2 capital as well as total capital
of the Bank during 2013 with the approval of Bangladesh Bank. The principal amount is repayable
in eight (8) equal half-yearly installments with two years moratorium, last installment of which is
payable on 15 February 2020. 1,721,610,625 1,990,640,000

The interest rate for the subordinated debt is six (6) month LIBOR plus 5% margin.

Subordinated debt - Taka 1,934,375,000

The Bank arranged a subordinated debt from DEG, Germany for USD 25 million equivalent
to Taka 1,934,375,000 for a term of six years to strengthen the Tier-2 capital as well as total
capital of the Bank during June 2014 with the approval of Bangladesh Bank. The principal
amount is repayable in eight (8) equal half-yearly installments with two years moratorium, last
installment of which is payable on 15 February 2020. 1,721,610,625 1,934,375,000

The interest rate for the subordinated debt is six (6) month LIBOR plus 5% margin.

Total 3,700,122,226 4,401,902,157

As per BRPD Circular No. 13 dated 14 October 2009, BRPD Circular No. 35 dated 29 December
2010 and Letter No. BRPD(BIC)661/14B(P)/2010-340 dated 22 December 2010, FEPD
(external debts & grants section)/701/K-1/2013-463 dated 17 December 2013 and Letter No.
BRPD(BIC)661/148(P)/2013/2560 dated 30 December 2013 issued by Bangladesh Bank, the
above noted debt capital (Subordinated debt - 1, 2, 3, 4 and 5 is considered as a component of
supplementary capital (Tier 2 capital) of the Bank within the regulatory limits. [Note 16.6.5].
 2016 2015
Taka Taka
15.1 Residual maturity grouping of subordinated debt

Repayable
Within one month - -
Over one month but within three months 491,888,750 -
Over three months but within twelve months 620,339,238 418,718,984
Over one year but within five years 2,587,894,238 3,983,183,173
More than five years - -
3,700,122,226 4,401,902,157
16. Share capital

16.1 Authorized share capital

400,000,000 ordinary shares of Taka 10 each. 4,000,000,000 4,000,000,000

16.2 Issued, subscribed and fully paid up share capital

200,000,000 ordinary shares of Taka 10 each. 2,000,000,000 2,000,000,000

16.2.1 Raising of capital

The paid-up share capital of the Bank was raised in the following manner:

From the sponsor shareholders before IPO

By issuing of 1,800,000 ordinary shares of Taka 100 each 180,000,000 180,000,000

Through Initial Public Offering (IPO)

The Bank raised Taka 22,135,000 through initial public offering in the year
2001 against issuance of 221,350 ordinary shares of Taka 100 each 22,135,000 22,135,000

The premium of Taka 50 was also applied for 221,350 shares against face
value of Taka 100 each [Note 17]

Bonus shares
Bonus shares @3.94719 against 1 existing share of Taka 100 each for the year 2007 797,865,000 797,865,000
Bonus shares @0.50 against 1 existing share of Taka 100 each for the year 2008 500,000,000 500,000,000
Bonus shares @0.333 against 1 existing share of Taka 100 each for the year 2009 500,000,000 500,000,000
2,000,000,000 2,000,000,000
16.3 Particulars of fully paid up share capital as at 31 December are as follows

2016 2015
Categories Number of Percentage (%) Value Value
shares of holding (Taka) (Taka)
Local sponsors 122,634,240 61.32% 1,226,342,400 1,226,342,400
Foreign sponsors 51,348,900 25.67% 513,489,000 513,489,000
General Public shares 26,016,860 13.01% 260,168,600 260,168,600
Total 200,000,000 100.00% 2,000,000,000 2,000,000,000

ANNUAL REPORT 2016 413

16.4 Range-wise shareholdings as at 31 December 2016 are as follows

Percentage (%)
Number of Number of
Range of holding of shares of holding of
shareholders shares
shares
Less than 500 1,511 0.08% 158,734
500 to 5,000 2,153 1.38% 2,766,656
5,001 to 10,000 135 0.54% 1,082,458
10,001 to 20,000 65 0.48% 955,029
20,001 to 30,000 15 0.19% 373,060
30,001 to 40,000 12 0.20% 399,873
40,001 to 50,000 7 0.17% 332,766
50,001 to 100,000 20 0.72% 1,439,382
100,001 to 1,000,000 27 4.46% 8,916,836
Over 1,000,000 14 91.79% 183,575,206
Total 3,959 100.00% 200,000,000

16.5 Name of the Directors and their shareholdings in the year 2016

Position as on
Position as on
31 December
1 January 2016 Percentage
SL. 2016
Name of the Directors Status (number of (%) of
No (number of
shares Taka 10 shareholdings
shares Taka 10
each)
each)
1 Mr. Sayem Ahmed Chairman 4,947,170 4,947,170 2.47%
2 Mr. Abedur Rashid Khan Director 10,469,210 10,469,210 5.23%
3 Mr. Bernhard Frey * Director
(Nominee of M/s. Ecotrim - - -
Hong Kong Limited)
4 Mr. Md. Fakhrul Islam Director
(Elected from general 10,000 10,000 0.005%
public shareholders' group)
5 Mr. Md. Nazim Uddin Bhuiyan, Independent Director - - -
FCMA**
6 Mr. Mohd. Khorshed Alam** Independent Director - - -
7 Mr. Abul kashem Md. Shirin ** Ex-officio Director - - -
(Managing Director & CEO)

* M/s. Ecotrim Hong Kong Limited (sponsor shareholder) held 49,471,880 shares of Taka 10 each (24.74 %) as on 1
January 2016 and also as on 31 December 2016.

** Independent Director and Managing Director & CEO of the Bank need not to hold any qualification share.
 2016 2015
Taka Taka
16.6 Capital to risk-weighted asset ratio (CRAR)

As per Section 13 of the Bank Company Act, 1991 (Amended upto 2013) and
instructions contained in BRPD Circular No. 18 dated 21 December 2014, [Guidelines
on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for banks
in line with Basel III)], the risk based capital (eligible regulatory capital) of the
Bank as of 31 December 2016 stood at Taka 21,249,366,086 against the risk based
capital requirement of Taka 17,230,061,398. As a result, there was a capital surplus
of Taka 4,019,304,688 in risk based capital adequacy as on 31 December 2016.

As per Section 13(2) of the Bank Company Act, 1991 (Amended upto 2013)
and the instruction contained in BRPD Circular Letter No. 11 dated 14 August
2008, the paid-up share capital and statutory reserve should be at least
Taka 4,000,000,000 in which, the paid-up share capital should be minimum
Taka 2,000,000,000. Against that, the paid-up share capital and statutory
reserve of the Bank was Taka 10,134,390,476 (Paid-up share capital, Taka
2,000,000,000 and statutory reserve, Taka 8,134,390,476) as on 31 December 2016.

The details of capital to risk-weighted asset ratio (CRAR) are furnished below:

Total assets (excluding off-balance sheet assets) 276,844,361,224 244,057,570,324

Total off-balance sheet assets 60,051,681,755 55,014,954,855
Total Risk weighted assets [RWA] against [Note 16.6.1]
i. Credit Risk
On-balance sheet [Note 16.6.1.1] 127,731,256,392 124,607,753,496
Off-balance sheet [Note 16.6.1.2] 9,264,682,514 8,152,196,806
136,995,938,907 132,759,950,302
ii. Market Risk [Note 16.6.2] 2,364,907,868 1,682,183,868
iii. Operational Risk [Note 16.6.3] 22,804,436,975 20,106,471,055
A) Total Risk weighted assets (RWA) [i+ii+iii] 162,165,283,749 154,548,605,225

B) Minimum Capital Requirement (MCR) with Capital Conservation Buffer (CCB) 17,230,061,398 15,454,860,522
[10.625% for 2016 & 10% for 2015 of risk weighted assets]

C) Common Equity Tier 1 (CET1) capital

Paid -up share capital 2,000,000,000 2,000,000,000
Share premium 11,067,500 11,067,500
Statutory reserve 8,134,390,476 7,487,588,738
Dividend equalization account 1,566,827,195 1,366,827,195
Proposed dividend 600,000,000 800,000,000
Retained earnings (Including OBU) 4,437,704,628 4,121,893,415
16,749,989,799 15,787,376,848
Less : Deferred tax asset [Note 16.6.4] 1,812,436,929 1,057,591,853
14,937,552,870 14,729,784,995
D) Additional Tier-1 Capital
Non-cumulative irredeemable preference shares - -
Instruments issued by the banks that meet the qualifying criteria for AT1 - -
Others (if any item approved by Bangladesh Bank) - -
- -
Less: Regulatory Adjustments from AT-1 Capital - -
- -
E) Tier 1 Capital [C+D] 14,937,552,870 14,729,784,995

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F) Tier 2 Capital
General provision maintained against unclassified loans and off-balance sheet
exposures (including OBU) [Note 16.6.5] 2,326,587,573 1,625,774,805
Subordinated debt capital [Note 16.6.6] 3,700,122,226 4,401,902,157
Assets revaluation reserves [Note 16.6.7] 425,206,889 425,206,889
Revaluation reserves of HTM securities [Note 16.6.7] 49,965,473 49,965,473
6,501,882,161 6,502,849,324
Less: Revaluation Reserves for Fixed Assets, Securities @ 40% in 2016 and 190,068,945 95,034,472
20% in 2015
6,311,813,216 6,407,814,852
G) Total Eligible Regulatory Capital (Tier 1 and 2) [C+D+F] 21,249,366,086 21,137,599,847

Total capital surplus [G - B] 4,019,304,688 5,682,739,325

Capital to risk-weighted asset ratio (CRAR):

Common Equity Tier-1 to RWA (C/A)*100 9.21% 9.53%
Tier-1 Capital to RWA (E/A)*100 9.21% 9.53%
Tier-2 Capital to RWA (F/A)*100 3.89% 4.15%
Capital to risk-weighted asset ratio (CRAR) (G/A)*100 13.10% 13.68%

16.6.1 Calculation of risk weighted assets (RWA)

16.6.1.1 Credit Risk-On balance sheet assets

Outstanding Risk weighted assets

SL balance as of Risk weights
Particulars As of As of
No. 31-Dec-2016 (%)
31-Dec-2016 31-Dec-2015
Taka
Taka Taka
i. Cash 11,051,999,011 0% - -
ii. Claims on Bangladesh Government and
Bangladesh Bank 44,086,237,138 0% - -
iii. Claims on other Sovereigns & Central
Banks - 0% - -
iv. Claims on Bank for International
Settlements, International Monetary
Fund and European Central Bank - 0% - -
v. Claims on Multilateral Development
Banks (MDBs) - 0%-150% - -
vi. Claims on Public Sector Entities (other
than Government) in Bangladesh - 50%-125% - -
vii. Claims on Banks and NBFIs
Original maturity over 3 months 8,198,311,055 20%-100% 4,203,425,232 3,811,129,121
Original maturity less than 3 months 11,393,977,615 20% 2,278,795,523 4,733,782,882
viii. Claims on Corporate 101,555,360,466 20%-125% 62,119,594,054 53,378,482,302
ix. Claims on SME 18,351,818,315 20%-100% 17,528,459,268 19,356,185,264
x. Claims under Credit Risk Mitigation 14,379,802,984 20%-125% 7,087,100,392 6,919,324,219
xi. Claims categorized as retail portfolio and
small & medium enterprise (excluding
consumer loan) 1,045,845,753 75% 784,384,315 785,384,366
 2016 2015
Taka Taka

xii. Consumer loan 3,901,021,717 100% 3,901,021,717 2,771,721,182

xiii. Claims fully secured by residential property 1,147,169,685 50% 573,584,843 284,578,858
xiv. Claims fully secured by commercial real estate 2,162,369,730 100% 2,162,369,730 1,956,770,121
xv. Past due claims (net off specific provision) 9,331,212,186 50%-150% 11,678,695,599 12,909,158,839
xvi. Capital Market Exposures 240,996,722 125% 301,245,903 510,462,311
xvii. Unlisted equity investments and
regulatory capital instruments issued by
other banks (other than those deducted
from capital) held in the banking book 475,960,000 125% 594,950,000 992,125,000
xviii. Investments in venture capital - 150% - -
xix. Investments in premises, plant and
equipment and all other fixed assets 4,871,866,976 100% 4,871,866,976 4,519,293,774
xx. Claims on all fixed assets under operating lease - 100% - -
xxi. All other assets 21,124,588,522 0%-100% 9,645,762,842 11,679,355,256
Total 253,318,537,874 127,731,256,392 124,607,753,496

16.6.1.2 Credit Risk-off- balance sheet assets

Notional Amount Risk weighted assets

Credit
[Netting off Margin Risk As of As of
SL conversion Credit
Particulars and add-on factor weights 31 December 31 December
No. factor equivalent
for exchange rate (%) 2016 2015
(CCF)
fluctuation] (Taka) (Taka) (Taka)
i. Direct Credit Substitutes 3,051,754,584 100% 3,051,754,584
ii. Lending of Securities or
posting of securities as
collateral - 100% -
iii. Other commitments with
certain drawdown - 100% -
iv. Performance related
contingencies 11,844,211,122 50% 5,922,105,561
v. Commitments with original 20%-125% 9,264,682,514 8,152,196,806
maturity of over one year - 50% -
vi. Trade related contingencies 14,798,983,643 20% 2,959,796,729
vii. Commitments with original
maturity of one year or less - 20% -
viii. Other commitments that
can be unconditionally
cancelled by any time 23,383,706,767 0% -
ix. Foreign exchange contract - -
Total 53,078,656,116 11,933,656,873 9,264,682,514 8,152,196,806

16.6.2 Risk weighted assets against Market Risk

Risk weighted assets

SL Capital charge As of As of
Particulars
No. (Taka) 31 Dec 2016 31 Dec 2015
(Taka) (Taka)
i. Capital charge for Interest rate risk - - -
ii. Capital charge for Equities 2,256,687 22,566,868 22,566,868
iii. Capital charge for Foreign Exchange position 234,234,100 2,342,341,000 1,659,617,000
iv. Capital charge for Commodities - - -
Total 236,490,787 2,364,907,868 1,682,183,868

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16.6.3 Risk weighted assets against Operational Risk

Gross income Amount (Taka) Amount (Taka)

Year 1 [2015] 17,161,241,740 -
Year 2 [2014] 14,930,994,934 14,930,994,934
Year 3 [2013] 13,516,637,277 13,516,637,277
Year 4 [2012] - 11,765,309,899
Total gross income 45,608,873,951 40,212,942,110
Average gross income 15,202,957,984 13,404,314,037
Capital charge @ 15% of average gross income 2,280,443,698 2,010,647,106
Risk weighted assets 22,804,436,975 20,106,471,055

16.6.4 In terms of instruction contained in BRPD Circular No. 11 dated 12 December 2011, deferred tax
asset for Taka 1,907,828,346 on specific provision for loans and advances has been created. As per
BRPD Letter No. BRPD(BFIS)661/14B(P)/2015-18014 dated 24 December 2015, 5% of deferred tax
asset on specific provision for loans and advances has been recognized in Common Equity Tier 1
(CET1) Capital. Excess over 5% of Deferred Tax Asset created on specific provision amounting to
Taka 1,812,436,929 [Taka 1,907,828,346 - Taka 95,391,417] has been deducted.

16.6.5 In compliance with the BRPD Circular Letter No. 5 dated 31 May 2016, General Provision
maintained against unclassified loans and off-balance sheet exposures including OBUs
amounting to Taka 2,326,587,573 has been fully considered as Tier 2 capital as at 31 December
2016. Until 31 December 2015, such general provision was considered as eligible Tier 2 Capital
maximum upto 1.25% of credit risk weighted assets on the Balance Sheet date.

16.6.6 As per Bangladesh Banks instructions contained in BRPD Circular No. 18 dated 21 December
2014, [Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for
banks in line with Basel III)], outstanding amount of Subordinated Debt is considered as a
component of Tier 2 capital.

16.6.7 As per Bangladesh Banks instruction, until 31 December 2014, 50% revaluation reserves
for Fixed Assets and HTM securities are eligible for Tier 2 capital. As per Basel III guideline,
Revaluation Reserve (RR) for Fixed Assets and HTM securities based on the position
as of 31 December 2014 should be deducted @ 20% on yearly basis from 2015 to 2019.

In terms of Bangladesh Banks instruction, 50% of revaluation reserves for fixed asset ( Taka
425,206,889) and HTM securities ( Taka 49,965,473) as of 31 December 2014 amounting to total
Taka 475,172,362 has been considered as base for component of Tier 2 capital. Against that,
Taka 190,068,945 (i.e. 40% of Taka 475,172,362) has been deducted and rest amount of Taka
285,103,417 has been shown as Tier 2 capital as at 31 December 2016 under Basel III guideline.

17. Share premium

Taka 5 per share on 2,213,500 ordinary shares of Taka 10 each at the time of issuing shares
through initial public offering in the year 2001 * 11,067,500 11,067,500

* In compliance with Bangladesh Securities and Exchange Commission (BSEC) Order

No. SEC /CMRRCD/2009-193/109 dated 15 September 2011 and with the approval of
shareholders in the 3rd Extra-ordinary General Meeting (EGM) held on 13 November 2011,
the denomination of shares (face value) has been changed from Taka 100 each to Taka
10 each with effect from 4 December 2011 and accordingly the number of shares and
premium have been restated.
 2016 2015
Taka Taka
18. Statutory reserve

As per Section 24 (1) of the Bank Companies Act, 1991, an amount equivalent to 20%
of profit before taxes for the year has been transferred to the statutory reserve fund
as under.:

Balance at 1 January 7,487,588,738 6,234,120,766

Add: Transferred from profit during the year 666,801,738 1,253,467,972
Closing balance 8,154,390,476 7,487,588,738

19. Other reserve

Revaluation reserve of HFT securities [Note 19.1] - -

- -
19.1 Other reserve

In terms of First Schedule (Section 38) of the Bank Companies Act, 1991, and
instructions contained in BRPD Circular No. 5 dated 26 May 2008 and Letter No. DOS
(SR)1153/120-A/2011-746 dated 29 December 2011 the revaluation reserve for HFT
securities has been made as under:

Balance at 1 January - -
Add: Reserve made for the year - -
Less: Adjustment during the year - -
Closing balance - -

20. Dividend equalization account

As per BRPD Circular Letter No. 18 dated 20 October 2002 issued by Bangladesh Bank,
Dividend Equalization Account has been created by transferring the amount from
the profit that is equal to the cash dividend paid in excess of 20%.

Balance at 1 January 1,366,827,195 966,827,195

Add: Transferred from profit for the year 200,000,000 400,000,000
Closing balance 1,566,827,195 1,366,827,195

21. Assets revaluation reserve

In terms of Bangladesh Accounting Standard (BAS) 16, Property, Plant and

Equipment, and instructions contained in BRPD Circular No. 10 dated 25 November
2002 issued by Bangladesh Bank, all the immovable properties of the Bank has been
revalued by a professionally qualified valuation firm of the country. The rationale of
the valuation has also been certified by the Banks external auditors, M/s. A. Qasem &
Co., Chartered Accountants. Accordingly, revaluation surplus of Taka 850,413,777 has
been included in equity.

Balance at 1 January 850,413,777 850,413,777

Add : Addition during the year (net) - -
Closing balance 850,413,777 850,413,777

22. Revaluation reserve of HTM securities [Note 2.7.3(b)]

Balance at 1 January 116,544,853 99,930,945

Add: Reserve made for the year (56,789,941) 16,613,908
Closing balance 59,754,912 116,544,853

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23. Calculation of Earnings Per Share (EPS)

The earnings per share of the Bank has been calculated in accordance with the
Bangladesh Accounting Standard (BAS) 33, Earnings Per Share under Basic Earning
Per Share method as follows:

Basic earnings (net profit after tax) [numerator] 1,762,612,951 3,020,282,208

Number of ordinary shares outstanding (denominator) 200,000,000 200,000,000
Earnings Per Share (Taka) 8.81 15.10

24. Contingent liabilities

Main Operation [Note 24.1] 60,048,866,627 55,014,954,855

Off-shore Banking Unit 2,815,128 -
60,051,681,755 55,014,954,855
24.1 Contingent liabilities - Main Operation

a) Acceptances and endorsements - -

b) Letters of guarantee
Local 5,018,034,143 3,663,282,326
Foreign 185,428,572 207,652,260
5,203,462,715 3,870,934,586
c) Irrevocable letters of credit
Local
Cash 158,110,678 819,015,833
Usance 197,374,317 53,276,575
Back to back 2,994,194,020 3,320,263,794
3,349,679,015 4,192,556,202
Foreign
Cash 5,924,236,470 4,639,037,920
Usance 10,172,958,232 5,840,900,252
Back to back 927,117,885 1,310,433,397
17,024,312,587 11,790,371,569
20,373,991,602 15,982,927,771
d) Bills for collection
Inward 29,178,231,849 31,223,459,998
Outward 114,955 19,630
29,178,346,804 31,223,479,628
e) Other contingent liabilities
Travellers cheques - -
Export Development Fund 3,330,445,506 2,115,817,870
Bangladesh Shanchaya Patra 1,962,620,000 1,821,795,000
5,293,065,506 3,937,612,870
Total (a+b+c+d+e) 60,048,866,627 55,014,954,855
 2016 2015
Taka Taka
24.2 Letters of guarantee

Money for which the Bank is contingently liable in respect of guarantee issued favoring:

Directors - -
Government 112,674,549 112,674,549
Bank and other financial institutions 21,231,637 21,231,637
Others 5,069,556,529 3,737,028,400
5,203,462,715 3,870,934,586
24.3 Irrevocable letters of credit and other commitments

Documentary credit and short-term trade-related transactions 20,373,991,602 15,982,927,771

20,373,991,602 15,982,927,771
Forward Assets purchased and forward deposits placed - -
- -
Undrawn formal standby facilities, credit facilities and other commitments
Less than one year - -
One year and above - -
- -
Spot and forward foreign exchange rate contract - -
- -
Other exchange contract - -
- -
20,373,991,602 15,982,927,771
25. Particulars of profit and loss account

Income Notes
Interest, discount and other similar income 26 15,645,870,699 16,028,164,208
Dividend income 28 5,712,228 425
Fees, commission and brokerage 29.1 729,408,589 761,721,636
Gains less losses arising from dealing securities - -
Gains less losses arising from investment securities 28 2,065,919,677 2,059,384,970
Gains less losses arising from dealing in foreign currencies 29.2 815,836,377 741,115,115
Income from non-banking assets - -
Other operating income 30 2,350,595,420 2,258,577,637
Profit less losses on interest rate changes - -
21,613,342,990 21,848,963,991
Expenses
Interest, fee and commission 27 5,682,321,595 6,240,169,618
Charges on loan losses 41 357,439,118 49,701,103
Directors fees 39 252,000 215,000
Administrative expenses 31 5,576,405,210 5,415,032,523
Other operating expenses 43 3,401,573,677 2,698,114,983
Depreciation on banking assets 42 1,073,527,577 1,011,789,529
16,091,519,177 15,415,022,756
Profit before provision 5,521,823,813 6,433,941,235

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26. Interest income

Interest income - Main Operation [Note 26.1] 15,345,915,147 15,852,976,151

Interest income - Off-Shore Banking Unit 299,955,552 175,188,057
15,645,870,699 16,028,164,208
26.1 Interest income - Main Operation

Interest on loans and advances

House building loan 86,504,359 64,221,636
Transport loan 163,960,050 157,845,401
Term loan - industrial 3,658,855,192 4,031,133,786
Term loan - others 496,349,257 540,030,493
Secured overdraft 1,905,790,182 1,427,288,822
Cash credit 3,642,899,160 3,847,240,065
Payment against document - cash 3,121,800 12,267,946
Payment against document EDF- others 279,454,304 249,137,586
Loan against trust receipts 241,335,250 466,010,740
Export cash credit 98,477,104 75,631,057
Loan against accepted bills 314,682,501 372,795,435
Staff loan 30,488,065 30,619,736
SME and consumer financing 3,235,241,567 3,372,801,532
14,157,158,791 14,647,024,235
Interest on balance with other banks and financial institutions
Fixed deposits 702,940,347 669,488,333
Special notice deposits 5,301,579 2,850,748
Nostro accounts 5,462,993 1,128,420
Money at call on short notice 475,051,437 532,484,415
1,188,756,356 1,205,951,916
15,345,915,147 15,852,976,151
27. Interest paid on deposits and borrowings etc.

Main Operation [Note 27.1] 5,467,727,487 6,099,771,043

Off-shore Banking Unit 214,594,108 140,398,575
5,682,321,595 6,240,169,618

27.1 Interest paid on deposits- Main Operation [Note 27.2] 5,024,819,867 5,704,421,273
Interest paid on borrowings- Main Operation [Note 27.3] 442,907,620 395,349,770
5,467,727,487 6,099,771,043
27.2 Interest paid on deposits- Main Operation

Savings deposits 1,799,306,607 1,912,127,486

Special notice deposits 585,665,410 592,890,342
Fixed deposits 2,637,382,742 3,158,389,010
Non-resident foreign currency deposits 18,949 48,503
Resident foreign currency deposits 252,281 54,266
Monthly term deposits 2,193,878 40,911,666
5,024,819,867 5,704,421,273
 2016 2015
Taka Taka
27.3 Interest paid on borrowings- Main Operation

Interest on call loan borrowing 9,294,126 15,574,413

Interest on credit lines 2,635,967 3,096,068
Interest paid on subordinated debt 257,835,647 278,320,719
Interest on borrowing under REPO and Re-financing facilities with Bangladesh Bank 173,141,880 98,358,570
Interest on borrowing under REPO with other banks - -
442,907,620 395,349,770
28. Investment income

Dividend on shares 5,712,228 425

Interest on treasury bills, bonds and debentures

Interest on treasury bills and bonds (net) 1,996,384,133 1,937,852,281
Interest on reverse REPO with other banks - 16,015,952
Interest on subordinated bonds 69,535,544 105,516,737
2,065,919,677 2,059,384,970
Gain on sale of shares - -
2,071,631,905 2,059,385,395
29. Commission, exchange and brokerage

Commission [Note 29.1] 729,408,589 761,721,636

Exchange earnings (net) [Note 29.2] 815,836,377 741,115,115
1,545,244,966 1,502,836,751
29.1 Commission

Commission on Remittances-Local 13,333,309 12,068,102

Commission on Remittances-Foreign 48,354,545 43,170,450
Commission on Letter of Credit-Import 106,357,243 112,883,903
Commission on Letter of Credit-Export 478,695,526 514,975,749
Commission on Export Bills 13,647,245 16,428,650
Commission on Letter of Guarantee 53,019,349 49,403,626
Commission on Sale of Government Saving Instruments 15,366,338 11,907,098
Commission on Banker to the issue & underwriting - 205,051
Other Commission 635,034 679,007
729,408,589 761,721,636
29.2 Exchange earnings (net)

From commercial bills 422,836,939 655,065,077

From dealing operations 392,999,438 86,050,038
815,836,377 741,115,115
30. Other operating income

Main Operation [Note 30.1] 2,349,739,222 2,257,254,549

Off-shore Banking Unit 856,198 1,323,088
2,350,595,420 2,258,577,637

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30.1 Other operating income - Main Operation

Charges for service 45,413,882 25,115,945

Income from IT service 1,512,149,103 1,425,111,822
Recoveries from client 115,769,980 109,342,613
Service charges on deposit accounts 381,298,254 381,694,320
Income from Export-Import 127,716,014 146,380,842
Document handling charges-Export 720,816 267,135
Locker Rent 11,655,333 9,534,193
Gain on sale of fixed assets [Note 30.2] 1,233,177 -
Other earning 153,782,663 159,807,679
2,349,739,222 2,257,254,549

30.2 Gain on sale of fixed assets (net)

Some impaired items of fixed assets were sold during the year as under:
Gain on sale of fixed assets 1,233,177 -
Less: Loss on sale of fixed assets - -
Gain on sale of fixed assets (net) [Note 30.3] 1,233,177 -

30.3 Calculation of income from sale of fixed assets

Sale proceeds [A] 9,841,723 -

Cost price of the sold items 83,607,486 -

Less: Accumulated depreciation 74,998,940 -
Written down value [B] 8,608,546 -
Net gain [A - B] 1,233,177 -

31. Administrative expenses

Notes
Salary and allowances 32 3,038,516,077 2,873,797,161
Rent, taxes, insurance, electricity, etc. 34 1,385,333,829 1,142,193,758
Legal expenses 35 3,506,506 4,556,127
Postage, stamp, telecommunications, etc. 36 272,857,651 237,788,107
Stationery, printings, advertisements etc. 37 365,019,157 631,694,640
Managing Director & CEOs salary and allowances 38 10,646,000 10,756,000
Auditors fees 40 701,500 540,500
Repair and maintenance 42 499,824,490 513,706,230
5,576,405,210 5,415,032,523
32. Salary and allowances
Main Operation [Note 32.1] 3,033,532,963 2,868,966,866
Off-shore Banking Unit 4,983,114 4,830,295
3,038,516,077 2,873,797,161
 2016 2015
Taka Taka
32.1 Salary and allowances

Basic salary 1,336,109,417 1,250,289,973

House rent allowance 668,221,266 625,199,321
Conveyance allowance 147,424,615 145,699,724
Other allowances 34,232,971 4,749,875
Banks contribution to provident fund 120,749,608 113,178,195
Medical expenses 140,194,898 127,370,989
Bonus 339,300,188 312,478,789
Gratuity 234,800,000 280,000,000
Superannuation 12,500,000 10,000,000
3,033,532,963 2,868,966,866
33. Number of employees and remuneration thereof

As per the Schedule XI of the Companies Act, 1994, the number of employees
(including contractual employees) engaged for the whole year or part thereof who
received a total remuneration of Taka 36,000 per annum or Taka 3,000 per month
were 6,127 as at 31 December 2016 compared to 5,201 as at 31 December 2015.
34. Rent, taxes, insurance, electricity, etc.
Rent
Office premises 730,681,278 591,957,497
ATM Booths and other installations 111,216,105 88,226,038
841,897,383 680,183,535
Rates and taxes
Rates 1,437,710 1,258,663
Taxes 7,467,847 6,113,049
8,905,557 7,371,712
Insurance
Cash 32,463,595 46,120,939
Vehicles 3,207,368 3,272,825
Deposits 121,825,858 105,924,683
Other properties 11,889,559 10,459,009
169,386,380 165,777,456
Electricity and sanitation
Light and power 356,247,366 281,114,415
Water and sewerage 8,897,143 7,746,640
365,144,509 288,861,055
1,385,333,829 1,142,193,758
35. Legal expenses
Legal expenses 3,506,506 4,556,127
3,506,506 4,556,127
36. Postage, stamp, telecommunications, etc.
Main Operation [Note 36.1] 272,852,747 237,745,444
Off-shore Banking Unit 4,904 42,663
272,857,651 237,788,107
36.1 Postage, stamp, telecommunications, etc.-Main Operation

Postage 25,067,726 25,838,954

Telephone 14,250,944 14,786,337
Radio link 221,994,811 182,823,544
Swift, Reuters, internet, etc. 11,539,266 14,296,609
272,852,747 237,745,444

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37. Stationery, printings, advertisements etc.

Printing and stationery:

Printed stationery 50,611,198 38,318,769

Security stationery 23,967,164 27,398,187
Petty stationery 85,133,598 65,662,455
159,711,960 131,379,411
Publicity and advertisement 205,307,197 500,315,229
365,019,157 631,694,640
38. Managing Director & CEOs salary and allowances

Basic salary 6,860,000 6,960,000

House rent allowance 380,000 360,000
House maintenance 260,000 240,000
Banks contribution to provident fund 686,000 696,000
Leave fare assistance 360,000 360,000
Other allowances 440,000 480,000
Bonus 1,660,000 1,660,000
10,646,000 10,756,000

39. Directors fees

Honorarium for attending meeting 250,000 215,000

Incidental expenses for attending meeting 2,000 -
252,000 215,000
40. Auditors fees

Statutory annual audit fees 402,500 402,500

Special audit fees 299,000 138,000
Fees for various certification - -
701,500 540,500
41. Charges on loan losses

Loan written- off 357,439,118 49,701,103

Interest waived - -
357,439,118 49,701,103
42. Depreciation and repair of banks assets

Depreciation on fixed assets including building, furniture and fixtures

Main Operation [Note 42.1] 1,073,517,848 1,011,770,041
Off-shore Banking Unit 9,729 19,488
1,073,527,577 1,011,789,529
Repair and maintenance
Main Operation [Note 42.2] 499,518,789 513,369,970
Off-shore Banking Unit 305,701 336,260
499,824,490 513,706,230
1,573,352,067 1,525,495,759
 2016 2015
Taka Taka
42.1 Depreciation on fixed assets including land, building, furniture and fixtures

Land - -
Building (including lease hold property) 9,988,601 9,988,597
Interior decoration 88,658,734 86,684,578
Furniture and fixtures 25,215,931 23,295,727
Other machinery and equipment 177,814,475 153,335,824
Computer equipment and software 369,255,448 392,160,534
Motor vehicles 38,197,581 47,849,582
ATM Booth 90,599,306 74,647,790
ATM/Fast Track (Machinery) 273,769,644 223,789,282
Books 18,128 18,127
1,073,517,848 1,011,770,041
42.2 Repair and maintenance

Premises 181,875,987 148,272,155

Vehicles 44,882,053 35,405,322
Computers 272,760,749 329,692,493
499,518,789 513,369,970

43. Other expenses

Main Operation [Note 43.1] 3,400,983,563 2,697,451,652

Off-shore Banking Unit 590,114 663,331
3,401,573,677 2,698,114,983
43.1 Other expenses- Main Operation

Entertainment expenses 42,230,591 34,825,245

Fuel and lubricant 47,917,432 47,566,393
Subscription and donations 200,189,278 120,941,191
Annual general meeting 1,127,325 1,250,240
Casual wages & allowances 730,318,469 614,576,722
Travelling expenses and allowances 273,321,832 264,874,515
Petty conveyance 25,341,550 29,613,780
Credit rating fees 460,000 345,000
News papers, periodicals, learning materials etc. 1,441,338 1,326,012
Crockeries 642,269 664,304
Debit and Credit Card expenses 390,367,653 279,461,049
ATM expenses 20,691,397 20,567,022
Tele Banking Expenses 1,270,122 37,086,358
Cash carrying charges 33,299,091 29,575,151
ATM cash replenishment charges 449,000,000 291,006,600
Recruitment , training, seminar and workshop 16,189,310 12,886,965
Service charge on nostro account and others 66,198,059 62,826,403
Consultancy fees 5,971,765 5,382,794
Business promotion and development 871,973,603 717,628,032
Laundry and cleaning 415,054 413,550
Other expenses for Mobile Banking Services 161,969,727 76,992,178
Other expenses for Agent Banking Services 56,906,523 1,677,268
Fixed Assets written-off - 36,027,099
Miscellaneous 3,741,175 9,937,781
3,400,983,563 2,697,451,652

ANNUAL REPORT 2016 427

 2016 2015
Taka Taka
44. Receipts from other operating activities

Other operating income [Note 30] 2,349,739,222 2,257,254,549

Less: Income from sale of fixed assets (net) 1,233,177 -
2,348,506,045 2,257,254,549
Exchange earnings (net) [Note 29.2] 815,836,377 741,115,115
3,164,342,422 2,998,369,664
45. Payments for other operating activities

Expenses for the year 4,284,123,687 3,989,920,986

Add: Opening accrued expenses 246,167,455 179,535,009
Add: Closing advance expenses 641,272,498 489,739,629
Less: Closing accrued expenses 181,069,147 246,167,455
Less: Opening advance expenses 489,739,629 539,741,737
4,500,754,864 3,873,286,432

46. Increase/(decrease) of other assets

Closing other assets

Security deposits 13,018,436 11,907,787

Suspense account (8,800,498) 1,915,683
Branch adjustment (net) 5,639,176 5,856,274
Encashment of Sanchaya Patra (awaiting realization) 331,338,472 185,402,332
Sundry debtors 82,396,350 72,800,461
Cash remittance 168,827,393 162,728,877
Others 860,571,157 599,873,345
1,452,990,486 1,040,484,759
Opening other assets

Security deposits 11,907,787 7,654,009

Suspense account 1,915,683 10,237,479
Branch adjustment (net) 5,856,274 4,939,911
Encashment of Sanchaya Patra (awaiting realization) 185,402,332 62,700,463
Sundry debtors 72,800,461 66,314,565
Cash remittance 162,728,877 138,815,354
Others 599,873,345 605,160,569
1,040,484,759 895,822,350
412,505,727 144,662,409
47. Increase/(decrease) of other liabilities

Closing other liabilities

Cumulative balance of interest suspense account 2,148,422,267 1,552,447,367

Revaluation reserve for HTM securities 59,754,912 116,544,853
Revaluation reserve for HFT securities - -
Others 244,052,519 254,083,990
2,452,229,698 1,923,076,210
 2016 2015
Taka Taka
Opening other liabilities

Cumulative balance of interest suspense account 1,552,447,367 1,062,236,453

Revaluation reserve for HTM securities 116,544,853 99,930,945
Revaluation reserve for HFT securities - -
Others 254,083,990 119,147,346
1,923,076,210 1,281,314,744
529,153,488 641,761,466
48. Cash and cash-equivalents

Main Operation [Note 48.1] 49,486,466,962 54,797,722,602

Off-shore Banking Unit 2,924,658,763 2,078,371,622
52,411,125,725 56,876,094,224
48.1 Cash and cash-equivalents-Main Operation

Cash in hand (including foreign currencies) 11,051,999,011 8,296,998,632

Balance with Bangladesh Bank and its agent bank (including foreign currencies) 17,660,677,577 14,555,926,865
Balance with other banks and financial institutions 20,652,231,874 26,667,404,705
Prize bonds 5,558,500 7,392,400
Money at call on short notice 116,000,000 5,270,000,000
49,486,466,962 54,797,722,602

49. Disclosure on audit committee of the Board

The Audit Committee of the Board was first duly constituted by the Board of Directors of the Bank in accordance with the
BRPD Circular Number 12 dated December 23, 2002 of Bangladesh Bank. Subsequently, the Committee was reconstituted
at several times due to change of Members of the Committee and to comply with the rules and regulations of Bangladesh
Bank and Bangladesh Securities and Exchange Commission. Accordingly, last 24 December 2014, the Audit Committee was
reconstituted in 148th meeting of the Board of Directors in compliance with the BRPD Circular No. 11 dated 27 October 2013
as under :

Sl. Status with

Name Status with the Bank Educational qualification
No. the committee

i) Mr. Md. Nazim Uddin Bhuiyan, FCMA Independent Director Chairman M.Com (Accounting), FCMA

Director from the General

ii) Mr. Md. Fakhrul Islam Member B. Sc. Engineer, Civil
Public Shareholders' Group

iii) Mr. Mohd. Khorshed Alam Independent Director Member B. Com

ANNUAL REPORT 2016 429

The Audit Committee of the Board conducted fifteen (15) meetings in 2016 , among others, the following salient issues were
discussed:

a) The Committee reviewed the inspection reports of different branches of the Bank conducted and submitted by the
Banks Internal Control & Compliance Division and gave necessary instructions to the management for proper and
prompt rectification / solution of the irregularities / objections stated therein.

b) The Committee reviewed the annual financial statements for the year 2015 including the annual report and gave
necessary instructions.

c) The Committee reviewed the compliance report of the Management Letter / Report for the year 2015 submitted by
the external auditors of the Bank.

d) The Committee reviewed the financial statements for the first quarter (Q1) ended on 31 March 2016, half yearly (Q2)
ended on 30 June 2016 and the third quarter (Q3) ended on 30 September 2016 and gave necessary advices.

e) The Committee approved the internal Control and Compliance Health Score as evaluated/prepared by IC & CD for
eventual preparation of Annual Integrated Health Report of Dutch-Bangla Bank Limited for the year 2015.

f) The Committee reviewed the performance of Internal Control & Compliance Division (IC & CD) for the year 2015.

g) The Committee reviewed & approved the audit and inspection plan of IC & CD for the year 2016.
50. Disclosures on related party / (ies)

50.1 Name of the Directors and the entities in which they have interest as at 31 December 2016

Sl. Name of the Directors Status with Name of the firms/ companies Percentage (%) of Remarks
No. the Bank in which interested as proprietor, partner, holding / interest
director, managing agent, guarantor, employee, in the concern
etc.

i) Mr. Sayem Ahmed Chairman Director of

i) Kader Compact Spinning Limited and 45%

ii) AA Yarn Mills Limited 4.23%

Deputy Managing Director of

i) Kader Synthetic Fibres Limited -

ii) MSA Spinning Limited 1.41%

iii) AA Synthetic Fibres Limited -

iv) SR Synthetic Fibres Limited and -

v) AA Power Generation Co. Limited -

ii) Mr. Abedur Rashid Khan Director i) Avanti International

- Proprietor 100%

ii) Nextgen Trading Limited

- Chairman 16.67%

iii) Mr. Bernhard Frey Director Ecotrim Hong Kong Limited Nominee of
- Managing Director Ecotrim Hong
Kong Limited

iv) Mr. Md. Fakhrul Islam Director i) M/S. Dev Con.

-Proprietor 100%

ii) ADEPT Limited

-Managing Director 50%

v) Mr. Md. Nazim Uddin Independent Professor -

Bhuiyan, FCMA Director Department of Accounting &
Information Systems,
University of Dhaka, Dhaka
vi) Mr. Mohd. Khorshed Alam Independent Director of
Director
Bangladesh Textile Mills Association, Dhaka -

Managing Director of

i) Duptara Spinning Mills Ltd. 23%

ii) Intimate International Ltd. 40%

vii) Mr. Abul kashem Md. Shirin Ex.-officio Dutch-Bangla Bank Limited -

Director - Managing Director & CEO

ANNUAL REPORT 2016 431

50.2 Significant contracts in which the Bank, its subsidiary or any fellow subsidiary company was a party and Nil
wherein the Directors have interest subsisted at any time during the year or at the end of the year

50.3 Shares issued to Directors and Executives to acquire shares at Nil consideration or restricted shares plan Nil
exercisable at discount

50.4 Nature, type and elements of transactions with the related party Not applicable

50.5 Lending policies in respect of related party

a) Amount of transactions regarding loans and advances, deposits, guarantees and commitment Nil

b) Amount of transactions regarding principal items of deposits, expenses and commission Nil

c) Amount of provision against loans and advances given to related party Not applicable

d) Amount of guarantees and commitments arising out of the statement of affairs Nil

50.6 Business other than the banking business with the related concerns of the Directors as per Section Nil
18(2) of the Bank Companies Act, 1991

50.7 Investments in securities of the Directors and their related concerns Nil

__________________ _________________ ____________________ __________________________

Chairman Director Director Managing Director & CEO

Dhaka, 22 February 2017
 Annexure - A

Schedule of fixed assets (including land, building, furniture and fixtures)

as at 31 December 2016
(Main Operation and Off-shore Banking Unit)

Other ATM/Fast
Computer
Interior Furniture machinery Motor Track
Land Building equipment ATM Booth Books Total
Particulars decoration and fixtures and vehicles Deposit
and software
equipment Machine
Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka
Cost / Revaluation

At 1 January 2016 105,550,689 191,939,491 834,792,761 286,839,559 1,321,069,745 2,961,981,346 390,860,145 819,303,882 2,101,733,680 194,591 9,014,265,889
Revaluation surplus 642,809,311 207,604,466 - - - - - - - - 850,413,777
Cost with revaluation surplus at 1 January 2016 748,360,000 399,543,957 834,792,761 286,839,559 1,321,069,745 2,961,981,346 390,860,145 819,303,882 2,101,733,680 194,591 9,864,679,666
Addition during the year - - 111,409,382 31,057,296 263,993,183 378,412,718 41,068,351 160,017,460 448,740,000 - 1,434,698,390
Revaluation surplus during the year - - - - - - - - - - -
Disposal / adjustments - - - 2,684,826 22,164,536 26,198,153 32,559,971 - - - 83,607,486
At 31 December 2016 748,360,000 399,543,957 946,202,143 315,212,029 1,562,898,392 3,314,195,911 399,368,525 979,321,342 2,550,473,680 194,591 11,215,770,570

Depreciation

At 1 January 2016 - 66,169,204 555,457,027 153,855,827 696,495,386 2,088,457,580 302,740,614 348,907,861 1,133,192,460 98,917 5,345,374,876
Charged for the year - 9,988,601 88,658,734 25,215,931 177,814,475 369,265,177 38,197,581 90,599,306 273,769,644 18,128 1,073,527,577
Disposal / adjustments - - - 2,528,766 19,517,987 24,999,942 27,952,245 - - - 74,998,940
At 31 December 2016 - 76,157,805 644,115,761 176,542,992 854,791,874 2,432,722,815 312,985,950 439,507,167 1,406,962,104 117,045 6,343,903,513

Written down value

At 31 December 2016 748,360,000 323,386,152 302,086,382 138,669,037 708,106,518 881,473,096 86,382,575 539,814,175 1,143,511,576 77,546 4,871,867,057

At 31 December 2015 748,360,000 333,374,753 279,335,734 132,983,732 624,574,359 873,523,766 88,119,531 470,396,021 968,541,220 95,674 4,519,304,790

ANNUAL REPORT 2016

433
 Annexure - B

Business segment results of the Bank for the year ended 31 December 2016
In million Taka

Off-
Corporate Retail Financial SME shore
Particulars Treasury Total
Banking Banking Inclusion Banking Banking
Unit

Interest income 7,817.8 3,503.5 229.9 2,605.9 3,254.7 300.0 17,711.8

Interest paid on deposits and borrowings 1,796.7 2,621.5 5.8 600.8 442.9 214.6 5,682.3

Net interest income 6,021.1 882.0 224.1 2,005.1 2,811.8 85.4 12,029.5

Transfer of interest between business

(3,562.5) 7,482.7 - (1,149.3) (2,770.8) - -
segments

Net interest income(NII) after transfer

2,458.6 8,364.7 224.1 855.8 41.0 85.4 12,029.5
of interest between business segments

Non-interest income (fees, commission,

1,784.9 1,006.7 55.9 595.0 458.0 0.9 3,901.4
exchange & other operating income)

Total operating income 4,243.5 9,371.6 280.0 1,450.8 499.0 86.2 15,931.1

Operating expenses 1,210.2 7,790.0 514.8 421.5 466.8 5.9 10,409.2

Profit before provision 3,033.3 1,581.6 (234.8) 1,029.3 32.2 80.3 5,521.9

Provision for loans and off-balance sheet

1,623.0 105.5 - 541.0 - 18.3 2,287.8
exposures (specific and general)

Profit before taxes 1,410.3 1,476.1 (234.8) 488.3 32.2 62.0 3,234.0

Total provision for taxation (current and

614.9 643.6 - 212.9 - - 1,471.4
deferred)

Net profit after taxation 795.4 832.5 (234.8) 275.4 32.2 62.0 1,762.6

Total Average Assets 153,471.8 4,435.4 3,636.3 37,139.3 52,419.7 9,348.5 260,451.0

Total Average Liabilities 67,792.7 120,036.1 3,738.9 23,684.6 18,681.2 9,310.2 243,243.7
 Annexure - C

Highlights on the overall activities of the Bank for the years 2016 and 2015

Year
Serial
Particulars
No. 2016 2015
Taka Taka

1 Paid up share capital 2,000,000,000 2,000,000,000

2 Total capital 21,249,366,086 21,137,599,847

3 Capital surplus 4,019,304,688 5,682,739,325

4 Total assets 276,844,361,224 244,057,570,324

5 Total deposits 207,233,965,363 186,765,001,538

6 Total loans and advances 173,397,797,631 152,270,000,465

7 Total contingent liabilities and commitments 60,051,681,755 55,014,954,855

8 Credit deposit ratio 83.67% 81.53%

9 Percentage of classified loans against total loans and advances 5.19% 3.69%

10 Net profit after taxation and provision 1,762,612,951 3,020,282,208

11 Amount of classified loans and advances at the end of the year 8,999,030,195 5,624,857,070

12 Provisions kept against classified loan 4,769,570,865 2,783,136,456

13 Provisions surplus against classified loan 8,170,661 198,000,000

14 Cost of fund including operating cost 7.30% 8.10%

15 Interest earning assets 233,602,308,408 210,882,266,084

16 Non-interest earning assets 43,242,052,816 33,175,304,240

17 Return on investment (ROI) 6.52% 10.19%

18 Return on asset (ROA) 0.68% 1.31%

19 Income from investment 2,071,631,905 2,059,385,395

20 Earnings per share (Taka) 8.81 15.10

21 Net income per share (Taka) 8.81 15.10

22 Price earning ratio (Times) 13.24 7.13

ANNUAL REPORT 2016 435

off-shore
banking
unit
Balance Sheet as at 31 December 2016
(Off-shore Banking Unit)

PROPERTY AND ASSETS 2016 2015

Notes
USD Taka Taka
Cash
In hand (including foreign currencies) - - -
Balance with Bangladesh Bank and its agent bank (s)
(including foreign currencies) - - -
- - -
Balance with other banks and financial institutions
In Bangladesh 37,161,080 2,924,658,763 2,078,371,622
Outside Bangladesh - - -
37,161,080 2,924,658,763 2,078,371,622
Money at call on short notice - - -

Investments
Government - - -
Others - - -
- - -
Loans and advances 3
Loans, cash credits, overdrafts, etc. 10,304,001 810,947,527 564,580,712
Bills purchased and discounted 88,168,090 6,939,022,658 5,353,778,645
Lease receivables - - -
98,472,091 7,749,970,185 5,918,359,357
Fixed assets including land, building, furniture and fixtures 4 1 82 11,016
Other assets 5 208,223 16,387,601 9,294,150
Non-banking assets - - -
TOTAL ASSETS 135,841,395 10,691,016,631 8,006,036,145

LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and agents 6 132,572,910 10,433,779,680 7,816,530,583

Deposits and other accounts 7

Current deposits and other accounts 617,829 48,624,470 56,407,536
Bills payable - - -
Savings bank deposits - - -
Term deposits - - -
617,829 48,624,470 56,407,536
Other liabilities 8 1,770,535 139,246,609 125,740,107
Subordinated debt - - -
TOTAL LIABILITIES 134,961,274 10,621,650,759 7,998,678,226

ANNUAL REPORT 2016 439

Balance Sheet as at 31 December 2016
(Off-shore Banking Unit)

2016 2015
Notes
USD Taka Taka

Shareholders equity
Paid up share capital - - -
Share premium - - -
Statutory reserve - - -
Other reserve - - -
Dividend equalization account - - -
Assets revaluation reserve - - -
Retained earnings 880,121 69,365,872 7,357,919
TOTAL SHAREHOLDERS EQUITY 880,121 69,365,872 7,357,919
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 135,841,395 10,691,016,631 8,006,036,145

OFF-BALANCE SHEET ITEMS

Contingent liabilities

Acceptances and endorsements - - -

Letters of guarantee - - -
Irrevocable letters of credit 35,769 2,815,128 -
Bills for collection - - -
Other contingent liabilities - - -
Total contingent liabilities 35,769 2,815,128 -

Other commitments
Documentary credits and short term trade-related transactions - - -
Forward assets purchased and forward deposits placed - - -
Undrawn note issuance and revolving underwriting facilities - - -
Undrawn formal standby facilities, credit lines and other commitments - - -
- - -
Total other commitments - - -

Total off-balance sheet items including contingent liabilities 35,769 2,815,128 -

Profit and Loss Account for the year ended 31 December 2016
(Off-shore Banking Unit)

2016 2015
Notes
USD Taka Taka

Interest income 9 3,811,273 299,955,552 175,188,057

Interest paid on deposits and borrowings etc. 11 2,726,660 214,594,108 140,398,575
Net interest income 1,084,613 85,361,444 34,789,482
Investment income - - -
Commission, exchange and brokerage - - -
Other operating income 10 10,879 856,198 1,323,088
Total operating income 1,095,492 86,217,642 36,112,570
Salary and allowances 12 63,316 4,983,114 4,830,295
Rent, taxes, insurance, electricity, etc. - - -
Legal expenses - - -
Postage, stamp, telecommunications, etc. 13 62 4,904 42,663
Stationery, printings, advertisements, etc. - - -
Managing Director & CEO's salary and allowances - - -
Directors' fees - - -
Auditors' fees - - -
Charges on loan losses - - -
Depreciation and repair of bank's assets 14 4,008 315,430 355,748
Other expenses 15 7,498 590,114 663,331
Total operating expenses 74,884 5,893,562 5,892,037
Profit before provision 1,020,608 80,324,080 30,220,533

Provision for loans and off-balance sheet exposures 3.4

Specific provision for loans - - -
General provision for loans 232,727 18,316,127 54,569,907
General provision for off-balance sheet exposures - - -
232,727 18,316,127 54,569,907
Other provision - - -
Total provision 232,727 18,316,127 54,569,907
Net profit before taxation 787,881 62,007,953 (24,349,374)
Provision for taxation
Current tax - - -
Deferred tax [expense /(income)] - - -
- - -
Net profit after taxation 787,881 62,007,953 (24,349,374)
Retained earnings brought forward from previous years 92,240 7,357,919 31,707,293
Retained earnings carried forward 880,121 69,365,872 7,357,919

ANNUAL REPORT 2016 441

Cash Flow Statement for the year ended 31 December 2016
(Off-shore Banking Unit)

2016 2015
Notes
USD Taka Taka
A) Cash flows from operating activities

Interest receipts in cash 3,811,273 299,955,552 175,188,057

Interest payments (2,726,660) (214,594,108) (140,398,575)
Dividend receipts in cash - - -
Gain on sale of shares - - -
Gain on sale of securities - - -
Recoveries of loan previously written-off - - -
Fee and commission receipts in cash - - -
Cash payments to employees (63,316) (4,983,114) (4,830,295)
Cash payments to suppliers - - -
Income taxes paid - - -
Receipts from other operating activities 10,879 856,198 1,323,088
Payments for other operating activities (7,498) (590,114) (663,331)
Operating profit before changes in operating assets and liabilities 1,024,678 80,644,414 30,618,944

Increase/(decrease) in operating assets and liabilities

Statutory deposits - - -
Purchase /sale of trading securities - - -
Loans and advances to other banks - - -
Loans and advances to customers (23,079,267) (1,831,610,828) (5,918,359,357)
Other assets - - -
Deposits from other banks - - -
Deposits from customers (100,736) (7,783,066) 56,407,536
Other liabilities account of customers - - -
Borrowing from Head Office 32,999,653 2,617,249,097 7,816,530,583
Other liabilities (159,218) (12,212,476) (595,554,282)
Net cash from operating activities 10,685,110 846,287,141 1,389,643,424

B) Cash flows from investing activities

Payments for purchase of securities - - -

Proceeds from sale of securities - - -
Purchase of property, plant and equipment - - -
Sale proceeds of property, plant and equipment - - -
Net cash used in investing activities - - -

C) Cash flows from financing activities

Receipts from issue of loan capital and debt securities - - -

Dividends paid - - -
Net cash from financing activities - - -

D) Net increase / (decrease) in cash (A+B+C) 10,685,110 846,287,141 1,389,643,424

E) Cash and cash-equivalents at beginning of year 26,475,970 2,078,371,622 688,728,198

F) Cash and cash-equivalents at end of year (D+E) 37,161,080 2,924,658,763 2,078,371,622

Notes to the Financial Statements as at and for the year ended 31 December 2016
(Off-shore Banking Unit)

1. Status of the unit

1.1 The Off-shore Banking Units (OBU) of Dutch-Bangla Bank Limited are governed by the applicable rules & regulations
of Bangladesh Bank. The Bank obtained the permission for conducting the activities of OBU under reference letter no.
BRPD(P-3)744(109)/2010-610 dated 23 February 2010 of Bangladesh Bank. The Bank started the operation of OBU on 12 July
2010. The number of OBUs were two as at 31 December 2016, located at Chittagong EPZ Branch-Chittagong and Dhaka EPZ
Branch-Dhaka.
1.2 Nature of business

The principal activities of the Bank are to carry on all kinds of banking business in accordance with applicable rules and
regulations of Bangladesh Bank for operations of Off-shore Banking Unit in Bangladesh.

2. Significant accounting policies and bases of preparation of financial statements

2.1 Basis of accounting

The financial statements of the Bank have been prepared under historical cost convention and in accordance with the Bank
Companies Act, 1991 as amended under sub-section 38(4) of the Act, relevant Bangladesh Bank Circulars, International
Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs) adopted by the Institute of Chartered
Accountants of Bangladesh (ICAB) and named as Bangladesh Accounting Standards (BASs) and Bangladesh Financial
Reporting Standards (BFRSs) respectively, the Companies Act, 1994, the Securities and Exchange Rules, 1987 and other rules
and regulations applicable in Bangladesh.

The financial statements represent the financial position and results of OBUs of the Bank.

2.2 Functional and presentation currency

The functional currency of OBUs is US Dollar. While the financial statements are presented both in USD and equivalent
Bangladesh Taka.

Transactions in others currencies are recorded in the functional currency (USD) at the rate of exchange prevailing on the date of
the transactions. Assets and liabilities in other currenciesare translated into functional currency (USD) at the rate of exchange
prevailing at the date of balance sheet.

2.3 Loans and advances

a) Loans and advances are stated at gross amount. While the provision and interest suspense against loans and advances
are shown separately as other liabilities.

b) Interest income is calculated on daily product basis and accounted for on quarterly rest on accrual basis until the loans
and advances are defined as classified accounts as per Bangladesh Bank guidelines. As per Bangladesh Bank directives,
interest on loans and advances classified as bad/loss is not accounted for. A separate memorandum record is maintained
for such interest on bad/loss loans.

c) Provision for loans and advances is made on the basis of the year-end review by the management of the Bank in line with
the instructions contained in BRPD Circular No. 14 dated 23 September 2012 and BRPD Circular No. 19, dated 27 December
2012, BRPD Circular No. 05 and 06 dated 29 May 2013 issued by Bangladesh Bank.

ANNUAL REPORT 2016 443

2.4 Revenue recognition

The revenues of the OBU during the year have been recognized in terms of the provisions of Bangladesh Accounting Standard
(BAS) 18 , Revenue as outlined below:

2.4.1 Interest income

a) Interest income from loans and advances and lease finance

The policy for accounting of interest income on loans and advances is stated in 2.3.a and 2.3.b above.

2.4.2 Fees and commission income

Fees and commission income arising from different services provided by the Units are recognized on cash receipt basis.

2.4.3 Interest paid on deposits and borrowings

Interest paid on deposits, borrowings etc. are accounted for on accrual basis.

2.5 Cash flow statement

Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard (BAS) 7, Statement of Cash
Flows under Direct method as recommended in the BRPD Circular No. 14 dated 25 June 2003 issued by the Banking Regulation
& Policy Department of Bangladesh Bank.
2016 2015
USD Taka Taka
3. Loans and advances

Loans, cash credits, overdrafts etc. 10,304,001 810,947,527 564,580,712

Bills purchased and discounted 88,168,090 6,939,022,658 5,353,778,645
Total loans and advances 98,472,091 7,749,970,185 5,918,359,357

3.1 Net loans, advances and lease receivables including bills purchased and discounted

Total loans, advances and lease receivables 98,472,091 7,749,970,168 5,918,359,340

Less : Provision against loans and advances (specific and general) 984,248 77,499,755 59,183,628
Less : Cumulative balance of interest suspense account - - -
97,487,843 7,672,470,413 5,859,175,712

3.2 Residual maturity grouping of loans, advances and lease receiv-

ables including bills purchased and discounted

Payable
On demand - - -
Within one to three months - - -
Within three to twelve months 98,472,091 7,749,970,185 5,918,359,357
Within one to five years - - -
More than five years - - -
98,472,091 7,749,970,185 5,918,359,357
 2016 2015
USD Taka Taka

3.3 Classification status of loans and advances including the bills

purchased & discounted

Unclassified
Standard 98,472,091 7,749,970,185 5,918,359,357
Special mention account (SMA) - - -
98,472,091 7,749,970,185 5,918,359,357
Classified
Substandard - - -
Doubtful - - -
Bad / loss - - -
- - -
98,472,091 7,749,970,185 5,918,359,357
3.4 Classification and provisioning of loans, advances and lease
receivables including bills purchased and discounted

Amount of Percentage (%) of Amount of Amount of

outstanding loans and Base for provision provision provision
Classification / Status of advances as at provision required as per required as at required as at
loans and advances 31 December 2016 Bangladesh 31 December 31 December 2015
USD Taka Taka Banks directives 2016 (Taka) (Taka)
Unclassified loans and advances
Small & Medium enterprise financing 0.25%
Other than Small & Medium enterprise financing 98,472,091 7,749,970,185 7,749,970,185 1.00% 77,499,702 59,183,594
Special mention account - - - 5% - -
Total unclassified loans and advances 98,472,091 7,749,970,185 7,749,970,185 77,499,702 59,183,594
Classified loans and advances
Substandard - - - 20% - -
Doubtful - - - 50% - -
Bad / loss - - - 100% - -
Total classified loans and advances - - - - -
Total loans and advances 98,472,091 7,749,970,185 7,749,970,185 77,499,702 59,183,594
Total provision maintained 77,499,755 59,183,628
Total provision surplus 53 34

3.5 Geographical location-wise loans, advances and lease receivables

including bills purchased and discounted

Dhaka Division 90,075,922 7,089,173,233 5,918,359,357

Chittagong Division 8,396,169 660,796,952 -
Other Divisions - - -
98,472,091 7,749,970,185 5,918,359,357

ANNUAL REPORT 2016 445

 2016 2015
USD Taka Taka

4. Fixed assets at cost or revalued amount including land, building,

furniture and fixtures

Computer equipment and software 1,242 101,633 101,633

1,242 101,633 101,633
Less: Accumulated depreciation 1,241 100,346 90,617
Exchange differences adjustment* 1,205
1,241 101,551 90,617
1 82 11,016

5. Other assets

Interest accrued on investment but not collected, commission and

brokerage receivable on shares and debentures and other income
receivable 208,223 16,387,601 9,294,150
208,223 16,387,601 9,294,150
6. Borrowings from other banks, financial institutions and agents

a) In Bangladesh

Borrowings from other banks, financial institutions and agents 132,572,910 10,433,779,680 7,816,530,583
132,572,910 10,433,779,680 7,816,530,583
b) Outside Bangladesh - - -
- - -
Total (a+b) 132,572,910 10,433,779,680 7,816,530,583

7. Deposits and other accounts

Current deposits 582,059 45,809,324 56,407,536

Savings bank deposits - - -
Fixed deposits - - -
Special notice deposits - - -
Monthly term deposits - - -
Sundry deposit - withholding tax -IT 35,770 2,815,146 -
617,829 48,624,470 56,407,536
8. Other liabilities

Interest payable on borrowings 786,287 61,882,517 66,861,218

Accumulated provision for loans and advances including off- 984,248 77,499,755 59,183,628
balance sheet exposures
Other liability - - -
Exchange differences* - (135,663) (304,739)
* USD1 = Taka 78.7022 as on 31 December 2016; USD1 = Taka 78.5003 as
on 31 December 2015. 1,770,535 139,246,609 125,740,107
 2016 2015
USD Taka Taka

8.1 Accumulated provision for loans and advances and Off-balance sheet
exposures
General provision
Opening balance 751,521 59,183,628 4,613,721
General provision for the period 232,727 18,316,127 54,569,907
Provision held at the end of the period [Note 3.4] 984,248 77,499,755 59,183,628

9. Interest income

Interest on loans and advances 2,923,402 230,078,159 124,558,779

Interest on balance with other banks and financial institutions 887,871 69,877,393 50,629,278
3,811,273 299,955,552 175,188,057
10. Other income
Commission 209 16,431 2,453
Recoveries from client 1,118 87,989 101,265
Service charges on deposit accounts 3,607 283,879 91,649
Income from Export-Import 5,945 467,899 1,127,721
10,879 856,198 1,323,088
11. Interest paid on deposits and borrowings etc.

Interest paid on borrowings 2,726,660 214,594,108 140,398,575

2,726,660 214,594,108 140,398,575
12. Salary and allowances

Basic salary 33,101 2,605,127 2,614,117

House rent allowance 16,551 1,302,562 1,310,101
Conveyance allowance 1,465 115,277 86,180
Banks contribution to provident fund 3,310 260,515 261,414
Medical expenses 3,310 260,515 261,414
Bonus 5,579 439,118 297,069
63,316 4,983,114 4,830,295
13. Postage, stamp, telecommunications, etc.

Postage 62 4,904 42,663

62 4,904 42,663
14. Depreciation and repair of banks assets

Depreciation on fixed assets including land, building, furniture and 124 9,729 19,488
fixtures [Note-14.1]
Repair and maintenance [Note-14.2] 3,884 305,701 336,260
4,008 315,430 355,748

ANNUAL REPORT 2016 447

 2016 2015
USD Taka Taka

14.1 Depreciation on fixed assets including land, building, furniture and

fixtures

Computer equipment and software 124 9,729 19,488

124 9,729 19,488

14.2 Repair and maintenance

Vehicle 3,884 305,701 336,260

3,884 305,701 336,260

15. Other expenses 7,498 590,114 663,331

 Top Management of DBBL

Managing Director & CEO

Mr. Abul Kashem Md. Shirin

Deputy Managing Directors

Mr. Md. Sayedul Hasan

Mr. Khan Tariqul Islam

Mr. Md. Monzur Mofiz

DBBL BRANCHES
01. Abdullahpur Branch 12. Banani Branch
Anwar Hossain Plaza (1st floor), Abdullahpur, Plot# 75, Block# B, Kamal Ataturk Avenue, Banani,
Keraniganj, Dhaka. Dhaka-1213. Tel: 55034190, 9883892
Mob: 01938-801698 Mob: 01711-596014, 01713-069923, Fax: 9887336
02 Aganagar Branch 13. Bandura Branch
Mayaz Tower (1st & 2nd floor), Shezan Multi Shopping Mall (1st Floor),
Aganagar, Kaligonj, Keranigonj, Dhaka. Bandura Bazar, Nawabganj, Dhaka.
Mob: 01938-803293 Mob: 01730-726982, 01730-726983, 01713-481746
03. Agrabad Branch 14. Barisal Branch
Hossain Court, 75, Agrabad C/A, Chittagong- 4100. S.S. Tower, 109, Sadar Road, Barisal.
Tel: 031-724781-2, 031-726571, Tel: 0431-61662,0431-2174474
Mob: 01711-728391, 01729-072876 Mob: 01713-450734, 01938-801653, Fax:0431-2174489
04. Amborkhana Branch 15. Bashundhara Branch
781, Lace Super Market (1st floor), Amborkhana, Sylhet. Ka-3/1-C (1st Floor) Bashundhara Road,
Tel: 0821-710416, 0821-720178 Jagannathpur, Dhaka-1229. Tel:8413618-20,
Mob: 01938-801621, Fax: 0821-717497 Mob: 01730-024092, Fax: 8413620 Ext: 108
05. Amin Bazar Branch 16. Basurhat Branch
Begun Bari, Amin Bazar, Tanha Bhaban (1st & 2nd floor),
Savar, Dhaka. College Road, Basurhat, Noakhali.
Tel: 02-9026098, 02-9026096 Tel: 03223-56015-16, Mob: 01730-333631,
Mob: 01938-801677 Fax: 03223-56010

06. Ashkona Branch 17. Beani Bazar Branch

Bhuiyan Shopping Complex, 301/631, Ashkona, Zaman Plaza, Beani Bazar, Sylhet.
Dakshinkhan, Dhaka. Tel: 08223-56061-62,
Tel: 58955884, 7912494, 7914814. Mob: 01713-481743,
Mob: 01938-801625 Fax: 08223-56060
07. Ashuganj Branch 18. Bhairab Branch
Nur Plaza, Dag# R. S. 97/2961, Union: Chor Chartala, 261-262, Char Rastar More, Bottola Road, Bhairab Bazar,
Thana: Ashuganj, Dist: Brahmanbaria. Bhairab, Kishorgonj.
Tel: 8528-74144, 8528-74154, Mob: 01938-803287 Tel: 029470255-6, Mob: 01730-333773
08. Ashulia Branch 19. Bhuigar Branch
Jamgora, DEPZ Main Road, Bhuiyan Tower (1st floor), Bhuigar Bus stand, Fatulla,
Ashulia, Dhaka. Kutubpur, Narayanganj.
Mob: 01938-801656 Mob: 01938-801734
09. Ati Bazar Branch 20. Bhulta Branch
Ati Bazar, Keraniganj, Dhaka. Hazi Abdul Haque Super Market, Bhulta, GolaKandail,
Tel: 02-55103283, 02-55103284 Rupgonj, Narayangonj.
Mob: 01938-801676, 01938-801681 Mob: 01730-313995
10. B. B. Road Branch 21. Bijoynagar Branch
60 (Old) / 86 (New), B.B. Road, Narayanganj. 180-181, Shahid Syed Nazrul Islam Shoroni,
Tel: 7642860-2, Mob:01711-541739 Bijoynagar, Dhaka.
Fax: 7642862 Tel: 8391562-3, Mob: 01730-703441, 01938-801692
11. Baburhat Branch 22. Biswanath Branch
Madhabdi Bazar, Narsingdi. Didar Shopping Complex, Rampasha Road,
Tel: 9446921-22, 9446670 Biswanath, Sylhet. Tel: 08224-56009, 08224-56010
Mob: 01711-541734, 01711-629340 Mob: 01713-080234
23. Board Bazar Branch 35. Companiganj Branch
Mansur Plaza, Board Bazar, Gazipur. 871 (1st & 2nd floor), Nabinagar Road, Companiganj,
Tel: 9293433-5, Mob: 01713-060712 Muradnagar, Comilla. Mob: 01938-801717
24. Bogra Branch 36. Coxs Bazar Branch
Madhu Metro Tower (2nd & 3rd Floor), M. Rahman City Centre, Holding# 465,
Holding# 56/64, Kazi Nazrul Islam Road, Sathmatha, Road# 01, Main Road,
Bogra Sadar, Bogra-5800. Coxs Bazar Sadar, Coxs Bazar.
Tel: 051-69820, 051-69830, Mob: 01713-201690 Tel: 0341-51146-7, Mob: 01713-257364
25. Borolekha Branch 37. Dagonbhuiyan Branch
Hazi Moshud Ali Trade Centre, Sultan Tower, Zero Point,
Vill-Baroigram (Borolekha Bazar), Dagonbhuiyan, Feni.
P.S.: Borolekha, Dist: Moulvibazar. Tel:03323-79397-8, Mob: 01730-351786
Tel: 08622-56702-04, Mob: 01938-801634 Fax: 03323-79425
26. Brahmanbaria Branch 38. Dakshinkhan SME / Agriculture Branch
F.C. Tower, Holding# 1018, 83, Rajob Ali Super Market (1st Floor),
Court Road (Kalaisreepara), Brahmanbaria Dakshinkhan Bazar, Dakshinkhan, Dhaka.
Tel: 0851-63284, Mob: 01938-801650 Tel: 8999669-71, Mob:01730-317194
27. Chandpur Branch 39. Dania Branch
Hakim Plaza, 2nd floor, Ayesha Mosharaf Shopping Complex (2nd & 3rd Floor),
248, Shahid Muktijoddha Road, Chandpur. Dania, Shyampur, Dhaka 1236.
Tel: 0841-66595-7, Mob: 01938-801714 Tel: 7552400, 7553095,7552501, Mob: 01713-010703, Fax:7552501
28. Chapai Nawabganj Branch 40. Dhaka EPZ Branch
Holding# 04 (2nd floor), Puraton Bazar, Baipail Mor, Asulia,Savar, Dhaka.
Godagari Road, Chapai Nawabganj. Tel: 7790668, 7788254
Tel: 0781-52699(m), 0781-52697(D/M), 0781-52698 (cash) Mob: 01713-046290,
Mob: 01938-801715 Fax: 7789265
29. Chhatak Branch 41. Dhanmondi Branch
Mehetaj Shopping City, 82, Girls School Road, House# 500A-1/A (1st Floor),
Chhatak, Sunamganj. Road# 8, Dhanmondi R/A, Dhaka-1205.
Tel: 08723-56356, 08723-56446, 08723-56439, Tel: 58610963, 58615661, 58611372
Mob: 01713-481707 Mob: 01711-590289
30. Chittagong EPZ Branch 42. Dhaka Dakshin SME / Agriculture Branch
Islam Mansion, Airport Road, 32, Shahir Uddin Super Market,
South Halishahar, Bondor, Chittagong, Dhaka Dakshin, Golapganj, Sylhet.
Tel: 031-741421-2, Mob:01730-703435 Tel: 8227-56523, Mob: 01713-481740
31. Chokoria Branch 43. Dinajpur Branch
M. M. Hossain Market,862, Main Road, Palok, Munshipara, Lilir Mor, Kotwali, Dinajpur.
Chokoria, Coxs Bazar. Tel: 034-2256415, 034-2256416 Tel: 0531-63960-61, Mob: 01730-331459
Mob: 01938-801664 Fax: 0531-63962
32. Chowmuhani Branch 44. Digpait Branch
NSS Bhaban, Feni Road, Digpait Uposhahar, Sadar,
Chowmuhani, Begumganj, Noakhali. Jamalpur.
Tel: 0321-53632-3, Mob: 01730-077785 Mob: 01938-801620
33. Chuadanga Branch 45. Dumni Branch
Anawar Tower, Holding# 0634, Ferighat Road, Dumni Bazar,
Ward# 04, Chuadanga. Khilkhet, Dhaka.
Tel: 0761-81131-2, Mob: 01988-03288 Mob: 01938-801704

34. Comilla Branch 46. Elephant Road Branch

32/30, Bandi Shahi Market, 118/3, Dr. Kudrat-E-Khuda Road (Elephant Road, Bata
Chawk Bazar, Comilla. Signal), Dhaka 1205. Tel: 9631875, 9675498
Tel: 081-61011, Mob: 01713-431444 Mob: 01713-049306, 01938-801690, Fax: 9675498 Ext-(111)

ANNUAL REPORT 2016 451

47. Elenga Branch 59. Gulshan Circle-1 Branch
Ekattur Bhaban (1st floor), Elenga Bus Stand, Bay's 23, Gulshan Avenue (1st Floor), Plot # 6,
Kalihati, Tangail. Block # SW (l), Gulshan Model Town, Dhaka - 1212.
Mob: 01938-801713 Mob: 01938-801720, 01938-801726
48. Fatikchari Branch 60. Habiganj Branch
Nazrul Shopping Complex, College Road, Habiganj Regency,
Bibirhat, Fatikchari, Chittagong. R.D Hall Road (Kalibari Road), Habiganj,
Tel: 03022-56235-6, Mob: 01730-077780, Tel: 0831-63153-4, Mob: 01730-703433, Fax: 0831-63152
49. Faridpur Branch 61. Halishahar Branch
Chawk Bazar Tower, Holding No.12/A, Road# 1, Block-G, Port Connecting Road,
57-58, Chawk Bazar, Faridpur, Halishahar Housing Estate, Chittagong.
Tel: 0631-67080-82, Mob: 01730-703437 Tel: 031-2518051-3, Mob: 01730-333630
50. Feni Branch 62. Hasnabad Branch
Aziz Shopping Centre, 163, S.S.K. Road, Feni. Mofizuddin Mansion, Holding# 01, Hasnabad,
Tel: 0331-63526, 0331-74490, Mob: 01713-431443 South Keraniganj, Dhaka. Mob: 01938-803296
51. Gazipur Branch 63. Hathazari Branch
Asian Tower (2nd floor), Holding# 80, Block# J, S.S. Tower (1st Floor), Court Road,
Bus Stand, Bazar Road, Joydebpur, Gazipur. Hathazari, Chittagong.
Tel-02-9264234, 9264260, 9264189, 9264228, Tel: 031-2601188,
Mob: 01938-801695, Fax: 02-9264234 Mob: 01711-728300
52. Gazipur Chowrasta Branch 64 Hemayetpur Branch
Reaz Tower (1st Floor), Hazi Ashraf Shopping Complex, 1st floor,
Gazipur Chowrasta, Gazipur. Hemayetpur Bus Stand, Savar, Dhaka.
Tel: 9262167, 9262001, 9262067 Tel: 027745865
Mob: 01713-141987, 01938-801649 Mob: 01938-801718
53. Goala Bazar Branch 65. Imamgonj Branch
Hazi Abdul Gafur & Sons Shopping Complex (1st & 2nd 41, Imamgonj, Roy Ishwar Chandra Sheel Bahadur Street,
Floor), South Goala Bazar, Osman Nagar, Sylhet. Lalbagh, Dhaka. Tel: 7341344, 7341369-70
Tel: 08242-56419-20, Mob: 01730-077787 Mob: 01713-060961, Fax: Ext:108
54. Gobindaganj Branch 66. Islampur Branch
219, Rangpur -Bogra Highway, Gobindaganj, Gaibandha. Jahangir Tower (2nd Floor & 3rd floor), 114-116, Islampur
Tel: 05423-75310, 05423-75318, Mob: 01713-435864 Road, Dhaka-1100. Tel: 57395414, 57392944, 57396026
Fax: 05423-75320 Mob: 01711-594508, 01730-726981
55. Gopaldi Branch 67. Jamalpur Branch
Holding# H/D-112, Ward# 06, Gopaldi, Jam-e Masjid Road (Tamaltala),
Araihazar, Narayanganj. Jamalpur Sadar, Jamalpur.
Mob: 01938-803290 Tel: 0981-62489, 0981-64868, Mob: 01938-801644.
56. Gouripur Branch 68. Jhawtala SME / Agriculture Branch
Madona Twin Tower, Gouripur Bazar, Holding# 1040/2 (1st Floor), Jhawtala Main Road,
Gouripur, Daoudkandi, Comilla. Jhawtala, Comilla. Tel: 081-68618, 081-68588,
Mob: 01938-801680 Mobile: 01713-481725, Fax: 081-68594

57. Golapgonj Branch 69. Jessore Branch

Noor Mansion, Golapgonj 11/A, R.N. Road, Kotwali, Jessore.
Chowmohona, Sylhet. Tel: 0421-68314-5
Tel: (08227)-756300, Mob: 01713-060998 Mob: 01713-431347.

58. Gulshan Branch 70. Jhenaidah Branch

The Grand Delvistaa CES (A), Road # 113, M. N. Super Market (1st floor), 19, Sher-e-Bangla Sarak,
Old GP Center, Gulshan, Dhaka - 1212. Tel: 58812213, 9888436 Jhenaidah Sadar, Jhenaidah. Tel: 0451-63641-2
Mob: 01711-590396, 01713-040865, Fax: 8826344 Mob: 01938-801694, FAX : 0451-63643
71. Joypara Branch 84. Konabari Branch
Monowara Mansion, Joypara Bazar, 143/144 BSCIC Industrial Area, Konabari, Gazipur.
Dohar, Dhaka. Tel: 02-7768169, Mob:01713-201877 Tel: 9298841-3, Mob: 01730-077784,
72. Joypurhat Branch 85. Kishoreganj Branch
Ansar Ali Complex (Gr. Floor), Sadar Road, Joypurhat. Nirala Shopping Complex, 742, Ishakhan Road,
Mob: 01938-803285 Kishorejonj. Tel: 0941-61390-1, Mob: 01938-801699
73. Jubilee Road Branch 86. Kurigram Branch
Kader Tower (2nd Floor), Tinpool, 128, Jubilee Road, Ganir Uddin Super Market, 1st floor, Holding# 25,
Kotwali, Chittagong. Ghoshpara, Bazar Road, Kurigram.
Tel: 031-2854491-3, Mob: 01713-257361 Mob: 01938-801732
74. Kadamtali Branch 87. Kushtia Branch
Rahat Centre(1st Floor), 295, D.T. Road, Monir Tower, 298 (old 164) N.S. Road, Barobazar, Kushtia.
Kadamtali, Chittagong. Tel: 071-71729, 071-71730,
Tel: 031-2514116, 031-2514130, Mob: 01713-257362 Mob: 01730-333634
75. Kalampur Branch 88. Laksham Branch
Kalampur Bazar, Dhamrai, Dhaka-1351. Khair Mansion, Holding# 894, Laksham Bazar,
Mob: 01938-801703 Laksham, Comilla. Tel: 08032-51031-2, Mob: 01938-801647
76. Kaliganj Branch 89. Local Office
Gouro Bhabon (1st floor), 220, Kaligonj Bazar, 1, Dilkusha C/A, Dhaka-1000.
Kaligonj, Gazipur. Tel: 9568539, 9559291, 9557846, 9552831
Mob: 01938-801712 Mob: 01730-031823, 01711-566271
77. Kanchpur Branch 90. Lohagara Branch
96, Sonargaon Mega Complex (1st floor), Kanchpur, Mostafa City (1st Floor), Lohagara Sadar,
Sonargaon, Narayanganj. Lohagara, Chittagong,
Mob: 01938-803283 Tel: 03034-56342, Mob: 01730-024090
78. Kapasia Branch 91. Laxmipur Branch
Mollah Manson, Kapasia Bazar, Ali Plaza, 1126, 1127 Godown Road (Old Khaddogudam
Kapasia, Gazipur. Road), Laxmipur.
Mob: 01938-801711 Tel: 0381-62429, 62409, Mob: 01938-801646
79. Kashinathpur Branch 92. Madaripur Branch
New Alahi Super Market, Kashinathpur Bazar, Melbourne Plaza, Holding# 1055/A,
Kashinarhpur, Sathia, Pabna. Puran Bazar, Madaripur.
Mob: 01938-801702 Tel: 0661-62005, 0661-62006, 0661-61873, Mob: 01713-248799
80. Kawran Bazar Branch 93. Maijdee Court Branch
BDBL Bhaban (2nd Floor), Rahman Center (1st floor), Town Hall More,
12, Kawran Bazar, Dhaka-1215. Tel: 58155506, 58155508 Main Road, Maijdee Court, Noakhali.
Mob: 01711-590395, 01711-431524, Fax:58155522 Tel: 032171043, 032171047, Mob: 01938-803284
81. Keraniganj Branch 94. Manda Branch
Jahanara Plaza, Dakpara, Zinzira, Keraniganj, Dhaka. 145 North Manda (Main Road), Mugda, Dhaka-1214.
Tel: 7763994-6, Mob: 01938-801615, Fax: 7763997 Tel: 02-7274429-31, Mob: 01938-801675
82. Khatunganj Branch 95. Manikgonj Branch
Alam Business Center (1st & 2nd floor), Shandhani Plaza (1st Floor), 69/1, Shahid Rafiq
254, Khatungonj, Chittagong. Sarak,Manikgonj.
Tel: 031-2856781-3, 031-2866691-2, Mob: 01730-088882 Tel: 7720020, 7720149, Mob: 01730-024094
83. Khulna Branch 96. Masterbari Branch
R. Amin Trade Center, 17, KDA Avenue, Khulna. RH Complex ( 1st Floor), Masterbari,
Tel: 041-813782-3, Valuka, Mymensingh.
Mob: 01713-400582 Mob: 01938-803295

ANNUAL REPORT 2016 453

97. Matuail Branch 109. Moulvibazar Branch
Meghna Plaza, 11, Konapara, Main Road, Sonour Complex, M.Saifur Rahman Road,
Paradogar Matuail, Dhaka. Tel: 7550640, 7550644, Paschim Bazar, Moulvibazar.
Mob: 01938-801614, Fax: 77550642 Tel: 0861-62850-51, Mob: 01713-201879
98. Mawna Branch 110. Munshiganj Branch
Hazi Amir Complex (1st & 2nd Floor), Mawna Chowrasta, 67/6, Dewan Plaza, Sadar Road, Munshiganj.
Sreepur Road, Sreepur, Gazipur-1740. Tel: 7620077, 7620099,
Mob: 01938-801651 Mob: 01730-703431
99. Meghula Bazar SME / Agriculture Branch 111. Muradpur Branch
Morol Market, Meghula Bazar, Al-Kabir Tower (1st floor)
Dohar, Dhaka. Muradpur, Panchlish, Chittagong.
Mob: 01713-481708 Tel: 656011-3, Mob: 01713-060994
100. Mirer Bazar Branch 112. Mymensingh Branch
Fouzia Sarker Commercial Complex (2nd floor) Mamatashi Emporium
Kamargaon, Mirer Bazar, Pubail, Gazipur. 8 & 12 GKMC Saha Road, Choto Bazar, Mymensingh.
Mob: 01938-801654 Tel: 091-52081, 091-52082, Mob: 01730-088883
101. Mirpur Branch 113. Nababpur Branch
8, Darus Salam Road, Mirpur1, Dhaka-1216. 165, Nababpur Road, Dhaka-1000.
Tel: 9016841, 9016843 Tel: 9582872, 47111504, 9583285
Mob: 01711-593280, Fax: 9030533 Mob: 01711-541738, 01713-043691
102. Mirpur Circle-10 Branch 114. Narayangonj Branch
Central Plaza (1st & 3rd Floor), 45, S.M. Maleh Road, Tanbazar, Narayangonj-1400.
231 Senpara, Parbota Mirpur -10, Dhaka -1216. Tel: 7643828, 7631134, 7643088, 764052
Tel: 9015957, 9015975, 9015966, Mob: 01713-247410 Mob: 01713-032551, 017118-80080
103. Mirzapur Branch 115. Naogaon Branch
Ashkabar Biponi Bitan (1st Floor), Ananda Bazar Shopping Complex, Bridge More,
Mirzapur Bus Stand, Mirzapur, Tangail. Main Road, Naogaon.
Tel: 09229-56226-7, Tel: 0741-81166, 0741-81167
Mob: 01713-257363, 01938-801652 Mob: 01938-801645, Fax: 0741-81176
104. Modonpur Branch 116. Narayangonj BSCIC Branch
Ekota Shomobay Super Market (2nd Floor), Plot# A - 55, Block# A, BSCIC Hosiery Industrial Area,
Modonpur, Bondor, Narayanganj. Shasongaon, Enayetnagar, Fatullah, Narayangonj.
Mob: 01938-803289 Tel: 7671609-11, Mob: 01730-313997
105. Mohammadpur Branch 117. Narsingdi Branch
75/C, Asad Avenue, Mohammadpur, Dhaka. 217, Deshprio Road, Ward# 4, Narsingdi Sadar, Narsingdi.
Mob: 01938-803294 Tel: 9464460, 9464470, 9464466, Mob: 01713-481704
106. Mohakhali Branch 118. Netrokona Branch
35, Bir Uttam A. K. Khandaker Road, Hotel Zakaria 0337, Chitra Medical Hall, (1st & 2nd floor),
International (1st Floor), Mohakhali C/A Dhaka. Choto Bazar, Netrakona.
Tel: 9891317, 9861939, Mob: 01711-593278, 01938-801608 Tel: 0951-61698, 0951-61676, 0951-62171, Mob: 01938-801716
107. Monhordi Branch 119. Naya Bazar Branch
Lake City, 8/1, Monohardi, Narsingdi. Arzoo Mansion, 55/3, Banshi Charan Sen Podder Street
Tel: 9445077, 9445377, (English Road-Tanti Bazar Square), Dhaka.
Mob: 01938-801701 Tel: 7394659, 57395523, 57394654, Mob: 01713-141986
108. Motijheel Foreign Exchange Branch 120. Netaigonj Branch
Zerin Mansion, 55, Motijheel C/A, Dhaka-1000. 21, R. K. Das Road,
Tel: 9550769, 9570829 Netaigonj, Narayangonj.
Mob: 01711-535664, 01711-543501 Tel: 7646099, 7648920
Fax: 9550504 Mob: 01713-060713
121. O. R. Nizam Road Branch 133. Rampura Branch
IPL, Atlanta Trade Center, 788/864, 2/1, East Rampura, DIT Road,
O.R. Nizam Road, Golpahar Circle, Chittagong. Rampura, Dhaka.
Tel: 321-2855936-38 Tel: 9356453-54, 9356200
Mob: 01713-107249, Fax: 2855939 Mob: 01730-317188, 01730-317196
122. Pabna Branch 134. Rangpur Branch
205, Haque Super Market, Abdul Hamid Road, Pabna. Azahar Plaza, Nababganj Bazar,
Tel: 0731-64478, 0731-63246 Dewanbari Road, Rangpur.
Mob: 01730-333635 Tel:0521-67426-7, 0521-67406, Mob: 01713-431319
123. Pagla Branch 135. Raozan SME / Agriculture Branch
Al-Haz Afsar Karim Bhaban, Pagla, 256, Hazi Ahsan Ullah Mansion,
Fatullah, Narayanganj. Tel: 02-7696683-4, 02-7696239 Thana Road, Fakirhat, Raozan, Chittagong.
Mob: 01938-801640, 01938-801697 Tel: 03026-56258, Mob: 01713-481710
124. Pallabi Branch 136. Ring Road Branch
Northern Khan Heights, Plot# 34, Main Road# 03, Baitul Aman Tower (2nd Floor), 840-41, Ring Road,
Block-D, Section# 11, Pallabi, Mirpur, Dhaka-1216. Adabar, Dhaka. Tel: 9137158, 9129290, 8155256
Tel: 9013444, 9013446, Mob: 01938-801643, Fax: 9013445 Mob: 01730-024096, 01938-801607
125. Panchagarh Branch 137. Ruhitpur Branch
Anwar Plaza,Holdin# 19, Tetulia Road, Panchagarh. Khokon Tower (1st & 2nd floor), Ruhitpur Boarding
Tel: 0568-62401, 0568-61210 Market, Keraniganj, Dhaka.
Mob: 01938-801663 Tel: 7766772, 7766773, Mob: 01938-801657
126. Patherhat Branch 138. Saidpur Branch
Bharateswari Plaza (1st floor), Bismillah Market, 1st & 2nd floor, Shahid Dr. Zikrul Haque
Noapara, Raozan, Chittagong. Road, Saidpur.
Tel:031-671620, 031-671610 Tel: 05526-73130-1, 05526-73133
Mob: 01711-728339, 01730-726984 Mob: 01713-431337
127. Panthapath Branch 139. Satkhira Branch
ENA Shakur Emarat (1st Floor), Meherun Plaza, Boro Bazar Road, Satkhira.
19/3, West Panthapath, Dhaka. Tel: 0471-65799, 0471-65801
Mob: 01938-803291, Tel: 9128325 Mob: 01713-186891
128. Patuakhali Branch 140. Satmasjid Road Branch
Holding# 11, S.S. Tower, Sadar Road, Patuakhali. House# 47, Road# 9/A, Dhanmondi R/A, Dhaka.
Tel: 044165194, 044165195, Mob: 01938-801658 Tel: 8191144, 8191162, 8191750, Mob: 01713-481709, 01938-801632
129. Pirojpur Branch 141. Savar Bazar Branch
Shamsunnahar Tower (2nd floor), Holding# 125, Amin Tower (2nd floor) 44-A, Savar Bazar Road,
Shahid Omor Faruque Road (Sadar Road), Pirojpur. Savar, Dhaka-1340.
Tel: 0461-63113-4, Mob: 01938-801733 Tel: 7741522-23, Mob: 01713-141985
130. Progoti Shoroni Branch 142. Shahjalal Uposhahar Branch
Azhar Comfort Complex (1st floor), Ga-130/A, Progoti Syed Plaza, 1st floor (Level-2), Multiplan Shahjalal City,
Shoroni, Middle Badda, Dhaka-1212. Main Road, Shahjalal Uposhohor, Sylhet.
Tel: 8834220, 8833976, 8816800, Mob: 01730-703440 Tel: 0821-721882, 0821-721553, Mob: 01730-703439, Fax: 0821-711861
131. Rajbari Branch 143. Shahzadpur Branch
Miah Tower (1st floor), Holding# 242-244, Nur Super Market, Monirumpur Bazar,
College Road, Rajbari Bazar, Rajbari. Shahzadpur, Sirajganj.
Tel: 0641-65800, 0641-65811, Mob: 01938-803292 Tel: 07527-64001, 07527-64003, Mob: 01713-481701
132. Rajshahi Branch 144. Shantinagar Branch
317, Rajshahi Association Bhavan (1st Floor), Alokar Mor, Green Peace, 41, Chamelibagh, Shantinagar, Dhaka-1217.
Ps: Boalia, Dist: Rajshahi. Tel: 9335963, 9337063, 9336178
Tel: 0721-821593-94, Mob: 01713-455551 Mob: 01711-541792, 01730-726986

ANNUAL REPORT 2016 455

145. Shafipur SME / Agriculture Branch 156. Tejgaon Branch
A-62, Hazi Osman Market, 315/B, Tejgaon I/A (1st floor), Nabisco Bus Stand
Shafipur, Kaliakoir, Gazipur. (adjacent Agrani Bank), Dhaka.
Tel: 02-49271210-2, Mob: 01730-317192 Tel: 9830045-7, Mob: 01938-801693, 01938-803282
146. Shimrail Branch 157. Thakurgaon Branch
Plot# 218, Haji Ibrahim Khalil Shopping Complex, Talukder Plaza (1st Floor), 1306, Shahid mohammad Ali
Shimrail, Siddergonj, Narayangonj. Road, Thakurgaon Sadar, Thakurgaon.
Tel: 7691072, 7693465, Mob: 01713-047804 Mob: 01938-801731
147. Singair Branch 158. Tongi Branch
Bahadur Mollah Super Market, (1st floor), Singair Bazar Razzak Plaza, 8/2, Anarkoli Roard, Tongi Bazar,
Road (Shahid Rafiq Sharani), Tongi, Gazipur.
Singair, Manikganj. Tel: 9816801-03
Mob: 01938-801730 Mob: 01730-317190
148. Sirajganj Branch 159. Uttara Branch
Apurupa Plaza, 199, S. S. Road, Ward# 03, Plot# 07, Road# 07, Sector# 04, Uttara R/A,
Sirajgonj Sadar, Sirajgonj. Uttara, Dhaka.
Tel: 0751-62711, 0751-62731-2 Tel: 58954739, 58954206
Mob: 01938-801700 Mob: 01711-593449, Fax: 58952004
149. Sonagazi Branch 160. Uttara Sonargaon Janopad Branch
Chakladar Market, 8, Thana Road, House# 02, Sonargaon Janopad,
Sonagazi, Feni. Sector# 11, Uttara, Dhaka.
Tel: 03325-76581-2, Mob: 01730-077786 Tel: 8991718-9, 8991597, Mob: 01938-801619
150. Sonargoan Branch 161. Uttarkhan Branch
Ambia Plaza, Mograpara Chowrasta, Kazi Tower, Masterpara Bazar,
Sonargoan, Narayangonj. Uttarkhan, Dhaka-1230.
Tel: 7656339, 7656076, Mob: 01938-801679 Tel: 7914090, 7914091, Mob: 01938-801655
151. Sreemangal Branch 162. Vatara Branch
Afzal Plaza, Moulivibazar Road, Shahida Plaza, House# 4261, Ferazitola, Solmaid,
Sremongal, Moulivibazar. Vatara, Bashundhara,Badda, Dhaka.
Tel: 08626-72078-79 Tel: 8432760-63, 8432767,
Mob: 01730-333632, Fax: 08626-72080 Mob: 01938-801642
152. Sunamgonj Branch 163. Velanagar Branch
Old Bus Stand, Major Iqbal Road, Sunamganj. Khadija Mension (1st & 2nd floor), Dhaka-Sylhet
Tel: 0871-61219, 0871-61262 Highway, Velanagar, Chinishpur, Narsingdi.
Mob: 01938-801639, Fax: 0871-61263 Mob: 01938-803286
153. Sylhet Branch 164. Wari Branch
358, East Zinda Bazar, Sylhet-3100. S.B.A.L. Sahadat Bilash, 25, Rankin Street, Wari, Dhaka.
Tel: 0821-712637, 0821-712623, 0821-712653 Tel: 02-9589158, 9532086-7
Mob: 01711-923159 Mob: 01938-801678, Fax: 02-9573445
154. Sylhet Gobindaganj SME / Agriculture Branch 165. Zirabo Branch
Relation Tower, Gobindagonj Point, Araf Super Market,(1st floor),
Gobindagonj Notun Bazar, Chhatak, Sunamgonj. Zirabo Bus Stand, Savar, Dhaka.
Tel: 0871-31023, 0871-31024, Mob: 01713-481748 Mob: 01938-801719
155. Tangail Branch
Tangail Tower, Main Road, Tangail Sadar, Tangail.
Tel: 0921-51443, 0921-61307
Mob: 01730-703442, Fax: 0921-62643
FORWARD LOOKING
STATEMENTS
This annual report contains forward looking statements The Bank does not guarantee in any way that the
which are based on assumptions, estimates, believes expressions made or implied in forward looking
and future expectations. Forward looking statements statements would be materialized. The Bank does not
may include but not limited to future plan, performance, also take any responsibility to update, modify or revise
growth of business, profitability and cash flow of the any forward looking statement contained in this annual
Bank which are subject to known and unknown risks, as report irrespective of whether those are changed by any
a result, actual performance or results may be adverse new events, information or future development or by any
or materially differ from original plan, assumptions, other factors.
estimate or expectations expressed or implied in forward
looking statements. Therefore, undue reliance should not
be placed on such forward looking statements for making
any decisions, transactions or investments with the Bank.

Actual results may materially differ from those implied

or expressed in forward looking statements for a number
of factors which may include but not limited to the
following:

Changes in local and international political,

economic, business and financial conditions
including changes in fiscal, monetary and trade
policies;

Changes in local and international financial

and capital markets, interest rates, forex rates,
commodity prices;

Changes in confidence of customers, consumers,

investors, depositors and borrowers;

Changes in consumer behavior and technology;

Changes in local and international legal and

regulatory framework;

Changes in market structure and competitive

condition; and

Unforeseen natural disasters.

ANNUAL REPORT 2016 457

LIST OF ABBREVIATIONS
ADB Asian Development Bank HTM Held to Maturity
ADP Annual Development Program IAS International Accounting Standards
ALCO Asset-Liability Management Committee IBP Inland Bills Purchased
ATA Anti- Terrorism Act ICAB Institute of Chartered Accountants of Bangladesh
ATM Automated Teller Machine IC&CD Internal Control & Compliance Division
BACPS Bangladesh Automated Cheque Processing System ICC Internal Control & Compliance Risk
BAS Bangladesh Accounting Standards ICB Investment Corporation of Bangladesh
BB Bangladesh Bank ICMAB Institute of Cost & Management
BBTA Bangladesh Bank Training Academy Accountants of Bangladesh
BDT Bangladesh Taka ICT Information & Communication Technology
BEFTN Bangladesh Electronic Fund Transfer Network IDA International Development Agency
BFIU Bangladesh Financial Intelligence Unit IFRS International Financial Reporting Standards
BFRS Bangladesh Financial Reporting Standards IMF International Monetary Fund
BIBM Bangladesh Institute of Bank Management IPFF Investment Promotion and Financing Facility
BRPD Banking Regulation and Policy Department IPO Initial Public Offering
BSA Bangladesh Standards on Auditing IT Information Technology
BSEC Bangladesh Securities and Exchange Commission L/C Letter of Credit
BSP Bangladesh Sanchaya Patra LIBOR London Inter-Bank Offering Rates
CAMLCO Chief Anti Money Laundering Compliance Officer LIC Low Income Country
CAMELS Capital Adequacy, Asset Quality MBS Mobile Banking Services
Management, Earnings, Liquidity and MCR Minimum Capital Requirement
Sensitivity to Market Risk MICR Magnetic Ink Character Recognition
CAR Capital Adequacy Ratio MLPA Money Laundering Prevention Act
CD Current Deposits MTMF Medium Term Macroeconomic Framework
CDS Central Depository System MVA Market Value Added
CEO Chief Executive Officer NAV Net Asset Value
CFO Chief Financial Officer NPL Non-Performing Loan
CIB Credit Information Bureau OBU Off-Shore Banking Unit
CRO Chief Risk Officer PEP Politically Exposed Persons
CNG Compressed Natural Gas POS Point of Sales
CPI Consumer Price Index PRSP Poverty Reduction Strategy Paper
CRAB Credit Rating Agency of Bangladesh Limited PSP Pratirakha Sanchaya Patra
CRISL Credit Rating Information and Services Limited KYC Know Your Customer
CRR Cash Reserve Requirement RBCA Risk Based Capital Adequacy
CSR Corporate Social Responsibility REPO Repurchase Agreement
CTR Cash Transaction Report RBIA Risk Based Internal Audit
DBBL Dutch-Bangla Bank Limited RMG Readymade Garments
DBBF Dutch-Bangla Bank Foundation RMU Risk Management Unit
DEG German Investment and Development Company RMP Risk Management Paper
DOS Department of Off-site Supervision RMD Risk Management Division
DRS Disaster Recovery Site ROA Return on Asset
DSE Dhaka Stock Exchange Limited ROE Return on Equity
ECAI External Credit Assessment Institution ROI Return on Investment
ECB European Central Bank RPGCL Rupantarita Prakritik Gas Company Limited
ECRL Emerging Credit Rating Limited RWA Risk Weighted Assets
EDF Export Development Fund SCB State-owned Commercial Bank
EFT Electronic Fund Transfer SLR Statutory Liquidity Ratio
EGBMP Enterprise Growth and Bank Modernization Programme SMA Special Mention Account
EMI Equal Monthly Installment SOE State Owned Enterprise
EMV EuroPay, MasterCard and VISA SMS Short Message Service
EPS Earnings Per Share SME Small and Medium Enterprise
EPZ Export Processing Zone SND Special Notice Deposit
ETP Effluent Treatment Plant SRP Supervisory Review Process
EU European Union SREP Supervisory Review Evaluation Process
EVA Economic Value Added STR Suspicious Transaction Report
FCB Foreign Commercial Bank TOR Terms of Reference
FDI Foreign Direct Investment UAE United Arab Emirates
FY Financial Year (July-June) USA United States of America
FMO Netherlands Development Finance Company UCP Uniform Customs and Practice
FT First Track US $, USD US Dollar
GDP Gross Domestic Product VAT Value Added Tax
GFSR Global Financial Stability Report WEO World Economic Outlook
GOB Government of Bangladesh WTO World Trade Organization
HFT Held for Trading WEF Women Entrepreneur Fund
HR Human Resources WDV Written Down Value
 Dutch-Bangla Bank Limited
Registered Office: Sena Kalyan Bhaban
195, Motijheel Commercial Area, Dhaka-1000, Bangladesh
PROXY FORM

I/We _________________________________________________________________________________________________________
of ____________________________________________________________________________________________________________
being a Member of Dutch-Bangla Bank Limited do hereby appoint
Mr./Ms. ______________________________________________________________________________________________________
of ____________________________________________________________________________________________________________
or (failing him/her) Mr./Ms. ____________________________________________________________________________________
of ____________________________________________________________________________________________________________
as my/our proxy, to attend and vote on my/our behalf at the 21st Annual General Meeting (AGM) of the Company
to be held on Thursday, March 30, 2017 at 10.00 A.M. at Convention Hall (ground floor) of Senamalancha, Dhaka
Cantonment, Dhaka, Bangladesh and at any adjournment thereof or at any ballot to be taken in consequence thereof.

Signed this _______________________ day of March 2017

_______________________
Signature of Member

Folio / BOID No. : ___________________________________

____________________ Revenue
Signature of Proxy No. of Shares : ___________________________________
Stamp Tk. 20.00
N.B.:
(1) This form of Proxy duly completed and must be deposited at least 72 hours before the AGM at the Companys
Registered Office. Proxy is invalid if not signed and stamped as indicated above.
(2) Signature of the Member shall agree with the specimen signature registered with the Company.

Dutch-Bangla Bank Limited

Registered Office: Sena Kalyan Bhaban
195, Motijheel Commercial Area, Dhaka-1000, Bangladesh

ATTENDANCE SLIP

I hereby record my attendance at the 21st Annual General Meeting (AGM) of the Company being held on Thursday,
March 30, 2017 at 10.00 A.M. at Convention Hall (ground floor) of Senamalancha, Dhaka Cantonment, Dhaka, Bangladesh.

Name of Member
Folio / BOID No.
Name of Proxy (if any)

Dated: March 30, 2017 Signature: __________________________________

N.B.:
Members attending the meeting in person or by proxy are requested to complete the attendance slip and deposit the
same at the entrance of the meeting hall.