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Expatriate dream to inspire...

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“Patriotism is supporting your country

all the time, and your government
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when it deserves it.”

-Mark Twain
We dream of a happy and prosperous
Bangladesh. The altruistic love and
patriotism of the people and glorious
history of the sacrifice provide us the
grit to dream. This bravery persuades
us to convert the intractable limita-
tions into strength and vigour to
herald a journey towards the enlight-
ened path of prosperity.
Annual Report 2017

CONTENTS
01
NRBC Bank at a Glance
Letter of Transmittal 05
Notice of the 5th Annual 06
General Meeting

Corporate Profile 08

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Vision, Mission & 10
Strategic Objectives

Chronicles 12-13
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Profile, Review and Report and Governance
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Committees
Message from the Chairman 16-17 Key Financial Indecator 42-46
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Managing Director & CEO 18-22 Directors’ Report 48-64

Review

Board of Directors’ Profile 24-28 Audit Committee Report 66-70

Sponsors 30-34 Credit Ratings 71
Committees of NRBC Bank 36-37 Corporate Governance 74-84
04 05
Risk Management & Integrated Reporting
Basel -III
Risk Management 86-92 Philanthropic Activities 106-107
Market Discloseure under 93-103 Human Capital 110-111
Basel-III
Agent Banking 114-116
Green Banking 118-119

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Financial Statements NRBC Outlook
Managing Director and CFO’s 120 The Management & 231-232
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Responsibility Statement Executives
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Auditors’ Report & Audited 122-230 The Memorable Events 233-235

Financial Statement
NRBC Bank Deposit Products 237-240
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Branch Networks 242-246

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 Annual Report 2017

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4 NRB Commercial Bank Limited

 Letter of Transmittal

Letter of Transmittal
All Shareholders
Bangladesh Bank
Bangladesh securities & Exchange Commission
Registrar of Joint Stock Companies & Firms

Subject : Annual Report of NRB Commercial Bank Limited (NRBC Bank) for the year ended 31st December
2017.

Dear Sir(s)

We are pleased to present before you the Bank’s (NRBC Bank Limited) Annual Report 2017 along with the Audited
Consolidated Financials, as at and for the year ended 31st December 2017.

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The Report includes consolidated Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes
in Equity, Liquidity Statement, along with Notes thereon and Directors’ Report of NRBC Bank for the year ended 31st
December 2017.

The Report is forwarded for your kind information and record.

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Best regards
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Yours truly,
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Md. Mozammel Hossain

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Company Secretary
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5
 Annual Report 2017

Notice of the 5th Annual General Meeting

Notice is hereby given that the 5th Annual General Meeting (AGM) of NRB Commercial Bank Limited will be held
on 21st July 2018, Saturday, at 11:00 am at the Boardroom of the Bank, Silver Tower, 52 Gulshan Avenue, Gulshan,
Dhaka to transact the following business:

Agenda
1) To receive, consider and adopt the Audited Financial Statements of the Bank for the year ended 31st
December 2017 together with the Auditors’ and Directors’ Report thereon.

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2) To declare 8% stock and 2% cash dividend for the year ended 31st December 2017 as recommended by the
Board of Directors.

3) To Elect/Re-elect/Appoint Directors in accordance with relevant Act and Memorandum and Articles of
Association of the Company.
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4) To appoint Auditors and to fix their remuneration.
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By order of the Board of Directors

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Md. Mozammel Hossain

Company Secretary

Dated : Dhaka, 21st April 2018

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NOTES:

i. The Book closure date has been fixed on 30th April, 2018.
ii. Members whose names appeared in the Members Register as on Book closure date i.e. 30th April 2018 are
eligible to attend the 5th Annual General Meeting and receive dividend.
iii. A Member entitled and vote at the Annual General Meeting may appoint a proxy to attend and vote on his/
her stead.
iv. The instrument appointing proxy duly filled and stamped Tk.20.00 must be submitted at the Registered
Office of the Company at least 72 (Seventy Two) hours before the time for holding of the meeting.
v. Attendance of the shareholder(s)/proxy(ies) shall be recorded at the entrance of the venue. Attendance
slip has to be signed and submitted at the Registration Counter.

6 NRB Commercial Bank Limited

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Corporate Profile

7
 Annual Report 2017

Corporate Profile
Publication Facts & Figure as on 31 December 2017

Name of the Company Publication Chairman

NRB Commercial Bank Limited Annual Report-2017 Mr. Tamal S M Parvez
Registered Office Auditors Chairman –Executive
Red Crescent Jashim Trade Centre MABS & J Partners Committee
14, Motijheel
114, Motijheel C/A
C/A Hoque Bhattacharjee Das & Co. Mr. Abu Bakr Chowdhury
Dhaka-1000, Bangladesh Chartered Accountants
Phone : 880-02-9573422-30
Fax: 880-02-9573421 Credit Rating Agency Chairman – Risk Management
Swift Code: NRBB BDDH Credit Rating Information & Committee
Email: [email protected] Services Limited (CRISL) Mr. Mohammed Adnan Imam
www.nrbcommercialbank.com
Legal Form Tax Consultants Chairman – Audit Committee

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Public Limited Company K M Hasan & Associates Mr. Rafikul Islam Mia Arzoo
Date of Incorporation Authorized Capital Managing Director & CEO
February 20, 2013 Tk. 10,000 Million Mr. Khondoker Rashed
Maqsood
Formal Inauguration Capital
.c Company Secretary
April 2, 2013 Tk. 6,780.55 Million Mr. Md. Mozammel Hossain
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Core Banking Segment Paid-up Capital Chief Anti Money Launder
Conventional Banking Tk. 4,900.00 Million Officer
Tk. 5,292.00 Million (Subject to Mr. Md. Mukhter Hosain
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approval of 8% Stock Dividend in

Agent Banking the 5th AGM) Chief Risk Officer
Bangladesh Bank Approval : May 29, 2014 Mr. Md. Mukhter Hosain
Inauguration : December 17, 2015
Employees Chief Financial Officer
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Agent Point : 551 Agent Points

No. of Official : 617 Mr. Harunur Rashid
No. of Staff : 12
Name of NRBC Bank’s Subsidiary Deposits Loans & Advances
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NRBC Bank Securities Limited 45,236.44 Million 43,000.28 Million

Incorporation : September 20, 2015
Return on Investment/Equity (ROI/ROE) Reserves
Registered Office : 114 Motijheel
15.30% Tk. 737.95 Million
C/A, Dhaka-1000
Return on Asset (ROA) Total Assets
1.67% Tk. 57,529.35 Million
Network Capital to Risk Weighted Assets Earnings per Share
Total Branches : 61 Ratio (CRAR) Tk. 1.89
Total ATM : 46 13.58%
Total RMA : 152
Total Nostro Account : 12 Net Asset Value per Share Net Asset Value
Tk. 13.00 Per Share Tk. 6,410.80 Million
Net Operating Cash flow per share
(Tk. 5.01) Per Share

8 NRB Commercial Bank Limited

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Vision
Mission
Strategic Objectives
9
 Annual Report 2017

The bank shall devote in creating confidence for invest-

ment among the Bangladeshi expatriates offering them
desired services, attractive profitability and secured
investment through our various financial products.

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The bank shall create extra-ordinary opportunities to
the intending wage earners in getting jobs abroad To become a peerless bank in terms of providing efficient &
through our dependable and reliable intermediary innovative banking services, safeguarding depositor’s interest,
services. fulfilling shareholders desire, supporting economic growth of the
country with particular attention to channelize regular inflow of
The bank shall arrange need based effective training
foreign remittance of Bangladeshi expatriates working abroad
and education programme for the intending FC wage
earners of Bangladesh to survive against competitors of
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and also the inflow of idle and less remunerative fund held with
wealthy NRBs.
other countries.
The bank shall deliver service excellence through
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providing existing & innovative products in cost & time
efficient manner, to its all retail & corporate customers.
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The bank shall constantly focus and monitor the chang- Create opprtunities for NRBs to invest their earnings, utilize their profession-
ing needs and aspirations of its customers, to develop al experties development of Bangladesh.
new and reengineer the process of service delivery.
Channelize idle and less remunerative fund of NRB.
The bank shall always be vigilant to maintain banking
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Attract FDI of NRBs through diverse products and projects.

business risks within its tolerable limit in order to
protect depositor’s interest and ensure highest return Balanced and sustainable growth.
to the shareholders. Maximization of Shareholders’ Wealth.
The bank shall be the forerunner in exploiting new Accomplish the long cherished desire and dream of NRBs to have a bank of
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sources of fund such as assets securitization, issuance their ‘own’.

of mutual fund etc., for addressing the needs of newly
Excellence of manpower efficiency through attractive compensation
emerged financing areas such as SME financing, factor- package, promoting staff moral through training, development and career
ing, micro finance, IT based products, housing financing plan.
etc. with a view to furthering the economic growth of
To invest in the thrust sector for the overall economic development.
the country.
technology transfer with the help of the well educated professionals and
The bank shall create an enabling environment, adopt experienced sponsors of the bank to have a green banking practice.
and nurture carefully a team-based culture where
people will be motivated to accept banking challenges Ensure best corporate Social Responsibility (CSR) practice.
and to face other competitors. Promise to make the world of NRBC Bank a little bigger, everyday.

10 NRB Commercial Bank Limited

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Chronicles

11
 Annual Report 2017

May 31, 2011

Application for Bank License April 17, 2012
Letter of Intent [LOI]

February 20, 2013

Certificate of Incorporation
February 20, 2013

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Certificate for Commencement of Business
February 23, 2013
First Meeting of Board of Directors
March 10, 2013
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Bank License from Bangladesh Bank
March 10 , 2013
Primary Dealership license
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April 02, 2013
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Inauguration Ceremony
April 17, 2013
Branch licence
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April 18, 2013

Opening of First Branch
May 13, 2013
Authorized Dealer permission
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June 16, 2013

Clearing House Membership
August 03, 2013
SWIFT Membership
August 04 , 2013
1st RMA [Relationship Management Agreement]
August 12, 2013
Statutory Meeting of the Shareholders
August 28, 2013
Membership with VISA International
December 29 , 2013
Commencement of NRB Desk
December 29 , 2013
Opening of 10th Branch [Mugrapara]

12 NRB Commercial Bank Limited

 NRBC Bank’s Chronicles
January 23, 2014 January 07, 2015
Achievement of Opening Training
Ten Thousand Accounts Institute
April 02, 2014 March 08, 2015
Launching of Achievement of
Internet Banking Fifty Thousand Accounts
April 02, 2014 July 12, 2015
Launching of VISA Card Opening of
August 11, 2014 30th Branch [Rangpur]
Opening of 20th September 20, 2015
Branch [Rajshahi] Formation of
Subsidiary Company:
NRBC Bank Securities Ltd.

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December 17, 2015
May 26, 2016
Launching of
Achievement of One Lac Accounts
Agent Banking
November 24, 2016
December 30, 2015
Opening of 50th Branch
Opening of
[Chandina,Comilla]
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December 12, 2016
Resume of Commercial Operation
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of NRBC Bank Securities Ltd.
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December 28, 2016

Opening of first Mohila Branch
[Dhanmondi]
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10th September 2017

Achievement of One Lac Fifty thousand Account
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13th November 2017

Strategic Partnership with ROBI Axiata Ltd
[Safetynet fund disbursement]

24th December 2017

Opening of 60th Branch [Bhairab, Kishoregonj]

NRBC Bank’s Chronicles

13
 Annual Report 2017

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14 NRB Commercial Bank Limited

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Chairman’s Message
Managing Director and CEO’s Message
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From the Chairman Desk
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Dear Fellow Shareholders It is definitely enterprising to call for attending the

Annual General Meeting and present before you the
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Welcome to the 5 Annual General Meeting of NRB

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Audited Financials of the Bank for the year ended on 31st
Commercial Bank Limited. As the Chairman of the
December 2017. The Financials presented before you is
Bank’s Board of Directors, I take this privilege to thank
the result of trust between our valued customers and
you for joining us today. Your presence is indeed a true
Management. And we take pride to have created such
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testimony to your attachment and support for the Bank.

an atmosphere of trust building.
The year 2017 was a very challenging year for us at NRBC
While the manpower of any organization is the prime
Bank. As the Chairman of the Bank, I have come to the
factor of running and making good shape of the
forefront reminiscing what happened in 2017 and what
organization, the NRBC Bank has a team of experienced
our plans are for the years ahead. Recalling the past of
Management to cater the needs and services those
the formation days, NRBC Bank was established carrying
are required for the overall development of the Bank.
dreams of 53 NRBs across the globe. Our bank is an
A Team of experienced bankers are managing the
actualization of the ideals and goals set by the Sponsors.
affairs of the Bank under the commendable leadership
It is the dream and foreseeing the future of the Bank.
of the Management led by the new enterprising Chief
The growth of the Bank has marked is the result of the Executive Officer (CEO). With the expansion of network
relentless and concerted efforts made by the employees of the Bank, the Team of the Bank shall also be widened
of the Bank. The Board and all its Committee Members accordingly.
extended full length support to the Management in the
The banking sector of the country is facing challenging
pace, speed and impetus of overall performances. The
days in recent times. Nevertheless, it is expected that the
performances and its yield could have been even higher
economy of the country shall be as good as the previous
if the Bank could have stayed its course. Nevertheless
year. In order to make the results efficacious as it had
the Bank has achieved success despite trying times.
been the original dream of all of the Honorable Sponsors
More success awaits us all in the days ahead.
and Shareholders, it is required that all of us regardless

16 NRB Commercial Bank Limited

of the Directors and Sponsors and the Management and triumphant year for NRB Commercial Bank Limited.

From the Chairman Desk

have to work hand in hand. Therefore, it is my hope that
I take this opportunity to express my gratitude to
the year 2018 shall also be another year of reaching a
my fellow members of Board of Directors, Sponsors,
milestone.
Shareholders, record our appreciation for our staff
Since inception NRBC Bank has been rendering members for their sincerest endeavors. I must put on
specialized services to all its valued customers with a record my deep gratitude to Bangladesh Bank for their
number of package of products and services. However, continued support, cooperation, good advices and
the vision for progress has evolved with the change. insightful guidance.
While previously NRBC Bank used to focus on corporate
May Almighty bless and protect us in our every future
deposits, the Bank is now bent on leaning towards retail
endeavors.
banking. Under the leadership of the new CEO, it is my
hope that this trend shall prove to be a rejuvenating
factor for the Bank’s development in the long run. This
trend of focusing on retail business shall be on with full
force, enriched with new products to be launched soon.
The customers and the people of the country would be
able to get the taste of new services from the end of the

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Bank. It is our challenge to maintain and even perform
Tamal S M Parvez
better in the year 2018. Similarly on the other hand, it
Chairman
is expected and hoped that the well wishers and valued
customers of Bank shall keep maintaining their trust
with the Bank.
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The vision and mission of the Bank has been redefined
at the end of the last year. The Bank has set the goal
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of becoming one of the most technologically advanced
companies in the country. It is my hope that with the
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correct balance of implementation of cutting edge tech

in the banking sector of Bangladesh, the goal to become
a peerless bank in terms of providing efficient and
innovative banking services, safeguarding depositors’
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interests, fulfilling shareholders’ desire, supporting

economic growth of the country with particular attention
to channelize regular inflow of foreign remittance of
Bangladeshi expatriates working abroad and also the
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inflow of the idle and less remunerative fund held with

wealthy NRBs.
Despite the odds, NRBC Bank has grown in the past five
years. It shall keep going in the same way with much
more speed and strength. This has been possible due
to the support the valued customers have extended
to us. I am beheld with respect to the customers who
have extended their hands of co-operation and support
and I have every confidence that the support shall be
continued.
We have played role in building a strong and sound base
of the Bank and on a greater scale, we are continuously
striving to improve the economy of the country and its
people. We are committed and we vow to honor our
commitment.
We have many challenges, but we have the resources,
capabilities and urge to overcome those challenges. I
hope and believe that, 2018 would be a more vibrant

17
 Words from the Managing
Director & CEO
Dear Shareholders
Let us take a moment to remember 2017.
Will this be a year where we would look back years
later and perceive it as the time when we finally moved
toward rediscovering our root as a bank formed by the
expatriates? Will we see it as a year of change, which
drove us to come out of the shadows to redefine NRBC
as one of the finest banks in the country? Time will
speak in due course but we have every reason to believe
NRBC Bank shall solidify its ground as an apex banking
institution by staying agile and adaptive, remaining
sharp and demonstrating sheer dedication toward

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building a culture of openness while venturing into the
realm of cyberspace and borderless banking. We hope
the coming year will be more rewarding in every sense
of the word and we need co-operation from all of you in
Khondoker Rashed Maqsood
this regard.
Reminiscing the past
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Considered as the pioneer of transaction banking in
Bangladesh, Mr. Maqsood was the Managing Director &
Despite the odds and pebbles that stalled our journey Citi Country Officer for CitiBank N.A. Bangladesh for over
6 years. Prior to that, he was working at Citi Indonesia
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toward progress in the declining financial climate in the
as Managing Director for global transaction services. Mr.
domestic arena, it was our collective belief that NRBC Maqsood has 25 years of outstanding banking experi-
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would also mark a remarkable growth in all aspects. It ence at home and abroad.
did. While our number of branches stood at 51 in the
In his long career he worked at CitiBank N.A. for more than
year 2016, it rose to 61 at the end of 2017 giving a wider
22 years in different positions since 1995. Mr. Maqsood
network base across the nation. However, this year, we comes with vast experience in Corporate & Correspondent
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are leaning more toward digitalization of our services. Banking, Private Equity, M&A, Back Stopped Facility, Debt
Our deposits grew from BDT 4,559.05 cr. to BDT 4,711.82 Restructuring, International Bond, and Securities & Funds
cr., loans and advances from BDT 3,740.79 cr. to BDT Services. He is a strong proponent of inclusive financing and
innovative CSR models.
4,295.06 cr. which is a growth of 3.35% and 14.82%
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respectively over that of the year 2016. preceding year. With the declaration of dividend at the last
Annual General Meeting, our paid-up-capital also increased
As of 31st December 2017, the Advance Deposit Ratio
from BDT 457.94 cr. to BDT 490.00 cr. These figures are a
(ADR) stood at 92.18% which was on the higher side
culmination of multiple factors coming together and falling
considering the financial climate of that year. ADR
into pieces, which is a testament to the strength of NRBC
changes according to the ever-changing condition
Bank despite the stormy financial climate that has been
of banks’ assets and liabilities. As such, in line with
encompassing the financial sector last year.
Bangladesh Bank guidelines, we have been and still are
working on reducing to below 83.5% in the current year. Apart from the business, 2017 also marked as a year
where NRBC Bank made some significant contributions
In 2017, while our Net Asset Value (NAV) increased from
effectively carrying out the corporate social responsibility
BDT 12.42 to BDT 13.00 and Earnings per Share (EPS)
as per CSR guidelines of Bangladesh Bank. One of our
stood at BDT 1.86 (Solo) which we plan to improve the
prime initiatives was to promote financial literacy of
coming year. We also witnessed a remarkable growth of
2,500 RMG workers and improve access to sustainable
36.69% and 33.01% in the import and export business.
financial products and services to the RMG workers
Our cost of fund also decreased considerably from 6.91%
through a partnership agreement with Swisscontact – a
to 6.47% owing to our focus into retail and SME sectors.
renowned Swiss independent foundation based in Zurich
In the year 2017, our operating profit rocketed to BDT that has earned its reputation in promoting sustainable
200.37 cr., which is an increase of 16.93% over that of the economic growth in developing countries.

18 NRB Commercial Bank Limited

In a Broader Spectrum sector of Bangladesh. We do not merely want to sit on

Words from the Managing Director & CEO

the sidelines and witness the change, we want to be an
The year 2017 has been a year of achievements and
embodiment of the transformation, a transition that
challenges - especially for Bangladesh. GDP growth was
would separate us from all others.
7.28% for fiscal year 2017 whereas projected was 7.24%.
Non-RMG products, in aggregate, was able to achieve the Engagement of NRB Diaspora and Increasing
annual target. Targeted growth for non-RMG export earnings Remittance Inflow
was 7.4% and actual growth achieved 8.5%. Investment, as Over the past few decades, remittances from the NRB
always, has played a major stimulus to growth of the nation. diasporic community have become an increasingly
The banking sector on a global scale, priorities were important source of external funding for many
shifted to recruiting and retaining key talent, investing developing nations, including Bangladesh. While
in new customer-facing technology, developing migrants have always demonstrated a trend for sending
new products. Priorities were given on optimizing money back home, only recently has this remittance
digitalization and self-serving of customer’s channels, begun to play an important role in the economies of
strategic efficiency and cost reduction. Equity valuations the developing countries like ours. For Bangladesh,
have continued their upward movement and are thinking on a grander scale, it has become imperative to
near record highs, as central banks have maintained recognize that remittances can dramatically increase the

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accommodative monetary policy settings amid weak national gross domestic product (GDP) by a significant
inflation. This is part of a broader trend across global percentage and, hence, will play a vital role in shaping
financial markets, where low interest rates, an improved the economic progress of the nation.
economic outlook, and increased risk appetite boosted The remittance sent by Bangladeshi expatriates has not
asset prices and suppressed volatility. been at its best in 2017. However, the inflow is getting
Our banking sector is looking to reduce the
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interest rate down to single digit to boost up
the country’s economy as the low interest
Remittance Trend for the Year 2017
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rate helps accelerate economy. Bangladesh
Bank can play a vital role in facilitating the 1600
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1418.58

interest rate reduction by creating more

transparency in the banking and NBFI 1267.61 1400
segment. 1214.61 1214.75
1162.77
1160.02
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1115.57
Recently, Bangladesh Bank has already re- 1077.52
1092.64 1200
fixed the CRR at 5.5 percent for commercial 1009.44
banks on bi-weekly average basis from 6.5 940.75 1000
percent. The government has also taken a 856.87
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decision to allow state agencies to deposit 800

50 percent of their funds to deposit in Jan2017 April2017 July2017 Oct2017 Jan2018
private banks, up from the ceiling of 25
percent, to tackle the liquidity crisis in the
sector. The decisions on decrease of CRR
and deposit of the funds of state agencies in
private banks is time befitting. Remittance Forecast: Jan 2017 – June 2018
1800
On with the Future
Coming out of the shadows 1600

NRBC Bank, since its inception, has been 1400

hailed as one of the leading 4thgeneration 1200

banks in the banking sector of the country.
However, as the year 2017 has perished 1000

with notable achievements, we plan 800

to come out of the shadows of the 4th
generation branding. We plan to re-brand Jan 2017 Apr 2017 Jul 2017 Oct 2017 Jan 2018 Apr 2018 Jul 2018
600

NRBC to standout among all the banks and

be a leader in the re-emerging banking

19
 Annual Report 2017

on a higher side this year. Bangladesh Bank reports fast-changing demands from customers, today we are
demonstrated that during the FY 2016-17 the inflow providing services through different channels, like ATM,
was USD 12769.45 million which was equivalent to Credit Cards, Debit Cards, Mobile Banking, Internet
BDT 1010.99 billion. This time around the figure has Banking and we are on our way toward stepping into the
already surpassed that of the previous year. Overall, the world of Cyberbanking.
remittance trend is going up in the present year and the
This year NRBC Bank will invest more in procuring state
forecast shows that as well.
of the art technology. We will formulate a strategic plan
NRBC Bank desires to increase its remittance inflow based on advanced technological applications to deliver
with greater engagement of the NRB diaspora. We services with utmost efficiency. The ultimate goal is to
already have a dedicated ‘NRB Desk’ which serves as take us to an international standard with reliance on
a symbol for our dedicated services to the expatriates. technologies. This path should, in fact, transform us into
This year we plan to turn it to a more effective medium a paperless organization within a short period of time.
of remittance point through which we can engage more Technology-driven business models followed by the
expatriates toward inward remittance supply. We plan to banks and financial intuitions ensure better and faster
set up remittance points at as many places as possible, services to the clients. Furthermore, banks adopting
with employees speaking the language of the remitters. technology are more profitable and reduce risks as
they gain maturity in offering such services. Our bank

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Increased Focus on Core-business
would like to introduce international standard core
2018 shall be a year that marks our increased focus on banking software to manage risk and improve its service
concentration on core-banking business. The year 2017 standards.
had shown a declining financial climate all through to
the end. The outcome was that mainstream banks were We are moving toward a new era of banking where
becoming rather reliant on non-core business income
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NRBC Bank will set itself apart from its peers going full
to build a result-driven portfolio. This also made an on automation regarding the banking system, which will
impact on our year end balance sheet, as the year 2017 also redefine how we perceive banking in Bangladesh.
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income from core business stood at BDT 10,294.02 lac, Purposive Branding: Tapping the NRB factor
while from non-core business was at BDT 19,672.88 lac.
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Apart from working with loans and investments, we

However, this year, we have made a strategic decision on
plan to enhance our image in the eyes of customers
focusing on core business like it was done never before.
by creating strong brand equity. The term NRB itself is
Into the Cyberspace: Banking without Borders an unique value proposition that creates a distinctive
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After the industrial revolution, the revolution of internet image in customer’s mind especially to expatriates.
and cyberspace has been hailed as the most significant “Probashir Shopno”, our brand statement holds us into
development, and in the evolutionary process today a distinguishing position. Moreover, we are offering
banks have evolved into ‘fintech’. Financial them a diversified product line and secured investment.
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technology has grown explosively, and “Digital payment systems Our target is to bring widely segmented
fintech, which originally referred to can do more for equality non-residents under an umbrella in order
computer technology applied to the back in poor countries than to accelerate regular inflow of foreign
office of banks or trading firms, now they can do anywhere remittance to flourish our economy.
stands for a broad variety of technological else, and we would like Eventually, we are optimistic to become
them to emerge there the leading brand among non-residents
interventions into personal and commercial
even if it takes longer in Bangladesh where they can rely on investing
finance. richer countries” their hard-earned foreign currency and
This way, abstract changes have affected - Bill Gates being a significant part of economic
the banking sector worldwide due to the development for their home country.
major impact of developments and trends
Offering Tailor-made services and products
in information and communication technology, business
intelligence, and risk management strategies. They are Banking is becoming more about tailor-made
constantly engaged to get returns from the investments personalized services rather focusing on brands. The
in IT. This has computers and communications days of cashing in on brands only are becoming a thinning
technologies enable banks and financial institutions line. In order to create brand loyalty, we plan to connect
to expand their reach and to offer technology based to the customers on a more personal level focusing on
products to a wide spectrum of clientele. We, with the the issues they care about by creating products with a
rest of the world, want to revolutionize our day-to-day deeper meaning to them.
banking through automation and digitalization. To meet

20 NRB Commercial Bank Limited

Recently, we have already introduced “Missed Call Fortunately, NRBC already has in its arsenal a bunch of

Words from the Managing Director & CEO

Balance Inquiry Service” for the very first time in dynamic officials who are constantly willing to work not
Bangladesh with a view to provide more personalized only from the mainstream but also from the fringe. Our
services to our customers nationwide. We hope this Management is equipped with people having wide array
will develop an even deeper and engaging interactions of expertise in multifarious sections of banking industry.
with our customers. NRBC Bank believes that customer We take pride in our workforce, as we are a culmination
loyalty can be earned through creating effective of what we do.
relationships with the clients, earning of trust. Because Implementation of BASEL III
once the loyalty is ensured, the client shall stay with the
Bank for life. NRBC Bank has strategized for full implementation of
BASEL III by January 2020. On the road toward this goal,
Re-aligning Strategy: Redefining Retail and Alternate
the Bank has focused on strengthening risk management
Delivery Channel
and control environment rather than increasing capital to
We have realigned our strategy in 2018 with enhanced cover up weak risk management and control. In parallel
focus on promoting the retail and alternate delivery to business growth, the bank effectively manages its
channels to further the business of the bank through capital to meet regulatory requirement considering the
greater financial inclusion. The primary goals of financial risk profile.

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inclusion, as defined by United Nations is providing
The Bank follows the ‘asset based’ rather than ‘capital
access to all households at a reasonable cost to a full
based’ approach in assessing the adequacy of capital
range of financial services and to ensure continuity and
to support current and projected business activities.
certainty of investment. NRBC is also committed to bring
Bangladesh Bank prescribed Minimum Capital to
the unbanked people under the roof of banking services
Risk Weighted Assets Ratio (CRAR) is 10% and capital
with greater focus on retail banking, building on its brand
value. We understand we have a long way to go in terms
.c conservation buffer is 1.25% (Total 11.25%) for the year
2017 whereas as on December, 2017 the CRAR (Solo) of
of strengthening its position in retail banking. Of course,
the Bank was 13.49%.
d
we have credit cards for distribution to a multitude of
individuals from different segments of the society. But to Going Green
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do that, we need to give a closer attention toward fixing

Environmental protection, awareness, and sustainable,
some bugs first, and then we can go for full-fledged
ecological measures have emerged as significant
marketing. NRBC already has a number of Agents and
themes of our age and an increasing number of “green”
Sub-Agents set up in the remotest areas of the country
technologies are finding their way into the banking.
to provide multilayered banking services. We are moving
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Although banks are considered environmental friendly

ahead and plan to introduce new products considering
and do not influence the environment greatly through
the market demand.
their own internal operations, the external influence
Toward Meritocracy, Transparency and Accountability the environment through their customers activities is
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substantial. The banking sector can play an intermediary

One of our goals for the year 2018 is the implementation
role between economic development and environmental
and nurturing of full-fledged meritocracy. In NRBC
protection, for promoting environmentally sustainable
Bank, we see it as a self-defining, self-improving,
and socially responsible investment.
and self-progressing system. NRBC Bank aims to
foster meritocracy and transparency in all spheres of Since inception, NRBC Bank has been emphasizing on
recruitment, selection, hiring, training, performance diversifying its credit portfolio over various sectors
appraisal and rewarding of our human resources. We including Green & Environment-friendly Financing.
are trying to establish an accountability based culture We maintain a green banking unit and always try to
focused on producing results, not activities. To put it into encourage automation, green finance, online banking,
fruition, we have already developed a comprehensive power saving equipment and paperless banking.
system for ensuring that employees are judged solely Considering green banking concept, we already have a
by their efforts, skills, abilities, and performance, model branch performing banking operations using day
regardless of gender, race, class, origin and implemented light. Days ahead, we are planning to establish this idea
performance reward systems that separate performance for other branches too.
reviews from pay and reward decisions. One of our long-
Concluding Words
term goals behind practicing meritocracy in the Bank
is to create future leaders. We believe leaders are not Facing the challenges head-on in a compliant manner
born, they can be created. We encourage teamwork, is our first step toward creating an institution with
MBO, 360° appraisal to create good leaders. sustainable growth with a clear vision of our plan. We

21
 Annual Report 2017

thrive in a profound corporate atmosphere that we

helped to develop today. Our colleagues, who are with
us today and those who will be part of us tomorrow,
shall remain in sync to take NRBC Bank to the next level.
We, who are at the forefront of the Management, take
pride to be a part of the NRBC family in making the NRBC
brand unique and distinct from the competition. The
company that stands today shall continue to hold its fort
tomorrow.
Together, we have realigned our goals, redefined our
vision and rediscovered our root. The seeds are already
planted. All we need is to work on it.

Sincerely

Khondoker Rashed Maqsood

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Managing Director & CEO
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22 NRB Commercial Bank Limited

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B oard of D irectors

23
 Annual Report 2017

Mr. Tamal S M Parvez, the Chairman of NRB Commercial Bank Limited is a Bangladeshi
entrepreneur, Russian citizen and a permanent resident of Finland. He comes from a
valiant freedom fighter family that is also renowned for its academic excellence. He is
also the President of Russia Bangladesh Chamber of Commerce and Industry and the
General Secretary of Bangabandhu Parishad Russia.
Born on July 8, 1971 in Barisal, Bangladesh, Mr. Parvez completed his schooling from
Barisal Zilla School and Syed Hatem Ali College having graduated in 1985 and 1987.
After that in the year 1989, he studied Russian language from Tbilisi Govt. University. He
pursued Masters in Engineering in 1994 from MPI and in 1997 from MESI.
He is a qualified engineer, successful entrepreneur and philanthropist. Mr. Parvez
established business in Finland as a logistic hub, after that in investment in real estate
Mr. Tamal S M Parvez and other areas. He completed different courses as Business professional from the
Chairman academy e.g. HP, Microsoft, IBM, CISCO. From 2009, he started merging with Oldi group
which is the Market leader of whole IT sector in Russia.
Mr. Parvez is engaged in IT distribution, Real Estate Holdings, Manufacturing of
Household Product & Logistic consultations in Russia. Mr. Parvez is the CEO and
President of OY STN Electronics Ltd., Finland which was founded in 1995. He is also
a Shareholder of Oldi Group and System Invest R & M, Russia. He is engaged in other

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companies in EU and Russia related to manufacturing, branding of different products
and real estate business.
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Mr. Mohammad Shahid Islam (Papul), is a permanent resident of Kuwait, is the
Partner, MD & CEO of Marafie Kuwaitia Group involving in Kuwait, GCC, US Military,
United Nations, Government & Commercial contracts internationally.
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Mr. Mohammad Shahid

Islam (Papul)
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Vice Chairman
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Engr. Farasath Ali, a US citizen and the Founder Chairman of NRB Commercial Bank
Limited is a Textile Technologist from the University of Leeds, UK. Born in 1955, he
bravely fought in the Liberation War of Bangladesh.
Engr. Ali heads SNA Knitting Mills Inc. in the USA, a knitwear unit, as its President.
He has been involved in various social activities in the USA and has contributed
significantly to the welfare of the NRBs living in the USA and thus in the process he
has engaged himself towards making contribution to the growth of his motherland in
many fronts culminating in his endeavour to spearheading this NRB Commercial Bank
Limited
Engr. Farasath Ali
Director

24 NRB Commercial Bank Limited

 Dr. Toufique Rahman Chowdhury, a permanent resident of the UK (British Bangladeshi).

Board of Directors
He passed B.A. (Hon) & M.A. degrees in Economics from the University of Dhaka and
was conferred Ph.D. from BIU. He received DAIBB from the Institute of Bankers. He
started his career in Banking in 1979 and served in different commercial banks in
different capacities until 1998. In 1999, he had pioneered sponsoring Mercantile Bank
Limited and assumed the Office of the Director. He also had been the Chairman of
the Board of Directors of Mercantile Bank Limited from January 2000 to July 2001.
He was the Founder Chairman of Mercantile Bank Securities Limited and was a
Director of Mercantile Bank Exchange House (UK) Limited. There is a sheer blending
of experience of a Banker in him from the both the sides of the table. Dr. Chowdhury
is the Founder and Chairman of Metropolitan University, Sylhet, Founder President of
Sylhet Metropolitan Chamber of Commerce & Industry (SMCCI), Founder Chairman,
Dr. Toufique Rahman Vice Chairman and now a Director of National Credit Ratings Limited (NCR), a
Chowdhury Director of East Anglia Resources Limited (UK), Life Member of Bangladesh Economic
Association and also of Dhaka University Alumni Association.
Director

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Mr. A B M Abdul Mannan is a Bangladeshi US citizen. He obtained his Undergraduate
and Graduate Degree from Islamia College in Karachi, Pakistan. He is an established
businessman in the US having more than 22 years of business experience. Mr. Mannan
is the owner of AAA Wash & Clean and Dastan Inc. in the USA. He has a very strong
socio-economic and socio-cultural background.
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Mr. A B M Abdul Mannan
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Director
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Mr. Mohammed Oliur Rahman is a permanent Resident of

Dubai, UAE and is engaged in the business of Retail, Wholesales & Export of
Fragrance, Perfumery, Cosmetic products & Accessories in the names
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and styles of Al Haramain Trading LLC, Dubai, UAE, Al Haramain Perfumes

MFG & OUDH Processing Industry LLC, Ajman, UAE, Al Haramain Perfumes
LLC, Dubai, UAE, Best in Fragrance, Hilton Tower, Makkah-KSA, Noor Al Haramain
LLC, Dubai, UAE and Al Haramain Hospital Pvt. Ltd., Sylhet, Bangladesh. Mr.
Rahman has the long successful business career having an influential  and  respected
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personality among the expatriate Bangladeshis in Dubai, UAE. He is deeply involved in

the welfare of the Bangladeshi community. Mr. Rahman is a CIP and is also the recipient
Mr. Mohammed Oliur of the prestigious Bangladesh Bank Award for 4 consecutive years from 2013 to 2016.
Rahman
Director

Mr. Mohammed Enayet Hossain, is a Bangladeshi expatriate & an Italian citizen. He is

engaged in the business of Jewellery & Garments.  Mr. Hossain is the Director of TANJIL-
CO Export & Import. TANJIL-CO Cleaning Company in Italy. He has also established
business in U.A.E. Kuwait. Qatar. Islamic Republlc of Iran.

Mr. Mohammed Enayet

Hossain
Director

25
 Annual Report 2017

Mr. Md. Amir Hossain lives in the USA. He had earned his Master’s from Chittagong
University in 1989. He runs recycling Industry & does Export & Import in the USA. Mr.
Hossain is CEO of Trimx Ventures LLC and Trimx Recycling LLC in USA. He is committed
to the development of the Bangladeshi communities living in the USA. Mr. Hossain had
a long cherished desire to contribute to the development & growth of his motherland
& his dream came true when he had the opportunity o f becoming a sponsor of the
NRB Commercial Bank Ltd.

Mr. Md. Amir Hossain

Director

Mr. Abu Bakr Chowdhury is a UAE resident. He hails from Chittagong and obtained

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his Graduation from Chittagong University. He is a very successful businessman. Mr.
Chowdhury started business as an industrialist since 1986 and due to his vast
experience and dynamic leadership he formed Baizid Group of Industries with wide
reputation at home and abroad. Mr. Chowdhury is the Chairman of Baizid Group and
associated with various institutions. He has a very strong socio-economic and socio-
cultural background.
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Mr. Abu Bakr Chowdhury
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Director
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Mr. Loquit Ullah, an NRB & an Italian citizen, is engaged in wholesale business since
1980. Mr. Loquit Ullah is the Managing Director of Store Alamin S.N.C., Rome, Italy.
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Mr. Loquit Ullah

Director

Mr. Rafikul Islam Mia Arzoo was born on 01.07.1963 in Rajbari, Bangladesh. He is a
Russian citizen. He passed HSC from Notre Dame college in 1981. He did his M.Sc in
Electrical Engineering from Georgian Technical University in 1988. He is a successful
businessman having business in Finance, Real-estate, Dry-cleaning service. He is a
CIP. He is involved in different philanthropic activities. He has been running a college,
Kolimohar Mahabiddalaya (EIIN # 113423)in his village Kolimohar, Pangsha, Rajbari
established in 2000. Mr. Arzoo is married and a proud father of two daughters and a
son.
Mr. Rafikul Islam Mia
Arzoo
Director

26 NRB Commercial Bank Limited

 Board of Directors
Mr. Mohammed Nazim is a permanent resident of UAE. Mr. Nazim is a graduate and is
engaged in the business of car services center in as many as fifteen businesses entities
in Sharjah, Ajman, um al quiyan, UAE in the capacities of the Managing Director since
1996.
He is also Managing Director and CEO of Al Badar Real Estate which is a leading
company in real state sector of Ajman, UAE.

Mr. Mohammed Nazim

Director

Engr. Syed Munsif Ali, a permanent Canadian resident, is an Engineer by profession and
is engaged in Real Estate business in the capacities of Chairman & CEO of Multiplan
Canada Limited & Multiplan Limited in Bangladesh. He was the founding Chairman

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of Golden Life Insurance Limited. His association with the above mentioned well-re-
puted organization makes him a forward looking and progressive-businessman who
has already reached an enviable height. Furthermore, he has deep affinity and also
attachment with various socio-cultural activities like Life Fellow, The Institution of En-
gineers, Bangladesh, Life Member BAAS (AOTS of Japan), Life Member, Narayanganj
Rifle Club, Life Member, Manikganj Rifle Club, Member, Dhaka Rifle Club, Member
Kurmitola Golf Club, Member of the Executive Committee, Mohammedan Sporting
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Club, Dhaka, Member, Dhaka Club Limited, Founding Chairman, Chattak Doara Un-
nayan Parishad, Dhaka, Former President, Sunamganj Shamity. He is also associated
Engr. Syed Munsif Ali with many others socio-economic development activities.
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Director
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Mr. Mohammed Adnan Imam, a UK Citizen and CIP (NRB), residing in London is a
Fellow Chartered Certified Accountant (FCCA). Having a successful career in Finance
and Investment Banking with world renowned Merrill Lynch Europe Plc. He is the
Managing Director of IPE Group – which is involved in Real Estate and Private Equity in
London and Dhaka, Technology and Outsourcing, Textiles, RMG and Finance..
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Mr. Mohammed Adnan

Imam
Director

Dr. Nuran Nabi, a US citizen and an NRB, is a valiant Freedom Fighter of Bangladesh
Liberation War. He did his Honors and Masters degrees from Dhaka University and
obtained Ph.D from Kyushu University, Japan. He was an accomplished scientist at
Colgate Palmolive Co., USA. He is a board member of the Plainsboro Free Public
Library Foundation. He has a strong socio-economic background. Dr. Nabi, a prolific
writer, has been awarded Bangla Academy Honorary Fellowship for his outstanding
contribution to the literature on Bangladesh liberation war. He is a Councilman of
Plainsboro Township, NJ, USA since 2007.
Dr. Nuran Nabi
Director

27
 Annual Report 2017

Mr. Mohammed Manzurul Islam, a non-resident Bangladeshi living in the United

States, obtained BA (Honors) and MA degrees from Dhaka University and MA from
New York University. He was a certified teacher in the New York City Department
of Education for 10 years. He is a Director, Editor-in-Chief and CEO of Dhaka Bangla
Channel (DBC NEWS) – the first 24/7 live Bangla news channel in Bangladesh. He is also
a Director of ATN News, another popular TV channel of the country. An internationally
known journalist, TV anchor and a media personality, Mr. Islam was former associate
broker of Re/Max Universal, USA. He is also a very successful Real Estate Businessman
with a strong background in socio-political and socio-economic affairs.
Mr. Mohammed
Manzurul Islam
Director

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Mr. Maqsood completed his MBA in Finance from Institute of Business Administration
(IBA), University of Dhaka in 1992. He started his career at American Express Bank,
Dhaka, Bangladesh in 1992 as a Management Trainee and later joined Corporate
Banking Group. Later, He worked at CitiBank N.A for more than 22 years in different
positions since 1995. He is considered as the pioneer of transaction banking in
.c
Bangladesh with vast experience in Corporate & Correspondent Banking, Private
Equity, M&A, Back Stopped Facility, Debt Restructuring, International Bond, and
Securities & Funds Services. He is a strong proponent of inclusive financing and
Khondoker Rashed innovative CSR models.
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Maqsood
Managing Director & CEO
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28 NRB Commercial Bank Limited

 S ponsors

Engr. Farasath Ali Mr. Mohammed Adnan Imam Mr. Fahad Madani Islam
Dr. Toufique Rahman Chowdhury Dr. Nizam Mohammad Meah Mr. Shamim Ali
Mr. Tanwir M O Rahman Chowdhury Dr. Nuran Nabi Mr. Shakawat Ali
Mr. ABM Abdul Mannan Mrs. Kaniz Farzana Rashed Mr. Mohammed Shofiqul Islam
Mr. Mohammed Oliur Rahman Dr. Rafiqul Islam Khan Mr. Nahid Ahmed Chowdhury
Mr. Mohammed Enayet Hossain Dr. Shahanara Begum Ali Mr. Tohel Ahmed
Mr. Md. Amir Hossain Mr. Sarwar Zaman Chaudri Mr. Azadul Haq
Mr. Abu Mohammad Tushar Iqbal Rahman Mr. Mohammad Zakaria Khan
Mr. Firoz Haider Khan Mr. Mohammad Iqbal Rashed
Mr. Shabbir Ahmed Mubin
Mrs. Kamrun Nahar Sakhi Mr. Mohammed Jahangir Alam
Mr. Izaharul Islam Halder
Mr. Abu Bakr Chowdhury Mrs. Nazni Mansur
Mr. Mostafisur Prince Rahman
Mr. Mohammad Shahid Islam Mr. Anwar Hossain
Mr. Aziz U Ahmad
Mr. Loquit Ullah Mr. Mohammed Manzurul Islam Mr. Sunahwar Ali
Mr. Tamal S M Parvez Mr. Mohammed Jamal Uddin Mr. Mohammed Sabbir Ahmed
Mr. Rafikul Islam Mia Arzoo Mr. Faruk Ali Mr. Mohammad Kashem

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Mr. Mohammed Nazim Mr. Zulfiker Alim Mr. Mohammed Tanvir Ahmed
Engr. Syed Munsif Ali Mrs. Ferdoushe Begum Dr. Abul M. Ibrahim
Mrs. Shamimatun Nasim Mr. Mohammed Ashraf Ali Mr. S.M. Gulam Robbani Chowdhury
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Sponsors
29
 Annual Report 2017

Engr. Farasath Ali

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Dr. Toufique Rahman Chowdhury Mr. Tanwir M O Rahman Chowdhury Mr. ABM Abdul Mannan
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Mr. Mohammed Oliur Rahman Mr. Mohammed Enayet Hossain Mr. Md. Amir Hossain

Mr. Abu Mohammad Tushar Iqbal Rahman Mr. Firoz Haider Khan Mrs. Kamrun Nahar Sakhi

30 NRB Commercial Bank Limited

 Sponsors
Mr. Abu Bakr Chowdhury Mr. Mohammad Shahid Islam Mr. Loquit Ullah

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Mr. Tamal S M Parvez Mr. Rafikul Islam Mia Arzoo Mr. Mohammed Nazim
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Engr. Syed Munsif Ali Mrs. Shamimatun Nasim Mr. Mohammed Adnan Imam

Dr. Nizam Mohammad Meah Dr. Nuran Nabi Mrs. Kaniz Farzana Rashed

31
 Annual Report 2017

Dr. Rafiqul Islam Khan Dr. Shahanara Begum Ali Mr. Sarwar Zaman Chaudri

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Mr. Mohammad Zakaria Khan Mr. Shabbir Ahmed Mubin Mr. Izaharul Islam Halder
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Mr. Mostafisur Prince Rahman Mr. Aziz U Ahmad Mr. Mohammed Manzurul Islam

Mr. Mohammed Jamal Uddin Mr. Faruk Ali Mr. Zulfiker Alim

32 NRB Commercial Bank Limited

 Sponsors
Mrs. Ferdoushe Begum Mr. Mohammed Ashraf Ali Mr. Fahad Madani Islam

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Mr. Shamim Ali Mr. Shakawat Ali Mr. Mohammed Shofiqul Islam
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Mr. Nahid Ahmed Chowdhury Mr. Tohel Ahmed Mr. Azadul Haq

Mr. Mohammad Iqbal Rashed Mr. Mohammed Jahangir Alam Mrs. Nazni Mansur

33
 Annual Report 2017

Mr. Anwar Hossain Mr. Sunahwar Ali Mr. Mohammed Sabbir Ahmed

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Mr. Mohammad Kashem Mr. Mohammed Tanvir Ahmed Dr. Abul M. Ibrahim
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Mr. S.M. Gulam Robbani Chowdhury

34 NRB Commercial Bank Limited

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Executive Committee
Committees Audit Committee
of Risk Management Committee
NRBC Bank Management Committee
Asset-Liability Committee
35
 Annual Report 2017

Committees of Board of Directors’

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Mr. Rafikul Islam Mia Arzoo Chairman

Engr. Farasath Ali Member
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Mr. Md. Amir Hossain Member

Mr. Tamal S M Parvez Member
Mr. Mohammed Nazim Member
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EXECUTIVE COMMITTEE AUDIT COMMITTEE RISK MANAGEMENT COMMITTEE

Mr. Abu Bakr Chowdhury Chairman Mr. Adnan Imam Chairman

Mr. Mohammed Oliur Rahman Member Dr. Toufique Rahman Chowdhury Member
Mr. Mohammad Shahid Islam Member Mr. Tamal S.M. parvez Member
Mr. Loquit Ullah Member Mr. Mohammed Nazim Member
Mr. Mohammed Adnan Imam Member Dr. Nuran Nabi Member

36 NRB Commercial Bank Limited

 Committees of NRBC Bank
Committees of Management

Mr. Khondoker Rashed Maqsood Managing Director & CEO

Mr. Kazi Md. Talha Deputy Managing Director
Mr. Md. Mukhter Hossain Deputy Managing Director

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Mr. Muhammad Hajjaj Bin Mahfooz SEVP & HOB, PB
Mr. Kabir Ahmed SEVP & HOID
Mr. Md. Azim Uddin SEVP
Mr. Tansuree Mitra EVP & HOCRMD
Mr. Kazi Md. Safayet kabir EVP & HOADC
Mr. Harunur Rashid
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EVP & CFO
Mr. Md. Mynul Hossain Kabir SVP & HORMD
Mr. AIM Mostafa SVP & HO BOCD
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Mr. Mohammad Mostahaque SVP & HOSSD
Mr. Md. Anisur Rahman SVP & HOICCD
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Mr. Md. Haider Akhlaque VP & HOHRD

Mr. Md. Forhad Sarker VP & HOSMRU
Mr. Md. Abu Moshaheed FVP, HO NRB Desk
Mr. Md. Ruhul Amin FVP & HOPRD
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Mr. ASM Maruf Uddin Kamal FVP & HOCAD

Mr. Shamim Ahmed Joarder FVP & HOICT(CC)
Mr. Md. Abdullah Al Mamun AVP & HOCBD
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MANAGEMENT COMMITTEE ASSET - LIABILITY COMMITTEE

Mr. Khondoker Rashed Maqsood Chairman

Mr. Kazi Md. Talha Chairman
Mr. Md. Mukhter Hossain Member
Mr. Kabir Ahmed Member
Mr. Md. Azim Uddin Member
Mr. Tanusree Mitra Member
Mr. Harunur Rashid Member Secretary
Mr. Md. Mynul Hossain Kabir Member
Mr. Md. Abdul Gofur Raana Member

37
 Annual Report 2017

Management Committee (MANCOM)

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Sitting From the Mr. Md. Mukhter Hossain, Mr. Khondoker Rashed Maqsood and Mr. Kazi Md.
Left Side: Talha.

38 NRB Commercial Bank Limited

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Standing From Mr. Md. Mynul Hossain Kabir, Mr. Shamim Ahmed Joarder, Mr. Md. Abdullah
the Left Side: Al Mamun, Mr. Harunur Rashid, Mr. Md. Anisur Rahman, Mr. ASM Maruf
Uddin Kamal, Mr. Tansuree Mitra, Mr. Md. Azim Uddin, Mr. Muhammad Hajjaj
Bin Mahfooz, Mr. AIM Mostafa, Mr. Kazi Md. Safayet kabir, Mr. Mohammad
Mostahaque, Mr. Md. Haider Akhlaque, Mr. Md. Forhad Sarker, Mr. Kabir Ahmed
and Mr. Md. Ruhul Amin.

39
 Annual Report 2017

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40 NRB Commercial Bank Limited

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KEY PERFORMANCE INDICATOR

 Annual Report 2017

Performance Since 2013

Million Taka Otherwise Specified
Particulars 2017 2016 2015 2014 2013
BALANCE SHEET MATRIX
Authorized Capital 10000 10000 10000 10000 10000
Paid up capital 5,292.00 (If 4,900.00 4,579.44 4,446.06 4,373.85
bonus share
approved by
shareholders
in 5th AGM)
Reserved Fund & Surplus 1,468.46 1108.62 666.96 141.79 25.33
Total Stockholder Equity 6,410.80 5,728.74 5,152.92 4,587.85 4,399.19

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Deposit 45,236.44 44,143.28 28,880.68 17,270.89 4,909.95
Loans & Advances 43,000.28 37,408.28 23,227.39 14,412.35 3717.15
Investments 6,864.13 7,527.58 6,485.87 5,669.75 643.24
Fixed Assets 487.23 560.10
.c 464.90 342.89 145.15
Total Assets 57,529.35 53,619.10 36,259.01 24,848.11 9,537.59
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Total Off-balance sheet Items 16,591.43 12,934.95 8,651.75 4492.66 1,083.11
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Interest Earning Assets 51,089.43 48,816.25 31,991.23 22,288.91 8554.98

Non-Interest Earning Assets 6,439.93 4,802.85 4,267.78 2,559.05 982.61
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Net Interest Margin (NIM) 0.79% 0.64% 0.21% 0.36% 3.28%

INCOME STATEMENTS MATRIX

Interest Income 4,717.82 3,905.39 2,920.42 1,656.90 553.36
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Interest Expense 3,146.94 2,868.14 2,697.41 1,433.07 240.81

Net Interest Income (NIM) 1570.87 1037.25 223.01 223.83 312.55
Investment income 1,259.20 1,488.94 1,468.89 609.35 28.48
Non-Interest Income 695.77 485.67 310.31 157.81 12.65
Operating Expense 1,683.93 1,474.34 1,079.80 659.8 261.14
Total Income 6,672.79 5,880.00 4,699.62 2,424.05 594.49
Total Expense 4,830.87 4,342.48 3,777.21 2,092.87 501.95
Operating Profit 1,841.92 1,537.52 922.42 331.18 92.54
Profit before tax (PBT) 1,397.82 1,307.90 792.73 183.63 38.31
Profit after tax (PAT) 928.94 869.03 560.08 84.77 22.03

42 NRB Commercial Bank Limited

 Million Taka Otherwise Specified

Key Performance Indicator (KPI)

Particulars 2017 2016 2015 2014 2013
CAPITAL MEASURE
Risk Weighted Assets 49,922.72 45,942.09 28,768.03 16,415.32 5,535.00
Core Capital (Tier I) 6,235.42 5,690.30 5,106.67 4,581.57 4,395.88
Supplementary Capital (Tier II) 545.13 510.30 338.09 214.00 55.88
Total Capital 6,780.55 6,200.60 5,444.76 4,760.57 4,451.76
Capital Surplus/(Deficit) 1,164.25 1,319.26 2567.96 3,119.05 3,898.26
Tier – I Capital Ratio 12.49% 12.39% 17.75% 27.70% 79.42%
Tier – II Capital Ratio 1.09% 1.11% 1.18% 1.30% 1.01%
Total Capital to Risk Weighted 13.58% 13.50% 18.93% 29.00% 80.43%

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Assets Ratio (CRAR)
CREDIT QUALITY
Classified Loan 1,032.58 193.02
.c 62.86 Nil Nil
Percentage of Classified Loan 2.46% 0.52% 0.27% 0.00% 0.00%
Provision for Unclassified 372.22 370.49 237.59 158.01 43.4
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Loan
Provision for classified Loan 461.31 58.65 4.76 Nil Nil
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Provision for Off-balance g165.91 129.35 86.52 38.5 10.83

Items
FOREIGN EXCHANGE BUSINESS
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Import 24,786.54 18,133.73 12,377.90 7,223.79 1,326.22

Export 22,459.69 16,885.62 11,772.60 5,964.84 265.36
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Remittance (inward) 447.01 409.74 399.30 275.69 81.9

OPERATING PROFIT RATIO

Credit Deposit Ratio 92.18% 82.99% 79.11% 79.79% 75.71%
Cost of Deposits 6.47% 6.91% 8.40% 9.81% 11.14%
Operating Profit Marrgin 27.60% 26.15% 19.63% 13.66% 15.57%
Net Profit Margin 13.92% 14.78% 11.92% 3.24% 3.71%
Yield on Loan & Advances 11.74% 13.04% 14.10% 14.42% 15.17%
Administrative Cost 2.53% 2.70% 3.17% 3.57% 5.70%
Cost of Fund 9.00% 9.61% 11.57% 13.38% 16.84%
Spread 2.74% 3.43% 2.53% 1.04% -1.67%
Return on Equity 15.30% 15.97% 11.55% 1.75% 0.51%

43
 Annual Report 2017

Million Taka Otherwise Specified

Particulars 2017 2016 2015 2014 2013
Return on Assets 1.67% 1.93% 1.83% 0.46% 0.28%
Equity Multiplier 8.97 (Times) 8.26 (Times) 6.30 (Times) 3.83 (Times) 1.83 (Times)
Debt Equity Ratio 12.54% 11.96% 18.37% 22.61% 85.61%

PERFORAMCE RATIO
Profit Per Employee 2.99 2.76 1.95 0.97 0.58
Burden Ratio 30.10% 31.96% 31.00% 58.00% 86.00%
Interest Coverage Ratio 58.53% 53.61% 34.20% 23.11% 38.43%
Expense Coverage Ratio/Cost 47.76% 48.95% 53.93% 66.58% 73.84%
to Income Ratio

om
DIVIDEND
Cash 2% 5% 6% 1% Nil
Stock 8% 7%
.c 3% Nil Nil
Dividend in from of 490.00 549.54 400.15 44.46 Nil
Stock & Cash
Dividend Payout Ratio 52.75% 63.24% 71.44% 52.44% Nil
d
SHARE INFORMATION MATRIX
ab

Share Outstanding (Nos) 529.20 (If 490.00 457.95 444.61 437.38

bonus share
approved by
nk

shareholders
in 5th AGM)
No. of Share Holder 59.00 54.00 53.00 53.00 53.00
la

Earnings Per Share (Taka) 1.89 1.90 1.26 0.18 0.05

Net Asset Value Per Share 13.00 12.42 11.50 10.30 9.89
(Taka)
Net Operating Cash flow per (5.01) 6.56 7.68 6.42 2.14
share(Taka)
Free Cash Flow per share (5.17) 6.08 7.85 5.86 1.77
(Taka)
OTHER INFORMATION
No. of Branches 61 51 40 26 10
No. of ATM 46 42 29 15 10
No. of Relationship 152 148 135 116 70
Management Account
No. of employees 617 557 479 340 160
No. of Nastro Account 12 13 11 10 9

44 NRB Commercial Bank Limited

 Loans & Advances Reserved & Surplus
43000.28 1468.46

37408.28 1108.62

23227.39 666.96

14412.35 141.79

3717.15 25.33
la

2017 2016 2015 2014 2013

2017 2016 2015 2014 2013
Assets Stockholder Equity
nk
57529.35 6410.80

53619.10 5728.74
ab
36259.01 d 5152.92

24848.11 4587.85

9537.59 4399.19

2017 2016 2015 2014 2013

2017 2016 2015 2014 2013
.c
Profit After Tax Deposits
om
928.94 45236.44

869.03 44143.28

560.08 28880.68

84.77 17270.89

22.03 4909.95

2017 2016 2015 2014 2013

2017 2016 2015 2014 2013

Key Performance Indicator (KPI)

45
46
Net Asset Value Per Share(Taka) Capital
13.00 6780.55

12.42 6200.60

11.50 5444.76
Annual Report 2017

10.30 4760.57

9.89 4451.76

2017 2016 2015 2014 2013

2017 2016 2015 2014 2013
la

NRB Commercial Bank Limited

Non Funded Business Import
nk
16591.43 24786.54

12934.95 18133.73

8651.75 12377.90
ab
d4492.66 7223.79

1083.11 1326.22

2017 2016 2015 2014 2013

2017 2016 2015 2014 2013
.c
Operating Profit Export
om
1841.92 22459.69

1537.52 16885.62

922.42 11772.60

331.18 5964.84

92.54 265.36

2017 2016 2015 2014 2013

2017 2016 2015 2014 2013
 om
d .c
ab
nk
la

DIRECTORS’ REPORT
 Annual Report 2017

DIRECTORS’ REPORT
Honorable Shareholders in the two indices respectively.
On behalf of the Board of Directors of NRBC Bank, it NRBC Bank also celebrated this significant achievement
gives me immense pleasure to welcome you all to of the nation on 22 March 2018 as declared by
the 5th Annual General Meeting (AGM) of NRBC Bank Government.
which started its operation on 18th April 2013 as fourth
generation Bank being promoted and sponsored by
distinguished Non-Resident Bangladeshis from different
corners of the world with a fabulous dream to build.
The Board has the pleasure of presenting Annual Report
of the Bank together with the Directors’ Report along
with the audited Financial Statements of the Bank for
the year ended 31st December 2017 for consideration,
approval, and adoption by our valued Shareholders. The
Financial Statements of the Bank have been prepared
with an eye to providing the widest possible coverage

om
in terms of compliance with the related regulators and Despite the graduation from LDC, Year of 2017 was a
financial standards and to give a fair view of the business mixed of achievements and challenges. Though some
activities in a transparent manner to our shareholders macro indicators reflect the positive trends, the overall
and regulators. strength of the economy is weakening due to a number
of developments toward the second half of the year. One
of the major achievements of the economy has been a
.c
7.28 percent economic growth in FY 2016-17 breaking
the six percent cycle that continued for a decade or so.
Like previous years, major boost of growth has come
d
from the industrial sector followed by the service sector.
Though average inflation has been around 5.5 percent,
ab

food inflation is showing an increasing rate in recent

months, mainly because of agricultural loss due to two
A partial view of the 4th Annual General Meeting (AGM) held on April rounds of flood.
23, 2017,
Investment is a major impetus to Bangladesh’s growth.
nk

“THE DIRECTOS’ REPORT” presents in compliance with Target was set to increase investment to 32.7 percent
Section 184 of the Companies Act 1994 and Notification of GDP in FY 2016-17, keeping in mind the need for a
No.SEC/CMRRCD/2006-158/134/Admin/44 dated 07th growing economy. In FY 2016-17, investment as a share
August 2012 of the Securities and Exchange Commission: of GDP went up to 30.5 percent, a marginal increase from
la

1a) The State of the Company’s Affairs [Section # 29 percent in FY 2015-16. However, the private sector’s
184(1a) of the act] investment has been almost stagnant since FY 2015-16
hovering around 23 percent. The major boost has come
Before presenting the company affairs of business and from the public sector that saw an increase to 7.4 percent
financial performance, the underlying forces affecting in FY 2016-17 from 6.7 percent in FY 2015-16.
these are briefly pointed out:
Domestic savings-GDP ratio increased by only 0.3 percent
“16 March 2018 is a historical red letter day for all of us in FY 2016-17 while national savings-GDP ratio declined
as Bangladesh for the first time attained all the three by 1.2 percentage point to 20.6 percent in FY 2016-17
criteria for graduating from LDCs” from 30.8 percent in FY 2015-16 in the backdrop of the
Committee for Development Policy (CDP) of the large current account deficit. This has narrowed the
United Nations has officially declared the eligibility of gap between national savings and total investment as
Bangladesh for graduating from the least development a share of GDP for the first time in recent years, which
countries (LDCs) to developing nations by fulfilling three otherwise displayed a gap implying that resources are
criteria. According to the UN’s graduation thresholds, not fully utilised.
Gross National Income (GNI) per capita of a country The external sector has been a source of strength for the
should be $1,230 or above. Bangladesh’s GNI per capita Bangladesh economy for several years. This has changed
was $1,610 at the end of 2016-17 financial years. in recent periods. Export growth in FY 2016-17 was only
For the Human Assets Index (HAI), a country must scores 1.7 percent as opposed to the target of 8 percent. A
66 or above and for Economic Vulnerability Index (EVI) glimmer of hope is in the horizon with both RMG and
must be 32 or below. Bangladesh scored 72.9 and 24.8

48 NRB Commercial Bank Limited

total exports picking up during July-December of FY The year 2018 will be a turning point for Bangladesh

Directors’ Report
2017-18. However, imports growing at a higher rate in many ways. Bangladesh already had been lifted
than exports led to a negative current account balance from the least developed country as declared by
that continued during July-October of FY 2017-18. In Committee for Development Policy (CDP) of the United
FY 2016-17 remittance earning growth experienced Nations. Additionally, it will continue to implement
a negative growth of (-)15.9 percent despite increase the sustainable development goals (SDGs). These
of manpower export. One important reason for low will hinge on a number of factors such as accelerated
remittances despite high growth of manpower exports resource mobilization, higher investment, efficiency in
is the flow of remittances through informal channels. infrastructure implementation, skilled human resources
Strong Bangladeshi Taka against the US Dollar also played and strong institutional set up.
a role for low export and remittances growth to some NRBC Bank Ltd also experienced a mix performance
extent. Though remittances have started to pick up in which is reflected in the state of the company’s “Bank”
recent months it is not significant since it was negative affairs in 2017.
during the last fiscal year.
Cash Management
In 2017, the banking sector exposed further weaknesses
through major indicators such as rise of non-performing Cash management refers to the prudent and efficient
loans, lower capital adequacy and the overall lack management of holding cash in such way so that a

om
of governance in the sector. Another setback from a bank can earn maximum benefit keeping the risk at a
geo-political point, 2017 has been most challenging minimum level. Bank’s prudential regulation is to ensure
its safety and soundness
for Bangladesh as
to protect the interest
the Rohingyas from of the community as
the Rakhine state of a whole. NRBC Bank
Myanmar started to
.c has also tried in the
flee to Bangladesh from best possible way to
August 25, 2017 onwards manage its cash in the
d
following a fresh round most prudent manner,
of torture and killings meeting all cash needs
ab

by the Myanmar army. and maintaining the

This effect on fiscal risk at its minimum
burden will befall level. However, holding
cash is being decreased
the government of
nk

compared to 2016
Bangladesh which “Standing for due respect on national anthem on the eve of Managers’ indicates efficient the
will have budgetary conference held for Performance Analysis-2017 and strategy for 2018”
liquidity management.
implications.
in million otherwise specified
la

Year 2017 2016 2015 2014 2013

Cash in Hand & at Bank 5,501.74 7,099.34 5,313.93 3,715.25 4,522.54
CRR 6.61% 6.62% 6.55% 6.51% 6.11%
Cash to Deposit Ratio 8.71% 7.01% 7.74% 9.00% 28.10%
Operating Cash Flow per share (5.01) 5.56 8.32 6.42 2.14
According to MPD Circular No. 01 dated 23 June 2014 of strength in the operating cash flow per share.
Bangladesh Bank, Cash Reserve Requirement increased
Recently Bangladesh Bank reduced the CRR at 5.50%
to 6.50% on bi-weekly basis with effect from 24 June
from 6.50% with effect from April 15, 2018 vide MPD
2014 and the Bank has accordingly maintained the
Circular No. 01 dated 03 April 2018 and necessary drive
regulatory requirement since 2013.
for deposit mobilization to improve the situation.
The operating cash flow per share is a reliable measure
for determining the financial strength. Although Treasury Management
earnings per share directly measures the amount an NRBC Bank has an innovative and dynamic treasury
investor makes on his/her shares and is, therefore, team adept in diversified investment opportunities
the more popular investment measure used as a more and consistent contribution in Bank’s profitability. In
reliable measure in terms of the company’s financial addition to it’s responsibility for compliance with reserve

49
 Annual Report 2017

requirements and management of liquidity and interest NRBC Bank Ltd has been acting as a Primary Dealer
rate risk on the Bank’s balance sheet, it offers a wide since its inception in the treasury market. As a primary
range of treasury products and services to corporate dealer, Bank is required to make bids or offers when
and individual customers. The Bank enters into foreign Bangladesh Bank conducts open market operations and
exchange and derivative deals with counterparties after to participate actively in government treasury securities
setting up its appropriate counterparty credit limits auctions. The Table below shows the scenario of stable
based on its evaluation of the ability of the counterparty growing of treasury investment over the years.
to meet its obligations in the event of crystallization of
the exposure.
in million otherwise specified
2017 2016 2015 2014 2013
Total Investment 6495.12 7,174.16 6,200.87 5,669.75 643.24
Investment In Govt. Securities 4903.78 5,253.16 4,138.47 4,196.29 643.24
Ratio of Govt. Investment to
75.50% 73.23% 66.74% 74.01% 100.00%
Total Investment
Net Treasury Income 1,236.00 1,295.69 831.03 397.12 14.54

om
Investment in government treasury securities such over the few years converted into crises from last quarter
as T-bills and T-bonds is showing increasing trend but of 2017 in banking sector of Bangladesh. Another analysis
decline in the year 2017. On the last five years NRBC showed that having excess liquidity for quite a long time,
Bank traded and had re-invested in government treasury banks have been facing increasingly more demand for
security such as T-bills and T-bonds and earned significant
income having “0” tax implication, though investment
.c
loans from the private sector since December of last
year. NRBC also experienced of liquidity crisis in effect of
amount goes down in the year 2017 compared to the faster growth rate of Loans and advances @ 14.84% in
year 2016 on account of low yield of the securities. 2017 than deposit mobilization.
d
Loans and Advances Furthermore, it’s also interesting that yield on LDOs was
ab

lower than year of 2016 though default risk increased to

Scenario of excess liquidity or excess of loanable fund 2.46% from previous year rate of 0.52%.
in million otherwise specified
Year 2017 2016 2015 2014 2013
nk

LDOs 42,960.51 37,407.92 23,227.39 14,412.25 3,717.15

AD Ratio 93.07% 82.99% 79.11% 76.83% 72.81%
la

% of Classified Loan 2.46% 0.52% 0.27% 0.00% 0.00%

% of Large loan 43.20% 33.14% 25.81% 32.35% 48.65%
No. of loan Account 9,820 7,860 5,039 2,491 491
Bank has also achieved the target of Agriculture and
RMG 4,597.21 10.70%
SME credit very comfortably consecutively for the fifth
year of its operation which was also appreciated by the NBFI 776.28 1.81%
central bank.
Food 124.24 0.29%
The credit portfolio of the bank is quite evenly
distributed among different business and industrial Beverage 148.75 0.35%
sectors maintaining an acceptable spread to ensure the Pharmaceutical 267.12 0.62%
targeted profitability and asset quality as well.
Chemical 45.63 0.11%
Sector wise distribution of credit portfolio of NRBC Bank:
Electrical 160.43 0.37%
Taka in % in the Construction 3,049.90 7.10%
Name of the Sector
Million Portfolio
House Building Residential 933.17 2.17%
Agri cultural Industry 1,308.84 3.05%
Leather 114.87 0.27%
Textile 2,813.96 6.55%

50 NRB Commercial Bank Limited

 Service Industry 349.00 0.81% Credit Card 228.48 0.53%

Directors’ Report
Transport 226.18 0.53% Other Manufacturing
6,026.63 14.03%
Industry
Basic Metal 61.96 0.14%
Others 1,814.85 4.23%
Capital Market - 0.00%
Total 42,950.65 100.00%
Car loan 9.82 0.02%
Furniture 1.51 0.02% Deposits Mobilization
Insurance 8.55 0.02% During the last two years, household savers have
Consumer Finance 1,424.37 3.32% parked their maximum possible savings in Government
Shanchaya Patra rather than Banks’ as the Bank were
Printing 711.63 1.66% paying a lower interest rate on deposits and sometimes
Ship Breaking 200.27 0.47% even less than the inflation rate which create undergone
liquidity crunch in banking sector.
SME 7,775.87 18.10%
All Banks are working to build strong deposit base to
Staff Loan 369.43 0.86% maintain the ADR ceiling by Central Bank. However,

om
NRBC Bank Limited runs deposit mobilization Campaign
Steel 1,010.96 2.35%
to keep down limit of Advance-Deposit ratio as suggested
Trade Industry 8,390.73 19.54% by Bangladesh Bank.
in million otherwise specified
Year 2017 2016 2015 2014 2013
.c
Deposits 45,236.44 44,143.28 28,880.68 17,270.88 4,909.96
Cost of Deposit 6.47% 6.91% 8.40% 9.81% 11.13%
d
No. of Deposit A/c 163,990 122,179 76,890 42,132 8,259
ab

% of low cost deposit mixing

20.59% 28.08% 17.49% 13.35% 10.26%
(CASA)
NRBC Bank has been consistently maintaining strong
deposits since its inception by concentrating on 9.30%
nk

mobilizing of no cost or low cost deposit. Low-cost

deposits i.e. CASA (CD, SB and SND) are key factors
for a banks’ profitability in the long run, though its
sustainability would depend on factors such as Credit 19.78%
la

Growth and Return on Assets. NRBC Bank has gradually

increased the CASA ratio in the deposit basket i.e. Tk.
9,317.19 million CASA deposit out of total Deposit of Tk. No Cost
45,226.60 million in 2017. 70.92% Low Cost
Product wise deposit portfolio and deposit on the
basis of cost: High Cost

4.28%
6.39% Current Accounts Shareholder Equity Value
and Other Accounts
Equity value of NRBC Bank Shareholders has been
23.34% Savings Deposits (9%) increased due to steady dividend payout ratio since 2014.
Both equity and capital become healthy consistently like
Fixed Deposits past few years, although default risk slightly higher than
38.40%
Deposit Under
the year of 2016. Steady growth of equity, capital and
27.58% Schemes Net asset value show the financial Strength of the bank.
others Core capital is the minimum amount of capital that a Bank
must have on hand in order to comply with the BASEL
Accord which has been under implementation since 2014.

51
 Annual Report 2017

in million otherwise specified

Particular 2017 2016 2015 2014 2013
Shareholder Equity 6,410.80 5,728.73 5,152.92 4,587.85 4,399.19
Regulatory Capital 6,780.60 6,200.61 5,444.76 4,766.86 4,451.76
NAV (Tk.) per share 13.00 12.42 11.50 10.30 9.89
Capital Surplus/(Deficit) 1,164.20 1,319.26 2,567.96 3,125.33 3,898.26
Risk Weighted Assets 49,922.70 45,942.09 28,768.03 16,415.32 5,534.95
Capital Adequacy Ratio 13.58% 13.50% 18.93% 29.04% 80.43%
Capital - Core (Tier I) 6,235.40 5,690.27 5,106.67 4,552.86 4,395.88
Capital - Supplementary
545.10 510.34 338.09 214.00 55.88
(Tier II)

Net Assets Value (NAV) per share stood at Tk.13.00, Cost Income Ratio 47.76% 48.95% 1.19%

om
which is higher than previous year by 4.67%. Both healthy
equity and capital is symbol of safe investment by the Return on
15.30% 15.97% (0.67%)
investors resulting NAV is ahead of par value of share. The investment (ROI)
table shows a hike in Equity, Capital and Risk Weighted
Assets by 11.91%, 9.35% and 8.66% respectively. The Return on assets
1.67% 1.93% (0.26%)
table depicts NRB Commercial Bank Limited has always (ROA)
been consistent to manage the capital adequacy ratio
.c
Positive growth of Profit Before Provision and Tax (PBPT)
above the regulatory requirements. The Bank has been & Profit After Tax (PAT) in compare to the 2016 is not
successfully managing the incremental growth of the consistent in term of Earnings per share (EPS) or return
d
Risk Weighted Assets by ensuring diversification of the to the shareholder due to inclusion of 32.01 million
portfolio in SME, Retail and Corporate segments. shares in paidup capital as approved 4th AGM held on
ab

23 April 2017.
Operational Performance
Despite downward lending cap and rise of default rate, Foreign Trade Business
NRBC Bank maintained its operating-profits growth at Trade Business Comprises Export, Import and
nk

19.80% which was in between of industry growth rate Remittance. Exports items of Bangladesh Include
15% to 30% as published 01 January 2018 edition of Readymade Garments, Remittances and the domestic
“The Daily Star”. Agricultural sector. The country has pursued export-
oriented industrialization, with its key Export sectors
Particulars 2017 2016 Change
la

include Textiles, Shipbuilding, Fish and Seafood, Jute

Total operating and Leather goods. Bangladesh spends the most on
6,672.79 5,880.00 13.48% imported refined petroleum oils, Raw cotton, Woven
income
fabrics made mainly from Cotton, Wheat, Sugar, Palm
Total operating oil and Mobile phones. Bangladesh is still under the
4,830.87 4,342.48 11.25%
expense suspension of Generalized System of Preferences (GSP)
Operating Profit in USA market for readymade garments.
(Profit before 1,841.92 1,537.52 19.80% NRBC Bank achieved on average growth 9.10% in export
provision and tax) business over the last five year and, at the same time,
Profit before Tax average import growth was 33.01%. Achievement in
1,397.82 1,307.90 6.88% foreign trade business was the result proper intervention
for the year (PBT)
by the management to build up credit line, Relationship
Tax provision 468.88 438.87 6.84% Management Account (RMA) with correspondent Bank
and Nostro account with leading bank in abroad. Year
Profit after Tax
928.94 869.03 6.89% wise results of foreign trade performance are shown
(PAT)
below:
Earnings Per
1.89 1.90 -0.53%
Share (EPS)

52 NRB Commercial Bank Limited

 in million otherwise specified

Directors’ Report
Particulars 2017 2016 2015 2014 2013
Import 24,786.54 18,133.73 12,377.90 7,223.80 1,326.20
Export 22,459.69 16,885.62 11,772.60 5,964.80 265.40
Remittance 447.01 409.74 399.30 275.70 81.90
RMA 152 148 135 116 70
Nostro Account 12 13 11 10 09
Foreign Remittance Sub Agencies 5 5 3 1 0

However, comparing the Foreign trade business with the management is working to increase foreign remittance
year 2016, it showed that volume of business increasing in line with the goal of establishment of this bank. In the
in 2017, but decreasing trend in term of percentage. year export volume of NRBC Bank Ltd Increased by more
35,000.00 Import than 9.00%, Import Increased by more than 33.01% and
Export Remittance increased by 2.70% in compare to 2016.
30,000.00 24,786.54
22,459.69
(1b) Maintenance of Required Reserve in the Audited

om
25,000.00
18,133.73
16,885.62 Financial Statement approved by Board [Section 184
20,000.00
(1b) of the act]:
15,000.00
NRBC is consistently maintained or comply the 20%
Remittance
10,000.00 statutory reserve in pursuant to Section 24 of the Bank
Companies Act 1991, as amended 2013 & 2018 and its
5,000.00 447.01 409.74
.c will be continued each year until the cumulative balance
0.00
2017 2016 2017 2016 2017 2016 of the Statutory Reserve is equal to the amount of paid
up capital account.
d
National remittance dropped to a six-year low to $13.53 During the year 2017, statutory reserve exceeded Tk.
billion in 2017 from $13.61 billion as many expatriate 500 million landmarks after transfer of 20% of Pre-tax
ab

Bangladeshis sent money home through illegal channels profit to Statutory Reserve. Below Table showed that 5
along with lower exchange rate. Bank also experienced a year Statutory Reserve position which was impressive:
little bit higher remittance flow than of 2016. The Bank
nk

Taka In million

Statutory Reserve 2017 2016 2015 2014 2013

Beginning Balance 462.77 203.22 44.38 7.65
la

Transfer during the period from pre-tax profit 275.09 259.55 158.84 36.73 7.65
Closing Balance of Statutory Reserve 737.86 462.77 203.22 44.38 7.65
% of Changes over previous period 59% 128% 358% 480% 0
% of Changes from base period 2013 9,545% 5,949% 2,556% 480% 100%

Bank is able to increase the statutory reserve more than (1c) Recommendation of dividend by the Board of
100% (average) over the years resulting Net Assets Value Directors [Section 184 (1c) of the act]
(NAV) constantly increased to Tk. 12.95 at the end of
Dividend is the remaining rest to the shareholder. Stable
2017 which 5.56% higher than previous year because of
dividend policy indicates maximization of profitability
Tk. 275.09 million of Statutory Reserve transferred from
and confidence of the stakeholders. The Board of
Profit before Tax. No other reserve was maintained/
Directors is continuously trying to uphold and protect
proposed by Board of Directors during the period under
the interest of all sponsors/shareholders and ensure
consideration.
stable growth of the Bank by adopting prudent dividend
declaration. Dividend history of the last three years of
the Bank:

53
 Annual Report 2017

Taka In Million

2016 2015 2014

Form of Dividend
Rate Amount Rate Amount Rate Amount
Cash 5% 228.97 6% 266.76 1% 44.46
Stock 7% 320.56 3% 133.38 0% -
In continuation of the previous three financial years, the Board of Directors in its 64th meeting held on 28th March
2018 recommended for 10% dividend (2% in the form of cash & 8% in the form of Stock) for the year 2017.
Therefore, distribution of dividend for the year 2017 shall be as under:
Taka In Million
Rate of Dividend
Form Amount Remarks
Recommended by the Board
Will be distributed among the
Shareholders Approved in its 5th AGM,
2% Cash 98.00 if any, which name appeared in the

om
company register on record date.
Paid up capital will Stand
8% Stock 392.00
Tk.5,292.00 million
Like previous year of 2016, aforesaid combination Authorized
Proposed Name Types
of dividend for 2017 in view to strengthen the capital Capital [Tk. In Mill]
base as per BASEL III requirement which has undergone
.c
NRBC Asset Management/
implementation by Bangladesh Bank since 2014. Strong NRBC Bank Limited Asset Subsidiary 150.00
Management
and large capital base of the Bank is being enhanced the
d
capacity of large loan/investment exposure. NRBC Management Limited Associate 50.00

However, the Dividend recommended by the Board of The aforesaid companies will be in operation after
ab

Directors is placed before the next 5th Annual General necessary approval from the concerned regulatory
Meeting for approval which will be held on 21st July bodies.
2018, Saturday, at 11:00 am at the Boardroom of the
Bank, Silver Tower, 52 Gulshan Avenue, Gulshan, Dhaka, No other material changes has occurred between the
end of the financial year and the date of the Directors’
nk

Bangladesh.
Report placing before AGM except the Board of
Directors in its 64th Board Meeting held on 28th March
2018 recommendation of Dividend @ 10% dividend (2%
in the form of cash & 8% in the form of Stock) for the
la

year 2017 which is expected to be approved in the 5th

Annual General Meeting of the Bank.
(2) Material Change of the state of company’s affairs
[Section 184 (2) of the Act]
In the Directors’ Report it was mentioned that no
material changes for appreciation of the state of the
company’s affairs by its members that have occurred
during the financial year 2017:
“Signing ceremony after recommendation of 10% dividend in
the 64th meeting held on 28th March 2018” (a) Change in Company’s Business Nature [Section 184
(2a) of the Act]
(1d) Material changes and commitments occurred
between the end of the financial year and the date Like as previous director report, no material change has
of the Directors’ Report [Section 184 (1d) of the act] been occurred in the company nature of business for the
year 2017. NRBC Bank emphasis on expansion of network
NRBC has decided or committed to form another such as 10 new branches, 03 agent points commenced in
Merchant Banking/Cash Management Company in the 2017 with a view to more coverage in the geographical
64th and 66th Board Meeting held on 28th March 2018 area of Bangladesh. NRBC is also trying to channelize the
and 28th May 2018 respectively under name & style Foreign Remittance service by establishing relationship
along with ownership structure: with reputed remitter agency in abroad to distribute

54 NRB Commercial Bank Limited

the same among the beneficiary through all branch i. Banking Industry outlook and possible future

Directors’ Report
network and agent point. MoneyGram is added in the developments in the Banking industry
remittance service in 2017 to expansion the service to
the beneficiary. The economy grew by 6.3 percent on average for more
than a decade. The growth rate was over 7 percent in
(b) Change in the company’s subsidiaries or in the the last two fiscal years.
nature of the business carried on [Section 184 (2b) of
the Act]: Bangladesh’s gross national income (GNI) per capita
now stands at $1,610, well above the $1,242-mark,
Subsidiary company NRBC Bank Securities Limited successfully a prerequisite for becoming a lower-middle income
completed its first year of operation after its commercial country from a least developed one.
operation on December 12, 2016 and Bank has no intention
to change its nature of business in the near future. Banking sector was hited by a serious liquidity crisis for
last couple of months. As a result, banks’ lending rates
The Board of Directors decided to form another have hit double digits again after more than a year, making
subsidiary company named as NRBC Asset Management things harder for businesses and consumers alike.
Limited in its 64th Board Meeting held 28th March 2018 in
view to earn interest and fee base income by pooling of Fitch Ratings has also expressed concern over the
prospective client fund into securities that match declard weak Bangladesh banking sector, as it is lacking in
financial objectives .The Board of Directors also decided efficient capital adequacy ratio despite projecting a
‘stable’ economic state maintaining the ‘BB-’ rating for

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to form another associate company NRBC Management
limited in its 66th Board Meeting held on 28th May 2018 Bangladesh for third consecutive years.
for Cash management along with other ancillary service LR Global’s research study showed that the banking
to the bank and potential customer. sector in Bangladesh has highest share of NPL and the
(c) Change in categories of business in which the Bank lowest Capital Adequacy Ratio compared to its peer
economies.
has an interest [Section 184 (2c) of the Act]
.c
No other changes occurred during the financial year In this situation, strategies, like giving a strong drive
except expansion of network to cover geographical to collect idle money from savers and bring earnings
d
location in Bangladesh. of the Non-Resident Bangladeshi (NRBs) with financial
and non-financial benefits, and stopping loopholes of
(3) Fullest information and Explanation contained in
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siphoning money can improve the scenario.

the Auditors’ Report [Section 184 (3) of the Act]
A good chunk of money owned by garment workers is
The Board Audit Committee has made threadbare not usually coming to the banking sector. Although it is
discussion with auditor of MABS J Partners, Chartered tiny at the individual level, it may be huge altogether.
nk

Accountants and Hoque Bhattacharjee Das & Co., Banks can form a tailored one-time or recurring deposit
Chartered Accountants in the 20th AC meeting held on 27 product by offering financial and non-financial benefits
March 2018 to finalize theFinancial Statement to form to this section of the society.
expression of opinion in the Auditors’ Report. The then In case of financial benefits, banks may consider a
la

referred to Board of its 64 meeting held on 28th March rational amount of interest, extend secured overdraft
2018 where it was duly reviewed the Auditors’ Reports facility and give flexible time in depositing money.
issued by the Auditors’ based on the consolidated Non-financial benefits can be awarding a prize to kids of
Financial Statements of the Group for the year ended 31 garment depositors for academic and extra curriculum
December 2017. achievements, making available medical treatment at a
discounted rate and offering easy collection procedures.
The Auditors’ did not mention any material misstatement
or significant disagreement of the Bank’s consolidated NPL not only gets to the heart of what a bank needs to
financial statements. The Auditors expressed an get a handle on, its impact is also felt in a number of
unmodified opinion on the consolidated financial ways right across individual institutions and sectors, and
statements of the Group viz. true and fair view opinion the economy as a whole. So obviate the scenario of NPL
on the consolidated Financial Statements of the Group apartment from strong monitoring of Bangladesh Bank,
NPL may be dealt by the following ways: 1) steering and
for the year ended 31 December 2017.
decision-making; 2) NPL operating model; 3) internal
The Additional Statement in the Directors’ Report control framework; 4) NPL monitoring, and 5) early
according to Notification No. SEC/CMRRCD/2006 warning processes.
158/134/ Admin/ 44 dated 07 August 2012 of the These are helped to further improvement of banking
Securities and Exchange Commission apart from the sectors of Bangladesh having strong capital base to keep
Section 184 of Companies 1994: pace with the up gradation from LDC.

55
 Annual Report 2017

ii. Segment-wise performance: been done of the both segment of the Business for the
2017. Subsidiary segment NRBC Bank Securities limited
NRBC and its Subsidiary Company NRBC Bank Securities
increased after tax profit by 118.23% over the year 2016,
limited have concluded its 5th year and 2nd year of
but decrease its Balance Sheet due to decrease of client
operation respectively. A median performance has
deposit.
Amount in Million
Particulars NRBC Subsidiary Consolidated
Cash in Hand & at Bank 5,492.31 155.46 5,501.74
Investment 6,495.12 369.01 68,641.32
Loan & Advances 42,960.51 39.77 43,000.28
Fixed Assets 477.92 9.31 487.23
Others Assets 2,017.29 197.72 1,675.97
Borrowing 12,807.23 - 763.43
Deposits 452,265.96 15.95 45,252.39

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Other Liabilities 4,588.43 14.05 4,585.45
Shareholder Equity 6,347.40 423.40 64,107.97
Balance Sheet Size 57,443.15 453.40 57,529.35
Operating Profit 1,813.83 28.09 1,841.92
Profit after Tax 912.29
.c 16.65 928.94
NBRC Bank is representing the contribution of 98.20% 9.31% in 2017 and 9.23% in 2016.
profitability in the group which is 0.87% lower than
d
Still cyber security risk is worrisome issue in the Banking
the year of 2016. The Subsidiary Company NRBC Bank
Sector of Bangladesh. A research study conducted by
Securities limited declared @5% Cash dividend for the
ab

BIBM showed that a Total of 52% Banks in the country

year 2017 in its 2nd Annual General Meeting held on 25
are at high risk of cyber security. Of the Banks, 16% are
April 2018 and Parent Company is entitled to get 90%
at a very high risk and 36% at high risk.
of its dividend. However, 10% non-controlling interest
has impact on regulatory capital of the company due to How the Risks are addressed by NRBC Bank
nk

profitability of the subsidiary.

Both of Board and Management are aware of the risk
iii. Risks factors and concern by Bank to mitigate such factors prevail in the Banking sector:
risk:
a. A several deposit campaign has been observed
la

Banking sector faced a serious liquidity crisis after 2nd since mid of 2017 and got response as well.
half of 2017 despite the economic growth rate was over Redesign of the scheme deposit product having
7 percent in the last two fiscal years. As a result, banks’ attractive features as well as introduction of new
lending rates had hit double digits again after more product on demand of the market.
than a year, making things harder for businesses and
b. Deposit mobilization activities along with
consumers alike.
relaxation of CRR by Bangladesh Bank obviate the
ADR is another challenge for Bank Sector; most of the liquidity crisis. Liquidity crises exist in the market is
commercial banks exceed the prescribed ratio and observed little bit easier.
disburse the loan more than 90 per cent against their
c. As of 31st December 2017, the Advance Deposit
collected deposit. These crises affects severely when Ratio (ADR) stood at 92.18% which was on the
Department of Offsite Supervision (DOS) of Central Bank higher side considering the financial climate of that
has issued the directive to cut off of ADR to 83.50 % from year. ADR changes according to the ever-changing
85.00 %. condition of banks’ assets and liabilities. As such,
in line with Bangladesh Bank guidelines, The Board
The total value of defaulted loans rose by almost one-
& Management have been and still are working on
fifth last year. Defaulted loans rose to Tk74,303 crore in reducing to 83.5% in the current year as extend
2017 from Tk. 62,172 crore in 2016 a year-on-year rise time limit fixed by Bangladesh Bank.
of Tk. 12,131 crore or 19.50%. As a proportion of the
total outstanding loans, defaulted loans accounted for d. In 2018, bank is focusing more in SME and retail

56 NRB Commercial Bank Limited

 credit and will further reduce its large loan iv. Economic value of the Shareholder or Multiplier

Directors’ Report
exposures, which is gradually decreasing over the Analysis on Profitability to the shareholder value
last two years.
In multiplier analysis to determine the factor affect the
e. The Board as well as executive committee oversee profitability to the shareholder, DuPont analysis is one
the credit proposal and approved the loan on basis of the approaches to decomposing return on equity for
of merit such as AD ratio, Cost of deposit, Non- better understanding about which factor contributed
Performing Loan (NPL) of the respective Branch. to the ROE most and which factor caused the ROE to
move. For broader analysis, we used 5 factors model
f. Strong drive has given to recover the loan to come that covers net profit Margin, total asset turnover and
down the present NPL rate 2.46%. Newly establish financial leverage. Net profit margin is further broken
recovery department has put pressure on default down to operating profit margin, effect of non-operating
borrower to recover the same so that health of the items and tax effects.
Bank may not affect.
g. In 2017, Bank has made Tk.16.04 million ROE
investment to mitigate the cyber security risk and, DuPoint
2017
continually, work on it.

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h. Bank updated the IT solutions in virtual flavor
First Level
through VMWare software where installed Breakdown
Net Profit
Margin
Total Asset
Turnover
Financial
Leverage
Log & Event Management Software, Network
Monitoring System, Patch Management Software
for enhancing OS level security.
Secound
.c
i. Apart from these, bank is also striving to introduce
Level
Breakdown
Operating
Profit Margin
Effect of
Non-Operating
Items
Tax
Effect
automation process in its credit operation and will
progressively centralize the process.
d
Particulars 2017 2016 2015 2014 2013
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ROE (Shareholder Return) 15.30% 15.97% 11.55% 1.75% 0.51%

Net Profit margin 13.92% 14.78% 11.92% 3.24% 3.71%
Total Asset turnover 0.1201 0.1308 0.1538 0.1410 0.0751
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Financial Leverage/Equity
9.156 8.2596 6.299 3.826 1.827
multiplier
Tax effect 66.46% 66.44% 70.65% 42.75% 57.50%
Effect of
75.89% 85.07% 85.94% 55.45% 41.40%
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Non-Operating Items
Operating Profit Margin 27.60% 26.15% 19.63% 13.66% 15.57%
In second level analysis, Operating Profit Margin of 2017 financial year of 2017 due to no change in scale of
ascended to 27.30% compared to that of 26.15% in operation, Accounting policy, Corporate Tax policy,
2016 for 51.45% growth of net interest income. Effects Foreign Exchange, accruals/disposing on long-term
on non-operating items include loan loss and other contracts, etc.
provision which decrease to 75.89% from 85.07% due to
increase of Provision by 1.94% resulting that increased of Recently Finance Minister AMA Muhith has proposed
non-performing loan. However, Tax burden increased to to reduce corporate tax for listed banks, insurance
66.46% from 66.40% causes of lesser tax bracket income and financial companies along with Bank/Insurance/
decrease in 2017 out of non-funded income which also FIs opened in 2013, aiming at pulling in investors.
decreased compared to that of 2016. The proposed corporate rate of banks, insurance and
Though two negative impacts in second level analysis, financial entities will be fixed at 37.50% from Present
but growth of Operating Profit Margin amplified Net 40%.
Profit Margin compared to that of 2016.
If the proposed change in corporate tax rate passed in
v. Continuity of Extra-Ordinary gain/Loss by NRBC the parliament, Tax burden will be reduce to Tk. 404.30
Bank million for the year 2017 (Assessment year 2018-2019)
which will effect on the shareholder value.
No such “extraordinary” gains or losses during the

57
 Annual Report 2017

vi. Related party transactions and its disclosure viii. An explanation for deteriorate of financial results
The basis for related party transactions has been stated after Initial Public Offering IPO, if any
in the Corporate Governance Report and a statement
Such explanation is not applicable for NRBC Bank since
of related party transactions has been presented in
Bank has yet to go for Initial Public Offering (IPO). At the
the Annexure J1 of Notes to the Audited Financial
same time, the financial results were so much impressive
Statements.
in the last consecutive 5 year that discussed in “The
vii. Utilization of proceeds from public issues, rights State of Affairs of the Company” Segment.
issues and/or through any others instruments
ix. Significant variance occurs between Quarterly
Bank is yet to go for Initial Public Offering (IPO) which is Financial Performance and Management
supposed to be direct listing in the year of 2016. However, explanation about the variance
at the request of Board of Directors, Bangladesh Bank
Operating performance has declined after completion
accorded delayed direct listing with any Stock Exchange in
of first Quarter and it continued to the third quarter. In
Bangladesh through Initial Public Offering (IPO) by three
fourth quarter operating Income Increases drastically as
years. Subsequently, Bangladesh Security and Exchange
classified loan converted to regular loan and amount of
Commission (BSEC) accorded the same. Therefore, the
Interest suspense transferred to Interest Income
Bank would go for IPO in the year 2019.

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Annual,
Particulars Q1, 2017 Q2, 2017 Q3, 2017 Q4, 2017 *QA, 2017
2017
Net Interest Income 364.61 341.90 .c419.74 444.62 392.72 1,570.87

Non-Interest Income 386.13 394.63 297.62 876.59 488.74 1,954.98

Operating Income 750.75 736.54 717.36 1,321.21 881.46 3,525.85

d
Operating Expenses 345.80 391.10 393.57 553.47 420.98 1,683.93
ab

Operating Profit 404.95 345.44 323.79 767.74 460.48 1,841.92

*QA = Quarterly Average

Apart from regularization of classified loan, a chunk of xi. Fair Presentation of the financial statements
nk

capital gain, gain from portfolio investment in share and prepared by the management
exchange gain of Tk. 546.17 million is contributed to
soaring the income in the 4th Quarter which even higher The Management of NRBC bank is responsible for
than quarterly average. preparation and fair presentation of the Financial
la

Statements. The said consolidated financial statements

x. Remuneration to directors including independent prepared by the Management as at and for the year
directors ended on December 31, 2017 have been presented
Though Independent Director is not prerequisite for fairly, in all material respect, its state of affairs, the results
Bank in the Board due to company is not listed with of its operations, Cash Flows and Changes in equity.
any stock exchange in Bangladesh, but appointment of The external auditors i.e. MABS J Partners, Chartered
Independent Director is under process. Each Director is Accountants and Hoque Bhattacharjee Das & Co.,
entitled to get meeting attending fees of Tk.8,000.00 and Chartered Accountants, have also provided their opinion
also travelling expenses at actual basis for attending board on the same by issuing an unqualified audit report. We
and committee meetings as per BRPD Circular Letter #11 are referring page No. 122-123 to see the audit report
dated October 04, 2015. No other financial benefits were issued by the External Auditors.
provided to the Directors of the Bank. The total amount xii. Proper books of account maintained by the Bank
of Directors’ remuneration and the travelling expenses for
the year 2017 are shown at the Table below. Proper books of accounts, as required by law, have been
kept by NRBC Bank. Bank has a core banking solution
Sl Description Taka in Million “Bank Ultimus” for proper recording of all transactions
in compliance with the Companies Act, 1994 and Bank
1 Directors’ Fees with VAT 2.01
Companies Act, 1991. The external auditors i.e. M/s.
2 Travelling and Haulage 15.29 MABS J Partners, Chartered Accountants and M/s.
Hoque Bhattacharjee Das & Co., Chartered Accountants

58 NRB Commercial Bank Limited

have also opined on the same in point (d) in the “Report be achieved.

Directors’ Report
on Other Legal and Regulatory Requirements” of their
NRBC Bank has designed it’s internal controls system
audit report. The said audit report has been mentioned
(i.e. structured Internal Control and Compliance (ICC)
in page No.123 .
Division) in such so that safeguard of shareholders’
xiii. Accounting policies as well as accounting estimates investments and the Bank’s assets are to be ensured.
have been consistently applied in preparation of Therefore, the main objective of internal control in
the Financial Statements NRBC Bank is to help the bank perform better through
the optimum use of its resources. Through internal
Accounting policies are the specific principles, bases,
control system bank identifies its weakness and takes
conventions, rules and practices applied by an entity
appropriate measures to overcome the same. The Board
in preparing and presenting Financial statements.
retains the ultimate responsibility for its operations,
Appropriate accounting policies have been consistently
though it has delegated to the Audit Committee for the
applied in preparing the financial statements of the
review of the adequacy and effectiveness of the system
Bank and that of the accounting estimates are based
of internal controls.
on reasonable and prudent judgment. Estimates and
underlying assumptions are reviewed on an ongoing A resonant internal control system helps a bank to
basis and any revisions to these are recognized in the grow in a safe and sustainable way. The design and

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period in which the estimate was revised and in any implementation of any internal control system depends
future period affected. The significant accounting largely on a bank’s size, the mode of its operation and its
policies applied and accounting estimates used for risk profile. Effective control practices generally include –
preparing the Financial statements of the Bank have
⇒⇒ Control Environment
been stated in detail in the notes # 2 (Page No. 135-156)
in the Audited Financial Statement.
.c ⇒⇒ Risk Assessment
xiii. Preparation of Financial Statements in compliance ⇒⇒ Control Activities
with BAS/BFRS, as applicable in Bangladesh, and
d
⇒⇒ Segregation of Duties
any Departure there-from has been adequately
disclosed ⇒⇒ Accounting Information and Reconciliation
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The financial statements of the Bank as at and for the ⇒⇒ ICT Security
year ended 31 December 2017 have been prepared ⇒⇒ Self-Assessment/Monitoring
under historical cost convention and in accordance with
NRBC Bank has approved Human Resources Policy
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Bangladesh Financial Reporting Standards (BFRSs), the

“First Schedule” (section 38) of the Bank Companies Act where it has its recruitment, Transfer, Promotion and
1991, as amended (up to 2013), BRPD Circular No. 14 motivational guidelines, Excellent Pay package, Training
dated 25 June 2003, related Bangladesh Bank Circulars, & counseling program etc.
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The Companies Act 1994, the Securities and Exchange As per directives of Bangladesh Bank, Bank has a
Commission Rules 1987, and other related laws, approved Credit Policy which includes independent
regulations and rules applicable in Bangladesh. marketing at branch level & Head office, Credit
However, if the requirement of provisions and circulars issued assessment & Approval by Credit Risk Management
by Bangladesh Bank differ from those of other regulatory division and activities of documentation & monitoring
authorities and accounting standards, the provisions and by Credit Administration.
circulars issued by Bangladesh Bank shall prevail. NRBC bank has formed a Risk Management Committee
As such the Bank has departed from certain specific (RMC) of the Board and a Risk Management Unit (RMU) as
requirements of BAS/BFRSs which contradict with those per Bangladesh Bank guidelines to oversee and monitor
of Bangladesh Bank, being the prime regulator, which bank wide risk assessment, identification, measurement,
are adequately disclosed in Note 2.2 (i) to (xiv) in the analysis and mitigation activities performed by different
financial statements. risk management functions. RMD under supervision of
RMC of the Board sets the risk appetite of the Bank.
xv. The system of internal control has been effectively
implemented and monitored NRBC bank always properly authorizes all transactions
and activities and there is no deviation among them
An internal control system comprises the whole network regarding authorization. Bank regularly segregate
of systems established in an organization to provide authorization functions, recording and custodian
reasonable assurance that organizational objectives will function.

59
 Annual Report 2017

NRBC bank always maintains accurate records of all xvi. Ability of NRBCB Bank as Going Concern
financial transactions in the Core Banking Solution “Bank
There is no significant doubt upon Bank’s ability to continue as
Ultimus” as well as ensure to restrict physical access to
a going concern in the foreseeable future. The consolidated
the system by unauthorized users to protect records and
financial statements of the Bank have been prepared on
documents. In addition to this, it ensures reconciliation
the assumption that the entity is a going concern and will
between two independently maintained records.
continue in operation for the foreseeable future.
NRBC bank has an independent Internal Control and
Hence, it is assumed that NRBC has neither any intention
Compliance Division (ICCD) that are regularly evaluating,
nor in need of liquidation or curtail materially the scale
assessing and rating the risks of various Departments and
of its operations in near future.
Branches and submit these audit reports periodically
to the Audit Committee of the Board for their further xvii. Significant deviations from the last year’s
evaluation and recommendation. The Compliance Unit operating results and the reasons thereof
of ICCD is also monitoring the regulatory compliance
Business volume has expanded alongside the expansion
status of NRBC Bank on a continuous basis and updates
of its network to take a position in Banking Industry
the same among relevant Division & departments upon
of Bangladesh. Major indicators are showing positive
compliance of any new issue imposed by regulators.
change over the year of 2016 except Investment income.

om
However, Bangladesh Bank vide their DOS circular letter Less investment in Bills & Bonds resulting its low return
no: 17/2012 has launched a Self-Assessment Format in had on impact the lower investment income
order to aid Bank for assessing itself and advised Bank to
Increase of loan loss provision demonstrated a sharp
send it quarterly basis to Bangladesh Bank and Bank are
decline in Return on Asset and Return on equity though
doing the same accordingly. NRBC Bank has submitted
cost of deposit and cost to income ratio went down in
its self- assessment activities to report to Bangladesh
.c
the year 2017 compared to the year 2016
Bank timely.
Total Income went up and Cost of Income went down,
The external auditors i.e. Hoque Bhattacharjee Das & Co,
d
which indicates a sustainable growth of the Bank. Net
Chartered Accountants, MABS & J Partners , Chartered
profit after tax increased up by 6.91%. Therefore, Board
Accountants also provided their opinion on adequacy
ab

of Directors recommended @ 10% dividend (2% in form

of internal audit, internal control and risk management
cash & 8% in form of Stock) in its 64th meeting held on 28
functions of the bank under point (b) of the “Report on
March 2018 for the year 2017 among the shareholders
Other Legal and Regulatory Requirements” in their audit
of the Bank.
report. The said audit report has been mentioned in
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page no.123 The Operating result of the Banks and group are as follows:

Group NRBC Bank Ltd

Operation Result
2017 2016 Change (%) 2017 2016 Change (%)
la

Interest Income 4,717.82 3,905.39 20.80% 4,712.90 3,905.36 20.68%

Interest Expenses 3,146.94 2,868.14 9.72% 3,147.98 2,875.96 9.46%
Investment Income 1,259.20 1,488.94 -15.43% 1,236.36 1,481.72 -16.56%
Non-Interest Income 695.77 485.67 43.26% 678.54 485.56 39.74%
Non-Interest Expenses 1,683.93 1,474.34 14.22% 1,665.99 1,469.32 13.39%
Total Income 6,672.79 5,880.00 13.48% 6,627.80 5,872.65 12.86%
Total Expenses 4,830.87 4,342.48 11.25% 4,813.97 4,345.27 10.79%
Operating Profit 1,841.92 1,537.52 19.80% 1,813.83 1,527.37 18.75%
Provision for Loans and Others 404.39 186.79 116.49% 404.39 186.79 116.49%
Profit Before Tax 1,397.82 1,307.90 6.88% 1,375.47 1,297.75 5.99%
Provision for Tax 468.88 438.87 6.84% 463.18 436.40 6.14%
Profit After Tax 928.94 869.03 6.89% 912.29 861.35 5.91%
Cost income ratio 47.76% 48.95% -2.43% 47.88% 48.95% -2.20%
Return on investment (ROI) 15.30% 15.97% -4.17% 15.17% 15.96% -4.95%
Return on assets (ROA) 1.67% 1.93% -13.39% 1.64% 1.92% -14.22%

60 NRB Commercial Bank Limited

 Group NRBC Bank Ltd

Directors’ Report
Operation Result
2017 2016 Change (%) 2017 2016 Change (%)
Cost of Deposit 6.47% 6.91% -6.37% 6.47% 6.91% -6.37%
Net Assets Per Value 13.00 12.42 4.64% 13.00 12.42 4.64%
Earnings Per Share 1.89 1.90 -0.19% 1.86 1.88 -1.02%
xviii. Summarized all key operating and financial data in comparison of 2016.
over last preceding 5 (five) years.
Credit Deposit ratio is little bit higher than regulatory
NRBC Bank has just completed five year of its operations rate. However, higher the use loanable fund push into
as required to disclose in the director Report and profitability which impact on retain surplus and statutory
achieved a sustainable growth in operation. All segment reserve requirement which is higher than 2016.
of business showing increasing trend in the year of 2017
key operating and financial data 2017 2016 2015 2014 2013

Loans & Advances 43,000.28 37,408.28 23,227.39 14,412.25 3,717.15

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Deposits 45,236.44 44,143.28 28,880.68 17,270.88 4,909.96

Equity 6,410.80 5,728.73 5,152.92 4,587.85 4,399.19

Balance Sheet Size 57,529.35 53,619.10 36,259.01 24,848.11 9,537.59

Total Contingent Liabilities &

16,591.43 12,934.95 8,651.75 4,492.66 1,083.11
Commitments

Import 24,786.54
.c
18,133.73 12,377.90 7,223.80 1,326.20

Export 22,459.69 16,885.62 11,772.60 5,964.80 265.40

d
Remittance 447.01 409.74 399.30 275.70 81.90
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Operating Profit 1,841.92 1,537.52 922.42 331.18 92.54

Profit Before Tax 1,397.82 1,307.90 792.73 183.63 38.31

Profit After Tax 928.94 869.03 560.08 84.78 22.03

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Earnings Per Share 1.89 1.90 1.26 0.19 0.05

Capital - Core (Tier I) 6,235.42 5,690.27 5,106.67 4,552.86 4,395.88

Capital - Supplementary (Tier II) 545.13 517.33 338.09 214.00 55.88

la

Total Capital 6,780.55 6,200.61 5,444.76 4,766.86 4,451.76

Capital Surplus/(Deficit) 1,137.39 1,319.26 2,567.96 3,125.33 3,898.26

Statutory Reserve 737.87 462.77 203.22 44.39 7.66

Retained Earnings 730.51 627.86 419.29 62.42 14.37

Capital Adequacy Ratio 13.52% 13.50% 18.93% 29.04% 80.43%

Cost income ratio 47.76% 49.03% 53.81% 66.58% 73.84%

Return on investment/Equity (ROI/ROE) 15.30% 15.97% 11.55% 1.75% 0.51%

Return on assets (ROA) 1.67% 1.93% 1.83% 0.46% 0.28%

Cost of Deposit 6.47% 6.91% 8.40% 9.81% 11.13%

Loan Deposit Ratio 92.18% 82.99% 77.00% 76.83% 72.81%

% CL to Total Loans & Advances 2.46% 0.52% 0.27% 0.00% 0.00%

61
 Annual Report 2017

Non-Performing loan (NPL) of the bank is soaring up it was reconstituted in the 2nd Annual General Meeting
over the preceding year of 2016 though it’s below from held on 28 February 2015. Subsequently, in the 3rd and
industry average. The Board believed that management 4th Annual General Meetings held on 18th April 2016 and
is more concerned regarding the recovery and 23rd April 2017 respectively no decision were adopted
regularization of Non-Performing loan (NPL). regarding election/reelection of Directors due to the
matter of subjudiced. Afterwards, the Board of Directors
The Board of Directors has also given many directives to
had got changes of the Directions in the year 2017. Mr.
improve this undesirable position of NPL
Tamal S M Parvez and Mr. Mohammad Shahid Islam
xix. Reasons thereof if the issuer company has not were elected as new Chairman and the Vice Chairman
declared dividend: of the Board of Directors in its 60th Board Meeting held
on December 10, 2017. However, before that the Board
The Board of Directors of NRBC Bank recommended @
of Directors conducted their meetings as per previous
10% dividend (8% in form of Stock & 2% in form of cash)
composition of Board Members in the usual manner.
for the year 2017 on the shareholding of the record date
The Board discussed the issues placed before them in
declared by Board in its 64th meeting on 28 March 2018
each meeting and subsequently decisions are adopted
and, therefore, explanation would not require in this regard.
in a prudent way fulfilling their duties to the best of their
xx. Board meetings held during the year 2017 and abilities.

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Members’ attendance thereof
During the year 2017, total 12 Board Meetings were held.
The present Board of Directors had been in effect since The attendance records of those meetings are as follows:
Total Number of Meetings
Sl. Name of the Members Status
held and Attended

01 Mr. Tamal S M Parvez

.c Chairman 12 / 07
02 Mr. Mohammad Shahid Islam Vice Chairman 12 / 10
d
03 Engr. Farasath Ali Director 12 / 12
04 Dr. Toufique Rahman Chowdhury Director 12 / 08
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05 Mr. A B M Abdul Mannan Director 12 / 06

06 Mr. Mohammed Oliur Rahman Director 12 / 08
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07 Mr. Mohammed Enayet Hossain Director 12 / 12

08 Mr. Md. Amir Hossain Director 12 / 10
09 Mrs. Kamrun Nahar Sakhi Director 12 / 00
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10 Mr. Abu Bakr Chowdhury Director 12 / 04

11 Mr. Loquit Ullah Director 12 / 09
12 Mr. Rafikul Islam Mia Arzoo Director 12 / 07
13 Mr. Mohammed Nazim Director 12 / 10
14 Engr. Syed Munsif Ali Director 12 / 10
15 Mr. Mohammed Adnan Imam Director 12 / 07
16 Dr. Nuran Nabi Director 12 / 11
17 Mr. Mohammed Manzurul Islam Director 12 / 11
xxi. The Pattern of shareholding in aggregate number February 20, 2013 as a Public Limited Company
of share and disclosure thereof under the Companies Act, 1994 (Act No.18 of
a) Parent/Subsidiary/Associated Companies and 1994). Bank has neither any parent/Associated yet
other related parties: to exist, nor its only NRBC Bank Securities limited
hold any share of the Bank i.e. all share hold by
53 distinguished Non-Resident Bangladeshis have Sponsors/Promoters of the Bank.
taken initiative to establish NRB Commercial Bank
Limited (NRBC Bank) which was incorporated on

62 NRB Commercial Bank Limited

 b) The Shareholding Pattern: Shareholders on the record date 30 April 2018

Directors’ Report
during the period were as under:
The Shareholding Pattern of the Sponsors/
Number of Sponsors/ Percentage of
Holding Range Number of Shares
Shareholders Shares
25000001 and above 96,427,337 3 19.68%
20000001-25000000 196,662,225 9 40.14%
15000001-20000000 38,571,185 2 7.87%
10000001-15000000 81,031,874 7 16.54%
5000001-10000000 37,771,345 5 7.71%
01-5000000 39,536,180 33 8.07%
Total 490,000,146 59 100.00%
c) Shareholding position of CEO, CFO, CS and HoICC: of ICC do not hold any share during the period under
review.
53 distinguished Non-resident Bangldeshis promoted
the NRBC Bank and, presently, Shares held by 59 d) Shareholding position by executive of the Bank :

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shareholders as of record date on 30 April 2018. It may
Like as para (c) mentioned above, no executive of bank
be mentioned here that Bank is not yet listed any stock
hold any share during the period under review. List of
exchange in Bangladesh. The Chief Executive Officer,
the top 5 executives of the Bank and their share holdings
Company Secretary, Chief Financial Officer and Head
are as follows:
SL Name Functional Designation
.c
1 Mr. Khondoker Rashed Maqsood, Managing Director Chief Executive Officer
2 Mr. Mukhter Hossain, Deputy Managing Director Chief Risk Officer
d
3 Mr. Kazi Md. Talha, Deputy Managing Director CAMELCO
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4 Mr. Kabir Ahmed, Senior Executive Vice President Head of International Division
5 Mr. Hajjaj Bin Mahfooz, Senior Executive Vice President Head of Principal Branch

BRPD Circular Latter No.12 dated 11 July 2001 and, in

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Appoinment of Auditors of the Bank [Section 210 of

the companies Act, 1994] this regards, Auditors submitted their expression of
interest for appointment.
Appointment of auditors is in pursuant of the section 210 (2)
of the companies Act, 1994 seconded by Article 149 of the It is also noted that Both Auditors were appointed for
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Articles of Association of the Company (NRBC Bank Limited) the year 2017 as per Bangladesh Bank approval vide
letter BRPD(Taskforce)/748/03/2017-8685 dated 27
Quote December 2017 which was initially recommend by the
The Company at each Annual General Meeting Board in it’s 59th meeting held on 26 November 2017
shall appoint one or more Auditors being Chartered subject to ratified their appointment in the 5th Annual
Accountants to hold the office until the next Annual General Meeting (AGM) of the Bank.
General Meeting. By this time, Board of Directors recommend for re-
Unquote appointment of Hoque Bhattacharjee Das & Co, Chartered
Accountants, MABS & J Partners , Chartered Accountants of
However, final approval of appointment from Bangladesh its 64th meeting held on 28 March 2018 as the auditors of
Bank subject to terms and condition of the BCD Circular the Bank for accord of approval in the 5th Annual General
letter no. 33 dated 23 December 1992 along with BRPD Meeting (AGM) of the Bank. There upon forward the
Circular letter no 12 dated 11 July 2001. matter to Bangladesh bank for taking consent/certification
MABS & J Partners, Chartered Accountant and Hoque of being appointed eligible auditors of the Bank for the
Bhattacharjee Das & Co., Chartered Accountant has Financial Year 2018 or hold office up to next AGM.
completed 1st year and 2nd year of Audit of the Hence, Appointment of auditors is placed before in the
Bank respectively and both of them are eligible for 5th Annual General Meeting (AGM) of the shareholder
reappointment In compliance with Bangladesh Bank of the Bank with remuneration among others:

63
 Annual Report 2017

Auditors Times Year Remarks

2017: Ratified the appointment
MABS & J Partners, Chartered Accountant 2nd 2017 & 2018
2018: New appointment
2017: Ratified the appointment
Hoque Bhattacharjee Das & Co., Chartered Accountant 3rd 2017 & 2018
2018: New appointment

Contribution to National Exchequer All kinds of taxes and levies are vibrant for government
blood on the way to build a civilized society. Hence, the
“No government can exist without taxation. This money NRBC Bank deposited/paid corporate tax on income,
must necessarily be levied on the people; and the grand art
consists of levying so as not to oppress” withheld Tax, VAT and Excise Duty to government
exchequer on time are shown below:

In Million(Tk.)
Increase over Increase over
Khat of Govt. Revenue 2017 2016 2015 2014
2016 (%) 2015 (%)
Corporate Tax paid by bank & Tax

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975.61 618.35 305.64 202.15 57.78% 102.31%
deduction at Source
VAT 84.90 53.98 36.07 32.11 57.28% 49.65%
Excise Duty 58.62 45.34 29.69 11.21 29.28% 52.71%
Total 1,119.13 717.67 371.40 245.47 55.94% 93.23%
The NRBC Bank has paid/deposited corporate tax of
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Acknowledgements
Tk.450.95 million in the Financial year 2017 (Assessment
Year 2016-17 and 2016-17) in compliance relevant provision The Board of Directors takes this opportunity to express their
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of Income Tax Act, 1984 out of total deposit tax deposit to gratitude to all the valued sponsor/ shareholders, Clients,
the treasury mentioned in the table. The Bank has paid Tk. Patrons and well-wishers for their continued support over
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84.90 million as VAT to the government which is 57.28% the years. As a 4th Generation Bank, NRB Commercial Bank
higher than 2016 and nearly twice than 2015. On the other Limited is able to explore different avenues of financial
hand Excise Duty from depositors and loan account holders services to mitigate the demand of the society. This progress
was deposited Tk.58.62 million in 2017 is higher than 2015 is primarily attributed to its teamwork, prompt and prudent
by 29.28%. In total Tk.1,119.13 million deposited/paid to decision making, efficient and cordial service, economic use
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government treasury in 2017 with an increment of 55.94% of resources and technologies.

over the previous year.
The Bank is grateful to the Government of the People’s
NRBC Bank is sincere in collection/deduction of taxes, excise Republic of Bangladesh, Ministry of Finance, Bangladesh
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duty & VAT along with depositing of corporate advance Bank, Bangladesh Securities and Exchange Commission,
tax in time goes to the implementation of government External Auditors and Registrar of Joint Stock Companies &
functionaries simultaneously. Firms for their continued support, prudent guidance and
advice towards the notable growth of the Bank, whose
Closure of Share Transfer Books and Record Date for patronage have facilitated our path towards the glorious
Dividend achievement so far made by the Company.
The Register of Members and the Share Transfer Books of The Board also expresses its deep sense of appreciation
the Bank took place upto 30 April 2018 for the purpose of to all the employees of the Bank for their devotion,
the 5th Annual General Meeting of the Shareholders of the excellent professionalism, teamwork, commitment and
Bank to be held on 21st July 2018 and for determining the initiatives which has led the Bank on the way of becoming a
names of the Members who would be entitled for dividend, sustainable organization to become itself as peerless in the
if any, declared by the Bank for the Financial year ended Banking Industry.
31st December 2017. Best regards and best wishes to all.
The Record Date for payment of the said dividend, if
On behalf of the Board of Directors,
approved by the Members at the 5th Annual General
Meeting, has been fixed on 21th July 2018. The said
dividend shall be paid to those Members whose name
appears on the Register of Members of the Bank as the
close of business hours on Monday 30 April 2018.

Tamal S M Parvez
Chairman
64 NRB Commercial Bank Limited
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Audit committee Report

Credit Ratings
 Annual Report 2017

Audit committee Report to the Shareholders and General Investors

Dear Shareholders and Stakeholders assignment. Both of induction and knowledge sharing
have enabled the Auditors to gain a deep understanding
I am pleased to present our annual Audit Committee
Report, which provides insights into our work and the of the business, its systems and processes. Like as
previous year of 2016, the Committee will observe the
issues we dealt with during 2017 audit and assurance as well as policy & procedures of
I disposed my duty as a chairman of Audit committee from the Bank during the current year.
27 December 2017 by duly reconstituted by the board
Details of committee activities for year 2017 can be
of directors 61st Board Meeting held on 10.12.2017
in accordance with Bangladesh Bank guidelines BRPD found on the pages to follow.
Circular No 11, dated 27th October, 2013 along with
Bangladesh Securities and Exchange Commission
(BSEC) Notification on Corporate Governance dated
07th August, 2012. As the Audit Committee (AC), we
assist the Board in fulfilling its oversight responsibilities Mr. Rafikul Islam Mia Arzoo
in areas such as the integrity of financial reporting, Chairman of the Audit Committee of the Board

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the effectiveness of the risk management and internal
control system and related governance and compliance
matters.
Integrity of financial reporting
We reviewed the Report from external auditors along
with threadbare discussion with them to ensure the
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accuracy and completeness of reporting disclosures
of the audited financial Statement 2017. It was
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included to maintain consistency with the business
strategy, compliance and to provide assurance to the
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Board, that financial statements are fair, balanced and

understandable, placed before 5th AGM for approval.
Risk Management and Internal controls
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The committee placed the greatest importance on sound

internal control processes & Risk Management System of
the bank. More emphasis to strengthen the IT processes
like previous year of 2016. Bank focused on Inspection
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Report from Department of Banking Inspection [DBI]

of Bangladesh bank to ensure the effectiveness of the
framework used to make sure sound internal control
system and risk management of the bank. However,
all of the reviews and recommendations helped us to
establish a better system for efficient internal control
processes & Risk Management System.
External auditors’
M/s. Hoque Bhattacharjee Das & Co., Chartered
Accountant, is completed the 2nd year and MABS & J
Partners, Chartered Accountant is completed first year
and both of them are eligible for reappointment In
compliance with Bangladesh Bank BRPD Circular Latter
No.12 dated 11 July 2001 and, in this regards, they
submited expression of interest. However, It is believed
that, Management of the Bank and both Auditors have
worked together to ensure a thorough induction process
as well as knowledge sharing while conducting there

66 NRB Commercial Bank Limited

 Audit Committee Report at a glance

Audit committee Report

Highlights/Progress made in 2017 Key Ares/Priorities for 2018

Transition of the Committee and its members in the Assess the effectiveness of new committee composition
year 2017 like previous year 2016. and focus to ensure that committee members have the
requisite experience and expertise.
Oversee the of Banking Companies Act, 1991 Focus internal audit on the Bank’s key risks, beyond
(amendment) in 2018 that placed before Board as per financial reporting and compliance.
instruction of Bangladesh Bank
Certification on effectiveness of Internal Control Policy, Understand the critical risks that could affect the
Practice and Procedure. business and its financial and public reporting.
Providing assurance to the Board whether the Quarterly Reinforce/review the audit quality and transparency of
Financial Statements or Annual Financial statements the external auditor’s effectiveness.
of 2017, taken as a whole are fair, balanced and
understandable.

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Observed the transition of one auditor with a view to Monitor on the new draft corporate governance
Increasing effectiveness of the external audit process guideline codes (CGC) by BSEC on December 19, 2017
and recommendation on reappointment. to bringing changes in existing corporate governance
guidelines and its effect on the Bank while enforce by
BSEC.
.c
Oversee the successfully overcome IT risk specially ATM Focus of introduction of new IT System specially Apps
fraud by adopting new technology or device. related Banking services along with monitoring of
cyber security to ensure control over IT Process, and to
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provide Protection against fraud .
Oversee the implementation status of Suggestions/ Strong monitoring on the default loans to keep down or
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recommendations of Regulatory Bodies in order protect the asset quality of the Bank with the collaboration
strengthen the internal control System of the Bank of the Board.
Oversee the Defaulted loans at the second part of Further emphasis on Implementing of recommendations
the year of 2017 and necessary recommendation to of Regulatory Bodies/Professionals to reinforce IT
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improve the position. Process, and to maintain internal control System of the
Bank.
Monitoring the recommendations of Department
Bangladesh Bank Inspection (DBI) team so that Bank
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can ensure the compliance best possible ways.

Reviewing of scope and delivery of internal control
and Compliance Division (ICCD) and monitoring the
progress.

Roles and Responsibilities of the Audit Committee the state of computer application in banking system and
enacted by Law uses thereof.
The purpose of the committee is to monitor and However, the roles and responsibilities of Audit
review the Bank’s financial reporting arrangements, Committee promulgated by the provisions of BRPD
the effectiveness of its internal controls and risk Circular No 11 dated 27 October 2013 alongwith
management framework, evaluate whether the bank Corporate Governance Notification issued by BSEC
management has been able to build a compliance on 07 August 2012, and other best practice corporate
culture with respect to bank’s internal control system, governance guidelines and standards. Major roles and
whether bank employees/workforce have been clearly responsibilities are highlighted below:
advised about their duties and responsibilities in this
 Establishing sound Internal Control system & Prac-
regard and whether management has established full
tice of Compliance culture
control on their activities. Committee reviews all the
initiatives taken by bank management as regard building  Ensuring Financial Reporting truly reflects the com-
a suitable management information system along with

67
 Annual Report 2017

pany state of affairs by meet with Management and proved by the Board of the bank.
Statutory Auditors. Reconstitution of the Committee and its members:
 Assessing the activities of Internal Audit effectively During the year 2017, the Audit Committee of the Board
and ensuring that it is working properly. was reconstituted 2 (two) times i.e. in the 60th meeting
 Recommending for appointment of the External (Emergency Board Meeting) and 61st Board Meeting
Audit and discuss with then regarding the lapsed held on 10.12.2017 and 27.12.2017 respectively in
identified by them. accordance with the BRPD Circular No. 11 dated 27
October 2013 issued by Bangladesh Bank.
 Assessing the status of compliance on rules and
regulations prescribed by regulatory bodies (Cen- The last Committee was formed on 27.12.2017
tral Bank, BSEC and other bodies) as well as inter- comprising the following 04 (four) members of the
nal circulars/instructions/policies/regulations ap- Board:

Status Date of First Educational/

SL Status with
Name with Duration Appointment/ Professional
No Committee
Bank Reappointment Qualification
Mr. Rafikul Islam Less than M.Sc. in Electrical

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1 Director Chairman 10.12.2017
Mia Arzoo 1 month Engineering
M.Sc. in Fiber
2 Engr. Farasath Ali Director Member Do 27.12.2017
Science & Textile
Mr. Md. Amir
3
Hossain
Director Member
.c Do 10.12.2017 M.Sc.in Statistics

Mr. Mohammed
4 Director Member Do 27.12.2017 B.A
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Nazim
Mr. Md. Haider Akhlaque, Vice President of the Bank, Head of Internal Control & Compliance, and external
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attended the meeting in his capacity as Group Company auditors regularly or in necessity attend the meetings.
Secretary. Financial reporting:
Operation of Audit Committee
While reviewing the appropriateness of the quarterly
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The audit committee usually meets at least four times and annual financial statements, following issues have
a year as suggested by Bangladesh Bank. The Audit been considered:
Committee of NRBC Bank arranged 4 (four) meetings in
i. Observing the comments/findings on Financial
the year 2017 are as follows:
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Statements as on 31st December 2017 audited by

SL external auditors
Particulars Meeting date
No. ii. Reviewing the quality and application of account-
16 Meeting of Audit
th ing policies and practices in the quarterly Financial
1 23rd February, 2017 Statements viz. First Quarter (Q1), half-yearly and
Committee
Third Quarter (Q3) Financial Statements (Un-audit-
17th Meeting of Audit ed) for the year 2017 and Annual Audited Financial
2 21st May, 2017
Committee Statements before submission to the Board for ap-
18th Meeting of Audit proval complying the BSEC’s Corporate Governance
3 20th September, 2017 Guidelines 2012,
Committee
19th Meeting of Audit iii. Reviewing with the external auditors about the
4 27th December, 2017 result of their findings and management letter to-
Committee
gether with management’s response to their find-
Meetings of the committee generally take place ings
immediately prior to a Board meeting in order to
maximise the effectiveness of collaboration with iv. Ensuring the transparency of the disclosures and
the Board. By invitation, the Chairman of the Board, compliances with financial reporting standards and
Managing Director & CEO, Chief Financial Officer and relevant financial and governance reporting re-
quirements, including IFRS

68 NRB Commercial Bank Limited

 v. Outcome of Tri-party meeting has duly reflect in b. Discussion made with the external auditor regard-

Audit committee Report

the Financial Statements ing what is their observation and what could be
policy and measurement that has to be taken to
vi. Ensuring Audited Financial Statements is fair, bal-
improve would be mentioned in the Management
anced and understandable and providing informa-
Report.
tion necessary for shareholders to assess the Bank’s
position and performance, business and strategy. c. The committee suggested preventive measures for
External auditor appointment along with directives internal control lapses those were arisen during the
Bangladesh Bank: period of audit conducted.

The committee has primary responsibility for d. Threadbare discussion being held with auditor in
overseeing the relationship with external auditor. This the 20th AC meeting and they confirmed that un-
includes providing recommendation on appointment, modified or true and fair will reflect in the Auditors’
reappointment and discharge of the external auditor, Report.
assessing their independence in performing their duties Eventually audit committee concluded that the audit
on an ongoing basis. process was effective.
Hoque Bhattacharjee Das & Co, Chartered Accountants, Independent review of the risk management and
MABS & J Partners , Chartered Accountants, were internal control System in 2017:

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appointed as per Bangladesh Bank approval vide The Board is responsible for managing risk, managing
letter BRPD(Taskforce)/748/03/2017-8685 dated 27 internal controls system, and assessing their
December 2017 as Auditor of NRBC Bank for year 2017 effectiveness. The major areas on which Board Audit
which was initially recommend by the Board in it’s 59th Committee of the Bank focused on as a part of the board
meeting held on 26 November 2017 subject to ratified are discussed below:
their appointment in the 5th Annual General Meeting
.c
 Reviewing and endorsing Risk-based Audit Plan for
(AGM) of the Bank. 2017 to establish an effective internal control sys-
d
However, both auditors are eligible reappointment tem
for year 2018 as they did not exceed more than three  Assessing Core risk management report of Branch-
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consecutive years of appointment in compliance with es and head office, IT audit Conducted by ICCD, and
Bangladesh Bank BRPD Circular Latter No.12 dated 11 management’s response
July 2001 along with section 210 of the company Act,
1994.  Assessing the Branch Performance meticulously,
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taking necessary measures for the branches which

The Board of directors have already accorded their are struggling
appointment in its 64th meeting held on March 28, 2018
and it’s the discretion of the shareholder placed before  Providing record to the Board of Directors on the Ef-
5th AGM for appointment of the year 2018 along with fectiveness of Internal Control & Compliance Policy,
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ratification of their appointment in the year 2017. Practice and Procedure

In addition above, Committee also examines  Considering Compliance against questionnaire on
appropriateness of management consideration about “Self Assessment of Anti-Fraud Internal Controls” &
observations/recommendations of the external “Statement of Fraud and Forgeries” to Bangladesh
auditors regarding baking operation and mitigation of Bank in terms of DOS Circular Letter No. 17 dated
irregularities identified. 07.11.2012.
Effectiveness of External auditor:  Reviewing the comprehensive Inspection Report
including IT Audit by Department Bangladesh Bank
Assessing the effectiveness of external audit process is
Inspection (DBI) and its implementation of compli-
not new to audit committees. The primary purpose of
ance status
this process is to gain confidence about the external
auditors & their audit findings and management’s  Reviewing the Management report-2017 submit-
response to those findings. External auditor conducts a ted by External Auditors, Management responses
comprehensive, appropriate and effective audit through thereto and remedial measures taken by the Bank
following process: to avoid repetition of the lapses mentioned therein.
a. Duly assessed the each phase of the audit process Steps taken for implementation of effective internal
as per framework of Bangladesh Standard on Au- control procedure of the Bank:
diting (BSA). In order to implement the effective internal Control

69
 Annual Report 2017

procedure of the Bank, following tasks are done by the

Audit Committee of the Board:
 Monitoring control mechanisms time to time and
providing recommendations to improve the system.
 Ensuring that the Banking rules and regulations are
meticulously complied by all branches/divisions/
departments.
 The Committee report regularly to the Board of
Directors of the Bank regarding their findings and
providing corrective measures to establish of good
governance within the organization.
 Establish Comprehensive ICC Policy and ensure im-
plementation of the guideline.
The Minutes of the Audit Committee meetings
containing various suggestions & recommendations to

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the management and the Board are placed to the Board
for rectification on regular basis.d .c
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70 NRB Commercial Bank Limited

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External Credit Ratings
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Long Term A
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Rating 2017
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Short Term ST-3

Rated By CRISL
Dated of June 23, 2018

Status Long Term Short Term Outlook

Survelliance Rating 2017 A ST-3 Stable

Rating Rationale
Banks rated in Long term category are adjudged to offer adequate
safety for timely repayment of financial obligations.
Long Term rating
A (Pronounced as A) This level of rating indicates a corporate entity with an adequate
credit profile. Risk factors are more variable and greater in periods of
economic stress than those rated in the higher categories.
The Short Term Rating ST-3 indicates Good certainty of timely payment.
Short Term rating Liquidity factors and company Fundamentals are sound. Although
ST-3 ongoing funding needs may enlarge total financing requirements,
access to capital markets is good. Risk factors are small.

71
 Annual Report 2017

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72 NRB Commercial Bank Limited

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Compliance on Corporate Governance

 Annual Report 2017

Mahfel Huq & Co.

Chartered Accountants
The first registered accounting firm in independent Bangladesh

An independent member firm of AGN International

CERTIFICATE OF THE COMPLIANCE OF CONDITIONS OF THE CORPORATE

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GOVERNANCE GUIDELINES TO THE SHAREHOLDERS OF
NRB Commercial Bank Limited
(As required under the BSEC Guidelines)
.c
We have examined the compliance of conditions to the Bangladesh Securities and
Exchange Commission (BSEC) guidelines on Corporate Governance by NRB Commercial
Bank Limited (the “Bank”) for the year ended 31 December 2017. These guidelines relate
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to the notification no SEC/CMRRCD/2006-158/134/Admin/44 dated 7 August 2012 of BSEC
on corporate Governance.
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The compliance of conditions of Corporate Governance as stated in the aforesaid

notification and reporting of the status of compliance is the responsibility of the Bank’s
management.
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Our examination for the purpose of issuing this certification was limited to the checking
of procedures and implementations thereof as adopted by the Bank’s management in
ensuring the compliance to the conditions of Corporate Governance and corrects reporting
of compliance status on the attached statement on the basis of evidence gathered and
representation received.
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To the best of our information and according to the explanations provided to us, we certify
that the Bank has complied with the conditions of corporate governance as stipulated in
the above mentioned Guidelines issued by BSEC and reported on the attached status of
compliance statement.

Place: Dhaka Mahfel Huq & Co.

Dated: June 20, 2018 Chartered Accountants

74 NRB Commercial Bank Limited

 NRBC Bank’s Compliance on Corporate Governance Conditions

Compliance on COrporate Governance

The concept of corporate governance is defined in different Bank (Central Bank of Bangladesh) and (2) Bangladesh
ways. The narrow definition focuses on the control of Securities and Exchange Commission (BSEC) as an
management by shareholders. The broader definition looks incorporated organization in Bangladesh.
at the role of stakeholders in making and implementing
strategic decisions in the company. Corporate governance Conversely, corporate governance philosophy of NRB
must be understood as a system in which there is interplay Commercial Bank covers regulatory and legal requirements
of different regulations and market forces. Therefore imposed by BB and BSEC in addition to its diverse internal
corporate governance deals with multiple issues in the field rules, policies, procedures and practices based on the
of corporate law, securities regulation, corporate finance and best practices of local and global banks. ‘Due diligence’ in
industrial relations. observing responsibilities by the Board as well as by the
management to protect interest of depositors, shareholders,
Corporate Governance (CG) primarily aims to enhance employees and the society in general is indicated as
transparency and accountability. The corporate governance ‘Corporate Governance’ at NRBC Bank. “Transparency”
framework is there to encourage the efficient use of resources and “Accountability” are very important pillars of a good
of an organization and equally to require accountability corporate governance structure, backed by strong Internal
for the stewardship of those resources. Governance Control and Compliance arrangement and MIS facilities.
structures and principles identify the distribution of rights

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and responsibilities among different participants in the Corporate Governance “Conditions” has to be uphold on
corporation (such as the board of directors, managers, “Compliance” basis for the organization with a certification
shareholders, creditors, auditors, regulators, and other by a practicing Professional Accountant/Secretary/Chartered
stakeholders) and include the rules and procedures for Accountant/Cost and Management Accountant/Chartered
making decisions in corporate affairs. Secretary thereon. NRBC is made available the certificate
.c
Recently Bangladesh, for the first time in history, has fulfilled
for its all stakeholder along with status of Compliance.

the eligibility criteria set forth by the United Nations (UN)

to be recognized as a developing country. Indeed Corporate
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governance is an inevitable part on the to sustain or hold the
recognition. As like other developing countries, banks play a
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vital role in Bangladesh economy, as the dominant financier

for the industrial and commercial activities. Corporate
Governance practices in Bangladesh are gradually being
introduced in most financial enterprises. NRBC bank is no
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exception from that.

Since the starting of its journey in 18th April 2013; NRBC
Bank has established a strong position and became an
efficient contributor to the economy of this country. Such
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a tremendous success has been achieved through proper

functioning in each and every sector of the organization,
including focusing on practicing accurate corporate
governance. The bank is formed and evolved in line with
the granted corporate governance practices and guidelines
of Bangladesh Bank and other concern authority. As private
sector bank, it attaches utmost importance clearly speed and
well defined corporate governance standards which include
among others, compliance, disclosure, transparency.
Though Corporate Governance is viewed as a recent issue,
there is, in fact, nothing new about the concept. Because it
has been in existence as long as the corporation itself-as long
as there has been large – scale trade, reflecting the need for
responsibility in the handling money and the conduct of
commercial activities.
Guidance for Corporate Governance
NRBC Bank gets direction in its corporate governance
practices mainly from two regulatory bodies: (1) Bangladesh

75
 Annual Report 2017

Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission Notification
No.SEC/CMRRCD/2006-158/134/Admin/44: dated 07 August 2012 issued under section 2CC of the Securities and
Exchange Ordinance 1969:

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

1 BOARD OF DIRECTORS
1.1 Board’s Size: The number of the board members of √
the company shall not be less than 5 (five) and more
than 20 (twenty): Provided, however, that in case of
banks and non-bank financial institutions, insurance
companies and statutory bodies for which separate

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primary regulators like Bangladesh bank, Insurance
Development and Regulatory Authority, etc. exist, the
Boards of those companies shall be constituted as may
prescribed by such primary regulators in so far as those
prescriptions are not inconsistent with the aforesaid
condition.
1.2 Independent Directors
.c
1.2(i) At least one fifth (1/5) of the total number of directors Under Process
d
in the company’s board shall be independent directors.
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1.2 (ii) For the purpose of this clause “independent director” means a director-
1.2(ii)(a) Independent Director should not hold any share in the N/A
company or hold less than one percent (1%) shares of
the total paid-up shares of the Company
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1.2(ii)(b) Independent Director should not be a sponsor of the N/A

Company and is not connected with the company’s
sponsors or director or shareholder who holds one
percent (1%) or more shares of the total paid-up shares
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of the company on the basis of family relationship.

His/her family members also should not hold above
mentioned shares in the company.
1.2(ii)(c ) Independent Director does not have any other N/A
relationship, whether pecuniary or otherwise, with the
company or its subsidiary/associated companies
1.2(ii)(d) Independent Director is not a member, director or N/A
officer of any Stock Exchange
1.2(ii)(e) Independent Director is not a shareholder, director N/A
or officer of any member of Stock Exchange or an
intermediary of the Capital Market
1.2(ii)(f) Independent Director is not a partner or an executive N/A
or was not a partner or an executive during the
preceding 3 (three) years of the concerned company’s
statutory audit firm

76 NRB Commercial Bank Limited

 Compliance Status

Compliance on COrporate Governance

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

1.2(ii)(g) Independent Director shall not be an independent N/A

director in more than 3 (three) listed Companies
1.2(ii)(h) Independent Director has not been convicted by a court N/A
of competent jurisdiction as a defaulter in payment of
any loan to a bank or a Non-Bank Financial Institution
(NBFI)
1.2(ii)(i) Independent Director has not been convicted for a N/A
criminal offence involving moral turpitude
1.2(iii) The independent director(s) shall be appointed by the N/A

om
board of directors and approved by the shareholders in
the Annual General Meeting (AGM)
1.2(iv) Post of independent director(s) cannot remain vacant N/A
for more than 90 (ninety) days .c
1.2(v) The Board shall lay down a code of conduct of all Board √
Members and annual compliance of the code to be
recorded.
d
1.2(vi) The tenure of office of an independent director shall be N/A
for a period of 3 (three) years, which may be extended
ab

for 1 (one) term only.

1.3 Qualification of Independent Director (ID)
1.3(i) Independent Director shall be knowledgeable individual N/A
nk

with integrity who is able to ensure compliance with

financial, regularity and corporate laws and can make
meaningful contribution to business.
la

1.3(ii) The person should be a Business Leader/ Corporate N/A

Leader/Bureaucrat/University Teacher with Economics
or Business Studies or Law background/Professionals
like Chartered Accountants, Cost & Management
Accountants, and Chartered Secretaries. The
independent director must have at least 12 (twelve)
years of corporate management/ professional
experiences.
1.3(iii) In special cases, the above qualifications may be N/A
relaxed to prior approval of the Commission.
1.4 Chairman of the Board & Chief Executive Officer (CEO):
The positions of the Chairman of the Board and the √
Chief Executive Officer of the companies shall be filled
by different individuals. The Chairman of the company
shall be elected from among the directors of the
company. The Board of Directors shall clearly define
respective roles and responsibilities of the Chairman
and the Chief Executive Officer.

77
 Annual Report 2017

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

1.5 The Directors’ Report to Shareholders : The directors of the companies shall include the following
additional statements in the Directors’ Report prepared under section 184 of the Companies Act,1994
(Act No. XVII of 1994):-
1.5(i) Industry outlook and possible future developments in √
the industry.
1.5 (ii) Segment-wise or product-wise performance √
1.5 (iii) Risks and concerns. √
1.5 (iv) A discussion on Cost of goods sold, Gross Profit √

om
Margin and Net Profit Margin.
1.5 (v) Discussion on continuity of any Extra-Ordinary gain or √
loss.
1.5 (vi) Basis for related party transactions- a statement of all √
.c
related party transactions should be disclosed in the
annual report
1.5 (vii) Utilization of proceeds from public issues, right issues N/A (As bank yet to go
d
and/or through any other instruments. for IPO)
ab

1.5 (viii) An explanation if the financial results deteriorate after N/A (As bank yet go
the company goes for Initial Public Offering (IPO), IPO )
Repeat Public Offering (RPO), Rights Offer, Direct
Listing, etc.
nk

1.5 (ix) If significant variance occurs between Quarterly √

Financial performance and Annual Financial
Statements the management shall explain about the
variance on their Annual Report.
la

1.5 (x) Remuneration to directors including independent √

directors.
1.5 (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.
1.5 (xii) Proper books of account of the issuer company have √
been maintained.
1.5 (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.

78 NRB Commercial Bank Limited

 Compliance Status

Compliance on COrporate Governance

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

1.5 (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.
1.5 (xv) The system of internal control is sound in design and √
has been effectively implemented and monitored.
1.5 (xvi) There are no significant doubts upon the issuer

om
company’s 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.
1.5 (xvii) Significant deviations from the last year’s operating √
.c
results of the issuer company shall be highlighted and
the reasons thereof should be explained.
d
1.5 (xviii) Key operating and financial data of at least preceding 5 √
(five) years shall be summarized.
ab

1.5 (xix) If the issuer company has not declared dividend (Cash 10% Dividend
or stock) for the year, the reasons thereof shall be recommended by
given. the Board & will be
placed before AGM for
nk

approval
1.5 (xx) The number of Board meetings held during the year √
and attendance by each director shall be disclosed.
la

1.5 (xxi) The Pattern of shareholding shall be reported to disclose the aggregate number of share (along with
name wise details where stated below) held by:-
1.5 (xxi) (a) Parent/Subsidiary/Associated Companies and other √ All Share hold by
related parties (name wise details); individual Sponsor
Shareholders
1.5 (xxi) Directors, Chief Executive Officer, Company √
(b) Secretary, Chief Financial Officer, Head of Internal
Audit and their spouses and minor children (name wise
details);
1.5 (xxi) (c) Executives; √
1.5 (xxi) Shareholders holding ten percent (10%) or more voting √ No Director holding of
(d) interest in the company (name wise details). share 10% or more
1.5(xxii) In case the appointment/re-appointment of a director the company shall disclose the following
information to the shareholders:-
1.5(xxii)(a) a brief resume of the director; √

79
 Annual Report 2017

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

1.5(xxii)(b) nature of his/her expertise in specific functional area; √

1.5(xxii)(c ) names of companies in which the person also holds √
the directorship and the membership of committees
of the board;
2 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
Compliance) and a Company Secretary (CS). The Board
of Directors should clearly define respective roles,
responsibilities and duties of the CFO, the Head of

om
Internal Audit and the CS.
2.2 Requirement to attend the Board Meetings: The √
CFO and the Company Secretary of the companies
shall attend the meetings of the Board of Directors,
provided that the CFO and /or the Company Secretary
.c
shall not attend such part of meeting of the Board of
Directors which involves consideration of an agenda
item relating to their personal matters
d
3 AUDIT COMMITTEE
3 (i) The company shall have an Audit Committee as a √
ab

Sub-committee of the Board of Directors.

3(ii) The Audit Committee shall assist the Board of Directors √
in ensuring that the financial statements reflect true
nk

and fair view of the state of affairs of the company

and in ensuring a good monitoring system within the
business.
3(iii) The Audit Committee shall be responsible to the Board √
la

of Directors. The duties of the Audit Committee shall

be clearly set forth in writing.
3.1 Constitution of the Audit Committee
3.1(i) The Audit Committee shall be composed of at least 3 √ Constituted the
(three) members. Committee as per
BB’s Circular No:11
Dated27.10.2013
3.1(ii) The Board of Directors shall appoint members of the N/A
Audit Committee who shall be directors of the company
and shall include at least 1 (one) independent director.
3.1(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.

80 NRB Commercial Bank Limited

 Compliance Status

Compliance on COrporate Governance

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

3.1(iv) When the term of service of the Committee members √

expires or there is any circumstances causing any
Committee member to 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
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

om
the performance of work of the Audit Committee.
3.1(v) The company secretary shall act as the secretary of the √
Committee.
3.1(vi) The quorum of the Audit Committee meeting shall N/A
not constitute without at least 1 (one) independent
director.
.c
3.2 Chairman of the Audit Committee
d
3.2 (i) The Board of Directors shall select 1 (one) member N/A
of the Audit Committee to be Chairman of the Audit
ab

Committee, who shall be an independent director.

3.2 (ii) Chairman of the audit committee shall remain √
Present in the Annual General Meeting (AGM).
nk

3.3 Role of Audit Committee

3.3 (i) Oversee the financial reporting process √
3.3 (ii) Monitor choice of accounting policies and principles. √
la

3.3 (iii) Monitor Internal Control Risk management process. √

3.3 (iv) Oversee hiring and performance of external auditors. √
3.3 (v) Review along with the management, the annual √
financial statements before submission to the board
for approval.
3.3 (vi) Review along with the management, the quarterly √
and half yearly financial statements before
submission to the board for approval.
3.3 (vii) Review the adequacy of internal audit function. √
3.3 (viii) Review statement of significant related party √
transactions submitted by the management
3.3 (ix) Review Management Letters/ Letter of Internal √
Control weakness issued by statutory auditors.

81
 Annual Report 2017

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

3.3 (x) When money is raised through Initial Public Offering Yet to raise capital
(IPO)/Repeat Public Offering (RPO)/Rights Issue the through IPO
company shall disclose to the Audit Committee about
the uses/applications of funds by major category
(capital expenditure, sales and marketing expenses,
working capital, etc), on a quarterly basis, as a part of
their quarterly declaration of financial results. Further,
on an annual basis, the company shall prepare a
statement of funds utilized for the purposes other than
those stated in the offer document/prospectus.

om
3.4 Reporting of the Audit Committee
3.4.1 Reporting to the Board of Directors
3.4.1 (i) The Audit Committee shall report on its activities to √
the Board of Directors
.c
3.4.1 (ii) a) The Audit Committee shall immediately report to the No such event occurred
Board of Directors on the following findings, if any:- a) during the period under
report on conflicts of interests review
d
3.4.1 (ii) b) suspected or presumed fraud or irregularity or Do
ab

material defect in the internal control system

3.4.1 (ii) c) suspected infringement of laws, including securities Do
related laws, rules and regulations
nk

3.4.1 (ii) d) any other matter which shall be disclosed to the Do

Board of Directors immediately
3.4.2 Reporting to the Authorities: Reporting to BSEC about No such event occurred
anything which has material impact on the financial during the period under
la

condition and results of operation and has discussed review

with the Board of Directors and the management that
any rectification is necessary and if the Audit Committee
finds that such rectification has unreasonably ignored,
the Audit Committee shall report such finding to the
BSEC, 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 EXTERNAL/STATUTORY AUDITORS: The issuer company should not engage its external/statutory
auditors to perform the following services of the company; namely:-

82 NRB Commercial Bank Limited

 Compliance Status

Compliance on COrporate Governance

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

4 (i) Appraisal or valuation services or fairness opinions. √

4 (ii) Financial information systems design and √
Implementation.
4 (iii) Book-keeping or other services related to the √
Accounting records or financial statements.
4 (iv) Broker-dealer services. √
4 (v) Actuarial services. √
4 (vi) Internal audit services. √

om
4 (vii) Any other service that the Audit Committee √
determines.
4 (viii) No partner or employees of the external audit firms √
shall possess any share of the company they audit at
.c
least during the tenure of their audit assignment of
that company.
d
5 SUBSIDIARY COMPANY
5(i) Provisions relating to the composition of the Board √
ab

of Directors of the holding company shall be made

applicable to the composition of the Board of Directors
of the subsidiary company.
nk

5 (ii) At least 1 (one) independent director on the Board of Under Process

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

5 (iii) The minutes of the Board meeting of the subsidiary √

company shall be placed for review at the following
Board meeting of the holding company.
5 (iv) The minutes of the respective Board meeting of the √
holding company shall state that they have reviewed
the affairs of the subsidiary company also.
5 (v) The Audit Committee of the holding company shall √
also review the financial statements, in particular the
investments made by the subsidiary company.
6. DUTIES OF CHIEF EXECUTIVE OFFICER (CEO) AND CHIER FINANCIAL OFFICER (CFO):
6 (i) The CEO and CFO shall certify to The Board that:- They √
have reviewed financial statements for the year and
that to the best of their knowledge and belief:
6(i)(a) These statements do not contain any materially √
untrue statement or omit any material fact or contain
statements that might be misleading:

83
 Annual Report 2017

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

6(i)(b) These statements together present a true and fair view √

of the company’s affairs and are in compliance with
existing accounting standards and applicable laws.
6(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
company’s code of conduct
7 REPORTING AND COMPLIANCE OF CORPORATE GOVERNANCE:
7(i) The company shall obtain a certificate from a practicing √ The Bank is not listed

om
Professional Accountant/ Secretary/ Chartered any Stock Exchange.
Accountant/Cost and Management Accountant/ But enclosed this
Chartered Secretary) regarding compliance of compliance of
conditions of Corporate Governance Guidelines of the conditions of Corporate
BSEC and include in the Annual Report. Governance
7(ii)
.c
Directors statement in the director’s report whether √
the company has complied with these conditions;
d
ab
nk
la

84 NRB Commercial Bank Limited

 om
d .c
ab
nk
la

Risk Management Report

Market Disclosure on Risk Based Capital Under Basel-III

85
 Annual Report 2017

RISK MANAGEMENT REPORT

Risk is defined as “uncertainty” with a loss attached
to it. This “loss” in case of banks is multi dimensional.
There can be a financial loss, or a reputation loss,
market share loss, confidence loss so on and so forth. Strategic Managerial Operational
Risk Management refers to the exercise or practice Level Level Level
of forecasting the potential risks thus analyzing and
evaluating those risks and taking some corrective threshold limits of risks to be taken in line with bank’s
measures to reduce or minimize those risks. risk appetite. These limits are continuously monitored
by an experienced risk management team and overseen
Risk Management process by Management level Risk Committee. At managerial
According to the latest regulation by Bangladesh level, policies and strategies formulated by Board are
Bank, DOS circular letter No. 13 Dated: 9th September, implemented by middle management or units devoted
2015 Risk Management Division will be the nucleus of to risk reviews. Operational level encompasses on-the-
Risk Management Process. So, the achievement and line risk management where risks are actually created
progress in managing banking risks in the banking sector such as at front office or at credit desk of the bank and
will largely depend on the strength and performance of the official designated for risk management activities.

om
Risk Management Division. NRBCB has a well established
approach in the process of risk management. The Board Risk Management Committee (BRMC)
process starts with the identification of key risk factors To implement and ensure proper risk management
and completes with the control monitoring system. It practice in banks, NRBCB in its 61st Board held on 27-
may be depicted as below: 12-2017 has reconstituted Board Risk Management
.c
Committee (BRMC) in line with Bank Company
(Amendment up to 2013) Act-1991, sec- 15 Kha, and
subsequent BRPD Circular # 11 dated October 27, 2013.
d
Risk The honorable chairman and members of Board Risk
Identification Management Committee (BRMC) are as below:
ab

Position in the
Risk Sl Name
Committee
Assessment 1. Mr. Mohammed Adnan Imam Chairman
nk

2. Dr. Toufique Rahman Chowdhury Member

3. Mr. Tamal S M Parvez Member
Risk
4. Mr. Mohammed Nazim Member
Monitoring
la

5. Dr. Nuran Nabi Member

Risk Roles and Responsibilities of RMC of the Board

Controls
The roles and responsibilities of Board Risk Management
Committee of NRBCB have been framed in line with the
BRPD Circular # 11 dated October 27, 2013 and other
best practices and standards.
Risk Management Process ⇒⇒Providing the Board with greater oversight of and
Risk management strategies proactively identifies, advice on the risk management and compliance
measures, mitigates and monitors risk which arises at frameworks.
transaction level as well as at portfolio level to ensure ⇒⇒Strengthening the governance, effectiveness and
efficient usage of capital. Functionally, risk management resourcing of the risk management and compliance
process is accomplished at strategic level, managerial frameworks.
level and at operational level. ⇒⇒Arrangement to oversee policies and procedures of
At strategic level, Board Risk Management Committee risk management.
(BRMC) & senior management, sets up risk governance ⇒⇒Supervision formation of separate committee in
structure and risk philosophy, endorses risk strategies, management level and activities.
reviews and approve risk policies as well as the ⇒⇒Monitoring the due execution of core risk manage-

86 NRB Commercial Bank Limited

 ment policy and principles. measuring and controlling risk;

Risk Management Report

⇒⇒Making recommendations relating to the risk appe- ⇒⇒Providing appropriate resources to evaluate and
tite and particular risks or risk management prac- control risk;
tices. ⇒⇒Reviewing risk reports on a regular and timely ba-
Management Risk Committee (MRC) sis; and
⇒⇒Providing all reports required by the Board and its
For all categories of risks, the Management Risk committees for the effective performance of risk
Committee is responsible for formulating policies, management oversight functions.
monitoring, implementation and reviewing risk reports
for presentation to the Board/Board committees as Risk Management Division (RMD)
well as implementing Board decisions across the bank.
Risk Management Division (RMD) has been established
To be more specific, the management of the bank is
on 2013 as per the instruction of Bangladesh Bank,
responsible for:
headed by Deputy Managing Director as Chief Risk
⇒⇒Implementation of risk strategy approved by the Officer for overall risk management of banks. The RMD
Board of Directors; is constantly contemplating and exerting efforts for
⇒⇒Developing policies and procedures for identifying, developing a structure and processes to ensure sound
risk management in all areas of the bank.

om
Organogram of Risk management Division
Chief Risk Officer (CRO)
.c
Head Of Division
d
ab

CRM Capital ALM ICC AML ICT Stress Test FX

nk

Desk Management Desk Desk Desk Desk Desk Desk

Desk

Risk Classification
NRBCB conducts its operations by ensuring compliance with not only the Core Risk Management Guidelines but also
la

the risk which includes the Pillar-II. These are as follows:

Internal Information Other Risks

Credit Foreign Asset Liability Money
Control & & (Which is incl
Risk Exchange Risk Management Laundering
Compliance Communication uded in
Risk Risk
Risk Technology Pillar-II)

Credit Risk Management guidelines of Bangladesh Bank. Credit initiation and

approvals are done in a segregated manner. Each and
Credit risk is the risk of loss that may occur from the
every sanction is done through a very stringent evaluation
failure of any counterparty to make required payments
process, which, in fine ensures quality of assets and
in accordance with agreed terms and conditions and/or
minimizes losses likely to arise from potential bad loans.
deterioration of creditworthiness.
Credit Risk Measurement
Credit Policies and Principles
Risk measurement along with judgement and experience play
NRBCB’s credit functions are conducted in a compliant
a central role in informed risk taking decisions, and portfolio
manner under a strict judicious and rational credit policies
management. For the purpose of risk measurement we
and principles in conformity with Credit Risk Management
use a numerical grading system ‘Credit Risk Grading’ (CRG)

87
 Annual Report 2017

associated with a borrower. This CRG is not a lending decision in CIB report. Bank guarantee is also a prolific credit
making tool but used as a general indicator to compare one enhancement instrument.
set of customers with another set, and its weighted average
value indicates the movement of portfolio risk. Risk Transfer
Comprehensive Insurance against assets covering loan
Credit Approval Process
amount is a usual risk mitigation measure in the event of
All credit applications are submitted to the CRM Division for unforeseen event that may occur in future.
approval. The CRM division approves the credit proposal within
the limit set by Board of Directors. Other applications those Exposure Management
exceed the limit, CRM division coordinates and prepares credit Single borrower exposure limit and sectoral exposure
recommendations to the Management Credit Committee, limit are both used as risk management tools and in
The Board Executive Committee and to the Board of Directors. the credit policy both issues are addressed complying
Credit processing must be conducted on the basis of extensive regulatory stipulations.
knowledge of the risks inherent to each individual exposure for Credit Monitoring
the purpose of striking a balance between risk and earnings
opportunities and in compliance with the overall goals defined The Board and senior management get timely and
by Board of Directors and Bangladesh Bank. appropriate information on the condition of the bank’s
asset portfolio, including classification of assets and

om
Credit Risk Mitigation the level of provisions and reserves. The information
Potential credit losses from any given account, customer or includes, at minimum, summary results of the portfolio
portfolio are mitigated using a range of tools such as collateral, review, comparative trends in the overall quality of
credit insurance, and other guarantees. The reliance that can problem assets, and measurements of existing or
be placed on these mitigants is carefully assessed in light anticipated deterioration in asset quality and losses
of issues such as legal certainty and enforceability, market
.c
expected to be incurred on the portfolios. Significant
valuation, and counterparty risk of the guarantor. Collateral concentration risk is also reported to the Board and
types which are eligible for risk mitigation include: cash; senior management for review and deliberation.
d
residential, commercial and industrial property; fixed assets NRBC Bank’s Credit Administration Department (CAD)
such as motor vehicles, plant and machinery; marketable monitors the asset portfolio of the Bank. Bank’s credit
ab

securities; commodities; bank guarantees; and letters monitoring system provides an early indication/alert
of credit. Collateral is valued by independent third party about the deterioration of loans that allows effective
surveyor in accordance with our credit policy and procedures. management of loans in a rational manner to prevent
Collateral Coverage them from turning into Non-Performing Loans (NPL).
nk

Collateral coverage may be in the form of land and building, Asset - Liability Risk Management
financial instrument such as FDR, Marketable securities etc.
In the event of downside, value from liquidation of collateral Asset and Liability Management is the practice of
la

securities may provide some degree of protection against managing risks that arise due to mismatches between
credit risk. Valuation of land and building is usually done the assets and liabilities. Asset Liability Management
by third party surveyor. Cash security by default provides (ALM) is a strategic management tool to manage interest
maximum protection against credit risk and exposure is rate risk, liquidity risk and foreign exchange risk faced by
usually calculated by net-off cash security. the bank.
Hypothecation ALM Risk Classification
Leased assets are primary security which inherently
provided some degree of protection against credit risk.
Liquidity
Hypothecated capital machinery and stock of goods are
Risk
a usual primary security measure whereas marketability
and control of the asset is important in credit risk
mitigation.
Guarantee ALM
Guarantee of high net worth individuals/directors Risk
and corporate guarantee with good business standing Interest Foreign
rate Exchange
usually provides credit enhancement. Cross default Risk
Risk
option plays a vital role because due to guarantee of
an entity favoring a borrowing concern is also reflected

88 NRB Commercial Bank Limited

Liquidity Risk To strengthen liquidity management we have formed

Risk Management Report

a Board approved Asset and Liability Management
Liquidity Risk arises when bank may not meet its financial
Committee (ALCO) to overlook the liquidity status
obligations/commitment as they become due. Liquidity
of the bank. ALCO being the overall supervisory in
risk also includes the liability of the bank to liquidate any
managing liquidity risk of NRBCB meets monthly to
assets at reasonable price in a timely manner.
oversee adequacy of overall liquidity aspects from
other obligations. The impact arising from all strategic
Liquidity Risk and medium term decisions taken by the Board and the
Measurement corporate management on liquidity is also ascertained
by this high level committee comprising key divisional
heads.

Flow Approach: It Regulatory Liqui-

Interest Rate Risk
involves compre- dity Indicators Interest Rate risk is a possible loss from adverse
hensive tracking (RLI): NRBCB has movements in market interest rates. Changes in interest
of cash flow mis- identified several rate affect a bank’s earnings by changing its net interest
matches for mea- key liquidity risk income and the level of other interest- sensitive income
suring and mana- indicators, which and operating expenses.

om
ging net funding are monitored on
requirements. This a regular basis to
approach is also ensure healthy
called Structural liquidity position.
Liquidity Profile The ratios are LCR,
(SLP) NSFR, MCO, MTF,
.c
ADR etc.
d
ab

Earning Perspective: Traditional Gap Analysis

(TGA): TGA is to measure the level of a bank’s
exposure to interest rate risk in terms of sensiti-
Earnings vity of its NII to interest rate movements over
nk

Perspective the horizon of analysis which is usually one year.

It involves bucketing of all RSA and RSL and
off-balance sheet items computing Earnings at
Risk (EaR)
Impact of Interest
la

Rate Risk
Economic Value Perspective: Duration Gap
Analysis (DGA): DGA is to measure the level of a
bank’s exposure to interest rate risk in terms of
Economic Value sensitivity of Market value of its equity (MVE) to
Perspective interest rate movements. It involves bucketing
of all RSA and RSL as per residual maturi-
ty/re-pricing dates in various time bands and
computing the Modified Duration Gap (MDG).

The purpose of liquidity risk management is to assess Foreign Exchange Risk Management
the necessity of funds to meet financial obligations
on time and to ensure adequacy of funding to fulfill FX Risk refers to the potential changes rate fluctuations,
short-term and long-term financial needs appropriately adverse exchange positioning or change in the market
even under stressed conditions. NRBCB has in place a prices. FX Risk of the Bank is minimal, as all the
comprehensive in-built liquidity monitoring process that transactions are carried out on behalf of the customers
has been enhanced in the past few years by embracing against underlying L/C commitments and other
stringent liquidity review and safeguard measures remittance requirements. This risk usually affects
imposed by regulator on the sector. import-export business, but it can also affect investors
making international investments. If money is converted

89
 Annual Report 2017

to another currency to make an investment, then any meets the senior management periodically to discuss
changes in the currency exchange rate will cause that the effectiveness of the internal control system of the
investment’s value to either decrease or increase when bank and ensures that the management has taken
the investment is sold and converted back into the appropriate actions as per the recommendations of
original currency. the auditors and the Internal Control and Compliance
Division (ICCD). As per the approved audit plan, ICCD
Sources of FX Risk completes the audit and inspection tasks of branches
 Exchange Rate fluctuations and head Office divisions/ departments in 2017. The
 Adverse Foreign Exchange position of the Bank significant deficiencies identified by Internal Control
team are reported to the Audit Committee of the Board.
 Changes in the market price of Foreign Exchange In addition to the internal audit & inspection team, the
Foreign Exchange risks are measured, monitored and monitoring team conducts surprise inspections at the
addressed by ID and Treasury Division through front Branches. Any violation and breach in compliance issues
office and back office. The Foreign Exchange Risks are dealt with iron hand.
are minimized through proper market analysis, real
time pricing of Foreign Exchange and money market
Role of External Auditors in Evaluating Internal
products, fixation of different market related limits Control System
(Overnight, Stop Loss and Management Action Trigger), It is known to all that External Auditors by dint of their

om
counter parties credit limits set by the management and independence from the management of the bank
officer. All Foreign Exchange transactions are revalued can provide unbiased recommendations as far as the
at weighted average exchange rates as provided by strengths and weaknesses are concerned relating to
Bangladesh Bank at the end of each month. All NOSTRO the internal control system of the bank, which is done
accounts are reconciled regularly and outstanding entries on regular periodicity. They examine the records,
are reviewed by the management for its settlement/
.c
transactions of the bank and evaluate the accounting
recompilation. The open position is maintained at the policy, disclosure policy and methods of the financial
end of day within the stipulated limits as prescribed by estimations made by the bank. This allows the board and
d
the Bangladesh Bank. the management to have an independent overview on
the overall control system of the bank. Along with the
Internal Control and Compliance Risk Management
ab

periodic Bangladesh Bank audit, other external auditors

NRBCB has a structured Internal Control and Compliance conduct regular auditing to find out the control lapses
(ICC) Division. The main objective of internal control in prevalent within the system.
NRBCB is to help the bank perform better through the
Money Laundering Risk Management
nk

use of its resources. Through internal control system

bank identifies its weakness and takes appropriate In order to ensure the best corporate governance
measures to overcome the same. The main objectives of practices and aiming at protecting the Bank and its
internal control are as follows: employees, shareholders, management and customers,
la

NRBCB, as a financial intermediary, is committed to take

Performance Objectives: To maintain the efficiency
preventive measures against money laundering and
and effectiveness of overall operating activities.
terrorist financing in line with the Money Laundering
Information Objectives: To ensure the reliability, Prevention Amendment Act, 2015, the Anti-Terrorism
completeness and timelines of financial and Act, 2009 (Amended), Anti-Terrorism Rules 2013, the
management information. Guidance Notes on Prevention of Money Laundering
of Bangladesh Bank, and the instructions circulated by
Compliance Objectives: To ensure the robust them from time to time.
compliance with applicable laws and regulations.
NRBCB’s Activities towards Money Laundering
Ensure Compliance Culture: We have a very robust Risk Management
structure within the organization to strictly combat ICC
risk. There is a vivid and clear Audit Charter formulated Money Laundering is deemed as a finance-based crime
in order to ensure transparency, accountability and that buckles down to conceal, misrepresent and disguise
authenticity. By the virtue of this framework, the audit all the details with regard to illegal financial income
teams have the accessibility to any information across taking advantage of the vulnerability of the financial
the bank. They are entitled to make any query deems institutions mostly in the developing countries. Due
fit during the execution of the auditing. The Board to the rapid incorporation of sophisticated technology
of Directors of the bank has established an Audit in a globalized financial sector; money laundering has
Committee to monitor the effectiveness of the internal become a truly worldwide scourge that has devastating
control system of the bank. The Audit committee economic, security, and social consequences. Money

90 NRB Commercial Bank Limited

launderers are seen to concentrate on developing strategic tool to face challenges in the emerging realities

Risk Management Report

countries like Bangladesh. Therefore, Bangladesh of business, they are increasingly exposed to technology
strengthens its Anti Money Laundering system time to risks. The risk has been increased in the cyber zone for
time by introducing and updating legislations, acts such the introduction of internet banking and increasing of
as Anti Money Laundering Act, Anti-Terrorism Act and E-commerce transaction across the world.
making it compulsory for the reporting organizations
An integral part of NRBCB’s risk management endeavor
to comply with the same. In addition, being the main
is its strong “IT Security Policy” and its adherence to
regulatory body of the banks and financial institutions,
these principles. These policies define responsibilities
Bangladesh Bank has guided us through guidance
and requirements for protecting information and
note, policy, circular, circular letter, instructions etc. in
information systems. They also define hardware,
compliance with the laws of land from time to time,
network, and related communication technologies and
bank recognizes its obligation to join with governments,
their use in providing financial services.
international organizations and other financial services
organizations to close off the financial channels that The bank has taken good number of initiatives to
money launderers and terrorist organizations use for manage ICT risks
their illicit purposes. The Board of Directors of the
bank view Money Laundering Prevention as part of Risk Treating information security as a process not product,
Management strategy and not simply as a stand-alone NRBCB takes adequate information security initiatives

om
requirement that is being imposed by legislation but to ensure the security of its processed information. The
also is fully committed to condemn Money Laundering bank is committed to protect customer information and
and Terrorist Financing in all its forms and manifestation. assets from any type of unauthorized use and/or fraud.
To fulfill the commitment, NRBCB Bank Limited has Following tasks are carried out to manage ICT risk of the
developed comprehensive policy on “Money Laundering
.c bank.
Prevention”, “Combating Financing of Terrorism”,  Monitor access to all systems and maintains access
and “Know Your Customer” approved by the Board control profiles on computer network and systems.
of Directors. We continuously strive to enhance our Track documentation of access authorizations to all
d
own policies, procedures, systems & technology on resources.
the guidance of our board and have issued multiple
 IT Assets inventory is adequately maintained and
ab

circulars, circular letters and instructions time to time

reviewed periodically.
in compliance with the updated regulations. As part of
its anti - money laundering policy, every year NRBC Bank  Develop and/or maintain appropriate segregation
communicates a statement to all its employees through of duties within and across applications.
the Chief Executive Officer that clearly sets forth the way
nk

 Research and investigate measures that address

forward for the present year and shares the initiatives
data security risks and potential losses for report-
taken in the last year pertaining to combating Money
ing purposes.
Laundering and Terrorist Financing. The bank has also
nominated Chief Anti Money Laundering Compliance  Install, modify, enhance and maintain data system
la

Officer (CAMLCO) and Deputy CAMLCO who ensure that security software
the bank is compliant with AML’s concern. In addition,
 Work on determining acceptable risk levels for the
Branch Anti Money Laundering Compliance Officer
bank and ensuring IT environments are adequately
(BAMLCO) at branches, independently makes the bank
protected from potential risks and threats.
compliant on AML matters. The regulatory requirements
are being complied with and the guidelines are being  Participate in development and implementation of
followed by the bank properly. Branch Anti Money the appropriate and effective controls to mitigate
Laundering Compliance Officer (BAMLCO) at branches, identified threats and risks.
reviews and verifies the transactions of accounts to
 IT division manages all changes as per approved
make Suspicious Transactions Reports (STR), and ensures
policy and process and also maintains all logs/forms
AML and CFT compliance culture throughout the bank.
Training is being conducted continuously for all the  Continue to enhance the Information/Cyber securi-
officers of the bank to create awareness and develop the ty awareness programs for employees and custom-
skill for ensuring KYC (Know Your Customer) compliance ers.
and identifying suspicious activities/transactions.
 Review system logs for the bank’s infrastructure
Information and Communication Technology to identify trends. Investigate abnormalities and
(ICT) Risk Management exceptions to the bank’s Information Security Pro-
gram.
As bank adopts technology as a part of their ongoing
 Review system vulnerability and penetration test-

91
 Annual Report 2017

ing and IT audits to ensure findings are sufficiently credit concentration risk, reputation risk, strategic
addressed. risk, settlement risk, evaluation of six core risks areas,
environmental risk and other material risk - which is
 Establish multi-layered boundary defenses to de-
finally determined by Supervisory Review Process(
ploy a security wall (fire wall) between the un-trust-
SRP) and Supervisory Review Evaluation Process (SREP)
ed external networks.
dialogue.
 Plan for proper disaster management related to ICT
services Pillar-III (Market Disclosures)
To meet the Pillar III requirements of Basel III, NRBCB
 Establish an IT governance framework inside the bank
has adhered to disclosure norms as stipulated in the
Risk Management Practice at NRBCB Under Basel-III guidelines of Bangladesh Bank (BB). The disclosures
for every year are available in Bank’s annual report and
Bangladesh Bank vide BRPD Circular No – 18 dated website. Under market disclosure bank reveals various
December 21, 2014 issued “Guidelines on Risk Based types of qualitative and quantitative information so that
Capital Adequacy (Revised Regulatory Capital Framework stakeholders can assess the position of a bank regarding
for banks in line with Basel III)” with effect from January holding of assets and to identify the risks relating to the
01, 2015. NRBCB is well poised for implementing Basel III assets and capital adequacy to meet probable loss of
phase by phase during the period 2015-2019. assets.

om
Pillar-I (Minimum Capital Requirement) NRBCB Risk Management Practice as per Risk
In compliance with the Risk Based Capital Adequacy Management Report
guidelines under Basel III, NRBCB computes regulatory
The Management and Board of NRBC Bank firmly be-
capital requirement for credit risk, market risk and
operational risk. Bank had adopted standardized lieve that effective risk management practices prerequi-
approach under credit risk, basic indicator approach
.c
site for sustainable growth. Therefore, it has set its pol-
under operational risk and standardized approach under icies, procedures, monitoring and oversights in order to
market risk for assessing minimum capital requirement. contain the internal and external risks at a minimal level.
d
Pillar-II (Internal Capital Adequacy Assessment
ab

Process)
To comply with Basel Pillar-II norms (Internal Capital
Adequacy Assessment Process), NRBCB assess
nk

additional capital - against residual risk, liquidity risk,

Risk
la

Risk Risk
Identificacation
Report Monitoring
& Mitigation

• Comprehensive Risk • Identification of risk • Risk Management Com-

Management Report from risk reports mittee meeting-Monthly
(CRMR)-Half Yearly • Mitigation of risk under basis
• Monthly Risk Manage- necessary guidance of • Board Risk Committee
ment Paper (RM- the Senior Management meeting- required basis/
P)-Monthly or Board of the Bank usually quarterly basis
• Risk Appetite-Yearly • SRP meeting-Quarterly
• Basel Report-Quarterly basis
• Stress Test & D-Gap
Report-Quarterly

92 NRB Commercial Bank Limited

 om
.c
Disclosure on Risk Based Capital (Basel III) For the Year -2017
d
Introduction Capital Adequacy (Revised Regulatory Capital Framework
ab

for banks in line with Basel III)” as per BRPD circular no.
The Basel III framework is a central element of the Basel
18 dated 21 December 2014 replaced of “Guidelines
Committee’s response to the global financial crisis. It
on Risk Based Capital Adequacy (Revised Regulatory
addresses a number of shortcomings in the pre-crisis
Capital Framework for banks in line with Basel III)”. This
nk

regulatory framework and provides a foundation for a

circular shall come into force with effect from January
resilient banking system that will help avoid the build-up
01, 2015. NRBC Bank Limited is maintaining its capital
of systemic vulnerabilities. The framework will allow the
requirements at adequate level as per “Guidelines on
banking system to support the real economy through
Risk Based Capital Adequacy (Revised Regulatory Capital
la

the economic cycle. To cope up with the international

Framework for banks in line with Basel III)”.
best practices and to make the bank’s capital shock
absorbent Regulatory Capital Framework for banks in Validation and Consistency
line with Basel III came into force from January 2015. The quantitative disclosures are made on the basis of
consolidated audited financial statements of NRBCB and
Capacity its subsidiaries as at and for the year ended December 31,
Building of 2017 prepared under relevant International Accounting
RBCA Bank &
Guideline Bangladesh and Financial Reporting Standards as adopted by the
Issue-Dec, 2014 Bank Institute of Chartered Accountants of Bangladesh (ICAB)
Official-Jan,
2015 to Dec,
and related circulars/instructions issued by Bangladesh
Basel III 2019 Bank from time to time. Assets of the subsidiaries
Implementation were risk weighted and equities of subsidiaries were
Roadmap crossed out with the investment of NRBCB while
Initiation Commencement consolidating. So, information presented in the
of full of Basel III
Implementation Implementation
‘Quantitative Disclosures’ section can easily be verified
of Basel Process- and validated with corresponding information presented
III-January,
2020
Jan, 2015 in the consolidated audited financial statements 2017 of
NRBCB and its subsidiaries along with separate audited
financial statements of the bank available on the website
Bangladesh Bank adopted “Guidelines on Risk Based of the bank .

93
 Annual Report 2017

Disclosure Policy subsidiary NRB Commercial Securities Limited (NRBCSL).

The following detail qualitative and quantitative ‘Solo Basis’ refers ‘Consolidated
disclosures are provided in accordance with Bangladesh
Bank rules and regulations on risk based capital
to all position of Basis’ refers to all
adequacy under Basel-III issued through Revised RBCA the NRB Commer- position of the
(Revised Regulatory Capital framework for banks in line cial Bank and its NRB Commercial
with Basel-III) Guidelines. These disclosures are intended local and overseas bank (including its
for market participants to assess key information about branches/offices. local and overseas
the bank’s exposure to various risks and to provide a branches) and its
consistent and understandable disclosure framework for subsidiary com-
easy comparison among banks operating in the market.
The bank follows following approaches for calculating pany NRBCSL
Risk Weighted Asset (RWA) as per Basel-III guidelines engaged in finan-
stated in BRPD Circular No.18 dated December 21, 2014 cial activities.
of Bangladesh Bank:
2. a) Capital Structure
Qualitative Disclosures:

om
* Standardized approach for Credit Risk Capital serves as a buffer to absorb unexpected losses as
* Standardized approach for Market Risk well as to fund ongoing activities of the bank. The Capital
* Basic indicator approach for Operational Risk structure of the bank is categorized into two tiers.
1. Tier-1 Capital (Going-concern capital)
a) Common Equity Tier-1
.c
b) Additional Tier – 1
Disclosure Framework of NRBC Bank Limited
2. Tier- 2 Capital (Gone- concern capital)
d
1. Tier-1 Capital (Going-concern Capital)
01 Scope of Application
ab

Going concern Capital is the capital which allows a bank

02 Capital Structure
to continue its activities and keep it solvent. Going- Con-
03 Capital Adequacy
cern Capital/Common Equity Tier 1 (CET1) capital shall
consist of sum of paid up capital, statutory reserve, gen-
nk

04 Credit Risk eral reserve, retained earnings and minority interest in

subsidiaries after netting regulatory adjustments appli-
05 Equities: Disclosures for Banking Book Positions cable on CET1 as mentioned in RBCA guideline.
06 Interest Rate Risk in the Banking Book  Paid up Capital: Issued, subscribed and fully paid
la

(IRRBB)
up share capital of the bank. It represents paid up
07 Market Risk
capital, right shares as well as bonus shares issued
from time to time.
08 Operational Risk
 Statutory Reserve: As per Section 24(1) of the Bank
09 Leverage Ratio
Companies Act, 1991, an amount equivalent to 20%
10 Liquidity Ratio of the profit before taxes for each year of the bank
has been transferred to the statutory reserve fund.
11 Remuneration
 General reserve : Any reserve created through
Profit and Loss Appropriation Account for fulfilling
1. Scope of Application any purpose

The bank obtained the permission of subsidiary  Retained Earnings: Amount of profit retained with
company as NRB Commercial Securities Limited the banking company after meeting up all expens-
(NRBCSL) from Bangladesh Bank in 2015. According to es, provisions and appropriations.
BRPD Circular-12, 24, 35 (dated March 29, 2010, August Additional Tier 1 (AT1) capital shall consist of Minority
03, 2010 & December 29, 2010 respectively) and BRPD Interest i.e. AT1 issued by consolidated subsidiaries to
circular letter no-08, dated July 23, 2012, investments in third parties (for consolidated reporting only). The bank
subsidiaries have been consolidated for the purpose of
does not hold any Additional Tier 1 (AT1) capital.
assessing capital adequacy. At present the bank has one

94 NRB Commercial Bank Limited

2. Tier-2 Capital (Gone-concern Capital) 3. Capital Adequacy

Disclosure on Risk Based Capital (Basel III)

Gone-Concern Capital is the capital which will absorb Qualitative Disclosures
losses only in a situation of liquidation of the bank.
Gone-Concern Capital/ Tier 2 (CET1) capital shall consist NRBC Bank focuses on strengthening risk management
of sum of General Provisions, Subordinated debt / In- and control environment rather than increasing capital
struments issued by the banks that meet the qualifying to cover up weak risk management and control. NRBCB
criteria for Tier 2 capital. follows the ‘asset based’ rather than ‘capital based’
approach in assessing the adequacy of capital to support
 General provision maintained against unclassified current and projected business activities.
loans and off-balance sheet exposures: As per BB
directive, amount of provision maintained against In parallel to business growth, the bank effectively
unclassified loans and off-balance sheet exposures manages its capital to meet regulatory requirement
as of the reporting date has been considered. considering the risk profile. Below are few highlights:
Quantitative Disclosures • Currently Bangladesh bank prescribed Minimum
Capital to Risk Weighted Assets Ratio (CRAR) is
Particulars Solo Consolidate 10% whereas as on December, 2017 the CRAR
Common Equity Tier-1 Fig in Crore Tk. (Solo) of the bank was 13.49%.

om
Paid up Capital 490.00 490.00 • During the same period Minimum Capital Re-
Statutory Reserve 73.79 73.79 quirement (MCR) of the bank was BDT. 497.91
Retained Earning 70.95 73.05 crore and Eligible Capital was BDT. 671.72 crore .
Minority Interest in Subsidiaries 0.00 4.23 Quantitative Disclosures
Tier-1 Capital
.c Particulars Solo Consolidate
Regulatory Adjustments
Fig in crore Tk.
d
Deferred Tax Assets (DTA) 17.53 17.53
Capital requirement for Credit 457.63 457.35
Tier-1 Capital after Adjustment 617.20 623.54 Risk (10% of RWA)
ab

Tier-2 Capital Capital requirement for Market 7.52 8.88

General Provisions 53.81 53.81 Risk
Revaluation Reserve 1.75 1.75 Capital requirement for Opera- 32.76 32.99
tional Risk
nk

Regulatory Adjustments
Total Capital Requirement 497.91 499.23
Revaluation Reserve 60% 1.05 1.05
Washout in 2017 Capital to Risk Weighted Asset Ratio
Tier-2 Capital after Adjustment 54.51 54.51 On core Capital(Against a stan- 12.40% 12.49%
la

dard of minimum 5%)

Total Regulatory Capital 671.72 678.06
On actual Capital (Against a stan- 13.49% 13.58%
b) Conditions of Capital Maintenance dard of minimum 10%)
The Bank complied with all the required conditions The bank maintains a capital (Solo basis) of Taka 671.72
for maintaining regulatory capital as stipulated in the crore as against total risk weighted assets of taka
revised RBCA guidelines by Bangladesh Bank as per 499.23 crore on Solo basis. The bank’s Capital to Risk
following details: weighted Asset Ratio (CRAR) as at 31st December 2017
is 13.49% (Solo) and 13.58 % (Consolidate) as against the
Complied Complied Complied minimum requirement of 10%. Tier-I capital was 12.49%
T-1 to RWA 12.40% against
required 6 %
CRAR (Solo)=13.49% against
required 10 %
T-2 to RWA 1.09% within
admitted 4.0%
(Consolidate) and 12.40% (Solo) against minimum
requirement of 5%. As a result the bank has a buffer
capital of Taka 173.81 crore to mitigate the additional
* Common Equity Tier 1 of * Minimum CRAR of 10% of * Tier 2 capital can be admit- uncertain risk under Pillar-II of Basel-III.
at least 4.5% of the total the total RWA ted maximum up to 4.0% of
RWA * Additional Tier 1 capital the total RWA or 88.89% of
can be admitted maximum CET1, whichever is higher
* Tier 1 capital will be at
least 6.0% of the total RWA up to 1.5% of the total RWA * In addition to minimum
or 33.33% of CET1, whiche- CRAR, Capital Conservation
ver is higher Buffer (CCB) of 2.5% of the
total RWA is being introdu-
ced which will be maintai-
ned in the form of CET1

95
 Annual Report 2017

risk due to its core activities i.e. lending to corporate,

Capital to Risk Weighted commercial, SME, retail, another bank/FI or to another
country. The main objective of credit risk management
Asset ratio is to minimize the negative impact through adopting
proper mitigates and also limiting credit risk exposures
Required Capital Maintained Capital within acceptable limit.
13.49% 13.58% The Board approves the credit policy keeping in view
11.25% 11.25% relevant Bangladesh Bank guidelines to ensure best
practice in credit risk management and maintain
quality of assets. Authorities are properly delegated
in 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
Solo Consolidate monitoring, supervision and recovery of loans with
provision for early warning system. There is a separate
Credit Risk Management Division for ensuring proper
Required vs Eligible risk management of Loans and Credit Administration
Division for monitoring and recovery of irregular loans.

om
Capital Adequate provision is maintained against classified
loans as per Bangladesh Bank guidelines. Statuses of
Required Capital (in Cr. Tk.) loans are regularly reported to the Board through Risk
Maintained Capital (in Cr. Tk.) Management Paper.
671.72 678.06 The capital requirement for credit risk is based on the
497.91 499.23
.c
risk assessment made by External Credit Assessment
Institutions (ECAIs) recognized by Bangladesh Bank
for capital adequacy purposes. The bank assigned risk
d
weights to all their on-balance sheet and off-balance
sheet exposures. Risk weights are based on external
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credit rating which mapped with the Bangladesh

Solo Consolidate Bank rating grade or a fixed weight that is specified by
Bangladesh Bank.
4. Credit Risk: Credit risk is defined as the probability Credit Risk Management System in NRB Commercial
nk

of failure of counterparty to meet its obligation as per Bank Limited.

agreed terms. Banks are very much prone to credit

Credit Risk Credit Risk Credit Risk Credit Risk

la

Identification Assessment and Control Monitoring

Measurement

* Critical analysis and * Use of credit risk rating *Credit Policy which docu- * Past due principal or
review of delinquent ac- system to grade the quality ments the credit risk rating interest payment, past due
counts to identify weak- of borrowers. Collection of collateral policy and policies trade bills, account excesses
ness in credit. Credit Information Bureau on rehabilitation and res- and breach of loan
(CIB) report of the potential tructuring of problematic covenants.
* Credit risk for the coun- borrower from the Central and delinquent loans.
terparty arises from an ag- Bank. * All loan facilities are
gregation of the fo- *Efficient credit personnel reviewed and approved
llowing: Financial Risk, Bu- * Stress Testing of loan port- to deal with the credit through the submission of a
siness/Industry Risk, Secu- folios under various scena- approval, processing and Credit Application annually.
rity Risk, Management rios.Ensuring Credit Rating review.
Risk of the Customer from Exter-
nal Credit Rating Agencies.

96 NRB Commercial Bank Limited

Policies and Processes for Collateral Valuation  100% of the value of guarantee given by Gov-

Disclosure on Risk Based Capital (Basel III)

and Management ernment or Bangladesh Bank
The NRB Commercial bank has set a policy on Collateral  100% of the market value of gold or gold orna-
Valuation and Management. The bank appoints ments pledged with the bank.
approved surveyors for valuation of collateral/securities
 50% of the market value of easily marketable
objectively. The methodology of valuation that the
commodities kept under control of the bank
bank usually applies are forced sale/fire sale value,
fair/market value etc. The bank creates legal claims on  Maximum 50% of the market value of land and
collateral/securities through mortgage, charge creation, building mortgaged with the bank
legal documentation etc.
 50% of the average market value for last 06
Eligible Collateral months or 50% of the face value, whichever is
As per Bangladesh bank the following collateral will be less, of the shares traded in stock exchange.
included as eligible collateral in determining base for Impaired Credit To define past due and impairment
provision: through classification and provisioning, the bank follows
 100% of deposit under lien against the loan Bangladesh Bank Circulars and Guidelines. The summary
of some objective criteria for loan classification and

om
 100% of the value of government bond/savings provisioning requirement as stipulated by the central bank
certificate under lien BRPD circular no. 14 dated 23 September 2012 and BRPD
circular no.16 dated 18 November 2014 are as below:
Loan Classification
Sub Standard Doubtful Bad & Loss
.c
Overdue Provision % Overdue Provision % Overdue Provision
Period Period Period %
d
Continuous Loan 3 months or more 20% 6 months or more 50% 9 months or more 100%
but less than 6 but less than 9
ab

months months
Demand Loan 3 months or more 20% 6 months or more 50% 9 months or more 100%
but less than 6 but less than 9
months months
nk

Fixed Term 3 months or more 20% 6 months or more 50% 9 months or more 100%
but less than 6 but less than 9
months months
Short Term 12 months or 5% 36 months or more 5% 60 months or more 100%
Agricultural & more but less than 60
la

Micro but less than 36 months

Credit months
Rate of General and Specific Provision
General provision on: (For both Standard and Special Specific Provision on:
mention account) Rate Substandard loans and advances other than 20%
Unclassified general loans and advances 1% short term agri credit and micro credit
Unclassified small and medium enterprise 0.25% Doubtful loans and advances other than 50%
short term agri credit and micro credit
Loans to BHs/MBs/SDs against shares etc. 2%
Bad/loss loans and advances 100%
Unclassified loans for housing finance and 2%
on loans for professionals Substandard short term agri credit and 5%
micro credit
Unclassified consumer financing other 5%
than housing financing and loans for Doubtful short term agri credit and micro 5%
professionals credit
Short term agri credit and micro credit 1% Quantitative Disclosures of NRBC Bank’s Credit Risk
Off balance sheet exposures 1%
Geographical distribution of exposures, broken down in
significant areas by major types of credit exposure:

97
 Annual Report 2017

Urban Area Fig in crore Tk. SL Industries Fig in crore Tk.

Dhaka 2592.45 1 Agri cultural Industry 130.88
Chittagong 558.31 2 Textile 281.40
Rajshahi 307.95 3 RMG 459.72
Sylhet 98.65 4 NBFI 77.63
Barisal 38.93 5 Food 12.42
Rangpur 15.96 6 Bevarage 14.88
Khulna 11.56 7 Pharmaceutical 26.71
Mymensing 0.18 8 Chemical 4.56
Rural Area 9 Electrical 16.04
Dhaka 500.91 10 Construction 304.99
Chittagong 139.02 11 House Building Residential 93.32
Rajshahi 0.00 12 Leather 11.49

om
Sylhet 1.43 13 Service Industry 34.90
Barisal 15.42 14 Transport 22.62
Rangpur 13.36 15 Basic Metal 6.20
Khulna 1.93 16 Capital Market 0.00
Mymensing 0.00
.c 17 Car Loan 0.98
Total 4296.05 18 Furniture 0.15
d
19 Insurance 0.86
Total gross credit risk exposures broken down by major
types of credit exposure 20 Consumer Finance 142.44
ab

21 Printing 71.16
Particulars Figures in Crore Tk.
22 Ship Breaking 20.03
Overdraft 951.91
23 SME 777.59
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Cash Credit 916.67

24 Staff Loan 36.94
Time loan 539.75 25 Steel 101.10
Term loan 477.95 26 Trade Industry 839.07
la

Payment Against Document 14.29 27 Card 22.85

Loans against Trust Receipt 173.66 28 Other Manufacturing Industry 602.66
Packing Credit 42.94 29 Others 182.47
Total 4296.05
EDF Loan 97.66
Lease Finance & Hire 219.18 Residual contractual maturity breakdown of the whole
Purchase portfolio, broken down by major types of credit exposure
Consumer Loan 259.58 Remaining Maturity Fig in crore Tk.
Staff Loan 36.94 Payable on demand 600.57
Other Loans and Advances 565.51 Not more than 3 months 1016.65
Total 4296.05 More than 3 months but not
more than 1 year 1559.98
Industry or counterparty type distribution of exposures, More than 1 year but not more
broken down by major types of credit exposures than 5 years 630.45
More than 5 years 488.40
Total 4296.05

98 NRB Commercial Bank Limited

Gross Non-performing Asset Quoted Share Fig in crore Tk.

Disclosure on Risk Based Capital (Basel III)

Unclassified Fig in crore Tk. Cost Price Market Price Unrealized Gain/Loss
Standard Including Staff Loan 4077.05 2.63 (Solo) 4.51 1.88
Special Mention Account 115.74 Un-Quoted Share
Sub-Total (a) 4192.79 6.00 (Solo)

All investment securities are initially recognized at cost.

Classified Fig in crore Tk. Premiums are amortized and discount accredited, using
the effective yield method and are taken to discount
Substandard Loan 17.74
income. The valuation methods of Marking to Market
Doubtful 2.64 for investment used are:
Bad/loss 82.87 a) Held to Maturity (HTM) and by definition the in-
Sub-Total (b) 103.26 vestments which have “fixed or determinable” pay-
ments and fixed maturity that the group has the
Total (a+b): 4296.05
positive intent and ability to hold to maturity other
than those that meet the definition of ‘Held at amor-
Movement of Nonperforming Asset (NPAs) and

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tized cost others’ are classified as held to maturity.
Specific Provisions of NRBC Bank These investments are subsequently measured at
Movement of Nonperforming Fig in crore Tk. amortized cost, less any provision for impairment
Asset (NPAs) in value. Amortized cost is calculated by taking into
account any discount or premium in acquisition.
Opening balance 19.30
.c Any gain or loss on such investments is recognized
Addition 147.44 in the statement of income when the investment is
Reduction 63.48 derecognized or impaired as per IAS-39 “Financial
d
Instruments: Recognition and Measurement”
Closing balance 103.26
b) Held for Trading (HFT) is a method where invest-
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Movement of Specific Provisions for NPAs ments are acquired principally for the purpose of
Opening balance 5.39 selling or repurchasing or in short trading or if des-
Provisions made during the 34.87 ignated as such by the management. After initial
period recognition, investments are measured at present
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value and any change in the fair value is recognized

Write-off 0.00 in the statement of income for the period in which it
Write-back of excess 0.00 arises. Transaction costs, if any, are not added to the
provisions value of investments at initial recognition.
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Closing balance 40.26 c) Revaluation: According to DOS Circular no.-05, dat-

ed 26th May 2008, the HFT securities are revalued
5. Equities: Disclosures forBanking Book Positions once each week using Marking to Market concept
and the HTM securities are amortized once a year
Investment in equity securities by NRBCB is broadly according to Bangladesh Bank guidelines. The HTM
categorized into two parts: Quoted securities (Ordinary
securities are also revaluated if they are reclassified
shares, Mutual Fund) and Un-quoted securities
to HFT category with the Board’s approval.
(including preference share and subscription for private
placement). Unquoted securities are categorized as Capital Charge on Equities
banking book exposures which are further subdivided
into two groups: unquoted securities which are invested Particulars Amount Capital
without any expectation that these will be quoted in Charge
near future (i.e. held to maturity) and securities that are
Specific Risk 2.63 0.26
acquired under private placement or IPO and are going
to be traded in the secondary market after completing General Market Risk 2.63 0.26
required formalities. Usually these securities are held for Total 5.27 0.53
trading or investment for making capital gains.
6. Interest Rate Risk in the Banking Book (IRRBB)
It is the risk related to interest income arising from a
mismatch between the duration of assets and liabilities

99
 Annual Report 2017

that arises in the normal course of business activities. Interest rate risk in banking book as of Dec 31st, 2017 is
Changes in interest rates affect the underlying value of calculated as change in Market Value (MV) of equity as below:
the bank’s assets, liabilities, and off-balance-sheet (OBS)
instruments because the present value of future cash Interest rate change 1% 2% 3%
flows (and in some cases, the cash flows themselves) Change in market (6.54) (13.08) (19.63)
change when interest rates change. value of equity
Organizational Structure
The below result implies that bank has more interest
The Asset Liability Management Committee of the rate sensitive assets than interest rate sensitive liabilities
bank monitors and manages the IRRBB. The ALCO is and increase in interest rate may cause an increase in
responsible for management of the balance sheet of the the economic value of bank’s capital.
bank with a view to manage the market risk exposure
by the bank within the risk parameters laid down by the Sensitivity Analysis
Board of Directors/Risk Committee.
Fig in crore Tk.
IRRBB Management Procedure Total Risk Sensitive
IRRBB architecture is the framework to measure, Asset 4808.89
monitor and control the adverse impact of interest rates Total Risk Sensitive

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on the bank’s financial condition within tolerable limits. Liabilities 4440.73
This impact is calculated from following perspectives:
Cumulative Gap
i) Earning perspective: Indicates the impact
on Bank’s net interest income (NII) in the < 3 months (114.57)
short term. 3-6 months 141.32
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6-12 months 203.86
ii) Economic perspective: Indicates the im-
pact on the net-worth of bank due to CRAR before shock (Solo)
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re-pricing of assets, liabilities and off-bal-
Assumed Change in
ance sheet items. 1% 2% 3%
Interest Rate (%)
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The ALM& Market Risk Policies define the framework for Capital after shock 673.76 675.80 677.84
managing IRRBB through measures such as:
CRAR after shock 13.53 13.57 13.61
a) Interest Rate Sensitivity Report: Measures
mismatches between rate sensitive liabilities 7. Market Risk
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and rate sensitive assets in various tenor buck-

ets based on re-pricing or maturity, as applica- Market risk is the risk of adverse revaluation or
ble. movement of any financial instrument as a consequence
of changes in market prices or rates. Market risk exists in
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b) Duration Gap Analysis: Measures the mis- all trading, banking and investment portfolios but for the
match in duration of assets & liabilities and the purpose of this report, it is considered as a risk specific
resultant impact on market value of equity. to trading book of the bank. The major types of market
risk as specified in the Risk Based Capital Adequacy
c) Stress Testing: It is conducted on quarterly (RBCA) are as follows:
basis as per the directives of Bangladesh Bank
to gain better insight into the vulnerable issue i) Interest rate risk ii) Foreign exchange risk iii) Equity
of IRRBB. Evaluates the impact on duration of position and iv) Commodity risk.
capital of banking book under various stress i) Interest Rate Risk: Arising from changes in yield
scenarios. curves, credit spreads and implied volatilities on
Quantitative Disclosure interest rate options.
ii) Foreign Exchange Rate Risk: Arising from changes
Particulars in exchange rates and implied volatilities on for-
Duration in Asset 1.34 eign exchange options.
Duration in Liabilities 1.31 iii) Equity Position Risk: Arising from changes in the
Duration Gap (in Years) 0.13 prices of equities, equity indices, equity baskets
and implied volatilities on related options.
Among the above list the main type of market risk faced
by the bank are interest rate risk and foreign exchange

100 NRB Commercial Bank Limited

risk. The management of bank has given significant 8. Operational Risk

Disclosure on Risk Based Capital (Basel III)

attention to market risk in trading book, to assess the
potential impact on the bank’s business due to the Operational risk is the risk of direct or indirect loss
unprecedented volatility in financial markets. due to an event or action resulting from the failure of
internal processes, people and systems, or from external
Views of BOD on Trading/Investment Activities events. We seek to minimize exposure to operational
The Board approves all policies related to market risk, risk, subject to cost benefit trade-offs.
sets limits and reviews compliance on a regular basis. Views of BOD on System to Reduce Operational Risk
The objective is to obtain maximum returns without
taking undue risks. Banks Internal Control & Compliance (IC&CD) is the
main tool in managing operational risk. Management
Methods used to Measure Market Risk through three units of ICCD i.e. monitoring, compliance
Bank applies maturity method in measuring interest rate and Audit & Inspection controls overall operation of
risk in respect of securities in trading book. The capital the bank. Board audit committee directly oversees the
charge for entire market risk exposure is computed functions of ICCD to prevent operational risk.
under the standardized approach using the maturity
method and in accordance with the guideline issued by Performance Gap of Executives and Staffs
Bangladesh Bank. NRBC bank is an equal opportunity employer. At NRBC
Market Risk Management System bank we recognize the importance of having the right

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people at right positions to achieve organizational
The Treasury Division manages market risk covering goals. Our recruitment and selection is governed by
liquidity, interest rate and foreign exchange risks with the philosophies of fairness, transparency and diversity.
oversight from Asset-Liability Management Committee Understanding what is working well and what requires
(ALCO) comprising senior executives of the Bank. further support is essential to our performance
Policies and procedure for mitigating market risk are
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management system. The performance management
process aims to clarify what is expected from employees
mentioned below.
as well as how it is to be achieved.
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⇒⇒Risk Management and reporting is based on pa- Potential External Event: No potential external event is
rameters such as Maturity Gap Analysis, Dura- expected to expose the bank to significant operational risk.
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tion Gap Analysis.

Policies and Processes for Mitigating Operational Risk
⇒⇒Risk Profiles are analyzed and mitigating strate-
gies/processes are suggested by the Asset Lia- As there is no upside of this risk, the objective of the
bility Committee (ALCO). management of operational risk is to minimize the risk
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in cost effective manner. Currently bank is not using

⇒⇒Foreign Exchange Net Open Position (NOP) lim- any model or tool to capture operational loss data for
its (Day limit/Overnight limit), deal-wise trigger historical analysis rather it is a self assessment process.
limits, Stop-loss limit, Profit/Loss in respect of Bank’s ICC division is responsible for risk identification,
cross currency trading are properly monitored measurement, monitoring, control, and reporting of
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and exception reporting is regularly carried out. operational risk. Bank strongly follows KYC norms for its
⇒⇒Holding of equities is monitored regularly so customer dealings and other banking operations. The
Internal Control and Compliance division of the bank,
that the investment remains within the limit as
the inspection teams of Bangladesh Bank and External
set by Bangladesh Bank.
Auditors conduct inspection of different branches and
⇒⇒Asset Liability Management Committee (ALCO) divisions at Head Office of the bank and submit reports
analyzes market and determines strategies to presenting the findings of the inspections. Necessary
attain business goals. control measures and corrective actions have been taken
on the suggestions or observations made in these reports.
⇒⇒Reconciliation of foreign currency transactions.
Approach for Calculating Capital Charge for
Qualitative Disclosure: Both Solo and Consolidated Basis Operational Risk
The capital requirements for : Fig in crore Tk. The bank applies ‘Basic Indicator Approach’ of Basel III as
Solo Consolidated prescribed by BB in revised RBCA guidelines. Under this
approach, banks have to calculate average annual gross
i) Interest Rate Risk 0.00 0.00 income (GI) of consecutive last three years and multiply
ii) Equity Position Risk 0.53 1.89 the result by 15% (α factor) to determine required capital
charge. Gross Income is the sum of ‘Net Interest Income’,
iii) Foreign Exchange Risk 6.99 6.99 ‘Net non-interest income’ and ‘Interest Suspense’ of a
iv) Commodity Risk 0.00 0.00 year or it is ‘Total Operating Income’ of the bank.

101
 Annual Report 2017

Quantitative Disclosure: The capital requirement for  Medium Term Funding Ratio (MTFR) : MTF =
operational risk is as follows (Total Liabilities one year and above)/(Total As-
sets one year and above)
Fig in crore Tk.
 Maximum Cumulative Outflow (MCO): MCO =
Particulars Solo Consolidated (Total outflows up to one month and Total OBS
The capital requirement 32.77 33.00 up to one month)/(Total Inflows +Total Nostro
for operational risk a/c balance (Net)+ Total available Fcy with BB)
9. Liquidity Ratio and Risk  Advance Deposit Ratio (ADR): ADR=Total
Loans& Advances on a given date/Total deposit
Liquidity ratios are a class of financial metrics used to
on a given date
determine a bank’s ability to pay off its short-terms
debts obligations. Liquidity risk is the risk that a bank  Liquidity Coverage Ratio (LCR): LCR =Stock of
may be unable to meet short term financial demands. High quality liquid Assets/Total net cash out-
This usually occurs due to the inability to convert a flows over the next 30 calendar days
security or hard asset to cash without a loss of capital
and/or income in the process.  Net Stable Funding Raito (NSFR): NSFR=Avail-
able Stable Fund (ASF)/Required Stable Fund
Views of BOD on System to Reduce Operational (RSF)

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Risk
Policies and Process for Mitigating Liquidity Risk
The Board Risk Management Committee regularly
observes the key liquidity risk indicator i.e. Volatile In order to develop comprehensive liquidity risk man-
liability dependency ratio, Medium term funding ratio, agement framework, the bank has a Liquidity Contingen-
and Net stable funding ratio and provide their valuable cy Plan. A set of policies and procedures that serves as
opinion.
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a blueprint for the bank to meet its funding needs in a
timely manner and at a reasonable cost. In this sense, a
Methods used to Measure Liquidity Risk Liquidity Contingency Plan (LCP) is an extension of ongo-
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The stress test for liquidity risk evaluates the resilience ing liquidity management and formalizes the objectives
of the banks towards the fall in liquid liabilities. The ratio of liquidity management by ensuring:
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“liquid assets to liquid liabilities” is calculated before a) Maintenance of reasonable amount of liquid assets.
and after the application of shocks by dividing the liquid
assets with liquid liabilities. Liquid assets are the assets b) Measurement and projection of funding require-
that are easily turned into cash without the threat of ments and
loss. They include cash, balances with Bangladesh Bank
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c) Management of access to funding sources.

and balances with banks, call money lending, lending
under repo and investment in government securities. Quantitative Disclosure
Liquid liabilities include the deposits and the borrowings.
Appropriate shocks will have to be absorbed to the liquid Fig in crore Tk.
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liabilities if the current liquidity position falls at the rate

of 10%, 20% and 30% respectively. Net Stable Funding Raito 112.95%
(NSFR)
Liquidity Risk Management System Liquidity Coverage Ratio 109.30%
The ALCO of the NRBC Bank regularly monitors the (LCR)
driving factors of liquidity risk called Regulatory Liquidity Medium Term Funding 93.24%
Indicators (RLIs). These factors are measured form the Ratio (MTFR)
following aspects.
Maximum Cumulative Out- 20.51%
 Cash Reserve Requirement (CRR): As per flow (MCO)
MPD circular No-1, bank have to maintain CRR
Advance Deposit Ratio 94.97%
of minimum 6% on daily basis and 6.5% on
(ADR)
bi-weekly basis of weekly average demand and
time liabilities of the base month which is two Required Maintained
month back of reporting month. Cash Reserve Requirement 284.56 291.64
 Statutory Liquidity Ratio (SLR) : As per DOS (CRR)
circular No-1, bank have to maintain SLR of Statutory Liquidity Ratio 569.12 581.78
minimum 13% on weekly average demand and (SLR)
time liabilities of the base month which is two
month back of reporting month.

102 NRB Commercial Bank Limited

10. Leverage Ratio recognize annual performance over the financial year.

Disclosure on Risk Based Capital (Basel III)

Views of BOD on System to Reduce Excessive In case of following situation remuneration can be
Leverage adjusted before vesting:

Excessive leverage by banks is widely believed to have ⇒⇒Disciplinary Action (at the discretion of Enquiry
contributed to the global financial crisis. Thus Basel III committee)
rules have introduced leverage ratio as a non risk based ⇒⇒Resignation of the employee prior to the pay-
capital requirements. Board of Directors of our bank are ment date.
continuously monitoring the exposure limit of lending,
capital strength of our bank in order to avoid building-up Qualitative Disclosure Fig in crore
excessive on and off-balance sheet leverage. Tk
Approach for Calculating Exposure Number of meetings held by the main
body overseeing remuneration during
According to instruction of Supervisory body, the bank the financial year and remuneration
is maintaining leverage ratio on quarterly basis. The paid to its member.
calculation at the end of each calendar quarter will be
submitted to BB showing the average of the month Number of employees having received a variable
remuneration award during the financial year.

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end leverage ratios based on the following definition of
capital and total exposure. Number and total amount of guaran- 4.10
teed (festival) bonuses awarded during
Tier-1 Capital (after related deduction ) the financial year.
Leverage Ratio =
Total Exposure (after related deduction) Number and total amount of sign-on
Qualitative Disclosure:
.c
awards made during the financial year.
Number and total amount of severance
Leverage Ratio Solo consolidated payments made during the financial year
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(Required 3%) 9.93% 10.02% Total amount of outstanding deferred re-
muneration, split into cash, shares and
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11. Remuneration share-linked instruments and other forms.

The bank has a Board approved payroll/remuneration Total amount of deferred remuneration
policy which is incorporated in HR policy. The bank paid out in the financial year.
doesn’t have any individual committee/bodies that
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overseeing the remuneration. MANCOM with the Breakdown of amount of remuneration

concern of Board will monitor the issue on required awards for the financial year to show: ( Incentive
basis. The bank has approved rewarding policy for the fixed and variable, deferred and non-de- bonus Tk.
performing employees. financial benefits may be granted ferred, different forms used (cash, shares 8.60)
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to an employee by the board or any other authority and share linked instruments, other forms).
empowered by the Board for meritorious service. An
award in cash or in kind may be granted to an employee
by the Board or any other authority empowered by the
Board for the outstanding academic and professional
achievements.
Structure of Remuneration
The Structure of remuneration arrangements for all
employees consists of following components:
⇒⇒Fixed Remuneration; and
⇒⇒Variable pay
The fixed remuneration is made up of base remuneration
and superannuation. Base remuneration includes salary
and allowances paid in cash. Superannuation is paid to
the employee at the time of retirement.
Variable pay consists of incentive bonuses award to
most of the banks employee which are discretionary and

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104 NRB Commercial Bank Limited

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NRBC Philanthropic Activities

 Annual Report 2017

Philanthropy create the societal reciprocity

“A certain amount of corporate philanthropy is simply of economically, physically and socially challenged
good business and works for the long-term benefit of communities of the country though an integrated
the investors.” –John Mackey approach of development which focuses on crating
sustainable livelihood, promoting education and skill
Earlier in the Business world Profit Maximization was development. The bank shall also promote initiatives
the only focal point but the scenario has started getting that preserve, restore and enhance environment,
changed. Every person belonging to the society has own ecological balance and natural resources and improve
social responsibilities towards the society so does the sanitation and hygiene.
business firms. An organization has to perform such NRBC Bank believes that education is the prime factor
philanthropic activities so as to maintain a balance behind development of any county. In this regard,
between the economy and the ecosystem. A trade NRBC Bank has made donation to Prime Minister’s
off always exists between economic development Education Assistant Trust for providing education for
and the welfare of the society and environment. deprived children, Dhaka University Alumni Association
Social responsibility can be passive or Active. Passive for educational enhancement program, Kakoli High
philanthropic activities generally mean avoiding being School & College and Mohonpur Public High School for

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engaged in socially harmful acts. On the other hand infrastructural development of the School. NRBC Bank
Active philanthropic activities encompass performing has also taken part in Financial Literacy program of 2,500
RMC Worker in view to inclusion in Banking System
activities that directly advance social goals.
Jointly with Swiss contact (US bond Donor agency).
Philanthropic activities commonly used as Corporate
Social Responsibilities (CSR) is widely accepted as a
strategically important issue for the sustainable growth
.c
and competitiveness of business now-a-days. CSR
practices by banks not only improve their own standards
d
but also affect the socially responsible behaviors of other
businesses. Sustainable society is considered vital for
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overall economy. Business organizations can participate

in this social process by complying their responsibilities
towards the society.
Being a responsible corporate citizen NRBC Bank is fully
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aware of its responsibilities towards the society as a Former Chairman Engr. Farasath Ali handedover of Cheque
whole. NRBC Bank is fully aware of how its operational to Honorable Prime Minister as donation to the Suchona
activities impact its stakeholders, the economy, the Foundation through Prime Minister Relief Fund to welfare of
society, its staff and the environment. NRBC Bank focuses autism spectrum disorder child.
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on Conducting business in an ethical way, creating

We believe that cultural diversification is an asset
opportunities for business and economic development,
for Bangladesh and every people belonging to every
empowering people to fulfill their aspirations, ensuring
religion, community and tribe has the right to celebrate
protection of environment while financing businesses
their own festivals. To support cultural diversification
and supporting the distressed people of the society.
NRBC Bank has sponsored conference on Monipuri
NRB Commercial Bank has established such CSR policies
Women Weavers organized by Bangladesh Monipuri
keeping these above mentioned factors in mind.
Adibashi Forum.
The bank’s policy has been framed in accordance with
NRBC Bank being a society oriented bank always
guideline provided by Bangladesh Bank. The policy shall
encourages sports along with study. We believe that
be applied to all Philanthropic/CSR activities undertaken
sports hinder all sorts of social unrest. To spread sports
by the Bank or executed through any other Trust/
throughout the country NRBC Bank arranged NRBC
Society of implementation partner or any other fund set
Independent day Marathan-2017 and donated to the
up by the Government. NRBC Bank Board of Directors
13th National Summer Athletic Competition-2017 &
has always supported and encouraged participation
41st National Athletics Competition -2017 organized by
in Philanthropic/CSR programs. The primary objective
Bangladesh Athletic Federation.
of NRBC Bank Philanthropic/CSR policy is to make
a meaningful and measurable impact in the lives

106 NRB Commercial Bank Limited

 Every business organization owes some social

NRBC Philanthropic Activities

responsibility towards the society, nation and the world
since it operates for them, which provides human
resources and natural resources. Long run growth
and sustainable development are main objectives
of any business organizations. They try to achieve
their objectives through CSR practices. As far as NRB
Commercial Bank Limited is concerned, it has gone long
way in fulfilling its duty and responsibility towards the
society within a short span of time. We are committed to
perform our social duty for betterment and development
of our country as well as sustainable growth.
Vice Chairman Mr. Mohammad Shahid Islam handedover of
Cheque to Honorable Prime Minister as donation to the Prime
Minister Relief Fund for improvement of education of the
country.

Apart from this, NRBC Bank donated Shuchana

Foundation under Prime Minister’s Office for Financial

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assistance of the people suffering from different
disabilities as well as Holy Family Red Crescent Medical
College Hospital for infrastructural development of
Hospital building along with modern medical equipment. .c
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Former Chairman Engr. Farasath Ali handedover of Cheque to
Honorable Prime Minister as donation to the Prime Minister
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Relief Fund for help to the flood affected people of north and
east part of the country.
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Hon’ble Deputy Managing Director Kazi Md. Talha handover a

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cheque to Breg. Gen Dr. Md. Shahadat Hossain Sharif (Retd.),

Director of Holy Family Red Crescent Medical College Hospital
for infrastructural development along with modern cancer
medical equipment.

“Man to Man, Life for Life”. Like the lyrics of the famous
song we also believe in serving the people, extending our
hands to the needy people. To support the marginalized
population we took some initiatives. We donated to the
Prime Minister’s Relief Fund for flood affected People, to
help destitute People of Bangladesh, to help Ruhingya
Refugees. NRBC Bank also extended their helping hands
to Flood Affected people in Haor Region by donating to
Sammilito Samajik Andolon.
In addition to all mentioned above, NRBC Bank donated
to a lot of Masjid, Madrasa and many other religious
institutions for infrastructural and other developments.
Bank also donated for observing International Migrant
Day-2017 with the Prbashi Kallan Bank. Financial
assistance was provided to Batkhola Tajmohal Khandokar
Shisu Sadan for developing a building for the Orphans.

107
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108 NRB Commercial Bank Limited

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Human Capital
 Annual Report 2017

Human Capital - the Key to excellent act

Human Resource rendering best possible services to its customers. In
the year 2017 we have recruited 70 candidates both in
NRBC Bank Limited always considers quality and skilled experienced and freshers category.
human resources as the single most valued asset for the
Bank to achieve organizational objectives and goals. As a NRBC Team at a glance
strategic partner, Human Resources Division endeavors
and makes extensive efforts in developing human Particulars 2016 2017
resource plans that are aligned to the Bank’s long term Number of Employees 567 617
corporate goals and vision. The most dedicated and
highly professional pools of workforce of NRBC Bank are a. Executive 60 61
the most key driver of bank’s performance. Our efficient b. Non-Executive 493 544
work force acts as the fundamental pillar to reach the Support Staff & Driver 12 12
Bank today’s height of success and always committed
to maximizing wealth of the bank. Our employee Marketing Associates 2 --
commitment, qualifications and loyalty toward the bank (Contractual)
give us a strong competitive edge. So we continuously Female Representation 89 116
develop and expand the skills and knowledge of our

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employees. Male Representation 478 501
Employee turnover rate 6.87% 5.51%
HR Dream
To strengthen the team spirit NRBC Bank’s HR Division Work environment & Staff comfort
has set its own vision that is one of the best managed, We believe that employee satisfaction drives them to
most productive and cost efficient workforce among
.c
better perform, so that the Bank provides them every
local banks in Bangladesh. Human Resources Division facility it can. HR policy laid emphasis on the employees’
of NRBC Bank is working relentlessly help unlock and benefits, as employees are the valuable assets and the
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maximize the true potential of our human capital and Bank intends to make them more valuable, providing
giving relentless effort to align our people towards them sufficient pecuniary benefits, nurturing their
the Bank’s vision of success, connect people’s daily
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knowledge as well. Good work environment is a matter

performance to the Bank’s strategy and build a culture to perform better and accordingly, NRBC Bank offers
of empowerment. a hygienic work environment. In order to achieve the
annual objective of the Bank, Human Resource Division
Engage the finest people has been working as one of the strategic partners of
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We are constantly seeking to attract talented young the Bank to retain its talented Resources. Apartment
people to our Bank. HR Policy of the Bank includes a attractive compensation package, a good number of
strategic imperative for recruiting the best people from welfare programs aiming to wellbeing, safety standards
the society, as these people would lead to achieve and working environment think its employees enjoy real
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comparative advantage for the Bank in recruiting rewarded than financial as such they own NRBC Bank is
fresh graduates, NRBC Bank brings people from their bank.
different academic backgrounds which act as a source
of creativity. Since inception of the Bank, fresh Training and Development
candidates with good academic background and Knowledge and skill development is a continuous
experienced candidates with a good track record has process, which is enriched by proper training. NRBC
been recruited in all levels of the Bank every year for Bank has a strong focus on imparting training towards

Participants and Trainer of workshop on “Prevention of Money Laundering & Terrorist Financing” is held at NRB Commercial
Bank Limited, Narayanganj Branch on October 14, 2017.

110 NRB Commercial Bank Limited

enhancement of the skills and competencies of the new banking innovation. The Training Institute also goes

Human Capital
employees to take over the challenge of modern banking through a complete Training Needs Assessment (TNA)
as there is no alternative to training for the development Process. The development of Human Capital essentially
of human resources. The Bank has established ‘ NRBC demands training throughout the year.
Bank Training Institute’ in 2014 which is the flagship
To nourish the quality of the talent pool recruited in the
learning center where human resources of the bank are
different segments, NRBC Bank arranges a wide range
trained for developing their skills, knowledge and abilities
of in-house, local and international trainings provided by
(SKAs) for achieving the cherished dream of the Bank. To
prominent national & international Experts in Banking
achieve this goal, the Institute designs training calendar
& Finance as well as our experienced & skilled in-house
considering regulatory compliance requirements and
resources.

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Another workshop on ‘Prevention of Money Laundering and Terrorist Financing’ held on 23 September 2017 at NRB Commercial Bank Barisal
Branch.
In a variety of categories we have provided trainings including Foundation courses over the year.
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training as under
Training-2017 at a Glance
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⇒⇒ Orientation Program
Number of Training (Internal) 31
⇒⇒ Foundation Training Program Number of Trainings (External) 54
⇒⇒ Job Specific Training Program Number of Trainings (Foreign) 05
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⇒⇒ Need based Local/Foreign Training Total Trainings held during 2017 90

Our Strategic Objective for Training Number of Participants (Internal) 435
⇒⇒ Assess training needs for individuals and teams Number of Participants (External) 103
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in similar functions. Number of Participants (Foreign) 05

⇒⇒ Provide continuous Learning and Development Total Participants 543
opportunities for all the employees of the
Bank.
One Bank - One Family
Our Bank fosters and nurtures the concept of “One
⇒⇒ Capture training based on proficient
Bank – One Family” since its inception and endeavor
framework. continues to create a professional work culture that
⇒⇒ Focus on the development of the employees to amplifies Staff motivation and influence the quality of
bring out the persons’ insider instinct into light. work-life. Since the Bank’s mission is to make it “The Best
Place to Work”, the inter-personal integration among
Effective instructional and practical method for learning the employees is very much important by creating a
retention.In the year 2017, different types of trainings congenial, healthy, caring and productive environment
held which covers the regulatory obliged areas like for all levels of employees. Two-way communication is
Prevention of Money Laundering & terrorist Financing, always appreciated here and this positive interaction
Integrated Supervision System, Cyber Security between higher Management and all the employees is
Awareness, Precaution in Foreign Exchange Operations evident in NRBC Bank’s remarkable growth and success
etc. as well as other mandatory banking operational stepping towards every year.

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112 NRB Commercial Bank Limited

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Agent Banking
 Annual Report 2017

Diversified Era of NRBC Agent Banking

Door to Door Service for the Unbanked People NRBC’s Agent Banking Services
NRBC Bank bears a unique history of its own. The ⇒⇒ Opening of Bank’s Savings, Current, SND, FDR &
organization started its journey 18th April 2013 as one of Scheme account.
the 4th generation private sector scheduled bank. NRBC
Bank constantly focuses the changing need and desire ⇒⇒ Collection of small value cash deposit and cash
of its customers, to develop new and re-engineered withdrawal, facilitating utility bill payments
process of service delivery. It has a focus to act as an ⇒⇒ Inward foreign Remittance distribution, inland
effective delivery channel to distribute NRB remittance Remittance, facilitating fund transfer
all over the country. Bangladesh Bank has given scope to
the banks to develop another alternate delivery channel ⇒⇒ Cash payment under different programs of the
in the name and style “Agent Banking”. This channel Government
will bring opportunity for the banks to serve the mass ⇒⇒ Balance enquiry, generation and issuance of mini
people at cutting edge price complying with regulatory bank statement
requirements. Among the 9 new Banks, NRBC Bank
got approval from Bangladesh Bank on 29th May 2014 ⇒⇒ Collection and processing of documents in relation

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to start Agent Banking Operation by engaging Agents/ to account opening, loan application, credit and
Sub-Agents throughout the country. The operation of debit card application from public
our Agent Banking is real time basis having effect at
Core Banking Software. Our Agent Banking Software ⇒⇒ Other functions like payment of insurance premium,
vendor “Celloscope Limited” and CBS vendor “Leads
.c sale of crop etc.
Corporation Limited” worked jointly to integrate CBS ⇒⇒ Receive of Utility Bills like, DPDC, WASA, REB &
and Agent Banking software from February 2015. We collection of BRTA fees/charges.
have started our Agent Banking journey as pilot project
At the customer end the transaction will be operated
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from July 2015 and we have officially launched Agent
Banking operation from 17th December 2015. through ICT devices which will be continuously and
uninterruptedly integrated to the Core Banking Software
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NRB Commercial Bank Agent Banking at a glance: (CBS) of the bank. The transactions will be executed on
As on 31 December 2017 real time basis. At the end point, the customer will get
⇒⇒ No. of Agent: 03 instant confirmation of their transaction through visual
basis (screen based) or paper based (debit or credit
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⇒⇒ No. of Sub Agent: 515 slip).The journey of NRBC Bank began five years ago as
⇒⇒ No. of Account: 6696 outcome of dreams of few non-resident Bangladeshis. In
the quest for developing a dynamic, modern, technology
⇒⇒ No. of Transaction: 16090 based and customer oriented banking service; NRBC Bank
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⇒⇒ Transaction Amount: 40579826.10 has been constantly putting effort and its endeavor. We
would like to bring people within banking services who
⇒⇒ No. of IFR Transaction: 52 are still out of the banking network. Specially, farmers,
⇒⇒ IFR Transaction Amount: 1,491,877.52 fishermen and other low income people of Bangladesh from
rural / remote areas are still remaining unbanked. We are
⇒⇒ No. of Electricity Bill: 114055 hopeful that by year 2020, we can reach numerous farmers
⇒⇒ No. of Electricity Bill Amount: 56,749,751.00 and other professionals of rural area through our Agent
Banking operations. We believe, inclusion of these unbanked
New Age of Agent Banking people to banking services will benefit them in numerous
Agent banking program will change the banking scenario ways as well as enhance financial activities of macro economy
in near future. The low income & un-banked people of the country and its accumulated outcome will expedite a
will get banking services throughout the country. NRB sustainable growth of Bangladesh economy. Thus, we can
families are settled mostly in rural areas all over the serve our beloved motherland and our long cherished dream
country. The Bank wants to make door step services for of glorifying the name of Bangladesh in global economy by
disbursement of their remittance, Government safety putting it on a firm position will come true.
nets program funds through our agents. NRBC’s agents Growth of Agent Banking Network
will also collect electricity bill & other bills from door to
door. In this way, the bank is planning to build remittance Network of Agent bank spread out all over the country.
connection and build a low cost deposit base. NRBC is not behind such endeavor. NRBC is executing

114 NRB Commercial Bank Limited

agreements with Corporate Institutions for steady Inward Foreign Remittance (IFR) distribution

Agent Banking
expansion of Agent Banking Operation all over the under NRBC Bank Agent Banking
country. MoU signed with A2i (Access to information
program, a project of the Government of Bangladesh As an effective delivery channel to distribute NRB
under Prime Ministers Office) to work as our Agent remittance & other Banking services, NRBC Bank started
under Agent Banking Operation. A2i have around 5600 its Agent Banking expansions to rural areas of the
Digital Information Centers at Union Parishad offices all country. Now NRB’s can send their foreign remittance
over Bangladesh. These digital centers will act as Sub- to their nearest and dearest persons of rural areas. Our
Agents to connect un-bank people all over the country. Agents can also deliver the remittance to customer’s door
Bank has also signed MoU with SYMANTEC, a renowned steps by carrying the movable Agent Banking devices.
corporate body who are engaged with collection of As the Banking process is running through Biometric
Bridge Tolls at some important bridges like Mukterpur impression, there is no chance of fraudulent activity.
Bridge, Meghna-Gomti Bridge. Currently Bank is NRBC Bank already disbursed more than 30.00Lac taka
collecting Mukterpur Bridge Tolls through sub-agent IFR at rural areas.
point. Bank has signed MoU with another corporate REB Bills collection under NRBC Bank Agent
body Agriculture Business Centre ABC, they will spread Banking system
their rural agro based network named with 400 outlets
Recently in February 2017, Rural Electrification Board

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all over Bangladesh through their sub-agent points.
(REB) has signed a MoU with NRBC Bank for collection of
Safetynet Program under NRBC Bank Agent Rural household and company’s consumed Electric Bills
Banking system through our Agent Banking Channel all over the country.
For a pilot project, A2i (Access to Information) Prime They have also fixed the ceiling of commission which will
be given to our Agents. Here it should be mentioned that
Minister’s Office has linked Social Welfare Department
and NRBC Bank for disbursement of Safetynet funds
.c our Bank Agents have already collected 20 Crore taka
through electronically and proper banking channel. electric bills from their Agent Points without any hassle
Social Welfare Department has selected NRBC Bank and in a easy way.
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for disbursement of Safetynet funds to Elderly/Widow/
divorced/Disabled people of Naogaon & Narsingdi
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District’s surrounding area. At field level, our Agents

communicating with the registered person and collect
necessary documents from them and open individual
Savings account through NRBC Bank Agent Banking
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devices. Individual accounts are operated with Finger

impression of the account holder(s) which were verified
by one of the Bank person physically. After successfully
verification, the account was activated for transaction.
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After any transaction, account holders are getting SMS

alert in their mobile phone from Bank’s Central server.
Our Agents are disbursing the safetynet funds from their
Agent Points (UDC’s) and some times at door steps in
case of elderly and disabled person.
“Inauguration of Pilot Project for PBS-2, Norsinghdi through
Agent Banking at Narsinghdi Union Digital Centre“

EGPP Program under NRBC Bank Agent Banking

system
The objective of the Employment Generation Program for
the Poorest Project (EGPP) for Bangladesh is to provide
the short-term employment on community sub-projects
to enable households to better cope with vulnerability,
while strengthening program implementation.

“Safetynet fund disbursing to disabled person at Noagaon district“

115
 Annual Report 2017

new horizon to the Government Safetynet fund disbursement

process and will ensure greater level of convenience to
Beneficiaries to their door step.

“Finger Print verification taking from a sick worker under egpp

program at jinardi union, Narshindi“
Mr. Kazi Md. Talha, Managing Director (C.C) of NRBC Bank &
There are two components of the project. The project Mr. Mahtab Uddin Ahmed, Managing Director/CEO of Robi

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follows a results-based financing mechanism and
Axiata Limited was handed over the agreement.
disbursement-linked indicators (DLIs) representing
targets to trigger disbursement are specified for each Safetynet Fund disbursement through Banglalink
year of implementation of the Government program Digital communications Ltd Retailer
of the same name. , A2i (Access to Information) Prime
On 04th March, 2018 Banglalink Digital communications
Minister’s Office has linked Social Welfare Department
.c
Ltd has signed a MoU with NRB Commercial Bank.
and NRBC Bank for disbursement of EGPP funds through
NRB Commercial Bank wishes to engage Banglalink’s
electronically and proper banking channel. Social Welfare
Retailers for fund disbursement to mass people under
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Department has selected NRBC Bank for disbursement Bangladesh Government’s Safetynet Project. Regular
of Safetynet funds to Elderly/Widow/divorced/Disabled cash withdrawal and other small scale activities could
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people of Usmaninagar, Sylhet & Palash, Narsingdi serve from the retailer points.
District’s surrounding area.
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“Cash disbursing under egpp program at char-shindur union ,

Mr. Kazi Md. Talha, Managing Director (C.C) of NRBC Bank
& Mr. Erik Aas, Managing Director/CEO of Banglalink
Narshindi“
Digital Communications Limited was handed over the
Strategic Partnership begains with Robi Axiata Ltd agreement.
Retailer’s for Safetynet Fund disbursement
On November 13th 2017 Robi Axiata Ltd has signed a MoU with
NRBC Bank . This partnaring will serve the beneficiary of Mass
people for safety Net Fund Disbursement. All Robi retailers
will be use NRBCBank’s Agent Banking Apps and will verify the
biometric impression of beneficiaries to disburse the safetynet
Fund. Bank Management believes that the initiative will open a

116 NRB Commercial Bank Limited

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Green Banking
 Annual Report 2017

NRBC Bank towards Green Banking

Global warming is a burning issue of the time. The rapid Tk. in million
changes in the climate pattern cause many problems
which need immediate global response. Green banking Quarters Amount
refers to operating banking activities in such a manner 1 Quarter
st
717.21
that provides low-cost, long-term financing support to
2 Quarter
nd
795.79
clean, low-carbon projects and conserved resources for
the future generations. 3rd Quarter 581.47
4th Quarter 758.31
Bangladesh Bank, with a view to incorporating
sustainability in the financial sector, introduces Green Total 2852.78
Banking Policy Guideline for the Banks (vide BRPD
Circular No. 02, dated: February 27, 2011) and also Green Finance of NRBC Bank:
instructed the Banks & FIs (vide SFD Circular no. 02, Green finance as a part of Green Banking makes great
dated: December 01, 2016) to establish a Sustainable contribution to the transition to resource-efficient and
Finance Unit (SFU) under CRM Division. low carbon industries like green industry and green
economy in general. NRBC Bank financed types of
Green Banking initiatives of NRB Commercial

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projects are the following:
Bank:
Since its inception, NRB Commercial Bank Limited has
been emphasizing on diversifying its credit portfolio over Solar
various sectors including Green & Environment-friendly
Panel
Financing. Steps taken regarding Green Banking are:
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Green Banking Policy & Sustainable Finance Unit: Brick Field
ETP (Zigzag, HHK)
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NRB Commercial Bank Limited, from the very beginning,
abides by the Green Banking Policy of Bangladesh Bank.
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We have introduced both in-house & external Green

activities for supporting the Green Economy. Moreover, Green
NRBC Bank maintains a separate “Sustainable Finance
Unit’ under Credit Risk Management Division as per
Finance
Bangladesh Bank directives.
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Assessment of Environmental Risk in Credit Risk NRB Commercial Bank Ltd. has undertaken following
Management: green finance project up-to December 31, 2017.
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As per directives of Bangladesh Bank, NRB Commercial Tk. in million

Bank has started focusing the Environmental Risk
components in the Policy on Credit Risk Management Particulars Number Amount
as part of environmental due diligence. All our lending For Installation of ETP
proposals are assessed against environmental & social 2 484.67
(Amount Disbursed)
risks where appropriate. ETP Projects financed
having ETP(Full amount 3 2147.31
Diversification of Credit portfolio: disbursed)
We have diversified our credit portfolio over various Solar Panel/Renewable Energy
sectors including Green & Environment-friendly 1 0.77
Plant
Financing and extended direct / indirect Green Finance
to various industries. We pay low interest loans to the Others (Brick Field-Zigzag
15 220.03
customers who like to setup green and environment Method, HHK)
friendly projects. In the year 2017, we financed 21
customers in various fields like ETP, Solar Panel, Brick- In-House Green Banking Activities of NRB
field (Zigzag) etc. Besides, most of the Textile Industries Commercial Bank:
we financed are equipped with ETP facilities. In four
Besides financing on green & environment friendly
quarters of 2017, total disbursement under direct and
projects, NRBC Bank also emphasizes on promoting
indirect green finance was Tk.2852.78 million.
Green banking within the bank. Steps taken towards In-
House Green Banking Activities are:

118 NRB Commercial Bank Limited

  Paper Consumption Management: Internal com- SMS banking:

Green Banking
munications are done through emails. All staffs
NRBC Bank offers SMS Banking services to ensure instant
have dedicated email IDs for office use. Customer
access to ones account information at any time. Any
communications are being done through emails or mobile phone user having account with NRBC Bank can
SMS service. Use of one side used papers for draft get the services through the mobile phone. By using
copies of the office assignments has become usual SMS banking our customers can avail the services like:
practice in the workplace.

 Cost Management: NRBC Bank relies on virtual

meeting through the use of video conferencing in
lieu of physical travel which helps saving cost and
energy. Balance Enquery Mini Statement

 Power Savings Equipments: Energy saving Bulbs

has been introduced in the offices to minimize
electricity consumption.

Online and Internet banking: NRBC Bank Approach towards Green Banking:

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Online banking system is a great way to reduce paper NRB Commercial Bank believes that every small ‘GREEN’
consumption. All the 61 branches of NRB Commercial step taken today would go a long way in building a
Bank are providing online banking facilities through greener future. Therefore NRB Commercial Bank has
its core banking system namely “Bank Ultimus”. Fund adopted technology, process and products which result
Transfer to Other bank’s Accounts through BEFTN has in substantial reduction of its carbon footprint as well as
been made available through Online Banking for the
Customers.
.c develop a sustainable business.

NRBC Bank has offered 24/7 accessible Internet Banking

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service. By using real-time internet banking our
customers can avail the services like:
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View A/C
Statement
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Fund Balance Credit Card

Transfer Enquery Payment

Utility
Payment

Automated Teller Machine (ATM)

We are connected to National Payment Switch which
enables our debit/credit card customers to withdraw
money from any other bank’s ATMs within Bangladesh.
NRBC Bank has used the BACH and BEFTN mechanism
for convenient payment activities which to a great
extent supports the concept of green banking.

119
 Annual Report 2017

Managing Director and CFO’s Responsibility Statement on

integrity of Financial Statements
To
The Board of Directors
NRB Commercial Bank Limited
114, Motijheel C/A
Dhaka-1000

Sub: CEO and CFO’s declaration on integrity of consolidated financial statements as at 31 December 2017.

In compliance with the notification of Bangladesh Securities and Exchange Commission No.SEC/CMRRCD/2006-
158/134/Admin/44 dated August 07, 2012, We hereby certify that the consolidated Financial Statements (CFS) of
NRB Commercial Bank Limited (the Bank) as at and for the year ended 31 December 2017 have been prepared in
accordance with Bangladesh Financial Reporting Standards BFRSs), the “First Schedule” (section 38) of the Bank

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Company Act 1991, as amended along with the BRPD Circular no. 14 dated 25 June 2003, the Companies Act
1994, the Securities and Exchange Rules 1987 and other laws and rules applicable in Bangladesh. The Accounting
Policies used in the preparation of the CFS are appropriate and are consistently applied by the Bank. In case the
requirement of provisions and circulars issued by Bangladesh Bank differ with those of other regulatory authorities
and accounting standards, the provisions and circulars issued by Bangladesh Bank shall prevail with adequate
.c
disclosures of deviations made (please refer to note 2.1 of the CFS).

The estimates and judgments relating to the CFS were made on a prudent and reasonable basis; in order that the
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CFS reflect in a true and fair manner, the form and substance of transactions and present the statement of affairs
reasonably. To ensure this, the Bank has taken proper and sufficient care in installing a system of internal control and
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accounting records, for safeguarding assets and preventing and detecting frauds as well as other irregularities, which
is reviewed, evaluated and updated on an ongoing basis. Our Internal Auditor has conducted periodic audits to
provide reasonable assurance that the established policies and procedures of the Bank were consistently followed.
However, there are inherent limitations that should be recognized in weighing the assurance provided by any system
of internal controls and accounting.
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We hereby certify to the Board that

i. We have reviewed Consolidated Financial Statements of the Bank for the year 2017 and to the best of our
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knowledge and belief-

a) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b) these statements together present a true and fair view of the Bank’s 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 Bank during the year
which are fraudulent, illegal or violation of the Bank’s code of conduct.

Harunur Rashid Kazi Md. Talha

Chief Financial Officer Managing Director (CC)

Place : Dhaka
Dated 28 March 2018

120 NRB Commercial Bank Limited

 Independent Auditors’ Report To The Shareholders
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Auditors’ Report along with Audited Financial Statements

to the Shareholders

121
 Annual Report 2017

Independent Auditors’ Report

To The Shareholders
of
NRB Commercial Bank Limited
We have audited the accompanying consolidated financial statements of NRB Commercial Bank Limited and its
subsidiary (the “Group”) as well as the separate Financial Statements of NRB Commercial Bank Limited (the “Bank”),
which comprise the Consolidated Balance Sheet and the Separate Balance Sheet as at 31 December 2017, and the
consolidated and separate Profit and Loss Accounts, consolidated and separate Statements of Changes in Equity and
consolidated and separate Cash Flow Statement for the year then ended, and a summary of significant accounting
policies and other explanatory information.

Management’s Responsibility for the Financial Statements and Internal Controls

Management is responsible for the preparation of consolidated Financial Statements of the Group and also separate
Financial Statements of the Bank that give a true and fair view in accordance with Bangladesh Financial Reporting
Standards (BFRS), as explained in the note 2 to the financial statements, and for such internal control as management

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determines is necessary to enable the preparation of consolidated Financial Statements of the Group and also the
separate Financial Statements of the Bank that are free from material misstatement, whether due to fraud or
error. The Bank Companies Act, 1991 (as amended in 2018) and the Bangladesh Bank regulations require the
management to ensure effective internal audit, internal control and risk management functions of the Bank. The
management is also required to make a self- assessment on the effectiveness of anti-fraud internal controls and
report to Bangladesh Bank on instances of fraud and forgeries.
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Auditors’ Responsibility
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Our responsibility is to express an opinion on these consolidated financial statements of the Group and the separate
financial statements of the Bank based on our audit. We conducted our audit in accordance with Bangladesh
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Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the consolidated financial statements of the
Group and the separate financial statements of the Bank are free from material misstatement. An audit involves
performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
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statements of the Group and separate financial statements of the Bank. The procedures selected depend on our
judgment, including the assessment of the risks of material misstatement of the consolidated financial statements
of the Group and the separate financial statements of the Bank, whether due to fraud or error.
In making those risk assessments, we consider internal control relevant to the entity’s preparation of consolidated
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financial statements of the Group and the separate financial statements of the Bank that give a true and fair view
in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,
as well as evaluating the overall presentation of the consolidated financial statements of the Group and also the
separate financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion

Opinion
In our opinion, the consolidated financial statements of the Group and also the separate financial statements of
the Bank give a true and fair view of the consolidated financial position of the Group and the separate financial
position of the Bank as at 31 December 2017, and of its consolidated and separate financial performance and its
consolidated and separate cash flows for the year then ended in accordance with Bangladesh Financial Reporting
Standards as explained in note 2.

Other Matter
The consolidated and separate financial statements of the Group and the Bank for the year ended 31 December
2016 were jointly audited by Hoque Bhattacharjee Das & Co., Chartered Accountants and ACNABIN, Chartered
Accountants who expressed an unmodified opinion on those Financial statements on 26 February 2017.

122 NRB Commercial Bank Limited

Report on Other Legal and Regulatory Requirements

Independent Auditors’ Report To The Shareholders

In accordance with the Companies Act 1994, the Bank Companies Act 1991 (As amended in 2018) and the rules and
regulations issued by Bangladesh Bank, we also report the following:
a) we have obtained all the information and explanation which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
b) to the extent noted during the course of our audit work performed on the basis stated under the Auditors’
Responsibility section in forming the above opinion on the consolidated financial statements of the Group and
the separate financial statements of the Bank and considering the reports of the management to Bangladesh
Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under the Management’s
Responsibility for the Financial Statements and Internal Control:
i) internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed
in note # 2.20 the financial statements appeared to be materially adequate;
ii) nothing has come to our attention regarding material instances of forgeries or irregularities or
administrative error and exception or anything detrimental committed by employee of the Bank and its
related entities;

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c) The financial statements of NRBC Bank Securities Limited, subsidiary company of the Bank, for the year ended
31 December 2017 have been audited by Hoque Bhattacharjee Das & Co., Chartered Accountants;
d) In our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as
it appeared from our examination of those books;
e) The consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance
.c
sheet and separate profit and loss account of the Bank dealt with by the report are in agreement with the books
of account;
d
f) The consolidated financial statements of the Group and the separate financial statements of the Bank have
been drawn up in conformity with prevailing rules, regulations and accounting standards as well as with related
guidance issued by Bangladesh Bank;
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g) Adequate provisions have been made for loans & advances and other assets which are in our opinion, doubtful
of recovery;
h) Capital to Risk Weighted Assets Ratio (CRAR) as required by the Bangladesh Bank has been maintained
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adequately during the year;

i) The records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
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j) The information and explanation required by us have been received and found satisfactory;
k) In our opinion, proper books of account as required by law have been kept by NRB Commercial Bank Limited
so far as it appeared from our examination of those books and proper returns adequate for the purpose of our
audit have been received from 51 branches not visited by us; and
l) We have reviewed over 80% of the risk weighted assets of the Bank covering 08 branches as well as head office
and spent approximately 3,460 man hours for the audit of the books and accounts of the bank.

Hoque Bhattacharjee Das & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountaants

Place: Dhaka, Bangladesh

Dated: 28 March, 2018

123
 Annual Report 2017

NRB Commercial Bank Limited & Its Subsidiary

Consolidated Balance Sheet
As at 31 December 2017
At Dec 31, 2017 At Dec 31, 2016
Particulars Notes
Taka Taka

PROPERTY AND ASSETS

Cash: 3a 3,942,276,626 3,094,050,159

In Hand (Including Foreign Currencies) 3.1a 834,222,834 580,890,853
Balance with Bangladesh Bank and its agent bank (s) 3.2a 3,108,053,792 2,513,159,306
(including foreign currencies)

Balance with other Banks and Financial Institutions including Foreign Currency 4a 1,559,463,234 4,005,293,035
In Bangladesh 4.1a 1,233,350,895 3,892,753,886
Outside Bangladesh 4.2a 326,112,339 112,539,149

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Money at Call and Short Notice 5a - -

Investments 6a 6,864,132,102 7,527,581,121

Government 6.1a 4,903,782,230 5,253,705,492
Others .c 6.2a 1,960,349,872 2,273,875,629

Loans and Advances 7a 43,000,279,756 37,408,284,100

Loans, Cash credits, Overdrafts etc. 7.2a 41,561,085,933 36,213,867,247
Bills purchased and discounted 8a 1,439,193,823 1,194,416,854
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Fixed Assets including Premises, Furniture and Fixtures 9a 487,228,251 560,097,478
Other assets 10a 1,675,974,829 1,023,795,024
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Non - Banking assets - -

Total Assets 57,529,354,798 53,619,100,916
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LIABILITIES AND CAPITAL

Liabilities
Borrowings from other Banks, Financial Institutions and Agents 11a 1,280,722,753 763,427,007

Deposits and other accounts 12a 45,236,437,765 44,143,280,310

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Current accounts and other accounts, etc. 3,025,895,614 2,516,739,883

Bills payable 1,879,550,103 2,754,668,268
Savings Bank deposits 2,892,102,268 2,334,369,949
Special Notice deposits 4,496,981,279 3,292,672,551
Fixed Deposits 20,466,604,558 23,807,188,850
Other Deposits 12,475,303,942 9,437,640,810

Other Liabilities 13a 4,601,397,219 2,983,657,684

Total Liabilities : 51,118,557,736 47,890,365,001

Equity attributable to Shareholders’ of the Parent Company 6,368,457,513 5,688,061,302

Paid -up capital 14 4,900,001,460 4,579,440,770
Statutory reserve 15 737,865,685 462,771,400
Revaluation reserve 16a 82,723 17,988,187
Retained earnings 17a 730,507,645 627,860,945
Non-Controlling Interest 17b 42,339,549 40,674,612
Total Equity 6,410,797,062 5,728,735,915

Total Liabilities and Shareholders’ Equity 57,529,354,798 53,619,100,916

124 NRB Commercial Bank Limited

 NRB Commercial Bank Limited & Its Subsidiary

Independent Auditors’ Report To The Shareholders

Consolidated Balance Sheet
As at 31 December 2017
At Dec 31, 2017 At Dec 31, 2016
Particulars Notes
Taka Taka

OFF - BALANCE SHEET EXPOSURES

Contingent liabilities 18 16,591,431,161 12,934,947,050

Acceptances and endorsements 4,576,326,503 4,606,856,139
Letter of guarantee 3,252,602,767 2,509,275,340
Irrevocable letters of credit 5,383,383,733 3,197,789,274
Bills accepted for collection 3,379,118,158 2,621,026,297
Other contingent liabilities - -

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Other commitments
Documentary credits and transaction regarding short term - -
trade -related business
Forward assets purchased and forward deposits placed - -
Undrawn note Issuance and revolving underwriting facilities - -
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Undrawn formal standby facilities , credit lines and other commitments - -
Liabilities against forward purchase and sale - -
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Total Off-Balance Sheet exposures including contingent liabilities 16,591,431,161 12,934,947,050
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Other memorandum items

Value of Travellers cheques - -
Value of savings certificates (Sanchaya patra) & Wage Earners Bonds 210,200,000 1,049,950,000
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These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)
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Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director (CC) Director, BoD Director, BoD Chairman, BoD
Signed as per annexed report on even date

Hoque Bhattacharjee Das & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants

Place: Dhaka
Dated: 28 March 2018

125
 Annual Report 2017

NRB Commercial Bank Limited & Its Subsidiary

Consolidated Profit and Loss Account
For the year ended at 31 December 2017
2017 2016
Particulars Notes
Taka Taka

OPERATING INCOME
Interest income 20a 4,717,816,839 3,905,390,379
Less: Interest paid on deposits and borrowings, etc. 21a 3,146,943,116 2,868,142,089
Net interest income 1,570,873,723 1,037,248,290

Investment income 22a 1,259,203,953 1,488,939,506

Commission, exchange and brokerage 23a 547,743,237 345,265,990
Other operating income 24a 148,028,513 140,405,345
Total operating Income (A) 3,525,849,426 3,011,859,131
OPERATING EXPENSES
Salary and allowances 25a 783,378,258 691,940,880

om
Rent, taxes, insurance, electricity, etc. 26a 261,340,334 227,362,958
Legal expenses 27a 7,849,498 7,651,029
Postage, stamps, telecommunication, etc. 28a 24,688,610 23,537,437
Stationery, printing, advertisement, etc. 29a 49,838,048 33,256,008
Chief Executive's salary and Allowance 30 13,849,758 12,905,644
Directors' fees & meeting expenses 31a 19,809,539 10,961,671
Auditors' fees
.c 32a 395,000 304,750
Charges on loan losses 33 - -
Depreciation and repairs of Bank's assets 34a 190,570,688 156,459,786
d
Other expenses 35a 332,208,169 309,955,466
Total Operating expenses (B) 1,683,927,903 1,474,335,630
1,841,921,522 1,537,523,501
ab

Profit before provision (C = A-B)

Provision against Loans and Advances 36a 404,388,285 186,794,042
Provision for diminution in value of investments 37a 3,146,052 -
Other provisions 38a 36,564,842 42,831,926
Total provision (D) 444,099,179 229,625,968
nk

Profit before taxation (C-D) 1,397,822,344 1,307,897,533

Provision for taxation 39a 468,883,529 438,865,563
Current tax 39b 652,398,841 460,358,812
Deferred tax 40a (183,515,311) (21,493,249)
Net profit after taxation 928,938,814 869,031,970
la

Appropriations:
Statutory reserve 275,094,285 259,549,535
General reserve - -
Retained earnings carried forward 653,844,530 609,482,434
Non-Controlling Interest 1,664,937 767,967
Net Profit attributable to the Share Holder of Parent Company 927,273,878 868,264,003
Earnings Per Share (EPS) 41a 1.89 1.90
These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director (CC) Director, BoD Director, BoD Chairman, BoD
Signed as per annexed report on even date

Hoque Bhattacharjee Das & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants
Place: Dhaka
Dated: 28 March 2018

126 NRB Commercial Bank Limited

 NRB Commercial Bank Limited & Its Subsidiary

Independent Auditors’ Report To The Shareholders

Consolidated Statement of Cash Flows
For the year ended at 31 December 2017
At Dec 31, 2017 At Dec 31, 2016
Particulars Notes
Taka Taka
A. Cash flows from operating activities
Interest receipts in cash 4,733,184,280 3,894,094,632
Interest paid in cash (3,042,952,221) (2,972,348,421)
Dividend receipts 31,063,565 22,575,129
Fee and commission receipts in cash 555,243,838 346,074,348
Recoveries on loans previously written off - -
Payments to employees (825,251,474) (693,973,859)
Payments to suppliers (54,924,319) (35,151,416)
Income taxes paid (504,859,083) (229,333,598)
Receipts from other operating activities 42a 1,368,607,511 1,592,940,222
Payments for other operating activities 43a (733,410,333) (525,262,672)
Operating profit before changes in operating assets & liabilities 1,526,701,765 1,399,614,366
Increase/decrease in operating assets and liabilities
Sale/(Purchase) of Trading Security - -

om
Loans and advances to Other Bank(s) - -
Loans and advances to customers (5,545,803,575) (14,147,143,457)
Other assets 44a 27,212,376 12,721,148
Deposits from other bank(s) (550,000,000) 3,000,000,000
Deposits from customers 1,613,102,802 12,262,596,612
Trading liabilities (short-term borrowings) - -
Other liabilities 45a 473,853,065 474,556,209
Net increase/(decrease) in operating liabilities
Net cash from operating activities (A)
.c (3,981,635,332)
(2,454,933,568)
1,602,730,512
3,002,344,879
B. Cash flows from investing activities
d
(Purchase)/ sale of government securities 46 332,364,897 (1,142,200,661)
(Purchase)/sale of Non-trading Security 308,000,000 119,000,000
(Purcahse)/Sale of Share/Securities 5,525,757 (45,477,470)
ab

(Purchase)/ sale of property, plant and equipment (76,536,863) (218,521,232)

Net cash from/(used) in investing activities(B) 569,353,791 (1,287,199,364)
C. Cash flows from financing activities
Borrowing from other Bank(s)/ Bangladesh Bank 517,295,746 336,525,276
Increase/(decrease) in long-term borrowings/ Loan Capital & Debt Capital - -
Receipt from issue of Ordinary Shares (164) -
nk

Receipt from issue of Ordinary Shares of Subsidiary's Minority Group - -

Dividend paid (228,972,039) (266,763,540)
Net cash from/(used) in financing activities (C) 288,323,544 69,761,736
D. Net increase/(decrease) in cash and cash equivalents (A+B+C) (1,597,256,233) 1,784,907,251
E. Effects of exchange rate changes on cash and cash equivalents - -
la

F. Cash and cash equivalents at the beginning of the year 7,100,018,893 5,315,111,642
Cash and cash equivalents at the end of the year [D+E+F]* 5,502,762,660 7,100,018,893

* Cash and cash equivalents at the end of the year:

Cash 3.1a 834,222,834 580,890,853
Prize Bonds 6.1 1,022,800 675,700
Money at call and on short notice 5a - -
Reverse Repo - -
Balance with Bangladesh Bank and its agent bank(s) 3.2a 3,108,053,792 2,513,159,306
Balance with other banks and financial institutions 4a 1,559,463,234 4,005,293,035
5,502,762,660 7,100,018,894
Net Operating Cash Flow Per Share (NOCFPS) (5.01) 6.56

These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director (CC) Director, BoD Director, BoD Chairman, BoD
Signed as per annexed report on even date

Place: Dhaka
Dated: 28 March 2018

127
128
NRB Commercial Bank Limited & Its Subsidiary
Consolidated Statement of Changes in Equity
For the year ended at 31 December 2017
Reserve for Reserve for
Foreign
Assets amortization revaluation Non-
Statutory General Currency Retained
Particulars Paid-up capital revaluation of treasury of treasury Controling Total
reserve reserve translation earnings
Annual Report 2017

reserve securities securities Interest

Gain/(loss)
(HTM) (HFT)

Balance at 01 January 2017 4,579,440,770 462,771,400

la - - - 50,617 17,937,571 40,674,612 627,860,944 5,728,735,914

NRB Commercial Bank Limited

Adjustment: - - - - - - - - - -
i. 5 % Cash Dividend for 2016 - - - - - - - - (228,972,039) (228,972,039)
ii. 7% Stock Dividend for 2016 320,560,690 - - - - - - - (320,560,690) -
iii. Payment of the Fraction of share to (164) (164)
shareholder
nk
Opening Balance after adjustments 4,900,001,460 462,771,400 - - - 50,617 17,937,571 40,674,612 78,328,052 5,499,763,712

Effects of changes in accounting policy - - - - - - - - - -

Changes in Non-Controlling Interest - - - - - - - 1,664,936 - 1,664,936
ab
Net profit after taxation for the year - - - - - - - - 927,273,878 927,273,878
Transfer to statutory reserve - 275,094,285 - - - - - - (275,094,285) -
Transfer General Reserve to Retained Earnings
Reserve for HFT Treasury securities
-
-
-
-
d -
-
-
-
-
-
-
-
-
(17,937,571)
-
-
-
-
-
(17,937,571)
Reserve for HTM securities - - - - - 32,106 - - - 32,106
Currency translation difference - - - -
.c - - - - - -
Balance at 31 December 2017 4,900,001,460 737,865,685 - - - 82,723 - 42,339,549 730,507,645 6,410,797,061

Balance at 31 December 2016 4,579,440,770 462,771,400 - - - 50,617 17,937,571 40,674,612 627,860,944 5,728,735,914
om
These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director (CC) Director, BoD Director, BoD Chairman, BoD
Signed as per annexed report on even date
Place: Dhaka
Dated: 28 March 2018
 NRB Commercial Bank Limited

Independent Auditors’ Report To The Shareholders

Balance Sheet
As at 31 December 2017

At Dec 31, 2017 At Dec 31, 2016

Particulars Notes
Taka Taka

PROPERTY AND ASSETS

Cash: 3 3,942,274,730 3,094,026,283
In Hand (Including Foreign Currencies) 3.1 834,220,938 580,866,977
Balance with Bangladesh Bank and its agent bank (s) 3.2 3,108,053,792 2,513,159,306
(including foreign currencies)
Balance with other banks and financial institutions including Foreign Currency 4 1,550,032,532 4,040,675,199
In Bangladesh 1,223,920,193 3,928,136,050
Outside Bangladesh 326,112,339 112,539,149

om
Money at call and short notice 5 - -
Investments 6 6,495,123,607 7,174,157,121
Government 4,903,782,230 5,253,705,492
Others 1,591,341,377 1,920,451,629
.c
Loans and advances 7 42,960,513,008 37,407,920,051
Loans, cash credits, overdrafts etc. 7.2 41,521,319,185 36,213,503,198
d
Bills purchased and discounted 8 1,439,193,823 1,194,416,854
Fixed assets including Premises, Furniture and Fixtures 9 477,921,127 554,875,222
ab

Other assets 10 2,017,287,539 1,344,618,132

Non - Banking assets - -

nk

Total assets 57,443,152,543 53,616,272,008

LIABILITIES AND CAPITAL
Liabilities
la

Borrowings from other Banks, Financial Institutions and Agents 11 1,280,722,753 763,427,007

Deposits and other accounts 12 45,226,596,236 44,218,692,884

Current accounts and other accounts, etc. 3,025,895,614 2,516,739,883
Bills payable 1,879,550,103 2,754,668,268
Savings bank deposits 2,892,102,268 2,334,369,949
Special notice deposits 4,487,139,751 3,368,085,124
Fixed deposits 20,466,604,558 23,807,188,850
Other deposits 12,475,303,942 9,437,640,810

Other Liabilities 13 4,588,431,981 2,952,162,327

Total Liabilities : 51,095,750,970 47,934,282,218

Total Shareholders' Equity/Capital 6,347,401,573 5,681,989,791

Paid -up capital 14 4,900,001,460 4,579,440,770
Statutory reserve 15 737,865,685 462,771,400
Revaluation reserve 16 82,723 17,988,187
Retained earnings 17 709,451,705 621,789,433

Total Liabilities and Shareholders' Equity 57,443,152,543 53,616,272,008

129
 Annual Report 2017

NRB Commercial Bank Limited

Balance Sheet
As at 31 December 2017

At Dec 31, 2017 At Dec 31, 2016

Particulars Notes
Taka Taka

OFF - BALANCE SHEET EXPOSURES

Contingent liabilities 18 16,591,431,161 12,934,947,050

Acceptances and endorsements 4,576,326,503 4,606,856,139
Letter of guarantee 3,252,602,767 2,509,275,340
Irrevocable letters of credit 5,383,383,733 3,197,789,274
Bills accepted for collection 3,379,118,158 2,621,026,297

Other commitments

om
Documentary credits and transaction regarding short
term trade -related business - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities , credit lines and other
Commitments
Liabilities against forward purchase and sale
.c -
-
-
-

Total Off-Balance Sheet exposures including contingent liabilities 16,591,431,161 12,934,947,050

d
Other Memorandum items
ab

Value of travellers cheques - -

Value of Govt Instruments & Wage Earners Bonds 210,200,000 1,049,950,000

These Financial Statements should be read in conjunction with annexed notes (1 to 49)
nk
la

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director (CC) Director, BoD Director, BoD Chairman, BoD
Signed as per annexed report on even date

Hoque Bhattacharjee Das & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants

Place: Dhaka
Dated: 28 March 2018

130 NRB Commercial Bank Limited

 NRB Commercial Bank Limited

Independent Auditors’ Report To The Shareholders

Profit and Loss Account
For the year ended at 31 December 2017
2017 2016
Particulars Notes
Taka Taka
OPERATING INCOME
Interest income 20 4,712,898,016 3,905,356,585
Less: Interest paid on deposits and borrowings, etc. 21 3,147,979,977 2,875,955,085
Net interest income 1,564,918,039 1,029,401,500

Investment income 22 1,236,357,571 1,481,724,400

Commission, exchange and brokerage 23 531,244,820 345,181,715
Other operating income 24 147,298,637 140,382,780
Total operating income (A) 3,479,819,068 2,996,690,395
OPERATING EXPENSES
Salary and allowances 25 769,553,663 688,436,422

om
Rent, taxes, insurance, electricity, etc. 26 255,397,600 226,346,767
Legal expenses 27 7,783,558 7,570,693
Postage, stamps, telecommunication, etc. 28 23,934,854 23,441,285
Stationery, printing, advertisement, etc. 29 48,697,897 33,098,182
Chief Executive's salary and Allowance 30 13,849,758 12,905,644
Directors' fees & meeting expenses 31 19,405,389 10,734,502
Auditors' fees
.c 32 345,000 287,500
Charges on loan losses 33 - -
Depreciation and repairs of Bank's assets 34 188,588,771 155,854,515
d
Other expenses 35 338,433,302 310,641,240
Total operating expenses (B) 1,665,989,793 1,469,316,751
ab

Profit before provision (C = A-B) 1,813,829,275 1,527,373,644

Provision against loans and advances 36 404,388,285 186,794,042
Provision for diminution in value of investments 37 (2,595,275) -
Other provisions 38 36,564,842 42,831,926
Total provision (D) 438,357,851 229,625,968
nk

Profit before taxation (C-D) 1,375,471,424 1,297,747,677

Provision for taxation 463,181,974 436,395,379
Current tax 39 646,882,155 458,256,297
Deferred tax 40 (183,700,181) (21,860,918)
la

Net profit after taxation 912,289,449 861,352,297

Appropriations
Statutory reserve 275,094,285 259,549,535
General reserve - -
Retained earnings carried forward 637,195,165 601,802,762
Net Profit attributable to the Share Holder 912,289,449 861,352,297
Earnings Per Share (EPS) 41 1.86 1.88
These Financial Statements should be read in conjunction with annexed notes (1 to 49)

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director(CC) Director, BoD Director, BoD Chairman, BoD
Signed as per annexed report on even date

Hoque Bhattacharjee Das & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants
Place: Dhaka
Dated: 28 March 2018

131
 Annual Report 2017

NRB Commercial Bank Limited

Statement of Cash Flows
For the year ended at 31 December 2017
Notes At Dec 31, 2017 At Dec 31, 2016
Particulars
Taka Taka
A. Cash flows from Operating Activities
Interest receipts in cash 4,728,265,457 3,894,060,838
Interest paid in cash (3,043,989,081) (2,980,161,417)
Dividend receipts 23,382,226 15,360,023
Fee and commission receipts in cash 531,244,820 345,181,715
Recoveries on loans previously written off - -
Payments to employees (811,311,029) (690,585,251)
Payments to suppliers (47,343,197) (34,190,178)
Income taxes paid (497,639,035) (226,999,798)
Receipts from other operating activities 42 1,352,693,168 1,592,873,899
Payments for other operating activities 43 (730,988,632) (524,816,251)
Operating profit before changes in operating Assets & Liabilities 1,504,314,696 1,390,723,582

om
Increase/decrease in Operating Assets and Liabilities
Sale/(Purcahse) of Trading Security - -
Loans and advances to Other Bank(s) - -
Loans and advances to customers (5,506,400,876) (14,146,779,408)
Other assets 44 (1,025,513) 50,877,477
Deposits from other bank(s) (550,000,000) 3,000,000,000
Deposits from customers 1,557,903,352 12,224,138,781
Trading liabilities (short-term borrowings)
.c - -
Other liabilities 45 473,853,065 444,491,209
Net increase/(decrease) in Operating liabilities (4,025,669,971) 1,572,728,058
d
Net cash from operating activities (A) (2,521,355,275) 2,963,451,640
B. Cash flows from investing activities
(Purchase)/ sale of government securities 46 332,364,897 (1,142,200,661)
ab

(Purchase)/sale of Non-trading securities 308,000,000 119,000,000

(Purcahse)/Sale of Share/Securities 21,110,252 22,946,530
(Purchase)/ sale of property, plant and equipment (70,490,538) (212,693,705)
Net cash from/(used) in Investing Activities(B) 590,984,612 (1,212,947,837)
C. Cash flows from financing activities
nk

Borrowing from other Bank(s)/ Bangladesh Bank 517,295,746 336,525,276

Increase/(decrease) in long-term borrowings/ Loan Capital & Debt Capital - -
Receipt from issue of Ordinary Shares/Disbursement of Fraction Share (164) -
Dividend paid for 2016 (228,972,039) (266,763,540)
la

Net cash from/(used) in financing activities (C) 288,323,544 69,761,736

D.Net increase/(decrease) in cash and cash equivalents (A+B+C) (1,642,047,120) 1,820,265,539
E. Effects of exchange rate changes on cash and cash equivalents - -
F. Cash and cash equivalents at the beginning of the year 7,135,377,182 5,315,111,642
Cash and cash equivalents at the end of the year [D+E+F]* 5,493,330,062 7,135,377,181
* Cash and cash equivalents at the end of the year:
Cash 3.1 834,220,938 580,866,977
Prize bonds 6.1 1,022,800 675,700
Money at call and on short notice 5 - -
Reverse Repo - -
Balance with Bangladesh Bank and its agent bank(s) 3.2 3,108,053,792 2,513,159,306
Balance with other banks and financial institutions 4 1,550,032,532 4,040,675,199
5,493,330,062 7,135,377,182
Net Operating Cash Flow Per Share (NOCFPS) (5.15) 6.47
These Financial Statements should be read in conjunction with annexed notes (1 to 49)

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director (CC) Director, BoD Director, BoD Chairman, BoD
Place: Dhaka Signed as per annexed report on even date
Dated: 28 March 2018
132 NRB Commercial Bank Limited
 NRB Commercial Bank Limited
Statement of Changes in Equity
For the year ended at 31 December 2017

Reserve for Reserve for

Foreign
Assets amortization revaluation
Paid-up Statutory General Currency Retained
Particulars revaluation of Treasury of Treasury Total
capital reserve reserve translation earnings
reserve securities securities (H
Gain/(loss)
(HTM) FT)
Balance at 01 January 2017 4,579,440,770
la 462,771,400 - - - 50,617 17,937,571 621,789,433 5,681,989,790
Adjusttment:
i. 5 % Cash Dividend for 2016 (228,972,039) (228,972,039)
ii. 7% Stock Dividens for 2016 320,560,690 (320,560,690) -
nk
iii. Payment the fraction of share to share (164) (164)
holder
Opeing Balance after adjustments 4,900,001,460 462,771,400 - - - 50,617 17,937,571 72,256,540 5,453,017,588
ab
Effects of changes in accounting policy -
Net profit after taxation for the year d 912,289,449 912,289,449
Transfer to statutory reserve 275,094,285 (275,094,285) -
Transfer General Reserve to Retained Earnings -
Reserve for HFT treasury securities (17,937,571) (17,937,571)
.c
Reserve for HTM securities 32,106 32,106
Currency translation difference -
Balance at 31 December 2017 4,900,001,460 737,865,685 - - - 82,723 - 709,451,705 6,347,401,572
om
Balance at 31 December 2016 4,579,440,770 462,771,400 - - - 50,617 17,937,571 621,789,433 5,681,989,790

These Financial Statements should be read in conjunction with annexed notes (1 to 49)

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director (CC) Director, BoD Director, BoD Chairman, BoD

Independent Auditors’ Report To The Shareholders

133
134
NRB Commercial Bank Limited
Liquidity Statement
Assets and Liability Maturity Analysis
As of 31 December 2017

Maturity Analysis
Particulars Up to 1 month’s 1-3 months’ 3-12 months’ 1-5 years’ Above 5 years’ Total
Annual Report 2017

Maturity Maturity Maturity Maturity Maturity

Assets
Cash in hand 834,220,938 - - - - 834,220,938
227,932,042 - - - 2,880,121,750 3,108,053,792
Balance with Bangladesh Bank and its agent bank (Lcy+Fcy)
la

NRB Commercial Bank Limited

Balance with other banks and financial institutions 681,022,293 486,532,211 378,607,946 3,870,081 - 1,550,032,532
Money at call and on Short Notice - - - - - -
Investments - - 551,635,443 3,519,779,019 2,423,709,144 6,495,123,607
nk
Loans and advances 7,905,463,135 7,368,394,855 15,629,220,940 7,286,626,065 4,770,808,013 42,960,513,008
Fixed assets including Premises, Furniture and Fxtures - - - - 477,921,127 477,921,127
Other assets 341,895,153 279,010,070 619,652,562 392,949,346 383,780,409 2,017,287,539
- - - - - -
ab
Non-banking assets
Total Assets (A) d 9,990,533,561 8,133,937,136 17,179,116,891 11,203,224,511 10,936,340,443 57,443,152,542
Liabilities
Borrowings from Bangladesh Bank, other Banks, Financial Institutions and agents (950,000,000) - (330,722,753) - - (1,280,722,753)
Deposits and other accounts (9,619,557,718) (10,477,356,296) (12,821,661,391) (9,433,155,101) (2,874,865,731) (45,226,596,236)
Provisions and other liabilities (318,330,022)
.c
(719,541,591) (1,728,177,561) (1,785,028,735) (37,354,073) (4,588,431981)
Total Liabilities (B) (10,887,887,740) (11,196,897,887) (14,880,561,705) (11,218183,835) (2,912,219,803) (51,095,750,970)
Net Liquidity Gap-Excess/(Shortage) (A-B) (897,354,179) (3,062,960,751) 2,298,555,187 (14,959,324) 8,024,120.639 6,347,401,573
om
These Financial Statements should be read in conjunction with annexed notes (1 to 49)

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director(CC) Director, BoD Director, BoD Chairman, BoD

Place: Dhaka
Dated:28 March 2018
 NRB Commercial Bank Limited & Its Subsidiary

Independent Auditors’ Report To The Shareholders

Explanatory Notes to the Financial Statements
For the year ended December 31, 2017

1 Legal Status of the Bank and its principal activities

NRB Commercial Bank Limited (NRBC Bank) having its Registered Office at 114 Motijheel Commercial
Area, Dhaka-1000, Bangladesh, was incorporated (Inc no. C-107535) on February 20, 2013 as a Public
Limited Company under the Companies Act, 1994 (Act No.18 of 1994) and also is governed by the Banking
Companies Act 1991 (Amendment upto 2018) with Authorized Capital of Tk.10000 million and having
strong capital base of Tk.4446,06 million (Paid up Capital) by converting the hard earned foreign currency
of 53 (Fifty three) qualified NRBs including business persons, community leaders, scientists, educationists,
living in across the globe which includes USA, Canada, UK, Russia, Italy, Germany, UAE and Kuwait.

NRBC Bank started its journey from 2 April 2013 after getting permission vide memo No. BRPD (P-3)/745(60)/2013-
1189 dated 10 March 2013 as a scheduled Bank. Presently NRBC Bank has 61 Branches in rural and urban areas

om
of Bangladesh and, recently, Bank also formed a subsidiary company named M/s. NRBC Bank Securities Limited.

NRBC Bank Securities Limited was formed as subsidiary company after getting approval from Bangladesh
Bank following guidelines of the Bangladesh Securities and Exchange Commission (BSEC). It incorporated
as a company on 20th September 2015 bearing certificate of incorporation no. C-125904/2015 under the
.c
Companies Act 1994. The subsidiary company resumed its Commercial operation on December 12, 2016.

"The Bank through its Branches and non-banking subsidiary provides a diversified range of financial services
d
and products in Bangladesh. The Bank has also expanded its capital market operation to cater brokerage
business in the stock market in Bangladesh.
ab

2 Basis of preparation of the Consolidated financial statements and Significant accounting policies

Consolidated financial statements and separate financial statements of the Bank comprise of Balance
nk

Sheet, Profit and Loss Account, Cash Flow Statement, Statement of Changes in Equity, Liquidity Statement
and relevant notes and disclosures.

The Consolidated Financial statements of the Bank as at 31 December 2017 have been prepared under the
la

Historical cost convention except investments in Govt. securities under the categorey of held fot Trading
(HFT), and in accordance with Bangladesh Financial Reporting Standards (BFRS), the "First Schedule"
(section-38) of the Banking Companies Act 1991, as amended by BRPD circular no. 14 dated 25 June 2003,
the rules and regulations issued by Bangladesh Bank, the Companies Act 1994, the Securities and Exchange
Ordinance 1969, Securities and Exchange Rules 1987 and other laws and rules applicable for the Bank.

Consolidated financial statements and financial statements of the Bank have been prepared in accordance
with the measurement and recognition requirements of International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS) as adopted by the Institute of Chartered Accountants of
Bangladesh as Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS).

2.1 Basis of consolidation

Separate set of records for consolidating the financial statements of the Branches including NRBC Bank
Securities Limited are maintained at the Head Office of the Bank, based on which these financial statements
have been prepared. The consolidated financial statements have been prepared in accordance with the
BFRS 10 “Consolidated Financial Statements”. The Consolidated Financial Statements have been prepared
to a common reporting period ended on 31 December 2017.

135
 Annual Report 2017

2.2 Statement of compliance:

The basis of preparation of Financial statements of the Bank differ with those of BFRS and, therefore, the
requirements of the Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bank
shall prevail.

As such Bank has departed from those contradictory requirements of BFRS in order to comply with rules
and regulations of Bangladesh Bank which are disclosed below:

i. Investment in shares and securities

BFRS: 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.

om
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; otherwise investments are recognized at cost.
.c
ii. Revaluation gains/losses on Government securities

BFRS: As per requirement of BAS 39, T-bills and T-bonds fall under the category of "Held for Trading
d
(HFT)". Any change in the fair value of held for trading assets is recognized through profit and loss
account. Securities designated as "Held to Maturity (HTM)" are measured at amortised cost method
ab

and interest income is recognized through the profit and loss account.

Bangladesh Bank: HFT securities are revalued on the basis of mark 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
nk

other reserves 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 amortisation of discount are recognized in the profit and loss account.
la

HTM securities which have not matured as at the balance sheet date are amortised at the year end
and gains or losses on amortisation are recognized in other reserve as a part of equity.

iii. Provision on loans and advances/investments

BFRS: 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
that 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 and BRPD circular no. 05 dated 29 May 2013 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 the
duration of overdue. 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.

136 NRB Commercial Bank Limited

iv. Other comprehensive income

Independent Auditors’ Report To The Shareholders

BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the
elements of OCI are to be included in a single Other Comprehensive Income statement.

Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which are strictly
to 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 be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank does not
prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in
the statements of changes in equity.

v. Financial instruments – presentation and disclosure

In several cases Bangladesh Bank guidelines categorize, recognise, measure and present financial
instruments different from those prescribed in BAS 39. As such full disclosure and presentation
requirements of BFRS 7 and BAS 32 cannot be made in the financial statements.

om
vi. Financial guarantees

BFRS: As per BAS 39, financial guarantees are contracts which 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
.c
recognized initially at their fair value, and the initial fair value is amortised over the life of the financial
guarantee. The financial guarantee liability is subsequently carried at the higher of this amortised
amount and the present value of any expected payment when a payment under the guarantee has
d
become probable. Financial guarantees are included within other liabilities.
ab

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, financial guarantees such as letter
of credit, letter of guarantee are to be treated as off-balance sheet items. No liability is recognized for
the guarantee except the cash margin.
nk

vii. Cash and cash equivalents

BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 7.
la

Bangladesh Bank: Some cash and cash equivalent items such as ‘money at call and on short notice’,
treasury bills, Bangladesh Bank bills and prize bonds are not prescribed to be shown as cash and cash
equivalents. Money at call and on short notice are presented on the face of the balance sheet, and
treasury bills, prize bonds are shown in investments. However, in the cash flow statement, money at
call and on short notice and prize bonds are shown as cash and cash equivalents besides cash in hand,
Balance with BB and other banks.

viii. Non-banking asset

BFRS: No indication of Non-banking asset is found in any BFRS.

Bangladesh Bank: As per BRPD circular no. 14, there must exist a face item named Non-banking asset.

ix. Cash flow statement

BFRS: The Cash flow statement can be prepared using either the direct method or the 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 flow is the mixture of direct
and indirect methods.

137
 Annual Report 2017

x. Balance with Bangladesh Bank: (Cash Reserve Requirement)

BFRS: Balance with Bangladesh Bank should be treated as other assets 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.

xi. Presentation of intangible asset

BFRS: An intangible asset must be identified and recognized, and the disclosure must be given as per
BAS 38.

Bangladesh Bank: There is no regulation for intangible assets in BRPD circular no. 14 dated 25 June
2003.

xii. Off-balance sheet items

om
BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for
disclosure of off-balance sheet items on the face of the balance sheet.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, off balance sheet items (e.g. Letter
.c
of credit, Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
d
xiii. Disclosure of appropriation of profit
ab

BFRS: 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 on the face of Profit and Loss Account.
nk

xiv. Loans and Advances/Investments net of provision

la

BFRS: Loans and advances/Investments should be presented net of provision.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, provision on loans and advances/
investments are presented separately as liability and can not be netted off against loans and advances.

Also refer to the Note 2.18 Compliance of Bangladesh Accounting Standards (BASs) and Bangladesh
Financial Reporting Standards (BFRSs)

2.3 Functional and Presentational Currency

Financial statements of the Bank have been presented in Taka, which is the Bank’s functional and
presentational currency.

2.4 Materiality, Aggregation and Offsetting

The Bank aggregates each material class of similar items and separately which are dissimilar in nature or
function unless those are immaterial. The Bank did not offset assets and liabilities or income and expense,
unless required or permitted by BAS/ BFRS.

138 NRB Commercial Bank Limited

2.5 Basis of measurement

Independent Auditors’ Report To The Shareholders

The financial statements have been prepared on the historical cost basis except for the following material items:

- Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present value using mark
to market concept with gain credited to revaluation reserve but loss charged to Profit and Loss Account.
- Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ at present value using
amortization concept.
- Investment in Share and Securities under quoted are valued at market price
- Zero Coupon Bond at present value using amortization concept.

2.6 Use of Estimates and Judgments

The preparation of financial statements of the Bank required for management to make judgments, estimates
and assumptions that affected the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.

om
Estimates and underlying assumptions have been reviewed ongoing basis. Revisions of accounting estimates
have been recognized in the period in which the estimates have been revised and in the future periods
affected, if applicable. .c
Key estimates includes the following:
- Loan loss provision
d
- Deferred Tax Assets/Liabilities
- Gratuity
ab

- Provision for other operating expenses

2.7 Foreign Currency Transactions

nk

Foreign Currency Translation

Foreign currency transactions have been converted into equivalent Taka currency at the ruling exchange
rates on the respective date of such transactions as per BAS 21 “The Effects of Changes in Foreign Exchange
la

Rates” and “Balances with other Banks and Financial institutions” have been converted as per directives of
Bangladesh Bank vide circular no. BRPD (R) 717/2004-959 dated 21 November 2004.

Differences arising through buying and selling transactions of foreign currencies on different dates of the
year have been adjusted by debiting /crediting exchange gain or loss account.

Translation Gain and Losses

Gains or losses arising out of translation of foreign exchange have been included in the Profit and Loss
account.

2.8 Cash Flow Statement

Cash Flow Statement is prepared principally in accordance with BAS 7 “Cash Flow Statement” under direct
method as per the guidelines of BRPD circular no.14 dated 25 June 2003. The Cash Flow Statement shows
the structure of and Changes in Cash and Cash equivalents during the year. Cash flows during the period
have been classified as operating activities, investing activities and financing activities.

139
 Annual Report 2017

2.9 Statement of Changes in Equity

Statement of Changes in Equity has been prepared in accordance with BAS 1 “Presentation of Financial
Statements” and following the guidelines of Bangladesh Bank BRPD circular no.14 dated 25th June 2003.

2.10 Liquidity Statement

The liquidity statement has been prepared in accordance with remaining maturity grouping of Assets and
Liabilities as at the close of the year as per following basis:

Particulars Basis of use

Cash, Balance with other banks and financial Maturity/behavioral trend.
institutions, money at call and short notice etc.
Investments Residual maturity term.
Loans and advances Repayment/maturity schedule and behavioral trend
(non-maturity products).
Fixed assets Useful life.

om
Other assets Realization/amortization basis.
Borrowing from other banks, financial Maturity/ repayment terms.
institutions and agents
Deposits and others accounts Maturity and behavioral trend (non-maturity products).
Other long term liability
.c
Maturity term.
Provisions and Other liabilities Settlement/adjustment schedule basis.
d
2.11 Significant Accounting Policies
ab

The accounting policies set out below have been applied consistently to all periods presented in these
financial statements, and have been applied consistently except otherwise instructed by the Central Bank
as prime regulator Certain comparative amounts in the financial statements have been reclassified and
rearranged to conform to the current year’s presentation.
nk

A Assets and basis of their valuation

i. Cash and cash equivalents

la

Cash and cash equivalents include notes and coins in hand and at ATM, unrestricted balances held with
Bangladesh Bank and its agent bank, balance with other banks and financial institutions, money at call and
on short notice and prize bond which are not ordinarily susceptible to change in value.

Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts
of cash and which are subjected to an insignificant risk of changes in value.

ii. Investments
Investments have been initially recognized at cost, including acquisition charges associated with the
investment. Government Treasury Bills and Bonds (categorized as HFT or/and HTM) are accounted for as
per Bangladesh Bank DOS circular letter no. 05 dated 26th May, 2008 and DOS circular no. 05 dated 28th
January, 2009.
The Valuation Methods of Investment:

Held to Maturity (HTM)

Investments which are intended to be held till maturity are classified as “Held to Maturity”. These are
measured at amortized cost at each year end by taking into account any discount or premium on acquisition.
Premiums are amortized and discounted/ accredited, using the effective or historical yield method. Any
increase or decrease in value of such investments is booked to equity.

140 NRB Commercial Bank Limited

Held for Trading (HFT)

Independent Auditors’ Report To The Shareholders

These are investments primarily held for selling or trading. After initial recognition, investments are revalued
on the basis of `Mark to Market’ in every week and any decrease in the present value is recognized in
the Profit and Loss Account & increase is booked to Revaluation Reserve Account through Profit and Loss
Account as per Bangladesh Bank DOS Circular no. 05 dated 28 January 2009.

REPO and Reverse REPO

REPO and Reverse REPO are recorded based on DOS Circular no. 06, dated 15 July 2010 of Bangladesh Bank.
In the case of REPO of both coupon and non-coupon bearing (Treasury bill) securities, the Bank adjusts the
Revaluation Reserve Account for HFT securities and stops the weekly revaluation (if the revaluation date
falls within the REPO period) of the same security. For interest bearing security, the Bank does not accrue
interest during REPO period.
Investments – Initial recognition and subsequent measurement at a glance are as follows:

Initial Measurement after

Investment class Recording of changes

om
recognition initial recognition
Treasury Bill / Bond (HFT) Cost Fair value Loss to Profit and Loss Account, gain to
Revaluation Reserve through Profit and
Loss Account.
Treasury Bill / Bond (HTM) Cost Amortised value Increase or decrease in value to equity.
Debenture/Bond Face value
.c
None None
Shares (Quoted) * Cost Cost or market value Loss (net) to Profit and Loss Account but
(Which is less) no unrealised gain accounted.
d
Prize Bond Cost None None
* Provision has been made on unrealized loss (gain net off) according to DOS Circular no. 4 dated 24
ab

November 2011.

iii. Loans, Advances and their Provision

nk

- Loans and advances are stated at gross amounts at 31 December 2017

- Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest
on classified loans and advances will be kept in suspense account as per Bangladesh Bank instructions
and such interest is not accounted for as income until realized from borrowers. Interest is not charged
la

on bad and loss loans/ investments as per guideline of Bangladesh Bank.

- Provision for loans and advances is made on the basis of quarter-end review by the management and as
per instructions contained in 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,
BRPD Circular No. 12 dated 20 August 2017 BRPD Circular No. 15 dated 27 September 2017 and BRPD
Cicular No. 01 dated 20 February 2018. The rates for provisions are stated as under:
General Provision Specific Provision
Types of loans and advances
UC SMA SS DF BL
Credit Card Financing 2% 2% 20% 50% 100%
Consumer Housing Finance 1% 1% 20% 50% 100%
Financing Professionals to set up business 2% 2% 20% 50% 100%
Other Consumers Finance 5% 5% 20% 50% 100%
Small & Medium Enterprise Finance (SME) 0.25% 0.25% 20% 50% 100%
Loans to brokerage house/MBs/SDs against Share etc. 5% 5% 20% 50% 100%
Short-term agri-credit and micro credit 1% 5% 5% 100%
All Other Credits 1% 1% 20% 50% 100%
Off Balance Sheet exposures 1%

141
 Annual Report 2017

iv. Property, Plant and Equipment:

Recognition and measurement

All Fixed Assets are stated at cost less accumulated depreciation as per BAS 16 “Property, Plant and Equipment”.
The cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given
to acquire an asset at the time of its acquisition or construction or, where applicable, the amount
attributed to that asset when initially recognized in accordance with the specific requirements of the BFRS.

Property, plant & equipment are recognized if it is probable that future economic benefits associated with
the assets will flow to the Bank and the cost of the assets can be measured reliably :

The cost of an item of Fixed Assets comprises:

- its purchase price, including import duties and non-refundable purchase taxes, after deducting trade

om
discounts and rebates.
- any costs directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management.
- the initial estimate of the costs of dismantling and removing the item and restoring the site on which
it is located
.c
Subsequent costs
d
Subsequent costs are capitalized only when it is probable that the future economic benefits associated with
the costs will flow to the entity and cost can be measured reliably. The carrying amount of the replaced
ab

portion is derecognized. The costs of day to day servicing of fixed assets i.e. repairs and maintenance is
charged to profit and loss account as expense when incurred.

Depreciation
nk

- Depreciation on Fixed Assets is charged on straight-line method irrespective of all assets. The rates of
depreciation are as follows:
la

Category of asset Rate of depreciation

Land Nil
Building and Construction 2.50%
Furniture and Fixtures 10%
Equipment and Machinery 20%
Computer and Computer Equipment 20%
Intangible Assets/Bangladesh Made Computer Software 20%
Professionals and Reference Books 20%
Vehicles 20%
Leasehold Assets - Vehicles 20%

- Depreciation on Fixed Assets acquired during the year is charged from the month of their acquisition.
Full month’s depreciation is charged in the month of addition irrespective of the date of acquisition
and no depreciation is charged in the month of their disposal.
- The cost and accumulated depreciation of disposed assets are eliminated from the Fixed Assets
schedule.

142 NRB Commercial Bank Limited

- Useful life and method of depreciation of Fixed Assets will be reviewed periodically. If useful life of

Independent Auditors’ Report To The Shareholders

assets do not differ significantly as these were previously estimated, revaluation of assets do not
consider.

- Bank also follows a policy for amortization of expenditure considering the durability and useful life
of items. These are treated as intangible assets and are booked under the head “Fixed Assets” and
amortized over their estimated useful life by charging under the broad head “Depreciation”.

Derecognition of Fixed Asset

The carrying amount of an item of fixed assets is derecognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from derecognition of an item of Fixed
Assets is to be recorded in profit or loss when the item is derecognized.

v. Leased Assets

om
Where property, plant and equipment have been financed through lease arrangement under which
substantially all the risks and rewards of ownership are transferred to the lessees are treated as finance
leases as per BAS 17 “Leases”. All other leases are classified as operating leases as per BAS 17 “Leases”

The Bank as Lessor

.c
Amount due from lessees under Finance eases are recorded as receivables at the amount of the Bank’s
net investment in the leases (note-7.3). Finance lease income is allocated to accounting periods so as to
d
reflect a constant periodic rate of return on the Bank’s net investment outstanding in respect of the leases.

The Bank as Lessee

ab

Assets held under Finance Leases are recognized as Assets of the Bank at their fair value at the date of
acquisition or, if lower, at the present value of the minimum lease payments (note-9). The corresponding
liability to the lessor is included in the Balance Sheet as a Finance Lease obligation (note-13). Lease
nk

payments are apportioned between financial charges and reduction of the lease obligation so as to achieve
a constant rate of interest on the remaining balance of the liability. Financial charges are charged directly
against income.
la

Assets held under Finance Leases are depreciated over their expected useful lives on the same basis as
owned assets.

Depreciation of Property, Plant & Equipment for Tax Purpose

The policy of Depreciation for tax purpose is different from accounting depreciation. According to third
schedule of income Tax Ordinance, 1984, Depreciation is application on annual basis whatever it’s purchased
or to become workable condition. Equipment & Machinery in the Assets Managment Software divided
into Computer and Computer Equipment, Bangladesh Made Computer Software and Office Equipment &
Machinery for Accounting & Tax purposes shown in the Annexure - G & H. Differences of deprecation shall
have effect on deferred assets or liabilities.

vi. Intangible Assets

According to BFRS-38, an Intangible Asset is recognized if-

a. it is probable that the expected future economic benefits that are attributable to the assets will flow
to the entity; and
b. the cost of the assets can be measured reliably.

143
 Annual Report 2017

The software used by NRBC Bank represents the value of computer application software licensed for the use of
the Bank. Software is carried out at cost less amortization/depreciation and any impairment losses. Initial cost
comprise licensing fees paid at the time of purchase along with subsequent payment for user license and other
direct attributable expenditure that are carried in customization of software for its intended use. Software is
amortized/depreciated using the straight line method over the estimated useful life of 5 (five) years commencing
from the month at which payment is made in line with third schedule of Income Tax Ordinance-1984.

vii. Impairment of Assets

An asset is impaired when its carrying amount exceeds its recoverable amount as per BAS 36 “Impairment
of Assets”. The Bank assesses at the end of each reporting period whether there is any indication that an
asset may be impaired and/or whenever events or changes in circumstances indicate that the carrying
value of the asset may not be recovered. If any such indication exists, the Bank and the subsidiaries make
an estimate of the recoverable amount of the assets. The carrying amount of the asset is reduced to its
recoverable amount, if the recoverable amount is less than its carrying amount and impairment, losses
are recognized in the profit and loss account. However, impairment of Financial Assets are guided by the
relevant BB circulars/instructions and BAS 39.

om
No such impairment had identified in the financial year 2017 except Loans and Advances which were
measured by relevant Bangladesh Bank Circulars.

viii. Other Assets

.c
Other assets include advance for operating and capital expenditure, stocks of stationary and stamps,
security deposits to government agencies etc. and such accounts may be quite insignificant in the overall
d
financial condition of the Bank.
ab

ix. Non-Banking Assets

There are no assets acquired in exchange for loan during the period of financial statements.
nk

B Liabilities and Provisions

i.Borrowings
la

Borrowings include interest bearings borrowings in the form of call money, Term borrowings and Re-finance
from other Banks, Financial Institutions and Central Bank include interest bearing borrowings which are
stated in the financial statements at principal amount of the outstanding balance. Interest payables on such
borrowings are reported under other liabilities.

ii. Deposits and Other Accounts

Deposits and other accounts include non-interest bearing current deposits redeemable at call, interest
bearing short-term deposits, savings deposits and fixed deposits which are initially measured at the
consideration received. These items are subsequently measured and accounted for at the gross value of
the outstanding balance in accordance with the contractual agreements with the counter parties.

iii. Other liabilities

Other liabilities are comprised of items such as provision for loans and advances/ investments, provision
for taxes, interest payable on borrowing, interest suspense and accrued expenses etc. Individual item-
wise liabilities are recognized as per the guidelines of Bangladesh Bank and Bangladesh Financial Reporting
Standards (BFRS).

144 NRB Commercial Bank Limited

iv. Dividend payments

Independent Auditors’ Report To The Shareholders

Dividend payable is recognized when it is declared by Board of Directors. Final dividend is recognized when it
is approved by the shareholders in AGM. Any dividend yet to propose/confirm for the year 2016, therefore,
it has not been recognized as a liability in the balance sheet in accordance with BAS 10: “Events after the
Reporting Period”. Dividend payable to the Bank’s shareholders is recognized as a liability if it is approved by
the Shareholders in the Annual General Meeting and there upon shareholders’ right to receive the payment
will be established.

v. Provision for Loans and Advances

Provision for unclassified loans and advances is made on the basis of quarter end review as instructions
contained in BRPD Circular no. 14 dated 23 September 2012 and BRPD Circular no. 19 dated 27 December
2012, BRPD circular no. 05 dated 29 May 2013, BRPD Circular No. 16 dated 18 November 2014, BRPD Circular
No. 12 dated 20 August 2017 BRPD Circular No. 15 dated 27 September 2017 and BRPD Cicular No. 01 dated 20
February 2018. Details are stated in Note 13.01 and 13.02.

om
vi. Provision for investment in Capital Market

For recognition of loss suffered from investment in capital market, provision has been made on unrealized
loss (gain net off) according to DOS Circular No. 04 dated 24 November 2011 on portfolio basis.
.c
vii. Provision for Off-balance sheet exposures

In compliance with Bangladesh Bank guidelines, contingent liabilities have been disclosed under off-balance
d
sheet items. As per BRPD Circular no.14 dated 23 September 2012 and related earlier circulars, the bank
has been maintaining provision @ 1% against certain Off-Balance sheet exposures.
ab

viii. Provision for other assets

Provision for other assets is made as per the guidelines mentioned (100% provision is required on other
nk

assets which are outstanding for one year and above) in the BRPD Circular No. 14 dated 25 June 2001.

ix. Provision for nostro account balance.

la

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, provision is to be maintained
for the un-reconciled debit balance of Nostro account more than 3 months as on the reporting date in
these financials.

Since there is no unreconciled entries which are outstanding for more than 3 months, Thereafter no
provision has been made.

x. Provision for liabilities and accrued expenses

A provision is recognized in the balance sheet when the Bank has legal or constructive obligations as a
result of past events and it is probable that an outflow of economic benefit will be required to settle the
obligations, in accordance with BAS 37 “Provision, Contingent Liabilities and Contingent Assets”.

No provision is recognized for any possible obligation that arises from past events and the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Bank, or any present obligation that arises from past events and it is
not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, or a reliable estimates of the amount of obligation cannot be made.

145
 Annual Report 2017

However, certain provisions on Assets and Liabilities are maintained in accordance with relevant Bangladesh
Bank Circulars issued from time to time.
xi. Contingent liabilities

Contingent liabilities which include certain guarantees and letters of credit pledged as collateral are
possible obligations that arise from past events whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not within the control of the Bank. Contingent
liabilities are not recognized in the financial statements as per BAS 37 “Provisions, Contingent Liabilities and
Contingent Assets”. However, disclosure on contingent liabilities have been made on the face of balance
sheet under “Off-balance Sheet Items” as per the guidelines of BRPD Circular No. 14 dated 25 June 2003.

C Share capital and reserves

i. Authorized and Issued capital

The Authorized capital of the Bank is the maximum amount of share capital that the Bank is authorized by

om
its Memorandum and Articles of Association to issue (allocate) among shareholders. Part of the authorized
capital can (and frequently does) remain unissued. This number can be changed by shareholders’ approval
upon fulfillment of related provisions of Companies Act 1994. The part of the authorized capital which has
been issued to shareholders is referred to as the Issued Share Capital of the bank.

restriction of transfer being expired.

d .c
Herewith ordinary shares are classified as equity which is transferable to another person/institution as

ii. Paid-up capital

ab

The paid-up capital represents the amount of bank’s capital that has been contributed by ordinary
shareholders. The holders of ordinary shares are entitled to receive dividend as recommended by the Board
and subsequently approved by the shareholders from time to time in the Annual General Meeting (AGM).
nk

Paid up capital stood at Tk.4,900.00 Million after dully approved 7% stock dividend on 4th Annual General
Meeting (AGM) held on 23 April 2017.

iii. Statutory reserve

la

In compliance with the provision of Section 24 of Bank Companies Act 1991, the bank transfers at least 20%
of its Profit before Tax to “Statutory Reserve Fund” each year until the sum of statutory reserve and share
premium equals to the paid up capital of the bank.

iv. Asset revaluation reserve

When an asset’s carrying amount is increased as a result of revaluation, the increased amount is credited
directly to equity under the heading of assets revaluation reserve as per BAS 16- “Property, Plant and
Equipment”. The bank is also required to follow the asset’s revaluation guidelines issued by BSEC on 18
August 2013.
No asset's revaluation has occurred during the reported financial year
v. Reserve for Amortization/ revaluation of securities
When a Financial Asset is catagorized under HTM or HFT and subsequent value of the asset is increased as a
result of amortization of assets or mark to market revaluation, the net increased amount (for HTM increase
or decrease of book value and for HFT loss to P&L but gain to revaluation reserve through P&L) is credited
directly to equity under the heading of reserve for amortization/revaluation of securities as per Bangladesh
Bank DOS circular no. 06 dated 15 July 2010.

146 NRB Commercial Bank Limited

D Revenue Recognition

Independent Auditors’ Report To The Shareholders

i. Interest Income

According to the BAS 18 “Revenue”, the interest income is recognized on accrual basis. Interest on loans
and advances ceases to be taken into income when such advances are classified as per BRPD circular no.
19 dated 27 December 2012 and is kept in interest suspense account. Interest on classified advances is
accounted for as income when realized.

ii. Interest income from investments

Interest income on investments in Government and other Securities, Debentures and Bonds is accounted
for on accrual basis.

iii. Fees and Commission Income

Fees and commission income on services provided by the Bank are recognized as and when the services

om
are rendered. Commission charged to customers on Letters of Credit and Letters of Guarantee is credited to
income at the time of effecting the transactions.

iv. Income from Exchange .c

Exchange income includes all gains and losses from foreign currency’s day to day transactions, conversions
and revaluation of Non-Monetary items.
d
v. Dividend income
ab

Dividend income from investments is recognized at the time when it is declared, ascertained and right to
receive the payment is established.

vi. Interest paid on Deposits and Borrowings

nk

Interest paid on deposits, borrowings, etc. is accounted for on accrual basis according to the BAS 1
“Presentation of Financial Statements”.

vii. Management and other expense

la

Expenses incurred by the Bank are recognized on actual and accrual basis.

viii. Taxation

The expense is comprised of current and deferred tax. Current tax and deferred tax are recognized in Profit
or Loss except to the extent that it relates to a business combination or items recognized directly in equity.

a. Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported
in the income statement because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable or deductible. The Bank’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the
balance sheet date.

Provision for current income tax has been made on taxable income of the Bank @ 40% (except other
business income i.e. 0% on gain of govt. securities, 10% on capital gain of trading shares in Secondary
Market and 20% on dividend income) as prescribed in the Income Tax Ordinance 1984.

147
 Annual Report 2017

b. Deferred Tax

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the
Financial Statements and the corresponding tax bases used in the computation of taxable profit, and are
accounted for using the Balance Sheet liability method. Deferred tax liabilities are generally recognized for
all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable
that taxable profits will be available against which deductible temporary differences, unused tax losses or
unused tax credits can be utilised. Such assets and liabilities are not recognized if the temporary difference
arises from goodwill or from the initial recognition (other than in a business combination) of other assets
and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognized for taxable temporary differences arising on investments in
subsidiaries and associates, and interests in joint ventures, except where the Bank is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the

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extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset is realized, based on tax rates that have been enacted or substantively enacted by the balance
sheet date. Deferred tax is charged or credited to the income statement, except when it relates to items
.c
charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
d
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the company intends to settle its current tax assets and liabilities on a net basis.
ab

The impact on the account of changes in the deferred tax assets and liabilities has also been recognized in
the Profit and Loss Statement as per BAS-12 "Income Taxes" (note 39) and BRPD Circular no. 11 dated 12
December 2011.
nk

ix. Retirement/post-employment benefits

The retirement benefits accrued for the employees of the Bank as on the reporting date have been
la

accounted for in accordance with the provision of BAS 19 "Employee Benefit". Bases of enumerating the
retirement benefit schemes operated by the Bank are outlined below:

a) Defined contribution plans

Defined contribution plans are post-employment benefit plans under which payments into the plan are
fixed. Subsequent payments out of the plan to retired members are based on the size of the ‘Fund’ meaning
contributions that have been made into the scheme and investment returns on scheme assets. The Bank
maintains one funded defined contribution plan i.e. “Provident Fund” for its employees under a separate
Trustee Board.

Provident Fund

The Bank operates a contributory provident fund for its permanent employees funded by both the
employees and the Bank equally; employees contribute 10% of basic salary and the Bank contributes an
equal amount. The Bank’s contribution is made each month and recorded under salary and allowances.
This fund is managed by a separate Trustee Board i.e. “NRB Commercial Bnak Limited Employees' Provident
Fund” and any investment decision out of this fund is made separately from that of the Bank’s funds. This
fund has received approval from the National Board of Revenue on 02 September 2014.

148 NRB Commercial Bank Limited

 b) Defined benefit

Independent Auditors’ Report To The Shareholders

Defined benefit plans are post-employment benefit plan other than defined contribution plans. These plans
define the amount that retired members will receive from the plans during retirement, by reference to
factors such as length of service and salary levels. Contributions are paid into the scheme based on policy
of the plan approved by Board of Directors of its 2nd meeting held on 02 March 2013. The Bank retains an
obligation to make up any shortfall in a plan, thereby bearing the risk of the plan under-performing. The
Bank maintains one funded defined benefit plans “Gratuity Fund” for its employees under separate trustee
committee.

Staff Gratuity Fund

The Bank operates a funded gratuity scheme approved by the National Board of Revenue with effect from 21
September 2014. The Gratuity Fund is managed separately by “”NRB Commercial Bank Limited Employees'
Gratuity Fund Trust”” and any investment decision out of this fund is also made by this Trust. The benefit is
paid to the eligible employees i.e. who have completed minimum 3 (three) years of continuous service at

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the time of separation from the Bank. As per policy of the Bank, eligible employees are provided with the
benefit equal to two monthly basic salary multiplied by eligible rates as per service length.

2.12 Reconciliation of Books of Account .c

Books of accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) and inter-branch
transactions are reconciled and no material difference was found which may affect the Financial Statements
significantly.
d
2.13 Earnings Per Share (EPS)
ab

Basic Earnings Per Share

Basic earnings per share have been calculated in accordance with BAS 33 "Earnings Per Share" which has
nk

been shown in the face of the Profit and Loss Statement. This has been calculated by dividing the basic
earnings by the total ordinary outstanding shares.
la

Diluted Eearnings Per Share

No diluted earnings per share is required to be calculated for the year as there was no scope for dilution
during the year under review.

2.14 Directors’ Responsibility on Statements

The Board of Directors takes the responsibility for the preparation and presentation of these
Financial Statements.

2.15 Memorandum items

Memorandum items are maintained to have control over all items of importance and for such transactions
where the Bank has only a business responsibility and no legal commitment. Bills for collection, Stock
of Govt. savings certificates and all others will be recognized as the memorandum items. However, Bills for
Collection is shown under contingent liabilities as per Bangladesh Bank’s format of reporting.

149
 Annual Report 2017

2.16 Off-Balance Sheet Items

Off-Balance Sheet items have been disclosed under contingent liabilities and other commitments as per
Bangladesh Bank’s guidelines.

In accordance with BRPD circular no.14 dated 23 September 2012, general provision @ 1% has been made
on the outstanding balances of Off-Balance Sheet exposure of the Bank as at 31 December 2016. Provision
is made on the total exposure and amount of cash margin or value of eligible collateral security is not
deducted while computing Off-Balance sheet exposures.

2.17 Reporting Period

These Financial Statements of the Bank cover one calendar year from 1st January to 31st December.

2.18 Compliance of Bangladesh Accounting Standard (BAS) and Bangladesh Financial

Reporting Standards (BFRS)

om
While preparing the Financial Statements, Bank applied most of the Bangladesh Accounting Standards (BAS)
and Bangladesh Financial Reporting Standards (BFRS) as adopted by the Institute of Chartered Accountants
of Bangladesh as applicable to the Bank:
SL No. Name of BAS No. of BAS Status
.c
1 The Effects of Changes in Foreign Exchanges Rates 1 Complied *
2 Borrowing Costs 2 Complied
d
3 Related Party Disclosures 7 Complied
4 Accounting and Reporting by Retirement Benefit Plans 8 Complied
ab

5 Separate Financial Statements 10 Complied

6 Investments in Associates 11 N/A
7 Interests in Joint Ventures 12 Complied
8 Financial Instruments: Presentation 16 Complied
nk

9 Earnings Per Share 17 Complied

10 Interim Financial Reporting 18 Complied
11 Impairment of Assets 19 Complied
la

12 Provisions, Contingent Liabilities and Contingent Assets 20 N/A

13 Intangible Assets 21 Complied
14 Financial Instruments: Recognition and Measurement 23 Complied
15 Investment Property 24 Complied
16 Agriculture 26 N/A **
17 Separate Financial Statements 27 Complied
18 Investments in Associates 28 N/A
19 Interests in Joint Ventures 31 N/A
20 Financial Instruments: Presentation 32 Complied *
21 Earnings Per Share 33 Complied
22 Interim Financial Reporting 34 Complied
23 Impairment of Assets 36 Complied
24 Provisions, Contingent Liabilities and Contingent Assets 37 Complied
25 Intangible Assets 38 Complied
26 Financial Instruments: Recognition and Measurement 39 Complied *
27 Investment Property 40 Complied
28 Agriculture 41 N/A

150 NRB Commercial Bank Limited

 SL No. Name of BFRS No. of BFRS Status

Independent Auditors’ Report To The Shareholders

1 First-time Adoption of International Financial Reporting Standards 1 N/A
2 Share Based Payment 2 N/A
3 Business Combinations 3 N/A
4 Insurance Contracts 4 N/A
5 Non-Current Assets Held for Sale and Discontinued Operations 5 N/A
6 Exploration for and Evaluation of Mineral Resources 6 N/A
7 Financial Instruments: Disclosures 7 Complied *
8 Operating Segments 8 N/A
9 Consolidated Financial Statements 10 Complied
10 Joint Arrangements 11 N/A
11 Disclosure of Interests in Other Entities 12 Complied
12 Fair Value Measurement 13 Complied *
N/A Stands for Not Applicable
* In order to comply with certain specific rules and regulations of the local Central Bank (Bangladesh

om
Bank) which are different to BAS/BFRS, some of the requirements specified in these BAS/BFRSs are not
applied. Departure from BAS/BFRS mentioned in the note 2.1.
** This Standard regards a retirement benefit plan as a reporting entity separate from the employers of
the participants in the plan. Therefore, it is not applicable for the Bank’s annual report as it is the employer
and not the retirement benefit plan itself.
.c
2.18.1 New Accounting Standards not yet Adopted
d
Although International Accounting Standard Board (IASB) has issued a new standard (IFRS 9) along with
ab

related amendments to existing standards (IAS/ BAS 32, 39) but none of these have been adopted and/or
endorsed locally as BAS/ BFRS and as such any possible impact could not be determined.

2.19 Regulatory and Legal Compliance

nk

The Bank complied with the requirements of the following regulatory and legal authorities:

i) The Banking Companies Act 1991

la

ii) The Companies Act 1994

iii) Rules, regulations and circulars issued by the Bangladesh Bank from time to time
iv) The Securities and Exchange Rules 1987
v) The Securities and Exchange Ordinance 1969
vi) The Securities and Exchange Commission Act 1993
vii) The Income Tax Ordinance 1984 and Rules
Viii) The Value Added Tax (VAT) 1991 and Rules

2.20 Risk Management

Risk is defined as uncertainties resulting in adverse variation of profitability or in losses, financial or

otherwise. The risk management of the Bank covers core risk areas of banking viz, credit risk, liquidity
risk, market risk that includes foreign exchange risk, interest rate risk, equity risk, operational risk and
reputation risk. The objective of the risk management is that the Bank evaluates and takes well calculative
business risks and thereby safeguarding the Bank’s capital, its financial resources and profitability from
various business risks through its own measures and through implementing Bangladesh Bank’s guidelines
and following some of the best practices as under:

151
 Annual Report 2017

2.20.1 Credit Risk

It arises mainly from lending, trade finance and treasury businesses. This can be described as potential
loss arising from the failure of a counter party to perform as per contractual agreement with the Bank.
The failure may result form unwillingness of the counter party or decline in his/ her financial condition.
Therefore, the Bank's credit risk management activities have been designed to address all these issues.

The Bank has segregated duties of the officers / executives involved in credit related activities. A separate
Corporate Division has been formed at Head Office which is entrusted with the duties of maintaining effective
relationship with the customers, marketing of credit products, exploring new business opportunities, etc.
Moreover, credit approval, administration, monitoring and recovery functions have been segregated. For
this purpose, two separate divisions have been formed within the Credit Division. These are (a) Credit Risk
Management Division and (b) Credit Administration Division. Credit Risk Management Division is entrusted with
the duties of maintaining asset quality, assessing risk in lending to a particular customer, sanctioning credit,
formulating policy / strategy for lending operation, etc.

A thorough assessment is done before sanction of any credit facility at Credit Risk Management Division. The

om
risk assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance
of the customer, security of the proposed credit facility, etc. The assessment process starts at Corporate
Division by the Relationship Manager / Officer and ends at Credit Risk Management Division when it is
approved / declined by the competent authority. Credit approval authority has been delegated to the
individual executives. Proposals beyond their delegation are approved / declined by credit committee or the
Management of the Bank or the Executive Committee. Concentration of Credit risk (Geographical location
wise) is shown in note -7.5.
.c
In determining a single borrower / large loan limit, the instructions of Bangladesh Bank are strictly followed.
d
Internal audit is conducted at periodical intervals to ensure compliance of Bank’s and Regulatory
polices. Loans are classified as per Bangladesh Bank’s guidelines. Concentration of single borrowers / large
ab

loan limits is shown in note- 7.4.

2.20.2 Operational Risk
Operational risk may arise from error and fraud due to lack of internal control and compliance.
nk

Management through Internal Control and Compliance Division controls operational procedure of the Bank.
Internal Control and Compliance Division undertakes periodical and special audit of the branches and
departments at the Head Office for review of the operation and compliance of statutory requirements. The
Audit Committee of the Board subsequently reviews the reports of the Internal Control and Compliance
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Division.

2.20.3 Market Risk

The exposure of market risk of the Bank is restricted to Foreign Exchange Risk, Interest rate risk and Equity risk.

Foreign Exchange Risk

Foreign exchange risk is defined as the potential change in earnings due to change in market prices. The
foreign exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the customers
against underlying L/C commitments and other remittance requirements. Foreign exchange dealing on
Bank’s account was accounted & reconciled during the year.

Front Office of Treasury Division and International Division jointly conducted the foreign exchange
transactions and the Mid Office and the Back Office of Treasury Division is responsible for verification of the
deals and passing of their entries in the books of account. All foreign exchange transactions are revalued
at Market rate as determined by Bangladesh Bank at the month end. All Nostro accounts are reconciled
on a monthly basis and outstanding entry is reviewed by the Management for its settlement. The position
maintained by the Bank at the end of day was within the stipulated limit prescribed by the Bangladesh Bank.

152 NRB Commercial Bank Limited

 Interest Rate Risk

Independent Auditors’ Report To The Shareholders

Interest rate risk may arise from trading portfolio and non-trading portfolio. The trading portfolio of the Bank
consists of government Treasury Bills, Bond, etc. The short term movement in interest rate is negligible or nil.
Interest rate risk of non trading business arises from mismatches between the future yield of an asset and
its funding cost. Asset Liability Committee (ALCO) monitors the interest rate movement on a regular basis.

Equity Position Risk

Equity risk arises from movement in market value of equities held. The risk exposure from capital market
movement for the year 2017 and, therefore, no diminution in value of share has occurred.

2.20.4 Liquidity Risk comprising Asset Liability Management Risk

The object of liquidity risk management is to ensure that all foreseeable funding commitments and deposit
withdrawals can be met when due. To this end, the Bank is maintaining a diversified and stable funding
base comprising of core retail and corporate deposits and institutional balance. Management of liquidity

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and funding is carried out by Treasury Department under approved policy guidelines. Treasury front office
is supported by a very structured Back office. The Liquidity management is monitored by Asset Liability
Committee (ALCO) on a regular basis. A written contingency plan is in place to manage extreme situation.

2.20.5 Money Laundering Risk

.c
Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being
negligent in prevention of money laundering. For mitigating the risks, the Bank has a designated Chief
d
Compliance Officer at Head Office and Compliance Officers at branches, who independently review the
transactions of the accounts to verify suspicious transactions. Manuals for prevention of money laundering
ab

have been established and transaction profile has been introduced. Training is continuously given to all
the category of Officers and Executives for developing awareness and skill for identifying suspicious
activities / transactions.
nk

2.20.6 Information & Communication Technology (ICT) Security Risk

ICT security risk management is a threat to an information technology, data, critical systems and business
processes. Bank exposed these risks through defining clear policies and procedure by assigning roles and
la

responsibilities of the personnel, ongoing risk assessment, mitigation of risk involving prioritization of the
risk sensitive area and implementing risk control mechanism, and establishing Data Centre (DC) & Disaster
Recovery (DR) for physical security of ICT.

2.20.7 Internal Audit

The Bank has established an independent internal audit function with the Head of Internal Control &
compliance (ICC) reporting directly to the Chairman of audit committee. The internal audit team performs risk
based audit on various business and operational areas of the Bank on continuous basis. The audit committee
and the Board regularly reviews the internal audit reports as well as monitor progress of previous findings.

2.20.8 Prevention of Fraud and Forgeries

As per the requirement of Bangladesh Bank, regular reportings are made on self-assessment of various anti
fraud controls as well as any incident of fraud and forgeries that have been identified by the Bank. Regular
staff training and awarness programmes are taken to ensure that all officers and staff of the Bank are fully
aware of various fraud risks in thier work area and prepare them to deal efficiently.

However, no such incident of fraud and forgeries had been identified in the year 2017.

153
 Annual Report 2017

2.21 Credit rating of the Bank

Credit Rating Information and Services Ltd.(CRISL) - a joint venture rating agency of Rating Agency Malaysia
Berhad (RAM) JCR-VIS Credit Rating Company Ltd., Pakistan, Prime Commercial Bank Ltd., Pakistan and
Local Corporate/Sponsors Bangladesh) was engaged by the Bank for the purpose of rating the bank as per
BRPD Circular No. 6 dated 5 July 2006. The following ratings have been awarded:

Short
Particulars Periods Date of Rating Long term
term
Initial Entity Rating 18 April to 31 December 2013 24 Jun 2014 BBB+ ST-3
Surveillance Rating 2014 22 Feb 2015 A- ST-3
Surveillance Rating 2015 30 Mar 2016 A ST-3
Surveillance Rating 2016 04 Apr 2017 A ST-3
Surveillance Rating 2017 23 Jun 2018 A ST-3

2.22 Events after Reporting Period

om
As per BAS-10 “Events after Reporting Period” events after the reporting period are those events, favourable
and unfavourable, that occur between the end of the reporting period and the date when the financial
statements are authorized for issue. Two types of events can be identified:
.c
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting
events after the reporting period); and
d
(b) those that are indicative of conditions that arose after the reporting period (no adjusting events after
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the reporting period).

In pursuance of (b) as mentioned above, event after reporting period is in the Note-49
nk

2.23 Related party disclosures

A party is related to the company if:
la

i) directly or indirectly through one or more intermediaries, the party controls, is controlled by, or is
under common control with, the company; has an interest in the company that gives it significant
influence over the company; or has joint control over the company;

ii) the party is an associate;

iii) the party is a joint venture;

iv) the party is a member of the key management personnel of the Company or its parent;

v) the party is a close member of the family of any individual referred to in (i) or (iv);

vi) the party is an entity that is controlled, jointly controlled or significantly influenced by or for which
significant voting power in such entity resides with, directly or indirectly, any individual referred to in
(iv) or (v); or

vii) the party is a post-employment benefit plan for the benefit of employees of the company, or of any
entity that is a related party of the company.
Details of the related party transactions have been disclosed in Annexure -J & J1

154 NRB Commercial Bank Limited

2.24 Audit Committee of the Board of Directors

Independent Auditors’ Report To The Shareholders

i) Particulars of Audit Committee
During the year 2017, the Audit Committee of the Board was reconstituted 2 (two) times i.e. in the 60th
meeting and 61st Board Meeting held on 10.12.2017 and 27.12.2017 respectively in accordance with the
BRPD Circular No. 11 dated 27 October 2013 issued by Bangladesh Bank. The last Committee was formed
on 27.12.2017 comprising 4 (Four) members of the Board:
Status Date of First Ap-
Sl Status with Educational/ Profes-
Name with Duration* pointment/ last
no. Committee sional Qualification
Bank Reappointment
Mr. Rafikul Islam Less Than M.Sc. in Electrical
1 Director Chairman 10.12.2017
Mia Arzoo 1 month Engineering
M.Sc. in Fiber Sci-
2 Engr. Farasath Ali Director Member Do 27.12.2017
ence & Textile
Mr. Md. Amir
3 Director Member Do 10.12.2017 M.Sc.in Statistics

om
Hossain
Mr. Mohammed
4 Director Member Do 27.12.2017 B.A
Nazim

* Duration means hold the position as of 31 December 2017 from first appointment.
.c
The Company Secretary acts as Secretary of the Audit Committee of the Board.
d
ii) Meeting held with Audit Committee
During the year 2017, the Audit Committee conducted 4 (Four) meetings in which, among others, the
ab

following issues were reviewed and discussed:

- Offsite Monitoring Plan for the year of 2017.
- Certification on effectiveness of Internal Control Policy, Practice and Procedure.
nk

- Review and recommendation of the Audited Financials of the Bank for the year ended on
31 December 2016.
- Review of the Summary of Comprehensive Core Risk Inspection Reports on the Branches
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of the Bank including status of compliance thereof;

- Review of the Summary of Offsite Monitoring Report & Compliance status of Branches.
- Comprehensive Inspection Plan for the Divisions & Branches for the year 2017.
- Review of Un-Audited Financials of the Bank for the 1st Quarter ended on 31 March 2017.
- Review of “Internal Control & Compliance Policy of the Bank.
- Review of Un-Audited Financials of the Bank for the 02nd Quarter ended on 30 June 2017.
- Position of Defaulted loans based on the 2nd Quarter 2017.
- Top 20 defaulters/classified accounts based on the position of 30.06.2017 (Q2)
- Information of the present position of the forced loan lying with Principal Branch.
- Top 20 defaulters/classified accounts based on the position of 30.09.2017 (Q3)
- Review and recommendation of un-audited Financial Statements for the 3rd Quarter ended
on 30 September 2017.

155
 Annual Report 2017

iii) Steps taken for implementation of effective internal control procedure of the Bank
In order to implement the effective internal control procedure of the Bank, the Audit Committee of the
Board, review & monitors following:

i. The control mechanism time to time and place recommendation to improve the system
ii. To advise to remain vigilant to ensure that the Banking rules and regulations are meticulously com-
plied by all Branches/Divisions/ Departments

iii. Recommendations on internal control system, compliance of rules and regulations and establishment
of good governance within the organization.

iv. Establish Comprehensive ICC Policy and ensure implementation of the guidelines.
Furthermore, the Committee placed its report regularly to the Board of Directors of the Bank mentioning
its review results and recommendations on internal control system, compliance of rules and regula-
tions and establishment of good governance within the organization.

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2.25 Approval of Financial Statements

These financial statements were reviewed by the Audit Committee of the Board of NRBC Bank Limited in its
21st meeting held on 27 March 2018 and was subsequently approved by the Board in its 64th meeting held
on 28 March 2018.
.c
2.26 General
d
i) Figures relating to the previous year included in this report have been rearranged, wherever considered
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necessary, to make them comparable with those of the current year, however, creating any impact,
except mentioned above, on the operating result and value of Assets and Liabilities as reported in the
Financial Statements for the current year.
nk

ii. Figures in these notes and in the annexed Financial Statements have been rounded off to the nearest
Taka.

iii. These notes form an integral part of the annexed Financial Statements and accordingly are to be read
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in conjunction therewith.

156 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka

3 Cash
Cash In Hand (Including Foreign Currency) (Note: 3.1) 834,220,938 580,866,977
Balance with Bangladesh Bank and its agent bank(s) (Note: 3.2) 3,108,053,792 2,513,159,306
3,942,274,730 3,094,026,283
3a Consolidated Cash
NRBC Bank Limited 3,942,274,730 3,094,026,283
NRBC Bank Securities Limited 1,896 23,876
3,942,276,626 3,094,050,159
3.1 Cash In Hand (Including Foreign Currency)
In local currency (Note: 3.1.1) 822,155,556 573,294,255
In foreign currency 12,065,382 7,572,723
834,220,938 580,866,977
3.1.1 In local currency

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Cash in Hand-Vault 787,065,556 546,632,755
Cash in ATM 35,090,000 26,661,500
822,155,556 573,294,255
3.1a Consolidated Cash In Hand (Including Foreign Currency)
NRBC Bank Limited
.c 834,220,938 580,866,977
NRBC Bank Securities Limited 1,896 23,876.00
d
834,222,834 580,890,853
3.2 Balance with Bangladesh Bank and its agent bank(s)
ab

In local currencies (LCY) (Note: 3.2.1) 3,070,791,295 2,485,785,842

In foreign currencies (FCY) (Note: 3.2.2) 36,583,092 20,481,106
3,107,374,387 2,506,266,949
nk

Details of Balance with BB (FCY Wise) Account is given with conversion in Annex-A
Sonali Bank Ltd. (as an agent bank of Bangladesh Bank) - local currency 679,405 6,892,357
3,108,053,792 2,513,159,306
la

3.2a Consolidated Balance with Bangladesh Bank and its agent bank(s)
NRBC Bank Limited 3,108,053,792 2,513,159,306
NRBC Bank Securities Limited - -
3,108,053,792 2,513,159,306
3.2.1 Balance with Bangladesh Bank and its agent bank(s)-LCY
Bangladesh Bank, Dhaka Office 3,053,015,493 2,467,900,383
Bangladesh Bank, Chittagong Office 1,483,909 3,975,082
Bangladesh Bank, Barisal Office 147,628 6,463,952
Bangladesh Bank, Rajshahi Office 394,522 6,087,282
Bangladesh Bank, Sylhet Office 5,283,760 357,544
Bangladesh Bank, Rangpur Office 10,352,846 901,650
Bangladesh Bank, Khulna Office 113,137 99,950.00
3,070,791,295 2,485,785,842
3.2.2 Balance with Bangladesh Bank -FCY
FC Clearning US Dollar 36,507,048 20,417,745
FC Clearning EURO 76,044 63,361
36,583,092 20,481,106

157
 Annual Report 2017

At Dec 31, 2017 At Dec 31, 2016

Taka Taka
3.3 Statutory deposits

Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)

Cash reserve requirement and statutory liquidity ratio have been calculated and maintained in accordance with clause 1 of
section 33 of Bank Company Act-1991 (Amended upto 2018) & MPD circular No- 01 dated 23 June 2014 of Bangladesh
Bank (effective from 24 June 2014) and and DOS circular no. 01 dated 19 January 2014.

The statutory cash reserve requirement is on the Bank’s time and demand liabilities at the rate of 6.50% and has been
calculated and maintained with Bangladesh Bank in current account while statutory liquidity ratio of 13.00% is required,
on the same liabilities is also maintained in the form of treasury bills and bonds including foreign currency balance with
Bangladesh Bank. Both the reserves are maintained by the Bank in excess of the statutory requirements, as shown below:

A. Cash Reserve Requirement (CRR)

As per Bangladesh Bank MPD Circular No. 01 dated 23 June 2014 Bank maintained CRR of minimum @ 6.0% on daily

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basis and @ 6.5% on bi-weekly basis on weekly average demand and time liabilities of the base month which is two
months back of reporting month (e.g. CRR of December 2017 is based on weekly average balance of October 2017):

i. Daily Requirement (Minimum @ 6% of Total ATDTL):

on bi-weekly basis of a particular Bank.

d .c
It is determined on daily basis of the average of total time and demand liabilities (ATDTL) of the month before the previous month

August-17 September-17 October-17

ab

Average time and demand liabilities (excluding inter-bank deposit) 42,551,026,200 42,830,376,250 43,778,475,000

October-17 November-17 December-17

nk

Required Reserve (6% on daily basis of Average Time and Demand Liabilities) 2,553,061,570 2,569,822,580 2,626,708,500

Average Actual reserve maintained with Bangladesh Bank 2,812,194,163 2,828,250,433 2,916,377,784
la

Surplus (Maintained over requirement) 259,132,593 258,427,853 289,669,284

ii. Bi-weekly Position (@6.5% of ATDTL)

It is determined on daily basis of the average of total time and demand liabilities (ATDTL) of the month before the previous month
on bi-weekly basis of a particular Bank.

August-17 September-17 October-17

Average time and demand liabilities (excluding inter-bank deposit) 42,551,026,200 42,830,376,250 43,778,475,000

October-17 November-17 December-17

Required Reserve (6.5% on bi-weekly basis of Average Time and Demand Liabilities) 2,765,816,700 2,783,974,460 2,845,600,880

Average actual reserve maintained 2,828,611,216 2,839,802,212 2,911,833,055

Surplus (Maintained over requirement) 62,794,516 55,827,752 66,232,175

158 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
B. Statutory Liquidity Ratio (SLR) of @ 13 % Average Demand and Time Liabilities
As per clause 1 of section 33 of Bank Company Act -1991 (Amended upto 2018) & DOS circular No - 01 dated 19 January 2014 of
Bangladesh bank (effective from 01 February 2014) all scheduled banks have to maintain SLR of minimum @ 13% based on weekly
average demand and time liabilities of the base month which is two months back of the reporting month:

August-17 September-17 October-17

Average time and demand liabilities (excluding inter-bank deposit) 42,551,026,200 42,830,376,250 43,778,475,000

October-17 November-17 December-17

Required reserve of SLR (13% on basis of Average Time & Demand Liabilities) 5,531,633,410 5,567,948,910 5,691,201,750

Ave. Actual SLR maintained (details in the note C) 6,667,399,065 6,422,795,653 5,817,830,401

Surplus / (dificit) 1,135,765,655 854,846,743 126,628,651

om
C. Components of Statutory Liquidity Ratio (SLR) October-17 November-17 December-17
Avg. Cash in hand including Foreign Currency 802,069,000 721,982,523 733,635,670
Avg. Excess Reserve of Bi-weekly @6.5% under CRR Bal with Bangladesh Bank 48,940,765 54,046,810 88,133,841
Avg. Unencumbered approved securities (HTM) 4,926,262,550 4,909,087,340 4,603,951,530
Avg. Unencumbered approved securities (HFT) 888,906,270 736,416,110 390,976,680
Avg. Other Eligible Security i.e. Prize Bond
.c 1,220,480 1,262,870 1,132,680
6,667,399,065 6,422,795,653 5,817,830,401

4 Balance with other banks and financial institutions

d
In Bangladesh (Note: 4.1) 1,223,920,193 3,928,136,050
ab

Outside Bangladesh (Note: 4.2) 326,112,339 112,539,149

1,550,032,532 4,040,675,199
4a Consolidated Balance with other banks and financial institutions
In Bangladesh (Note: 4.1a) 1,233,350,895 3,892,753,886
nk

Outside Bangladesh (Note: 4.2a) 326,112,339 112,539,149

1,559,463,234 4,005,293,035
4.1 In Bangladesh
Current Deposits
la

Bank Asia Ltd, Ruhitpur Br. 1,000 103

NCC Bank Ltd, Bhaban Br. 83,239 83,814
Sonali Bank Ltd, Rangpur Corporate Br. 1,702,889 1,087,963
Standard Bank Ltd, Principal Br. 22,240 10,523,120
5,505,000 -
7,314,368 11,694,999
Special Notice Deposits
Mercantile Bank Ltd, Main Br. 4,516,182 5,566,545
Mercantile Bank Ltd., Agrabad Br. - -
Mercantile Bank Ltd., Sylhet Br. 8,759 8,759
Mercantile Bank Ltd., Barisal Br. 631 1,321
Mercantile Bank Ltd., Rajshahi Br. 26,744 56,546
Southeast Bank Ltd., Principal Br. 323,637 706,576
NCC Bank Ltd., Motihjeel Br. 270,597 1,909,950
Eastern Bank Ltd., Principal Br. 170,786 3,137,873
Jamuna Bank Ltd., FEX Br. 871,991 1,692,806
Agrani Bank Ltd., Principal Br. 5,399,935 7,614,167
Agrani Bank Ltd., Sonargaon Br. 14,100,000
Khulna Corp. Branch, Sonali Bank Ltd 121,231 19,654
Sonali Bank Ltd, Tangail Br. 2,050
Trust Bank Ltd, Dilkhusha Corp Br for Q-cash Settlement 2,587,323 6,826,221
28,399,865 27,540,418

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Taka Taka

Fixed Deposits Receipt (FDRs)

FDR Placement to Banks 4,300,000 -

FDR Placement to NBFIs 1,183,829,583 3,830,000,000
1,188,129,583 3,830,000,000
Details of FDRs with Bank & NFBI in Annex-B

Balance with Brokerage Houses Trading A/C.

MBL Securities Ltd 34,458 35,408

IIDFC Securities Ltd 10,788 58,453
NRBC Bank Securities Ltd 31,130 58,806,771
76,376 58,900,632

om
1,223,920,193 3,928,136,050
4.1a Consolidated In Bangladesh

NRBC Bank Limited 1,223,920,193 3,928,136,050

NRBC Bank Securities Limited 15,544,070 100,599,598
.c 1,239,464,263 4,028,735,648
Less: Inter company transaction 6,113,368 135,981,762
d
1,233,350,895 3,892,753,886
4.2 Outside Bangladesh
ab

Habib American Bank NY, USD 200,081,694 35,170,174

Mashreq Bank PSC NY, USD 91,917,763 68,846,315
AB Bank Ltd Mumbai, Acu Dollar 382,505 2,560,801
nk

Mashreq Bank PSC London GBP 1,905,391 260,263

United Bank Of India, Kolkata, Acu Dollar 24,132,352 1,118,328
Mashreq Bank PSC London EURO 290,281 771,378
la

Mashreq Bank Mumbai Acu Dollar 16,188 420,058

National Bank Of Pakistan, Tokyo, Jpy 275,755 358,604
Kookmin Bank, Seoul, Korea 887,096 2,421,964.96
Habib Metro Bank Limited, Karachi Acu Dollar 555,995 611,263
Axis Bank Limited, India 5,667,320 -
326,112,339 112,539,149
Details of Nostro Account with conversion in Annex-C

4.2a Consolidated Outside Bangladesh (Nostro Accounts)

NRBC Bank Limited 326,112,339 112,539,149

NRBC Bank Securities Limited - -
326,112,339 112,539,149
Less: Inter company transaction - -
326,112,339 112,539,149

160 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
4.3 Account-wise/Grouping of Balance with other Banks and Financial
institutions:

Current Deposits 333,503,083 183,134,781

Saving Deposit - -
Special Notice Deposits 28,399,865 27,540,418
Fixed Deposits 1,188,129,583 3,830,000,000
1,550,032,532 4,040,675,199
4.4 Maturity grouping of Balance with other Banks

Repayable - on demand 336,343,070 185,888,822

– up to 3 months 959,859,879 3,154,786,377
– over 3 months but below 1 year 253,829,583 700,000,000

om
– over 1 year but below 5 years - -
– over 5 years - -
1,550,032,532 4,040,675,199
5 Money at call and short notice
In Bangladesh - -
Outside Bangladesh
.c - -
- -
d
5a Consolidated money at call and on short notice
NRBC Bank Limited -
ab

NRBC Bank Securities Limited -

- -
6 Investments
Types of Investment - 236,309,189
nk

Treasury Bills 4,902,759,430 5,016,720,603

Treasury Bonds 1,022,800 675,700
Prize Bond 1,591,341,377 1,920,451,629
la

Other Investments 6,495,123,607 7,174,157,121

Nature wise
Held for Trading - 1,503,994,553
Held to Maturity 4,902,759,430 3,749,035,239
Others 1,592,364,177 1,921,127,329
6,495,123,607 7,174,157,121
Claim wise
Government securities (Note: 6.1) 4,903,782,230 5,253,705,492
Other investments (Note: 6.2) 1,591,341,377 1,920,451,629
6,495,123,607 7,174,157,121
6a Consolidated investments
NRBC Bank Limited 6,495,123,607 7,174,157,121
NRBC Bank Securities Limited 369,008,495 353,424,000
6,864,132,102 7,527,581,121
Less: Inter company transaction - -
6,864,132,102 7,527,581,121

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Taka Taka

6.1 Government securities

Treasury bills (Note: 6.1.1) 4,902,759,430 5,253,029,792
Prize Bond 1,022,800 675,700
4,903,782,230 5,253,705,492
6.1.1 Treasury bills/Bonds:

a.Unencumbered
i. Held for Trading
91 Days Treasury Bills - -
182 Days Treasury Bills - -
364 Days Treasury Bills - 236,309,189
2 Year Treasury Bonds - 101,917,700

om
5 Year Treasury Bonds - -
10 Year Treasury Bonds - -
15 Year Treasury Bonds - 744,345,364
20 Year Treasury Bonds - 421,422,300
- 1,503,994,553
ii. Held to Maturity
.c
91 Days Treasury Bills - -
d
182 Days Treasury Bills - -
364 Days Treasury Bills - -
ab

2 Year T-Bonds - 29,997,640

5 Year T-Bonds 1,828,254,896 1,860,024,787
10 Year T-Bonds 1,501,603,444 661,492,316
15 Year T-Bonds 1,010,252,893 678,121,511
nk

20 Year T-Bonds 562,648,197 519,398,984

4,902,759,430 3,749,035,239
b. Encumbered : Disclosure regarding the securities that were being lien under Re-purchased agreement in
la

the Annexure-D as per DOS Circular No. 06 dated 15 July 2010.

6.1a Consolidated Government Securities

NRBC Bank Limited 4,903,782,230 5,253,705,492

NRBC Bank Securities Limited - -
4,903,782,230 5,253,705,492
Less: Inter company transaction - -
4,903,782,230 5,253,705,492
6.2 Other investments

a. Quoted shares & MFs

Share 6,341,377 47,451,629
Mutual Fund 20,000,000 -
26,341,377 47,451,629
b. Investment in Preference Share
Preference Share- Regent Energy and Power Ltd. 60,000,000 80,000,000
60,000,000 80,000,000

162 NRB Commercial Bank Limited

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Independent Auditors’ Report To The Shareholders

Taka Taka

c. Investment in Bond
BSRM Convertible Bond 198,000,000 297,000,000
Mercantile Bank Subordinated Bond 360,000,000 450,000,000
Trust Bank Subordinated Bond 120,000,000 150,000,000
AB Bank Subordinated Bond 80,000,000 100,000,000
UCBL Subordinated Bond 100,000,000 100,000,000
MTB Subordinated Bond 200,000,000 200,000,000
2nd AB Bank Subordinated Bond 300,000,000 300,000,000
The City Bank Subordinated Bond 147,000,000 196,000,000
1,505,000,000 1,793,000,000
Details in the Annexure-E

Total (a+b+c) 1,591,341,377 1,920,451,629

om
6.2a Consolidated other investments

NRBC Bank Limited 1,591,341,377 1,920,451,629

NRBC Bank Securities Limited 369,008,495 353,424,000
.c
1,960,349,872 2,273,875,629
Less: Inter company transaction - -
d
1,960,349,872 2,273,875,629
ab

6.3 Maturity grouping of Investment

Redeemable-on demand 27,364,177 48,127,329

– up to 3 months 102,000,000 230,331,418
nk

– over 3 months but below 1 year 306,000,000 286,729,809

– over 1 year but below 5 years 2,985,254,896 3,735,520,708
– over 5 years 3,074,504,534 2,873,447,856
la

7 Loans and advances (Including purchased & discounted Bills) 42,960,513,008 37,407,920,051

7a Consolidated Loans and advances

NRBC Bank Limited 42,960,513,008 37,407,920,051
NRBC Bank Securities Limited 39,766,748 364,049
43,000,279,756 37,408,284,100
Less: Inter company transaction - -
43,000,279,756 37,408,284,100

7.1 Maturity grouping

Payable on demand 6,005,700,000 4,812,200,100

Not more than 3 months 10,166,487,646 7,911,200,021
More than 3 months but not more than 1 year 15,599,806,177 13,454,717,864
More than 1 year but not more than 5 years 6,304,500,000 6,875,200,426
More than 5 years 4,884,019,185 4,354,601,640
42,960,513,008 37,407,920,051

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Taka Taka
7.2 Broad category-wise breakup (Excluding purchased & discounted Bills)

In Bangladesh
Loans 22,835,530,729 22,427,948,484
Overdrafts 9,519,108,424 7,036,154,679
Cash Credit 9,166,680,032 6,749,400,036
41,521,319,185 36,213,503,198
Outside Bangladesh
Loans - -
Overdrafts - -
Cash Credit - -
- -
41,521,319,185 36,213,503,198
7.2a Consolidated Loans, cash credits, overdrafts etc.

om
(Excluding purchased & discounted Bills)
NRBC Bank Limited 41,521,319,185 37,407,920,051
NRBC Bank Securities Limited 39,766,748 364,049
41,561,085,933 37,408,284,100
Less: Inter company transaction - -
.c 41,561,085,933 37,408,284,100
7.3 Product-wise Loans and Advances (Excluding purchased &
discounted Bills)
d
Overdraft 9,519,108,424 7,925,098,977
ab

Cash Credit 9,166,680,032 6,749,400,036

Time loan 5,397,493,598 7,120,872,845
Term loan 4,779,513,094 4,497,353,167
Payment Against Document 142,924,390 103,292,988.13
nk

Loans against Trust Receipt 1,736,606,384 1,756,869,703

Packing Credit 429,419,660 209,327,228
EDF Loan 976,570,090 664,705,408
SME Credit 2,358,775,376 -
la

Lease Finance & Hire Purchase 2,191,834,601 2,402,577,598

Consumer Loan 438,263,376 466,920,089
Staff Loan 369,426,053 361,637,978
Other Loans and Advances 4,014,704,107 5,149,864,036
41,521,319,185 37,407,920,051
7.4 Sectorwise Loans and Advances (Excluding purchased and discounted Bills)

Govt. Sector - -
Public Sector - -
Private Sector 41,521,319,185 36,213,503,198
41,521,319,185 36,213,503,198
7.5 Loans and Advances on the basis of significant concentration including
Bills Purchased and Discounted
a) Loans and advances given in favor of sister concern of the Directors ; - -
b) Loans and advances given to Chief Executive Officer and other Senior 266,362,227 80,808,567
Executives of the Banks

164 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka

c) Loans and advances allowed to customer exceeding 10% of Bank’s Total

Equity for the year 2017

Total capital of the Bank (In Lac Taka) 67,805.51 62,006.10

No. of Customer 37 32
Amount of Outstanding Facilities Amount in lac Taka
Funded Facilities 152,933.20 123,976.98
Non-Funded Facilities 68,930.00 55,845.05
Classified loan thereon Nil Nil
Measures taken for recovery Nil Nil

Figure in Lac
Facilities approved by Bank Balance/Business as on 31.12.2017
SL Name of Client
Funded Non-Funded Funded Non-Funded

om
1 NASSA TAIPEI TEXTILE MILLS LTD 6,040.00 4,000.00 6,194.00 2,416.00
2 GOLDSTAR GROUP 3,000.00 10,150.00 4,082.00 4,854.00
3 LABIB GROUP 9,340.00 10,859.82 5,880.00 3,848.00
4 IFAD AUTOS LIMITED 5,850.00 1,000.00 2,698.00 641.00
5 AG GROUP 7,700.00 10,000.00 7,306.00 8,356.00
6 MIR AKHTER HOSSAIN LTD. 5,000.00 4,500.00 - 99.00
7 ANWAR GROUP
.c 7,800.00 5,000.00 7,969.00 -
8 Bay Poly & Packaging Ltd. 4,459.00 2,400.00 4,000.00 685.00
9 NAVANA GROUP 8,922.00 7,000.00 7,945.00 1,406.00
d
10 Jamuna Ediboil Industries Ltd Unit-2 8,000.00 10,896.00 8,406.00 987.00
11 ABUL KHAIR GROUP 0.00 16,500.00 - 684.00
ab

12 HABIB GROUP 5,500.00 5,000.00 5,403.00 3,268.00

13 SB Group 2,450.00 3,500.00 2,510.00 3,312.00
14 Al-Falah Steel & Re-rolling Mills Ltd. 4,200.00 4,337.00 4,984.00 1,033.00
15 M. M SHIP BREAKING GROUP 5,450.00 604.33 2,408.20 604.00
nk

16 JAHANGIR & OTHERS 250.00 8,000.00 6,798.00 -

17 CHOWDHURY GROUP 7,475.00 4,000.00 7,936.00 3,663.00
18 ABDUL MONEM LIMITED 3,500.00 2,500.00 1,487.00 -
19 Computer Network Syst 5,000.00 5,000.00 - 1,689.00
20 Blue Planet 4,500.00 7,695.00 3,545.00 1,018.00
la

21 BGUMGANJ FEED MIILLS 6,800.00 5,000.00 5,021.00 -

22 A A SYNTHETIC FILTD. 6,000.00 5,000.00 5,849.00 545.00
23 Aftab Automobiles Ltd 5,500.00 5,000.00 5,435.00 178.00
24 Silver Apperals Ltd. 3,722.00 10,680.00 6,870.00 5,863.00
25 Mahade Fashion Pvt. Ltd 2,877.00 6,095.00 2,566.00 5,081.00
26 NORTHERN HATCHERIES 7,969.00 520.00 8,230.00 20.00
27 Samira Saima Textile Mills 11,000.00 7,000.00 9,818.00 -
28 M/S Hasan & Brothers 1,000.00 5,000.00 5,041.00 -
29 Thermax Melange Spinning Mills 6,523.00 7,000.00 2,938.00 4.00
30 Sanji Group 3,600.00 2,000.00 1,038.00 568.00
31 LA-Muni Apparels Ltd 1,286.00 1,393.00 1,386.00 214.00
32 Lushaka Group 3,349.00 6,984.00 2,249.00 6,274.00
33 Gram Unnayan Karma (GUK) 0.00 9,000.00 - 5,007.00
34 ARISTOCRATS PROPERTIES LTD. AND 5,475.00 5,400.00 489.00 1,057.00
ASSOCIATES
35 B.H Hitech Food Ind.Pvt.Ltd 3,571.00 2,000.00 397.00 1,023.00
36 Aleya Feeds Ltd & its Associates 4,393.00 2,604.00 4,590.00 737.00
37 Taratex Fashion Limited 1,304.00 7,000.00 1,465.00 3,796.00
Total 178,805.00 210,618.15 152,933.20 68,930.00

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Taka Taka
d) Industry wise loans including Bills purchased & discounted

SL Industries Taka Taka

SL Industries 1,308,842,404 773,164,110
1 Agricultural Industry 2,813,959,835 2,066,050,603
2 Textile 4,597,213,014 3,565,482,548
3 RMG 776,279,755 820,283,060
4 NBFI 124,239,382 99,925,173
5 Food 148,753,367 166,121,470
6 Bevarage 267,120,741 231,198,832
7 Pharmaceutical 45,630,212 38,114,133
8 Chemical 160,430,603 114,671,474
9 Electrical 3,049,896,410 2,799,202,330
10 Construction 933,172,279 961,365,151
11 House Building Residential 114,871,987 92,108,575
12 Leather 348,997,136 384,782,921

om
13 Service Industry 226,181,393 485,383,612
14 Transport 61,960,850 73,783,472
15 Basic Metal - -
16 Capital Market 9,821,786 11,653,726
17 Car loan 1,511,674 1,428,017
18 Furniture 8,552,337 11,947,870
19 Insurance
.c 1,424,368,088 1,137,393,731
20 Consumer Finance 711,628,819 552,929,186
21 Printing 200,272,482 495,059,556
d
22 Ship Breaking 7,775,869,571 5,796,861,046
23 SME 369,426,052 361,637,978
ab

24 Staff Loan 1,010,955,217 1,103,559,703

25 Steel 8,390,728,038 7,171,325,036
26 Trade Industry 228,480,062 157,457,176
27 Card 6,026,633,800 5,422,054,500
28 Other Manufacturing Industry 1,824,715,715 2,512,975,062
nk

42,960,513,008 37,407,920,051

7.6 Geographical location-wise Loans and Advances

Urban Branch
la

Dhaka 25,924,501,430 21,988,209,872

Chittagong 5,583,050,505 5,067,776,685
Rajshahi 3,079,549,194 3,277,413,162
Sylhet 986,453,641 757,166,862
Barisal 389,289,995 592,597,025
Rangpur 159,607,643 107,369,251
Khulna 115,600,226 75,382,533
Mymensingh 1,797,599 -
Sub-total 36,239,850,233 31,865,915,390
Rural Branch
Dhaka 5,009,067,705 4,077,461,057
Chittagong 1,390,150,460 1,316,119,527
Rajshahi - -
Sylhet 14,317,276 7,353,846
Barisal 154,242,968 103,048,470
Rangpur 133,627,063 36,150,260
Khulna 19,257,304 1,871,502
Mymensingh - -
Sub-total 6,720,662,776 5,542,004,662
Total 42,960,513,008 37,407,920,051

166 NRB Commercial Bank Limited

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Independent Auditors’ Report To The Shareholders

Taka Taka

7.7 Classification of Loan & Advances

Unclassified
Standard Including Staff Loan 40,770,503,136 36,230,337,446
Special Mention account 1,157,424,882 984,559,380
Sub-Total (a) 41,927,928,017 37,214,896,826
Classified
Substandard Loan 177,436,012 59,303,199.53
Doubtful 26,418,465 25,127,676.45
Bad/loss 828,730,514 108,592,349.81
Sub-Total (b) 1,032,584,991 193,023,225.79
Total (a+b) 42,960,513,008 37,407,920,052

om
7.8 Particulars of required provision for Loans and Advances (for Funded facility)
For Unclassified Loans
Base for Provision Rate (%)
Standard Including Staff Loan
.c
40,770,503,136 Various (*) 362,053,192 360,420,792
Special Mention account 1,157,424,882 Various (*) 10,170,240 10,072,982
d
Sub-Total (a) 372,223,432 370,493,774
(*) General Provision is Kept @ 2% on Credit Card Loan, @ 2% Loan for Professional,
ab

@ 2% on Housing loan, @ 5% on Consumer Financing and @ 0.25% on Small and

Medium enterprise financing and @ 1% on rest unclassified Loans and advances.
For Classified Loans
nk

Base for Provision Rate (%)

Substandard Loan (SS)(**) 103,734,527 20 20,746,905 3,902,199
Doubtful (DF)(**) 15,075,603 50 7,537,802 7,049,080
la

Bad/loss (BL) 433,024,677 100 433,024,677 47,699,479

Sub-Total (b) 461,309,384 58,650,757
Required Provision for Loan and advance (c=a+b) 833,532,816 429,144,532
Total Provision maintained (Note:13.1 & 13.2) 833,532,816 429,144,532
Excess/(Shortfall) of provision as of 31 December 2017 - -
(**) Except Short-term Agri-loan and Micro credit where 5% provision has to be kept on base for provision under SS & DF stage
7.9 Particulars of Loans and Advances
(i) Loans and advances considered good in respect of which the Bank is fully 1,819,226,455 18,668,848,044
secured
(ii) Loans and advances considered good against which, the Bank holds no 10,904,419,509 18,444,698,795
security other than, the debtors’ personal guarantee
(iii) Loans and advances considered as good which is secured owing to personal 275,740,038 294,373,212
liability of one or more parties in addition to debtors’ personal guarantee
(iv) Loans and advances adversely classified; Such a classified loan for which
no provision has been left - -
12,999,386,002 37,407,920,051

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Taka Taka

(v) Loans and advances due by directors or officers of the banking company or any 7,134,131,511 5,890,386,351
of them either separately or jointly with any other persons
(vi) Loans and advances due from companies or firms in which the directors of
the Bank have interest as directors, partners or managing agents or in case
of private companies, as members - -

(vii) Maximum total amount of loans and 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 person.
11,164,451 12,954,051

(viii) Maximum total amount of loans and advance, including temporary Loans
and advances granted during the year to the companies or firms in which
the directors of the banking company have interest as directors, partners

om
or managing agents or in the case of private companies, as members.
1,100,000,000 798,970,739

(ix) Money Receivable/Due from different banking companies

(x) The amount of classified loan on which interest has not been
charged
.c
a. (Decrease)/ increase of provision (Specific) 407,425,411 53,883,973.87
d
b. Amount of loan write off - -
ab

c. Amount realized against loan previously written off - -

d. Provision kept against classified loan as bad/loss account on 433,024,677 47,699,479

the date of preparation of balance sheet;
nk

e. Interest imposed in suspense account 48,281,085 33,754,121

(xi) Movement of write off loan

Opening balance - -
la

Add: During the period/year - -

Less: Amount realised against loans & advances previously written off - -
Closing Balance

7.10 Security wise Loans & Advances (Including purchased and

discounted Bills)

Particulars Taka Taka

Collateral of movable/immovable assets 26,495,762,868 23,251,494,998
Local Banks & Financial Institutions Guarantee 933,289,470 785,651,310
Government Guarantee - -
Foreign Bank Guarantee - -
Export Documents 2,068,156,700 1,196,101,666
Fixed Deposit Receipt 1,821,174,077 1,228,834,877
Personal Guarantee 10,904,419,509 9,940,274,071
Other Securities 737,710,384 1,005,563,130
42,960,513,008 37,407,920,051

168 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka

8.0 Bills purchased and discounted

Receivable in Bangladesh 1,137,859,351 785,651,310
Receivable outside Bangladesh 301,334,472 408,765,544
1,439,193,823 1,194,416,854
8.1 Maturity grouping of Bills purchased and discounted

Receivable within a period not exceeding 01 month 785,800,000 632,000,112

Receivable within a period exceeding 01 month but less than 03 months 408,987,646 494,710,316
Receivable within a period exceeding 03 months but less than 06 months 243,406,177 67,706,426
Receivable within a period equal to 06 months or exceeding that time 1,000,000 -
1,439,193,823 1,194,416,854
8a Consolidated Bills purchased and discounted

NRBC Bank Limited 1,439,193,823 1,194,416,854

om
NRBC Bank Securities Limited - -
1,439,193,823 1,194,416,854
9 Fixed Assets including Premises, Furniture and Fixtures of the Bank
Land, Building and Construction - -
Furniture and fixures
.c 276,011,070 251,205,585
Equipment and Machinery 272,685,453 243,083,735
Computer and Computer Equipment 160,147,984 157,193,174
d
Intangible Assets/Bangladesh Made Computer Software 136,380,707 123,292,181
Motor Vehicles 27,250,000 27,250,000
ab

Professionals and Reference Books 23,370 23,370

Leased Assets: Motor Vehicle 27,106,624 27,106,624
899,605,208 829,154,668
nk

Less: Accumulated Depreciation/Amortization 421,684,081 274,279,447

477,921,127 554,875,222
Note: A schedule of Fixed Assets for accounting purpose is given in Annexure- G
and Tax Purpose Annexure-H.
la

9a Consolidated Fixed assets including premises, furniture and fixtures

At cost
NRBC Bank Limited 899,605,208 829,154,668
NRBC Bank Securities Limited 11,873,852 5,827,527
911,479,060 834,982,195
Accumulated depreciation
NRBC Bank Limited 421,684,081 274,279,447
NRBC Bank Securities Limited 2,566,728 605,271
424,250,809 274,884,718
Net Book Value 487,228,251 560,097,478

169
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At Dec 31, 2017 At Dec 31, 2016

Taka Taka
10 Other Assets
i. Income generating-Equity Investment
90% Equity Shareholding of NRBC Bank Securities Limited 360,000,000 360,000,000

ii. Non-income generating

Advance Security Deposit 3,601,929 3,379,929
Stock of Stationery and Printing items [Note -10.1] 7,256,265 8,560,965
Suspense Account [Note -10.2] 79,706,495 27,922,883
Deferred Tax Assets (Note 10.3) 189,517,796 5,817,615
Stamps in Hand 1,595,714 1,661,168
Advance Office Rent 274,939,568 325,374,636

om
Interest Receivable [Note -10.4] 33,876,361 49,243,802
Interest Receivable on Treasury Bonds 141,042,266 126,685,659
Interest Receivable on Coupon Bond 33,372,813 39,040,600
Prepaid Insurance Premium 983,763 300,401
Advance Income Tax [Note -10.5]
.c 865,998,645 368,359,610
Membership with Visa Worldwide PLC Ltd 2,311,500 2,311,500
d
Share Sale proceed Receivable - 545,030
Prepaid for House Furnishing cost and Passage for Travel 18,379,827 19,601,730
ab

Dividend Receivable on Share/Preference Share 4,704,597 5,812,603

1,657,287,539 984,618,132
Total (i+ii) 2,017,287,539 1,344,618,132
nk

10a Consolidated Other Assets

NRBC Bank Limited 2,017,287,539 1,344,618,132

la

NRBC Bank Securities Limited 19,772,254 40,790,095

2,037,059,793 1,385,408,227
Less: Inter company transaction 361,084,964 361,613,204
1,675,974,829 1,023,795,024
10.1 Stock of Stationery and Printing items

Printing Stationery (Assets) 4,978,813 4,243,033

Security Papers (Assets) 572,452 679,424
Security Stationery - CARDs 1,705,000 3,638,508
7,256,265 8,560,965

170 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
10.2 Suspense Account
Advance against New Branches 27,313,000 14,857,289
Advance Against Suppliers 2,247,245 2,767,970
Receivable Against payment for Principal of Govt. Securities ( BSP/ 23,928,583 4,023,924
PSP/3MB)
Advance against TA/DA 148,200 107,000
Cash Remitted to HO/Feeding Branch 11,300,000 -
Suspense A/C Bank POS and NPSB TXN Dispute amount 253,885 375,830
Suspense Others 4,450,641 3,552,085
Interest Receivable Against payment for Interest of Govt. Securities ( BSP/PSP/3MB) 8,850,311 2,157,745
Foreign Remmittance Agencies 104,000 -
Receivable Against expense of Defaulter/CL 949,920 -
Stamp for Utility Bill Collection 160,710 81,040
79,706,495 27,922,883

om
Aging of Suspense Account (2017)
Up to 6 Over 6 Months Over 1 Years Above 4
Head of Account
Months to 1 Year to 4 Years Years
Advance against New Branches (*) 20,074,000 7,239,000 - -
.c
Advance Against Suppliers 2,247,245 - - -
Advance against TA/DA 148,200 - - -
d
Cash Remitted to HO/Feeding Branch 11,300,000 - - -
Suspense A/C Bank POS and NPSB TXN Dispute amount 253,885 - - -
ab

Principal & Intt. Paid for Govt. Securities ( BSP/PSP/3MB) 25,346,046 7,432,848 - -
Suspense Others 4,450,641 - - -
Foreign Remmittance Agencies 104,000 - -
nk

Receivable Against expense of Defaulter/CL 949,920 - -

Stamp for Utility Bill Collection 160,710 - - -
* Advance against new Branches of Tk.7,239,000.00 over 6 months already been adjusted. This includes the amounts
la

that are kept in temporary parking accounts shown under other assets. These balances are in the process of regular
monitoring so that it remains within a non material level.
10.3 Deferred Tax Assets
Opening Balance 5,817,615 (16,043,302)
Additional provision during the Year 183,700,181 21,860,918
Less: Adjustment/Settlement -
189,517,796 5,817,615
Based on detailed analysis Management are satisfied that there would
be adequate taxable profit available in future against of such temporary
differences.
10.4 Interest Receivable
Interest Receivable on Loan & Advances - 1,789,844
Interest Receivable on Balance with Other Banks & FIs 33,876,361 47,453,958
33,876,361 49,243,802

171
 Annual Report 2017

At Dec 31, 2017 At Dec 31, 2016

Taka Taka
10.5 Advance Corporate Tax and withholding Tax at source

Opening Balance 368,359,610 141,359,812

Add: Advance Corp. Tax & Withhloding Tax during the year [Tax on interest and vehicle] 497,639,035 226,999,798
Sub-Total 865,998,645 368,359,610
Less: Settlement during the year - -
Details in the note no. 10.5.1 865,998,645 368,359,610

10.5.1 Advance Corporate Tax and withhloding Tax at source

Advance Corporate Tax ( Under Section 64 of ITO, 1984) 635,694,359 184,743,789

TDS @10% & 15% on Interest Income from Balance with Banks 46,010,384 46,010,384
TDS@10% on FDR Interest Income with FIs 124,810,143 88,258,363

om
TDS @ 20% on Cash Dividend received from Quoted Share 10,866,344 6,189,898
Tax deposited @ 5% on commission on L/C 7,081,821 1,996,481
Upfront @ 5% on Interest of T-Bills/Reverse REPO deducted by Bangladesh Bank 40,402,895 40,402,895
Advance Tax to City Corporation/Paurasova under section 52k 12,700 7,800
Advance Tax for Bank's Pool Vehicles
.c 1,120,000 750,000
865,998,645 368,359,610
d
11 Borrowings from Bangladesh Bank, other Banks, Fiancial Institutions and Agents
ab

In Bangladesh (Note 11.1) 1,280,722,753 763,427,007

Outside Bangladesh - -
1,280,722,753 763,427,007
nk

11.1 In Bangladesh

Bangladesh Bank (Refinance under SPD/SME/WE) 330,722,753 143,427,007

la

Bangladesh Bank ( LS/REPO) - -

Borrowings Call and Short Notice from Banks & Fis 950,000,000 620,000,000
1,280,722,753 763,427,007
Note : Details of Refinance shown in the Annexure-F

11.2 Analysis by Security

Borrowing with Security - -

Borrowing without Security 1,280,722,753 763,427,007
1,280,722,753 763,427,007
11.3 Repayment pattern

Repayable on demand 950,000,000 620,000,000

Repayable on maturity/terms 330,722,753 143,427,007
1,280,722,753 763,427,007

172 NRB Commercial Bank Limited

 Independent Auditors’ Report To The Shareholders
At Dec 31, 2017 At Dec 31, 2016
Taka Taka

11a Borrowings from Bangladesh Bank, other Banks, Fiancial Institutions and Agents

NRBC Bank Limited 1,280,722,753 763,427,007

NRBC Bank Securities Limited - -
1,280,722,753 763,427,007
12 Deposits and other accounts
Deposit from Inter Bank (Note-12.1) 3,100,000,000 3,650,000,000
Deposit from Customers (Note-12.2) 42,126,596,236 40,568,692,884
45,226,596,236 44,218,692,884
12a Consolidated deposits and other accounts

NRBC Bank Limited 45,226,596,236 44,218,692,884

om
NRBC Bank Securities Limited 15,954,896 60,569,188
45,242,551,132 44,279,262,072
Less: Inter company transaction 6,113,368 135,981,762
45,236,437,765 44,143,280,310
12.1 Deposits from Inter Bank
.c
Fixed Deposit
d
Uttara Bank Limited 200,000,000 1,500,000,000
Meghna Bank Limited 500,000,000 400,000,000
ab

Sonali Bank Limited 500,000,000 500,000,000

Janata Bank Limited 300,000,000 -
Agrani Bank Limited 400,000,000 500,000,000
Midland Bank Limited 150,000,000 50,000,000
nk

Rupali Bank Ltd. 1,050,000,000 700,000,000

3,100,000,000 3,650,000,000
12.2 Deposits and other accounts
la

i. Current accounts and other accounts

Current Deposit 1,937,942,162 1,853,927,154
Foreign Currency Deposit 48,314,456 30,658,028
Deposit Under Q-Cash 1,507,550 1,633,855
Sundry Deposit (Note: 12.2.1) 1,038,131,446 630,520,847
3,025,895,614 2,516,739,883
ii. Bills Payable
Pay Order 1,879,550,103 2,754,668,268

iii. Savings Bank Deposit 2,892,102,268 2,334,369,949

iv. Term Deposit/Fixed Deposit

Fixed Deposit 17,366,604,558 20,157,188,850
Short Term Deposit 4,487,139,751 3,368,085,124
Deposit Under Schemes 12,475,303,942 9,437,640,810
34,329,048,251 32,962,914,784
42,126,596,236 40,568,692,884

173
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At Dec 31, 2017 At Dec 31, 2016

Taka Taka

12.2.1 Sundry Depsoit

Margin on Letter of Guarantee 129,008,457 100,277,013

Margin on Letter of Credit 577,030,166 356,205,343
Margin on Bills 16,575,113 7,574,005
Margin on Others 32,640,355 19,896,100.50
Sale Proceeds of Govt. Savings Certificates 42,850,000 3,600,000.00
Security Deposits 2,191,793 2,287,932
Risk Fund on Loans and Advances 4,430,907 3,952,800
Provident Fund - 3,115,583.00
Employees Welfare Fund 5,346,627 4,658,396
VAT, Excise Duty and Withholding Tax 134,672,677 65,523,188

om
Value Added Tax - VAT on Utility Bills Collection 13,843,186 9,971,455
Sundry Creditors 2,837,605 2,213,900
Proceed from Lottery Sale 372,680
Bills/ Fees Collection-Agent Point 167,003
Sundry NPSB Txn_ Dispute A/C
.c 524,215 77,850.00
Sundry VISA Txn_ Dispute A/C 17,651 89,100.00
Dividend Payable 9,119,660 32,043,120.00
d
Sundry Deposit-Agent Point 53,984 9,102
ab

Other Sundry Deposits 66,449,369 19,025,959

1,038,131,446 630,520,847
12.3 Maturity Analysis of Interbank Deposit
Repayable on demand
nk

Paybale within 1 month 1,650,000,000 2,900,000,000

Over 1 month but within 3 months 1,450,000,000 750,000,000
Over 3 months but within 6 months -
la

Over 6 months but within 1 year -

Over 1 year but within 5 years -
Over 5 years but within 10 years -
Over 10 years -
3,100,000,000 3,650,000,000
12.4 Maturity Analysis of Other Deposit
Repayable on demand 1,417,061,559 3,293,269,990
Paybale within 1 month 7,677,949,481 3,230,659,532
Over 1 month but within 3 months 9,519,561,208 9,122,908,417
Over 3 months but within 6 months 5,794,358,322 5,829,836,888
Over 6 months but within 1 year 6,603,882,996 5,972,783,908
Over 1 year but within 5 years 8,572,112,559 8,406,879,657
Over 5 years but within 10 years 2,541,670,112 4,011,109,566
Over 10 years
42,126,596,236 39,867,447,957
Note: No unclaimed deposit above 10 years as of 31 December 2017 retained with NRBC Bank.

174 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka

12.5 Demand and Time Deposits

A. Demand Deposits
Current Accounts and Other Accounts 1,937,942,162 1,853,927,154
Savings Deposits (9%) 260,289,204 210,093,295
Sundry Deposit 1,038,131,446 630,520,847
Foreign Currency Deposit 48,314,456 30,658,028
Deposit Under Q-Cash 1,507,550 1,633,855
Bills Payable 1,879,550,103 2,754,668,268
5,165,734,922 5,481,501,447
B. Time Deposits

Savings Deposits (91%) 2,631,813,064 2,124,276,653

om
Short Notice Deposits 4,487,139,751 3,368,085,124
Fixed Deposits 20,466,604,558 23,807,188,850
Deposit Under Schemes 12,475,303,942 9,437,640,810
40,060,861,315 38,737,191,438
Total Demand & Time Deposits 45,226,596,236 44,218,692,884
.c
13 Other Liabilities
d
Accumulated Provision against unclassified Loans and Advances (Note 13.1) 372,223,432 370,493,774
Accumulated Provision against Classified Loans and Advances (Note 13.2) 461,309,384 58,650,757
ab

Accumulated Provision against Off Balance Sheet (OBS) items (Note 13.4) 165,914,312 129,349,471
Paybale to Recognized NRBC Bank Employees' Gratuity Fund (Note 13.5) - 26,700,000
Accrued Interest Payable (Note 13.6) 458,821,426 369,041,907
nk

Coupon Interest Payable 14,211,377

Current Income Tax Payable (Note 13.7) 1,437,390,036 790,507,881
Interest Suspense of classified Loans & Adavnces (Note 13.8) 82,035,207 35,843,126
Payable/Provision for Incentive Bonus-Employees 88,418,558 90,848,068
la

Provision for Office Rent 1,869,340 20,977,660

Provision for Telephone Bill-Office 44,558 61,273
Provision for Telephone Bill-Residence - 711
Provision for Power and Electricity Expense 617,230 643,744
Provision for Printing Stationary 50,000 -
Provision for Other Expenditure 1,250 -
Provision for Wasa, Gas and Sewerage Bill 6,500 4,000
Provision for Postage 1,200 1,200
Provision for diminution against Quoted Company Share & Stock - 2,595,275
Payable/Provision for Ex-gratia-Security and Cleaning support Staff 20,000,000 -
FC Held Against BTB Bills, EDF Loan and Others 1,410,054,838 929,964,474
Audit Fees payable 345,000 287,500
Lease Payable for Lease Hold Property (Note 13.9) 5,601,368 11,906,911
Inter Branch General Account (IBGA) Credit Balance (Note 13.10) 97,336 29,092
4,588,431,981 2,952,162,327

175
 Annual Report 2017

At Dec 31, 2017 At Dec 31, 2016

Taka Taka

13.1 Provision against Unclassified Loans & Advances and Lease/Investments

Standard including Staff loan 362,053,192 360,420,792

Special Mentioned Account (SMA) 10,170,240 10,072,982
372,223,432 370,493,774

13.2 Provision against Classified of Loans & Advances and Lease/Investments

Substandard 20,746,905 3,902,199

Doubtful 7,537,802 7,049,080
Bad/Loss 433,024,677 47,699,479
461,309,384 58,650,757

om
13.3 Movement of Provision against Classified Loans and Advances

The movement in specific provision for Bad and Doubtful Debts

Provision held at the beginning of the period 58,650,757 4,766,783
.c
Fully provisioned Depreciated/written off loan during the period (-) - -
Recovery of amounts previously Depreciated /written off Loan (+) - -
d
Special provision kept for the period (+) 402,658,627 53,883,974
Transferred to general provision of Unclassified Loans (-) - -
ab

Transfer from general reserve (+)

Recoveries and such provision which are no longer required (-) - -
Net charge to Profit and Loss Statement (+) - -
nk

Total Provision held as on 31 December 2017 461,309,384 58,650,757

13.4 Accumulated Provision against Off Balance Sheet (OBS) items

la

Provision held at the beginning of the period 129,349,471 86,517,544

Less : Transferred to general reserve - -
Add: Provision made during the period 36,564,842 42,831,926
Less: Adjustment during the period - -
Total Provision held as on 31 December 2017 165,914,312 129,349,471

13.5 Recognized NRBC Bank Employees' Gratuity Fund

Opening Balance 26,700,000 15,000,000

Add: Contribution made by Bank during the year 19,300,000 40,700,000
Less: Release from Bank to the Fund 46,000,000 29,000,000
Closing Balance - 26,700,000

Note: National Board of Revenue approved and recognized “NRB Commercial Bank Limited Employees’ Gratuity Fund”
on 21 September 2014 , (Ref:08.01.0000.03502.0021.2014/322) as per clause 2, 3, 4 of Part-C of First Schedule, Income
Tax Ordinance 1984. “The Trusty” will manage the fund and settle the liabilities of employees.

176 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka

13.6 Accrued Interest Payable

Interest Payable on SB A/C - (22)

Interest Payable of FDR-Day basis 4,008,307 9,850,458
Interest Payable of FDR-1 month 323,832 316,587
Interest Payable of FDR-3 months 67,359,304 87,833,979
Interest Payable of FDR-6 months 83,495,850 62,985,191
Interest Payable of FDR-12 months & above 226,321,987 161,612,205
Interest Payable on Priority Deposit Scheme 39,096,056 32,259,844.10
Interest Payable on borrowing from Bangladesh Bank 13,681,283 3,037,695
Interest Payable on borrowing from Other Banks & FIs 23,382,639 10,963,888.88
Interest Payable on Repo borrowing from Other Banks & FIs 574,114 -
Interest Payable on borrowing from Call Money and Short Notice 578,056 182,083
458,821,426 369,041,907

om
13.7 Current Income Tax Payable
Adjusted Opening Balance 790,507,881 332,251,584
Add: Provision made during the Year (Note: 38) 646,882,155 458,256,297
Less: Payment - -
1,437,390,036 790,507,881
13.8 Movement of Interest Suspense Account
d .c
Opening Balance 35,843,126 2,089,004.33
Amount of Interest Transferred/credited as suspended in the Year (+) 161,924,635 206,692,218.93
ab

Amount of suspended interest Recovered during the year (-) 112,385,974 172,901,120.73
Amount of suspended interest depreciated/Waiver during the year (-) 3,346,580 36,976.81
Closing Balance 82,035,207 35,843,126
nk

13.9 Lease Payable for Financial Lease (Jamuna Bank Limited, Foreign Exchange Branch)

In Compliance with BAS-17, following disclosure are given below

regarding minimum lease payment:
la

i. Not later than one Year 5,601,368 6,298,190

ii. Later than one year and not later than five Year - 5,608,721
iii. Later than five year - -
5,601,368 11,906,911

13.10 Inter Branch General Account (IBGA) Balance

No. of Entry
Inter Branch General Account Credit Balance 5 98,936 29,842
Inter Branch General Account Debit Balance 1 1,600 750
97,336 29,092

13.a Consolidated Other liabilities

NRBC Bank Limited 4,588,431,981 2,952,162,327

NRBC Bank Securities Limited 14,050,202 33,108,561
4,602,482,183 2,985,270,888
Less: Inter company transaction 1,084,964 1,613,204
4,601,397,219 2,983,657,684

177
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At Dec 31, 2017 At Dec 31, 2016

Taka Taka

14 Share Capital
14.1 Authorized Capital
100,00,00,000 ordinary shares of Taka 10 each 10,000,000,000 10,000,000,000
14.2 Issued, Subscribed and Paid-up-Capital
490,000,146 ordinary shares of Taka 10 each issued for cash 4,900,001,460 4,579,440,770
14.3 Movement of Paid-up-Capital
4,579,440,770 4,446,059,000
Opening Balance 320,560,690 133,381,770
Addition during the Year by issuing Stock Dividend 4,900,001,460 4,579,440,770
14.4 Particulars of Share Capital

om
Shareholding
Particulars
In Number In Percentage
Sponsors/Promoters 490,000,146
Financial Institutions - -
Others - -
Total
.c 490,000,146 100%
14.5 Name of the Directors and their shareholdings
d
No of
SL Name of the Directors Status
Shareholding
ab

1 Mr. Tamal S.M.Parvez Chairman 22,049,714

2 Mr. Mohammad Shahid Islam Vice Chairman 22,042,000
3 Engr. Farasath Ali Director 22,042,110
nk

4 Dr. Toufique Rahman Chowdhury Director 11,021,000

5 Mr. ABM Abdul Mannan Director 33,518,828
6 Mr. Mohammed Oliur Rahman Director 40,462,331
7 Mr. Mohammed Enayet Hossain Director 27,646,178
la

8 Mr. Md. Amir Hossain Director 22,072,969

9 Mrs. Kamrun Nahar Sakhi Director 14,663,220
10 Mr. Abu Bakr Chowdhury Director 22,042,000
11 Mr. Loquit Ullah Director 18,810,532
12 Mr. Rafikul Islam Mia Arzoo Director 22,493,861
13 Mr. Mohammed Nazim Director 22,052,249
14 Engr. Syed Munsif Ali Director 19,760,653
15 Mr. Mohammed Adnan Imam Director 11,034,004
16 Dr. Nuran Nabi Director 2,204,200
17 Mr. Mohammed Manzurul Islam Director 1,117,970

14.6 Capital to Risk Weighted Assets Ratio (CRAR) - according to BASEL III
In terms of section 13(2) of Banking Companies Act, 1991 and Bangladesh Bank BRPD Circular No. 07 & 18 dated 31
March 2014 and 21 December 2014 respectively, required capital based on consolidated RWA of the Bank at the close
of business on 31 December 2017 is Tk. 4,992.27 crore as against available Tier-1 Capital of Tk. 623.54 crore and Tier-
2 of Tk. 54.51 crore i.e, Total Tk. 678.06 crore only. Surplus Capital/Equity Tk. 116.42 crore only against requirement.

178 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
Details of the Capital of the Bank are as under:

14.7 Core Capital/Common Equity-Tier I (Going Conrcern Capital) Amt in Crore Amt in Crore
Fully Paid-up-Capital 490.00 457.94
Non-Repayable Share Premium Account
Statutory Reserve 73.79 46.28
General Reserve - -
Retained Earnings 73.05 62.79
Dividend Equalization Account - -
Non-Controlling Interest in Subsidiaries 4.23 4.07
Acturial Gain/Loss (Acturial Gain/Loss in Books in Bangladesh for Foreign Bank - -
Others (If any Items appoved by Bangladesh Bank) - -
Regulatory Adjustment from Tier-1 (Core Capital )

om
Shortfall in provisions required against Non Performing Loan (NPLs) - -
Shortfall in provisions required against Investment in Shares - -
Remaining deficit on account of revaluation of investments in securities - -
after netting off from any other surplus on the securities.
Goodwill and all other Intangible Assets - -
Deferred Tax Assets (DTA)
.c 17.53 2.05
Defined benefit pension fund assets - -
Gain on sale related to securitization transaction - -
d
Investment in own CET-1 Instruments/Shares (As per BASEL III Guideline) - -
ab

Reciprocal Crossholding in the CET-1 Capital of Banking Financial and - -

Insurance Entities
Any investment exceeding the approved limit under section 26 ka(1) - -
of Banking Companies Act, 1991, Others if any
nk

Investment in Subsidiaries which are not consolidated - -

Others, if any -
Total Admissible Tier-I Capital 623.54 569.03
la

Additional Tier-1 Capital

Non-Cumulative irredeemable Preference Share - -
Instruments issued by the Bank that meet the Qualifying criteria of addl
Tier-1 (AT-1) as per BASEL III - -
Any Other item specifically allowed by BB from time to time for inclusion in AT-1 - -
Others (if any items approved by BB) - -

Regulatory Adjustment from Tier-1

- -
Investment in own AT-1 Instrument/Share as per BASEL III - -
Reciprocal Crossholding in the AT-1 Capital of Banking Financial and
Insurance Entities - -
Others, if any - -
Total Additional Tier-1 Capital Available 624.73 569.03

Maximum Limit of AT-1 (AT -1 Capital can be maximum upto 1.5% of the 207.83 189.66
total RWA or 33.33% of CET1, one word is higher)
Excess amount over Maximum limit of AT-1 - -

179
 Annual Report 2017

At Dec 31, 2017 At Dec 31, 2016

Taka Taka
Total Admissible Additional Tier-1 Capital 623.54 -
Tier -2 Capital
General Provision (Inclusion in Tier -2 will be limited Maximum 1.25 53.81 49.98
Percentage Point of Credit RWA under standiardized Approach
All other Preference share - -
Subordinate Debt/Instruments issued by Bank that meet the qualifying - -
criteria for Tier-2 as Basel III Guideline
Non-Controlling Interest i.e. Tier 2 issued by consolidated subsidiary to - -
the third Parties
Revaluation Reserves as on 31st December, 2014 (50 % of Fixed Assets & 1.75 1.75
Securities and 10% of Equities)
Others (if any items approved by Bangladesh Bank) - -
55.56 51.73

om
Regulatory Adjustment from Tier-2
Revaluation Reserves for Fixed Assets, Securities and Equities Securities 1.05 0.70
(Phase in deductions as per Basel III. i.e. 60% for 2017)
Investment in own T-2 Instrument/Share as per BASEL III - -
Reciprocal Crossholding in the T-2 Capital of Banking Financial and - -
Insurance Entities
.c
Any investment exceeding the approved limit under section 26 ka(1) - -
d
of Banking Companies Act, 1991, Others if any (50% of Investment)
Investment in Subsidiaries which are not consolidated (50% of Investment) - -
ab

Others, if any - -
1.05 0.70
Total Tier -2 Capital Available 54.51 51.03
nk

Maximum Limit of Tier-2 Capital (Maximum up to 4% of the Total RWA or 553.01 505.81
88.89% of CET1, which one is higher)
Excess amount over Maximum Limit of T-2 -
Total Admissible Tier-II Capital 54.51 51.03
la

Total Regulatory Capital 678.06 620.06

A. Total Assets including off-Balance Sheet items 7,412.08 6,655.40
B. Total Risk-Weighted Assets (RWA) 4,992.27 4,594.21
C. Required capital based on Risk Weighted Assets (11.25% of Total RWA for 561.63 488.13
2017)
D. Capital Surplus / (Shortfall) 116.42 131.93
E. Capital to Risk Weighted Assets Ratio (CRAR) (%) 13.58% 13.50%

Note: Basis of Calculation of Risk Weighted Assets are shown in the

Annexure-I

180 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
Capital Requirement (Percentage of Capital on Risk-Weighted Assets)
2017 2016
Required Held Required Held
Core Capital (Tier - I) 6.00% 12.49% 5.50% 12.39%
Supplementary Capital (Tier II) 1.09% 1.11%
Total Capital to Risk Weighted Assets Ratio (CRAR) 13.58% 13.50%
Minimum Total Capital plus Capital Conservation Buffer for 2017 11.25% 10.625%
Excess of CRAR for 2017 2.33% 2.87%

Note : Capital to Risk Weighted Assets Ratio (CRAR) has been calculated as per Basel-III, BRPD Circular No- 18 dated 21 December 2014
15 Statutory Reserve
Opening Balance at the beginning of the period 462,771,400 203,221,865
Add: Addition during the year 275,094,285 259,549,535

om
Add./less Adjustment for Foreign Exchange Rate Fluctuation - -
Closing Balance at the end of the period 737,865,685 462,771,400
* As per Section-24 of Banking Companies Act 1991, 20% of Pre Tax Profit has been transferred to statutory reserve Account
16 Reserve and Fund
General Reserve (Note 16.1)
.c - -
Assets Revaluation Reserve (Note 16.2) - -
d
Investment Revaluation Reserve (Note 16.3) 82,723 17,988,187
Foreign Currency Translation Gain/ (Loss) (Note 16.4) - -
ab

82,723 17,988,187
16.1 General Reserve
Opening Balance at the beginning of the period - -
Add: Addition during the year (+) - -
nk

Closing Balance at the end of the period - -

Note: As per law, Bonus Share/ Cash Dividend may be issued out of surplus of the profit of the year. If there is any short
fall, that may be covered from General Reserve Account as per approval of Board of Directors of the Bank.
la

16.2 Assets Revaluation Reserve

Opening Balance at the beginning of the period - -
Add: Addition during the year (+) - -
Less : Adjustment during the year (-) -
Closing Balance at the end of the period - -
16.3 Investment Revaluation Reserve
Revaluation Reserve for HFT Securities
Opening Balance at the beginning of the period 17,937,571 44,424,299
Add: Addition during the year (+) - -
Less : Adjustment during the year (-) 17,937,571 26,486,729
Closing Balance at the end of the period - 17,937,571
Revaluation Reserve for HTM Securities
Opening Balance at the beginning of the period 50,617 24,619
Add: Addition during the year (+) 32,106 25,997
Less : Adjustment during the year (-) - -
Closing Balance at the end of the period 82,723 50,617

181
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At Dec 31, 2017 At Dec 31, 2016

Taka Taka

16.4 Foreign Currency Translation Gain/(Loss)

Opening Balance at the beginning of the period - -
Add: Addition during the year (+) - -
Closing Balance at the end of the period - -

Note: Bank has no exposure Foreign Currency demoniated business in

abroad
16a Consolidated Other Reserve

NRBC Bank Limited 82,723 17,988,187

NRBC Bank Securities Limited -
82,723 17,988,187

om
17 Retained Earnings/Movement of Profit and Loss Account
Restated Opening Balance 621,789,433 420,131,981
Add: Post-Tax Profit during the period (+) 912,289,449 861,352,297
Less: Transfer to Statutory Reserve (-) 275,094,285 259,549,535
Less: Cash Dividend
.c (-) 228,972,039 266,763,540
Less: Stock Dividend (-) 320,560,690 133,381,770
Less: Payment of the Fraction of share to shareholder (-) 164 -
d
Less: Transfer to General Reserve (-) - -
Add/(Less): Foreign Exchange Translation Loss - -
ab

709,451,705 621,789,433
17a Retained Earnings/Movement of Profit and Loss Account

NRBC Bank Limited 709,451,705 621,789,433

nk

NRBC Bank Securities Limited 23,395,489 6,746,124

732,847,194 628,535,557
Less: Non-Controlling Intrest 2,339,549 674,612
la

730,507,645 627,860,945
17b Non-Controlling Interest

NRBC Bank Securities Limited:

Equity Capital of Non-Controlling Interest 40,000,000 40,000,000
Add: Retained Earning/(Loss) 2,339,549 674,612
42,339,549 40,674,612

18 Contingent Liabilities 16,591,431,161 12,934,947,050

18.1 Acceptances and Endorsements

Accepted Bills Against BTB LC - Local 1,755,396,691 870,329,787
Accepted Bills Against BTB LC - Foreign 793,123,479 546,930,246
Bankers Liability against EDF Fund - 144,051,000
Accepted Bills Against BTB LC EPZ 77,698,523 70,529,059
Accepted Bills Against LC Cash 1,950,107,810 2,975,016,048
4,576,326,503 4,606,856,139

182 NRB Commercial Bank Limited

 At Dec 31, 2017 At Dec 31, 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
18.2 Letters of Guarantee

Money for which the Bank is contingently liable in respect of guarantees to the -
Directors - -
Government - -
Banks and other Financial Institutions - -
Others (Note 18.2a) 3,252,602,767 2,509,275,340
3,252,602,767 2,509,275,340
18.2a Letters of Guarantee -Others

Shipping Guarantee against Cash LC-Sight 87,576,774 37,169,092

Bid Bond Local 125,737,344 347,933,417
Performance Guarantee Local 2,248,607,120 1,926,225,751
Advance Payment Guarantee Local 781,332,021 180,848,826

om
Shipping Guarantee agst. BTB LC 9,349,507 11,077,254
Performance Guarantee Foreign - 6,021,000
3,252,602,767 2,509,275,340

18.3 Irrevocable Letters of Credit 5,383,383,733 3,197,789,274

.c
18.4 Bills For Collection 3,379,118,158 2,621,026,297
d
ab

19 Income statement

2017 2016
Income - Taka Taka
nk

Interest, discount and similar income (Note-19.1) 5,521,997,840 4,958,419,925

Dividend income (Note-22) 22,274,221 13,805,960
Fees, commission and brokerage (Note-23) 531,244,820 345,181,715
la

Gains less losses arising from dealing in securities (19.2) 317,831,776 328,473,329
Gains less losses arising from investment securities - -
Gains less losses arising from dealing in foreign currencies - -
Income from non-banking assets - -
Other operating income (Note-24) 147,298,637 140,382,780
Profit less losses on interest rate changes -
6,540,647,294 5,786,263,709
Expenses -
Interest / profit paid on deposits, borrowings, etc. (Note-21) 3,147,979,977 2,875,955,085
Losses on loans, advances and lease/ investments - -
Administrative expenses (Note-19.3) 1,180,111,858 1,035,960,570
Other operating expenses (Note-35) 251,281,551 224,259,469
Depreciation on banking assets (Note-34) 147,444,633 122,714,941
4,726,818,019 4,258,890,065
Operating Profit of the Bank 1,813,829,275 1,527,373,644

183
 Annual Report 2017

2017 2016
Taka Taka
19.1 Interest, discount and similar income
Interest Income (Note 20) 4,712,898,016 3,905,356,585
Interest on Treasury Bills (Note:22) 9,964,343 5,602,409.48
Interest Income Money at Call (Note:22) 313,083 1,032,666.69
Interest on Treasury Bonds (Note:22) 606,756,250 833,442,654.79
Interest on Coupon Bonds (Note:22) 191,857,213 212,985,609.13
Interest on Reverse Repo (Note:22) 55,137 -
Interest on Bangladesh Bank Bill (Note:22) 113,800 -
Gain on Sale of Assets, Properties and Others 39,998 -
5,521,997,840 4,958,419,925
19.2 Gains/(Losses) arising from dealing in securities
Gain on Sale of Shares and Securities listed with DSE/CSE (Note:22) 92,990,634 142,044,716
Gain on Sale of Bonus Shares listed with DSE/CSE (Note:22) 5,976,146 19,105,560

om
Gain on Sale of Approve Govt. Securities (Note : 22) 306,016,747 253,704,825
404,983,526 414,855,100
Less : losses arising from dealing in securities 87,151,750 86,381,771
317,831,776 328,473,329
19.3 Administrative Expenses
.c
Salaries and Allowances (Note : 25) 769,553,663 688,436,422
d
Rent, Taxes, Insurance, Electricity, etc. (Note : 26) 255,397,600 226,346,767
Regulatory and Legal expenses (Note : 27) 7,783,558 7,570,693
ab

Postage, Stamps, Telecommunication, etc (Note : 28) 23,934,854 23,441,285

Stationery, Printing, Advertisement, etc (Note : 29) 48,697,897 33,098,182
Chief Executive's salary and fees (Note : 30) 13,849,758 12,905,644
nk

Directors' Fees & Meeting Expenses (Note : 31) 19,405,389 10,734,502

Auditors' Fees (Note : 32) 345,000 287,500
Repairs of Bank's Assets (Note : 34) 41,144,139 33,139,574
1,180,111,858 1,035,960,570
la

20 Interest Income of the Bank

Interest on Loans and Advances

Loans and Advances 4,461,213,073 3,526,218,718

Bills Purchased and Discounted 11,687,138 119,854,797
4,472,900,211 3,646,073,515
Interest on

Balance with Bangladesh Bank - 300.00

Balance with Foreign Banks 967,943 -
Balance with Banks and FIs 239,029,863 259,282,770
239,997,805 259,283,070

4,712,898,016 3,905,356,585

184 NRB Commercial Bank Limited

 2017 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
20a Consolidated Interest Income
NRBC Bank Limited 4,712,898,016 3,905,356,585
NRBC Bank Securities Limited 5,955,684 7,846,790
4,718,853,700 3,913,203,375
Less: Inter company transaction 1,036,861 7,812,996
4,717,816,839 3,905,390,379
21 Interest Paid on Deposits and Borrowings, etc.
Interest Paid on Deposits (Note 21.1) 2,732,224,250 2,354,401,630
Interest Paid on Borrowings (Note 21.2) 415,755,727 521,553,455
3,147,979,977 2,875,955,085
21a Consolidated Interest Paid on Deposits and Borrowings, etc.
NRBC Bank Limited 3,147,979,977 2,875,955,085
NRBC Bank Securities Limited -

om
3,147,979,977 2,875,955,085
Less: Inter company transaction 1,036,861 7,812,996
3,146,943,116 2,868,142,089
21.1 Interest Paid On Deposits .c
Current Account 10,169,441 14,494,298
Interest Paid on Sohoj Sonchoy 35,482,545 0
Savings Account [Customer and Staff] 74,111,340 75,689,259
d
Special Notice Deposits (SND) 185,389,141 112,796,266
Fixed Deposit Receipts 1,303,600,561 1,273,470,790
ab

Deposit under Schemes and Others 1,123,471,221 877,951,017

2,732,224,250 2,354,401,630
21.2 Interest Paid on Borrowings
Interest Paid on Borrowing from Bangladesh Bank(BB) - -
nk

Interest Paid on USD Borrowings from inter bank & BB 757,636 -

Interest Paid on Call Money Borrowing 41,108,250 41,506,000
Interest Paid on REPO Borrowed from Other Banks and FIs 4,409,312 3,964,471
la

Interest on Refinance from Bangladesh Bank 17,713,929 10,105,550.39

Interest Paid on Other Bank Deposit 228,547,014 99,332,639
Rebate on Loan Interest of G. Borrower 121,000.00 -
Interest Paid on Secondary Security Purchased (T-Bond) 123,098,586 366,644,795
415,755,727 521,553,455
22 Investment Income

Interest on Treasury Bills 9,964,343 5,602,409

Interest Income Money at Call 313,083 1,032,667
Interest on Treasury Bonds 606,756,250 833,442,655
Interest on Coupon Bonds 191,857,213 212,985,609
Interest on Reverse Repo 55,137 -
Interest on Bangladesh Bank Bill 113,800 -
Dividend Income 22,274,221 13,805,960
Gain on Sale of Shares and Securities listed with DSE/CSE 92,990,634 142,044,716
Gain on Sale of Bonus Shares listed with DSE/CSE (Note : 22.1) 5,976,146 19,105,560
Gain on Sale of Assets, Properties and Others 39,998 -
Gain on Sale of Approved Govt. Securities 306,016,747 253,704,825
1,236,357,571 1,481,724,400

185
 Annual Report 2017 2017 2016
Taka Taka

22.1 Gain on Sale of Bonus Shares listed with DSE/CSE

Quoted Share listed with % of Bonus
No. of Bonus Share Avg. Unit Sale Price Total Value
DSE/CSE Share Entitled
Square Pharma 10% 16,600 263.05 4,366,644
Mercantile Bank Limited 5% 88,305 18.23 1,609,502
Total 104,905 5,976,146

2017 2016
22a Consolidated Investment Income Taka Taka
NRBC Bank Limited 1,236,357,571 1,481,724,400
NRBC Bank Securities Limited 22,846,382 7,215,106
1,259,203,953 1,488,939,506
Less: Inter company transaction -
1,259,203,953 1,488,939,506
23 Commission, Exchange and Brokerage

om
Commission on Back to Back Letter of Credit 100,196,032 69,532,696
Commission on Bank Guarantee 41,164,523 28,223,482
Commission on Export Bills 2,645,092 1,793,481
Commission on Back to Back Accepted Bills 65,030,163 42,378,857
Commission on Clean Bill 69,718 54,033
Commission on Remittance
.c 4,205,283 2,039,143
Commission on Sale of FC Cash 65,011 87,570
Commission from Other Services 4,930 5,726
d
Underwriting Commission for dealing with Govt. Securities 1,462,333 1,411,485
Commission on Agent Banking Services 6,733 -
ab

Commission on Merchant Banking Services 200 -

Exchange gain 316,394,801 199,655,243
531,244,820 345,181,715
Note: Commission income arises on service provided by the Bank which is recognized on cash basis. Commission
nk

charged on the Customer on Letter of Credit and letter of Guarantee are credited to income at the time of effecting the
transaction.
23a Consolidated Commission, Exchange and Brokerage
la

NRBC Bank Limited 531,244,820 345,181,715

NRBC Bank Securities Limited 23,999,019 892,632
555,243,838 346,074,348
Less: Inter company transaction 7,500,601 808,358
547,743,237 345,265,990
24 Other Operating Income
Service Charges and Fees 24,701,497 27,685,774
Rental Income 414,000 -
Online Client Services 540,700 -
Income from Card Services 12,935,055 36,286,245
Charges on Trade Finance 90,153,631 62,431,406
Miscellaneous Earnings 18,553,754 13,979,356
147,298,637 140,382,780
24a Consolidated Other Operating Income
NRBC Bank Limited 147,298,637 140,382,780
NRBC Bank Securities Limited 749,299 66,323
148,047,937 140,449,103
Less: Inter company transaction 19,424 43,758
148,028,513 140,405,345
186 NRB Commercial Bank Limited
 2017 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
25 Salaries and Allowances
Basic Salary 252,103,828 220,115,219
Festival Bonus 39,756,800 33,629,000
Yearly incentive Bonus 86,000,000 87,500,000
Contractual Staff Salary/Expense 536,180 3,928,040
Leave Encashment/Retirement/Service benefit on Resignation from bank 9,122,231 15,468,202
Bank Contribution To Recognized NRBC Employees' Provident Fund 23,119,705 18,034,478
Contributed to Recognized NRBC Employees' Gratuity Fund Payment/Expense 19,300,000 40,700,000
Allowances and LFA (Passage for Travel) 339,614,919 269,061,484
769,553,663 688,436,422
25a Consolidated Salaries and Allowances

NRBC Bank Limited 769,553,663 688,436,422

om
NRBC Bank Securities Limited 13,824,595 3,504,458
783,378,258 691,940,880
Less: Inter company transaction - -
783,378,258 691,940,880
26 Rent, Taxes, Insurance, Electricity, etc.
.c
Rent, Rate and Taxes including Trade License/Sign Board Tax/Toll/Parking 195,810,939 177,152,903
Insurance Expenses inluding DMB Inurance to BB (Note : 26.1) 23,508,495 18,576,825
d
Electricity and Utility Expenses (WASA/Water Supply by Div./Purasuva) 36,078,167 30,617,039
255,397,600 226,346,767
ab

26.1 Insurance Expenses inluding DMB Inurance to BB

Deposit Money Insurance to Bangladesh Bank 20,420,244 15,057,935

Central Insurance Policy (Cash in safe, Counter & Transit as well as Fixed Assets) 3,088,251 3,518,890
nk

23,508,495 18,576,825
26a Consolidated Rent, Taxes, Insurance, Electricity, etc.

NRBC Bank Limited 255,397,600 226,346,767

la

NRBC Bank Securities Limited 5,942,734 1,016,191

261,340,334 227,362,958
Less: Inter company transaction -
261,340,334 227,362,958
27 Regulatory and Legal expenses

Notary Public & Power of Attorny alongwith Doc. Collection Fees from Govt. Office 1,141,800 4,412,600
DSE and CDBL Fees 46,189 -
RJSC and SEC Fees 114,714 33,611
Legal and Consultancy fees 6,480,855 3,124,482
7,783,558 7,570,693
27a Consolidated Legal/Preliminary Expense

NRBC Bank Limited 7,783,558 7,570,693

NRBC Bank Securities Limited 65,940 80,336
7,849,498 7,651,029
Less: Inter company transaction - -
7,849,498 7,651,029

187
 Annual Report 2017

2017 2016
Taka Taka
28 Postage, Stamps, Telecommunication, etc
Stamps and Cartridge Cost 210,722 143,710
Govt. Postage & Courier Charges 1,666,251 1,419,046
Mobile/Telephone Charges 5,984,892 4,698,170
Internet, WAN, Radio Link, SWIFT & DDN Charges 16,072,989 17,180,359
23,934,854 23,441,285
28a Consolidated Postage, Stamps, Telecommunication, etc
NRBC Bank Limited 23,934,854 23,441,285
NRBC Bank Securities Limited 753,756 96,152
24,688,610 23,537,437
Less: Inter company transaction -
24,688,610 23,537,437
29 Stationery, Printing, Advertisement, etc

om
Stationery and Printing Expenses 18,728,104 14,648,302
Publicity and Advertisement, etc. 26,188,334 8,764,458
Hoarding & Neon Sign and Misc Advertisement - 7,770
Computer Expenses including Toner, Ribbon, Other Computer Expenses 3,781,459 9,677,653
.c 48,697,897 33,098,182
29a Consolidated Stationery, Printing, Advertisement, etc
d
NRBC Bank Limited 48,697,897 33,098,182
NRBC Bank Securities Limited 1,140,151 157,826
ab

49,838,048 33,256,008
Less: Inter company transaction -
49,838,048 33,256,008
30 Chief Executive's salary and fees
nk

Basic Salary 7,682,258 6,964,516

Festival Bonus 1,300,000 1,200,000
Other Allowance 4,867,500 4,741,128
la

13,849,758 12,905,644
31 Directors' fees & Meeting expenses
Directors’ Fees 2,014,800 1,858,400
Travelling and Haltage 15,292,132 7,375,323
Board Meeting Expenses 2,098,457 1,500,779
19,405,389 10,734,502
Note: Each Director is entitled to get honorium & travelling expenses for attending meeting of the Board of Directors as
per BRPD Circular Letter no. 11 dated 04 October 2015. There were no other financial benefits provided to the Directors
of the Bank.
31a Consolidated Directors' fees & Meeting expenses

NRBC Bank Limited 19,405,389 10,734,502

NRBC Bank Securities Limited 404,150 227,169
19,809,539 10,961,671
Less: Inter company transaction - -
19,809,539 10,961,671

188 NRB Commercial Bank Limited

 2017 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
32 Auditors' Fees
Statutory 345,000 287,500
Others - -
345,000 287,500
32a Consolidated Auditors' fees

NRBC Bank Limited 345,000 287,500

NRBC Bank Securities Limited 50,000 17,250
395,000 304,750
33 Charges on Loan Losses

Loan-written off - -
Interest waived - -

om
34 Depreciation and Repairs of Bank's Assets

Depreciation of Bank’s Assets-Own Assets (a) .c

Land, Building and Construction - -
Furniture & Fixtures 26,845,489 22,595,233
Equipment and Machinery 109,723,146 89,243,710
d
Vehicle 5,450,000 5,450,000
Books 4,674 4,674
ab

142,023,308 117,293,616
Depreciation of Bank's Assets-Leased Assets (b)

Land, Building and Construction - -

nk

Furniture & Fixtures - -

Equipment and Machinery - -
Vehicle 5,421,325 5,421,325
la

5,421,325 5,421,325
Note: Depreciation has been charged from the month of purhased

Repair, Renovation & Maintenance of Bank’s Assets (c)

Repair and Replacement of Land, Building and Construction 25,005 21,680

Repair and Replacement of Furniture and Fixtures 1,886,867 1,519,391
Repair and Replacement of Office Equipment and Machinery 34,609,446 24,328,961
Repair and Replacement of Rented Property 146,331 1,751,586
Connection Fee, Installation & Replacement fee paid to Service Provider 2,059,348 3,461,591
(TNT & Electricity Authority)
Repair, Replacement and servicing of Computer and Software 43,443 43,640
Repair, Replacement and Servicing of Motor Vehicle 2,359,698 1,947,658
Repair, Replacement and Maintenance of Plant 14,000 65,068
41,144,139 33,139,574

Total [a+b+c] 188,588,771 155,854,515

189
 Annual Report 2017

2017 2016
Taka Taka
34a Consolidated Depreciation and Repairs
NRBC Bank Limited 188,588,771 155,854,515
NRBC Bank Securities Limited 1,981,917 605,271
190,570,688 156,459,786
Less: Inter company transaction - -
190,570,688 156,459,786
35 Other Expenses

Bank Charges 1,537,165 1,046,637

Donation/Contribution and Corporate Social Responsibility (CSR) 64,639,484 85,050,800
Car Expenses including Registration, Tax token, Fitness, etc paid to BRTC 3,773,422 3,216,546
Brokerage/Commission to Bank/FIs/Share Trading Co. 3,731,220 809,395

om
Training including Training Fee and Honarium 2,762,985 2,803,189
Internship Allowances to Universities Graduate 721,943 572,556
Scholarship, Reward and Recognition 150,000 102,500
Salary of Security and Cleaning support Staff .c 90,521,669 70,447,591
Exgratia of Security and Cleaning support Staff 25,709,756 5,185,260
Annual Subscription/Membership Fees-Regulatory/Govt./Institutions/Others 5,446,482 2,744,644
Entertainment and parties 7,156,574 5,960,883
d
Travelling Expenses (Inland & Foreign) for official purpose 7,233,995 4,863,877
Conveyance, Labor, Carriage and Freight Expense 2,657,887 2,278,181
ab

Development and Publicity 7,635,192 6,951,506

Liveries and Uniforms payment /Expense for Support Satff 1,351,917 1,267,385
First Aid/Medical Expenses 208,918 191,170
nk

Newspaper, Magazine and Periodicals 511,567 429,678

Loss on Sale of Share listed with Stock Exchange 11,217,744 0
Loss on Sale of Govt. Securities: Treasury Bills and Bonds 11,082,799 13,742,354
Interest Expense on Leased Properties 1,064,737 1,795,223
la

Card Division Fees, Charges and Expenses 11,613,764 8,885,656

Others Expenses* 12,576,959 19,136,975
Agent Banking Charges and Expenses 275,916 519,816.86
Re-valuation Loss on Govt. Securities:Treasury Bills and Bonds 44,851,207 12,639,417
338,433,302 310,641,240

*Other Expenses includes NID Verification Charge, Discomfort allowance, AGM Expense, Professional Expenses, Cash
Remittance Charge, Nursery & Planation, Laundry & Cleaning, Photocopy & Photograph, etc.

35a Consolidated Other Expenses

NRBC Bank Limited 338,433,302 310,641,240
NRBC Bank Securities Limited 1,294,893 166,342
339,728,195 310,807,582
Less: Inter company transaction 7,520,026 852,116
332,208,169 309,955,466

190 NRB Commercial Bank Limited

 2017 2016

Independent Auditors’ Report To The Shareholders

Taka Taka
36 Provision against loans and advances
i. Provision against unclassified Loans and Advances
Provision for Unclassified Loans and Advances inluding Staff Loan 1,632,400 124,462,679
Provision for SMA Loans and Advances 97,258 8,447,388
1,729,657 132,910,068
ii. Provision against classified Loans and Sdvances
Provision for Sub-Standard Loans and Advances 16,844,707 52,241
Provision for Doubtful Loans and Advances 488,722 6,132,254
Provision for Bad & Loss of Loans and Advances 385,325,199 47,699,479
402,658,627 53,883,974
404,388,285 186,794,042
36a Consolidated provision against loans and advances

om
NRBC Bank Limited 404,388,285 186,794,042
NRBC Bank Securities Limited - -
404,388,285 186,794,042
37 Provision for Diminution in Value of Investments
.c
Provision for Diminution in Value Quoted Company Share & Stock (2,595,275) -
Provision for Diminution in Value Unqoted Share & Stock - -
Provision for Other Assets
d
(2,595,275) -
ab

37a Consolidated Provision for Diminution in Value of Investments

NRBC Bank Limited (2,595,275) -
NRBC Bank Securities Limited 5,741,327
3,146,052 -
nk

38 Other Provisions
Provision required on Off-Balance Sheet Exposures 36,564,842 42,831,926
Others - -
la

36,564,842 42,831,926
38a Consolidated Other Provisions
NRBC Bank Limited 36,564,842 42,831,926
NRBC Bank Securities Limited -
36,564,842 42,831,926
39 Current Tax Expense /Payable
1 Taxable Income 1,601,784,926 1,103,226,584
2 Current Tax Payable @40% before considering extra ordinary items 640,713,970 441,290,634
3 Less: 10% Tax exemption/rebate on actual expenditure of CSR [SRO 229/2011] (6,463,948) -
4 Add: Dividend Income Tax [20% Tax as per Paripatra 2017-18] 4,454,844 2,761,192
5 Add: Gain on Sale of Shares and Debentures [10% Tax as per SRO no.196/2015] 8,177,289 14,204,472
6 Current Tax Payable after considering extra ordinary items 646,882,155 458,256,297
7 Defferred Tax Assets for the period (183,700,181) (21,860,918)
8 Tax Expense for the Period 463,181,974 436,395,379

191
 Annual Report 2017

2017 2016
Taka Taka
39a Consolidated Current Tax Expense
NRBC Bank Limited 463,181,974 436,395,379
NRBC Bank Securities Limited 5,701,555 2,470,184
468,883,529 438,865,563
39b Consolidated Current Tax Payable
NRBC Bank Limited 646,882,155 458,256,297
NRBC Bank Securities Limited 5,516,686 2,102,515
652,398,841 460,358,812
40 Deferred Tax (Income)/Expense
Carrying Amt Tax Base Temporary Difference
Fixed Assets 477,921,127 490,406,232 (12,485,105) 39,339,936
Total deductitble Temporary Difference at Asset side
(12,485,105) 39,339,936

om
Provision for classified loan 461,309,384 - (461,309,384) 53,883,974
Total Deductible Temporary Difference at Liabilty side (461,309,384) 53,883,974
Net Taxable deducteble Temporary Difference [i.e. Tax will be paid in future period] (473,794,489) (14,544,037)
Tax Rate @40% i.e defferred Tax Liabilty (189,517,796) (5,817,615)
Less : Defferred Tax Income as at 2016
.c (5,817,615) 16,043,303
Deffered Tax Income for the year (183,700,181) (21,860,918)
d
40a Consolidated Deferred Tax (Income)/ Expense
ab

NRBC Bank Limited (183,700,181) (21,860,918)

NRBC Bank Securities Limited 184,869 367,669
(183,515,311) (21,493,249)
nk

41 Earning Per Share

Profit after Taxation 912,289,449 861,352,297

la

Number of Ordinary Shares outstanding 490,000,146 457,944,077

Earnings Per Share 1.86 1.88

41a Consolidated Earnings Per Share (EPS)

Net Profit attributable to the shareholders of parent company 927,273,878 868,264,003

Number of Ordinary Shares outstanding 490,000,146 457,944,077
Earnings Per Share* 1.89 1.90

*Earnings Per Share (EPS) has been computed by dividing the basic earnings by the number of ordinary shares
outstanding as of 31 December 2017 in terms of Bangladesh Accounting Standard (BAS)-33.

192 NRB Commercial Bank Limited

 2017 2016

Independent Auditors’ Report To The Shareholders

Taka Taka

42 Receipts from Other Operating Activities

Interest on Treasury Bills 9,964,343 5,602,409
Interest on Money at call 313,083 1,032,667
Interest on Treasury Bonds 592,399,643 814,605,601
Interest on Coupon Bonds 197,525,000 216,395,342
Interest on Reverse Repo 55,137 -
Gain on Sale of Shares and Securities listed with DSE/CSE 92,990,634 142,044,716
Gain on Sale of Bonus Shares listed with DSE/CSE 5,976,146 19,105,560
Gain on Sale of Approve Govt. Securities 306,016,747 253,704,825
Interest on Bangladesh Bank Bill 113,800
Gain on Sale of Assets, Properties and Others 39,998

om
Service Charges and Fees 24,701,497 27,685,774
Rental Income 414,000 -
Online Client Services 540,700 -
Income from Card Services 12,935,055 36,286,245
Charges on Trade Finance
.c 90,153,631 62,431,406
Miscellaneous Earnings 18,553,754 13,979,356
d
1,352,693,168 1,592,873,899
42a Consolidated Receipts from other Operating Activities
ab

NRBC Bank Limited 1,352,693,168 1,592,873,899

NRBC Bank Securities Limited 15,914,343 66,323
1,368,607,511 1,592,940,222
nk

Less: Cash Increase/(Decrease) through Intercompany Transaction -

1,368,607,511 1,592,940,222
43 Payments for Other Operating Activities
la

Rent, Taxes, Insurance, Electricity, etc 275,213,295 214,780,718

Regulatory and Legal expenses 7,783,558 7,570,693
Audit Fees 287,500 300,000
Postage, Stamps, Telecommunication, etc 23,886,826 24,239,524
Directors' fees & Meeting Expenses 19,405,389 10,734,502
Repair, Repalcement, Renovation & Maintenance of Bank's Assets 41,144,139 33,139,574
Payment for Donation/Contribution/CSR and Subscription 109,475,358 42,042,419
Other Expenses 253,792,568 192,008,821
730,988,632 524,816,251
43a Consolidated Payments for Other Operating Activities

NRBC Bank Limited 730,988,632 524,816,251

NRBC Bank Securities Limited 1,789,775 483,247
732,778,407 525,299,498
Less: Cash Increase/(Decrease) through Intercompany Transaction (631,926) 36,826
733,410,333 525,262,672

193
 Annual Report 2017

2017 2016
Taka Taka

44 Payment for /(Receive) of Other Assets

Advance Security Deposit 222,000 1,252,770

Suspense Account 51,783,611 (39,381,916)
Advance office Rent (50,435,069) (13,261,596)
Share Sale proceed Receivable (545,030) 545,030
Inter Branch General Account Balance (Dr Balance) - (31,764)
1,025,513 (50,877,477)
44a Consolidated Payment for /(Receive) of Other Assets

om
NRBC Bank Limited 1,025,513 (50,877,477)
NRBC Bank Securities Limited (28,237,889) 38,156,329
(27,212,376) (12,721,148)
Less: Cash Increase/(Decrease) through Intercompany Transaction - -
.c
(27,212,376) (12,721,148)
45 (Payment)/Receive of Other Liabilities
d
ab

FC Held Against BTB Bills, EDF Loan and Others 480,090,364 450,118,454.09
Inter Branch General Account Balance (Cr Balance) 68,244
Lease Payable for Lease Hold Property (6,305,543) (5,627,245)
nk

473,853,065 444,491,209

45a (Payment)/Receive of Other Liabilities

la

NRBC Bank Limited 473,853,065 444,491,209

NRBC Bank Securities Limited 30,065,000
473,853,065 474,556,209
Less: Cash Increase/(Decrease) through Intercompany Transaction -
473,853,065 474,556,209
46 (Purchase)/ Sale of Government Securities
Treasury Bills-HFT 1,503,994,553 (607,221,083)
Treasury Bills-HTM (1,153,724,191) (508,518,847)
Adjustment of Revaluation (Gain)/Loss on Treasury Bills which is non cash (17,905,465) (26,460,731)
332,364,897 (1,142,200,661)

194 NRB Commercial Bank Limited

47 Currency Conversion Rates

Independent Auditors’ Report To The Shareholders

Assets and Liabilities as at 31st December, 2017 denominated in foreign currencies have been converted to
local currency Bangladesh Taka (BDT) at the following exchange rates:

Currency Abbreviation Unit Equivalent BDT

US Dollar USD 1 82.70
Japanese Yen JPY 1 0.7295
EURO EURO 1 98.2972
GBP GBP 1 110.7767

48 Highlights of overall activities of the Bank

2017 2016
Sl # Particulars
Taka Taka

om
1 Paid-up Capital 4,900,001,460 4,579,440,770
2 Total Capital 6,780,551,315 6,200,610,260
3 Capital Surplus 1,137,393,454 1,665,067,779
4 Total Assets 57,529,354,798 53,619,100,916
5 Total Deposits 45,236,437,765 44,143,280,310
6 Total Loans and Advances
.c 43,000,279,756 37,408,284,100
7 Total Contingent Liabilities and Commitments 16,591,431,161 12,934,947,050
8 Credit-Deposit Ratio 92.18% 82.99%
d
9 Ratio of Classified Loans against Total Loans and Advances 2.46% 0.52%
10 Profit after Tax and Provisions 928,938,814 869,031,969.35
ab

11 Loans Classified during the Year 1,032,584,991 193,023,225.79

12 Provision kept against Classified Loans 461,309,384 58,650,757.17
13 Provision Surplus/(deficit) - -
nk

14 Cost of Fund 6.47% 6.91%

15 Interest Earning Assets 51,089,425,585 48,816,248,408
16 Non-interest Earning Assets 6,439,929,213 4,802,852,509
17 Return on Investments (ROI) 15.30% 15.97%
la

18 Return on Assets (ROA) 1.67% 1.93%

19 Income from Investments 1,259,203,953 1,974,610,841
20 Earnings Per Share 1.89 1.90
21 Net Income Per Share 1.89 1.90
22 Net Assets Value 13.00 12.42
23 Price-Earnings Ratio (Times) * N/A N/A
* Bank is yet to be listed with any stock exchange in Bangladesh
49 Events after Reporting Period
The Board of Directors of NRBC Bank Limited in its 64th Board Meeting held on 28 March, 2018 recommended Dividend
@ 10% comprising ( in the from of 2% Cash & in the form of 8% Stock ) for the year ended December 31, 2017.

Kazi Md. Talha Engr. Farasath Ali Rafikul Islam Mia Arzoo Tamal S.M.Parvez
Managing Director (CC) Director, BoD Director, BoD Chairman, BoD

195
 Annual Report 2017

Annexure-A
NRB Commercial Bank Limited
Currency wise Balance of FC Clearing Accounts with Bangladesh Bank
As of 31 December 2017

December 31, 2017 2016

Name of the Name of Amount Equivalent
SL Location Conversion Amount in
Account currency in Foreign Amount in
Rate Taka
Currency Taka
1 BB FC Clearing Dhaka USD 441,439.52 82.7 36,507,048 20,417,745
2 BB FC Clearing Dhaka Euro 773.61 98.2972 76,044 63,361
Total 442,213 36,583,092 20,481,106

om
Annexure-B
Placement of FDR/TDR with other Banks/NBFIs
As of 31 December 2017
.c
SL Name of the NFBIs Period Issue Date Maturity Date Principal Amount

1 Agrani Bank Limited 365 Daily 25-Jan-17 25-Jan-18 4,300,000

d
2 Fareast Finance and Investment Limited 182 Daily 30-Jul-17 28-Jan-18 100,000,000
ab

3 Union Capital Limited 181 Daily 2-Aug-17 30-Jan-18 300,000,000

4 Prime Finance & Investment Limited 182 Daily 3-Aug-17 1-Feb-18 70,000,000
nk

5 Phoenix Finance & Investment Limited 182 Daily 6-Aug-17 4-Feb-18 200,000,000

6 Phoenix Finance & Investment Limited 182 Daily 24-Sep-17 25-Mar-18 100,000,000
la

7 Fareast Finance and Investment Limited 92 Daily 2-Oct-17 2-Jan-18 100,000,000

8 Bangladesh Industrial Finance Company Ltd. 182 Daily 15-Oct-17 15-Apr-18 52,502,500

9 Fareast Finance and Investment Limited 91 Daily 24-Oct-17 23-Jan-18 100,000,000

10 Bangladesh Industrial Finance Company Ltd. 91 Daily 10-Dec-17 11-Mar-18 51,327,083

11 Fareast Finance and Investment Limited 90 Daily 28-Dec-17 28-Mar-18 50,000,000

12 Peoples Leasing and Financial Services Limited 5 Daily 28-Dec-17 2-Jan-18 10,000,000

13 First Lease Finance and Investment Limited 4 Daily 28-Dec-17 1-Jan-18 50,000,000

Total 1,188,129,583

196 NRB Commercial Bank Limited

 Annexure-C

Independent Auditors’ Report To The Shareholders

NRB Commercial Bank Limited
Currency wise Balance of Nostro Accounts
As of 31 December 2017

December 31, 2017 2016

Name of Amount in
SL Name of the Bank Location Conversion Equivalent Amount in
Currency Foreign
Rate Amount in Taka Taka
Currency

1 Habib American Bank New York USD 2,419,367.52 82.70 200,081,694 35,170,174

2 Mashreq Bank PSC New York USD 1,111,460.25 82.70 91,917,763 68,846,315

3 AB Bank Limited Mumbai Acu Dollar 4,625.21 82.70 382,505 2,560,801

om
4 Mashreq Bank PSC London GBP 17,200.29 110.7767 1,905,391 260,263

5 United Bank of India Kolkata Acu Dollar 291,805.95 82.70 24,132,352 1,118,328

6 United Bank of India Kolkata Acu Euro .c 98.2972 -

7 Mashreq Bank PSC London EURO 2,953.10 98.2972 290,281 771,378

8 BHF-Bank Aktienge- EURO - -

d
sellschaft,
Germany
ab

9 Mashreq Bank PSC Mumbai Acu Dollar 195.74 82.70 16,188 420,058

10 National Bank of Pakistan Tokyo Jap. Yen 378,005.00 0.7295 275,755 358,604
nk

11 Kookmin Bank Seoul USD 10,726.67 82.70 887,096 2,421,965

12 Habib Metro Bank Limited Karachi Acu Dollar 6,723.03 82.70 555,995 611,263
la

13 Aktif Yatirim Bankasi A.S Istanbul EURO - - -

14 Axis Bank Limited Kolkata Acu Dollar 68,528.66 82.70 5,667,320

Total 4,311,591 326,112,339 112,539,149

197
 Annual Report 2017

Annexure-D
NRB Commercial Bank Limited
Disclosure regarding the Govt. securitites under Repo and Reverse Repo
As of 31 December 2017

a. (i) Disclosure regarding outstanding REPO as on 31 December 2017

Amount
SL No Counter Party Name Agreement Date Reversal Date (Ist leg cash
consideration)
1 Janata Bank Limited 26/12/2017 02/01/2018 793,089,531.50
2 Janata Bank Limited 28/12/2017 04/01/2018 110,920,495.00
Total 904,010,026.50

om
a. (ii) Disclosure regarding outstanding Reverse REPO as on 31 December 2017
.c
Amount
SL No Counter Party Name Agreement Date Reversal Date
d
(Ist leg cash
consideration)
ab

Nil
Total -
nk

b. Disclosure regarding overall transaction of outstanding REPO and Reverse REPO

Minimum Maximum Daily average

la

SL No outstanding during outstanding during outstanding during the

the year the year year
Securities Sold Under repo
i. With Bangladesh Bank Nil Nil Nil
ii With Other Bank & FIs 102,591,757.00 903,025,086.50 430,928,493.30
Securities purchased under reverse repo
i. From Bangladesh Bank Nil Nil Nil
ii From Other Bank & FIs 503,178,388.29 503,178,388.29 503,178,388.29

198 NRB Commercial Bank Limited

 Annexure-E

Independent Auditors’ Report To The Shareholders

NRB Commercial Bank Limited
Investment in Share Portfolio, Preference Share and Bonds
As of 31 December 2017
a. Quoted shares & MFs
SL Company Name Market Value (Tk.) Cost Value (Tk.)
1 Banks -
2 NBFIs 23,900,000 5,000,000
3 Engineering 1,194,070 1,341,377
4 Textiles -
5 Fuel & Power -
6 Pharmaceuticals & Chemicals -
7 Mutual Fund 20,000,000 20,000,000
Total 45,094,070.00 26,341,377
No Provision required because of market value is higher than cost price.
b. Investment in Preference Share

om
Intt. Rate/ Maturity
SL Issuer Name Financial Product Tenure Amount (Taka) Major Feature
Divi. Date
1 Regent Power Regent Power Preference 6 Years 13.00% 11-May-20 60,000,000 Preference Share with having tax
Limited Share Rebate
Total 60,000,000

c. Investment in Bonds
.c
Intt. Rate/ Maturity
SL Issuer Name Financial Product Tenure Amount (Taka) Major Feature
d
Divi. Date
1 Mercantile Bank Mercantile Bank 7 Years Floating 29-Jun-21 360,000,000 Subordinated Bond. Floating
ab

Limited Subordinated Bond Rate Rate bond Ranging from

12% to 15% based on 6
month average FDR rate plus 3%
mark-up
2 The Trust Bank Trust Bank Subordinated 7 Years 12.50% 7-Sep-21 120,000,000 Subordinated Bond at Fixed Rate.
nk

Limited Bond
3 AB Bank Limited AB Bank Subordinated 7 Years Floating 26-Aug-21 80,000,000 Subordinated Bond. Floating Rate
Bond Rate bond Ranging from 9.82% to 12.82%.
based on 5 year Govt. Treasury Bond
la

Rate plus 3% markup

4 The City Bank City Bank Subordinated 7 Years Floating 21-Oct-20 147,000,000 Subordinated Bond having Floating
Limited Bond Rate Rate of Govt bond Ranging from
12.50% to 14.50% based on 6 month
average FDR rate plus 2.5% mark-up.
5 United UCBL Subordinated Bond 7 years Floating 29-Jul-22 100,000,000 Subordinated Bond having
Commercial Rate Floating Rateof Govt bond Ranging
Bank Limited from 10%to 13.50% based on 6
month average FDR rate of
schedule Bank Plus 2.5% mark-up
6 Mutual Trust MTB Subordinated Bond 7 years Floating 20-Oct-22 200,000,000 Subordinated Bond having Floating
Bank Limited Rate Rate of Govt bond Ranging from
10.50%to 13.50% based on 6 month
average FDR rate of schedule Bank
Plus 2.5% mark-up
7 AB Bank Limited 2nd AB Bank 7 years Floating 29-Sep-22 300,000,000 Subordinated Bond having
Subordinated Bond Rate Floating Rate of Govt bond
Ranging from 10.50%to 13.50%
based on 6 month average FDR rate
of schedule Bank Plus 2.5% margin
8 BSRM Limited BSRM Convertible Bond 5 Years 13.00% 27-Apr-19 198,000,000 Subordinated Bond at Fixed Rate.
Total 1,505,000,000
199
 Annual Report 2017

NRB Commercial Bank Limited

Payment Schedule against Refinance
As of 31 December 2017
Annexure-F
A. Refinance from Bangladesh Bank under Refinance Scheme

No. of Refinance Intt. Maturity

SL Refinance Scheme Branch Name Tenure Amount (Taka)
Facilities Rate Date
1 Special Programme Loan-Agri 05 Years 5% 11-Feb-19 54,361,645
2 Small & Medium Enterprise 03 Years 5% 22-Jan-18 75,000
3 Jute & Jute Products 01 Years 5% 4-Jan-18 40,000,000
4 Jute & Jute Products Principal Branch 7 01 Years 5% 1-Mar-18 60,000,000
5 Jute & Jute Products 01 Years 5% 4-Jan-18 30,000,000
6 Jute & Jute Products 01 Years 5% 1-Mar-18 30,000,000
7 Women Entrepreneur 01 Years 5% 19-Feb-18 5,000,000
8 Jute & Jute Products Ruhitpur Branch 1 01 Years 5% 1-Mar-18 60,000,000
9 Women Entrepreneur Agrabad Branch 1 03 Years 5% 23-Sep-18 250,000
10 Solar Energy- Green Finance 03 Years 5% 26-Jun-19 9,062,091

om
Hemayetpur Branch 2
11 Solar Energy- Green Finance 5% 26-Jun-19 8,181,818
12 Small & Medium Enterprise 05 Years 5% 22-Jan-20 937,500
Uttara Branch 2
13 Women Entrepreneur 03 Years 5% 19-Oct-19 625,000
14 Women Entrepreneur Board Bazar Br 1 03 Years 5% 19-Oct-19 1,333,333
15 Women Entrepreneur Mugrapara Br 1 05 Years 5% 16-Nov-21 510,000
16 Women Entrepreneur Sylhet Branch 1 01 Years 5% 19-Mar-18 1,500,000
17 Women Entrepreneur Barisal Branch
.c
1 05 Years 5% 23-Sep-20 3,750,000
18 Women Entrepreneur Rajshahi Branch 1 01 Years 5% 8-Jan-18 1,500,000
19 Effluent Treatment Plant Chatkhil Branch 1 05 Years 5% 21-Dec-19 3,636,364
d
20 Jute & Jute Products Hatirpul Branch 1 01 Years 5% 1-Mar-18 20,000,000
Total 330,722,752
ab

B. Refinance from Bangladesh Bank (Product wise)

No. of Refinance Intt. Maturity

SL Refinance Scheme Branch Name Tenure Amount (Taka)
Facilities Rate Date
nk

1 Special Programme Loan-Agri Principal Branch 1 05 Years 5% 11-Feb-19 54,361,645

Sub-Total 54,361,645
1 Small & Medium Enterprise Principal Branch 2 03 Years 5% 22-Jan-18 75,000
2 Small & Medium Enterprise Uttara Branch 05 Years 5% 22-Jan-20 937,500
la

Sub-Total 1,012,500
1 Jute & Jute Products Principal Branch 6 01 Years 5% 4-Jan-18 40,000,000
2 Jute & Jute Products Principal Branch 01 Years 5% 1-Mar-18 60,000,000
3 Jute & Jute Products Principal Branch 01 Years 5% 4-Jan-18 30,000,000
4 Jute & Jute Products Principal Branch 01 Years 5% 1-Mar-18 30,000,000
5 Jute & Jute Products Ruhitpur Branch 01 Years 5% 1-Mar-18 60,000,000
6 Jute & Jute Products Hatirpul Branch 01 Years 5% 1-Mar-18 20,000,000
Sub-Total 240,000,000
1 Women Entrepreneur Principal Branch 8 01 Years 5% 19-Feb-18 5,000,000
2 Women Entrepreneur Agrabad Branch 03 Years 5% 23-Sep-18 250,000
3 Women Entrepreneur Board Bazar Branch 03 Years 5% 19-Oct-19 1,333,333
4 Women Entrepreneur Mugrapara Branch 05 Years 5% 16-Nov-21 510,000
5 Women Entrepreneur Sylhet Branch 01 Years 5% 19-Mar-18 1,500,000
6 Women Entrepreneur Barisal Branch 05 Years 5% 23-Sep-20 3,750,000
7 Women Entrepreneur Uttara Branch 03 Years 5% 19-Oct-19 625,000
8 Women Entrepreneur Rajshahi Branch 01 Years 5% 8-Jan-18 1,500,000
Sub-Total 14,468,333
1 Solar Energy- Green Finance Hemayetpur Branch 2 03 Years 5% 26-Jun-19 9,062,091
2 Solar Energy- Green Finance Hemayetpur Branch 03 Years 5% 26-Jun-19 8,181,818
Sub-Total 17,243,909
1 Effluent Treatment Plant Chatkhil Branch 1 05 Years 5% 21-Dec-19 3,636,364
Sub-Total 3,636,364
Grand Total 330,722,752
200 NRB Commercial Bank Limited
 Annexure-G
NRB Commercial Bank Limited
Schedule of Property, Plant & Equipment (Accounting Purpose)
As of 31 December 2017

Assets Depreciation
Sl
Properties & Assets Addition Disposal Addition Disposal Book Value
NO. Opening Closing Rate of Opening Closing
during the during the during the during the
Balance Balance Depreciation Balance Balance
year year year year
la
1 Land, Building and Construction - - - 2.50% - - -

2 Furniture and fixtures 251,205,585 24,805,486 276,011,070 10.00% 40,565,159 26,845,489 67,410,648 208,600,422
nk
3 Equipment and Machinery 243,083,735 29,901,718 300,000 272,685,453 20.00% 75,798,213 31,247,658 39,998.40 127,445,311 145,240,142

4 Computer and Computer Equipment 157,193,174 2,954,810 160,147,984 20.00% 88,642,967 31,685,148 120,328,115 39,819,869
ab
5 Intangible Assets/Bangladesh Made 123,292,181 13,088,526 136,380,707 20.00% 38,055,568 26,350,902 64,406,471 71,974,237
Computer Software d
6 Motor Vehicles 27,250,000 - 27,250,000 20.00% 13,439,166 5,450,000 18,889,166 8,360,834

7 Professionals and Reference Books 23,370 - 23,370 20.00% 12,357 4,674 17,031 6,340
.c
8 Leased Assets: Motor Vehicle 27,106,624 - 27,106,624 20.00% 17,766,016 5,421,325 23,187,340 3,919,284

Total 829,154,668 70,750,540 300,000 899,605,208 274,279,447 127,005,195 39,998 421,684,081 477,921,127
om

Independent Auditors’ Report To The Shareholders

201
202
Annexure-H
NRB Commercial Bank Limited
Schedule of Property, Plant & Equipment (Tax Purpose)
As of 31 December 2017

Assets Depreciation/Amortization
Sl Addition Disposal Addition Disposal
Properties & Assets Book Value
Annual Report 2017

NO. Opening Closing Rate of Opening Closing

during the during the during the during the
Balance Balance Depreciation Balance Balance
year year year year

1 Land, Building and Construction - - - 2.50% - - - -

la

NRB Commercial Bank Limited

2 Furniture and fixtures 251,205,585 24,805,486 276,011,070 10.00% 51,983,140 22,402,793 74,385,933 201,625,137

3 Office Equipment and Machinery 243,083,735 29,901,718 300,000 272,685,453 10.00% 53,315,140 21,937,031 39,998 75,212,173 197,433,281

4 Computer and Computer Equipment 157,193,174 2,954,810 160,147,984 30.00% 102,209,407 17,381,573 119,590,980 40,557,004
nk
5 Intangible/Bangladesh Made Computer 123,292,181 13,088,526 136,380,707 50.00% 79,955,397 28,212,655 108,168,052 28,212,655
Software

6 Motor Vehicles 27,250,000 - 27,250,000 20.00% 12,143,867 3,021,227 15,165,093 12,084,907

ab
7 Professionals and Reference Books 23,370 -d 23,370 30.00% 15,354 2,405 17,759 5,611

8 Leased Assets: Motor Vehicle 27,106,624 - 27,106,624 20.00% 13,997,078 2,621,909 16,618,987 10,487,637

Total 829,154,668 70,750,540 300,000 899,605,208 313,619,383 95,579,593 39,998 409,158,978 490,406,232
.c
om
 Annexure-I

Independent Auditors’ Report To The Shareholders

NRB Commercial Bank Limited
Detailed of Consolidated Risk Weighted Assets under Basel III as at 31 December 2017

2017 2016
Risk Weighted Assets (RWA) for Risk Weighted Risk Weighted
Exposure Exposure
Asset Asset
A. Credit Risk 58,433,197,977 45,735,114,792 53,298,067,587 41,771,003,153
On- Balance Sheet (as shown below) 53,071,655,131 39,553,861,882 49,724,813,208 37,602,060,755
Off-Balance Sheet (as shown below) 5,361,542,847 6,181,252,910 3,573,254,379 4,168,942,398
B. Market Risk 888,062,241 1,159,224,008
C. Operational Risk 3,299,538,585 3,011,863,029
Total: RWA (A+B+C) 58,433,197,977 49,922,715,617 53,298,067,587 45,942,090,189

Credit Risk - On Balance Sheet Items

om
2017
SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
a Cash and Cash Equivalents 834,222,834 0% -
Claims on Bangladesh Government and Bangladesh
b 8,010,813,222 0% -
c
Bank
Claims on other Sovereigns & Central Banks*
.c - 50% -
Claims on Bank for International Settlements, Interna-
d
tional
d - 0% -
Monetary Fund and European Central Bank
ab

Claims on Multilateral Development Banks (MDBs): - 0% -

i. IBRD,IFC,ADB,AFDB,EBRD,IADB,EIB,EIF,NIB,CDB,ID-
B,CEDB
- 1 20%
nk

e
- 2,3 50%
ii. Others MDBs - 4,5 100%
- 6 150%
la

- Unrated 50%
- 1 20%
- 2,3 50%
Claims on Public Sector Entities (other than Govern-
f - 4,5 100%
ment) in Bangladesh
- 6 150%
- Unrated 50%
Claims on Banks and Non-Bank Financial Institution
(NBFI):
671,402,199 1 20% 134,280,440
936,452,462 2, 3 50% 468,226,231
g
i) Original maturity over 3 months - 4, 5 100% -
- 6 150% -
153,911,723 Unrated 100% 153,911,723
ii) Original Maturity Up to 3 months 1,506,960,734 20% 301,392,147
1,118,212,350 1 20% 223,642,470
4,686,287,008 2 50% 2,343,143,504
h Claims on Corporate (excluding equity exposure) 3,681,418,108 3, 4 100% 3,681,418,108
- 5, 6 150% -
13,373,744,933 Unrated 125% 16,717,181,166

203
 Annual Report 2017

2017
SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
i Claim on SME - SME 1 20% -
- SME 2 40%
- SME 3 60%
- SME 4 80%
- SME 5 120%
- SME 6 150%
1,675,847,859 Unrated (Small 75% 1,256,885,895
Enterprise &
<BDT 3.00m)
5,830,894,922 Unrated (Small 100% 5,830,894,922
enterprise hav-
ing ≥ BDT 3.00m
& medium enter-
prise)

om
j Claims under Credit Risk Mitigation - PSE -
- Banks & NBFIs -
608,205,066 Corporate 473,437,140
708,063,547 Retail & Small 55,728,994
84,451,234 SME 70,381,875
.c
5,540,939 Consumer -
Finance
- Residential -
d
Property
5,742,968 Commercial 2,329,164
ab

Real State
k Claim categories as retail portfolio (Excluding SME, Con- 4,032,029,545 75% 3,024,022,159
sumer Finance & Staff loan) Upto 1 Crore
l Consumer Loan 268,069,335 100% 268,069,335
nk

m Claims fully secured by residential property 887,876,627 75% 443,938,314

n Claims fully secured by commercial real estate 1,765,168,777 100% 1,765,168,777
o 1. Past Due Claims (Risk weights are to be assigned net
of specific provision):
la

Where Specific provisions are less than 20 percent of the 640,523,250 150% 960,784,875
outstanding amount of the past due claim
Where Specific provisions are no less than 20 percent of 14,514,827 100% 14,514,827
the outstanding amount of the past due claim
Where Specific provisions are more than 50 percent of - 50% -
the outstanding amount of the past due claim
2. Claims fully secured against residential property that 16,013,866 100% 16,013,866
are past due for more than 60 days and/or impaired
specific provision held there-against is less than 20
percent of outstanding amount
3. Loans & Claims fully secured against residential - 75% -
property that are past due for more than 60 days and/
or impaired and specific provision held there-against is
more than 20 percent of outstanding amount
p Capital Market Exposure - 125% -
q Investment in Equity and Regulatory Capital Instruments 355,000,000 125% 443,750,000
issued by other Banks and Mercahant Bank/Brokerage
Houses/Exchange Houses which are not listed in Stock
Exchange (other than those deducted from capital) held
in banking book

204 NRB Commercial Bank Limited

 2017

Independent Auditors’ Report To The Shareholders

SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
r Investments in Venture Capital - 150% -
s Investments in premises, plant and equipment and all 487,228,251 100% 487,228,251
other fixed assets
t Claims on all fixed assets under operating lease - 100% -
u All other Assets
i. Claims on GoB & BB - 0% -
ii. Staff Loan/Investment 369,426,053 20% 73,885,211
iii. Cash Item in process of Collection - 20% -
iv. Claim on Offshore Banking Unit (OBU) - 100% -
v. Other Assets (Not specified above) ( Net of Specific 343,632,491 100% 343,632,491
Provision, If any)
Total 53,071,655,131 39,553,861,882

Credit Risk - Off-Balance Sheet items

om
a Claims on Bangladesh Government (Other than PSEs) - 0% -
and Bangladesh Bank
b Claims on other Sovereigns & Central Banks* -
c Claims on Bank for International Settlements, - 0% -
International Monetary Fund and European Central Bank
.c
d Claims on Multilateral Development Banks (MDBs):
i. IBRD, IFC, ADB, AfDB, EBRD, IADB, EIB, EIF, NIB, CDB, - -
d
IDB, CEDB
ii. Other MDBs - 1 20% -
ab

- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 50% -
nk

e Claims on Public Sector Entities (other than Govern- - 1 20% -

ment) in Bangladesh - 2, 3 50% -
- 4, 5 100% -
la

- 6 150% -
- Unrated 50% -
f Claims on Banks:
i) Maturity over 3 months - 1 20% -
- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 100% -
ii) Maturity less than 3 months - 20%
g Claims on Corporate - 1 20% -
371,488,476 2 50% 185,744,238
44,824,561 3, 4 100% 44,824,561
- 5, 6 150% -
4,126,856,189 Unrated 125% 5,158,570,236

205
 Annual Report 2017

2017
SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
h Claims against retail portfolio - 75% -
(excluding SME & consumer loan)
i Claim On SME - SME 1 20% -
- SME 2 40% -
- SME 3 60% -
- SME 4 80% -
- SME 5 120% -
- SME 6 150% -
105,038,984 Unrated (Small 75% 78,779,238
Enterprise &
<BDT 3.00m)
713,334,636 Unrated (Small 100% 713,334,636
enterprise hav-
ing ≥ BDT 3.00m

om
& medium enter-
prise)
j Consumer Finance - 100% -
k Claims fully secured by residential property - 50% -
l Claims fully secured by commercial real estate - 100% -
m Investments in venture capital
.c - 150% -
n All other assets - 100% -
Total 5,361,542,847 6,181,252,910
d
ab
nk
la

206 NRB Commercial Bank Limited

 Annexure-J

Independent Auditors’ Report To The Shareholders

Related Party Disclosure
The parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to
common control or common significant influence. Related party informations are given below:
i. Directors’ interest in different entities
Percentage
Name of the firms/companies in
of Holding/
Status with which interested as Proprietor, Status as in
Sl Name of Director Experience Interest
Bank Partner, Director, Managing Agent, Column E
in the
Guarantor, Employee, etc.
concern
A B C D E F G
1 Mr. Tamal Chairman 20 Years a. OY STN Electronics Ltd., a. CEO and a. 100%
S.M.Parvez Nokkalanniemi 1C, 02230 Espoo, President
Finland.
b. System Invest Trekhprudnaya, b. Director b. 95%
11/13, Off 25, Moscow, Russia.
c. R & M , Kurtskaya, Moscow, c. Owner c. 63%

om
Russia
d. Telexia Oy, Finland d. Board Member d. 33%
e. Makia Fashion Clothing, Finland e. Share holder e. 05%
f. Twic Oy , Finland f. Board Member f. 25%
g. Turuntie 40 Oy, Finland g. Share holder g. 15%
2 Mr. Mohammad Vice 21 Years
.c
MarafieKuwaitia Group, Arab Union CEO and Partner 49%
Shahid Islam Chairman Building, 4th Ringroad, 4th FL
Hawally, State of Kuwait.
d
3 Engr. Farasath Ali Director 25 Years a. 1586 Restaurant Inc (Vivo a. President a. 50%
Restaurant), 1586-2nd Ave, NYC,
ab

NY-10028.
SNA Knitting Mill Inc., 1 Market b. Shareholder b. 90%
b. Street, Passaic, N-J-07055.
4 Dr. Toufique Director 39 Years a. East Anglia Resources Ltd, 1 a. Director a. 50%
nk

Rahman Chowdhury Kedleston Road, Grantham,

NG317FE, UK.
b. Mercantile Bank Limited, 61, b. Sponsor
Dilkusha C/A, Dhaka-1000
la

c. National Credit Ratings Ltd., 3 c. Director c. 19%

Bijoy Nagar, Dhaka.
d. Sylhet Metropolitan Chamber of d. President
Commerce & Industry (SMCCI),
Ananda Tower, Jail Road, Sylhet
e. Mercantile Bank Securities Ltd., e.Director
61, Dilkusha C/A, Dhaka-1000.
f. NRBC Bank Securities Ltd., f. Director f.0.50%
114 Motijheel C/A, Dhaka-1000
g. Metropolitan University Trust, g.Chairman Not for
Zindabazar, Sylhet-3100. profit Trust
h. Premier Leasing & Finance Ltd., h. Family Interest
City Centre (17th Floor), 90/1,
Motijheel C/A, Dhaka-1000.
i. Premier Leasing Securities Ltd., i. Family Interest
City Centre (17th Floor), 90/1,
Motijheel C/A, Dhaka-1000.
j. Premier Leasing Capital j. Family Interest
Management Ltd.
k Syl-Track Associates Ltd. k. Family Interest

207
 Annual Report 2017

Percentage
Name of the firms/companies in
of Holding/
Status with which interested as Proprietor, Status as in
Sl Name of Director Experience Interest
Bank Partner, Director, Managing Agent, Column E
in the
Guarantor, Employee, etc.
concern
A B C D E F G
5 Mr. ABM Abdul Director 15 Years AAA Wash & Clean, 89-04 Elliot Owner 100%
Mannan Avenue, Rego Park, NY 11374, USA.
6 Mr. Mohammed Director 24 Years a. Al Haramain Trading LLC, PO Box: a. Director a. 24%
Oliur Rahman 13754, Dubai, UAE.
b. Al Haramain Perfumes MFG & b. Shareholder b.20%
Oudh Processing Industry LLC,
PO Box: 1885, Ajman, UAE.
c. Al Haramain Perfumes LLC, c. Shareholder c.30%
Dubai, UAE.
d. Best in Fragrance, Hilton tower, d. Shareholder d.30%
Gate#3, Shops#6-7, PO Box:
18083, Holy Makkah, Kingdom

om
of Saudi Arabia
e. Noor Al Haramain LLC, PO Box: e. Shareholder e. 24%
13754, Dubai, UAE.
f. Al Haramain Hospital Pvt. Ltd., f. Vice Chairman
Kazi Tower, Samata-10, Bishwa
.c
Road, Chali Bandar, Subhani
Ghat, Sylhet-3100, Bangladesh.
7 Mr. Mohammed Director 20 Years a. Tanjil-Co, Via Marteri Della a. Director a. 100%
d
Enayet Hossain Liberta-208, Sanremo, (IM) Italy.
b. Tanjil Co. Cleaning Company, Via b. Director b. 100%
ab

Ciotti No-1, Vallebona (IM) Italy.

8 Mr. Md. Amir Director 22 Years a. Trimx Recycling LLC, 2730 a. CEO a. 100%
Hossain Weaver Rd., Macon, GA 31217.
b. Trimx Ventures LLC, 2730 b. CEO b. 100%
Weaver Rd., Macon, GA 31217.
nk

9 Mrs. Kamrun Nahar Director 15 Years a. 7069367 Canada Inc., 587 Third a. Director a. 50%
Sakhi Line, Oakville, ON, L6L 4A8,
Canada.
b. Mishmak Developments Ltd., b. Director b. 10%
la

Forum Central (6th Floor),

Golpahar Circle, MM Ali Road.
Chittagong.
c. Mishmak Lands Developments c. Director c. 10%
Ltd. Forum Central (6th Floor),
Golpahar Circle, MM Ali Road,
Chittagong.

208 NRB Commercial Bank Limited

 Percentage
Name of the firms/companies in

Independent Auditors’ Report To The Shareholders

of Holding/
Status with which interested as Proprietor, Status as in
Sl Name of Director Experience Interest
Bank Partner, Director, Managing Agent, Column E
in the
Guarantor, Employee, etc.
concern
A B C D E F G
10 Mr. Abu Bakr Director 15 Years a. Baizid Steel Industries Ltd., a. MD a. 59.50%
Chowdhury Rahima Center, 4th Floor,
1618/1839 CDA Avenue,
Nasirabad, Chittagong.
b. CSS Corporation (BD) Ltd., b. MD b. 40%
Rahima Center, 4th Floor,
1618/1839 CDA Avenue,
Nasirabad, Chittagong.
c. CSS Power Ltd., Rahima Center, c. MD c. 80%
4th Floor, 1618/1839 CDA
Avenue, Nasirabad, Chittagong.
d. ABC Marks Holdings Ltd., Rahima d. MD d. 50%

om
Center, 4th Floor, 1618/1839
CDA Avenue, Nasirabad,
Chittagong.
e. ATN News Ltd., Hassan Plaza, 53 e. Shareholder e. 10%
Kawran Bazar, Dhaka-1215.
f. ABC Associates Ltd., Rahima f. MD f. 2.50%
.c
Center, 4th Floor, 1618/1839
CDA Avenue, Nasirabad,
Chittagong.
d
11 Mr. Loquit Ullah Director 34 Years Store Alamin SNC, Via Principe Managing 100%
Amedia, 134-136, Rome, Italy. Director
ab

12 Mr. Rafikul Islam Director 25 Years a. Bonanza, 2nd Magietralnaya 14 a. President a. 80%
Mia Arzoo G, Moscow, Russia.
b. Mela, 2nd Magietralnaya 14 G, b. MD b. 89.5%
Moscow, Russia.
nk

c. Lisichka, St. Bibirovskaya 2/1, c. Director c. 80%

Moscow, Russia.
d. JSC Bibirevo, St. Bibirobskaya 2/1 d. Director d. 94%
Moscow, Russia
la

13 Mr. Mohammed Director 18 Years a. Al Majal Car Wash and Maint, a. MD a. 50%
Nazim Al Maliha Street, Industrial
Area,-10, Near Gico, PO: 29037,
Sharjah, UAE.
b. Al Badar Car Washing Station, b. MD b. 50%
New I/A, PO Box-1267, Ajman,
UAE.
c. Dar Al Madina Washing Station, c. MD c. 100%
Jouraf I/A-1, Near China Mall,
Ajman, UAE.
d. Dar Al Salam Car Washing d. MD d. 50%
Station, Ajman, UAE.
e. Al Ardh Al Thahabiah Trucks & e. MD e. 50%
Heavy Machines Maint. Center,
Sharjah, UAE.
f. Lucent Developments Limited f. Director f. 20%
Madina Tower,(6th Floor), 805/A,
CDA
Avenue, GEC Circle, Khulshi,
Chittagong,
Bangladesh

209
 Annual Report 2017

Percentage
Name of the firms/companies in
of Holding/
Status with which interested as Proprietor, Status as in
Sl Name of Director Experience Interest
Bank Partner, Director, Managing Agent, Column E
in the
Guarantor, Employee, etc.
concern
A B C D E F G
14 Engr. Syed Munsif Director 15 Years a. Multiplan Limited, a. Chairman and a. 05%
Ali 69/1 Panthpath, Dhaka-1205. CEO
b. Multiplan Canada Limited, b. Chairman and b. 20%
69/1 Panthpath, Dhaka-1205. CEO
c. Multiplan Accessories Ltd., c. Chairman and c. 20%
69/1 Panthpath, Dhaka-1205. CEO
d. Golden Life Insurance Ltd., d. Founding d. 16%
80 Tejgaon, Dhaka. Chairman &
Director
15 Mr. Mohammed Director 16 Years a. IPE Group (Holdings) Limited a. Managing a. 25%
Adnan Imam 73, New Bond Street, Mayfair, Director
London, W1S 1RS, UK.

om
b. IPE Ventures Limited b. Managing b. 50%
73, New Bond Street, Mayfair, Director
London, W1S 1RS, UK.
c. Genex Infosys Ltd. c. Managing c. 50%
House # 9, Road-25/A, Director
.c
Block-A, Banani, Dhaka-1213,
Bangladesh.
d. Green & Red Technologies d. . Chairman & d.100%
d
Limited Representative
House # 9, Road-25/A, Director of Genex
Block-A, Banani, Dhaka-1213, Infosys Limited
ab

Bangladesh.
e. Brainstation-23 Limited e. Representative e. 10%
Plot 2 (8th Floor), Bir Uttam AK Director of Oracle
Khandaker Road, Mohakhali C/A, Services Limited
nk

Dhaka-1212
f. Denim Asia Limited f. Director f. 21%
117/A, Tejgaon Industrial Area,
Dhaka-1208
la

g. AWR Developments (BD) Limited, g. Managing g. 98%

House # 9, Road-25/A, Director
Block-A, Banani, Dhaka-1213,
Bangladesh.
h. AWR Real Estate Limited, h. Managing h. 50%
House # 9, Road-25/A, Director
Block-A, Banani, Dhaka-1213,
Bangladesh.
i. IPE Capital Limited i. Chairman i. 45%
House # 9, Road-25/A, Block-A,
Banani, Dhaka-1213, Bangladesh
j. Oracle Services Ltd. j. Managing j. 50%
House # 9, Road-25/A, Director
Block-A, Banani, Dhaka-1213,
Bangladesh.
k. Cogent Bangladesh Limited k. Managing k. 5%
House # 9, Road-25/A, Director
Block-A, Banani, Dhaka-1213,
Bangladesh.

210 NRB Commercial Bank Limited

 Percentage
Name of the firms/companies in

Independent Auditors’ Report To The Shareholders

of Holding/
Status with which interested as Proprietor, Status as in
Sl Name of Director Experience Interest
Bank Partner, Director, Managing Agent, Column E
in the
Guarantor, Employee, etc.
concern
A B C D E F G
l. Adverto Footwear Limited l. Representative l. 15%
House # 9, Road-25/A, Director of Oracle
Block-A, Banani, Dhaka-1213, Services Limited
Bangladesh.
m. Socian Limited m. Representative m. 5.43%
House – 28, Road – 20, Block-K, Director of Oracle
Banani, Dhaka. Services Limited
16 Dr. Nuran Nabi Director 30 Years Plainsboro Township, New Councilman None.
Jersey, USA
17 Mr. Mohammed Director 16 Years a. ATN News Ltd., Hasan Plaza, 53, a. Director a. 20%
Manzurul Islam Kawran Bazar, Dhaka.
b. iPay Systems Limited, b. Director b. 5%

om
52 Gulshan Avenue, Dhaka-1212
c. NRBC Bank Securities Limited, c. Vice Chairman c. 0.05%
114 Motijheel C/A, Dhaka & Director
d. Dhaka Bangla Channel (DBC) d. Director & CEO d. 10%
News, Ahsan Tower, 76 Bir Uttam
.c
A.K Khandakar Sarak, Dhaka,
Bangladesh

ii. Significant contracts were executed where the Bank is a party and wherein Directors have interest: Nil
d
iii. Shares to the Directors and Executives without consideration or exercisable at discount: Nil
ab

iv. Related Party relationship and transaction: Please see Annexure -J1
v. Lending policies for granting loan to the Related Party : Related parties are allowed Loans and Advances as per General Loan
Policy of the Bank.
vi. Business other than Banking business with any related concern of the Directors as per section -18 (2) of the Banking
nk

Companies Act, 1991: Nil

vii. Investments in the Security of Directors and their related concerns: Nil
la

211
 Annual Report 2017

Annexure-J1
Related Party Transactions
Related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether
a price is charged as per BAS 24.The Bank in normal course of business had transactions with other entities that fall within
the definition of ‘Related Party’ as contained in Bangladesh Accounting Standards (BAS)-24 (Related party disclosures) and as
defined in the BRPD circular #14, issued by Bangladesh Bank on 25th June, 2003.

The significant Related party transactions during the year was as follow-
Letting out of Premises

Name of the Representing Director Nature of interest Nature of Premises Financial

Organization of Director of the agreement involvement with
Organization/Property the agreement

om
- Engr. Farasath Ali, Owner Rental Munshi Bazar Br Monthly Rent
Representative Director of Agreement Tk.16,000.00 (2000 Sft
NRBC Bank Ltd. @ Tk. 8.00)
- Engr. Syed Munsif Ali Owner Rental Sylhet Uposhahar Br Monthly Rent Tk.1.50
Representative Director of Agreement lac (4000 Sft @ Tk.
NRBC Bank Ltd.
d .c 37.50)
ab
nk
la

212 NRB Commercial Bank Limited

 om
d .c
ab
nk
la

Auditor’s Report along with Audited Financial Statements

to the Shareholders
 Annual Report 2017

Auditor’s Report
To the Shareholders of Nrbc Bank Securities Limited
We have audited the accompanying Financial statements of NRBC Bank Securities Limited (NRBCBSL) which comprise
the financial position as at 31st December, 2017 and the statement of comprehensive income, statement of changes
in equity and statement of cash flows for the year then ended and a summary of significant accounting policies and
other explanatory information disclosed in Notes 1-33 to the financial statements.

Management’s Responsibility for the Financial Statements

Management of NRBCBSL is responsible for the preparation and fair representation of these financial statements in
accordance with Bangladesh Financial Reporting Standards (BFRSs), and for such internal control as Management
determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditor’s Responsibility

om
Our responsibility is to express an opinion on these Financial statements based on our audit. We conducted our
audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement. An audit involves performing procedures to obtain evidence about the amount
.c
and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In
making those risks assessments, the auditor considers internal control relevant to the entity’s preparation and fair
d
presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
ab

includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by Management, as well as evaluating the overall presentation of the financial statements. We believe that
our audit provides a reasonable basis for our opinion.
nk

Opinion
In our opinion, Financial statements which have been prepared in accordance with Bangladesh Financial Reporting
Standards give a true and fair view of the state of affairs of the company as at 31 December 2017 and of its financial
la

performance and cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards.

Report on Other Legal and Regulatory Requirements

We also report that:
a). We have obtained all the material information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit and made due verification thereof;
b). In our opinion, proper books of account as required by law have been kept by the Company so far as it
appeared from our examination of those books;
c). The Company’s financial position and financial performance dealt with by the report are in agreement
with the books of account; and
d). The expenditure incurred was for the purposes of the Company’s business.

-SD-
Place: Dhaka Hoque Bhattacharjee Das & Co.
Date: March 25, 2018 Chartered Accountants

214 NRB Commercial Bank Limited

 NRBC Bank Securities Limited

NRBCBSL Auditors’ Report To The Shareholders

Statement of Financial Position
As at 31 December 2017

At Dec 31, 2017 At Dec 31, 2016

Particulars Notes
Taka Taka

Non Current Assets

Property, Plant & Equipment 4 9,307,123 5,222,256

Investments
Investment in Share & Stock 5 369,008,495 353,424,000

Loan and Advances :

Margin Loan 6 39,766,748 364,049

om
Current Assets:
Advances, Deposits, Prepayments, Receivables 7 19,772,254 40,790,095
Deferred Tax Assets 8 - -
Cash and Cash Equivalents 9 15,545,967 100,623,474
.c 35,318,221 141,413,569
Total Assets 453,400,587 500,423,873
d
Shareholders’ Equity 423,395,490 406,746,124
ab

Share Capital 10 400,000,000 400,000,000

Retained Earnings 11 23,395,490 6,746,124

Current Liabilities 30,005,096 93,677,749

nk

Other Liabilities 12 30,005,096 93,045,823

Payable to Parents Company 13 - 631,926

Total equity and Liabilities 453,400,587 500,423,873

la

The annexed notes form an integral part of the Financial Statements.

-SD- -SD- -SD-

Manna Shome Rafikul Islam Mia Arzoo Mohammad Shahid Islam
Chief Executive Officer Director Chairman

This is the Statement of Financial Position referred to in our report of even date.

-SD-
Place: Dhaka Hoque Bhattacharjee Das & Co.
Date: March 25, 2018 Chartered Accountants

215
 Annual Report 2017

NRBC Bank Securities Limited

Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended December 31, 2017
2017 2016
Particulars Notes
Taka Taka

Operating income
Interest income 14 5,955,684 7,846,790
Interest Expenses 15 - -
Net interest income 5,955,684 7,846,790
Brokerage commission 16 23,999,019 892,632
Investment Income 17 22,846,383 7,215,106
Other operating income/loss 18 749,300 66,323
Total operating income 53,550,387 16,020,851
Operating expenses
Salary & Allowances 18 13,824,595 3,504,458

om
Rent, Taxes, Insurance, Electricity, etc. 19 5,942,735 1,016,191
Legal/Professional/Preliminary Expenses 20 65,940 80,336
Stamp, Postage & Telecommunication etc. 21 753,756 96,152
Stationery, Printing, Advertisement, etc. 22 1,140,151 157,826
Board of Directors' Meeting Expense 23 404,150 227,169
Audit Fee
.c 50,000 17,250
Other Financial Expenses 24 100,765 43,197
Depreciation & Repair of Property, Plant & Equipment 25 1,981,918 605,271
d
Other Expenses 26 1,194,128 123,145
Total Operating Expenses 25,458,139 5,870,995
ab

Profit/(Loss) before provision 28,092,248 10,149,856

Provision against Margin Loan - -
Provision against diminuation of Share 27 5,741,327 -
Total Provision 28 5,741,327 -
nk

Profit/(Loss) before Taxation 22,350,920

Provision for Taxation 5,701,555 2,470,184
Current Tax 5,516,686 2,102,515
Deferred Tax 184,869 367,669
la

Profit/Loss after taxation 16,649,366 7,679,672

Other comprehensive income - -
Total comprehensive income/(loss) 16,649,366 7,679,672
Earnings Per Share (EPS) 29 0.42 0.19

The annexed notes form an integral part of the Financial Statements.

-SD- -SD- -SD-

Manna Shome Rafikul Islam Mia Arzoo Mohammad Shahid Islam
Chief Executive Officer Director Chairman

This is the Statement of Comprehensive Income referred to in our report of even date.

-SD-
Place: Dhaka Hoque Bhattacharjee Das & Co.
Date : March 25, 2018 Chartered Accountants

216 NRB Commercial Bank Limited

 NRBC Bank Securities Limited

NRBCBSL Auditors’ Report To The Shareholders

Statement of Cash Flows
For the year ended December 31, 2017
At Dec 31, 2017 At Dec 31, 2016
Particulars
Taka Taka
A. Cash flows from operating activities
Cash received from :
Interest income 5,955,684 7,846,790
Investment Income 22,846,383 7,215,106
Brokerage Commission Receipts 23,999,019 892,632
Receipts from Other operating activities 749,300 66,323
53,550,387 16,020,851
Cash payment to :
Interest expenses - -
Paid to the Employee 13,940,445 3,388,608
Legal/Preliminary Expense 65,940 80,336
Audit Fees 17,250 11,500

om
Payments to suppliers/Service providers 7,581,123 961,238
Paid for Other Operating Activities 1,706,585 391,411
23,311,343 4,833,093
Operating profit before changes in operating assets & liabilities 30,239,044 11,187,758
Increase/decrease in operating assets and liabilities
Increased/(Decreased) of Deposit from client aganist Share purchased (44,603,945) 60,569,188
.c
Increased/(Decreased) of Deposit from client aganist IPO Fund (30,065,000) 30,065,000
Loan/Received to/from Parents Company (631,926) 36,826
(Increase) / Decrease in Operating Assets (75,300,871) 90,671,014
Net cash from/(used in) operating activities (A) (45,061,827) 101,858,772
d
Cash used in Investing Activities
ab

Purchase of Property, Plant and Equipment (6,046,325) (5,827,527)

Investment in Shares/Securities (15,584,495) (68,424,000)
Advances, deposits, prepayments, Receivables 21,017,841 (40,490,128)
Loan and Advances (39,402,699) (364,049)
Net cash used in Investing Activities (B) (40,015,678) (115,105,704)
nk

Cash flows from Financing Activities

Share Capital - -
Dividend Paid - -
la

Net cash flow from financing activities (C) - -

Net Surplus/(Deficit) in Cash and Bank Balances for the year (A+B+C) (85,077,506) (13,246,932)
Cash and Bank Balance at beginning of the year 100,623,474 113,870,405
Cash & Bank Balance at the end of the year 15,545,967 100,623,474
(*) Cash & Bank Balance:
Cash in Hand 1,896 23,876
Cash at Bank 15,544,071 100,599,598
15,545,967 100,623,474
The annexed notes form an integral part of the Financial Statements.

-SD- -SD- -SD-

Manna Shome Rafikul Islam Mia Arzoo Mohammad Shahid Islam
Chief Executive Officer Director Chairman
This is the Statement of Comprehensive Income referred to in our report of even date.
-SD-
Place: Dhaka Hoque Bhattacharjee Das & Co.
Date: March 25, 2018 Chartered Accountants

217
 Annual Report 2017

NRBC Bank Securities Limited

Statement of Changes in Equity
For the Year Ended December 31, 2017

Share Capital Retained Earnings Total

Particulars
Taka Taka Taka

Opening Balance at January 01, 2017 400,000,000 6,746,124 406,746,124

Net Profit after Tax for the year - 16,649,366 16,649,365
Balance at December 31, 2017 400,000,000 23,395,490 423,395,489
Balance at December 31, 2016 400,000,000 6,746,124 406,746,124

-SD- -SD- -SD-

om
Manna Shome Rafikul Islam Mia Arzoo Mohammad Shahid Islam
Chief Executive Officer Director Chairman

This is the Statement of Comprehensive Income referred to in our report of even date.
.c -SD-
Place: Dhaka Haque Bhattacharjee Das & Co.
d
Date: February 01, 2018 Chartered Accountants
ab
nk
la

218 NRB Commercial Bank Limited

 NRBC Bank Securities Limited

NRBCBSL Auditors’ Report To The Shareholders

Notes to the Financial Statements
For the period ended 31 December 2017
1.1 Nature of Business Activities
NRBC Bank Securities Limited (the Company), a majority owned subsidiary company of NRBC Bank Limited was incorporated
as a Public limited company in Bangladesh on 20th September, 2015 bearing certificate of incorporation no. C-125904/2015
under the Companies Act 1994 having its registered office at 114 Motijheel Commercial Area, Dhaka - 1000.

1.2 Nature of business

The main objective of the company is to carry on the business of a stock broker and stock dealer that is to buy, sell
and deal in shares, stocks, debentures and other securities under stock exchange in Bangladesh and/ or elsewhere as
well as to carry on any business as permissible for a broker and dealer duly licensed by the Bangladesh Securities and
Exchange Commission (BSEC).

2.0 Significant accounting policies and basis of preparation of financial statements

2.1 Statement of compliance

om
The financial statements of the Company are prepared on a going concern basis under historical cost conversion in
accordance with Bangladesh Financial Reporting Standards (BFRS)/Bangladesh Accounting Standards (BAS). The financial
statements have also been made in accordance with the Companies Act 1994, the Securities and Exchange Rules 1987,
the listing Rules of Dhaka Stock Exchange, Guidelines from Bangladesh Bank, other applicable laws and regulations.
.c
NRBC Bank Securities Ltd. was also registered with the Bangladesh Securities and Exchange Commission (BSEC) to act
as Stock Dealer for carrying its own investment in the capital market.

2.2 Use of estimates and judgments

d
The preparation of financial statements are inconformity with BFRS requires Management to make judgments,
ab

estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the periods in which the estimate
were made and in any future periods affected.
nk

2.3 Going Concern Assessment

The Company has adequate resources to continue in operation for foreseeable future. For this reasons the Directors
continue to adopt going concern basis in preparing the financial statements. The Probable credit facilities from parents
la

and Others as well as adequate resources of the Company provide sufficient funds to meet the present requirements
of its businesses and operations in the future.

2.4 The financial statements referred to here comprise

a. Statement of Financial Position
b. Statement of Comprehensive Income
c. Statement of Cash Flows
d. Statement of Changes in Equity and
e. Notes to the Financial Statements

2.5 Statements of Cashflow

Statement of cash flows is prepared in accordance with the Bangladesh Accounting Standard-7 “Statement of Cash
Flows”.

2.6 Reporting period

These Financial Statements cover one calendar year from 1st January to 31st December.
2.7 Functional and presentational currency
The financial statements are presented in Bangladeshi Taka, which is the Company’s functional currency.

219
 Annual Report 2017

3.0 Consistency Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these Financial
Statements.

3.1 Property, Plant and Equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses,
as per BAS 16: Property, Plant and Equipment. The cost of acquisition of an asset comprises its purchase price and any
directly attributable cost of bringing the assets to its working condition for its intended use inclusive of inward freight,
duties and non-refundable taxes.

3.2 Depreciation Policy

Full month’s depreciation has been charged on additions irrespective of date when the related assets are put into use
and no depreciation is charged for the month of disposal. Depreciation is provided at the following rates on straight-
line basis in accordance with BAS 16 over the periods appropriate to the estimated useful lives of the different types
of assets:

Categories of Assets Rate of Depreciation (%)

Furniture and fixtures 10

om
Office Equipments 10
Computer and Accessories 20
Bangladesh Made Computer Software 20
Motor Vehicles 30
Professionals and Reference Books
.c 10

3.3 Investment in TREC (Membership)

d
Investment in Stock Exchanges for TREC (Membership) are stated at cost. The cost of acquisition of a TREC (Membership)
is the purchase price paid to the previous holder. As per the Demutualization Act, 2013, Trading Right Entitlement
ab

Certificate (TREC) has been allotted 7,215,106 no. of ordinary shares of Dhaka Stock Exchange Limited (DSE).

3.4 Investment in Securities

Investment in listed securities are to be recognized at cost. Quarterly impairment test will be carried out by comparing
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cost with market price as a whole of its total holdings. In case of diminution of market value compared to cost, provision
will be made on portfolio basis but no unrealized gain will be booked when market value exceeds cost.

3.5 Margin Loan/Loan to Customer

la

The Company extends margin loan to the portfolio investors at an agreed ratio (between investors deposit and loan
amount) of purchased securities against the respective investor account as per prescribe Guideline of BSEC. The
investors are to maintain the margin as per set rules and regulations. The margin is monitored on daily basis as it
changes due to change in market price of shares. If the margin falls below the minimum requirement, the investors
are required to deposit additional fund to maintain margin as per rules otherwise the company take necessary steps to
bring the margin to the required level within prescribed guideline of BSEC.

3.6 Advance, Deposits and Prepayments

Advances are initially measured at cost. After initial recognition, advances are carried at cost less deductions, adjustments
or charges to other account heads. Deposits are measured at payment value. Prepayments are initially measured at
cost. After initial recognition, prepayments are carried at cost less charges to income statement.

3.7 Deferred Taxation

Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary
differences. Deferred tax assets are the amount of income taxes recoverable in future periods in respect of deductible
temporary Differences. Deferred tax assets and liabilities are recognized for the future tax consequences of timing
differences arising between the carrying values of assets, liabilities, income and expenditure and their respective
tax bases. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or
substantially enacted at the reporting date. The impact on the account of changes in the deferred tax assets and
liabilities have also been recognized in the statement of comprehensive income as per BAS-12 “Income Taxes

220 NRB Commercial Bank Limited

3.8 Provision for Income Tax

NRBCBSL Auditors’ Report To The Shareholders

Provision for current income tax has been made in compliance with relevant provisions of income tax law 1984.
3.9 Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand and cash at bank, which are held and available for use by the company
without any restriction and are readily convertible to a known amount of cash and that are subject to an insignificant
risk of change in value.
3.10 Share Capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
3.11 Payables
Trade and other payables will be stated at their nominal values.
3.12 Other Liabilities for Expenses
Liabilities are to be recognized for the goods and services received, whether paid or not for those goods and services.
Payables will not interest bearing and are stated at their nominal values.
3.13 Revenue Recognition

om
Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to
the company in accordance with the Bangladesh Accounting Standard (BAS) 18 “Revenue Recognition”
3.13.1 Interest Income
Income from margin loan/bank deposit are recognized on accrual basis. Such income is calculated considering daily
.c
margin loan balance of the respective parties or balances with the banks.
3.13.2 Brokerage Commission
Brokerage commission is recognized as income when selling or buying order executed.
d
3.13.3 Other Income
ab

Other income, comprises of service charges and capital gain, is recognized when service rendered and sell process
completed.
3.14 Event after the reporting period
As per BAS - 10 “Events after the Reporting period”, events after the reporting period are those events, favorable and
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unfavorable, that occur between the end of the reporting period and the date when the financial statements are
authorized for issue. Two types of events can be identified:
i) those that provide evidence of conditions that existed at the end of the reporting period (Adjusting events after the
reporting period) and
la

ii) those that are indicative of conditions that arose after the reporting period (Non- adjusting events after the reporting
period).
There were no material events which have occurred after the reporting period which could affect the values stated in the
financial statements
3.15 Related Party Transaction
As per BAS 24 “Related Party Disclosures”, a related party is a person or entity that is related to the entity (i.e. NRBCBSL)
that is preparing its financial statements. Related party transaction is a transfer of resources, services, or obligations
between a reporting entity and a related party, regardless of whether a price is charged as per BAS 24.
Related Parties include the Company’s Directors, key Management Personnel, Associates, Companies under common
directorship etc. as per BAS 24 “Related Party Disclosures”. All transactions involving related parties arising in the
normal course of business are conducted as arm’s length transactions. Related parties disclousre given in the Note-32
3.16 Authorization of the Financial Statements for Issue
The financial statements of the company have been authorized for issue by the Board of Directors on ………………………………..

3.17 General
i) Figures relating to previous year/period included in this report have been rearranged, wherever considered necessary.
ii) The figures appearing in these financial statements are expressed in Taka currency and rounded off to the nearest Taka
unless otherwise stated.

221
 Annual Report 2017

At Dec 31, 2017 At Dec 31, 2016

Taka Taka
4.00 Property, Plant and Equipment
At Cost
Opening Balance 5,827,527 -
Add: Addition During the Year 6,046,325 5,827,527
11,873,852 5,827,527
Less: Accumulated Depreciation 2,566,729 605,271
Written Down Value 9,307,123 5,222,256
A Schedule of Property, Plant and Equipment is given in Annexure-1
for Accounting & Tax Purpose
5.00 Investments in Shares
Quoted Share (Publicly Traded listed with DSE) 72,387,855 38,424,000
Cost of Acquisition of DSE TREC & Share 285,000,000 285,000,000
Initial Public Offer 1,620,640 30,000,000
Unquoted Shares (Demat Share & approved by SEC) 10,000,000 -

om
369,008,495 353,424,000
A Schedule of Investments in Shares is given in Annexure -2
6.00 Loan and Advances
Margin Loan 39,766,748 364,049
39,766,748 364,049
.c
This represent amount of loan to the customer against shares purchased
under prescribed guidline of BSEC
7.00 Advances, Deposits, Prepayments, Receivables
d
Security Deposit (Note: 7.01) 200,000 200,000
Advance Income Tax (Note: 7.02) 9,853,814 2,633,766
ab

Advance Others (Note: 7.03) 298,936 -

Accounts Receivable (Note: 7.04) 9,419,504 37,956,329
19,772,254 40,790,095
7.01 Security Deposits
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Security Deposit with Central Depository Bangladesh Ltd. (CDBL) 200,000 200,000
200,000 200,000
7.02 Advance Income Tax
On Turnover 5,722,379 205,693
la

On Bank Interest 1,141,116 984,552

On Dividend Income 2,974,319 1,443,021
Advance Tax- Others 16,000 500
9,853,814 2,633,766
7.03 Accounts Receivable
Advance Office Rent 150,000 -
Others 148,936 -
298,936 -
7.04 Accounts Receivable
Dhaka Stock Exchange Ltd. (Settelement A/c) 9,419,504 37,956,329
9,419,504 37,956,329
8.00 Deferred Tax Assets
Opening Balance (Incurred due to business loss) - 502,680
Add: Addition During the Year - -
- 502,680
Less: Recovered from Current Tax Liabilities of 2016 - 502,680
- -
Deferred Tax has been recognized in compliance of Paragraph # 34-35 of BAS 12 of BFRS in FY 2015 and it was recoved
from taxable profit as per section 38 of ITO, 1984.
222 NRB Commercial Bank Limited
 At Dec 31, 2017 At Dec 31, 2016

NRBCBSL Auditors’ Report To The Shareholders

Taka Taka
9.00 Cash and Cash Equivalents
Cash in Hand 1,896 23,876
Cash at Bank (Note: 09.01) 15,544,071 100,599,598
15,545,967 100,623,474
9.01 Cash at Bank
NRB Commercial Bank Limited, Principal Branch 6,082,238 77,174,990
NRB Commercial Bank Limited A/C 0101-360-099 4,821,044 1,164,039
NRB Commercial Bank Limited A/C 0101-360-098 103,822 30,065,865
NRB Commercial Bank Limited A/C 0101-364-002 1,157,372 45,945,087
Al-Arafa Islami Bank Limited, Motijheel Branch 9,461,833 23,424,608
Al-Arafa Islami Bank Limited A/C 0021220006396 2,339,299 21,852,316
Al-Arafa Islami Bank Limited A/C 0021220006385 7,122,534 1,572,291
15,544,071 100,599,598

om
10.00 Share Capital
Authorized Capital
100,000,000 Ordinary Shares of Taka 10.00 each 1,000,000,000 1,000,000,000
Issued, Subscribed and Paid-up Capital
40,000,000 Ordinary Shares of Taka 10.00 each fully paid 400,000,000 400,000,000
.c
Shareholding position at December 31, 2017 is as follows:
Name of Shareholders No. of shares
d
NRB Commercial Bank Limited 36,000,000
Dr. Toufique Rahman Chowdhury 200,000
ab

Mr. Md. Shahidul Ahsan 200,000

Mr. Mohammed Mahtabur Rahman 200,000
Ms. Anika Rahman 200,000
Mr. Marzanur Rahman 200,000
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Mr. A M Saidur Rahman 200,000

Mr. A.K.M Mostafizur Rahman 200,000
Mr. Abu Bakr Chowdhury 200,000
Mr. Mohammad Shahid Islam 200,000
la

Mr. Anwar Hossain 200,000

Mr. Tamal S.M Parvez 200,000
Mr. Rafikul Islam Mia Arzoo 200,000
Mr. Md. Mohiuddin 200,000
Ms. Shamimatun Nasim 200,000
Mr. Mohammed Adnan Imam 200,000
Mr. Rashed M Ibrahim 200,000
Mr. Dr. Rafiqul Islam Khan 200,000
Mr. Mohammad Zakaria Khan 200,000
Mr. Aziz U Ahmad 200,000
Mr. Mohammed Manzurul Islam 200,000
40,000,000
11.00 Retained Earnings
Opening Balance 6,746,124 (933,548)
Add: Total Comprehensive Income/(Loss) 16,649,366 7,679,672
23,395,490 6,746,124
Less: Dividend Paid During the Year - -
23,395,490 6,746,124

223
 Annual Report 2017

At Dec 31, 2017 At Dec 31, 2016

Taka Taka
12.00 Other Liabilities
Payable to Stock Exchanges (Note: 12.01) 14,940 4,593
Payable to Clients (Note: 12.02) 15,954,896 60,569,188
Current Income Tax Payable (Note: 12.03) 7,116,522 1,599,836
Deferred Tax Liabilty (Note: 12.04) 552,538 367,669
Gratuity Fund - 52,150
Provident Fund - 63,700
CDBL Charge 59,981 108,452
Statutory Audit Fee paybale 50,000 17,250
TDS at Source 8,500 123,210
VDS at Source 12,750 62,911
Networking/Brandwidth Bill Paybale 3,678 8,784
Provision for Diminution of Shares 5,741,327 -
Provision of Water & Sewerage 3,340 980

om
Payable with Marchant Bank 351,693 -
Provision of Printing & Stationery 93,988 -
Provision of Electricity 25,926 -
Provision of Office Maintenance 15,018 2,100
IPO Fund Payable
.c - 30,065,000
30,005,096 93,045,823
12.01 Payable to Stock Exchanges
d
Dhaka Stock Exchange Ltd. 14,940 4,593
14,940 4,593
ab

12.02 Payable to Clients 15,954,896 60,569,188

This represents amount payable to customers against sale of shares and/or receipts for purchasing of shares.
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12.03 Current Income Tax Payable

Opening Balance 1,599,836 -
Add: Addition During the Year 5,516,686 2,102,515
la

7,116,522 2,102,515
Less: Adjustment of the deffered tax incurred on account of loss in 2015 - 502,680
7,116,522 1,599,836
Taxable loss incurred in 2015 which has to be carryforwarded next 6 years under section 38 of ITO-1984. But company
incurred Taxable Profit in 2016 and, therefore, Defferred tax on account of business loss has been recovered from
current tax liability in 2016
12.04 Deferred Tax Liabilty
Opening Balance 367,669 -
Add: Addition During the Year 184,869 367,669
552,538 367,669
Less: Adjustment During the Year - -
552,538 367,669
13.00 Payable to Parents Company
Rent Payable - 631,926
- 631,926

224 NRB Commercial Bank Limited

 At Dec2017
31, 2017 At Dec2016
31, 2016

NRBCBSL Auditors’ Report To The Shareholders

Taka Taka
14.00 Interest Income
Interest on Bank Deposit 1,565,640 7,845,742
Interest Income from Margin Loan 4,390,044 1,048
5,955,684 7,846,790
15.00 Interest Expense
No loan were taken from Banks and Financial Institutions for the year.
16.00 Brokerage Commission
Brokerage Commission 26,747,599 985,879
Less: Direct Charges 2,748,580 93,247
23,999,019 892,632
16.01 Direct Charges for getting Brokerage Commission
Laga Charge 2,748,580 93,247
Howla Chanrge - -
2,748,580 93,247

om
17.00 Investment Income (Listed Company)
Dividend Income 7,681,339 7,215,106
Gain on Sale of Shares and Debentures(Net) 15,165,044 -
22,846,383 7,215,106
18.00 Other Operating Income
Transaction / Transmission Fee
.c 27,730 43,258
Account Opening/Closing Fee 219,500 23,000
Other Income 499,350 -
d
IPO Commission/fee 2,720 65
749,300 66,323
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19.00 Salary and Allowance

Basic Salary 4,493,329 1,427,129
Allowances 7,403,965 1,772,280
Festival Bonus 1,073,054 223,200
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Gratuity Expense 534,958 52,150

Company Contribution to Providend Fund 319,289 29,699
13,824,595 3,504,458
la

20.00 Rent, Taxes, Insurance, Electricity, etc.

Office Rent 3,608,577 631,926
Rate & Taxes (Note : 19.01) 46,069 44,324
DES/BSEC/RJSC Fees & Charge (Note : 19.02) 378,783 149,020
CDBL Charges (Note : 19.03) 1,583,426 113,252
Insurance Expenses 41,297 76,059
Electricity and Other Utility Expenses 284,583 1,610
5,942,735 1,016,191
20.01 Rate & Taxes
Patent /Trade License/Holding Tax/Sign Board Tax 46,069 44,324
20.02 DSE/BSEC/RJSC Fees & Charge
RJSC Fess 3,000 18,120
DSE/Broker Association Membership Fees 190,000 25,000
TREC Renewal Fees 50,000 50,000
Authorized Representative Fees 67,200 38,400
Investor Protection Fund Fees 6,883 -
TWS establishment Fee 61,700 17,500
378,783 149,020

225
 Annual Report 2017

At Dec2017
31, 2017 At Dec2016
31, 2016
Taka
Taka Taka
Taka
20.03 CDBL Charges
CDBL Charges - Share Trading 1,489,426 111,752
CDBL Charges - Fees 94,000 1,500
1,583,426 113,252
21.00 Legal/Professional/Preliminary Expenses
Notary Public and Other Charges 2,640 3,390
Legal & Consultancy Fees 63,300 76,946
65,940 80,336
22.00 Stamp, Postage & Telecommunication etc.
Stamp and Coutridge Cost 18,102 13,434
Postage & Courier Charges 11,623 125
Telephone Charges 239,879 33,409
Fax, Networking/Bandwith Charge 484,152 49,184

om
753,756 96,152
23.00 Stationery, Printing, Advertisement, etc.
Stationery and Printing Expenses 762,534 137,253
Publicity, Advertisement, etc 123,625 -
Photocopy & Book Binding 2,145 1,565
Computer Expenses
.c 251,847 19,008
1,140,151 157,826
24.00 Board of Directors' Meeting Expenses
d
BOD Meeting Expenses 404,150 227,169
404,150 227,169
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25.00 Bank/Financial Expenses

Excise Duty 74,000 37,500
Bank Charge & Commission 26,765 5,697
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100,765 43,197
26.00 Depreciation and Repair of the Property, Plant & Equipment
A. Depreciation of the Freehold Properties
Furniture & Fixtures 109,793 4,133
la

Office Equipment 118,596 4,388

Computer Accessories 629,069 8,750
Bangladesh Made Software 360,000 30,000
Motor Vehicles 744,000 558,000
1,961,458 605,271
B. Repair, Renovation & Maintenance of the Company's Assets:
Repair and Repalcement of Office Equipment and Machinery 20,460 -
20,460 -
Total [a+b] 1,981,918 605,271
27.00 Other Expenses
Office Maintenance 266,501 28,650
Local Conveyance 72,017 4,180
Travelling Expenses 99,588 -
AGM Expenses 91,854 -
Uniform & Lerveries-SCS Staff 22,850 -
IPO Application Fee 13,000 -
Entertainment 620,883 87,863
Newspaper and Periodical 7,435 2,452
1,194,128 123,145
226 NRB Commercial Bank Limited
 At Dec2017
31, 2017 At Dec2016
31, 2016

NRBCBSL Auditors’ Report To The Shareholders

Taka Taka
28.00 Provision for dinimunation of Share/Securities
The Mangment of the securities are decieded to keep 100% Provsion against unrealized loss of listed share invested by
company.
Provision for unrealized loss of share/securities 5,741,327 -
Provision for Others - -
5,741,327 -
Provisions for diminution in value of investments have been maintained in accordance with BAS-37 and BSEC Circular #
SEC/CMRRCD/2009-193/166 Dated December 08, 2015.

29.00 Current Tax Expense

Operating Profit 28,092,247 10,149,856
Total Taxable income/loss as per income tax law,1984 27,564,049 9,099,374
Current Tax Expense for standard tax rate @35% and other rate 5,516,686 2,102,515

om
30.00 Deferred Tax Expense Carrying Amt Tax Base
Fixed Assets 9,307,124 7,728,443 1,578,681 1,050,482
Net Taxable Temporary Difference [i.e. Tax will be paid in future Period] 1,578,681 1,050,482
Corporate Tax @ 35% I.e. Deferred Tax Liability as of 31.12.2017 552,538 367,669
Less : Deferred tax Liabilties in 2016
.c 367,669 -
Deferred Tax expnese for the quarter end on 31.12.2017 184,869 367,669
d
31.00 Earnings Per Share (EPS)
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Profit after Taxation 16,649,365 7,679,672

Number of Ordinary Shares Outstanding 40,000,000 40,000,000
0.42 0.19
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Earnings per shares (EPS) have been computed by dividing the basic earnings by the number of ordinary shares
outstanding as on December 31, 2017 in accordance with BAS-33.
32.00 Nature and type of related party transaction of the company
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A. NRBC Bank Limited : Parents Subsidiary Relationship

For the year For the year
Nature of Transaction Types Note
Dec 31, 2017 Dec 31, 2016
Advance Income Tax- AIT on Interest Assets- Inter Company 7 1,084,964 981,278
Bank Deposit: Assets- Inter company 9 6,082,237 77,174,991
NRB Commercial Bank Limited 4,821,044 1,164,039
A/C 0101-360-099
NRB Commercial Bank Limited 103,822 30,065,865
A/C 0101-360-098
NRB Commercial Bank Limited 1,157,372 45,945,087
A/C 0101-364-002
Payable to NRCB Bank Ltd : Client Depsoit Liability-Inter Company 12 31,130 58,765,953
Rent Payable to the Parents Liability-Inter Company 13 - 631,926
Interest on Bank Deposit Income-Inter company 14 1,036,861 7,812,996
Brokerage Commission Income-Inter company 16 7,500,601 808,926
Rent, Tax and Insurance : Expense-Inter Company 19

227
 Annual Report 2017

Office Rent 3,297,000 631,926

Bank/Financial Expense Expense-Inter Company 24 19,424 43,758

B. Other Related Parties with Directors :

i. No other transaction been occured with stake holding of Directors of NRBC Bank Securities Limited
ii. Above transactions has been occurred under normal course of business

33.00 Events after Reporting Period

The Board of Directors of NRBC Bank Securities Limited in its 12th Meeting held on March 25, 2018 recommended
5% cash Dividend for the year end December 31, 2017.

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228 NRB Commercial Bank Limited

 NRBC Bank Securities Limited
Details of Property, Plant & Equipment for Accounting Purpose
As at December 31, 2017
Annexure - 1
Assets Depreciation
Sl Addition Disposal Addition Disposal
Properties & Assets Opening Closing Rate of Opening Closing Book Value
NO. during the during the during the during
Balance Balance Depreciation Balance Balance
year year year the year
1 Furniture and fixures 495,927 1,021,845 - 1,517,772 10.00% 4,133 109,793 113,926 1,403,846
2 Office Equipment 526,600
la 844,750 - 1,371,350 10.00% 4,388 118,596 122,984 1,248,366
3 Computer and Accessories 525,000 4,179,730 - 4,704,730 20.00% 8,750 629,069 637,819 4,066,911
4 Bangladesh Made Computer Software 1,800,000 - - 1,800,000 20.00% 30,000 360,000 390,000 1,410,000
5 Motor Vehicles 2,480,000 - - 2,480,000 30.00% 558,000 744,000 1,302,000 1,178,000
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6 Professionals and Reference Books - - - - 10.00% - - - -
Total 5,827,527 6,046,325 11,873,852 605,271 1,961,457 - 2,566,728 9,307,123
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Details of Property, Plant & Equipment for Tax Purpose
d As at December 31, 2017

Assets Depreciation
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Sl Addition Disposal Addition Disposal
Properties & Assets Opening Closing Rate of Opening Closing Book Value
NO. during the during the during the during
Balance Balance Depreciation Balance Balance
year year year the year
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1 Furniture and fixures 495,927 1,021,845 - 1,517,772 10.00% 49,593 146,818 196,411 1,321,361
2 Office Equipment 526,600 844,750 - 1,371,350 10.00% 52,660 131,869 184,529 1,186,821
3 Computer and Accessories 525,000 4,179,730 - 4,704,730 30.00% 157,500 1,364,169 3,183,061
1,521,669
4 Bangladesh Made Computer Software 1,800,000 - - 1,800,000 50.00% 900,000 450,000 1,350,000 450,000
5 Motor Vehicles 2,480,000 - - 2,480,000 20.00% 496,000 396,800 892,800 1,587,200
6 Professionals and Reference Books - - - - 10.00% - - - -
Total 5,827,527 6,046,325 11,873,852 1,655,753 2,489,656 - 4,145,409 7,728,443

NRBCBSL Auditors’ Report To The Shareholders

229
 Annual Report 2017

NRBC Bank Securities Limited

Investments in Shares
As at December 31, 2017

Annexure - 2
Shares (quoted):

Number of Market Price Total Market Cost Per

Particulars Total Cost
Shares Per Share Price Share
ABBANK 12,500 22.10 276,250.00 21.62 270,217.50
BBS 145,304 38.20 5,550,612.80 45.19 6,565,793.73
DHAKABANK 200,000 22.00 4,400,000.00 25.00 5,000,620.00
FEKDIL 75,133 19.50 1,465,093.50 21.15 1,589,062.95
ILFSL 100,000 22.10 2,210,000.00 22.78 2,277,960.00
KDSALTD 185,506 66.60 12,354,699.60 76.39 14,171,396.96

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LANKABAFIN 100,000 47.80 4,780,000.00 49.50 4,949,720.00
MERCANBANK 350,000 26.40 9,240,000.00 27.60 9,661,435.00
MJLBD 18,766 109.10 2,047,370.60 116.89 2,193,475.17
NAHEEACP 6,847 73.40 502,569.80 8.33 57,058.33
NAVANACNG 28,200 67.10 1,892,220.00 71.35 2,012,179.98
NHFIL 65,913
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47.20 3,111,093.60 50.06 3,299,275.22
RAKCERAMIC 58,500 59.90 3,504,150.00 61.70 3,609,537.75
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SAPORTL 132,911 34.30 4,558,847.30 40.40 5,369,205.67
SOUTHEASTB 11,573 22.20 256,920.60 21.89 253,319.08
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TITASGAS 93,500 44.20 4,132,700.00 46.08 4,308,283.65

UNIONCAP 200,000 20.10 4,020,000.00 20.03 4,006,700.00
WMSHIPYARD 80,000 29.30 2,344,000.00 34.91 2,792,614.29
Total 66,646,527.80 72,387,855.28
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Shares (unquoted):
Particulars No. of Share Cost Per Share At Cost
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UFS-Pragati Life Unit Fund 1000000 10 10,000,000

Total 1000000 10,000,000

Initial Public Offer:

Particulars No. of Share Cost Per Share At Cost
Bashundhara Paper Mills Limited 16335 80 1,306,800
Aman Cotton Fibrous Limited 7846 40 313,840
Total 24181 1,620,640

Cost of Acquisition of DSE TREC & Share

Particulars At Cost
Dhaka Stock Exchange Limited (*) 285,000,000
Total 285,000,000

(*) This represents the acquisition cost of DSE memberships paid by NRBC Bank Securities Limited. Acquisition
of Trading Right Entitlement Certificate (TREC) bearing No. 082 of DSE along with acuisition of 7,215,106 nos.
Ordinary Shares of DSE held in the BO account and blocked account maintained with CDBL under the control of
the Board of Directors of DSE.

230 NRB Commercial Bank Limited

 The Management & E

The Management & Executives

xecutives

MD& CEO Company Secretary

Mr. Khondoker Rashed Maqsood Mr. Md. Mozammel Hossain

Deputy Managing Director First Vice President

Mr. Kazi Md. Talha Mr. Bm Anowar Hossain
Mr. Md. Mukhter Hossain Mr. Habibur Rahman Khan
Senior Executive Vice President Mr. Md. Abu Moshaheed
Mr. Muhammad Hajjaj-Bin-Mahfooz Mr. Md. Monirul Islam
Mr. Kabir Ahmed Mr. Hasnat Reza Mohibbul Alam
Mr. Md. Azim Uddin Mr. Golam Mahamood
Mr. Syed Mahbubul Haq Mr. Md. Shafiul Azam
Mr. M. M. Moshiur Rahman

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Executive Vice President Mr. Mohammad Shahidul Islam
Mr. Tanusree Mitra Mr. Md. Monirul Islam
Mr. Kazi Md. Safayet Kabir Mr. Md. Arifur Rahman
Mr. Harunur Rashid
Mr. Md. Kabir Hossain
.cMr. G.K.A.M. Maksud Bin Harun
Mr. Md. Nasimul Kabir
Mr. Md. Delwar Hossain Mr. Praduyth Bikash Chowdhury
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Mr. A K M Rabiul Islam Mr. Sayed Ahmed
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Mr. Abdul Awoal Mia

Senior Vice President
Mr. Md. Abdul Gofur Raana
Mr. Md. Mynul Hossain Kabir
Mr. Md. Ruhul Amin
Mr. Dipak Kumar Chakraborty
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Mr. A. S. M. Maruf Uddin Kamal

Mr. A. I. M. Mostafa
Mr. Mohammad Shamsuzzaman
Mr. Md. Anisur Rahman
Mr. Kazi Zunaid Zaman
Mr. Mohammad Mostahaque
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Ms. Nighat Anjum

Mr. Md. Joynal Abedin
Mr. Subhashis Roy
Mr. Sayed Md. Moharam Hossain
Mr. Mohd. Shamim Ahmed Joarder
Vice President Mr. Syed Sirajul Haque
Mr. Asif Ahmed Mr. Sk. Ahsanul Haque
Mr. Ibne Ali Md. Najmul Kibria
Assistant Vice President
Mr. Chowdhury Mohiuddin
Mr. Md. Abdullah Al Mamun
Mr. Md. Haider Akhlaque
Mr. Mohammad Saiful Islam
Mr. Md. Masum Haider
Mr. M. M. Waliar Rahman
Mr. Ashim Kumar Das
Mr. Mohammad Aminul Islam
Mr. Md. Azharul Islam
Mr. Shamol Chandra Barmon
Mr. Md. Akhtar Hossain
Mr. Md. Sakhawat Hossain
Mr. Forhad Sarker
Mr. Md. Jafar Iqbal Howlader
Major Md Parvez Hossain (Retd)
Mr. Md. Solaiman Hossain

231
 Annual Report 2017

Mr. Mohammad Abdus Shobhan Ms. Suriya Rahman

Mr. Dewan Al Amin Al Mutakabbir Mr. Md. Mamun Hossain
Mr. Harunur Rashid Mr. Md. Mehbub Ashraf
Mr. Muklessur Rahman Mr. Md. Delower Hossain
Mr. Md. Lalon Sarwar Mr. Mohammed Monowar Hossain
Ms. Rima Zaman Mr. Kazi Mizanur Rahman
Ms. Mahfuza Akther Mr. A.K.M Nazmul Hasan
Mr. Shah Md. Ashiqur Rahman Mr. Kazi Rejaul Qais
Mr. Saadi Ul Baree Mr. Moshiur Rahman
Mr. Shajid Ikbal Mr. Ahsan Md. Sajid Khan
Mr. Maniruzzaman Mian Ms. Shahin Sultana

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232 NRB Commercial Bank Limited

 The Memorable Events-2017

The Memorable Events-2017

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Honorable Education Minister Mr. Nurul Islam Nahid, MP inaugurated 59th Branch located at Metropolitan University Campus, Boteshwar,
Sylhet on 21 December 2017. Honorable Chairman Mr. Tamal S M Parvez, Director & Chairman of Metropolitan University Dr. Toufique
Rahman Chowdhury were present on the occassion among the others.
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Honorable Member of Parliament and President of Bangladesh Cricket Board Mr. Nazmul Hasan Papon inaugurated 60th Branch located
at Bhairab on 24 December 2017 in presence of Mr. Tamal S M Parvez-Chairman NRBC Bank Limited and Managing Director (C.C) Kazi
Md. Talha.

233
 Annual Report 2017

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Mr. Kutub Uddin-Alternative Director of NRBC Bank and Business Personality inaugurated Bank’s 61th Branch at Hathazari, Chittagong on 26
December, 2017.
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Signing ceremony between NRBC Bank and US Bangla Airlines Ltd. regarding EMI facility of Ticketing and Package Tour.

m¤cÖwZ w`bvRcyi kn‡i Òiscyi wefv‡M K…wlwfwËK wkí c«wZôv‡b gvbbxq c«avbgš¿xi
c«wZk«ywZ I wb‡`©kbv ev¯Íevq‡b e¨vsKvi -GmGgB D‡`¨v³v gZ wewbgq mfv I c«Kv‡k¨
FY weZiY AbyôvbÓ AbywôZ nq| D³ mfvq GbAviwe Kgvwk©qvj e¨vs‡Ki dyjnvU
kvLv, w`bvRcyi Gi M«vnK †gmvm© kvnwiqv †U«Wvm©, †c«vc«vBUi †gvt †ZvRv‡¤§j †nv‡mb †K
70.00 j¶ UvKvi F‡Yi †PK weZiY K‡ib evsjv‡`k e¨vs‡Ki GmGgB I †¯úkvj
†c«vM«vg wefv‡Mi wRGg Rbve ¯^cb Kygvi ivq|

234 NRB Commercial Bank Limited

 The Memorable Events-2017
Honorable Mayor of Chittagong City Corporation and Chief guest of the program Mr. A.J.M Nasir Uddin inaugurated the Agent Banking Services
of NRBCBank in Chittagong on 9th December 2017.

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Access to Information (A2i) Prime Minister’s Office organized a view exchange meeting with Rural Electrification Board (REB) and 3 Bank’s
regarding collection of REB Bill. Mr.Kabir Bin Anwer, Director General, Major General Moin Uddin, Chairman of REB and Mr. Dewan Mujibur
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Rahman, former Managing Director & CEO of NRBC Bank were present on that discussion metting.

235
 Annual Report 2017

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236 NRB Commercial Bank Limited

 NRBC Bank Deposit Products

Deposit Products
Savings Account Current Deposit Account
Customer can open Savings Account in his/her own Current Deposit Account is designed for business
name or joint name. Any amount of the balance can transactions without any restriction on withdrawal or
be withdrawn from this account. There are no hidden deposit either in amount or in number of transaction.
charges and half yearly maintenance fee. NRBC Bank Other key facilities include cheque book, VISA debit card
Limited ensures attractive rate of return on balance and internet banking facility, access to account 24/7 via
amount. The rate of interest of this account is 5.00%. ATM, and earning interest etc. The rate of interest is
Apart from this, cheque book, VISA debit card, internet 1.00% p.a. on daily balance.
banking and access to account 24/7 via ATM are available
to customers. Short Notice Deposit Account
Short Notice Deposit Account is an interest bearing
Shohoj Shanchay Deposit Account
deposit account specially designed to facilitate the
Shohoj Shanchay Deposit Account is a unique account financial needs of large corporate or Government bodies.
with facility to earn higher interest and enjoy the This account allows customers withdraw and deposit

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freedom of savings account. Any individual can open this any amount and earn a higher rate of return at the end
account in his/her own name or jointly by depositing any of month. Among the key features cheque book facility,
of the following minimum declared amounts. Customer VISA debit card facility, access to account 24/7 via ATM
can deposit and withdraw any amount from this account. and earning interest are mentionable. Interest rate on
There are cheque book and debit card facilities against SND accounts varies on the daily balance of the account.
this account. If customer maintains minimum declared
.c Present rates of interest are as under;
amount throughout the month, he/she will get interest
at the end of the month as per following table: Amount Rate(%)
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Below 1 crore 2.00%
SL. No Minimum Declared Amount Interest Rate
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1 crore and above but below 50 crore 3.00%

01 50,000.00 5.25%
50 crore and above 3.50%
02 1,00,000.00 5.50%
03 2,00,000.00 5.75% Fixed Deposit Account
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Student Savings Account Under this account customer can deposit any amount
Student Savings Account is designed for our future from Tk 10,000.00 for a specific tenor and enjoy fixed
generations to introduce them in Banking practice. Any rate of interest at maturity. Present rates of interest are
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student at the age of below eighteen years can open given below;
this account. However, the account is operated by legal Tenor Rate (%)
guardian of the students. Cheque and ATM card (only
debit card) can be used to withdraw amount from the 1 Month 6.25%
account. Maximum limit for monthly withdrawal through 3 Months 8.50%
ATM Card and Point of Sales (POS) will be Tk 2,000.00. 6/12 Months 8.75%
This limit may be increased up to Tk 5,000.00 on request
2 Years 9.00%
of the guardian.
3 Years 9.50%
Savings Account-RMG Workers Money Maker Scheme
Savings Account-RMG Workers is designed to provide To encourage small savings Money Maker Scheme
financial services to the garment workers as a part of the is introduced to accept small amount of money on
Bank’s Financial Inclusion Strategy. Any garment workers monthly basis from customer to inculcate the savings
can open this account. This account is similar to Bank’s tendency among the small savers. It is a simple, safe
regular savings account except the rate of interest and and convenient way to make money grow. Under this
minimum balance. The rate of interest of this account scheme customers deposit a certain amount in every
is 6.00% p.a. and minimum required balance is Tk 10.00 month for a specific tenor from 3 years, 5 years, 7 years
only. or 10 years and get attractive lump sum at maturity as

237
 Annual Report 2017

mentioned in the following table:

Monthly
Installment 200 500 1,000 2,000 2,500 5,000 10,000 20,000 25,000
Term
03 Years 8,000 20,000 40,000 80,000 1,00,000 2,00,000 4,00,000 8,00,000 10,00,000
05 Years 15,460 38,650 77,300 1,54,600 1,93,250 3,86,500 7,73,000 15,46,000 19,32,500
07 Years 24,020 60,050 1,20,100 2,40,200 3,00,250 6,00,500 12,01,000 24,02,000 30,02,500
10 Years 40,400 1,01,000 2,02,000 4,04,000 5,05,000 10,10,000 20,20,000 40,40,000 50,50,000

Corporate Money Maker Scheme

The Corporate Money Maker is similar to regular Money Maker Scheme except the size of installment and the
benefit provided. Any individual and corporate bodies such as multinational company, corporate house of EPZ,
local corporate house (sole proprietorship concern, partnership concern, private and public limited company),
educational institute, non-banking financial institute, insurance company, club and association, NGO etc. can open
this scheme. Monthly installment size and corresponding maturity value, principal with interest rate, are as below;

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Monthly
Installment 25,000.00 50,000.00 75,000.00 1,00,000.00 3,00,000.00 5,00,000.00
Term
02 Years 6,42,000.00 12,84,000.00 19,26,000.00 25,68,000.00 77,04,000.00 1,28,40,000.00
03 Years 10,00,000.00 20,00,000.00
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30,00,000.00 40,00,000.00 1,20,00,000.00 2,00,00,000.00
04 Years 14,49,000.00 28,98,000.00 43,47,000.00 57,96,000.00 1,73,88,000.00 2,89,80,000.00
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05 Years 19,00,000.00 38,00,000.00 57,00,000.00 76,00,000.00 2,28,00,000.00 3,80,00,000.00

Priority Deposit Scheme

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Under this scheme customer can open account in his or her own name or jointly or in name of institution or
organization by depositing at least Tk 5 lac for any of the tenor from 1 month, 3 months, 6 months, 1 year, 2 years
and 3 years. This scheme is auto renewable. Present rates of interest are as below:
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Rate (in percentage)

Amount in Taka
1 Month 3 Months 6 Months 1 Year 2 Years 3 Years
5.00 lakh and above but less than 50.00 lakh 7.00 9.60 9.80 10.05 10.25 10.50
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50.00 lakh and above 7.50 9.80 10.05 10.10 10.50 10.75
Deposit Pension Scheme
Deposit pension scheme allows customers to deposit a specific amount every month throughout six year. At the end
of the 6 years customer can get either a lump sum amount or a specific monthly pension throughout next five years.
At the end of the pension period customer will get the lump sum amount. Furthermore, at any time of the pension
period, customer may stop enjoying pension and withdraw the full lump sum according to the below table.

Option: A Option: B
Monthly
installment Amount payable on maturity Monthly pension payable after depositing Fixed amount payable after receiving
(after 6 years) monthly installment for 6 years monthly pension for 5 years
1,000.00 95,200.00 700.00 95,200.00
2,000.00 1,90,400.00 1,400.00 1,90,400.00
3,000.00 2,85,600.00 2,100.00 2,85,600.00
4,000.00 3,80,800.00 2,800.00 3,80,800.00
5,000.00 4,76,000.00 3,500.00 4,76,000.00
10,000.00 9,52,000.00 7,000.00 9,52,000.00

238 NRB Commercial Bank Limited

 Monthly Benefit Scheme Lakhpoti Savings Scheme

Diposit Products
Monthly benefit scheme is designed to provide benefit Customer can open account under this scheme by
on monthly basis against a one-time deposit. Customer depositing an Initial Deposit amount along with First
can open this scheme in his or her own name or jointly Installment amount. Tenor of this scheme is 5 years.
or in name of in name of institution or organization by After depositing 60 installments and the initial deposit
depositing any amount of Tk 50,000 or its multiple. customer will get attractive benefit as following;
Tenor of the scheme is 2 years and 3 years. Benefit will
be given upon completion of each month until maturity. Deposit Amount
Payable on
Principal will be given back to the customer upon Monthly Maturity
Initial Deposit
maturity or encashment of the scheme. At present the Installment
monthly benefit is as under; 15,000 1,000 1,00,000
Tenor Benefit Per Month for Per Lakh Taka 30,000 2,000 2,00,000
2 Years 900 45,000 3,000 3,00,000
3 Years 925 60,000 4,000 4,00,000
75,000 5,000 5,00,000
Double Benefit Deposit Scheme (DBDS)

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1,50,000 10,000 10,00,000
Under this scheme deposited amount will be doubled at
6 years and 6 months. Any type of customer can open 7,50,000 50,000 50,00,000
this scheme by depositing Tk 10,000 or its multiple. 15,00,000 1,00,000 1,00,00,000

Triple Benefit Deposit Scheme (TBDS) Millionaire Savings Scheme

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Under this scheme principal amount will be tripled at This is an ideal scheme for individuals who want to save
12 years 6 months. Any customer can open account their surplus income and attain a savings goal. Customers
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under this scheme in his own name or jointly or in name can deposit a specific amount each month to become a
of in name of institution or organization by depositing millionaire. The amount of installment depends on the
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Tk 10,000 or any amount of its multiple. Moreover, if tenor of the scheme starting from 3 years.
customers encash the scheme before maturity, they
will get the full interest for the completed year(s) as Monthly Amount Payable
Term
mentioned below. Yearly payable amount with principal Installments on Term
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amount for amount of Tk 10,000.00 is given below: 03 Years 24,500.00

04 Years 17,500.00
Yearly payable amount
Tenor 05 Years 13,300.00
with principal amount
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00 Year 10,000 06 Years 10,500.00 Tk 10.00 Lakh

01 Year 10,550 07 Years 8,500.00
02 Years 11,190 08 Years 7,000.00
03 Years 12,010 10 Years 5,000.00
04 Years 12,910 Student Savings Scheme
05 Years 13,960 This product is designed aiming to build saving tendency
06 Years 15,220 among students. Any student at the age of below
07 Years 16,590 eighteen years can open this scheme by depositing first
installment. Parents or legal guardian of the students will
08 Years 18,370 operate the scheme on behalf of the students. Monthly
09 Years 20,240 installment size and corresponding maturity value
10 Years 22,090 (Principal plus Interest) are as below;
11 Years 25,160
12 Years 6 Months 30,000

239
 Annual Report 2017

Monthly Installment
200.00 300.00 500.00
Term
3 Years 8,600.00 12,900.00 21,500.00
5 Years 16,160.00 24,240.00 40,400.00
7 Years 25,600.00 38,400.00 64,000.00
10 Years 44,460.00 66,690.00 111,150.00
Money Maker Scheme-RMG Workers
This scheme is designed to provide financial services to the garment workers of the country. Any garment worker
can open this scheme upon producing employee id. This is a monthly installment based scheme with higher rate of
returns. Monthly installment size and corresponding maturity value are given in the following table:
Installment
200 500 800 1,000 1,500 2,000 2,500 3,000 5,000 10,000
Tenor
3 Years 8,400 21,000 33,600 42,000 63,000 84,000 105,000 126,000 210,000 420,000

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5 Years 15,580 38,950 62,320 77,900 116,850 155,800 194,750 233,700 389,500 779,000
7 Years 24,300 60,750 97,200 121,500 182,250 243,000 303,750 364,500 607,500 1,215,000
10 Years 41,120 102,800 164,480 205,600 308,400 411,200 514,000 616,800 1,028,000 2,056,000

Note:
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1. In case of the death of scheme holder before maturity, ledger balance (calculated based on scheme rate) is
given to the nominee(s) or legal successor(s) after deduction of government dues for the period completed by
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the scheme holder.
2. Depositor may avail credit facility against all schemes according to the credit policy of the bank.
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Special Products
Apart from the above deposit products, to honor the contribution of different individuals in our society and to
include the unbanked population into banking services, we have the following deposit products with special rates
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and privileges:

Sl. No. Name of the Product Target People

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1 wkÿv¸iæ Teacher
2 †`nNwo Doctor
3 `ye©vi Defense Personnel
4 jvj-meyR Freedom Fighter
5 ¸iæRb Senior Citizen
6 cÖevmx Non-resident Bangladeshi
7 gv Mother
8 AwaKvi Under Privileged/Marginalized People

240 NRB Commercial Bank Limited

RANGPUR

BRANCH NETWORK
NRBC Bank Limited

SYLHET

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RAJSHAHI

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DHAKA
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NARAYANGANJ
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KHULNA

CHITTAGONG
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BARISAL
 Annual Report 2017

Branch Network
Dhaka Division Uttara Branch
Principal Branch Masum Plaza
114, Motijheel C/A, Dhaka-1000 House # 13, Road # 15,Robindra Swarani
Tel: +88 02- 9573422-30 Sector#3 ,Uttara, Dhaka-1230
Fax : +88 02- 9588 323 Tel: +88 02- 58950025, +88 02- 55093592
Cell : 01955 502 101, 01678 433 101 FAX-88 02-58950126
E Mail : [email protected] Cell : 019 555 02 108, 01678433 108
HOB: Mr. Muhammad Hajjaj-Bin-Mahfooz, SEVP E Mail : [email protected]
HOB: Mr. Md. Delwar Hossain, EVP
Gulshan Branch
Silver Tower, 52, Gulshan Avenue, Board Bazar Branch
Gulshan -1 , Dhaka-1212 China Town Bangladesh
Tel: +88 02- 9897531-32 84 Kalameswar, Ward No.-35, Zone -02
Fax: +88 02- 8834842 Board Bazar, Joydebpur, Gazipur
Cell : 019 555 02 102, 01678 433 102 Tel : +88 02- 9291834, Fax : +88 02-9291832

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E Mail : [email protected] Cell : 019 555 02 109, 01678 433 109
HOB: Mr. A K M Rabiul Islam, EVP E Mail : [email protected]
HOB: Mr. Md. Mamun Hossain, AVP
Ruhitpur Branch
Rahim Noor Skyview Tower Mograpara Branch
Nurul Islam Supermarket, Habibpur (Mograpara
Ruhitpur Bazar, Keraniganj,Dhaka
Tel: +88 02-7766 886, +88 02- 7766 887
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Chowrasta), Mograpara, Sonargaon, Narayanganj
Cell : 019 555 02 103, 01678 433 103 Cell : 019 555 02 110, 01678 433 110
E Mail : [email protected] E Mail : [email protected]
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HOB: Mr. Mohammad Abul Kalam Azad, PO HOB: Mr. Md. Delower Hossain, AVP
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Mawna Branch Dhanmondi Branch

Hazi Abdus Salam Tower Mir Nur Square, House # 43, Road # 2/A (New)
Dhaka- Mymensingh Road Satmosjid Road, Dhanmondi, Dhaka-1209
Mawna, Sreepur, Gazipur Tel: +88 02-9671670, +88 02-9671713,
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Cell : 019 555 02 104, 01678 433 104 +88 02-9671786, +88 02-9671798
E Mail : [email protected] Cell : 019 555 02 111, 01678 433 111
HOB: Mr. Muhammad Shamim Ahmed Shahin, PO E Mail : [email protected]
HOB: Mr. Abdul Awoal Mia, FVP
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Chinishpur Branch
Shamsuddin Bhuiyan Plaza(Jailkhana Morh) Aganagar Branch
Chinishpur, Narsingdi. Din Complex, Kodomtoli Moore,
Tel: +88 02 9452481-2, PABX: Ext-100,101 Shuvadda,Keranigonj, Dhaka
Fax:+88 029452483. Tel: +88 02-7764581-82
Cell : 019 555 02 106, 01678 433 106 Cell : 019 555 02 112, 01678 433 112
E Mail :[email protected] E Mail : [email protected]
HOB: Mr. Md. Abdullah-AL-Wadud, PO HOB: Mr. Md. Nasimul Kabir, FVP

Hemayetpur Branch Gorai Branch

225 Singair Road, Hemayetpur, Savar, Dhaka Mir Milton Complex
Tel: +88 02-7745151 Gorai, Mirzapur, Tangail
Fax: +88 02-7745152 Cell : 019 555 02 113, 01678433113
Cell : 019 555 02 107, 01678 433 107 E Mail : [email protected]
E Mail : [email protected] HOB: Mr. Md. Rahat Siddique, PO
HOB: Mr. Saiful Islam Rubel, PO

242 NRB Commercial Bank Limited

Panchabati Branch Mirpur Branch

Branch Network
Mamun Super Market –Panchaboti, Harihorpara, Zone Tower, 128, Rokeya Sarani
Enayetnagar, Fatulla, Narayangonj Mirpur, Dhaka-1216
Tel: +88 02-7670461 Tel: +88 02-9032375-76
Tel: +88 02-7670462 (Fax: 88 02-9032377
Cell : 019 555 02 114, 01678433114 Cell : 019 555 02 129, 01678 433 129
E Mail : [email protected] E-mail: [email protected]
HOB: Mr. Md. Solaiman Hossain, AVP HOB: Mr. Md. Shafiul Azam, FVP

Zirabo Branch Harirampur Branch

Fuad Complex, Zirabo Bazar , Taibpur, Sohel Market (1st Floor)
Ashulia, Savar, Dhaka Sonargaon Janapath Road
Tel: +88 02-7792671, +88 02-7792672 Khalpur, Uttara, Dhaka-1230
Cell : 019 555 02 115 , 01678 433 115 Cell : 019 555 02 133, 01678 433 133
E Mail : [email protected] Email: [email protected]
HOB: Mr. Md. Arifur Rahman, FVP HOB: Mr. M. M. Waliar Rahman, AVP

Nabinagar Branch Nayabazar Branch

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Unity Trade Centre, Dendabor Polly Bidyut, Holding # 31, Road : Nawab Yousuf Road,
PO.Savar Cantt., PS.Ashulia, Dhaka Ward# 35, Kotawali Dhaka-1100
Tel: +88 02-7792673-74 Tel: +88 02 57396626
Cell : 019 555 02 117, 01678 433 117 Cell: 019 555 02 139, 01678 433 139
E Mail : [email protected] Email: [email protected]
HOB: Mr. Mohammad Sultan Chowdhury, FAVP
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HOB: Mr. Asif Ahmed, VP

Banani Branch Bhulta Branch

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‘’Rosebud”, House# 155, Road# 11 & 13/B, Salam Mansion, Mir Market
Block # E, Word#7, Banani, Dhaka-1213 Golakandail Union, Rupganj
Bhulta, Narayanganj
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Tel: +88 02-9822394 +88 02- 9822395 +88 02-

9822396-7 (PABX) Cell: 01955 502 140, 01678 433 140
Cell : 019 555 02 121, 01678 433 121 Email: [email protected]
E Mail : [email protected] HOB: Mr. Md. Tareq, PO
HOB: Mr. Md. Kabir Hossain, EVP
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Madhobdi Branch
NS Tower (Borhan Market)
Ekuria Branch PO & PS.Madhobdi , Dist: Narsingdi.
Italy Tower (1st & 2nd floor) Cell: 019 555 02 142, 01678 433 142
Hasnabad, Keranigonj, Dhaka-1311
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Email:[email protected]
Tel: +88 02-7762495, +88 02-7762390 (PABX) HOB: Mr. Md. Lalon Sarwar, AVP
Cell : 019 555 02 123, 01678 433123
E Mail : [email protected] Bhuigar Branch
HOB: Mr. Mohammad Abdus Shobhan, AVP Bhuigar, Fatulla, Narayanganj
Cell: 01955 502 143, 01678 433 143
Zirani Bazar Branch Email: [email protected]
College Road, Zirani Bazar, HOB: Mr. Md. Azharul Islam, VP
BKSP, PS.Ashulia, Dhaka
Cell : 019 555 02 127, 01678 433 127 Hatirpul Branch
E mail: [email protected] Paribag, Shah Saheb Road, Hatirpul, Dhaka-1000
HOB: Mr. Md. Faisal Mahmud, FAVP Tel :+88 02-9663205, 02-9666785
Cell: 01955 502 144, 01678 433 144
Narayanganj Branch Email: [email protected]
148, Bangabandhu Road, Word#14 HOB: Mr.Sayed Md. Moharam Hossain, SVP
Narayanganj Sadar, Narayanganj
Tel : +88 02-7632289-90 Charabag Branch
Cell : 019 555 02 128, 01678 433 128 Charabag Bus Stand, Ashulia, Dhaka
E-mail: [email protected] Cell: 019 555 02 145, 01678 433 145
HOB: Mr. Sayed Ahmed, FVP Email: [email protected]
HOB: Mr. Md. Harun-Ur-Rashid Khan, PO

243
 Annual Report 2017

Gazipur Chowrasta Branch Chattogram Division

Shapla Mansion, Agrabad Branch
Gazipur Chowrasta ,Gazipur Quaderi Chamber, 37, Agrabad C/A, Chittagong
Cell: 019 555 02 147, 01678 433 147 Tel:+88 031-2521702-04,
Email: [email protected] Fax:+88 031-2521706,
HOB: Mr. Mohammad Shahidul Islam, FVP Cell : 019 555 02 105, 01678 433 105
E Mail : [email protected]
Dhanmondi Mohila Branch HOB: Mr. Syed Mahbubul Haq, SEVP
Jebun Archade, Road # 16 (New), 27 (Old) ,
PS.Dhanmondi, Word# 15 (Beside Rapa Plaza), O R Nizam Road Branch
Dhanmondi, Dhaka-1205 , Bangladesh Atlanta Trade Centre, GEC Morh,
Cell: 019 555 02 151, 01678 433 151 O R Nizam Road, Chittagong,
Email: [email protected] Tel: +88 031-612413, +88 031-612866
HOB: Ms. Nighat Anjum, FVP Cell : 019 555 02 118, 01678 433 118
E Mail : [email protected]
Araihajar Branch HOB: Mr. Chowdhury Mohiuddin, VP
Dubai Plaza, Araihajar
Dist: Narayanganj Chatkhil Branch

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Cell : 01955502156, 01678433156 Jonaki Super Market Chatkhil
E Mail : [email protected] Pourosova, Post: Chatkhil, Dist: Noakhali
HOB: Mr. Md. Masum Haider, VP Tel : +88 0322-75357- 9
Cell : 019 555 02 124, 01678 433 124
E Mail : [email protected]
Bandura Branch
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HOB: Mr. Muhammad Abdul Quddus
Nur Uddin Plaza, Puraton Bandura, Patawry, FAVP
7.No.Bandura Union
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Upazila: Nababganj, Dist: Dhaka. Chandraganj Branch
Cell : 01955502157, 01678433157 Dada Vi Plaza, Deo Para, Chandraganj Bazar, PS.
E Mail : [email protected] Sadar, Dist: Laxmipur
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HOB: Mr. Md. Atikul Islam, SEO Cell : 019 555 02 125, 01678 433 125
E Mail:[email protected]
HOB: Mr. Md. Sakhawat Hossain, AVP
Tongi Branch
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Morium Mansion, Holding No.52 Borodighirpar Branch

Tongi Bazar, Tongi Haji Raza Mia Market Chikon Dondi, Hathazari,
Dist: Gazipur Chittagong, Tell : 031-2580 407-8
Cell : 01955502158, 01678433158 Cell : 019 555 02 126, 01678 433 126
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E Mail : [email protected] E Mail : [email protected]

HOB: Mr. Md. Monirul Islam, FVP HOB: Mr. Mohammad Aminul Islam, AVP

Bhairab Branch Raozan Branch

Helal Tower, Bangabandhu Sarani Firoj Tower, Ramjan Ali Chowdhury Hat
House#1333/5, Word No.02 PS.Raozan, Dist-Chittagong
Bhairab Bazar, Bhairab Tel : +88 03026-56410
District: Kishoreganj Cell : 019 555 02 132, 01678 433 132
Cell : 01955502160, 01678433160 E-mail : [email protected]
E Mail : [email protected] HOB: Mr. Md. Naimul Hasan, PO
HOB: Mr. Dipak Kumar Chakraborty, SVP
Mainamati Branch
Imamganj Branch Mainamati Senakalyan Market
Lily Mansion, Holding#36 Nischintapur, PS.Adarsha Sadar
Roy Iswar Chandra Shill Bahadur Street Union #2 Durgapur (north), Dist.Comilla
Word # 30, PS. Chawkbazar E-mail: [email protected]
Dist: Dhaka-1211 Cell: 01955 502 134, 01678 433 134
Cell : 01955502154, 01678 433 154 HOB: Mr. A.K.M. Nazmul Hasan, AVP
E Mail : [email protected]
HOB: Mr. Muklessur Rahman, AVP

244 NRB Commercial Bank Limited

Jubilee Road Branch Munshibazar Branch

Branch Network
9/A, Jublee Road, PS.Kotoali, Chittagong. Munshibazar, Rajnagar, Moulovibazar
Cell: 019 555 02 137, 01678 433 137 e-mail: [email protected]
Email: [email protected] HOB: Cell: 01955 502 135, 01678 433 135
Mr. Md. Joynal Abedin, SVP HOB: Mr. Muhammad Shafique Miah Majumder,
FAVP
Feni Branch
Holding No.180/6, Latu Mia Complex , SSK Sylhet Uposhohor Branch
Road, Ward # 10, PS.Feni , District : Feni Syed Plaza, Block-D,
Cell: 01955 502 149, 01678 433 149 Shahjalal Housing Estate
Email: [email protected] Uposahar, Sylhet.
HOB: Mr. Kazi Mohammad Ziaul Karim, FAVP PABX: 0821728953
Cell: 01955 502 136, 01678 433 136
Chandina Branch Email: [email protected]
Hazi Ali Mansion, Holding No.1304 , HOB: Mr. Dewan Al Amin Al Mutakabbir, AVP
PS.Chandina, Word No: 05, District : Comilla
Cell: 019 555 02 150, 01678 433 150 Boteswar Branch
Email:[email protected] Metropolitan University Campus

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HOB: Mr. Md. Kamrul Hasan, FAVP Boteshwar, 4No, Khadim para, Atgaon,
Shah Paran District: Sylhet.
Matlab Branch Cell : 019 555 02 159, 01678 433 159
N.A.M Tower, Holding No: 465 E Mail : [email protected]
Ward No.03, Upozila: Matlab HOB: Mr. Md. Abdul Kader Talukder, PO
Dist: Chandpur
Cell : 01955502153, 01678 433 153
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E Mail : [email protected] Barisal Division
HOB: Mr. Muhammad Faruk Hossain, FAVP Barisal Branch
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Lisa Plaza
Laksam Branch 140/1, Sadar Road, Barisal.
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Hazi Moksad Ali Tower Tel : +88 0431-63112, +88 0431-2176453

Holding No.1603, Word No.04 Cell : 01955 502 119, 01678 433 119
Thana: Laksam, Dist: Comilla E Mail : [email protected]
Cell : 019 555 02 155, 01678 433 155 HOB: Mr. G.K.A.M. Maksud Bin Harun, FVP
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E Mail : [email protected]
HOB: Mr. Md. Akhtar Hossain, VP Inderhat Branch
Hasem Ali Market
Hathazari Branch Sohagdal (Swarupkati)
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Toyoba Noor Complex Nesarabad, Pirojpur

Holding # 61/1, Word No.03 Cell: 01955 502 138, 01678 433 138
Pouroshova & Upozila : Hathazari Email: [email protected]
District : Chittagong HOB: Mr. Gopal Chandra Roy, FAVP
Cell : 019 555 02 161, 01678 433 161
E Mail : [email protected]
HOB: Mr. Md. Saimun Rahman, SEO Rajshahi Division
Rajshahi Branch
Sylhet Division F R Plaza, Rani Bazar, Boalia
Sylhet Branch Rajshahi City Corporation, Rajshahi.
HS Tower Darghagate, Waves 1, Sylhet. Tel : +88 0721-773913
Tel: +88 0821-711486 +88 0721-775012, +88 0721-775046
Tel: +88 0821-711476-77 Fax: 0821-711486 Cell : 019 555 02 120, 01678 433 120
Cell : 019 555 02 116, 01678 433 116 E Mail : [email protected]
E Mail : [email protected] HOB: Mr. Ashim Kumar Das, VP
HOB: Mr. Ibne Ali Md. Najmul Kibria, VP

245
 Annual Report 2017

Naogaon Branch Khulna Division

T K Plaza, Batar Moor Khulna Branch
Naogaon Sadar, Naogaon 34, KDA Avenue, Khulna Sadar, Khulna.
Tel : +88 0741-62006-8 Tel : +88 041-811823, +88 041-811824
Cell : 019 555 02 122, 01678 433 122 Cell : 019 555 02 131 , 01678 433 131
E Mail : [email protected] Email : [email protected]
HOB: Mr. Shamol Chandra Barmon, AVP HOB: Mr. Md. Mokhlesur Rahman Bali, FAVP

Bogra Branch
Goni Plaza, Namazgor More, H #151, Word # 05 , Hatgopalpur Branch
Bogra Sadar, Bogra Mondol Market , 11 No. Poddakor Union ,
Cell: 01955 502 146, 01678 433 122 PS : Jhenaidah , District: Jhenaidah
Email: [email protected] Cell : 019 555 02 148 , 01678 433 148
HOB: Mr. Kazi Rejaul Qais, AVP E-mail: [email protected]
HOB: Mr. Russel Mehedi, FAVP
Rangpur Division
Rangpur Branch
Mymensingh Division

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GM Tower, 16, GL Road Rangpur Sadar, Rangpur
Tel : +88 0521-53301-2 Mymensingh Branch
Cell : 019 555 02 130 01678 433 130 GM Plaza Market
E-mail: [email protected] 38, Muktijoddha Sarani, Mymensingh,
HOB: Mr. Syed Sirajul Haque, FVP Cell : 01955 502 152, 01678 433 152
E Mail : [email protected]
Pulhat Branch
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HOB: Mr. Kazi Mizanur Rahman, AVP
Sarker Bhaban, Pulhat Dinajpur.
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Cell : 019 555 02 141, 01678 433 141
E-mail: [email protected]
HOB: Mr. Monibor Rahman, FAVP
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246 NRB Commercial Bank Limited

 Registered Office: 114 Motijheel C/A, Dhaka

Proxy Form
I/We .............................................................................................................................................................................

of............................................................................................................................................. being a Member of

NRB Commercial Bank Limited do hereby appoint Mr./Ms. ……………………………………......…………………….............. of

………………………………………………................…...................................................................................................…….....

falling him/her.................................................................................................................................................................

of ………………………………………………................…...................................................................................................……......
as my/our Proxy to attend and vote for me/us, and on my/our behalf, at the 05th Annual General Meeting of the

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Company to be held on 21st July 2018, Saturday, at 11:00 am at the Boardroom of the Bank, Silver Tower, 52 Gulshan
Avenue, Gulshan-1, Dhaka or at any adjournment thereof.

Signed this ………............………………….. day of ………………….......……………… 2018

Signature of Proxy ……………...............................................…………………….

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Revenue
Stamp
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…………………………………… Tk.20.00
Signature of Shareholder
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Folio No.:

No. of Shares ................................

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N.B.
This Proxy Form, duly completed, must be deposited at least 72 (seventy two) hours before the meeting at the
company’s Registered Office. Proxy is invalid if not signed and stamped as explained above..
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………………………………………………………………………………………...............………………………………………………………………………..

Attendance Slip
I hereby record my attendance at the 05th Annual General Meeting of the Company to be held on 21st July 2018,
Saturday, at 11:00 am at the Boardroom of the Bank, Silver Tower, 52 Gulshan Avenue, Gulshan-1, Dhaka.

Name of Member/Proxy ……………………………………………………………………………................

Folio No.:

Signature ………………………………………………….

Date ………………………………………………………...
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