Report Of Basic Bank Loan & Advance

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INTRODUCTION

Let’s close our eyes and think about a government owned commercial bank. We will surely start to think of a very clumsy place filled up with a lot f old people working very slowly and the image will be accompanied with the image of a very dirty place. Actually that’s what we can see when we go to any bank like Sonali Bank in Motijheel or any other government bank in Bangladesh. BASIC is a bank with a lot of differences from this situation. In this report we will try to find out how it differs and what’s in common and it’s about bank loan and advance

BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Companies Act 1913 on the 2nd of August, 1988, started its operations from the 21st of January, 1989. It is governed by the Banking Companies Act 1991. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs). At the outset, the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being nonfunctional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the bank on 4th June 1992. Thus the Bank is state-owned. However, the Bank is not nationalized; it operates like a private bank as before.

BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loan able funds shall be invested in small and cottage industries sector
CAPITAL POSITION
Authorized capital
Paid up capital
Total Reserve and Surplus up to 31.12.2008		 Tk. 2000 million
Tk. 1309.77 million.
Tk. 1681.39 million
The Bank is required to transfer 20 percent of its net profit before Tax to Capital Fund as per the Banking Companies Act 1991.
corporate strategy”>Data on Corporate Strategy

The Bank Offers:
a. Term loans to industries especially to small-scale enterprises.
b. Full-fledged commercial banking service including collection of deposit, short term trade finance, working capital finance in processing and manufacturing units and financing and facilitating international trade.
c. Technical support to Small Scale Industries (SSls) in order to enable them to run their enterprises successfully.
d. Micro credit to the urban poor through linkage with Non- Government Organizations (NGOs) with a view to facilitating their access to the formal financial market for the mobilization of resources.
In order to perform the above tasks, BASIC Bank works closely with its clients, the regulatory authorities, the shareholders (GOB), banks and other financial institutions.
CORPORATE STRATEGY
Financing establishment of small units of industries and business and facilitate their growth
Small Balance Sheet size composed of quality assets.
· Steady and sustainable growth.
· Investment in a cautious way.
· Adoption of new banking technology.
· To employ funds for profitable purposes in various fields with special emphasis on small scale industries.

  • To undertake project promotion on identify profitable areas of investment.
  • To search for newer avenues for investment and develop new products to suit such needs.
  • To establish linkage with other institutions which are engaged in financing micro enterprises.

· To cooperate and collaborate with institutions entrusted with the responsibility of promoting and aiding SSI sector.
To achieve its organizational goals, the Bank conducts its operations in accordance with the major policy guidelines laid down by the Board of Directors, the highest policy making body. The day to day operation of the Bank is looked after by the management.A. BOARD OF DIRECTORS
As stated earlier the Government holds 100 percent ownership of the Bank. All the Directors of the Board are appointed by the Government of Bangladesh. The secretary of the Ministry of Industries is the Chairman of the Bank. Other Directors of the Bank are senior Government and central Bank executives.
The Managing Director is an ex-office member of the Board of Directors. There are at present 7 Directors including the Managing Director.

B. MANAGEMENT
The management is headed by the Managing Director. He is assisted by the General Managers and Departmental Heads in the Head Office. BASIC Bank is different in respect of hierarchical structure from other banks in that it is much more vertically integrated as far as reporting to the Chief Executive is concerned.
The Branch Managers of the Bank report direct to the Managing Director and, for functional purposes, to the Heads of Departments. Consequently, quick decision making in disposal of cases is ensured.

Progress at a Glance (2004-2008)

Progress at a glance 2008 2007 2006 2005 2004
From the Balance Sheet (Million Taka)
Authorized Capital 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Paid-up Capital 1309.77 1247.40 945.00 810.00 675.00
Reserve and Surplus 1681.39 1349.17 1294.00 916.14 816.23
Shareholders’ Equity 2,982.60 2,596.58 2,239.00 1,726.14 1,491.23
Fixed Assets 228.36 196.11 154.52 135.78 101.41
Total Assets 46,651.53 38,773.91 29,417.09 27,136.37 19,436.57
Deposits 38,368.23 31,947.98 24,084.65 22,325.58 15,509.18
Long- term Debt 1708.4 1385.81 830.06 937.51 839.61
Loans and Advances 27,269.13 22,263.35 19,000.00 15,339.35 12,000.15
Placement & Investment 15,653.2 13,560.92 8,212.23 10,236.82 6,098.51
From the Income Statement (Million Taka)
Gross Income 5,060.29 3,549.51 2870.32 2,228.21 1768.85
Gross Expenditure 3,526.18 2,741.37 1,858.69 1,599.77 1,241.63
Profit before Tax 1534.11 808.14 1,011.62 628.44 527.22
Profit after Tax 549.95 282.96 554.14 285.49 291.48
Tax Paid (Cumulative) 3,538.09 2,790.98 2,245.16 1,777.70 1,434.76
Others (Million Taka)
Import Business 27,359.77 21,266.57 17,804.27 14,094.96 12,508
Export Business 22,270.87 16,794.96 15,463.74 11,097.23 7,908
Financial Ratios (Percentage)
Capital Adequacy Ratio 12.02 12.91 11.98 11.66 12.49
Capital Fund to Deposit Liabilities 7.81 9.23 10.34 10.36 10.47
Liquid Assets to Deposit Liabilities 47.70 49.10 40.42 58.01 50.36
Loan to Deposit Liabilities 71.07 69.69 78.89 69.74 77.37
Earning Assets to Deposit Liabilities 114.69 109.70 112.99 114.56 116.70
After Tax Return on Average Assets 1.30 .83 1.94 1.23 1.70
Net Profit to Gross Income 10.87 7.97 19.31 12.81 16.48
Interest Magin Cover 137.08 176.80 211.72 214.56 205.07
After Tax Return on Equity 19.68 11.70 27.82 17.75 21.27
SMI/SSI Loan and
Micro Credit to Total Loan 59.32 56.73 53.43 67.00 62.21
Number of Branches 31 30 28 27 27
Number of Employees 735 721 651 601 578

Progress at a Glance (2000-2003)

Progress at a glance 2003 2002 2001 2000
From the Balance Sheet (Million Taka)
Authorized Capital 2,000.00 500.00 500.00 500.00
Paid-up Capital 450.00 300.00 300.00 240.00
Reserve and Surplus 799.29 712.90 461.39 457.77
Shareholders’ Equity 1,249.29 1,012.90 761.35 697.77
Fixed Assets 73.49 76.68 65.73 51.11
Total Assets 14,766.32 13,019.42 9,721.93 7730.67
Deposits 11,266.54 10,021.24 7,512.62 5,845.15
Long- term Debt 690.95 676.51 582.82 555.98
Loans and Advances 9,282.20 7,957.04 6,260.78 4,618.73
Placement & Investment 4,361.93 3,988.76 2,605.23 2,462.17
From the Income Statement (Million Taka)
Gross Income 1,290.66 1,290.66 1,041.76 877.48
Gross Expenditure 856.15 856.15 685.64 573.30
Profit before Tax 434.51 434.51 356.12 304.18
Profit after Tax 251.55 251.55 213.67 173.34
Tax Paid (Cumulative) 881.73 881.73 698.76 556.31
Others (Million Taka)
Import Business 1,558.52 8,645.00 7,542.80 7,948.00
Export Business 1,004.85 5,557.60 5,957.90 5,557.00
Financial Ratios (Percentage) 553.67
Capital Adequacy Ratio 12.57 13.20 12.49 15.30
Capital Fund to Deposit Liabilities 10.65 10.11 10.13 11.94
Liquid Assets to Deposit Liabilities 51.05 54.80 51.47 59.52
Loan to Deposit Liabilities 82.39 79.40 83.34 79.02
Earning Assets to Deposit Liabilities 121.10 119.20 118.01 117.74
After Tax Return on Average Assets 1.70 2.20 2.45 2.33
Net Profit to Gross Income 15.17 19.35 20.51 19.75
Interest Magin Cover 210.87 187.00 173.91 150.67
After Tax Return on Equity 20.90 28.18 28.06 27.04
Small Scale Industries Loan and
Micro Credit to Total Loan 59.16 63.00 50.18 46.96
Number of Branches 26 26 25 25
Number of Employees 523 510 497 453

Progress at a Glance (1996-1999)

Progress at a glance 1999 1998 1997 1996
From the Balance Sheet (Million Taka)
Authorized Capital 500.00 500.00 500.00 100.00
Paid-up Capital 160.00 80.00 80.00 80.00
Reserve and Surplus 424.43 394.48 258.34 163.73
Shareholders’ Equity 584.43 474.48 338.34 243.73
Fixed Assets 37.83 41.96 36.39 25.45
Total Assets 7,173.17 5620.57 4350.14 3962.55
Deposits 5,647.93 4,551.48 3,541.60 3,357.05
Long- term Debt 368.85 344.61 273.29 196.45
Loans and Advances 3,960.11 3,218.90 2,630.90 1,724.81
Placement & Investment 2,021.19 2,040.72 1,395.59 1,320.43
From the Income Statement (Million Taka)
Gross Income 794.59 591.64 440.46 311.43
Gross Expenditure 528.01 364.73 268.83 207.41
Profit before Tax 266.58 226.91 171.63 104.02
Profit after Tax 159.95 136.15 94.61 57.77
Tax Paid (Cumulative) 425.47 318.84 228.08 151.06
Others (Million Taka)
Import Business 7,391.10 7,208.20 7,017.56 4,986.10
Export Business 5,060.30 4,420.20 3,754.87 2,609.30
Financial Ratios (Percentage)
Capital Adequacy Ratio 12.39 No t I n t r produced
Capital Fund to Deposit Liabilities 14.27 14.01 12.45
Capital Fund to Deposit Liabilities 10.34 10.42 9.55 7.26
Liquid Assets to Deposit Liabilities 59.09 62.29 59.58 70.42
Loan to Deposit Liabilities 66.71 66.81 69.86 47.82
Earning Assets to Deposit Liabilities 85.34 115.56 113.69 99.57
After Tax Return on Average Assets 2.50 2.73 2.28 1.60
Net Profit to Gross Income 20.45 23.01 21.48 18.54
Interest Magin Cover 112.67 192.07 194.64 112.45
After Tax Return on Equity 30.21 28.69 27.96 23.70
Small Scale Industries Loan and
Micro Credit to Total Loan 40.09 42.21 35.83 40.99
Number of Branches 23 22 21 19
Number of Employees 417 372 351 315

HO and Branches.

HEAD OFFICE

Sena Kalyan Bhaban (5th Floor)

195 Motijheel C/A, Dhaka-1000

Tel: 880-2-9568190, 9564830, 7175691, 7175692, 9556616

Tel (ICT Division): 9562960, 9555087

Fax: 88-02-9564829, 7115612, 7124911, 7125653

E-mail: basicho@citechco.net

SWIFT : BKSIBDDH
MAIN BRANCH

Bana Shilpa Bhaban (Ground floor)

73 Motijheel C/A, Dhaka1000

Tel: 880-2-9569417,9559279,9563068-9

Tlx : 632185, BASIC BJ

Fax:88-02-9569417

SWIFT : BKSIBDDH002

 RAJSHAHI BRANCH

Anam Plaza (1st floor)

Shaheb Bazar, Rajshahi 6100

Tel: 0721-776278

Tlx : 642143 BASIC BJ
KHATUNGANJ BRANCH

193 Khatunganj, Chittagong 4000

Tel: 031-614200 , 616280

Tlx : 633045 BASIC BJ

SWIFT : BKSIBDDH004

 KHULNA BRANCH

107 Sir Iqbal Road, Khulna 9100

Tel : 041-720361 , 721672

Tlx : 642137 BASIC BJ

SWIFT : BKSIBDDH025
BANGSHAL BRANCH

230 North South Road

Bangshal , Dhaka 1100

Tel : 02-9563686 , 9562615

Fax:88-02-9557141

Tlx : 632585 BASIC BJ

SWIFT: BKSIBDDH006

 ZINDABAZAR BRANCH

Wahid View (1st floor)

5477 East Zindabazar, Sylhet 3100

Tel : 0821-718462 ,

Tlx : 633242 BASIC BJ

SWIFT : BKSIBDDH026
AGRABAD BRANCH

Pine View (Ground floor)

100 Agrabad C/A , Chittagong 4100

Tel : 031-500080 , 725527

Tlx : 633158 BASIC BJ

Fax : 88-031-714822

SWIFT: BKSIBDDH008

 SHANTINAGAR BRANCH

14 Kakrail (1st floor)

Dhaka 1000

Tel : 02-9337441 ,8314057

Tlx : 642458 BASIC BJ

SWIFT: BKSIBDDH009
MOULVIBAZAR BRANCH

Gulbadhan Market (1st floor)

4 Moulvibazar ,Dhaka 1211

Tel : 02-7315356, 7316991

Tlx : 642104 BASIC BJ

SWIFT: BKSIBDDH024

 CHOWMUHANA BRANCH

152 Shamsernagar Road

Chowmuhana , Moulvibazar 3200

Tel : 0861-53238
BOGRA BRANCH

Bhabani Shachin Bhaban

Hari Dashi Market

120 Baragola , Bogra 5800

Tel : 051-73793

Tlx : 633741 BASIC BJ

 JUBILEE ROAD BRANCH

G.R. Plaza, 5 Jubilee Road

Chittagong 4000

Tel : 031-634879, 638305

Tlx : 633088 BASIC BJ

SWIFT: BKSIBDDH013
TANBAZAR BRANCH

55/21 S.M Maleh Road

Tanbazar, Narayangonj 1400

Tel: 02-9716693

Tlx : 633640 BASIC BJ

SWIFT: BKSIBDDH014

 DILKUSHA BRANCH

13 Dilkusha C/A, Dhaka 1000

Tel : 02-9667804, 9563793-4

Tlx : 632536 BASICBJ

SWIFT: BKSIBDDH015
ASADGANJ BRANCH

40/41 Ramjoy Mohajan Lane

Asadgonj, Chittagong 4000

Tel: 031-614942, 614569

Tlx: 633106 BASIC BJ

SWIFT: BKSIBDDH016

 COMILLA BRANCH

156/162 A. K. Fazlul Haque Road

Monohorpur, Comilla 3500

Tel: 081-5886
JESSORE BRANCH

35 M. K. Road, Jessore 7400

Tel: 0421-72393, 74288

 NARSINGDI BRANCH

Sutapatti Road

Narsingdi 1600

Tel: 0621-63145
SAIDPUR BRANCH

T. R. Road (Dinajpur Road)

Saidpur 5310, Nilphamari

Tel: 0552-2299

Tlx: 642189 BASIC BJ

 GULSHAN BRANCH

112 Gulshan Avenue

Gulshan, Dhaka 1212

Tel: 02-9883501-2

Tlx: 642407 BASIC BJ

SWIFT: BKSIBDDH021
MIRPUR BRANCH

BSCIC Electronics Complex

Industrial Plot No. 1/1

Section 7, Avenue 4, Road No. 3

Pallabi, Dhaka 1221

Tel: 02-9006249-50

SWIFT: BKSIBDDH022

 BABUBAZAR BRANCH

Hajee Yusuf Mansion(!st floor)

56 Mitford Road

Babubazar, Dhaka1100

Tel: 02-7391335, 7393875

Tlx: 642439 BASIC BJ

SWIFT : BKSIBDDH023
SHOLASHAHAR BRANCH

Proskov Bhaban(1st floor)

110 CDA Avenue, Nasirabad,

Muradpur, Chittagong

Tel: 031-651066, 650855

 Chittagong Export Processing Zone Branch (CEPZ Branch)

Moon Tower (1st Floor), E.P.Z Gate

South Halishahar, Chittagong

Tel: 031-740094
UTTARA BRANCH

Plot No. 67/A (1st floor)

Rabindra Sarani

Sector – 7, Uttara

Dhaka

Tel: 8961031,8961032

 BARISAL BRANCH

102, Chawkbazar Road (1st floor)

Barisal

Tel: 0431-56022
DHANMONDI BRANCH

Manna’s Tower(1st Floor)

House # 54, Road # 4/A

Satmasjid Road, Dhanmondi R/A

Dhaka

Te: 9676156, 9676157

 SIRAJGANJ BRANCH

Shapneel Shopping Complex

S. S. Plaza

House # 305 (1st Floor)

S. S. Road, Sirajganj

Tel: 0751-64355
DEWANHAT BRANCH

Holding No # 4B (1st Floor)

DT Road, Posterpar

Dewanhat

Chittagong

 KARWAN BAZAR BRANCH

Latif Tower

47, Karwan Bazar

Dhaka-1215

Tel: 9146282 / 9146294
RANGPUR BRANCH

Central Point (1st Floor)

97/1 Central Road

Rangpur -5400

Phone: 0521-67811, 67812

 GAZIPUR CHOWRASTA BRANCH

Gazipur

Tel: 9263134 / 9263115

 

2001 2002 2003 2004 2005 2006 2007 2008
At Year End Million Taka
Total Loans and Advances 6260.78 7957.04 9282.20 12000.15 15339.35 19000.00 22263.35 27269.13
Total Investment 870.36 1566.61 1883.42 2252.96 4540.55 8212.23 13560.92 15653.2
Total Assets 9721.93 13019.42 14766.32 19436.57 27136.37 29417.09 38773.91 46651.53
Total Deposits 7512.62 10021.24 11266.54 15509.18 22325.58 24084.65 31947.98 38368.23
Long-term Debt 582.82 676.51 690.95 839.61 937.51 830.06 1385.81 1708.4
Total Shareholder’s Equity 761.35 1012.89 1199.79 1491.27 1726.14 2239.00 2596.58 2982.60
Financial Ratios (Percentage)
Capital Adequacy Ratio * 12.49 13.20 12.57 12.49 11.66 11.98 12.91 12.02
Capital fund to deposit Liabilities 10.13 10.13 10.11 10.65 10.47 10.34 9.23 7.81
Liquid Assets to Total Deposit 51.47 51.47 54.80 51.05 50.56 40.42 49.10 47.70
Loan to total Deposit 83.34 79.40 82.39 77.37 69.74 78.89 69.69 71.07
Earning Assets to Total Deposit 118.01 119.20 121.10 116.70 114.56 112.99 109.70 114.69
After tax return on Average Assets 2.45 2.21 1.70 1.70 1.23 1.94 .83 1.30
Net Profit to Gross Income 20.51 19.49 15.17 16.48 12.81 19.31 7.97 10.87
Interest Margin Cover 173.91 191.07 210.87 205.07 214.56 211.72 176.80 137.08
Return on Equity (after tax) 28.06 28.36 21.37 21.27 17.75 27.82 11.70 19.68
Industrial Loans including Micro Enterprises to Total Loans 63.14 63.00 59.16 62.21 67.00 53.43 56.73 59.32
Non performing Loans to Total Loans 3.67 5.12 4.25 3.70 4.55 3.70 3.25 4.59
Salary & Allowances Per Unit Million Taka
Deposit (Tk. 100m) 1.34 1.18 1.27 0.98 1.01 1.01
Advance (Tk. 100m) 1.61 1.48 1.54 1.27 1.47 1.47
Per Employee Million Taka
Deposit 15.12 19.65 21.54 26.83 37.15 37.15
Advance 12.60 15.60 17.75 20.76 25.52 25.52
Profit 0.72 0.85 1.06 0.91 1.45 1.45
Earnings Analysis Million Taka
Total Income 1041.76 1290.66 1558.52 1768.85 2228.00 2228.00
Total Operating Expense 685.73 856.15 1004.85 1241.63 1599.56 1599.56
Profit before Tax 356.12 434.51 553.67 527.22 628.44 628.44
Income Tax 142.45 182.97 317.28 235.74 342.94 342.94
Net Profit after Tax 213.67 251.55 236.39 291.48 285.49 285.49

Based on risk-weighted assets. The Bank has been calculating the ratio since 1996
The performance of BASIC Bank Limited has been satisfactory since its inception in respect of all the measurement parameters.

The total assets of the Bank increased to Taka 46,651.53 million at the end 2008 from Taka 38,773.91 million in the previous year. The growth rate was 20.31 percent. Deposit rose from Taka 31,947.98 million in 2007 to Taka 38,368.23 million in 2008 showing a growth rate of 20.09 percent. Loans and advances stood at Taka 27,269.13 million as on December 31, 2008 against Taka 22,263.35 million at the end of 2007, recording a growth rate of 22.48 percent compared to 23.86 percent in the previous year. All out efforts were made to improve the recovery rate and control non-performing loans and advances. Although the recovery rate of project loans remained stable in the neighborhood of 96 percent the proportion of non-performing loans to total loans increased to 3.25 percent in 2008 from 3.70 percent in 2007. Emphasis on the maintenance of quality of assets remained the centerpiece of the Bank’s business strategy.

Year 2008 was a period of high growth in loans and advances with 22.48 percent increase compared to 23.86 percent increase in 2007. Growth of industrial finance was moderate and a loan to small and medium industries was 23.91 percent of total loans and advances. The industrial loan of Tk. 17226.40 million was distributed among 13 sectors. Textile sector registered the highest concentration being 36.24 percent of industrial loans and 23.59 percent of total loans. Textile sector is followed by: food & allied industries – 13.73 percent of industrial loans and 8.94 percent of total loans, chemical & allied industries – 12.97 percent of industrial loans and 8.44 percent of total loans and engineering – 11.44 percent of industrial loans and 7.45 percent of total loans.
Table Of Industrial Credit |Table Of Commercial Credit |
a. Industrial Credit
BASIC Bank’s services are directed towards the entrepreneurs in the small industries sector. A small industry, as per Industrial policy 1999 approved by the Cabinet, has been defined as an industrial undertaking whose total fixed investment is less than Tk.100 million.

The industrial loan reflected a significant growth of 23.91 percent over the previous year. Total outstanding industrial loans including term and working capital stood at Taka 17,226.40 million at the end of 2008 compared to Taka 13,901.40 million of 2007. Total outstanding term loan stood at Taka 6,206.75 million as on December 31, 2008 compared to Taka 5,055.58 million in 2007 reflecting a growth of 22.77 percent. The outstanding working capital finance extended to industrial units stood at Taka 11,784.08 million at the end of the reporting period compared to Taka 9,525.98 million in 2007. Growth rate here was 23.70 percent. BASIC Bank’s services are specially directed towards promotion and development of small industries. Its exposure to small and medium industries sector accounted for 56.52 percent of the total loans and advances. During the year total of 87 projects were sanctioned term loan. Out of which 26 were new and the rest were under BMRE of the existing projects. As on 31 December 2008, 801 projects were in the portfolio of the bank. The textile sector including garments being one of the major contributors to national economy dominated the loan portfolio of the Bank. Other sectors financed include engineering; food and allied industries; chemicals, pharmaceuticals and allied industries; paper, board, printing and packaging; glass; ceramic; and other non-metallic goods and jute products. Recovery rate of project loan was 90.81 percent.
b. Commercial Credit
The Bank also supports development of trade, business and other commercial activities in the country. It covers the full range of services to the exporters and importers extending various facilities such as cash credit, export cash credit, packing credit, short term loans, local and foreign bills purchase facilities. As on December

31, 2008 total outstanding commercial loans stood at Taka

9,278.26 million Compared to Taka 7,681.74 million in 2007.
c. Micro Credit
BASIC Bank launched a Micro Credit Scheme in 1994. Micro Credit Scheme provides for the poor for generation of employment and income on a sustainable basis particularly in urban and suburban areas. The Bank follows three systems of credit delivery.

These are:

1. Lending to the NGOs who on-lend to their members. At present there are 15 such NGOs. 2. Lending direct to the targets groups or ultimate borrowers under the Bank’s own management.

3. Lending direct to the member-borrowers and NGOs providing nonfinancial services like group formation and monitoring and supervision on exchange for a supervision fee.

At the end of 2008, total amount of Taka 764.46 million remained outstanding as against Taka 680.13 million in 2007. Recovery rate during this period remained at a satisfactory level of 98.00 percent.
Million Taka
1998 68.70
1999 103.90
2000 120.40
2001 183.50
2002 104.00
2003 186.20
2004 284.10
2005 338.30
2006 359.24
2007 680.13
2008 764.46
Outstanding at year end
d. Foreign Trade
Million Taka
Year Import Finance Export Finance
1997 7017.56 3754.87
1998 7208.20 4420.20
1999 7391.10 5060.30
2000 7948.40 5557.00
2001 7542.80 5957.90
2002 8645.00 5557.60
2003 8930.50 6523.00
2004 12508.00 7908.00
2005 11097.23 4094.96
2006 17804.27 15463.74
2007 21266.57 16794.96
2008 27359.77 22270.87
The bank achieved substantial growth in export in 2008 and the performance of the bank in import business was also satisfactory. The Bank handled total export business of Taka 27,359.77 million and import business of Taka 22,270.87 million in 2008. The export and import business grew by 28.65 percent and 32.60 percent respectively. Major items of exports were garments, jute products, textile, leather etc. Items of import included mainly industrial raw materials, garments accessories, capital machinery, food items and other essential commodities.
The Bank became a proud member of SWIFT (Society for Worldwide Interbank Financial Telecommunication) that would pave the way to achieving uninterrupted communication related to banking for international trade. Business and fund transfer.
Outstanding at year end
e. Other Activities
The Bank provides services for remittance, underwriting, guarantee, public offering of shares etc. The bank also provides funds to investment and leasing companies. The Bank has recently created a venture capital fund for equity support to innovative but risky projects.
1. Entrepreneur
Entrepreneur / promoter has to be creditworthy and competent enough to run the proposed industry.
2. Viability of the project
The project should be viable from organizational, technical, commercial, financial and economic points of view.
Technical Viability
  • The project should be technically sound and environment-friendly.
  • Technology transfer in case of borrowed know-how ought to be ensured.
  • Building should be well planned and well constructed.
Commercial Viability
  • Market prospect and potential for the product has to be fully assured at competitive prices.
  • Marketing channel for the product should be accessible to the entrepreneur.
Financial Viability
  • There should be reasonable debt equity ratio as determined by the Bank on individual case basis.
  • Debt service coverage ratio should be at least 2.5 times at the optimum level of production.
  • IRR should preferably be not less than 20 percent.
Economic Viability
The project should ensure benefit to the national economy and create sufficient employment opportunity and be environment friendly
Million Taka
1997 1408.25
1998 2028.50
1999 2062.19
2000 2735.50
2001 3769.00
2002 2735.50
2003 6252.00
2004 7691.20
2005 9987.50
2006 12243.56
2007 13901.40
2008 17226.40
Outstanding at year end
BASIC Bank Limited is well prepared to and capable of meeting the demand for a broad range of banking services. It has got adequate resources, both human and physical, to provide the customers with the best possible services.
Physical and technological resources
 A great deal of investment for developing the physical resource base of the Bank has been made. The Bank has its presence in all the major industrial and commercial hubs of Bangladesh in order to cater to the needs of industry and trade. At present, there are twenty-seven conveniently located branches throughout Bangladesh. There are ten branches in the capital city of Dhaka, six in Chittagong and one each in Narayanganj, Narsingdi, Rajshahi, Saidpur, Bogra, Khulna, Jessore, Sylhet, Moulvibazar, Comilla, Barisal and Sirajganj
Major features of these branches are:

· Fully computerized accounts maintenance.

· Well decorated air conditioned facilities.

· A fully operational computer network which is

currently being implemented. The work of Local Area Network (LAN) and Wide Area Network (WAN) installation having reliable and secured communication between the branches and the Head Office is in progress to facilitate any Branch Banking and ATM Services.

· Money counting machine for making cash transactions easy and prompt.

· Fifteen out of twenty six branches are authorized dealers of foreign exchange. This facilitates speedy disposal of transaction of export and import trade.
Human resources
BASIC has a well-diversified pool of human resource, which is composed of personnel with high academic background. Also, there is a positive demographic characteristic. Most employees are comparatively young in age yet mature in experience. As at end 2008 the total employee strength was 735. The Bank follows a strict recruitment policy in order to ensure that only the best people are recruited. The Bank, so far, has recruited four batches of entry-level management staff, all of whom have got excellent academic background.
Training
Intensive training program, on a regular basis, is being imparted to employees of both management and non-management levels to meet the challenges in the banking industry and to help employees to adapt the changes and new working conditions. Human resource is the main driving force and quality human resources are the key sources for the success of today’s banking business. Keeping this view in mind and recognizing the importance of training for professional excellence BASIC Bank Ltd. has established its own training institute in 2005 with modern facilities. In 2008 the institute arranged 27 training courses and provided training to as many as 517 employees of the bank. To cater to the needs of the employees and to keep pace with demand of the time it will continue to arrange regular training courses in the days ahead. During the year 2008, a total of 602 employees of the Bank were provided with training in various fields. Out of them 11 employees participated in training courses held abroad. In 2007 total 122 employees of various stages were given promotion which is almost 17.00 percent of total employees of the bank.Recruitment of New Officers
The Bank follows a strict recruitment policy in order to ensure that only the best people are recruited. The Bank, so far, has recruited four batches of entry-level management staff, all of whom have excellent academic background.
Graph for Deposit Mix in 2004|Bar chart of Borrowing for Development |
Graph for Utilization of Fund |
Like any other financial intermediaries, BASIC Bank Limited is no exception in performing its core functions viz. Mobilization of fund and utilizing such mobilized fund for profitable purposes.
A. Mobilization of fund
The main sources of fund for the Bank are:
1. Deposit, and
2. Borrowing
1. Deposit
Deposit is the mainstay of the Bank’s sources of funds. Following usual practices, it collects deposit through:
a. Current Deposit
b. Savings Deposit
c. Term Deposit
2. Borrowing
Apart from deposit, BASIC Bank Limited received funds from :
a. Bangladesh Bank
b. Asian Development Bank (ADB)
c. KfW (kreditanstalt fur Wieder-aufbau Credit Institution for Reconstruction), a German development bank. All of these funding sources are for relatively longer period. Receiving the credit lines from ADB and KfW has been a recognizing of the Bank’s highly satisfactory performance.
A. Utilization of Fund
BASIC Bank Limited utilizes its funds in accordance with its organizational goals and corporate strategy. Main use is for lending to industrial and trade sectors. Maintenance of cash and statutory liquidity reserve with the Bangladesh Bank covers 20 percent of demand and time liabilities. Placement of funds in Nostro Accounts to handle foreign trade and investment in money market is also done as usual
Million Taka
. .
2003 2004 2005 2006 2007 2008
Property and Assets
Cash 741.36 1035.30 1134.50 1522.87 2125.01 2641.00
Balance with other banks and financial Institutions 2378.50 3765.55 4126.27 4191.36 6937.53 8485.18
Money at call and short notice 100.00 80.00 1570.00 750.00 1320.00 1480.00
Investment
Government 1831.31 2198.95 4486.54 3241.86 5271.30 5598.82
Others 52.10 54.00 54.00 29.00 32.00 89.00
. 1883.41 2252.96 4540.55 3270.86 5303.30 5687.82
Loans and advances
Loans ,cash credit, overdrafts etc. 8633.71 11293.25 13759.05 17075.59 20047.92 24344.73
Bills discounted and Purchased 648.48 706.88 1580.29 1924.40 2215.42 2924.39
… 9282.19 12000.14 15339.35 18999.99 22263.34 27269.12
Fixed Assets 73.48 101.40 135.78 154.52 196.10 228.36
Other Assets 307.33 201.18 289.91 498.74 579.14 764.29
Total Assets 14766.32 19436.56 27136.37 29388.34 38724.51 46651.53
Capital and Liabilities
Liabilities
Borrowings from other banking companies, agents etc . 690.95 839.61 937.51 830.06 1385.81 1708.40
Bills Payable 92.94 148.89 179.75 239.25 290.75 328.49
Deposit and other Accounts
Current Accounts and contingency accounts etc. 1398.11 1651.35 1890.61 2370.44 2867.19 2544.51
Saving Bank deposits 581.69 724.80 793.43 1007.79 886.30 955.50
Fixed deposits 9193.80 12984.11 19461.78 20467.16 27903.72 34539.72
. 11173.60 15509.17 22325.58 23845.39 31657.21 38039.73
Other Liabilities 1609.05 1596.50 2147.13 2263.37 2843.53 3592.29
Total Liabilities 13566.54 17945.29 25410.23 27178.07 36177.30 43668.93
Capital/ Shareholders’ equity
Paid up Capital 450.00 675.00 810.00 945.00 1247.40 1309.77
Statutory Reserve 450.00 555.44 681.13 883.45 1045.08 1295.26
Other Reserves 40.00 40.00 40.00 40.00 40.00 40.00
Surplus in Profit and Loss Account 319.28 220.82 195.00 129.47 370.54 304.51
Total Shareholders’ equity 1249.28 1491.26 1726.13 1052.92 2596.58 2982.59
Total capital and liabilities 14766.32 19436.56 27136.37 28230.99 38773.90 46651.53

In per cent

. .
. 03/02 04/03 05/04 06/05 07/06 08/07
Property and Assets
Cash (10.81) 39.65 9.58 34.23 39.53 24.28
Balance with other banks and financial Institutions 1.55 58.32 9.58 1.57 65.51 22.30
Money at call and short notice Investment 25.00 (20.00) 1860.50 (52.22) 76.00 12.12
Government 19.34 20.08 104.03 27.74 62.60 6.21
Others 62.30 3.65 0.00 (46.29) 10.34 178.12
.. 20.22 19.62 101.54 (27.96) 62.14 7.25
Loans and advances
Loans ,cash credit, overdrafts etc. 28.40 18.50 30.80 21.83 24.10 21.43
Bills discounted and Purchased 14.44 (3.41) 9.01 123.56 21.77 32.00
. 27.09 16.65 29.28 27.83 23.86 22.48
Fixed Assets 16.65 (4.17) 38.00 33.91 13.80 16.45
Other Assets 43.48 85.46 (34.54) 44.10 72.03 31.96
Total Assets 33.91 13.42 31.63 39.62 8.29 20.47
Capital and Liabilities
Liabilities
Borrowings from other banking companies, agents etc . 16.07 2.13 21.52 11.66 11.46 23.27
Bills Payable 52.26 (26.11) 60.20 20.73 33.10 12.98
Deposit and other Accounts
Current Accounts and contingency accounts etc. 11.30 (12.14) 18.11 14.49 25.37 (11.25)
Saving Bank deposits 13.37 13.99 24.60 9.47 27.01 7.80
Fixed deposits 40.42 17.96 41.23 49.89 5.16 23.78
. 33.18 1029.16 38.80 43.95 6.80 20.16
Other Liabilities 51.28 22.94 (0.78) 34.49 5.41 26.33
Total Liabilities 34.00 13.00 32.28 41.60 6.95 20.70
Capital/ Shareholders’ equity
Paid up Capital – 50.00 50.00 20.00 16.66 5.00
Statutory Reserve 28.98 16.31 23.43 22.63 29.70 23.93
Other Reserves 8.52 (77.15) – 0.00 0 0
Total Shareholders’ equity 33.03 18.45 19.37 (11.69) (39) 14.86
Total capital and liabilities 33.91 13.42 31.63 15.75 4.03 20.31

In per cent

. 2003 2004 2005 2006 2007 2008
Property and Assets
Cash 5.02 5.33 4.18 5.33 5.48 5.66
Balance with other banks and financial Institutions 16.10 19.37 15.21 19.37 17.89 18.18
Money at call and short notice Investment 0.68 0.41 5.79 0.41 3.40 3.17
Government 12.40 11.31 16.53 11.31 13.59 11.99
Others 0.35 0.28 0.20 0.28 0.08 0.19
… 12.75 11.59 16.73 11.59 13.67 12.18
Loans and advances
Loans ,cash credit, overdrafts etc. 55.96 58.47 58.10 50.70 51.70 52.18
Bills d

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