Part Two-overview of Dbbl

8/12/2019 Part Two-overview of Dbbl

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Dutch Bangla Bank Ltd

02. AN OVERVIEW OF DUTCH-BANGLA BANK LIMITED

2.1 Introdut!on

Dutch-Bangla Bank Limited (DBBL) is a Bangladesh-European joint venture scheduled

commercial bank established under the Bank Companies Act 11 and incorporated as a

public limited compan! under the Companies Act 1"# DBBL is the $irst European-

Bangladesh joint venture private commercial bank in Bangladesh# %he registered head

o$$ice o$ the Bank is located at &enakal!an Bhaban' 1' otijheel Commercial Area'

Dhaka#

%his part o$ the report $ocuses on the brie$ histor! and current pro$ile o$ DBBL# An

overvie* o$ the organi+ation and operations o$ irpur Branch o$ DBBL' *here the

internship *as done' has also been presented here#

2.2 Br!"# H!$tor%

DBBL *as incorporated as a private-sector banking compan! on ,ul! "' 1# Besides

the Bangladeshi sponsors' the .etherlands Development /inance Compan! (/0) has

been the international co-sponsor o$ the Bank# DBBL obtained license $rom Bangladesh

Bank on ,ul! 2' 1' and commenced its banking operations $rom ,une 2' 13 *ith

onl! one branch at Dilkusha Commercial Area' Dhaka# %he Bank *ent public in the !ear

1# DBBL is listed *ith Dhaka &tock E4change Limited (D&E) as *ell as Chittagong

&tock E4change Limited (C&E)#

2.& Curr"nt 'ro#!("

%his section describes the corporate philosoph!' capital and shareholding structure'organi+ational structure and operational net*ork o$ the Bank#

2.&.1 Cor)or*t" '+!(o$o)+%. %he corporate philosoph! includes the mission' vision

and core objectives o$ the Bank5

Bangladesh 6nstitute o$ Bank anagement 7


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2.&.1.1 M!$$!on o# DBBL. Dutch-Bangla Bank engineers enterprise and creativit! in

business and industr! *ith a commitment to social responsibilit!# 89ro$its alone: do not

hold a central $ocus in the Bank;s operation< because 8man does not live b! bread and

butter alone:#

2.&.1.2 V!$!on o# DBBL. Dutch-Bangla dreams o$ a better Bangladesh' *here arts and

letters' sports and athletics' music and entertainment' science and education' health and

h!giene' clean and pollution $ree environment and above all a societ! based on moralit!

and ethics make all our lives *orth living# DBBL;s essence and ethos rest on a cosmos o$

creativit! and the marvel-magic o$ a charmed li$e that abounds *ith spirit o$ li$e and

adventures that contributes to*ards human gro*th and development#

2.&.1.& Cor" O,"t!"$. Dutch-Bangla Bank believes in its uncompromising

commitment to $ul$il its customer needs and satis$action and to become their $irst choice

in banking# %aking cue $rom its pool o$ esteemed clientele' Dutch-Bangla Bank intends

to pave the *a! $or a ne* era in banking that upholds and epitomi+es its vaunted

mar=ue5 /our Tru$t"d '*rtn"r#

2.&.2 C*)!t*( *nd +*r"+o(d!n3 trutur". %he capital and shareholding structures are

as $ollo*s5

2.&.2.1 C*)!t*( trutur". %he authori+ed capital o$ DBBL is %aka "# million# At

present the issued' subscribed and paid-up capital o$ the Compan! stands at %aka #1"

million#

2.&.2.2 +*r"+o(d!n3 trutur". %hough DBBL is a public limited compan!' lion;s

share in the Compan! is held b! the sponsors as against a small portion issued to the

public# %he present shareholding stands as $ollo*s5

)on$or$4

/oreign 5 2#>

Local 5 3#> #>

'u,(! I$$u"4

Bangladesh 6nstitute o$ Bank anagement


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6nstitutional 5 1#">

6nvestment Accounts 5 #22>

?eneral 9ublic 5 7#> 1#>

100.005

%he shareholding structure is sho*n in /igure 1#

FIGURE 1: SHAREHOLDING STRUCTURE OF DBBL

Foreign Sponsors (30.00%) Local Sponsors (60.00%) Public Issue (10.00%)

2.&.& Or3*n!6*t!on*( trutur" *nd O)"r*t!on*( N"t7or8. %he present

organi+ational structure and operational net*ork o$ the Bank are described belo*5

2.&.&.1 Bo*rd o# D!r"tor$. At the ape4 o$ the organi+ational structure o$ DBBL is a @-

member Board o$ Directors# Among the Directors' one is the Chairman o$ the Board' one

is the nominee o$ Etacol ong ong Limited' one is elected $rom the ?eneral

&hareholders; ?roup' one is the E4-o$$icio Director (anaging Directive)' and the others

are Compan!;s &ponsor Directors# r# d# easin Ali is the present anaging Director

and Chie$ E4ecutive o$ DBBL# nder him there are t*o Deput! anaging Directors5

Deput! anaging Director (0perations) and Deput! anaging Director

(Administration)#

2.&.&.2 D!!$!on$. %here are 12 divisions at the ead 0$$ice o$ DBBL# %hese are5



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?eneral &ervice Division#

Credit Division#

Credit Administration Division#

Credit onitoring and ecover! Division#

Corporate Banking Division#

etail Banking Division#

6nternational Division#

%reasur! Division#

uman esources Division#

Accounts Division#

6n$ormation %echnolog! Division#

arketing and Development Division#

6nternal Control and Compliance Division#

An organogram o$ the DBBL ead 0$$ice is sho*n in Appendi4 A#

2.&.&.& Br*n+ N"t7or8. DBBL has so $ar established 2 branches around the countr!#

Among them' 1@ are in the Dhaka Cit!' are in Chittagong' " are in .ara!angonj' " are

in &!lhet' 1 in hulna' 1 in Bogra' 1 in Barishal' 1 in ajshahi and one is in .arshingdi#

2.&.&.9 Int"rn*t!on*( N"t7or8. DBBL has been ver! success$ul in establishing an

e$$ective correspondence relationship across the globe and continuing its endeavour to



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reach ever! corner o$ the *orld to deliver prime services to its valued clients# At present'

DBBL has coverage o$ more than 11 countries through 1 correspondent banks#

2.&.&.: On-(!n" B*n8!n3 N"t7or8. &pending %aka # million' DBBL has started

its ambitious on-line banking service since &eptember "# .o* the customers o$

DBBL get Fan! branch banking service; around the countr!# As part o$ the trul! on-line

banking programme' the Bank provides 6nternet Banking' DBBL .EG& Debit Card'

DBBL-aestroHCirrus Debit Card and DBBL Credit Card# A net*ork o$ Bank;s o*n

A%s and 90& terminals has been set up at strategic points throughout the countr!# %his

$acilitates the customers to pa! their utilit! bills through these A%s and 6nternet

banking# %hrough DBBL-aestroHCirrus Debit Card' customers *ill be able to access

more than 2' Cirrus A%s in around 1 countries#

2.9 B*n8!n3 "r!"$ *nd F*!(!t!"$ 'ro!d"d

DBBL provides a range o$ services and $acilities to its customers' *hich include general

banking' retail banking' credit $acilities' and $oreign trade services#

2.9.1 G"n"r*( B*n8!n3. %he services provided under general banking include deposit

schemes' purchaseHsale o$ bonds and instruments' remittance' and pa!mentHcollection o$

bills#

2.9.1.1 D")o$!t +";"$. At present' DBBL o$$ers the $ollo*ing Deposit

&chemesHLiabilit! products in its all branches5

Curr"nt D")o$!t$


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o %he minimum balance to be maintained in the account

is %aka '#

o 0ne can *ithdra* monthl! interest over the deposited

amount or can rene* the %D receipt adding the

interest *ith principal amount at the prevailing rate#

2.9.1.2 *("?'ur+*$" o# Bond$ *nd In$tru;"nt$. /rom the counters o$ all DBBL

branches' customers can avail the $ollo*ing $acilities5

9urchase and &ale o$ 9ri+e Bonds#

&ale and Encashment o$ &ancha!a 9atras#

&ale and e-purchase o$ 6CB nit Certi$icates#

2.9.1.& R";!tt*n". DBBL;s remittance services include5

6ssue and pa!ment o$ Demand Dra$ts (DD) against5

o Cash#

o Che=ue#

o

A letter o$ instruction on account#

6ssue and pa!ment o$ %elegraphic %rans$er (%%) against5

o Cash#

o Che=ue#

o A letter o$ instruction on account#

6ssue and pa!ment o$ 9a! 0rders (90) against5

o Cash#

o Che=ue#

o A letter o$ instruction on account#

Bangladesh 6nstitute o$ Bank anagement 1"


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DBBL takes no commissions or service charges $or the above-mentioned remittance

services' but the customer must have an account *ith the Bank to avail these services#

2.9.1.9 '*%;"nt?Co(("t!on o# B!(($. DBBL;s services in this regard are as $ollo*s5

9a!mentHCollection o$ 0utstation Che=ue#

9a!mentHCollection o$ 0ut*ard Documentar! Bills#

9a!mentHCollection o$ 6n*ard Bills#

9a!mentHCollection o$ 6n*ard Documentar! Bills#

2.9.2 R"t*!( B*n8!n3.%he retail banking services provided b! DBBL includes

Locker &ervice and Consumer Credit &cheme#

2.9.2.1 Lo8"r "r!".DBBL provides international standard $ireproo$ locker $acilit!

to our valued customers at comparativel! lo*er charges $or sa$e deposit o$ their

valuable belongings# %he annual rents $or di$$erent si+es o$ lockers are5

&mall Locker 5 %aka 1##

edium Locker 5 %aka 1##

Large Locker 5 %aka ##

0ther than rent' a one time ke! deposit $or %aka # is re=uired *hich is re$undable at

the time o$ surrender o$ the Locker and the e!#

2.9.2.2 Con$u;"r Cr"d!t +";". %he DBBL Consumer Credit &cheme is designed

primaril! to $acilitate the purchase o$ di$$erent consumer items# &tarting at a small scale'

DBBL plans to e4pand this scheme a$ter $ull automation o$ its operational net*ork#

2.9.& Cr"d!t F*!(!t!"$. DBBL e4tends a range o$ credit $acilities to di$$erent t!pes o$

customers#

2.9.&.1 T%)"$ o# Cr"d!t F*!(!t!"$. DBBL o$$ers the $ollo*ing t!pes o$ loans and

advances to its customers5



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Lo*n$4 Loans are allo*ed $or various purposes and granted $or short' mid or

long term maturities# %!pes o$ loan include5

o Loan ?eneral (usuall! short term in nature)#

o %ransport Loan#

o ouse Building Loan#

o %erm Loan (6ndustrialH9roject /inancing)#

o Iorking Capital#

o Consumer Credit#

o Bridge LoanHnder*riting Advance#

o

0thers#

D";*nd Lo*n$4 Loans *hich are pa!able *hen a demand is made# &uch

loans include5

o Advance against Accepted Documentar! Bill#

o Local H /oreign Documentar! Bills#

o 9a!ments against Documents (9AD)#

o 6nlandH/oreign Bill 9urchased (Clean)#

Cont!nu!n3 Ad*n"$4 Continuing advances are the revolving lines o$ credit'

*hich are e4tended to the borro*ers $or continuing business activities# %he

$orms o$ continuing advance are as under5

o &ecured 0verdra$t including collaterali+ed overdra$t

(&0D)#

o Cash Credit (CC)#

o Loan against %rust eceipts (L%)#

o Loan against 6mported erchandise (L6)#



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Cr"d!t +";" #or ;*(( +o) O7n"r$4 DBBL o$$ers this uni=ue service to

the small shop o*ners *ho *ere so $ar denied credit $rom banks due to their

lack o$ ade=uate collateral securit! and *ere dependent on in$ormal credit

usuall! *ith ver! high interest rates# %his Bank has brought them under theumbrella o$ banking service b! o$$ering them loan $acilities *ithout an!

securit!# %he average loan amount is %aka lacs#

'u,(! Tr*n$)ort Cr"d!t +";"4 DBBL has e4tended credit to the

$ollo*ing public transport s!stems5

Dur*nt* *nd R!d"r Tr*n$)ort "r!"$4 6n collaboration *ith eghna

Automobiles Limited and hansons Automobiles Limited#

T*>!-*, Tr*n$)ort "r!"$46n collaboration *ith Com$ort Cab Limited#

R"$u" Tr*n$)ort Cr"d!t +";"4 %his is another uni=ue service in *hich

DBBL $inances the purchase o$ emergenc! medical transports like

ambulances' mobile clinics and $irst aid stations $or hospitals and clinics

around the countr!# nder this scheme' @> o$ the initial purchase price is

borne b! DBBL and the rest amount b! the borro*ing hospital or clinic# %he

loan amount is to be repaid b! the borro*er in ma4imum 23 monthl!

instalments at 12> interest rate#

tud"nt Tr*n$)ort Cr"d!t +";"4 %he Bank has undertaken a ne* credit

scheme named 8&tudent %ransport &cheme: *ith an objective o$ $inancing

transports at a lo*er cost (1> interest rate) $or the educational institutions#

%he $inancing scheme *ill provide loans to Educational 6nstitutions covering

government and private schools' colleges and universities $or purchasing

transports $or the students#

2.9.9 For"!3n Tr*d". %he $oreign trade $acilities provided b! DBBL include import

$inance< e4port $inance' and $oreign remittance#



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/oreign Bill Collection (/BC)#

2.: DBBL@$ o!*( A3"nd*

%he ethos o$ DBBL $or pursuing its activities in social arena has got $urther momentum

*ith !our enthusiasm and support# Dutch-Bangla Bank /oundation (DBB/) is

consistentl! pursuing its objective o$ being active in those social areas *here it is needed

most# %he /oundation carries out diverse social and philanthropic activities in the $ield o$

education' health' conservation o$ nature' creation o$ social a*areness' rehabilitation o$

distressed people and such other programs to redress human su$$erings# 6t also promotes

di$$erent socio-cultural and sports activities# our Board o$ Directors in order to

discharge its corporate social responsibilities in a greater perspective continued its

contribution amounting to #> o$ BankJs pro$it a$ter charging loan loss provision to

Dutch-Bangla Bank /oundation (DBB/)#

6t is important that citi+ens o$ a societ! enjo! the $ull bene$its that societ! o$$ers# A

societ!' in turn' $lourishes *hen its citi+en can contribute their $ullest potential# %he *ell

being o$ individuals is jeopardi+ing *hen normal developmental processes are

interrupted b! personal crisis' povert!' unemplo!ment' poor health and inade=uateeducation# Dutch-Bangla Bank Limited (DBBL) is the $irst Bangladeshi-European joint

venture bank in Bangladesh addresses social concerns that threaten the structure o$

societ! and redress social conditions that adversel! a$$ect the *ell being o$ people and

societ!# DBBL practice thus encompass the pro$essional activities o$ helping individuals'

$amilies' groups' organi+ations' and communities to enhance or restore their capacit! $or

optimal social $unctioning and o$ creating societal conditions $avourable to this goal#

Dutch-Bangla Bank /oundation (DBB/) *as established on 2rd ,une 1 to per$orm

humanitarian *orks like rehabilitation o$ the destitute and neglected portion o$ the

societ! speciall! grassroots level poor in right track# Aim and objectives o$ DBB/ are as

bello*#

1# %o grant' pa! or give' a*ard scholarship' stipends' pri+es' re*ards' allo*ance and

other $inancial assistance or help in cash or kind to students *ith a vie* to help



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them in prosecuting their stud! in universities' schools' colleges' educational

institutions' technical institutions' art schools' institutions o$ teaching commercial

and training' research or educational *orks in Bangladesh or abroad subject to

such terms and conditions as shall $rom time to time be prescribed b! the Board

o$ %rustees $or advancement and promotion o$ education#

# %o $oster and encourage education and training in the $ield o$ banking among the

persons emplo!ed in banking sector or *ho *ishes to partake training *ith a

vie* to be engaged in banking service and to establish and $ound institutions

imparting such education and to establish' maintain' support or help b! monetar!

gi$ts or other*ise' centres and institutions $or such education and training#

2# %o meet travelling' boarding and lodging e4penses $or students going abroad $or

higher commercial and technical education' especiall! in banking subject(s)#

"# %o open' $ound' establish' promote' set-up' run' maintain' assist' $inance' support

andI aid or help in setting up and H or maintaining and H or running hospitals'

clinics' maternit! and child care centre' boarding houses' libraries' reading-

rooms' g!mnasium and other training and vocational institutes#

# %o publish and or publishing books' pamphlets' periodicals' and ne*spapers in

Bangladesh or outside $or the spread and advancement o$ education and culture#

3# %o establish' promote' set-up' maintain' assist' $inancial support and Hor aid to or

to help in the setting up and Hor maintaining and Hor running schools and other

institutions' orphanages' *ido* homes' lunatic' as!lums' old homes' poor houses

or other establishments $or relie$ and Hor help to the poor' old and in$irm people

and H or destitute or to give' provide and H or render help and assistance in cash or

kind to poor and or destitute' *ido*s' etc< or to give' provide and I or render help

and assistance to and H or implement an! scheme $or providing livelihood and

upli$tment o$ the poor#

@# %o give' provide and/ or render $ood' medicine and other help $ind assistance in

an! shape or $orm to the poor deserving and need! persons#

7# %o give' provide and/ or render monetar! and H or other help and assistance $or

the relie$ o$ persons and animals a$$ected b! natural and other calamities such as



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$lood' $ire' $amine' c!clone' earth-=uake' storm' accident' pestilence' drought'

epidemic' etc#

# %o open' $ound' establish' promote' set-up' run' maintain' assist' $inance' support

and H or aid or help in the setting up and H or maintaining and H or running

institutions' centre' auditoriums and the like $or the running o$ *el$are and other

services to the public and to provide meeting-room $or sociall! use$ul activities

and $unctions#

1# %o promote' organi+e' administer' establish' support' maintain' and Hor grant to

an! person' institution or societ! or organi+ation *hatsoever having $or its

objects or charitable purposes and or incur e4penditure in connection there*ith#

11# %o promote sports and culture through establishment o$ Clubs $or sports'

recreational and cultural activates and introduce a*ards' shields' medals etc# and

also organi+e debates essa! and sports competitions to achieve this object#

1# %o organi+e meetings' seminars' s!mposia etc# to create a*areness among the

people aimed at spreading and upholding the ideals' values and spirit o$ the

Banking and related products and services#

%o *ork in collaboration *ith other %rusts' /oundations' Associations and bodies having

activities' programs' and projects aimed at establishing' spreading and upholding the

ideals o$ Dutch-Bangla Bank /oundation#
