Yearly Notes 2011

8/3/2019 Yearly Notes 2011

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National Credit and Commerce Bank LimitedNotes to the Financial Statements

As at and for the period ended December 31, 2010

1.1 Status of the bank

1.1.1 The National Credit and Commerce Bank Limited (NCCBL) was formed as a public limited bankingcompany incorporated in Bangladesh with primary objective to carry on all kinds of banking business in

and outside Bangladesh.

1.1.2 The registered office of the Bank is located at 7-8, Motijheel Commercial Area, Dhaka-1000. It has 79branches all over the Bangladesh and the bank has no overseas branches as at December 31, 2010. Itcarries out all banking activities through it branches in Bangladesh. The Bank went for Initial PublicOffering in 1999 and its share is listed with Dhaka and Chittagong Stock Exchange Limited as a publiclytraded company for its general class of shares.

1.1.3 The bank commenced its banking business with sixteen branches from May 17, 1993.

1.1.4 Principal activities

The commercial banking business activities of the bank encompass a wide range of services includingaccepting deposits, making loans, discounting bills, conducting money transfer, foreign exchange

transactions and performing other related services such as safekeeping collection, issuing guarantees,acceptances and letter of credits through its branches in Bangladesh.

The bank undertakes investments of its fund in the share investment and also engaged in buying andselling of securities for its customers through Brokerage House. The bank carries out all these activitiesby using a membership share of Dhaka Stock Exchange Limited & Chittagong Stock Exchange LimitedMoreover, as per guideline of Bangladesh Bank and The Securities & Exchange Commission, Bank hastaken steps to form two subsidiary companies for Stock Brokerage business and Merchant Banking.

1.2 Significant accounting policies and basis of preparation of financial statements

1.2.1 Basis of accounting

Statement of complianceThe financial statements of the bank are made up to December 31, 2010 and are prepared under thehistorical cost convention except investments, land & properties and in accordance with the FirstSchedule Section 38(4) of the Bank Companies Act, 1991, BRPD Circular # 14 dated 25 June, 2003, other

Bangladesh Bank Circulars, Bangladesh Accounting Standards and Bangladesh Financial ReportingStandards, The Companies Act, 1994, The Securities and Exchange Rules 1987, Dhaka & ChittagongStock Exchanges listing regulations and other laws and rules applicable in Bangladesh.

1.2.2 Basis of consolidation

A separate set of records for consolidation of the statement of affairs and income and expendituraccount of the branches are maintained at head office of the bank based on which these financiastatements have been prepared. All significant inter branch transaction are eliminated on consolidation.

1.2.3 Use of estimates and judgmentsThe preparation of financial statements requires management to make judgments, estimates andassumptions that affect the application of accounting policies and the reported amounts of assetsliabilities, 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 period in which the estimate is revised and in any future periods affected.

1.2.4 Going concern

The financial statements have been prepared on a going concern basis, which contemplate the realizationof assets and the satisfaction of liabilities in the normal course of business.


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1.2.5 Functional and presentation currency

The financial statements are presented in Bangladeshi Taka which is the bank's functional currencyexcept as indicated.

1.2.6 Materiality & aggregation

Each significant material item as considered by the management has been presented separately in thefinancial statements. No amount has been set off unless the bank has a legal right to set off the amountsis intended to settle on net basis. Income and expenses are presented on a net basis only whenpermitted by the relevant Accounting Standards.

1.2.7 Foreign currency transaction

a) Foreign currencies translation

Foreign currency transactions are converted into equivalent taka using the ruling exchange rates on thedates of respective transactions as per BAS-21 The Effects of Changes in Foreign Exchange Rates

Assets and liabilities in foreign currencies are converted into taka at weighted average rate of inter-bankmarket as determined by Bangladesh Bank on the closing date of every month.

b) CommitmentsContingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreigncurrencies are expressed in Taka terms at the rates of exchange ruling on the balance sheet date.

c) Translation gains and losses

The resulting exchange transaction gains and losses are included in the profit and loss account.

1.2.8 Cash flow statement

Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard-7 CashFlow Statements under direct method as recommended in the BRPD Circular No. 14, dated June 25,2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank.

1.2.9 Liquidity statement

The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual

maturity term as per the following bases.i) Balance with other banks and financial institutions, money at call and short notice, etc. are

shown on the basis of their maturity term;ii) Investments are on the basis of their respective maturity;iii) Loans and advances / investments are on the basis of their repayment schedule;iv) Fixed assets are on the basis of their useful lives;v) Other assets are on the basis of their realization / amortization;vi) Borrowing from other banks, financial institutions and agents, etc. are as per their maturity /

repayment terms;vii) Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal

by the depositors;viii) Provisions and other liabilities are on the basis of their payment / adjustments schedule.

1.2.10 Reporting period

These financial statements cover for the period from January 01, 2010 to December 31, 2010.

1.3 Assets and basis of their valuation

1.3.1 Cash and cash equivalents

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with BangladeshBank and highly liquid financial asset which are subject to insignificant risk of changes in their fair valueand are used by the bank management for its short-term commitments.


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Value of investments has been enumerated as follow:

Item Applicable accounting Value

Government treasury bills Present value

Government treasury bonds Present valueICBs Debenture Present valuePrize bonds At cost

Quoted shares As per BRPD Circular no.14 dated June 25, 2001Un-quoted shares At cost

Investment in listed securities

These securities are bought and held primarily for the purpose of selling them in future of held fordividend income. These are reported at cost unrealized gains are not recognized in the profit and lossaccount.

Investment in unlisted securities

Investment in unlisted securities is reported at cost under cost method. Adjustment is given for anyshortage of book value over cost for determining the carrying amount of investment in unlisted securities.

1.3.4 Property, plant and equipment

a) Land and building were revalued on 31.12.2008. Fixed assets are stated at historical cost or revaluedamount (whenever applicable) less accumulated depreciation as per BAS -16 Property, Plant andEquipment the cost of acquisition of an assets 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, dutiesand non refundable taxes.

b) The bank recognizes in the carrying amount of an item of property, plant and equipment the cost ofreplacing part of such an item when that cost is incurred if it is probable that the future economic

benefits embodied with the item will flow to the company and the cost of the item can be measuredreliably. Expenditure incurred after the assets have been put into operation such as repairs andmaintenance is normally charged of as revenue expenditure in the period in which it is incurred.

c) Depreciation is charged for the year at the following rates on reducing balance method on all fixed

assets other than vehicles and software on which straight line depreciation method is followed and nodepreciation on land is charged:

Category of fixed assets RateLandBuilding/Apartment & Structure

Nil2.5%

Furniture & fixture 10.00% to 20.00%Office equipment & Machineries 20.00%

Software (straight line) 20.00% Vehicles (straight line) 20.00%

d) For additions during the year, depreciation is charged for the remaining days of the period and fordisposal depreciation is charged up to the date of disposal.

e) On disposal of fixed assets the cost and accumulated depreciation are eliminated from the fixed assetsschedule and gain or loss on such disposal is reflected in the profit and loss account which is determinedwith reference to the net book value of the assets and net sale proceeds.


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Other assets

a) Provision for other assetsOther assets have been clarified as per BRPD circular no. 14 dated 25.06.2001 of Bangladesh Bank andnecessary provisions made thereon accordingly and for item not covered under the circular adequate

provision have been made considering their realisability.

b) Written off other assetsOther assets having no realistic prospect of recovery have been written off and full provisions have beenkept against the debts. Notional balance against the written off investments have been kept to maintainthe detailed memorandum records for written off account.

Non-banking assets

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

1.3.5 Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the riskand rewards of ownership to the lessee as per BAS-17 Lease.

The Bank as lessorAmount due from lessees under finance leases are recorded as receivables at the amount of the Banks

Loans and Advances in the leases.

The Bank as lessee

The Bank has no assets under finance or operating Leases.

1.4 Basis for valuation of liabilities and provisions

1.4.1 Provision for taxation

Provision for current income tax has been made @ 42.5% as prescribed in the Finance Act, 2010 on theaccounting profit made by the Bank after considering some of the add backs to income and disallowancesof expenditure as per income tax laws in compliance with BAS-12 Income Taxes.

1.4.2 Deferred taxation

Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxabletemporary differences. Deferred tax assets are the amount of income taxes recoverable in future periodsin respect of deductible temporary differences. Deferred tax assets and liabilities are recognized for the

future tax consequences of timing difference arising between the carrying values of assets, liabilities,income and expenditure and their respective tax bases. Deferred tax assets & liabilities are measuredusing tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date.The impact on the account of changes in the deferred tax assets and liabilities has also been recognizedin the profit and loss account as per BAS -12 Income Taxes.

1.4.3 Dividend payments

Interim dividends are recognized when they are paid to shareholders. Final dividend is recognized when itis approved by the shareholders.

Dividend payable to the banks shareholders are recognized as a liability and deducted from the

shareholders equity in the period in which the shareholders right to receive the payment is established.

1.4.4 Statutory reserve

Bank Companies Act, 1991 requires the bank to transfer not less than 20% of its current period profitbefore tax to reserve until such reserve equals to its paid up capital.


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1.4.5 Revaluation reserveWhen an assets carrying amount is increased as a result of a revaluation, the increased amount crediteddirectly to equity under the heading of revaluation surplus/reserve as per BAS-16: Property, Plant andEquipment. The Bank revalued the assets of Land and Buildings which is absolutely own by the Bank

and the increased amount transferred to revaluation reserve. The tax effects on revaluation gain aremeasured and recognized in the financial statements as per BAS-12: Income Taxes

1.4.6 Benefits to the employees

The retirement benefits accrued for the employees of the bank as on reporting date have been accounted

for in accordance with the provisions of BAS-19 Employee Benefits. The bank operates retirementbenefits scheme for its permanent employees. Elements of which are as under:

a) Provident fund

Provident fund benefits are given to the permanent employees of the bank in accordance with banksservice rules. Accordingly a trust of deed and provident fund rules were prepared. The Commissioner ofIncome Tax, Taxes Zone-04, Dhaka has approved the provident fund as a recognized provident fund

within the meaning of section 2(52), read with the provisions of part - B of the First Schedule of IncomeTax Ordinance 1984. The recognition took effect from 16.01.1992. The fund is operated by a Board ofTrustees consisting 06 (six) members. All confirmed employees of the bank are contributing 10% of theirbasic salary as subscription to the fund. The bank also contributes equal amount of the employeescontribution. Interest earned from the investments is credited to the members account on yearly basis.

b) Gratuity fund

The bank has operated funded gratuity fund which was approved by National Board of Revenue on. Thefund is operated Board of Trustees. Provision in respect of which is made annually covering all its

permanent eligible employees as per BAS-19 Employee Benefits.

c) Superannuation fund

The bank operates an employees Superannuation Fund Trust by a separate Board of Trustees consisting

of 05 (Five) members. The death-cum survival benefits are given to the employees as per the eligibilitynarrated in the Trust Rules. The fund got recognition from the National Board of Revenue (NBR) effectfrom 01.01.2004 under the section 3 and 4 of part A of First Schedule of Income Tax Ordinance 1984.The bank contributes to the fund annually as per Superannuation Fund Rules of the bank.

d) Benevolent Fund

NCCBL employeesbenevolent fundwasestablished in the year 2007 for the welfare of the distressedemployees and their dependents. The employees of the bank contribute to the fund at a rate applicable

for each grade from their monthly salary.

1.4.6 Provision for liabilities

A provision is recognized in the balance sheet when the bank has a legal or constructive obligation of a

result of a past event and it is probable that an outflow of economic benefit will be required to settle theobligation in accordance with the BAS-37 Provisions, Contingent Liabilities and Contingent Assets.

1.5 Revenue recognition

1.5.1 Interest income

In terms of the provision of the BAS-18 Revenue the interest income is recognized on accrual basis.Interest on loans and advances ceases to be taken in to income when such advances are classified. It isthan kept in interest suspense in a memorandum account. Interest on classified advances is accountedfor on a cash receipt basis.


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1.5.2 Investment income

Interest income on investments is recognized on accrual basis. Capital gain on investments in shares isalso included in investment income. Capital gain is recognized when it is realized.

1.5.3 Fees and commission income

Fees and commission income arises on services provided by the bank are recognized on a cash receivedbasis. Commission charged to customer on letters of credit and letters of guarantee is credited to incomeat the time of effecting the transactions.

1.5.4 Dividend income on shares

Dividend income on shares is recognized during the period in which it is declared and ascertained.

1.6 Reconciliation of inter-bank and inter-branch account

Accounts with regard to inter-bank are reconciled regularly and there are no material differences which

may affect the financial statements significantly.

Un-reconciled entries / balances incase of inter-branch transaction as on the reporting date are notmaterial.

1.7 Risk management

The risk of NCCBL is defined as the possibility of losses, financial of otherwise. The risk management ofthe bank covers core risk areas of banking viz, credit risk, liquidity risk, operational risk and reputationrisk arising from money laundering incidences. The prime objective of the risk management is that thebank evaluates and takes well calculative business risks and there by safeguarding the banks capitals, itsfinancial resources and profitability from various business risks through its own measures and throughimplementing Bangladesh Bank guidelines and following some of the best practices as under:

1.7.1 Credit risk

It arises mainly from lending, trade finance, leasing and treasury business. This can be described as

potential loss arises from the failure of a counter party to perform as per contractual agreement with thebank. The failure may result from unwillingness of the counter party of decline in his or her financiacondition there for the banks credit risk management activities have been designed to address all theseissues.

The Bank has segregated duties of the officers / executives involved in credit related activities a separatecorporate division has been formed at Head office which is entrusted with the duties of maintainingeffective relationship with the customers, marketing of credit products, exploring now businessopportunities etc. more over, credit approval, administration, monitoring and recovery functions havebeen segregated. For this purpose, three separate units have been formed within the credit division theseare a) Credit risk Management Unit b) Credit Administration Unit and c) Credit monitoring and recoveryUnit. Credit risk management Unit is entrusted with the duties of maintaining assets quality, assessingrisk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending

operation, etc. Adequate provision has been made on classified loans is shown in Note 14.4 (a).A thorough assessment is done before sanction of any credit facility at Credit Risk Management unit. Therisk assessment includes borrower risk analysis, financial analysis, industry analysis, historicaperformance of the customer, security of the proposed credit facility, etc. The assessment process starts

at Corporate Credit Division by the Relationship Manager / Officer and ends at Credit Risk ManagementUnit when it is approved / declined by the competent authority. Credit approval authority has beendelegated to the individual at executives. Proposals beyond their delegation are approved / declined bythe Executives Committee and / or the Management of the Bank. In determining Single borrower / largeloan limit, the instructions of Bangladesh Bank are strictly followed. Internal audit is conducted at

periodical intervals to ensure compliance of Banks and Regulatory policies. Loans are classified as perBangladesh Banks guidelines. Concentration of single borrower/large loan limit is shown inAnnexure-D


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1.7.2 Liquidity risk

The objective of liquidity risk management is to ensure that all foreseeable funding commitments anddeposit 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 balances. Management ofliquidity and funding is carried out by Treasury Department under approved policy guidelines. Treasuryfront office is supported by a very structured Mid office and Back office. Asset Liability Committee (ALCO)monitors the Liquidity management on a regular basis. A written contingency plan is in place to manageextreme situation.

1.7.3 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 earning due to change in market prices. Theforeign 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. No foreign exchangedealing on Banks account was conducted during the year.

Treasury Department independently conducts the transactions and the back office of treasury isresponsible for verification of the deals and passing of their entries in the books of account. All foreign

exchange transactions are revalued at Mark-to-Market rate as determined by Bangladesh Bank at themonth-end. All Nostro accounts are reconciled on a monthly basis and the management for its settlementreviews outstanding entry beyond 30 days. The position maintained by the bank at the end of day was

within the stipulated limit prescribed by the Bangladesh Bank.

Interest rate risk

Interest rate risk may arise either from trading portfolio and non-trading portfolio. The trading portfolio of

the Bank consists of Government treasury bills of 28 days maturity. The short-term movement in interestrate 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 ratemovement on a regular basis.

Equity risk

Equity risk arises from movement in market value of equities held. The market value of equities is lesserthan cost price against which provision is appearing made in these financial statements.

1.7.4 Reputation risk arising from money laundering incidences

Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for beingnegligent in prevention of money laundering. For mitigating the risks, the bank has a designated ChiefCompliance officer at Head office and Compliance officers at branches, who independently review thetransactions of the accounts to verify suspicious transactions. Manuals for prevention of money

laundering have been established and transaction profile has been introduced. Training is continuouslygiven to all the category of Officers and Executives for developing awareness and skill for identifyingsuspicious activities / transactions.

1.7.5 Operational risk

Operational risk may arise from error and fraud due to lack of internal control and complianceManagement through internal control and compliance division controls operational procedure of the BankInternal Control and compliance division undertakes periodical and special audit of the branches anddepartments at the Head Office for review of the operation and compliance of statutory requirementsThe Audit Committee of the Board subsequently reviews the reports of the internal control andcompliance division.


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1.8 Earnings per share

Basic earning per share

Basic earning per share has been calculated in accordance with BAS-33 Earning per Share which has

been shown on the face of the profit and loss account. This has been calculated by dividing the basicearning by the weighted average number of ordinary shares outstanding during the period. Weightedaverage number of shares has been calculated with effects of Right share issued during the period endedDecember 31, 2010.

The bonus shares issued during the period were treated as if they had been in issue in previous year also

(declared for 2009 result). Hence, in computing the basic earning per share of December 31, 2009, thetotal number of shares including the said bonus shares has been considered as the weighted averagenumber of shares outstanding during the period 2009 as per BAS-33 Earning per Share.

Diluted earnings per share

No diluted earning per share is required to be calculated for the year as there was no scope for dilution

during the year under review.

1.9 Off-balance sheet items & provisions

Off balance sheet items have been disclosed under contingent liabilities and other commitments as perBangladesh Bank guidelines. Provision for Off-balance sheet items is made as per instruction contained inBRPD Circular # 10, dated September 18, 2007 @ 1% on Off-balance sheet items as on December 31,2010.

1.10 Memorandum items

Memorandum items are maintained to have control over all items of importance and for such transactionswhere the Bank has only a business responsibility and no legal commitment. Stock of Travelers Cheques

(TC), Saving Certificates and other fall under the memorandum items.

1.11 Offsetting

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet whenthere is a legally enforceable right to offset the recognized amounts and there is an intention to settle on

a net basis, or realize the asset and settle the liability simultaneously.

1.12 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial ReportingStandards (BFRS):

Name of the BAS BAS no StatusPresentation of Financial Statements 1 AppliedInventories 2 Not applicable

Cash Flow Statements 7 AppliedAccounting Policies, Changes in AccountingEstimates and Errors

8 Applied

Events after the Balance Sheet Date 10 AppliedConstruction Contracts 11 Not applicableIncome Taxes 12 Applied

Property, Plant and Equipment 16 AppliedLeases 17 AppliedRevenue 18 AppliedEmployee Benefits 19 Applied


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Accounting for Government Grants andDisclosure of Government Assistance

20 Not applicable

The Effect of Changes in Foreign ExchangesRates

21 Applied

Borrowing Costs 23 AppliedRelated Party Disclosures 24 Applied

Accounting and Reporting by Retirement BenefitPlans

26 Applied

Consolidated and Separate Financial Statements 27 Not applicable

Investments in Associates 28 Not applicableDisclosures in the Financial Statements of Banks

and Similar Financial Institutions

30 Applied

Interest in Joint Ventures 31 Not applicableEarnings Per Share 33 Applied

Interim Financial Reporting 34 AppliedImpairment of Assets 36 AppliedProvisions, Contingent Liabilities and Contingent

Assets

37 Applied

Intangible Assets 38 AppliedInvestment Property 40 Not applicable Agriculture 41 Not applica

Name of the BFRS BFRS no. StatusShare Based Payment 2 Not applicableBusiness Combinations 3 Not applicableNon-current Assets Held for Sale andDiscontinued Operations

5 Not applicable

Financial Instruments: Disclosure 7 Applicable

Operating Segments 8 Not applicable

1.13 Regulatory and legal compliance

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

a) The Bank Companies Act, 1991;b) The Companies Act, 1994;c) Rules and Regulations issued by Bangladesh Bank;d) The Securities and Exchange Rules 1987, The Securities and Exchange Ordinance 1969, The

Securities and Exchange Commission Act, 1993, The Securities and Commission (PublicIssue) Rules 2006;

e) The Income Tax Ordinance, 1984;f) The VAT Act, 1991;g) Other Laws & Regulations as applicable.

1.14 Information and communication technology

NCCBL follows the guideline stated in BRPD Circular no. 14 dated 23 October 2005 regarding Guidelineon Information and Communication Technology for Scheduled Banks.

IT management deals with IT policy documentation, internal IT audit, training and insurance.

IT operation management covers the dynamics of technology operation management including change

management, assets management and operating environment procedures management. The objective isto achieve the highest levels of technology service quality by minimum operational risk.


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Physical security involves providing environmental safeguards as well as controlling physical access toequipment and data.

In order to ensure that information assets are protected against risk, there are controls over :a) Passwordb) User ID maintenancec) Inputd) Network securitye) Data encryptionf) Virus protectiong) Internet and e-mail

The Business Control Plan (BCP) is formulated to cover operational risk and taking into account thepotential for wide area disasters, data center disasters and the recovery plan. The BCP takes into accountthe backup and recovery process.

1.15 Asset Liability Management

The Assets Liability Committee (ALCO) of the Bank monitors Market risk and liquidity risks of the bankThe Market risk is defined as potential charge in earnings due to change in rate of interest, foreign

exchange rates which are not of trading nature. ALCO reviews liquidity requirement of the Bank, thematurity of assets and liabilities, deposit and lending, pricing strategy and the liquidity contingence plan.The primary objective of the ALCO is to monitor and avert significant volatility in Net Interest Income(NII), investment value and exchange earnings.

1.16 Segment reporting

The bank has only one reportable business segment and operation of the bank is within the geographicaterritory of Bangladesh. Hence segment reporting in accordance with BFRS-8 Operating Segment is not

applicable.

1.17 Events after the balance sheet date

Events after the balance sheet date that provide additional information about the banks position at thebalance sheet date are reflected in the financial statements. Events after the balance sheet date are not

adjusting event are disclosed in the notes when material.

1.18 Assets pledge as security

The bank has secured liability as mentioned in notes 12.01 and there was assets pledge as securitiesagainst liabilities.

1.19 Credit rating of the bank

As per the BRPD instruction circular no. 6 dated July 5, 2006, the bank has done its credit rating by theCredit Rating Agency of Bangladesh (CRAB) based on the financial statements dated December 2009, the

following rating has been awarded:

Date of rating Long term Short term

Entity Rating 24.06.2010 A1 ST-2


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2010 2009

Taka Taka

4 Cash in hand ( Including Foreign Currencies)

Local currency 722,585,828 435,718,467

Foreign Currencies 9,006,915 12,145,538

731,592,743 447,864,005

5 Balance with Bangladesh Bank and its agent bank(s)

Local currency 5,125,603,170 2,875,481,834

Foreign currencies 88,116,919 193,770,476

5,213,720,089 3,069,252,310Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )-note 5.1 286,294,421 113,121,598

5,500,014,510 3,182,373,908

5.1 Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )

Cox's Bazar Branch 43,200,925 16,603,251

Feni Branch 15,531,864 46,822,838Laxmipur Branch 18,081,375 4,120,656

Moulvibazar Main Branch 3,023,615 671,212

Jessore Branch 30,092,311 17,723,845

Chaumuhani Branch 10,785,499 3,666,117

Madaripur Branch 1,782,075 1,341,600

Chakaria Branch 130,547 399,381

Comilla Branch 8,648,582 4,328,902

Joydevpur Branch 6,728,401 993,786

Mymensingh Branch 22,388,625 -

Tangail Branch 44,682,738 4,140,302

Naogaon Branch 7,593,288 8,660,699

Kushtia Branch 6,555,207 3,649,009

Narayangonj Branch 58,461,260 -Brahmanbaria Branch 4,601,761 -

Narsingdi Branch 3,735,431 -

Maijdee Branch 270,917 -

286,294,421 113,121,598

5.2 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)

5.3 Cash Reserve Requirement ( CRR) 6% of average Demand and Time Liabilities:

Required Reserve 4,044,500,000 2,738,400,000

Actual Reserve held 5,125,603,170 2,875,481,834

Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in

accordance with the Section 33 of the Bank Companies Act 1991 and subsequent BCD Circular No.13 dated May

24, 1992; BRPD Circular No. 12, dated September 20, 1999, BRPD Circular No. 22 dated November 6, 2003,

BRPD Circular No. 05 dated July 21, 2004 and DOS Circular no-06 March 23, 2005. BRPD Circular No. 11 & 12

dated 25 August 2005, MPD circular no. 116/2010-1712 & 04 dated December 2010.The cash reserve requirement on the Bank's time and demand liabilities @ of 6% has been calculated and

maintained with Bangladesh Bank in current account and 19% Statutory Liquidity ratio including CRR on same

liabilities has also been maintained in the form of treasury bills, treasury bonds and debenture including FC

balance with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the statutory

requirements as shown below:


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2010 2009

Taka Taka

5.4 Statutory Liquidity Ratio ( SLR) 19% of average Demand and Time Liabilities:

Required Reserve (including CRR) 12,792,100,000 9,847,000,000

Actual Reserve held (including CRR) 16,493,914,140 12,749,840,962Surplus/ (deficit) 3,701,814,140 2,902,840,962

Total required reserve 12,792,100,000 9,847,000,000

Total actual reserve held 16,493,914,140 12,749,840,962Total Surplus/(deficit) 3,701,814,140 2,902,840,962

6 Balance with other Banks and Financial Institutions :

In Bangladesh (Note -6.01 ) 331,517,804 464,746,061

Outside Bangladesh ( Note-6.2) 235,808,073 178,159,873567,325,877 642,905,934

6.1 In Bangladesh

Current Accounts with

Sonali Bank Ltd. 21,505,633 56,494,085

ICB Islamic Bank Ltd. 600,023 600,373

Janata Bank Ltd. 13,340,763 -

. , ,

Uttara Bank Ltd. 242,055 243,095

Islami Bank Bangladesh Ltd. 589,849 1,691,549

Pubali Bank Ltd. 281,035 282,535

Commercial Bank of Ceylon 1,077,500 1,077,500

United Commercial Bank Ltd. 213,818 215,088

National Bank Ltd. 540 -

Standard Chartered Bank 5,140,451 6,303,069Dutch Bangla Bank Ltd. 422,310 1,297,709

Agrani Bank Ltd. 398,228 398,228

Rupali Bank Ltd. 5,793,333 8,558,283

The Trust Bank Ltd. - 2,037,631

49,607,538 79,201,145

Short-term Deposit Accounts

Janata Bank Ltd. 2,122,846 25,220,376

Dutch Bangla Bank Limited 1,084,969 1,019,839

3,207,815 26,240,215

Fixed Deposit Accounts with

ICB Islamic Bank Ltd. 21,202,451 21,804,701

Bank Asia Ltd. - 200,000,000

United Commercial Bank Ltd. - 70,000,000

National Bank of Pakistan 100,000,000 -

Bay Leasing & Investment Ltd. - 10,000,000

Lanka Bangla Finance 70,000,000 20,000,000

BD Industrial Finance Co Ltd 37,500,000 37,500,000

International Leasing & Financial Services limited 50,000,000 -

278,702,451 359,304,701

331,517,804 464,746,061


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2010 2009

Taka Taka

6.2 Outside Bangladesh (NOSTRO Accounts)

Current Accounts (non-interest bearing) with:

Standard Chartered Bank, Singapore 533,754 2,088,439

Standard Chartered Bank, Japan 1,369,534 1,640,461HSBC BANK N.Y 8,944,497 -

Sumitomo Mitsui Banking Corp. - 492,989

Bank of Tokyo Mitsubishi, Japan 905,912 7,808,428

Myanma Investment & Co, Mayanmar 6,632,299 343,250

IFIC Bank Ltd., Karachi - 2,928,175

Bank of Tokyo Mitsubishi, Kolkata 7,035,000 6,865,000

American Express Bank, Colombo 26,800,395 7,669,112

BANCO ITAU 4,897,467 -

United Bank Ltd., Karachi 1,965,312 5,751,143

AXIS Bank Kolkata 6,462,083Nepal Bangladesh Bank, Nepal 4,050,339 5,351,688

HSBC, Kolkata 18,888,751 3,859,471

Bank of Bhutan, Phuentsholing 4,060,432 2,939,640Standard Chartered Bank, Kolkata - 176,588

Standard Chartered Bank, London 1,469,082 762,925

Habib Metropoliton Bank 9,891,641 4,106,739

Uni Credio Italiano Spa 4,645,956 701,368

Wachovia NA - 22,183,126

Commerrz Bank AG 1,041,928 -

UBAF,JAPAN 157,521 -

ICIC Bank, HKK 11,604,349 13,394,673

Nova Scotia Canada 3,803,014 1,300,863

125,159,266 90,364,078

Current Accounts (interest bearing) with:

Standard Chartered Bank, New York 81,801,661 38,861,290Citibank N. A., New York - 20,574,154

Standard Chartered Bank, London - 822,268

Banca Nazionale - 220,968

Commerge Bank AG - 174,698

Mashreq Bank ,New York 28,847,146 27,142,417

110,648,807 87,795,795

235,808,073 178,159,873

Annexure 'B' may kindly be seen for details

6.3

Payable on demand 285,415,611 238,343,820Up to one month 153,207,815 270,000,000

Over one month but not more than three months 70,000,000 46,240,215

Over three months but not more than six months 37,500,000 47,500,000

Over six months but not more than one year - -

Over one year but not more than five years 21,202,451 21,804,701

Over five years -

567,325,877 623,888,736

7 Money at Call and short notice :

- -

- -

Balance with other banks and financial institutions

(according to remaining maturity grouping) Payable :

Banking Company

Non-banking financial institutions


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2010 2009

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8 Investments :

10,262,306,887 9,188,182,140

718,501,349 483,347,914

10,980,808,236 9,671,530,054i) Investment classified as per Bangladesh Bank Circular

Held for trading (HFT) 7,177,654,429 6,361,670,817

Held to maturity (HTM) 3,079,216,458 2,811,885,781

Other Securities 739,374,266 497,973,456

10,996,245,153 9,671,530,054

a) Government Securities:

Treasury bills:

364 days Treasury bills 139,030,051 210,379,398

5 years Treasury bills - -

139,030,051 210,379,398

Treasury bonds:

5 years Treasury bonds 2,072,930,847 2,153,743,98910 years Treasury bonds 5,934,315,654 5,738,687,445

15 years Treasury bonds 1,345,735,837 690,275,214

20 years Treasury bonds 764,858,498 339,494,901

10,117,840,836 8,922,201,549

Margin on

Other Investments-Note 8(b)

Government Securities-Note 8(a)

Treasury bills - 40,975,651

Treasury bonds - -

- 40,975,651

Prize Bonds 5,436,000 8,057,500

15 years ICB's Debenture (Interest rate @ 5% p.a. ) - 6,568,042

10,262,306,887 9,188,182,140

b) Other investments:

Zero Coupon Bonds 119,296,471 87,508,017Other Bonds 100,000,000 -

Beximco Pharmaceuticals (Debenture ) 60,570 60,570

Investment in shares (Note 8.3) 514,498,115 410,369,085

Less: Provision for diminution in the market value of shares (Note-8.1) (15,353,807) (14,589,758)

499,144,308 395,779,327

718,501,349 483,347,91410,980,808,236 9,671,530,054

8.1 Provision for Investment fluctuation in shares

Opening Balance 14,589,758 55,786,601

Add: Provision made during the year 764,049 -

Less: Provision amount Transferred to P/Loss A/c - (32,981,953)

Less: Adjusted during the year - (8,214,890)

Closing Balance 15,353,807 14,589,758

8.2 Maturity grouping of investments

Demand 238,091,108 403,897,397

Up to one month - -

Over one month but not more than three months 19,401,385 -

Over three months but not more than six months - -

Over six months but not more than one year 139,029,911 257,923,091

Over one year but not more than five years 2,292,227,318 2,241,252,006

Over five years 8,292,058,514 6,768,457,560


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2010 2009

Taka Taka8.3 Investment in Share:

Quoted:Agrani Insurance Ltd 8,738,938 -Prime Textile S innin Mills Ltd. 300,000 300,000Ol m ic Industries Ltd. 511,650 1,284,535

Asia Insurance Ltd. 6,137,650 -Al-Arafa Islami Bank Ltd. 26,719,575 7,447,025Bata Shoe Co. (BD) Ltd. 3,008,892 442,348BSRM Steel Ltd. 4,599,429 -Eastern Cables Ltd. 277,852 277,852DBH 1st Mutual Fund 4,000,000 -National Bank Limited 5,984,195 12,416,334Eastland Insurance Ltd 11,650 -Green Delta Insurance Co. 2,691,070 -Bangladesh Auto Cars Ltd. 223,932 223,932Ea le Star Textile Mills Ltd. 4,227,951 4,227,951Bank Asia Ltd - 3,389,059Exim Bank Ltd 337,500 4,824,949Mercantile Bank Ltd - 3,372,220

Premier Leasing Ltd. 13,681 14,409,910Summit Power Ltd. 12,919,344 36,410,120

Armit Ltd - 3,781,210IDLC 9,255,159 8,187,702Bangladesh Industrial Finance - 12,480,134Brac Bank Ltd. - 3,412,639r me an . , , ,

Lanka Bangla Finance Ltd. 3,444,450 -Uttara Bank Ltd. 934,833 21,125,836

Arab Ban ladesh Bank Ltd 870,280 27,196,250Cit Bank Ltd - 2,407,226ICB Islami Bank Ltd. 5,490,645 14,499,913DESCO Ltd. 9,945,178 8,060,622IFIC Bank Limited - 24,830,797

Jamuna Bank Ltd. 3,730,599 4,573,886Meghna Petroleum Ltd. 3,292,656 -Power Grid Co. Ltd. - 3,045,381Pubali Bank Limited 18,277,987 5,060,262Square Pharma 11,400,286 59,245,508Standard Bank Ltd. 1,211,893 4,667,151BOC BD Limited - 1,032,911Islami Bank Ban ladesh Ltd. 757,781 4,799,282Navana CNG Ltd. 17,923,420 -First Lease - 12,226,629Grameenphone Ltd. 6,053,665 858,721ICB 2nd NRB - 2,136,028Marico Bangladesh Ltd. - 2,037,043Prime Finance and Investment Ltd. - 8,925,259

Summit Alliance Port Ltd. 7,806,380 965,138Shahjalal Islami Bank Ltd. - 3,383,556Social Investment Bank Ltd. - 1,520,195Square Textiles Ltd 8,040,555 1,122,974Titas Gas Transmission 2,788,029 13,668,256Mutual Trust Bank Ltd. - 3,612,885South East Bank Ltd. 35,577,269 -Khulna Power Co. Ltd. 2,471,700 -Laferge Surma Cement 3,504,400 -Ocean Containers Ltd. 2,325,945 -RAK Ceramics Ltd. 2,184,864Peoples Leasing and Finance - 3,304,529


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2010 2009

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Un- quoted:

CDBL 2,000,000 2,000,000

Dhaka Stock Exchange Ltd 400,385 400,385

Venture Investment Partner Bangladesh Ltd. 18,000,000 18,000,000

Swift 991,199 991,199Dhaka Vegetable Oil Industries Ltd. 7,448,523 7,448,523

Chittagong Stock Exchange Ltd. 19,001,000 19,001,000

Summit Uttaranchal PCL 17,000,000 -

Summit Purbanchal PCL 25,500,000 -

Nccbl Mutual Fund-1 150,000,000 -

Summit Power Ltd 1,900,000

SEBL 1st Mutual Fund 10,000,000 -

MBL 1st Mutual Fund 10,000,000 -

Green Delta Mutual Fund 10,000,000 -

Dun & Bradstreet Rating Agency 4,165,900 4,165,900

276,407,007 52,007,007

514,498,115 410,369,085

9 Loans and Advances

Loans,Cash Credits,Overdrafts etc.(Note-9.01) 59,632,249,645 48,530,225,335

Bills Purchased and Discounted (Note-9.2) 3,597,891,983 1,857,457,868

63,230,141,628 50,387,683,203

9.1 Loans, Cash Credits, Overdrafts etc.

Inside Bangladesh:

Overdraft 11,690,527,439 9,281,392,979

Cash credit 9,710,795,572 6,844,353,324

Loan - general 6,285,091,051 4,625,642,530

Transport loan 399,830,254 160,863,146

House building loan 1,508,750,926 1,293,420,624

Loan against trust receipt 11,535,188,764 10,536,365,568

Loan against Imported Merchandise 64,152,677 60,715,274Loan against Investment 10,500 1,383,682

Loan against packing credit 164,860,309 133,650,362

Project loan 297,487,398 290,249,179

Demand loan 12,380,294 1,074,075

Lease Finance 964,245,222 715,200,830

Payment against document 2,104,825,226 1,635,966,926

Consumer Finance Scheme 1,333,336 2,195,660

Housing Loan under B.Bank Refinance Scheme 41,309,112 40,515,702

Loan Revolving 1,037 18,304,148

Staff Loan 518,377,438 433,530,073

Small Business Loan 810,803,851 738,273,947

House Renovation Loan 91,676,699 86,737,477

Personal Loan Scheme16,379,763 18,598,942

Term Loan (Small,Medium & Large) 10,726,234,410 9,357,273,705

Agri Credit 269,576,890 55,971,940

Festival Loan 73,869,925 66,859,105

Special Housing Loan 1,046,796,732 997,120,412

Credit Card 215,541,374 182,158,492

Forced Loan 538,085,843 816,501,632

Short Term Loan 534,572,412 135,442,948

Retail Loan 5,520,772 -

Education Loan Scheme 4,024,419 462,653

59,632,249,645 48,530,225,335Outside Bangladesh:


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2010 2009

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9.2 Bills Purchased and Discounted

Inside Bangladesh:

Inland bills purchased 2,310,763 8,436,965

Local documentary bills purchased 3,379,320,119 1,723,049,0213,381,630,882 1,731,485,986

Outside Bangladesh:

Foreign bills purchased 10 585

Foreign documentary bills purchased 216,261,091 125,971,297

216,261,101 125,971,882

3,597,891,983 1,857,457,868

63,230,141,628 50,387,683,203

9.3 Net Loans and Advances

Gross Loans and Advances 63,230,141,628 50,387,683,203

Less: Non-performing loans and advances 1,425,280,000 1,420,567,000

Interest suspense 265,448,405 230,367,473

1,690,728,405 1,650,934,47361,539,413,223 48,736,748,730

9.4

Repayable on demand 550,466,137 817,575,707

bills purchased and discounted

Residual maturity grouping of loans and advances

Up to one month 11,746,721,943 9,110,477,383

Over one month but not more than three months 13,704,166,666 11,698,030,122

Over three months but less than one year 21,673,219,120 15,918,021,338

Over one year but less than five years 9,646,426,492 8,275,919,019

Above five years 5,909,141,270 4,567,659,63463,230,141,628 50,387,683,203

9.5

In Bangladesh :

Loans 38,230,926,634 32,404,479,032

Cash credit 9,710,795,572 6,844,353,324

Overdraft 11,690,527,439 9,281,392,979

Bills Purchased & Discounted 3,381,630,882 1,731,485,986

63,013,880,527 50,261,711,321

Outside Bangladesh (Bills Purchased & Discounted) 216,261,101 125,971,88263,230,141,628 50,387,683,203

9.6

52,966,452 30,514,000

II) Advances to customers' group-wise clients

a) Import Financing 5,556,397,235 4,558,199,000

b) Export financing 3,779,699,125 4,680,058,000

c) House Building Loan 2,757,288,562 1,897,979,000

d) Consumers credit scheme 307,448,468 2,195,660

e) Small and Medium Enterprise (SME) 8,940,710,658 2,849,871,000

f) Special program loan 129,856,422 1,950,125,325

g) Staff Loans 518,377,437 433,530,073

h) Others 1,729,558,158 1,558,545,326

the following broad categories

including bills purchased and discounted classified into

Loans and advances on the basis of significant concentration

Loans and advances including bills purchased anddiscounted classified into the following broad categories

I) Advances to allied concerns of Directors of the Bank


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III) Industrial loans

a) Agriculture 525,903,854 374,685,000

b) Industry 25,844,987,354 21,081,494,000

c) Construction 1,117,858,587 1,486,073,000d) Transport and Communication 400,329,681 621,164,000

e) Storage 300,657,328 282,295,000

f) Business 11,053,962,349 7,827,794,000

g) Others 214,139,958 753,160,81939,457,839,111 32,426,665,819

63,230,141,628 50,387,683,203

9.7

6 8

8,714,500,000 7,441,100,000- -

Measures taken for recovery - -

Annexure 'D' may kindly be seen for details.

Number of clients with outstanding amount and classified

Loans and advances exceeding 10% of total capital of the

Bank.Number of the clients

Amount of classified advancesAmount of outstanding Advances

9.8 Loans and advances on the basis of geographical location wise

Urban

Dhaka Division 40,954,241,178 32,574,809,455

Chittagong Division 16,179,816,277 13,827,723,790

Rajshahi Division 1,153,358,695 980,523,684

Sylhet Division 618,250,060 470,123,568

Khulna Division 1,676,883,941 814,959,46060,582,550,151 48,668,139,957

Rural

Dhaka Division 749,305,306 456,610,936

Chittagong Division 927,209,872 542,007,285

Rajshahi Division 601,137,484 425,863,199

Sylhet Division 369,938,815 295,061,826

Khulna Division - -

2,647,591,477 1,719,543,246

63,230,141,628 50,387,683,203

9.9 Classification of Loans and advances

Unclassified Standard (including staff loans) 60,634,171,628 48,860,259,203

Unclassified Special Mention Account 1,170,690,000 106,857,000

Sub-standard 143,404,000 50,784,000

Doubtful 60,831,000 74,103,000

Bad/Loss 1,221,045,000 1,295,680,00063,230,141,628 50,387,683,203


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2010 2009

Taka Taka

9.10 Particulars of loans and advances

i) 51,895,056,119 43,708,090,983

ii) 7,137,073,880 5,009,197,240

iii) 4,198,011,629 1,670,394,980

iv) - -

63,230,141,628 50,387,683,203

* v) 518,377,438 433,530,073

vi)

52,966,452 30,514,000

Loans considered good in respect of which the bank is fully

secured.

Loans considered good and secured by the personal security of one

or more parties in addition to the personal security of the debtors.

Loans considered doubtful or bad not provided for.

Debts due by companies or firms in which the directors of the Bank

are interested as directors, partners or managing agent or in case

of private companies as members.

Loans considered good for which the bank holds no other security

than the debtor's personal security.

Debts due by directors or officers of the bank or any of them either

severally or jointly with any other persons.

vii)

518,377,438 433,530,073

viii)

52,966,452 30,514,000

ix) Due from banking companies - -

x) 1,425,280,000 1,420,567,000

a) Increase/(decrease) of provision (specific) during the year 22,578,000 (192,680,000)

* Amount represents loans to employees of the Bank only.

b) Amount of provision kept against the amount classified 703,841,000 666,479,000

as bad/loss at the Balance Sheet preparing date.

c) Amount of interest charged in interest suspense account 265,448,405 230,367,473

xi) Cumulative amount of written off debt

Opening balance as on 1 January 1,658,506,255 1,392,391,074

Add: Amount of debt written off during the year 426,699,758 266,115,181

Closing balance as on 31 December 2,085,206,013 1,658,506,255

xii) Amount of written off debt in 2010 against which law suit has

been filed for its recovery during the year 91,112,193 71,027,119

Maximum total amount of advances, including temporary advances,

granted during the year to the companies or firms in which the

directors of the bank are interested as directors, partners ormanaging agents or, in case of private companies as members.

Classified loans for which interest/profit not credited to income

Maximum total amount of advances, including temporary advances

made at any time during the year to directors or managers or

officers of the bank or any of them either severally or jointly with


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2010 2009

Taka Taka

9.11 Outstanding Bad & Loss Loans to be Written off

9.12 Bills purchased and discounted:

a) Payable:

In Bangladesh 3,381,630,882 1,731,485,986Outside Bangladesh 216,261,101 125,971,882

3,597,891,983 1,857,457,868

b) Bills purchased & discounted on the basis of the residualmaturity grouping

Payable:

Within one month 1,088,654,000 414,994,000

Over one month but less than three months 1,870,965,000 792,422,000

Over three months but less than six months 619,961,000 364,802,000

Bangladesh Bank issued a circular no.02 dated 13 January 2003 instructing all the banks in the country to write

off bad & loss loans which have passed five years after its classification and legal actions have been taken

against all those default borrowers with an immediate effect. In compliance with the circular, the Bank formed a

Debt Collection Unit in its Head Office from where monitoring has been made accordingly. During the year, the

Bank allowed write off amounting to Tk. 9,11,12,193 against which legal actions have been lying with the

money suit court. In this connection, branches have been maintaining separate ledger for all individual cases.

The debt collection unit will follow-up the realisation of such debts in future also and time to time a progress

report to be given to the management by the branches.

Over six months 18,311,983 285,239,868

3,597,891,983 1,857,457,868

10 Fixed assets including premises, furniture and fixtures

Cost/valuation

Land 413,139,440 363,792,577

Structure ( on land II) 414,335,133 192,398,501

Furniture and fixtures 236,983,642 197,239,809

Machinery and Equipment 388,912,606 295,342,856Vehicles 68,915,337 62,001,525

Total Cost / Valuation 1,522,286,158 1,110,775,268

Less: Accumulated depreciation 330,792,968 261,671,687

Net book value at the end of the year 1,191,493,190 849,103,581

Annexure 'A' may kindly be seen for details.

11 Other Assets

Stationery in hand 16,538,351 18,211,407

Stamps and stamped forms in hand 1,386,944 980,964

Security deposits 1,662,909 1,497,459

Advance against rent 88,740,104 58,482,625

Suspense account (Note 11.1 ) 82,735,210 62,556,696Commission receivable 2,350,000 6,655,170

Dividend receivable 1,017,660 -

Interest receivable ( Note 11.2 ) 229,539,391 217,946,728

Prepaid Expense(Soft ware) 18,441,288 22,057,268

Others ( Note 11.3 ) 704,016,029 275,294,659

Discount receivable 6,917,890 -

Prepaid interest ( on BCD & Other A/Cs ) 41,500 1,420,086

ATM Adjustment 162,217 162,217

Building Construction 153,320,691 90,765,499

Receivable from sale proceeds of Share 45,931,185 -


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2010 2009

Taka Taka

11.1 Suspense Account

Encashment Shanchaypatra awaiting realisation 35,055,088 20,270,302

DD cancelled 23,600 20,150

Cash Remittance 28,171,886 15,600,000DD paid without advice 6,516,705 7,382,052

Clearing adjustment 12,967,931 19,284,19282,735,210 62,556,696

11.2 Interest receivable :

On loans and advances - 505,190

On Treasury Bill/Bond 223,370,640 214,111,538

On bank balances/Financial Institutions 6,168,751 3,330,000

229,539,391 217,946,72811.3 Others

Advance against TA/DA 43,055 47,820

Legal expenses 236,109 334,230

Waiver of interest 4,404 4,404

Money Gram 29,622,649 27,397,231

Proposed Branches expenses 4,626,100 6,058,000

Prefunding to TMSS 19,177,949 19,321,340

Zenj Exchange 883,966 -

T.C. Buying 98,626 8,557

UAE Exchange 1,985,208 913,057

Sundry debtors 569,231,642 73,795,715

Foreign Remittance Payment Project - 2,566,135

Protested bill 2,245,789 1,896,984

Prefunding to Foreign Remittance 2,125,020 3,770,292

Xpress Money 8,159,443 6,498,751

Postage Stamp - 12,097Al-Fardan Exchange Co.L.L.C 11,775,203 13,497,094

Habib Quarter 2,006,103 3,169,965

Placid Express 2,674,163 3,638,504

Arab National Bank (KSA) 3,237,877 115,192

Advance against Salary - 14,425

Wall Street 411,000 336,110

First Solution U.K. 13,060 -

Kay Maks International 8,000 -

Majan Exchange 3,000

Three Star - 2,392,027

Federal Exchange - 56,100

Repo Adjustment account 38,563 -Advance for booking money agt.DSE Tower 850,000 600,000

Advance for Purchase of Bank Property 44,559,100 108,850,629

704,016,029 275,294,659

12 Borrowing from other Banks, Financial Institutions and agents

in Bangladesh

Bangladesh Bank 1,570,189,614 1,813,482,052

The Trust Bank Ltd 915,952 -

1,571,105,566 1,813,482,052


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2010 2009

Taka TakaOutside Bangladesh:ICICI Bank, Kolkata 31,171,190 5,197,150Standard Chartered Bank, London 379,250 -Mashreq Bank Kolkata 139,259,404 -Standard Chartered Bank, Kolkata 56,549,653 -

WACHOVIA NA 15,104,584Citi Bank NA 33,459,049 -HSBC Bank , New York - 4,017,730

275,923,130 9,214,8801,847,028,696 1,822,696,932

Annexure C may n y e seen or eta s.12.01 Security against borrowings from other banks, financial institutions and agents:

Secured 1,570,189,614 1,813,482,052

Unsecured 276,839,082 9,214,880

1,847,028,696 1,822,696,932

12.02

On demand 276,839,082 9,214,880

In not more than three months 40,459,366 62,917,842

In more than three months but not more than one year 155,972,593 141,305,251In more than one year but not more than five years 990,820,544 1,005,847,149

Above five Years 382,937,111 603,411,810

1,847,028,696 1,822,696,932

13 Deposits and other Accounts

Current deposits and other accounts

Borrowings from other banks, financial institutions and agents

(according to remaining maturity grouping) Payable :

Current deposits 4,967,282,085 2,873,725,411

Sundry deposits (note 13.4) 2,776,641,149 2,478,985,319

7,743,923,234 5,352,710,730Saving deposits 7,477,106,648 6,134,648,381

Fixed deposits 39,313,895,416 32,267,274,574

Term deposits

Short term deposits 3,322,195,044 2,631,867,774

Special savings scheme 5,312,740,230 3,844,508,283Special deposit scheme 1,109,703,942 699,361,257

Premium term deposits 151,042,003 434,708,260

Instant earning term deposits 900,000 12,100,000

Money Double Program 2,518,357,880 1,799,975,430

12,414,939,099 9,422,521,00413.1 Bills Payable:

Payment Order (issued) 922,749,305 624,132,789

Pay slip 2,988 3,652

Demand draft 88,628,087 61,270,505

1,011,380,380 685,406,946

Bearer Certificate of Deposits - 37,589,000

67,961,244,777 53,900,150,635

13.2 (a) Demand deposits

From other banks - -

Other than banks 9,428,243,212 6,590,236,030

9,428,243,212 6,590,236,030

13.2 (b) Other deposits:

From other banks

In Fixed Deposits Accounts:Sonali Bank Limited 500,000,000 -Bangladesh Development Bank Limited 70,000,000 -Eastern Bank Limited - 100,000,000

570,000,000 100,000,000

Other than banks 57,963,001,565 47,209,914,605


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2010 2009

Taka Taka13.3(a) Residual maturity grouping of Deposits:

From other Banks

Payable:On demand - -

- 100,000,000

In more than one month but less than six months 570,000,000 -In more than six months but less than one year - -

In more than one year but within five years - -

In more than five ears but within ten ears - -570,000,000 100,000,000

13.3 (b) From other than Banks

Payable:On demand 9,428,243,212 6,590,236,030

8,481,537,217 6,805,848,440

In more than one month but less than three months 14,636,233,461 12,025,864,004

In more than three months but less than one year 19,167,408,026 14,296,209,331

In more than one ear but within five ears 8,006,304,707 8,476,303,522

In more than five years but within ten years 7,671,518,154 5,605,689,30867,391,244,777 53,800,150,635

67,961,244,777 53,900,150,63513.4 Sundry Deposits

Sundry Creditors 118,844,583 120,199,838Clearing adjustment - 11,632,796Margin on letters of guarantee 514,121,302 369,291,487Margin on letters of credit 750,596,856 543,013,135Securit de osits a ainst locker 9 693 520 1 771 861

Within one month

Within one month

Foreign correspondents charge 111,987 122,126Credit balance in CC,SOD,Loan etc. 187,088,752 245,636,132Collection Account 15,625,037 27,582,308Sanchaypatras 6,013,625 17,180,875Money Gram 74,447,224 52,043,741LDBP, Export bill/ proceeds 658,033,249 578,102,508Security deposit Receipts 123,579,411 260,140,677U.A.E.Exchange 12,712,680 10,676,882Placid Express 1,619,548 11,568,174FC,FCY Retention Quota 52,218,326 24,797,593Cash Risk Allowance/Fund 44,462,120 27,340,266Majan Exchange 1,334,763 -Three Star Remittance 978,929 426,511Federal Exchange 7,138,134 5,991,776

Advance Rent on Lease Finance 19,591,378 16,999,855First Solution money transfer 2,816,003 3,209,747

Al-Fardan exchange Co.L.L.C. 6,046,049 12,666,631Habib Qatar 760,461 220,677K.M. Financial Services London 1,242,325 1,469,512

Arab National Bank (KSA) 106,460,770 105,626,325Wall Street Exchange 11,233,042 7,848,151Dhaka Janata Express 5,441,301 4,507,556

Visa Credit Card 406,268 621,310Foreign remittance 17,557,057 2,330,993Retained Comm.from Remittance 1,000,000 2,960,119Provident Fund 3,442,599 2,849,411Credit Card Deposit A/c. 2,694,309 1,025,623

Alt.Cash Assistance (34,525) 8,483,751Zenj Exchange 1,805,710 -Itau Unibanco.S.A 309,578 -National Exchange Co. 4,531,787 -IME(M) SDN.BHD 6,290,955 -

Al Zaman Exchange 5,324,322 -Others 1,101,714 646,972Unclaimed Block Account for 10 ears & above - -


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2010 2009

Taka Taka

14 Other Liabilities

Outstanding interest 1,050,474,409 1,074,410,023

Excise duty on loan 15,656,123 8,519,562

Excise duty on deposit 43,866,064 25,195,010

Special reserve of garments accounts 12,390,230 12,132,646Provisional for Expenses 2,558,886 3,805,290

Audit fee payable 150,000 120,000

Income tax deduction at source on interest 26,240,653 28,410,634

Advance tax deducted at source 1,073,164 1,379,771

Staff Income tax 692,853 363,772

Inter Branch Transaction Account 363,458,684 459,782,492

Stamp 22,224 30,928

Deduction of VAT on LC commission and Service Charge 15,718,121 12,874,106

Provision for loans and advances (Note 14.4 ) 1,483,115,000 1,229,896,000

Provision on Off balance sheet items (Note-14.5) 174,925,506 111,928,000

Interest Suspense (Note 14.7 ) 265,448,405 230,367,473

Provision for Other Assets ( Note 14.2) 13,872,632 18,348,000

Provision for Income tax ( Note 14.3) 672,855,396 361,807,683Provision for deferred tax liabilities ( Note 14.3.1) 67,216,207 237,216,207

Exchange Equalization Reserve ( Note 14.1) - 465,514

Reserve for Unforeseen loss 8,704,738 6,353,555

Provision for Gratuity (Note-14.9) 59,032,636 225,000,000

Contribution to NCC Bank Foundation (Note-14.8) 16,322,766 27,200,000

Provision for incentive Bonus 95,000,000 100,000,000

Provision for Benevolent Fund - 2,500,000

Adjusting A/c Credit - 2,088,323

4,388,794,697 4,180,194,989

14.1 Movement in Exchange Equalization Account

Opening Balance 465,514 465,514

Adjusted during the year (465,514) -Closing balance - 465,514

14.2 Provision for other Assets:

Opening Balance 18,348,000 3,372,202

Add: Provisions made during the year - 14,975,798Less: Provisions no longer required (4,475,368) -Closing balance 13,872,632 18,348,000

14.3 Provision for Income Tax:

Opening Balance 2,406,833,505 1,626,701,962

Add: provision made for current tax 1,057,110,305 754,282,799

Prior years tax 25,886,372 25,848,7441,082,996,677 780,131,543

3,489,830,182 2,406,833,505

Less: Adjusted during the year 2,332,754,562 -

Closing Balance 1,157,075,620 2,406,833,505

Advance tax at source on treasury bills/ bonds 112,009 287,785,856

Advance tax at source on bank interest & dividend 5,345,646 22,418,722

Advance income tax deposited by Bank 472,139,446 1,714,190,475

5% Advance income tax paid on L/C commission 6,623,123 20,630,769

484,220,224 2,045,025,822

Less: Advance income tax paid and deducted at source


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2010 2009

Taka Taka

14.3.1 Deferred tax liabilities

Balance as on 1 January 237,216,207 50,356,122

Add: provision made during the year - 186,860,085237,216,207 237,216,207

36,444,940 -

Less: adjusted during the year (206,444,940) -

67,216,207 237,216,207

14.4 Provision for Loans and Advances

a) Movement in specific provision on classified loans and advances

Opening balance 720,224,000 912,904,000Fully provided debt written off (378,883,352) (260,607,297)

Add: Recoveries of amounts previously written off 9,769,106 9,545,272

Net charged to Profit and Loss Account 391,692,246 58,382,025Provision held at the end of the period 742,802,000 720,224,000

b) Movement in general provision on unclassified loans and advances

Opening balance 509,672,000 456,065,000

230,641,000 53,607,000Add: Provision made for the year/net

Add: Provision for revaluation reserve on Lands

740,313,000 509,672,000

Total (a) + (b) 1,483,115,000 1,229,896,000

14.5 Provision on off-balance sheet items

Opening balance 111,928,000 109,409,276

62,997,506 2,518,724

174,925,506 111,928,00014.6 Provision for NOSTRO Accounts

Opening balance - -

- -- -

14.7 Interest suspense account

Opening balance 230,367,473 241,374,297

Add: Amount transferred during the year 213,675,197 94,242,982

Less: Amount recovered during the year (80,544,450) (64,945,410)

(98,049,815) (40,304,396)

Closing balance 265,448,405 230,367,473

14.8

Opening balance 27,200,000 10,000,00016,322,766 27,200,000

43,522,766 37,200,000

27,200,000 10,000,000

16,322,766 27,200,000

14.9

225,000,000 68,918,090

59,032,636 225,000,000

(225,000,000) (68,918,090)

59,032,636 225,000,000

Less: Adjusted/Transferred to STD account during the year

Add: Provision made during the year

Contribution to NCC Bank Foundation (NCCBF)

Add: Contribution during the year

Less : Adjusted / transferred during the year

Provision for Gratuity

charge in profit and loss account

Opening Balance

Closing Balance

Less: Amount written off during the year




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2010 2009

Taka Taka

15 Share Capital

15.1 Authorized Share Capital

1,000,000,000 ordinary shares @ of Tk. 10 each 10,000,000,000 5,000,000,000

15.2 Issued, Subscribed and Fully Paid-up Capital

39,000,000 Ordinary shares of Tk 10 each issued for cash 390,000,000 390,000,000

266,641,750 Ordinary shares of Tk 10 each issued as bonus 2,666,417,500 1,592,514,500

144,483,580 Ordinary shares of Tk 10 each issued as right share in Cash 1,444,835,800 302,385,7004,501,253,300 2,284,900,200

15.3 % of Shareholdings as on 31 December 2010

The Shareholders of the bank in its 7th Extra-Ordinary General Meeting (EGM) held on 30.08.2010 decided to

denomination of face value of shares to Tk.10 from Tk. 100 and after approval of Securities and Exchange

Commission, the new denominated share traded both in Dhaka Stock Exchange & Chittagong Stock Exchange

from November 15, 2010. The Bank has also increased its Authorised Share Capital from Tk.500.00 crore to

1000.00 crore as approved by the Shareholders in the same meeting.

450,125,330 Ordinary shares of Tk 10 each

Particulars No of share % of holdings

Local sponsors 187,351,900 41.62 1,873,519,000 1,059,929,600

Financial Institutions 69,779,200 15.50 697,792,000 484,877,700

Foreign Investors 1,509,140 0.34 15,091,400 6,956,100

Public issues 191,485,090 42.54 1,914,850,900 733,136,800

450,125,330 100.00 4,501,253,300 2,284,900,200

15.4 Range wise Shareholdings as on 31 December 2010

No. of Shares

62,165,663

17,066,110

13,860,756

6,747,600

4,007,850

4,275,430

13,140,230

13,429,716

8,921,525

8,370,030

6,822,200

33,947,780

213,055,240

44,315,200

450,125,330

Less than 5,000 75590

100,001 to 200,000

40,001 to 50,000

1.50

1.98

0.95

2.92

1.86

1.52

78

10,000,001 to 100,000,000 4

100.0079763

9.85

300,001 to 400,000

400,001 to 500,000

24

47.33

500,001 to 1,000,000 7.54

1,000,001 to 10,000,000

49

15

3.0895510,001 to 20,000

No. of share holders % of shares

Total

94 2.98

111

20,001 to 30,000

Range of holding of

13.81

50,001 to 100,000

200,001 to 300,000

3.79

0.89

37

22565,001 to 10,000

30,001 to 40,000

270

94

186


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2010 2009

Taka Taka

15.5 Capital Adequacy Ratio (CAR)

Total assets including Off-Balance sheet items 101,048,042,176 77,130,294,228

Total Risk Weighted Assets 91,929,600,000 46,652,000,000

Required Capital ( 9% of Risk Weighted Assets) 8,273,664,000 4,665,200,000

Actual Capital Held: 10,033,986,280 6,322,418,616Total Capital surplus/(deficit) 1,760,322,280 1,657,218,616

i) Core capital (Tier- i) (%) 8,880,386,166 5,366,257,297

Paid-up Capital 4,501,253,300 2,284,900,200

Statutory Reserve 2,543,463,417 1,893,817,316

General Reserve 7,162,348 67,162,348

Surplus in Profit & Loss Account 1,828,507,101 1,120,377,433

ii) Supplementary capital (Tier- ii) (%) 1,153,600,114 956,161,319

General provision on Unclassified Loan 740,313,000 509,672,000

General Provision for Off-balance sheet Exposures 174,925,506 111,928,000

Revaluation Reserve on Govt. Securities 115,279,015 192,790,742Assets Revaluation Reserve 123,082,593 141,305,063

Exchange Equalisation - 465,514

Total Capital surplus/(deficit)Capital Adequacy Ratio :

Held

11.50%

2.05%

13.55%Total

4.50%

Tier-I 4.50%

Tier-II

9.66%

1.25%

10.91%9.00%

HeldRequiredCapital requirement

15.6 Name of the Directors and their shareholdings as at 31 December 2010.

Sl. Status Position

31/12/2010 31/12/20091 Chairman 159,3482 Vice-Chairman 483 Director 298,889

4 Director 263,1515 Director 411,151

6 Director 189,554

7 Director 216,837

8 Director 38,025

9 Director -

10 Director 480,093

11 Director 86,997

12 Director -13 Director 56,256

14 Director 150,243

15 Director 19,200

16 Director 202,114


19 Director 214,140

20 Director 345,588

21 Director 104,027

22 Director 372,466


25 Director 614,441

6,308,982

Note: Denomination of share (i.e; face value) changed from Tk.100.00 to Tk.10.00 w.e.f November 15, 2010.

Mr. Ainul Kabir

2,359,780Mr. Khondkar Zakaria Mahmud

749,080

9,457,820

826,960

6,964,810

Mrs. Lutfun Nahar Begum

8,899,250

3,734,190

5,184,060

Mr.Md.Abul Bashar

Mr. Khairul Alam Chaklader

1,487,870

Mr. Din M.Rana

3,918,550Mr. Fakhrul Anwar

7,937,580

Mr. Md. Humayun Kabir

Alhaj Md. Nurun Newaz 7,058,060

127,782,340

12,104,480

4,620,130

11,238,650

Mr. Md. Moin Uddin

4,794,390

288,230

2,511,640

Mr. Mohammad Ali

Mr. Md. Shahjahan

Mr. Tofazzal Hossain10,785,370

Mr. Mostafizur Rahman

3,075,540

1,240,720

Mrs. Masuda Begum

Mrs. Sohela Hossain

Mr. S.M. Abu Mohsin

Mr.Abdus Salam

340,740

2,839,150

5,178,59010,186,700

Position

Mr. Mahbubul Alam Tara

Name of Directors

Mr.Md. Abdul Awal

Mr. Amjadul Ferdous Chowdhury

Mr. Yakub Ali

Mr. Nurul Islam

Mr. A.S.M Main Uddin Monem

Mr. Md. Harunnur Rashid


30/51

2010 2009

Taka Taka

16 Statutory Reserve

Opening Balance on 1 January 1,893,817,316 1,356,518,531

Addition during the year (20% of pre-tax profit) 649,646,101 537,298,785Closing Balance at 31 December 2,543,463,417 1,893,817,316

17 General Reserve

Opening Balance on 1 January 67,162,348 -

Addition during the year - 67,162,348

Less : Adjusted during the Year 60,000,000 -Closing Balance at 31 December 7,162,348 67,162,348

18 Other Reserve

18.1 Capital Reserve - Assets revaluation reserve 282,610,127 282,610,127

Less: provision for deferred tax 36,444,940 -

246,165,187 282,610,127

18.2 Revaluation reserve on Govt. securities (Treasury Bills & Bonds)-HTM

Opening balance 385,581,483 125,933,116

Add: addition during the year 35,930,464 336,722,807Held to Maturity (HTM ) 35,930,464 -

Held for trading (HFT) - 336,722,807

Less: adjusted during the year (190,953,917) (77,074,440)

Held to Maturity (HTM ) - (77,074,440)

Held for trading (HFT) (190,953,917) -

Closing balance 230,558,030 385,581,483

476,723,217 668,191,610

19

Retained earnings brought forward from previous year ( Note-19.1 ) 46,474,433 5,336,270

2,371,678,769 1,719,502,296

(649,646,101) (537,298,785)- (67,162,348)

60,000,000 -

1,828,507,101 1,120,377,433

19.1

1,120,377,433 532,620,870

(1,073,903,000) (527,284,600)

46,474,433 5,336,270

20 Contingent Liabilities :

20.1 5,404,953,559 3,596,232,028

20.2

Directors 2,573,000 2,573,000

Government 2,011,346,537 829,177,222

Banks and other financial institutions 14,353,711 3,070,400

Others 3,483,992,598 3,666,733,408

Total 5,512,265,846 4,501,554,030

Less: Margin - Note 13.4 514,121,302 369,291,487

Closing Balance

Transfer to Statutory Reserve

Transferred from General Reserve

Surplus in profit and Loss Account

Transferred to General Reserve

Opening balance

Retained earnings

Profit for the year

Issue of Bonus Share 2009 & 2008

Money for which the Bank is contingently

Acceptances and Endorsement

liable in respect of guarantees issued

Letter of Guarantee


31/51

2010 2009

Taka Taka

20.3 Letter of Credit issued

Documentary Credit and short-term trade-related transactions 7,832,081,986 4,003,613,216

Forward Assets purchased and forward deposits placed - -

Spot and forward foreign exchange rate contract - -

Other exchange contract - -

Total 7,832,081,986 4,003,613,216

Less: Margin - Note 13.4 750,596,856 543,013,1357,081,485,130 3,460,600,081

20.4 Bills for Collection 7,967,342 3,708,113

21 Interest Income

Interest on Loans and AdvancesLoan ( General) 649,340,935 567,516,110Loan against House Building 173,129,961 165,848,576Loan against Imported Merchandise 7,658,838 7,871,050Loan against Trust Receipts 1,458,779,618 1,522,090,611

Loan against Packing Credit 17,635,702 22,750,595Loan Revolving 343,498 -SOD against Financial Obligation 781,034,925 638,607,546SOD against Real Estate 5,943,442 4,256,374SOD against Import permit 11,533,256 11,400,507SOD General 532,742,454 450,646,431

Undrawn formal standby facilities, credit

SOD Export 33,134,612 32,942,139C.C. against pledge 29,885,476 42,435,992C.C. against hypothecation 958,249,847 810,128,699C.C. against Export 117,196 140,353Forced Loan 63,197,905 125,656,495Inland bill purchased 506,131 163,681Foreign bills purchased - 12,525

FDBP & Discounted 12,681,648 14,358,802Payment against documents 231,234,283 227,641,773Local documentary bills purchased 299,672,753 212,134,022Transport loan 31,044,509 14,970,713Project loan 40,464,528 40,628,751Demand loan 458,394 661,219Lease Finance 114,053,345 111,181,167Small Business Loan 106,568,807 97,362,245House Renovation Loan 14,450,510 13,330,345Personal Loans 2,731,883 3,431,619Consumers Finance Scheme 176,286 279,369Home improvement Loan 68,535 -Loan against Investment 2,816,832 914,918

Agri Credit 18,322,946 6,398,550

Festival Small Business Loan 12,325,007 14,009,190Festival Personal Loan 997 5,126Term Loan (Small,Med/Large) 1,043,368,184 1,068,703,251Special Housing Loan 132,224,492 140,408,533Housing Loan under Refinance Scheme 3,753,785 3,028,584Staff P.F Loan 11,937,027 10,324,512Staff House Building Loan 15,926,536 11,363,727Staff Car Loan 1,768,638 1,784,483Credit Card 32,283,633 29,605,663Car Loan Scheme 9,377,266 4,394,839Short Term Loan (STL) 43,585,242 4,388,784Education Loan Scheme 146,566 49,927


32/51

2010 2009

Taka Taka

Interest on balances with other banks and financial institutions

Fixed Deposits 30,971,445 28,167,813Short term Deposits 1,167,616 11,598

Nostro Accounts 5,115,759 4,398,962

Money at call & short notice 16,555,597 1,573,431Financial Institutions 8,398,057 19,787,818

3,125,626 1,270

65,334,100 53,940,892

6,970,010,528 6,487,768,688

22 Interest paid on deposits and borrowings

Savings deposits 227,123,790 185,378,889

Short term deposits 127,349,891 75,612,627Fixed deposits 3,132,198,306 3,731,625,918

Bearer certificate of deposits 1,026,880 3,555,479

Special savings scheme 443,912,734 300,125,515

Special deposit scheme 106,937,755 72,397,064

Discount 52,538 50,343

Borrowings from banks, financial institutions, etc. 96,499,054 156,005,305

REPO agreement with Bangladesh Bank 68,210,520 99,086,332

Wage Earners Welfare DPS 5,172,346 2,450,118

Interest on Treasury Bonds 15,364,998 116,222,636Penal Interest 50,000 73,208

Premium Term deposits 29,284,259 61,963,731

Discount on Bills Purchased

, , ,

Money Double Program 229,740,020 155,022,682

4,483,541,724 4,960,743,231

23 Interest from investments

Dividend on shares 7,739,088 2,688,223

Interest on Debentures - 248,627Interest on Treasury bills 99,715,597 100,837,120Interest on Treasury bonds - 4,541,095

Commission from National Prize Bond 102,000 232,000Income from sale of Shares 408,677,346 107,588,489Interest on Treasury Bond (HTM) 269,954,699 244,986,623Interest on Treasury Bond (HFT) 626,478,064 609,009,989Discount on Zero Coupon Bond 8,768,502 1,065,359Discount on Treasury bill/bond 203,519,671 -Others 2,280,538 -Interest on Repo 14,780,979 -

1,642,016,484 1,071,197,525

24 Commission, exchange and brokerage

Commission:Commission on bill purchased 7,601,754 2,821,486Commission on Remittances 21,325,822 19,134,317Commission on Letter of Guarantee 85,894,773 72,276,500Commission on Letter of Credit 163,349,269 152,230,354Commission on Pur./Sale-Share/Securities 1,007,405 781,769Commission on Sanchaypatra 1,183,980 88,629Commission on Back to Back LC. 45,560,602 34,617,236Letter of Credit Advising Commission & handling charge 9,786,066 9,582,958

Commission on Acceptance of BTB L/C 58,373,940 48,035,039Commission - Miscellaneous 11,151,851 16,462,086Commission on L/C Confirmation 1,341,621 5,311,396Underwriting Commission 8,055,815 18,200,714Commission on Instrument Cancellation 17,770 46,956

ATM POS Commission 141,369 -


33/51

2010 2009

Taka TakaExchange:

233,625,544 241,195,612

Brokerage 591,988,616 345,155,411

1,264,281,562 981,257,153

25 Other operating incomeRent Locker 1,210,932 972,838

Rent Godown 806,030 906,290

Postage recoveries 10,380,563 9,631,287

Telex, Telegram, Trunk call, Fax.Swift etc. recoveries 32,372,320 31,471,809

Incidental charge recoveries 12,524 -

Legal charge recoveries 688,564 177,788

Service charge 62,142,091 125,384,857

ATM Transaction Fees 4,435,914 2,955,318

Profit on sale of Fixed assets 4,374,486 2,321,724

Capital gain on sale of treasury bonds 32,320,952 566,037,758

Risk Fund 5,547,172 7,434,815

Account Maintenance Fees 54,483,771 -

Card fees 14,022,249 14,445,440Exchange Equalization Gain 465,514 -

Miscellaneous earnings 51,469,812 27,149,118

Application and processing fees 6,951,233 3,920,371

281,684,127 792,809,413

26 Salary & allowances

Exchange gain net off exchange losses

Basic Salary 381,333,522 306,921,516

House rent allowance 135,405,245 114,427,267

Allowances ( Note 26.a) ) 125,413,083 88,580,578

Bank's contribution to Provident fund 32,334,626 26,145,592

Bonus 82,091,620 159,622,295

Honorarium 1,123,304 687,094

757,701,400 696,384,342

26(a) AllowancesEntertainment Allowance 30,023,275 18,538,974

Medical allowance 60,372,555 40,151,829

Washing allowance 885,547 861,435

Evening Banking 421,484 384,100

Casual Wages 12,663,948 11,370,302

Other allowance 21,046,274 17,273,938

125,413,083 88,580,578

27 Rent,taxes,insurance,electricity etc.

Rent :

Office 80,626,993 59,163,445

Godown/Garage 693,958 403,000Clearing House 38,641 36,885

81,359,592 59,603,330Rates and Taxes:

Rates 623,478 464,530

Taxes 2,977,788 1,736,529

3,601,266 2,201,059Insurance:

Cash 3,545,648 2,933,350

Vehicles 1,148,910 1,073,824Deposits 30,364,956 25,066,461

Godown Insurance 264,066 -

35,323,580 29,073,635


34/51

2010 2009

Taka TakaElectricity :

Electricity - office 19,901,140 17,305,914

Electricity - residence 986,890 736,019

20,888,030 18,041,933

141,172,468 108,919,95728 Legal Expenses

Legal charge 3,645,085 2,645,410Stamp charge 112,608 304,097Consultancy fee 70,505 87,000Credit Rating Fee 400,000 200,000

4,228,198 3,236,507

29 Postage,stamp and telecommunication

Postage 9,329,852 8,479,027

Telex/Swift/Internet 9,451,671 9,490,888

Telephone -Office 5,836,738 5,859,310

Telephone -Residence 2,465,860 2,255,096

27,084,121 26,084,321

30 Stationery,printing,advertisement etc.

Printing and stationery:

Printed stationery 13,689,168 9,151,243

Security stationery 9,326,302 2,189,919

, , , ,

35,305,090 21,256,385

Publicity and advertisement 33,303,511 16,124,669

68,608,601 37,381,054

31 Managing Director's Salary & allowances

3,555,000 3,210,000

Festival Bonus 600,000 540,000

Incentive Bonus 1,000,000 -Entertainment allowance 213,750 195,750

Medical allowance 427,500 391,500

House Rent allowance 892,500 832,500

6,688,750 5,169,750

32 Director's Fees

2,406,000 1,840,000

33 Audit Fees 150,000 200,000

34 Repairs,maintenance and depreciation

Repairs & Maintenance:

Repairs & Maintenance of Fixed assets 74,314,545 66,898,310

Renovation & Maintenance of Premises 59,814,925 33,099,931

134,129,470 99,998,241

Depreciation: (Annexure 'A')

Furniture and fixtures 17,280,495 15,129,459

Machinery and Equipment 45,592,887 33,932,461

Vehicles 10,752,419 9,459,990

Property 6,035,508 4,182,16479,661,309 62,704,074

Basic Salary

For attending the meeting of the Board / Executive Committee/

Audit Committee etc. @ Tk 5,000 per attendance per person


35/51

2010 2009

Taka Taka35 Other expenses

Entertainment 18,232,496 15,163,299Car expenses 30,171,430 26,860,299Paper and periodicals 1,165,022 1,631,988Trade Subscription 17,553,826 10,829,483

Traveling & Conveyance 48,206,974 31,175,603Cartage & Freight 194,555 144,461Liveries and Uniform 975,713 884,393Water sewerage and gas 3,826,920 3,198,397Medical charges 177,005 78,913Laundry and cleaning 762,765 481,540Photography 162,336 86,709Training expenses 1,627,316 1,966,805Business promotion 14,407,640 12,693,346Donation 8,214,530 4,071,970Right Share offering Expenses 1,230,240 -Utility Charges 12,557,420 6,077,553Traveling and Haltage ( Directors ) 1,803,522 2,839,757Refreshment and dinner ( Directors ) 1,287,768 631,741Revaluation Reserve on BGTB/T.Bill (HFT) 117,543,492 40,102,134

Welfare and Recreation 3,072,481 3,466,273Other Bank Charge 2,352,601 1,711,441CDBL Charge 35,255,967 17,449,974Miscellaneous expenses 1,881,716 1,388,199Credit Card Service Charge 5,925,240 4,675,540Sale Commission 19,326,324 2,565,966Su erannuation Fund 4,500,020 2,500,000

352,415,319 192,675,78436 Cash received from other operating activities

Other operating income 277,309,641 790,719,689Exchange earning 233,625,544 241,195,612

510,935,185 1,031,915,30137 Cash paid for other operating activities

Expenses for the year 531,732,521 347,435,799Add: Opening accrued expenses 3,925,290 3,967,769

Less: Closing accrued expenses 2,708,886 3,925,290532,948,925 347,478,278

38 Increase/(decrease) of other assetsClosing other assets:

Stationery in hand 16,538,351 18,211,407Stamps and stamped forms in hand 1,386,944 980,964

Advance deposit 1,662,909 1,497,459Advance against rent 88,740,104 58,482,625Suspense account 82,735,210 62,556,696Prepaid Expenses (Software) 18,441,288 22,057,268Others 931,591,963 388,027,076

1,141,096,769 551,813,495Opening other assets:

Stationery in hand 18,211,407 10,449,858Stamps and stamped forms in hand 980,964 733,617

Advance deposit 1,497,459 1,419,569Advance against rent 58,482,625 56,049,504Suspense account 62,556,696 50,287,138

Adjusting A/C debit - 71,000Prepaid Expenses (Software) 22,057,268 23,074,869Others 388,027,076 216,462,115Income Tax paid during the year 771,948,964 870,989,660

Increase/(decrease) for the year 1,323,762,459 1,229,537,330182,665,690 677,723,835

39 Increase/(decrease) of other liabilitiesClosing other liabilities

Interest Suspense 265,448,405 2

Documents

Yearly Notes 2011