Bangladesh Commerce Bank Limited

Bangladesh Commerce Bank Limited (BCBL) a private sector commercial bank incorporated in Bangladesh on 1 June 1998 under the Banking Company Act, 1994. It started banking operations on 16 September 1999 with an authorized and paid-up capital of Tk. 2,000 million and Tk. 920 million respectively. In 2019, the authorized capital of the bank was BDT 10,000 million and its paid-up capital was BDT 1,989 million. The ownership composition of the bank in 2019 has been government owned corporate bodies – 5.15%, the state-owned banks (Sonali, Janata and Agrani) – 11.32%, the government of the People’s Republic of Bangladesh – 33.94% and depositors and other private shareholders – 49.59%.

The former Bangladesh Commerce and Investment Limited was set up on 27 January 1986 as a non bank financial institutions. It continued its business till April 1992. Consequent upon its liquidity crisis, Bangladesh Bank suspended its operations in April 1992. As a result, the investors of the company suffered a lot and its employees became jobless. Both the depositors and the jobless employees launched a movement for reopening the company in some form or other and demanded return of their money and dues. With a view to safeguarding the interest of the depositors, employees and the general public, and to protecting the BANKING SYSTEM itself from contagious effects of bank failures, the government of Bangladesh established the Bangladesh Commerce Bank on the ashes of the collapsed BCIL.

Subsequently, the government on 8 February 1998 constituted a 10-member board of directors to organize and transform BCIL into BCBL and to administer the affairs of the bank. The 24 branches of BCIL were reopened as full-fledged branches of BCBL. The broad objective of the bank is to carry out all kinds of commercial banking activities and to respond quickly to the changing demands for modern banking products.

Table Bangladesh Commerce Bank Ltd. Basic facts and indicators (figures are in million Taka)

Indicators	2004	2009	2015	2019
Authorized capital	2000	2000	10,000	10,000
Paid up capital	920	920	1,989	1,989
Deposits	4282	7604	24,208	34,039
Loans and Advance	4136	6256	16,059	22,476
Investment	260	710	4,106	5,527
Total Asset	5613	9420	30,050	39,550
Foreign Currency Trading	8901	45774	6123	9329
a) Export	2343	10212	2,302	2,542
b) Import	4806	35137	2,843	3,698
c) Remittance	1752	125	978	2,089
Total Manpower:	447	454	815	1101
Total Branches (in numbers)	25	25	48	67

Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Bank o Arthik Prothisthan Samuher Karjaboli; Annual Report on Banks and Financial Institutions, 2004-05 to 2010; Annual Report (2019) of Bangladesh Commerce Bank Ltd.

To augment its deposit collection further, BCBL introduced a number of deposit schemes suited to the needs of all classes of people in society. Major schemes are: Monthly Profit Based Deposit Scheme; Pension Saving Scheme; Interest Free Deposit and Loan Scheme; Consumers' Credit Scheme; and Money Plantation against Saving Certificates.

The bank’s performance however did not improve and it is struggling with its non-performing loans (Tk 11,325 million, poor earnings per share (– 64.86 Taka) and operating loss per share (31.44 taka) in 2019.

A 9-member board of directors appointed by the government manages the bank. Managing director is the chief executive of the bank. At present total of 454 officers and other staff work in the head office and the 25 branches of the bank. It has inherited a training institute from BCIL. This institute is being reorganized to provide training to its employees in modern banking services. [S M Mahfuzur Rahman]