ONE Bank Limited

ONE Bank Limited (OBL) was incorporated in May, 1999 with the Registrar of Joint Stock Companies under the Companies Act 1994, as a commercial bank in the private sector. The head office of the bank is at Dhaka. An 11-member board of directors including the chairman and a vice-chairman governs the overall affairs of the bank. The managing director is its chief executive. In 2009 it had 1039 employees and 39 branches, all in urban areas. Bank';s due attention is given in respect of risk undertaking, risk hedging and if not appropriately hedged, reflection of the same in pricing. In the financing side, the bank';s major concentration is in trade finance covering about 20.88% of total financing. The bank';s financing concentrates in both, working capital finance and long-term finance. ONE Bank Limited (OBL) has major concentration of financing in medium and large industries. Since the short-term finance carries low risk compared to long-term finance, the financing strategy of OBL assists the bank to keep the risk at minimal. While financing the industrial sector, the major concentration of the bank appeared to be in the textile and RMG sector; both the above sectors cover 30.89% of the total portfolio. The OBL is also involved in cement construction and transport sector financing.

Basic facts and economic indicators (in million Taka)

Indicators	2004	2005	2006	2007	2008	2009
Authorised capital	1200	1200	1200	1200	4150	4150
Paid up capital	690	807	888	1039	1299	1558
Reserved Fund	176	168	381	527	676	914
Deposits	10915	18088	20254	24484	27866	39365
(a) Call Deposits	1738	2487	2758	3822	3995	5755
(b) Term Deposits	9177	15601	17496	20662	23866	33610
Loans and Advance	8759	15313	15682	19646	21464	31465
Investment	1229	2165	3321	3587	3715	6789
Total Asset	13420	20105	23143	27475	31744	45163
Total income	1433	2007	1886	3587	4293	5824
Total Expenditure	932	1520	2211	2658	3186	4145
Foreign Currency Trading	23750	32018	40614	47464	59443	60573
a) Export	6974	11916	16360	19413	25214	25561
b) Import	15255	17435	21601	25133	27844	34440
c) Remittance	1521	2667	2653	2918	6385	572
Total Manpower	300	386	580	782	859	1039
a) Officers	276	354	531	719	792	939
b) Staff	24	32	49	63	67	100
Correspondent Banks	258	252	270	280	285	300
Total Branches (in numbers)	15	18	23	30	32	39
a) Domestic	15	18	23	30	32	39
b) Overseas	-	-	-	-	-	-
Agricultural Credit
a) Loan Disbursed	90	1479	6131	156	106	296
b) Realised	73	1620	5981	72	17	44
Industrial Credit
a) Loan Disbursed	7350	11636	13521	24219	26307	32220
b) Realsied	4860	10808	12632	21494	24311	29031
Loan Outstanding by Sector
a) Agriculture and Fisheries	106	298	443	76	134	433
b) Industry	929	2412	2928	4345	5008	6280
c) Trade and Commerce	1623	3875	3525	4568	3999	6581
d) Poverty Reduction	-	-	-	-	-	-

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 2009-10.

In the investment portfolio, OBL have substantial investment in quoted and non-quoted shares of different organisation including some very prospective financial institutions. The bank has shown its acumen in reducing its exposure from ship scrapping sector, steel re-rolling where the bank had investment earlier. With the increase in exposure to RMG, the bank has increased its non-funded business income substantially.

Credit Rating Information and Services Limited (CRISL) assigned long term A-1 and short term ST-2 rating to the bank on the basis of its good operating efficiency and strong liquidity in 2008. The OBL has taken initiative to launch ATM facilities and E-banking. [Muhammad Abdul Mazid]