Bangladesh Development Bank Limited

Bangladesh Development Bank Limited (BDBL) a state-owned commercial Bank, has unveiled its appearence in the banking arena through amalgamation of Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangstha (BSRS), with the decision of the Government of the Bangladesh. It has duly been registered with the Registrar of joint Stock Companies and Firms. The Registrar of joint Stock Companies and Firms issued Certificate of Incorporation and Certificate and Bangladesh Bank issued licence and permission as well for commencement of BDBL business in November, 2009. The Vendors’ Agreement (relating to taking over of assets and liabilities of BSB and BSRS) was signed on 31-12-2009 between the Government and the Board of Directors of BDBL nominated by the Government. The BDBL has formally embarked on 3 January, 2010 with new vision, mission and values. The Bank will operate Development Banking activities and all types of domestic and international Commercial Banking activities under the rules and regulations of Banking Companies Act, 1991. Authorized Capital of BDBL is BDT 10.00 billion and paid up capital is BDT 4.00 billion, which is fully subscribed by the Government of Bangladesh.

As a merger of Bangladesh Shilpa Rin Sangstha ( BSRS) and Bangladesh Shilpa Bank (BSB) the BDBL is committed to emerge as the country’s prime Financial Institution for supporting private sector industrial and other projects of great significance to the country’s economic development and also be an active participant in commercial banking by introducing new lines of product and providing excellent services to the customers. Bangladesh Development Bank Limited, will act a development financial institution, to provide financial and technical assistance to private and public sector industries, and partnership and proprietorship concerns. It will offer long and medium term loans; working capital loans to industrial units; equity support services; and commercial banking services, such as deposit mobilization, forex business, letter of credit handling, and forex remittances, as well as issues guarantees on behalf of borrowers for repayment of loans. The company also provides industrial credit programs, equity entrepreneurship fund programs, share-trading services, incentive programs for loan recovery, rehabilitation programs, and deposit mobilization programs for lending and investment.

Table Basic facts and economic indicators (In Million Taka).

Indicators	2018	2019	2020
Authorized Capital	10000	10000	10000
Paid up Capital	4000	4000	4000
Reserved Fund	15102	19336	19037
Deposits	28312	27645	24219
a) Call Deposits	1985	2286	2268
b) Term Deposits	26327	25359	21951
Loans and Advance	19307	19984	21289
Investment	9814	9720	9404
Total Asset	59191	58505	55366
Total Income	2488	1483	1301
Total Expenditure	1315	1075	1185
Foreign Currency Trading	2888.8	3344.6	3466.4
a) Export	1472.8	2346	2092
b) Import	1406	997	1373
c) Remittance	10	1.6	1.4
Total manpower	772	753	748
a) Officers	622	611	617
b) Staff	150	142	131
Correspondent Banks	50	50	85
Total Branches (in numbers)	44	46	47
a) Domestic	44	46	47
b) Overseas	0	0	0
Agriculture Credit
Loan Disbursed	35.4	153.9	187.2
Realised	172.2	198.1	197.6
Industrial Credit
Loan Disbursed	905.5	3606.5	2182.5
Realsied	2413	2776.5	1745.8
Loan Outstanding by Sector
Agriculture and Fisheries and Forestry	4258.9	4408.1	3578
Industry	5432.2	5622.5	5371.9
Trade and Commerce	3766.5	3898.4	2189.4
Poverty Reduction	0	0	0
CSR	0	0.3	0.8

Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Barshik Protibedon [Annual Report on Banks and Financial Institutions], 2019-20 and 2020-21.

BDBL's strategic priorities have been set up to (a) Invest in Eco– friendly industries that help mitigate environmental degradation by lending more for renewable energy, and effluent treatment plants and other projects that employ energy efficient low-emission technologies including agro-based industries, small power projects, ICT, transport and infrastructure projects (b) Select and invest industrial projects where locational advantages like local availability of raw materials, good infrastructural facilities (road communication, transport facilities, etc.) and utilities (power, gas, water, etc.) shall be available (c) Limit project loan to Tk. 15 crore maximum and Tk. 2 crore minimum (for large projects). Arrange and participate in syndicated loan for projects above Tk. 15 crore. (d) Identify prospective and potential entrepreneurs and investors/clients and motivate, guide and help them select profitable industrial venture for investment. To this end BDBL has formulated a Five-Year Business/Strategic Plan (2015-2020) aiming to give an impetus to the economic and social activities of the country. BDBL's priority areas of investment are include- Term Loan, Mid Term and Short-Term Financing, SME Financing, Foreign Exchange Business, Capital Market Operation. [Muhammad Abdul Mazid]