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

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] [Mazid, Muhammad Abdul former Secretary, Government of Bangladesh]