Bangladesh Commerce Bank Limited

Bangladesh Commerce Bank Limited (BCBL) a private sector commercial bank and incorporated in Bangladesh on 1 June 1998 under the Banking Company Act, 1994. It started banking operations on 16 September 1999 with an authorised and paid up capital of Tk. 2,000 million and Tk. 920 million respectively. The share of the government of Bangladesh in the bank's paid up capital is Tk. 300 million while depositors of the former Bangladesh Commerce and Investment Limited (BCIL) contributed Tk. 520 million. The balance of Tk. 100 million is to be subscribed by banks and financial institutions under guidance and supervision by bangladesh bank.

Table Basic facts and economic indicators (in million Taka).

Indicators	2004	2005	2006	2007	2008	2009
Authorised capital	2000	2000	2000	2000	2000	2000
Paid up capital	920	920	920	920	920	920
Reserved Fund	79	102	108	102	102	189
Deposits	4282	4230	4659	5679	6786	7604
(a) Call Deposits	1355	1350	1491	843	1125	1336
(b) Term Deposits	2927	2880	3168	4836	5661	6268
Loans and Advance	4136	3992	4670	5010	5786	6256
Investment	260	329	425	508	656	710
Total Asset	5613	5730	6271	7250	8521	9420
Total income	212	239	578	939	1237	1536
Total Expenditure	128	123	479	968	1205	1248
Foreign Currency Trading	8901	7193	3350	3640	34109	45774
(a) Export	2343	1750	1250	899	9793	10212
(b) Import	4806	3600	1175	2552	22768	35137
(c) Remittance	1752	1843	925	189	1548	125
Total Manpower:	447	425	449	433	427	454
Officers	254	256	275	262	252	260
Staff	193	169	174	171	175	194
Correspondents Banks	9	9	9	9	6	6
Total Branches (in numbers)	25	25	25	25	25	25
(a) Domestic	25	25	25	25	25	25
(b) Overseas	-	-	-	-	-	-
Agriculture Credit:
(a) Loan Disbursed	-	-	-	83	177	7
(b) Realised	-	-	-	2	44	86
Industrial Credit:
(a) Loan disbursed	425	350	450	729	992	1046
(b) Realised	50	360	91	155	931	563
Loan Outstanding by Sector
(a) Agriculture and Fisheries	-	-	-	81	245	158
(b) Industry	-	270	1271	1044	783	779
(c) Trade and Commerce	2929	2412	1848	1571	2954	3299
(d) Poverty Reduction	5	1	1	3	-	-

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.

The former Bangladesh Commerce and Investment Limited was set up on 27 January 1986 as a non-bank financial institution. 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 organise 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.

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

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 reorganised to provide training to its employees in modern banking services. [S M Mahfuzur Rahman]