Pubali Bank Limited

Pubali Bank Limited is the largest commercial bank in private sector. It is the successor of the former Eastern Mercantile Bank Limited incorporated in 1959 under the Companies Act 1913. After the independence of Bangladesh in 1971, Eastern Mercantile Bank Ltd was nationalised under Bangladesh Bank's (nationalisation) Ordinance 1971 and was renamed as Pubali Bank. As per Bangladesh Bank's (nationalisation) Amendment Ordinance 1983, the bank was denationalised on 30 June 1983 and giving its original name Pubali Bank Limited. The government of Bangladesh handed over all assets and liabilities of Pubali Bank to Pubali Bank Limited. Since then Pubali Bank Limted has been involved in commercial banking services as the largest bank in the private sector of Bangladesh. The bank is registered and enlisted at dhaka stock exchange and chittagong stock exchange.

Basic facts and economic indicators (in million Taka)
Indicators	2004	2005	2006	2007	2008	2009
Authorised capital	5000	5000	5000	5000	5000	5000
Paid up capital	200	400	1200	2100	2940	3822
Reserved Fund	2108	2481	3328	3663	4607	5687
Deposits	39789	44503	48676	57987	73016	88466
(a) Call Deposits	10113	13159	15408	17966	22389	27432
(b) Term Deposits	29676	31344	33268	40020	50627	61034
Loans and Advance	27543	32640	40387	50530	61788	74204
Investment	5742	5537	4982	5557	8376	12169
Total Asset	46593	52671	58401	71561	89885	107580
Total income	3455	4436	5494	7088	9009	10664
Total Expenditure	2830	3063	3684	4336	5563	6824
Foreign Currency Trading	43448	56615	70957	92343	110995	120484
a) Export	13670	15721	17702	19908	24796	24740
b) Import	18024	26034	37317	48345	58009	60494
c) Remittance	11754	14860	15938	24090	28190	35250
Total Manpower	4797	5088	5141	5270	5321	5115
a) Officers	3050	3319	3474	3633	3703	3554
b) Staff	1747	1769	1667	1637	1618	1561
Correspondents Banks	435	-	-	367	368	270
Total Branches (in numbers)	350	350	365	361	371	386
a) Domestic	350	350	356	361	371	386
b) Overseas	-	-	-	-	-	-
Agriculture Credit
Loan Disbursed	-	-	-	-	4	5
Realised	176	8	8	8	2	2
Industrial Credit
Loan Disbursed	2625	7632	11174	9159	23806	27052
Realsied	1198	4253	8136	3471	6514	7402
Loan Outstanding by Sector
a) Agriculture and Fisheries	8	204	246	221	232	279
b) Industry	2382	3875	6640	7336	5934	7126
c) Trade and Commerce	15299	13946	19532	26029	31838	38236
d) Poverty Reduction	111	51	51	126	154	-

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.

The pubali bank takes an initiative to alleviation poverty, unemployment and backwardness rate in socio-economical sectors giving assistance to agriculture and large, medium and small-scale industries entrepreneurs'. Moreover, the bank also promotes financing of infrastructure and industry establishments. The bank is offering incentive to generate new industrial entrepreneurs'. Pubali bank also plays a creative role to improve health sector.

The main functions of the bank include deposit mobilisation, financing productive activities, conducting foreign exchange business and providing various types of banking services to its customers. The lending were mostly in jute, textile, readymade garments and other large, medium and small scale industries, transport, housing, small and medium enterprise financing, rural and agricultural credit, working capital financing, micro credit, credit to trade and commerce and export-import financing. The bank established correspondent relationships with 368 foreign banks and different international financial institutions. Investments of the bank on 3 December in 1999 stood at Tk 3,318 million in government securities, income tax bond, treasury bills, loans to government, national investment bond, bridge financing, shares and debentures of companies and national prize bonds. The bank earned net profits after taxes but before adjusting provision requirements in all years from 1984, except 1990 and 1991.

Pubali Bank Ltd takes different programmes to develop economy including foreign currency income. To avoid difficulties and disquieting situations in sending remittances of Bangladeshi expatriate people and to reach their money to their relatives, the Pubali Bank has set up a network with 57 representative institutions and Western Union Bank. The bank is rendering swiftly such money through its 386 branches network all over the country. Moreover, SWIFT division of the bank is connected with 100 banks over the world. The bank offers a project named Non-resident Credit Scheme to the expatriate wage earners. Under this programme, the people who want to go abroad as an employee can receive loan in easy terms from this bank.

The management of the bank is vested in a 14-member board of directors with the managing directors as its chief executive. Besides, the three high officers include managing director and CEO, deputy managing director, general manager and consultant. At present, there are four hundred branches in different district of Bangladesh. The growth of annual profit of the bank was on average more than 25% in last five years. Pubali Bank achieved DUBLE in Credit Rating based on the review of audited financial report in 2009 conducted by Credit Rating Agency of Bangladesh. The Credit Rating Agency declared as DUBLE A 3 to the pubali bank in long-term business and ST 1 in short term transaction sector. It means that the capability of the bank in paying off financial liabilities is high and able to faces whatever catastrophes. In 2008, the bank also attained Credit Rating A. Pubali Bank Limited got Daily Star DHL 2010 reward as the best-unbeaten bank for the performance of previous year. [Muhammad Abdul Mazid]