Pubali Bank Limited
Pubali Bank Limited largest commercial bank in private sector in Bangladesh. 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 nationalized under Bangladesh Bank’s (nationalization) Ordinance 1971 and was renamed as Pubali Bank. As per Bangladesh Bank’s (nationalization Amendment Ordinance 1983, the bank was denationalized 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 Limited 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.
The pubali bank takes an initiative to alleviation poverty, unemployment and backwardness rate in socio-economic 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 mobilization, 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 357 foreign banks and different international financial institutions. Investments of the bank on 31 December in 2019 stood at Tk 147,906 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.
Pubali Bank Ltd takes different programs 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 357 representative institutions and Western Union Bank. The bank is rendering swiftly such money through its 482 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.
Basic Facts and Economic Indicators (In Million Taka)
| Indicators | 2018 | 2019 | 2020 |
| Authorized Capital | 20000 | 20000 | 20000 |
| Paid up Capital | 9983.4 | 10282.9 | 10282.2 |
| Reserved Fund | 17393.7 | 18528.6 | 28905.1 |
| Deposits | 308899.8 | 359418.9 | 429343 |
| a) Call Deposits | 56513 | 63047 | 73384.3 |
| b) Term Deposits | 252386.8 | 296371.6 | 355958.7 |
| Loans and Advances | 270909.5 | 287034.7 | 315578.9 |
| Investment | 57660.2 | 100603.9 | 147906 |
| Total Asset | 409744.1 | 473467.7 | 565032 |
| Total Income | 32225.7 | 36313 | 38175.9 |
| Total Expenditure | 23368 | 27153.3 | 29164.8 |
| Foreign Currency Trading | 308272.8 | 319094.8 | 303693 |
| a) Export | 104835.1 | 100381.5 | 87340 |
| b) Import | 155713.7 | 156984.3 | 164240 |
| c) Remittance | 47724 | 61729 | 52113 |
| Total manpower | 7587 | 8153 | 8118 |
| a) Officers | 5507 | 6146 | 6139 |
| b) Staff | 2080 | 2007 | 1979 |
| Correspondent Banks | 347 | 339 | 357 |
| Total Branches (in numbers) | 473 | 482 | 482 |
| a) Domestic | 473 | 482 | 482 |
| b) Overseas | 0 | 0 | 0 |
| Agriculture Credit | |||
| Loan Disbursed | 2118.6 | 3972.4 | 3291.4 |
| Realised | 777 | 3930.3 | 4417.2 |
| Industrial Credit | |||
| Loan Disbursed | 49564.6 | 48402.1 | 45332.5 |
| Realsied | 32572.4 | 43044.1 | 33648.2 |
| Loan Outstanding by Sector | |||
| Agriculture and Fisheries and Forestry | 4951.6 | 5031.6 | 6078.9 |
| Industry | 35565.4 | 45251.4 | 57982.3 |
| Trade and Commerce | 84324.1 | 90420.7 | 96738.8 |
| Poverty Reduction | 218.5 | 43.3 | 56.7 |
| CSR | 91.4 | 73.4 | 241.6 |
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.
The management of the bank is vested in a 17-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.
In 2019, bank deposits accounted for 2.8 per cent of total banking sector deposits and loans and advances accounted for 2.6per cent of total banking sector loans and advances. The average interest rate differential between June 2019 based deposits and loans and advances was 4.3 percent. [Muhammad Abdul Mazid]
