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BASIC Bank Limited


BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Companies Act 1913 on the 2nd of August, 1988, started its operations from the 21st of January, 1989. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs). At the outset, the Bank started with Taka 800 million paid up capital as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being nonfunctional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the bank on 4th June 1992. Thus the Bank is state-owned. However, the Bank is not nationalised; it operates like a private bank as before and it is popularly known as a private bank of the public sector.

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 675 810 945 1247 1310 1455
Reserved Fund 757 936 1270 1349 1681 2455
Deposits 15509 22326 23829 31948 38039 34502
a) Call Deposits 2525 2864 5872 3238 3500 2951
b) Term Deposits 12984 19462 17957 28710 34539 31551
Loans and Advance 12000 15339 19000 22263 27269 29262
Investment 2253 4541 3279 5303 5694 6339
Total Asset 19437 27136 29388 38774 46660 45685
Total Income 1769 2229 2870 3550 5060 5162
Total Expenditure 1085 1355 1700 2459 3526 3486
Foreign Currency Trading 18657 23333 34192 39064 49670 54449
a) Export 7071 8544 15464 16795 21871 19888
b) Import 11586 13930 17804 21267 27354 33977
c) Remittance 577 859 924 1002* 445 584
Total Manpower: 347 601 651 724 735 759
a) Officers 230 307 523 554 597 582
b) Staff 18 294 128 170 138 177
Correspondents Banks 27 22 22 22 22 22
Total Branches (In Numbers) - 27 28 30 31 32
a) Domestic - 27 28 30 31 32
b) Overseas - - - - - -
Agriculture Credit:
Loan Disbursed - - - 393 269 546
Realised - - - 47 227 294
Industrial Credit:
Loan Disbursed 6034 4952 9349 11425 9906 10273
Realsied 615 3325 2287 7683 9262 8867
Loan Outstanding by Sector
Agriculture and Fisheries - 58 86 - - -
Industry 2553 3484 3543 4375 5442 7706
Trade and Commerce 3980 4593 5413 7352 8746 9570
Poverty Reduction 284 338 359 680 764 1072

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 2008-10.  [Muhammad Abdul Mazid]

BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loanable funds shall be invested in small and cottage industries sector.

The Bank Offers (1) Term loans to industries especially to small-scale enterprises; (2) Full-fledged commercial banking service including collection of deposit, short term trade finance, working capital finance in processing and manufacturing units and financing and facilitating international trade; (3) Technical support to Small Scale Industries (SSls) in order to enable them to run their enterprises successfully; (4) Micro credit to the urban poor through linkage with Non- Government Organisations (NGOs) with a view to facilitating their access to the formal financial market for the mobilisation of resources.

To achieve its organisational goals, the Bank conducts its operations in accordance with the major policy guidelines laid down by the Board of Directors, the highest policy making body. As the Government holds 100 percent ownership of the Bank, all the Directors of the Board are appointed by the Government of Bangladesh. from senior Government and central Bank executives. The Managing Director is an ex-officio member of the Board of Directors. There are at present 7 Directors including the Managing Director.

The day-to-day operation of the Bank is looked after by the management, which is headed by the Managing Director. He is assisted by General Managers and Departmental Heads in the Head Office. BASIC Bank is different in respect of hierarchical structure from other banks in that it is much more vertically integrated as far as reporting to the Chief Executive is concerned. The Branch Managers of the Bank report direct to the Managing Director and, for functional purposes, to the Heads of Departments. Consequently, quick decision-making in disposal of cases is ensured.'

Basic Bank has introduced on line banking since March 2007 to bring the banking transaction and entire customers service under the servillance of the headquarters. Bank has made the banking service to its valued customers more flexible by introducing ATM card in 2007. Considering the eventual impact of industrial development on environment, financing of projects covering concerns of environment are given due importance. Thus the projects in the sectors like Garments and textiles industries, engineering, jute products, chemicals, synthetic leather, embroidery, paper printing and packaging, hardboard, fish and shrimp, fishing net, food processing, biscuit and bread, flour mills, lubricating, cng etc are getting due preferences. [Muhammad Abdul Mazid]