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]