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).
|Paid up Capital||675||810||945||1247||1310||1455|
|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|
|Foreign Currency Trading||18657||23333||34192||39064||49670||54449|
|Total Branches (In Numbers)||-||27||28||30||31||32|
|Loan Outstanding by Sector|
|Agriculture and Fisheries||-||58||86||-||-||-|
|Trade and Commerce||3980||4593||5413||7352||8746||9570|
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]