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Bangladesh Commerce Bank Limited


Bangladesh Commerce Bank Limited (BCBL) a private sector commercial bank and incorporated in Bangladesh on 1 June 1998 under the Banking Company Act, 1994. It started banking operations on 16 September 1999 with an authorised and paid up capital of Tk. 2,000 million and Tk. 920 million respectively. The share of the government of Bangladesh in the bank's paid up capital is Tk. 300 million while depositors of the former Bangladesh Commerce and Investment Limited (BCIL) contributed Tk. 520 million. The balance of Tk. 100 million is to be subscribed by banks and financial institutions under guidance and supervision by bangladesh bank.

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 920 920 920 920 920 920
Reserved Fund 79 102 108 102 102 189
Deposits 4282 4230 4659 5679 6786 7604
(a) Call Deposits 1355 1350 1491 843 1125 1336
(b) Term Deposits 2927 2880 3168 4836 5661 6268
Loans and Advance 4136 3992 4670 5010 5786 6256
Investment 260 329 425 508 656 710
Total Asset 5613 5730 6271 7250 8521 9420
Total income 212 239 578 939 1237 1536
Total Expenditure 128 123 479 968 1205 1248
Foreign Currency Trading 8901 7193 3350 3640 34109 45774
(a) Export 2343 1750 1250 899 9793 10212
(b) Import 4806 3600 1175 2552 22768 35137
(c) Remittance 1752 1843 925 189 1548 125
Total Manpower: 447 425 449 433 427 454
Officers 254 256 275 262 252 260
Staff 193 169 174 171 175 194
Correspondents Banks 9 9 9 9 6 6
Total Branches (in numbers) 25 25 25 25 25 25
(a) Domestic 25 25 25 25 25 25
(b) Overseas - - - - - -
Agriculture Credit:
(a) Loan Disbursed - - - 83 177 7
(b) Realised - - - 2 44 86
Industrial Credit:
(a) Loan disbursed 425 350 450 729 992 1046
(b) Realised 50 360 91 155 931 563
Loan Outstanding by Sector
(a) Agriculture and Fisheries - - - 81 245 158
(b) Industry - 270 1271 1044 783 779
(c) Trade and Commerce 2929 2412 1848 1571 2954 3299
(d) Poverty Reduction 5 1 1 3 - -

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 2010.

The former Bangladesh Commerce and Investment Limited was set up on 27 January 1986 as a non-bank financial institution. It continued its business till April 1992. Consequent upon its liquidity crisis, Bangladesh Bank suspended its operations in April 1992. As a result, the investors of the company suffered a lot and its employees became jobless. Both the depositors and the jobless employees launched a movement for reopening the company in some form or other and demanded return of their money and dues. With a view to safeguarding the interest of the depositors, employees and the general public, and to protecting the banking system itself from contagious effects of bank failures, the government of Bangladesh established the Bangladesh Commerce Bank on the ashes of the collapsed BCIL.

Subsequently, the government on 8 February 1998 constituted a 10-member board of directors to organise and transform BCIL into BCBL and to administer the affairs of the bank. The 24 branches of BCIL were reopened as full-fledged branches of BCBL. The broad objective of the bank is to carry out all kinds of commercial banking activities and to respond quickly to the changing demands for modern banking products.

To augment its deposit collection further, BCBL introduced a number of deposit schemes suited to the needs of all classes of people in society. These schemes include: Monthly Profit Based Deposit Scheme; Pension Saving Scheme; Interest Free Deposit and Loan Scheme; Consumers' Credit Scheme; and Money Plantation Against Saving Certificates.

A 9-member board of directors appointed by the government manages the bank. Managing director is the chief executive of the bank. At present total of 454 officers and other staff work in the head office and the 25 branches of the bank. It has inherited a training institute from BCIL. This institute is being reorganised to provide training to its employees in modern banking services. [S M Mahfuzur Rahman]