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Dutch-Bangla Bank Limited


Dutch-Bangla Bank Limited started operation on 3rd June 1996 as Bangladesh's first joint venture bank in private sector. The bank was an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the Dutch company FMO. From the onset, the focus of the bank has been financing high-growth manufacturing industries in Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products worldwide. Thereby financing and concentrating on this sector allows Bangladesh to achieve the desired growth. DBBL's other focus is Corporate Social Responsiblity (CSR). DBBL is the pioneer in this sector and termed the contribution simply as 'social responsiblity'. Due to its investment in this sector, DBBL has become one of the largest donors and the largest bank donor in Bangladesh. The bank has won numerous international awards because of its unique approach as a socially conscious bank.

The bank conducts all types of commercial banking activities including customer services related to local and foreign remittances but its core business is trade financing. It also extends short and medium-term loans to industrial undertakings on a limited scale. Innovative products on credit and deposit scheme introduced by the bank are commission free remittance, the 'Money Plant' scheme, monthly term deposits, small credit facilities for shop owners, small-scale taxi cab loans, small-scale transport loans and consumer credit.

Table  Basic facts and economic indicators (in million Taka)

Indicators 2004 2005 2006 2007 2008 2009
Authorised Capital 400 400 400 400 1000 4000
Paid up Capital 200 202 202 202 1000 1500
Reserved Fund 776 490 638 842 1197 2000
Deposits 21067 27241 40112 42110 51576 67789
a) Call Deposits 2944 4177 14231 8232 9995 14454
b) Term Deposits 18123 23064 25881 33878 41581 53335
Loans and Advance 14976 20349 28325 29403 41698 49571
Investment 2035 3440 5877 5909 5955 9670
Total Asset 24561 32279 45493 49371 60682 81481
Total income 2367 3435 5188 6367 7276 8914
Total Expenditure 1735 2495 4101 4929 5340 6219
Foreign Currency Trading 40674 49011 66969 74611 89254 101012
a) Export 13582 144 33345 34060 40083 41163
b) Import 25974 26029 32068 35667 43999 53089
c) Remittance 1118 838 1556 4884 5172 6760
Total Manpower: 431 1093 1368 1578 2458 1785
a) Officers 431 548 684 789 1229 1785
b) Staff - 548 684 789 1229 -
Correspondents Banks 100 82 82 82 194 442
Total Branches (in numbers) 19 56 78 98 128 79
a) Domestic 19 28 39 49 64 79
b) Overseas - 28 39 49 64 -
Agriculture Credit:
Loan Disbursed 531 362 116 391 220 300
Realised 602 161 199 282 215 194
Industrial Credit:
Loan Disbursed 9854 14550 20062 15328 22475 24650
Realsied 8849 11626 18617 15437 17785 21113
Loan Outstanding by Sector
Agriculture and Fisheries 235 426 114 347 663 745
Industry 3286 4497 4586 8015 9560 14309
Trade and Commerce 2776 4237 4826 3086 9940 10335
Poverty Reduction - 50 88 58 33 1

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 2009-10.

A 9-member board of directors comprising a chairman and four representatives from local sponsors and three representatives from the Dutch Company oversees the management of the bank. The managing director is appointed by the board who runs the bank's day-to-day business with the assistance of 3 DMD, 24 senior executives and around 1200 other employees working in various grades. In December 2009, the bank had 64 branches in different towns of Bangladesh.

The Electronic-Banking Division was established in 2002 to undertake rapid automation and bring modern banking services into this field. Full automation was completed in 2003 and hereby introduced plastic money to the Bangladeshi masses. DBBL also operates the nation's largest ATM fleet and in the process drastically cut consumer costs and fees by 80%. DBBL had pursued the mass automation in Banking as a CSR activity and never intended profitability from this sector. As a result it now provides unrivaled banking technology offerings to all its customers. Because of this mindset, most local banks have joined DBBL's banking infrastructure instead of pursuing their own. Dutch-Bangla Bank stock set the record for the highest share price in the Dhaka Stock Exchange in 2008. The DBBL provided financial support to various social organisations including Centre for Disabled Concern, Bangladesh Society for Disabled, Bangladesh Society for Education of the Intellectual Disabled, Khulna Handicapped Organisation, Dhaka Ahsania Women Mission, Pollibandhu Kallan Sangstha, Nari Kantho Foundation, asiatic society of bangladesh and Bangladesh Mohila Somity. Furthermore, DBBL financed 13 CNG Refueling Stations and 60 public transports under the Dhaka Clean Fuel Project. It also provided an amount equivalent to two million euro for producing fertiliser through recycling of waste of urban origin under the Clean Development Mechanism Project. [Muhammad Abdul Mazid]