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)
|Paid up Capital||200||202||202||202||1000||1500|
|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|
|Foreign Currency Trading||40674||49011||66969||74611||89254||101012|
|Total Branches (in numbers)||19||56||78||98||128||79|
|Loan Outstanding by Sector|
|Agriculture and Fisheries||235||426||114||347||663||745|
|Trade and Commerce||2776||4237||4826||3086||9940||10335|
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]