Mercantile Bank Limited

Mercantile Bank Limited a third generation private sector scheduled commercial banking company of Bangladesh, incorporated on 20 May 1999 and commenced its business on 2 June 1999. A group of 27 renowned businessmen of different sectors were the sponsors of Mercantile Bank Limited. Md Abdul Jalil was the founder chairman, and ace banker M Taheruddin was the founder Managing Director and CEO of the bank. The registered head office of the Bank is at 61 Dilkusha Commercial area in Dhaka.

The initial authorised capital of the bank was Tk. 100.00 crore and paid-up capital was Tk 24.50 crore only. During the span of 12 years the authorised and paid-up capital of the bank stands at Tk 800.00 crore and 407.20 crore respectively. The Bank provides a broad range of financial services to its customers and corporate clients. Fixed deposits, Scheme deposits, Savings deposits, and Short-term deposits from the customers remained the core deposits of the Bank.

The Bank emphasised on financing the productive sectors like agriculture and manufacturing including the core areas like Corporate, SME, and Retail etc. MBL also provides facilities under syndication for the corporate customers. The sectors of financing include other key areas of lending including Trading, Engineering, Contractor Finance, Lease Finance, Pharmaceuticals, Housing, Transport, Textile, Glass and Glass product, Plastic and Plastic materials etc. MBL has commenced operations of its Brokerage House, namely 'Mercantile Bank Brokerage House', as a part of capital market operations in 2009.

Besides traditional trading, manufacturing, import-export business, Mercantile Bank introduced a few banking products like Double Benefit Deposit Scheme, Monthly Savings Scheme, Monthly Benefit Deposit Scheme, Special Savings Scheme, two specially designed loan schemes, ie Consumer Credit Scheme, Small Loan Scheme for the lower and middle-income group without collateral security at the time of inception.

Basic facts and economic indicators (in million Taka).

Indicators	2004	2005	2006	2007	2008	2009
Authorised capital	1200	1200	3000	3000	3000	8000
Paid up capital	799	999	1199	1499	1799	2158
Reserved Fund	818	1047	1355	1888	2388	2837
Deposits	22385	25087	33318	39348	49538	58033
(a) Call Deposits	5650	3441	4186	5443	5674	6966
(b) Term Deposits	16735	21646	29132	33905	43864	51068
Loans and Advance	17669	21857	26842	31878	41994	48295
Investment	3715	3518	5408	7100	7690	9673
Total Asset	24705	28890	37160	44941	55929	66167
Total income	2718	3473	4631	5561	6878	8248
Total Expenditure	1896	2505	3453	4176	5296	6336
Foreign Currency Trading	46408	58060	80024	76560	104361	111953
a) Export	17411	24109	34592	32670	43109	46299
b) Import	28325	33272	42443	40380	56529	60593
c) Remittance	671	679	2989	3510	4723	5061
Total Manpower	544	663	879	945	1115	1303
a) Officers	527	643	854	917	1087	1277
b) Staff	17	20	25	28	28	26
Correspondents Banks	255	266	306	584	586	590
Total Branches (in numbers)	25	28	35	41	42	53
a) Domestic	25	28	35	29	42	53
b) Overseas	-	-	-	-	-	-
Agriculture Credit
Loan Disbursed	-	-	-	1000	48	199
Realised	-	-	-	-	441	449
Industrial Credit
Loan Disbursed	17667	21857	26339	26975	40090	13317
Realsied	8777	11439	14213	12655	16257	12413
Loan Outstanding by Sector
Agriculture and Fisheries	-	-	-	1000	645	338
Industry	6489	6620	7008	9535	11025	16160
Trade and Commerce	5320	6576	9467	11782	15139	15982
Poverty Reduction	-	-	-	0	454	104

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.

MBL maintains a strong network with the Overseas Exchange Companies and Banks to ensure quicker and safer remittance services. The Bank has signed agreements with different overseas exchange companies including those in USA, Canada, UK, Italy, and Japan etc to facilitate the remitters in sending their money to their beneficiaries. MBL has signed International Representation Agreement with globally reputed Money Transfer Company 'Western Union Services'. An agreement with Bangladesh Post Office (BPO) has been signed for the distribution of inward foreign remittance. BPO provides services through its 450 designated outlets under this arrangement across the country. As a result, a new horizon has been opened for the Bank to extend its remittance services to the doorstep of beneficiaries easily, quickly and safely. MBL looks forward to launch an Exchange House in UK, namely Mercantile Bank Exchange House to make the remittance service convenient for the expatriates living in UK.

The 22-member Board always takes strategic decisions emphasising good governance to protect the interests of the shareholders and other stakeholders at large, increasing their confidence and establishing their trust. The Board of Directors always guides the Bank towards the goal set by the shareholders, ensuring highest standards of integrity, accountability, transparency, ethics and professionalism of the management.

Different professional and regulatory bodies have honored the bank. In 2009, The Institute of Chartered Accountants of Bangladesh (ICAB), the highest Accounting Body in Bangladesh awarded the Bank for publishing its Annual Report-2008. In the Financial Sector-Banking Category, ICAB recognised MBL with Certificate of Merit for its best Published Accounts and Reports. In 2009, MBL has also been honored with Sonar Manush Sheba Award by Refugee and Migratory Movements Research Unit (RMMRU) for its contribution to foreign remittance management. [Muhammad Abdul Mazid]