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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]