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National Bank Limited


National Bank Limited (NBL) established as the first private sector bank fully owned by Bangladeshi sponsors. It started banking operations on 23 March 1983 with an authorised capital of Tk 100 million and paid up capital of Tk 44 million. On 31 December 2008, the bank's authorised and paid up capital stood at Tk 2450 million and Tk 1873 million respectively. The bank conducts commercial banking activities including deposit mobilisation, lending, servicing domestic and foreign trade and remittance services. The bank introduced credit card and master card for both internal and international use. It has a deposit insurance scheme and a monthly deposit project to encourage the public to save more.

Basic facts and economic indicators (in million Taka)
Indicators 2004 2005 2006 2007 2008 2009
Authorised capital 1000 1000 2450 2450 2450 7450
Paid up capital 516 620 805 1208 1873 2847
Reserved Fund 1580 2134 2469 3360 4253 6070
Deposits 29486 33335 40351 47961 60188 76838
(a) Call Deposits 6656 7785 7819 21030 23270 13740
(b) Term Deposits 22830 25550 32532 26931 36918 63098
Loans and Advance 22972 27020 32709 36476 50665 65129
Investment 4886 3915 5730 7760 10157 12315
Total Asset 49482 55397 66534 56528 72213 92085
Total income 3739 4201 5729 7183 8893 10982
Total Expenditure 2672 3351 4582 4968 5769 7604
Foreign Currency Trading 48168 66610 91789 122143 154388 160321
a) Export 17105 21344 28019 31824 36284 38399
b) Import 22028 31648 42459 62769 78226 77540
c) Remittance 9035 13618 21311 27560 39878 44382
Total Manpower: 2133 2183 2270 2432 2737 2960
a) Officers 1550 1596 1708 1830 2079 2213
b) Staff 583 587 562 602 658 747
Correspondents Banks 410 391 400 405 405 415
Total Branches (in numbers) 76 76 91 101 106 130
a) Domestic 76 76 91 101 106 131
b) Overseas - - - - - -
Agriculture Credit:
Loan Disbursed 73 59 54 250 559 611
Realised 12 30 21 104 238 177
Industrial Credit:
Loan Disbursed 3613 3089 5302 7566 7059 13555
Realsied 1122 1211 1168 6008 3198 11932
Loan Outstanding by Sector
Agriculture and Fisheries 80 121 160 368 656 833
Industry 2701 2903 6518 6490 12642 9848
Trade and Commerce 13105 10532 13577 17028 23107 32415
Poverty Reduction - - - - - -

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 2008-09.

The three types of shareholders of the bank are Group-A (Bangladeshi sponsors owning 50%), group-B (government of Bangladesh and public sector financial institutions owning 5%) and group-C (general public owning 45%). The management of the bank is vested in a 16-member board of directors with the managing director as the chief executive.

At present, NBL has been carrying on business through its 130 branches and 15 SME centers spread all over the country. It has drawing arrangements with 415 correspondents in 75 countries of the world, as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency arrangements with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals.

To keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution, automated all its branches with computer networks in accordance with the competitive commercial demand of time which play a vital role in formulating and implementing policies. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and reuters. National Bank, has now acquired strength and expertise to support the banking needs of the foreign investors. NBL stepped into a new arena of business and opened its Off Shore Banking Unit at Mohakhali to serve the wage earners and the foreign investors better than before.

NBL has been continuing its small credit programmes for disbursement of collateral free agricultural loans among the poor farmers of Varendra area in Rajshahi district for improving their livelihood. Since its inception, the bank was aware of complying with Corporate Social Responsibility. In this direction, the bank has remained associated with the development of education, healthcare and has sponsored sporting and cultural activities. During times of natural disasters like floods, cyclones, landslides, it has extended hand to mitigate the sufferings of victims. It established the National Bank Foundation in 1989 to remain involved with social welfare activities. The foundation runs the NBL public school and College at Moghbazar where present enrolment is 1140. Besides awarding scholarship to the meritorious children of the employees, the bank has also extended financial support for their education. It also provided financial assistance to the asiatic society of bangladesh at the time of their publication of Banglapedia and observance of 400 years of Dhaka City.

The transparency and accountability of a financial institution are reflected in its Annual Report containing its Balance Sheet and Profit and Loss Account. In recognition of this, NBL was awarded Crest in 1999 and 2000, and Certificate of Appreciation in 2001 by the Institute of Chartered Accountants of Bangladesh. [Muhammad Abdul Mazid]