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]