ONE Bank Limited
ONE Bank Limited (OBL) was incorporated in May, 1999 with the Registrar of Joint Stock Companies under the Companies Act 1994, as a commercial bank in the private sector. The head office of the bank is at Dhaka. A 7-member board of directors including the chairman and a vice-chairman governs the overall affairs of the bank. The managing director is its chief executive. In 2020 it had 2404 employees and 107 branches, all in urban areas. Bank’s due attention is given in respect of risk undertaking, risk hedging and if not appropriately hedged, reflection of the same in pricing. In the financing side, the bank's major concentration is in trade finance covering about 20.88% of total financing .The bank’s financing concentrates in both, working capital finance and long-term finance. OBL has major concentration of financing in medium and large industries. Since the short-term finance carries low risk compared to long-term finance, the financing strategy of OBL assists the bank to keep the risk at minimal. While financing the industrial sector, the major concentration of the bank appeared to be in the textile and RMG sector; both the above sectors cover 30.89% of the total portfolio. The OBL is also involved in cement construction and transport sector financing.
In the investment portfolio, OBL have substantial investment in quoted and non-quoted shares of different organization including some very prospective financial institutions. The bank has shown its acumen in reducing its exposure from ship scrapping sector, steel re-rolling where the bank had investment earlier. With the increase in exposure to RMG, the bank has increased its non-funded business income substantially.
Basic facts and economic indicators (in million Taka)
| Indicators | 2018 | 2019 | 2020 |
| Authorized Capital | 10000 | 10000 | 10000 |
| Paid up Capital | 7665.3 | 8431.9 | 8853.5 |
| Reserved Fund | 5572 | 6108 | 6430.8 |
| Deposits | 202546 | 228091 | 229485.6 |
| (a) call Deposits | 40555 | 42632 | 54930.7 |
| (b) term Deposits | 161991 | 185459 | 174553.9 |
| Loans and Advances | 198908.7 | 215227.8 | 220341.5 |
| Investment | 28723.9 | 33728 | 29984 |
| Total Asset | 266049 | 297174 | 303516.9 |
| Total Income | 24948 | 27292 | 24265 |
| Total Expenditure | 19563 | 23151 | 21340 |
| Foreign Currency Trading | 239046 | 231656.7 | 189320 |
| (a) Export | 99787 | 95842 | 8117.9 |
| (b) Import | 132814 | 128802 | 103742.1 |
| (c) Remittance | 6445 | 7012.7 | 4460 |
| Total Manpower | 2239 | 2394 | 2404 |
| (a) Officers | 2225 | 2380 | 2391 |
| (b) Staff | 14 | 14 | 13 |
| Correspondent Banks | 423 | 425 | 431 |
| Total Branches (in numbers) | 99 | 103 | 107 |
| (a) Domestic | 99 | 103 | 107 |
| (b) Overseas | 0 | 0 | 0 |
| Agriculture Credit | |||
| Loan Disbursed | 3119 | 2897 | 2636 |
| Realised | 2349 | 2600.7 | 2181 |
| Industrial Credit | |||
| Loan Disbursed | 110518.3 | 117609.5 | 92292.8 |
| Realsied | 104749.6 | 91322.2 | 88322.2 |
| Loan Outstanding by Sector | |||
| Agriculture and Fisheries and Forestry | 2198.8 | 2493.8 | 2498.1 |
| Industry | 48898.5 | 64537.5 | 62034.9 |
| Trade and Commerce | 32095.7 | 23615.3 | 24601.1 |
| Poverty Reduction | 0 | 0 | 0 |
| CSR | 100.8 | 58.2 | 48.4 |
Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Barshik Protibedon [Annual Report on Banks and Financial Institutions], 2019-20 and 2020-21.
Credit Rating Information and Services Limited (CRISL) assigned long term A-1 and short term ST-2 rating to the bank on the basis of its good operating efficiency and strong liquidity in 2008. The OBL has taken initiative to launch ATM facilities and E-banking.
In 2019, bank deposits accounted for 1.8 per cent of total banking sector deposits and loans and advances accounted for 2.0 per cent of total banking sector loans and advances. The average interest rate differential between June 2019 based deposits and loans and advances was 3.9 percent. [Muhammad Abdul Mazid]
