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Pubali Bank Limited


Pubali Bank Limited is the largest commercial bank in private sector. It is the successor of the former Eastern Mercantile Bank Limited incorporated in 1959 under the Companies Act 1913. After the independence of Bangladesh in 1971, Eastern Mercantile Bank Ltd was nationalised under Bangladesh Bank's (nationalisation) Ordinance 1971 and was renamed as Pubali Bank. As per Bangladesh Bank's (nationalisation) Amendment Ordinance 1983, the bank was denationalised on 30 June 1983 and giving its original name Pubali Bank Limited. The government of Bangladesh handed over all assets and liabilities of Pubali Bank to Pubali Bank Limited. Since then Pubali Bank Limted has been involved in commercial banking services as the largest bank in the private sector of Bangladesh. The bank is registered and enlisted at dhaka stock exchange and chittagong stock exchange.

Basic facts and economic indicators (in million Taka)
Indicators 2004 2005 2006 2007 2008 2009
Authorised capital 5000 5000 5000 5000 5000 5000
Paid up capital 200 400 1200 2100 2940 3822
Reserved Fund 2108 2481 3328 3663 4607 5687
Deposits 39789 44503 48676 57987 73016 88466
(a) Call Deposits 10113 13159 15408 17966 22389 27432
(b) Term Deposits 29676 31344 33268 40020 50627 61034
Loans and Advance 27543 32640 40387 50530 61788 74204
Investment 5742 5537 4982 5557 8376 12169
Total Asset 46593 52671 58401 71561 89885 107580
Total income 3455 4436 5494 7088 9009 10664
Total Expenditure 2830 3063 3684 4336 5563 6824
Foreign Currency Trading 43448 56615 70957 92343 110995 120484
a) Export 13670 15721 17702 19908 24796 24740
b) Import 18024 26034 37317 48345 58009 60494
c) Remittance 11754 14860 15938 24090 28190 35250
Total Manpower 4797 5088 5141 5270 5321 5115
a) Officers 3050 3319 3474 3633 3703 3554
b) Staff 1747 1769 1667 1637 1618 1561
Correspondents Banks 435 - - 367 368 270
Total Branches (in numbers) 350 350 365 361 371 386
a) Domestic 350 350 356 361 371 386
b) Overseas - - - - - -
Agriculture Credit
Loan Disbursed - - - - 4 5
Realised 176 8 8 8 2 2
Industrial Credit
Loan Disbursed 2625 7632 11174 9159 23806 27052
Realsied 1198 4253 8136 3471 6514 7402
Loan Outstanding by Sector
a) Agriculture and Fisheries 8 204 246 221 232 279
b) Industry 2382 3875 6640 7336 5934 7126
c) Trade and Commerce 15299 13946 19532 26029 31838 38236
d) Poverty Reduction 111 51 51 126 154 -

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.

The pubali bank takes an initiative to alleviation poverty, unemployment and backwardness rate in socio-economical sectors giving assistance to agriculture and large, medium and small-scale industries entrepreneurs'. Moreover, the bank also promotes financing of infrastructure and industry establishments. The bank is offering incentive to generate new industrial entrepreneurs'. Pubali bank also plays a creative role to improve health sector.

The main functions of the bank include deposit mobilisation, financing productive activities, conducting foreign exchange business and providing various types of banking services to its customers. The lending were mostly in jute, textile, readymade garments and other large, medium and small scale industries, transport, housing, small and medium enterprise financing, rural and agricultural credit, working capital financing, micro credit, credit to trade and commerce and export-import financing. The bank established correspondent relationships with 368 foreign banks and different international financial institutions. Investments of the bank on 3 December in 1999 stood at Tk 3,318 million in government securities, income tax bond, treasury bills, loans to government, national investment bond, bridge financing, shares and debentures of companies and national prize bonds. The bank earned net profits after taxes but before adjusting provision requirements in all years from 1984, except 1990 and 1991.

Pubali Bank Ltd takes different programmes to develop economy including foreign currency income. To avoid difficulties and disquieting situations in sending remittances of Bangladeshi expatriate people and to reach their money to their relatives, the Pubali Bank has set up a network with 57 representative institutions and Western Union Bank. The bank is rendering swiftly such money through its 386 branches network all over the country. Moreover, SWIFT division of the bank is connected with 100 banks over the world. The bank offers a project named Non-resident Credit Scheme to the expatriate wage earners. Under this programme, the people who want to go abroad as an employee can receive loan in easy terms from this bank.

The management of the bank is vested in a 14-member board of directors with the managing directors as its chief executive. Besides, the three high officers include managing director and CEO, deputy managing director, general manager and consultant. At present, there are four hundred branches in different district of Bangladesh. The growth of annual profit of the bank was on average more than 25% in last five years. Pubali Bank achieved DUBLE in Credit Rating based on the review of audited financial report in 2009 conducted by Credit Rating Agency of Bangladesh. The Credit Rating Agency declared as DUBLE A 3 to the pubali bank in long-term business and ST 1 in short term transaction sector. It means that the capability of the bank in paying off financial liabilities is high and able to faces whatever catastrophes. In 2008, the bank also attained Credit Rating A. Pubali Bank Limited got Daily Star DHL 2010 reward as the best-unbeaten bank for the performance of previous year. [Muhammad Abdul Mazid]