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Trust Bank Limited


Trust Bank Limited a commercial bank in private sector of Bangladesh. It was incorporated in June 1999 and next month of the same year got licensed from the bangladesh bank. It started business operations in November 1999 with an authorised capital of Tk 1,000 million and paid up capital of Tk 200 million. The bank entered into the capital market selling Initial Public Offering (IPO) in July of 2007 and accumulated 467 million taka as paid up capital. Army Welfare Trust designated as group-A shareholder holds 50% of paid up capital and the public designated as group-B shareholders holds the remaining 50%.

Basic facts and economic indicators (in million Taka).

Indicators 2004 2005 2006 2007 2008 2009
Authorised capital 2000 2000 2000 2000 2000 2000
Paid up capital 500 500 500 1167 1540 1848
Reserved Fund 170 291 454 982 1580 1931
Deposits 10748 12701 18986 27102 32920 48465
a) Call Deposits 1100 2902 2012 3497 3844 4928
b) Term Deposits 9648 9799 16974 23605 29076 43537
Loans and Advance 6804 9738 13188 18682 27529 32663
Investment 4541 2447 3260 3785 4963 87069
Total Asset 12086 14782 21198 30382 38476 54142
Total income 1046 511 852 1338 2006 2468
Total Expenditure 830 215 305 495 754 1109
Foreign Currency Trading 10346 10200 15201 25413 28529 45776
a) Export 2490 2072 3000 4225 6079 12770
b) Import 7658 7593 11436 17683 16661 23655
c) Remittance 198 535 765 3505 5789 9351
Total Manpower: 339 356 505 988 1175 1041
a) Officers 273 46 61 842 979 87
b) Staff 66 310 444 146 196 954
Correspondents Banks 14 16 20 19 21 25
Total Branches (in numbers) 15 18 26 31 37 42
a) Domestic 15 18 26 31 37 42
b) Overseas - - - - - -
Agriculture Credit
a) Loan Disbursed 9 75 53 555 1873 962
b) Realised 4 34 36 90 269 317
Industrial Credit
a) Loan Disbursed 5022 7417 4801 8549 15515 8025
b) Realsied 3071 6595 4087 3090 6821 9870
Loan Outstanding by Sector
a) Agriculture and Fisheries 76 105 145 824 1120 592
b) Industry 490 853 1686 3131 5485 5527
c) Trade and Commerce 1209 2808 4220 5683 5984 11187
d) Poverty Reduction - 222 322 500 650 66

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 managing director is the chief executive of the bank. Although the bank was established under the endowment/funding by the Army Welfare Trust and the members of the board of directors are recruited from the army personnel, nevertheless it is an autonomous banking institutions. Its head office is in Dhaka. By the end of December in 2010, it had 45 branches, 5 SME braches and a total of 1175 regular employees.

The bank conducts all types of commercial banking activity. It has achieved remarkable success in collecting deposit. The bank has introduced 3 deposit schemes namely Trust Target, Trust Double Deposit Scheme, and Trust Deposit Insurance Scheme. Trust Bank operates Customer Focused Scheme under Retail Banking. Deposit projects are Fixed Deposit Receipt (FDR), Trust Smart Savers Scheme (TSS), Trust Twice Profit Scheme (TDLS), Trust Money Making Scheme (TMMS), Trust Educare Scheme (TES), Deposit Scheme based on Monthly Profit (MBDS), Lacpoti (Millionaire) Savings Scheme (LSS) and Interest Fast Deposit Scheme (IFFDS).'

In 2006, Trust Bank launched Online Banking Services. The bank introduced merchant banking and islami banking activities since April and July of 2008 respectively. All earning profit of the bank invests in social interest of Army Welfare Trust. The bank has own programme to reduced poverty and socio-economic development of the country. Trust Bank disburse loan in easy terms to the soldiers of Air, Naval and Army force with the view of their lifestyle development and welfare.

In the beginning (1999), the bank did not operate foreign exchange business but later it starts foreign exchange and foreign business in limited scale. The bank established correspondent relationships with 10 foreign banks. By the end of 2008, the volume of foreign exchange business rose to 28,529 million taka gradually, of which the amount of export, import and remittance is 6079 million, 16661 million and 5789 million taka respectively. [Muhammad Abdul Mazid]