City Bank Limited, The

City Bank Limited, The is one of the oldest private commercial banks operating in Bangladesh. The bank started its operations on 28 March 1983 with an authorised capital of Tk 200 million divided into 2,000,000 ordinary shares of Tk 100 each and paid up capital of Tk 34 million, of which Tk 30 million was paid up by its promoters and the remaining amount by the government. In 2009, the bank's paid up capital rose to Tk 1750 million and share holding capital rose to Tk 1366 million, of which Tk 683 million was subscribed by the sponsors/promoters and the remaining TK. 683 million by the general public.

A 12-member board of directors including the chairman and a vice-chairman runs the management of the bank. Three Deputy Managing Directors, seven head of departments, assist the Managing Director and the Chief Executive. It had 6 regional offices established at the 6 divisional towns/cities.

Basic facts and economic indicators (in million Taka).

Indicators 2004 2005 2006 2007 2008 2009
Authorised Capital 1750 1750 1750 1750 1750 1750
Paid up Capital 480 720 1080 1188 1366 1571
Reserved Fund 937 1238 1451 1686 2944 4293
Deposits 22237 30648 39572 40540 45034 62384
a) Call Deposits 4843 5762 6484 8324 7956 9532
b) Term Deposits 17394 24886 33088 32216 37078 52852
Loans and Advance 17028 23326 30789 26788 34421 39801
Investment 3161 3648 6405 7551 9132 10586
Total Asset 26376 35304 47446 48755 57115 76467
Total Income 2708 3477 5217 5807 6673 8040
Total Expenditure 1786 2228 3723 4551 4918 5784
Foreign Currency Trading 32576 43375 68779 44392 55488 60466
a) Export 12199 18219 28210 19151 14766 13815
b) Import 17910 21363 32096 20309 30894 28718
c) Remittance 2467 3793 8473 4932 9828 17933
Total Manpower 1803 1829 1989 1991 2094 2424
a) Officers 1210 1223 1378 1397 1554 1863
b) Staff 593 606 611 594 540 561
Correspondents Banks 410 410 483 496 501 513
Total Branches (in numbers) 77 77 78 83 83 97
a) Domestic 77 77 78 83 83 97
b) Overseas - - - - - -
Agriculture Credit
Loan Disbursed 142 171 3308 232 - 150
Realised 1 1 803 - 2 217
Industrial Credit:
Loan Disbursed 3053 147 3055 3998 8465 7801
Realsied 517 - 855 2872 3824 6007
Loan Outstanding by Sector
Agriculture and Fisheries 142 171 147 232 59 152
Industry 2423 3567 4889 5568 6624 13524
Trade and Commerce 7995 7607 7947 7226 14339 16437
Poverty Reduction - - - - - 233

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 bank conducts all types of commercial banking activities. Core businesses of the bank include deposit mobilization, lending and foreign exchange dealings.

City Bank is among the very few local banks which do not follow the traditional, decentralised, geographically managed, branch based business or profit model. Instead the bank manages its business and operation vertically from the head office through 4 distinct business divisions namely, Corporate and Investment Banking; Retail Banking (including Cards); SME Banking; and Treasury and Market Risks.

Under a real-time online banking platform, these 4 business divisions are supported at the back by a robust IT-based service delivery setup. Such centralised business segment based business and operating model ensure specialised treatment and services to the bank's different customer segments.

The bank currently has 87 online branches and 10 SME service centers spread across the country that including an Islami Banking branch. Besides these traditional delivery points, the bank is also very active in the alternative delivery area. It currently has 46 ATMs of its own; and ATM sharing arrangement with a partner bank that has more than 550 ATMs in place; SMS Banking; Interest Banking etc. It already started its Customer Call Center operation.

City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) and Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product which the bank is pushing hard in order to ease out the queues at the branch created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the travel sector is currently underway. City Bank has launched American Express Credit Card and American Express Gold Credit card in November 2009. City Bank is the local caretaker of the brand and is responsible for all operations supporting the issuing of the new credit cards, including billing and accounting, customer service, credit management and charge authorisations, as well as marketing the cards in Bangladesh. Both cards are international cards and accepted by the millions of merchants operating on the American Express global merchant network in over 200 countries and territories including Bangladesh. It also introduced exclusive privileges for the card members under the American Express Selects program in Bangladesh. This will entitle any American Express card members to enjoy savings on retail and dining at some of the finest establishment in Bangladesh. It also provides privileges all over the globe with more than 13,000 offers at over 10,000 merchants in 75 countries.

City Bank is one of the largest corporate banks in the country with a current business model that heavily encourages and supports the growth of the bank in Retail and SME Banking. The bank is on its way to opening many independent SME centers across the country within a short time. The bank is active in the workers' foreign remittance business. It has strong tie-ups with major exchange companies in the Middle East, Europe, Far East and USA, from where thousands of individual remittances come to the country every month for disbursements through the bank's large network of 97 online branches and SME service centers. The management wants to turn the bank into a financial supermarket for financial products and services. It has to adopt a 'centralised' form of banking where individual or retail customers will approach the branch while the corporate clientele will be served from the head office and regional corporate offices and SME clientele will be served from the SME centers. All this would be backed by efficient operations service delivery units at head office supported by a robust IT backbone.

In 2008, a new logo and corporate slogan 'Making Sense of Money' was launched which gave the bank a new character that symbolises its epitome of advancement. The bank has broadened their business line and launched its brokerage operations in the capital market. The bank is establishing their own switching system for both debit as well as credit cards from their current third party switching system. This investment in IT system will enable their customers, access to exciting new products and enhance bank's capabilities to offer premier product features of international repute. [Muhammad Abdul Mazid]