Dutch-Bangla Bank Limited

Dutch-Bangla Bank Limited started operation on 3rd June 1996 as Bangladesh's first joint venture bank in private sector. The bank was an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the Dutch company FMO. From the onset, the focus of the bank has been financing high-growth manufacturing industries in Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products worldwide. Thereby financing and concentrating on this sector allows Bangladesh to achieve the desired growth. DBBL's other focus is Corporate Social Responsiblity (CSR). DBBL is the pioneer in this sector and termed the contribution simply as 'social responsiblity'. Due to its investment in this sector, DBBL has become one of the largest donors and the largest bank donor in Bangladesh. The bank has won numerous international awards because of its unique approach as a socially conscious bank.

The bank conducts all types of commercial banking activities including customer services related to local and foreign remittances but its core business is trade financing. It also extends short and medium-term loans to industrial undertakings on a limited scale. Innovative products on credit and deposit scheme introduced by the bank are commission free remittance, the 'Money Plant' scheme, monthly term deposits, small credit facilities for shop owners, small-scale taxi cab loans, small-scale transport loans and consumer credit.

Table  Basic facts and economic indicators (in million Taka)

Indicators

2004

2005

2006

2007

2008

2009

Authorised Capital

400

400

400

400

1000

4000

Paid up Capital

200

202

202

202

1000

1500

Reserved Fund

776

490

638

842

1197

2000

Deposits

21067

27241

40112

42110

51576

67789

a) Call Deposits

2944

4177

14231

8232

9995

14454

b) Term Deposits

18123

23064

25881

33878

41581

53335

Loans and Advance

14976

20349

28325

29403

41698

49571

Investment

2035

3440

5877

5909

5955

9670

Total Asset

24561

32279

45493

49371

60682

81481

Total income

2367

3435

5188

6367

7276

8914

Total Expenditure

1735

2495

4101

4929

5340

6219

Foreign Currency Trading

40674

49011

66969

74611

89254

101012

a) Export

13582

144

33345

34060

40083

41163

b) Import

25974

26029

32068

35667

43999

53089

c) Remittance

1118

838

1556

4884

5172

6760

Total Manpower:

431

1093

1368

1578

2458

1785

a) Officers

431

548

684

789

1229

1785

b) Staff

-

548

684

789

1229

-

Correspondents Banks

100

82

82

82

194

442

Total Branches (in numbers)

19

56

78

98

128

79

a) Domestic

19

28

39

49

64

79

b) Overseas

-

28

39

49

64

-

Agriculture Credit:

Loan Disbursed

531

362

116

391

220

300

Realised

602

161

199

282

215

194

Industrial Credit:

Loan Disbursed

9854

14550

20062

15328

22475

24650

Realsied

8849

11626

18617

15437

17785

21113

Loan Outstanding by Sector

Agriculture and Fisheries

235

426

114

347

663

745

Industry

3286

4497

4586

8015

9560

14309

Trade and Commerce

2776

4237

4826

3086

9940

10335

Poverty Reduction

-

50

88

58

33

1

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.

A 9-member board of directors comprising a chairman and four representatives from local sponsors and three representatives from the Dutch Company oversees the management of the bank. The managing director is appointed by the board who runs the bank's day-to-day business with the assistance of 3 DMD, 24 senior executives and around 1200 other employees working in various grades. In December 2009, the bank had 64 branches in different towns of Bangladesh.

The Electronic-Banking Division was established in 2002 to undertake rapid automation and bring modern banking services into this field. Full automation was completed in 2003 and hereby introduced plastic money to the Bangladeshi masses. DBBL also operates the nation's largest ATM fleet and in the process drastically cut consumer costs and fees by 80%. DBBL had pursued the mass automation in Banking as a CSR activity and never intended profitability from this sector. As a result it now provides unrivaled banking technology offerings to all its customers. Because of this mindset, most local banks have joined DBBL's banking infrastructure instead of pursuing their own. Dutch-Bangla Bank stock set the record for the highest share price in the Dhaka Stock Exchange in 2008. The DBBL provided financial support to various social organisations including Centre for Disabled Concern, Bangladesh Society for Disabled, Bangladesh Society for Education of the Intellectual Disabled, Khulna Handicapped Organisation, Dhaka Ahsania Women Mission, Pollibandhu Kallan Sangstha, Nari Kantho Foundation, asiatic society of bangladesh and Bangladesh Mohila Somity. Furthermore, DBBL financed 13 CNG Refueling Stations and 60 public transports under the Dhaka Clean Fuel Project. It also provided an amount equivalent to two million euro for producing fertiliser through recycling of waste of urban origin under the Clean Development Mechanism Project. [Muhammad Abdul Mazid]