Dutch-Bangla Bank Limited

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Dutch-Bangla Bank Limited started operation as Bangladesh's first joint venture bank. 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 Responsibility (CSR). DBBL is the pioneer in this sector and termed the contribution simply as 'social responsibility'. 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

Basic Facts and Economic Indicators (In Million Taka)

Indicators 2018 2019 2020
Authorized Capital 4000 15000 15000
Paid up Capital 2000 5000 5500
Reserved Fund 9193 9193 9193
Deposits 262467 302159 362611
a) Call Deposits 89791 104816 126841
b) Term Deposits 172676 197343 235770
Loans and Advance 231553.1 256239.7 273439.8
Investment 32208 55105 112590
Total Asset 346469 390362 472355
Total Income 29215 34706 34679
Total Expenditure 21991 23446 24178
Foreign Currency Trading 397401 449336 408478
a) Export 151484 141689 109086
b) Import 167371 143653 127925
c) Remittance 78546 163994 171467
Total Manpower 8195 9988 10022
a) Officers 8195 9988 10022
b) Staff 0 0 0
Correspondent Banks 560 560 480
Total Branches (in numbers) 184 195 208
a) Domestic 184 195 208
b) Overseas 0 0 0
Agriculture Credit
Loan Disbursed 2269.8 5326.9 6819
Realised 3853.1 3914.5 5941.8
Industrial Credit
Loan Disbursed 196838 209075.7 149304.2
Realsied 181719.7 192064.3 137445.5
Loan Outstanding by Sector
Agriculture and Fisheries and Forestry 2311.8 3481.4 4493.1
Industry 59599.5 76704.9 84980.7
Trade and Commerce 29631.5 30344.7 30178.2
Poverty Reduction 0 0
CSR 835 876.6 691

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.

A 6-member board of directors comprising a chairman and four representatives from local sponsors and three representatives from the Netherlands Development Finance 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 10220 other employees working in various grades. In March 2021, the bank had 64 branches in different towns of Bangladesh.

DBBL was the first bank in Bangladesh to be fully automated. 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.

In 2020, bank deposits accounted for 2.4 per cent of total banking sector deposits and loans and advances accounted for 2.3 per cent of total banking sector loans and advances. The average interest rate differential between June 2020 based deposits and loans and advances was 7.9 percent. [Muhammad Abdul Mazid]