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]