Escolar Documentos
Profissional Documentos
Cultura Documentos
Table of
contents
01
04
Letter of Transmittal
03
Notice of the 20th Annual General Meeting
04
Standard Disclosure Index
05
Corporate Governance Disclosure Checklist
08
Vision 10
Mission 11
Corporate Philosophy
12
Strategic Priority
13
Ethics, Integrity and Trust
14
Green Banking
14
Statement Regarding Forward Looking Approach
15
Corporate Profile
16
Milestones 18
Board of Directors Profile
20
Stakeholders Information
(a) Distribution of Shareholdings in 2014
(b) Shares held by Directors in 2014
(c) Redressal of Investors Complaint
Financial Highlights-Group & PBL
Financial Highlights - PBL
Graphical Presentation - PBL
Stock Performance - Market Price Information
Segment Analysis
Horizontal/Vertical Analysis-Key Financial Data
& Key Ratios - PBL
Statement of Value Added and its Distribution
Economic Value Added Statement
Economic Impact Report
Maintaining Capital Adequacy
Maintaining Liquidity
Payment of Dividends
Disclosure for Non Performing Assets
Financial Calendar 2014
Glimpses of 19th AGM
Stakeholders Information
02
Corporate Governance
Composition of Board and Committees
From the office of the Chairman
Managing Director & CEOs Roundup
Directors Report
Report on the Activities of the Audit Committee
Report of Prime Bank Shariah Supervisory Committee
CEO/CFOs Declaration to the Board
Corporate Governance Report
Green Banking Report
Corporate Management
Corporate Organogram
Group Corporate Structure
Management Discussion & Analysis
Report on Risk Management by Chief Risk Officer
Risk Management Report
Market Discipline Disclosure on Risk Based Capital (Basel-II)
29
30
34
38
47
49
50
52
80
86
99
100
101
138
140
154
03
Other Information
Awards and Recognition
175
Media Highlights
180
Products and Services
182
Sustainability Report 2014 - GRI G4
187
Prime Bank Foundation (Corporate Social Responsibility) 223
258
258
258
259
260
261
262
264
265
266
268
269
269
270
271
272
273
274
275
05
Financial Statements
Independent Auditors Report to the Shareholders
Consolidated Balance Sheet
Consolidated Profit and Loss Account
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Balance Sheet of PBL
Profit and Loss Account
Cash Flow Statement
Statement of Changed in Equity
Notes to the Financial Statements
Financial Statements - OBU
Financial Statements - PBIL
Financial Statements - PBSL
Financial Statements - PECL, Singapore
Financial Statements - PBL Exchange (UK) Ltd.
Financial Statements - PBL Finance (Hong Kong) Ltd.
Some PBL Activities during 2014
Branch Network
Glossary
278
280
282
284
286
287
289
291
293
294
391
401
407
413
419
425
430
433
439
Letter of
Transmittal
All Shareholders,
Bangladesh Bank,
Bangladesh Securities and Exchange Commission,
Registrar of Joint Stock Companies & Firms,
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited
Dear Sir(s),
Annual Report of Prime Bank Limited for the year ended December 31, 2014
Enclosed please find a copy of the Annual Report of Prime Bank Limited along with the Audited Financial Statements at
the position of December 31, 2014. The Report includes Income Statements, Cash Flow Statements along with notes
thereon of Prime Bank Limited, its Subsidiaries namely Prime Exchange Co. Pte. Limited, Singapore, PBL Exchange
(UK) Limited, PBL Finance (Hong Kong) Limited, Prime Bank Investment Limited and Prime Bank Securities Limited.
This is for your kind information and record please.
Best regards.
Yours sincerely,
Notice is hereby given to all Members of Prime Bank Limited that the 20th Annual General Meeting of the Company
will be held on Monday, 30 March 2015 at 11:00 a.m. in the KIB Complex, Krishi Khamar Sarak, Farmgate, Dhaka-1215
to transact the following business:
AGENDA
1. To receive, consider and adopt the Directors Report and Audited Financial Statements of the Bank for the year
ended 31st December 2014 together with the Auditors Report thereon.
2. To declare dividend for the year ended 31st December 2014 as recommended by the Board of Directors.
3. To elect/re-elect Directors.
4. To appoint Auditors for the term until the next Annual General Meeting and fixing their remuneration.
Honble Members are requested to update the particulars of their Bank Account, change of address and BO
Accounts with 12 Digits Taxpayers Identification Number (e-TIN) through Depository Participants (DP) before the
Record Date. If the Members fail to update their e-TIN before the Record Date Income Tax at source will be
deducted from payable Dividend @15% (fifteen percent) instead of @10% (ten percent) as per amended Income
Tax Ordinance 1984 under Section 54.
N.B: No gift or benefit in cash or kind shall be paid/offered to the Shareholders in the 20th AGM as per BSEC
Directive No. SEC/CMRRCD/2009-193/154 dated 24.10.2013.
Standard
Disclosure Index
PARTICULARS
PAGE NO.
10,11
13
14
16-17
20-27, 99-100, 368-370
Management Report/ Commentary and analysis including Directors Report/Chairmans Review/CEOs Review etc.
A general review of the performance of the company
Description of the performance of the various activities / products / segments of the company
and its group companies during the period under review. (Weightage to be given for pictorial /
graphical / tabular presentations used for this purpose)
A brief summary of the Business and other Risks facing the organization and steps taken to
effectively manage such risks
A general review of the future prospects/outlook.
Information on how the company contributed to its responsibilities towards the staff (including
health & safety)
Information on company's contribution to the national exchequer & to the economy
30-37, 101-139
34-46, 80-85, 101-139, 258273
138-173
32-33, 36-37
37, 41, 128-131, 208-211 (GRI)
268-269
Sustainability Reporting
Social Responsibility Initiatives (CSR)
Environment related Initiatives
187-222 (GRI)
Integrated Reporting
187-222 (GRI)
44-45, 294-314
295
Impairment of Assets
299
295
Segment Information
Comprehensive segment related information bifurcating Segment revenue, segment results
and segment capital employed
Availability of information regarding different segments and units of the entity as well as non-
segmental entities/units
Segment analysis of
- Segment Revenue
- Segment Results
- Turnover
- Operating profit
- Carrying amount of Net Segment assets
Financial Statements (Including Formats)
Disclosures of all contingencies and commitments
Comprehensive related party disclosures
Disclosures of Remuneration & Facilities provided to Directors & CEO
PARTICULARS
PAGE NO.
278-429
20-27, 52-68
29, 52-79
Human Capital
Communication To Shareholders & Stakeholders
Information available on website
Other information
101-137
55-56
274
138-153
258-259, 343
258, 343
274
262-263
Shareholders Funds
Return on Shareholders Fund
Horizontal/Vertical Analysis including following
Operating Performance (Income Statement)
- Total Revenue
- Operating profit
- Profit Before Tax
41-44, 266-267
41-44, 266-267
PARTICULARS
PAGE NO.
266-267
268-270
261
325-328
338-340
388-389
365
Business Ratio/Information
- Statutory Liquidity Reserve (Ratio)
- Net interest income as a percentage of working funds / Operating cost Efficiency ratio
- Return on Average Asset
- Cost / Income ratio
- Net Asset Value Per Share
- Profit per employee
41-44, 266-267
326-327
356
154-173
320-323, 365
323-327
319-323
433-438
Corporate Governance
Disclosure Checklist
PARTICULARS
PAGE NO.
1.2 Adequate representation of non executive directors i.e. one third of the board, subject to a
minimum of two
1.3 At least one independent director on the board and disclosure/affirmation of the board on
such directors independence.
1.4 Chairman to be independent of CEO
1.5 Responsibilities of the Chairman of the Board appropriately defined and disclosed. Disclosure
of independence of Non Executive Directors
1.6 Existence of a scheme for annual appraisal of the boards performance and disclosure of the
same.
1.7 Disclosure of policy on annual evaluation of the CEO by the Board.
52
52
52
52
55
55
55
1.8 Disclosure of policy on training (including details of the continuing training program) of
directors and type and nature of training courses organized for directors during the year
55
56
73
3.
69
57
57
58
AUDIT COMMITTEES
3.1 Appointment and Composition
3.1.1 Whether the Audit Committee Chairman is an independent Non Executive Director
and Professionally Qualified
3.1.2 Whether it has specific terms of reference and whether it is empowered to investigate
/ question employees and retain external counsel
3.1.3 More than two thirds of the members are to be Non Executive Directors
3.1.4 All members of the audit committee to be suitably qualified and at least one member
to have expert knowledge of finance and accounting.
3.1.5 Head of internal audit to have direct access to audit committee
3.1.6 The committee to meet at least four times a year and the number of meetings and
attendance by individual members disclosed in the annual report.
58
58
58
58
58
70
60
60
3.2.3 Statement of Audit committee involvement in the review of the external audit function:
61
Review and approve any non audit work assigned to the external auditor and
ensure that such such work does not compromise the independence of the
external auditors.
4.2 Narrative description of key features of the internal control system and the manner in which
the system is monitored by the Board, Audit Committee or Senior Management.
62
62-63
62
4.4 Disclosure of the identification of risks the company is exposed to both internally & externally
64
4.5 Disclosure of the strategies adopted to manage and mitigate the risks
64
65
65
65
65
REMUNERATION COMMITTEE
6.1 Disclosure of the charter (role and responsibilities) of the committee
6.2 Disclosure of the composition of the committee (majority of the committee should be nonexecutive directors, but should also include some executive directors)
6.3 Disclosure of key policies with regard to remuneration of directors, senior management and
employees
7.
62
4.3 Statement that the Director's have reviewed the adequacy of the system of internal controls
5.1 Disclosure of statement of ethics and values, covering basic principles such as integrity,
6.
62
5.
61
66
66
66
66
6.5 Disclosure of Remuneration of directors, chairman, chief executive and senior executives.
66
HUMAN CAPITAL
7.1 Disclosure of general description of the policies and practices codified and adopted by
the company with respect to Human Resource Development and Management, including
succession planning, merit based recruitment, performance appraisal system, promotion and
66-67
reward and motivation, training and development, grievance management and counselling.
7.2 Organizational Chart
8.
8.1 Disclosure of the Company's policy / strategy to facilitate effective communication with
shareholders and other stake holders
8.2 Disclosure of companys policy on ensuring participation of shareholders in the Annual General
Meeting and providing reasonable opportunity for the shareholder participation in the AGM.
9.
99
68
68
O U R
10
V I S I O N
O U R M ission
11
Corporate
Philosophy
For Our Customers
Constantly seeking to improve performance by aligning our goals with stakeholders expectations. Because we
value them.
12
Strategic
Priority
Maintain strong capital base by expediting borrowers rating, concentrating on lending portfolio having lower
capital charge, strengthening Internal Capital Adequacy Assessment Process (ICAAP)
Continuation of diversification of credit portfolio in corporate exposure, emphasize on retail, SME and agricultural
loan, address gender issue by providing loans to women entrepreneurs in SME segment and emphasize on
geographical diversification.
Improvement of deposit mix by maintaining efficient deposit mix, increase share of low cost and no cost deposit
in total deposit, increase non-funded business including cash management.
Maintain adequate level of liquidity through minimizing asset-liability mismatch and recovery of past due loans.
Diversification of products and services by introducing IT based innovative products and alternate delivery
channels.
Increase share of inward remittance by expansion of existing exchange houses, opening of new exchange
houses, increase in domestic network for the beneficiaries through strategic alliance, development of new
products for the NRBs
Extend banking services to un-banked and under banked people for inclusive growth.
Innovative approach in dealing with complex and large transactions/fund requirements with strategic alliance.
Improve internal governance through strengthening good corporate cultures, motivation, training and
supervision as per KPIs in all levels of management.
Conduct BPR (Business Process Re-engineering) in different functional areas to improve efficiency and bring in
required structural change.
Integrated marketing effort by creating a customer-orientated relationship management culture, for brand strategy
development, Brand Repositioning and extensive marketing for branding Hasanah investment and card.
Development in Human Resource Management System to motivate and retain the Human Resources and
transform Human Resources to Human Capital through proper training in every aspects of working area.
13
Ethics, Integrity
and Trust
Banking deals with public money where Ethics,
Integrity and Trust is utmost important. Prime Bank
upholds these principles in every section by its
management and customer service. The following
are the key principles of Employee Codes of Ethics
and Business Conduct:
Provide
service to customers with
uncompromising integrity, utmost respect,
unwavering responsibility and dedicated
citizenship
Trust
Ethics
Integrity
Green
Banking
The environmental degradation needs to be tackled in a concerted manner by all. Society demands that business
also take responsibility in safeguarding the planet. As a responsible Corporate Citizen, Prime Bank reinforced its
Green Banking initiatives.
14
The Annual Report contains some forward looking statements regarding the business environment and its likely
effect in the financial conditions of PBL. Statements which are not historical facts including statement of PBLs belief,
expectation are forward looking statements. Words such as plan, anticipate are forward looking statements. Forward
looking statement involves inherent risks and uncertainties. Some factors may actually cause actual results to differ
and some may significantly deviate from the forward looking approach. Some of the factors that may affect the
business environment are given below:
Changes in the general economic condition resulting from natural calamities and political disturbances
Withdrawal of incentive given to some thrust sectors which may make the projects slow moving
Compliance issues raised by the international forums which are likely to affect the export growth
Rise in international prices of essentials which may result to volatility in Foreign Exchange Market
Risk management of lending portfolio often requires stress testing which is based on sophisticated mathematical
tools and cannot solely be dependent on existing MIS. The level of technology in banking industry is yet to
acquire that sophistication.
15
Corporate
Profile
Established in April, 1995 by a group of visionary
entrepreneurs conceive an idea of floating a commercial
bank with different outlook. Prime Bank is known for its
superior service quality, brand image, strong corporate
governance and corporate culture. Committed for
excellence, Prime Bank is a top-tier bank in Bangladesh
and reputed among regulators as distinctly compliant
and among customers as agile and responsive to
change. A Bank aligned to its vision, mission, values and
strategic priorities.
Business Strategy
The bank is driven by key business areas, namely
Corporate Banking, SME & Retail and Islamic
Banking. These are competently supported by other
functions such as Operations, IT, R&D, Marketing,
HR, Procurement, Risk Management, Compliance,
Internal Audit and Financial Administration etc. In
addition, the global subsidiaries- Prime Exchange Co.
Pte Ltd. Singapore, PBL Exchange (UK) Limited, PBL
Finance (Hong Kong) Limited; and our local subsidiary
Prime Bank Investment Limited (PBIL) and Prime Bank
Securities Limited. High on our list of strengths are
our growing customer base, our highly trained and
motivated staff, our superior technological platform,
IT driven processes and our highly developed work
ethic and culture. Prime Bank has always been a
very customer centric Bank maintaining the highest
levels of engagement with its customers. This was
reinforced by the highly visible initiatives taken to
make our services more accessible and convenient.
Our channel expansion and subsequent presence
within top tier supermarket chains has significantly
enhanced accessibility and convenience in respect of
the customer. Likewise, our upgraded Internet banking
platform is extremely user friendly, a factor that will
aid in our efforts to promote its usage among most
of our customers. Both of these initiatives have made
transacting business with Prime Bank much easier.
We are also reinforcing the personal touch through
more optimal staff management and deployment
whilst centralization and automation frees up time
at our branches to better serve customers. Our
footprint in the country has widened considerably
this year with 140 branches and 160 ATMs plus on
16
ALM
We continued to have a firm grip on the levers of risk,
cost and investment, and using our balance sheet
strength to increase the financing support to our
customers. Deposit increased by Tk.2,931 million during
2014 with an impressive growth rate of 1.45 percent. We
maintained a well-diversified Loans & Advances portfolio
and at the same time continued to take the conservative
approach to manage the balance sheet, maintain a
strong liquidity position and keep a watchful eye on
asset quality given the uncertainties that remain in the
external environment. Retail deposits were mobilized
by providing competitive and superior products while
corporate deposits have been collected with corporate
deposit campaign. Thus, high cost of fund been
managed with adequate focus on no and low cost
fund. Thus, sector wise the Bank maintained optimum
exposure with due concentration on SME and Retail
assets. The Bank adequately diversified its investment
through project finance, SME and Retail. Funds under
Corporate, SME and Retail stood at Tk.114.30 billion,
20.05 billion and 12.58 billion respectively.
Environment-friendly Banking
Our Commitments
PBL is committed to deliver value to its stakeholders.
PBL will continue to provide effective and competitive
financials solutions and services to its customers. It will
continue to enhance the shareholders value through
consistent financial performance and efficient capital
management. PBL will foster a strong performance
and learning culture that allows the development and
talents of its employees so that they can effectively play
the role of PBL Brand Ambassador.
17
MILESTONES
DATE
05.02.1995
12.02.1995
12.02.1995
20.02.1995
08.04.1995
17.04.1995
17.04.1995
18.12.1995
29.08.1999
09.09.1999
22.09.1999
15.11.1999
27.03.2000
29.03.2000
29.03.2000
14.03.2000
29.03.2001
18
ilestones
11.12.2003
29.03.2004
15.06.2004
17.04.2005
30.06.2005
06.01.2006
08.07.2006
15.03.2007
Launching of ATM
11.03.2008
01.08.2009
04.08.2009
05.12.2009
19.11.2009
Obtained Permission for issuance of Subordinated Bond for Tk. 2,500 Million for Basel-II
Compliance
31.12.2009
Incorporation of PBIL
28.04.2010
Incorporation of PBSL
29.04.2010
25.05.2010
25.08.2010
22.09.2010
06.01.2011
02.08.2011
01.09.2011
25.03.2012
20.05.2012
15.01.2013
13.04.2013
Launching for the first time in Bangladesh the JCB Cards online acquiring service
20.07.2013
24.07.2013
04.06.2014
27.10.2014
Recipient of 14th ICAB National Award for Best Presented Annual Reports 2013 (Category:
Private Sector Banks including Co-operative Banks) 1st Prize
Recipient of 14th ICAB National Award for Best Presented Annual Reports 2013 (Category:
Corporate Governance Disclosures) 2nd Runner Up
Recipient of SAFA SAARC Anniversary Awards for Corporate Governance Disclosures 2013 Winner
Recipient of SAFA Best Presented Annual Report Awards and SAARC Anniversary Awards for
Corporate Governance Disclosures 2013 2nd Runner Up
30.11.2014
30.11.2014
04.12.2014
04.12.2014
19
Board of
Directors Profile
Mr. Azam J Chowdhury current Chairman of the Board of Directors is
an entrepreneur and leading industrialist of the country. He had been
Chairman of the Board in the past also on more than five occasions.
Mr. Chowdhury is Chairman of East Coast Group (ECG), a diversified
conglomerate engaged in Oil and Energy business for more than three
decades. Besides, he is the Chairman of The Consolidated Tea & Lands
Company Bangladesh Limited (formerly James Finlay Limited) and Bangladesh
Trade Syndicate Limited, an associate of TNT Global Express Company.
Azam J Chowdhury
Chairman
Khandker
Mohammad Khaled
Vice Chairman
20
M. A. Khaleque
Vice Chairman
21
Imran Khan
Vice Chairman
Executive Committee
Nasim Anwar
Hossain
Chairperson
Risk Management Committee
22
Mr. Md. Nader Khan is a Sponsor Director and immediate past Chairman of the
Board of Prime Bank. He is a prominent entrepreneur and has the credentials
of setting up many high-ended business establishments in different sectors.
Currently, he is associated with the following business concerns:
Chairman:
Artisan Ceramics Ltd.
Managing Director:
Pedrollo nk Limited
Polyexprint Ltd.
Polytape Ltd.
Director:
The Consolidated Tea and Lands Company (BD)
One of his business concerns, Pedrollonk Limited, is the market leader in water
pump sales & distribution in Bangladesh since 1985. Mr. Khan was honored
with Prime Ministers Award 2010 for his contribution in tree plantation. A
goodhearted personality, Mr. Khan is actively involved in diverse CSR activities.
He is the Chairman of Lion Mukhlesur Rahman Foundation, Lion Mukhlesur
Rahman Plastic Surgery Hospital, Zero Club Foot Project, Founder of Cider
International School, Ex- Governor (2000-2001) of Lions Club InternationalDistrict 315 B4 Bangladesh, to mention a few.
He is a trustee Member of Independent University of Bangladesh (IUB) &
Chittagong Independent University (CIU).
Mr. Khan believes hard work and business integrity are the key to success.
He considers vision is necessary to give proper directions for economic
development. He, in view of his vast experience, likes to contribute in
national development through his experience for expansion of quality
education and tea plantation across the country.
Mr. Md. Shirajul Islam Mollah, a Sponsor Director of Prime Bank is also past
Chairman of the Board of Directors. He also held the position of Chairman
of the Executive Committee of the Board on more than one occasions
and is currently Member of the same Committee.
A very successful business personality, Mr. Shirajul Islam is the Managing
Director of China-Bangla Ceramic Industries Limited, Bengal Tiger
Cement Industries Limited, Bajnabo Textile Mills Limited and United
Shipping Lines Limited.
23
Mafiz A. Bhuiyan
Director
Marina Yasmin
Chowdhury
Director
Nazma Haque
Director
24
Mrs. Salma Huq is one of the Sponsor Directors and former Chairman
of the Executive Committee of Prime Bank Ltd. She is a Director of
GQ Group since 1986, which is engaged in manufacturing pen, plastic
furniture, disposable plastic wares, pp woven sacks, mosquito coils and
snack foods. GQ Group is also one of the sponsors of Prime Insurance
Co Ltd, Prime Finance and Investment Ltd, PFI Securities Ltd and Prime
Capital Management Ltd.
Mrs. Salma Huq is actively engaged in philanthropic activities providing
scholarship to needy students, free medicine and arranging treatment
for the poor.
Salma Huq
Director
She is one of the founders of Qazi Saleema Huq Womens College and
Qazi Saleema Huq Girls High School.
She is currently Member of the Executive Committee and Risk
Management Committee of the Board of Directors of Prime Bank Limited.
Muslima Shirin
Director
Md. Shahadat
Hossain
Director
25
Mizanur Rahman
Bhuiyan
Director
Nafis Sikder
Director
26
Prof. Dr.
Mohammed Aslam
Bhuiyan
Independent Director
Manzur Murshed
Independent Director
Mr Ahmed Kamal Khan Chowdhury took over the charge of Prime Bank
on 15th September 2014 as Acting Managing Director prior to becoming
Managing Director on 14th December 2014. Before taking over the charge
as Managing Director, he was Deputy Managing Director and Chief Risk
Officer of the same bank. He has over 30 years of banking experience in
the field of Finance, Risk Management, Internal Control and Compliance.
He held important management position viz. Chief Finance Officer, Chief
Risk Officer, Head of Credit Committee, CAMLCO (Chief Anti Money
Laundering Compliance Officer), Head of Finance and Head of Branch
in International, Specialized and Private Commercial Banks operating
in Bangladesh during his banking career. Over the time he developed
strong professional skills in multitasking environment and as a believer in
process development was always the core team member of the process
development to bring more transparency and smooth workflow.
27
02
C orporate G overnance
28
Composition of
Board and Committees
Board of
Directors
Audit
Committee
Shariah
Supervisory
Committee
Chairman
Vice Chairman
Member
Member
Member
Member
Member
Chairperson
Member
Member
Member
Member
Chairman
Vice Chairperson
Vice Chairperson
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Independent Director
Independent Director
Independent Director
Managing Director
Executive
Committee
Chairman
Member
Member
Member
Member
Risk Management
Committee
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member Secretary
29
30
Customer Focus
Strong correlation has been found between consistent
customer journey and overall performance in customer
experience. In an era of proliferated banking products,
multi-channel touch points, Prime Bank has ensured
consistency in its services. The motto has always been
in delivering consistent pursuit of quality customer
experience. This is why the Bank places high emphasis
on ensuring courteous interaction with every customer.
The Banks customer account has been significantly
Performance -2014
The Banking industrys profitability is always impacted
by the aggregate output and growth of the economy.
Fifty Six (56) Scheduled banks operating in an economy
where private sector growth is merely 12.7%. The
performance over the years in terms of achieving
sustainable financial results, therefore, can be stated to
be consistent like any yesteryears. Despite the slowness
in every aspect and borrowers inclination of availing
foreign funds and not going beyond contingent UPAS
import portfolio Bank succeeded in declaring double
digit dividend. At the end of the year Banks AdvanceDeposit ratio hovered around 70% as against normal
above 80%+ clearly supporting the statement made
above on lesser demand of credit .
Capital Adequacy at the end of the year stood as usual
impressive 12.71% against the regulatory requirement of
10.00%. Return on Equity (ROE) was 10.08%. & Earnings
Per Share 2.32% suggesting significant improvement
over the performance of last year
The ratio of non-performing loans was slightly
unfavorable considering Prime Bank standard but it can
be assured that its bound to improve as this has been
chalked out as one of the priorities of the bank for the
year 2015.
31
Corporate Governance
Prime Bank Ltd. is committed to maintaining high
standard of corporate governance. It is fully compliant
with the guidelines of both BSEC and Bangladesh Bank
in the operation of the banking activities. Statutory
Committees like the Executive Committee, Audit
Committee and Risk Management Committee are
fully functional as per laid down guidelines. The Audit
Committee consists of three IDs and is also headed
by an Independent Director and all the subsidiaries of
the Bank have at least one ID on behalf of the holding
Company. Minutes of the Board Meetings of the
subsidiary companies are placed for review of the Board
on regular basis while their financials are also reviewed
by the Audit Committee and the Board.
Codes of Conduct for the Directors are in place and
annual compliance is also recorded. Responsibilities and
authority of the Chairman, CEO, CFO, Head of Internal
Audit & Inspection, Company Secretary and Roles of Audit
Committee are well defined and is meticulous followed.
Maximum disclosure is being ensured enabling the
stakeholders have a fair assessment on the activities
and performance of the Bank. The Bank also engaged
32
Note of optimism
Note of appreciation
I had intended to touch upon many more subjects
but as it appears most of those have been attended
in different sections of this Annual Report; I therefore,
restrain myself from duplications.
I am thankful for the continuous support of all wellwishers, shareholders and stakeholders. As tough as
the year was the company was under constant and
intense pressure- I can hardly express the admiration,
even pride, I feel because of the enduring resolve and
resilience demonstrated by the Board of Directors, the
Management and above all the employees. We all owe
them a great deal of gratitude. I would like to extend my
special gratitude to the Central Bank for always providing
guidance, direction and unwavering support. My sincerest
appreciation also goes to the Commercial Auditors of the
bank for being a constant guide al-through.
When I look back at the company with all ups and downs
last year, I remember the quote from the A Tale of Two
Cities: It was the best of times; it was the worst of
times. We came through it scarred but strengthenedsteadfast in our commitment to do the best we can.
Before I conclude, I must inform that the Special
Resolution adopted in the last AGM about issuance of
Prime Bank Subordinated Bond-2 worth BDT 2,500
million has been materialized. We, as such, feel more
confident on the pillar of strong CAPITAL to meet higher
expectation of the stakeholders in the future activities
of the bank.
With the assurance and commitment of taking the bank
to a higher level and improved performance in 2015, I
conclude in anticipation that the next AGM shall bring
more rewards for all.
Warmest regards,
Azam J Chowdhury
Chairman
33
34
Bangladesh Economy
The prospects of the Bangladesh economy over the
near and medium terms are reasonably good. During
last two years Global meltdown and compliance of
RMG sector affected the growth of export sector of our
economy. In addition the economy witnessed political
turmoil for last two years which impacted the overall
growth of the country. In spite of above factors the
growth rate of GDP was 6.15 percent during 2014. Import
of capital machinery showed upward trend during 2nd
Business Performance
In 2014 we made significant progress in transforming
ourselves to become the compliant bank for regulators
and customers. During 2014 the macroeconomic
environment remained challenging economic
contraction, unemployment and political and regulatory
uncertainty impacted both us and our competitors.
Against these uncertainties we successfully controlled
branch operations while taking steps to de-risk the
business. The Bank continued its growth momentum
despite challenges in the banking sector, and stayed
alongside of industry average growth rates in business
volumes and the underlying streams of revenue. The
profit after tax increased by 30.80 percent and return on
assets by 26.31 percent during 2014. Total assets grew
by 4.53 percent to BDT 254,912 million with investments
showing 27.58 percent growth. Deposits grew by 1.45
percent to BDT 204,838 million during 2014. Prime Bank
contained the rise in NPLs through constant monitoring
and focused recovery efforts, closing the year with an
NPL ratio of 7.61 percent as against an industry average
of 9.69 percent. Interest spread and commission came
under pressure in the wake of a declining interest rate
regime which saw assets being re-priced faster than
the liabilities. However, our Banks cost of deposit has
came down to 7.36 percent (2013: 8.80 percent). Moving
forward, we expect interest rates to be stable in 2015
and provide the impetus for a higher credit growth. As
we head into 2015, many commercial projects that were
not previously deemed financially viable could gain new
life in this more favorable interest rate environment and
non performing situation may improve. Even though
our margins will be leaner, it would be compensated
through growth in volume and improved asset
quality with borrowers finding their credit obligations
more affordable. Remittance growth started gaining
momentum and became positive in the second half
of 2014. The growth in remittance was 10.30 percent
during 2014. However, the export and import business
35
Capital Adequacy
PBLs regulatory capital as on December 31, 2014 stood
at BDT 27,313 million which 12.71 percent with regard
to risk weighted assets. With a view to ensuring the
implementation of Basel III in a phased manner and
keeping in view raising the quality and level of capital
to ensure absorb losses, we have issued sub ordinate
bond to the tune of BDT 2,500 million which is clearly
depicted in our notes to accounts under post balance
sheet event. With the bonds the capital adequacy would
36
Information Technology
The banks core banking software Temenos T24, which
is an excellent technology platform fine-tuned to
achieve efficiency in its operations. In order to provide
prompt service to the valued customers efforts were
given on automation, developing procedure and
reducing manual operations. Information technology
of PBL enables sophisticated product development,
better market infrastructure, implementation of reliable
techniques for control of risks and helps the financial
intermediaries to reach geographically distant and
diversified markets. Technological development of
the Bank tremendously increased its customer service
as well as established trust worthiness among the
stakeholder. The security controls are properly applied
to reduce the risks associated with connectivity to
external/internal networks. The implementation of
connectivity with external/internal networks is properly
authorized, authenticated, monitored, encrypted
and managed by IT staffs that are properly trained in
networking technologies. The Bank has taken up the
up gradation project of Temenos which would further
strengthen our processes and give opportunities for
further growth with proper control in place.
Human Resources
Prime Bank always gives the highest focus on the right
placement of human resources. The bank believes in
certain core values as practiced by all employees to meet
the mission and the broader vision of the organization.
We strongly believe human resources are the greatest
assets and recognize them as building blocks of the
banks performance. Recognizing Service Excellence
as the prime differentiator in a market of homogeneous
products and services, we continued to invest in people
to enhance and upgrade their skill sets through various
training programs at home and abroad. To ensure longterm sustainability, PBL is relentlessly pursuing its vision
to transform the human resources into human capital.
Diversely talented, motivated and engaged employees
have always been our key assets.
It is the teamwork that remains the ultimate competitive
advantage, both because it is so powerful and so rare.
If we could get all of us rowing in the same direction
we can dominate the industry against any competition.
We always boosted of our Team spirit and this should
be sustained. The Bank has been maintaining a highly
favorable employer image by creating a performancedriven rewarding work culture; where employees
receive plenty of opportunities to realize their diverse
potentials fully as well as benefit the organization by
demonstrating value creating behaviors. Our Efforts
are focused on the delivery of quality services in all
areas of activities with the aim to add increased value
to shareholders investment and offer highest possible
convenience and benefits to our customers.
Conclusion
In summary, 2015 will be a challenging year yet our
firm commitment towards excellence with outstanding
operational efficiency will make the bank stronger,
set examples for others to follow and create positive
differences. Sustainable business growth, dynamic
and talented human capital driven by values, better
risk management, and involvement of mid-level
management in decision-making process will surely
command some key strength for Prime Bank. We believe
that, as long as we adhere to the right development
strategy, take pro-active actions and forge ahead
determinedly, the year will be full of hopes and harvests.
37
Directors
Report
The Board of Directors of Prime Bank Limited has the
pleasure of presenting the 20th Annual Report and
Audited Financial Statements for the year 2014 together
with the Report of the Auditors to the shareholders.
A brief overview of the world market trend with
the performance of Bangladesh Economy has also
been provided in this Report. A review of this report
would reveal continuous growth of the bank in a stiff
competitive environment.
Global Economy
Global growth in 2014 was lower than initially expected,
continuing a pattern of disappointing outturns over the
past several years. Growth picked up only marginally in
2014, to 2.6 percent, from 2.5 percent in 2013. Beneath
these headline numbers, increasingly divergent trends
are at work in major economies.
While activity in the United States and the United
Kingdom has gathered momentum as labor markets
heal and monetary policy remains extremely
accommodative, the recovery has been sputtering in
the Euro Area and Japan as legacies of the financial
crisis linger, intertwined with structural bottlenecks.
China, meanwhile, is undergoing a carefully managed
slowdown. Disappointing growth in other developing
countries in 2014 reflected weak external demand, but
also domestic policy tightening, political uncertainties
and supply-side constraints.
Several major forces are driving the global outlook: soft
commodity prices; persistently low interest rates but
increasingly divergent monetary policies across major
economies; and weak world trade. In particular, the sharp
decline in oil prices since mid-2014 will support global
activity and help offset some of the headwinds to growth
in oil-importing developing economies. However, it will
dampen growth prospects for oil-exporting countries,
with significant regional repercussions.
Overall, global growth is expected to rise moderately,
to 3.0 percent in 2015, and average about 3.3 percent
through 2017. High-income countries are likely to see
growth of 2.2 percent in 2015-17, up from 1.8 percent in
2014, on the back of gradually recovering labor markets,
ebbing fiscal consolidation, and still-low financing costs.
38
Bangladesh Economy
The prospects of the Bangladesh economy over the near
and medium terms are reasonably good. The strong
domestic demand base, gradually improving investment
climate, decreasing uncertainty and reduced inflation
are expected to lead to better economic performance.
GDP growth is expected to pick up between 6.2 to 6.5
percent in FY15 keeping inflation at a reasonable level
provided that macroeconomic policies must continue to
support sustained expansion in agriculture and industry
together with large investment in infrastructure while
striving to enhance government revenue collection. The
risks of high inflation include global food price volatility,
any shocks to domestic crop production and the knockon impact of upward adjustments in public sector
wages. Fiscal monetary coordination will continue and
the track record of containing Government borrowing
well within budgetary limits is expected to continue. As
such there is no risk of crowding out of private sector
credit flow.
Bangladesh Bank will continue to focus on containing
inflation to its target level of 6.5 percent while providing
sufficient space in its monetary program for lending
to activities which support broad-based investment
and inclusive growth objectives. Bangladesh Bank
is considering to adopt some macro prudential
tools such as counter cyclical capital buffer and
dynamic provisioning to address pro-cyclicality
which would give protection to the banks against a
possible downturn that could result from build up of
systemic risks. Besides, Bangladesh Bank will continue
strengthening financial supervision within the approach
of Integrated Supervision while avoiding regulatory
forbearance. Efforts have been continued to maintain
the countrys external sector stability. Further build up
in foreign exchange reserves in FY15 will continue at
Performance of PBL
The bank maintained satisfactory growth of asset and
liabilities in spite of all challenges during the year 2014.
Trade finance and other ancillary businesses recorded
considerable growth in spite of all odds and economic
turmoil. The bank further expanded its branch network
and alternate delivery channels. New IT based products
and services were introduced.
PBL started its journey in the year 1995 with the firm
commitment of excellence in customer service with
a difference. Its vision remained to be the best private
commercial bank in Bangladesh in terms of efficiency,
capital adequacy, asset quality, profitability along with
strong liquidity.
Principal Activities
39
Offshore Banking
PBL has been offering Offshore Banking facilities
through 3 (three) Offshore Banking Units (OBU)
located in Dhaka Export Processing Zone (DEPZ),
Chittagong Export Processing Zone (CEPZ) and
Adamjee Export Processing Zone (AEPZ). The total
loans and advances of three OBUs reached to USD
110.74 million equivalent to Tk. 8,632 million as on
December 31, 2014 compared to USD 77.81 million
equivalent to Tk. 6,050 million as on December 31,
2013 recording a growth of 43 percent. During the
year 2014, OBUs made operating profit of USD 1.71
million equivalents to Tk. 132.84 million as against
USD 1.43 million equivalents to Tk. 132.34 million in
2013 with a positive growth of 18 percent.
40
Risk Management
PBL has always been in the forefront of implementing
different risk management tools and techniques. The
Risk of any banking institution may be defined as the
possibility of incurring losses, financial or otherwise.
Banking business is in fact a business of risk taking. So
it is vital to manage all these risks efficiently. In todays
challenging financial and economic environment
effective risk management is must for sustainable
Capital Management
Capital management of the bank is based on the
objective to maintain an adequate capital base to support
the projected business and regulatory requirement. This
is done by drawing an annual planned business growth
vis--vis capital requirement. PBL recognizes the impact
of shareholders returns on the level of equity and seeks
to maintain a prudent balance between Tier-I and Tier-II
capital. As per directives of Bangladesh Bank, the banks
are required to maintain capital at 10.00 percent of riskweighted assets under Basel-II. Tier-I capital should be
minimum 5 percent of total capital.
The banks capital fund is divided into two parts- Tier-I and
Tier-II capital. Tier-I includes the equity (paid-up capital,
share premium, statutory reserve and retained earnings)
and Tier-II includes general provision on unclassified
loans and advances, revaluation reserves, unsecured
subordinated debt and exchange equalization account.
Total consolidated capital fund of the bank increased by
Tk. 611.73 million and stood at Tk. 27,424 million during
2014. Tier-I capital grew by Tk. 903.68 million and stood
at Tk. 22,611 million during the year under review. Total
consolidated capital fund is equivalent to 12.68 percent
of total risk weighted assets. More details regarding
capital management are given in the Market DisciplineDisclosures on Risk Based Capital (Basel-II) chapter of
this Annual Report.
Human Resources
PBL is working with a vision of converting human
resources into human capital through appropriate
knowledge, skills, abilities and personal attribution. A
healthy environment has been created where employees
enjoy working with pride. Believing that the human
resources are main elements behind the success and
future sustainability of the bank, the bank is developing
and motivating the workforce with contemporary
HR policies and attractive benefits. The bank is not
only offering a job but also learning, challenging and
rewarding career.
Corporate Sustainability
In respect of corporate sustainability, PBL has focused
on following specific key areas namely, nation building,
enhancement of market place, promotion of the work
Corporate Governance
The bank adheres strictly to the regulatory guidelines
on corporate governance. Disclosures on corporate
governance are provided in the Corporate Governance
chapter of this Annual Report.
Financial Analysis
Total Assets
Consolidated assets of the bank stood at Tk. 256,349.33
million in 2014 as against Tk. 245,507.03 million in 2013.
Total assets of PBL stood at Tk. 254,912.20 million in
2014 from Tk. 243,868.80 million in 2013 registering a
growth of 4.53 percent. The increase in assets of PBL
was mainly driven by growth of customer deposits.
The growth of deposits was used for funding growth in
credit and holding of securities for SLR purpose and as
a primary dealer. The economy witnessed a satisfactory
growth scenario in credit and deposits mobilization.
Assets
2013
Growth of
PBL
%
254,912
243,869
4.53
Deposits
204,838
201,907
1.45
Loans &
Advances
147,367
153,589
(4.05)
41
Liabilities
Investment
PBLs investment increased during the year by Tk.
15,702 million and stood at Tk. 72,642 million as at 31
December 2014. The bank purchased government
treasury bills to cover the increased SLR requirement.
In addition, as a primary dealer PBL had to buy
government treasury bills which were devolved by
Bangladesh Bank.
Deposits
The deposits of PBL grew by 1.45 percent in 2014.
Customer deposits of the bank grew by 1.45 percent.
The growth was supported by branch network and high
standard service provided to customers along with
liability campaign carried out by retail liability team for
mobilization of no cost and low cost deposits. Fixed
deposits remained the main component of deposits
contributing 42.90 percent of the total deposits. Interest
cost of deposit increased to 7.36 percent as against 8.80
percent of the previous year as a result of increase in
rates of high cost term deposits fuelled by the liquidity
position in the market. Scheme deposits decreased by
1.90 percent over the previous year. The clientele group
of the Bank was individuals, corporation, NGO, NBFI,
government bodies etc.
Outstanding
Taka in million
Growth over
%
Mix (%)
2014
2013
2014
2013
28,490
27,407
3.95%
13.91
13.57
2,943
2,081
41.42%
1.44
1.03
Savings
25,106
21,126
18.84%
12.26
10.46
14,013
15,097
-7.18%
6.84
7.48
FDR
Scheme Deposits
Total Deposits
87,881
90,251
-2.63%
42.90
44.70
46,405
45,945
1.00%
22.65
22.76
204,838
201,907
1.45%
100.00
100.00
Shareholders Equity
Consolidated shareholders equity increased by 5.24
percent during the year. PBLs shareholders equity increased
by 6.21 percent during 2014. Paid-up capital of PBL stood
42
Interest Expense
On the other hand, PBLs interest expense decreased
by 11.91 percent during 2014. Interest cost on deposits
was the main component of interest expenses whereas
interest cost on borrowings also had a significant
impact in 2014. Interest cost of deposits decreased to
7.36 percent in 2014 from 8.80 percent.
BDT in million
Sl No
Particulars
2014
2013
% Change
Interest income
18,446
22,011
-16%
Interest expense
(15,574)
(17,678)
-12%
2,872
4,332
-34%
Investment income
6,194
5,582
11%
Non-interest income
2,840
2,968
-4%
11,906
12,883
-8%
5,750
5,409
6%
6,157
7,474
-18%
160
654
-76%
2,674
3,330
-20%
10
11
10
-100%
12
25
-100%
13
Other provisions
52
10
409%
3,280
3,445
-4.80%
887
1,616
-45%
2,393
1,829
31%
14
15
16
Investment Income
PBLs investment income consists of interest / discount
earned on treasury bills / bonds, gain on government
security trading, dividend received on shares and
capital gain from sale of securities of listed companies.
Investment income increased by Tk. 612 million during
the year registering a growth of 11 percent over the
previous year, accounted for 52 percent of the operating
income. Since PBL is a primary dealer, securities were
devolved by the Bangladesh Bank in excess of SLR
requirement. As such interest/discount income became
the main contributor to investment income.
Non-Interest Income
Non-interest income of PBL decreased by 0.75 percent
43
2014
2013
4.15
4.75
2.01
1.99
2.17
2.76
1.14
1.27
88.91
89.99
2014
2013
NPL ratio
7.61
5.09
Industry average
of NPL ratio
9.69
12
100.38%
100.19%
Provision adequacy
General Provision
Adequate provision has been made against unclassified
loans and advances and off-balance sheet exposures as
per regulatory guideline. Provision against unclassified
loans of off-Shore banking units was made Tk. 160 million
during the year. This is to be noted that general provision
is regarded as Tier-II capital of the bank and provides
safeguard against future default as well as supports
business growth by strengthening the capital base.
Other Provisions
Upon assessing the recovery prospects, the bank made
full provision against protested bills and claims amounting
to Tk. 6.5 million, delinquent asset for Tk. 76 million and
impairment loss on investment equity for Tk. 45 million
originated during the course of banking operations.
44
Statutory Reserve
As per Bank Company Act 1991, 20 percent of profit
before tax is required to be transferred to statutory
reserve. As such an amount of Tk. 656 million has been
transferred to statutory reserve.
Dividends
Thus fund available for distribution is Tk. 1,791 million (Tk.
1,737 million from current year profit plus Tk. 54 million
from retained earnings of previous year). In order to
maintain a satisfactory capital adequacy ratio of the
bank, the Board decided to recommend 15 percent cash
dividend for the year 2014. Satisfactory capital fund will
enable the bank to increase business activities.
Remuneration of Directors
The Bank does not pay any remuneration to its Directors.
As per the BRPD circular no. 09 dated 19/09/1996 that
the Chairman may be provided car, telephone, Office
chamber and private secretary. In addition to above,
Directors are entitled to fees and other benefits for
attending the Board, Executive Committee, Audit
Committee and Shariah supervisory committee meeting.
Managing Director is paid salaries and allowances as per
approval of the Board and Bangladesh Bank.
Going Concern
Going concern is one the fundamental assumptions in
accounting on the basis of which financial statements
are prepared. Financial statements are prepared
assuming that a business entity will continue to operate
in the foreseeable future without the need or intention
on the part of management to liquidate the entity or to
significantly curtail its operational activities. Therefore, it
is assumed that the entity will realize its assets and settle
its obligations in the normal course of the business. It
is the responsibility of the management of a company
to determine whether the going concern assumption is
appropriate in the preparation of financial statements.
If the going concern assumption is considered by the
management to be invalid, the financial statements
of the entity would need to be prepared on break up
basis. This means that assets will be recognized at
amount which is expected to be realized from its sale
(net of selling costs) rather than from its continuing
use in the ordinary course of the business. Assets are
valued for their individual worth rather than their value
as a combined unit. Liabilities shall be recognized at
amounts that are likely to be settled.
No indication of possible problems of going concern:
Deteriorating liquidity position of the bank not
backed by sufficient financing arrangements.
Standards of Reporting
45
Control Environment
Shareholders Value
PBL remains fully committed to delivery of higher
shareholders value. The high profitability track record
underpins the value the shareholders derived from
investing in the shares of PBL. The earnings per share
decreased and stood at Tk. 2.32 and return on equity
stood at Tk. 10.08 during 2014. Market capitalization stood
at Tk. 20,175 million as at December 2014 holding the 20th
position among the listed companies and 4th position
among the listed banks in the Dhaka Stock Exchange.
Note of Appreciation
Appointment of Auditors
M/S ACNABIN and Syful Shamsul Alam & Co. Chartered
Accountants were appointed for the year 2014 and will
be completing their terms in the AGM. However, they
are eligible for reappointment for next one year.
46
Chairman
Name
Designation in
the committee
Chairman
Mr. M. A. Khaleque
Member
Director
Member
Director
Member
Independent
Director
Member
Independent
Director
Mr. Khandker
Mohammad
Khaled
Prof. Dr.
Mohammad Aslam
Bhuiyan
Mr. Manzur
Murshed
Status in the
Board
Independent
Director
47
Internal Control
Financial Reporting
Internal Audit
External Audit
Compliance
48
49
CEO/CFO Declaration
To The Board
30th March, 2015
Board of Directors
Prime Bank Limited
Adamjee Court Annex Building-2
119-120 Motijheel Commercial Area
Dhaka-1000
SUB: CEO/CFO DECLARATION TO THE BOARD
The following is provided to the Board of Directors of Prime Bank Limited in our capacity as the persons responsible
for performing the functions of Managing Director & CEO and Chief Financial Officer of the Bank.
In accordance with the notification of Bangladesh Securities and Exchange Commission No.SEC/
CMRRCD/2006-158/134/ Admin/44 dated 07, August, 2012 we declare that for the financial year ended 31 December,
2014:
i)
We have reviewed the financial statements for the year and that to the best of our
Knowledge and belief:
a) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
b) these statements together present a true and fair view of the companys affairs and are in compliance with
existing accounting standards and applicable laws;
ii) There are, to the best of knowledge and belief, no transactions entered into by the Bank during the year which
are fraudulent, illegal or violation of the Banks code of conduct.
50
51
Corporate
Governance Report
The Board of Directors is fully committed to
maintaining the highest standards in corporate
governance, professionalism and integrity in driving
Prime Bank to create and deliver long-term sustainable
shareholder value.
In line with the Banks aspirations, the Board has
continued to ensure that the highest standards in
corporate governance are upheld, with a view to
continuously enhancing stakeholder value, increasing
investor confidence, establishing customer trust and
building a competitive organization, whilst at the
same time not losing sight of its stakeholders by
establishing and overseeing requisite governance
policies and processes.
Board of Directors
Policy on appointment of Directors
Prime Bank Limited does not have its own policy on
appointment of Directors. PBL always complies with
the prescription of the regulatory authorities regarding
appointment of directors. Bangladesh Bank circulars,
BSEC notification, Bank Company Act and Company
Act are strictly followed regarding this matter. In order
to be a member of the Board, a Director other than a
nominated and alternate Director must maintain at least
two percent of the outstanding shares of the company.
The Independent Directors are excused from such
requirements.
As per the Companies Act, 1994, non-executive Directors
are subject to retirement. At least one-third of the nonexecutive Directors shall retire by rotation in every AGM.
As per Bangladesh Banks guidelines, a Director may be
assigned for a period of three years and the term may be
prolonged for another three years period. The Managing
Director is elected for a minimum period of three years
subject to the approval of Bangladesh Bank. The office
of the Managing Director is not subject to retirement by
rotation. The term of an Independent Director is three
years and may be lengthened by another tern of three
years.
Composition of the Board of Directors Nonexecutive Directors and Independent Directors
All directors of the Board are non-executive directors
52
1.
M.A.
M.A.
B.A.
Educational Qualifications:
Ph.D. Economics, Boston University, Boston,
Experience:
Senior Private Sector Specialist, The World Bank.
Consultant, USAID
Present Attachment:
Director (Operations) of Policy Research Institute (PRI)
since 1st January 2014.
Educational Qualifications:
Accountancy Foundation Course, Institute of
Chartered Accountants of England and Wales
1.
GEC A Levels
RIRA, Consultant
Katalyst, Consultant
53
54
Approving changes
organization structure
in
the
corporate
Directors Remuneration
Directors are not eligible to any remuneration other
than attendance fee for the board and its Committee
Meeting. As per BRPD Circular No. 03, dated January 18,
2010, directors are eligible to the remuneration of BDT
5,000 for each Meeting.
Chairman of the Board
The Chairman of the Board is elected to the office of the
Chairman by the directors. The Board considers that the
Chairman is independent.
Role and Responsibilities of the Chairman
The role and responsibilities of the Chairman are:
55
56
f.
57
Audit Committee
Chairman is an independent Non-Executive Director
The Chairman of the Audit Committee is a BSEC
approved independent non-executive director,
who is not involved in the day to day operations
of the bank. He is an experienced individual and
competently qualified to qualify to be the Chairman
of the Audit Committee.
Terms of Reference (TOR) and empowerment to
investigate employees
The Audit Committee established a terms of reference
(TOR) so that it could function effectively and
smoothly. The TOR was created to define the roles and
responsibilities of the Audit Committee. The committee
is also empowered to investigate/question employees
and retain external counsel when required.
Composition of the Audit Committee
As per BSEC notification no. SEC/CMRRC/2006-158/129/
Admin/44 dated 7th August 2012 on Corporate
Governance; the current Audit Committee is consisted
of 5 members. The Audit Committee is constituted of 2
Directors and 3 Independent Directors. All members of
the Audit Committee are non-executive directors.
All members suitably qualified
All members of the Audit Committee are very well
qualified and have years of experience in the banking
sector. They are also very competent regarding
education and come from a variety of educational
backgrounds, which brings diversity in the committee.
PBL does have one director in the Audit Committee that
has extensive knowledge in the finance and accounting
field, and has been very active in all the meetings of the
committee as well.
Head of Internal Audits access in the Audit
Committee
The Head of Internal Audit always has access to the
audit committee and can raise his concerns whenever
required.
Terms of Reference
To steer the Audit Committee forward, a terms of
reference (TOR) has been established. According to the
58
and
59
Other Responsibilities
60
61
Internal Control
A system of effective internal controls is a critical
component of bank management and a foundation
for the safe and sound operation of the organization. A
system of strong internal controls can help to ensure that
the goals and objectives of a banking organization will
be met, that the bank will achieve long-term profitability
targets, and maintain reliable financial and managerial
reporting. Such a system can also help to ensure that
the bank will comply with laws and regulations as well
as policies, plans, internal rules and procedures, and
decrease the risk of unexpected losses or damage to
the banks reputation.
Internal control is a process affected by the board of
directors,senior management and all levels of personnel.
It is not solely a procedure or policy that is performed
at a certain point in time, but rather it is continually
operating at all levels within the bank. The board of
directors and senior management are responsible for
establishing the appropriate culture to facilitate an
effective internal control process and for monitoring
its effectiveness on an ongoing basis; however, each
individual within an organization must participate in
the process. The main objectives of the internal control
process can be categorized as follows:
1. Efficiency
and
effectiveness
(performance objectives);
of
activities
62
63
Credit Risk
Liquidity Risk
Operational Risk
Strategic Risk
Reputation Risk
64
Handling critical risks (risks that require followup and further reporting)
and
65
Remuneration Committee
Composition and Charter
Prime Bank ltd. has a Management Committee which
comprises Managing Director, Deputy Managing
Directors and other Heads of Division to review, discuss
and decide on important business issues. In addition
to the regular roles and responsibilities, the Committee
assist in formulation of remuneration related policies
and practices in alignment of the Banks short and longterm business objectives.
The roles and responsibilities of the committee are the
followings:
66
Human Capital
Employees are the key driving force of Prime Banks
continuous success
A group of motivated and engaged employees with
diverse talents are the key asset of Prime Bank. Prime
Bank is highly reputed in the market as an employer
of choice. The Bank has positioned itself with a
performance-driven rewarding work culture; where
employees are treated with respect and receive widened
opportunities to realize their diverse potentials fully as
well as benefit the organization by demonstrating value
creating behaviors.
To ensure long term sustainability, Prime Bank has a
special focus on skill and merit based recruitment and
selection process, highly competitive remuneration
package, adequate training and development programs,
career growth with succession planning, highperformance culture and pleasant working atmosphere
where employees are able to escalate their grievance
and receive counseling.
Recruitment and selection process with bestfit ethos followed by clearly defined policy and
procedures
The recruitment and selection of Prime Bank follows the
best fit approach. As per Banks requirement Human
Resources Division ensures that the potential candidates
are properly assessed, selected and placed on-time as
per required competencies (KSA Knowledge, Skill &
Attributes) and experience. Prime Bank has a recruitment
policy that clearly states the criteria and procedures
to recruit fresh and lateral entrants. The Bank has a
Management Trainee Program which is aimed to recruit
outstanding fresh graduates and develop them as the
future leaders of Prime Bank Ltd.
Ensuring
adequate
learning
&
development
opportunities through effectively designed training
programs and on-the-job experience PBL continuously
thrives to transform Human Resources to Human
Capital through appropriate learning and development
initiatives in every aspects of work area. HR Division
regularly undertakes effectively designed training
programs targeting the right group of employees
through proper training need assessment. The Bank has
a separate HR Training & Development Centre.
67
68
Board
Meeting : 2014
Sl
No.
Name of Directors
Designation
Chairman
11
10
01
Tk.50,000.00
Mr. M. A. Khaleque
Vice Chairman
17
10
07
Tk.50,000.00
Mr. Khandker
Mohammad Khaled
Vice Chairman
17
07
10
Tk.35,000.00
Director
17
08
09
Tk.40,000.00
Director
17
12
05
Tk.60,000.00
Director
17
12
05
Tk.60,000.00
Director
17
15
02
Tk.75,000.00
Director
17
13
04
Tk.65,000.00
Director
17
01
16
Tk.5,000.00
Director
17
05
12
Tk.25,000.00
6
7
8
9
10
11
Director
17
16
01
Tk.80,000.00
12
Director
17
10
07
Tk.50,000.00
13
Director
17
14
03
Tk.70,000.00
14
Director
17
16
01
Tk.80,000.00
15
Director
17
05
12
Tk.25,000.00
16
Director
17
07
10
Tk.35,000.00
17
17
12
05
Tk.60,000.00
18
17
13
04
Tk.65,000.00
17
17
Tk.85,000.00
06
02
04
Tk.10,000.00
19
20
Independent
Director
Independent
Director
Independent
Director
Director
69
Executive Committee
Meeting : 2014
Sl
No.
Name of Directors
Designation
Chairman
15
14
01
Tk.70,000.00
Vice
Chairman
23
12
11
Tk.60,000.00
Member
15
08
07
Tk.40,000.00
Member
20
15
05
Tk.75,000.00
Member
23
19
04
Tk.95,000.00
Member
23
17
06
Tk.85,000.00
Member
15
11
04
Tk.55,000.00
Director
07
07
Tk.35,000.00
Director
03
03
--
Director
08
08
Tk.40,000.00
Director
08
08
--
9
10
11
Audit Committee
Meeting : 2014
Sl
No.
70
Name of Directors
Designation
Chairman
10
10
Tk.50,000.00
Mr. M. A. Khaleque
Member
10
Tk.30,000.00
Member
10
Tk.25,000.00
Member
10
10
Tk.50,000.00
Member
10
10
Tk.50,000.00
Name of Directors
Designation
Chairperson
04
04
Tk.20,000.00
Director
04
01
03
Tk.5,000.00
Director
04
03
01
Tk.15,000.00
Director
04
01
03
Tk.5,000.00
Director
04
01
03
Tk.5,000.00
ii) Shareholding of CEO, CFO, Company Secretary & Head of Internal Audit:
SL
No.
% of Shares as at
31.12.2014
Name of Executives
1.
2.
3.
4.
2
3
4
5
6
7
Status
% of shares as at 31.12.2014
Chairman
2.00
(Shareholding of East Cost
Shipping Lines Ltd.)
Vice Chairman
Vice Chairman
Director
Director
Director
Director
2.78
2.12
2.00
3.69
2.01
2.00
71
Director
2.70
Director
2.02
(Shareholding of Uniglory
Cycle Industries Ltd.)
10
11
12
13
14
15
16
Director
Director
Director
Director
Director
Director
Director
2.03
2.01
2.27
3.13
2.00
2.51
2.00
17
Independent Director
18
Independent Director
0.003
19
Independent Director
20
Managing Director
iv) Shareholding of Senior Executive (Top five salaried executives other than CEO, CFO, CS, HIA):
SL
No.
Name of Executives
% of Shares as at
31.12.2014
1.
2.
3.
4.
5.
v) Shareholders holding ten percent (10%) or more voting interest in the company (name wise details) - Nil.
72
73
1.1
1.2
Independent Director
Independent director: At least 1/5th of the total
number of directors
1.2 (ii)
1.2 (ii) a)
1.2 (ii) b)
1.2 (ii) c)
1.2 (ii) d)
1.2 (ii) e)
1.2 (ii) f)
1.2 (ii) g)
1.2 (ii) h)
1.2 (ii) i)
1.2 (iii)
1.2 (iv)
Compliance Status
Remarks
(Put in the appropriate column) (if any)
Complied
1.0
1.2 (i)
74
Title
Not complied
Condition
No.
1.2 (v)
1.2 (vi)
1.3
1.3 (i)
1.3 (ii)
1.3 (iii)
1.4
1.5
Title
Compliance Status
Remarks
(Put in the appropriate column) (if any)
Complied
N/A
1.5 (i)
1.5 (ii)
1.5 (iii)
1.5 (iv)
1.5 (v)
N/A
1.5 (vi)
1.5 (vii)
1.5 (viii)
1.5 (ix)
1.5 (x)
1.5 (xi)
1.5 (xii)
Not complied
N/A
N/A
75
Condition
No.
1.5 (xiii)
1.5 (xiv)
1.5 (xv)
1.5 (xvi)
1.5 (xvii)
1.5 (xviii)
1.5 (xix)
1.5 (xx)
1.5 (xxi)
1.5 (xxi) a)
1.5 (xxi) b)
1.5 (xxi) c)
1.5 (xxi) d)
1.5 (xxii)
1.5 (xxii) a)
Complied
1.5 (xxii) b)
1.5 (xxii) c)
2.1
2.2
3
Not complied
2.0
76
Title
Compliance Status
Remarks
(Put in the appropriate column) (if any)
Condition
No.
3 (i)
3 (ii)
3 (iii)
3.1
3.1 (i)
3.1 (ii)
3.1 (iii)
3.1 (iv)
3.1 (v)
3.1 (vi)
3.2
3.2 (i)
3.2 (ii)
3.3
Title
Compliance Status
Remarks
(Put in the appropriate column) (if any)
Complied
N/A
3.3 (i)
3.3 (ii)
3.3 (iii)
3.3 (iv)
3.3 (v)
3.3 (vi)
3.3 (vii)
3.3 (viii)
3.3 (ix)
Not complied
77
Condition
No.
Title
3.3 (x)
3.4.1
3.4.1 (ii)
3.4.1 (ii) a)
3.4.1 (ii) b)
3.4.1 (ii) c)
3.4.1 (ii) d)
3.4.2
3.5
4
4 (i)
4 (ii)
4 (iii)
N/A
NIL
NIL
NIL
4 (iv)
Broker-dealer services.
4 (v)
Actuarial services.
4 (vi)
4 (vii)
4 (viii)
4 (ix)
5
5 (i)
78
Complied
3.4.
3.4.1 (i)
Compliance Status
Remarks
(Put in the appropriate column) (if any)
Not complied
Condition
No.
5 (ii)
5 (iii)
5 (iv)
5 (v)
6
6 (i)
6 (i) a)
6 (i) b)
6 (ii)
7
7 (i)
7 (ii)
Title
Compliance Status
Remarks
(Put in the appropriate column) (if any)
Complied
Not complied
79
Green Banking
Report
80
8. Economic losses.
1- The five hottest years on record have all occurred
since 1997.
Heat-trapping gases emitted by power plants,
automobiles, deforestation and other sources are
warming up the planet. In fact, the five hottest years on
record have all occurred since 1997 and the 10 hottest
since 1990, including the warmest years on record
2005 and 2010. High temperatures are to blame for
an increase in heat-related deaths and illness, rising
seas, increased storm intensity etc. During the 20th
century, the Earths average temperature rose one
degree Fahrenheit to its highest level in the past four
81
82
2013
2014
Number of branches
141
140
140
139
138
137
136
135
134
134
133
132
131
2013
2014
83
84
Green Marketing
Prime Bank Limited is using their web portal for
advertising new products as well as the features of
existing products to capture the market and also it will
penetrate to get new customers. Moreover, customer
can contact the respective desk to get more information
in this regard. PBL, also convey the various offers of
different Credit Cards through SMS.
Green Financing
The Green Finance Cell of PBL was formed exclusively to
look after the Bangladesh Bank enlisted green financing
products. PBL financed various projects which are
environment friendly. During 2014, the bank has extended
finance of BDT 6,757.46 million in 24 projects having ETP. The
bank has further strengthened its green banking initiatives
by financing environment-friendly Hoffman Kiln and Zigzag
based automated brick fields, which contribute towards a
greener climate. PBL has also disbursed 32.00 million to set
up 4 (four) Hybrid Hoffman Kiln (HHK) projects.
Green Finance
Amount in million
8000
6757.46
7000
6000
5000
4000
3000
2000
1000
448.77
0
2013
2014
85
management team
86
Senior
Management
Habibur Rahman
Deputy Managing Director
87
88
Management
Committee
Asset Liability
Committee
89
Management
Teams
Agriculture Banking
Anti-Money Laundering
90
Board Secretariat
Card Division
91
92
Financial Administration
Division (FAD)
93
94
IT Operations Division
Legal Division
Marketing Division
95
Monarch
Operations Division
Recovery Division
96
SME Banking
97
Treasury Division
98
SME Branches
Network
Islamic Banking
Division
Card Division
M-Commerce
ADC
Department
Retail Banking
Division
SME Credit
SME Banking
Division
Treasury
Front office
H.O. Corporate
Banking Team
Branch Managers
Corporate Banking
Head of Wholesale
Banking Division
Units
Corporate
Liability
Marketing
Lease Finance
Unit
Export Finance
Unit
Department
General Credit
Unit-2
General Credit
Unit-1
Treasury
Mid-Office
Risk Management
Division
Credit Admin
Division
Board
Secretariat
Operations Division
Recovery Division
Legal Division
IT Operations
Department
Agriculture Support
International Division
Proprietary
Investment
Department
IT Audit
Department
Compliance
& Monitoring
Department
Internal Audit
& Inspection
Department
MDs
Secretariat
Facility Management
Division (Previously
L&SSD)
Trade Finance
Centralization
Department
Credit Risk
Management
(CRM) Division
Managing Director
Anti Money
Laundering Cell
Capital Market
Division
Marketing Division
Research
& Development
Project Management
Office
Human Resources
Division
IT Infrastructure &
Planning Department
Brand
Communication
Department
Public Relations
Department
Strategic Planning
& Business
Promotion Dept
Corporate Organogram of
Prime Bank Limited
99
Group Corporate
Structure
Prime Bank Investment
Ltd. (99.99%)
Bangladeshi
Companies
Prime Bank Securities
Ltd. (95%)
Overseas Companies
100
Management
Discussion & Analysis
The countrys scheduled banks in the year 2014 showed
a diverse performance as some banks posted well
operating profits while other banks lost their success
due to the political instability in the country. The banking
sector faced hardship during the year with the political
situation, which led to low pick up of investments and
in the long term led to low credit growth through the
year. Domestic credit growth only grew by 11.6 percent
till June 2014, and has not been significantly high by the
end of the year. Both credit to the public and private
sector have been sluggish throughout the year, which
did not help the banking industry. Lower credit growth
with increasing NPL has made it a difficult year for all
banks in Bangladesh. Export receipts advanced up
by 17.65 percent in December 2014 over November,
recording a 1.56 percent growth in July-December 2014
compared to the same period in 2013. Import payments
based on shipment data increased by 16.64 percent
during July-November 2014 over the equivalent period
in 2013. Import L/C opening data ascended by 14.77
percent during July-November 2014,which suggests
imports may be high in the upcoming year. Treasury
operations were successfully managed in the last year
which achieved profits similar to last year.
Syndicated financing
Real-time
online
banking
services
through
core
Corporate
Banking
Division
In line with the countries movement towards developing
the country from its present rank, Prime Bank Limited
branded itself as the countrys leading corporate base
by providing a wide range of financial services, products
and offering specialist advice to corporate clients to meet
assorted demands of shifting market scenario as well as
emerging markets. PBL has enhanced its footprints into
Edible Oil Refinery, Vessel financing, Packaging, Food,
101
rs
he
Ot
Professional and
Miscellaneous
Services 4%
14
%
Housing Servi
ces 10%
5%
s1
ction
Constru
9%
ice
v
er
eS
ad
Tr
Industry 43%
RM
tile
Tex
1%
)2
ills
gb
din
18%
clu
(in
Others 8%
Pharmaceutical 3%
al
er
in
ng
m
ic
all 2%
t
e 1
m s
n- uct
No rod
p
Ship breaking 3%
turing 11%
Food manufac
Ship Building 2%
Ot
ind her m
us
trie anu
s 7 fact
%
uri
Rubber
products 2%
102
103
Construction Equipments
Apart from this, the Bank extended loans to 12 NonBanking Financial Institutions (NBFIs) against which total
outstanding was Tk. 1.52 billion at the end of the year
2014.
SME Banking
SMEs play a dominantly important role in the national
economy of Bangladesh by making up over 90 per cent of
industrial enterprises, providing employment to industrial
workers and contributing industrial value addition to
gross domestic product (GDP). The relative SME share
in manufacturing value-added is much higher than the
manufacturing industries sector. Further, as important
sources of new business are created and developing new
entrepreneurial talents arise, these industries provide
104
Commission/incentives
based
on
the
performances of Direct Sales team, Dedicated
collection team for SME loan.
ice
rv
Se 18%
ln
Khu
Ra
jsh
Rangpur
3%
ah
i
Sylhet 3
%
9%
a 9%
g
urin
cut %
a
f
nu 30
Ma
Dhaka
59%
g
gon
itta 17%
Ch
o
Mic r
7%
JICA
11%
AB
DF
32 und
%
l
era
Gen
B
B
36%
3%
Small
53%
P
8M
G
E
Medium
40%
SME segment.
Banks exposure is thus well diversified among 5,600
customers to different sectors viz. cottage, handy crafts,
power loom, auto parts, garments accessories, rice mills,
light engineering, commodity financing, textile mill,
permitted brick field, ship breaking/ scrap iron, poultry
farming, fish processing/ dry fish, animal feed, agrobased and agro-processing industry, furniture, hospital
/ diagnostic center, packaging industry, leather goods
sector, jute goods and jute-mixed goods, computer
software and ICT goods, green financing-renewable
energy etc.
Prime Bank is operating SME business through 18 SME/
Agri. branches as well as through Direct Sales Executives
deputed at conventional branches all over Bangladesh.
Besides, the branches network consisting of 122
branches is playing a significant role in developing the
SME sector.
105
106
Rice Mill
Handicraft
107
Borni Handicraft
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108
RETAIL
BANKING
DIVISION
Retail Banking Division plays a momentous role in
the Bank by securing a large base of customers,
deposits and lending. It also prepares the retailbanking business for far-reaching transformations in
its operating environment, organizational structures
and customer dynamics by facilitating the innovation
of retail products and services in the market.
Through delivery channels like Asset and Liability Teams,
Retail Value Center, Premium Banking, Service Quality
and Payroll Services the division wires the changes in
the retail banking business. Each and Every member
under this umbrella, contributes to implement a shared
vision of the business, and optimizes the pooling of
resources and building a sound portfolio to the epitome
of excellence.
2014 showed the tremendous value of the breadth and
diversity of divisions earnings profile, and it has seen
continued evidence of the strong fundamentals which
are essential for longer term growth.
After a successful year in 2014, the Division has much
more to do; expecting that the operating environment
to remain challenging. But, there is every reason to feel
positive and confident about the prospects that this
Division will make over the Prime Bank Ltd. as a bank
Our Customers
The division seeks to support the day-to-day banking
needs of the customers who can be categorized as:
Personal
Premier/High Net Worth Customers
Contributing To Income By
Retail
Banking
Division
delivers
significant
109
Sustaining Business By
14000
Supporting
society
through
responsible
lending
BDT Million
12000
10000
10936.4
11303.3
2011
2012
12138.3
12577.2
2013
2014
9293.5
8000
6000
4000
2000
0
2010
red
cu 47%
e
S an
Lo
red
cu %
e
s
Un n 50
a
Lo
RETAIL ASSET
A Leading Player In Responsible Lending
Keeping all the uncertainty in mind, the timely executed
decisions and foresight of the Retail Banking Division
Semi Secured
Loan 3%
Figure: Composition of Retail Asset Portfolio as on 31st December, 2014
12,577.20
RETAIL LIABILITY
Portfolio
15
requirements
110
Procured
45,786
Fund booked.
153
51,826
Outstanding
Amount
of
BDT
144
Million
No. of CASA
120,000
99,548
100,000
97,612
80,000
65,929
60,000
40,000
20,000
BDT
2012
2013
2014
4513.35
4500
4000
3725.77
3496.79
3500
3000
2500
32,773
2000
1500
1000
500
0
2012
2013
2013
2,469
18,222
Loan in 2014
6,000
43
111
UNDERSTANDING AND
FUTURE
Absolute
Prestige
Banking Monarch
introduced
service
Premium
which
is
banking
named
as
In 2014,
Exclusive Services
Tejgaon
Family Benefits
Prioritized Banking
112
Banking
Diversified Lifestyle
Fantastic Shopping Discount At
- Leading Local & International Stores
- Home Dcor Outlets
- Food & Beverage Outlets
Special Rates on Room Booking at Selected Hotels
Discounts at Salons/Spas and Health Clubs
Invitation to Glamorous Premier Shows & Events
Exclusive Health Packages at Reputed International
Hospitals like Bangkok, Parkway& Raffles Hospital.
Travel Benefits
Special Discount at Antique Luxuries - Jewellery
Stores
The following qualification criteria have been set forth
as a pre-requisite of becoming a Monarch Customer.
Category
Eligibility Criteria
Prime Bank
Limited
BDT 20 Lac
& above.
FD Opening Balance
(Individual/Joint Account)
BDT 30 Lac
& above.
3 persons.
BDT 10 Lac
per person.
Home loan
BDT 70 Lac
& above.
Card Division
The day is not so far away when people will feel
comfortable to hold a Credit Card rather than cash
money. Plastic card is the sharp weapon of future banking
business. As it is convenient, safe and prestigious to
carry with, all-class customers are rushing for it. Banks
have also introduced a number of credit cards which
have already spurred the competition of growing card
market. Prime Bank Limited is a leading name in plastic
card market. Get more from life with Prime Bank Credit
Cards it is the motto of Prime Bank Cards. Every day
we try to add more value to our existing customers,
we ensure convenience while they shop, dine, stay at
hotels, roam cities and countries or anytime they swap
the card anywhere. No need to mention, credit cards
have become a part of metro lifestyle & payment mood.
113
Year
Key Performance
Indicators
2011
2012
2013
Card Base
57,741
67,947
76,442 86,435
13.07%
Advance (BDT in
million )
750
915
1,042.20 1131.75
8.59%
Operating Profit
(BDT in million )
65.37
80.23
94.10
2014
100.78
% Growth
Over 2013
7.09%
The last but not the least word that is to be marked for
the past year is our sharp outlook in grabbing every
business threshold that made it possible to achieve the
business KPIs of Card division.
International
Division
Foreign Remittance
The consistent growth of foreign remittance inflow for
Prime Bank Ltd. further progressed in 2014, enabling the
Bank to contribute in routing a total of Tk. 3,948.35 Crore
of foreign remittance from different parts of the world.
The regular inflow of foreign remittance has brought
stability in the foreign currency administration of the
Bank. Prime Bank is maintaining years of effective and
fruitful relationship with the renowned exchange houses
of Saudi Arabia, UAE, Malaysia, USA, Italy, South Korea,
Oman and the global players Western Union Money
Transfer & RIA Financial Services. Inclusion of AlAnsari
LLC in the network in 2014 has further extended the
strength of Prime Bank for sourcing remittance from
UAE. Two of our deputed officials are working in UAE
towards increasing volume of remittance from UAE.
Furthermore, a good numbers of officials have been
stationed in Singapore and UK to promote and procure
foreign remittance from expatriate Bangladeshis. In
2014, amount of inward foreign remittance received
from Saudi Arabia was more than 40%, while PBLs fully
owned subsidiaries in Singapore and UK added more
than 20% and 10% remittance respectively.
The NRB Banking Department of the Bank backed
by state-of-the-art IT facilities has given their utmost
dedication and effort towards the sourcing and speedy
distribution of foreign remittance throughout the year
2014. As a part of Banks strategic initiative to handle
increased volume of inward foreign remittance, the Bank
has continuously proved its efficiency and competency
in speedy delivery of inward remittance to the beneficiary
through its excellent distribution network comprising
114
Correspondent Relationship
Prime Banks wide correspondent network now includes
638 members, covering 277 banks spread across
75 countries as on December 31, 2014. The Bank is
successfully maintaining such relationships around
the world to facilitate international trade transactions.
Prime Bank maintains 37 Nostro Accounts in 10 major
currencies with reputed international banks around the
world in all of the important global financial centers.
Prime Bank also offers Vostro account service to foreign
correspondents. PBL enjoys sufficient credit lines from
its correspondents, including Credit Limit under TFFP
of Asian Development Bank (ADB) and International
Finance Corporation (IFC), for adding confirmation
to letter of credit as and when needed. During 2014,
Prime Bank availed bilateral loan in USD from IFC,
FMO and other Correspondent Banks for use in trade
finance transactions through Offshore Banking Units.
Offshore Banking
Prime Bank is offering Offshore Banking facilities through
3 (three) Offshore Banking Units (OBU) located in Dhaka
Export Processing Zone, Chittagong Export Processing
Zone and Adamjee Export Processing Zone. Total Loans
and Advance of three OBUs reached to USD 110.74
million as on December 31, 2014 compared to USD 77.81
million as on December 31, 2013, recording a growth of
42.32%. During the year 2014, OBUs have made a Profit
of USD 1.71 million as against USD 1.43 million in 2013.
Treasury
Treasury is a vital and indispensable part of every Bank.
Prime Bank Treasury Division is not an exception. Over
the last couple of years Prime Bank Treasury has been
continuously performing very well despite adversaries &
economic turmoil globally as well as within the country.
The Year 2014 was unlike the previous year. There was
no such political turmoil within the country that was
observed in 2013; although it took almost half of the
year before confidence of the business entities started
to grow. But once people were convinced about the
encouraging environment, they started investing again,
which was witnessed through growth in import, export
and remittance that started from third quarter of 2014.
In the year 2014 Treasury achieved all of its KPIs
successfully, even exceeded in some areas especially
in Liquidity Management, Primary Dealers Operations,
Government Securities Trading & Foreign Currency
Dealing and Investment.
Prime Banks Treasury primarily focuses on expanding
transaction volume, utilizing different market
opportunities within all risk and regulatory limits,
strengthening ALM operations and creating a diversified
fund management channel by accurate assessment of
domestic and overseas market trends and movements.
Through its proper Asset Liability Management and
efficient trading operations, Treasury Division strives to
minimize market and liquidity risks. On the other hand,
for enhancement of its profitability, Treasury makes
every effort for proper assessment of the market trend
and allocation of its assets and liabilities in line with the
market trend.
In most of 2014, the Local Money Market as well
as Foreign Exchange Market was liquid. This was
primarily due to slow down in our local investment. In
this situation, to support countrys economic growth
and to revive investors confidence, Bangladesh Bank
took several steps under inclusive banking, specially
credit accessibility for agricultural as well as small and
medium enterprises (SME), empowerment of women,
green banking, modernization of financial sector,
Mobile Banking, e-commerce, export promotion and
liberalizing foreign exchange transaction to ensure
steady economic growth while containing inflation.
Prime Bank Treasury, at the very beginning of the year,
through its own market research and market intelligence
anticipated the situation very correctly and adopted an
investment and fund management strategy accordingly.
115
116
Treasury Income
Particulars
2014
2013
876.41
930.44
83.11
91.89
1.89
0.90
165.66
142.51
4,998.19
4,650.71
56.71
96.61
255.90
152.25
1,029.56
672.17
46.57
21.71
Total
7,514.01
6,759.19
Growth
11.17%
Treasury Income
8000
7000
6759.19
In million
7514.01
6000
5000
4000
3000
2000
1000
0
2013
2014
All Branch
Uncovered
2%
Covered
98%
117
Deposit
Investment
Al-Wadiah
Mudarabah
Savings
Term
AWCA
MSA
MSND
MTDR
Scheme
MCSS
MESS
MHSS
MMBDS
Bai
Ijara
Share
Scheme
Bai-Murabaha
Bai-Muajjal
Bai-Salam
Leasing
Higher
Purchase
Musharaka
Mudaraba
Manjeel
Burak
Asbab
Shifa
Financial analysis
Nationwide, Islamic banking earned around 20% market
share of the banking sector (private commercial banks)
118
HPSM
Alternative
Delivery
Channels
Evolution of ADC
SL.
ATM Machine
Started from
January 2008
Status As on 31.12.2014
160
April 2008
1,91,000
January 2011
1,85,000
November 2008
31,000 users
SMS banking
July 2010
25,000 users
Phone Banking
May 2011
3,500
Information Kiosk
May 2011
04
May 2012
71,000
905
119
ATM Booths
Prime Bank Ltd. entered into the digital banking arena by launching ATM services in January
2008. At the end of 2014, there are 160 live ATMs across the country. We accept MasterCard,
Visa Card, JCB Card, Prime Cash and PBL Proprietary Debit Card under NPSB network banks
card.
2.
ATM Card /
Debit Card
ATM Card service of PBL was started from March, 2008 and by the end of 2014 the number
of ATM Cards (proprietary) is 191,000.
MasterCard Debit Card was launched in January 2011 and the number of MasterCard Debit
Card reached to 185,000 at the end of December 2014. PBL joined NPSB network in the year
2014 under the supervision of Bangladesh Bank. Also PBL Debit Cardholders can enjoy the
cash withdrawal facility from our 160 live ATMs as well as other ATMs under NPSB Network.
At the end of 2014 the banks total number of Debit Card is 376,000.
3.
Prepaid Card DCL Prepaid card is a value added service for the Member of Dhaka Club. We have issued a
(Dhaka Club) total number of 905 cards.
4.
Internet
We have launched Internet Banking Service, ALTITUDE in the year 2012 as one of the pioneers
Banking
Bank. ALTITUDE is becoming popular among the Customers of PBL for its unique inter-intra
(ALTITUDE)
Bank Financial Services. Moreover, using ALTITUDE, customers can view the account details;
pay utility bill, credit card bill of PBL and other Banks from anywhere, anytime. To meet and
exceed the expectation of its customers, ALTITUDE is getting diversified with more and
unique features which will attract more customers in the coming days and will improve the
service experience of the existing customers. At the end of the year 2014, the total number
of customers of ALTITUDE was around 31,000.
5.
SMS
As a modernized bank we introduced SMS Banking services to its valued customers since July
Banking
2010. Number of users is about 25,000 and increasing day by day. SMS Banking comprises
SMS PUSH-PULL, Bulk SMS and Alert SMS Service. By PUSH-PULL services registered
customer may receive their account balance, mini statement, and currency exchange rate
information at anytime from anywhere using their mobile handset.
Through Bulk Push SMS we acknowledge our customers regarding services and different
promotional activities. By SMS alert our customer will get alert message instantly for the
transaction that took place in their account.
6.
Prime Cash
As a part of inclusion banking, Prime bank introduced Prime Cash service on May 20, 2012.
(Biometric
Its easy to use, unique and its the first ever in the country. Based on Biometric Smart Card,
Smart Card) the service is highly secure and authenticates transaction matching cardholder thumb
impression only.
Prime bank issued around 71,000 number of Prime Cash card through its 1,174 agents
including 138 branched network (PBL branch) in different location of the country including
urban and rural area. In this service our main customers are students, farmers, garments
worker, rickshaw puller, fisher man, driver, labor etc. Prime Cash cardholders can enjoy
different banking service like Deposits, Withdrawal, Fund transfer, ATM, Mobile top-up and
Salary disbursement using Prime Cash Card. We also receive huge foreign remittance by
Prime Cash card amounting to Tk. 2 crore in the year 2014 from major ten countries around
the world. Through Prime Cash service, card holder receives their foreign remittance from
different countries sent by their relatives.
7.
Information
Prime Bank Limited installed KIOSK on June, 2011 for its debit card holders. Through KIOSK
KIOSK
system a customer can avail of services, such as, (a) Balance enquiry (b) Mini-statement
(c) Utility bill payment of Grameen Phone, Airtel, ROBI, Banglalink mobile operator (d) PIN
change etc. Prime Bank Ltd. has 4 KIOSK systems.
120
8.
Phone
Banking
Four our valued customers to easily access some availing facilities 24/7 from home or
outside of the bank, Prime Bank Limited launched Phone Banking Service in May 2011. PBL
Phone Banking Service provide various services to the customers, such as, balance enquiry,
activation/block debit card, available limit enquiry/total outstanding/minimum payable
amount/last date of payment of Credit Card through IVR (Interactive Voice Response)
system. Moreover, Phone Banking Service has been popular day by day. At the end of
December 2014, there are around 3,500 users is enjoying this service.
9.
Bank POS
As a part of continues development of ADC Services, a new service has been introduced as
Service
Bank POS to expedite cash withdrawal through Debit Card facilities from the branches when
there is no cheque book with the customer. There are 20 bank POS in various branches of
10.
Cash Back
Service
11.
JCB Debit
Card
PBL.
This is another value added service for our valued customers. Cash Back service allows
PBL Debit Cardholders to meet the instant requirement of Cash through POS terminals of
selected merchant points at the time of shopping in exchange of prescribe charges. We
have started this service from Jan 16, 2014. At present we have 20 outlets under this service.
We have the privilege to launch this new Brand of Debit Card in Bangladesh for the 1st time
as no other Bank has officially issued this card as yet. We are already acquiring this Card at
our ATM/POS terminals and very soon we are going to issue the Debit Card.
With the help of this newly branded card PBL Debit Cardholders can enjoy the cash
withdrawal facility from our 160 live ATMs as well as other ATMs under NPSB Network in
exchange of a prescribed charge.
12.
Dual
Currency
Platinum
Debit CardMONARCH
Indeed, this is a matter of profound pleasure to announce that Prime Bank Limited is
launching Monarch-a Premium Banking Service on October 27, 2014 to provide hassle free
services to its esteemed customers. Its an exclusive service that is embarked for a privileged
few who maintain an average given balance above a certain threshold limit in their account.
This card can be used in any MasterCard Location worldwide. Two accounts can be tagged
with a single card; one is BDT another is USD (RFCD) only.
13.
Easy Cash
(Mobile
Banking)
Prime Bank Limited performed the soft launching of Mobile Banking Service on March 25,
2012. But the commercial launch is delayed due to some technical issues. However, for
providing quality service and to fulfill the goal of financial inclusion, Prime Bank Limited
is working to launch the Mobile Banking Service in a more convenient and effective way.
Considering the current market practices and vulnerabilities, PBL is on its way to prepare itself
to provide the best quality Mobile Financial Service to the customers in terms of Security,
Service Quality and Convenience. We hope that we will be able to launch the Mobile Banking
Service shortly once the required service quality is ensured.
14.
Cash Deposit We have the privilege to launch Cash Deposit Machine (CDM) as per Management desire. By
Machine
using this service a customer can deposit their money by 24/7. The installation of the CDM
(CDM)
Machine is under process.
Centralized
Clearing
Cell (CCC)
To ensure a modern payment and settlement system
infrastructure for the country, Bangladesh Automated
Clearing House (BACH), the first ever electronic clearing
121
2013
2013
1000000
10000000
8000000
800000
6000000
600000
4000000
400000
2000000
200000
2014
1200000
12000000
No. of Cheuqes
(Outward)
No. of Cheuqes
(Inward)
IT Infrastructure
& Planning
Information Technology Division
Information Technology (IT) Division of PBL was
established at the beginning of its banking operation.
The division is well equipped not only with technology,
but also with a dedicated professional workforce which
has been built-up for support as well as development
of new satellite applications. Information technology
of PBL enables sophisticated product development,
better market infrastructure, implementation of reliable
techniques for control of risks and helps the financial
intermediaries to reach geographically distant and
diversified markets. Technological development of the
bank tremendously increases its customer service as
122
No. of Cheuqes
(Outward)
No. of Cheuqes
(Inward)
Load balancing
Application control engine (NLB) has been used to
provide load balancing facilities for different banking
application servers like core banking, mobile banking,
switching, and e-commerce gateway.
Security
Network security remains essential to protecting data
and privacy. Many services/devices have been installed
to secure PBL network such as firewalls, encryption,
intrusion prevention and intrusion detection. By
combining a few key security features and procedures,
PBL maintains the privacy of data, ensuring the safety
and security of network, and preventing access
CCTV System
PBL is using CCTV systems to monitor the building
premises. Cameras and software are being used to
monitor and record all type of activities.
During 2014, PBL replaced old hardware and systems
for its existing core banking system. This upgrade has
enabled PBL to provide better banking services, both
at its branches as well as through electronic banking
channels (e.g. ATM, POS, KIOSK, Internet Banking,
Mobile Banking, Phone Banking, etc.).
123
Credit Risk
Management
(CRM)
Risk is inherent in all types of business. However, for
Banks and financial institutions credit risk is considered
to be the toughest. Credit risk is most simply defined
as the potential that a borrower or counter-party will fail
to meet its obligations in accordance with the agreed
terms and conditions. Credit risk management needs to
be a robust process that enables a Bank to pro-actively
manage its loan portfolio in order to minimize losses
and earns an acceptable level of return for stakeholders.
Since its formation, Credit Risk Management (CRM)
Division of Prime Bank is working to maintain a sound
credit portfolio.
In Prime Bank, CRM Division is playing among others the
following major activities:
Assessing risks inherent in the credit proposal
with due diligence i.e.:
- Identification of credit risk
- Ways out of risk mitigation
IT Service Desk
To update
Guidelines
124
Banks
Credit
Policy/Lending
Credit
Administration
Division
The functions of Credit Administration Division (CAD) are
basically focused on the post approval activities and CAD
always ensures that proper documentation and approval
are in place prior to disbursement of loan facilities.
Centralized CAD is established with a view to safeguarding
125
Internal
Control &
Compliance
Division
Identifying, measuring, controlling & monitoring
of various types of risks are vital for ensuring good
health of a bank as well as its whole financial system.
For managing risks, Prime Bank Limited uses different
risk management tools, including Internal Control
and Compliances. Internal Control & Compliance
is a management process formulated to achieve
effectiveness and efficiency of operations, reliable
financial reporting as well as compliance with the
existing laws and regulations of Bangladesh Bank and
other regulatory bodies to supervise and control the
risks or business activities of the Bank.
As per BaselII accord, operational risk and supervisory
review is clearly focused in the Pillar- 1 & Pillar- 2. At
the same time considerable importance has also been
given on internal control & compliance, supervision
and monitoring. As prescribed in the Bangladesh
Bank core risk guidelines on Internal Control and
Compliance, Management Committee (MANCOM) of
Prime Bank Ltd reviews the overall effectiveness of
Internal Control Systems.
To comply with the changes brought in the Bank
Companies Act 1991 and the Bangladesh Bank
Circular No. 11 dated October 27, 2013, ICCD has
been restructured and started its functions with three
departments named as a) Monitoring Department; b)
Compliance Department and c) Integrity Management
126
Anti-Money
Laundering
Department
Bangladesh Bank through BRPD Circular No. 17 dated
October 07, 2003 among others advised all scheduled
commercial Banks operating in the country to put
in place effective risk management system which
includes Money Laundering Risk Management. Money
laundering, a criminal act recognized all over the world
has very severe consequences in the economy and
security of the society.
PBL has updated Anti Money Laundering Guidelines
immediately after enactment of Money Laundering
Prevention Act-2012, which includes Senior Management
commitment to the anti-money laundering program.
The Management has evolved such a culture for the
Bank so that all the employees strictly adhere to each
and every provision of Money Laundering Prevention
Act 2012 and Anti-Terrorism Act-2009 with amendment
in 2012. Later a Circular was issued for compliance of
the Anti-Terrorist (Amended) Act-2013. All employees
of the Bank, irrespective of the position they hold, are
accountable to the Top Management and regulatory
body for their activities which might directly or indirectly
relate to money laundering.
Finance
Finance Division covers a wide range of activities from
the basic record keeping for providing information
to assisting managers in making strategic decisions.
Finance department is responsible for all the day to day
transactional accounting for the bank. This includes
tracking of all transactions, informing management
of any irregularities and ensuring proper regulatory
reporting on a timely basis.
Finance department prepares the banks budgets
and forecast, and reports back on the progress to
management through the year. This information can be
127
Human
Resources
Development
No. of Members
Percentage
Male
2265
79.0%
Female
602
21.0%
Total
2867
100.0%
Human Capital
Prime Bank Limited has a favourable image as an
employer of choice. The Bank has positioned itself
with a performance-driven rewarding work culture;
where employees are treated with respect and
receive widened opportunities to realize their diverse
128
% of Female Employees
2011
18.59%
2012
19.77%
2013
20.52%
2014
21.00%
% of Female Employees
% of Female Employees
21.00%
20.52%
19.77%
18.59%
2011
2012
2013
2014
129
130
2014
2013
1.15
1.08
2.01
1.99
4.15
4.75
2.15
2.76
1.14
1.27
57.19
54.55
27.62
22.90
and
131
Marketing
The banking sector is becoming increasingly
competitive around the world. Now banks are striving
hard to grab customers share of mind. Optimum brand
visibility is very essential to be on top of the minds of
potential customers. Developing long-term relationships
with the key customers is an effective way for banks to
be differentiated from its competitors. Consequently,
marketing efforts by banks are more focused and
market driven now. Some of the marketing initiatives of
Prime Bank in 2014 are highlighted below:
Golf Tournament: Prime Bank has been sponsoring
Golf Tournament at Kurmitola Golf Club (KGC) since
2001 and it has become an annual event in the Golfing
Calendar of KGC. The members of the Club are mostly
dignitaries, high officials, diplomats and business
tycoons of the country. Therefore, participating in the
tournament allows the bank an opportunity to promote
its brand along with various products targeted to the
leading group of the society such as Platinum Card,
Premium Banking etc.
Prime Bank Family Celebrated the Bengali New Year on April 14, 2014
132
133
Market
Economy
Banking
Consumer
Performance of
Research and
Development
(R&D) Division
A keen understanding of environmental analysis and
the industrys dynamics play a crucial role in formulating
strategies for growth and operation. Data, information
and insight gathered through systematic process help the
business to take the right decision. Besides, opportunities
134
Market
Research
New Product
Development
Product
Reengineering
Consumer
Insight
Operations
Research
Business and
Economic
Policy
Research
Branch
Expansion
Program (BEP)
ATM
Expansion
Program
Monthly
Newsletter
In-Focus
Weekly
e-Newsletter
Miscellaneous
Functions
Sector
Research
Commodity
Business
Priority
Sectors
Market Research
Product Development
New Product Development: R&D Division
designed some new asset products for
SME Division as per refinance program of
Bangladesh Bank. SrijonRin was introduced
for Publishers of Knowledge based books &
Product
Re-engineering:
The
division
also modified features of existing deposit
products and services as per market demand
to attain & retain market share. Products are
such as - Double Benefit Deposit Scheme
(DBDS), Monthly Benefit Deposit Scheme
(MBDS), Contributory Savings Scheme (CSS),
Account 150% , Prime Millionaire Scheme,
LaksmaPuron Deposit Scheme,
Brighter
Tomorrow Deposit Scheme and Nobagoto
deposit scheme (Conventional and Islamic)
responded to changes in the macro
economy. Revision of interest rate, tenure
and all the applicable installment sizes for the
mentioned scheme products had been done
following suggestions of the Banks ALCO.
1.
Operations Research
Feasibility Studies for Branch Expansion Program
(BEP) & ATM: The Business Feasibility Study is one
of the crucial and frequent studies undertaken by
R&D for serving the bank in setting up any Branch
135
After
launching
the
much
acclaimed
Project
Management
Office
&
Service
importance.
Excellence
These
IT
&
with
huge
IS
policy
Miscellaneous Functions
business risk.
methodology
Supplying
Socio-economic
data
platform
of
to
objectives.
136
on
based
Information
Security
Department
137
138
Market Risk
Market risk is actively monitored by the Treasury Division
of the Bank. As per stress testing, the Bank is unlikely to
face any major risks in liquidity, interest rates and foreign
exchange. A system based Value at Risk (VaR) Model is
being used by the Bank to assess the risk related to the
Foreign Exchange position. Treasury Mid office monitors
risk limits including position limits and stop loss limits
for the trading book and reviews periodically. Interest
rate risk is monitored through the use of re-pricing gap
analysis and duration analysis.
139
Risk Management
Report
Management Division (CRM), Credit Administration
Division (CAD), Recovery Division, Legal Division,
Internal Control and Compliance Division (ICCD),
Internal Audit and Inspection Division and Risk
Management Division (RMD). For managing money
laundering risk, Branch Anti Money Laundering
Compliance Officer (BAMLCO) for every Branch
under dedicated Chief Anti Money Laundering
Compliance Officer (CAMLCO) has been placed;
PBL also formed various risk management
committees like Head Office Credit Review
Committee (HOCRC), Asset Liability Committee
(ALCO), Management Committee (MANCOM),
Central Compliance Committee, Management
Reporting System Committee (MRS) and Risk
Management Unit (RMU) for managing and
monitoring of risk throughout the organization
140
Number
of
Memos
04
04
01
02
5
6
7
01
01
01
8
9
10
11
12
13
14
01
01
01
01
01
01
01
02
Identification
Monitoring
Planning &
Controlling
Measurement
Aggregation
141
142
Sales
Acquisition/
Credit-specific
Customer
Collect and
Review data
Risk Analysis
Credit Review
Collateral and
Risk assessment
Approval
Processing
Documentation
Implementation
Credit approval process in PBL sub-divided into a large number of individual process steps
143
144
7.69%
7.85%
8.17%
3rd Quarter
4th Quarter
it
pos
d De
Fixe 81.52
8,7
it,
pos
g De
Savin ,510.58
2
2nd Quarter
0.01
Others,79
1st Quarter
Othe
rD
Sche eposits
u
me ,
4,64 nder
0.55
Cost of Deposit
8.41%
Market
Risk
Interest Rate
Risk
Equity Risk
Foreign
Exchange
Risk
Commodity
Risk
145
Duration Gap
4,817.55
4,078.79
1.18
March, 2014
1.10
1.09
June, 2014
September, 2014
4,358.82
December, 2014
1.08
March, 2014
June, 2014
September, 2014
December, 2014
Duration Gap
146
Total capital
Market Exposure
856.97
n
ow
to ge
an ra
L o o ke
Br 80
3
E
in q u
37 Me ity I
1.2 rc nv
5 ha est
nt m
Ba en
nk t
s
Loan
to other
Brokerage
70.72
Loan to
Stock
Dealer
1
External fraud;
147
148
Borrowers Rating
As prescribed by Bangladesh Bank (BB), all banks in
Bangladesh assessing credit risk under the Standardized
Approach of the Risk Based Capital Adequacy framework
(Basel II), where External Credit Assessment Institutions
(ECAIs) duly recognized by BB performs borrower rating
against which risk weight mapped with the credit rating
category and risk weighted assets (RWA) is determined
for calculating the capital requirement of banks against
credit risk.
Basel-II, in respect of capital measurement and capital
standards, aligns capital of a bank more closely with the
underlying risk. With a view to smooth implementation
of Basel II Accord, The management of PBL decided to
conduct Credit Rating for Corporate Borrowers through
External Credit Rating Assessment Institutions (ECAIs).
4
de
Gra
BB .85%
7
BB
G
19 rad
.90 e 1
%
BB Grade 5 1.31%
3
rade
BB G 0%
7
.
37
BB
33 Gra
.2 de
5% 2
Corporate
SME
Corporate
SME
BB Grade 1
76
19.90%
BB Grade 2
127
33.25%
BB Grade 3
144
37.70%
16.67%
BB Grade 4
30
7.85%
75.00%
1.31%
8.33%
BB Grade 5
5
** The risk weight for unrated exposure is 125 percent.
149
13.00
12.50
12.00
11.50
CAR
11.00
10.50
Stress Testing
A stress test, in financial terminology, is an analysis
or simulation designed to test the ability of a given
financial institution to deal during forecasted economic
crisis. Instead of doing financial projection on a best
estimate basis, a bank or its regulators do stress testing
where it looks at how robust institutions is in certain
crashes, a kind of What-If scenario analysis.
10.00
0
March, 2014
CAR
12.50
12.00
11.50
11.00
10.50
0
March, 2014
150
13.00
June, 2014
June, 2014
Minor
September, 2014
Moderate
December, 2014
Major
12.00
CAR
10.00
8.00
6.00
4.00
2.00
0
March, 2014
June, 2014
September, 2014
Moderate
Minor
December, 2014
Major
10.00
CAR
8.00
6.00
4.00
2.00
0
March, 2014
10.00
CAR
Moderate
Major
12.00
8.00
6.00
4.00
2.00
0
March, 2014
June, 2014
Minor
Moderate
Major
6.00
4.00
2.00
0
March, 2014
12.50
June, 2014
Equity shock
12.00
CAR
June, 2014
Minor
11.50
11.00
10.50
10.00
0
March, 2014
June, 2014
151
Equity Shock
14.00
12.00
152
CAR
10.00
8.00
6.00
4.00
2.00
0
March, 2014
June, 2014
Minor
Moderate
Major
Interest Rate Risk Analysis for 1 percent change in the market rate of interest
as on 31.12.2014
Particular
1- 90 days
Over 3 month to
Over 6 month to
Over 9 month to
up to 6 month
up to 9 month
up to 1 year
64,865,294,285.08 25,678,818,513.16
23,762,282,078.51
8,103,773,719.10
75,932,500,571.14 17,876,024,082.85
9,307,705,521.96
7,910,197,923.34
Gap
193,575,795.76
Cumulative GAP
(11,067,206,286.06) (3,264,411,855.75)
11,190,164,700.81 11,383,740,496.57
1.00%
1.00%
1.00%
1.00%
(27,289,001.80)
(8,049,234.71)
27,592,186.93
28,069,497.11
(27,289,001.80)
(35,338,236.51)
(7,746,049.58)
20,323,447.53
-5.97%
-7.73%
-1.69%
4.44%
USD
EUR
GBP
JPY
CHF
CAD
AUD
SGD
SAR
SEK
TOTAL
Assets in
FCY
1
2
177,119,917
171,952,173
2,820,835
2,746,084
229,417
19,006
11,822,069
16,753
82,714
44,596
399,445
130,000
107,881
29,525
192,673,152 174,847,263
3=1-2
5,167,744
74,751
210,411
11,822,069
16,753
82,714
44,596
269,445
107,881
29,525
17,825,889
Overall Net
Position /
Core Capital
8
1.72%
153
Market Discipline
Disclosures on Risk Based Capital (Basel-II)
1. Scope of Application
Qualitative
disclosure
a)
b)
The Prime Bank Limited (the Bank) was incorporated as a public limited
company in Bangladesh under Companies Act, 1994 with the registered
office of the company at 119-120 Motijheel C/A, Dhaka-1000. It commenced
its banking business with one branch from April 17, 1995 under the license
issued by Bangladesh Bank. Presently the Bank has 140 (One Hundred
and Forty) branches including 18 (Eighteen) SME Centers/ Branches all
over Bangladesh and 2 (Two) booths located at Dhaka Club, Dhaka and
at Chittagong Port, Chittagong. Out of the above 140 branches, 05 (five)
branches are designated as Islamic Banking branch complying with the
rules of Islamic Shariah. Also the Bank has 3 (Three) Off-shore Banking
Units (OBU), 5 (Five) subsidiary Companies (3 Foreign subsidiaries & 2
Local subsidiaries). The Bank went for Initial Public Offering in 1999 and
its shares were listed with Dhaka Stock Exchange Limited and Chittagong
Stock Exchange Limited as a publicly traded company for its general
classes of share.
The principal activities of the Bank are to provide all kinds of commercial
banking services to its customers through its branches.
An outline of differences in
the basis of consolidation for
accounting
and
regulatory
purposes,
with
a
brief
description of the entities within
the group (a) that are fully
consolidated; (b) that are given
a deduction treatment; and (c)
that are neither consolidated
Subsidiaries of PBL:
nor deducted (e.g. where the
investment is risk-weighted).
i) Prime Bank Investment Limited:
Prime Bank Investment Limited (PBIL) is a subsidiary company
of Prime Bank Limited incorporated as a public limited company
on April 27, 2010 with the registrar of Joint Stock Companies,
vide certificate of incorporation no. C-84266/2 dated 28 April
2010 which has commenced its business on the same date.
The main objectives of the company are to carry out the business of fullfledged merchant banking activities like issue management, portfolio
management, underwriting, corporate advisory services etc.
ii) Prime Bank Securities Limited:
Prime Bank Securities Limited was incorporated on April 29, 2010 as
a private limited company under the Companies Act 1994. The main
objectives of the company are to carry on business of stock brokers /
dealers in relation to shares and securities dealings and other services
as mentioned in the Memorandum and Articles of Association of the
Company. The company commenced its operation from May 2011.
154
Quantitative
disclosure
c)
d)
2. Capital Structure
Qualitative
disclosure
a)
Quantitative
disclosure
b)
Solo
Consolidated
Taka in Crore
I.
II.
224.12
224.12
III.
Statutory reserve
818.46
818.46
Retained earnings
1,029.35
1,029.35
2.80
179.13
186.40
0.00
0.00
2,251.06
2,261.14
Sub-Total (A)
155
c)
d)
e)
480.21
481.23
2,731.28
2,742.37
3. Capital Adequacy:
Qualitative
disclosure
a)
Particulars
Quantitative
disclosure
b)
c)
d)
e)
Solo
Consolidated
Taka in Crore
1,867.35
1,858.03
76.54
90.53
205.03
214.68
82.42%
82.45%
-
2,148.92
2,163.24
21,489.18
21,632.42
Total CAR
12.71%
12.68%
Tier-1 CAR
10.48%
10.45%
Tier-2 CAR
2.23%
2.22%
156
4. Credit Risk:
a)
The general qualitative disclosure requirement with respect to credit risk, including:
With a view to strengthening credit discipline and bring classification and
provisioning regulation in line with international standard, a phase-wise
program for classification and provisioning was undertaken by the Bank
as per Bangladesh Bank circulars issued from time to time. In this regard,
all the loans and advances/investments are grouped into four categories
for the purpose of classification, namely (i) Continuous Loan, (ii) Demand
Loan, (iii) Fixed Term Loan and (iv) Short-term Agricultural and Micro
Credit. They are classified as follow:
Continuous & Demand Loan are classified as:
157
Particulars
Rate
Quantitative
disclosure
b)
Total gross credit risk exposures broken down by major types of credit
exposure of the Bank:
Particulars
Taka in Crore
Total gross credit risk exposures Secured Overdraft/Quard Against TDR
3,673.74
broken down by major types of Cash Credit/Mudaraba
1,821.15
credit exposure.
Loan (General)
3,565.07
House Building Loan
Loan Against Trust Receipts (LTR)
158
360.35
741.59
12.42
1,255.28
488.17
113.17
75.91
616.60
1,554.55
305.88
152.78
14,736.67
c)
Geographical distribution of
Sylhet Zone
exposures, broken down in
Rangpur Zone
significant areas by major types
Sub-Total
of credit exposure.
Rural:
Dhaka Zone
Chittagong Zone
Khulna Zone
155.15
83.67
14,388.43
172.25
78.54
6.49
Rajshahi Zone
58.77
Sylhet Zone
32.20
Sub-Total
Grand Total (Urban + Rural)
348.24
14,736.67
3,161.88
Export Financing
752.27
360.35
Retail Loan
Small & Medium Enterprises (SME)
d)
Taka in Crore
1,255.28
2,005.48
133.05
0.90
251.55
185.47
6,630.43
14,736.67
Industrial Loans/Investments
Particulars
Agriculture
Textile Industries
Food and allied industries
Pharmaceutical Industries
Leather , Chemical, Cosmetics, etc.
Tobacco Industries
Cement and Ceramic Industries
Service Industries
Transport & Communication Industries
Taka in Crore
199.41
607.07
435.63
76.16
70.75
74.89
362.50
1,561.20
513.98
159
2,728.84
Total
6,630.43
e)
Particulars
Repayable on Demand
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
Total
Taka in Crore
3,092.58
2,480.36
5,291.00
3,600.94
271.79
14,736.67
Taka in Crore
180.59
199.95
740.34
0.59
Total
1,121.46
Specific and general provisions were made on the amount of classified
and unclassified loans and advances/investments, off-balance sheet
exposures and off-shore banking units, interest on receivable, diminution
in value of investment and other assets-suspense of the Bank according to
the Bangladesh Bank guidelines.
Particulars
Taka in Crore
ii)
Specific
provisions; and
f)
and
general
Particulars
Provision on classified loans/investments
iii)
Charges
for
specific Provision on unclassified loans/investments
allowances and charge-offs Provision on Off-balance sheet exposures
during the period.
Provision for Off-shore Banking Units
Provision for interest receivable on loans &
advances/investments
Provision for other assets
Provision for diminution in value of
investments
Provision for impairment loss for investment in
subsidiaries
Total
160
416.53
Taka in Crore
Opening balance
781.45
340.01
Closing balance
1,121.46
Particulars
g)
Taka in Crore
Opening balance
334.20
264.35
10.00
(212.29)
20.27
Closing Balance
416.53
Qualitative
disclosure
a)
Consolidated
Taka in Crore
At cost
Quantitative
disclosure
b)
c)
d)
29.96
At cost
23.83
149.01
At market
value
93.77
4.75
1.76
Tier-2 capital.
e)
At market
value
(6.13)
(55.24)
Capital requirements broken down by appropriate equity groupings, consistent with the banks methodology,
as well as the aggregate amounts and the type of equity investments subject to any supervisory provisions
regarding regulatory capital requirements (10% on market value).
Specific Market Risk
2.38
9.38
2.38
9.38
161
Qualitative
disclosure
(a)
The
general
qualitative
disclosure
requirement
including the nature of
IRRBB and key assumptions,
including
assumptions
regarding loan prepayments
and behavior of non-maturity
deposits, and frequency of
IRRBB measurement.
162
Particulars
Quantitative
disclosure
1 to 90
days
Over 3
months
to up to 6
months
Over 6
months to
up to 9
months
Over 9
months to
up to 1 year
Taka in Crore
Rate Sensitive Assets
6,486.53
2,567.88
2,376.23
810.37
7,593.25
1,787.60
930.77
791.02
GAP
(1,106.72)
780.28
1,445.46
19.35
Cumulative GAP
(1,106.72)
(326.44)
1,119.02
1,138.37
1.00%
1.00%
1.00%
1.00%
Quarterly earnings
impact (Cum. GAP * IRC)
(2.73)
(.80)
2.76
2.81
(2.73)
(3.53)
(0.77)
2.03
-5.97%
-7.73%
-1.69%
4.44%
Accumulated earning
impact to date
Earning impact/Avg.
quarterly net profit
7. Market Risk:
Qualitative
disclosure
a)
Market risk is the possibility of losses of assets in balance sheet and off-balance
sheet positions arising out of volatility in market variables i.e., interest rate, exchange
rate and price. Allocation of capital is required in respect of the exposure to risks
deriving from changes in interest rates and equity prices in the banks trading book,
in respect of exposure to risks deriving from changes in foreign exchange rates and
i) Views of Board of commodity price in the overall banking activity. The total capital requirement for
Directors (BOD) on banks against their market risk shall be the sum of capital charges against:
trading/
investment
activities.
Foreign exchange (including gold) position risk throughout the banks balance
sheet and
Commodity risk.
Measurement Methodology:
As banks in Bangladesh are now in a stage of developing risk management models,
Bangladesh Bank has suggested the banks for using Standardized Approach for
credit risk capital requirement for banking book and Standardized (rule based)
Approach for market risk capital charge in their trading book.
Maturity Method has been prescribed by Bangladesh Bank in determining capital
ii) Methods used to
against market risk. In the maturity method, long or short positions in debt securities
measure Market risk.
and other sources of interest rate exposures, including derivative instruments, are
slotted into a maturity ladder comprising 13 time-bands (or 15 time-bands in case
of low coupon instruments). Fixed-rate instruments are allocated according to the
residual term to maturity and floating-rate instruments according to the residual
term to the next re-pricing date.
In Standardized (rule based) Approach the capital requirement for various market
risks (interest rate risk, price, and foreign exchange risk) are determined separately.
163
The total capital requirement in respect of market risk is the sum of capital
requirement calculated for each of these market risk sub-categories, e.g.:
Capital Charge for Interest Rate Risk = Capital Charge for Specific Risk + Capital
Charge for General Market Risk;
Capital Charge for Equity Position Risk = Capital Charge for Specific Risk +
Capital Charge for General Market Risk;
Capital Charge for Foreign Exchange Risk = Capital Charge for General Market
Risk;
Capital Charge for Commodity Position Risk = Capital charge for general
market risk.
iii)
Market
Risk Treasury Division manages the market risk and ALCO monitors the activities of
Management System. Treasury Division in managing such risk.
To mitigate the several market risks the bank formed Asset Liability Management
Committee (ALCO) who monitors the Treasury Divisions activities to minimize
the market risk. ALCO is primarily responsible for establishing the market risk
management and asset liability management of the Bank, procedures thereof,
implementing core risk management framework issued by the regulator, best risk
management practices followed by globally and ensuring that internal parameters,
procedures, practices/polices and risk management prudential limits have been set
up and followed.
The Treasury Division are taking following measures to minimize the several market
risks:
i) Foreign exchange risk management: it is the risk that the bank may suffer losses
as a result of adverse exchange rate movement during a period in which it has an
open position in an individual foreign currency. This risk is measured and monitored
iv)
Policies
and by the Treasury Division. To evaluate the extent of foreign exchange risk, a liquidity
processes
for Gap report is prepared for each currency.
mitigating market risk.
ii) Equity Risk: Equity risk is defined as losses due to changes in market price of
the equity held. To measure and identify the risk, mark to market valuation of the
investment portfolios of share is being done. Mark to market valuation is done
against a predetermined limit. At the time of investment, following factors are taken
into consideration:
a.
Security of Investment
b.
Fundamentals of securities
c.
Liquidity of securities
d.
Reliability of securities
e.
Capital appreciation
f.
g.
Solo
Consolidated
Taka in Crore
Quantitative
disclosure
b)
67.06
67.06
4.77
18.75
4.71
4.71
Commodity risk
164
76.54
90.53
8. Operational Risk:
Operational risk is defined as the risk of loss resulting from inadequate or failed
internal processes, people and systems or from external events. This definition
includes legal risk but excludes strategic and reputation risk. It is inherent in every
business organization and covers a wide spectrum of issues. The Board of Directors
(BOD) of the Bank and its Management firmly believe that an effective internal
control systems has been established within the Bank to ensure adequacy of the
risk management framework and compliance with a documented set of internal
policies concerning the risk management system which mainly include,
# Top-level reviews of the Bank's progress towards the stated objectives;
# Checking for compliance with management controls;
# Policies, processes and procedures concerning the review, treatment and
resolution of non-compliance issues; and
# A system of documented approvals and authorizations to ensure accountability
to the appropriate level of management.
Qualitative
a)
disclosure
Human Resources
People: The Prime Assets!
Prime Bank Limited has a favourable image as an employer of choice. The Bank
has positioned itself with a performance-driven rewarding work culture; where
employees are treated with respect and receive widened opportunities to realize
their diverse potentials fully as well as benefit the organization by demonstrating
value creating behaviours. A group of motivated and engaged employees with
ii) Performance gap of diverse talents are one of the strengths of Prime Bank.
executives and staffs.
Prime Bank has a special focus on converting the human resources into the
human capital, i.e., knowledge, competency, attitude and behaviour embedded
in employees.
165
Prime Bank has a recruitment policy that clearly states the criteria and procedures
to recruit fresh and lateral entrants.
The Bank has a Management Trainee Program which is aimed to recruit outstanding
fresh graduates and develop them as the future leaders of Prime Bank Ltd.
In 2014, the Bank selected a total of 176 fresh candidates as Management Trainees
from a pool of 28,567 applicants after multiple written tests and interviews.
Diversity in Workplace
Prime Bank believes that diverse, heterogeneous teams generate greater
creativity, innovation and business development. Prime Bank is aware of the fact
that an inclusive culture maintains and drives workforce diversity by fostering
the exchange of ideas and collaboration among individuals and across groups.
To speak simply, the constant success of PBL depends in part on maintaining a
plurality of perspectives.
No. of employees by age group and gender:
Age group
No. of Emp.
Below 30 yrs
605
30 - 40 yrs
1,668
40 - 50 yrs
466
Percentage
21.10%
58.18%
16.25%
128
4.46%
2,867
100%
Gender
No. of Emp.
Male
431
Female
174
Male
1,305
Female
363
Male
409
Female
57
Male
120
Female
8
Total
2,867
No. of Members
Male
Female
Total
Percentage
2,265
79.00%
602
21.00%
2,867
100%
Female Ratio
2011
18.59%
2012
19.77%
2013
20.48%
2014
21.00%
The ration of male and female employees has been increasing over the time.
Currently, approximately 602 of the employees are female. PBL is gradually
encouraging the women to take up leadership opportunity which will ensure a
more balanced work force.
166
167
Besides encouraging individual employee growth and development, the Bank also
gives effort to identify and retain the human resources who can potentially be the
successors of mission critical roles. Prime Bank acknowledges that Succession
Planning & Management is vital to the continued success of the Bank. So, the
Bank continuously assesses organizational, divisional and team capability gaps to
identify, develop and retain the successors in a timely manner to meet the demands
of the future.
Performance Management Program
Prime Bank has a comprehensive performance management program that
evaluates employees yearly performance against business targets at the year-end.
The performance evaluation is a step by step by process where an employee first
rates himself/herself. Then s/he is rated by the first level supervisor and then finally
by the second level supervisor. To ensure a proper performance evaluation and
rate the employees based on their comparative performance, the line Management
is guided by the Human Resources Division. This performance appraisal system
is considered as crucial for the Bank as this is a very important tool to identify
and distinguish the performers and non-performers. Prime Bank believes that a
well-executed performance appraisal system can help to reward the deserving
employees, as well as help to ensure further development program for the rest.
The comprehensive performance management also includes an assessment of
employees functional and leadership competencies. This appraisal process helps
to identify the competency gap and training needs of employees. All permanent
employees of PBL undergo annual performance appraisal process.
Reward & Recognition Program
The Bank has a well-designed Reward & Recognition program that gives special
attention to employees actions, efforts, behaviour and performance. It meets
the intrinsic psychological need for appreciation of employees efforts and
supports business strategy by reinforcing certain behaviours (e.g., extraordinary
accomplishments) that contribute to Banks success.
Followings are the different cash and non-cash awards given to employees for their
exemplary works:
Decent Workplace
PBL believes that the business can grow favorably if the organization enables
employees through creating and maintaining a decent workplace. In PBL, there
is a decent work environment where employees can work with dignity, have the
freedom to express opinions, can participate in the decision making process that
affect their lives, and receive equal treatment and opportunity. PBL ensures security
in the workplace and social protection for employees families, better prospects for
their personal development and social integration.
Code of Ethics and Business Conduct
Prime Bank is always committed to establish the highest level of business
compliance and ethical standard. The Bank has an Employee Code of Ethics and
Business Conduct a framework of ethical behaviour for all the employees of the
organization.
168
Initiated and developed Broad banding pay structure policy for employees to
attract, motivate and retain performers
169
Skill Gap Assessment and develop Performance Improvement Plan (PIP) for
the employees
Under development phase: TA/DA policy, employee Code of Ethics and AntiHarassment Policy, MAT Policy, Review of Leave Policy, Service Rule Book
Update etc.
2014
2013
1.15
1.08
2.01
1.99
4.18
4.75
2.17
2.76
1.27
1.27
57.09
54.55
27.48
22.90
170
Success of strategies
PBL is proceeding with its strategic plan and its successful implementation is
very important for its financial performance. Major deviation due to external
and internal factors will affect the performance of the Bank.
Risk Management
following
things:
171
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
The unit will work under banks organizational structure and suggest to the
CEO to take appropriate measures to overcome any existing and potential
financial crisis;
The unit will also work for substantiality of capital to absorb the associated risk
in banking operation.
172
The primary objective of RMD is to develop and execute plans that protect
people, assets, earnings, reputation, resiliency and market share, to support
the strategic and operational objectives of the organization, to minimize longterm cost of risk while doing all of those wonderful things.
RMD looks after Capital Management, Credit Risk, Market Risk (Foreign Exchange
Risk, Interest Rate Risk, and Equity Risk), Liquidity Risk, Operational Risk (Internal
Control & Compliance Risk, Reputation Risk, and Money Laundering Risk), and
Strategic Risk. In addition, as a part of Internal Capital Adequacy Assessment
Process (ICAAP), RMD also looks after Residual Risk, Concentration Risk,
Settlement Risk, and Environmental & Climate Change Risk.
RMD analyzes the overall portfolio of the Bank through Risk Management
Paper, Stress Testing and ICAAP. RMD is also engaged in preparation of efficient
Management Information System (MIS) report for the higher management
and for the Risk Management Committee of the Board. RMD also prepares
quarterly Stress Testing report, Capital Relief calculation and monitors yearly
capital adequacy through ICAAP report.
The stress testing based on the financial performance of the Bank as on December
31, 2014 has also been completed which shows that the bank has adequate capital
to absorb minor level of shocks for combined shock. However, for absorbing
moderate and major levels of shock which is very unlikely in the industry, the bank
may require additional capital.
The Banks operating in Bangladesh shall compute the capital requirements for
operational risk under the Basic Indicator Approach (BIA). Under BIA, the capital
charge for operational risk is a fixed percentage, denoted by (alpha) of average
positive annual gross income of the bank over the past three years. Figures for any
year in which annual gross income is negative or zero, should be excluded from
both the numerator and denominator when calculating the average. The capital
charge may be expressed as follows:
K = [(GI 1 + GI2 + GI3) a]/n
Wherev)
Approach K = the capital charge under the Basic Indicator Approach
for
calculating GI = only positive annual gross income over the previous three years (i.e., negative
capital charge for or zero gross income if any shall be excluded)
operational risk.
a = 15 percent
n = number of the previous three years for which gross income is positive.
Gross income: Gross Income (GI) is defined as Net Interest Income plus Net nonInterest Income. It is intended that this measure should:
i) be gross of any provisions;
ii) be gross of operating expenses, including fees paid to outsourcing service providers;
iii) exclude realized profits/losses from the sale of securities held to maturity in the
banking book;
iv) exclude extraordinary or irregular items;
v) exclude income derived from insurance.
Quantitative
disclosure
Particulars
b)
Solo Basis
Consolidated
Taka in Crore
205.03
214.68
173
03
other information
174
Awards and
Recognition
175
176
177
178
179
Media
Highlights
180
181
Product and
Services
Local Currency Deposit Accounts
Conventional Banking
Islamic Banking
Current Deposit
Savings Deposit
Short Term Deposit
My First Account
Female Account Sukonna
Prime Payroll Account
Security Deposit Receipt
Deposit under Scheme:
182
NRB Banking
Treasury
Foreign Remittance
Web-based Instant Cash Remittance
TT Remittance
Wire Transfer Remittance (SWIFT)
DD Remittance
Primary Dealer:
Treasury Bill
Treasury Bonds
REPOs
Reverse REPOs
ATM/Proprietary/Prepaid Cards:
Fund Transfer
Other Services
Phone Banking
Information Kiosk
183
Corporate Banking
Retail Banking
Cash Credit
Loan General
Lease Finance
Hire Purchase
House Building Loan Commercial/Residential
OD (General)
Letters of Credit
Letter of Credit Sight
Islamic Banking
Bai-Murabaha
Bai-Muajjal
Bai-Salam
Izarah
Hire Purchase under ShirkatulMelk
Musharaka
Mudaraba
Schemes
Hasanah Medical Investment (Shifa)
Guarantee Others
Agriculture
Banking
184
SME Banking
Credit Cards
Credit Cards:
Platinum Dual Credit Card (MasterCard & VISA)
Gold Dual Credit Card (MasterCard & VISA)
Silver/Classic Local/Intl Credit Card ((MasterCard & VISA)
Travel Quota International Credit Card (MasterCard & VISA)
RFCD International Credit Card (MasterCard & VISA)
ERQ International Credit Card (MasterCard & VISA)
FC International Credit Card (MasterCard & VISA)
Hasanah Credit Card (VISA Platinum & VISA Gold)
Hajj Prepaid Card (MasterCard)
Reward Card (MasterCard)
JCB Credit Card (Gold & Classic)
185
186
2,867
Operations are in 4
countries
11,906 million BDT
No significant variation in
the year 2014.
No employees are
Percentage of employees covered by collective
bargaining, as it does
covered by collective
not exist in the banking
bargaining agreements
industry.
The precautionary principle is not applied directly
or openly throughout the organization; instead
PBL assesses loans regarding their impact on the
environment or other social factors. The bank has a
lot of Corporate Social Responsibility (CSR) events
throughout the year, and always tries to help preserve
the environment and enhance communities throughout
the entire country. Hence, Prime Bank Limited takes into
environmental and social factors and not only economic
factors when it does business with clients.
In its business activity, Prime Bank cooperates with
numerous entities as the buyer of products and services
from many market segments. The Banks Facility
Management Division formalizes the procurement
procedure,including the selection of suppliers, who are
nominated in tenders.
The measures for choosing suppliers in the tender
process include: good ratio of quality to cost of the
services or products and the terms of delivery and
payment. The bidders functional capabilities and
financial dependability are also taken into account. In
necessary cases, the Bank also includes environmental
and social factors among the features that affect its
selection of suppliers. The execution of agreements
of significance for the Bank is supervised. The quality
and timeliness of services and goods and financial
positioning of the suppliers are also evaluated.
List of Memberships
1. Bangladesh Association of Banks
2. Metropolitan Chamber of Commerce and Industry
187
188
(Arrangement
of
channels
for
organizational dialogue with employees)
that
encourage
intra-
189
Impact Zone Social, Economic and Environmentaldoes this aspect affect create economic, social or
environmental value, or a combined value.
Customers
1. Promotion of financial independence for customers
2. Customer diversity and promotion of sectors within
the Bangladesh economy
3. Attaining financial freedom in a multichannel world
4. Serving a diverse range of clients
5. Availability
6. Evolving products and services to encourage
190
7.
environmental sustainability
Analysing environmental risks in financing
Community
8. Responsible supply chain management
9. Growing our area of influence
10. Community action
Employees
11. Encouraging a culture of conversation and
openness with employees
12. Promoting diversity, equal opportunities, and clarity
13. Personal development and training
14. Supporting an appropriate work environment
Environment
15. Power consumption management and energy
efficiency
16. Controlling of paper resources
17. Decreasing environmental impacts
Ethics
18. Corporate governance and ethics
19. Prevention of corruption and money laundering
STAKEHOLDERS ENGAGEMENT
ENGAGING OUR STAKEHOLDERS
We intend to form tangible relations with our stakeholders. This is why our reporting perception has transitioned from
an operation-oriented approach to a stakeholder-focused one. Such a focus is one of the purposes why we have
mapped the possible effect that we have on various stakeholder groups before conclusions are made.
We engage with our stakeholders in many ways and at many levels, from the queries that reach us via our website
to face-to-face meetings with government officials and regulators, customers, employees, community groups and
others. Whilst focus on certain issues such as access to finance and customer satisfaction have increased over the
years, most of the topics that stakeholders view as significant have remained consistent.
Moving forward, we expect to have better coordinated discussions with our stakeholders. While the concerns of our
various stakeholder groups do not always overlap with each other or with the business objectives of the company,
dealing with such dilemmas is an everyday part of doing business.
STAKEHOLDER OVERVIEWG4-24
Stakeholder
Group
Their Concern
Bangladesh
Bank and other
regulators
Customers
Employees
Society
Social Investment
Suppliers
Our Responsibilities
Generate profits and ensure optimal return on
investment
Proper oversight and control of the Board and
management
Banks Code of Conduct, management oversight and
response
Public affairs management
Develop and communicate a framework that
promotes good governance and ethical behaviour at
all levels
Ensure compliance at all times
Providing timely and accurate information
Immediate response to queries made by authorities
Comply with rules and regulations
Protect the privacy of our customers, including data
protection and confidentiality
Provide a positive customer experience
Comply with company values and Code of Conduct
191
Customers
Employees
Society
Media
Suppliers
Communication channels
Frequency of dialogue
Once a year
Several times a year
Several times a year
Ongoing
Ongoing
Several times a year
Several times a year
Ongoing
Ongoing
Ongoing
On a daily basis
Ongoing
Several times a year
Monthly/quarterly/yearly and ad hoc
Ongoing
Ongoing
Several times a year
Quarterly/Annually
Ongoing
Ongoing
At least a dozen a year
At least a dozen a year
Several times a year
Ongoing
Several times a year
Several times a year
Ongoing
Ongoing
Several times a year
Ongoing
Issues Raised
Shareholders
PBL ensures that the annual reports have been reported in the
most transparent way possible. The bank ensures that there
is efficient exchange of information through communication
with shareholders.
Bangladesh
Bank and other
regulators
192
Employees
Steadiness of employment
and professional growth
opportunities, fair salary and
bonuses and responding
to requests submitted by
employees.
Customers
Suppliers
Society
Environment
193
CORPORATE GOVERNANCE
Prime Bank Limited has quite a few committees that
help it to function accordingly. A few of the committees
that are mentioned for the report are as follows:
Board of Directors
Prime Bank obeyed with appropriate guidelines of
Bangladesh Bank and Bangladesh Securities and
Exchange Commission while establishing its board of
directors. The numbers of Board members are 20 out of
whom one is an Independent Director and two members
are from the Depositors. All members of the Board of
Directors are of high competency, with vast academic
knowledge and professional experience in the eld of
business. The Board approves the Banks budget and
business plans and evaluates those on a monthly basis as
to give direction as per changing economic and market
environment. The Board also appraises the strategies
and manuals of several segments of businesses in order
to establish effective risk management in credit and
other key areas of operations.
194
Executive Committee
At PBL, the Board has an Executive Committee which
consists of 7 members. The Executive Committee
assesses policies and guidelines issued by Bangladesh
Bank concerning credit and further operations of the
banking industry. It ensures the implementation of the
policies and guidelines through management. The
Executive Committee accepts the credit proposals as
per the accepted policies of the Board.
Audit Committee
In compliance with the guidelines of Bank Companies
Act & BSEC directives, the Audit Committee has been
functioning as a sub-committee of the Board of Directors
with 5 members. The Audit Committee has been
supporting the Board in safeguarding that the nancial
statements reect a true and fair view of the state of
concerns of the bank. It also carries out the oversight
responsibilities for implementation and compliance
of different policies formulated by the Board and the
Regulators.
Credit Committee
The Credit Committee is made up of knowledgeable
individuals that that examines loan offers in terms of
compliance with legal regulations, banking principles,
the Banks goals and loan policies. The committee will
accept or decline the credit application and will put
observations accordingly.
195
ECONOMIC ASPECT
Economic Value Created
ECONOMIC VALUE
Particulars
2014
2013
11,906.31
12,883.08
2,290.87
2,287.07
3,288.41
2,950.61
1,286.69
935.77
4,465.83
5,121.11
170.34
171.25
6,156.69
7,474.15
1,661,163,554
1,257,675,652
141,704,062
12,201,336
196
Purpose
Amount in BDT
883,000
Blanket Distribution
1,991,600
Blanket Distribution
5,913,000
Blanket Distribution
3,432,000
2,397,400
Six outreach eye camps under banks CSR Programs by Prime Bank
Foundation
1,439,400
10,000,000
5,000,000
ENVIRONMENTAL ASPECT
Foreword
Everyone has some form of impact on their natural
environment-- in an industrialized world, this is an
unavoidable reality. However, the extent to which people
negatively impact their environment can absolutely
be mitigated through a number of means. Whether
its making large efforts or simple ones, there are many
ways that everyone can do their part to help preserve
the health of the environment. We belief on sustainable
development and we are looking forward to put our
steps in this regard.
Through Green Financing, bank can ensure less carbon
emission, less use of fossil fuel, less use of harmful
chemical fertilizer and pesticide. Moreover, like other
banks, Prime Bank has also taken initiative to use less
energy, water and paper, which will help to protect
environment for the future generation. When we will be
able to protect our nature and civilization, our finance
will be protected as well as we will be able to achieve
sustainable development through this process.
Agriculture and rural credit
Agriculture is the key driving force of the economy of
Bangladesh. The overall economic development of the
country is closely interlinked with the development of
the agricultural sector. As food security, improvement
of living standard and generation of employment
opportunities of the huge population of the country are
directly linked to the agriculture sector, it is imperative
for greater institutional and policy supports for the
sector. There have been continued efforts by the
197
Taka in Million
Sl. no.
Purpose
2014
Disbursement
Outstanding
332.74
368.81
Fisheries
103.50
148.33
Livestock
726.29
450.64
Irrigation equipment
2.40
9.30
Farm Machineries
46.90
71.99
24.60
34.26
Poverty Alleviation
0.00
34.41
Total
1,236.43
1,117.74
198
BDT in million
SL
Crop
No. of clients
01
Spices
1.12
16
02
Maize
0.70
14
Total
1.82
30
Green Finance
Bangladesh Bank has introduced 47 Green products
under re-finance scheme and Prime Bank Limited has
taken initiative to finance under the products, but major
focus already made under the following.
Bio-gas
Small dairy farm of 4 (four) cows and one bio-digester
is very effective in the context of the rural family
environment of Bangladesh and may be considered
as a commercially profitable model. This may result in
self-employment in rural areas side by side employment
of many poor men and women. Almost 17 liters of milk
(for rearing cow), 100 kg organic fertilizer and 100
cubic feet bio-gas may be produced by this model
every day. In order to make this model (cow rearing and
beef fattening) popular, Prime Bank Limited has been
financing to set up Bio-gas plant in the residence or
small dairy farm.
199
200
201
202
Organic Cotton
Conventionally grown cotton uses more insecticides
than any crop in the world. It is estimated that each
year cotton producers use as much as 25 percent of
the worlds insecticides and more than 10 percent of
the worlds pesticides; an incredible amount for just one
crop. Organic cotton is grown without the use of toxic
pesticides or fertilizers. It is grown using method and
materials that have a low impact on the environment.
Organic production systems replenish and maintain soil
fertility, reduce the use of toxic and persistent pesticides
and fertilizers, and build biologically diverse agriculture.
Source
Consumption
Mega Joules
CO2 Emission
Electricity
2,210,847 kwh
7,959,049
2,321.39 tonnes
Octane
98,275 Liters
3,144,826
242.73 tonnes
Diesel
6,065 Liters
234,109
17.59 tonnes
Source:
CO2 conversion: www.carbonfootprint.com/calculator.aspx
Mega Joules conversion: www.convertworld.com
203
204
205
E&S Policy
Green Financing
The Green Finance Cell of Prime Bank Limited
is in operation since 2013 to exclusively look after
the Bangladesh Bank enlisted green financing
products. During 2014, the bank has extended
finance of BDT 6757.46 million in 24 projects having
ETP. The bank has further strengthened its green
banking initiatives by financing environmentfriendly Hoffman Kiln and Zigzag based automated
brick fields, which contribute towards a greener
climate. Prime bank disbursed 32.00 million to set
up 4 Hybrid Hoffman Kiln (HHK) projects.
Conserving Energy
206
207
208
No. of Emp.
2,662
196
9
2,867
Percentage
92.8%
6.8%
0.3%
100%
No. of Employees
602
2,265
2,867
Percentage
21%
79%
100%
% of Female Employees
18.59%
19.77%
20.52%
21.00%
% of Female Employees
21.00%
20.52%
19.77%
18.59%
2011
2012
2013
2014
% of Female Employees
No. of Members
15
5
20
Percentage
75%
25%
100%
No. of
Employees
259
61
320
Percentage
80.9%
19.1%
100%
Age group
Less than 30
years
30 to 50 years
Over 50 years
Grand Total
Grand Total
Percentage
246
76.9%
72
2
320
22.5%
0.6%
100%
No. of
Employees
142
14
156
Grand Total
50
99
7
156
Percentage
91%
9%
100%
Percentage
32.1%
63.5%
4.5%
100%
209
Maternity benefits
Travel allowance
Technical allowance
Festival bonus
Annual leave
Maternity leave
Leave encashment
Provident fund
Gratuity benefit
Retirement benefit
210
211
212
213
General Standard
Disclosures
Page Number
External
Assurance
Statement from the most senior decision- Managing Director's Statement, Annual Report
maker of the organisation
page no. 34
No
ORGANIZATIONAL PROFILE
G4-3
No
G4-4
No
G4-5
Organization Profile
No
G4-6
No
G4-7
No
G4-8
Markets served
No
G4-9
Organization Profile
No
G4-10
Workforce
Organization Profile,
No
G4-11
No
G4-12
Supply chain
No
G4-13
Significant changes during the reporting There have been no significant changes in the
period
reporting period
No
G4-14
Precautionary approach
No
G4-15
External charters, principles or other initiatives PBL does not subscribe to any of these charters
No
G4-16
Organization Profile
No
Organization Profile
Organization Profile
organisations
pg. 188
No
G4-18
No
G4-19
Material aspects
pg. 189
No
G4-20
pg. 190
No
G4-21
pg. 190
No
G4-22
pg. 212
No
G4-23
No
STAKEHOLDER ENGAGEMENT
214
G4-24
pg. 191
No
G4-25
pg. 193
No
G4-26
pg. 192
No
G4-27
pg. 192
No
General Standard
Disclosures
External
Assurance
Page Number
REPORT PROFILE
G4-28
Reporting period
pg. 212
No
G4-29
pg. 212
No
G4-30
Reporting cycle
pg. 212
No
G4-31
pg. 212
No
G4-32
pg. 212
No
G4-33
Assurance
No
Corporate Governance
No
No
GOVERNANCE
G4-34
Page Number
CATEGORY: ECONOMIC
G4-EC1
Direct economic
distributed
G4-EC2
No
G4-EC3
No
G4-EC4
value
No
generated
and
Economic Aspect
No financial
government
assistance
No
received
from
No
No
G4-EC5
No
G4-EC6
No
Generic
Disclosures
Approach
on
Management
G4-EC7
No
G4-EC8
No
No
impacts,
Generic
Disclosures
Approach
on
Management
G4-EC9
Proportion of spending on local suppliers at All suppliers are local suppliers, no suppliers
significant locations of operation
are from other countries.
No
No
CATEGORY: ENVIRONMENTAL
MATERIAL ASPECT: MATERIALS
G4-DMA
Generic
Disclosures
Approach
on
Management
G4-EN1
No
G4-EN2
No
Environmental Aspect
No
No
215
General Standard
Disclosures
Page Number
G4-EN3
G4-EN4
Energy consumption
organization
G4-EN5
Energy intensity
No
G4-EN6
No
G4-EN7
No
outside
of
Environmental Aspect
External
Assurance
the
No
No
Generic
Disclosures
Approach
on
Management
G4-EN8
G4-EN9
G4-EN10
No
No
affected
by
No
No
Generic
Disclosures
Approach
on
Management
G4-EN11
No
G4-EN12
No
G4-EN13
No
G4-EN14
No
No
No
G4-EN15
No
G4-EN16
No
G4-EN17
No
G4-EN18
No
G4-EN19
No
G4-EN20
No
G4-EN21
No
216
G4-DMA
No
G4-EN22
No
G4-EN23
No
G4-EN24
G4-EN25
No
G4-EN26
No
No
General Standard
Disclosures
Page Number
External
Assurance
Generic
Disclosures
Approach
on
Management
G4-EN27
No
G4-EN28
No
No
Generic
Disclosures
Approach
on
Management
G4-EN29
No
No
Generic
Disclosures
Approach
on
Management
G4-EN30
Significant
environmental
impacts
of
transporting products and other goods and
materials for the organization's operations, and
transporting members of the workforce
No
No
Generic
Disclosures
Approach
on
Management
G4-EN31
No
No
Generic
Disclosures
Approach
on
Management
G4-EN32
No
G4-EN33
No
No
Generic
Disclosures
Approach
on
Management
G4-EN34
No
No
CATEGORY: SOCIAL
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK
MATERIAL ASPECT: EMPLOYMENT
G4-DMA
Generic
Disclosures
Approach
on
Management
No
G4-LA1
No
G4-LA2
No
G4-LA3
No
No
G4-LA4
No
217
General Standard
Disclosures
Page Number
External
Assurance
Generic
Disclosures
Approach
on
Management
G4-LA5
No
G4-LA6
No
G4-LA7
No
G4-LA8
No
No
Generic
Disclosures
Approach
on
Management
G4-LA9
No
G4-LA10
No
G4-LA11
No
No
Generic
Disclosures
Approach
on
Management
No
G4-LA12
No
Generic
Disclosures
Approach
on
Management
No
G4-LA13
No
Generic
Disclosures
Approach
on
Management
No
G4-LA14
No
G4-LA15
No
No
G4-LA16
No
218
Generic
Disclosures
Approach
on
Management
No
General Standard
Disclosures
Page Number
External
Assurance
G4-HR1
No
G4-HR2
No
Generic
Disclosures
Approach
on
Management
No
G4-HR3
No
Generic
Disclosures
Approach
on
Management
No
G4-HR4
No
Generic
Disclosures
Approach
on
Management
No
G4-HR5
No
Generic
Disclosures
Approach
on
Management
No
G4-HR6
No
Generic
Disclosures
Approach
on
Management
No
G4-HR7
No
Generic
Disclosures
Approach
on
Management
Not Applicable
No
G4-HR8
No
Generic
Disclosures
Approach
on
Management
Not Applicable
No
G4-HR9
No
Generic
Disclosures
Approach
on
Management
No
G4-HR10
No
G4-HR11
No
219
General Standard
Disclosures
Page Number
External
Assurance
Generic
Disclosures
Approach
on
Management
No
G4-HR12
No
SUB-CATEGORY: SOCIETY
MATERIAL ASPECT: LOCAL COMMUNITIES
G4-DMA
Generic
Disclosures
Approach
on
Management
G4-SO1
No
G4-SO2
No
No
Generic
Disclosures
Approach
on
Management
G4-SO3
No
G4-SO4
No
G4-SO5
anti-
No
No
Generic
Disclosures
Approach
on
Management
G4-SO6
Total value of political contributions by country No political contributions have been made by
and recipient/beneficiary
PBL in 2014.
No
No
Generic
Disclosures
Approach
on
Management
G4-SO7
Total number of legal actions for antiNo legal actions have been filed regarding this
competitive behavior, anti-trust, and monopoly
issue.
practices and their outcomes
No
No
Generic
Disclosures
Approach
on
Management
G4-SO8
No
No
Generic
Disclosures
Approach
on
Management
G4-SO9
No
G4-SO10
No
No
Generic
Disclosures
Approach
on
Management
G4-SO11
No
No
220
Generic
Disclosures
Approach
on
Management
No
General Standard
Disclosures
Page Number
External
Assurance
G4-PR1
No
G4-PR2
No
Generic
Disclosures
Approach
G4-PR3
No
G4-PR4
No
G4-PR5
Results of
satisfaction
No
surveys
on
Management
measuring
customer
No
Product Responsibility
Generic
Disclosures
Approach
on
Management
G4-PR6
No
G4-PR7
No
No
Generic
Disclosures
Approach
on
Management
G4-PR8
No
No
Generic
Disclosures
Approach
on
Management
G4-PR9
Monetary value of significant fines for noncompliance with laws and regulations No fines regarding products and services have
concerning the provision and use of products been filed in 2014.
and services
No
No
221
222
223
Prime Bank
Foundation
CEOs Note
Prime Bank Foundation (PBF), together with its
partnering organisations, works to develop unique
programmes that deliver tangible and lasting results in
the communities we work in.
Corporate Social Responsibility (CSR) is a long-term
approach to business that addresses the needs
of communities, people and their employers. CSR
provides frameworks for successful enterprises that are
harmonious with their surroundings. CSR also provides
an opportunity to generate honest, authentic goodnews stories that a business and its community can
be proud of. We believe that CSR must be sustainable
and be a fundamental part of our business regardless
of changing fortunes. Through health and education
programmes we help the Foundation connect with local
communities in a way that no one else can.
When it comes to CSR, there are no easy answers on
what to do or how to do it. A companys interactions and
interdependencies with society are many and complex.
However, it is clear that approaching CSR as a feelgood or quick-fix exercise runs the risk of missing huge
opportunities for both the business and society. Taking
a step-by-step approach offers us a way to identify
and drive mutual value creation. It requires greater
focus, work, and long-term commitment than do many
standard CSR pet projects, philanthropic activities, and
propaganda campaigns, but the rewards are potentially
much greater for both sides.
PBFs undying commitment to incubating innovative
approaches to address some of Bangladeshs
seemingly intractable problems has endured the test
of time and created measurable impact for thousands
of Bangladeshis. Throughout our journey, we have
continually adapted our approach from venture
philanthropy to effective programme and service
delivery through partnership, knowledge sharing,
and skill development. Our programme approach has
enabled PBF to evolve a path of growth and gracefully
handle transitions while maintaining a razor-sharp
focus on our mission to catalyse impactful social and
in Bangladesh.
economic
224
225
ESP
PBEMS
PBNI
PBEH
Other Activities
226
PBCC
Prime Bank
Foundations CSR
Prime Bank Foundation (PBF) has been working
relentlessly since 2007 in the Corporate Social
Responsibility (CSR) sector as a responsible corporate
citizen. While providing support to the disadvantaged
people of the country is a core focus, the larger
goal of the Foundation is to push forward a broader
process of change in order to ensure meaningful and
lasting progress. PBF envisions a country where no
one is deprived of their basic needs and rights, where
everyone can live with dignity and has the opportunity
to fulfill their potential. In order to realise this vision,
the Foundation has taken initiatives to remove barriers
to accessing essential services, as well as to foster an
enabling environment for the marginalised to support
their capacity to uplift themselves and
their lives
for the better.
On March 04, 2014 Prime Bank Foundation was awarded
the prestigious Asia Responsible Entrepreneurship
Awards (AREA) 2014 for its exemplary contribution in
corporate social responsibility under the category of
Health Promotion. Dr. Iqbal Anwar, Chief Executive
Officer, Prime Bank Foundation was invited to the official
awards ceremony at JW Marriott, New Delhi, India to
receive the award.
Enterprise Asias Asia Responsible Entrepreneurship
Awards (AREA) recognises and honours Asian
businesses for championing sustainable and responsible
entrepreneurship in the following categories: Green
Leadership, Investment in People, Health Promotion,
Social Empowerment, SME, CSR and Responsible
Business Leadership. The awardees must demonstrate
their commitment, advocacy, integrity and leadership
in incorporating responsible and ethical values in their
businesses. This award itself speaks volumes about the
considerable role that PBF is playing in the CSR sector
of the country. Gaining international recognition for
its commendable eye-care initiative in the form of the
Prime Bank Eye Hospital has established the fact that
PBF is truly a
maker and is committed to sustainable
and responsible practices. In a developing country
like Bangladesh where there is great potential but
enormous deprivation, millions of people live below the
poverty line and lack access to fundamental services.
PBF recognises the talents, capabilities and potential of
those it serves, and believes that the underprivileged can
be the agents of their own advancement. Based on this
conviction, the Foundation emphasises empowerment
more than aid, and designs all its activities to address
227
Education
Education Support Programme (ESP)
228
229
Following are some stories of such individuals whose lives have completely changed because of
Prime Bank Foundations stipends:
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Rashida Sultana:
The small house in Balyani, Pabna was the only asset of
Rashida Sultana and her family of five, which included
her parents and two brothers. Her father was a fourth
class employee at Narsingdis USC Jute Mills. Simply
fulfilling his familys daily needs seemed impossible at
times, it is needless to say that supporting his childrens
education was clearly a massive challenge!!
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Najma Jabin:
Every single recipient of PBFs scholarship is extremely
meritorious and in dire need of financial assistance. PBF
tries to make the rocky road of higher education slightly
bearable for such students; Najma Jabin was one such
student.
Najma Jabin became a recipient of the PBF stipend from
2008 and completed her graduation & post-graduation
in English Literature with distinction marks from the
University of Dhaka. I have no hesitancy in saying
that PBF has assisted me considerably in reaching the
position that I am in now, said Najma Jabin, now a proud
BCS Customs Officer. I consider PBF as one of my best
guardians. My frustration and tension began decreasing
ever since I received the stipend and my result also
significantly improved from there on. I became a selfconfident person who had received the opportunity to
pursue her dream. Even today I mention PBFs unique
programme to everyone and the immense role it has
played in my life. I will truly be grateful if I ever have the
chance to be of any assistance to PBF.
231
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Kvwnbx - 4
There are many students who are not fortunate enough to have a proper meal or a good set of
clothes, yet they fight and overcome such obstacles in their desperation for better education.
Following are the stories of some such students.
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of studying in the city. Tension and anxiety has made her weak
and ill; desperate to support her sons education, she borrowed
money from whoever was willing to lend some and somehow
managed the costs for a few months. Yet the future had become
dreary since borrowing until the completion of Zulfikars studies
was not a feasible option.
However, after Zulfikar started recieving the PBF stipend, his
mother has had some relief. Without this financial support, she
might have had to ultimately sell the small hut they own. Every
time she prays, she thanks Almighty Allah for this immense
blessing and begged the authorities to continue the stipend
which has been a life-saver for her son.
Kvwnbx - 5
233
Kvwnbx - 6
Every year in the month of April we publish advertisements in two of the highly circulated daily
newspapers in the country.
Prerequisites for eligibility are mentioned in the advertisement like GPA, necessary papers, parents
income, place and date of submission, etc.
Application forms, newspaper advertisements and the list of preliminary and finally selected awardees
are uploaded in the foundations website.
The applicant gets one months time to submit applications, then all applications are checked manually
to detect any error against the prerequisites after which the data entry of valid applications begins.
A strong database is being used which helps to sort out applications according to division/district/
upazilla/gender/science/humanities/commerce/any special group/CGPA/parents income etc.
In the database a lot of personal information such as the students name, parents name, address,
account number and branch, how many students passed out, completed graduation, dropped out,
current awardees, academic status, outstanding performance, subject, institution, etc. are preserved
PBF conducts one to one Validation Exercise as per the guidelines set by the Advisory Committee.
The Validation Exercise is a process to identify the most deserving and appropriate applicants by on site
and off site interviews of the primarily selected candidates in the branch of PBL nearest their residence
and at their institutions.
Through this (VE) process project officers validate their information, academic papers, economical
hardships, other sources of income and appetite for the stipend of applicants.
Annual service charge of bank account (not ATM) of the awardees is waived
After successful completion of their higher studies PBF helps the awardees to avail internships and
apply for jobs in PBL and PBF
Following are Depictions of the Daily Ordeals that the families of Some Recipients of the PBF Stipend Face:
235
236
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237
An official from Fire Service & Civil Defence staged a Drill for Fire &
Earthquake at PBEMS premises
238
239
Kvwnbx - 1
to PBEMS.
Cambridge Curriculum.
Student of Class-2
PBEMS-Mirpur
240
Kvwnbx - 2
241
zj mK Avgvi wekvm:
kli K_v:
242
My confidence in PBEMS:
Conclusion:
Technical Assistance:
Lab Facilities:
All the facilities of modern teaching and accommodation
are available for students such as a well-furnished
female students hostel, well equipped classrooms
with multi-media and projector, fully air conditioned,
modern library, well equipped medical laboratory,
modern English language lab, large computer lab with
full internet access, etc.
Clinical Practice:
Nurses must have sufficient practical experience of
hospitals before they begin their career. For this purpose,
PBNI has arranged clinical practice visits to a variety of
hospitals for its students. Such visits allow students
to actively participate in clinical procedures and learn
through observation. Along with textbook knowledge,
PBNI places great importance on clinical practices. That
is why PBNI has made an arrangement with Kurmitola
General Hospital (KGH) which is the first of its kind.
KGH is a service- oriented project of the civil-military
partnership financed by the Health Ministry, supervised
by the Defence Ministry, PBNI is the first nursing institute
to gain access for clinical practice at this renowned
hospital. This in itself is a great achievement for PBNI.
243
244
Kvwnbx - 1
modern
learning
technology
and
conducive
related
labs
like:
simulation,
anatomy,
Anannya
highly
appreciates
the
245
Health
Prime Bank Eye Hospital (PBEH)
Low vision and blindness can have negative impacts
on individuals, families, and communities. Impacts may
range from a decrease in the quality of life and increased
mortality to large-scale economic consequences. From
the cultural perspective, blindness is often stigmatised,
further alienating the afflicted from their communities.
The social disadvantages which occur due to blindness
or low vision are also significant because it leads to a
loss of social standing and decision-making authority; a
large proportion of blind women note a loss of authority
within their families. It is needless to say that the
impact of blindness and poor vision on quality of life is
quite alarming for those living in poverty. It is often the
impoverished people who are more likely to become
blind due to lack of access to health services. Due to the
lack of awareness regarding eye health, they also tend to
be more susceptible to eye infections and diseases.
Considering these aspects and the dire situation of
eye-health in Bangladesh, Prime Bank Foundation took
the noble step of opening the Prime Bank Eye Hospital
(PBEH) which started its journey from January 21, 2012
with a view to provide eye care services to all at an
affordable cost. To strengthen its service, PBEH has
signed a MoU with Aravind Eye Care System (AECS), a
centre of excellence in eye care, as Technical Assistance
Partner for receiving necessary guidance. Under their
guidance, PBEH is equipped with the most modern
ophthalmic equipment, staffed with a renowned group
of clinical and non-clinical personnel and is located in
the heart of the city at House # 82, Road # 8A, Satmasjid
Road, Dhanmondi, Dhaka-1209.
Among its many unique characteristics are PBEHs
experienced and caring team of eye specialists and
para-professionals; a one-stop approach to provide
a wide range of eye care services; its latest modern
ophthalmic equipments; its accessibility to all, with
a provision of safety-net for those who cannot afford
the treatment; the hospital is tailored to needs and is
set up to cater to people belonging to different socioeconomic strata; the pricing is at a sliding scale for
sustainability and cross-subsidisation if needed; 90% of
the surgeries are done on day care basis; VIP Cabins,
shared cabins and separate wards for both male and
female exist and there is also a medicine shop, optic
shop and a cafeteria. Without doubt, PBEH provides the
246
15,00,000 (1.1%)
40,000
12,000
1,50,000
7,50,000 (1.53%)
6,50,000
33,00,000
13,00,000
(children)
9
fear of surgery
no accompanying person
tension
about
obeying
recommendations properly
post-operative
247
248
Year
Schools
Screened
Students
Screened
Problem
Service
received
from PBEH
2012
02
141
50
04
2013
10
3,632
417
73
2014
13
3,399
279
90
Total
25
7,172
746
167
249
250
Counseling Teachers/Students
251
Service Delivery
Direct treatment costs have been a major concern for
service users and their families, especially for those
belonging to the lower socio-economic classes. Thus,
PBEH follows the model of cost plus at a very reasonable
price. As a result, patient flow at the base hospital
(PBEH) is increasing remarkably day by day. PBEH is
well equipped with the most sophisticated ophthalmic
equipment. Recently, PBEH has introduced 3D Optical
Coherence Tomography (OCT) service at the base
hospital in order to provide high class service to patients
who have Glaucoma. In order to prepare more accurate
medical reports on OCT, two senior Ophthalmologists
from PBEH were sent to Singapore for advanced training.
PBEH sincerely pursues any avenue which will enhance
the performance of its staff and the overall hospital
since it aims to provide international standard services
to all its patients, regardless of their financial status.
Conclusion:
Prime Bank Eye Hospital aims to raise awareness about
the low use of cataract services, and adopt strategies
that will promote equality in eye service delivery, access
252
and use. Our target people are those who do not use
or have access to basic eye services. Despite the
hurdles, Prime Bank Eye Hospital has performed very
efficiently and is committed to continue its eye service
as long as there is a demand for it. The main objective of
PBEH continues to be a desire to provide international
standard services to all.
Sports &
Culture
Prime Bank Cricket Club (PBCC)
Prime Bank Foundation believes that sports is
not only a source of entertainment but is also
connected with the mental and physical health,
and the character development of the nation. As a
253
254
CSR Contribution Conducted Directly by Prime Bank Limited (PBL) During the Period Jan-Dec, 2014
Sports
Donation to Fahad Rahman, youngest FIDE Master
of the world for attending 2 tournaments in India in
May and June, 2014
Sponsorship of
Tournament 2014
Indoor
University
Tournament
Disaster Management
Distribution of 35,000 blankets among poor people
Cricket
Others
Sponsorship of month long Autism Awareness
Programme in April organised by Positive Thinking,
an organisation for children with special needs
255
Made education more accessible to the target population we work for, both access and
quality in education have been given attention, as education programmes continued
to be implemented.
Sizeable increases of our programme reached all sixty four districts of the country including
the very hard-to-reach areas through ESP, a programme to respond to the needs of the
grad/post-grad level, under privileged but meritorious students of the country.
Goal 1
Availability of low cost quality education to a much larger number of children through
Prime Bank English Medium School, Uttara & Mirpur.
Signing of an MoU with Cebu Normal University, one of the centres of excellence for
nursing education in the Philippines to have them as a technical assistance partner for
Prime Bank Nursing Institute, a new initiative of Prime Bank Foundation which began
year and aims to develop highly skilled nurses at an affordable price needed to meet
the increasingly high demand of nurses by different healthcare service providers in the
country and beyond.
Make education
more accessible
to the target
population we
work for
Completed the set up of Prime Bank Eye Hospital in Dhaka, a well equipped eye
hospital staffed with a skilled workforce with the technical assistance from Aravind
Eye Care System of India to provide a wide range of eye care services to all.
Goal 2
Where cost is an issue, eye care is not out of reach, Prime Bank Eye Hospital, an
initiative of Prime Bank Foundation, from the beginning of 2012 has started providing
256
Goal 3
high quality eye care services as part of its Corporate Social Responsibility.
04
stakeholders information
257
Stakeholders
Information
Distribution of Shareholdings in 2014
Number of Shares
Types
2014
% of Shares
2013
2014
2013
Sponsors
417,229,033
416,508,783
40.53%
40.46%
Financial Institutions
225,681,418
188,617,995
21.92%
18.32%
Foreign Investors
14,055,207
51,108,455
1.37%
4.97%
3,991,569
3,752,285
0.39%
0.36%
368,391,389
369,361,098
35.79%
35.89%
1,029,348,616
1,029,348,616
100.00%
100.00%
Types of Shareholding
Ge
ne
r
35 al Pu
.79 blic
%
,
Foreign
Investors,
1.37%
Financial Institutions
Foreign Investors
Non-resident Bangladeshi
Financia
l
Institutio
ns,
21.92%
Non-resident
Bangladeshi,
0.39%
Sponsors
s ors ,
Spon 3%
.
40 5
General Public
Opening
position
Closing
position
Change
Vice Chairman
28,570,378
28,570,378
0.00%
Mr. M. A. Khaleque
Vice Chairman
21,846,820
21,846,820
0.00%
Director
20,616,158
20,616,158
0.00%
Director
38,019,361
38,019,361
0.00%
Director
20,644,922
20,644,922
0.00%
Director
20,591,099
20,591,099
0.00%
Director
27,811,583
27,811,583
0.00%
Director
20,760,250
100.00%
10
Director
20,882,328
20,882,328
0.00%
11
Director
20,678,053
20,678,053
0.00%
Chairman
20,601,158
20,601,158
0.00%
12
Director
23,365,749
23,365,749
0.00%
13
Director
32,254,341
32,254,341
0.00%
14
Director
20,587,749
20,587,749
0.00%
15
Director
25,826,178
25,826,178
0.00%
16
Director
20,588,337
20,588,337
0.00%
17
Independent Director
18
Independent Director
29,277
29,277
0.00%
19
Independent Director
20
Managing Director
362,913,491
383,673,741
5.72%
Total
258
Status
Share Department
Sarker Mansion (8th Floor)
29, Rajuk Avenue, Dhaka 1000
Phone: 9567265/261
259
2014
2013
Taka in
Taka in
million
million
Group
Change
2014
2013
Change
Taka in
Taka in million
million
18,446
22,011
-16.20
18,468
22,036
-16.19
6,157
7,474
-17.63
6,228
7,732
-19.46
2,877
4,029
-28.60
3,075
4,030
-23.69
3,280
3,445
-4.80
3,152
3,702
-14.85
887
1,616
-45.10
907
1,664
-45.50
2,393
1,829
30.80
2,246
2,038
10.17
5.24
Interest income
Profit before provision and tax
24,461
23,030
6.21
24,582
23,359
204,838
201,907
1.45
204,804
201,811
1.48
147,367
153,589
-4.05
152,719
159,010
-3.96
72,642
56,940
27.58
74,496
58,751
26.80
6,613
6,407
3.21
6,649
6,457
2.97
254,912
243,869
4.53
256,349
245,507
4.41
6.71
6.97
-0.26
6.71
6.97
-0.26
29.83
38.39
-8.56
29.83
38.39
-8.56
12.71
12.04
0.67
12.68
12.03
0.65
Share Information
2.32
1.78
30.34
2.18
1.98
10.10
Dividend (%)
15.00
12.50
2.50
15.00
12.50
2.50
23.76
22.37
6.21
23.88
22.69
5.24
2.43
Ratios (%)
7.61
5.09
2.52
7.34
4.91
10.08
8.35
1.73
9.37
9.20
0.17
0.96
0.76
0.20
0.89
0.84
0.05
7.47
63
3.
2.59%
5.56
%
4.04%
7.04%
1%
3.0
28.50%
80.35%
57.81%
Paid-up Capital
Borrowings
Deposit
Other Liabilities
Investments
Other Assets
8%
7.4
2.59%
5.57
4.02%
7.37%
5%
3.1
1.30%
29.06%
79.89%
59.57%
Paid-up Capital
260
Deposit
Borrowings
Other Liabilities
Investments
Fixed Assets
Liquid Assets
Other Assets
(Taka in million)
(Taka in million)
5,000
25000
4,000
30,561
30000
3,000
10000
2,000
1,000
5000
0
2013
3,280
15000
27,480
20000
3,445
35000
2013
2014
2014
12,000
27,313
16,000
26,495
20,000
2013
2014
8,000
4,000
0
Taka in million
Particulars
2014
2013
Gross revenue
27,480
30,561
Operating income
11,906
12,883
2,393
1,829
Total capital
27,313
26,495
204,838
201,907
147,367
153,589
Total deposits
Total loans & advances
Total assets
No. of deposits accounts
No. of loans & advances accounts
Return on assets (%)
254,912
243,869
1,208,249
1,083,793
48,044
49,594
0.96
0.76
10.08
8.35
29.83
38.39
12.71
12.04
2,867
2,710
122
117
18
17
Long -term
"AA"
"AA"
Short-term
ST-2
ST-2
Long -term
"AA2"
"AA2"
Short-term
ST-2
ST-2
No. of employees
No. of branches
No. of SME branches/centers
Rating (CRISL)
Rating (CRAB)
261
2013
2014
24.54
2010
2011
23.76
2012
22.37
2011
22.21
2010
2.32
1.78
2.88
29.27
4.70
5.69
2012
2013
2014
Shareholders' Equity
(Taka in million)
13.53
20.19
21.65
24,461
23,030
20,787
2012
2013
2014
2010
2011
2012
10.08
2011
8.35
2010
19,095
16,908
2013
2014
Operating Profit
6,157
0.76
0.96
1.24
6,176
7,427
7,474
8,551
2.05
2.22
(Taka in million)
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2010
262
2011
2012
2013
9,034
8,551
8,081
5,473
1,829
7,498
2,393
2,699
3,101
3,634
Non-Interest Income
(Taka in million)
2014
2010
2011
2012
2013
2014
Investment Income
36.94
35.75
36.62
2010
2011
2012
41.98
6,194
5,583
4,633
2014
2,632
4,157
(Taka in million)
48.29
2013
2014
2010
2011
2012
2014
201,907
2013
147,367
138,848
159,816
124,574
2010
116,057
2012
2,840
3,447
2011
3,341
2,841
2013
204,838
2013
153,589
2012
182,053
2011
160,890
2010
2014
Non-Performing Loans
(Taka in million)
11.23
10.54
10.46
12.26
7,815
12.28
2010
2010
2011
2012
2013
2014
1,908
1,368
6,168
11,215
2011
2012
2013
2014
Branch Network
140
2012
2013
2014
43
81
134
2014
130
160
2013
119
151
2012
108
134
Number of ATM
2010
2011
2010
2011
263
High
Low
Taka
Taka
January
27.90
CSE
Volume
23.80
5,352,529
High
Low
Taka
Taka
28.00
Total Volume
Volume
22.00
129,479
5,482,008
20,646,896
February
27.50
24.10
20,524,583
27.50
23.50
122,313
March
26.00
22.50
3,864,720
25.20
20.00
180,239
4,044,959
April
24.70
20.00
19,675,302
25.00
19.20
117,690
19,792,992
May
24.80
22.20
15,900,993
25.00
19.20
388,614
16,289,607
June
24.90
22.40
16,014,580
25.00
20.50
141,170
16,155,750
July
24.50
23.10
4,536,459
24.00
21.60
75,718
4,612,177
August
24.00
19.00
27,165,224
23.10
18.20
165,204
27,330,428
September
22.00
19.10
7,423,096
21.80
17.20
147,366
7,570,462
October
22.70
19.50
13,899,134
22.50
18.50
120,348
14,019,482
November
24.50
18.60
5,883,613
21.00
17.20
140,341
60,23,954
December
20.50
18.00
6,104,124
20.80
18.00
167,816
6,271,940
12.85
14.57
16.60
54,572
34,624
26,660
8.43
8.34
9.47
34,702
20,175
2009
2010
2011
2012
2013
2010
2014
2011
2012
2010
264
2011
2012
2013
19.60
25.90
37.00
44.50
94.45
(Taka)
2014
2013
2014
Segment Analysis
Operating Revenue
PBL
6.84%
91.85%
1.31%
Conventional Banking
Islamic Banking
Off-shore Banking
Assets Employed
20.27%
6.51%
89.83%
3.66%
75.69%
4.04%
Conventional Banking
Off-shore Banking
Islamic Banking
Conventional Banking
Islamic Banking
Off-shore Banking
Operating Revenue
6.67%
89.54%
1.27%
0.63%
1.89%
Conventional Banking
Off-shore Banking
Group
Islamic Banking
Assets Employed
6.23
86.02%
21.09%
3.51%
3.29%
78.76%
4.20%
0.95%
-6.60%
2.55%
Conventional Banking
Off-shore Banking
Islamic Banking
Conventional Banking
Off-shore Banking
Islamic Banking
265
Horizontal/Vertical Analysis - Key Financial Data & Key Business Ratios - PBL
Taka in million
Particulars
2010
2011
2012
2013
2014
12,147
16,709
22,822
22,011
18,446
Interest expenses
7,824
12,648
17,410
17,678
15,574
4,323
4,061
5,411
4,332
2,872
Investment income
2,632
4,157
4,633
5,583
6,194
2,262
2,689
2,429
2,155
2,033
579
652
1,018
813
806
Operating Income
9,795
11,559
13,492
12,883
11,906
Operating expenses
3,618
4,132
4,941
5,409
5,750
13,643
19,666
23,024
21,422
19,187
6,177
7,427
8,551
7,474
6,157
540
661
3,216
4,029
2,877
5,637
6,766
5,335
3,445
3,280
2,535
3,132
2,636
1,616
887
3,102
3,634
2,699
1,829
2,393
10,000
10,000
25,000
25,000
25,000
5,776
7,798
9,358
10,293
10,293
16,908
19,095
20,787
23,030
24,461
Deposits
124,574
159,816
182,053
201,907
204,838
Long-term liabilities
47,918
63,379
84,827
91,424
104,040
116,057
138,848
160,890
153,589
147,367
Investments
20,484
39,172
45,862
56,940
72,642
1,695
3,975
4,363
6,407
6,613
137,577
179,537
212,204
211,399
221,521
7,349
2,262
2,735
15,023
21,064
Total assets
154,342
199,950
236,833
243,869
254,912
Total liabilities
137,434
180,856
216,046
220,839
230,451
Earning assets
Net current assets
Current ratio
1.09
1.02
1.02
1.12
1.17
Gearing ratio
76.98
77.88
80.97
80.67
81.42
1.09
1.01
1.01
1.12
1.17
Quick ratio
6.70
6.22
6.06
6.97
6.71
26.00
32.96
34.02
38.39
29.83
12.30
10.56
9.62
10.43
10.61
Import
147,704
174,384
168,532
133,219
126,571
Export
Other Business
266
106,943
133,396
143,612
127,091
110,096
Remittance
28,433
36,890
42,443
32,628
39,484
Guarantee business
29,000
27,844
29,391
31,170
30,155
Taka in million
Particulars
2010
2011
2012
2013
2014
194,380
205,103
222,791
216,324
15,791
18,744
20,664
21,708
22,611
5,692
5,485
5,252
5,104
4,812
21,483
24,229
25,916
26,812
27,424
10.45
Total capital
Tier-I capital ratio
8.60
9.64
10.08
9.74
3.09
2.82
2.56
2.29
2.23
11.69
12.46
12.64
12.03
12.68
1,368
1,908
6,168
7,815
11,215
1.18
1.37
3.83
5.09
7.61
1,463
1,725
2,025
1,691
1,741
642
778
1,949
3,733
4,586
94.45
44.50
37.00
25.90
19.60
Credit Quality
Non-performing loans (NPLs)
NPLs to total loans and advances (%)
Provision for unclassified loans
Provision for classified loans
Share Information
Market price per share (Taka)
No. of shares outstanding (Million)
577.64
779.81
935.77
1029.35
1029.35
19,748
26,030
23,964
25,632
23,102
5.69
4.70
2.88
1.78
2.32
Dividend:
40%
30%
20%
12.50%
15.00%
15.00%
Cash
5%
10%
10%
12.50%
Bonus
35%
20%
10%
49.52
40.21
21.82
13.10
15.00
1.42
1.57
1.44
1.42
1.55
4.23
6.74
5.41
4.83
7.65
54,572
34,702
34,624
26,660
20,175
29.27
24.49
22.21
22.37
23.76
16.60
9.47
12.85
14.57
8.43
4.21
3.19
3.61
2.75
1.91
1.50
2.12
1.60
1.48
1.52
88.66
89.51
89.69
88.12
86.80
43.33
Market capitalization
55.60
47.75
43.66
42.15
3.10
2.29
2.48
1.80
1.15
2.89
3.24
3.36
2.76
2.15
4.43
4.19
3.92
3.11
2.47
Cost-income ratio
36.94
35.75
36.62
41.98
48.29
Credit-deposit ratio
93.16
86.88
88.38
76.07
71.94
6.39
8.15
8.75
8.80
7.36
11.76
13.09
15.17
13.85
12.09
2.22
2.05
1.24
0.76
0.96
21.65
20.19
13.53
8.35
10.08
9.53
9.01
8.10
6.53
4.79
94
102
113
117
122
14
17
17
17
18
Number of ATM
43
81
134
151
160
2,139
2,292
2,544
2,710
2,867
621
644
660
661
638
216,460
No. of employees
No. of foreign correspondents
Average earning assets
123,741
158,557
195,871
211,802
139,574
177,146
218,392
240,351
249,391
Average deposits
115,765
142,195
170,934
191,980
203,372
102,654
127,452
149,869
157,239
150,478
14,327
18,002
19,941
21,908
23,745
267
2014
2013
27,480
30,561
(17,701)
(19,838)
9,779
10,723
(2,877)
(4,029)
6,902
6,695
3,288
2,951
2,200
1,976
1,180
1,616
193
(146)
Depreciation
333
298
(293)
233
152
6,902
6,695
Non-banking income
Provision for loans & off-balance sheet exposure
Deferred taxation
Total
44.08%
To employees as salaries
& allowances
To providers of capital as
dividend & reserve
To providers of capital
as dividend & reserve
To Government as
income tax
Retained profit
Depreciation
29.51%
.10
-4.24%
4.83%
2.79%
4 .46%
17
To employees as salaries
& allowances
24.14%
268
0%
-2.19%
Deferred taxation
47.64%
31.88%
A n n u al R eport 2 0 1 4
2013
2012
24,461
23,030
20,787
7,416
6,514
4,082
31,877
29,543
24,869
30,710
27,206
23,734
2,393
1,829
2,699
2,877
4,029
3,216
(2,123)
(2,541)
(404)
3,147
3,318
5,511
12.90%
12.90%
13.46%
3,961
3,509
3,194
(814)
(192)
2,316
-325.27%
-108.27%
87.33%
Taka in million
Maturity analysis
Below 1 year
1-5 years
Above 5 years
Total
139,637
50,770
31,115
221,521
7,704
4,500
21,187
33,391
147,341
55,269
52,302
254,912
117,882
53,825
37,856
209,564
8,394
1,290
11,203
20,888
126,276
55,116
49,059
230,451
Maturity Gap
21,064
153
3,243
24,461
Cumulative Gap
21,064
21,218
24,461
(Taka in million)
(Taka in million)
2,316
1,800
20,175
24,461
2,800
800
1,237
-192
-200
-814
Book Value
Market Value
Value Addition
-1,200
2011
2012
2013
2014
269
12.03
2011
2012
2013
12.68
12.64
2010
12.46
11.69
2014
ary
nt
12 me
4,8 pple l
Su pita
Ca
22,611
Core Capital
270
The capital adequacy computation on consolidated basis as at December 31, 2014 is given below:
Taka in million
Details of Capital Fund
2014
2013
10,293
10,293
Share premium
2,241
2,241
28
28
Statutory reserve
8,185
7,529
1,864
1,616
22,611
21,708
1,664
1,659
1,088
1,090
78
32
231
68
752
756
1,000
1,500
4,812
5,104
27,424
26,812
216,320
222,791
10.45
9.74
2.23
2.29
12.68
12.03
General Reserve
Minority interest in subsidiaries
Maintaining liquidity
The liquidity policy of the bank has always been to carry a positive mismatch in the interest earning assets and
interest bearing liabilities in the 1 to 30 days category. Our liquidity remained at optimum levels during the year. The
liquid assets ratio stood at 29.83% (required 13% of total demand & time deposits) in December 2014.
The assets and liabilities committee (ALCO) of the bank monitors the situation and maintains a satisfactory trade-off
between liquidity and profitability.
271
Payment of dividends
The dividend policy of bank has always been to pay a decent dividend to its shareholders while ploughing back
sufficient profits to fund growth and capital adequacy requirements. As a result of this prudent dividend policy, the
bank has been able to build up its shareholders fund base to satisfactory levels.
Considering the performance of the bank over the past year, the Board has recommended cash dividend of 15% for
the year 2014.
50
40
35
5
5
30
25
20
10
35
10
15
20
10
15
12.5
10
5
0
2010
2011
2013
2013
2014
250,000
Industry - Deposit
Taka in million
2011
1012
2013
2014
2010
2011
182,053
1012
2014
Taka in million
Taka in million
180,000
6,000,000
120,000
100,000
80,000
60,000
147,367
5,451,495
4,386,156
3,105,453
3,782,471
3,000,000
4,761,510
4,000,000
153,589
140,000
160,890
160,000
5,000,000
40,000
20,000
0
2010
272
204,838
2010
1,000,000
201,907
2,000,000
2013
50,000
138,848
1,000,000
116,057
2,000,000
100,000
2,343,147
3,000,000
150,000
159,816
4,170,647
4,000,000
200,000
124,574
5,006,825
5,000,000
5,806,965
6,000,000
6,588,516
7,000,000
2011
2012
2013
2014
2010
2011
2012
2013
2014
2013
7,814.50
6,168.50
11,939.86
14,768.88
(2,209.31)
(1,824.96)
(3,648.76)
(8,542.39)
(2,681.65)
(2,755.53)
11,214.64
7,814.50
2013
Corporate
6,014.47
5,257.70
Retail
1,453.83
1,144.36
SME
3,637.60
1,322.90
108.73
89.54
11,214.64
7,814.50
238
96
Credit Card
Total NPA
No. of rescheduled loans during the year (incl. Retail Banking Div. & SME
Banking Div.)
Movement of Provisions made against NPA
Opening Balance
1,949.08
4,318.50
(2,534.53)
Closing Balance
3,733.05
1,862.25
TDS
2,796.31
VAT
462.55
Total
5,121.11
Shareholders as Dividend
Employees as bonus/remuneration
935.77
2,950.61
273
Announced on
Unaudited consolidated results for the 1st quarter ended 31 March 2014
Announced on
Unaudited consolidated results for the 2nd quarter and half-year ended 30
June 2014
Announced on
Unaudited consolidated results for the 3rd quarter ended 30 September 2014
Announced on
Dividends
Distribution of cash dividend of 12.50% in respect of financial year ended 31 December 2013
Notice of Annual General Meeting
DSE
CSE
PRIMEBANK
PBBANK
Company Code
11116
22013
Listing year
2000
1999
Stock Symbol
Market category
Electronic share
Yes
Yes
1,029,348,616
1,029,348,616
Market lot
Total number of securities
Value in Taka
Taka in million
Market value
1,029,348,616
19.60
20,175
Book value
1,029,348,616
23.76
24,461
274
No. of shares
(4,286)
Glimpses of
19th AGM
275
276
05
financial statements
277
278
b. to the extent noted during the course of our audit work performed on the basis stated under the Auditors
Responsibility section in forming the above opinion on the consolidated financial statements of the Group and
the separate financial statements of the Bank and considering the reports of the Management to Bangladesh
Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under the Managements
Responsibility for the Financial Statements and Internal Controls:
i.
internal audit, internal control and risk management arrangements of the Group and the Bank, as disclosed
in note # 2.11 & 2.19 (i & ii) of the financial statements, appears to be adequate except for the effects of the
immaterial control deficiencies as identified by us and being submitted to the management of the Bank via
management report;
ii.
nothing has come to our attention regarding material instances of forgery or irregularity or administrative
error and exception or anything detrimental committed by employees of the Bank and its related entities
other than matters disclosed in note # 2.19 (iii) of these financial statements;
c. financial statements of two subsidiary companies namely, Prime Bank Investment Limited and Prime Bank
Securities Limited have been audited by Howlader Yunus and Co. Chartered Accountants and another three
subsidiary companies namely, Prime Exchange Co. (Pte) Limited, Singapore, PBL Exchange (UK) Limited and PBL
Finance (Hong Kong) Limited have been audited by C.C Yang & Co., Chartered Accountants, Reddy Siddique &
Kabani, Chartered Accountants, and T.O. YIP & Co. Limited, Chartered Accountants respectively and have been
properly reflected in the consolidated financial statements;
d. in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as
it appeared from our examination of those books;
e. the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance
sheet and separate profit and loss account of the Bank dealt with by the report are in agreement with the books
of account;
f.
the expenditure incurred was for the purposes of the Banks business;
g. the consolidated financial statements of the Group and the separate financial statements of the Bank have
been drawn up in conformity with prevailing rules, regulations and Bangladesh Financial Reporting Standards as
explained in note 2.18 as well as with related guidance, circulars issued by Bangladesh Bank and decision taken in
tripartite meeting amongst Inspection Team of Bangladesh Bank, External Auditors and the Management, Prime
Bank Limited held on 25 February 2015.
h. adequate provisions have been made for advances which are, in our opinion, doubtful of recovery;
i.
the records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
j.
the information and explanations required by us have been received and found satisfactory; and
k.
we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 6,850 person
hours for the audit of the books and accounts of the Bank.
ACNABIN
Chartered Accountants
279
Particulars
Notes
Amount in Taka
31.12.2014
31.12.2013
01.01.2013
2,365,051,461
2,705,924,415
2,069,226,315
15,194,723,820
14,958,779,761
14,117,939,937
17,559,775,281
17,664,704,176
16,187,166,252
In Bangladesh
Outside Bangladesh
Money at call and short notice
Investments
Government
Others
272,467,219
370,140,473
239,695,022
1,331,769,386
709,510,273
1,466,724,570
1,604,236,605
1,079,650,746
1,706,419,592
70,928,312,066
56,147,165,851
44,936,697,967
3,567,999,947
2,603,960,634
3,065,827,910
74,496,312,013
58,751,126,485
48,002,525,877
156,374,907,982
145,825,411,559
150,378,169,432
6,893,824,341
8,631,546,764
8,667,419,387
152,719,235,900
159,009,716,196
165,042,327,369
6,648,653,116
6,456,759,073
4,419,804,836
Other assets
10
3,144,775,578
2,545,075,883
2,790,186,731
11
176,340,640
256,349,329,133
245,507,032,559
238,148,430,657
8,083,203,317
4,273,597,629
21,149,348,118
27,556,891,987
26,525,056,611
27,294,074,815
Bills payable
2,942,889,234
2,081,417,055
3,421,438,111
25,106,122,963
21,125,908,174
19,188,831,632
Total assets
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents
12
13
149,197,612,596
152,078,311,714
132,046,235,924
Other deposits
204,803,516,780
201,810,693,554
181,950,580,482
Other liabilities
14
18,881,002,879
16,064,222,050
14,086,694,880
231,767,722,976
222,148,513,233
217,186,623,480
15.2
10,293,486,160
10,293,486,160
9,357,714,690
Share premium
15.8
2,241,230,396
2,241,230,396
2,241,230,396
Minority Interest
15.9
60
65
67
Statutory reserve
16
8,184,646,579
7,528,626,614
6,839,527,566
Total liabilities
Capital / Shareholders' equity
Paid -up capital
17
461,794,800
135,671,362
42,034,865
Revaluation reserve
18
1,503,518,556
1,511,486,306
251,603,567
19
4,510,188
General reserve
Surplus in profit and loss account / Retained earnings
280
20
4,892,900
3,646,693
28,002,888
28,002,888
1,864,033,818
1,616,368,842
2,225,185,837
24,581,606,157
23,358,519,326
20,961,807,176
256,349,329,133
245,507,032,559
238,148,430,657
Particulars
Notes
Amount in Taka
31.12.2014
31.12.2013
01.01.2013
21
21.1
26,742,389,739
30,869,304,940
33,064,522,464
Letters of guarantee
21.2
61,408,149,593
55,438,139,259
44,031,123,130
21.3
20,698,448,178
20,885,957,458
30,602,172,770
21.4
9,262,180,366
9,221,494,133
10,094,765,189
118,111,167,876
116,414,895,790
117,792,583,553
118,111,167,876
116,414,895,790
117,792,583,553
These financial statements should be read in conjunction with the annexed notes 1 to 51.
Chairman
Director
Director
Managing Director
ACNABIN
Chartered Accountants
281
Notes
Amount in Taka
2014
2013
23
18,467,920,602
24
(15,629,158,843)
(17,738,761,514)
2,838,761,759
4,296,842,423
22,035,603,937
Investment income
25
6,258,530,291
5,863,198,678
26
2,233,954,643
2,332,258,137
27
882,869,884
880,802,275
12,214,116,577
13,373,101,513
28
3,394,371,944
3,050,300,291
29
627,590,438
595,222,912
Legal expenses
30
39,566,713
40,451,700
31
120,248,747
141,707,735
32
216,460,016
231,679,549
33
8,674,785
11,590,000
Directors' fees
34
4,082,879
4,443,241
Auditors' fees
35
2,097,114
1,631,427
36
37
417,210,587
365,272,233
Other expenses
38
1,156,252,723
1,198,735,007
5,986,555,946
5,641,034,094
6,227,560,631
7,732,067,419
Specific provision
2,643,500,000
2,980,000,000
General provision
114,000,000
642,000,000
76,000,000
362,000,000
(1,510,000)
10,000,000
2,831,990,000
3,994,000,000
(57,065,592)
24,475,240
248,810,195
1,354,126
39
51,598,089
10,135,000
3,075,332,692
4,029,964,366
3,152,227,939
3,702,103,053
1,200,938,014
1,664,898,350
40
Deferred tax
Net profit after taxation
Retained earnings brought forward from previous year
282
20.1
(294,247,041)
(1,105,233)
906,690,973
1,663,793,117
2,245,536,966
2,038,309,936
274,516,818
295,160,847
2,520,053,784
2,333,470,783
Amount in Taka
Notes
2014
2013
Appropriations
Statutory reserve
656,019,965
689,099,048
Minority interest
0.28
General reserve
28,002,888
656,019,966
717,101,941
Retained surplus
20
1,864,033,818
1,616,368,842
45
2.18
1.98
These financial statements should be read in conjunction with the annexed notes 1 to 51.
Chairman
Director
Director
Managing Director
ACNABIN
Chartered Accountants
283
Notes
Amount in Taka
2014
2013
23,664,151,487
27,624,433,535
Interest payments
(16,816,635,431)
(17,972,431,422)
Dividend receipts
79,659,231
89,885,351
2,233,954,643
2,332,258,137
26,343,014
6,064,168
(3,470,154,157)
(3,031,288,851)
(774,889,053)
(812,060,773)
(1,247,770,954)
(1,862,253,078)
41
2,010,032,909
1,912,401,737
42
(1,622,403,717)
(1,578,552,527)
4,082,287,972
6,708,456,274
(11,634,112,033)
(3,274,763,630)
4,158,023,522
3,543,714,833
(4,019,982,179)
(7,837,890,184)
3,866,183,305
(16,896,544,183)
2,727,186,380
20,905,176,176
861,472,179
(1,340,021,056)
2,276,255,420
655,531,219
(1,764,973,406)
(4,244,796,824)
2,317,314,566
2,463,659,451
5,000,000
5,000,000
(17,833,595)
293,682,203
(543,794,029)
(918,179,822)
(3,624,186)
(6,126,544)
1,646,486
2,079,350
(558,605,324)
(623,544,813)
43
284
44
Notes
Amount in Taka
2014
2013
Receipts from issue of ordinary share including premium net off Tax
(1,342,610,131)
(992,804,143)
(1,342,610,131)
(992,804,143)
416,099,111
847,310,494
3,471,253
(7,211,283)
18,750,630,322
17,910,531,111
19,170,200,686
18,750,630,322
2,365,051,461
2,705,924,415
15,194,723,820
14,958,779,761
1,604,236,605
1,079,650,746
Reverse repo
6,188,800
6,275,400
19,170,200,686
18,750,630,322
Dividend paid
Net cash used in financing activities
D)
E)
F)
G)
These financial statements should be read in conjunction with the annexed notes 1 to 51.
Chairman
Director
Director
Managing Director
285
286
Cash dividend
Minority interest
Chairman
10,293,486,160
10,293,486,160
10,293,486,160
28,002,888
28,002,888
28,002,888
28,002,888
Taka
General
reserve
2,241,230,396
2,241,230,396
2,241,230,396
2,241,230,396
Taka
Share
premium
Taka
Minority
interest
65
60
(5)
65
65
1,511,486,306
1,503,518,556
(7,967,750)
1,511,486,306
1,511,486,306
Taka
Revaluation
reserve
135,671,362
461,794,800
Director
Director
461,794,800
616,680,832
(290,557,394)
135,671,362
135,671,362
Taka
Revaluation
gain / loss on
investments
These financial statements should be read in conjunction with the annexed notes 1 to 51.
7,528,626,614
8,184,646,579
656,019,965
7,528,626,614
7,528,626,614
Taka
Taka
10,293,486,160
Statutory
reserve
Paid up capital
Restated balance
Particulars
3,646,693
4,892,900
4,892,900
1,246,208
3,646,693
3,646,693
Taka
F.C. translation
gain
(5)
(1,342,610,131)
2,245,536,966
23,678,679,327
2,004,314
616,680,831
(290,557,394)
(7,967,750)
23,358,519,326
23,358,519,326
Taka
Total
Managing Director
1,616,368,842 23,358,519,326
1,864,033,818 24,581,606,157
(656,019,965)
(1,342,610,131)
2,245,536,966
1,617,126,949
758,107
1,616,368,842
1,616,368,842
Taka
Retained
earnings
Balance Sheet
as at 31 December 2014
Particulars
Notes
Amount in Taka
2014
2013
3a
2,340,059,101
2,683,867,027
15,194,723,820
14,958,779,761
17,534,782,921
17,642,646,788
4a
In Bangladesh
Outside Bangladesh
Money at call and short notice
Investments
6a
Government
Others
258,877,340
244,165,129
1,253,809,238
626,533,772
1,512,686,578
870,698,901
70,928,312,066
56,147,165,851
1,713,515,478
792,350,658
72,641,827,544
56,939,516,509
142,780,100,320
147,380,881,952
7a
8a
4,586,552,073
6,207,878,277
147,366,652,393
153,588,760,229
9a
6,612,686,818
6,406,719,662
Other assets
10a
9,067,223,175
8,420,462,735
11
Total assets
176,340,640
254,912,200,069
243,868,804,824
7,668,875,959
3,858,260,882
27,586,626,484
26,612,333,767
12a
13a.1.c
2,942,889,234
2,081,417,055
25,106,122,963
21,125,908,174
149,202,091,888
152,087,482,186
Other deposits
204,837,730,569
201,907,141,182
17,944,881,561
15,073,785,652
230,451,488,089
220,839,187,716
Other liabilities
14a
Total liabilities
Capital / Shareholders' equity
Paid up capital
15 .2
10,293,486,160
10,293,486,160
Share premium
15.8
2,241,230,396
2,241,230,396
Statutory reserve
16
8,184,646,579
7,528,626,614
17a
441,469,626
109,193,803
Revaluation reserve
18
1,503,518,556
1,511,486,306
19a
5,086,036
4,513,294
20a
1,791,274,627
1,341,080,535
Other reserve
Surplus in profit and loss account / Retained earnings
Total Shareholders' equity
Total liabilities and Shareholders' equity
24,460,711,980
23,029,617,108
254,912,200,069
243,868,804,824
287
Balance Sheet
as at 31 December 2014
Particulars
Amount in Taka
Notes
2014
2013
21a
21a.1
26,742,389,739
30,869,304,940
Letters of guarantee
21a.2
61,408,149,593
55,438,139,259
21a.3
20,698,448,178
20,885,957,458
21a.4
9,262,180,366
9,221,494,133
118,111,167,876
116,414,895,790
Other commitments
118,111,167,876
116,414,895,790
These financial statements should be read in conjunction with the annexed notes 1 to 51.
Chairman
Director
Director
Managing Director
ACNABIN
Chartered Accountants
Dhaka, 26 February 2015
288
Notes
Amount in Taka
2014
2013
23a
18,445,885,369
22,010,657,745
24a
(15,573,523,588)
(17,678,359,259)
2,872,361,781
4,332,298,486
25a
6,194,358,289
5,582,706,055
26a
2,033,125,238
2,155,485,165
27a
806,468,141
812,592,003
11,906,313,449
12,883,081,709
28a
3,279,735,275
2,939,016,912
29a
582,596,952
550,258,309
Legal expenses
30a
35,854,242
37,756,195
31a
112,446,490
134,001,255
32a
210,809,010
227,285,212
33
8,674,785
11,590,000
Directors' fees
34a
3,799,929
4,364,816
Auditors' fees
35a
1,150,000
690,000
36
37a
400,253,143
348,115,280
Other expenses
38a
1,114,305,707
1,155,846,289
5,749,625,533
5,408,924,268
6,156,687,916
7,474,157,441
Specific provision
2,643,500,000
2,980,000,000
General provision
114,000,000
642,000,000
76,000,000
362,000,000
(1,510,000)
10,000,000
2,831,990,000
3,994,000,000
(7,000,000)
24,527,202
51,598,089
10,135,000
2,876,588,089
4,028,662,202
3,280,099,827
3,445,495,239
1,180,000,000
1,616,000,000
(292,800,000)
887,200,000
1,616,000,000
2,392,899,827
1,829,495,239
54,394,765
200,684,344
2,447,294,592
2,030,179,583
39a
40a
Deferred tax
20.1a
289
Amount in Taka
Notes
2014
2013
Appropriations
Statutory reserve
General reserve
656,019,965
689,099,048
656,019,965
689,099,048
Retained surplus
20a
1,791,274,627
1,341,080,535
45a
2.32
1.78
These financial statements should be read in conjunction with the annexed notes 1 to 51.
Chairman
Director
Director
Managing Director
ACNABIN
Chartered Accountants
Dhaka, 26 February 2015
290
Notes
Amount in Taka
2014
2013
23,176,223,192
27,019,442,414
Interest payments
(16,338,208,336)
(17,374,446,980)
Dividend receipts
79,659,231
89,885,351
2,033,125,238
2,155,485,165
26,343,014
6,064,168
(3,356,517,489)
(2,921,049,473)
(650,305,772)
(806,734,400)
(1,247,770,954)
(1,862,253,078)
41a
1,866,257,765
1,558,097,238
42a
(1,482,600,260)
(1,429,170,216)
4,106,205,631
6,435,320,188
(11,634,112,033)
(3,274,763,630)
4,089,651,062
4,760,494,847
(4,074,433,703)
(8,849,257,530)
3,859,709,442
(16,835,943,667)
2,784,707,590
20,902,604,991
861,472,179
(1,340,021,056)
2,338,428,624
729,880,009
(1,774,576,839)
(3,907,006,036)
2,331,628,792
2,528,314,152
5,000,000
5,000,000
25,040,898
(35,329,490)
(541,008,697)
(859,824,544)
(3,624,186)
(6,126,544)
1,646,486
2,079,350
(512,945,499)
(894,201,228)
43a
44a
291
Notes
Amount in Taka
2014
2013
Receipts from issue of ordinary share including premium net off Tax
(1,286,685,770)
(935,771,469)
(1,286,685,770)
(935,771,469)
531,997,523
698,341,455
2,039,687
(5,400,826)
18,519,621,089
17,826,680,460
19,053,658,299
18,519,621,089
2,340,059,101
2,683,867,027
15,194,723,820
14,958,779,761
1,512,686,578
870,698,901
Reverse repo
6,188,800
6,275,400
19,053,658,299
18,519,621,089
Dividend paid
Net cash used in financing activities
These financial statements should be read in conjunction with the annexed notes 1 to 51.
Chairman
Dhaka, 26 February 2015
292
Director
Director
Managing Director
293
Cash dividend
Share premium
Chairman
2,241,230,396
2,241,230,396
2,241,230,396
7,528,626,614
8,184,646,579
656,019,965
7,528,626,614
7,528,626,614
Taka
Statutory
reserve
1,511,486,306
1,503,518,556
(7,967,750)
1,511,486,306
1,511,486,306
Taka
Revaluation
reserve
109,193,803
441,469,626
Director
Director
441,469,626
622,833,216
(290,557,394)
109,193,803
109,193,803
Taka
Revaluation
gain / loss on
investments
These financial statements should be read in conjunction with the annexed notes 1 to 51.
10,293,486,160
10,293,486,160
10,293,486,160
2,241,230,396
Taka
Taka
10,293,486,160
Share
premium
Paid-up Capital
Restated balance
Particulars
4,513,294
5,086,036
5,086,036
572,743
4,513,294
4,513,294
Taka
F.C.
Translation
gain
(1,286,685,770)
2,392,899,827
23,354,497,923
572,743
622,833,216
(290,557,394)
(7,967,750)
23,029,617,108
23,029,617,108
Taka
Total
23,029,617,108
Managing Director
1,341,080,535
1,791,274,627 24,460,711,980
(656,019,965)
(1,286,685,770)
2,392,899,827
1,341,080,535
1,341,080,535
1,341,080,535
Taka
Retained
earnings
294
Particulars
Price
PBL Exchange
(UK) Ltd.
PBL Finance
(Hong Kong) Ltd.
Closing price
58.88310
120.91510
10.04684
Average price
60.06865
124.49635
10.03687
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Profit and loss resulting
from transactions between Group are also eliminated on consolidation.
295
2.1.4
Assets and liabilities are translated at the exchange rate prevailing at the balance sheet date.
ii.
Income and expenses in the income statement are translated at an average rate approximating the
rates at the year end;
iii.
iv.
As per BAS 21, Foreign Currency Transactions, foreign currency denominated non-monetary items of the OBUs
are translated at historical rate, as the OBUs are considered as an integral part of the Banks operation not a foreign
operation due to specific regulations governing the OBU and its unique nature.
exchange
296
Liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual maturity term as
per the following basis [Annexure-I & I (1)]:
i.
Balance with other Banks and financial institutions, money at call and short notice, etc. are on the basis of their
maturity term;
ii. Investments are on the basis of their respective maturity;
iii. Loans and advances / investments are on the basis of their repayment schedule;
iv. Fixed assets are on the basis of their useful lives;
v. Other assets are on the basis of their realization / amortization;
vi. Borrowing from other Banks, financial institutions and agents, etc. are as per their maturity / repayment terms;
vii. Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal by the depositors;
viii. Provisions and other liabilities are on the basis of their payment / adjustments schedule.
2.1.7
Reporting period
These financial statements cover one calendar year from 1st January to 31st December 2014.
2.1.8
Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realize the asset
and settle the liability simultaneously (note-9a, 14a.1, 25a, 26a.1).
2.2
2.2.1
2.2.2
Loans and advances are stated in the balance sheet on gross basis.
b.
Interest / profit is calculated on a daily product basis but charged and accounted for on accrual basis. Interest / profit
on classified loans and advances / investments is kept in suspense account as per Bangladesh Bank instructions
and such interest / profit is not accounted for as income until realised from borrowers [note - 7a.9 (x)]. Interest /
profit is not charged on bad and loss loans / investments as per guidelines of Bangladesh Bank. Records of such
interest amounts are kept in separate memorandum accounts.
c.
Commission and discounts on bills purchased and discounted are recognized at the time of realization.
d.
Provision for loans and advances / investments is made on the basis of year-end review by the management
following instructions contained in Bangladesh Bank BCD Circular no. 34, dated November 16, 1989, BCD Circular
no. 20, dated December 27, 1994, BCD Circular no. 12, dated September 4, 1995, BRPD Circular no. 16, dated
December 6, 1998, BRPD Circular no. 9, dated May 14, 2001, BRPD Circular no.02, February 2005, BRPD Circular no.
09, August 2005, BRPD Circular no. 17, dated December 06, 2005, BRPD circular no.32, dated October 27, 2010,
BRPD Circular no.14, dated September 23, 2012, BRPD Circular no19, dated December 27, 2012, BRPD Circular no
05, dated May 29, 2013 and BRPD Circular no 16, dated November 18, 2014 . The rates of provision for loans and
advances / investments are given below:
Particulars
General provision on unclassified general loans and advances / investments
General provision on unclassified small enterprise financing
Rate
1%
0.25%
1%
2%
General provision on unclassified consumer financing other than housing finance, loan for
professionals and loans for BGs/MBs/SDs
5%
General provision on Special Mention Account (SMA) except Short Term Agriculture Loans
0.25%-5%
20%
50%
100%
297
2.2.3
e.
Loans and advances / investments are written off to the extent that (i) there is no realistic prospect of recovery, and
(ii) against which legal cases are pending for more than five years as per guidelines of Bangladesh Bank. These write
off however will not undermine / affect the claim amount against the borrower. Detailed memorandum records for
all such write off accounts are meticulously maintained and followed up.
f.
Amounts receivable on credit cards are included in advances to customers at the amounts expected to be recovered.
Investments
All investment securities are initially recognised at cost, being fair value of the consideration given, including acquisition
charges associated with the investment. Premiums are amortized and discounts accredited, using the effective yield
method and are taken to discount income. The valuation method of investments used are:
Held to maturity (HTM)
Investments which have fixed or determinable payments, and are intended to be held to maturity, other than those that
meet the definition of held at amortized cost-others are classified as held to maturity. Investment (HTM)-BHBFC is shown
in the financial statements at cost price.
Held for trading (HFT)
Investments classified in this category are acquired principally for the purpose of selling or repurchasing -in short-trading
or if designated as such by the management. After initial recognition, investments are measured at fair value and any
change in the fair value is recognised in the statement of income for the period in which it arises. These investments are
subsequently revalued at current market value on weekly basis as per Bangladesh Bank Guideline. Revaluation gain has
been shown in revaluation reserve account & revaluation loss has been shown in Profit & Loss account.
Value of investments has been enumerated as follows :
Items
Amortized value
Market value
Amortized value
Market value
Prize bond
At cost
BHBFCs-debenture
At cost
298
a.
All fixed assets are stated at cost less accumulated depreciation as per BAS-16 Property, Plant and Equipment. The
cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the asset to
its working condition for its intended use inclusive of inward freight, duties and non-refundable taxes.
b.
The Bank recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part
of such an item when that cost is incurred if it is probable that the future economic benefits embodied with the item
will flow to the company and the cost of the item can be measured reliably. Expenditure incurred after the assets
have been put into operation, such as repairs and maintenance, is normally charged off as revenue expenditure in
the period in which it is incurred.
Revaluation of Land and Building: As per Bangladesh Accounting Standard (BAS-16) revaluation should be made
with sufficient regulatory compliance to ensure that the carrying amount does not differ materially from that which
would be determined using the fair value at the end of reporting period. The fair value of Land and Buildings is
usually determined from market based evidence by an appraisal that is normally undertaken by professionally
qualified Valuers. Therefore, any upward increases of the assets have positive impact on the capital adequacy of
the Bank (50% of the asset revaluation is considered as Tier-2 Supplementary Capital). With a view to qualify for
higher capital adequacy, the bank revalued its Land and Buildings upon complying with all regulatory requirements.
d.
Depreciation is charged for the year at the following rates on reducing balance method on all fixed assets other than
vehicles, software and all fixed assets of ATM related on which straight line depreciation method is followed and no
depreciation is charged on land:
Category of fixed assets
Land
Nil
Buildings
2.50%
10%
Office equipments
20%
Library books
20%
Vehicles
20%
2.2.5
Rate
Rate
10%
Office equipment
20%
e.
For additions during the year, depreciation is charged for the remaining days of the year and for disposal depreciation
is charged up to the date of disposal.
f.
On disposal of fixed assets, the cost and accumulated depreciation are eliminated from the fixed assets schedule
and gain or loss on such disposal is reflected in the income statement, which is determined with reference to the
net book value of the assets and net sale proceeds.
g.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
have been capitalized as part of the cost of the asset as per BAS-23.
h.
Leasehold properties are recorded at present value of minimum lease payments or fair market value, whichever is
lower as per the provisions of BAS-17. The carrying value of leasehold properties is amortized over the remaining
lease term or useful life of leasehold property, whichever is lower.
Intangible assets
a.
An intangible asset is recognized if it is probable that the future economic benefits that are attributable to the asset
will flow to the entity and the cost of the assets can be measured reliably.
b.
Software represents the value of computer application software licensed for use of the Bank, other than software
applied to the operation software system of computers. Intangible assets are carried at its cost, less accumulated
amortization and any impairment losses.
Initial cost comprises license fees paid at the time of purchase and other directly attributable expenditure that are
incurred in customizing the software for its intended use.
2.2.6
c.
Expenditure incurred on software is capitalized only when it enhances and extends the economic benefits of
computer software beyond their original specifications and lives and such cost is recognized as capital improvement
and added to the original cost of software.
d.
Software is amortized using the straight line method over the estimated useful life of 10 (ten) years commencing from
the date of the application. Software is available for use over the best estimate of its useful economic life.
Impairment of Assets:
The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment is as follows:
The Bank assesses at the end of each reporting period or more frequently if events or changes in circumstances indicate that the
carrying value of an asset may be impaired, whether there is any indication that an asset may be impaired. If any such indication
exits, or when an annual impairment testing for an asset is required, the bank makes an estimate of the asset's recoverable
amount. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cashgenerating unit is considered as impaired and is written down to its recoverable amount by debiting to profit & loss account.
Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the carrying amount
of an asset may be impaired.
299
Other assets
Other assets include all balance sheet accounts not covered specifically in other areas of the supervisory activity and
such accounts may be quite insignificant in the overall financial condition of the Bank.
2.2.8
2.2.9
Receivables
Receivables are recognised when there is a contractual right to receive cash or another financial asset from another
entity.
2.2.10 Inventories
Inventories measured at the lower of cost and net realizable value.
2.2.11
Leasing
Leases are classified as finance leases whenever the 'terms of the lease' transfer substantially all the risks and rewards of
ownership to the lessee as per BAS-17 " Leases". All other leases are classified as operating leases as per BAS-17 "Leases".
The Bank as lessor
Amount due from lessees under finance leases are recorded as receivables at the amount of the Bank's net investment in
the leases (note-7a.2). Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate
of return on the bank's net investment outstanding in respect of the leases.
The Bank as lessee
Assets held under finance leases are recognised as assets of the Bank at their fair value at the date of acquisition or, if lower, at the
present value of the minimum lease payments (note-9a). The corresponding liability to the lessor is included in the balance sheet as a
finance lease obligation (note-14a.9). Lease payments are apportioned between finance charges and reduction of the lease obligation
so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets.
2.2.12
Non-banking assets:
Non-banking assets are acquired on account of the failure of a borrower to repay the loan on time after receiving the
decree from the Court regarding the right and title of the mortgage property. The Bank has awarded ownership of the
mortgage properties according to the verdict of the Honorable Court in accordance with the section 33 (7) of Artharin
Adalat-2003. The value of Non-Banking Assets has been determined and reported in the financial statements on the
basis of valuation report of an Independent valuer named "M/S MSK Inspection Company Ltd." details of which is
presented in (note-11).
Share Capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
2.3.1
Authorised Capital
Authorised capital is the maximum amount of share capital that the Bank is authorised by its Memorandum and Articles
of Association. Details are shown in note 15.1.
2.3.2
Paid up Capital
Paid up capital represents total amount of shareholders' capital that has been paid in full by the ordinary shareholders.
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at
shareholders meetings. In the event of a winding-up of the Bank, ordinary shareholders rank after all other shareholders
and creditors and are fully entitled to any residual proceeds of liquidation. Details are shown in note 15.2.
300
Statutory reserve
As per Bank Companies Act, the Bank requires to transfer 20% of its current year's profit before tax to statutory reserve
until such reserve equals to its paid up capital and we comply with this requirement.
2.5
Revaluation reserve
When an asset's carrying amount is increased as a result of revaluation, the increase amount should be credited directly
to equity under the head of revaluation surplus / reserve as per BAS-16: "Property, Plant and Equipment". The Bank
revalued its land and buildings during the year 2008 & 2013 which are absolutely owned by the Bank and the increased
amount was transferred to revaluation reserve account accordingly. The tax effects on revaluation gain are measured and
recognised in the financial statements as per BAS-12: Income Taxes.
2.5.1
2.5.2
2.5.3
Share premium
Share premium is the capital that the Bank raises upon issuing shares that is in excess of the nominal value of the shares.
The share premium may be applied by the Bank in paying up un-issued shares to be allotted to members as fully paid
bonus shares or writing-off the preliminary expenses of the Bank or the expenses of or the commission paid or discount
allowed on, any issue of shares or debentures of the Bank or in providing for the premium payable on the redemption
of any redeemable preference shares or of any debentures of the Bank. Share premium was shown in accounts after
deduction of income tax @ 3% on share premium as per finance Act-2010.
2.6
Contingent liabilities
A contingent liability is A possible obligation that arises form past events and the existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or
A present obligation that arises from past events but is not recognised because:
a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
b) the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility of an outflow of
resources embodying economic benefits is reliably estimated.
Contingent assets are not recognised in the financial statements as this may results in the recognition of income which
may never be realised.
2.7
2.8
301
2.9.1
2.9.2
Deferred taxation
Deferred tax is accounted for in accordance with BAS 12: "Income Taxes". Deferred tax normally results in a liability being
recognized within the Statement of Financial Position. BAS 12 defines a deferred tax liability as being the amount of
income tax payable in future periods. Deferred tax is recognized on differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and
are accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable
temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be
available against which deductible temporary differences, unused tax losses or unused tax credits can be utilized. Such
assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit. Deferred tax assets and liabilities are offset when there is a legally enforceable right to
set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the company intends to settle its current tax assets and liabilities on a net basis.
2.9.3
2.9.4
Other liabilities
Other liabilities comprise items such as provision for loans and advances/investments, provision for taxation, interest
payable, interest suspense, accrued expenses, obligation under finance lease etc. Other liabilities are recognised in the
balance sheet according to the guidelines of Bangladesh Bank, Income Tax Ordinance 1984 and internal policy of the
Bank.
2.9.5
302
2.9.7
2.10
Revenue recognition
2.10.1
Risk management
Risk is inherent to the banking business and Bank adds shareholders value by converting opportunities into profit. The
Bank evaluates its opportunities in terms of risk-reward relationship. The risks that are taking by the Bank are reasonable,
controlled, within its financial resources and credit competence.
In Prime Bank, risk is managed through a clear organizational structure, risk management and monitoring process
that are closely aligned with the activities of the Banks risk management policy and process as well as in line with the
guidelines provided by the countrys central bank, Bangladesh Bank.
The Banks risk management policy and process is composed with all the structure, policies, process and strategies
within the Bank so that it does not conflict with other risk management policies.
The essential elements of an effective risk management framework are:
1.
Clearly defined roles and responsibilities to avoid conflict of interest between business lines.
2.
Developing a risk culture where everyone will understand the impact of risk before taking any business decision.
3.
Robust risk management and governance by the board for understanding the risks taken by the Bank for safety and
protection of the assets.
303
The risk management of the Bank covers following six core risk areas:
2.11.1
a.
Credit Risk
b.
c.
d.
e.
f.
Credit risk
It arises mainly from lending, trade finance, leasing and treasury businesses. This can be described as potential loss arising
from the failure of a counter party to perform as per contractual agreement with the Bank. The failure may result from
unwillingness of the counter party or decline in his / her financial condition. Therefore, the Banks credit risk management
activities have been designed to address all these issues.
The Bank has segregated duties of the officers / executives involved in credit related activities. A separate Corporate
Division has been formed at Head Office which is entrusted with the duties of maintaining effective relationship with
the customers, marketing of credit products, exploring new business opportunities, etc. Moreover, credit approval,
administration, monitoring and recovery functions have been segregated. For this purpose, three separate units have
been formed within the credit division. These are (a) Credit Risk Management Unit (b) Credit Administration Unit and
(c) Credit Monitoring and Recovery Unit. Credit Risk Management Unit is entrusted with the duties of maintaining asset
quality, assessing risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending
operation, etc. Adequate provision has been made on classified loans / investments is shown in note-14a.3.
A thorough assessment is done before sanction of any credit facility at Credit Risk Management Unit. The risk assessment
includes borrower risk analysis, financial analysis, industry analysis, historical performance of the customer, security of
the proposed credit facility, etc. The assessment process at Head Office starts at Corporate Division by the Relationship
Manager / Officer and ends at Credit Risk Management Unit when it is approved / declined by the competent authority.
Credit approval authority has been delegated to the individual executives. Proposals beyond their delegation are
approved / declined by the Executive Committee and / or the Management of the Bank. Concentration of credit risk is
shown in note -7a. 4.
In determining Single borrower / Large loan limit, the instructions of Bangladesh Bank are strictly followed. Internal audit
is conducted at periodical intervals to ensure compliance of Banks and Regulatory polices. Loans are classified as per
Bangladesh Banks guidelines. Concentration of single borrower / large loan limit is shown in note-7a.8.
2.11.2
2.11.3
2.11.4
304
Prime Bank Ltd (PBL) has implemented an enterprise-wide AML (Anti-Money Laundering) and CFT (Combating the
Financing of Terrorism) compliance program, which covers all the activities of the Bank and is reasonably designed
to comply with applicable laws and regulations. It is the policy of PBL to take all reasonable and appropriate steps to
prevent persons engaged in money laundering, fraud, or other financial crime, including the financing of terrorists or
terrorist operations, from utilizing PBL products and services. PBL makes every effort to remain in full compliance with all
applicable AML and CFT laws, rules and standards in the jurisdictions in which it does business.
In order to facilitate compliance with AML and CFT requirements, PBL has appointed one of its Senior Executives as
the CAMLCO (Chief Anti-Money Laundering Compliance Officer) and a team of employees with experience on AML
and CFT requirements under law, as well as money laundering detection and prevention, to oversee PBL AML and CFT
program. PBL has developed and implemented written AML and CFT policies, procedures, internal controls and systems,
which include (but are not limited) a customer identification program and procedures; procedures to collect and
refresh, as appropriate, customer due diligence information; processes to assess risk; processes and systems to monitor
customer transactions and activity; processes and systems to identify and report suspicious activity; and, processes to
keep required records. PBL educates its all employees on AML and CFT requirements and activities and also subjects
its AML and CFT program to regular independent testing. PBL cooperates fully with law enforcement and regulatory
investigations and inquiries in identifying the criminals involve in Money Laundering and Terrorist Activities/Financing.
2.11.5
2.11.6
2.11.7
Liquidity risk
The object of liquidity risk management is to ensure that all foreseeable funding commitments and deposit withdrawals
can be met when due. To this end, the Bank is maintaining a diversified and stable funding base comprising of core
retail and corporate deposits and institutional balance (note - 13a). Management of liquidity and funding is carried out
by Treasury Department under approved policy guidelines. Treasury front office is supported by a very structured Mid
office and Back office. The Liquidity management is monitored by Asset Liability Committee (ALCO) on a regular basis. A
written contingency plan is in place to manage extreme situation.
305
Market risk
The exposure of market risk of the Bank is restricted to foreign exchange risk, interest rate risk and equity risk.
Foreign exchange risk
Foreign exchange risk is defined as the potential change in earnings due to change in market prices. The foreign exchange risk
of the Bank is minimal as all the transactions are carried out on behalf of the customers against underlying L/C commitments
and other remittance requirements. No foreign exchange dealing on Bank's account was conducted during the year.
Treasury Department independently conducts the transactions and the back office of treasury is responsible for verification
of the deals and passing of their entries in the books of account. All foreign exchange transactions are revalued at Markto-Market rate as determined by Bangladesh Bank at the month-end. All Nostro accounts are reconciled on a monthly
basis and outstanding entry beyond 30 days is reviewed by the management for its settlement. The position maintained
by the bank at the end of day was within the stipulated limit prescribed by the Bangladesh Bank.
Interest rate risk
Interest rate risk may arise either from trading portfolio or non-trading portfolio. The trading portfolio of the Bank consists
of Government treasury bills of 28 days maturity. The short-term movement in interest rate is negligible or nil. Interest
rate risk of non-trading business arises from mismatches between the future yield of an asset and its funding cost. Asset
Liability Committee (ALCO) monitors the interest rate movement on a regular basis.
Equity risk
Equity risk arises from movement in market value of equities held. The risks are monitored by Investment Committee
under a well designed policy framework. The market value of equities held was, however, lower than the cost price at the
balance sheet date (Annexure-B).
2.11.9
i)
Name
Independent Director
Chairman
ii)
Mr. M. A. Khaleque
Director
Member
iii)
Director
Member
iv)
Independent Director
Member
v)
Independent Director
Member
During the year 2014, the Audit Committee of the Board conducted 10 (Ten) meetings in which the important issues were
discussed / reviewed are presented in note no. 48.
2.11.12 Risk Management Committee Disclosures
The Board of Directors constituted with the following 5 (Five) members Risk Management Committee of the Board, the third
Committee of the Board besides the Executive Committee and the Audit Committee in consistence with Bank Company
(Amendment) Act 2013 and the Bank hereby has been compliant with the BRPD Circular no. 11, dated October 27, 2013.
Sl No.
306
i)
Name
Director
Chairman
ii)
Director
Member
iii)
Director
Member
iv)
Director
Member
v)
Director
Member
The Risk Management Committee of the Board has formed soon after the Central Banks instruction issued in October 27, 2013.
The Committee conducted 4 (Four) meeting during the year where the following important issues were discussed / reviewed:
i) Determine risk management framework, policy formulation, supervision techniques and above all continuous training;
ii) Drawing appropriate TOR for the Committee in conformity with the Bank Company Act and Central Bank guidelines,
considering the objectives of the Committee, experience and professional personnel with proper job description to be
assigned the responsibilities;
iii) Constituted the Management Committee on core Risk Management. The Management Committee will use check list/
Questionnaires to ascertain the effectiveness of the mitigation of tools and gaps thereof and they will update the check
list / questionnaires and taking appropriate actions as and when required;
v) Recovery drives to be strengthened for negative shift of NPL categories. Management should also take appropriate
steps to bring the NPL ratio below 5% as suggested by Central Bank;
vi) ALCO should monitor the liquidity and FX risks to keep the shock at bare minimum;
vii) Management should get the rating done by the borrowers as per decision taken by the Board and quarterly report
should be submitted regarding the progress of rating to the Risk Management Committee of the Board;
ix) The Management Committee advised to incorporate of appropriate clause / provision in the relevant sanction advice
to the effect that Banks auditors / internal audit team would periodically visit for review of the operation of business under
its financing.
xi) Review the Regulatory & Internal Circulars related to ABP/IDBP payment.
xii) Submission of statements on ICAAP under SRP for the year 2013 for SRP-SREP dialogue.
xiv) Compliance with payment card industry data security standard (PCIDSS)
2.12
Basic earnings per share has been calculated in accordance with BAS 33 Earnings per Share which has been shown on
the face of the profit and loss account. This has been calculated by dividing the basic earnings by the weighted average
number of ordinary shares outstanding during the year.
No diluted earnings per share is required to be calculated for the year as there was no scope for dilution during the year
under review.
2.13
Where necessary, all the material events after the reporting period have been considered and appropriate adjustment /
disclosures have been made in the financial statements.
2.14
Memorandum items
Memorandum items are maintained to have control over all items of importance and for such transactions where the
Bank has only a business responsibility and no legal commitment. Bills for collection, Stock of travellers cheques, savings
certificates, wage earners bonds and other fall under the memorandum items. However, Bills for Collection is shown
under contingent liabilities as per Bangladesh Banks format of reporting.
2.15
Related party transaction is a transfer of resources, services or obligation between related parties, regardless of whether
a price is charged. Detail of related parties transaction are given in note-49.
2.16
Segmental information is presented in respect of the Groups business and of Prime Bank Limited.
Business segments
Business segments report consists of products and services whose risks and returns are different from those of other
business segments. These segments comprise Conventional Banking including Off-shore Banking Units, Islamic Banking,
Prime Bank Investment Limited and Prime Bank Securities Limited. Business segments report are shown in Annexure-H.
Geographical segments
Geographical segments report consists of products and services within a particular economic environment where risks and
returns are different from those of other economic environments. These segments comprise of Prime Bank Limited, Offshore Banking Units, Prime Bank Investment limited, Prime Bank Securities Limited, Prime Exchange Co. (Pte.) Ltd, Singapore,
PBL Exchange (UK) Ltd. and PBL Finance (Hong Kong) Limited. Geographical segments report are shown in Annexure-H.
307
Inter-segment transactions are generally based on inter-branch fund transfer measures as determined by the
management. Income, expenses, assets and liabilities are specifically identified with individual segments. Based on such
allocation, segmental balance sheet as on 31 December 2014 and segmental profit and loss account for the year ended
31 December 2014 have been prepared.
2.17
Compliance report on Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS)
The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of Bangladesh Accounting
Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS). While preparing the financial statements, Prime
Bank applied all the applicable BAS and BFRS as adopted by ICAB. Details are given below:
BAS no
Status
Applied *
Inventories
Applied
Applied
Applied
10
Applied
Construction Contracts
11
N/A
Income Taxes
12
Applied
16
Applied
Leases
17
Applied
Revenue
18
Applied
Employee Benefits
19
Applied
20
N/A
21
Applied
Borrowing Costs
23
Applied
24
Applied
26
N/A **
27
Applied
31
N/A
32
Applied *
33
Applied
34
Applied ***
Impairment of Assets
36
Applied
37
Applied
Intangible Assets
38
Applied
39
Applied *
Investment Property
40
N/A
Agriculture
41
N/A
BFRS no
Status
N/A
N/A
Business Combinations
N/A
Insurance Contract
N/A
N/A
N/A
Applied
Operating Segments
Applied
10
Applied
Joint Arrangement
11
N/A
308
12
N/A
13
Applied
N/A=Not Applicable
* In order to comply with certain specific rules and regulations of the local Central Bank (Bangladesh Bank) which are
different to BAS/BFRS, some of the requirements specified in these BAS/BFRSs are not applied. Refer below (note-2.18)
for such recognition and measurement differences that are most relevant and material to the Bank and the Group.
** This Standard regards a retirement benefit plan as a reporting entity separate from the employers of the participants
in the plan. Therefore, it is not applicable for the Banks annual report as it is the employer and not the retirement benefit
plan itself.
*** The objective of BAS 34 is to prescribe the minimum content of an interim financial report and to prescribe the
principles for recognition and measurement in complete or condensed financial statements for an interim period
and hence it is not applicable for annual financial statements. However, the Bank being a listed entity in Dhaka and
Chittagong Stock Exchanges regularly publishes Interim Financial Report complying with BAS 34.
New and amended standards adopted by the Bank and the Group
There are no new standards, amendments to standards and interpretations that are effective for the first time for the
financial year ended 31 December 2014 that have a significant impact on the Group and the Bank.
New and amended standards and interpretations not yet adopted by the Bank and the Group
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning from
1 January 2014 or later, and have not been applied in preparing these consolidated financial statements. None of these
is expected to have a significant effect on the consolidated financial statements of the Group and the Bank. Although
International Accounting Standards Board (IASB) has issued a new standard (IFRS 9) along with related amendments to
existing standards (IAS/BAS 32, 39) but none of these have been adopted and/or endorsed locally as BAS/BFRS and as
such any possible impact has not been determined.
2.18
The consolidated financial statements of the Group and the financial statements of the Bank as at and for the period ended
31 December 2014 have been prepared under the historical cost convention except investments and in accordance with
the First Schedule (section 38) of the Bank Companies Act 1991, as amended by Bangladesh Bank (the Central Bank of
Bangladesh) through BRPD Circular No. 14 dated 25 June 2003, other Bangladesh Bank Circulars, Bangladesh Financial
Reporting Standards (BFRSs), the Companies Act 1994, the Securities and Exchange Rules 1987, Dhaka and Chittagong
Stock Exchanges listing regulations. In case, any requirement of provisions and circulars issued by Bangladesh Bank
differs with those of other regulatory authorities, the provisions and circulars issued by Bangladesh Bank shall prevail.
As such the Group and the Bank have departed from those contradictory requirements of BFRSs in order to comply with
the rules and regulations of Bangladesh Bank which are disclosed below:
BAS: As per requirements of BAS 39, investment in shares and securities generally falls either under at fair value through
profit and loss account or under available for sale where any change in the fair value (as measured in accordance with
BFRS 13) at the period-end is taken to profit and loss account or revaluation reserve respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquoted shares are
revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should
be made for any loss arising from diminution in value of investment; otherwise investments are recognized at costs.
BAS: As per requirement of BAS 39, where securities T-bills and T-bonds will fall under the category of held for trading,
any change in the fair value of held for trading assets is recognized through profit and loss account.
Securities T-bills designated as held to maturity are measured at amortized cost method and interest income is recognized
through the profit & loss account.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at period end any gains on revaluation
of securities which have not matured as at the balance sheet date are recognised in other reserves as a part of equity and
any losses on revaluation of securities which have not matured as at the balance sheet date are charged in the profit and
loss account. Interest on HFT securities including amortisation of discount are recognised in the profit and loss account.
HTM securities which have not matured as at the balance sheet date are amortised at the period end and gains or losses
on amortisation are recognised in other reserve as a part of equity.
BAS: As per BAS 39 an entity should start the impairment assessment by considering whether objective evidence of
impairment exists for financial assets that are individually significant. For financial assets are not individually significant,
the assessment can be performed on an individual or collective (portfolio) basis.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012
and BRPD circular no. 05 dated 29 May 2013 a general provision at 0.25% to 5% under different categories of unclassified
loans (good/standard loans) has to be maintained regardless of objective evidence of impairment. Also provision for
sub-standard loan, doubtful loans and bad losses has to be provided at 20%, 50% and 100% respectively for loans and
advances depending on the duration of overdue. Again as per BRPD circular no. 10 dated 18 September 2007, a general
provision at 1% is required to be provided for all off-balance sheet exposures. Such provision policies are not specifically in
line with those prescribed by BAS 39.
309
310
BAS: Loans and advances to customers are generally classified as loans and receivables as per BAS 39 and interest
income is recognised through effective interest rate method over the term of the loan. Once a loan is impaired, interest
income is recognised in profit and loss account on the same basis based on revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans
are not allowed to be recognised as income, rather the corresponding amount needs to be credited to an interest in
suspense account, which is presented as liability in the balance sheet.
BAS: As per BAS 1 Other Comprehensive Income is a component of financial statements or the elements of Other
Comprehensive Income are to be included in a Single Comprehensive Income (OCI) Statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by all
banks. The templates of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income
nor are the elements of Other Comprehensive Income allowed to include in a Single Comprehensive Income (OCI)
Statement. As such the company does not prepare the other comprehensive income statement. However elements of
OCI, if any, are shown in the statements of changes in equity.
In several cases Bangladesh Bank guidelines categorize, recognize, measure and present financial instruments differently
from those prescribed in BAS 39. As such some disclosure and presentation requirements of BFRS 7 and BAS 32 cannot
be made in the accounts.
BAS: When an entity sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a
similar asset) at a fixed price on a future date (repo or stock lending), the arrangement is accounted for as a deposit, and
the underlying asset continues to be recognized in the entitys financial statements. This transaction will be treated as loan
and the difference between selling price and repurchase price will be treated as interest expense.
Bangladesh Bank: As per BRPD guidelines, when a bank sells a financial asset and simultaneously enters into an agreement
to repurchase the asset (or a similar asset) at a fixed price on a future date (repo or stock lending), the arrangement is
accounted for as a normal sales transactions and the financial assets are de-recognized in the sellers book and recognized
in the buyers book.
BAS: As per BAS 39, financial guarantees are contracts that require an entity to make specified payments to reimburse
the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms
of a debt instrument. Financial guarantee liabilities are recognized initially at their fair value, and the initial fair value is
amortized over the life of the financial guarantee. The financial guarantee liability is subsequently carried at the higher
of this amortized amount and the present value of any expected payment when a payment under the guarantee has
become probable. Financial guarantees are included within other liabilities.
Bangladesh Bank: As per BRPD 14, financial guarantees such as L/C, L/G will be treated as Off-Balance Sheet items. No
liability is recognized for the guarantee except the cash margin.
BAS: Cash and cash equivalent items should be reported as cash item as per BAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as money at call and on short notice, Treasury bills, Prize
bond are not shown as cash and cash equivalent. Money at call and on short notice presented on the face of the balance
sheet, and Treasury bills, Prize bonds are shown in Investments.
x) Non-banking asset
Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.
BAS: Cash flow statement can be prepared using either in direct method or in indirect method. The presentation is
selected to present these cash flows in a manner that is most appropriate for the business or industry. The method
selected is applied consistently.
Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect method.
BAS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations
as per BAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
BAS: Intangible asset must be identified and recognized, and the disclosure must be given as per BAS 38.
Bangladesh Bank: There is no requirement for regulation of intangible assets in BRPD 14.
BAS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement of disclosure of offbalance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must be disclosed
separately in face of balance sheet.
BAS: There is no requirement to show appropriation of profit in the face of statement of comprehensive income.
Bangladesh Bank: As per BRPD 14, an appropriation of profit should be disclosed in the face of profit and loss account.
Bangladesh Bank: As per BRPD 14, provision on loans and advances are presented separately as liability and cannot be
netted off against loans and advances.
BAS: As per BAS 1 an entity shall not offset assets and liabilities or income and expenses, unless required or permitted by
an BFRS. Again recovery of written off loans should be charged to profit & loss account as per BAS 18.
Bangladesh Bank: As per BRPD 14, recoveries of amount previously written off should be adjusted with the specific
provision for loans and advances.
The financial statements of the Islamic banking branches have also been prepared as per Bank Companies Act 1991,
BFRSs and other prevailing laws and regulations applicable in Bangladesh.
BAS: As per para 19 of BFRS 10 a company shall prepare consolidated financial statements using uniform accounting
policies for like transactions and other event in similar circumstances.
The Bank made provision as per the Press release # BSEC/Mukhopatro/2011/1733 dated 31 December 2014 of Bangladesh
Securities and Exchange Commission, 20% provision has been made by Prime Bank Securities Limited while Prime
Bank Investment Limited made 50.00% provision on diminution in value of investments and 42.18% provision made on
impairment of client margin loan.
2.19
i) Internal Control
The objective of internal control is to ensure that management has reasonable assurance that (i) operations are effective,
efficient and aligned with strategy, (ii) financial reporting and management information is reliable, complete and timely
accessible, (iii) the entity is in compliance with applicable laws and regulations as well as its internal policies and ethical values
including sustainability, and (iv) assets of the company are safeguarded and frauds & errors are prevented or detected.
Prime Bank Limited has established an effective internal control system whose primary aim is to ensure the overall control
of risks and provide reasonable assurance that the objectives set by the Bank will be met. It has designed to develop a high
level risk culture among the personnel of the Bank, establish efficient and qualified operating model of the Bank, ensure
reliability of internal and external information including accounting and financial information, secure the Banks operations
and assets, and comply with laws, regulatory requirements and internal policies.
The Board of Directors of Prime Bank, through its Audit Committee, periodically reviews the effectiveness of Banks
internal control system covering all the material controls, including financial, operational and compliance controls, risk
management systems, the adequacy of resources, qualifications and experience of staff of the accounting and financial
reporting function, training programs, budget, etc. Board Audit Committee reviews the actions taken on internal control
issues identified by the Internal & External Auditors and Regulatory Authorities. It has active oversight on the internal
audits independence, scope of work and resources and it also reviews the functions of Internal Control & Compliance
Division of Head Office, particularly the scope of the annual audit plan and frequency of the internal audit activities.
Internal Audit is the continuous and systematic process of examining and reporting on the activities of an organization
undertaken by the specially assigned staff(s). Internal Auditor works as the Eyes & Ears of the management. It may
therefore be used to bridge the gap between management & shop floor. It can assure the management that the Internal
Controls are adequate and in operations, the policies and systems laid down are being adhered to and accounting records
provided by the lower level are correct.
Internal Audit Mechanism is used as an important element to ensure good governance of PBL. Internal Audit Activity of
PBL is effective and it provides senior management with a number of important services. These include detecting and
preventing fraud, testing internal control, and monitoring compliance with own policies & procedures, applicable rules &
regulations, instructions/ guidelines of regulatory authority etc.
During the period 2014, ICCD conducted inspection on many of the Branches/ Divisions of Head Office of the Bank and
submitted reports presenting the findings of the audits/ inspections. Necessary control measures and corrective actions
have been taken on the suggestions or observations made in these reports. The reports or key points of the Reports have
also been discussed in the meetings of the Audit Committee of the Board and necessary steps have been taken according
to the decision of the said Committee for correct functioning of Internal Controls & Compliance.
311
The increasing wave of fraud and forgery cases in the banking sector in recent time calls for concerted steps in identifying ways
for reducing or preventing frauds and forgeries by analyzing the causes and effect of frauds and forgeries, and prescribing
effective control strategies for salvaging frauds in the banking sector. Prime Bank does always pay due attention on antifraud internal controls for prevention of fraud and forgery. The Bank has already implemented some strategies like Financial
Control Strategy, Personnel Control Strategy, Accounting Control Strategy, Credit Control Strategy, Cost Control Strategy,
Administrative Control strategy, Process Control Strategy etc. in order to strengthening the control system further. Although it
is not possible to eliminate all frauds because of the inherent limitations of Internal Control System, the Board of Directors and
Management have taken all the measures to keep the operational risk in a very minimum level. Internal Control and Compliance
Division (ICCD) assesses and evaluates the effectiveness of Banks anti-fraud internal control measures, recommends for further
improvement in implementation of aforesaid strategies and reports to the Bangladesh Bank on effectiveness of controls at
the end of each quarter following their prescribed format. During the year 2014, 5 (five) instances of frauds were identified and
reported to Bangladesh Bank. Total amount related to those frauds is Taka 27.98 lakh (approx) against which adequate provision
has been maintained in the books of accounts. Management is exerting their all-out efforts to recover the aforesaid amount.
2.20 Restatement
In order to comply with the para 21 of Bangladesh Financial Reporting Standard (BFRS-10) Consolidated Financial
Statements and Bangladesh Accounting Standards (BAS-8) Accounting Policies, Changes in Accounting Estimates and
Errors, it requires to restate the following items:
Particulars
Balance with other banks and financial institutions
Notes
Amount in Taka
31.12.2014
31.12.2013
01.01.2013
In Bangladesh
Previous balance
272,467,219
378,707,076
(8,566,603)
(11,839,367)
Restated balance:
370,140,473
239,695,022
1,331,769,386
709,510,273
1,466,724,570
1,331,769,385
1,079,650,746
1,706,419,592
3,144,775,578
2,552,122,357
2,798,965,983
(7,046,474)
(8,779,252)
3,144,775,578
2,545,075,883
2,790,186,731
27,556,891,987
26,525,056,611
27,294,077,412
Outside Bangladesh
Other assets
10
Previous balance
Add/(Less): Inter-company transaction
Restated balance:
Deposits and other accounts
251,534,389
13
(2,597)
27,556,891,987
26,525,056,611
27,294,074,815
Bills payable
2,942,889,234
2,081,417,055
3,421,438,111
25,106,122,963
21,125,908,174
19,188,831,632
149,197,612,596
152,086,878,317
132,058,072,695
(8,566,603)
(11,836,771)
152,078,311,714
132,046,235,924
201,810,693,554
181,950,580,482
18,881,002,879
16,071,268,524
14,095,474,132
(7,046,474)
(8,779,252)
18,881,002,879
16,064,222,050
14,086,694,880
26,742,389,739
25,014,184,593
26,979,335,910
5,855,120,347
6,085,186,554
26,742,389,739
30,869,304,940
33,064,522,464
14
Previous balance
Add/(Less): Inter-company transaction
Restated balance:
Off-balance Sheet exposures
149,197,612,596
204,803,516,780
21 & 21a
312
Amount in Taka
Notes
31.12.2014
31.12.2013
01.01.2013
Letters of guarantee
Previous balance
61,408,149,593
54,276,988,409
42,846,572,774
1,161,150,850
1,184,550,356
61,408,149,593
55,438,139,259
44,031,123,130
20,698,448,178
19,359,031,049
28,353,752,325
1,526,926,409
2,248,420,445
20,698,448,178
20,885,957,458
30,602,172,770
9,262,180,366
9,104,975,230
10,007,661,530
116,518,903
87,103,659
9,262,180,366
9,221,494,133
10,094,765,189
Add: Margin
Restated balance:
Irrevocable letters of credit
Previous balance
Add: Margin
Restated balance:
Bills for collection
Previous balance
Add: Margin
Restated balance:
Other contingent liabilities
118,111,167,876
116,414,895,790
117,792,583,553
Particulars
Consolidated interest income / profit on investment
Notes
Amount in Taka
2014
2013
23
18,445,885,369
22,010,657,745
391,826,475
455,964,116
11,667,012
67,578,007
84,434,808
81,448,997
18,933,813,664
22,615,648,865
465,893,062
580,044,928
465,893,062
580,044,928
18,467,920,602
22,035,603,937
15,573,523,588
17,678,359,259
452,709,342
568,950,077
46,302,622
48,064,346
25,717,753
29,034,365
16,098,253,305
18,324,408,047
24
Additional balance
469,094,461
585,646,533
Restated balance
469,094,461
585,646,533
15,629,158,843
17,738,761,514
313
Particulars
Consolidated other operating income
Prime Bank Limited
Notes
Amount in Taka
2014
2013
27
806,468,141
812,592,003
23,193,276
26,901,295
971,313
569,922
979,239
1,027,803
54,459,314
45,312,857
886,071,283
886,403,880
Additional balance
3,201,399
5,601,605
Restated balance
3,201,399
5,601,605
882,869,884
880,802,275
2.21
The financial statements were approved by the Board of Directors on 26 February 2015.
2.22 General
314
a) These financial statements are presented in Taka, which is the Banks functional currency. Figures appearing in these
financial statements have been rounded off to the nearest Taka.
b) The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided for in the books
of the Bank.
c) Figures of previous year have been rearranged whenever necessary to conform to current years presentation.
Amount in Taka
2014
2013
Consolidated cash
i Cash in hand
Prime Bank Limited (note-3a.1)
2,340,059,101
2,683,867,027
9,228
21,223
25,000
7,011
24,958,132
22,029,154
2,365,051,461
2,705,924,415
15,194,723,820
14,958,779,761
15,194,723,820
14,958,779,761
17,559,775,281
17,664,704,176
2,284,671,278
2,632,476,975
55,387,823
51,390,052
2,340,059,101
2,683,867,027
13,528,018,067
13,797,228,087
1,284,357,478
773,672,374
14,812,375,545
14,570,900,461
382,348,275
387,879,300
15,194,723,820
14,958,779,761
17,534,782,921
17,642,646,788
3a
3a.1
Cash in hand
In local currency
In foreign currency
3a.2
315
Amount in Taka
2014
a)
13,100,234,670
13,528,018,067
13,797,228,087
427,783,397
1,923,842,387
25,077,954,010
36,528,669,420
Surplus / (deficit)
b)
2013
11,873,385,700
74,077,853,175
73,799,812,639
48,999,899,165
37,271,143,219
38,178,188,680
36,528,669,420
87,605,871,241
73,799,812,639
49,427,682,561
37,271,143,219
Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained for the year 2013 in
accordance with section 33 of Bank Companies Act, 1991 and MPD circular nos. 05 dated December 01, 2010.
3a.4
4,434,548,251
5,769,261,088
13,100,234,670
11,873,385,700
17,534,782,921
17,642,646,788
Over 5 years
3a.5
2,340,059,101
2,683,867,027
1,666,705,753
14,958,779,761
17,013,171,209
5,246,989,603
53,052,917,111
48,905,409,848
1,994,766,400
5,000,000
10,000,000
74,077,853,175
73,799,812,639
258,877,340
244,165,129
32,854,585
87,665,728
14,949,084
134,757,244
306,681,009
466,588,101
34,213,790
96,447,627
272,467,219
370,140,473
316
Amount in Taka
2014
2013
Outside Bangladesh
Prime Bank Limited (note-4a.2)
1,253,809,238
626,533,772
42,420,563
31,552,651
27,004,332
36,333,566
8,535,253
15,090,284
1,331,769,386
709,510,273
1,604,236,605
1,079,650,746
258,877,340
244,165,129
1,253,809,238
626,533,772
1,512,686,578
870,698,901
451,555
470,903
4a.1 In Bangladesh
Current account
Agrani Bank Ltd., Principal Branch, Dhaka
Agrani Bank Ltd., Purana Paltan Branch, Dhaka
91,859
93,129
6,000,000
2,500,000
421,522
11,394,974
2,077
2,997,108
2,997,108
273,329
274,369
5,558,530
499,000
1,701,991
1,694,141
7,294,929
7,306,518
195
483
63,395,674
93,554,383
335,461
75,014
717
1,292
45,665
45,665
1,192,109
1,194,719
3,117,664
3,123,755
6,062,379
59,884
7,091,261
7,130,137
729,105
688,232
521,853
543,353
34,548,014
32,824,908
2,415,682
3,515,663
472,015
3,294,338
7,444,042
7,446,192
288,300,173
347,658,546
173,341
174,841
440,638,250
528,561,547
288,300,173
347,658,546
152,338,077
180,903,001
317
Amount in Taka
2014
2013
320,555
307,870
3,227
14,334
14,334
17,016
17,016
467,809
41,996,514
5,532,288
5,267,539
4,856
15,473,223
950
950
12,603
12,603
6,370,411
63,093,276
Savings accounts
Al Arafah Islami Bank Ltd., Dhaka
64,622
64,622
36,595
36,595
67,635
67,635
168,851
168,852
100,000,000
100,000,000
258,877,340
244,165,129
75,324,652
319,322
5,480,696
2,180,840
4,370,045
3,235,755
3,265,829
3,216,184
67,065
584,056
36,487,520
4,527,980
87,228,607
8,797,334
183,578,934
159,786,208
5,222,540
8,110,938
2,826,530
3,147,975
22,210,205
8,602,136
15,683,490
9,335,805
32,423,765
30,785,285
15,622,827
17,697,455
84,540,590
32,091,018
250,802,434
14,632,726
14,736,883
318
672,653
570,635
29,956,770
24,531,556
546,234
828,466
32,633,551
4,723,254
6,194,466
3,311,468
25,668,495
6,989,715
Amount in Taka
2014
2013
33,718,293
19,477,075
24,303,332
26,878,103
2,240,494
2,306,917
2,265,228
6,553,566
20,835,713
21,846,696
292,499
469,724
25,592,031
3,547,477
72,954,547
25,255,331
43,058,439
15,925,386
23,520,569
51,956,036
14,638,739
5,315,001
5,536,254
4,849,610
6,669,508
55,245,752
56,056,726
18,581,484
1,318,969
5,582,619
1,253,809,238
626,533,772
1,412,671,381
807,436,773
(Annexure -A)
4a.3 Maturity grouping of balance with other banks and financial institutions
Payable on demand
Up to 1 month
15,197
16,885
100,000,000
63,093,276
151,967
Over 5 years
1,512,686,578
870,698,901
70,928,312,066
56,147,165,851
70,928,312,066
56,147,165,851
Others
Prime Bank Limited (note-6a)
Prime Bank Investment Limited
Prime Bank Securities Limited
1,713,515,478
792,350,658
1,102,855,608
1,066,059,442
751,628,861
745,550,534
3,567,999,947
2,603,960,634
74,496,312,013
58,751,126,485
319
Amount in Taka
2014
2013
37,415,148,103
18,428,655,503
33,511,975,163
37,722,234,948
Other securities
1,714,704,278
788,626,058
72,641,827,544
56,939,516,509
1,215,262,051
1,883,343,497
6,396,833,170
502,226,451
10,263,299,733
2,861,419,655
17,875,394,955
5,246,989,603
1,994,766,400
Government bonds:
Prize bonds
Government bonds (note-6a.2)
6,188,800
6,275,400
53,046,728,311
48,899,134,448
53,052,917,111
48,905,409,848
70,928,312,066
56,147,165,851
Treasury Bill amounting to Tk 862,223,745.84 was placed as lien against ALS from Bangladesh Bank on 31.12.2014
b) Other investments:
Debentures of HBFC-bearing interest rate @ 5.5% (note-6a.3)
5,000,000
171,430,361
171,430,361
129,063,111
161,328,889
Lanka Bangla Finance Zero coupon bond interest rate @ 11.50% (note-6a.6)
83,073,414
100,075,000
324,475,510
349,516,408
1,000,473,081
10,000,000
1,713,515,478
792,350,658
72,641,827,544
56,939,516,509
3,097,836,950
1,867,566,359
17,270,237,935
12,748,348,547
4,804,452,330
1,883,343,497
4,311,998,542
2,065,293,139
14,760,391,175
43,604,902
Up to 1 month
Over 5 years
320
28,396,910,612
38,331,360,065
72,641,827,544
56,939,516,509
Amount in Taka
2014
2013
850,000,000
850,000,000
2,977,110,892
6,660,776,280
18,668,730,600
20,241,917,363
6,308,387,732
6,258,925,458
4,702,745,940
3,700,615,847
33,506,975,163
37,712,234,948
HFT
3 years T & T bonds
2 years Bangladesh Government treasury bonds (8.59%-10.98%)
5 years Bangladesh Government treasury bonds (7.86%-11.25%)
3,047,335,016
4,500,615,831
3,813,506,882
3,542,031,729
5,094,520,690
1,974,301,041
3,721,355,996
591,279,128
3,863,034,563
578,671,771
19,539,753,148
11,186,899,500
53,046,728,311
48,899,134,448
100,000,000
100,000,000
(95,000,000)
(90,000,000)
5,000,000
10,000,000
Opening balance
171,430,361
171,430,361
19,805,000
19,805,000
(19,805,000)
(19,805,000)
Redeemable value
171,430,361
171,430,361
161,328,889
201,661,111
18,134,222
22,667,778
(32,000,000)
(40,000,000)
(18,400,000)
(23,000,000)
129,063,111
161,328,889
Redeemable value
6a.6 Lanka Bangla Finance Zerocoupon Bond
Opening balance
Add: Addition/purchase during the year
Add: Interest accrued during the year
82,599,807
473,607
83,073,414
Redeemable value
321
Amount in Taka
2014
2013
100,075,000
150,112,500
5,025,000
17,062,500
(100,000,000)
(50,000,000)
(5,100,000)
(17,100,000)
100,075,000
Redeemable value
6a.8 Investment in shares
Quoted
AB Bank Ltd.
47,632,736
39,201,794
24,429,908
24,429,908
21,243,239
29,538,943
29,538,943
DESCO
19,569,239
19,397,475
28,551,258
28,551,258
37,410,456
37,410,456
20,380
20,380
18,370,447
14,338,010
23,395,426
6,962,625
27,970,098
27,970,098
22,130,581
22,130,581
37,009,980
37,009,980
299,596,650
324,637,548
15,694,430
15,694,430
4,184,430
4,184,430
5,000,000
5,000,000
24,878,860
24,878,860
324,475,510
349,516,408
Agreement
date
Reversal date
30.12.2014
01.01.2015
Amount
743,665,000
-
Total
743,665,000
Agreement
date
Reversal date
29.12.2014
01.01.2015
Total
322
Amount
1,000,473,081
1,000,473,081
Amount in Taka
2014
2013
Minimum
Outstanding
during the year
Maximum
outstanding
during the year
Daily average
outstanding
during the year
183,770,000
7,905,000,000
442,907,438
1,576,648,070
1,576,648,070
4,319,584
200,000,000
2,750,000,000
118,767,123
204,521,374
9,663,489,403
1,350,131,545
142,780,100,320
147,380,881,952
6,008,332,073
6,310,122,858
381,629,800
398,772,908
149,170,062,193
154,089,777,718
3,344,650,634
3,711,608,286
145,825,411,559
150,378,169,432
6,893,824,341
8,631,546,764
152,719,235,900
159,009,716,196
36,737,396,813
33,752,101,030
18,211,516,645
22,698,310,397
35,650,698,225
33,237,874,555
3,603,454,341
3,806,849,550
7,415,940,130
11,147,870,482
124,216,527
265,174,901
12,552,789,720
12,138,261,922
4,881,673,072
5,888,494,557
1,131,739,750
1,042,299,553
759,121,216
614,841,924
Hire purchase
6,166,006,210
7,950,577,640
15,545,547,671
14,838,225,441
142,780,100,320
147,380,881,952
142,780,100,320
147,380,881,952
Outside Bangladesh
323
Amount in Taka
2014
2013
3,058,777,247
4,376,377,482
1,527,774,826
1,831,500,795
4,586,552,073
6,207,878,277
147,366,652,393
153,588,760,229
Up to 1 month
30,925,806,865
34,355,437,436
24,803,590,283
33,818,860,912
52,909,983,172
46,707,588,279
36,009,389,193
29,030,155,201
2,717,882,879
9,676,718,401
147,366,652,393
153,588,760,229
Over 5 years
336,799,649
527,936,859
4,299,112,110
8,682,621,264
1,063,047,630
391,065,600
5,698,959,388
9,601,623,723
817,286,316
3,713,129,166
4,881,673,072
5,888,494,557
87,831,186,862
90,930,470,525
324
18,211,516,645
22,698,310,397
36,737,396,813
33,752,101,030
142,780,100,320
147,380,881,952
4,586,552,073
6,207,878,277
147,366,652,393
153,588,760,229
Amount in Taka
2014
2013
1,854,730,519
1,865,934,020
31,618,811,445
11,908,593,920
7,522,730,824
3,732,411,949
3,603,454,341
3,806,849,550
12,552,789,720
12,138,261,922
20,054,785,565
19,532,373,794
1,330,547,279
8,962,095
7,509,737
66,304,300,432
84,023,601,882
2,515,540,173
16,573,223,455
145,511,921,874
151,722,826,209
147,366,652,393
153,588,760,229
i) Agricultural industries
1,994,050,047
1,691,360,795
6,070,725,733
7,477,767,779
4,356,321,717
5,819,255,353
761,551,074
2,303,534,065
707,533,596
1,310,169,543
748,929,479
750,806,206
3,624,965,032
4,702,298,898
15,611,991,380
4,910,682,968
5,139,792,413
7,757,516,825
27,288,439,961
47,300,209,450
66,304,300,432
84,023,601,882
108,095,013,290
109,175,984,414
23,268,148,497
27,743,849,035
5,880,071,007
6,422,469,216
Rajshahi Division
4,141,205,976
4,604,585,904
Barisal Division
111,647,769
142,885,592
Sylhet Division
1,551,503,515
1,743,916,954
Rangpur Division
836,669,471
517,279,364
143,884,259,526
150,350,970,479
Rural
Dhaka Division
Chittagong Division
1,722,496,792
1,712,691,772
785,355,167
689,955,890
Khulna Division
64,859,403
143,815,669
Rajshahi Division
587,730,942
462,949,214
Sylhet Division
Outside Bangladesh
321,950,563
228,377,205
3,482,392,867
3,237,789,750
147,366,652,393
153,588,760,229
325
Amount in Taka
2014
2013
7a.6 Sector-wise loans, advances and lease / investments including bills purchased and discounted
Public sector
59,912,330
Co-operative sector
Private sector
7,960,394
147,306,740,063
153,580,799,835
147,366,652,393
153,588,760,229
119,143,801,725
132,454,115,539
311,203,980
2,118,339,891
15,864,992
2,681,663,312
3,636,471,239
3,245,988,405
4,683,447,951
118,678,100
238,650,747
Government bonds
372
24,166,735
Personal guarantee
8,577,141,544
5,883,313,924
Other securities
13,272,309,962
4,550,254,203
147,366,652,393
153,588,760,229
25
202,696,000
Name of clients
Outstanding
(Tk. in million)
Funded
Non-funded
63,403,731,000
Nil
Negotiation
under in Process
Not Applicable
Total
(Tk. in million)
Total
(Tk. in million)
1,862.61
450.20
1,607.00
2,057.20
2,286.01
1,400.50
534.40
1,934.90
1,087.15
1,330.50
1,894.60
3,225.10
2,419.59
1,594.85
978.20
978.20
438.65
531.10
1,533.70
2,064.80
2,585.39
2,337.24
809.60
1,182.30
1,991.90
1,780.73
2,788.38
141.10
318.70
459.80
569.15
1,580.67
409.20
657.70
1,066.90
2,208.80
1,243.60
3,452.40
1,886.78
KDS Group
780.10
577.00
1,357.10
MAX Group
443.60
1,887.00
2,330.60
2,451.93
Meghna Group
1,360.20
4,588.80
5,949.00
6,209.44
Mir Group
1,057.30
301.10
1,358.40
1,109.57
690.90
561.00
1,251.90
1,347.10
Molla Group
326
30
61,404,100,000
Amount in Taka
2014
2013
2,157.20
1,962.70
2,973.60
2,399.20
1,301.80
2,161.90
1,349.00
287.60
338.30
3,642.20
413.80
30,600.40
291.90
616.70
975.90
562.80
250.70
438.90
957.60
2,324.30
3,972.70
2,547.10
30,803.70
2,449.10
2,579.40
2,973.60
3,375.10
1,864.60
2,412.60
1,787.90
1,245.20
2,662.60
7,614.90
2,960.90
61,404.10
2,054.09
2,094.08
3,373.60
4,034.22
2,463.72
2,830.39
1,316.43
1,991.73
1,260.54
1,972.20
1,947.77
2,119.42
1,610.29
63,403.73
The bank complies with the requirement of the section 26 (b) of the banking companies Act 1991 as amendment in 2013
in connection to the general limitations of credit line.
The information related to large loan is presented according to the BRPD circular 14 dated June 25, 2003 and rearrange
the comparative information
7a.9 Particulars of loans, advances and lease / investments
i) Loans / investments considered good in respect of which the Bank is fully secured
ii) Loans / investments considered good against which the Bank holds no
security other than the debtors' personal guarantee
iii) Loans / investments considered good secured by the personal undertaking
of one or more parties in addition to the personal guarantee of the debtors
iv) Loans / investments adversely classified; provision not maintained there against
v) Loans / investments due by directors or officers of the banking company or any
of them either separately or jointly with any other persons (note-7a.4b+7a.4c.vii)
vi) Loans / investments due from companies or firms in which the directors of
the Bank have interest as directors, partners or managing agents or in case
of private companies, as members
vii) Maximum total amount of advances / investments, including temporary
advances made at any time during the year to directors or managers or
officers of the banking company or any of them either separately or jointly
with any other person.
viii) Maximum total amount of advances / investments, including temporary
advances / investments granted during the year to the companies or firms
in which the directors of the banking company have interest as directors,
partners or managing agents or in the case of private companies, as
members
ix) Due from banking companies
x) Classified loans and advances / investments
a) Classified loans and advances / investments on which interest
has not been charged (note-7a.10)
b) Provision on classified loans and advances / investments
(for details see note-14a.3 & 14a.5)
c) Provision kept against loans / investments classified as bad debts
d) Interest credited to Interest Suspense Account (note-14a.6)
xi) Cumulative amount of written off loans / investments
Opening Balance
Amount written off during the year
Amount realised against loans / investments previously written off
The amount of written off / classified loans / investments for which law suits
have been filed (note-7a.13)
138,441,662,321
116,535,874,451
2,697,014,628
7,798,673,512
6,227,975,444
29,254,212,265
147,366,652,393
153,588,760,229
1,863,692,614
1,873,443,756
1,863,692,614
1,873,443,756
11,214,642,962
7,814,501,727
4,586,296,479
3,796,912,946
2,722,214,058
3,733,047,125
3,184,620,754
1,913,098,167
5,519,757,834
2,122,934,300
7,642,692,134
202,683,654
2,979,164,346
2,540,593,488
5,519,757,834
6,064,168
17,739,148,578
12,702,465,814
327
Amount in Taka
2014
2013
130,535,948,803
141,281,895,324
5,616,060,628
4,492,363,178
136,152,009,431
145,774,258,502
1,852,281,599
874,419,377
Classified
Sub-standard
Doubtful
Bad / Loss
1,268,158,259
1,054,568,739
8,094,203,104
5,885,513,611
11,214,642,962
7,814,501,727
147,366,652,393
153,588,760,229
1,739,048,000
1,687,252,207
7a.11 Particulars of required provision for loans, advances and lease / investments
Status
Base
for provision
Rate
(%)
136,152,009,431
*Various
General Provision
Loans/investments (Including SMA)
Interest receivable on loans/investments
641,454,035
6,414,540
5,237,694
1,745,462,540
1,692,489,901
*General provision is kept @ 1% on general loans and advances / investments and 0.25% on small enterprise financing,
2% on certain other types of lending and 5% on consumer financing.
Status
Base
for provision
Rate
(%)
Specific provision
Sub-standard
1,053,890,162
20
210,778,032
86,980,444
Doubtful
1,120,063,435
50
560,031,717
458,927,698
Bad / Loss
3,796,912,946
100
3,796,912,946
3,184,620,754
4,567,722,695
3,730,528,896
6,313,185,236
5,423,018,797
6,336,963,297
5,433,236,415
23,778,061
10,217,618
267,423,897
308,693,049
Letter of guarantee
61,408,149,593
614,081,496
554,381,393
Letter of credit
20,698,448,178
206,984,482
208,859,575
328
26,742,389,739
Rate
1%
1,088,489,875
1,071,934,017
1,088,490,000
1,090,000,000
125
18,065,983
Amount in Taka
2014
2013
197,535,420
181,091,420
1,286,331
1,286,331
17,477,895
21,699,401
Ashulia Branch
7,028,374
10,944,530
Banani Branch
29,808,789
27,297,839
Bangshal Branch
31,309,540
26,595,540
Barisal Branch
545,085
545,085
Bashundhara Branch
7,290,747
7,412,477
2,157,714
570,714
Biswanath Bracnh
319,700
5,105,996
736,361,692
33,324,152
24,302,502
Chaumuhani Branch
13,248,317
153,779
507,721
507,721
1,719,330
1,894,530
Dinajpur Branch
1,782,297
1,179,786
2,529,054,520
1,702,826,470
Bogra Branch
1,150,000
187,000
187,000
226,081
1,028,601
176,209,687
171,871,396
800,000
800,000
326,495
326,495
111,393,494
93,893,494
277,365
277,365
Halishahar Branch
1,075,000
716,034
Hathazari Branch
9,439,029
8,973,879
19,633,392
9,632,100
26,740,776
26,740,776
76,854,347
60,434,498
83,114,851
82,621,251
15,499,110
15,499,110
Jamalpur Branch
311,000
Jatrabari Branch
1,918,013
1,130,421
912,410,130
6,046,580
2,293,964
2,293,964
Jessore Branch
Joypara
Joydevpur Chowrasta Branch
1,696,973
1,773,411,000
933,174,863
102,899,915
133,348,985
Khatunganj Branch
795,319,047
795,152,047
2,363,516,165
119,979,665
Khulna Branch
Kishoreganj
Kustia Branch
Laldighi East Branch
84,755
4,257,716
2,100,403
1,021,859,621
412,745,500
Madhabdi Branch
2,937,003
2,937,003
Mirpur-1 Branch
12,028,175
7,987,830
6,165,056,254
6,113,652,133
Motijheel Branch
Mohakhali Branch
Mouchak Branch
Moulvibazar Branch, Dhaka
2,012,365
2,012,365
153,102,393
124,884,081
91,239,263
95,627,284
329
Amount in Taka
2014
2013
8,482,743
8,482,743
63,273,369
60,233,982
Narayanganj Branch
41,247,381
41,284,660
1,392,076
1,392,076
3,092,696
2,582,696
Pabna Branch
8,280,882
8,280,882
Pallabi Branch
4,448,836
3,290,751
Panthapath Branch
6,628,535
3,731,725
13,139,851
6,339,826
Naogaon Branch
3,258,862
2,053,082
314,953,333
314,731,333
Rangpur Branch
2,377,017
2,737,017
8,392,261
61,580,105
50,477,613
Rajshahi Branch
51,744,782
49,638,430
Savar Branch
46,139,940
84,760,405
4,966,853
Simrail Branch
5,465,265
5,465,265
57,202,183
43,796,199
Sremangal Branch
40,011,512
42,497,866
Sylhet Branch
25,395,848
20,537,350
32,078,626
31,151,126
Tangail Branch
857,583
857,583
Tajpur Branch
2,128,421
Tongi Branch
2,432,493
2,432,493
1,841,723
1,550,500
41,767,517
21,200,849
17,739,148,578
12,702,465,814
4,586,552,073
6,207,878,277
2,307,272,268
2,423,668,487
6,893,824,341
8,631,546,764
3,058,777,247
4,376,377,482
1,527,774,826
1,831,500,795
4,586,552,073
6,207,878,277
2,172,817,434
1,812,860,923
2,895,891,748
1,050,338,299
1,116,986,582
330
33,027,942
22,182,513
4,586,552,073
6,207,878,277
Amount in Taka
2014
2013
6,612,686,818
6,406,719,662
12,804,672
17,924,016
2,628,471
6,155,630
3,649,221
6,145,266
14,596,992
16,945,051
2,286,942
2,869,448
6,648,653,116
6,456,759,073
Land
3,702,444,788
3,543,593,939
Building
1,649,581,248
1,474,637,827
818,405,134
768,205,298
1,440,363,793
1,306,112,866
321,433,375
319,950,486
1,805,129
1,746,017
7,934,033,467
7,414,246,433
31,690,384
31,690,384
249,631,775
233,788,335
43,528,537
42,426,440
293,160,312
276,214,775
2,991,998
2,978,790
1,742,930
1,637,587
Leased property:
Leased vehicles
ATM
Vehicles
1,410,371
1,410,371
6,145,299
6,026,748
8,265,029,462
7,728,178,340
1,756,221,695
1,463,175,057
6,508,807,767
6,265,003,283
244,443,757
244,091,071
43,212,614
43,212,614
287,656,371
287,303,685
183,777,321
145,587,306
Intangibles assets
Software-core banking
Software-ATM
Cost of intangibles assets
Less: Accumulated amortization
Net book value at the end of the year (See annexure-C for detail)
103,879,050
141,716,379
6,612,686,818
6,406,719,662
The fixed assets recognised and measurements policy are described in note 2.2.4
331
Amount in Taka
2014
2013
9,067,223,175
8,420,462,735
(2,999,999,940)
(2,999,999,940)
(712,500,000)
(712,500,000)
(37,500,000)
(37,500,000)
(56,352,624)
(56,352,624)
(10,993,235)
(10,993,235)
(34,365,722)
(34,365,722)
Less: Interest receivable from PBL Finance (Hong Kong) Limited (restated)
(7,046,474)
(2,191,547,381)
(2,323,714,250)
3,023,964,273
2,237,990,490
37,500,000
37,500,000
23,532,489
216,892,611
51,482,825
44,668,080
4,800,033
4,780,278
Less: Due from Investment in PBL Finance (Hong Kong) Limited (note-10a)
3,495,959
3,244,424
120,811,305
307,085,393
3,144,775,578
2,545,075,883
24,722,480
23,087,731
2,305,667
3,814,211,521
3,814,211,521
4,351,658,435
5,008,368,379
132,911,416
111,353,884
2,191,547,381
2,323,714,250
17,926,965
15,018,391
641,454,035
523,769,388
1,381,562,486
1,174,675,523
274,085,598
164,348,546
8,202,887
7,072,019
18,533,017
23,675,936
Migration account
Suspense account (note -10a.2)
Encashment of PSP / BSP
384,161,142
204,781,969
136,623,524
35,151,558
ATM
10,395,688
1,407,446
Credit card
115,268,108
92,196,123
46,222,676
17,352,333
13,551,793,026
13,540,184,998
4,484,569,851
5,119,722,263
9,067,223,175
8,420,462,735
10a.1 Interest / profit receivable: Amount represents interest / profit receivable on loans, advances and lease / investments,
interest on term placement, Government securities & foreign currency balance, etc.
332
Amount in Taka
2014
2013
10a.2 Suspense account includes TT / DD in transit, advance against Land/ Building, advance against new branch, advance
against TA/ DA, printing and stationery, postage, suspense- others, clearing adjustment account etc.
10a.3 Sundry assets
Protested Bills
18,304,367
29,931,566
(14,526,624)
27,918,309
1,947,391
46,222,676
17,352,333
71,000,000
100%
71,000,000
71,000,000
18,304,367
100%
18,304,367
15,404,942
100%
1,212,244
1,874,748
50%
937,374
4,268,575
100%
4,268,575
94,510,317
87,617,186
94,538,648
88,338,648
28,332
721,462
2,999,999,940
2,999,999,940
712,500,000
712,500,000
10,993,235
10,993,235
56,352,624
56,352,624
34,365,722
34,365,722
3,814,211,521
3,814,211,521
As per the provision of the Exchange Demutualization Act-2013 and in accordance with the Bangladesh Security Exchange
Commission (BSEC) approved Demutualization Scheme, Dhaka Stock Exchange Ltd. (DSE) alloted total 72,15,106 ordinary
shares at a face value of Tk 10.00 each and Chittagong Stock Exchange Ltd. (CSE) alloted total 42,87,330 ordinary Shares at
face value of Tk 10.00 each against the Membership of DSE and CSE respectively. Out of the above DSE transferred 2,886,042
shares and CSE transferred 1,714,932 shares directly to the credit of the Beneficiary Owner's account of the company. The
remaining shares were credited to blocked accounts as per provisions of the Exchange Demutualization Act, 2013. As there is
no active market for shares of DSE and CSE, we have shown the value at original cost as investment.
11 Non-Banking Assets
Name of Parties
Possession date
18.03.2014
18.03.2014
124,438,400
51,902,240
176,340,640
The Bank has been awarded ownership of the mortgage properties of M/S Rima Flour Mills and M/S Ripon Motors
according to the verdict of the Honorable Court in accordance with the section 33(7) of Artharin Adalat-2003. An amount
of Tk.176,340,640/- is reported in the financial statements as Non -Banking assets. The value of Non-Banking Assets has
been determined on the basis of valuation report of an Independent valuer named M/S MSK Inspection Company Ltd.
12 Consolidated borrowings from other banks, financial institutions and agents
Prime Bank Limited (note-12a)
7,668,875,959
3,858,260,882
3,387,911,205
3,788,934,831
371,066,787
338,010,202
11,427,853,951
7,985,205,915
3,344,650,634
3,711,608,286
8,083,203,317
4,273,597,629
333
Amount in Taka
2014
2013
12a Borrowings from other banks, financial institutions and agents of the Bank
In Bangladesh (note-12a.1)
3,381,658,959
4,287,217,000
1,166,250,000
7,668,875,959
3,858,260,882
2,692,010,882
12a.1 In Bangladesh
Call deposits
PBL bond
2,500,000,000
2,500,000,000
4,354,922
1,968,953
NPSB Settlement
7,061,595
743,665,000
126,577,443
190,041,929
3,381,658,959
2,692,010,882
1,948,735,000
388,750,000
779,494,000
777,500,000
1,558,988,000
4,287,217,000
1,166,250,000
12a.3 Security against borrowings from other banks, financial institutions and agents
Secured (Treasury bills)
Unsecured
743,665,000
6,925,210,959
3,858,260,882
7,668,875,959
3,858,260,882
12a.4 Maturity grouping of borrowings from other banks, financial institutions and agents
Payable on demand
Up to 1 month
Over 1 month but within 3 months
Over 3 months but within 1 year
Over 1 year but within 5 years
Over 5 years
755,081,517
1,968,953
2,338,482,000
1,166,250,000
4,575,312,443
2,690,041,929
7,668,875,959
3,858,260,882
27,586,626,484
26,612,333,767
27,586,626,484
26,612,333,767
334
29,734,497
87,277,156
27,556,891,987
26,525,056,611
Amount in Taka
2014
2013
Bills payable
Prime Bank Limited (note-13a.1.c)
2,942,889,234
2,081,417,055
2,942,889,234
2,081,417,055
25,106,122,963
21,125,908,174
25,106,122,963
21,125,908,174
149,202,091,888
152,087,482,186
149,202,091,888
152,087,482,186
4,479,293
9,170,471
149,197,612,596
152,078,311,714
204,803,516,780
201,810,693,554
3,269,109,409
3,220,015,044
201,568,621,160
198,687,126,138
204,837,730,569
201,907,141,182
21,869,581
55,157,539
27,249,372
33,178,088
719,990,457
3,131,679,417
2,500,000,000
3,269,109,409
3,220,015,044
b) Customer Deposits
i) Current deposits and other accounts
Current / Al-wadeeah current deposits
Foreign currency deposits
Security deposits
Sundry deposits (note - 13a.2)
Less: Off-shore Banking Units
11,346,101,277
9,611,746,856
4,060,096,974
3,757,493,442
9,104,416
10,240,925
12,437,754,408
13,525,353,551
27,853,057,075
26,904,834,774
288,300,173
347,658,546
27,564,756,903
26,557,176,228
335
Amount in Taka
2014
2013
2,901,951,106
2,034,158,732
3,950,619
4,228,790
36,668,259
42,595,454
313,592
313,592
T. T. payable
4,720
119,720
938
767
2,942,889,234
2,081,417,055
25,078,873,591
21,092,730,086
85,381,031,529
90,251,742,484
13,293,344,787
11,965,259,585
902,232,979
793,839,134
46,405,492,137
45,944,961,566
145,982,101,432
148,955,802,769
201,568,621,160
198,687,126,138
204,837,730,569
201,907,141,182
21,869,581
55,157,539
27,564,756,903
26,557,176,228
27,586,626,484
26,612,333,767
Bills payable
Deposits from banks (note -13a.1.a)
Deposits from customers (note-13a.1.b.ii)
2,942,889,234
2,081,417,055
2,942,889,234
2,081,417,055
27,249,372
33,178,088
25,078,873,591
21,092,730,086
25,106,122,963
21,125,908,174
3,219,990,457
3,131,679,417
145,982,101,432
148,955,802,769
149,202,091,888
152,087,482,186
204,837,730,569
201,907,141,182
5,539,717,082
5,855,120,347
144,790,129
59,271,224
55,008,833
40,444,902
39,390,000
72,885,000
1,207,823,431
1,161,150,850
1,351,138,286
1,526,926,409
336
79,490,309
116,518,903
114,199,921
116,593,055
2,077,841,359
2,842,526,106
416,764,704
619,900,109
1,411,590,355
1,114,016,646
12,437,754,408
13,525,353,551
Amount in Taka
2014
13a.3 Payable on demand and time deposits
a) Demand deposits
Current deposits
Savings deposits (9%)
Foreign currency deposits (Non interest bearing)
Security deposits
Sundry deposits
Bills payable
b) Time deposits
Savings deposits (91%)
Fixed deposits
Special notice deposits
Deposits under schemes
Non resident Taka deposits
2013
11,367,970,858
2,259,551,067
3,771,796,801
9,104,416
12,437,754,408
2,942,889,234
32,789,066,784
9,666,904,396
1,901,331,736
3,409,834,896
10,240,925
13,525,353,551
2,081,417,055
30,595,082,558
22,846,571,896
87,881,031,529
14,013,335,244
46,405,492,137
902,232,979
172,048,663,784
204,837,730,569
19,224,576,438
90,251,742,484
15,096,939,002
45,944,961,566
793,839,134
171,312,058,624
201,907,141,182
2,022,588,387
3,269,109,409
8,344,684,894
3,771,796,801
187,429,551,077
204,837,730,569
2,789,570,000
3,220,015,044
6,369,399,824
3,409,834,896
186,118,321,418
201,907,141,182
35,780
710,933
17,343
764,057
117,090
268,276
278,310
1,015,432
5,034,420
6,713,528
21,869,581
92,048,513
2,500,000,000
655,191,315
3,269,109,409
55,157,539
346,346,029
2,818,511,476
3,220,015,044
30,818,341,049
52,232,350,268
29,123,967,930
48,594,967,734
37,855,340,887
764,057
198,625,731,926
31,263,902,485
58,915,442,556
32,818,144,014
22,402,309,920
51,199,196,580
6,713,528
196,605,709,083
337
Amount in Taka
2014
c) Maturity analysis of bills payable
Payable on demand
Up to 1 month
Over 1 month but within 3 months
Over 3 months but within 1 year
Over 1 year but within 5 years
Over 5 years but within 10 years
Over 10 years
2013
2,942,889,234
2,942,889,234
204,837,730,569
2,081,417,055
2,081,417,055
201,907,141,182
17,944,881,561
15,073,785,652
787,857,453
720,748,302
63,792,922
192,845,418
26,777,326
23,343,179
29,721,778
38,735,149
27,971,839
21,810,824
18,881,002,879
16,071,268,524
7,046,474
18,881,002,879
16,064,222,050
3,560,736,089
2,019,648,273
795,021
114,717,427
78,636,660
240,797,211
202,107,180
3,624,186
2,416,474,933
2,484,245,887
1,034,821,220
1,319,653,470
90,117,676
120,567,836
700
338
106,797,460
1,088,490,000
1,090,000,000
498,500,000
422,500,000
6,560,200
6,891,000
131,203,993
137,820,000
5,828,945,997
5,001,219,115
9,517,300
9,517,300
61,324,749
68,324,749
2,722,214,058
1,913,098,167
45,398,089
523,970
94,538,648
88,338,648
17,944,881,561
15,073,785,652
Amount in Taka
2014
2013
13,058,306,084
11,196,053,006
1,247,770,954
1,862,253,078
14,306,077,038
13,058,306,084
15,542,551,971
13,926,551,971
Provision
Balance of provision on 1 January
Provision of previous year
Provision made during the year (note-40a)
Net balance at 31 December
1,180,000,000
1,616,000,000
16,722,551,971
15,542,551,971
2,416,474,933
2,484,245,887
1,319,653,470
1,052,920,593
7,967,750
266,732,877
(292,800,000)
Balance as on 31 December
1,034,821,220
1,319,653,470
3,342,047,125
1,949,076,445
(2,122,934,300)
(2,540,593,488)
202,683,654
6,064,168
9,522,472
100,000,000
947,500,000
(9,522,472)
2,643,500,000
2,980,000,000
4,165,296,479
3,342,047,125
1,659,171,990
1,964,671,990
(109,522,472)
(947,500,000)
114,000,000
642,000,000
1,663,649,518
1,659,171,990
5,828,945,997
5,001,219,115
1,090,000,000
1,080,000,000
(1,510,000)
10,000,000
1,088,490,000
1,090,000,000
339
Amount in Taka
2014
2013
391,000,000
41,000,000
30,000,000
350,000,000
421,000,000
391,000,000
31,500,000
60,500,000
(41,000,000)
46,000,000
12,000,000
77,500,000
31,500,000
498,500,000
422,500,000
1,913,098,167
620,359,575
2,932,771,293
1,853,144,443
Less: Amount recovered from interest suspense account during the year
(1,248,876,000)
(347,292,000)
(874,779,402)
(213,113,851)
2,722,214,058
1,913,098,167
As per BRPD circular no. 14 dated September 23, 2012 as soon as any loan or advance is classified as 'Bad/Loss', charging
of interest in the same account will be ceased. But the existing banking software is consistently charging interest on the
classified loan accounts marked as bad and loss. Such interest against classified loans has been adjusted to loans and
advances and interest suspense account during the current year but the comparative figure could not be adjusted due
to impracticability of calculation of such accrued interest amount. However, we feel that the accrued interest amount is
not material in the context of financial position.
14a.7 Exchange equalization account
Balance as on 1 January
Balance as on 31 December
88,338,648
247,111,936
6,200,000
10,135,000
(168,908,288)
94,538,648
88,338,648
Within 1 year
3,721,693
3,721,693
340
97,507
3,624,186
Amount in Taka
2014
2013
25,000,000,000
25,000,000,000
300,000,000
300,000,000
8,838,212,760
8,838,212,760
1,155,273,400
1,155,273,400
10,293,486,160
10,293,486,160
300,000,000
300,000,000
8,838,212,760
8,838,212,760
1,155,273,400
1,155,273,400
10,293,486,160
10,293,486,160
15 Share capital
15.1 Authorized capital
2,500,000,000 ordinary shares of Taka 10 each
15.2 Issued, subscribed and fully paid up capital
30,000,000 ordinary shares of Taka 10 each issued for cash
883,821,276 ordinary shares of Taka 10 each issued as bonus shares
115,527,340 ordinary shares of Taka 10 each issued as right shares
15.2 Issued, subscribed and fully paid up capital
Declaration
No of share
Value in capital
Cumulative
1995
Opening capital
10,000,000
100,000,000
1996
6,000,000
60,000,000
160,000,000
1997
4,000,000
40,000,000
200,000,000
1999
20,000,000
200,000,000
400,000,000
2000
10,000,000
100,000,000
500,000,000
2001
10,000,000
100,000,000
600,000,000
2002
10,000,000
100,000,000
700,000,000
2003
30,000,000
300,000,000
1,000,000,000
2004
40,000,000
400,000,000
1,400,000,000
2005
35,000,000
350,000,000
1,750,000,000
2006
52,500,000
525,000,000
2,275,000,000
2007
56,875,000
568,750,000
2,843,750,000
2008
71,093,750
710,937,500
3,554,687,500
2009
106,640,620
1,066,406,200
4,621,093,700
115,527,340
1,155,273,400
5,776,367,100
2010
202,172,848
2,021,728,480
7,798,095,580
2011
155,961,911
1,559,619,110
9,357,714,690
2012
93,577,147
935,771,470
10,293,486,160
1,029,348,616
100,000,000
10,293,486,160
341
Amount in Taka
2014
2013
10,293,486,160
2,241,230,396
60
8,184,646,579
28,002,888
1,864,033,818
22,611,399,901
10,293,486,160
2,241,230,396
65
7,528,626,614
28,002,888
1,616,368,842
21,707,714,965
A) Total capital
1,663,649,518
1,088,490,000
77,500,000
230,897,400
751,759,278
1,000,000,000
4,812,296,196
27,423,696,097
1,659,171,990
1,090,000,000
31,500,000
67,835,681
755,743,153
1,500,000,000
5,104,250,824
26,811,965,789
374,460,497,009
216,324,253,765
21,632,425,376
5,791,270,720
12.68%
361,921,928,348
222,791,428,514
22,279,142,851
4,532,822,938
12.03%
Capital requirement
Tier - I
Tier - II
Total
Required
5%
5%
10.00%
Held
Required
10.45% 5%
2.23% 5%
12.68% 10.00%
Held
9.74%
2.29%
12.03%
342
Required
5%
5%
10.00%
10,293,486,160
10,293,486,160
2,241,230,396
2,241,230,396
8,184,646,579
7,528,626,614
1,791,274,627
1,341,080,535
22,510,637,762
21,404,423,705
1,663,649,518
1,088,490,000
77,500,000
220,734,813
751,759,278
1,000,000,000
4,802,133,609
27,312,771,370
1,659,171,990
1,090,000,000
31,500,000
54,596,901
755,743,153
1,500,000,000
5,091,012,044
26,495,435,749
373,023,367,945
214,891,840,014
21,489,184,001
5,823,587,369
12.71%
360,283,700,614
220,020,078,032
22,002,007,803
4,493,427,946
12.04%
Held
Required
10.48% 5%
2.23% 5%
12.71% 10.00%
Held
9.73%
2.31%
12.04%
Amount in Taka
15.5
Sponsors
Financial Institutions
Foreign Investors
Non- resident Bangladeshi
General Public
2014
2013
2014
2013
Taka
4,172,290,330
2,256,814,180
140,552,070
39,915,690
3,683,913,890
10,293,486,160
Taka
4,165,087,830
1,886,179,950
511,084,550
37,522,850
3,693,610,980
10,293,486,160
%
40.53%
21.92%
1.37%
0.39%
35.79%
100.00%
%
40.46%
18.32%
4.97%
0.36%
35.88%
100.00%
Number of share
holders
2013
15.6
2014
11,410
8,865
1,245
701
190
97
75
177
213
129
23,102
Taka
Shares
Percentage
1,922,053
15,260,431
8,859,553
10,064,830
4,683,706
3,368,941
3,382,970
12,321,318
62,026,495
907,458,319
1,029,348,616
0.19%
1.48%
0.86%
0.98%
0.45%
0.33%
0.33%
1.20%
6.02%
88.16%
100.00%
2
3
4
5
6
7
8
10
11
12
13
14
15
16
Status
Opening
position
% of shares
as at
31.12.2014
2.00
Closing
position
Chairman
20,601,158
20,601,158
Vice Chairman
Vice Chairman
Director
Director
Director
Director
Director
28,570,378
21,846,820
20,616,158
38,019,361
20,644,922
20,591,099
27,811,583
28,570,378
21,846,820
20,616,158
38,019,361
20,644,922
20,591,099
27,811,583
Director
Director
Director
Director
Director
Director
Director
Director
Independent
Director
Independent
Director
Independent
Director
Managing
Director
20,760,250
(Share holding of
East Cost Shipping
Lines Ltd.)
2.78
2.12
2.00
3.69
2.01
2.00
2.70
2.02
(Share holding
of Uniglory Cycle
Industries Ltd.)
20,882,328
20,678,053
23,365,749
32,254,341
20,587,749
25,826,178
20,588,337
20,882,328
20,678,053
23,365,749
32,254,341
20,587,749
25,826,178
20,588,337
2.03
2.01
2.27
3.13
2.00
2.51
2.00
29,277
29,277
0.003
362,913,491
383,673,741
Directors of the Bank complies with the requirements at SEC notification no-SEC/CMRRCD/2009-193/119/Admin/34 dated
21/11/2011 regarding holding of shares which states that each Director other than Independent Directors of any listed company
shall hold minimum 2% (Two percent) share of the Paid-up Capital otherwise there shall be a casual vacancy of Directors.
343
Amount in Taka
2014
2013
2,310,546,800
2,310,546,800
69,316,404
69,316,404
2,241,230,396
2,241,230,396
60
60
0.28
60
65
7,528,626,614
6,839,527,566
656,019,965
689,099,048
8,184,646,579
7,528,626,614
16 Statutory reserve
Balance on 1 January
Addition during the year ( 20% of pre-tax profit)
Balance at 31 December 2014
17 Consolidated revaluation gain / loss on investments
Prime Bank Limited (note-17a)
441,469,626
109,193,803
3,727,540
4,320,315
4,104,926
7,686,176
12,492,708
14,471,068
461,794,800
135,671,362
109,193,803
19,719,692
622,833,216
318,478,771
(290,552,049)
(229,101,567)
(5,346)
96,907
441,469,626
109,193,803
18 Revaluation reserve
Balance on 1 January
Addition during the year
Balance at 31 December 2014
Less: Provision for deferred tax
1,778,219,183
296,004,196
1,482,214,987
1,778,219,183
1,778,219,183
(274,700,627)
(266,732,877)
1,503,518,556
1,511,486,306
5,086,036
4,513,294
The Bank revalued the assets of Land and Buildings details described in note 2.5
19 Consolidated foreign currency translation gain/ (loss)
Prime Bank Limited (note-19a)
Prime Bank Investment Limited
(302,730)
(187,889)
54,804
17,248
54,790
(695,960)
4,892,900
3,646,693
344
4,513,294
5,015,711
572,743
(502,417)
5,086,036
4,513,294
Amount in Taka
2014
2013
1,791,847,369
1,340,578,118
14,117,109
226,502,745
17,484,332
49,055,787
40,234,150
35,121,487
(48,578,004)
(49,495,332)
105,232,830
98,272,587
1,920,337,787
1,700,035,392
(0.28)
(5)
(28,002,888)
(5,904,302)
(9,270,867)
(50,020,059)
(47,761,808)
(379,607)
1,369,018
1,864,033,818
1,616,368,842
20a Retained earnings / movement of profit and loss account of the Bank
Balance on 1 January
1,341,080,535
2,072,227,283
2,392,899,827
1,829,495,239
(656,019,965)
(689,099,048)
(1,286,685,770)
(935,771,469)
(935,771,470)
1,791,274,627
1,341,080,535
572,743
(502,417)
1,791,847,369
1,340,578,118
54,394,765
200,684,345
198,499,857
86,488,306
49,055,787
33,096,718
19,946,318
21,375,947
(49,495,332)
(45,540,613)
490,720
272,892,115
296,104,702
1,624,702
(943,855)
274,516,818
295,160,847
Balance on 1 January
1,341,080,535
2,072,227,283
(935,771,470)
(1,286,685,770)
(935,771,469)
54,394,765
200,684,344
20.1.a Retained earnings brought forward from previous year of the Bank
54,394,765
200,684,344
26,742,389,739
30,869,304,940
26,742,389,739
30,869,304,940
345
Amount in Taka
2014
2013
61,408,149,593
55,438,139,259
61,408,149,593
55,438,139,259
20,698,448,178
20,885,957,458
20,698,448,178
20,885,957,458
9,262,180,366
9,221,494,133
9,262,180,366
9,221,494,133
118,111,167,875
116,414,895,789
21,774,217,291
23,256,635,325
4,509,657,895
7,032,011,863
458,514,552
580,657,752
26,742,389,739
30,869,304,940
(5,539,717,082)
(5,855,120,347)
21,202,672,657
25,014,184,593
19,812,783,078
20,458,081,297
41,595,366,515
34,980,057,962
346
61,408,149,593
55,438,139,259
(1,207,823,431)
(1,161,150,850)
60,200,326,162
54,276,988,409
Amount in Taka
2014
2013
Money for which the Bank is contingently liable in respect of guarantees given favoring:
Directors or officers
20,344,060
413,930,380
1,909,382,141
16,877,442,202
59,478,423,392
38,146,766,677
61,408,149,593
55,438,139,259
(1,207,823,431)
(1,161,150,850)
60,200,326,162
54,276,988,409
5,037,481,634
6,042,369,612
10,264,457,760
7,067,578,263
5,396,508,785
7,776,009,583
20,698,448,178
20,885,957,458
(1,351,138,286)
(1,526,926,409)
19,347,309,892
19,359,031,049
9,262,180,366
9,221,494,133
9,262,180,366
9,221,494,133
(79,490,309)
(116,518,903)
9,182,690,056
9,104,975,230
Government
Banks and other financial institutions
Others
Less: Margin
Less: Margin
Less: Margin
347
Amount in Taka
2014
22
2013
Income statement
Income:
Interest, discount and similar income (note-22.1)
Dividend income (note-25a)
Fees, commission and brokerage (note-22.2)
24,560,584,428
27,503,478,449
79,659,231
89,885,351
1,156,719,912
1,225,042,868
876,405,326
930,442,297
806,468,141
812,592,003
27,479,837,038
30,561,440,968
15,573,523,588
17,678,359,259
22.1
1,155,846,289
333,115,035
298,461,545
21,323,149,122
23,087,283,527
6,156,687,916
7,474,157,441
18,445,885,369
22,010,657,745
4,998,194,457
4,650,707,200
1,029,558,633
672,169,796
17,605,179
2,640,608
255,904,955
152,252,408
56,714,976
96,608,268
24,803,863,571
27,585,036,025
243,279,143
81,557,576
24,560,584,428
27,503,478,449
1,156,719,912
1,156,719,912
1,225,042,868
1,225,042,868
3,279,735,275
2,939,016,912
582,596,952
550,258,309
35,854,242
37,756,195
112,446,490
134,001,255
210,809,010
227,285,212
8,674,785
11,590,000
3,799,929
4,364,816
1,150,000
690,000
348
1,114,305,707
22.3
3,954,616,434
22.2
4,302,204,792
67,138,108
49,653,735
4,302,204,792
3,954,616,434
Amount in Taka
2014
2013
18,445,885,369
22,010,657,745
391,826,475
455,964,116
11,667,012
67,578,007
84,434,808
81,448,997
18,933,813,664
22,615,648,865
465,893,062
580,044,928
18,467,920,602
22,035,603,937
3,541,296,853
4,204,486,951
8,800,379
12,223,477
1,160,197,662
1,924,614,565
52,004,730
55,195,298
534,957,359
586,329,448
719,886,856
1,033,922,835
Hire purchase
901,394,752
1,138,828,562
20,866,736
72,769,763
2,510,348,691
2,929,270,357
3,637,595,881
4,778,544,332
2,025,943,938
1,915,282,906
Staff loan
121,324,259
128,528,443
773,839,769
734,951,041
Agricultural Loan
159,705,030
153,033,197
44,346,278
169,788,729
Forced loan
Documentary bills purchased
462,666,395
751,465,294
238,602,584
210,085,335
1,281,442,730
976,034,520
18,195,220,882
21,775,355,053
1,892,083
899,852
83,109,736
91,891,431
165,662,668
142,511,409
18,445,885,369
22,010,657,745
15,573,523,588
17,678,359,259
452,709,342
568,950,077
46,302,622
48,064,346
25,717,753
29,034,365
16,098,253,305
18,324,408,047
469,094,461
585,646,533
15,629,158,843
17,738,761,514
349
Amount in Taka
2014
2013
920,693,312
831,075,984
769,330,607
945,532,299
8,237,080,877
10,253,581,970
4,992,418,311
4,824,217,055
15,409,740
9,127,196
ii.
37,002,013
26,942,930
14,971,934,861
16,890,477,434
37,265,181
240,430,291
32,348,366
116,560,703
7,495,873
5,820,034
127,279,499
114,608,821
109,699,808
19,748,881
287,500,000
290,713,095
601,588,727
787,881,825
15,573,523,588
17,678,359,259
11,816,544
4,781,773
3,593,196
4,317,525
27,898
15,409,740
9,127,196
6,194,358,289
5,582,706,055
61,528,131
276,193,624
2,643,871
4,298,999
6,258,530,291
5,863,198,678
6,258,530,291
5,863,198,678
4,998,194,457
4,650,707,200
56,714,976
96,608,268
1,029,558,633
672,169,796
350
17,605,179
2,640,608
255,904,955
152,252,408
79,659,231
89,885,351
6,437,637,432
5,664,263,631
243,279,143
81,557,576
6,194,358,289
5,582,706,055
Amount in Taka
2014
2013
2,033,125,238
53,751,361
30,121,613
72,320,132
44,636,299
2,233,954,643
2,155,485,165
45,483,899
31,572,380
57,171,845
42,544,848
2,332,258,137
237,368,368
407,349,243
377,763,760
74,493,576
1,501,206
46,569,530
11,674,229
1,156,719,912
876,405,326
2,033,125,238
258,410,469
489,047,307
363,327,092
75,011,914
51,059
3,571,842
21,710,905
13,912,280
1,225,042,868
930,442,297
2,155,485,165
876,433,792
930,532,464
(28,466)
(90,167)
876,405,326
930,442,297
806,468,141
812,592,003
23,193,276
26,901,295
971,313
569,922
979,239
1,027,803
54,459,314
45,312,857
886,071,283
886,403,880
3,201,399
5,601,605
882,869,884
880,802,275
8,323,697
72,669,789
212,931,338
112,559,700
45,111,771
172,324,387
100
77,611,186
1,363
104,934,811
806,468,141
7,618,374
21,555,536
221,870,549
115,967,133
38,914,256
160,888,059
86
102,710,778
2,014,878
141,052,354
812,592,003
27a.1 Miscellaneous earnings include syndication fee, commission from foreign remittance house / bank, notice fee and sale
proceeds of various items, etc.
351
Amount in Taka
2014
2013
22,082,937
19,826,512
21,791,785
18,868,098
1,237,049
219,646
45,111,771
38,914,256
3,279,735,275
2,939,016,912
28,775,522
31,576,176
12,735,339
14,696,693
21,618,106
21,604,663
21,652,530
19,979,329
29,855,172
23,426,518
3,394,371,944
3,050,300,291
1,356,779,270
1,218,404,871
958,027,048
893,857,770
Bonus
455,631,477
379,634,025
123,886,019
113,361,176
4,258,494
1,961,610
381,152,966
331,797,460
3,279,735,275
2,939,016,912
582,596,952
550,258,309
7,993,200
7,649,825
Retirement benefits
Gratuity
5,159,239
3,592,556
12,346,270
13,425,122
11,729,050
13,509,608
7,765,727
6,787,492
627,590,438
595,222,912
319,980,722
284,692,653
88,281
4,550,878
Insurance
143,111,343
156,419,900
119,416,606
104,594,878
582,596,952
550,258,309
35,854,242
37,756,195
238,050
125,525
80,500
44,500
352
1,327,337
969,617
1,934,549
1,188,295
132,035
367,568
39,566,713
40,451,700
Amount in Taka
2014
2013
16,529,650
17,272,917
19,324,592
20,483,278
35,854,242
37,756,195
112,446,490
134,001,255
995,916
1,512,472
409,428
1,080,521
1,134,757
1,450,662
1,021,368
978,437
4,240,788
2,684,388
120,248,747
141,707,735
15,590,175
15,922,767
44,983,403
49,144,504
Data communication
24,748,451
45,727,139
Telephone - office
26,149,647
22,117,929
974,814
1,088,916
112,446,490
134,001,255
210,809,010
227,285,212
1,308,710
932,710
Telephone - residence
32 Consolidated stationery, printing and advertisements, etc.
311,775
239,375
2,623,799
1,662,155
1,092,829
1,317,528
313,893
242,569
216,460,016
231,679,549
69,559,376
73,816,577
53,785,419
71,334,861
87,464,216
82,133,774
210,809,010
227,285,212
* Previously, sponsorship expenses was included under the head of "Publicity and advertisement". Now the same is
presented under the head of "Other expenses" (note-38a)
33 Managing Director's salary and fees
Basic salary
4,481,323
5,940,000
Bonus
1,495,000
1,990,000
989,398
1,320,000
Utility allowance
457,686
624,000
700,559
960,000
Others
550,819
756,000
8,674,785
11,590,000
353
Amount in Taka
34 Consolidated Directors' fees
Prime Bank Limited (note-34a)
Prime Bank Investment Limited
Prime Bank Securities Limited
Prime Exchange Co. Pte. Ltd., Singapore
PBL Exchange (UK) Ltd.
PBL Finance (Hong Kong) Limited
34a Directors' fees of the Bank
Meeting fees
Other benefits
2014
2013
3,799,929
239,250
43,700
4,082,879
4,364,816
59,450
18,975
4,443,241
1,875,000
1,924,929
3,799,929
2,255,000
2,109,816
4,364,816
1,150,000
115,000
69,000
271,210
311,241
180,664
2,097,114
690,000
115,000
69,000
252,982
321,474
182,971
1,631,427
1,150,000
1,150,000
690,000
690,000
400,253,143
6,428,119
2,654,663
3,602,317
2,292,974
1,979,371
417,210,587
348,115,280
6,263,540
2,618,427
4,298,544
2,915,251
1,061,191
365,272,233
291,131,795
3,793,227
294,925,021
249,858,500
5,073,230
254,931,730
34,433,167
3,756,847
38,190,014
38,847,401
4,682,414
43,529,815
4,523,282
10,882,447
32,717,379
9,357,054
9,657,946
67,138,108
400,253,143
3,021,075
3,918,573
29,483,968
7,921,793
5,308,326
49,653,735
348,115,280
354
Amount in Taka
2014
2013
1,114,305,707
1,155,846,289
12,705,853
18,842,978
5,863,524
7,410,881
14,190,798
8,224,318
6,506,926
6,668,006
2,679,915
1,742,534
1,156,252,723
1,198,735,007
*Previously, interest expenses was included under the head of "Consolidated other expenses". Now it is presented under
the head of "Consolidated interest expenses" (note-24).
38a Other expenses of the Bank
Security and cleaning
162,915,686
165,790,496
Entertainment
40,994,187
47,687,861
Car expenses
165,854,269
148,941,549
ATM expenses
155,814,918
150,585,538
Retail expenses
87,845,530
64,324,900
1,772,786
1,750,362
821,726
664,020
137,934
165,729
4,834,775
8,006,432
281,382
143,122
97,507
1,767,809
2,476,934
2,627,195
Subscription to institutions
10,068,894
9,201,312
Donations
39,140,323
33,425,556
Sponsorship
69,593,888
164,961,164
Traveling expenses
31,403,376
26,147,659
5,112
3,319,093
17,595,136
22,873,227
Business development
36,135,564
19,909,911
21,257,378
14,657,059
Remittance charges
9,457,108
9,398,083
2,235,000
1,155,000
5,786,304
6,423,219
38,057,189
32,238,509
26,808,753
35,276,010
2,423,555
713,905
Exgratia
15,805,148
13,511,843
Welfare fund
Prime Bank Foundation
Miscellaneous expenses
6,560,200
6,891,000
131,203,993
137,820,000
26,921,153
25,468,725
1,114,305,707
1,155,846,289
355
Amount in Taka
2014
2013
39 Consolidated provision for loans, investments, off balance sheet exposure & other assets
Provision for bad and doubtful loans and advances / investments-PBL (note-39a)
2,643,500,000
2,980,000,000
114,000,000
642,000,000
Provision for bad and doubtful loans and advances (OBU) (note-39a)
30,000,000
350,000,000
46,000,000
12,000,000
(1,510,000)
10,000,000
(7,000,000)
24,527,202
(49,637,089)
245,135,052
(428,503)
(51,962)
3,675,143
1,354,126
45,398,089
6,200,000
10,135,000
3,075,332,692
4,029,964,366
As per the Press release # BSEC/Mukhopatro/2011/1733 dated 31 December 2014 of Bangladesh Securities and Exchange
Commission, 20% provision has been made by Prime Bank Securities Limited while Prime Bank Investment Limited
made 50.00% provision on diminution in value of investments and 42.18% provision made on impairment of client
margin loan.
39a Provision for loans, investments, off balance sheet exposure & other assets of the Bank
Provision for bad and doubtful loans and advances / investments
2,643,500,000
2,980,000,000
114,000,000
642,000,000
30,000,000
350,000,000
46,000,000
12,000,000
(1,510,000)
10,000,000
(7,000,000)
24,527,202
45,398,089
6,200,000
10,135,000
2,876,588,089
4,028,662,202
1,180,000,000
1,616,000,000
8,532,689
29,190,904
490,088
9,337,871
1,044,414
344,056
10,870,823
10,025,519
1,200,938,014
1,664,898,350
Deferred tax
356
(292,800,000)
(857,621)
(690,162)
(391,254)
(415,071)
(198,166)
(294,247,041)
(1,105,233)
906,690,973
1,663,793,117
Amount in Taka
2014
2013
1,180,000,000
1,616,000,000
Deferred tax
(292,800,000)
887,200,000
1,616,000,000
1,866,257,765
1,558,097,238
84,721,407
303,094,919
3,615,184
4,868,921
979,239
1,027,803
54,459,314
45,312,857
2,010,032,909
1,912,401,737
8,323,697
7,618,374
72,669,789
21,555,536
45,111,771
38,914,255
Retail Income
212,931,338
221,870,549
112,559,700
115,967,133
172,324,387
160,888,059
Incidental charges
Rebate from foreign Bank outside Bangladesh
Gain from sale of treasury bond / shares
Miscellaneous earnings
100
86
77,611,186
102,710,778
1,059,789,624
745,505,236
104,936,174
143,067,232
1,866,257,765
1,558,097,238
1,482,600,260
1,429,170,216
21,815,910
29,210,370
57,539,985
60,291,380
28,571,653
24,322,701
21,117,569
23,792,906
10,758,340
11,764,953
1,622,403,717
1,578,552,527
582,596,952
550,258,310
35,854,242
37,756,196
112,446,490
134,001,254
3,799,929
4,364,816
747,902,647
702,789,641
1,482,600,260
1,429,170,216
(4,074,433,703)
(8,849,257,530)
5,680,537
193,704,428
(175,046,740)
(6,814,745)
(16,512,699)
(19,755)
1,139,897
1,936,520
(132,418,404)
1,194,169,831
(4,019,982,179)
(7,837,890,184)
357
Amount in Taka
2014
2013
53,430,295,197
49,331,968,698
24,722,480
23,087,731
274,085,598
164,348,546
18,533,017
23,675,936
384,161,142
204,781,970
136,623,524
35,151,558
115,268,108
92,196,123
7,567,549,637
8,001,594,436
61,951,238,701
57,876,804,999
(4,074,433,703)
(8,849,257,530)
2,338,428,624
729,880,009
66,278,159
(251,293,689)
(129,033,153)
150,305,281
3,434,146
12,096,811
(9,013,371)
12,596,912
6,161,015
1,945,895
2,276,255,420
655,531,219
3,560,736,089
2,019,648,273
114,717,427
78,636,660
1,697,211
18,307,180
90,117,676
120,567,836
795,721
2,722,214,058
1,913,098,167
6,489,482,461
4,151,053,837
2,338,428,624
729,880,009
2,245,536,966
2,038,309,936
1,029,348,616
1,029,348,616
2.18
1.98
Earnings per share has been calculated in accordance with BAS - 33: "Earnings Per Share (EPS)". Previous year's figures
have been adjusted for the issue of bonus shares during the year.
45a Earnings per share (EPS) of the Bank
Net profit after tax (Numerator)
2,392,899,827
1,829,495,239
1,029,348,616
1,029,348,616
2.32
1.78
Earnings per share has been calculated in accordance with BAS - 33: "Earnings Per Share (EPS)". Previous year's figures
have been adjusted for the issue of bonus shares during the year.
46 Number of employees of the Bank
The number of employees engaged for the whole year or part thereof who received a total remuneration of Tk. 36,000
p.a. or above were 2,867.
47 Assets pledged as security for liabilities of the Bank
Treasury bills & bonds to Bangladesh Bank for Repo
358
743,665,000
Status with
bank
Status with
committee
Independent
Director
Chairman
Director
Member
Director
Member
Independent
Director
Independent
Director
Member
Member
Educational Qualification
M.Sc. Engineer (Civil), Bangladesh University of Engineering and
Technology (BUET), Ph.D. in Civil Engineering from University of
Strathclyde, Glasgow, U.K.
M. Com. CA (CC) ICAB
B.Sc. Engineer (Mechanical), Bangladesh University of Engineering
and Technology (BUET).
B.Sc. Engineer (Electrical), University of Dhaka, M.A. (Public
Admin.), American University of Bairut.
B.A. (Hons.), M.A. University of Dhaka, MS in Sociology on Rural
Development, Moscow University, Ph.D. from Bombay University.
Held on
93rd
04.03.2014
94th
25.03.2014
95th
20.04.2014
96th
12.05.2014
97th
12.07.2014
98th
12.08.2014
99th
09.09.2014
100th
28.10.2014
101st
25.11.2014
102nd
24.12.2014
359
Annexure-E
ii) Significant contracts where Bank is a party and wherein Directors have interest during the year 2014
Name of party
iii)
Relationship
-
(Figure in Taka)
Amount
Nil
Nature of transaction
-
Nil
Relationship
Amount
Common Director
Radiant Alliance
Common Director
6,011,500
1,246,819
Common Director
13,226,395
Lease agreement
Common Director
1,628,400
Lease agreement
Common Director
280,800
Lease agreement
Common Director
642,000
Lease agreement
Common Director
10,800,000
Nil
b.
Nil
c.
Nil
d.
Nil
Nil
vii) Business other than banking business with any relation concern to the Directors as per Section 18(2) of the
Bank Companies Act, 1991.
a) Lease agreement made with the Sponsor Director & Independent Director
Branch Name
Lease agreement
Jubilee Road
Branch
Lease period:
31.07.2015
Lease agreement
ATM Booth
Jubilee Road
Branch
Lease agreement
Kulaura Branch
Nature of contract
Lease agreement
360
Gulshan Branch
Remarks
Lease period:
31.07.2019
01.08.2012
01.08.2013
to
to
b) Service receiving companies where the Directors interest subsisted during the year
Name of party
Bangla Trac Ltd
Relationship
Common Director
Common Director
Common Director
Nature of transaction
Procurement of Generators
Procurement of Solar Energy
System
Insurance Coverage
Amount
6,011,500
1,246,819
13,226,395
Nil
Relationship
Nature of transaction
Subsidiary Company
Subsidiary Company
Subsidiary Company
Subsidiary Company
Subsidiary Company
OD Facilities
OD Facilities
Bank Guarantee
Share Trading
Term Placement
Outstanding
Amount
2,973,583,847
371,066,787
500,000,000
299,596,650
2,191,547,381
Chairman
Director
Director
Managing Director
361
362
Account type
Currency
type
US$
EURO
US$
JP
JP
US$
EURO
US$
US$
EURO
US$
AUD
CHF
US$
US$
US$
US$
US$
US$
US$
GBP
US$
US$
EURO
US$
US$
US$
US$
GBP
SAR
US$
FC
amount
966,327.54
70,310.95
6,765,823.00
5,056,246.00
860.36
385,293.03
1,119,041.42
1,938,517.18
66,999.11
44,596.07
284,931.06
201,200.91
415,959.13
200,422.67
1,084,557.29
3,217,503.07
8,629.36
384,310.46
5,768.00
418,650.45
79,467.78
329,296.89
432,566.42
200,995.01
107,881.00
29,060.24
Exchange
rate
77.9494
77.9494
0.6459
0.6459
77.9494
94.7007
77.9494
94.7007
77.9494
63.3807
77.9494
77.9494
77.9494
77.9494
77.9494
77.9494
77.9494
77.9494
94.7007
77.9494
77.9494
77.9494
77.9494
120.9151
20.7682
77.9494
2014
Equivalent
Taka
75,324,652
5,480,696
4,370,045
3,265,829
67,065
36,487,520
87,228,607
183,578,934
5,222,540
2,826,530
22,210,205
15,683,490
32,423,765
15,622,827
84,540,590
250,802,434
672,653
29,956,770
546,234
32,633,551
6,194,466
25,668,495
33,718,293
24,303,332
2,240,494
2,265,228
FC
amount
4,107.04
28,049.39
4,376,782.00
4,350,310.00
7,511.98
42,388.60
113,148.99
1,495,835.62
104,320.75
45,672.21
110,638.40
120,074.66
395,952.22
227,620.00
412,746.21
188,202.26
115,062.14
7,339.36
315,518.40
7,755.67
60,749.25
42,591.23
89,899.87
250,509.00
209,857.95
111,284.00
84,290.24
2013
Exchange
rate
77.7500
77.7500
0.7393
0.7393
77.7500
106.8207
77.7500
106.8207
77.7500
68.9254
77.7500
77.7500
77.7500
77.7500
77.7500
77.7500
128.0776
77.7500
77.7500
106.8207
77.7500
77.7500
77.7500
77.7500
128.0776
20.7300
77.7500
Equivalent
Taka
319,322
2,180,840
3,235,755
3,216,184
584,056
4,527,980
8,797,334
159,786,208
8,110,938
3,147,975
8,602,136
9,335,805
30,785,285
17,697,455
32,091,018
14,632,726
14,736,883
570,635
24,531,556
828,466
4,723,254
3,311,468
6,989,715
19,477,075
26,878,103
2,306,917
6,553,566
Annexure-A
363
Account type
Currency
type
US$
SEK
US$
US$
US$
SG$
EURO
US$
CAD
EURO
US$
CHF
FC
amount
267,297.93
29,524.78
328,315.94
935,921.85
552,389.63
399,445.15
154,578.99
82,714.23
70,427.23
719,142.50
16,753.32
Exchange
rate
77.9494
9.9069
77.9494
77.9494
77.9494
58.8831
94.7007
66.9323
94.7007
77.9494
78.7288
2014
Equivalent
Taka
20,835,713
292,499
25,592,031
72,954,547
43,058,440
23,520,569
14,638,739
5,536,254
6,669,508
56,056,726
1,318,969
1,253,809,238
FC
amount
280,986.45
39,379.62
45,626.72
324,827.41
204,828.11
848,203.65
49,756.28
66,834.20
517,182.08
238,990.15
64,033.20
Exchange
rate
77.7500
11.9281
77.7500
77.7500
77.7500
61.2542
106.8207
72.5618
106.8207
77.7500
87.1832
Equivalent
Taka
21,846,696
469,724
3,547,477
25,255,331
15,925,386
51,956,036
5,315,001
4,849,610
55,245,752
18,581,484
5,582,619
626,533,772
Annexure-A Continued
2013
Annexure-A-1
Total
13,528,018,067
22,168,897
1,412,956
23,581,852
13,504,436,215
4,499,453
1,156,835
5,656,288
13,510,092,503
1,284,357,478
103,800,516
14,902,467
118,702,982
1,165,654,495
364
534,829,089
453,658,715
988,487,804
2,154,142,299
Annexure-B
SL.
No.
Face
Value
Quoted:
1
AB Bank Ltd.
10
1,487,500
47,632,736
32.02
29.90
44,476,250
10
1,210,000
24,429,908
20.19
16.70
20,207,000
10
1,320,000
29,538,943
22.38
21.80
28,776,000
DESCO
10
319,000
19,569,239
61.35
69.50
22,170,500
10
1,218,000
28,551,258
23.44
18.30
22,289,400
10
1,000,000
37,410,456
37.41
27.20
27,200,000
10
2,784
20,380
7.32
16.80
46,771
10
1,000,000
18,370,447
18.37
12.30
12,300,000
10
364,000
6,962,625
19.13
19.80
7,207,200
10
10
1,100,000
27,970,098
25.43
11.40
12,540,000
11
10
1,012,000
22,130,581
21.87
15.80
15,989,600
12
10
968,000
37,009,980
38.23
25.90
25,071,200
Sub Total
299,596,650
238,273,921
Unquoted:
1
Investment in SWIFT
10
4,569,443
15,694,430
3.43
4,184,430
5,000,000
15,694,430
4,184,430
5,000,000
24,878,860
24,878,860
324,475,510
263,152,781
According to the Bangladesh Bank Circular ref. DOS circular no.02 & 07 dated 16 September 2013 and 02 February 2014 respectively.
Investment in capital market limit should be within the 25% for Solo and 50% for Consolidation of total prescribed capital component.
As on 31 December 2014 Bank has invested in capital market 38.07% on Solo and 35.76% on consolidated.
365
366
1,306,112,866
319,950,486
Vehicles
31,690,384
As at 31 December 2014
1,410,371
Vehicles
8,015,482,024
5,680,135,592
As at 31 December 2013
287,303,685
43,212,614
244,091,071
7,728,178,339
As at 31 December 2014
Sub-total
Software-ATM
Software-Core Banking
Software-Amortization
Sub-total
6,026,748
1,637,587
As at 31 December 2014
2,978,790
Off-shore
31,690,384
Leased Vehicles
276,214,775
42,426,440
As at 31 December 2014
233,788,335
7,414,246,432
ATM
As at 31 December 2014
1,746,017
768,205,298
Library books
1,474,637,827
3,543,593,939
Taka
Opening
balance as on
01.01.14
Building
Land
Particulars
as at 31 December 2014
2,417,694,380
541,008,697
352,686
352,686
540,656,011
118,551
105,342
13,209
16,945,537
1,102,097
15,843,440
523,591,923
59,113
4,191,205
134,554,427
50,992,909
174,943,421
158,850,849
Taka
82,347,949
3,804,889
3,804,889
3,804,889
2,708,316
303,500
793,073
Taka
Disposals/
Additions
adjustments
during the year
during the year
COST
8,015,482,025
8,552,685,833
287,656,371
43,212,614
244,443,757
8,265,029,462
6,145,299
1,410,371
1,742,930
2,991,998
31,690,384
31,690,384
293,160,312
43,528,537
249,631,775
7,934,033,467
1,805,129
321,433,375
1,440,363,793
818,405,134
1,649,581,248
3,702,444,788
Taka
Total balance
as at 31.12.14
38,190,014
3,756,847
34,433,167
294,925,021
597,278.57
267,465.43
124,748.18
205,064.96
4,207,227
4,207,227
35,566,636
3,945,458
31,621,178
254,553,881
106,097
55,152,230
119,010,194
48,918,335
31,367,024
Taka
1,316,786,323
298,461,545
6,485,506
1,878,383
1,878,383
1,878,383
1,245,867
175,588
456,929
Taka
Disposals/
adjustments
during the year
DEPRECIATION
1,608,762,363 333,115,035.27
145,587,306
16,964,903
128,622,403
1,463,175,057
3,255,120
726,516
1,142,061
1,386,543
27,107,880
27,107,880
128,454,496
8,737,351
119,717,145
1,304,357,562
1,217,845
167,824,162
764,543,344
325,895,433
44,876,778
Taka
Opening
balance as on
01.01.14
-
1,608,762,363
1,939,999,015
183,777,321
20,721,750
163,055,571
1,756,221,695
3,852,398
993,981
1,266,809
1,591,607
31,315,106
31,315,106
164,021,131
12,682,809
151,338,323
1,557,033,059
1,323,943
221,730,526
883,377,950
374,356,839
76,243,802
Taka
Total balance
as at 31.12.14
6,406,719,662
6,612,686,818
103,879,050
22,490,864
81,388,186
6,508,807,767
2,292,900.85
416,389.82
476,120.23
1,400,390.80
375,278
375,278
129,139,181
30,845,728
98,293,453
6,377,000,408
481,186
99,702,849
556,985,843
444,048,295
1,573,337,446
3,702,444,788
Taka
Annexure-C
367
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
2002-2003
1995 to 2000
2001
Assessment
year
Accounting
year
16,722,551,971
1,180,000,000
1,616,000,000
2,449,800,000
2,866,502,255
2,285,000,000
1,735,000,000
1,012,449,724
1,015,000,000
592,362,815
557,500,000
482,287,856
348,903,919
312,590,120
268,743,630
3,317,922,403
1,076,933,945
481,412,744
346,638,537
482,287,856
348,903,919
312,590,120
268,743,630
411,652
Taka
Taka
411,652
Tax as per
assessment order
Tax provision as
per accounts
as at 31 December 2014
12,547,023,555
1,354,221,954
1,000,000,000
2,193,417,798
2,033,288,558
1,432,194,785
915,627,471
1,019,804,475
737,606,389
470,158,263
438,405,004
342,757,186
337,138,495
247,455,962
24,947,215
Taka
Tax paid
(259,877,589)
(61,933,945)
110,950,071
210,861,463
Taka
Excess/
(shortage)
of provision
198,449,090
(57,129,470) Completed
256,193,645 Completed
123,519,726 Completed
(43,882,852) Completed
(6,146,733) Completed
24,548,375 Completed
Present status
(21,287,668) Completed
24,947,215
Taka
Excess/
(shortage)
of tax paid
Annexure-D
Annexure-E
Sl
no.
368
Name of Directors
Chairman
Vice Chairman
Mr. M. A. Khaleque
Vice Chairman
Director
%
of Interest
25.00
40.00
5.13
20.00
89.20
20.00
52.07
65.00
0.83
75.00
45.00
50.00
8.94
42.00
42.00
37.50
51.00
27.50
60.00
48.00
34.00
50.00
55.00
10.00
1.01
4.90
1.77
7.24
50.00
50.00
20.00
10.00
10.00
20.00
37.50
27.50
37.50
27.00
30.00
40.00
40.00
40.00
100.00
40.00
35.00
30.00
20.00
15.00
2.35
2.00
1.43
0.67
19.21
5.00
Sl
no.
Name of Directors
Director
Director
Director
15.00
Director
Director
20.00
Polyexprint Limited
15.00
15.00
15.00
Pedrollo NK Limited
10.00
2.35
Polyexlaminate Limited
2.00
6.67
5.00
Director
1.43
50.00
30.00
15.00
33.00
75.00
66.67
80.00
10.00
40.00
70.00
64.00
30.00
33.33
27.00
80.00
65.00
50.00
93.34
75.00
40.00
10.00
25.00
80.00
10
5.00
100.00
Polytape Limited
2.36
50.00
Prima Enterprise
14.00
Annexure-E
%
of Interest
2.86
7.50
Hola Limited
10.00
50.00
43.44
12.00
50.00
22.00
40.00
SR Telecom Ltd
40.00
15.00
369
Sl
no.
11
12
13
Name of Directors
Mr. Md. Shahadat Hossain
Director
Director
50.00
40.00
20.00
EC Securities Ltd.
3.60
20.00
20.00
EC Distribution Ltd
40.00
30.00
Acorn Limited
25.00
THANE Technology
25.00
50.00
15
16
370
17
18
19
Director
Director
Director
Independent
Director
Independent
Director
Independent
Director
Annexure-E
%
of Interest
50.00
9.92
33.40
0.13
GQ Foods Limited
26.66
GQ Enterprise Limited
68.81
Mawsons Limited
19.23
99.00
99.00
99.00
99.00
99.00
99.00
95.00
99.00
99.00
99.00
99.00
99.00
43.75
43.75
Palmal Logistics
51.00
10.00
N/A
N/A
N/A
N/A
N/A
N/A
Annexure-F
Prime Bank Limited is operating 05 (five) Islamic Banking branches based on Islamic Shariah, which absolutely prohibits receipts
and payments of interest in any form. The operation of these 05 (five) branches are totally different from other conventional banking
branches as they operate on the basis of profit sharing arrangement.
Fixation of final profit rate for the year 2014
Provisional profit are applied to the different types of depositors at the rates to be decided by the Bank from time to time taking
into consideration of the industry trend and that of the rates of other Islamic Banks in Bangladesh. Final rates of profit are declared
annually as at 31 December in every year on the basis of income earned from different investments and other business by individual
branches and distributed as per weightage of the different deposit products.
For the year ended 31 December 2014, 70% of total investment income shall be distributed to the different types of Mudaraba
depositors (except no cost fund) according to the weightage. The remaining 30% of the investment income will be retained by the
Bank as Management fee (25%) and Investment loss Off-setting Reserve (5%).
Final Profit rate for the year 2014 is given below:
Deposit types
Weightage
0.75
5.84
0.52
4.05
36 Months
1.00
7.78
24 Months
0.98
7.63
12 Months
0.96
7.47
06 Months
0.92
7.16
03 Months
0.88
6.85
01 Month
0.88
6.85
1.20
9.34
1.05
8.17
1.02
7.94
1.02
7.94
1.20
9.34
1.05
8.17
1.05
8.17
1.05
8.17
1.05
8.17
0.75
5.84
0.75
5.84
1.05
8.17
1.01
7.86
1.05
8.17
0.96
7.47
1.20
9.34
1.20
9.34
371
Annexure-G
Particulars
Notes
Amount in Taka
2014
2013
53,954,854
84,027,018
53,954,854
84,027,018
212,804
212,804
212,804
212,804
Government
Others
12,321,696,556
In Bangladesh
Outside Bangladesh
Placement with banks & other financial institutions
Investments
General investments etc
10,728,159,623
173,641,364
289,896,022
10,901,800,988
12,611,592,577
26,177,402
29,330,353
Other assets
4,997,176,910
3,413,895,473
15,979,322,958
16,139,058,226
10
1,659,771,304
1,469,555,319
11,562,059,375
12,324,949,496
2,003,415,525
2,088,343,898
67,278,669
62,570,057
15,292,524,873
15,945,418,769
686,798,086
193,639,457
15,979,322,958
16,139,058,226
Paid up capital
Statutory reserve
Revaluation reserve
Other reserve
15,979,322,958
16,139,058,226
Other liabilities
Total liabilities
11
372
Particulars
Notes
Amount in Taka
2014
2013
12
12.1
2,989,218,036
3,153,072,594
Letters of guarantee
12.2
732,937,880
1,045,110,938
12.3
1,962,011,752
1,550,741,407
12.4
128,821,639
201,602,649
5,812,989,307
5,950,527,588
Other commitments
5,812,989,307
5,950,527,588
Other commitments
373
Profit and Loss Account for the year ended 31 December 2014
Annexure-G(I)
Particulars
Notes
2014
2013
Investment income
13
1,831,292,356
2,784,445,882
14
(1,142,806,401)
(1,579,947,869)
688,485,955
1,204,498,013
15
87,939,439
91,091,483
16
38,622,161
42,332,914
815,047,554
1,337,922,410
17
99,872,777
102,897,944
18
13,898,766
13,899,916
Legal expenses
19
672,768
731,628
20
5,542,033
7,832,437
21
4,780,498
4,932,443
Auditors' fees
22
23
8,011,888
7,838,369
17,343,909
18,527,960
150,122,640
156,660,696
664,924,915
1,181,261,714
Specific provision
General provision
Other provisions
664,924,915
1,181,261,714
Zakat expenses
Other expenses
374
Amount in Taka
24
25
Particulars
Amount in Taka
2014
2013
1,469,081,309
2,523,624,527
(1,213,317,191)
(1,572,272,330)
87,939,439
91,091,483
(99,872,777)
(102,897,944)
(4,780,498)
(4,932,443)
38,622,161
42,332,914
(40,053,106)
(43,450,386)
237,619,336
933,495,821
Statutory deposits
1,709,791,590
1,058,017,164
Investment to customers
(1,815,484,515)
(1,818,416,454)
Other assets
(941,758,315)
(214,050,964)
288,864,420
(86,586,690)
Trading liabilities
493,158,629
144,054,015
Other liabilities
(265,428,192)
(916,982,929)
(27,808,856)
16,512,892
Debentures
(2,263,307)
5,092,915
(2,263,307)
5,092,915
Dividend paid
(30,072,164)
21,605,807
84,239,822
62,634,015
54,167,658
84,239,822
53,954,854
84,027,018
212,804
212,804
Prize bonds
54,167,658
84,239,822
375
376
-
Restated balance
Cash dividend
Taka
Taka
Statutory
reserve
Paid-up Capital
Particulars
Taka
Revaluation
reserve
Taka
Taka
Retained earnings
Taka
Total
Notes to the Financial Statements for the year ended 31 December 2014 Please see PBL notes 1-2
Amount in Taka
2014
2013
1 Cash in hand
i) In local currency
ii) In foreign currency
53,288,075
82,487,257
666,779
1,539,761
53,954,854
84,027,018
Sub-total (b)
53,954,854
84,027,018
212,804
212,804
Sub-total (a)
Cash with Bangladesh Bank and its agents
212,804
212,804
14,334
14,334
17,016
17,016
12,603
12,603
43,953
43,953
64,622
64,622
36,595
36,595
67,635
67,635
168,851
168,851
2.1 In Bangladesh
Short-term deposit accounts
212,804
212,804
5 Investments
a) In Bangladesh
Quard against TDR
1,257,444,178
1,918,612,116
3,414,628,256
3,645,849,351
2,954,267,553
2,737,353,624
Retail investment
506,105,518
648,495,741
Izara (note-5.2)
313,017,705
491,240,293
68,957,789
34,258,761
128,669,231
141,596,189
2,085,069,394
2,704,290,480
10,728,159,623
12,321,696,556
10,728,159,623
12,321,696,556
169,042,792
269,918,641
4,598,573
19,977,381
173,641,364
289,896,022
10,901,800,988
12,611,592,577
377
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
2013
5.1 Investments under the following broad categories
Investments
Bai-Murabaha / Bai-Muajjal
Quard against TDR
Bills purchased and discounted (note-6)
5.2 Izara
Lease rental receivable within 1 year
Lease rental receivable within 5 years
Lease rental receivable after 5 years
Total lease / Izara rental receivable
Less: Unearned interest receivable
Net lease / Izara finance
5.3 Investments on the basis of significant
concentration including bills purchased and discounted.
a) Investments to Directors of the Bank
b) Investments to Chief Executive and
other executives & officers
c) Investments to customer groups:
i) Commercial investment
ii) Export financing
iii) House building investment
iv) Retail investment
v) Small and medium enterprises
vi) Special program investment
vii) Staff investment
viii) Industrial investments
ix) Other investment
3,101,819,637
6,368,895,809
1,257,444,178
10,728,159,623
173,641,364
10,901,800,988
4,019,881,464
6,383,202,976
1,918,612,116
12,321,696,556
289,896,022
12,611,592,577
27,776,150
336,660,750
364,436,900
51,419,195
313,017,705
101,580,600
1,082,792,736
1,184,373,336
693,133,043
491,240,293
128,618,050
141,528,771
4,672,712,172
743,163,292
506,105,518
1,085,452,359
51,181
2,619,380,129
1,146,318,287
915,930,190
38,274,261
935,753,322
648,495,741
1,121,587,678
67,418
7,814,679,327
995,275,870
12,470,063,806
12,611,592,576
184,432,093
400,873,335
269,415,071
45,534,933
463,648,282
266,052,291
70,161,287
919,262,838
2,619,380,129
194,372,071
874,104,981
433,559,027
75,679,162
60,308,781
823,091,709
120,059,319
260,732,118
4,972,772,160
7,814,679,327
8,426,190,842
2,277,525,423
198,084,723
10,901,800,988
9,541,802,748
2,882,890,221
186,899,608
12,611,592,577
10,901,800,988
12,611,592,577
10,773,182,937
10,901,800,988
d)
378
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
2013
5.5 Details of pledged collaterals
Collateral of movable / immovable assets
9,928,152,430
9,424,546,296
1,398,779,310
21,325,745
44,813,875
173,523,432
582,074,989
Personal guarantee
169,372,616
949,280,184
609,426,764
212,097,923
10,901,800,988
12,611,592,577
10,209,504,628
11,400,050,545
Other securities
ii)
522,923,744
316,661,147
169,372,616
894,880,886
10,901,800,988
12,611,592,577
128,669,231
141,596,189
vi) Investments due from companies or firms in which the directors of the Bank
have interest as directors, partners or managing agents or in case of private
companies, as members.
128,669,231
141,596,189
1,087,321,314
235,056,108
277,275,672
70,039,007
240,016,189
60,036,704
245,406,044
104,487,600
v)
x)
Classified investments
a)
b)
c)
d)
Opening Balance
The amount of written off investments for which law suits have been filed
379
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
2013
9,478,542,574
12,137,830,784
335,937,100
238,705,685
9,814,479,674
12,376,536,469
438,693,506
33,986,865
Classified
Sub-standard
Doubtful
Bad / Loss
13,734,139
41,323,916
634,893,669
159,745,328
1,087,321,314
235,056,108
10,901,800,988
12,611,592,577
Base
Rate
for provision
(%)
General Provision
Investments (Including SMA)
9,814,479,674
*Various
103,364,374
177,799,853
103,364,374
177,799,853
*General provision is kept @ 1% on general investments and 2% on small enterprise financing and 5% on consumer
financing.
Specific provision
Sub-standard
Doubtful
Bad / Loss
163,251,918
20
32,650,384
2,764,000
9,218,198
50
4,609,099
7,238,303
240,016,189
100
240,016,189
60,036,704
277,275,672
70,039,007
380,640,046
247,838,860
380,640,046
247,838,860
Base
Rate
for provision
1%
2,989,218,036
29,892,180
31,530,726
Letter of guarantee
732,937,880
7,329,379
10,451,109
Letter of credit
1,962,011,752
19,620,118
15,507,414
56,841,677
57,489,249
56,841,677
57,489,249
169,042,792
269,918,641
380
4,598,573
19,977,381
173,641,364
289,896,022
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
2013
12,225,463
12,130,788
1,490,445
329,340
1,367
26,177,402
13,414,066
11,242,163
3,682,075
990,340
1,709
29,330,353
26,177,402
26,177,402
29,330,353
29,330,353
26,177,402
29,330,353
661,031
362,211,047
107,825
427,484
4,633,362,681
406,842
4,997,176,910
258,819
260,821,355
1,354,436
3,135,936,450
589,226
408,564
14,526,624
3,413,895,473
655,614,256
1,597,372,571
14,636,910,616
14,348,046,197
15,292,524,873
15,945,418,768
Bills payable
27,249,372
33,178,088
628,364,885
1,564,194,484
655,614,256
1,597,372,571
381
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
Sl No
Name of Bank
2013
Type of
Account
MSB
18,022,182
14,728,547
2 Bank Al-Falah
MSB
268,818
6,345
12,167,806
MSB
2,512,403
MSB
6,445,969
6,275,390
27,249,372
33,178,088
Sub Total
5 Exim Bank Ltd
MSND
67,033,845
24,809,713
MSND
2,194,509
2,120,793
MSND
6,659
6,659
MSND
534,472,965
1,508,450,115
MSND
28,387
5,592,532
MSND
24,376,852
23,214,672
MSND
251,668
Sub Total
628,364,885
1,564,194,484
Grand Total
655,614,256
1,597,372,572
595,937,800
480,917,949
426,891,705
133,233,832
242,619
440,619
980,343,401
1,473,751,498
2,003,415,525
2,088,343,897
66,031,502
61,069,249
70,594
70,594
1,176,573
1,430,214
b) Customer Deposits
i) Al wadeeah current deposits and other accounts
Security deposits
Sundry deposits
ii) Bills payable
Pay orders issued
Pay slips issued
T. T. payable
67,278,669
62,570,057
1,632,521,932
1,436,377,231
6,730,206,248
7,013,593,729
1,297,235,007
817,285,777
382
2,906,253,234
2,929,875,506
10,933,694,490
10,760,755,012
14,636,910,616
14,348,046,197
15,292,524,873
15,945,418,768
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
c) Deposits and other accounts
Current deposits and other accounts
Deposits from banks (note -10.1.a)
Deposits from customers (note-10.1.b.i)
Bills payable
Deposits from banks (note -10.1.a)
Deposits from customers (note-10.1.b.ii)
Savings bank / mudaraba savings deposits
Deposits from banks (note -10.1.a)
Deposits from customers (note-10.1.b.iii)
2013
2,003,415,525
2,003,415,525
2,088,343,897
2,088,343,898
67,278,669
67,278,669
62,570,057
62,570,057
27,249,372
1,632,521,932
1,659,771,304
33,178,088
1,436,377,231
1,469,555,319
628,364,885
1,564,194,484
10,933,694,490
10,760,755,012
11,562,059,375
12,324,949,496
15,292,524,873
15,945,418,769
11 Other liabilities
Expenditure and other payables
Foreign currency held against EDF loan
3,638,087
3,294,653
437,753,955
85,857,204
245,406,044
104,487,600
686,798,086
193,639,457
2,568,947,919
2,459,259,236
392,473,050
652,101,031
27,797,068
41,712,327
2,989,218,036
3,153,072,594
(474,974,398)
(717,626,079)
2,514,243,638
2,435,446,515
245,087,592
285,838,261
487,850,287
759,272,677
732,937,880
1,045,110,938
(25,095,372)
(24,914,313)
707,842,508
1,020,196,625
Money for which the Bank is contingently liable in respect of guarantees given favoring:
Directors or officers
2,948,968
54,130,155
487,850,287
779,238,926
Others
242,138,624
211,741,857
732,937,880
1,045,110,938
(25,095,372)
(24,914,313)
707,842,508
1,020,196,625
Government
Less: Margin
383
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
2013
454,824,637
293,211,731
1,034,315,904
455,761,331
472,871,211
801,768,345
1,962,011,752
1,550,741,407
(226,951,596)
(409,040,927)
1,735,060,155
1,141,700,480
128,821,639
201,602,649
128,821,639
201,602,649
Less: Margin
(213,050)
128,821,639
201,389,599
13 Investment income
i) Income from general investment
Quard against TDR
19,104,773
103,973,188
555,673,087
638,886,325
329,868,555
459,781,751
85,207,611
110,515,252
43,528,827
95,234,116
8,391,376
(973,580)
6,706,321
7,701,644
Hire purchase
288,905,960
414,688,278
Other investments
458,920,816
886,115,704
34,985,030
68,519,667
1,831,292,356
2,784,442,345
In Bangladesh
3,537
Sub-total (i)
ii) Profit on deposits with other Islamic banks
Sub-total (ii)
Grand total (i+ii)
3,537
1,831,292,356
2,784,445,882
67,193,263
131,447,430
87,327,014
267,011,921
653,435,120
854,344,000
326,800,190
323,903,776
Others
384
8,050,814
3,240,742
1,142,806,401
1,579,947,869
b)
1,142,806,401
1,579,947,869
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
2013
13,922,444
11,913,223
Commission on L/Cs-deferred
12,432,629
8,450,202
29,800,863
38,729,498
Commission on L/Gs
8,056,672
6,796,222
Commission on remittance
2,277,295
2,291,493
Other commission
Exchange gain (note - 15.1) - including gain from FC dealings
Settlement fees / Brokerage
68,477
34,877
66,558,380
68,215,515
21,381,059
22,875,968
87,939,439
91,091,483
21,381,059
22,880,312
(4,344)
21,381,059
22,875,968
554,038
529,500
3,713,143
4,024,657
Retail Income
10,712,432
16,153,308
3,370,950
3,501,870
7,187,553
6,239,601
Incidental charges
3,363,740
3,368,389
9,720,305
8,515,589
38,622,161
42,332,914
16.1 Miscellaneous earnings include syndication fee, commission from foreign remittance house / bank and sale proceeds
of various items, etc.
17 Salaries and allowances
Basic pay
50,304,090
51,707,020
Allowances
36,803,933
38,007,916
Bonus
7,948,200
8,246,000
4,816,554
4,937,008
99,872,777
102,897,944
9,314,099
9,324,931
705,852
772,645
3,878,815
3,802,340
13,898,766
13,899,916
672,768
731,628
19 Legal expenses
Legal expenses
Other professional charges
672,768
731,628
385
Notes to the Financial Statements for the year ended 31 December 2014
Amount in Taka
2014
2013
Postage
Telegram, telex, fax and e-mail
Data communication
Telephone - office
Telephone - residence
1,744,177
1,727,157
1,380,046
615,795
74,858
5,542,033
1,256,865
2,315,566
3,553,105
638,434
68,468
7,832,437
1,827,095
2,905,531
47,872
4,780,498
2,224,512
2,663,063
44,868
4,932,443
5,416,258
5,416,258
5,379,922
5,379,922
30,755
554,240
1,257,230
604,380
149,025
2,595,630
8,011,888
115,090
159,830
1,428,754
485,323
269,450
2,458,447
7,838,369
6,171,642
1,636,534
4,594,857
36,428
1,377,300
792,450
599,056
12,048
295,650
561,658
279,880
399,000
587,407
17,343,909
6,449,277
1,974,788
5,349,881
28,261
1,400
768,103
864,670
714,447
254,050
683,650
349,478
430,500
659,453
18,527,960
Depreciation
Fixed assets
Leased assets
Repairs
Building
Furniture and fixtures
Office equipment
Bank's vehicles
Maintenance
24 Other expenses
386
387
236,494,077,066
Segment liabilities
229,510,753,784
* Prime Exchange Company Pte. Ltd Singapore, PBL Exchange (UK) Ltd & PBL Finance (Hong Kong) Ltd
229,510,753,784
Segment liabilities
1,727,974,914
(887,200,000)
2,615,174,914
Segment assets
Net profit
(2,876,588,089)
11,091,265,897
11,091,265,897
Total income
(5,599,502,894)
(458,175,268)
Allocated expenses
11,549,441,165
1,202,344,041
(31,472,621)
(98,834)
(31,571,455)
1,202,344,041
(3,246,640)
(27,327,168)
(898,813)
(898,813)
(898,813)
PBSL
15,979,322,958
15,979,322,958
664,924,915
664,924,915
(150,122,640)
815,047,554
815,047,554
815,047,554
Islamic Banking
7,217,888,655
(176,707,682)
(7,675,068)
(184,382,750)
7,217,888,655
Conventional Banking
including OBU
8,995,999,676
132,338,673
132,338,673
8,995,999,676
(58,799,620)
(195,497,963)
Income
Particulars
3,147,761,155
(887,200,000)
2,260,561,155
236,494,077,066
(23,195,920)
(5,726,429,614)
(2,876,588,089)
155,534,593
11,750,778,858
-
77,589,901
155,534,593
77,589,901
77,589,901
155,534,593
PBIL
11,750,778,858
11,750,778,858
Inside Bangladesh
Income
Less: Inter-segmental income
Total income
Operating profit (Profit before unallocated
expenses and tax)
Allocated expenses
Particulars
I) Geographical Segment
44,636,299
2,439,019,694
2,439,019,694
68,591,343
(11,717,071)
80,308,413
(150,803,625)
231,112,038
231,112,038
231,112,038
2,321,590,422
66,028,804
(10,870,823)
55,157,980
2,321,590,422
(47,147,565)
113,176,368
8,420,232,696
8,420,232,696
(215,954,205)
(7,773,902)
(208,180,303)
(198,744,603)
(86,126,788)
76,691,088
76,691,088
76,691,088
** Investment
(PBIL+PBSL)
41,601,324
(1,905,168)
(1,905,168)
41,601,324
(46,541,466)
* Remittance (Outside
BD)
75,827,949
16,184,777
(846,247)
15,338,530
75,827,949
(57,114,594)
73,299,371
PBL Finance
(Hong Kong)
Ltd.
113,176,368
113,176,368
Outside Bangladesh
Prime Exchange
PBL Exchange
Pte. Ltd.
(UK) Ltd.
(Singapore)
73,299,371
44,636,299
73,299,371
44,636,299
256,349,329,132
256,349,329,132
2,245,536,965
(906,690,973)
3,152,227,938
(3,075,332,692)
(5,986,555,947)
12,214,116,577
12,214,116,577
(458,175,268)
12,672,291,845
Total
256,349,329,133
3,152,227,939
(906,690,973)
2,245,536,966
256,349,329,133
(3,075,332,692)
(5,986,555,946)
12,214,116,577
12,214,116,577
12,214,116,577
Total
Annexure-H
388
Chairman
Director
5,391,868,993
34,627,456,736
89,275,355
2,942,889,234
30,840,210,630
755,081,517
40,019,325,729
Deposits (note-13a.6)
Liabilities:
91,804,093
Other assets
56,642,992
30,925,806,865
3,097,836,950
Investments (note-6a.1)
1,412,686,578
4,434,548,251
Up to 1 month
Assets:
Particulars
(7,470,084,528)
52,375,736,803
51,338,023
52,324,398,780
44,905,652,275
2,602,981,707
128,842,350
24,803,590,283
17,270,237,935
100,000,000
1-3 months
Director
23,142,572,137
39,273,178,865
5,310,728,935
31,623,967,930
2,338,482,000
62,415,751,002
210,081,160
179,235,798
52,909,983,172
9,116,450,872
3-12 months
153,476,611
55,115,885,561
1,290,414,068
49,250,159,050
4,575,312,443
55,269,362,172
3,345,273,685
1,154,308,119
36,009,389,193
14,760,391,175
1-5 years
3,242,878,767
49,059,230,124
11,203,125,180
37,856,104,944
52,302,108,890
176,340,640
2,817,082,531
5,093,657,559
2,717,882,879
28,396,910,612
13,100,234,670
Above 5 years
Managing Director
24,460,711,980
230,451,488,089
17,944,881,561
2,942,889,234
201,894,841,335
7,668,875,959
254,912,200,069
176,340,640
9,067,223,176
6,612,686,818
147,366,652,393
72,641,827,544
1,512,686,578
17,534,782,921
Total
Annexure-I
389
2,942,889,234
Other accounts
34,667,482,153
7,669,546,403
93,799,325
30,834,917,191
Deposits
795,876,404
42,337,028,557
Liabilities:
32,181,138
Other assets
56,951,072
32,710,088,393
3,574,030,738
Investments
1,504,236,605
4,459,540,611
Up to 1 month
Cash in hand
Assets:
Particulars
(7,120,876,722)
52,373,279,908
53,939,544
52,319,340,364
45,252,403,186
902,690,595
129,543,122
26,135,640,853
17,984,528,616
100,000,000
1-3 months
22,426,794,317
40,313,948,025
6,228,724,763
31,620,399,791
2,464,823,471
62,740,742,342
72,854,253
180,210,658
53,371,226,559
9,116,450,872
3-12 months
448,540,620
55,350,900,285
1,290,414,068
49,237,982,774
4,822,503,443
55,799,440,905
2,134,178,582
1,160,586,383
37,744,284,765
14,760,391,175
1-5 years
1,157,601,537
49,062,112,605
11,214,125,179
37,847,987,426
50,219,714,142
176,340,640
2,871,010
5,121,361,881
2,757,995,330
29,060,910,612
13,100,234,670
Above 5 years
24,581,606,157
231,767,722,976
18,881,002,879
2,942,889,234
201,860,627,546
8,083,203,317
256,349,329,133
176,340,640
3,144,775,578
6,648,653,116
152,719,235,900
74,496,312,013
1,604,236,605
17,559,775,281
Total
Annexure-I (1)
390
Particulars
2014
2013
Paid-up capital
10,293.49
10,293.49
27,423.70
26,811.97
27,312.77
26,495.44
5,791.27
4,532.82
5,823.59
4,493.43
Total assets
254,912.20
243,868.80
Total deposits
204,837.73
201,907.14
147,366.65
153,588.76
118,111.17
116,414.90
10
71.94%
76.07%
11
7.61%
5.09%
12
2,392.90
1,829.50
13
11,214.64
7,814.50
14
4,165.30
3,342.05
15
23.78
10.22
16
Cost of fund
7.36%
8.80%
17
221,521.17
211,398.98
18
33,391.03
32,469.83
19
9.56%
10.86%
20
0.96%
0.76%
21
6,194.36
5,582.71
22
2.32
1.78
23
2.32
1.78
24
8.43
14.57
FINANCIAL STATEMENTS
(ANNEXURE-K)
391
Notes
2014
USD
2013
Taka
Taka
3,698,555
3,698,555
288,300,173
288,300,173
347,658,546
347,658,546
4
5
77,029,695
33,711,251
110,740,946
33,593
935,103
115,408,197
6,004,418,487
2,627,771,777
8,632,190,264
2,618,535
72,890,705
8,995,999,676
3,592,242,835
2,457,608,207
6,049,851,042
3,091,918
5,618,574
6,406,220,080
110,826,709
8,638,875,435
6,174,618,379
2,105,781
2,105,781
164,144,402
164,144,402
93,753,151
93,753,151
10
2,475,707
115,408,197
192,979,839
8,995,999,676
137,848,550
6,406,220,080
115,408,197
8,995,999,676
6,406,220,080
227,296
5,681,742
9,667,692
15,576,730
17,717,568
442,888,358
753,590,824
1,214,196,750
17,672,245
499,139,380
779,617,066
1,296,428,691
15,576,730
1,214,196,750
1,296,428,691
6
7
392
11
Profit and Loss Account for the year ended 31 December 2014
Particulars
Notes
2014
USD
2013
Taka
Taka
Interest income
12
4,595,965
356,708,919
237,699,454
13
(2,964,386)
(230,076,343)
(134,334,236)
1,631,579
126,632,576
103,365,218
Net interest
Commission, exchange, brokerage, etc.
14
234,922
18,233,143
16,732,483
15
137,462
10,668,874
7,689,346
2,003,963
155,534,593
127,787,047
16
132,575
10,289,648
10,985,512
17
10,626
824,702
855,636
379
29,406
40,662
Legal expenses
Postage, stamp, telecommunication, etc.
18
1,545
119,938
195,127
19
3,166
245,759
285,516
Auditors' fees
Depreciation and repair of Bank's assets
20
8,326
646,173
658,226
Other expenses
21
142,247
11,040,294
2,910,067
298,865
23,195,920
15,930,746
1,705,099
132,338,673
111,856,301
Specific provision
General provision
Other provision
1,705,099
132,338,673
111,856,301
Current tax
Deferred tax
1,705,099
132,338,673
111,856,301
393
2014
USD
2013
Taka
Taka
4,595,965
356,708,919
237,699,454
(2,964,386)
(230,076,343)
(134,334,236)
234,922
18,233,143
16,732,483
(132,575)
(10,289,648)
(10,985,512)
(19,697)
(1,528,790)
(1,679,870)
137,462
10,668,874
7,689,346
(138,896)
(10,780,204)
(2,628,704)
1,712,794
132,935,951
112,492,961
Interest payments
Fees and commission receipts in cash
Cash payments to employees
(32,929,357)
(2,566,823,592)
(1,283,481,494)
(862,838)
(67,257,721)
(5,502,433)
899,953
70,150,809
(56,661,099)
(1,002,364)
(78,133,658)
(118,196,586)
(33,894,605)
(2,642,064,161)
(1,463,841,612)
(32,181,811)
(2,509,128,210)
(1,351,348,651)
(1,521)
(118,551)
(31,807)
(1,521)
(118,551)
(31,807)
31,410,395
2,448,421,444
1,536,886,081
31,410,395
2,448,421,444
1,536,886,081
(772,937)
(60,825,317)
185,505,623
1,466,944
(4,898,407)
4,471,493
347,658,546
167,051,330
3,698,555
288,300,173
347,658,546
3,698,555
288,300,173
347,658,546
3,698,555
288,300,173
347,658,546
394
395
Rate
10%
Office equipment
20%
c) For additions during the year, depreciation is charged for the remaining days of the year and for disposal depreciation
is charged up to the date of disposal.
1.4 Basis for valuation of liabilities and provisions
1.4.1 Benefits to the employees
The retirement benefits accrued for the employees of the units as on reporting date have been accounted for in
accordance with the provisions of Bangladesh Accounting Standard-19, "Employee Benefit". Bases of enumerating the
retirement benefit schemes operated by the Bank are outlined below:
a) Provident fund
Provident fund benefits are given to the permanent staffs of the OBU under the Provident Fund Rules of the Bank. The
Commissioner of Income Tax, Taxes Zone - 5, Dhaka has approved the Provident Fund as a recognized provident fund
within the meaning of section 2(52) read with the provisions of part - B of the First Schedule of Income Tax Ordinance 1984.
The recognition took effect from 07 July 1997. The Fund is operated by a Board of Trustees consisting six members (03
members from management and other 03 members from the Board of Directors) of the Bank. All confirmed employees
of the Units are contributing 10% of their basic salary as subscription to the Fund. The units also contribute equal amount
of the employees' contribution. Interest earned from the investments is credited to the members' account on yearly basis.
b) Gratuity fund
The Bank operates a funded gratuity scheme on "Continuing Fund Basis", in respect of which provision is made annually according
to the recommendation of Actuarial which is covering all its permanent eligible employees in accordance with Bank Service Rules.
The Second Secretary (Tax Exemption), National Board of Revenue, Segun Bagicha, Dhaka has approved the Prime Bank Limited
Employees' Gratuity Fund as a recognized Gratuity Fund (Letter Ref no. 08.01.0000.035.02.0016.2013/217, dated 22/07/2013)
within the meaning of Para 2,3 & 4, read with the provisions of Part - C of the First Schedule of Income Tax Ordinance 1984. The
recognition took effect from July 22, 2013. The Fund is operated by a Board of Trustees consisting six members (03 members from
the Board of Directors and other 03 members from management) of the Bank. Actuarial valuation of gratuity scheme has been
made to assess the adequacy of the liabilities provided for the scheme as per BAS-19 Employees Benefit".
c) Welfare fund
Prime Bank's employees' welfare fund is subscribed by monthly contribution of the employees. The Bank also contributes
to the Fund from time to time. The Fund has been established to provide coverage in the event of accidental death or
permanent disabilities of the employees. Disbursement from the fund is done as per rules for employees' welfare fund.
Welfare fund for Off-shore Banking Units are maintained with Head Office, Prime Bank Limited.
d) Incentive bonus
Prime Bank started a incentive bonus scheme for its employees. 10% of net profit after tax is given by the Board of directors
in every year for its employees. These bonus amount distributed among the employees as per performance. The bonus
amount are paid annually, normally first quarter of every following year and the cost are accounted for the period to which
it relates. Provision for incentive bonus for Off-shore Banking Units is kept with Head Office, Prime Bank Limited.
1.4.2 Provision for liabilities
A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result of a past
event and it is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with
the BAS 37 "Provisions, Contingent Liabilities and Contingent Assets".
1.5 Revenue recognition
1.5.1 Interest income
In terms of the provisions of the BAS-18 "Revenue", the interest income is recognized on accrual basis.
1.5.2 Fees and commission income
Fees and commission income arises on services provided by the units are recognized on a cash receipt basis. Commission
charged to customers on letters of credit and letters of guarantee are credited to income at the time of effecting the transactions.
1.5.3 Interest paid and other expenses
In terms of the provisions of the BAS - 1 "Presentation of Financial Statements" interest and other expenses are recognized
on accrual basis.
2 General
a) These financial statements are presented in Taka, which is the Banks functional currency. Figures appearing in these
financial statements have been rounded off to the nearest Taka.
b) Assets and liabilities & income and expenses have been converted into Taka currency @ US$1 = Taka 77.9494 (closing
rate as at 31st December 2014) and Tk.77.6135 (average rate which represents the year end).
396
2014
USD
2013
Taka
Taka
3,698,555
288,300,173
347,658,546
3,698,555
288,300,173
347,658,546
3,698,555
288,300,173
347,658,546
57,044,185
4,446,560,011
1,760,328,910
6,516,199
507,933,785
742,662,715
Over Draft
1,238,184
96,515,708
96,268,814
T.R Loan
12,231,127
953,408,983
992,982,397
77,029,695
6,004,418,487
3,592,242,835
20,964,720
1,634,187,335
1,409,272,204
12,746,531
993,584,442
1,048,336,003
33,711,251
2,627,771,777
2,457,608,207
110,740,946
8,632,190,264
6,049,851,042
20,964,720
1,634,187,335
1,409,272,204
12,746,531
993,584,442
1,048,336,003
33,711,251
2,627,771,777
2,457,608,207
21,718
1,692,925
1,880,845
7,280
567,449
585,892
Vehicle
4,595
358,161
625,181
33,593
2,618,535
3,091,918
1,339
104,377
104,110
7 Other assets
Advance deposits and advance rent
Stationery A/c & Stamp in hand
437
34,078
40,792
Suspense
553,526
43,147,019
5,473,673
379,801
29,605,231
935,103
72,890,705
5,618,574
397
2014
USD
2013
Taka
Taka
55,826,709
4,351,658,435
5,008,368,379
55,000,000
4,287,217,000
1,166,250,000
110,826,709
8,638,875,435
6,174,618,379
OBU has been enjoying foreign currency loan of US$ 20,000,000 from International Finance Corporation bearing
interest @ 3.25% with 3 months LIBOR & USD $ 25,000,000 from FMO, Netherland bearing interest @ 3.80% with 6
months LIBOR and USD $ 10,000,000 from Commercial Bank of Qatar bearing interest @ 3.40% on quarterly basis.
9 Deposits and other accounts
Bank deposits
Customer deposits and other accounts (note-9.1)
2,105,781
164,144,402
93,753,151
2,105,781
164,144,402
93,753,151
761,458
59,355,218
56,442,058
181,317
14,133,526
14,097,371
845,000
65,867,243
318,006
24,788,415
23,213,722
2,105,781
164,144,402
93,753,151
32,578
2,539,430
10 Other liabilities
Interest on bills discount
Interest on borrowing
Provision for Expenses/adjusting A/C credit
477,862
37,249,073
6,470,680
260,168
20,279,920
20,023,985
1,705,099
132,911,416
111,353,884
2,475,707
192,979,839
137,848,550
11 Contingent liabilities
11.1 Acceptance & endorsement
Back to Back bills
Less: Margin
11.2 Letters of guarantee
Letters of guarantee (Local)
227,296
17,717,568
17,672,245
227,296
17,717,568
17,672,245
227,296
17,717,568
17,672,245
5,681,742
442,888,358
499,139,380
5,681,742
442,888,358
499,139,380
5,681,742
442,888,358
499,139,380
Less: Margin
11.3 Irrevocable Letters of credits
Letters of credits
Back to Back letter of credit
Less: Margin
398
2014
USD
2013
Taka
Taka
9,667,692
753,590,824
779,617,066
9,667,692
753,590,824
779,617,066
9,667,692
753,590,824
779,617,066
2,526,686
196,104,937
30,966,367
1,121,445
Less: Margin
12 Interest income
Loan (general)
SOD
LTR loan
148,605
11,533,784
19,918,659
Lease finance
Hire purchase
564,267
43,794,718
59,722,734
1,353,034
105,013,695
125,116,889
4,592,592
356,447,134
236,846,093
3,373
261,785
853,361
3,373
261,785
853,361
4,595,965
356,708,919
237,699,454
1,538
119,331
1,639,914
127,279,499
114,608,821
1,322,934
102,677,512
19,725,415
2,964,386
230,076,343
134,334,236
120,213
9,330,134
6,928,998
2,928
227,244
37,881
2,940,106
3,567,123
40,536
3,146,116
3,766,777
781
1,305
101,286
36,707
32,060
2,488,258
2,432,098
234,922
18,233,143
16,732,483
234,922
18,233,143
16,732,483
399
2014
USD
Taka
2013
Taka
2,587
10,725
124,150
137,462
200,786
832,378
9,635,711
10,668,874
194,783
1,022,430
6,472,133
7,689,346
61,593
54,413
10,586
5,983
132,575
4,780,486
4,223,165
821,627
464,369
10,289,648
5,117,143
4,536,307
834,875
497,187
10,985,512
7,881
211
2,533
10,626
611,695
16,381
196,626
824,702
621,867
55,291
178,478
855,636
717
612
216
1,545
55,664
47,527
16,747
119,938
81,735
92,409
20,983
195,127
1,171
1,928
68
3,166
90,890
149,621
5,248
245,759
85,047
145,036
55,433
285,516
7,696
7,696
597,279
597,279
636,661
636,661
102
335
194
630
8,326
7,893
25,980
15,021
48,894
646,173
8,510
13,055
21,565
658,226
10,796
996
3,969
69
1,385
723
770
123,539
142,247
837,889
77,322
308,071
5,351
107,469
56,136
59,748
9,588,307
11,040,294
957,078
100,565
720,428
333,167
5,658
59,186
72,476
3,543
657,965
2,910,067
21 Other expenses
Security and cleaning
Entertainment
Bank charge & Commission
Car expenses
Books, magazines and newspapers, etc.
Travel expenses
Local conveyance, labor, etc.
Training & internship
Other Professional Charges
Exgratia
Miscellaneous expenses
400
FINANCIAL STATEMENTS
(ANNEXURE-L)
401
Introduction
We have audited the accompanying financial statements of Prime Bank Investment Limited, which comprise the
Statement of Financial Position as at December 31, 2014 and the Statement of Comprehensive Income, Statement of
Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements for the period then ended, and a
summary of significant accounting policies and other explanatory information.
Managements responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994, the Securities and Exchange Rules
1987 and other applicable laws and regulations and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Bangladesh Standards on Auditing (BSAs). Those standards require that we comply with relevant
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risk of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments; the
auditor considers internal control relevant to the entitys preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Prime Bank
Investment Limited as at December 31, 2014 and its financial performance and its cash flows for the period then
ended in accordance with Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994 and Securities
and Exchange Rules 1987.
We also report that:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of those books;
c) the Statement of Financial Position and the Statement of Comprehensive Income dealt with the report are in
agreement with the books of accounts and returns;
d) the expenditure incurred and payments made were for the purpose of the Companys business for the period;
Chartered Accountants
402
Amount in Taka
31.12.2014
31.12.2013
ASSETS
Non-Current Assets
Property, plant and equipment
12,804,672
17,924,016
37,500,000
37,500,000
2,614,571
3,137,486
344,306
53,263,549
58,561,502
6,016,517,292
6,503,380,927
Investment in shares
1,102,855,608
1,066,059,442
Dividend Receivable
4,018,805
4,468,239
765,968
56,168
7,603,618
15,972,649
32,863,813
87,686,951
Prepaid expenses
Advance corporate income tax
Cash and bank balances
Total current assets
Total Assets
7,164,625,104
7,677,624,376
7,217,888,653
7,736,185,876
3,000,000,000
3,000,000,000
28,002,888
28,002,888
15,117,108
198,499,857
3,043,119,996
3,226,502,745
513,315
513,315
Retained earnings
Total Equity
Non-current Liabilities
Current Liabilities
3,387,911,205
3,788,934,831
Loan facilities
95,625
79,303
44,100
44,100
Chartered Accountants
Director
4,161,269
7,972,785
700,000,000
504,502,037
8,534,689
29,139,720
673,694
601,331
10
10
74,348,064
177,895,701
4,175,768,656
4,509,169,818
7,217,888,653
7,736,185,878
Vice Chairperson
403
Amount in Taka
Jan-Dec14
Jan-Dec13
INCOME
Interest income
391,826,475
455,964,116
Settlement fee
53,211,749
45,258,899
Management fee
19,872,877
21,232,690
29,691,761
252,033,568
31,836,370
24,160,056
539,612
225,000
Dividend on shares
Underwriting commission
Issue management fee
Bank interest on STD accounts
Documentation fees
100,000
50,000
3,201,399
5,601,605
19,000
17,000
530,299,243
804,542,934
EXPENDITURE
Interest expenses
452,709,342
568,950,077
6,565,430
6,260,808
28,775,522
31,576,176
7,993,200
7,649,825
238,050
125,525
1,512,472
932,710
239,250
59,450
115,000
115,000
6,428,119
6,263,540
1,261,030
1,895,940
Security expense
2,021,006
1,991,839
Other expenses
1,559,232
1,475,824
1,299,153
7,218,567
510,508,960
636,027,753
18,790,283
168,515,181
195,497,963
(176,707,681)
168,515,181
7,675,068
28,500,742
8,532,689
29,190,904
(857,621)
(690,162)
(184,382,749)
140,014,439
(0.61)
0.47
Chartered Accountants
404
995,916
1,308,710
Director
Vice Chairperson
405
3,000,000,000
3,000,000,000
Director
3,000,000,000
Particulars
28,002,888
28,002,888
28,002,888
General Reserve
198,499,857
14,117,108
(184,382,749)
198,499,857
Retained Earnings
Vice Chairperson
3,226,502,745
3,042,119,996
(184,382,749)
3,226,502,745
Total
2013
(46,500,419)
414,413,028
(630,000)
(11,000,000)
(2,413,975)
(2,403,750)
Advance deposit
(200,000)
(117,588)
(13,370,988)
(136,261,037)
(63,115,382)
264,630,653
(261,300)
(472,560)
303,379,894
403,555,453
(128,424,862)
(70,270)
198,243,148
214,625,214
372,936,880
617,637,837
(364,644,636)
(645,000,000)
(239,999,996)
(364,644,636)
(884,999,996)
(54,823,138)
(2,731,507)
87,686,951
90,418,458
32,863,813
87,686,951
Director
Vice Chairperson
406
FINANCIAL STATEMENTS
(ANNEXURE-M)
407
Introduction
We have audited the accompanying financial statements of Prime Bank Securities Limited, which comprise the
Statement of Financial Position as at December 31, 2014 and the Statement of Comprehensive Income, Statement of
Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements for the period then ended, and a
summary of significant accounting policies and other explanatory information.
Managements responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994, the Securities and Exchange Rules
1987 and other applicable laws and regulations and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Bangladesh Standards on Auditing (BSAs). Those standards require that we comply with relevant
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risk of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments; the
auditor considers internal control relevant to the entitys preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Prime Bank
Securities Limited as at December 31, 2014 and its financial performance and its cash flows for the period then ended
in accordance with Bangladesh Financial Reporting Standards (BFRSs), the Companies Act 1994 and Securities and
Exchange Rules 1987.
We also report that:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of those books;
c) the Statement of Financial Position and the Statement of Comprehensive Income dealt with the report are in
agreement with the books of accounts and returns;
d) the expenditure incurred and payments made were for the purpose of the Companys business for the period;
Chartered Accountants
408
Amount in Taka
31.12.2014
31.12.2013
ASSETS
Non-Current Assets
666,785,887
670,155,631
2,021,974
5,243,558
606,497
912,072
157,415
664,000,000
664,000,000
535,558,155
659,755,776
38,975,388
31,514,980
Investment in Securities
87,628,861
81,550,534
Accounts receivable
12,350,022
13,137,599
14,974,084
134,764,255
381,629,800
398,772,908
15,500
1,202,344,042
1,329,911,407
Shareholders Equity
767,484,333
799,055,787
Share capital
750,000,000
750,000,000
17,484,333
49,055,787
Non-current Liabilities
233,839
Deferred tax
233,839
434,859,709
530,621,780
Loan to Customers
Other assests
Total Assets
EQUITY AND LIABILITIES
Retained earnings
Current Liabilities
Security deposit
112,820
265,370
17,750,107
150,475,274
371,066,787
338,010,202
45,929,995
41,870,934
1,202,344,042
1,329,911,407
Accounts payable
Chartered Accountants
Director
Chairman
409
Amount in Taka
31.12.2014
31.12.2013
INCOME
Commission income
30,121,613
31,572,380
Interest income
11,667,012
67,578,007
386,861
2,868,559
2,257,010
1,430,440
971,313
569,922
45,403,809
104,019,308
EXPENDITURES
Operating Expenses
22,992,826
24,731,443
Financial Expenses
46,349,449
48,648,446
4,287,514
4,455,387
73,629,789
77,835,276
(28,225,980)
26,184,032
3,246,640
1,302,164
Direct Expenses
Profit before provision and tax
Less: Provisions
Provision for diminution in value of investment in shares
(428,503)
(51,962)
3,675,143
1,354,126
(31,472,620)
24,881,868
98,834
8,922,800
Current Tax
490,088
9,337,871
Deferred Tax
(391,254)
(415,071)
(31,571,454)
15,959,069
(0.42)
0.21
Chartered Accountants
410
Director
Chairman
411
Director
15,959,069
49,055,787
33,096,718
Retained earnings
750,000,000
Taka
750,000,000
Paid up capital
Particulars
17,484,333
750,000,000
49,055,787
Retained earnings
750,000,000
Taka
(31,571,454)
Paid up capital
Particulars
799,055,787
15,959,069
783,096,718
767,484,333
(31,571,454)
799,055,787
Chairman
Total
Total
2013
(31,571,454)
15,959,069
2,633,263
2,607,827
15,500
614,121
(1,782,450)
(969,400)
(428,503)
(51,962)
3,675,143
1,354,126
4,112,953
3,554,712
(20,000)
82,500
(7,440,408)
(31,283,680)
(6,078,327)
(4,498,684)
787,577
(5,478,679)
17,143,108
5,256,792
(391,254)
(415,071)
490,088
9,337,871
322,333
50,405
(132,877,717)
135,807,449
33,056,585
(14,268,227)
(15,500)
(95,008,016)
114,143,715
(122,466,517)
133,657,495
893,896
(53,380)
893,896
(53,380)
1,782,450
969,400
1,782,450
969,400
(119,790,171)
134,573,515
134,764,255
190,740
14,974,084
134,764,255
25,000
7,011
Cash at Bank
14,949,084
134,757,244
14,974,084
134,764,255
Director
Chairman
412
FINANCIAL STATEMENTS
(ANNEXURE-N)
413
414
2013
Revenue
Commission Income
628,295
627,720
16,302
16,251
575,663
276,247
(359,890)
(341,600)
(52,711)
(59,440)
(538,221)
(419,383)
269,438
99,795
( 14,088)
(5,440)
255,350
94,355
$ 255,350
$ 94,355
415
2013
ASSETS
Non-Current Assets
Property, Plant and Equipment
61,974
100,324
61,974
100,324
69,990
69,990
11,528
8,050
1,144,279
874,745
1,225,797
952,785
$ 1,287,771
$ 1,053,109
250,000
250,000
583,017
422,022
833,017
672,022
6,429
9,728
6,429
9,728
431,277
367,066
17,048
4,293
448,325
371,359
Total Liabilities
454,754
381,087
$ 1,287,771
$ 1,053,109
Current Assets
Other Receivables
Prepayments
Total Assets
EQUITY AND LIABILITIES
Equity
Share Capital
Retained Earnings
Total Equity
Non-Current Liabilities
Current Liabilities
Trade and Other Payables
Tax Payable
416
Balance at 1.1.2014
Total
Share
Capital
Retained
Earnings
672,022
250,000
422,022
Distributions to Owner
Dividends
(94,355)
(94,355)
(94,355)
(94,355)
255,350
255,350
Total Comprehensive
Income for the Year - 2014
$ 833,017
$ 250,000
$ 583,017
719,778
250,000
469,778
Dividends
(142,111)
(142,111)
(142,111)
(142,111)
94,355
94,355
$ 672,022
$ 250,000
$ 422,022
Balance at 31.12.2014
Balance at 1.1.2013
Distributions to Owner
Balance at 31.12.2013
417
2013
269,438
99,795
Total Adjustments
52,711
59,440
Depreciation
52,711
59,440
322,149
159,235
(232)
Prepayments
(3,478)
(735)
64,211
210,754
382,882
369,022
(4,632)
(7,500)
378,250
361,522
(14,361)
(81,660)
13,676
(14,361)
(67,984)
(94,355)
(142,111)
(94,355)
(142,111)
269,534
151,427
874,745
723,318
$ 1,144,279
$ 874,745
418
FINANCIAL STATEMENTS
(ANNEXURE-O)
419
15 February 2015
Park View
183-189 The Vale Acton
London
W3 7RW
420
Turnover
Administrative expenses
Operating loss
Period ended
31 December
2014
Year ended
31 December
2013
358,535
330,858
(373,832)
(364,551)
(15,297)
(33,693)
(6)
(4)
(15,303)
(33,697)
(15,303)
(33,697)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
421
as at 31 December 2014
2014
2013
Fixed assets
Tangible assets
120,721
132,303
Current assets
Cash at bank and in hand
Creditors: amounts falling due within one year
223,333
283,684
(245,807)
(302,435)
(22,474)
(18,751)
98,247
113,552
500,000
500,000
(401,753)
(386,448)
98,247
113,552
Shareholders' funds
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small
companies regime within Part 15 of the Companies Act 2006.
Approved by the Board and authorised for issue on 15 February 2015
422
Year ended
31 December
2013
50,102
(255,807)
(6)
(4)
(6)
(4)
Capital expenditure
Payments to acquire tangible assets
Net cash outflow for capital expenditure
(1,731)
(1,731)
48,365
(255,811)
48,365
(255,811)
423
424
FINANCIAL STATEMENTS
(ANNEXURE-P)
425
426
Interest income
Interest expenses
2014
2013
HK$
HK$
8,412,464
8,012,647
(2,562,328)
(2,879,048)
5,850,136
5,133,599
5,425,926
4,457,709
11,276,062
9,591,308
Staff costs
(2,974,550)
(2,304,613)
(197,210)
(104,396)
Depreciation
(1,525,677)
(1,158,499)
(4,697,437)
(3,567,508)
6,578,625
6,023,800
(1,083,089)
(986,273)
5,495,536
5,037,527
5,037,527
4,635,624
Dividends
(5,037,527)
(4,635,624)
5,495,536
5,037,527
427
2014
2013
HK$
HK$
Non-current assets
Property, plant and equipment
227,628
286,175
229,651,539
241,716,631
347,966
323,572
849.546
1,504,980
230,849,051
243,545,183
2,699,327
2,012,001
219,297,000
233,118,600
84.816
163.230
222,081,143
235,293,831
8,767,908
8,251,352
8,995,536
8,537,527
3,500,000
3,500,000
5,495,536
5,037,527
8,995,536
8,537,527
Current assets
Discounted bills receivable
Current liabilities
Accrued liabilities and other payables
Amount due to ultimate holding company
Income tax payable
Equity
Share capital
Retained earnings
The financial statements were approved and authorised for issue by The Board of Directors on 07 February 2015
Director
428
Director
2014
2013
HK$
HK$
Operating activities
Profit before taxation
6,578,625
6,023,800
4,012
197,210
104,396
6,775,835
6,132,208
12,065,092
(123,474,085)
(24,394)
(154,737)
687,326
989,049
(13,821,600)
122,928,000
5,682,259
6,420,435
Tax paid
(1,161,503)
(1,728,124)
4,520,756
4,692,311
(138,663)
(300,963)
(138,663)
(300,963)
568,000
(5,037,527)
(4,635,624)
(5,037,527)
(4,067,624)
(655,434)
323,724
1,504,980
1,181,256
849,546
1,504,980
849,546
1,504,980
Adjustments for :
Property, plant and equipment written off
Depreciation
Investing activities
Financing activities
Issue of shares
429
430
431
Gallery of some
Significant Events in 2014
432
Branch
Network
Bashabo Branch
Shapnil (2nd & 3rd Floor), 60-61
South Bashabo, Dhaka
Adamjee EPZ Branch
Phone: (02) 7219201, Direct: (02)
AdamjeeEPZ, Holding # 4
7219206
Siddirganj, Narayanganj
Fax: (02) 7219205
Phone: (02) 7692025-26, 7692024
Fax: (02) 7692027
Bashundhara Branch
Swift: PRBLBDDHAEZ
BaitulAman Tower (1st Floor),
Boshundhara Project, Block-B, Plot#
Asad Gate Branch
236, P.S-Cantonment, Dhaka
Family World Tower,
Phone: PABX: (02) 8845214, 8845213,
2/6, Sir Sayed Road, Ward # 42,
Mohammadpur (Mirpur Road), Dhaka Direct: (02) 8845215
Fax: (02) 8845214
Phone: (02) 9125400, 8142106,
8142134, Fax: (02) 9122640
Bhairab Branch
181, Tin Potty Road, BhairabPawAshulia Branch
rashava, Bhairab, Kishoregonj
Sherif Mansion (1st floor), Diakhali,
Jamgora Bazar, Ashulia, Savar, Dhaka Phone: PABX: 02-9470723, 9470771
Fax: 02-9471755
Phone: (02) 7788290, 7788326,
7788325,
Bijoy Nagar Branch
Fax: (02) 7788291
Akram Tower (1st floor), 15/5, Bijoy
Nagar (SayedNazrul Islam Saroni),
Banani Branch
House # 62, Block # E, Kemal Ataturk Dhaka-1000
Phone: (02) 9335762, 9335732,
Avenue, Banani, Dhaka-1213
9334123
Phone: (02) 8815754, 9889868
Fax: 02-9332639
Fax: 02-8853616
Swift: PRBLBDDH020
Boalmari Branch
Azahar Tower, Holding 503, Station
Banasree Branch
Arcadia (Ground Floor and 1st Floor), Road, Ward # 03, Boalmari, Faridpur
Phone: 06324-56132, 06324-56130
Plot No.-14, Block No.-C, Main Road,
Fax: 06324-56139
Banasree, Dhaka.
Phone: (02) 8399548, 8399591
Damudya Branch
Fax: (02) 8399547
Holding # 264 (1st & 2nd floor), Ward
# 8, Sonali Bank Road, Damudya,
Bangshal Branch
Shariatpur
43/44 Malitola, North South Road,
Phone: (06023) 56396
Bangshal, Dhaka-1100
Fax: (06023) 56390
Phone: (02) 9561501, 7123480,
7113310,
Dhanmondi Branch
Fax: 7175185
Momtaz Plaza (1st floor), House No
Swift: PRBLBDDH026
# 7, Road No # 4, Dhanmondi R/A,
Dhaka
Baridhara Branch
Phone: (02) 8622304, 9662704
Concord I-K Tower (1st Floor)
Fax: (02) 9662705
Plot# 02, Block# CEN(A) North
Avenue, Gulshan-2 Dhaka-1212
Phone: (02) 9850376, (02) 9850392, Elephant Road Branch
Ananta Plaza, 136, Elephant Road,
01730781181 (HOB)
Dhaka-1205
Fax: (02) 9850384
Dhaka Division
433
434
Mirpur-1 Branch
Rabiul Plaza (1st Floor), Plot # Shee-1/
Kha, Section -1, Mirpur, Dhaka-1216
Phone: (02) 8034126, 8034590
Fax: (02) 8034591
Mirzapur Branch
Rashid BiponiBhaban,
706, College Road, Mirzapur, Tangail.
Phone: (09229) 56591, Direct:
(09229) 56592
Fax: (09229) 56593
Modhukhali Branch
Modhuban Shopping Mall (1st Floor)
Modhukhali, Faridpur
Phone: 0632656017 (Direct),
0632656018 (PABX)
Fax: 0632656019
Mohakhali Branch
69, Mohakhali C/A, Dhaka-1212
Phone: (02) 9850302, 9882291
Fax: 88-02-9886052
Swift: PRBLBDDH007
Motijheel Branch
Adamjee Court Annex Building -2,
119-120, Motijheel C/A, Dhaka-1000
Phone: (02) 7175491-2, 9567225,
9562982
Fax: 88-02-9567223
Swift: PRBLBDDH001
Mouchak Branch
Manhattan Tower (1st Floor),
83, Siddheswari Circular Road,
Malibagh, Dhaka-1217
Phone: (02)8352831, 9347757
Fax: 88-02-9338883
Swift: PRBLBDDH013
Moulvi Bazar Branch
77/4, Moulvi Bazar, Dhaka-1100
Phone: (02) 7313407, 7311017
Fax: 88-02-7318305
Swift: PRBLBDDH003
Mymensingh Branch
10, Swadeshi Bazar, Mymensingh
Phone: PABX: (091) 52390,
Direct: (091) 52391
Fax: (091) 52391
Narayanganj Branch
Modern Model Complex, 56, S.M.
Maleh Road, Narayanganj-1400
Phone: (02) 764689, 7630150
Fax: 02-7630140
Swift: PRBLBDDH012
Chittagong Division
Agrabad Branch
B.M Height (1st Floor)
318, Sheikh Mujib Road
Agrabad, Badamtoli Chittagong.
Phone: (031) 716724-5, 7207018
Fax: 88-031-718971
Swift: PRBLBDDH015
Ashugonj Branch
SeriyaSayed Tower,
Post office Road, Ashugonj Bazar,
Ashugonj, Brahmanbaria
Phone: 08528-74596, 74595
Fax: (08528)74594
Banshkhali Branch
G.S. Plaza (1st floor), ChittagongBanshkhali Highway, BanshkhaliPawrashava, Banshkhali, Chittagong
Phone: (0303) 756222
Fax: (0303) 756223
Bhatiary Branch
Khalek Tower (1st & 2nd Floor)
Bhatiary (Uttar Bazar),
Sitakunda, Chittagong.
Phone: 031-2781261, 2781263
Fax: 031-2781262
Brahmanbaria Branch
1st Floor, K. Das Bhaban
K. Das Square, Brahmanbaria
Phone: 0851-61698, 0851-61699
Fax: 0851-58849
Chauddagram Branch
Abdul Goni Shopping Complex
(1st floor), Chowddgram Bazar,
Comilla
Phone: (08020) 56364
Fax: (08020) 56362
Chaumuhani Branch
Holding # 180-182 (1st floor), Feni
Road, Chowmuhani, Begumganj,
Noakhali.
Phone: (0321) 54096
Fax: (0321) 56096
Comilla Branch
Holding No: 10/8, Ward#12, Chatpatty
(Gangagonj), Kotowali, Comilla
Phone: (081) 72611, 72612, 72610
Fax: (081) 72646
Coxs Bazar Branch
Hajera Shopping Center,
Holding # 256, Main Road,
Coxs Bazar
Phone: (0341) 51085
Fax: (0341) 51084
Dagonbhuiyan Branch
R.B Plaza, 391 FazilerGhat,
Dagonbhuiyan, Feni
Phone: (03323) 79248, 79249
Fax: (03323) 79250
Fatickchari Branch
Haji Hossain Plaza (1st Floor),
College Road, Bibirhat, Dhurang
Union, Fatickchari, Chittagong
Phone: (03022) 56006
Fax: (03022) 56006
Feni Branch
Kazi Center, Holding No: 106,
S.S.K. Road, Feni
Phone: (0331) 63091, 63093, 63092
Fax: (0331) 63092
Hajigonj Branch
Ananda Complex, Holding # 191,
Hajiganj Bazar, Hajiganj,Chandpur
Phone: (08424) 75110, 75111
Fax: (08424) 75111
Halishahar Branch
Nandita House (1st & 2nd Floor),
Plot No. # 5/A, Lane # 2, Road # 2,
Block # G, Halishahar Housing Estate,
Double Mooring, Chittagong
Phone: (031) 2512039, 2512064
Fax: (031) 2512054
Hathazari Branch
N. Zahur Shopping Center (1st Floor)
Kachari Road, Hathazari, Chittagong
Phone: (031) 2601524, 2601525
Fax: 88-031-2601526
IBB O. R. Nizam Road Branch
O.R. Nizam Road, Hazrat Garibullah
City Corporation Bhaban (Ist Floor),
739/804 CDA Avenue, Bagmoniram,
Chittagong
Phone: (031) 639855, 2861437
Fax: 031-2861434
Swift: PRBLBDDH027
435
436
Raojan Branch
Fazal Tower (1st Floor), Raojan Bus
Stand, MaderMohal, Chittagong
Phone: (03026) 56214, 56168
Fax: (03026) 56215
RajshahiDivision
Baneswar Branch
Baneswar Bazar, Puthia, Rajshahi
Phone: 01755534922
Bogra Branch
331/364, Rangpur Road,
Borogola, Bogra-5800
Phone: (051) 78203, 67172
Fax: 051-61142
Swift: PRBLBDDH022
ChapaiNawabganj Branch
Holding No.29 ( First Floor),
Islampur, Daudpur Road, Bara
Indira Moor, ChapaiNawabganj
Phone: (0781) 51125, 51126
Fax: (0781) 51127
Ishwardi Branch
Holding # 1335/982, (1st Floor)
Station Road, IshwardiPawrashava,
Word # 7, Ishwardi, Pabna
Phone: (07326) 64435, 64650
Fax: 07326-64436
Joypurhat Branch
Tahera Complex,
306 Main Road, Joypurhat
Phone: (0571) 51156, 51157
Fax: (0571) 51158
Mohadebpur Branch
CharmathaBoker More,
Bridge Road, Mohadebpur, Naogaon.
Phone: (07426) 75041, 75088
Fax: 07426-75044
Naogaon Branch
JagannathBhaban (2nd & 3rd Floor)
Ward # 4, Holding # 320, Main Road
Bridge-er-More, Naogaon
Phone: (0741) 62150, 62151
Fax: 0741-62152
Natore Branch
Holding # 1052 (1st floor),
Dhaka-Rajshahi Highway, Natore
Phone: (0771) 67001
Fax: (0771) 67002
Pabna Branch
423/1, Sonapotti Road, Pabna
Phone: (0731) 66426, 66425
Fax: (0731) 66399
Rajshahi Branch
138/144, Shaheb Bazar,
Rajshahi-6100
Phone: (0721) 773981, 774582, 771874
Fax: 0721-773980
Swift: PRBLBDDH009
Sherpur Branch
Azhar Complex (1st Floor)
Sherpur Bus Stand, Sherpur, Bogra
Phone: 05029-77228;
PABX: 05029-77229
Fax: 05029-77225
Sylhet Division
Barolekha Branch
Hazi Abdul Ali Trade Center,
842, Barolekha, Moulvibazar
Phone: PABX: (08622) 56519,
Direct: (08622) 56520
Fax: (08622) 56522
Beanibazar Branch
Zaman Plaza (1st Floor),
Beanibazar, Sylhet
Phone: (08223) 56139, 56140
Fax: (08223) 56141
Biswanath Branch
Al-Burak Shopping Center (1st Floor),
Biswanath Bazar, Biswanath, Sylhet
Phone: (08244)56017
Fax: (08224) 56004
Court Road Branch
Court Road, Moulvi Bazar -3200
Phone: (0861) 53877, 53878
Fax: 0861-53878
Swift: PRBLBDDH014
Dhaka Dakshin Branch
Bakul Mansion (1st floor),
College Road, Golapganj, Sylhet
Phone: (08227) 56180, (08227) 56187
Fax: (08227) 56308
Fenchugonj Branch
Akul Shah Shopping City (1st Floor),
Thana Road Point, Fenchugonj Bazar,
Fenchugonj, Sylhet
Phone: 08226-56414 (Direct),
08226-56415 (PABX)
Fax: 08226-56416
Habigonj Branch
Holding # 3794 (1st floor), Commercial Area, Habiganj, Habiganj
Phone: (0831) 62814, 62813
Fax: (0831) 62815
Tajpur Branch
Maya View Super Market (1st Floor),
Tajpur, Osmaninagar,
Balaganj, Sylhet
Phone: (08242) 56211, 56210
Fax: (08242) 56212
Upashahar Branch
Alif Center (1st Floor - Front Portion),
Subhanighat, Upashahar, Sylhet
Phone: (0821) 811366, 723524
Fax: (0821) 710094
KhulnaDivision
Daulatpur Branch
Akankha Tower 454, Khan-A-Sabur
Road, Daulatpur, Khulna
Phone: 041-2850877, 2850876
Fax: 041-2850875
Jessore Branch
47, NetajiSubhas Chandra Road,
Jessore town, Jessore-7400
Phone: (0421) 68815, 68814
Fax: 0421-68816
Swift: PRBLBDDH018
Khulna Branch
7, Old Jessore Road, Khulna -9100
Phone: (041) 720071, 725100
Fax: 041-731195
Swift: PRBLBDDH004
Kushtia Branch
Bangabandhu Super Market 2,
N S Road, Kushtia
Phone: (071) 72431, 72432
Fax: (071) 72430
Magura Branch
219, Monowara Complex (1st Floor)
Syed Ator Ali Road,Magura
Phone: 0488-51105 (Direct),
0488-51055 (PABX)
Fax: 0488-51200
Barisal - 8200
Phone: (0431) 64011, 64012
Fax: 0431-63712
Swift: PRBLBDDH008
Rangpur Division
Dinajpur Branch
Mazeda Plaza ( 1st Floor), 518/473
Ganashtala, Jail Road, Dinajpur
Phone: (0531) 51289, 51291
Fax: (0531) 51296
Rangpur Branch
Shah-Amanat Super Market
(1st Floor), 268 Station Road,
JahajCompanier More, Rangpur.
Phone: (0521) 64119, 64120
Fax: (0521) 64118
SME Branches
Aganagar SME Branch
Golden Plaza (2nd Floor),
PurboAganagar, Keranigonj, Dhaka
Mobile: (02) 7763273
Email: smeaganagar@primebank.com.bd
Fax: 88-02-7763273
Bhujpur SME Branch
Macca Shopping Center (1st Floor),
Bhujpur, Fatickchari, Chittagong
Mobile: 01713-255771
Email: smebhujpur@primebank.com.bd
Chatkhil SME/Agri Branch
Momota Shopping Center, C&B
Road, Chatkhil ,Noakhali
Mobile: (03222) 75113
Email: smechatkhil@primebank.com.bd
Fax: 03222- 75119
Companygonj SME Branch
Mother Shoping Complex,
5, West NabipurNabinagar Road,
Satkhira Branch
Islam Plaza,
AbulKashem Road, Satkhira.
Phone: (0471) 62450, 63007
Fax: 0471-63001
Barisal Division
Barisal Branch
37, Hemayet Uddin Road,
437
438
Birmingham Branch
493 Coventry Road
Birmingham, B10 0JS
Tel: 01217735553
Cell: 07916252007
PBL Finance (Hong Kong) Limited
Suite 1407, 14/F Admiralty Centre
Tower One
18 Harcourt Road, Hong Kong
Tel.: +852 25292710, +852 25292719
Cell: +852 62742996; +852 63135258;
+852 54191413
Fax: +852 25296009
SWIFT: PRBL HK HH
Email: rashed@pblfinancehk.com,
masud@pblfinancehk.com, pbl.
finance.hk@primebank.com.bd
Prime Bank Investment Ltd.
Peoples Insurance Bhaban (11th
Floor)
36 Dilkusha C/A
Dhaka 1000
Phone: +88 02 9555674, +88 02
9557688
Fax: +88 02 9559257
Email: pbil.bd@gmail.com,
mbid@primebank.com.bd
Prime Bank Securities Limited
29 Rajuk Avenue (3rd Floor)
Motijheel C/A, Dhaka-1000
Phone: +880-2-9513396-7
Fax: +880-2-9566912
Email: pbsl@primebank.com.bd
Web: www.pbsl.com.bd
Prime Bank Foundation
House No. # 08 (2nd Floor)
Road No. # 19/A, Block - E
Banani, Dhaka - 1213.
PABX: 8813788, 8813800
Direct Phone: 8828900
Fax: 9883982
Web: www.primebankfoundation.org
Glossary
AD
Authorized Dealer
ALCO
Asset Liability Committee
ATM
Automated Teller Machine
BB
Bangladesh Bank (Central Bank of Bangladesh)
B/L Bad/Loss
BA
Bangladesh Accounting Standard
BIBM
Bangladesh Institute of Bank Management
CRR
Cash Reserve Requirement
CRG
Credit Risk Grading
CSR
Corporate Social Responsibly
CPI
Consumer Price Index
CDBL
Central Depository Bangladesh Limited
CBS
Core Banking Software
CRISL
Credit Rating and Information Services Ltd.
DCFCL
Departmental Control Function Check List
DEPZ
Dhaka Export Processing Zone
DP
Depository Participants
EPS
Earning Per Share
EPZ
Export Processing Zone
FY
Fiscal Year (July to June)
GDP
Gross Domestic Product
GRI
Global Reporting Initiative
HOB
Head of Branch
ICAB
Institute of Chartered Accountants of Bangladesh
IT
Information Technology
IMF
International Monetary Fund
IAS
International Accounting Standard
IPO
Initial Public Offering
LC
Letter of Credit
MBID
Merchant Banking and Investment Division
MTMF
Medium Term Macro Economic Framework
MANCOM Management Committee
NII
Net Interest Income
NPL
Non Performing Loan
NCBs
Nationalized Commercial Banks
OBU
Offshore Banking Unit
PCBs
Private Commercial Banks
PBL
Prime Bank Limited
PECL
Prime Exchange Co. Pte.Ltd.
PBIL
Prime Bank Investment Ltd.
PBSL
Prime Bank Securities Ltd.
POS
Point of Sale
PV
Present Value
RWA
Risk Weighted Assets
RMG
Readymade Garments
ROA
Return on Assets (excluding contingent items)
ROE
Return on Equity
R&D
Research and Development
ROD
Rights Share Offer Document
SAFA
South Asian Federation of Accountants
SME
Small and Medium Enterprise
SOP
Standard Operating Procedure
SLR
Statutory Liquidity Requirement
439