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BOARD OF DIRECTORS

ALHAJ MD. NURUN NEWAZ MR. YAKUB ALI


Chairman Director

MR. A.S.M. MAIN UDDIN MONEM MR. MD. ABUL BASHAR


Vice-Chairman Director

MR. MD. ABDUL AWAL MR. MD. HARUNUR RASHID


Director Director

MR. AMJADUL FERDOUS CHOWDHURY MR. KHAIRUL ALAM CHAKLADER


Director Director

MR. S.M. ABU MOHSIN MR. MD. MOINUDDIN


Director Director

MR. ABDUS SALAM MR. MD. AMIRUL ISLAM, FCS, FCA


Director Independent Director

MRS. SOHELA HOSSAIN MR. K.A.M. HAROON


Director Independent Director

MR. GOLAM HAFIZ AHMED


Managing Director & CEO

Annual Report 2014 11


BOARD OF DIRECTORS

ALHAJ MD. NURUN NEWAZ


CHAIRMAN

MR. A.S.M. MAIN UDDIN MONEM MR. MD. ABDUL AWAL MR. AMJADUL FERDOUS CHOWDHURY
VICE CHAIRMAN DIRECTOR DIRECTOR

MR. S.M. ABU MOHSIN MR. ABDUS SALAM MRS. SOHELA HOSSAIN
DIRECTOR DIRECTOR DIRECTOR

Annual Report 2014 12


MR. YAKUB ALI MR. MD. ABUL BASHAR MR. MD. HARUNUR RASHID
DIRECTOR DIRECTOR DIRECTOR

MR. KHAIRUL ALAM CHAKLADER MR. MD. MOINUDDIN MR. K.A.M. HAROON
DIRECTOR DIRECTOR INDEPENDENT DIRECTOR

MR. MD. AMIRUL ISLAM, FCS, FCA MR. GOLAM HAFIZ AHMED
INDEPENDENT DIRECTOR MANAGING DIRECTOR & CEO

Annual Report 2014 13


CORPORATE INFORMATION

CHAIRMAN : Alhaj Md. Nurun Newaz

VICE CHAIRMAN : Mr. A.S.M. Main Uddin Monem

CHAIRMAN : Mr. S.M. Abu Mohsin


EXECUTIVE COMMITTEE OF THE BOARD

CHAIRMAN : Mr. Md. Amirul Islam, FCS, FCA


AUDIT COMMITTEE OF THE BOARD Independent Director

CHAIRMAN : Mr. A.S.M. Main Uddin Monem


RISK MANAGEMENT COMMITTEE OF THE BOARD

MANAGING DIRECTOR & CEO : Mr. Golam Hafiz Ahmed

COMPANY SECRETARY : Mr. Md. Tarikul Alam

CHIEF FINANCIAL OFFICER : Mr. Mohammed Mizanur Rahman FCA

AUDITORS : ACNABIN
Charterd Accountants
BDBL Bhaban (Level-13 &14)
12, Kawran Bazar, Commercial Area
Dhaka-1215, Bangladesh.

LEGAL ADVISOR : Barrister Khan Mohammad Shameem Aziz


Shameem Aziz & Associates
Suit No. 502(5th Floor), Paramount Heights
65/2/1, Box Culvert Road, Purana Paltan, Dhaka-1000.

CREDIT RATING AGENCY : Alpha Credit Rating Limited


Sadharan Bima Bhaban-2(8th Floor)
139, Motijheel C/A, Dhaka-1000.

Annual Report 2014 14


EXECUTIVE COMMITTEE OF THE BOARD

MR. S.M. ABU MOHSIN


CHAIRMAN

ALHAJ MD. NURUN NEWAZ MR. YAKUB ALI


MEMBER MEMBER

MRS. SOHELA HOSSAIN MR. MD. HARUNUR RASHID


MEMBER MEMBER

Annual Report 2014 15


BOARDS AUDIT COMMITTEE

MR. MD. AMIRUL ISLAM, FCS, FCA


Independent Director
CHAIRMAN

MR. A.S.M. MAIN UDDIN MONEM MR. MD. ABUL BASHAR


MEMBER MEMBER

MR. KHAIRUL ALAM CHAKLADER MR. K.A.M. HAROON


Independent Director
MEMBER MEMBER

Annual Report 2014 16


RISK MANAGEMENT COMMITTEE OF THE BOARD

MR. A.S.M. MAIN UDDIN MONEM


CHAIRMAN

ALHAJ MD. NURUN NEWAZ MR. ABDUS SALAM


MEMBER MEMBER

MR. MD. ABUL BASHAR MR. MD. AMIRUL ISLAM, FCS, FCA
Independent Director
MEMBER MEMBER

Annual Report 2014 17


MANAGEMENT COMMITTEE

MANCOM
MR. MOHAMMED MIZANUR RAHMAN, FCA MR. MOHAMMAD WAHEDUR RAHMAN MR. MD. FAZLUR RAHMAN MR. ABU ZAFORE MD. SALEH
EXECUTIVE VICE PRESIDENT & CFO SR. EXECUTIVE VICE PRESIDENT SR. EXECUTIVE VICE PRESIDENT SR. EXECUTIVE VICE PRESIDENT
(from left to right)
MEMBER MEMBER MEMBER MEMBER

MANCOM
MR. GOLAM HAFIZ AHMED MR. AKHTAR HAMID KHAN MR. TAPAN KANTI SARKAR MR. ASHIM KUMAR SAHA MR. A.R.M. SAOKOT HOSSAIN (from right to left)
MANAGING DIRECTOR & CEO DEPUTY MANAGING DIRECTOR EXECUTIVE VICE PRESIDENT EXECUTIVE VICE PRESIDENT SR. VICE PRESIDENT
CHAIRMAN MEMBER MEMBER MEMBER SECRETARY

Annual Report 2014 18


EXECUTIVES
MANAGING DIRECTOR & CEO SR. VICE PRESIDENT
MR. GOLAM HAFIZ AHMED MR. AGA MOHSENUL MULK
MR. MD. YUNUS KHAN
DEPUTY MANAGING DIRECTOR MR. MD. SHAFIQURE RAHMAN
MR. MANZURUL KARIM
MR. AKHTAR HAMID KHAN
MR. MOINUDDIN AHMED
MR. SK SIRAJUL KABIR
COMPANY SECRETARY
MR. MD. TARIKUL ALAM VICE PRESIDENT
MR. MONZURUL HOQUE AKAND
SR. EXECUTIVE VICE PRESIDENT MR MD. SALIM ULLAH
MR. ISHTIAQUE AHMAD MR. MD. ABDUL MATIN
MR. MUKHTAR AHMED MR. MOSTAFIZUR RAHMAN KHANDOKER
MR. MAMUN-UR-RASHID MR. TAHER AHMED
MR. MD. FAZLUR RAHMAN MR. MD. SHAMSUL HUDA
MR. ABU ZAFORE MD. SALEH MR. A.K.M. SARWAR-E-ALAM CHOW.
MR. A.B.M. ABDULLAH MR. A.K.M. KAMAL CHOWDHURY
MR. MOHAMMAD WAHEDUR RAHMAN MR. MD. NUR NABI
MR. SALIM ULLAH
EXECUTIVE VICE PRESIDENT MR SAIF UDDIN AHMED
MR. TAPAN KANTI SARKAR MR. MD. MOFAZZAL HOSSAIN
MR. SYED MOHAMMAD MASUM MR. MOHAMMAD HANIF
MR. ASHIM KUMAR SAHA MR. SYED SADIQUR RAHMAN
MR. SUBODH CHANDRA SAHA MR. SHUJA UDDIN
MR. JOYNUL ABEDIN MR. SYED NURUL HUDA
MR. MD. ABDUL AWAL MR. MASUD KARIM KHAN
MR. ZALAL UDDIN CHOWDHURY MR. FARHAD AKHTER MD. SHAHRIYAR
MR. MAHFUZUR RAHMAN KHAN MR. ANJAN DATTA
MR. MOHAMMED MIZANUR RAHMAN, FCA, CFO MR. MD. EKHLAS
MR. MD. MIZANUR RAHMAN
MR. KARTICK SEN
SR. VICE PRESIDENT MR. SARWARUL KABIR CHOWDHURY
MR. MD. KHAIRUL ALAM MR. MD. AMAN ULLAH
MR. GAZI HASSAN MAHMOOD MR. MOHAMMAD KAMRUZZAMAN
MR. MD. ALI ASHRAF SHAIKH MR. kISHALOY SEN
MR. MD. MOHIUDDIN MR. MD. ABDUL WADUD
MR. SHOAIB AHMED MR. MD. MANSUR UDDIN
MR. MD. ABDUL BARI SARKER MR. MD. MAHBUBUR RAHMAN
MR. MD. ABDUL HANNAN MR. A.N.M. OBAIDUR RAHMAN
MS. MARIA GOMES MR. MD. JAHANGIR HOSSAIN
MR. SALEH UDDIN AHMED CHOWDHURY MR. MD. HARUN-UR-RASHID
MR. A.R.M. SAOKOT HOSSAIN MR. MUHAMMAD EMRANUL MUSABBIR
MR. MD. ALI KADAR MR. MD. TAIAB ALI KHAN
MR. MD. GIASUDDIN BHUIYAN MR. A.K.M. EKHLASUR RAHMAN
MR. A.B.M. JASHIM UDDIN AHAMED
MR. JAGADISH CHANDRA DEBNATH, Principal Training Institute
MR. TANVIR AHMED SIDDIQUE
MR. HUMAYUN SHOAB
MR. SYED SHAHADAT HOSSAIN
MR. MD. SHAFIQUL ISLAM
MR. MD. ABDULLAH-AL-KAFI MAZUMDER
MR. FAKRUL ISLAM

Annual Report 2014 19


SR. ASSTT. VICE PRESIDENT
ASSTT. VICE PRESIDENT
MR. MD ABDULLAH SHAHID
MR. JUBAIR HASAN KHAN MR. MD. ZAMSHED HAIDER CHOWDHURY
MR. SHAMIMUL HAQUE MR. A.S.M. MONJURUL MALEQUE
MR. MIZANUR RAHMAN KHAN MR. MD. ABDUS SATTAR
MR. MD. JAMAL UDDIN MS. BILKIS JAHAN CHOWDHURY
MR. MD. HANIF MR. ABDUL HALIM KHAN
MR. A.K.M. HUMAYUN KABIR MR. K.M SHAFIQUR RAHMAN
MR. FAZLE MAHMUD MR. SWAPAN KUMAR ROY
MR. MAHESH PROSAD SARKER MR. MD. ABDUR RAHIM
MR. MD. ALAUDDIN MR. BORHANUDDIN MAZUMDER
MR. SAADAT MUHAMMAD AYUB MR. MD. SALIM
MR. A.H.M. ABDUS SADIK KHAN MR. JOYNAL ABEDIN
MR. MD. MONIRUZZAMAN MR. MD. NURUL HUDA
MR. MD. HARUN-OR-RASHID MS. NIGER SULTANA
MR. TAREQ MOHAMMED FEROZ MS. AYESHA SIDDIQUA
MR. MOHD REZOWAN MR. MD. MOHI UDDN
MR. FAKHRUL PASHA CHOWDHURY MR. S.M. REZAUL IMRAN
MR. MD. LIAKOT ALI MR. BIMAN KANTI GHOSE
MR. MOHAMMED LOKMAN MR. MD. ANISUR RAHMAN
MR. MOHAMMAD MOSHAREF HOSSAIN MR. SHAH MOSTAFA KAMAL PASHA
MR. K.A.S.M. KHALID KAUSAR MR. A.Z.M. ZAFOR ULLAH
MR. A.K.M. SHAHABUDDIN MR. IFTEKHARUL AZIM
MR. SHEIKH SHAHADAT HOSSAIN MR. SULTAN SALAH UDDIN
MR. MD. FARHAD HOSSAIN MR. MD. SHAKILUR RAHMAN
MR. MD. SOLMAN MR. SHAMSUR RAHMAN KHAN
MR. MD. MAHBUB HOSSAIN MR. MANTU KUMAR DAS
MRS. SANJEEDA ISMAIL CHAUDHURI MR. A.K.M. FAKHAR UDDIN
MR. MD. NAZRUL ISLAM MR. FAIZUR RAHMAN
MR. A.S.M. TARIQUL ALAM MR. MD. SAROWAR KAMAL CHOWDHURY
MR. MD. AMINUL EHSAN MR. ABU MOHAMMAD SANAULLAH
MR. MD. RABIUL HOQUE BHUIYAN MR. HAROON-UR-RASHID
MR. MUFTI MUSTAFIZUR RAHMAN MR. A.K.M. NAZMUL HAIDER
MR. MUHAMMAD SHAHIDUL ISLAM MR. MIR MOHAMMAD SHAHINUR RAHMAN
MR. MD. WALIUL ISLAM MR. MEER MAHMOOD BILLAH
MR. MOHAMMAD NURUL HAQUE MR. MOHAMMAD DIDARUL ALAM
MR. MD. JASHIMUDDIN MR. PRADIP KUMAR HALDER
MR. MD. MOSTAFIZUR RAHMAN MR. MD. SHAFIQUZZAMAN BHUIYAN
ASSTT. VICE PRESIDENT MR. A.S.M. IQBAL HOSSAIN
MR. MD. ZAKIR HOSSAIN
MR. A.N.M. SADEQUE ELAHI MR. A.S.M. KAMAL HOSSAIN
MR. FAZLE AZIM
MS. FARIDA YASMIN
MR. MD. BELAYET HOSSAIN SPECIAL VIGILANCE OFFICER
MR. ABUL MONSUR CHOWDHURY MR. SHYAMA PRASAD BHATTACHARJEE
MR. MD. KHAYYAM IQBAL TAHIN
MR. SHAMSUL HOQUE SARKER CHIEF LAW OFFICER
MR. MUSTAFA TAYAB MR. MD. ASHEKUR RAHMAN
MR. MD. ANISUL KARIM MAZUMDER
MR. MD. SHAHIDULLAH HEAD OF SECURITY AND LOGISTICS
MR. MD. AKBAR HOSSAIN MAJOR MD. ABDUR RAZZAK (Retd.)
MR. MD. MAKSUMUL ISLAM
MR. MD. SHAKHAWAT HOSSAIN
MR. MD. NACHER
MR. MOHAMMED. MONIRUL ISLAM

Annual Report 2014 20


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Annual Report 2014 21


Alhaj Md. Nurun Newaz
Chairman

Annual Report 2014 22


From the desk of the Chairman
Bismillahir Rahmanir Rahim
Dear Shareholders,
Assalamu Alaikum.

It is my great pleasure to be able to welcome you all to the 30th Annual General Meeting of the Bank
in this pleasant summer morning. I am immensely grateful to Almighty Allah to grace me with the
opportunity to be present with you on this auspicious occasion.

In 2014, we have primarily focused on various compliance issues to put the Bank in further strong
foothold on the ground to look forward boldly to the future to harvest good fortune. This may have
put us in somewhat behind in terms of immediate result but in the long run, we hope, that we will
be rewarded immensely by deriving business on a more secured base.

As part of our on going reform programme in some key operational aspects of the business, we
have already streamlined Banks credit and International Trade and brought discipline in credit
administration by ensuring proper documentation including pre and post disbursement
supervision. In order to support and strengthen this, technical assistance has been ensured
through Banks Information Technology Division manned by a highly experienced and skilled Team,
supplementing our effort by designing new programs regularly. All these changes though initially
put some pressure and hindrance in our outcome as it was required to educate the valued clients
about their benefits, but after a couple of years of operation, its true results are in the offing. We
sincerely believe that in near future the Bank would reach a commendable stage to satisfy our
Stakeholders.

In 2014, we also focused in strengthening Banks Internal Control and other supervisory units to
clear up all lapses and errors that occurred in course of day to day business over the long years of
operations so as to safe-guard your interest and make it certain that the peoples money is safe and
not diverted away by the unscrupulous elements. Now we can confidently note that the branch
operations are very transparent, prompt and in accordance with the regulations in force.

In 2014 two events that took place boosted up the morale and spirit of all Stakeholders including
the valued Shareholders and the working force as well. It is a very pleasant thing that after long
waiting, the construction of Banks own 22 storied building at the heart of countrys business
centre in Motijheel C/A has been completed. The entire Head Office apparatus was shifted to this
nicely built structure having all state of the art facilities to allow the people to work in an
atmosphere that will give them conducive environment to discharge their duties with a dedicated
mind. This building has already been termed as one of the beautiful structures by the admirers and
became a tool for our marketing strategy. This will surely enhance our image among the people
showing our strength and stability. In the last leg of the year the building was formally inaugurated
through a colorful programme where eminent personalities were present and expressed their good
gesture for success of our endeavors.

Annual Report 2014 23


Another event was un-veiling of our new logo which took place in the same programme that
symbolized our pledge to go forward with a renewed zeal and spirited attitude. This newly designed
logo is part of our re-branding initiate following series of meetings and deep contemplation. It is
strongly hoped that this logo will present our Bank in a more focused way and consequently
enhance our business potential.

During the year, our efforts towards discharging CSR activities were also received due importance.
In addition to usual routine ones, the Bank awarded stipend to 274 meritorious destitute students
from various parts of the country who passed SSC and HSC examinations securing GPA 5.00. It
was a continuation of our steps of previous years in this regard that received remarkable response
and appreciation. Further, donations were made to the Honble Prime Ministers Relief Fund, Lakho
Konthe Sonar Bangla Fund,Ahsania Mission Cancer Hospital and other Diabetic Hospitals in the
remote areas of the country. We hope to continue this noble effort unhindered in future also.

You would surely appreciate that though our all acts are directed towards paying good dividends
to you, but the compliance efforts, as I have mentioned, put some obstacles and compelled us to
keep this at a conservative size. But situation is changing and we hope that in near future, the size
of dividend would reach the expectations of the Stakeholders.

We always try to ensure welfare of the work force who are the life of this Bank, Motivational and
skill development steps like training both in house and outside Bank including abroad are being
taken to groom the Banks workforce to make themselves equipped with upto date industry level
knowledge to face the changing scenario, customers choice and need.

I would like to take this opportunity to record my sincere thanks and gratitude to the Govt. of the
Peoples Republic of Bangladesh, Bangladesh Bank, Bangladesh Securities and Exchange
Commission, Dhaka and Chittagong Stock Exchange Limited, Registrar of Joint Stock Companies
and Firms and other regulatory bodies for their continued and prudent guidance and support to our
journey ahead. I would also like to place my thanks to all valued Shareholders, Clients, Well wishers
and Patrons for being with us supporting our efforts all the time. I also thank the Management
Team and dedicated employees of all strata for their sincere contribution to the growth of the
organization.

With this, I declare this AGM of the Bank open.

Khoda Hafez

Alhaj Md. Nurun Newaz


Chairman

Annual Report 2014 24


Golam Hafiz Ahmed
MANAGING DIRECTOR & CEO

Annual Report 2014 26


Message from the Managing Director and CEO
Bismillahir Rahmanir Rahim

Honble Chairman of the Board of Directors, Honble Vice Chairman, the Members of the Board present,
valued Shareholders, Senior level executives of the Bank, Media dignitaries, Assalamu Alaikum.

It is my immense pleasure to welcome you all to the Annual General Meeting of the Bank.

The Bank has completed another year of its journey towards excellence in 2014 completing nearly long
30 years of existence in the banking arena since its inception in 1985. We deeply express our gratitude
to Almighty ALLAH for making us fortunate enough to be together again on this occasion of AGM.

Bangladesh Banking sector has bright potential to flourish as we have a growing middle class eager to
upgrade their standard of living in one hand and a huge number of people living in remote areas, not
yet being privileged with banking facilities on the other. Bringing them under formal banking system
may create enormous opportunities of diversified business for us. The Central Bank has already
initiated various projects like opening of accounts of Tk.10/-, Tk.50/- and Tk.100/- for un-banked
segment of the population not getting the opportunities of banking. Another strategic sector that is
emerging and getting active support from the Central Bank is Green financing that would help in
preserving the nature and environment for greater sustainabilities. We are preparing ourselves to take
advantages of these steps in order to augment our whole operations to implement the inclusive
approach being pursued by Bangladesh Bank.

Dear Patrons,

You are aware that during the year, the political situation showed sort of abnormal calmness period and
a sense of acute uncertainty was felt round the year. This uncertainty played a significant role in
creating a stagnancy in investment both local & foreign, burdening the Banks with huge liquidity. The
Banks suffered both want of potential/feasible business compelling them to off load deposits and
reducing rate of interest, resulting Credit Deposit Ratio (CDR) to fall and remaining at lower than usual
level. With the prevalence of offshore finance and UPAS LCS, diminishing trend in credit growth with
falling lending rates bogged down the income of the Banks to a large extent. However, our utmost effort
was to keep the level of income at a satisfactory level by pursuing appropriate strategies .

All the branches of the Bank have been closely monitored and motivated to acquire fresh and good
business. Besides, due importance was given to realize all stuck up loans and advances by constituting
special team with special mission both at Head Office and Branch level. In applicable cases, legal
actions have been initiated and one to one negotiation also being continued.

It may be mentioned here that in 2014, our emphasis was mostly focused on compliance to rectify and
clean all lapses in allowing / sanctioning credit faculties so as to make the portfolio of the Bank healthy.
It is hoped that with this, the Bank would be greatly benefited in terms of both legal and procedural
aspects. You will be happy to learn that during the previous years of operation, it was possible to reduce
huge audit objections in line with the prudent guidelines of the Audit Committee of the Board. We can
now confidently assert that the credit portfolio of the Bank is more secured than ever. We do believe in
near future, its positive results will surface.

Annual Report 2014 27


We are happy to note here that the ongoing reform initiated in the processing of international trade and
streamlining of total credit management have shown positive outcome and helped us to exert more
control over the banks risk assets. To improve quality of assets, Banks Recovery Unit has been
entrusted with the task of intensive recovery drive both at Head Office and Branch Level.

Dear Shareholders, you might be-knowing,

In the last stage of 2014, two remarkable happy events took place. On 29th December,2014 our 22
storied own building NCC Bank Bhaban at the hub in of the countrys business centre Motijheel
Commercial Area was inaugurated. This aesthetic structure with its unique architectural design has
already caught attention of the people in general. Coinciding with this, we have also unveiled our new
logo through a colorful programme at the Banks own Head Office Bhaban where many eminent
personalities were present. It is expected to make these two developments as tools of invigorated next
level marketing drive and further image building in the eyes of mass people. If this can be done
properly, the status and market position of the Bank would greatly improve in a very short span of time.

Our emphasis on the CSR activities have also been continued as in the previous years. A major event
in this regard was giving away stipend to 274 meritorious students succeeded in SSC and HSC
examinations securing G.P.A of 5.00 coming from financially constraints families. In this connection, a
programme was held at a local auditorium where the Honble Governor of Bangladesh Bank attended
as Chief Guest. We hope to continue similar initiatives in future as part of our contribution in the
countrys human capital which will ultimately add value to the process of Nation building.

Taking this opportunity I would like to greatly place my thanks to Govt. of Peoples Republic of
Bangladesh, Bangladesh Bank, Bangladesh Securities and Exchange Commission, Registrar of Joint
Stock Companies and Firms, Dhaka and Chittagong Stock Exchanges, National Board of Revenue and
other Regulatory Bodies for their continued guidance, cooperation and support to enable us to perform
our activities within the set frame work.

I would also like to record my gratitude to the prudent Board of Directors of the Bank for guiding us to
the right path with their wise policy and other strategic decision. My sincere thanks also go to my
colleagues in the Management Team and employees of all grades for their active and dedicated services
towards continued growth of the organization. Before I end, I must thank and express my heartfelt
gratitude to our every valued customers for their continued support and trust on our beloved Bank.

I thank you all once again.

ALLAH Hafeez

With best regards,

Golam Hafiz Ahmed


Managing Director and CEO

Annual Report 2014 28


PERFORMANCE OF THE BANK AT A GLANCE
FIVE YEARS FINANCIAL HIGHLIGHTS BDT in Million (where applicable)

Particular 2010 2011 2012 2013 2014


Balance Sheet
Authorised capital 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Paid up capital 4,501.25 5,941.65 6,951.74 7,646.91 8,029.25
Statutory reserve 2,543.46 3,269.49 3,818.04 4,283.42 4,783.51
Other reserve (incuding general & assets revaluation reserve) 483.88 514.61 479.89 460.92 494.76
Surplus in Profit & Loss Account 1,828.57 1,605.18 886.15 878.58 1,042.17
Shareholders' equity 9,357.10 11,330.95 12,135.82 13,269.83 14,349.69
Deposits 67,961.24 81,127.17 96,918.22 98,229.44 105,703.61
Loans and advances 63,230.14 72,733.54 79,948.22 88,167.20 90,920.77
Investments 10,980.81 20,840.29 30,851.74 19,908.32 26,568.66
Fixed assets 1,191.49 1,506.77 1,743.59 1,736.64 2,573.25
Total assets (excluding contra items) 83,554.18 103,510.70 125,841.50 124,042.70 135,159.52
Total assets (including contra items) 101,046.73 123,648.07 149,973.98 150,278.49 168,257.57
Capital
Total risk weighted assets (RWA) 91,929.60 104,975.90 111,451.00 117,820.23 112,672.05
Tier-I capital 8,880.39 10,701.50 11,666.09 12,819.07 13,865.10
Tier-II capital 1,153.60 1,123.75 1,111.78 1,168.37 1,312.59
Total capital 10,033.99 11,825.25 12,777.87 13,987.44 15,177.70
Tier-I capital adequacy ratio 9.66% 10.19% 10.47% 10.88% 12.31%
Tier-II capital adequacy ratio 1.25% 1.07% 1.00% 0.99% 1.16%
Total capital adequacy ratio 10.91% 11.26% 11.47% 11.87% 13.47%
Asset Quality
Amount of non-performing loans & advances 1,425.28 1,938.30 4,369.02 4,862.41 6,735.52
Non performing loans & advances as % of total loans & advances 2.27% 2.68% 5.51% 5.56% 7.49%
Specific provision against classified loans and advances 742.80 780.01 1,705.14 2,663.39 2,705.15
General provision against un-classified loans and advances 740.31 795.15 620.74 667.96 721.24
General provision against off-balance sheet items 174.93 201.37 256.17 274.62 345.22
Percentage (%) of net classified loan 1.09% 1.60% 3.59% 2.53% 4.48%
Interest suspense balance 265.45 321.36 613.31 979.43 1,488.80
Foreign Exchange Business
Import 41,245.21 55,044.49 45,283.46 52,614.08 51,308.41
Export 16,125.52 20,981.00 13,346.66 14,549.29 14,354.30
Remittance 12,504.85 16,079.26 21,705.40 16,323.39 18,703.40
Financial Performance
Interest income on loans and advances 6,970.01 9,669.34 11,668.75 12,194.10 12,019.78
Interest paid on deposits and borrowings 4,483.54 8,007.52 9,427.21 10,154.70 9,339.23
Net interest margin 2,486.47 1,661.82 2,241.54 2,039.39 2,680.56
Net interest margin (%) 4.38% 4.31% 3.89% 2.93% 2.56%
Income from investments 1,642.02 2,916.35 2,793.48 2,801.83 2,672.99
Operating income 10,157.99 13,923.05 15,606.88 16,227.89 15,871.73
Operating expenses 6,057.79 9,708.29 11,580.06 12,529.08 12,124.93
Operating profit 4,040.97 4,186.65 3,958.12 3,698.81 3,746.80
Provision for loans & advances and other provisions made during the year 835.65 547.95 1,274.07 1,371.94 1,246.32
Profit before tax 3,248.23 3,630.15 2,742.75 2,326.88 2,500.48
Provision for tax 876.55 1,684.04 1,308.99 1,189.03 999.15
Profit after tax 2,371.68 1,946.11 1,433.76 1,137.84 1,501.33
Profit available for distribution 1,828.51 1,858.03 886.15 878.58 1,042.17

Annual Report 2014 29


BDT in Million (where applicable)

Particular 2010 2011 2012 2013 2014


Shareholders' Information
Earnings per share (EPS) 5.33 3.70 2.06 1.49 1.87
Price earnings (PE) ratio (times) 12.91 8.21 8.73 8.80 5.99
Dividend : Cash (%) - 10.00% - 6% -
Bonus (%) 32.00% 17.00% 10.00% 5% 10%
Net asset value (NAV) per share 20.79 19.50 17.46 17.34 17.87
Net operating cash flow per share 3.27 5.48 2.16 4.06 2.19
Market value of share 68.80 30.40 18.20 13.10 11.20
Market capitalisation 30,968.62 18,062.63 12,652.16 10,017.45 8,992.77
Number of shares 450,125,330 594,165,435 695,173,558 764,690,913 802,925,458
Number of shareholders 79,763 93,173 90,089 96,213 88,643
Financial Ratios
Credit deposit ratio (CDR) 93.04% 83.00% 77.00% 83.00% 77.41%
Return on equity (ROE) (%) 25.35% 18.98% 11.81% 8.96% 10.87%
Return on assets (ROA) (%) 2.84% 2.12% 1.14% 0.91% 1.16%
Return on investment (ROI) (%) 14.95% 13.99% 9.05% 11.04% 11.50%
Cost of fund (%) 9.31% 11.46% 12.05% 11.61% 10.81%
Cost income ratio (%) 54.65% 70.00% 72.05% 76.61% 76.39%
Other Information
Number of branches 79 87 93 101 103
Number of ATM 4 21 47 56 67
Number of employees 1,622 1,716 1,811 2,192 2,277
Number of foreign correspondents 418 449 434 420 396
Credit Ratings
Long term A1 AA3 AA- AA AA
Short term ST-2 ST-2 AR-2 AR-2 AR-2

Annual Report 2014 30


National Credit and Commerce Bank Limited
Value Added Statement
For the year ended December 31, 2014

The Value added statement for the bank shows how the value is created and distributed among different stakeholders
of the bank.

2014 2013
Particulars Taka % Taka %
Income from Banking Services 15,871,727,480 16,227,893,906
Less: Cost of Services & Supplies 10,229,720,174 10,944,460,505
Value Added by the Banking Services 5,642,007,306 5,283,433,401
Less: Provisions 1,221,323,403 1,351,935,762
4,420,683,903 3,931,497,639

Distribution of Value Added

To Employees as Salaries & Allowances 1,747,895,809 39.54% 1,433,655,370 36.47%


To Government as Income Tax 869,355,654 19.67% 1,204,981,256 30.65%
To NCC Bank Foundation 25,000,000 0.57% 20,000,000 0.51%
To Statutory Reserve 500,095,692 11.31% 465,375,643 11.84%
To Expansion & Growth 1,278,336,748 28.92% 807,485,370 20.54%
Retained Earnings for Current Year 1,001,233,526 672,471,532
Deferred Tax 129,793,588 (15,950,218)
Depreciation 147,309,634 150,964,056

4,420,683,903 100.00% 3,931,497,639 100.00%

Distribution of Value Added-2014 Distribution of Value Added-2013

Expansion & Growth Expansion & Growth


1,278,336,748 807,485,370
28.92% 20.54%
Salaries & Allowances Salaries & Allowances
1,747,895,809 1,433,655,370
39.54% 36.47%
Statutory Reserve
465,375,643
Statutory Reserve
500,095,692 11.84%
11.31% NCC Bank Foundation Income Tax
Income Tax
NCC Bank Foundation 869,355,654 20,000,000 1,204,981,256
25,000,000
19.67% 0.51% 30.65%
0.57%

Annual Report 2014 31


National Credit and Commerce Bank Limited
Economic Value Added Statement
For the year ended December 31, 2014

Economic Value Added (EVA) indicate the true economic profit of a company. EVA is an estimate of the amount by
which earnings exceed of fall short of required minimum return for shareholders at comparable risks. EVA of the bank
stood at Tk. -280.13 Million as on December 31, 2014 as against Tk. -500.82 million in 2013.

2014 2013
Particulars Taka Taka
Total Revenue 15,871,727,480 16,227,893,906
Less: Expenses 13,371,249,020 13,901,015,693
Profit Before Tax (PBT) 2,500,478,460 2,326,878,213
Less: Corporate Tax 999,149,242 1,189,031,038
Profit After Tax (PAT) 1,501,329,218 1,137,847,175

Shareholders' Equity 14,349,689,532 13,269,835,814


Add: Provision for Loans and Advances & Off-Balance Sheet Items
3,771,605,045 3,606,176,106
18,121,294,577 16,876,011,920

Average Shareholders' Equity 13,809,762,673 12,702,826,483


Cost of Capital* 12.90% 12.90%
Capital Charges 1,781,459,385 1,638,664,616
Economic Value Added (PAT-Capital Charges) (280,130,167) (500,817,441)

* Based on weighted average rate of Sanchya Patra issued by the Bangladesh Government plus 2% risk premium.

National Credit and Commerce Bank Limited


Market Value Added Statement
For the year ended December 31, 2014

Market Value Addition (MVA) is the difference between the equity market value of a company and the book value of
equity invested in the company. A high MVA indicates that the company has created substantial wealth for the
Shareholders.

2014 2013
Particulars Taka Taka
Market Value of Total Equity 8,992,765,130 10,017,450,960
Less: Book Value of Total Equity 14,349,689,532 13,269,835,814
Market Value Added (5,356,924,402) (3,252,384,854)

Annual Report 2014 32


Disclosures on Risk Based Capital (Basel II)
As on 31 December 2014

(1) Scope of Application Figures in crore Taka where applicable

Qualitative (a) The name of the top corporate


disclosures entity in the group to which National Credit and Commerce Bank Limited
this guidelines applies.
(b) The Consolidated financial statements of the Bank includes the
An outline of difference in
financial statements of (a) NCC Bank Limited, (b) NCCB
the basis of consolidation Securities and Financial Services Limited (c) NCCB Capital
for accounting and Limited & (d) NCCB Exchange (UK) Limited.
regulatory purpose, with a
brief description of the A brief description of NCC Bank Limited and its subsidiaries are
entities with in the group (a) as under:
that are fully consolidated ; National Credit and Commerce Bank Limited (NCCBL)
(b) that are given a
deduction treatment ; and National Credit and Commerce Bank Limited is one of the private
(c) that are neither commercial banks (PCBs) incorporated in Bangladesh as a
public banking Company limited by shares under the Companies
consolidated nor deducted Act, 1913, subsequently replaced by the Companies Act, 1994
(e.g. where the investment and governed by the Bank Companies Act-1991(amendment up
is risk weighted). to 2013). It commenced its banking business with 16 (sixteen)
branches from May 17, 1993. Presently, the bank has 103
branches all over Bangladesh, and two booths at uttara model
town, Uttara, Dhaka and Maniknagar, North Golapbagh, Dhaka
and the bank has no overseas branches as at 31 December
2014. The bank has 03 (three) subsidiary Companies namely,
NCCB Securities and Financial Services Limited (NCCBSFSL),
NCCB Capital Limited (NCCBCL) incorporated in Bangladesh &
NCCB Exchange (UK) Limited registered with the Registrar of
Companies for England and Wales.

NCCB Securities and Financial Services Limited (NCCBSFSL)


NCCB Securities and Financial Services Limited is a subsidiary
company of NCC Bank Limited. The company incorporated as a
private company limited by shares on April 04, 2010 with the
Registrar of Joint Stock Companies and Firms (RJSC) vide
certificate of incorporation no.C-83683/10 dated April 04, 2010
under the Companies, Act-1994. NCCBSFSL commenced its
operation from March 07, 2011. The main objective of the
company is to act as a full fledged stock broker & stock dealer to
execute buy and sell order of its clients and to maintain own
portfolio as well as customers portfolio.

NCCB Capital Limited (NCCBCL)


NCCB Capital Limited (NCCBCL) is also a subsidiary company of
NCC Bank Limited. The company incorporated as a private
company limited by shares on April 01, 2010 with the Registrar
of Joint Stock Companies and Firms (RJSC) vide certificate of
incorporation no.C-83649/10 dated April 01, 2010 under the
companies, Act-1994. The company is yet to start its operation
till date. The main objective of the company is to act as a full
fledged merchant banking activities like issue management,
underwriting, advisory services.

NCCB Exchange (UK) Limited

NCCB Exchange (UK) Limited is fully owned subsidiary company


of NCC Bank Limited. The company incorporated as a private

Annual Report 2014 33


Figures in crore Taka where applicable

company limited by shares with the Registrar of Companies for


England and Wales under registration no. 7669773 dated June
14, 2011. NCC Bank Limited got permission from Bangladesh
Bank vide letter no. BRPD/(M)204/28/2011-123 dated June 13,
2011 for opening a fully owned subsidiary company with two
branches at London and Birmingham in UK. NCCB Exchange
(UK) Limited obtained money laundering registration on July 28,
2011 issued by HM revenue & customs. The company got
registration from financial services authority (FSA) vide
reference no PSD/557817 dated October 26, 2011 to carry on
payment services activities under the payment services
regulations 2009 (PRSs).
(c) Any restriction, or other The rules and regulations of BRPD of Bangladesh Bank that
major impediments, on govern 'Single Borrower exposure limit for the customers are
transfer of funds or equally applicable for the Bank in financing its own subsidiaries.
As per BRPD Circular 05 dated 09 April 2005 is being applied by
regulatory capital within the the Bank in determining maximum amount of finance to the
group. subsidiaries of the Bank. NCCBL has a credit facility to NCCB
Securities and Financial Services Limited of Tk.176.16 crore as
on 31 December 2014. The bank has no other financing
outstanding with its other subsidiary as at 31 December 2014.
(d) The aggregate amount of
capital deficiencies in all
subsidiaries not included in
the consolidation that are As on the reporting date there was no such deficiency.
deducted and the names (s)
of such subsidiaries.

(2) Capital Structure

Qualitative (a) Summary information on the The terms and conditions of the main features of all capital
disclosures terms and conditions of the instruments have been segregated in terms of the eligibility
main features of all capital criteria set forth vide BRPD Circular No.35 dated 29 December
instruments, especially in 2010 and other relevant instructions given by Bangladesh Bank
the case of capital from time to time. The main features of the capital instruments
instruments eligible for are as follows:
inclusion in Tier 1 or Tier 2. Tire 1 capital instruments
i) Paid-up share capital: Issued, subscribed and fully paid up
share capital of the bank. It represents paid-up capital, right
shares as well as bonus shares issued from time to time.

ii) Statutory reserve: As per Section 24(1) of the Bank


Companies Act, 1991, an amount equivalent to 20% of the profit
before taxes for each year of the bank has been transferred to the
statutory reserve fund.

iii) Minority interest in subsidiaries:The portion of the equity


interest of the subsidiaries not owned by the parent company.

iv) General reserve: Any reserve created from profit and loss
account for fulfilling future purposes.

v) Retained earnings: Amount of profit retained with the


banking company after meeting up all expenses, provisions and
appropriations.

Annual Report 2014 34


Tire 2 capital instruments:

i) General provision maintained against unclassified loans


and off-balance sheet exposures: As per BB directive, amount
of provision maintained against unclassified loans and
off-balance sheet exposures as of the reporting date has been
considered.

ii) Assets revaluation reserves: As per Bangladesh Bank's


instruction, 50% of incremental value from the revaluation of
Bank's assets has been considered.

iii) Revaluation reserve of HTM securities: As per Bangladesh


Bank's instruction, up to 50% of revaluation reserve of HTM
securities has been considered.

iv) Revaluation reserve of HFT securities: As per Bangladesh


Bank's instruction, up to 50% of other reserve (revaluation
reserves of HFT securities) has been considered.
Quantitative (b) The amount of Tier 1 capital, with separate disclosure of :
disclosures Solo Consolidated
Position Position
Paid up capital 802.92 802.92
Non-repayable share premium account - -
Statutory reserve 478.35 478.35
General reserve 1.02 1.02
Retained earnings 104.22 104.67
Minority interest in subsidiaries - -
Non-cumulative irredeemable preference share - -
(c) Dividend equalization account - -
(d) The total amount of Tier 2 and Tier 3 capital 131.26 131.26
(e) Other deductions from capital - -
Total eligible capital 1,517.77 1518.22
(3) Capital Adequacy

Qualitative (a) A summary discussion of the The Bank has adopted standardized approach for computation of
disclosures bank's approach to capital charge for credit risk and market risk and Basic Indicator
assessing the adequacy of Approach (BIA) for operational risk.
its capital to support current
and future activities. The Bank has maintained capital adequacy ratio on the basis of
"Consolidated" and "Solo" are 13.28% and 13.47% respectively
as against the total regulatory requirement of 10%. Tier-I capital
adequacy ratio for " Consolidated" and "Solo" was 12.13% and
12.31% against the minimum regulatory requirement of 5% .
The Bank's policy is to manage and maintain its capital with the
objective of maintaining strong capital ratio and high rating. The
Bank maintains capital levels that are sufficient to absorb all
materials risk. The Bank also ensure that the capital levels
comply with regulatory requirements and satisfy the external
rating agencies and other stakeholders including depositors. The
whole objective of the capital management process in the Bank
is to ensure that the Bank remains adequately capitalized at all
times.

Annual Report 2014 35


Quantitative Solo Consolidated
disclosures Position Position
(b) Capital requirement for credit risk 9,736.07 9,813.47
(C) Capital requirement for market risk 519.00 525.81
(d) Capital requirement for operational risk 1,012.14 1,095.90
(e) Total and Tier 1 capital ratio :
Total Capital Adequacy Ratio 13.47% 13.28%
Tier-I Capital Adequacy Ratio 12.31% 12.13%
(4) Credit Risk

Qualitative (a) The general qualitative disclosure requirement with respect to credit risk, including:
Disclosures
i) Definition of past due and The Bank follows Bangladesh Bank circulars and guidelines
impaired (for accounting relating to classification and provisioning to define past due
purposes) impairment. Following table summarized the objective criteria
for loan classification and provisioning as stipulated by the
Central Bank vide BRPD circular no. 14 dated 23 September
2012, (Amendment BRPD Circular no. 16, dated November
18,2014:
Loan classification
Types of SMA Sub-standard Doubtful Bad & Loss
facility
Over due Provision Over due Provision Over due Provision Over due Provision
Period (%) Period (%) Period (%) Period (%)
Continuous 60 days or 5% 3 Months or 20% 6 Months or 50% 9 months 100%
Loan more more but less more but less or more
than 6 months than 9 months
Demand 60 days or 5% 3 Months or 20% 6 Months or 50% 9 months 100%
Loan more more but less more but less or more
than 6 months than 9 months
Fixed term 60 days or 5% 3 Months or 20% 6 Months or 50% 9 months 100%
loan more more more but less more but less or more
han Tk.1.00 than 6 months than 9 months
million
Fixed term 60 days or 5% 6 Months or 20% 9 Months or 50% 12 months 100%
loan up to more more but less more but less or more
Tk.1.00 than 9 months than 12 months
million
Short-term 90 days or 2.50% 12 Months or 5% 36 Months or 5% 60 months 100%
Agricultural more more but less more but less or more
and Micro than 36 months than 60 months
Credit

ii) Description of approaches Bank maintains specific provision for classified loans and
followed for specific and advances and general provision on unclassified loans and
general allowances and advances are measured following Bangladesh Bank prescribed
statistical methods: provisioning rates are mentioned below:
General provision: Rate

Unclassified general loans and advances 1%


Unclassified loans to small and medium enterprises 0.25%
Loans to brokerage houses, merchant banks, stock
dealers against shares etc. 2%
Unclassified loans for housing finance and on loans
for professionals 2%
Unclassified consumer financing other than housing
finance and loans for professionals 5%
Short term agri credit and micro credit 2.5%
Special Mention Account 0.25%-5%
Off-balance sheet exposures 1%

Annual Report 2014 36


Specific provision: Rate
Sub-standard loans and advances other than short
term agri credit and micro credit 20%
Doubtful loans and advances other than short term
agri credit and micro credit 50%
Bad/Loss loans and advances 100%
Sub-standard short term agri credit and micro credit 5%
Doubtful loans and advances short term agri
credit and micro credit 5%
iii) Discussion of the Bank's The Board approved the credit policy with due consideration of
credit risk management Bangladesh Bank guidelines to ensure best practice in credit risk
policy management and maintain quality of assets as well. Authorities are
properly delegated ensuring check and balance at every stage to credit
operation i,e screening , assessing risk, identification, management
and mitigation of credit risk as well as monitoring, supervision and
recovery of loans with provision for early warning system. There is a
separate credit risk management division for dedicated credit risk
management, separate credit administration division for ensuring
perfection of collateral and credit monitoring and recovery division for
monitoring and recovery of past due loans. Internal control &
compliance division independently assess quality of loans and
compliance status of loans at least once in a year . Adequate provision
is maintained against classified loans as per Bangladesh Bank
guidelines . Status of loans are regularly reported to the Board
/Executive Committee of the Board.
Quantitative Total gross credit risk Major types of credit exposure as disclosed in the audited financial
Disclosures exposures broken down by statements as on 31 December 2014 are as under:
major types of credit exposure Consolidated
Bank Position
Position
9,092.08 9,376.65
Overdraft 1,685.66 1,685.66
Cash credit 1,614.32 1,614.32
Loan-general 216.88 216.88
Transport loan 31.94 31.94
House building loan 139.57 139.57
Loan against trust receipt 1,392.64 1,392.64
Loan against imported merchandise 14.97 14.97
Loan against packing credit 13.95 13.95
Project loan 15.91 15.91
Demand Loan 19.36 19.36
Lease finance 133.28 133.28
Payment against document 50.33 50.33
Consumer finance scheme 0.06 0.06
Housing loan under B.Bank refinance scheme 2.52 2.52
Staff loan 65.78 65.78
Small Business loan 78.65 78.65
House renovation loan 1.44 1.44
Personal loan scheme 0.93 0.93
Term loan (small, medium & large) 1,835.01 1,835.01
Time Loan 617.17 617.17
Agri credit 139.23 139.23
Festival loan 4.36 4.36
Special housing loan 105.73 105.73
Credit card 47.43 47.43
Forced loan 187.66 187.66
Short term loan 442.77 442.77
Bill purchased & discounted 218.13 218.13
Capital market exposure - 284.57
Other loans 16.40 16.40

Annual Report 2014 37


Quantitative (b) Total gross credit risk Major types of credit exposure as disclosed in the audited
Disclosures exposures broken down by financial statements as on 31 December 2014 are as under:
major types of credit Consolidated
Bank Position
exposure Position
9,092.08 9,376.65
Overdraft 1,685.66 1,685.66
Cash credit 1,614.32 1,614.32
Loan-general 216.88 216.88
Transport loan 31.94 31.94
House building loan 139.57 139.57
Loan against trust receipt 1,392.64 1,392.64
Loan against imported merchandise 14.97 14.97
Loan against packing credit 13.95 13.95
Project loan 15.91 15.91
Demand Loan 19.36 19.36
Lease finance 133.28 133.28
Payment against document 50.33 50.33
Consumer finance scheme 0.06 0.06
Housing loan under B.Bank refinance scheme 2.52 2.52
Staff loan 65.78 65.78
Small Business loan 78.65 78.65
House renovation loan 1.44 1.44
Personal loan scheme 0.93 0.93
Term loan (small, medium & large) 1,835.01 1,835.01
Time Loan 617.17 617.17
Agri credit 139.23 139.23
Festival loan 4.36 4.36
Special housing loan 105.73 105.73
Credit card 47.43 47.43
Forced loan 187.66 187.66
Short term loan 442.77 442.77
Bill purchased & discounted 218.13 218.13
Capital market exposure - 284.57
Other loans 16.40 16.40
(c) Geographical distribution of Geographical distribution of credit exposures as per the
exposures, broken down in disclosure in the audited financial statements as of 31
significant areas by major December, 2014 are as follows:
types of credit exposure Consolidated
Bank Position
Position
9,092.08 9,376.65
Urban 8,494.17 8,778.74

Dhaka Division 5,477.21 5,761.78


Chittagong Division 2,525.57 2,525.57
Rajshahi Division 110.57 110.57
Sylhet Division 64.08 64.08
Khulna Division 223.50 223.50
Rangpur Division 73.33 73.33
Barisal Division 19.91 19.91

Rural 597.90 597.90


Dhaka Divisio 174.36 174.36
Chittagong Division 288.74 288.74
Rajshahi Division 14.12 14.12
Sylhet Division 62.28 62.28
Khulna Division 8.96 8.96
Rangpur Division 49.45 49.45
Barisal Division - -

Annual Report 2014 38


Quantitative (d) Industry or Industry or counterparty types distribution of exposures as disclosed in the
Disclosures counterparty types audited financial statements as on 31 December, 2014 are as under:
distribution of Consolidated
Bank Position
exposures broken Position
down by major types I) Advances to allied concerns of
of credit exposure Directors of the Bank 13.58 13.58
II) Advances to Chief Executive and
other Senior executives of the Bank 2.12 2.12
III) Advances to customers' group-wise clients - -
a) Agriculture loans 131.17 131.17
b) Export financing 458.43 458.43
c) Import financing 1,896.61 1,896.61
d) Transport and communication 96.01 96.01
a) Commercial lending 1,537.09 1,537.09
c) House building loan 495.09 495.09
f) Special program loan - -
g) Staff loans other than chief executive and
other senior executives 65.78 65.78
i) Others including bills purchased and discount 1,224.87 1,509.44

IV) Industrial loans 3,171.33 3,171.33


(e) Residual contractual Residual contractual maturity of exposures as per the disclosures furnished
maturity of the in the audited financial statements as of December 31, 2014 are as follows :
whole portfolio
broken down by Bank Position Consolidated
major types of credit Position
exposure 9,092.08 9,376.65
Payable
On demand 207.02 491.59
Up to one month 1,344.04 1,344.04
Over one month but not more than three months 1,953.64 1,953.64
Over three months but less than one year 2,678.12 2,678.12
Over one year but less than five years 1,781.64 1,781.64
Above five years 1,127.61 1,127.61
(f) By major industry or Amount of impaired loans and if available, past due loans, provided
counterparty type : separately
Bank Position Consolidated
Position
673.55 673.55
Sub-standard 44.27 44.27
Doubtful 67.82 67.82
Bad/loss 561.46 561.46
* Specific and general provisions:
Provision on classified loans and advances 270.52 285.88
Provision on unclassified loans and advances 72.12 72.12
Provision on off-balance sheet items 34.52 34.52
Provision for Off-shore banking unit 0.37 0.37
Provision on investment fluctuation in shares 49.53 49.53
Provision for other assets 2.35 2.35
Total 429.41 444.77
* Charges for specific allowances and
charge-offs during the year
Provision on classified loans and advances 103.99 104.99
Provision on unclassified loans and advances 5.31 5.31
Provision for Off-shore banking unit 0.35 0.35
Provision on off-balance sheet items 7.06 7.06
Provision on investment fluctuation in shares 5.42 5.42
Provision for other assets - -
Total 122.13 123.13

Annual Report 2014 39


(g) Gross Non Bank Position Consolidated
Position
performing Assets
(NPAs) 673.55 673.55
* Non performing Assets ( NPAs) to Outstanding
Loans & advances 7.49% 7.49%
Movement of Non Performing Assets ( NPAs)

Opening balance 486.53 486.53


Additions 418.31 418.31
Reductions 231.29 231.29
Closing balance 673.55 673.55
Movement of specific provisions for NPAs
Opening balance 266.34 282.22
Provisions made during the period 103.99 104.99
Write-off during the year (101.00) (101.00)
Write-back of excess provisions 1.19 1.19
Closing balance 270.52 287.39

(5) Equities : Disclosures for Banking Book Positions

Qualitative (a) The general Differentiation between holdings on which capital gains are expected and
disclosures qualitative disclosure those taken under other objectives including for relationship and strategic reasons
requirement with ; and investment in equity securities are broadly categorized into two parts:
respect to the equity i) Quoted securities that are traded in the secondary market.
risk:
ii) Unquoted securities are categorized as banking book equity exposures
which are further sub-divided into two groups: unquoted securities which are
invested without any expectation that these will be quoted in near future i.e.
held to maturity (HTM), and securities those are acquired under private
placement or IPO and are going to be traded in the secondary market after
completing required formalities. Unquoted securities are valued at cost.
Discussion of important policies covering the valuation and accounting of
equity holding in the banking book. This includes the accounting techniques
and valuation methodologies used, including key assumptions and practices
affecting valuation as well as significant changes in these practices.
The primary aim is to investment in these equity securities for the purpose of
capital gain by selling them in future or held for dividend income. Dividends
received from these equity securities are accounted for when bank's right to
get the dividend is established. Both quoted and unquoted equity securities
are valued at cost or market value whichever is lower and necessary
provisions are maintained if the prices fall below the cost price.
Quantitative (a) Value disclosed in
disclosures the balance sheet of
investments, as well
as the fair value of Bank Position Consolidated Position
those investments ; At cost At market Value At cost At market Value
for quoted securities
,a comparison to Quoted shares 164.00 115.22 164.95 116.19
publicly quoted Unquoted shares 4.82 4.08 6.76 6.02
share values where
the share price is
materially different
from fair value .
Quantitative (c) The cumulative
disclosures realized gain ( Bank Position Consolidated Position
losses) arising from
sales and 3.91 3.92
liquidations in the
reporting period .

Annual Report 2014 40


Bank Position Consolidated Position
Total unrealized gains ( losses) - -
Total latent revaluation gains (losses) - -
Any amounts of the above included
in Tier 2 Capital - -
(e) Capital requirements a) Specific risk- market value of 11.55 11.65
broken down by investment in equities Tk 115.58 crore
appropriate equity capital charge at 10% result amount Tk
groupings , 11.55 crore of capital charge.
consistent with the
bank's
methodology, as b) General market risk- market value of 11.55 11.65
well as the investment in equities Tk 115.58 crore
aggregate amounts capital charge at 10% result amount Tk
and the type of 11.55 crore of capital charge.
equity investments
subject to any
supervisory
provisions regarding
regulatory capital
requirements.

(6) Interest Rate Risk in the Banking Book (IRRBB)


Qualitative (a) The general Interest rate risk in the banking book arises from mismatches between the future
disclosures quantitative yield of an assets and their funding cost. The Bank assess interest rate risk in
disclosure earning perspective which is traditional approach to interest rate risk assessment
requirement and obtained by measuring the changes in the Net Interest Income (NII) on Net
including the Interest Margin (NIM) i.e. the difference between total interest income and the total
nature of IRRBB interest expenses. Assets Liability Committee (ALCO) monitors the interest rate
and key movement on a regular basis. Duration Gap analysis is one of the technique by
assumptions, which NCCBL measures interest rate risk in the banking book on a quarterly basis.
including Duration is the measure of a portfolio's price sensitivity to changes in interest rates.
assumptions
regarding loan
repayments and
behavior of
non-maturity
deposits, and
frequency of
IRRBB
measurement.
(b) The increase
/(decline) in
earnings or Interest Rate Risk-Increase Minor Level Moderate Major
economic value ( in Interest Rate of Shock Level of Level
or relevant Shock of Shock
measure used by
management) for Change in interest rate 1.00% 2.00% 3.00%
upward and Weighted average yield on assets (%) 12.50% 12.50% 12.50%
downward rate
shocks according
Total assets ( market value) 13194.45 13194.45 13194.45
to management's Duration GAP (year) 0.51 0.51 0.51
method for Fall in MVE (on-balance sheet) 59.24 118.47 177.71
measuring Revised capital 1451.93 1392.70 1333.46
IRRBB, Broken Revised RWA 10861.08 10861.08 10861.08
down by Revised CAR (%) 13.37% 12.82% 12.28%
currency (as
relevant).

Annual Report 2014 41


(7) Market Risk
Qualitative (a) i) Views of BOD on The Board approved all policies related to market risk, sets limits and reviews compliance
disclosures trading/investment on a regular basis. The object is to provide cost effective funding to finance asset growth
activities and trade related transactions.
ii) Method used to Standardized approach has been used to measure market risk. The total capital
measure market requirement in respect of market risk is the aggregate capital requirement calculated for
risk each of the risk sub-categories. For each risk category minimum capital requirement is
measured in terms of two separately calculated capital charges for "Specific Risk" and
"General Market Risk".
iii) Market risk The Treasury Division manages market risk covering liquidity, interest rate and foreign
management exchange risk with oversight from Assets Liability Management Committee (ALCO)
system comprising senior executives of the Bank. ALCO is chaired by the Managing Director.
ALCO meets at least once in a month.
iv) Policies and There are approved limits for credit deposit Ratio, liquid assets to total assets ratio,
processes for maturity mismatch, commitments for both on-balance sheet and off-balance sheet items
mitigating market and borrowing from money market and forex position. The limits are monitored and
risk enforced on a regular basis to protect against market risk. The exchange rate committee of
the Bank meets on a daily basis to review the prevailing market condition, exchange rate,
forex position and transactions to mitigate foreign exchange risks.
Quantitative (b) The capital
Bank Position Consolidated Position
disclosures requirement for:
Interest rate risk 9.41 9.41
Equity position risk 23.10 23.30
Foreign exchange risk 19.39 19.87
Commodity risk - -

(8) Operational Risk


Qualitative (a) i) Views of BOD on The policy for operational risks including internal control & compliance risk is approved by
disclosures system to reduce Board taking into account revenant guidelines of Bangladesh Bank. Audit Committee of the
Operational Risk Board directly oversee the activities of internal control & Compliance Division (ICCD) for
managing operational risk.
ii) Performance NCCBL has policy to provide competitive package and best working environment to attract
gap of executives and retain the most talented people available in the industry. NCCBL's strong brand image
and staffs plays an important role in employees motivation . As a result, there is no significant
performance gap.
iii) Potential
No potential external events is expected to expose the Bank to significant operational risk.
external events
iv) Policies and The policy for operational risks including internal control & compliance risk is approved by
processes for Board taking into account relevant guidelines of Bangladesh Bank. The Bank developed a
mitigating Risk Management Unit and supervisory review Committee for review and managing
operational risk operation risk as well as evaluating of the adequacy of the capital . Operational risk may
arise from error and fraud due to lack of proper internal control and compliance.
Management through internal control and compliance division controls operational
procedure of the Bank. The ICC then submit their report to the Board Audit Committee
(BAC). The BAC reviews the reports, appraise the internal controls failure and take proper
step to improve/develop internal control mechanism as well.

v) Approach for The Bank follows Basic Indicator Approach (BIA) for measuring capital charges for
calculating capital operational risk. Under the Basic Indicator Approach (BIA), the capital charge for
charge for operational risk is a fixed percentage (denoted by alpha) of average positive annual gross
operational risk income of the Bank over the past three years.

Quantitative (b) Bank Position Consolidated Position


Disclosures
The Capital Requirement for Operational Risk 101.21 109.59

Annual Report 2014 42


NCC Bank & Green Banking ice on rivers and lakes in Arctic region are breaking up
earlier, plant and animal ranges have shifted and trees are
An Ethical & Socially Responsible Banking flowering sooner. Scientists have high confidence that
Responsible and sustainable banking refers to a concept of global temperatures will continue to rise largely due to
operating banking activities in such a manner that ensures greenhouse gasses produced by human unethical &
the participation of all the members of the society through excessive activities. The Intergovernmental Panel on
financial inclusion as well as the safety and security of the Climate Change (IPCC), which includes more than 1,300
elements of environment i.e. saving soil, air and water from scientists from the United States and other countries,
degradation and saving the society. Sustainability is the forecasts a temperature rise of 2.5 to 10 degrees
key to sustainable development and works as catalyst in Fahrenheit over the next century. The IPCC estimates that
poverty alleviation and climate change mitigation. melting ice caps and glacierswhich are some of our
Sustainable Energy encompasses both Renewable energy most visible indicators of climate changeaccounted for
and energy efficiency interventions. At present days, the about 25% of sea level rise from 1993 to 2003. Hot, dry
world has grown not in size, but in population, which conditions create a tinderbox ideal for wildfires. A warming
continuously is dragging the earth towards danger. planet threatens people worldwide, causing deaths,
Simultaneously, the world has been trying to recover the spreading insect-borne diseases and exacerbating
damage that has already been done to it. Like all the other respiratory illnesses. Extreme weather will also put more
countries of the world, Bangladesh has also extended its people in harm's way. Besides all these, events like Spread
hands towards the betterment of environment. of diseases, Shifting habitat, Acidifying oceans, Threats to
forests, Sea level rise, more intense hurricanes, increasing
In this context, Bangladesh Bank has opened a separate flood and draughts, worsening air quality etc. will make our
department named Green Banking and CSR Department in planet hard to live. The IPCC predicts that increases in
2013 to monitor all the green banking activities and also global mean temperature of less than 1.8 to 5.4 degrees
the financial inclusion process. Fahrenheit (1 to 3 degrees Celsius) above 1990 levels will
National Credit and Commerce Bank Ltd. is one of the produce beneficial impacts in some regions and harmful
leading private commercial banks in Bangladesh. It has ones in others. Net annual costs will increase over time as
been serving the nation since 21 years with the apex of global temperatures increase. According to the IPCC, the
sincerity and dedication. NCC Bank Ltd. focuses not only to extent of climate change effects on individual regions will
maximize its business and profit, but off course in an vary over time and with the ability of different societal and
ethical and socially responsible manner. environmental systems to mitigate or adapt to change.
Climate Change & its affects: In order to save environment/ nature & to make our
Global climate change has already had observable effects society/ nature sustainable, we have to act in an ethical
on the environment. Glaciers in mountains have shrunk, responsible manner as under:

To make our branch as Green one What we are doing daily to become sustainable Green Finance Incorporation of ERM in CRM

I. Provision for maximum use I. Take advantage of natural light Bangladesh Bank, vide their Bangladesh Bank, vide their BRPD
of natural light, whenever possible. GBCSRD Circular no. 02, dt. Circular no. 02, dt. 27.02.2011,
II. Use of renewable energy (Solar), II. Turn off the lights every time 01.07.2013, GBCSRD Circular Letter titled Policy Guidelines for Green
III. Use of energy saving bulbs whenever we leave a room. No. 01, dt. 20.05.2014 and GBCSRD Banking, advised all the
and other equipments, III. Switch off our PC system whenever Circular Letter No. 02, dt. scheduled banks to incorporate
IV. Reduced use of water and we plan to be away from our desk 18.08.2014 had introduced 47 green Environmental risk Management
electricity, for an extended period of time. products under different sectors like (ERM) in the proposals of credit
V. Use of recycled water etc. IV) Ensure the printer has toner/ink Solar System, Renewable Energy, facilities above the threshold level.
VI. Using printers, photocopiers saving modes. Draft or Eco mode Bio-Gas, ETP, Vermi-compost, PET All the branches of NCC Bank Ltd.
etc. with both side printing options saves ink and reduce Carbon. & Solar Battery Recycling Plant, should assess all environmental
ability etc. V) Use e-mail, intra-mail etc. for Hydroelectricity, Fuel Efficient risk factors associated with the
VII. Efficient Lighting System. communication purpose to save Technology, Non Fire Block Brick existing projects/ future projects/
paper and time. Project, Environment Friendly Brick new projects.
VI) Adopt recycled materials in our branch. Kilns etc.
VII) Sharing the office stationeries in Branches used to assess EnvRR
the office. Later, Bangladesh Bank, GBCSRD for those industries complying
VIII) Using both sides of the papers for Circular No. 04, dt. 04.09.2014, Bangladesh Bank Guidelines.
printing, note taking and rough purpose. advised all the scheduled banks to
IX) Inspire people to act in an finance at least 5% of total funded
environment friendly manner. loan as Green Finance, i.e. our target
X) Follow the Banks Green Office of green financing is 5% of total
Guide that has already been advance and we advised branches
communicated to employees vide achieve the target of green finance of
intra-mail dt.10.12.2014 i.e. 5% of total advance of that branch.

Annual Report 2014 44


Banks billboards on highways

Information related to environmental issues: iii. Some Green Features of NCC Bank Bhaban: The NCC
All the information regarding Green Banking or Sustainable Bank Bhaban bears several green features such as, scope of
Banking are available in the Head Office server (address: maximum use of daylights, solar panels, automatic stopping
\\192.168.254.1\IT Folder\Green_Banking_Soft Copy). All water faucets, low flush toilets, energy saving lights, both
the Circulars related to Green or Sustainable Banking are side printing printers and photocopiers, energy efficient &
available in the Banks central circular archive environment friendly equipments and many more.
(http://192.168.101.20/Circulars/). Moreover, for more
information, anyone can communicate with the Green iv. Solar equipped Branches: NCC Bank Ltd. has already
Banking Unit (GBU) through intra-mail (address: inaugurated 12 Branches in different areas of the country
gbu@nccbank.com.bd) or vide 02-9512620. that run Partially by solar power. These are Uttara, Tongi,
NCC Bank Ltd., as a socially responsible financial Narshingdi, Maijdee, Madambibirhat, Juri, Rayerbazar,
institution, has taken numerous initiatives to promote Faridgonj, Mahipal , Parulia, NCC Bank Bhaban branch and
Green Banking as under: Head Office. The Marketing and Branches Division (MBD)
and Common Services Division (CSD) of our bank have
i. Green Banking Policy: NCC Bank Ltd. has already already been advised to introduce green features in the
prepared Green Banking Policy in line with the Policy branches. Moreover, all the branches of the Bank have also
Guidelines for Green Banking issued by Bangladesh Bank been advised to look for the green features at their
and formed a separate Green Banking Unit with the branches.
responsibility of designing, evaluating and administering
green banking related issues of the Bank. v. Training: NCC Bank management believes that
awareness is the main media of success of Green activities.
ii. Green Office Guide: NCC Bank Ltd. has also prepared In 2014, NCC Bank Ltd. organized various
Green Office Guide for internal use as a set of general seminars/workshop/training sessions exclusively for
instructions for the employees of the Bank. This guide Green Banking awareness. The Executives & Officers have
encourages employees of the Bank to save paper, water, also participated in various seminars/workshop/training
electricity, gas etc., reuse of equipments, using online sessions held at Bangladesh Bank and other places
communication system, adopting efficient electronic throughout the time. During year 2014, 335 employees
equipments in order to save the environment. attended 20 different training/ seminar/ workshops on
green banking issues.

Annual Report 2014 45


Dr. Atiur Rahman, Governor, Bangladesh Bank
inaugurated the event.

An event titled Green Finance for Sustainable Development


has been organized by Neostar Innovation at CIRDAP
International Conference Center, Dhaka on December 13, 2014. NCC Bank Ltd. Participated in the event as an Event Partner.

vi. Green Finance: NCC Bank Ltd. has been financing eco x. Online Banking: All of the branches of NCCBL are well
friendly business activities and energy efficient projects equipped with online facilities, BACH for clearing, BEFTN
like Bio-gas, ETP, Energy Efficient Brick Kilns and other mechanism for transferring the local currency as well as
renewable energy & environment friendly projects. NCC foreign remittance and salary disbursement etc. At present
Bank has provided Tk. 9060.90 million in 2013 & Tk. our ATM services are at door step of clients providing
8275.45 million in 2014 as green finance. 24/7/365 days non stop services.

xi. Awareness: NCC Bank Ltd. has displayed 02(Two)


vii. Utilization of Climate risk Fund: NCC Bank billboards at Mawa, Dhaka-Khulna Highway & Matuail,
participated in some environment related projects and Jatrabari in Dhaka conveying the message of Green
event in 2014 to make the awareness of the stakeholders Banking. NCC Bank Ltd. has published various posters,
as well as to build the awareness among both its existing banners, brochures to motivate the clients to plant at least
and prospective customers. A fund of TK. 0.12 millions as one plant, before setting up industry take control &
a part of CSR activities has been provided to the Baishakhi mitigation of pollution, to ensure efficient use of electricity,
Park, Banani for maintenance of the parks environment. water, paper & reuse of equipments, use energy saving
We have also been providing fund to the Sajal Square at bulbs & other eco-friendly equipments to save energy.
Green Road, Dhaka for beautification as well as to keep the
environment pollution free.

viii. Event: As part of the Banks marketing and capacity


building activities, NCC Bank Ltd. actively participates in
various green events regularly. Such events create
opportunity to share views of different stakeholders that
help us to improve our services. Recently, NCC Bank Ltd.
participated as an event partner in the event titled Green
Finance for Sustainable Development, organized by
Neostar Innovation at CIRDAP International Conference
Centre on 13.12.2014.
Solar Pannel
ix. Green Marketing: NCC Bank has launched various
products under green finance which are being marketed to xii.Assessing Environmental Risk factors in Credit
the customers of the bank such as internet banking, online approval process: Green Banking aspects had been
banking, Debit card, Credit card, ATM Booth, SMS banking, integrated in the lending guidelines of the Bank as well as
mobile banking, E-tendering to reduce consumption of in the Credit Risk Management process. At present all of
paper and energy. Our employment notices are flashed our credit proposals are assessed by considering the
through web sites and online applications are accepted. environmental risks associated with the proposed businesses.

Annual Report 2014 46


xiii. Agreement with Bangladesh Bank to avail refinance:
NCC Bank Ltd. has already signed 02 (Two) participation
agreements with Bangladesh Bank to avail refinance under
Energy Efficient and Environment Friendly Financeable
Sectors and Brick Kiln Efficiency Improvement Projects.

xiv. Financial inclusion Program: Recently, NCC Bank Ltd.


has signed another participation agreement to avail
refinance scheme for Tk.10 account holding
small/marginal/landless farmers, low income
professionals and marginal/ small businessmen who are
victim of natural calamities under financial inclusion
program and working with it to ensure our contribution in
the financial inclusion process by bringing the marginal
people of the country under the umbrella of banking
services.

xv. Disclosure: The Green Banking Unit of NCC Bank Ltd


has been reporting its green banking activities to
Bangladesh Bank, in Banks website as well as Annual
Report.

The process of Green or sustainable Banking is a


continuous one. Upholding the ideology Respect for
Nature, as one of its pertinent core values, NCC Bank Ltd.
will continue its voyage towards Responsible, ethical &
sustainable banking through its operation and financing.

Annual Report 2014 47


Credit Rating Report
Alpha Credit Rating Limited (AlphaRating) has assigned AA (Pronounced Double A) rating in the Long Term and AR-2
rating in the Short Term with Stable Outlook to NCC Bank Limited based on Audited Financial Statements of 2013.
AlphaRating also considered the management quality, subsequent period performance and other qualitative parameters in
this assignment. The rating position is furnished below in comparison with the last year:

Year
Ratings
2013 2012
Long Term AA (Very Strong Capacity) AA- (Very Strong Capacity)
Short Term AR-2 (Strong Capacity) AR-2 (Strong Capacity)
Outlook Stable Stable
Date of Rating June 30, 2014 June 30, 2013
Valid till June 29, 2015 June 29, 2014
Rating action Surveillance Initial

An institution rated AA in the long term have very strong capacity to meet its financial commitments and rated AR-2 in
the short term have strong capacity to meet its financial commitments in a timely manner. Stable Outlook indicates that the
Rating is likely to remain unchanged.

Annual Report 2014 48


Deposit Mix - 2014 Distribution of Investment Portfolio-2014

Money Double Programe 7.83%


Instant Earning Term Deposit 0.01% Money Triple Programe Investment in shares 4.49%
0.51% Prize Bond 0.02% Government treasury bills 8.05%
4.75%
Sundry Deposit & Other Accounts
Zero coupon bonds
Premium Term Deposit 0.26% & other bonds 0.51%
Special Deposit Scheme 4.17%

Special Savings Scheme 14.01%


Fixed Deposit

43.23%

Savings Deposit 12.29%

Special Notice Deposit 6.72% Current Deposit 6.22%


GRAPHICAL PRESENTATION

Government treasury bonds 86.93%

Sectoral Distribution of Advances-2014 Funded and Contingent Assets-2014

Others 11.47%
Acceptances and endorsements 10.80%
Export development fund (EDF) 0.14
Agriculture 1.43%
Industry 38.82%
House building loan 3.50% Letter of Credit 6.75%

Letter of Guarantee 5.38%


Business 16.36%

Transport and
communication 2.33%

Import financing 21.21% Export financing 4.88%

Total Advances 77.07%

Remittance (2010-2014) Total Assets (2010-2014)


Figure (in Million) Figure (in Million)

135,160
21,706

125,842

124,043
18,703

103,511
16,323
16,079

83,554
12,505

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Export (2010-2014) Import (2010-2014)


Figure (in Million) Figure (in Million)
20,981

55,044

52,614

51,308
16,126

45,283
14,549

14,354

41,245
13,347

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Annual Report 2014 49


Investment (2010-2014) Deposit & Advance (2010-2014)
Figure (in Million) Figure (in Million)

105,704
30,852

98,229
96,918

90,921
88,167
26,569

81,127

79,948
72,734
20,840

67,961
19,908

63,230
10,981

Deposit
Advance

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
GRAPHICAL PRESENTATION

Deposit (2010-2014) Loans & Advances (2010-2014)


Figure (in Million) Figure (in Million)

90,921
88,167
105,704

79,948
96,918

98,229

72,734
63,230
81,127
67,961

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Operational Profit (2010-2014) Paid-up capital (2010-2014)


Figure (in Million) Figure (in Million)

8,029
4,187

7,647
6,952
4,041

5,942
3,958

4,501
3,747
3,699

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Statutory Reserve (2010-2014) Shareholders Equity (2010-2014)


Figure (in Million) Figure (in Million)
14,350
13,270
4,784

12,136
4,283

11,331
3,818

9,357
3,269
2,543

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Annual Report 2014 50


Dividend per Share (2010-2014) Total Capital (2010-2014)

15,178
13,987
3.20

12,778
11,825
2.70

10,034
1.10
1.00

1.00
GRAPHICAL PRESENTATION

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Tier-2 Capital (2010-2014) Tier-1 Capital (2010-2014)

1,313

13,865
12,819
11,666
10,701
8,881
1,168
1,153

1,124

1,112

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Capital Adequacy Ratio (2010-2014) % of Return on Assets


2.84

16

14
13.47
2.12

12 11.87
11.26 11.47
10.91
10

8
1.14

1.16
0.91

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

% of Return on Investment (2010-2014) % of Return on Shareholders Equity (2010-2014)


25.35
14.95

18.98
13.99

11.81

10.87
8.96
11.50
9.05

11.04

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Annual Report 2014 51


Earnings per Share (2010-2014) Price Earning Ratio (2010-2014)

12.91
5.33

8.80
8.73
3.70

8.21

5.99
2.06

1.87
1.49
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
GRAPHICAL PRESENTATION

Market Value Per Share (2010-2014) Net Asset Value Per Share (2010-2014)

20.79
68.80

19.50

17.87
17.46

17.34
30.40

18.20

13.10

11.20

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

NPL Ratio (2010-2014) Interest Earning Assets (2010-2014)

112,222
112,052
7.49

108,688
94,314
5.56
5.51

74,692
2.68
2.27

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Non-interest Earning Assets (2010-2014) Profit before tax (2010-2014)


22,937

3,630
3,248

2,743
15,355

2,500
13,789

2,327
9,197
8,863

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Annual Report 2014 52


Net Profit after tax (2010-2014) Interest Income (2010-2014)

12,194

12,020
11,669
2,372

9,669
1,946

6,970
1,501
1,434

1,138
GRAPHICAL PRESENTATION

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Non-Interest Income (2010-2014) Number of Foreign Correspondents (2010-2014)


4,254

4,034
3,938

3,852

449

434
3,188

420
418

396
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Number of Branches (2010-2014) Number of Employees (2010-2014)

120
2500
100 101 103 2277
2192
93
87 2000
80 79 1811
1716
1622
60 1500

40
1000
20
500
0
2010 2011 2012 2013 2014
0
2010 2011 2012 2013 2014

Market Value Per Share (in BDT) & Operational Profit & Net Profit (2010-2014)
PE Ratio (in Times)(2010-2014) Figure (in Million)
68.80

4,187
4,041

3,958

3,699

3,747

Market Price
2,372

PE Ratio
30.40

1,946

1,501
1,434
18.20

1,138
12.91

13.10

11.20
8.21

Operational Profit
8.73

8.80

5.99

Net Profit

2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

Annual Report 2014 53


Directors Report inflation or out right deflation poses risks to activity. In
some emerging markets, especially those with domestic
weakness and external vulnerability, the effects of the
Dear Honble Shareholders, worsening of financial conditions and negative growth
could be more prolonged.
Assalamu Alaikum,
Bangladesh Economy
On behalf of the Board of Directors of NCC Bank Limited, I
am immensely pleased to welcome you all to the 30th The Bangladesh Economy could maintain the growth
Annual General Meeting of the Bank. Taking this momentum registering a 6.1% growth of GDP in FY14.
opportunity, I am pleased to present you the Annual The growth of Industry sector was lower in FY14
Report 2014 along with the Directors Report and the compared to the preceeding year partly due to political
Auditors Report together with the Audited Financial problem and uncertainty. Moderate growth of Agriculture
Statements of the company for the year ended on 31st sector along with satisfactory growth of services sector
December, 2014 for consideration, approval, and adoption contributed to achieve the present growth of the overall
by our valued Shareholders. But before going into a economy. During FY,14 the average inflation showed an
detailed discussion, it would be helpful to review the world upward trend mainly due to increase in food inflation
and local economic scenario of the year to understand the although non food inflation declined during the period. A
premise of our operational efforts. cautious but inclusive growth and investment friendly
monetary policy stance was implemented during the year.
Global Economy: Policy rates were maintained unchanged considering risks
of inflationary pressure and to support economic growth
The Global economic growth was somewhat disappointing as well.
during the year 2014 as termed by the IMF in their latest
World Economic Outlook published in October, 2014. Total domestic credit increased from 10.9% in FY13 to
Global growth in the 1st half of the year fell short from the 11.6% in FY14. Private sector credit growth was 12.3% in
expectation made earlier in April, 2014. In view of this slow FY14 which was lower than targeted growth of 16.5%
development, IMF has revised its projection for Global mainly due to sluggish credit demand, political uncertainty
economic growth for 2014 from 3.7% to 3.3%. The and stringent lending policies followed by the Banks due to
growth for 2015 was projected to 3.8%. In the advanced some scams in certain banks. On the other hand, the
countries, growth was expected at 1.8% in 2014 and rise growth of credit to the public sector declined miserably to
to 2.3% in 2015. However, in the emerging markets and 8.8% in FY14 as against the target growth of 22.9% due to
developing countries, growth was expected to be 4.4% in significantly lower government borrowing from the
2014 & 5.00% in 2015. Banking sector. Instead of borrowing from Banks, the
government collected a good amount of resources
Due to weak economic performance, practically in the USA through National Saving Certificates.
and a less promising outlook in a number of emerging
markets, the projection of global economic growth has Export continued to grow from 10.7% in FY13 to 12.00%
been downsized by IMF Growth rate of the USA and was in FY14. Trade deficit declined to USD 6806 million.
feared to remain unchanged at 2.2% in 2014 and expected Workers remittances stood lower at USD14115 million in
to rise to 3.1% in 2015. In Euro region the economic FY14 compared to the previous year registering a negative
performance was projected to be even more growth of 1.6%. Supported by a significant surplus in the
disappointing. The growth was projected at 0.8% in 2014 combined capital and financial account, the overall balance
and 1.3% in 2015.In Japan growth is likely to be affected recorded a surplus of USD 54.83 million in FY14.
by consumption tax hike and consequently growth was contributing to foreign exchange resources reaching
projected at 0.9% in 2014 & showing decline further to USD21508 million at the end of FY14. which was sufficient
0.8% in 2015. to meet our seven months of imports.

Growth in emerging markets and developing countries In order to protect Bangladeshs external competitiveness,
was projected to be modest in 2015 supported mainly by Bangladesh Bank continued its intervention
stronger domestic demand. Growth in these countries was in the domestic foreign exchange market by purchasing
projected to decline to 4.4% in 2014 from 4.7% in 2013. foreign currencies as and when deemed appropriate. As a
and then, increase to 5.0% in 2015. Growth in China was result, Taka: USD exchange rate remained stable during
projected at 7.4% in 2014 due to some targeted policy FY14.
measures to support advanced economics, protracted low

Annual Report 2014 54


The growth of agriculture sector increased to 3.4% in Credit
FY14 from 2.5% in FY13 mainly due to favorable weather
The Bank pursues its own Credit Policy formulated
condition and enhanced government support.
covering the guidelines of Bangladesh Bank as framed
from time to time. The Policy is reviewed by the Board of
Industry sector growth fell to 8.4% in FY14 from 9.6% in
Directors of the Bank on regular basis to identify priority
FY13 due to disrupted chain of supply and week domestic
sectors in the light of prevailing business scenario and if
demand resulting from political unrest.
required, necessary changes are incorporated accordingly
to create room for adjustment giving importance to
Service sector growth slightly increased to 5.8% in FY14
expectation of potential business booking. This is done to
from 5.5% in FY13. This was driven by
ensure safety of peoples money deposited with us. Our
the higher growth in education, health and social works
efforts are always directed to diversify investments and as
and public administration and defense sub
such, look for potential new sectors of lending money and
sectors.
harvest good result. At present, with a view to express
solidarity with the inclusive policy of Bangladesh Bank, we
The average inflation rate increased to 7.4% at the end of
are giving due importance in extending credit in green
FY14 from 6.8% at the end of FY13 driven
financing to preserve the nature from pollution. In 2014,
by increase in food inflation which increased from 5.2% in
total outstanding Loans and Advance were Tk.90,920.77
FY13 to 8.6% in FY14.
million. Credit Deposit Ratio (CDR) was 77% in 2014.
The prospect of the Bangladesh economy over the near Credit Administration:
and medium terms are expected to be reasonably good.
In order to ensure close control on both pre and post
The strong domestic demand base. gradually improving
disbursement supervision and effective monitoring, we
investment climate, decreasing uncertainty and reduced
have empowered Credit Administration Division at Head
inflation is expected to pick up between 6.2 to 6.5% in
Office with the authority to hold any sanctioned loan for
FY15 keeping inflation at a reasonable level provided that
lack of compliance of the terms, stipulated in the sanction
macroeconomic policies must continue to support
advice and inspect on site authenticity of documentation
sustainable expansion in agriculture and Industry together
and value of collateral securities. It has been ensured to
with large investment and infrastructure while striving to
assigned people with adequate experience and knowledge
enhance government revenue collection.
to discharge this important task. The performance of this
Division reflected expected result in recent times. A good
Performance of the Bank
number of large loans have been regularized in terms of
documentation, securities etc. The Division is also
During the year ended on 31.12.2014, the Bank
assigned to identify slow moving credit portfolios to alert
performed well in terms of Profit, Deposits and Loans and
Banks Recovery Division to initiate actions as deemed
Advances etc. Total Deposits, Loans and Advances and
proper to safe guard the Banks fund from becoming stuck
Profit of the Bank at the end of the year stood at
up/non performing.
Tk.105,703.61, Tk.90,920.77 & Tk.3,746.00 million
respectively. Foreign Exchange Business:

Capital and Statutory Reserve Foreign Exchange business is one of the important means
of income of the Bank contributing remarkably to its profit.
The Authorized Capital of the Bank stood at Tk.10,000 It has been our priority to see that such operations get due
million as on 31.12.2014 and Paid up Capital was care round the year. By putting right people at the right
Tk.8,029.25 million on 31.12.2014. Statutory Reserve was place, this has been ensured. By providing adequate and
Tk.4,783.51 million as on same date. proper service, the Bank could earn good amount of
income from the sector. During the year 2014, the Bank
Deposits : handled Exports and Imports business to the tune of
Tk.14,354.29 million and Tk.51,308.43 million
At the end of the year under consideration, Deposits of the respectively. The number of Banks Authorized Dealer (AD)
Bank stood at Tk.105,703.61 million recording 7.61% branches were 22 in 2014.
increase over the figure of the proceeding year which was
The Bank has a correspondent network of more than 396
Tk.98,229.41 million. Deposit mix is shown in the chart
offices of Foreign Banks World wide. For trade
appended below:
settlements, remittance business and OBU operations, the
Bank maintains 26 Nostro Accounts in all major
currencies of the World.

Annual Report 2014 55


Our Financial Institution Department at International The total inflow of inward remittance of NCC Bank in year
Division has made correspondent banking arrangements 2014 was USD 250.14 Million, a 20% growth over the
with some reputed International Banks over the world for previous year:
facilitating issuance of Demand Draft, Fund transfer and
other banking operations. FOREIGN REMITTANCE (2010 -2014)
Figure in Million

$271.38
Remittance Business

$250.10
$224.51

$216.02
The economic growth of the country largely depends on

$190.22
inflow of foreign exchange to keep import activities afloat.
Home bound remittance sent by the expatriate
Bangladeshis earned by their hard work is happened to be
one of the main ways of such inflow for quite few years. In
years back the Bangladeshis residing abroad were
compelled to remit their money to their nearest ones
through non banking channels like Hundi etc. In order to
bring this huge inflow of foreign remittance through
2010 2011 2012 2013 2014
banking channel, arrangements have been made by the
Banks with various money transfer enterprises abroad.
Card Business:
Foreign Remittance inflow to Bangladesh has shown Since introduction of Credit Card in 2005, NCCB Cards are
remarkable resilience, not only during but also after the becoming popular day by day because of using the most
global crisis. NCC Bank offers innovative products for advanced and comprehensive card management system.
NRBs and is playing significant role in strengthening It has been satisfying its valuable customers through this
national economy by channeling homebound remittances. great financial tool with utmost efficiency and customer
NCC Bank has become one of the pioneers in remittance satisfaction. NCCB Card has relationship with many
service in home and abroad through its innovative & prominent corporate houses and our customers can avail
dedicated services with modern technology, nationwide discount facilities from them. Now NCCB Card is considered
network ensuring customer satisfaction. The Bank has as the symbol of elegance, luxury and convenience.
representatives and correspondents in most of the Keeping utmost attention to create the benefits that
remittance sending countries and also has arrangements customer desire NCCB offers a wide range of card
with 31 Money Transfer Companies (MTO) having network products such as:
all over the World.
Multi Currency Cards:
NCC Bank is successfully maintaining relationship with Visa Dual Gold Credit Card
one NGO (TMSS), one Specialized Bank (AVUB) and other Visa Virtual Card (Pre-paid card)
seven sub-agent commercial banks to facilitate the foreign Local Currency Cards:
remittance service at remotest corner of the country with Visa Local Gold Credit Card
more than 1,400 locations. It has introduced centralized Visa Local Classic Credit Card
automated system RMS (Remittance Management Visa Local Gold Debit Card
System) to facilitate prompt, errorless and secure service Proprietary Debit Card
to the beneficiaries of foreign remittance. The automated
operation of Bangladesh Electronic Fund Transfer (BEFTN) Our Visa Credit cards are accepted in all Visa branded
has further enhanced the service level to new heights. We merchant outlets round the world. In addition, NCCB cards
are the first super-agent in Bangladesh of two worlds also provide instant cash withdrawal facility through
renowned MTOs namely MoneyGram International and branch POS, auto debit payment instruction, balance
International Money Express (IME) which evidenced our transfer facilities, reward program, instant SMS alert
efforts and contribution to this sector. We expect to service for all transaction & monthly statement, 24 x 7
appoint more commercial banks as sub-agent of the Bank support service, E-Statement Service and many more.
in 2015 for the foreign remittance payment of IME. Because of free accessibility and fast transaction approval
process, reputation of NCC Visa card is growing swiftly in
In the year 2014, we have extended our services in the card industry.
Australia by signing agreement with Fast Remit Exchange Furthermore, NCC Bank is going to launch most attractive
House. NCC Bank is the first and only Bank in Bangladesh new product Visa Platinum Card with EMV chip
to channelize foreign remittance from Japan in banking technology. All existing cards would to be converted to
channel through Japan Remit Finance. EMV chip card within this year.

Annual Report 2014 56


Subsequently, NCC Card will introduce Two Factor and deals with all types of existing money market
Authentication (2FA) system that will ensure risk free products, i.e. Call money, Term Placement and borrowing,
online/internet transactions to the cardholders by Repo, Reverse Repo, Assured Liquidity Support, Special
imposing an additional level of security process for card Repo etc. with the Central Bank and inter-bank, mostly on
authentication. It will shield our customers from ever overnight basis. Besides, USD/BDT Swap is considered as
increasing fraudulent transactions and as a result will a very popular money market derivative and Money Market
reduce fraud loses for our bank and customer both. desk actively participates in Swap transactions in order to
manage liquidity positions.
The prospect of NCC Bank card is highly prosperous and it
will continue to uphold the prestigious image of our Asset Liability Management Desk: Treasury is the driving
esteemed bank. force of Asset Liability Management Committee (ALCO).
The main functions of Asset Liability Committee are
Treasury :
concentrated on setting up and execution strategies for
As on 31-12-2014, our Banks total investment was effective Asset- Liability Management by monitoring
BDT.26,568.66 million recording 33.46% increase over the various balance sheet gaps considering risk limit. It takes
previous years figure of BDT.19,908.32 million. Among various decisions regarding interest rate, structure of
others, investment in Government Treasury Bond helps deposits, loan pricing, credit deposit ratio, contingency
maintaining liquidity requirements as well as yields good funding plan, Structural Liquidity Profile, liquidity
earnings for the Bank. Further, Banks Primary Dealership in coverage ratio (LCR), and transfer pricing mechanism for
Treasury Bills also helps to operate in the Money Market internal funding and investment.
effectively.
Primary Dealer (PD) operation and Fixed Income Desk:
The main function of Treasury Division of any financial As a member of Primary Dealer of Government Securities,
institutions i.e. Banks is concentrated on efficient and our Bank has to participate all types of Primary Auctions.
prudent fund management, considering all types of related Treasury Division is solely responsible to participate in the
risks. To comply with the countrys monetary and fiscal Primary Auction on behalf of the Bank. Bangladesh Bank
policies, Treasury Division is driven to manage overall initiated different steps to develop the secondary markets
liquidity of the Bank by ensuring maximization of profit of Government Treasury Bills/Bonds But the demand for
and fulfilling all regulatory requirements such as CRR, Treasury Bonds in capital market was almost non-vibrant
SLR & Net Open Position(NOP). In line with the global due to lack of promotional activities in this regard. In spite
standard, Banks Treasury Division is fully equipped with of difficulties, Banks NCCBL Treasury has continuously
all up-to-date facilities. Our Dealing Room is equipped been trying to develop the bond market through trading of
with all modern facilities, i.e. Reuters, On-line dealing Treasury Bills and Bonds in the secondary markets and
system, Dedicated Internet Connectivity, Voice Recorder, received award as one of the best Primary Dealer Banks
Financial TV Channel, Entry restricted door, etc. from Bangladesh Bank, for the quarter April- June 2014.
As an active member of BAFEDA, PDBL and BAMDA our
Off-Shore Banking Unit: Our Bank has obtained
Treasury actively participates in the inter-bank foreign
permission from Bangladesh Bank for OBU operation at
exchange as well as money market activities in view of
02(Two) Branches of our Bank in 2010.Thereafter, we have
creating scope for short term and long term investment.
started our journey to funding in OBU operation in small scale
The Division works as a full-fledged Team with the efforts
in 2013. In 2014, we have increased the volume of funding
of highly dedicated manpower. The Treasury Division
commitment to OBU through one Branch i.e. our Foreign
works with four specific desks along with Off-Shore
Exchange Branch. In spite of having funding constraint from
Banking Unit(OBU) related to managing fund and
mitigating liquidity risks. These desks are : our own source, we have already funded about USD 6.32
million from our own source and through borrowing foreign
Foreign Exchange Desk: Foreign Exchange desk plays an currency from the local commercial Banks.
important role meeting up funding requirement of the
customers, managing export proceeds and procuring Operational Result
remittance by offering most competitive rate to the As on 31st December, 2014 Banks Operational Profit was
remittance houses. Besides, Foreign Exchange desk deals Tk.3,746.00 million as against Tk. 3,698.81 million of
with different foreign exchange derivatives mainly previous year. Return on Assets was (ROA) 1.16 %.
USD/BDT Spot, Swaps, Forward Transactions in inter-bank
markets and cross currency dealings (mostly customer Human Resources Management
driven transactions) with foreign counterparts abroad. For balanced and sustainable growth of any financial
Money Market Desk: The Money Market Desk of the institutions like Banks, a skilled and motivated work force
Division regularly participates in the inter-bank market is vital. Such a team would work with a zealous attitude to

Annual Report 2014 57


achieve organizational goals both in short and long run. internal control. The findings of the unit are placed before
But to develop skill level, it is required to impart adequate the Audit Committee of the Board as per regulatory
need based updated training on banking issues related to requirements and also as decided by the Board of
various sections of economical activities. The authority of Directors of the Bank. The said Committee examined the
the Bank has the required means to ensure this. Its same prudently and according to their guidelines,
Training Institute is arranging different training corrective and punitive actions are taken. There is a
programmes, workshops, seminars, etc round the year to Special Vigilance Officer of the MD & CEO, assigned with
cope with the need of the day. Other motivational steps are the special jobs of inspecting urgent issues who directly
also being taken to this effect. reports to the Chief Executive Officer of the Bank.
Banks Training Institute has arranged a total no 61 training Information Technology
programmes, workshop, etc. on related issues in 2014
where 2126 no of executives/officers have attended to Under active supervision of a skilled and able team, the
acquire updated knowledge of banking sector and its Information Technology Division of the Bank is being run.
changing scenario. Besides, 341 executives and officers This Division engaged in designing required softwares in
were sent to institutions like BIBM, BBTA for training. house to meet the challenges of the day. Its Hardware unit
is always ready to troubleshooting at any corner of the
Total no of Executives and officers of the Bank as on
country. Due to adequate action of the Division, Banks
31.12.2014 was 1901 against 1835 of 2013.
Online System and other online products run very
Network of branches smoothly. It is now possible for us to continue SMS
To bring the huge un-banked segment of the people Banking, Mobile Banking, etc making banking more easier
residing in the remote areas of the country and to facilitate than ever for our valued customers.
meeting up increasing demand of growing middle class in Corporate Governance
urban areas, we have plans to expand our network further
in near future. The initiative taken by Bangladesh Bank to Ensuring Corporate Governance is a pre requisite for
allow the un-banked people to do business with banks establishing accountability and transparency in the affairs
have opened new opportunity to expand scope of banking of any organization that deals with public money or
activities. In 2014, our number of branches reached 103. It interest. Adequate measures have been taken in this
is hoped that at least 6 branches will be opened in 2015 in regard through proper utilization of available resources
potential areas following necessary survey to be made by and discharging day to day decision in accordance with
the Competent Authorities. the instructions of the Regulatory Bodies.
Dividend: A)Board Structure: The Board of Directors of the Bank
It is always our intention to pay good dividend to our mainly formulates and monitors guidelines/policy to run
valued Shareholders. In the past we have set example of the whole affairs of the Bank. Three Statutory Committees,
such intention. This year also the trend continues and in namely Executive Committee, Audit Committee and Risk
the light of the appropriation of divisible operational profit, Management Committee of the Board extend co-operation
the Board of Directors of the Bank has been pleased to and help the Board to discharge its responsibility and
recommend 10% stock dividend (i.e. bonus share) for the implement various decisions made through regular
Shareholders for the year 2014 for approval in the ensuing meetings to ensure functioning of various units of the
Annual General Meeting. Bank. The Board of Directors of the Bank met for 27 times
during the year 2014.
Managing Core Risks in Bank
(i)Executive Committee: Due to present reduced size of
It is of utmost importance in managing various risks in
the Board resulted for compliance of applicable law, the
running the Banking operations. Due importance and care
present Board of Directors itself met frequently to take all
have been given to this for compliance of Bangladesh
Banks guidelines in this regard and also requirements of decisions on business and other financial matters in
different Regulatory Bodies. Accordingly, different addition to policy and strategic planning for the Bank. As
Committees and Departments of the Head Office have such, no meeting of the Executive Committee of the Board
been assigned with the specific tasks to manage the was held during the year 2014.
concerned risk and to be compliant with the Rules & (ii)Audit Committee: The Audit Committee reviews both
Regulations of various Regulatory Bodies. internal and external audit report placed before them and
Audit and Inspection instructs the Management to act in accordance with their
directives ensuring true reflection of the companys
Regular inspection of branches are being conducted by the financial state in the disclosures to help the Board. The
Audit and Inspection Unit of Internal Control and said Committee, as required, also thoroughly analyses and
Compliance (ICC) Division to ensure proper and adequate scrutinizes the performance of the Statutory Auditors,

Annual Report 2014 58


Financial Statements (quarterly as well as annually), discipline among them. Further, a Code of Conduct is also
Annual Budget etc. In 2014, the Audit Committee of the there for settling any conflict of the interest arising in
Board met for 17 (seventeen) times. discharging duty by any employee. Other policies required
to ensure transparency are also there, or in the stage of
(iii)Risk Management Committee: This is another
formulation.
Statutory Committee engaged in identifying present and
future risks in the operations of the Bank and advising the E. Internal Control System and appropriate Accounting policy:
Management towards maintaining the same to avert any A system to ensure sound internal control has been
untoward happenings. The Committee held 4(four) implemented and its performance being monitored
meetings during the year 2014. through regular review. Monitoring of Internal Control and
Compliance has also been ensured. Appropriate
B. Financial Management:
accounting policies have been applied in preparing
Documents like Annual Budget and all statutory financial financial statements in accordance with the International
disclosures are prepared with the approval of the Board of Accounting Standards (IAS), where applicable.
Directors of the Bank which monitors/evaluates Banks
Corporate Social Responsibility :
liquidity, Income, Expenses, Non-Performing loan (NPL),
The Bank puts due importance to its CSR activities
Provisions and measures taken to recover stuck up loans
considering its sacred duty to the society at large. Through
and Advances.
the NCC Bank Foundation, established by the Board of
C. Management Structure: Directors of the Bank, CSR activities are being carried out
extensively in various philanthropic sectors since its
The Managing Director and Chief Executive Officer of the
Bank heads the Management Team consisting of other inception. Already considerable amount has been given in
senior members which runs its affairs and decides action sectors like education, health, infrastructure development,
to ensure profitability in line with the policies of the Central social advancement, etc. From the year 2012, the Bank
Bank and Board of Directors of the Bank. There are some through the Foundation, initiated a stipend giving
Committees to assist the Management in order to achieve programme for meritorious but destitute students of
its main objectives. various corners of the country who passed SSC and HSC
Examinations securing GPA 5.00. Besides, it has been
Management Committee (MANCOM): MANCOM is the made a consideration to allow such stipend to similar
highest policy and decision making body of the Bank students at the time of opening of new branches in any
Management headed by the Managing Director and CEO. particular location. The bank has a plan to undertake
The Senior members of Management, mainly divisional projects to augment government efforts towards social
heads are its members. The Committee sits regularly and advancement in near future as follows:
takes decision on various important matters and makes
Financial and Social Inclusion : Under an Inclusive
sure that these decisions are implemented properly and in time.
approach Banks direct expenditure in CSR has been aimed
Asset Liability Management Committee (ALCO) : The at social and financial inclusion of less privileged segment
Asset Liability Management Committee (ALCO) meets of the society.
once in a month and takes decisions mainly on issues that
Agriculture Credit : Responding to the ambitious plan of
concerns with Banks Assets quality and Liquidity position.
Bangladesh Bank to revitalize the agriculture sector of the
It also takes decisions regarding price of liquidity products
country, the Banks size of loan to this sector was
of the Bank in the light of market situation.
Tk.1784.90 million in 2014.
Head Office Credit Committee (HOCC) : Headed by the
Women Entrepreneurs : The Bank established a separate
Deputy Managing Director, HOCC examines, evaluates and
desk to consider proposals of women entrepreneurs in
decides on the business proposals sent by the Branches.
order to implement Bangladesh Bank policy to empower
in accordance with policy guidelines, business
women folks of the country. A product titled Auparajita
performance of the Clients, market situation etc. for
has also been introduced with easy terms and interest rate
ensuring good investment and places its recommendations
in this connection. In 2014, the Bank extended an amount
to the MD and CEO.
of Tk. 2.40 million to 30individuals for total Tk.31.60 million.
Taskforce for Recovery of Classified Loans: The Task
Day Care for children of the Employee of the Bank:
Force under the Managing Director and CEO reviews slow
Bangladesh Bank directives and ILO declaration on the
moving and classified Loans and Advances of the Bank in
policy, titled ABC of Womens Rights and Gender Equality
order to take appropriate steps to recover the same to
put importance on extending proper care to the children of
improve Banks financial health.
officer/staff irrespective of gender, free of cost or at
D. Code of Ethics/Policy of Business Conduct : affordable charge. Banking sector being a incrative and
The employees are governed by the HR Policy of the Bank attractive one now a days is chosen by the meritorious
as approved by the Board of Directors ensuring proper section of the youth generation. To retain them in the long

Annual Report 2014 59


run, proper care of their children should be ensured. To this External Auditors :
effect, steps have already been taken to establish a Day Care M/s. ACNABIN, Chartered Accountants have been
Centre at the NCC Bank Bhaban, the newly constructed appointed as External Auditors of the Bank in the last AGM
Corporate Registered Head Office building of the Bank. for auditing the financial statements of the Bank for the
year 2014 at a remuneration of Tk.1,50,000.00 only. They
Transport Management : The vehicles of the Bank are
are eligible to continue for consecutive three years as per
used as per approved Transport Policy of the Board
prescribed rules of Bangladesh Bank.
formulated as per Bangladesh Bank guidelines. According
to the Policy, the number of vehicles are in consistent with
As recommended by the Audit Committee of the Board, the
the size of employees and branch network. Although as
Board of Directors of the Bank has recommended to
per Bangladesh Banks BRPD Circular Letter No.02 dated
appoint M/S. ACNABIN, Chartered Accountants as External
16.01.2014 its growth is restricted within the limit of 10%
Auditors for auditing the financial statements of the Bank
annually but in our Bank the growth was 12.49% due to
for the year 2015 at a remuneration of Tk.2,00,000.00 (Taka
increase of payment of additional Car Maintenance
two lac) only for approval by the Honble Shareholders in
Allowance paid to the Executives of the Bank for new
the Banks ensuing 30th Annual General Meeting.
recruitments and the Pool Cars being very old,
maintenance of those cars also increased significantly as Future Prospects:
evident from the notes attached with the Financial
Statement SL-36.1 of the Annual Report-2014 under the The Bank always maintains a positive attitude in its
sub-head Car Expenses which shows total expenses as operation. It is the priority of the authority of the Bank to
Tk.4,49,23,333.00 as on 31.12.2014 against the amount look for all viable means to ensure its desired results. To
of Tk.41,713,401.00 only as incurred in 2013. Other this effect, necessary plans are being taken
directives as stipulated in BRPD Circular letter No.02 dated accommodating prevailing economic condition and
16.01.2014 of Bangladesh Bank have been noted and government policies. In the coming days, we are going to
being complied with accordingly. intensify our re-branding efforts and value being added
through our newly constructed 22 storied NCC Bank
National Integrity Strategy : The philosophy behind the Bhaban at the heart of the countrys commercial hub in
National Integrity Policy declared by the Government is to Dhaka and Banks new logo symbolizing our dynamism,
establish good governance in all spheres of the society as transparency, renewed zeal and spirit. We sincerely hope
a whole. NCC Bank has constituted a Committee on that the future will be even brighter than before for us.
National Integrity Strategy to create awareness among the
workforce. In all training courses, the policy and its Conclusion:
implementation strategy are discussed.
The members of the Board of Directors of the Bank take
Meetings of the Board of Directors and its Committees: the opportunity to record their heartfelt thanks and
During the year 2014 the Board of Directors met 27 times. gratitude to the Government of the Peoples Republic of
On the other hand, Audit Committee and Risk Bangladesh, Bangladesh Bank, Bangladesh Securities and
Management Committee of the Board held 17 & 04 Exchange Commission, Stock Exchanges, different
Meetings during the period respectively. Government Agencies, Regulatory Bodies, Shareholders,
Patrons, Valued Clients, Well-wishers and other
Directors : In accordance with the provisions of the Stakeholders for their continued support, guidance and
Articles of Association of the Bank and relevant co-operation. The Board of Directors also places its thanks
Rules/Circulars/Notifications of Regulatory Bodies in to the Management Team and employees of the Bank for
force and relevant clauses of Companies Act,1994, the their dedicated services for the continuous growth of the
following 03 (three) Directors from Sponsors Group and Bank.
one Director from the Group of General Public
Shareholders shall retire in the Banks ensuing 30th AGM, On behalf of the Board of Directors
by rotation and all of them are eligible for re-election as
Directors of the Bank in the said AGM.

From Group-A i.e. Sponsor Shareholders:


(i) Alhaj Md. Nurun Newaz Alhaj Md. Nurun Newaz
(ii) Mr. Md. Abdul Awal Chairman
(iii) Mr. S.M.Abu Mohsin
Dated, Dhaka
From Group-C i.e. General Public Shareholders: 4th June 2015
Mr. Md. Moinuddin

Annual Report 2014 60


Certificate on compliance of conditions of Corporate
Governance Guidelines of Bangladesh Securities & Exchange
Commission to the shareholders of National Credit and
Commerce Bank Limited and its Subsidiaries

We have examined the compliance of conditions of Corporate Governance Guidelines by National Credit
and Commerce Bank Limited and its Subsidiaries for the year ended 31 December 2014, as set by
Bangladesh Securities and Exchange Commission (BSEC) by the notification #
SEC/CMRRCD/2006-158/134/Admin/44 dated 7 August 2012 and subsequently amended through their
notification # SEC/CMRRCD/2006-158/147/Admin/48 dated 21 July 2013 issued under section 2CC of
the Securities and Exchange Ordinance, 1969.

The compliance of conditions of Corporate Governance Guidelines is the responsibility of the Banks
management. Our examination was limited to the procedures and implementation thereof, adopted by
the bank and its subsidiaries for ensuring the compliance of the conditions of Corporate Governance
Guidelines. It is neither an audit nor an expression of opinion on the financial statements of the bank
and its subsidiaries.

In our opinion and to the best of our information and according to the explanations given to us, we
certify that the bank and its subsidiaries have complied with the conditions of Corporate Governance
Guidelines as stipulated in the above-mentioned Notification.

We further state that such compliance is neither an assurance as to the future viability of the company
and its subsidiaries nor the efficiency or effectiveness with which the management has conducted the
affairs of the company and its subsidiaries.

Dated,Dhaka
21 May 2015 MABS & J Partners
Chartered Accountants

Annual Report 2014 61


BSEC Guidelines for Corporate Governance: Our Compliance Status
The Bangladesh Securities and Exchange Commission (BSEC) issued a Corporate Governance (CG) Guideline in 2012
which is being followed by banks on Comply basis. Status of compliance by NCCBL with the said CG guidelines issued
by BSEC though Notification no. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012 issued under section 2CC
of the Securities and Exchange Ordinance, 1969 is as follows:
(Report under Condition No. 7.00)
Compliance Status as on 31 December 2014
Condition Title (Put in the appropriate column) Remarks
No. (if any)
Complied Not Complied
1.0 Board of Directors

1.1 Boards size shall not be less than 5 and more than 20
1.2 Independent Director

1.2 (i) Independent director: At least 1/5th of the total number of directors

1.2 (ii) a) Independent director does not hold any share or holds less than one
percent (1%) shares of total paid up capital.
1.2 (ii) b) Independent Director is not a sponsor of the company and is not
connected with the companys Sponsor or Director or Shareholder
who holds 1% or more shares.
1.2 (ii) c) Independent director does not have any other relationship, whether
pecuniary or otherwise, with the company or its
subsidiary/associated companies.
1.2 (ii) d) Independent directors are not the members, directors or officers of

any stock exchange.
1.2 (ii) e) Independent director is not the shareholder, director or officers of any

member of Stock Exchange or an intermediary of the capital market.
1.2 (ii) f) Independent director is/was not the partners or executives during
preceding 3 (three) years of concerned companys statutory audit firm.
1.2 (ii) g) Independent directors is not the independent director in more than 3

(three) listed companies.
1.2 (ii) h) Independent director is not convicted by a court of competent
jurisdiction as a defaulter in payment of any loan to a bank or a
non-bank financial institution (NBFI).
1.2 (ii) i) Independent director has not been convicted for a criminal offence

involving moral turpitude.
1.2 (iii) The independent director shall be appointed by the Board of Directors

and approved by the Shareholders in the AGM.
1.2 (iv) The post of independent directors cannot remain vacant for more than

90 days.
1.2 (v) The Board shall lay down a Code of Conduct of all Board Members

and annual compliance of the Code to be recorded.
1.2 (vi) The tenure of office of an Independent Directors shall be for a period

of 3 (three) years which may be extended for 1 (one) term only.

1.3 Qualification of Independent Director (ID)

1.3 (i) Independent Director shall be knowledgeable individual with integrity



who is able to ensure required compliance.
1.3 (ii) The independent director must have at least 12 (twelve) years of
corporate management/ professional experiences along with other
requisites.
1.3 (iii) In special cases above qualifications may be relaxed by the No such deviation
occurred
Commission
1.4 Separate Chairman and CEO and their clearly defined roles and

responsibilities.

Annual Report 2014 62


Compliance Status as on 31 December 2014 Remarks
Condition Title (Put in the appropriate column)
No. (if any)
Complied Not Complied
1.5 Directors Report to Shareholders
1.5 (i) Industry outlook and possible future developments in the industry
1.5 (ii) Segment-wise or product-wise performance.
1.5 (iii) Risks and concerns
1.5 (iv) Discussion on cost of goods sold, gross profit margin and net profit

margin
1.5 (v) Discussion on continuity of any Extra-Ordinary gain or loss. No such event occurred
1.5 (vi) Basis for related party transaction- a statement of all related party

transactions should be disclosed in the annual report
1.5 (vii) Utilization of proceeds from public issues, right issues and/ or No such event
through any others instruments. occurred
1.5 (viii) An explanation if the financial results deteriorate after the company No such event
goes for IPO, RPO, Rights Offer, Direct Listing etc. occurred
1.5 (ix) If significant variance occurs between quarterly financial performance
and annual financial statements the management shall explain about
the variance on their Annual Report.
1.5 (x) Remuneration to directors including independent directors.
1.5 (xi) The financial statements prepared by the management of the
company present fairly its state of affairs, the results of its operation,
cash flows and changes in equity.
1.5 (xii) Proper books of account of the company have been maintained.
1.5 (xiii) Appropriate accounting policies have been consistently applied in
preparation of the financial statements and that the accounting
estimates are based on reasonable and prudent judgment.
1.5 (xiv) International Accounting Standards (IAS)/Bangladesh Accounting
Standards (BAS)/International Financial Reporting Standards
(IFRS)/Bangladesh Financial Reporting Standards (BFRS), as

--applicable in Bangladesh, have been followed in preparation of the
financial statements and any departure there-from has been
adequately disclosed.
1.5 (xv) The system of internal control is sound in design and has been

effectively implemented and monitored.
1.5 (xvi) There are no significant doubts upon the company's ability to

continue as a going concern.
1.5 (xvii) Significant deviations from the last years operating results of the
company shall be highlighted and the reasons thereof should be
explained.
1.5 (xviii) Key operating and financial data of at least preceding 5 (five) years

shall be summarized.
1.5 (xix) If the company has not declared dividend (cash or stock) for the year,
The Board recommended 10%
(ten percent) stock dividend
the reasons thereof shall be given. for the year 2014

1.5 (xx) The number of Board meetings held during the year and attendance
by each director shall be disclosed.
1.5 (xxi) The pattern of shareholding shall be reported to disclose the aggregate number
of shares (along with name wise details where stated below) held by:
1.5 (xxi) a) Parent/Subsidiary/Associated Companies and other related parties (name wise
details);
1.5 (xxi) b) Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer,

Head of Internal Audit and their spouses and minor children (name wise details);
1.5 (xxi) c) Executives (top five salaried employees of the company other than stated in
1.5(xxi)b);
1.5 (xxi) d) Shareholders holding ten percent (10%) or more voting interest in the company No shareholder holds
(name wise details). more than 10% share

1.5 (xxii) In case of appointment/re-appointment of a director, the company shall


disclose the following information to the Shareholders:
1.5 (xxii) a) A brief resume of the Director;
1.5 (xxii) b) Nature of his/her expertise in specific functional areas.

Annual Report 2014 63


Compliance Status as on 31 December 2014
Condition Title (Put in the appropriate column)
Remarks
No. (if any)
Complied Not Complied
1.5 (xxii) c) Names of companies in which the person also holds the directorship and the
membership of committees of the board.
2.0 Chief Financial Officer, Head of Internal Audit & Company Secretary
2.1 Appointment of CFO, Head of Internal Audit and Company Secretary and their
clearly defined roles, responsibilities and duties.
2.2 Attendance of CFO and the Company Secretary at Board of Directors meeting
3 Audit Committee:
3 (i) Audit Committee shall be the sub-committee of the Board of Directors.
3 (ii) The Audit Committee shall assist the Board of Directors in ensuring that the
financial statements reflect true and fair view of the state of affairs of the Company
and in ensuring a good monitoring system within the business.
3 (iii) The Audit Committee shall be responsible to the Board of Directors. The duties of

the Audit Committee shall be clearly set forth in writing.
3.1 Constitution of the Audit Committee
3.1 (i) The Audit Committee shall be composed of at least 3 members.
3.1 (ii) Constitution of Audit Committee with Board Members including one Independent

Director.
3.1 (iii) All members of the Audit Committee should be financially literate and at least 1
(one) member shall have accounting or related financial management experience.
3.1 (iv) Filling of Casual Vacancy in Committee No such event occurred
3.1 (v) The Company Secretary shall act as the secretary of the Committee.
3.1 (vi) The quorum of the Audit Committee meeting shall not constitute without at least 1

independent director.
3.2 Chairman of the Audit Committee
3.2 (i) Chairman of the Audit Committee shall be an Independent Director.
3.2 (ii) Chairman of the Audit Committee shall remain present in the Annual General
Meeting (AGM).
3.3 Role of Audit Committee
3.3 (i) Oversee the financial reporting process.
3.3 (ii) Monitor choice of accounting policies and principles.
3.3 (iii) Monitor Internal Control Risk management process.
3.3 (iv) Oversee hiring and performance of external auditors.
3.3 (v) Review along with the management, the annual financial statements before
submission to the board for approval.
3.3 (vi) Review along with the management, the quarterly and half yearly Financial

Statements before submission to the Board for approval.
3.3 (vii) Review the adequacy of internal audit function.
3.3 (viii) Review statement of significant related party transactions submitted by the
management.
3.3 (ix) Review Management Letters/ Letter of Internal Control weakness issued by
statutory auditors.
3.3 (x) When money is raised through Initial Public Offering (IPO)/ Repeat Public Offering
(RPO)/Rights Issue the company shall disclose to the Audit Committee about the
No such event
uses/ applications of funds by major category (capital expenditure, sales and
occurred
marketing expenses, working capital, etc.), on a quarterly basis, as a part of their
quarterly declaration of financial results.
3.4. Reporting of the Audit Committee
3.4.1 Reporting to the Board of Directors
3.4.1 (i) The Audit Committee shall report on its activities to the Board of Directors.
3.4.1 (ii) The Audit Committee shall immediately report to the Board of Directors on the
following fndings, if any:
3.4.1 (ii) a) Report on conflicts of interests. No such event occurred
3.4.1 (ii) b) Suspected or presumed fraud or irregularity or material defect in the internal
No such event occurred
control system;
3.4.1 (ii) c) Suspected infringement of laws, including securities related laws, rules and
No such event occurred
regulations;
3.4.1 (ii) d) Any other matter which shall be disclosed to the Board of Directors immediately. No such event occurred

Annual Report 2014 64


Compliance Status as on 31 December 2014
Condition Title (Put in the appropriate column) Remarks
No. (if any)
Complied Not Complied
3.4.2 Reporting of anything having material financial impact to the Commission. No such event occurred
3.5 Reporting to the Shareholders and General Investors.
4 External/Statutory Auditors should not be engaged in:
4 (i) Appraisal or valuation services or fairness opinions.
4 (ii) Financial information systems design and implementation.
4 (iii) Book-keeping or other services related to the accounting records or

financial statements.
4 (iv) Broker-dealer services.
4 (v) Actuarial services.
4 (vi) Internal audit services.
4 (vii) Any other service that the Audit Committee determines.
4 (viii) No partner or employees of the external audit firms shall possess any
share of the company they audit at least during the tenure of their
audit assignment of that Company.
5 Subsidiary Company
5 (i) Provisions relating to the composition of the Board of Directors of the
holding company shall be made applicable to the composition of the
Board of Directors of the subsidiary company.
5 (ii) At least 1 (one) independent director on the Board of Directors of the
holding company shall be a director on the Board of Directors of the
subsidiary company.
5 (iii) The minutes of the Board meeting of the subsidiary company shall be
placed for review at the following Board meeting of the holding
company.
5 (iv) The Minutes of the respective Board meeting of the holding company

shall state that they have reviewed the affairs of the Subsidiary
Company also.
5 (v) The Audit Committee of the holding company shall also review the
Financial Statements, in particular the investments made by the
Subsidiary Company.
6 Duties of Chief Executive Officer (CEO) and Chief Financial Officer
(CFO):
6 (i) They have reviewed financial Statements for the year and that to the

best of their knowledge and belief:
6 (i) a) These financial statements do not contain any materially untrue
statement or omit any material fact or contain statements that might
be misleading.
6 (i) b) These financial statements together present a true and fair view of the
companys affairs and are in compliance with existing accounting
standards and applicable laws.
6 (ii) There are, to the best of knowledge and belief, no transactions
entered into by the company during the year which are fraudulent,
illegal or violation of the companys code of conduct.
7 Reporting and Compliance of Corporate Governance:
7 (i) The company shall obtain a Certificate from a Professional
Accountant/Secretary (CA/CMA/CS) regarding compliance of
conditions of Corporate Governance Guidelines of the Commission
and shall send the same to the shareholders along with the Annual
Report on a yearly basis.
7(ii) The directors of the company shall state, in accordance with the
Annexure attached, in the directors' report whether the company has
complied with these conditions.

Annual Report 2014 65


Compliance Report on BSECs Notification

Statement of the Attendance of the Board of Directors during the year 2014

SL Name of the Hon'ble Directors Position Meetings held Attended No. of Absence Remarks
No.

1 Alhaj Md. Nurun Newaz Chairman 27 27 0 All meetings attended


06 (six) Leave of
2 Mr. A.S.M. Main Uddin Monem Vice Chairman 27 21 6 Absence Granted
02 (two) Leave of
3 Mr. Md. Abdul Awal Director 27 25 2 Absence Granted
09 (nine) Leave of
4 Mr. Amjadul Ferdous Chowdhury Director 27 18 9
Absence Granted
03 (three) Leave of
5 Mr. S. M. Abu Mohsin Director 27 24 3
Absence Granted
07 (seven) Leave of
6 Mr. Abdus Salam Director 27 20 7
Absence Granted
7 Mrs. Sohela Hossain Director 27 27 0 All meetings attended
08 (eight) Leave of
8 Mr. Yakub Ali Director 27 19 8
Absence Granted
12 (twelve) Leave of
9 Mr. Md. Abul Bashar Director 27 15 12
Absence Granted
04 (four) Leave of
10 Mr. Md. Harunur Rashid Director 27 23 4
Absence Granted
01 (one) Leave of
11 Mr. Khairul Alam Chaklader Director 27 26 1
Absence Granted
07 (seven) Leave of
12 Mr. Md. Moin Uddin Director 27 20 7
Absence Granted
13 Mr. Md. Amirul Islam FCS, FCA Independent Director 27 27 0 All meetings attended
04 (four) Leave of
14 Mr. K. A. M. Haroon Independent Director 27 23 4
Absence Granted

Annual Report 2014 66


The pattern of shareholding of NCC Bank Limited as on 31.12.2014 as per BSECs Notification No.
BSEC/CMRRCD/2006-158/134/Admin/44 dated August 07, 2012:

a) Shareholding by Parent/Subsidiary/Associated Companies and other related parties: Nil

b.i) Shareholding by Directors:

No. of (%) of Shares


SL. Name Designation
Shares as on
No.
31.12.2014
1 Alhaj Md. Nurun Newaz Chairman 16403547 2.04
2. Mr. A.S.M. Main Uddin Monem Vice Chairman 16062961 2.00
3. Mr. Md. Abdul Awal Director 16878750 2.10
4. Mr. Amjadul Ferdous Chowdhury Director 16073131 2.00
5. Mr. S.M. Abu Mohsin Director 16171936 2.01
6. Mr. Abdus Salam Director 16870685 2.10
7. Mrs. Sohela Hossain Director 16104975 2.01
8. Mr. Yakub Ali Director 16060466 2.00
9. Mr. Md. Abul Bashar Director 16880250 2.10
10. Mr. Md. Harunur Rashid Director 17833013 2.22
11. Mr. Khairul Alam Chaklader Director 20047301 2.50
12. Mr. Md. Moinuddin Director 20916076 2.60
13 Mr. Md. Amirul Islam FCS, FCA Independent Director Nil -
14 Mr. K. A. M. Haroon Independent Director Nil -
Total 206303091 25.68

ii) Shareholding by Managing Director & CEO : Nil


iii) Shareholding by Company Secretary : 13300 ((0.001%)
iv) Shareholding by Chief Financial Officer : Nil
v) Shareholding by Head of Internal Control & Compliance : Nil
vi) Shareholding by Spouses of above Executives : 2702 (0.000%)

c) Shareholding by Executives : as on 31.12.2014


i) Mr. Akhter Hamid Khan, DMD : NIl
ii) Mr. Ishtiaque Ahmed, SEVP : Nil
iii) Mr. Mamun-UR- Rashid , SEVP : Nil
iv) Mr. Mukthar Ahmed, SEVP : Nil
V) Mr. Fazlur Rahman, SEVP : Nil
vi) Mr. Abu Zafore Md. Saleh, SEVP : Nil
Vii) Mr. M Wahedur Rahman, SEVP : Nil
viii) Mr. A.B.M. Abdullah, SEVP : Nil
iX) Spouses of above Executives : Nil

d) Shareholders holding ten percent (10%) of shares : Nil

Annual Report 2014 67


Report of the Audit Committee of Board of Directors of
National Credit and Commerce Bank Limited
Audit Committee of the Board

As per Banking Companies Act-1991 (as amended in 2013) an Audit Committee of the Board of Directors shall be formed
to assist the Board of Directors of the Bank for smooth running the banking business. Accordingly, the Audit Committee of
the Board has been constituted as per guidelines of Bangladesh Bank and Bangladesh Securities and Exchange
Commission. Both the Regulators have emphasized on prudent & effective oversight by the Audit Committee of the Board
for un-earthing lapses & irregularities, if any, committed by the Bank Management at every tier and ensuring strict financial
discipline in the Bank, through recommendations to the Board. The major objectives of the Audit Committee are as follows:

To implement the objectives, strategies and comprehensive business plans set by the Board for effective
functioning of the Bank.
To report its activities to the Board of Directors on periodical basis and give independent and unbiased opinion on
the financial statements based on the findings of Statutory Auditors and other Inspection Teams of Internal &
External Authorities.
To review the merit and accuracy of financial reporting process, degree of effectiveness of the Banks internal
control system and management of financial reporting process, the system of internal control and management of
financial risks, the audit process and the Banks risk management process.
To review the Banks existing IT governance and security infrastructure including IT system audit and its control
mechanism to protect the IT based fraud and forgery as per guidelines of Regulatory Bodies.
To assist the Management for maintaining close liaison between the Board and management, Shareholders,
Depositors and other Stake-holders through fair and transparent dissemination of facts, which will help to create
the confidence in the corporate arena.
To evolve an effective process, policies and procedure for fair financial disclosure, developing a industry best
practices internal controlling system and maintaining liaison with Internal and External Auditors to minimize
various post audit business operational risks.

Composition of the Committee and Qualifications of the Members

The Audit Committee of the Board of Directors of National Credit and Commerce Bank Ltd. was constituted in accordance
with Bangladesh Bank BRPD Circular No. 11 dated 27 October 2013 and Notification on Corporate Governance issued by
BSEC on 07 August 2012. The Audit Committee of NCCBL Board was last re-constituted in the 282nd Board Meeting held on
March 03, 2014 with the following Board members:

Sl Status with Status with Educational Meeting


Name Remarks
No. the Bank the Committee Qualification Attendance
Independent B.Com. (Hons), M.Com.
01 Mr. Md. Amirul Islam FCS, FCA Director Chairman DAIBB, FCS, FCA 17 -
02 Mr. A.S.M. Main Uddin Monem Vice Chairman Member MBA, Harvard Business School 03 -
03 Mr. Md. Abul Bashar Director Member B.S. (MIS), USA 04 -
04 Mr. Khairul Alam Chaklader Director Member B.Com. 17 -
Independent
05 Mr. K.A.M. Haroon Member BSc Engg. 13 -
Director

The Company Secretary acts as the Secretary of the Audit Committee of the Board.

Roles and Responsibilities of Audit Committee

Inline with the Audit Plan-2014, the Audit Committee carried out its activities successfully to attain its prime objectives and
other relevant responsibilities as per its Terms of Reference, with the assistance of the Board of Directors of the Bank as per

Annual Report 2014 68


the guidelines outlined in BRPD Circular No. 11 dated 27 October 2013, Corporate Governance Notification issued by BSEC
on 07 August 2012 and considering other best practice corporate governance guidelines & standards. Some important
roles and responsibilities are highlighted below:

Internal Control

The Committee:
Evaluates whether the Management is setting the appropriate compliance culture by communicating the importance of
internal control and other risk factors and ensuring that all employees are aware of their roles and
responsibilities;
Reviews the arrangements made by the management for building a suitable Management Information System
(MIS) including computerization system and its applications;
Considers whether internal control strategies recommended by Internal and External Auditors have been
implemented by the Management;
Reviews the existing risk management procedures for ensuring an effective internal check and control system;
Reviews the corrective measures taken by the Management as regards the reports relating to fraud-forgery, deficiencies
in internal control or other similar issues, detected by Internal and External Auditors and Inspection Team of the
Regulatory Authority and inform the Board on a regular basis.

Financial Reporting

The Committee:
Reviews the annual financial statements and determines whether this is complete and consistent with the accounting
standards set by the Regulatory Authority;
Meets with Management and the External Auditors to review the financial statements before its finalization.

Internal Audit

The Committee:
Reviews the activities and organizational structure of the internal audit function and ensures that no unjustified
restrictions or limitations are made;
Reviews the efficiency and effectiveness of internal audit function;
Reviews that findings and recommendations made by the Internal Auditors for removing the irregularities detected and
also gives necessary advices to the Bank Management for running the affairs of the bank efficiently.

External Audit

The Committee:
Reviews the auditing performance of the External Auditors and their audit reports
Reviews the findings and recommendations made by the External Auditors for removing the irregularities detected and
also running the affairs of the Bank through the Management;
Makes recommendations to the Board of Directors of the Bank regarding appointment of the External Auditors.
Advices for compliance with existing laws and Regulations;

Other Responsibilities

The Committee:
Places compliance report before the Board on quarterly basis regarding regularization of the errors & omissions and
actions suggested to resolve fraud and forgeries and other irregularities as detected by the Internal and External
Auditors and Inspection Teams of Regulatory Authorities;
Performs other oversight functions as requested by the Board from time to time and evaluates the Committees own
performance on regular basis.

Annual Report 2014 69


Meetings of the Audit Committee

The Audit Committee of the Board held 17 (seventeen) meetings during the year 2014 and held detailed discussions on the
findings of Internal Control & Compliances Division on the branches as well as on Head Office Divisions/Departments as
placed in its meetings. It gives prudent advices to the Management for improvement of Banks financial health and gives
proper advices to the Management to move in the right path.
The Audit Committee, among others, discharged the following responsibilities during the year:

Internal Control

The Committee reviewed the existing internal control system in the company to introduce the appropriate compliance
culture as under:

Internal Audit
The Committee introduced various formats to report facts & figures in a prudent way to the Committee.
The Committee reviewed the efficiency and effectiveness of internal audit functions.
The Committee reviewed the audit and inspection reports on branches and departments of Head Office of the Bank from
time to time and gave necessary instructions to the Management to ensure compliance.

External Audit
The Committee recommended the appointment of External Auditors.
The Committee finalized the Audit Report and Annual Financial Statements of the Bank for the year under report.
The Committee reviewed and discussed on the letter issued by the External Auditors on the Management.

Bangladesh Bank Audit


The Committee reviewed the Bangladesh Banks comprehensive audit and inspection report and advised the
Management to take action as part of compliance.
The Committee reviewed other compliance issues of Bangladesh Bank

Financial Statement Reporting


The Committee reviewed quarterly and half yearly Financial Statements before submission to the Board for approval.
The Committee reviewed the Annual Financial Statements of the Bank before submission to the Board for approval and
authorization for public dissemination.

The Minutes of the meetings of the Audit Committee were regularly placed in the meeting of the Board of Directors for
perusal and approval of the recommendations of the Committee.

The Audit committee expressed its sincere thanks to the Members of the Board of Directors of the Bank Management Team
and the External Auditors for extending their excellent support in carrying out the duties and responsibilities of the
Committee satisfactorily during the year 2014.

On behalf of the Audit Committee,

Md. Amirul Islam FCS, FCA


Chairman
Audit Committee of the Board

Annual Report 2014 70


Report of the Managing Director &
CEO and the Chief Financial Officer (CFO)

We have reviewed accompanying consolidated financial statements of NCC Bank Limited and its subsidiaries (the
Group) as well as the financial statements of NCC Bank Limited (the Bank) which comprise the consolidated and the
separate balance sheet as at 31 December 2014, profit and loss account, statement of changes in equity, cash flow
statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.

These financial statements have been prepared and presented fairly in accordance with Bangladesh Accounting
Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs), The First Schedule (section 38 of the
Bank Companies Act 1991, as amended by the BRPD Circular no. 14 dated 25 June 2003, other Bangladesh Bank
Circulars, the Companies Act 1994, The Securities and Exchange Rules 1987, Dhaka and Chittagong Stock Exchanges
listing regulations and other laws and rules applicable in Bangladesh.

The Bank has taken proper and sufficient care in installing a system of internal control, which is reviewed, evaluated and
updated on an ongoing basis. The Internal Control & Compliance Department of the Bank conducts periodic audits to
provide reasonable assurance that the established policies and procedures of the bank were consistently followed.

Based on the internal control system of the bank and our review of these financial statements, we certify that to the best
of our knowledge and belief:

i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;

ii) these statements together present a true and fair view of the Banks affairs and are in compliance with existing
accounting standards and applicable laws;

iii) no transactions entered into by the Bank during the year which are fraudulent, illegal or violation of the banks code
of conduct.

Managing Director & CEO Chief Financial Officer

Dated,Dhaka
05 May 2015

Annual Report 2014 71


Recognition for the best presented Annual Report 2012

Recognition for the best presented Annual Report 2013

Annual Report 2014 72


AUDITORS REPORT
TO THE SHAREHOLDERS OF NCC BANK LIMITED

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of NCC Bank Limited and its subsidiaries (the
Group") as well as the separate financial statements of NCC Bank Limited (the Bank), which comprise the
consolidated and separate balance sheets as at 31 December 2014, and the consolidated and separate profit and loss
accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flow
statements for the year then ended including a summary of significant accounting policies and other explanatory
information.

Managements Responsibility for the Financial Statements and Internal Controls

Management is responsible for the preparation of consolidated financial statements of the Group and also separate
financial statements of the Bank that give a true and fair view in accordance with Bangladesh Financial Reporting
Standards as explained in note# 2.1 and for such internal control as management determines is necessary to enable
the preparation of consolidated financial statements of the Group and also separate financial statements of the Bank
that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and the
Bangladesh Bank Regulations require the Management to ensure effective internal audit, internal control and risk
management functions of the Bank. The Management is also required to make a self-assessment on the effectiveness
of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated financial statements of the Group and the separate
financial statements of the Bank based on our audit. We conducted our audit in accordance with Bangladesh
Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements of the Group and separate
financial statements of the Bank are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements of the Group and separate financial statements of the Bank. The procedures
selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the
consolidated financial statements of the Group and separate financial statements of the Bank, whether due to fraud
or error. In making those risk assessments, the auditor considers internal control relevant to the entitys preparation
of consolidated financial statements of the Group and separate financial statements of the Bank that give a true and
fair view in order to design audit procedures that are appropriate in the circumstances. 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 consolidated financial statements of the Group and also
separate financial statements of the Bank.

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 consolidated financial statements of the Group and also separate financial statements of the Bank
give a true and fair view of the consolidated financial position of the Group and the separate financial position of the
Bank as at 31 December 2014, and of its consolidated and separate financial performance and its consolidated and
separate cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards as
explained in note# 2.1.

Annual Report 2014 74


Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank Company Act, 1991 and
the rules and regulations issued by Bangladesh Bank, we also report the following:

(a) we have obtained all the information and explanation which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;

(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# 2.20 of the financial statements, appeared to be materially adequate;

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 # 2.32 of these financial statements;

(c) financial statements of subsidiary, NCCB Securities and Financial Services Limited, of the Bank have been
audited by Shafiq Mizan Rahman and Augustine, Chartered Accountants, financial statements of subsidiary,
NCCB Capital Limited (NCCBCL), of the Bank have been audited by Hoda Vasi Chowdhury & Co., Chartered
Accountants, and the financial statements of another subsidiary, NCCB Exchange (UK) Limited, of the Bank
have been verified by Shahidullah & Co., Certified Chartered Accountants 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 accounting standards as well as with
related guidance issued by Bangladesh Bank;

(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 explanation 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 4130 person
hours for the audit of the books and accounts of the Bank.

Dated,Dhaka ACNABIN
06 May 2015 Chartered Accountants

Annual Report 2014 75


NCC Bank Limited and its Subsidiaries
Consolidated Balance Sheet
As at 31 December 2014

31.12.2014 31.12.2013 01.01.2013


Notes
PROPERTY AND ASSETS Taka Taka Taka

Cash 5(a) 8,612,161,539 7,875,262,639 7,732,385,281


In hand (including foreign currencies) 1,173,484,713 1,256,477,870 1,139,317,553
Balance with Bangladesh Bank and its agent bank (s) 7,438,676,826 6,618,784,769 6,593,067,728
(including foreign currencies)

Balance with other banks and financial institutions 6(a) 2,414,393,658 670,604,823 1,320,030,633
In Bangladesh 471,533,599 341,687,470 1,088,828,360
Outside Bangladesh 1,942,860,059 328,917,353 231,202,273

Money at call and short notice 7 - - -

Investments 8 (a) 26,597,505,060 19,933,799,397 30,875,334,248


Government 25,241,572,158 18,352,194,148 29,282,775,027
Others 1,355,932,902 1,581,605,249 1,592,559,221

Loans and advances 9(a) 93,766,512,875 90,790,437,249 82,413,113,415


Loans, cash credits, overdrafts, etc. 91,585,216,994 88,986,893,032 80,286,453,329
Bills purchased & discounted 2,181,295,881 1,803,544,217 2,126,660,086

Fixed assets including premises,


furnitures and fixtures 10(a) 2,591,715,651 1,759,065,816 1,771,827,510
Other assets 11(a) 2,014,263,699 3,597,079,822 1,955,537,059
Non-banking assets - - -
TOTAL ASSETS 135,996,552,482 124,626,249,746 126,068,228,146

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks,


financial institutions and agents 12 (a) 5,025,525,649 2,763,533,530 9,444,527,760

Deposits and other accounts 13 (a) 105,458,206,463 97,986,947,700 96,687,165,058


Current deposits and other accounts 9,303,413,794 7,844,244,383 8,629,374,837
Bills payable 13.1 2,038,624,517 1,319,767,208 1,612,347,002
Savings bank deposits 12,989,595,636 11,167,226,439 9,832,750,729
Fixed deposits 45,696,085,137 47,844,992,750 53,488,720,598
Term deposits 35,430,487,379 29,810,716,920 23,123,971,892

Other liabilities 14(a) 11,155,937,549 10,593,854,568 7,792,199,041


TOTAL LIABILITIES 121,639,669,661 111,344,335,798 113,923,891,859
Shareholders' equity
Paid up capital 15.2 8,029,254,580 7,646,909,130 6,951,735,580
Statutory reserve 16 4,783,513,367 4,283,417,675 3,818,042,032
General reserve 17 10,162,348 10,162,348 10,162,348
Non-controlling (Minority) interest 15.8 215 215 212
Other reserve-assets revaluation reserve 18 484,862,319 450,761,512 469,729,455
Foreign currency translation gain/(Loss) 19.3 2,395,709 910,171 -
Surplus in profit and loss account 19(a) 1,046,694,283 889,752,897 894,666,660
TOTAL SHAREHOLDERS' EQUITY 14,356,882,821 13,281,913,948 12,144,336,287
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 135,996,552,482 124,626,249,746 126,068,228,146

Annual Report 2014 76


31.12.2014 31.12.2013 01.01.2013
Notes
CONTRA ENTRIES Taka Taka Taka

Off balance sheet items:


Contingent liabilities
Acceptances and endorsements 20.1 11,771,729,896 12,350,769,134 13,284,505,289
Letters of guarantee 20.2 10,779,508,225 6,148,244,590 5,670,935,938
Letters of credit issued 20.3 10,082,145,954 7,725,862,083 5,000,442,176
Bills for collection 20.4 295,242,380 3,894,651 796,376
Other contingent liabilities :
Claims against the bank not acknowledged as debt - - -
Capital commitments - - -
Export development fund (EDF) 169,424,989 7,028,000 175,796,000
TOTAL OFF BALANCE SHEETS ITEMS 33,098,051,444 26,235,798,458 24,132,475,779

These financial statements should be read in conjunction with the annexed notes from 1 to 43.

Chairman Director Director Managing Director & CEO

See annexed auditor's report to the Shareholders of the date.

Dated,Dhaka ACNABIN
06 May 2015 Chartered Accountants

Annual Report 2014 77


NCC Bank Limited and its Subsidiaries
Consolidated Profit and Loss Account
For the year ended on 31 December 2014

2014 2013
Notes
Taka Taka

Interest income 22(a) 12,002,336,832 12,393,308,389


Less: Interest paid on deposits and borrowings 23(a) 9,339,227,961 10,143,850,699
Net interest income 2,663,108,871 2,249,457,690
Income from investments 24(a) 2,673,127,057 2,782,298,831
Commission, exchange and brokerage 25(a) 942,488,648 1,018,065,287
Other operating income 26(a) 347,721,249 324,295,423
Total operating income 6,626,445,825 6,374,117,231
Salary and allowances 27(a) 1,769,143,439 1,449,457,548
Rent, taxes, insurance, electricity etc. 28(a) 298,963,720 263,188,635
Legal expenses 29 (a) 19,889,646 14,798,420
Postage, stamp, telecommunication etc. 30(a) 28,791,504 27,669,825
Stationery, printing, advertisement etc. 31(a) 71,317,985 78,124,450
Managing Director's salary and allowances 32 9,204,354 8,880,000
Directors' fees 33(a) 1,960,500 1,495,000
Audit fees 34(a) 185,000 170,000
Depreciation and repair of bank's assets 35(a) 388,255,538 344,757,810
Other expenses 36(a) 280,699,646 262,926,940
Total operating expense 2,868,411,332 2,451,468,628
Profit before provisions 3,758,034,493 3,922,648,603
Provision for loans and advances 1,102,979,734 1,295,587,905
Specific provision 14.5.1(a) 1,049,908,407 1,248,163,191
General provision 14.5.1(b) 53,071,327 47,424,714
Provision for off-balance sheet exposures 14.6 70,600,398 18,442,091
Provision for off-shore banking unit 14.7 3,500,493 206,965
Provision for investment fluctuation in shares 8.3 54,242,778 176,370,449
Provision for other assets 14.2 - 14,431,768
Total provisions 1,231,323,403 1,505,039,178
Profit after provision for loans & advances & other provisions 2,526,711,090 2,417,609,425
Contribution to NCC Bank Foundation 14.9 25,000,000 20,000,000
Profit before tax 2,501,711,090 2,397,609,425
Provision for tax 14.3 1,007,028,892 1,257,110,900
Current tax 877,235,304 1,273,061,118
Deferred tax 14.4.1 129,793,588 (15,950,218)
Profit after tax for the year 1,494,682,198 1,140,498,525
Attributable to:
Shareholders' of the bank 1,494,682,198 1,140,498,520
Non-controlling (Minority) interest - 5
Balance of profit brought forward from last year 19.2 48,592,899 208,145,541
Total profit available for distribution 1,543,275,097 1,348,644,062
Appropriations:
Statutory reserve 500,095,692 465,375,643
General reserve - -
500,095,692 465,375,643
Retained earnings carried forward 19(a) 1,043,179,405 883,268,419
Earnings per share (EPS) 42(a) 1.86 1.42

These financial statements should be read in conjunction with the annexed notes from 1 to 43.

Chairman Director Director Managing Director & CEO


See annexed auditor's report to the Shareholders of the date.

Dated,Dhaka ACNABIN
06 May 2015 Chartered Accountants

Annual Report 2014 78


NCC Bank Limited and its Subsidiaries
Consolidated Cash Flow statement
For the year ended on 31 December 2014
2014 2013
Notes
Taka Taka

A) Cash flows from operating activities


Interest received in cash 13,838,674,272 14,119,426,119
Interest paid by cash (8,247,206,366) (10,449,396,345)
Dividend received 56,999,846 26,715,673
Fees & commission received in cash 743,147,974 734,491,693
Recoveries of loans previously written off 11,873,927 12,368,154
Cash paid to employees (1,668,077,244) (1,361,653,601)
Cash paid to suppliers (240,668,501) (327,673,255)
Income taxes paid (764,227,838) (1,379,690,275)
Received from other operating activities 37(a) 1,092,114,463 1,574,851,973
Paid for other operating activities 38(a) (697,467,300) (508,744,612)
Operating profit before changes in operating assets and liabilities 4,125,163,233 2,440,695,524
Increase/(Decrease) in operating assets & liabilities
Purchase-sale of trading securities (6,768,186,210) 10,854,926,679
Loans and advances to other banks - -
Loans and advances to customers ( Other than banks) (2,976,075,626) (8,377,323,834)
Other assets 39(a) 682,158,007 (266,213,310)
Deposits from other banks/borrowings 280,010,213 (3,043,871,876)
Deposits from customers ( Other than banks) 7,358,957,121 1,100,084,285
Other liabilities account of customers (1,664,988,737) (118,389,700)
Other liabilities 40 (a) 721,332,298 505,821,414
Net Cash received from operating activities 1,758,370,299 3,095,729,182
B) Cash flows from investing activities
Proceeds from sale of securities 262,380,301 384,963,302
Payment for purchase of securities (173,299,657) (412,586,872)
Purchase of property, plant and equipment (989,898,831) (149,858,951)
Sales proceeds of fixed assets 5,893,287 11,612,322
Net cash used in investing activities (894,924,900) (165,870,199)
C) Cash flows from financing activities
Borrowings from other bank's , financial institutions and agents 2,093,981,906 (3,437,122,354)
Interim dividend paid to minority shareholders - (2)
Dividend paid in cash (458,814,548) -
Net cash received from financing activities 1,635,167,358 (3,437,122,356)
D) Net (decrease)/ increase in cash (A+B+C) 2,498,612,757 (507,263,373)
E) Effects of exchange rate changes on cash and cash-equivalents 922,561 1,147,434
F) Opening cash and cash-equivalents 8,531,606,279 9,037,722,218
G) Closing cash and cash-equivalents (D+E+F) 41(a) 11,031,141,597 8,531,606,279

These financial statements should be read in conjunction with the annexed notes from 1 to 43.

Chairman Director Director Managing Director & CEO

Annual Report 2014 79


NCC Bank Limited and its Subsidiaries
Consolidated Statement of Changes in Equity
For the year ended on 31 December 2014

Other Non-
Paid up Statutory General reserve-assets controlling
F.C. Translation Retained Total
Particulars Capital Reserve Reserve revaluation (Minority) gain/(Loss) earnings
reserve Interest
Taka Taka Taka Taka Taka Taka Taka Taka

Balance at 1st January 2014 7,646,909,130 4,283,417,675 10,162,348 450,761,512 215 910,171 889,752,897 13,281,913,948

Annual Report 2014


Depreciation on revaluation of properties - - (3,514,878) - - 3,514,878 -
Revaluation of Govt. securities (treasury bills/

80
bonds) HFT made during the year - - - - - - - -
Surplus/(deficit) on account of revaluation of Govt. -
securities (treasury bills/bonds) HTM & HFT
transferred to income A/C - - - 37,615,685 - - - 37,615,685
Currency translation gain/(loss) - - - - - 1,485,538 - 1,485,538
Net gains and losses not recognized in the
income Statement - - - - - - - -
Minority interest - - - - - - - -
Bonus share for the year 2013 382,345,450 - - - - - (382,345,450) -
Net profit for the year - - - - - - 1,494,682,198 1,494,682,198
Transfer to statutory reserve - 500,095,692 - - - - (500,095,692) -
Cash Dividend for the year 2013 - - - - - - (458,814,548) (458,814,548)
Balance at 31 December 2014 8,029,254,580 4,783,513,367 10,162,348 484,862,319 215 2,395,709 1,046,694,283 14,356,882,821
Balance at 31 December 2013 7,646,909,130 4,283,417,675 10,162,348 450,761,512 215 910,171 889,752,897 13,281,913,948

Chairman Director Director Managing Director & CEO


NCC Bank Limited
Balance Sheet
As at 31 December 2014

31.12.2014 31.12.2013 01.01.2013


Notes
PROPERTY AND ASSETS Taka Taka Taka
Cash 5 8,612,160,908 7,875,262,621 7,732,385,281
In hand (including foreign currencies) 1,173,484,082 1,256,477,852 1,139,317,553
Balance with Bangladesh Bank and its agent bank (s) 7,438,676,826 6,618,784,769 6,593,067,728
(including foreign currencies)

Balance with other banks and financial institutions 6 2,407,581,410 656,757,606 1,316,317,832
In Bangladesh 468,186,926 328,019,533 1,087,904,404
Outside Bangladesh 1,939,394,484 328,738,073 228,413,428

Money at call and short notice 7 - - -

Investments 8 26,568,661,762 19,908,322,002 30,851,738,163


Government 25,241,572,158 18,352,194,148 29,282,775,027
Others 1,327,089,604 1,556,127,854 1,568,963,136

Loans and advances 9 90,920,772,028 88,167,205,831 79,948,220,174


Loans, cash credits, overdrafts, etc. 88,739,476,147 86,363,661,614 77,821,560,088
Bills purchased & discounted 2,181,295,881 1,803,544,217 2,126,660,086

Fixed assets including premises,


furnitures and fixtures 10 2,573,252,105 1,736,637,982 1,743,585,434
Other assets 11 4,077,095,326 5,698,510,026 4,249,255,937
Non-banking assets - - -
TOTAL ASSETS 135,159,523,539 124,042,696,069 125,841,502,821

LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial
institutions and agents 12 4,975,525,649 2,763,533,530 9,444,527,760

Deposits and other accounts 13 105,703,614,110 98,229,442,528 96,918,222,155


Current deposits and other accounts 9,548,821,441 8,086,739,211 8,603,924,747
Bills payable 13.1 2,038,624,517 1,319,767,208 1,612,347,002
Savings bank deposits 12,989,595,636 11,167,226,439 9,832,750,729
Fixed deposits 45,696,085,137 47,844,992,750 53,745,227,785
Term deposits 35,430,487,379 29,810,716,920 23,123,971,892

Other liabilities 14 10,130,694,248 9,779,884,197 7,342,935,755


TOTAL LIABILITIES 120,809,834,007 110,772,860,255 113,705,685,670
Shareholders' equity
Paid up capital 15.2 8,029,254,580 7,646,909,130 6,951,735,580
Statutory reserve 16 4,783,513,367 4,283,417,675 3,818,042,032
General reserve 17 10,162,348 10,162,348 10,162,348
Other reserve-assets revaluation reserve 18 484,862,319 450,761,512 469,729,455
Foreign currency translation gain/(Loss) 18.3 (276,637) 2,518 -
Surplus in profit and loss account 19 1,042,173,555 878,582,631 886,147,736
TOTAL SHAREHOLDERS' EQUITY 14,349,689,532 13,269,835,814 12,135,817,151
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 135,159,523,539 124,042,696,069 125,841,502,821

Annual Report 2014 81


31.12.2014 31.12.2013 01.01.2013
Notes
CONTRA ENTRIES Taka Taka Taka

Off balance sheet items:


Contingent liabilities
Acceptances and endorsements 20.1 11,771,729,896 12,350,769,134 13,284,505,289
Letters of guarantee 20.2 10,779,508,225 6,148,244,590 5,670,935,938
Letters of credit issued 20.3 10,082,145,954 7,725,862,083 5,000,442,176
Bills for collection 20.4 295,242,380 3,894,651 796,376
Other contingent liabilities :
Claims against the bank not acknowledged as debt - - -
Capital commitments - - -
Export development fund (EDF) 169,424,989 7,028,000 175,796,000
TOTAL OFF BALANCE SHEETS ITEMS 33,098,051,444 26,235,798,458 24,132,475,779

These financial statements should be read in conjunction with the annexed notes from 1 to 43.

Chairman Director Director Managing Director & CEO

See annexed auditor's report to the Shareholders of the date.

Dated,Dhaka ACNABIN
06 May 2015 Chartered Accountants

Annual Report 2014 82


NCC Bank Limited
Profit and Loss Account
For the year ended on 31 December 2014
2014 2013
Notes
Taka Taka

Interest income 22 12,019,784,168 12,194,098,472


Less: Interest paid on deposits and borrowings 23 9,339,227,961 10,154,704,915
Net interest income 2,680,556,207 2,039,393,557
Income from investments 24 2,672,992,807 2,801,832,887
Commission, exchange and brokerage 25 834,641,525 912,440,311
Other operating income 26 344,308,980 319,522,236
Total operating income 6,532,499,519 6,073,188,991
Salary and allowances 27 1,738,691,455 1,424,775,370
Rent, taxes, insurance, electricity etc. 28 282,526,645 244,398,065
Legal expenses 29 19,889,646 14,798,420
Postage, stamp, telecommunication etc. 30 28,109,335 27,104,240
Stationery, printing, advertisement etc. 31 70,819,994 77,635,840
Managing Directors salary and allowances 32 9,204,354 8,880,000
Directors' fees 33 1,770,000 1,495,000
Audit fees 34 150,000 150,000
Depreciation and repair of bank's assets 35 379,621,342 334,539,782
Other expenses 36 254,914,885 240,598,299
Total operating expense 2,785,697,656 2,374,375,016
Profit before provisions 3,746,801,863 3,698,813,975
Provision for loans and advances 1,092,979,734 1,141,940,806
Specific provision 14.5(a) 1,039,908,407 1,094,516,092
General provision 14.5(b) 53,071,327 47,424,714
Provision for off-balance sheet exposures 14.6 70,600,398 18,442,091
Provision for off-shore banking unit 14.7 3,500,493 206,965
Provision for investment fluctuation in shares 8.3 54,242,778 176,914,132
Provision for other assets 14.2 - 14,431,768
Total provisions 1,221,323,403 1,351,935,762
Profit after provision for loans & advances & other provisions 2,525,478,460 2,346,878,213
Contribution to NCC Bank Foundation 14.9 25,000,000 20,000,000
Profit before tax 2,500,478,460 2,326,878,213
Provision for tax 14.4 999,149,242 1,189,031,038
Current tax 869,355,654 1,204,981,256
Deferred tax 14.4.1 129,793,588 (15,950,218)
Profit after tax for the year 1,501,329,218 1,137,847,175
Balance of profit brought forward from last year 19.1 37,425,151 199,626,621
Total profit available for distribution 1,538,754,369 1,337,473,796
Appropriations:
Statutory reserve 500,095,692 465,375,643
General reserve - -
500,095,692 465,375,643
Retained earnings carried forward 19 1,038,658,677 872,098,153
Earnings per share (EPS) 42 1.87 1.42

These financial statements should be read in conjunction with the annexed notes from 1 to 43.

Chairman Director Director Managing Director & CEO


See annexed auditor's report to the Shareholders of the date.

Dated,Dhaka ACNABIN
06 May 2015 Chartered Accountants

Annual Report 2014 83


NCC Bank Limited
Cash Flow statement
For the year ended on 31 December 2014
2014 2013
Notes
Taka Taka
A) Cash flows from operating activities

Interest received in cash 13,856,121,608 13,920,237,656


Interest paid by cash (8,247,206,366) (10,460,272,015)
Dividend received 56,865,596 206,640,973
Fees & commission received in cash 635,300,980 627,760,212
Recoveries of loans previously written off 11,873,927 12,368,154
Cash paid to employees (1,637,625,260) (1,335,979,655)
Cash paid to suppliers (240,668,501) (327,673,255)
Income taxes paid (723,735,054) (1,320,176,856)
Received from other operating activities 37 1,088,702,191 1,571,233,700
Paid for other operating activities 38 (649,409,327) (461,483,100)
Operating profit before changes in operating assets and liabilities 4,150,219,794 2,432,655,814
Increase/(decrease) in operating assets & liabilities
Purchase-sale of trading securities (6,768,186,210) 10,854,926,679
Loans and advances to other banks - -
Loans and advances to customers ( Other than Banks) (2,753,566,197) (8,218,985,657)
Other assets 39 678,522,199 (293,438,054)
Deposits/ borrowings from other Banks 230,010,213 (3,043,871,876)
Deposits from customers ( Other than Banks) 7,362,171,583 1,111,220,373
Other liabilities account of customers (1,647,261,072) (124,005,338)
Other liabilities 40 510,172,099 367,972,623
Net cash received from operating activities 1,762,082,409 3,086,474,564

B) Cash flows from investing activities


Proceeds from sale of securities 262,380,301 384,562,060
Payment for purchase of Securities (169,933,754) (410,705,562)
Purchase of property, plant and equipment (988,389,850) (149,337,917)
Sales proceeds of fixed assets 5,841,490 9,574,675
Net cash used in investing activities (890,101,813) (165,906,744)

C) Cash flows from financing activities


Borrowings from other bank's , financial institutions and agents 2,093,981,906 (3,437,122,354)
Dividend paid in cash (458,814,548) -
Net cash received from financing activities 1,635,167,358 (3,437,122,354)

D) Net increase/(decrease) in cash (A+B+C) 2,507,147,954 (516,554,534)


E) Effects of exchange rate changes on cash and cash-equivalents (276,637) 2,518
E) Opening cash and cash-equivalents 8,517,457,401 9,034,009,417
G) Closing cash and cash-equivalents (D+E+F) 41 11,024,328,718 8,517,457,401

These financial statements should be read in conjunction with the annexed notes from 1 to 43.

Chairman Director Director Managing Director & CEO

Annual Report 2014 84


NCC Bank Limited
Statement of Changes in Equity
For the year ended on 31 December 2014

Paid up Statutory General Other Retained


F.C. Translation Total
reserve-assets
Particulars Capital Reserve Reserve revaluation reserve gain/(Loss) earnings
Taka Taka Taka Taka Taka Taka Taka

Balance at 1st January 2014 7,646,909,130 4,283,417,675 10,162,348 450,761,512 2518 878,582,631 13,269,835,814
Depreciation on revaluation of properties - - - (3,514,878) - 3,514,878 -
Revaluation of Govt. Securities (treasury bills/bonds)
HFT made during the year - - - - - - -
Surplus/(deficit) on account of revaluation of Govt.
securities (treasury bills/bonds) HTM & HFT
transferred to income A/C - - - 37,615,685 - - 37,615,685
Currency translation differences - - - - (276,637) - (276,637)
Net gains and losses not recognized in the - -
income statement - - - - - - -
Bonus share for the year 2013 382,345,450 - - - - (382,345,450) -
Net profit for the year - - - - - 1,501,329,218 1,501,329,218
Appropriations during the year
Transfer to statutory reserve - 500,095,692 - - - (500,095,692) -
Cash Dividend for the year - - - (458,814,548) (458,814,548)
Balance at 31 December 2014 8,029,254,580 4,783,513,367 10,162,348 484,862,319 (276,637) 1,042,173,555 14,349,689,532
Balance at 31 December 2013 7,646,909,130 4,283,417,675 10,162,348 450,761,512 2,518 878,582,631 13,269,835,814

Chairman Director Director Managing Director & CEO

Annual Report 2014


85
NCC Bank Limited
Liquidity Statement
( Asset and Liability Maturity Analysis)
As at 31 December 2014
Amount in Taka

"Not more than 1-3 months term 3-12 months term 1-5 years term Above 5-years Total
Particulars 1 month term" term
Assets:
Cash in hand 1,173,484,082 - - - - 1,173,484,082

Annual Report 2014


"Balances with other banks

86
and financial institutions" 2,782,663,019 - - - 7,063,595,217 9,846,258,236
Money at call & short notice - - - - - -
Investments 2,008,202,315 826,915,409 2,276,429,665 10,267,604,816 11,189,509,557 26,568,661,762
Loans & advances 15,510,652,045 19,536,439,633 26,781,203,143 17,816,400,961 11,276,076,246 90,920,772,028
Fixed assets including land, building, .
furniture & fixtures - - 143,325,505 416,904,179 2,013,022,422 2,573,252,105
Other assets 168,800,631 360,969,156 1,074,556,052 170,758,555 2,302,010,932 4,077,095,326
Non-banking assets - - - - - -
Total assets 21,643,802,092 20,724,324,198 30,275,514,365 28,671,668,511 33,844,214,374 135,159,523,539
Liabilities:
Borrowing from other banks, financial
institutions & agents 1,766,986,059 87,515,470 221,926,457 1,010,309,020 1,888,788,643 4,975,525,649
Deposits 16,028,608,399 23,699,602,570 23,391,340,830 24,237,651,715 16,307,786,079 103,664,989,593
Bills payable 2,038,624,517 - - - - 2,038,624,517
Provision & other liabilities 839,709,930 409,189,299 3,790,128,822 3,496,043,552 1,595,622,645 10,130,694,248
Total liabilities 20,673,928,905 24,196,307,339 27,403,396,109 28,744,004,287 19,792,197,368 120,809,834,007
Net liquidity gap 969,873,187 (3,471,983,141) 2,872,118,256 (72,335,776) 14,052,017,006 14,349,689,532

Net result of the liquidity statement represents the 'shareholders' equity' of the bank.

Chairman Director Director Managing Director & CEO


NCC Bank Limited & Its Subsidiaries
Notes to the Financial Statements
As at and for the year ended on 31 December 2014

1.1 Status of the Bank

The National Credit and Commerce Bank Limited (NCCBL) was formed as a public limited banking company
incorporated in Bangladesh with primary objective to carry on all kinds of banking business in and outside
Bangladesh.

The registered office of the Bank is located at NCC Bank Bhaban, 13/1-2 Toyenbee Circular Road, Motijheel
Commercial Area, Dhaka-1000 (Previously the registered office situated at 7-8 Motijheel C/A, Dhaka-1000). It
commenced its banking business with 16 branches from May 17, 1993 under the license issued by Bangladesh Bank.
Presently the Bank has 103 branches all over Bangladesh and 02 (Two) booths at Uttara Model Town, Uttara, Dhaka
and Maniknagar, North Golapbagh, Dhaka. The bank has no overseas branch as at 31 December 2014. It carries out
all banking activities through it branches in Bangladesh. The Bank went for initial public offering in 1999 and its share
is listed with Dhaka and Chittagong Stock Exchange Limited as a publicly traded company.

1.1.1 Principal activities

The principal activities of the Bank are to provide all kinds of commercial banking services to its customers through
its branches.

1.1.2 Offshore Banking Units

Offshore Banking Unit (OBU) is a separate business unit of NCC Bank Limited governed under the rules and guidelines
of Bangladesh Bank. The Bank obtained permission for operation of offshore banking units located at Foreign
Exchange Branch & Agrabad Branch vide Bangladesh Bank letter no. BRPD (P-3)744(113)/2010-1648 dated 02 May
2010. The Bank commenced the operation of its offshore banking units from 26 August 2013 at Foreign Exchange
branch, Dhaka and operation of OBU located at Agrabad branch, Chittagong will be started within very soon. Separate
financial statements of offshore banking units are shown in Annexure-N.

1.1.3 Information regarding subsidiary:

The Bank has 03 (Three) Subsidiary companies as on December 31, 2014.

1.1.3.1 NCCB Securities and Financial Services Limited

NCCB Securities and Financial Services Limited is a Subsidiary Company of NCC Bank Limited incorporated as a
Private Limited Company on April 04, 2010 with the Registrar of Joint Stock Companies and Firms vide certificate of
incorporation no.C-83683/10 dated April 04, 2010 under the Companies Act-1994. NCCBSFSL commenced its
operation from March 07, 2011. The Main objective of the company is to act as a full fledged Stock Broker & Stock
Dealer to execute buy and sell order and to maintain own portfolio as well as customers portfolio under the discretion
of customers. The company also performs the other activities relates to Capital Market as and when regulators permit
the company to carry out activities as per their guidelines. Financial statements of 2014 of the company are shown in
Annexure-O

1.1.3.2 NCCB Capital Limited (NCCBCL)

NCCB Capital Limited (NCCBCL) is a Subsidiary Company of NCC Bank Limited incorporated as a Private Limited
Company on April 01, 2010 with the Registrar of Joint Stock Companies and Firms vide certificate of incorporation
no.C-83649/10 dated April 01, 2010 under the Companies, Act-1994. The Main objective of the company is to provide
fledged merchant banking services like issue management, underwriting, advisory services & as and when regulators
permits the company to carry out activities as per their guidelines. NCCBCL was not in operation till December 31,
2014. Financial statements of the company are shown in Annexure-P

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1.1.3.3 NCCB Exchange (UK) Limited

NCCB Exchange (UK) Limited is a fully owned Subsidiary Company, incorporated as a Private Limited company with
the Registrar of Companies for England and Wales under registration no. 7669773 dated June 14, 2011. NCC Bank
Limited got permission from Bangladesh Bank vide letter no. BRPD/(M)204/28/2011-123 dated June 13, 2011 for
opening a fully owned subsidiary company with two branches at London and Birmingham in UK. NCCB Exchange
(UK) Limited obtained Money Laundering registration on July 28, 2011 issued by HM Revenue & Customs. The
Company got registration from Financial Services Authority (FSA) vide reference no PSD/557817 dated October 26,
2011 to carry on payment services activities under the Payment Services Regulations 2009 (PRSs). Financial
Statements of the company are shown in Annexure-Q

2 Significant accounting policies and basis of preparation of financial statements

2.1 Basis of accounting

The financial statements namely, Balance Sheet, Profit and Loss Accounts, Cash Flow Statement, Statement of
Changes in Equity, Liquidity Statement and relevant notes and disclosures thereto, of the Bank are prepared on a
going concern basis under the historical cost convention, and in accordance with First Schedule of the Banking
Companies Act 1991, as amended, BRPD circular no. 14 of 25 June 2003, other Bangladesh Bank circulars,
International Accounting Standards, and International Financial Reporting Standards adopted in Bangladesh as
Bangladesh Accounting Standards (BAS), and Bangladesh Financial Reporting Standards (BFRS) as adopted by the
Institute of Chartered Accountants of Bangladesh, the Companies Act 1994, the Bangladesh Securities and Exchange
Rules 1987. Wherever appropriate, such principles are explained in succeeding notes.

Statement of compliance

The financial statements of the Bank are prepared in accordance with Bangladesh Financial Reporting Standards
(BFRS) and the requirements of the Bank Companies Act 1991, the rules and regulations issued by Bangladesh Bank,
the Companies Act 1994, Securities and Exchange Rules 1987. In case any requirement of the Bank Companies Act
1991, and provisions and circulars issued by Bangladesh Bank differ with those of BFRS, the requirements of the
Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bank shall prevail. Material departures
from the requirements of BFRS are as follows:

i) Investment in shares and securities

BFRS: 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 year-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 cost.

ii) Revaluation gains/losses on Government securities

BFRS: As per requirement of BAS 39 where securities will fall under the category of Held for Trading (HFT), any
change in the fair value of held for trading assets is recognized through profit and loss account. Securities designated
as Held to Maturity (HTM) are measured at amortized cost method and interest income is recognized through the
profit and loss account.

Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains on revaluation
of securities which have not matured as at the balance sheet date are recognized 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

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profit and loss account. Interest on HFT securities including amortization of discount are recognized in the profit and loss
account. HTM securities which have not matured as at the balance sheet date are amortized at the year end and gains or losses
on amortization are recognized in other reserve as a part of equity.

iii) Provision on loans and advances/investments

BFRS: 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 that are not individually significant,
the assessment can be performed on an individual or collective (portfolio) basis.

Bangladesh Bank: As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012), BRPD
circular No. 05 (29 May 2013) and BRPD circular No.16 (18 November 2014) 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 loans, doubtful loans and bad losses has to be provided at 5% to 20%, 5% to
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 and BRPD circular no. 14 dated 23 September 2012, 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.

iv) Recognition of interest in suspense

BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per BAS 39 and interest income
is recognized through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is
recognized 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 recognized 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.

v) Other comprehensive income

BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OCI are to
be included in a single Other Comprehensive Income 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 neither include Other Comprehensive Income nor are the
elements of Other Comprehensive Income allowed to be included in a single Other Comprehensive Income (OCI) Statement.
As such the Bank does not prepare the other comprehensive income statement. However, elements of OCI, if any, are shown
in the statements of changes in equity.

vi) Financial instruments presentation and disclosure

In several cases Bangladesh Bank guidelines categorize, recognize, measure and present financial instruments differently from
those prescribed in BAS 39. As such full disclosure and presentation requirements of BFRS 7 and BAS 32 cannot be made in
the financial statements.

vii) Financial guarantees

BFRS: 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 letter of credit, letter of guarantee will be treated as
off-balance sheet items. No liability is recognized for the guarantee except the cash margin.

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viii) Cash and cash equivalent

BFRS: 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 on short notice, treasury bills,
Bangladesh Bank bills and prize bond are not shown as cash and cash equivalents. Money at call on short notice
presented on the face of the balance sheet, and treasury bills, prize bonds are shown in investments.

ix) Non-banking asset

BFRS: No indication of Non-banking asset is found in any BFRS.

Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.

x) Cash flow statement

BFRS: The Cash flow statement can be prepared using either the direct method or the 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 methods.

xi) Balance with Bangladesh Bank: (Cash Reserve Requirement)

BFRS: 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.

xii) Presentation of intangible asset

BFRS: An intangible asset must be identified and recognized, and the disclosure must be given as per BAS 38.

Bangladesh Bank: There is no regulation for intangible assets in BRPD 14.

xiii) Off-balance sheet items

BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for disclosure of
off-balance 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 on the face of the balance sheet.

xiv) Loans and Advances/Investments net of provision

BFRS: Loans and advances/Investments should be presented net of provision.

Bangladesh Bank: As per BRPD 14, provision on loans and advances/investments are presented separately as liability
and cannot be netted off against loans and advances.

2.2 Basis of consolidation

The Consolidated Financial Statements include the financial statements of NCC Bank Limited and its subsidiary
companies NCCB Securities and Financial Services Limited, NCCB Capital Limited & NCCB Exchange (UK) Limited
made up to the end of the 31 December 2014. The consolidated financial statements have been prepared in
accordance with Bangladesh Accounting Standards 27-Consolidated & Separate Financial Statements. The
Consolidated Financial Statements are prepared to common financial year ending 31 December 2014.

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Subsidiary

Subsidiary is that enterprise controlled by the bank. Control exists when the Bank has the power, directly and
indirectly, to govern the financial and operating policies of an enterprise from the date that control commences until
the date that control ceases. The financial statements of subsidiary are included in the consolidated financial
statements from the date that the control effectively commences until the date that it control effectively ceases.
Subsidiary company is consolidated using the purchase method of accounting. The conversion policy for assets and
liabilities & income and expense items of NCCB Exchange (UK) Limited using closing exchange rate and average
exchange rate respectively.

Transactions eliminated on consolidation

All intra-group transactions, balances, income and expenses are eliminated on consolidation. Profit and loss resulting
from transactions is also eliminated on consolidation.

2.3 Use of estimates and judgments

In the preparation of financial statements, management requires to make judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised and in any future periods affected.

2.4 Functional and presentation currency

The financial statements are presented in Bangladeshi Taka which is the bank's functional currency except as
indicated.

2.5 Foreign currency transaction/translation

a) Foreign currencies transaction/translation

Foreign currency transactions are converted into equivalent taka using the ruling exchange rates on the dates of
respective transactions as per BAS-21 The Effects of Changes in Foreign Exchange Rates. Assets and liabilities in
foreign currencies at 31 December 2014 have been converted into Taka currency at the average of the prevailing
buying and selling rates of the relevant foreign currencies at that date except "Balances with other Banks and Financial
Institutions" which have been converted as per directives of Bangladesh Bank vide its circular no. BRPD(R)
717/2004-959 dated 21 November 2004.

b) Commitments

Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies
are expressed in Taka terms at the rates of exchange ruling on the balance sheet date.

c) Translation gains and losses

The resulting exchange transaction gains and losses are included in the profit and loss account, except those arising
on the translation of net investment in foreign subsidiary.

d) Consolidation of financial statements of foreign operations

Consolidation, foreign exchange differences arising from the translation of net investments in foreign entities are
taken into capital reserve. When a foreign operation is disposed of, such currency translation differences are
recognized in the income statement as part of the gain or loss on disposal.

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2.6 Cash flow statement

Cash flow statement has been prepared in accordance with the BRPD Circular No. 14, dated June 25, 2003 issued by
the Banking Regulation & Policy Department of Bangladesh Bank. It reported cash flows during the period classified
by operating activities, investing activities and financing activities.

2.7 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 bases.

i) Balance with other banks and financial institutions, money at call and short notice, etc. are shown 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.

2.8 Reporting period

These financial statements cover for the period from 01 January to 31 December 2014.

2.9 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 recognized amounts and there is an intention to settle on a net basis, realize the
asset and settle the liability simultaneously.

2.10 Assets and basis of their valuation

2.10.1 Cash and cash equivalents

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and
highly liquid financial asset which are subject to insignificant risk of changes in their fair value and are used by the
bank management for its short-term commitments.

2.10.2 Loans and advances

a) Loans and advances are stated in the balance sheet on gross basis.

b) Interest is calculated on a daily product basis but charged on quarterly basis and accounted for on accrual basis.
Interest on classified loans and advances are kept in suspense account as per Bangladesh Bank instructions and such
interest is not accounted for as income until realized from borrowers [please refer Note- 9.10 (x)]. Interest is not
charged on bad and loss loans as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in
separate memorandum accounts.

c) Provision for loans and advances is made on the bases of quarter-end review by the management following
instructions contained in Bangladesh Bank BCD Circular no. 34 dated 16 November 1989, BCD Circular no. 20 dated
27 December 1994, BCD Circular no. 12 dated 4 September 1995, BRPD Circular 16 dated 6 December 1998, BRPD
Circular no. 9 dated 14 May 2001, BRPD Circular no. 09 of August 2005 and BRPD Circular no.17 dated 06 December 2005,

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BRPD Circular no.32 dated 27 October 2010, BRPD Circular no.14 dated 23 September 2012 and BRPD Circular
no.19 dated 27 December 2012, BRPD Circular no.5 dated 29 May 2013 BRPD Circular no.16 dated 18 November
2014. The provision rates are given below:
Particulars Rate
General provision on unclassified loans and advances
Standard general loans and advances 1%
Standard Small & Medium enterprise Financing 0.25%
Standard loans to Merchant Banking/BHs/SDs 2%
Std. Housing Fin. and loans for professional to set up a business 2%
Standard Consumers loan Scheme other than HF and LP 5%
Standard Short term Agri and Micro credit 2.50%
Special Mention Account general Loans and advances 1%
Special mention account Small & Medium enterprise Financing 0.25%
Special mention account loans to BHs/MBs/Sds 2%
Special mention account HF and LP 2%
Special mention account Consumer's loan scheme other than HF & LP 5%
Specific provision on classified loans and advances
Substandard (Agri & Micro credit) 5%
Doubtful (Agri & Micro credit) 5%
Substandard 20%
Doubtful 50%
Bad or Loss 100%
d) Loans and advances with no realistic prospect of recovery have been written off against which full provisions made
and legal cases initiated. Detailed memorandum records for all such written off accounts are maintained.

2.10.3 Investments

All investment securities are initially recognized 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 methods 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. These investments are
subsequently measured at present value as per Bangladesh Bank guideline. Investments in securities have been
revalued as mark to market as at December 31, 2014. The gain of revaluation from the held to maturity securities has
been shown in the statement of changes in equity of December 31, 2014.

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 recognized 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 guidelines. 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 follow:
Item Applicable accounting value
Government treasury bills-HTM Amortized value
Government treasury bills-HFT Market value
Government treasury bonds-HTM Amortized value
Government treasury bonds-HFT Market value
Prize bonds At cost

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Investment in listed securities:

These securities are bought and held primarily for the purpose of selling them in future or held for dividend income.
Unrealized gains are not recognized in the profit and loss account. But provision for diminution in value of investment
is provided in the financial statements which market price is below the cost price of investment (Note-8.3).

Investment in unquoted securities

Investment in unquoted securities is reported at cost under cost method. Adjustment is given for any shortage of
book value over cost for determining the carrying amount of investment in unquoted securities.

Investment in subsidiary

Investment in subsidiary is accounted for under the cost method of accounting in the Banks financial statements in
accordance with the BAS-27. Accordingly Investment in subsidiary is stated in the Banks Balance Sheet at cost, less
impairment losses if any.

2.10.4 Property, plant and equipment

Recognition and measurement

All fixed assets except land and buildings/apartments are stated at historical cost and land and Building/Apartments
at revalued amount (whenever applicable) 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 assets to its working condition for its intended use inclusive of inward freight, duties and non refundable
taxes.

Subsequent cost:

The cost of replacing part of such an item of fixed assets is recognized in the carrying amount of an item of property,
plant and equipment if it is probable that the future economic benefits embodied with the part will flow to the company
and the cost of the item can be measured reliably. The cost of day to day servicing of fixed asset is recognized in profit
and loss as incurred.

Depreciation:

Depreciation is charged for the year at the following rates on reducing balance method on all fixed assets other than
vehicles and software on which straight line depreciation method is followed and no depreciation is charged on land:

Category of fixed assets Rate of depreciation


Land Nil
Building/apartment & structure 2.50%
Furniture & fixture 10.00% to 20.00%
Office equipment & machineries 20.00%
Vehicles (straight line) 20.00%

a) For additions during the year, depreciation is charged for the remaining days of the period and for disposal
depreciation is charged up to the date of disposal.

b) 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 profit and loss account which is determined with reference to
the net book value of the assets and net sale proceeds.

2.10.5 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 assets can be measured reliably.

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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.
c) Software is amortized using the following method and rates:

Category of intangible assets Rate of amortization


Software (straight line) 20.00%

2.10.6 Other assets

a) Provision for other assets

Other assets have been classified as per BRPD circular no. 14 dated 25.06.2001 of Bangladesh Bank and necessary
provisions made thereon accordingly and for item not covered under the circular adequate provision have been
made considering their recoverability.

2.10.7 Securities purchased under re-sale agreement

Securities purchase under re-sale agreements are treated as collateralized lending and recorded at the consideration
paid and interest accrued thereon. The amount lent is shown as an asset either as loans and advances to customers
or loans to other banks.

The difference between purchase price and resale price is treated as interest received and accrued evenly over the
life of REPO agreement.

2.10.8 Receivables

Receivables are recognized when there is a contractual right to receive cash or another financial asset from another
entity.

2.10.9 Inventories

Inventories are measured at cost.

2.10.10 Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risk and
rewards of ownership to the lessee as per BAS-17 Lease.

The bank as lessor

Amount due from lessees under finance leases are recorded as receivables at the amount of the Banks Loans and
Advances in the leases.

The bank as lessee

The Bank has no assets under finance or operating Leases.

2.10.11 Non-banking assets

There are no assets acquired in exchange for loan during the year of financial statements.

2.11 Reconciliation of inter-bank and inter-branch account

Accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled regularly and there are

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no material differences which may affect the financial statements significantly.

Un-reconciled entries / balances in case of inter-branch transaction as on the reporting date are not material.

2.12 Share capital

Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial
assets.

2.13 Statutory reserve

Bank Companies Act, 1991 (Amendment up to 2013) requires the bank to transfer not less than 20% of its current
period profit before tax to reserve until such reserve equals to its paid up capital.

2.14 Revaluation reserve

When an assets carrying amount is increased as a result of a revaluation, the increased amount credited directly
to equity under the heading of revaluation surplus/reserve as per BAS-16: Property, Plant and Equipment. The
Bank revalued the assets of Land and Buildings which is absolutely own by the Bank and the increased amount
transferred to revaluation reserve.

2.15 Minority interest in subsidiary

Minority interest in business is an accounting concept that refers to the portion of a subsidiary corporations stock
that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is
always less than 50% of outstanding shares; else the corporation would cease to be a subsidiary of the parent.
Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owing
company to reflect the claim on assets belonging to other, non-controlling shareholders. Also, minority interest is
reported on the consolidated income statement as a share of profit belonging to minority shareholders.

2.16 Deposits and other accounts

Deposits by customers and banks are recognized when the bank enters into contractual provisions of the
arrangements with the counterparties, which is generally on trade date, and initially measured at the consideration
received.

2.17 Borrowings from other banks, financial institutions and agents

Borrowed fund include call money deposits, borrowings, re-finance borrowings and other term borrowings from
banks. They are stated in the balance sheet at amounts payable. Interest paid/payable on these borrowings is
charged to the income statements.

Disclosures on borrowings against REPO are shown in Annexure-J

2.18 Basis for valuation of liabilities and provisions

2.18.1 Provision for taxation

The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the
Profit & Loss Account because it excludes items of income or expense that are taxable or deductible. The Bank's
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the date of
Balance Sheet.

Provision for current income tax has been made @ 42.5% on accounting profit made by the Bank after considering
some of the add backs of income and disallowances of expenditure as per Income Tax Ordinance 1984.

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2.18.2 Deferred taxation

Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary
differences. Deferred tax assets are the amount of income taxes recoverable in future periods in respect of
deductible temporary differences. Deferred tax assets and liabilities are recognized for the future tax consequences
of timing difference arising between the carrying values of assets, liabilities, income and expenditure and their
respective tax bases. Deferred tax assets & liabilities are measured using tax rates and tax laws that have been
enacted or substantially enacted at the balance sheet date. The impact on the account of changes in the deferred tax
assets and liabilities has also been recognized in the profit and loss account as per BAS -12 Income Taxes.

Disclosures on Deferred taxes are shown in note-14.4.1.

2.18.3 Retirement benefits to the employees

The retirement benefits accrued for the employees of the bank as on reporting date have been accounted for in
accordance with the provisions of BAS-19 Employee Benefits. The bank operates retirement benefits scheme for
its permanent employees. Elements of which are as under:

a) Provident fund

Provident fund benefits are given to the permanent employees of the bank in accordance with banks service rules.
Accordingly a trust of deed and provident fund rules were prepared. The Commissioner of Income Tax, Taxes
Zone-04, 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 16.01.1992. The fund is operated by a Board of Trustees consisting 06 (six) members. All confirmed
employees of the bank are contributing 10% of their basic salary as subscription to the fund. The bank also
contributes 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 has operated funded gratuity fund which was approved by National Board of Revenue on 17.09.2009. The
fund is operated Board of Trustees. Provision in respect of which is made annually covering all its permanent eligible
employees as per BAS-19 Employee Benefits.

c) Superannuation fund

The bank operates an employees Superannuation Fund Trust by a separate Board of Trustees consisting of 05 (Five)
members. The death-cum survival benefits are given to the employees as per the eligibility narrated in the Trust
Rules. The fund got recognition from the National Board of Revenue (NBR) effect from 01.01.2004 under the section
3 and 4 of part A of First Schedule of Income Tax Ordinance 1984. The bank contributes to the fund annually as per
Superannuation Fund Rules of the bank.

d) Benevolent Fund

NCCBL employees benevolent fund was established in the year 2007 for the welfare of the distressed employees
and their dependents. The employees of the bank contribute to the fund at a rate applicable for each grade from their
monthly salary.

2.18.4 Provision for liabilities

A provision is recognized in the balance sheet when the bank has a legal or constructive obligation of a result of a
past event and it is probable that an outflow of economic benefit will be required to settle the obligation in
accordance with the BAS-37 Provisions, Contingent Liabilities and Contingent Assets.

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2.18.5 Provision for Off-balance sheet items

Off-balance sheet items have been disclosed under contingent liabilities and other commitments as per Bangladesh
guidelines. As per BRPD Circular no.10 dated September 18, 2007 & BRPD Circular no.14 dated September 23,
2012, Banks are advised to maintain provision @ 1.00% against Off-balance sheet exposure in addition to the
existing provisioning arrangement.

2.18.6 Provision for NOSTRO accounts:

As per instructions contained in the circular letter no. FEPD (FEMO)/01/2005-677 dated September 13, 2005 issued
by Foreign Exchange Policy Department of Bangladesh Bank, Banks are required to make provision regarding the
un-reconciled debit balance of NOSTRO account over more than three months as on the reporting date in these
financials. Since there are no un-reconciled entries which are outstanding more than three months then Banks are
not required to make provision.

2.19 Revenue recognition

2.19.1 Interest income

In terms of the provision of the BAS-18 Revenue the interest income is recognized on accrual basis. Interest on
loans and advances ceases to be taken in to income when such advances are classified. It is than kept in interest
suspense in a memorandum account. Interest on classified loans and advances is accounted for on a cash receipt
basis.

2.19.2 Investment income

Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is also
included in investment income. Capital gain is recognized when it is realized.

2.19.3 Fees and commission income

Fees and commission income arises on services provided by the bank are recognized on a cash received basis.
Commission charged to customer on letters of credit and letters of guarantee is credited to income at the time of
effecting the transactions.

2.19.4 Dividend income on shares

Dividend income is recognized when shareholders' right to receive is established.

2.19.5 Interest paid and other expenses

In terms of the provisions of BFRS, interest and other expenses are recognized on accrual basis.

2.19.6 Dividend payments

Interim dividends are recognized when they are paid to shareholders. Final dividend is recognized when it is
approved by the shareholders.

Dividend payable to the banks shareholders are recognized as a liability and deducted from the shareholders equity
in the period in which the shareholders right to receive the payment is established.

2.20 Risk management

The risk of the Bank may be defined as the possibility of losses, financial or otherwise. The risk management of the
Bank covers 06 core risks i.e. Credit Risk, Internal Control & Compliance Risk, Money Laundering Risk, Asset
Liability Management Risk (Balance Sheet Risk), Foreign Exchange Risk and Information Technology Risk. As a part
of risk management, adequate capital is maintained against Credit Risk, Market Risk and Operational Risk under

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Basel-II accord. Under the second pillar of Basel-II, a Supervisory Review Process (SRP) team has been formed to
review, monitor and maintain adequate capital considering all relevant risks. Quarterly Stress Testing is conducted
to assess the impact of different risks associated with banking business on asset, liability & ultimately on capital and
the report is submitted before the Board of Directors and to Bangladesh Bank regularly. The prime objective of the
risk management is that the bank evaluates and takes well calculative business risks and there by safeguarding the
banks capitals, its financial resources and profitability from various business risks through its own measures and
through implementing Bangladesh Bank guidelines and following some of the best practices as under:

2.20.1 Credit Risk

It arises mainly from lending, trade finance, and leasing and treasury business. This can be described as potential
loss arises 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 of decline in his or her financial condition there for 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 now 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
assets 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 is shown in Note 14.5 (a).

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 starts at Corporate Credit 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 at executives. Proposals beyond
their delegation are approved / declined by the Executives Committee and / or the Management of the Bank. 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 policies. Loans are
classified as per Bangladesh Banks guidelines. Concentration of single borrower/large loan limit is shown in
Annexure-C.

2.20.2 Foreign Exchange Risk

Foreign exchange risk is defined as the potential change in earning 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 Banks 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 Mark-to-Market rate as determined by Bangladesh Bank at the month-end. All NOSTRO accounts are
reconciled on a monthly basis and the management for its settlement reviews outstanding entry beyond 30 days.
The position maintained by the bank at the end of day was within the stipulated limit prescribed by the Bangladesh
Bank.

2.20.3 Asset Liability Management

The Assets Liability Committee (ALCO) of the Bank monitors Market risk and liquidity risks of the bank. The Market
risk is defined as potential charge in earnings due to change in rate of interest, foreign exchange rates which are not
of trading nature. ALCO reviews liquidity requirement of the Bank, the maturity of assets and liabilities, deposit and
lending, pricing strategy and the liquidity contingence plan. The primary objective of the ALCO is to monitor and
avert significant volatility in Net Interest Income (NII), investment value and exchange earnings.

Annual Report 2014 99


2.20.4 Money Laundering Risk

Money Laundering Risk arises from non-compliance of money laundering related instructions of the regulatory
body. It's consequence are dire & far reaching and may be in the form of financial penalty, reputation loss, legal
harassment and even the risk of sustainability. Weakness in money laundering prevention and combating terrorist
financing may lower the image of the Bank in local & global environment. It may also reduce the confidence of the
stakeholders. For involvement in money laundering & terrorist financing, the regulatory bodies may impose
restrictions in expansion of business and Bank may lose the market share. Banks around the globe may be unwilling
to establish correspondent banking relationship if money laundering prevention and combating financing terrorism
status are not up to the mark. The following initiatives have been taken by our Bank to comply with the requirements
of Bangladesh Bank:

Central Compliance Unit (CCU) at Head Office and Branch Compliance Unit (BCU) at branch level have been
formed headed by Chief Anti-Money Laundering Compliance Officer (CAMLCO) and Branch Anti-Money
Laundering Compliance Officer (BAMLCO) respectively.

Policy Guideline on Anti Money Laundering (AML) and Combating Financing Terrorism (CFT) has been
revised & updated complying with Bangladesh Banks instruction & circulars/circular letters.

Uniform Account Opening Form was introduced where KYC is a must. As per Money Laundering Prevention
Act-2012, Bangladesh Bank instruction and BFIU master circular no. 10; branches have been instructed to
obtain full & accurate information of the clients while establishing banking relationship.

Actual transactions are compared with Transaction Profile (TP) to identify abnormal and suspicious
transaction(s).

Branch incumbents are always responsible for ongoing monitoring of Account Transactions & matching
given data with the transactions or activity. Branches identified Suspicious Transaction by transaction
symptoms & generate STR and send to CCU-AML, Head Office. After investigate & evaluate then sends
Suspicious Transaction Report (STR) directly to BFIU of Bangladesh Bank using goAML web software and
manually as per article 7 of BFIU master circular 10 & Bangladesh Banks Instruction within short time.

Branch generates monthly Cash Transaction Report (CTR) for threshold amount Tk. 10 lacs & above both
for FIU Software & goAML Software filing up the mandatory fields within given deadline. Central Compliance
Unit on verification & compilation sends XmL Cash Transaction Report (CTR) directly to BFIU of Bangladesh
Bank using goAML web software and CD as per article 6 of BFIU master circular 10 & Bangladesh Banks
Instruction.
In accordance with the instructions of BFIU, Banks provide the information of customer account within the
mentioned time limit in the issued letter. If any account / amount are freeze bank confirms the same
immediately to BFIU.

Customers are graded on the basis of risk. High risk customers are closely monitored and Enhanced Due
Diligence is applied in this case.

Self Assessment is done by the branches and a summary report is prepared and submitted to the
Management and Bangladesh Bank half yearly basis.

Independent Testing Procedure is done while conducting audit in the branches. The same is summarized
and placed before the Management and Bangladesh Bank half yearly basis."

As per article 3.2, 3.7, 3.8 & 3.9 of Bangladesh Bank's BFIU Circular No. 10, dated 28 December 2014,
branches have been instructed to apply Enhance Due Diligence (EDD) in opening & maintaining accounts of
Politically Exposed Persons (PEPs), Influential Persons (IPs), their family members and close associates.

Apart from Independent Testing Procedures, 50 branches have been inspected in the year 2014 on money
laundering prevention and combating financing terrorism.

Annual Report 2014 100


Extensive training is being continuously imparted to the officials of the Bank to make them familiar with
money laundering prevention & combating financing terrorism and to mitigate the risk arising there from.
In the year 2014, total 469 officials were provided training on Anti Money Laundering & Combating
Financing Terrorism through outreach workshop. Our Training Institute is also arranging training/ workshop
on the issue on regular basis.

Up to the year 2014 total 29 circulars of former Anti-Money Laundering Department and 10 circulars of
present Bangladesh Financial Intelligent Unit (BFIU) of Bangladesh Bank have been disseminated to
Bangladeshi all schedule banks for compliance.

Recently BFIU of Bangladesh Bank issued BFIU Circular No.10; Dated 28 December 2014 lifted Master
Circular. Total AMLD & BFIU Circular {except AML Circular No.10, (Cash Transaction Reporting form), AML
Circular No. 22, BFIU Circular No.02, BFIU Circular No.07 & BFIU Circular letter-1} are compiled &
accumulated making BFIU master circular no. 10 for all schedule Banks. Central Compliance Unit
(CCU-AML) of Head Office has disseminated the same through by instruction circular to the branches for
compliance.

Quarterly meeting of Central Compliance Unit (CCU) and Monthly meeting of Branch Compliance Unit (BCU)
are arranged and the decisions are gradually implemented.

Before establishing correspondent banking relationship, status on money laundering prevention and
combating financing terrorism of the respondent banks are obtained through a questionnaire developed by
Bangladesh Bank. Correspondent banking relationships with any bank is established upon receipt of the
desired information and subject to our satisfaction pursue by article 3.10 of BFIU master circular no 10.

As a precautionary measure and as per instruction of Central Bank, we do not establish Correspondent
Banking relationship with any shell bank or any bank having banking relationship with any shell bank.

Screening Mechanism is strictly followed for every customer and especially any foreign transactions like
import, export, foreign remittance, foreign guarantee & correspondent banking relationship through System
software procured by the bank.

Records of Accounts, supporting documents, Transactions, Instruments /vouchers & records of Walk in
Customers are maintained for all operating accounts & above documents are always maintained at least for
5 (five) years after closes of the account.

2.20.5 Internal Control and Compliance

Operational loss may arise from error and fraud due to lack of internal control and compliance. Management through
internal control and compliance Division controls operational procedure of the Bank. Internal control and compliance
division undertakes periodical and special audit of the branches and departments at Head Office for review of the
operation and compliance of statutory requirement. The Audit Committee of the Board subsequently reviews the
reports of the internal control and compliance division.

2.20.6 Information technology

NCCBL follows the guideline stated in BRPD Circular no. 14 dated 23 October 2005 regarding Guideline on
Information and Communication Technology for Scheduled Banks.

IT management deals with IT policy documentation, internal IT audit, training and insurance.

IT operation management covers the dynamics of technology operation management including change
management, assets management and operating environment procedures management. The objective is to achieve
the highest levels of technology service quality by minimum operational risk.

Physical security involves providing environmental safeguards as well as controlling physical access to equipment
and data.

Annual Report 2014 101


In order to ensure that information assets are protected against risk, there are controls over:

a) Password
b) User ID maintenance
c) Input
d) Network security
e) Data encryption
f) Virus protection
g) Internet and e-mail

The Business Control Plan (BCP) is formulated to cover operational risk and taking into account the potential for
wide area disasters, data center disasters and the recovery plan. The BCP takes into account the backup and
recovery process.

2.20.7 Market Risk:

Interest rate risk

Interest rate risk may arise either from trading portfolio and 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 market value of equities is lesser than cost
price against which provision is appearing made in these financial statements.

2.20.8 Reputation risk arising from money laundering incidences

Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in
prevention of money laundering. For mitigating the risks, the bank has a designated Chief Compliance officer at Head
office and Compliance officers at branches, who independently review the transactions of the accounts to verify
suspicious transactions. Manuals for prevention of money laundering have been established and transaction profile
has been introduced. Training is continuously given to all the category of Officers and Executives for developing
awareness and skill for identifying suspicious activities / transactions.

2.20.9 Operational risk

Operational risk may arise from error and fraud due to lack of internal control and compliance. Management through
internal control and compliance division controls operational procedure of the Bank. Internal Control and compliance
division undertakes periodical and special audit of the branches and departments at the Head Office for review of the
operation and compliance of statutory requirements. The Audit Committee of the Board subsequently reviews the
reports of the internal control and compliance division.

2.21 Earnings per share

Basic earnings per share

Basic earnings per share have 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 earning by the
weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share

No diluted earning per share is required to be calculated for the period as there was no scope for dilution during the
year under review.

Annual Report 2014 102


2.22 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. Stock of Travelers Cheques (TC), Saving
Certificates and other fall under the memorandum items.

2.23 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS):

The Institute of Chartered Accountants of Bangladesh (ICAB) is the Official Standard setting body as well as the
regulator of accounting profession in the country. ICAB has adopted most of the International Accounting Standards
(IASs) and International Financial Reporting Standards (IFRSs) as Bangladesh Accounting Standards (BASs) and
Bangladesh Financial Reporting Standards (BFRSs). While preparing the financial statements, NCC Bank has applied
all the applicable of BASs & BFRSs for preparation and presentation of financial statements except described in note
no.2.1 as noted below:

Name of the BAS BAS no. Status


Presentation of Financial Statements 1 Not Applied*
Inventories 2 Applied
Cash Flow Statements 7 Not Applied*
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the Balance Sheet Date 10 Applied
Construction Contracts 11 Not applicable
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Leases 17 Applied
Revenue 18 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance 20 Not applicable
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Not applicable
Accounting and Reporting by Retirement Benefit Plans 26 Not applicable
Consolidated and Separate Financial Statements 27 Applied
Accounting for Investments in Associates 28 Not applicable
Financial Reporting of Interest in Joint Ventures 31 Not applicable
Financial Instruments: Presentation 32 Not Applied*
Earnings Per Share 33 Applied
Interim Financial Reporting 34 Applied
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Financial Instruments: Recognition and Measurement 39 Not Applied*
Investment Property 40 Applied
Agriculture 41 Not applicable

Name of the BFRS BFRS no. Status


First time adoption 1 Not applicable
Share Based Payment 2 Not applicable
Business Combinations 3 Not applicable
Insurance Contract 4 Not applicable
Non-current Assets Held for Sale and Discontinued Operations 5 Not applicable
Exploration for and Evaluation of Mineral Resources 6 Not applicable
Financial Instruments: Disclosure 7 Not Applied*

Annual Report 2014 103


Name of the BFRS BFRS no. Status
Operating Segments 8 Applied
Financial Instruments-R&M 9 Not yet adopted
but under review
Consolidated Financial Statements 10 Applied
Joint Arrangements 11 Not applicable
Disclosure of interest in other entities 12 Not applicable
Fair Value Measurement 13 Not applicable

* The above BAS and BFRS are not applied due to compliance of the Banking Companies Act 1991, Rules and
regulations and instructions issued by Bangladesh Bank time to time.

2.24 Regulatory and legal compliance

The Bank complied with the requirements of following regulatory and legal authorities:

a) The Banking Companies Act 1991 (Amended up to 2013);


b) The Companies Act 1994;
c) Rules and regulations issued time to time by Bangladesh Bank;
d) The Bangladesh Securities and Exchange Rules 1987, The Bangladesh Securities and Exchange Ordinance
1969, The Securities and Exchange Commission Act 1993, The Bangladesh Securities and Exchange
Commission (Public Issue) Rules 2006;
e) The Income Tax Ordinance 1984;
f) The VAT Act 1991;
g) Other laws & regulations as applicable.

2.25 Information about business Segments

Segments information is presented in respect of the groups business.

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 Offshore Banking Unit, Investment
Services (NCCBSFSL & NCCBCL) and Remittance (NCCB Exchange (UK) Limited. Business segment report shown in
Annexure-M

Geographical segments

Geographical segments report consists of products and services within a particular economic environment where risk
and returns are different from those of other economic environments. These segments comprise of NCC Bank Limited,
Offshore Banking Unit, NCCB Securities and Financial Services Limited, NCCB Capital Limited & NCCB Exchange (UK)
Limited. Geographical segments reports are shown in Annexure-M.

Inter segment transactions generally based on inter branch fund transfer measures as determined by the
management. Income, expenses, assets, liabilities are specifically identified with individual segments. Based on such
allocation segment balance sheet as on 31 December 2014 and segment profit and loss account for the year ended 31
December 2014 have been prepared.

2.26 Events after the balance sheet date

Events after the balance sheet date that provide additional information about the banks position at the balance sheet
date are reflected in the financial statements. Events after the balance sheet date are not adjusting event are disclosed
in the notes when material.

Annual Report 2014 104


2.27 Related Party disclosure shown in Annexure- I

2.28 Assets pledge as security

The bank has secured liability as mentioned in notes 12.03 and there was assets pledge as securities against
liabilities.

2.29 Credit rating of the bank

Last seven years Credit Ratings of our Bank are given below:
Year Date of Rating Long term Short Term Rating conducted by
2013 30.06.2014 AA AR-2 Alpha Credit Rating Limited
2012 30.06.2013 AA- AR-2 Alpha Credit Rating Limited
2011 24.05.2012 AA3 ST-2 Credit Rating Agency of
2010 23.06.2011 A1 ST-2 Bangladesh Limited (CRAB)
2009 24.06.2010 A1 ST-2
2008 29.06.2009 A2 ST-2
2007 09.06.2008 A2 ST-3

2.30 BASEL II implementation

The BASEL Committee on Banking Supervision has published a new framework for calculating minimum capital
requirement, known as Basel II. The new guideline is structured around three pillars: (i) minimum capital
requirement (on credit risk, market risk and operation risk), (ii) supervisory review process and (iii) market discipline.
Implementation of Basel II framework in Bangladesh will integrate the risk management process of the Bank and its
capital adequacy requirement. Bangladesh Bank has formed a National Steering Committee and Coordination
Committee for implementation of BASEL II in Bangladesh. As per the Committee decision BASEL II has been fully
implemented in Bangladesh from January 2011. The National Steering Committee has indicated that following
methodology of BASEL II would be followed in Bangladesh:

I. Standardized method for credit and market risk.


II. Basic indicator approach for operational risk.
III. Internal Ratings Base for credit risk has been applied from 2012 where prior permission from Bangladesh Bank
would be required.

2.31 The Banks compliance with related pronouncements by Bangladesh Bank:

a) Internal Control

The objective of internal control is to ensure that management has reasonable assurance that (a) operations are
effective, efficient and aligned with strategy, (b) financial reporting and management information is reliable, complete
and timely accessible, (c) the entity is in compliance with applicable laws and regulations as well as its internal
policies and ethical values including sustainability, and (d) assets of the company are safeguarded and frauds & errors
are prevented or detected.

National Credit and Commerce 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.

Annual Report 2014 105


The Board of Directors of NCC Bank Limited, 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.

b) Internal Audit

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 and 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 NCC Bank Limited. Internal
Audit Activity of NCC Bank Limited 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 discussed in the meetings of the Audit Committee of the Board and necessary steps have been
taken according to the decision of the Committee for correct functioning of Internal Controls & Compliance.

c) Fraud & Forgeries

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. NCC Bank does
always pay due attention on anti-fraud 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 of effectiveness of
controls at the end of each quarter following their prescribed format. During the year 2014, 2 (Two) instances of
frauds were identified and reported to Bangladesh Bank. Total amount related to those frauds is Taka 109.91 lac
(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.

2.32 In the year 2013, Off-shore Banking unit was not incorporated in the financial statements due to an error. In the year
2014, the error was identified and it was incorporated in the financial statements. In order to comply with Bangladesh
Accounting Standard (BAS)-8 "Accounting Policies, Changes in Accounting Estimates and Errors", it requires to
restate the following items and to incorporate these in the financial statements:

Annual Report 2014 106


31.12.2014 31.12.2013 01.01.2013
Notes
Taka Taka Taka

Balance with other banks and financial institutions : 6

In Bangladesh 468,186,926 328,019,533 1,087,904,404

Outside Bangladesh
Balance stated in Previous year 1,939,394,484 343,628,415 228,413,428
Adjustment for overstated of balance in Habib Metropolitan Bank - (14,890,342) -
Restated balance of 2013 for comparison as on 31.12.2014 1,939,394,484 328,738,073 228,413,428
2,407,581,410 656,757,606 1,316,317,832

Consolidated balance with other banks


and financial institutions: 6(a)

In Bangladesh
NCC Bank Limited 468,186,926 328,019,533 1,087,904,404
NCCB Securities and Financial Services Limited 9,444,174 13,969,580 923,956
NCCB Capital Limited 271,032,940 271,044,320 257,006,262
NCCB Exchange (UK) Limited - - -
748,664,040 613,033,433 1,345,834,622
Less: Intercompany transactions
Balance stated in Previous year 277,130,441 271,044,320 257,006,262
Adjustment - 301,643 -
Restated balance of 2013 for comparison as on 31.12.2014 277,130,441 271,345,963 257,006,262
Restated balance of 2013 for comparison as on 31.12.2014 471,533,599 341,687,470 1,088,828,360

Outside Bangladesh

NCC Bank Limited:


Balance stated in Previous year 1,939,394,484 343,628,415 228,413,428
Adjustment for overstated of balance in Habib Metropolitan Bank - (14,890,342) -
Restated balance of 2013 for comparison as on 31.12.2014 1,939,394,484 328,738,073 228,413,428
NCCB Securities and Financial Services Limited - - -
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited 3,465,575 179,280 2,788,845
Restated balance of 2013 for comparison as on 31.12.2014 1,942,860,059 328,917,353 231,202,273
Restated balance of 2013 for comparison as on 31.12.2014 2,414,393,658 670,604,823 1,320,030,633

Loans and Advances 9


In Bangladesh
Loans, Cash Credits, Overdrafts etc. 88,739,476,147 86,363,661,614 77,821,560,088
Bills Purchased and Discounted :
In Bangladesh 1,749,385,406 1,719,414,409 2,022,236,157

Outside Bangladesh
Balance stated in Previous year 431,910,475 63,433,308 104,423,929
Adjustment for Off-shore banking unit - 20,696,500 -
Restated balance of 2013 for comparison as on 31.12.2014 431,910,475 84,129,808 104,423,929
Restated balance of 2013 for comparison as on 31.12.2014 90,920,772,028 88,167,205,831 79,948,220,174

Consolidated loans and advances 9 (a)

Loans, cash credits, overdrafts etc.:


NCC Bank Limited 88,739,476,147 86,363,661,614 77,821,560,088
NCCB Securities and Financial Services Limited. 4,607,372,304 4,514,072,239 4,224,253,670
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
93,346,848,451 90,877,733,853 82,045,813,758

Annual Report 2014 107


31.12.2014 31.12.2013 01.01.2013
Notes
Taka Taka Taka

Less : Intercompany transactions 1,761,631,457 1,890,840,821 1,759,360,429


91,585,216,994 88,986,893,032 80,286,453,329
Bills purchased and discounted:
NCC Bank Limited:
Balance stated in Previous year 2,181,295,881 1,782,847,717 2,126,660,086
Adjustment for Off-shore banking unit - 20,696,500 -
Restated balance of 2013 for comparison as on 31.12.2014 2,181,295,881 1,803,544,217 2,126,660,086
NCCB Securities and Financial Services Limited. - - -
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
Restated balance of 2013 for comparison as on 31.12.2014 2,181,295,881 1,803,544,217 2,126,660,086
Less : Inter transactions - - -
2,181,295,881 1,803,544,217 2,126,660,086
Restated balance of 2013 for comparison as on 31.12.2014 93,766,512,875 90,790,437,249 82,413,113,415

Other assets 11

Balance stated in Previous year 4,077,095,326 5,689,537,290 4,249,255,937


Adjustment for wrongly charged in NCC Bank Capital Limited - 8,652,435 -
Adjustment for Off-shore banking unit - 320,301 -
Restated balance of 2013 for comparison as on 31.12.2014 4,077,095,326 5,698,510,026 4,249,255,937

Consolidated other Assets 11(a)


NCC Bank Limited:
Balance stated in Previous year 1,793,386,326 3,414,215,490 1,999,243,080
Adjustment for wrongly charged in NCC Bank Capital Limited - 8,652,435 -
Adjustment for Off-shore banking unit - 320,301 -
Restated balance of 2013 for comparison as on 31.12.2014 1,793,386,326 3,423,188,226 1,999,243,080
NCCB Securities and Financial Services Limited 218,703,243 171,669,733 115,614,475
NCCB Capital Limited 4,957,284 3,724,126 6,672,814
NCCB Exchange (UK) Limited 794,603 842,336 861,761
2,017,841,456 3,599,424,421 2,122,392,130
Less: Intercompany transaction 3,577,757 2,344,599 166,855,071
Restated balance of 2013 for comparison as on 31.12.2014 2,014,263,699 3,597,079,822 1,955,537,059

Borrowing from other banks, financial institutions and agents 12

Balance stated in Previous year 4,975,525,649 2,757,729,890 9,444,527,760


Adjustment for overstated of balance in Habib Metropolitan Bank - (14,890,342) -
Adjustment for Off-shore banking unit - 20,693,982 -
Restated balance of 2013 for comparison as on 31.12.2014 4,975,525,649 2,763,533,530 9,444,527,760

Consolidated borrowing from other banks,


financial institutions and agents 12 (a)

NCC Bank Limited:


Balance stated in Previous year 4,975,525,649 2,757,729,890 9,444,527,760
Adjustment for overstated of balance in Habib Metropolitan Bank - (14,890,342) -
Adjustment for Off-shore banking unit - 20,693,982 -
Restated balance of 2013 for comparison as on 31.12.2014 4,975,525,649 2,763,533,530 9,444,527,760
NCCB Securities and Financial Services Limited 1,811,631,457 1,890,840,821 1,890,840,821
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
Restated balance of 2013 for comparison as on 31.12.2014 6,787,157,106 4,654,374,351 11,335,368,581
Less: intercompany transactions 1,761,631,457 1,890,840,821 1,890,840,821
Restated balance of 2013 for comparison as on 31.12.2014 5,025,525,649 2,763,533,530 9,444,527,760

Annual Report 2014 108


31.12.2014 31.12.2013 01.01.2013
Notes
Taka Taka Taka

Consolidated deposits and other accounts 13 (a)

Current deposits and other accounts

NCC Bank Limited 9,548,821,441 8,086,739,211 8,603,924,747


NCCB Securities and Financial Services Limited 31,722,794 28,851,135 25,949,165
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
9,580,544,235 8,115,590,346 8,629,873,912
Less: Intercompany transactions
Balance stated in Previous year 277,130,441 271,044,320 499,075
Adjustment - 301,643 -
Restated balance of 2013 for comparison as on 31.12.2014 277,130,441 271,345,963 499,075
Restated balance of 2013 for comparison as on 31.12.2014 9,303,413,794 7,844,244,383 8,629,374,837
Other liabilities 14

Balance stated in Previous year 10,130,694,248 9,779,505,380 7,342,935,755


Adjustment for Off-shore banking unit - 378,817 -
Restated balance of 2013 for comparison as on 31.12.2014 10,130,694,248 9,779,884,197 7,342,935,755

Consolidated other liabilities 14(a)


NCC Bank Limited:
Balance stated in Previous year 10,130,694,248 9,779,505,380 7,342,935,755
Adjustment for Off-shore banking unit - 378,817 -
Restated balance of 2013 for comparison as on 31.12.2014 10,130,694,248 9,779,884,197 7,342,935,755
NCCB Securities and Financial Services Limited 1,003,449,532 793,475,264 579,311,387
NCCB Capital Limited 17,648,110 16,173,814 10,071,090
NCCB Exchange (UK) Limited:
Balance stated in Previous year 7,723,411 6,626,514 26,735,880
Adjustment for exchange rate - 39,375 -
Restated balance of 2013 for comparison as on 31.12.2014 7,723,411 6,665,889 26,735,880
Restated balance of 2013 for comparison as on 31.12.2014 11,159,515,301 10,596,199,164 7,959,054,112
Less: Intercompany transactions 3,577,757 2,344,599 166,855,071
Restated balance of 2013 for comparison as on 31.12.2014 11,155,937,549 10,593,854,568 7,792,199,041

Statutory reserve 16

Balance stated in Previous year 4,783,513,367 4,283,429,378 3,818,042,032


Profit Adjustment for Off-shore banking unit - (11,703) -
Restated balance of 2013 for comparison as on 31.12.2014 4,783,513,367 4,283,417,675 3,818,042,032
Surplus in profit and loss account 19
Retained earnings brought forward from previous year 878,582,630 886,147,736 1,605,182,608
Adjustment for translation gain/(loss) 2,518 - -
Adjustment for NCCB Capital Ltd. - 8,652,436 -
878,585,148 894,800,172 1,605,182,608
Profit for the year:
Balance stated in Previous year 1,501,329,218 1,137,905,691 1,433,761,000
Adjustment for wrong treatment - - -
Adjustment for Off-shore banking unit - (58,516) -
Restated balance of 2013 for comparison as on 31.12.2014 1,501,329,218 1,137,847,175 1,433,761,000
Transfer to statutory reserve:
Balance stated in Previous year (500,095,692) (465,387,346) (548,549,207)
Profit Adjustment for Off-shore banking unit - 11,703 -
Adjustment for wrong treatment - - -
Restated balance of 2013 for comparison as on 31.12.2014 (500,095,692) (465,375,643) (548,549,207)

Annual Report 2014 109


31.12.2014 31.12.2013 01.01.2013
Notes
Taka Taka Taka

Transferred to general reserve - - -


Transferred from general reserve - - -
Bonus share transferred to paid-up capital (382,345,450) (695,173,550) (1,010,081,230)
Cash dividend paid (458,814,548) - (594,165,435)
Dep.on revalued amount of building Trans. to retained earnings 3,514,878 6,484,477 -
(837,645,120) (688,689,073) (1,604,246,665)
Restated balance of 2013 for comparison as on 31.12.2014 1,042,173,555 878,582,631 886,147,736

Consolidated surplus in profit and loss account 19(a)


Retained earnings brought forward from previous year 889,752,897 894,666,660 1,634,931,826
Adjustment for translation gain/(loss) - (124,155) -
Adjustment for NCCB Capital Ltd. - 8,652,435 -
889,752,897 903,194,940 1,634,931,826
Profit for the year:
Balance stated in Previous year 1,494,682,198 1,141,588,850 1,450,030,718
Adjustment for Off-shore banking unit - (56,002) -
Restated balance of 2013 for comparison as on 31.12.2014 1,494,682,198 1,141,532,848 1,450,030,718
General reserve - - -
Interim dividend - - -
Transfer to statutory reserve:

Balance stated in Previous year (500,095,692) (465,387,346) (548,549,207)


Profit Adjustment for Off-shore banking unit - 11,703 -
Adjustment for wrong treatment - - -
Restated balance of 2013 for comparison as on 31.12.2014 (500,095,692) (465,375,643) (548,549,207)
Bonus share transferred to paid-up capital (382,345,450) (695,173,550) (1,010,081,230)
Cash dividend paid (458,814,548) - (631,665,435)
Dep.on revalued amount of building Trans. to retained earnings 3,514,878 6,484,477 -
Exchange gain for translation to reporting currency separately treated - (910,174) -
Less: Minority Interest - (2) (12)
Restated balance of 2013 for comparison as on 31.12.2014 1,046,694,283 889,752,897 894,666,660

Interest income 22

Balance stated in Previous year 12,019,784,168 12,193,950,023 1,638,407,298


Adjustment for Off-shore banking unit - 148,449 -
Restated balance of 2013 for comparison as on 31.12.2014 12,019,784,168 12,194,098,472 11,638,407,298

Consolidated interest income 22(a)


NCC Bank Limited:
Balance stated in Previous year 12,019,784,168 12,193,950,023 11,668,753,555
Profit Adjustment for Off-shore banking unit - 148,449 -
Restated balance of 2013 for comparison as on 31.12.2014 12,019,784,168 12,194,098,472 11,668,753,555
NCCB Securities and Financial Services Limited 251,905,890 466,086,881 407,211,611
NCCB Capital Limited - 10,854,216 12,540,501
NCCB Exchange (UK) Limited - - -
Restated balance of 2013 for comparison as on 31.12.2014 12,271,690,058 12,671,039,569 12,088,505,667
Less: Intercompany transactions 269,353,226 277,731,180 -
Restated balance of 2013 for comparison as on 31.12.2014 12,002,336,832 12,393,308,389 12,088,505,667

Commission, exchange and brokerage 25

Balance stated in Previous year 834,641,525 887,936,921 849,067,537


Transfer from other operating income - 24,503,390 -
Restated balance of 2013 for comparison as on 31.12.2014 834,641,525 912,440,311 849,067,537

Annual Report 2014 110


31.12.2014 31.12.2013 01.01.2013
Notes
Taka Taka Taka
Consolidated commission, exchange & brokerage 25(a)
NCC Bank Limited:
Balance stated in Previous year 834,641,525 887,936,921 849,067,537
Transfer from other operating income - 24,503,390 -
Restated balance of 2013 for comparison as on 31.12.2014 834,641,525 912,440,311 849,067,537
NCCB Securities and Financial Services Limited 102,173,092 102,914,461 139,465,640
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited 5,674,031 2,710,515 275,633
Restated balance of 2013 for comparison as on 31.12.2014 942,488,648 1,018,065,287 988,808,810

Other operating income 26

Balance stated in Previous year 344,308,980 344,025,626 295,503,924


Transfer to Commission, exchange and brokerage - (24,503,390) -
Restated balance of 2013 for comparison as on 31.12.2014 344,308,980 319,522,236 295,503,924

Consolidated other operating income 26(a)

NCC Bank Limited:


Balance stated in Previous year 344,308,980 344,025,626 295,503,924
Transfer to Commission, exchange and brokerage - (24,503,390) -
Restated balance of 2013 for comparison as on 31.12.2014 344,308,980 319,522,236 295,503,924
NCCB Securities and Financial Services Limited 3,412,269 4,773,187 1,807,673
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited - - -
Restated balance of 2013 for comparison as on 31.12.2014 347,721,249 324,295,423 297,311,597

Other expenses 36

Balance stated in Previous year 254,914,885 240,598,299 362,213,245


Adjustment for Off-shore banking unit - - -
Restated balance of 2013 for comparison as on 31.12.2014 254,914,885 240,598,299 362,213,245

Consolidated other expenses 36(a)

NCC Bank Limited 254,914,885 240,598,299 362,213,245


NCCB Securities and Financial Services Limited 16,194,627 14,676,463 24,119,918
NCCB Capital Limited 21,572 31,142 59,557
NCCB Exchange (UK) Limited:
Balance stated in Previous year 9,568,562 11,645,587 10,135,004
Adjustment for Off-shore banking unit - (4,024,551) -
Restated balance of 2013 for comparison as on 31.12.2014 9,568,562 7,621,036 10,135,004
Restated balance of 2013 for comparison as on 31.12.2014 280,699,646 262,926,940 396,527,724

Cash paid for other operating activities 38

Balance stated in Previous year 649,409,327 464,352,482 563,398,580


Adjustment - (2,869,382) -
Restated balance of 2013 for comparison as on 31.12.2014 649,409,327 461,483,100 563,398,580

Consolidated cash paid for other operating activities 38(a)

NCC Bank Limited:


Balance stated in Previous year 649,409,327 464,352,482 563,398,580
Adjustment - (2,869,382) -
Restated balance of 2013 for comparison as on 31.12.2014 649,409,327 461,483,100 563,398,580
NCCB Securities and Financial Services Limited 33,170,531 30,755,551 42,856,352

Annual Report 2014 111


31.12.2014 31.12.2013 01.01.2013
Notes
Taka Taka Taka

NCCB Capital Limited 21,572 2,874,382 3,820,880


NCCB Exchange (UK) Limited 14,865,870 13,631,579 10,442,214
Restated balance of 2013 for comparison as on 31.12.2014 697,467,300 508,744,612 620,518,026

Cash and cash equivalents 41

Balance stated in Previous year 11,024,328,718 8,532,347,743 9,034,009,417


Adjustment for Off-shore banking unit - (14,890,342) -
Restated balance of 2013 for comparison as on 31.12.2014 11,024,328,718 8,517,457,401 9,034,009,417

Consolidated cash and cash equivalents 41(a)

NCC Bank Limited:


Balance stated in Previous year 11,024,328,718 8,532,347,743 9,034,009,417
Adjustment for Off-shore banking unit - (14,890,342) -
Restated balance of 2013 for comparison as on 31.12.2014 11,024,328,718 8,517,457,401 9,034,009,417
NCCB Securities and Financial Services Limited 3,347,304 13,969,598 923,956
NCCB Capital Limited - - -
NCCB Exchange (UK) Limited 3,465,575 179,280 2,788,845
Restated balance of 2013 for comparison as on 31.12.2014 11,031,141,597 8,531,606,279 9,037,722,218

3 Audit committee

The Audit committee of the Board of Directors of the Bank formed in accordance with Bangladesh Banks BRPD circular No. 11
dated 27 October 2013 and SEC Notification no. SEC/CMRRCD/2006-158/129/Admin/44 dated August 7, 2012 on corporate
Governance, the current committee is constituted with the following members of the Board as on 31 December 2014:

Sl. Status with the Educational


No. Name Status with the Bank committee qualifications
1. Mr. Md. Amirul Islam, FCS, FCA Independent Director Chairman B.Com. (Hons), M.Com., DAIBB, FCS, FCA
2. Mr. A.S.M. Main Uddin Monem Vice Chairman Member MBA, Harvard Business School
3. Mr. Md. Abul Bashar Director Member B.S. (MIS), USA
4. Mr. Khairul Alam Chaklader Director Member B.Com.
5. Mr. K. A. M. Haroon Independent Director Member B.Sc.Engg.

During the period, the Audit committee of the Board conducted 17 (Seventeen) meetings in which the important issues were
discussed/reviewed. (Refer to the report of the Board Audit committee for details).

4 General
4.1 Number of employees

Number of employees at December 31, 2014 was 2266; (2013:2192) who were in receipt of remuneration for that year which
in the aggregate was not less than Tk. 36,000 per annum and those employed for a part of that year who were also in receipt
of remuneration of not less than Tk.3,000 per Month.

4.2 Figures appearing in these Financial Statements have been rounded off to the nearest Taka.

Previous years figures, whenever considered necessary, have been rearranged and restated in order to conform to current
years presentation.

Stock of Travelers Cheques, Shanchaya patras are not reflected as Off-balance Sheet items in the Financial Statements.

Annual Report 2014 112


2014 2013
Taka Taka
5 Cash

Cash in hand ( Including foreign currencies)


Conventional banking
Local currency 1,150,806,056 1,239,628,662
Foreign Currencies 22,678,026 16,849,190
1,173,484,082 1,256,477,852
Off-shore banking unit - -
1,173,484,082 1,256,477,852
Balance with Bangladesh Bank and its agent bank (s)

Conventional banking
Local currency 7,044,521,827 6,203,540,036
Foreign currencies 136,572,051 229,620,281
7,181,093,878 6,433,160,317
Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )-note 5.1 257,582,948 185,624,452
7,438,676,826 6,618,784,769
Off-shore banking unit - -
7,438,676,826 6,618,784,769
8,612,160,908 7,875,262,621
5.1 Sonali Bank Ltd. as agent of Bangladesh Bank ( Local Currency )
Cox's bazar branch 19,999,018 11,721,317
Feni branch 27,084,519 41,919,351
Laxmipur branch 23,019,074 18,276,848
Moulvibazar branch 7,932,546 7,630,611
Jessore branch 647,363 25,182,846
Chaumuhani branch 121,334 1,159,369
Madaripur branch 6,529,721 319,285
Chakaria branch 1,948,378 1,368,419
Comilla branch 1,127,549 7,241,496
Joydevpur branch 80,841 463,866
Mymensingh branch 47,331,431 22,904,061
Tangail branch 36,692,445 3,691,803
Naogaon branch 13,753,606 5,926,839
Kushtia branch 10,225,381 6,351,906
Narayangonj branch 2,404,313 1,715,327
Brahmanbaria branch 20,391,300 18,047,431
Narsingdi branch 13,543,097 4,853,378
Maijdee branch 1,683,444 755,275
Dinajpur branch 23,067,588 6,095,024
257,582,948 185,624,452

5.2 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)

Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in
accordance with the Section 33 of the Banking Companies Act 1991, DOS circular no.01 dated 19 January 2014 and
MPD circular no. 01 dated 23 June 2014. The cash reserve requirement of the Bank's based on time and demand
liabilities @ of 6.50% has been calculated and maintained with Bangladesh Bank in current account and 13%
Statutory Liquidity ratio on same liabilities has also been maintained in the form of treasury bills, treasury bonds and
debenture including FC balance with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the
statutory requirements as shown below:

Annual Report 2014 113


2014 2013
Taka Taka
5.3 Cash Reserve Requirement (CRR):

Required reserve 7,005,473,940 5,967,664,070


Actual reserve held 7,044,521,827 6,203,540,036
Surplus/ (deficit) 39,047,887 235,875,966

5.4 Statutory Liquidity Ratio ( SLR):

Required reserve 14,010,947,890 12,929,938,810


Actual reserve held 22,307,283,383 19,543,515,545
Surplus/ (deficit) 8,296,335,493 6,613,576,735

Total required reserve 21,016,421,830 18,897,602,880


Actual reserve held 29,351,805,210 25,747,055,581
Total surplus 8,335,383,380 6,849,452,701

The Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained for the year
2013 in accordance with the Section 33 of the Bank Companies Act 1991 and MPD circular nos.05 dated
01 December 2010.

5(a) Consolidated cash

Cash in hand

NCC Bank Limited (Note-5 ) 1,173,484,082 1,256,477,852


NCCB Securities and Financial Services Limited 631 18
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,173,484,713 1,256,477,870
Balance with Bangladesh Bank and its agent bank(s)

NCC Bank Limited (Note-5 ) 7,438,676,826 6,618,784,769


NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
7,438,676,826 6,618,784,769
8,612,161,539 7,875,262,639
6 Balance with other banks and financial institutions :

In Bangladesh (Note -6.1 )


Conventional banking 468,186,926 328,019,533
Off-shore banking unit - -
468,186,926 328,019,533
Outside Bangladesh ( Note-6.2)
Conventional banking 1,934,158,707 328,738,073
Off-shore banking unit 5,235,777 -
1,939,394,484 328,738,073
2,407,581,410 656,757,606

Annual Report 2014 114


2014 2013
Taka Taka
6.1 In Bangladesh
Conventional banking
Current accounts with
Sonali Bank Limited 15,350,418 23,653,048
IFIC Bank Limited 2,000 2,000
Islami Bank Bangladesh Limited 275,078 2,340,773
Commercial Bank of Ceylon 1,077,500 1,077,500
Trust Bank Limited 385,049 2,741,333
Standard Chartered Bank 4,013,941 3,423,939
Dutch Bangla Bank Limited 6,041,495 2,253,392
Rupali Bank Limited 8,917,826 28,895,140
EXIM Bank Limited 2,538,965 2,500,000
First Security Islami Bank Limited 553,420 500,000
Shahjalal Islami Bank Limited 538,947 500,000
Bangladesh Commerce Bank Limited 1,076,112 1,000,000
Social Islami Bank Limited 539,446 500,000
BRAC Bank Limited 27,061,086 6,477,689
68,371,283 75,864,814
Special notice deposit accounts with
Janata Bank Limited 14,009,204 14,732,484
Dutch Bangla Bank Limited 27,913 27,913
United Commercial Bank Limited 542,294 516,896
14,579,411 15,277,293
Fixed deposit accounts with
ICB Islamic Bank Limited 19,073,390 19,377,426
BD Industrial Finance Co Limited - 17,500,000
Bank Asia Ltd. 366,162,842 -
National Bank of Pakistan - 200,000,000
385,236,232 236,877,426
468,186,926 328,019,533
Off-shore banking unit - -
468,186,926 328,019,533
6.2 Outside Bangladesh (NOSTRO Accounts)
Conventional banking
Current accounts (non-interest bearing) with:
Bank of Tokyo Mitsubishi, Japan 2,060,279 1,614,524
HSBC BANK N.Y. - 2,974,775
Standard Chartered Bank, Tokyo 2,153,026 2,157,615
City Bank NA 99,873,558 -
BANCO ITAU - 913,987
United Bank Limited, Karachi 2,795,156 5,230,345
AXIS Bank Kolkata 4,908,157 4,628,378
Nepal Bangladesh Bank, Nepal 14,740,754 10,732,076
Sonali Bank Limited, UK 574,337 -
Bank of Bhutan, Phuentsholing 443,660 1,924,771
Habib Metropoliton Bank 7,780,481 4,773,999
Uni Credito Italiano Spa 63,558,237 2,284,506
Commerz Bank AG 6,307,281 1,280,394
UBAF,JAPAN - 305,473
Standard Chartered Bank, London 1,428,422,291 -
Nova Scotia, Canada - 1,840,330
Sonali Bank Limited, Kolkata - 26,905,624

Annual Report 2014 115


2014 2013
Taka Taka

American Express Bank, Colombo 1,301,812 3,087,599


Mashreq Bank, Kolkata - 85,639,430
Standard Chartered Bank, Singapore 6,691,518 473,157
Standard Chartered Bank, Kolkata - 34,419,691
Sonali Bank Limited, London 64,638,265 -
WESTPAC BC 1,867,458 862,083
Standard Chartered Bank, London 7,275,665 -
1,715,391,935 192,048,757
Current accounts (interest bearing) with:
Standard Chartered Bank, London - 12,877,006
Citi Bank N.A. - 123,812,310
Standard Chartered Bank , New York 218,766,772 -
218,766,772 136,689,316
1,934,158,707 328,738,073
Off-shore banking unit 5,235,777 -
(Annexure 'A' may kindly be seen for details) 1,939,394,484 328,738,073

6.3 Balance with other banks and financial institutions (according to


remaining maturity grouping) payable :

Payable on demand 2,373,928,609 404,602,887


Up to one month 14,579,411 215,277,293
Over one month but not more than three months - -
Over three months but not more than six months - 17,500,000
Over six months but not more than one year - -
Over one year but not more than five years 19,073,390 19,377,426
Over five years - -
2,407,581,410 656,757,606
6(a) Consolidated balance with other banks and financial institutions

In Bangladesh

NCC Bank Limited (Note-6.1 ) 468,186,926 328,019,533


NCCB Securities and Financial Services Limited 9,444,174 13,969,580
NCCB Capital Limited 271,032,940 271,044,320
NCCB Exchange (UK) Limited - -
748,664,040 613,033,433
Less: Inter company transactions 277,130,441 271,345,963
471,533,599 341,687,470
Outside Bangladesh

NCC Bank Limited (Note-6.2 ) 1,939,394,484 328,738,073


NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 3,465,575 179,280
1,942,860,059 328,917,353
2,414,393,658 670,604,823
7 Money at call and short notice :
Banking company - -
Non-banking financial institutions - -
- -

Annual Report 2014 116


2014 2013
Taka Taka

8 Investments :
Government securities-Note 8.1 25,241,572,158 18,352,194,148
Other investments-Note 8.2 1,327,089,604 1,556,127,854
26,568,661,762 19,908,322,002
8.1 Government securities:

Conventional banking

Treasury bills:
91 days treasury bills 1,209,850,791 -
182 days treasury bills 606,772,726 -
364 days treasury bills 323,101,883 -
2,139,725,400 -
Bangladesh Bank Bill - 467,254,260

Treasury bonds:

2 years treasury bonds 246,942,152 -


5 years treasury bonds 8,949,517,929 8,079,658,638
10 years treasury bonds 6,720,207,098 5,010,441,045
15 years treasury bonds 3,328,561,411 2,911,666,012
20 years treasury bonds 3,852,031,768 1,878,359,593
23,097,260,358 17,880,125,288
Prize bonds 4,586,400 4,814,600
25,241,572,158 18,352,194,148
Off-shore banking unit - -
25,241,572,158 18,352,194,148
8.2 Other investments:

Conventional banking:

ACI zero coupon bonds 12,139,999 15,559,999


Dhaka bank subordinated bond 50,000,000 50,000,000
National bank subordinated bond 32,000,000 50,000,000
Mutual Trust Bank subordinated bond 40,000,000 40,000,000
ACI commercial paper - 100,000,000
Beximco pharmaceuticals (Debenture ) 60,570 60,570
Investment in shares (Note 8.6) 1,688,266,871 1,741,642,343
Less: Provision for investment fluctuation in shares (Note-8.3) (495,377,836) (441,135,058)
1,192,889,035 1,300,507,285
1,327,089,604 1,556,127,854
Off-shore banking unit - -
1,327,089,604 1,556,127,854
8.3 Provision for investment fluctuation in shares

Opening balance 441,135,058 264,220,926


Add: Provision made during the year 54,242,778 176,914,132
Less: amount adjusted during the year - -
Closing Balance 495,377,836 441,135,058

Annual Report 2014 117


2014 2013
8.4 Investment classified as per Bangladesh Bank circular: Taka Taka

Held for Trading (HFT) 4,517,278,274 504,054,236


Held to Maturity (HTM) 20,719,707,484 17,843,325,312
Other securities 1,331,676,004 1,560,942,451
26,568,661,762 19,908,322,002
8.5 Maturity grouping of investments

On demand 1,156,740,016 1,242,137,917


Up to one month 851,462,299 567,254,285
Over one month but not more than three months 826,915,409 -
Over three months but not more than six months 594,306,545 -
Over six months but not more than one year 1,682,123,120 2,239,904,512
Over one year but not more than five years 10,267,604,816 6,058,558,638
Over five years 11,189,509,557 9,800,466,650
26,568,661,762 19,908,322,002

8.6 Investment in shares:


Quoted:
AB Bank Limited 6,067,093 6,067,093
Agrani Insurance Co. Limited 10,016,563 10,016,563
Al-Arafah Islami Bank Limited 73,613,875 73,613,875
Asia Insurance Limited 6,999,050 6,999,050
Asia Pacific General Insurance Limited 30,800,366 32,893,842
Bangladesh Auto Cars Limited 223,907 223,907
Bangladesh General Insurance Co. 5,620,658 5,928,158
Bank Asia Limited 25,382,039 25,382,039
Bata Shoe Co. (BD) Limited 3,008,892 3,008,892
Bay Leasing & Investment Limited 71,047,947 71,047,947
Beximco Limited 6,685,800 6,685,800
Beximco Pharma Limited 25,200 25,200
Bangladesh Submarine Cable Company Limited 26,650,837 9,336,160
BSRM Steels Limited 9,225,121 19,179,441
Confidence Cement Limited 5,298,842 -
Dacca Dyeing & Manufacturing Co. Limited 6,570,400 6,570,400
Dhaka Electric Supply Company Limited 74,738,248 68,644,702
Eagle Star Textile Mills Limited 4,227,951 4,227,951
Eastern Bank Limited 8,994,717 3,973,182
Eastern Cables Limited 277,852 277,852
Eastland Insurance Limited 11,650 11,650
Enboy Textiles Limited 39,678 39,678
EXIM Bank Limited 55,150 55,150
Fareast Life Insurance Co. Limited 7,078,425 7,078,425
Family Textile (BD) Limited 1,572,746 -
First Lease Finance & Investment Limited 1,601,860 1,601,860
GBP Power Limited 4,324,100 4,324,100
GPH Ispat Limited 8,076,250 8,076,250
Grameenphone Limited 11,564,424 45,979,524
Green Delta Insurance Co. 16,685,130 10,240,710
Green Delta Mutual Fund 24,036,815 24,036,815
GSP Finance Company (Bangladesh) Limited - 271,000
ICB Islamic Bank Limited 5,490,645 5,490,645

Annual Report 2014 118


2014 2013
Taka Taka
IDLC Finance Limited 27,466,708 27,466,708
Islami Bank Bangladesh Limited 56,132 56,132
Jamuna Bank Limited 19,670,799 19,670,799
Jamuna Oil Company Limited 38,435,918 33,214,872
Karnaphuly Insurance Limited 5,763,830 5,763,830
Khulna Power Co. Limited 5,698,282 18,006,860
Lafarge Surma Cement Limited 4,640,671 8,159,200
Lanka Bangla Finance Limited 86,762,006 114,479,644
Maksons Spinning Mills Limited 8,706,149 8,706,149
MBL 1st Mutual Fund 10,000,000 10,000,000
Meghna Life Insurance Co. Limited - 2,189,960
Meghna Petroleum Limited 16,994,756 14,848,067
Mercantile Bank Limited 4,168,547 2,025,047
Mercantile Insurance Co. Limited 19,424,350 19,424,350
MI Cement Factory Limited 302,231 302,231
MJL Bangladesh Limited 6,360,450 6,360,450
National Bank Limited 22,385,193 22,385,193
Navana CNG Limited 61,467,196 62,912,991
NCCBL Mutual Fund-1 50,000,000 50,000,000
NCCBL Mutual Fund-1 150,000,000 150,000,000
NLI 1st Mutual Fund 30,000,000 30,000,000
Olympic Industries Limited 511,650 1,972,150
Padma Oil Company Limited 9,992,625 -
Peoples Leasing and Financial Services Limited 48,205,403 48,205,403
Phoenix Finance and Investment Limited 6,140,550 6,140,550
Power Grid Co. Bangladesh Limited 2,004,762 2,004,762
Premier Leasing & Finance Limited 13,236,181 13,236,181
Prime Bank Limited 11,223 11,223
Prime Islami Life Insurance Company Limited 355,508 355,508
Prime Textile Spinning Mills Limited 300,000 300,000
Pubali Bank Limited 31,232,515 31,232,515
R.N.Spinning Mills Limited 52,019,169 54,891,306
RAK Ceramics (Bangladesh) Limited 3,046 3,046
Rupali Insurance Limited 9,847,950 9,847,950
South East Bank 1st Mutual Fund 30,000,000 30,000,000
Shahjalal Islami Bank Limited 18,004,087 17,038,037
Saiham Textile Mills Limited 1,193,306 2,364,930
South East Bank Limited 42,723,519 49,122,975
Square Pharmaceuticals Limited 44,466,343 17,392,503
Square Textiles Limited 36,160,385 71,409,035
Standard Bank Limited 114,448 114,448
Summit Alliance Port Limited 10,515,325 10,515,325
Summit Power Limited 64,153,966 67,900,556
Tallu Spining Mills Limited 365,191 365,191
Titas Gas Transmission & Distribution Co. Limited 93,103,425 83,992,560
Trust Bank 1st. Mutual Fund 2,000,000 2,000,000
Union Capital Limited 2,653,600 2,653,600
Unique Hotel & Resorts Limited 33,649,778 33,649,778
United Airways (BD) Limited 34,216,631 34,216,631
United Commercial Bank Limited 20,405,951 19,560,951
Uttara Bank Limited 8,120,373 8,120,373
1,640,022,359 1,685,897,831

Annual Report 2014 119


2014 2013
Un-Quoted: Taka Taka

Central Depository Bangladesh Limited (CDBL) 3,138,890 3,138,890


Dhaka Vegetable Oil Industries Limited 7,448,523 7,448,523
Bangladesh Rating Agency Limited 4,165,900 4,165,900
SWIFT 991,199 991,199
MSF Asset Management Company 2,000,000 2,000,000
Summit Purbanchal Power Company Limited 7,500,000 12,000,000
Summit Uttaranchal Power Company Limited 5,000,000 8,000,000
Venture Investment Partner Bangladesh Limited 18,000,000 18,000,000
48,244,512 55,744,512
(Annexure 'B' may kindly be seen for details) 1,688,266,871 1,741,642,343

8 (a )Consolidated investments
Government securities
NCC Bank Limited- Note-8.1 25,241,572,158 18,352,194,148
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
25,241,572,158 18,352,194,148
Other investments
NCC Bank Limited-Note-8.2 1,327,089,604 1,556,127,854
NCCB Securities and Financial Services Limited 28,843,298 25,477,395
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,355,932,902 1,581,605,249
26,597,505,060 19,933,799,397
9 Loans and Advances
Loans, Cash Credits, Overdrafts etc.(Note-9.1) 88,739,476,147 86,363,661,614
Bills Purchased and Discounted (Note-9.2) 2,181,295,881 1,803,544,217
90,920,772,028 88,167,205,831
9.1 Loans, cash credits, overdrafts etc.
Inside Bangladesh:
Conventional banking:
Overdraft 16,856,594,303 15,507,242,389
Cash credit 16,143,152,430 16,225,773,050
Loan - general 2,168,759,274 3,060,800,708
Transport loan 319,361,289 366,707,965
House building loan 1,395,715,516 1,471,559,673
Loan against Trust Receipt (LTR) 13,926,443,337 16,081,812,358
Loan against Imported Merchandise (LIM) 149,735,453 100,004,676
Loan against Investment 430 430
Loan against packing credit 139,474,580 153,443,756
Project loan 159,115,208 184,646,908
Demand loan 193,648,228 10
Lease finance 1,332,835,683 1,259,195,964
Payment against document 503,349,142 477,250,080
Consumer finance scheme 586,100 614,456
Housing loan under B.Bank refinance scheme 25,162,991 31,747,840
Staff loan 657,849,422 707,992,809
Small business loan 786,459,743 787,702,881

Annual Report 2014 120


2014 2013
Taka Taka

House renovation loan 14,418,549 25,244,613


Personal loan scheme 9,294,360 7,032,425
Term loan (small, medium & large) 18,350,059,110 16,479,131,093
Time loan 6,171,667,657 4,808,010,118
Agri credit 1,392,328,115 1,657,391,958
Festival loan 43,601,146 51,597,661
Special housing loan 1,057,326,355 972,699,095
Credit card 474,270,325 459,895,531
Forced loan 1,876,574,248 2,053,298,001
Short term loan 4,427,728,108 3,326,706,628
Retail loan 138,480,912 102,986,154
NCCB- Garments wear & foot wear cluster 23,570,921 2,645,109
Education loan scheme 1,913,212 527,275
88,739,476,147 86,363,661,614
Off-shore banking unit - -
88,739,476,147 86,363,661,614
Outside Bangladesh: - -
Conventional banking: - -
Off-shore banking unit - -
88,739,476,147 86,363,661,614
9.2 Bills purchased and discounted
Inside Bangladesh:
Conventional Banking
Inland bills purchased 83,656 36,828,249
Local documentary bills purchased 1,749,301,750 1,682,586,160
1,749,385,406 1,719,414,409
Off-shore banking unit - -
1,749,385,406 1,719,414,409
Outside Bangladesh:
Conventional Banking
Foreign bills purchased - -
Foreign documentary bills purchased 61,164,694 63,433,308
61,164,694 63,433,308
Off-shore banking unit 370,745,781 20,696,500
431,910,475 84,129,808
2,181,295,881 1,803,544,217
90,920,772,028 88,167,205,831
9.3 Net loans and advances
Gross Loans and Advances 90,920,772,028 88,167,205,831
Less: Provision for loans and advances 3,426,389,345 3,331,560,804
Interest suspense 1,488,795,712 979,431,588
4,915,185,057 4,310,992,392
86,005,586,971 83,856,213,439

Annual Report 2014 121


2014 2013
Taka Taka
9.4 Residual maturity grouping of loans and advances including
bills purchased and discounted

Repayable on demand 2,070,222,476 2,053,298,011


Up to one month 13,440,429,569 10,424,818,211
Over one month but not more than three months 19,536,439,633 17,928,123,991
Over three months but less than one year 26,781,203,143 29,462,140,035
Over one year but less than five years 17,816,400,961 18,516,500,962
Above five years 11,276,076,246 9,782,324,621
90,920,772,028 88,167,205,831
9.5 Loans and advances including bills purchased and discounted
classified into the following broad categories

In Bangladesh:
Loans 55,739,729,414 54,630,646,175
Cash credit 16,143,152,430 16,225,773,050
Overdraft 16,856,594,303 15,507,242,389
Bills Purchased & Discounted 1,749,385,406 1,719,414,409
90,488,861,553 88,083,076,023
Outside Bangladesh (Bills purchased & discounted) 431,910,475 84,129,808
90,920,772,028 88,167,205,831
9.6 Loans and advances on the basis of significant concentration
including bills purchased and discounted classified into the
following broad categories:

I) Advances to allied concerns of Directors of the Bank 135,773,000 160,208,231

II) Advances to Chief Executive and other Senior executives of the Bank
21,201,738 19,035,000
III) Advances to customers' group-wise clients
a) Agricultural loans 1,311,652,055 1,737,300,456
b) Export financing 4,584,323,900 3,985,211,487
c) Import financing 18,966,108,325 21,804,030,706
d) Transport and communication 960,070,757 1,434,600,042
a) Commercial lending 15,370,903,296 15,762,102,080
c) House building loan 4,950,886,449 7,658,020,309
f) Staff Loans other than Chief executive and other senior executives 657,849,422 688,958,281
g) Others including bills purchased and discount 12,248,697,477 8,833,032,687
59,050,491,681 61,903,256,048
IV) Industrial loans (including working capital) 31,713,305,609 26,084,706,552
90,920,772,028 88,167,205,831

9.7 Number of clients with outstanding amount and classified loans


and advances exceeding 10% of total capital of the Bank.

Number of the clients 11 8


Amount of outstanding advances 26,237,400,000 17,576,100,000
Amount of classified advances - -
Measures taken for recovery - -
(Annexure 'C' may kindly be seen for details)

Annual Report 2014 122


2014 2013
Taka Taka
9.8 Loans and advances on the basis of geographical location wise:
Urban
Dhaka Division 54,772,092,540 54,295,596,688
Chittagong Division 25,255,747,300 23,861,297,509
Rajshahi Division 1,105,681,646 912,478,793
Rangpur Division 733,341,257 604,299,712
Sylhet Division 640,775,049 601,873,002
Khulna Division 2,235,019,027 2,399,856,953
Barisal Division 199,067,389 282,458,707
84,941,724,208 82,957,861,364
Rural
Dhaka Division 1,743,634,308 1,385,147,124
Chittagong Division 2,887,408,106 2,752,459,319
Rajshahi Division 141,171,860 159,403,313
Rangpur Division 494,461,299 456,987,326
Sylhet Division 622,777,056 414,876,029
Khulna Division 89,595,191 40,471,356
5,979,047,820 5,209,344,467
90,920,772,028 88,167,205,831
9.9 Classification of loans and advances

Unclassified standard (including staff loans) 81,850,771,101 82,432,254,648


Unclassified special mention account 2,334,484,568 872,537,444
Sub-standard 442,703,023 167,996,705
Doubtful 678,180,091 504,858,393
Bad/Loss 5,614,633,245 4,189,558,641
90,920,772,028 88,167,205,831
9.10 Particulars of required provision for loans and Advances
Status Base for provision Rate (%)
A. General Provision
Conventional banking
Un-Classified Loans and Advances 80,822,175,897 * Various 701,866,630 659,697,070
Special Mention Account 2,334,484,568 do 19,370,814 8,469,047
83,156,660,465 721,237,444 668,166,117
Off-shore banking unit 370,745,781 1.00% 3,707,458 206,965
83,527,406,246 724,944,902 668,373,082
* General provision is kept @ 1% on general loans and Advances and 0.25% on small enterprise financing, 2% on
certain other types of lending and 5% on consumer financing.

Base for provision Rate (%)


B. Specific provision
Conventional banking
Sub-standard 254,754,887 20 50,950,978 19,232,209
Doubtful 376,194,832 50 188,097,416 134,627,065
Bad/ Loss 2,466,103,507 100 2,466,103,507 2,509,535,413
3,097,053,226 2,705,151,901 2,663,394,687
Off-shore banking unit
Specific provision
Sub-standard - 20 - -
Doubtful - 50 - -
Bad/ Loss - 100 - -
- - -
3,097,053,226 2,705,151,901 2,663,394,687

Annual Report 2014 123


2014 2013
Taka Taka
Required provision for loans and advances 3,430,096,803 3,331,767,769
Total provision maintained (note 14.5 ) 3,430,096,803 3,331,560,804
Excess /(short) provision at 31 December 2014 * - -
* Provision was maintained as per instruction of Bangladesh Bank.

Particulars of required provision on off -balance sheet Exposure


Conventional Banking
Base for provision Rate ( 1%)
Acceptance and Endorsements 11,771,729,896 117,717,299 123,507,691
Letter of guarantee 11,395,123,103 113,951,231 66,719,174
Letter of credit 10,890,049,609 108,900,496 84,297,139
Others 464,667,369 4,646,674 91,298
345,215,700 274,615,302
Off-shore banking unit - -
Required provision on off -balance sheet Exposure 345,215,700 274,615,302
Total provision maintained (note 14.6) 345,215,700 274,615,302
Excess/ (short) provision - -

9.11 Particulars of loans and advances


i) Loans considered good in respect of which the bank is fully secured 66,768,977,092 63,501,572,610
ii) Loans considered good against which the bank holds no other
security other than the debtor's personal guarantee 7,638,635,352 14,642,682,833

iii)Loans considered good and secured by the personal security of


one or more parties in addition to the personal guarantee of the debtors 16,513,159,584 10,022,950,388

iv) Loans considered doubtful or bad not provided for - -


90,920,772,028 88,167,205,831

* v) Debts due by directors or officers of the bank or any of them


e ither severally or jointly with any other persons 657,849,422 707,992,809
* Amount represents loans to employees of the Bank only.

vi) Debts due by companies or firms in which the directors of the


Bank are interested as directors, partners or managing agent or
in case of private companies as members 135,773,000 160,208,231

vii) Maximum total amount of advances, including temporary


advances made at any time during the year to directors or
managers or officers of the bank or any of them either
severally or jointly with any other persons. 657,849,422 707,992,809

viii) Maximum total amount of advances, including temporary


advances,granted during the year to the companies or firms in
which the directors of the bank are interested as directors,
partners or managing agents or, in case of private companies as members. 135,773,000 160,208,231

ix) Due from banking companies - -

Annual Report 2014 124


2014 2013
Taka Taka

x) Amount of classified loans for which interest/profit not credited to income 6,735,516,359 4,862,413,739

a) Increase/(decrease) of provision (specific) during the year 41,757,214 958,257,787

b) Amount of provision kept against the amount classified 2,466,103,507 2,497,682,413


as bad/loss at the Balance Sheet preparing date.
c) Amount of interest charged in interest suspense account 1,488,795,712 979,431,588

xi) Cumulative amount of written off debt

Opening balance as on 1 January 2,887,200,735 2,682,340,810


Add: Amount of debt written off during the year 997,786,941 204,859,925
Closing balance as on 31 December 3,884,987,676 2,887,200,735

xii) Amount of written off debt against which law suit has
been filed for its recovery during the year 997,786,941 204,859,925

9.12 Outstanding bad & loss loans to be written off

Bangladesh Bank issued a circular no.02 dated 13 January 2003 instructing all the banks in the country to write off
bad & loss loans which have passed five years after its classification and legal actions have been taken against all
those default borrowers with an immediate effect. In compliance with the circular, the Bank formed a Debt Collection
Unit in its Head Office from where monitoring has been made accordingly. During the year, the Bank allowed write off
amounting to Tk.99,77,86,941/- against which legal actions have been lying with the money suit court. In this
connection, branches have been maintained a separate ledger for all individual cases. The debt collection unit will
follow-up the realization of such debts in future also and time to time a progress report to be given to the management
by the branches.

9.13 Bills purchased and discounted:

a) Payable:
In Bangladesh 1,749,385,406 1,719,414,409
Outside Bangladesh 431,910,475 84,129,808
2,181,295,881 1,803,544,217
b) Bills purchased & discounted on the basis of the residual maturity grouping:

Payable:
Within one month 572,113,821 431,180,791
Over one month but less than three months 513,501,843 659,640,000
Over three months but less than six months 303,678,000 691,232,926
Over six months 792,002,217 21,490,500
2,181,295,881 1,803,544,217
9(a) Consolidated loans and advances
Loans, cash credits, overdrafts etc.
NCC Bank Limited (Note-9.1) 88,739,476,147 86,363,661,614
NCCB Securities and Financial Services Limited. 4,607,372,304 4,514,072,239
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
93,346,848,451 90,877,733,853
Less : Inter company transactions 1,761,631,457 1,890,840,821
91,585,216,994 88,986,893,032

Annual Report 2014 125


2014 2013
Taka Taka
Bills purchased and discounted
NCC Bank Limited (Note-9.2) 2,181,295,881 1,803,544,217
NCCB Securities and Financial Services Limited. - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
2,181,295,881 1,803,544,217
Less : Inter company transactions - -
2,181,295,881 1,803,544,217
93,766,512,875 90,790,437,249
10 Fixed assets including premises, furniture and fixtures
Conventional banking (Note-10.1) 2,573,252,105 1,736,637,982
Off-shore banking unit (Note-10.2) - -
2,573,252,105 1,736,637,982
10.1 Fixed assets including premises, furniture and fixtures
Conventional banking
Cost/valuation
Lands and apartments 451,906,660 451,906,660
Buildings/apartments/structure 1,306,341,148 736,216,459
Furniture and fixtures 499,243,637 428,887,682
Machinery and equipment 1,035,557,241 710,488,752
Vehicles 98,144,716 95,750,888
Total Cost / valuation 3,391,193,402 2,423,250,441
Less: Accumulated depreciation 817,941,297 686,612,459
Net book value at the end of the year 2,573,252,105 1,736,637,982
(Annexure 'D' may kindly be seen for details)

10.2 Off-shore banking unit - -

10(a) Consolidated fixed assets including premises, furniture and fixture


NCC Bank Limited (Note-10) 2,573,252,105 1,736,637,982
NCCB Securities and Financial Services Limited 16,590,351 18,849,835
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 1,873,195 3,577,999
2,591,715,651 1,759,065,816
11 Other assets
Conventional banking (Note-11.1) 4,066,540,264 5,698,189,725
Off-shore banking unit 10,555,062 320,301
4,077,095,326 5,698,510,026
11.1 Conventional banking
Income generating other assets
Investment in subsidiaries
In Bangladesh

NCCB Securities and Financial Services Limited 1,999,999,900 1,999,999,900


NCCB Capital Limited 249,999,900 249,999,900
2,249,999,800 2,249,999,800
Outside Bangladesh
NCCB Exchange (UK) Limited 27,878,908 27,878,908
2,277,878,708 2,277,878,708

Annual Report 2014 126


2014 2013
Taka Taka

Non-income generating other assets


Stationery in hand 9,483,941 11,820,590
Stamps in hand 3,170,134 2,715,071
Security deposits 4,825,320 2,280,080
Advance against rent 146,136,367 158,292,633
Commission receivable 7,656,957 7,944,265
Software 52,168,785 66,230,913
Discount receivable - 10,765,954
Prepaid expenses 8,500 93,605
ATM adjustment 162,217 168,757
Visa card SBL 1,855,170 1,649,558
Building construction 3,000,000 715,308,524
Receivable against sale proceeds of shares 18,469,774 3,611,087
Suspense account (Note 11.2 ) 59,416,347 22,161,570
Interest receivable ( Note 11.3 ) 587,393,866 407,227,663
Dividend receivable (Note-11.4) 6,805,328 2,628,288
Advance corporate tax (Note-11.5) 723,882,869 1,880,443,430
Others ( Note 11.6 ) 164,225,981 126,969,029
1,788,661,556 3,420,311,017
4,066,540,264 5,698,189,725
11.2 Suspense account

Encashment sanchaypatra awaiting realization 43,356,984 7,538,304


Cash remittance 16,000,000 14,500,000
DD paid without advice 59,363 68,757
Clearing adjustment - 54,509
59,416,347 22,161,570
11.3 Interest receivable

On loans and advances - -


On treasury bills/bonds 583,488,803 406,297,246
On bank balances/financial institutions/Others 3,905,063 930,417
587,393,866 407,227,663
11.4 Dividend receivable

Dividend Receivable from NCCB Securities and Financial Services Limited - -


Dividend receivable from others listed companies 6,805,328 2,628,288
6,805,328 2,628,288
11.5 Advance corporate tax
Advance tax at source on treasury bills/ bonds 421,023,052 112,009
Advance tax at source on dividend 12,672,950 51,458,177
Advance tax at source on bank interest 2,476,046 14,160,956
Advance income tax deposited by Bank 279,880,646 1,797,562,727
5% Advance income tax paid on L/C commission 7,830,175 17,149,561
723,882,869 1,880,443,430

Annual Report 2014 127


2014 2013
Taka Taka
11.6 Others
Advance against TA/DA 489,481 355,647
Legal expenses 1,286,000 1,415,229
Kushiara Financial Services Ltd.-London 45,000 -
Money Gram 9,991,329 5,933,022
Proposed branches expenses 21,719,616 -
Prefunding to TMSS - 2,048,984
Transmit international Inc. USA 1,904 3,391,490
UAE exchange 336,678 436,970
Sundry debtors 45,310,429 43,654,805
Trans fast remittance LLC 429,723 1,127,368
Protested bill 15,737,491 11,890,306
Prefunding to foreign remittance - 7,325,579
Prefunding to Ansar -VDP 9,569,019 9,954,290
Xpress Money 3,184,648 1,523,243
Al-Fardan Exchange Co.L.L.C 1,979,784 3,190,014
Habib Xpress MT 100 80,049
Placid Express 868,679 3,539,729
Postage/stamp - 20,042
Samso's Express Money Transfer 15,000 -
Continental Exchange Solutions (Rja) 379,977 50,447
Wall Street 380,389 79,847
First Solution U.K. - 76,045
Kay Maks International - 33,960
Al Zaman Exchange - 38,000
IME (M) SDN.BHD. 4,239,532 2,572,127
Prefunding to SME Noria 15,275 -
NCCB sure cash 300 300
Advance for booking money agt.DSE Tower 850,000 850,000
Western Union 4,712,920 10,238,370
NCCB Exchange (UK) Limited 26,701,978 4,406,314
NEC Money Transfer Spain 11,693,321 669,053
Arab National Bank 441,595 95,430
National Exchange Company S.r.l 813,121 6,393,195
Sigue Global Services Ltd 2,268,390 3,849,615
Consolidated CMS Br.POS Trx. 563,500 1,423,500
Others 200,802 306,059
164,225,981 126,969,029
11(a) Consolidated other Assets
NCC Bank Limited (Note-11) 4,077,095,326 5,698,510,026
Less: Investment in NCCB Securities and Financial Services Limited (note-11.1) (1,999,999,900) (1,999,999,900)
Less: Investment in NCCB Capital Limited (Note-11.1) (249,999,900) (249,999,900)
Less: Investment in NCCB Exchange (UK) Limited (Note-11.1) (33,709,200) (25,322,000)
1,793,386,326 3,423,188,226
NCCB Securities and Financial Services Limited 218,703,243 171,669,733
NCCB Capital Limited 4,957,284 3,724,126
NCCB Exchange (UK) Limited 794,603 842,336
224,455,130 176,236,195
2,017,841,456 3,599,424,421
Less: Inter company transactions 3,577,757 2,344,599
2,014,263,699 3,597,079,822

Annual Report 2014 128


2014 2013
Taka Taka
12 Borrowing from other banks, financial institutions and agents
Conventional banking (Note-12.1) 4,597,428,859 2,742,839,548
Off-shore banking unit (Note-12.2) 378,096,790 20,693,982
4,975,525,649 2,763,533,530
12.1 Borrowing from other banks, financial institutions and agents
In Bangladesh

Bangladesh Bank 3,152,439,590 1,063,457,683


SME Foundation 25,000,000 20,000,000
Rupali Bank Limited - 700,000,000
Dutch Bangla Bank Limited - 450,000,000
State Bank of India 150,000,000 250,000,000
Dutch Bangla Bank Limited - 27,383
Repo (ALS) with Bangladesh Bank 1,101,530,000 -
4,428,969,590 2,483,485,066
Outside Bangladesh:
ICICI Bank, Kolkata 18,861,995 22,728,791
Standard Chartered Bank, N.Y - 183,912,979
Standard Chartered Bank, Kolkata 44,865,481 -
Standard Chartered Bank, London - 2,330,522
WACHOVIA NA 26,233,574 15,730,777
ICICI Bank, HKK 33,846,998 21,310,846
Sonali Bank, London - 8,975,938
Sonali Bank, Kolkata 6,864,714 -
Mashreq Bank ,Kolkata 9,408,739 -
Jpmorgan Chess Bank - 1,070,780
Habib American Bank - 53,208
Mashreq Bank New York 28,377,768 3,240,641
168,459,269 259,354,482
4,597,428,859 2,742,839,548
(Annexure 'E' may kindly be seen for details)
12.2 Off-shore banking unit 378,096,790 20,693,982
12.3 Security against borrowings from other banks, financial
institutions and agents:
Conventional banking
Secured 4,428,969,590 2,468,594,724
Unsecured 168,459,269 274,244,824
4,597,428,859 2,742,839,548
Off-shore banking unit (Note-12.2)
Secured 378,096,790 20,693,982
Unsecured - -
378,096,790 20,693,982
4,975,525,649 2,763,533,530

12.4 Borrowings from other banks, financial institutions and agents


(according to remaining maturity grouping) payable :

On demand 1,710,570,589 1,674,272,207


In not more than three months 56,415,470 5,803,640
Over three months but less than six months 87,515,470 44,222,097
In more than three months but not more than one year 221,926,457 143,148,743
In more than one year but not more than five years 1,010,309,020 879,061,534
Above five Years 1,888,788,643 17,025,309
4,975,525,649 2,763,533,530

Annual Report 2014 129


2014 2013
Taka Taka
12 (a) Consolidated borrowing from other banks, financial institutions and agents
NCC Bank Limited (Note-12) 4,975,525,649 2,763,533,530
NCCB Securities and Financial Services Limited 1,811,631,457 1,890,840,821
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
6,787,157,106 4,654,374,351
Less: inter company transactions 1,761,631,457 1,890,840,821
5,025,525,649 2,763,533,530
13 Deposits and other accounts
Current deposits 6,573,220,062 5,445,515,750
Sundry deposits (Note 13.5) 2,975,601,379 2,641,223,461
9,548,821,441 8,086,739,211
Saving deposits 12,989,595,636 11,167,226,439
Fixed deposits 45,696,085,137 47,844,992,750
Term deposits:
Special notice deposits 7,107,984,035 5,616,544,746
Special savings scheme 14,814,071,367 12,807,128,491
Special deposit scheme 4,402,728,272 3,568,810,470
Premium term deposits 274,853,642 333,695,595
Instant earning term deposits 200,000 2,800,000
Money double program 8,272,392,501 7,271,261,806
Money triple program 550,703,355 206,086,528
NCCB youngster maximus 7,554,207 4,389,284
35,430,487,379 29,810,716,920
13.1 Bills Payable:
Payment order (issued) 1,954,320,150 1,241,337,257
Pay slip - 2,988
Demand draft 84,304,367 78,426,963
2,038,624,517 1,319,767,208
105,703,614,110 98,229,442,528
13.2 (a) Demand deposits
Deposit from banks - -
Deposit from customers 12,756,509,566 10,411,556,799
12,756,509,566 10,411,556,799
(b) Other deposits
Deposit from banks:
In fixed deposits accounts:
Premier Bank Ltd. 312,000,000 200,000,000
312,000,000 200,000,000
Deposit from customers 92,635,104,544 87,617,885,729
105,703,614,110 98,229,442,528
13.3 Deposits and other accounts
Conventional banking (Note-13) 105,703,614,110 98,229,442,528
Off-Shore Banking Unit - -
105,703,614,110 98,229,442,528
13.4 Residual maturity grouping of deposits:
(a) From other banks
Payable:
On demand - -
Within one month - 200,000,000
In more than one month but less than six months 312,000,000 -
In more than six months but less than one year - -
In more than one year but within five years - -
In more than five years but within ten years - -
312,000,000 200,000,000

Annual Report 2014 130


2014 2013
Taka Taka
(b) From other than banks
Payable:
On demand 10,717,885,048 10,411,556,799
Within one month 5,310,723,350 2,700,270,042
In more than one month but less than three months 23,699,602,570 18,752,165,309
In more than three months but less than one year 23,079,340,830 27,254,567,301
In more than one year but within five years 24,237,651,715 23,697,525,460
In more than five years but within ten years 18,346,410,597 15,213,357,617
105,391,614,110 98,029,442,528
105,703,614,110 98,229,442,528
13.5 Sundry Deposits
Sundry creditors 224,076,530 150,886,357
Clearing adjustment 208,875,395 37,559,904
Margin on letters of guarantee 615,614,878 523,672,845
Margin on letters of credit 807,903,655 703,851,845
Security deposits against locker 47,063,299 42,166,114
Foreign correspondents charge 16,472 16,472
Credit balance in CC, SOD, Loan etc. 159,581,701 105,145,755
Collection account 16,978,524 15,528,182
Sanchaypatras 24,065,000 8,440,000
Money gram 56,146,830 46,727,996
LDBP, export bill/ proceeds 372,931,751 726,396,108
Security deposit receipts 13,374,332 19,572,583
U.A.E. Exchange 26,992,094 17,007,513
Placid Express 353,493 1,521,314
FC, FCY retention quota 102,353,608 56,827,619
Cash risk allowance/fund 40,437,071 39,508,454
Majan exchange 4,694,973 2,036,151
Three Star Remittance 439,379 439,384
Fast Remit Exchange House PTY, Australia 1,270,865 -
Advance rent on lease finance 45,112,469 36,126,027
First Solution money transfer 160,230 160,231
Al-Fardan exchange Co.L.L.C. 11,488,173 1,031,579
Habib Qatar 626,752 2,321,311
K.M. Financial Services London 1,172,709 2,004,369
Arab National Bank (KSA) 36,918,295 33,126,796
Wall Street Exchange 7,234,352 3,592,910
Dhaka Janata Express 1,793,246 1,793,246
Visa credit card & others 2,321,629 1,639,616
Foreign remittance 20,588,996 5,736,982
Retained comm.from remittance 102,766 371,152
Provident fund 30,145,090 2,000,000
Credit card deposit A/c. 4,012,414 2,179,667
Alternative cash assistance 89,475 89,475
Zenj Exchange 2,014,496 2,022,444
SMS banking charge 8,848,427 174,009
National Exchange Co. 161,187 1,828,103
IME(M) SDN.BHD 15,080,198 10,954,976
Al Zaman Exchange 4,603,945 4,024,002
Transmit International Inc. USA 36,054 5,048,081
Al Mulla International Exchange 2,092,665 1,800,516

Annual Report 2014 131


2014 2013
Taka Taka
Kushiara Financial Services Ltd.-London 60,945 60,945
Samso,s Express Money Transfer 1,157,169 1,157,109
Western Union 3,442,674 2,603,603
AN Express UK 513,315 513,358
Japan Remit Finance Co. Ltd. 727,103 2,674,299
NEC Money Transfer Spain 16,088,539 900,589
Benevolent fund 1,601,935 751,235
Bluestar Services 30,081 18,990
NCCB Sure Cash Consolidated 500 -
Sigue Global Services Ltd. 1,211,997 943,012
Enquiry charge of CIB 1,244,415 2,643,137
GS Money Transfer Bedford, UK 2,206,285 1,393,835
Trans Fast Remittance LLCC 4,934,275 3,775,973
Islamic Exchange Co. 2,944,250 3,270,492
Continental Exchange Solutions (Ria) 11,590,796 3,789,923
Unclaimed block account balances for 10 years & above 1,400 1,200
Bangladesh Bank Bach & Clearing Charge 350,917 -
Internet Banking Charge 470,095 -
Prefunding to TMSS 7,096,485 -
NCCB Visa Debit Card 1,122,500 -
Others 1,032,285 1,395,673
2,975,601,379 2,641,223,461
13 (a) Consolidated deposits and other accounts
Current deposits and other accounts
NCC Bank Limited (Note-13) 9,548,821,441 8,086,739,211
NCCB Securities and Financial Services Limited 31,722,794 28,851,135
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
9,580,544,235 8,115,590,346
Less: Inter company transactions 277,130,441 271,345,963
9,303,413,794 7,844,244,383
Bills payable
NCC Bank Limited (Note-13.1) 2,038,624,517 1,319,767,208
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
2,038,624,517 1,319,767,208
Savings bank deposits
NCC Bank Limited (Note-13) 12,989,595,636 11,167,226,439
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
12,989,595,636 11,167,226,439
Fixed deposits
NCC Bank Limited (Note-13) 45,696,085,137 47,844,992,750
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
45,696,085,137 47,844,992,750
Less: Inter company transactions - -
45,696,085,137 47,844,992,750

Annual Report 2014 132


2014 2013
Term deposits Taka Taka

NCC Bank Limited (Note-13) 35,430,487,379 29,810,716,920


NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
35,430,487,379 29,810,716,920
Less: Inter company transactions - -
35,430,487,379 29,810,716,920
105,458,206,463 97,986,947,700
14 Other liabilities
Conventional banking (Note-14.1) 10,126,986,790 9,779,505,380
Off-shore banking unit (Note-14.7) 3,707,458 206,965
Interest payable of off-shore banking unit - 171,852
10,130,694,248 9,779,884,197
14.1 Conventional banking
Other liabilities
Interest payable 2,525,683,096 1,433,661,501
Excise duty 100,230,352 92,383,398
Special reserve of garments accounts 16,631,458 16,331,259
Provision for expenses 3,723,441 3,309,056
Audit fee payable 150,000 150,000
Withholding tax payable 185,295,934 245,446,119
Inter branch transaction account 254,763,149 253,955,174
Deduction of VAT on LC commission and service charges 61,313,613 58,099,161
Provision for other assets ( Note 14.2) 23,481,561 23,481,561
Provision for income tax ( Note 14.3) 1,123,003,802 2,648,380,414
Deferred tax liabilities (Note 14.4.1) 416,372,694 286,579,106
Provision for loans and advances (Note 14.5 ) 3,426,389,345 3,331,560,804
Provision on off balance sheet items (Note-14.6) 345,215,700 274,615,302
Interest suspense account (Note 14.8 ) 1,488,795,712 979,431,588
Contribution to NCC Bank Foundation (Note-14.9) 25,000,000 20,000,000
Provision for gratuity (Note-14.10) 110,270,549 97,675,715
Reserve for unforeseen loss 16,723,725 14,445,222
Inter bank transaction account 3,942,659 -
10,126,986,790 9,779,505,380
14.2 Provision for other assets:
Opening balance 23,481,561 9,049,793
Add: Provisions made during the year - 14,431,768
Less: Provisions no longer required - -
Closing balance 23,481,561 23,481,561
14.3 Provision for income tax:
Opening balance 2,648,380,414 1,443,399,158
Add: Provision made for current tax 749,661,486 1,127,981,256
Provision for prior years tax 119,694,168 77,000,000
869,355,654 1,204,981,256
3,517,736,068 2,648,380,414
Less: Adjustment during the year 2,394,732,266 -
Closing balance 1,123,003,802 2,648,380,414
Annexure-F may kindly be seen for details corporate tax position

Annual Report 2014 133


2014 2013
Taka Taka
14.4 Consolidated provision for income tax:

Opening balance 2,846,903,652 1,573,842,534


Add : Provision made for NCC Bank Limited 749,661,486 1,127,981,256
Add : Provision made for prior years for NCC Bank Limited 119,694,168 77,000,000
Add : Provision made for NCCB Securities and Financial Services Limited 7,879,650 65,086,678
Add : Provision made for NCCB Capital Limited - 2,993,184
877,235,304 1,273,061,118
Less: Adjustment during the year 2,394,732,266 -
1,329,406,690 2,846,903,652
14.4.1 Deferred tax
Deferred tax liabilities 2014
As per Temporary difference
Particulars of assets/liabilities As per tax base
carrying value taxable/(deductible)
Revaluation portion of land 457,163,618 - 457,163,618
Building/apartments 1,133,681,906 768,971,455 364,710,451
Machinery & equipment 554,459,779 317,631,495 236,828,284
Local software 22,959,134 12,479,388 10,479,746
Vehicles 29,682,351 28,384,685 1,297,666
Accrued interest on Govt. securities 570,316,782 - 570,316,782
Furniture & Fixture 302,980,451 299,628,488 3,351,963
Total temporary difference (taxable) 3,071,244,021 1,427,095,511 1,644,148,510
42.50% & 4%
Deferred tax liabilities 522,755,124

Deferred tax liabilities 2013


As per Temporary difference
Particulars of assets/liabilities As per tax base
carrying value taxable/(deductible)
Revaluation portion of land 460,678,503 - 460,678,503
Building/apartments 577,070,497 347,635,226 229,435,271
Machinery & equipment 312,495,726 185,426,269 127,069,457
Local software 22,959,134 8,069,509 14,889,625
Vehicles 34,511,129 32,916,466 1,594,663
Accrued interest on Govt. securities 399,038,305 - 399,038,305
Total temporary difference taxable 1,346,074,791 574,047,470 1,232,705,824
42.50% & 3%
Deferred tax liabilities 341,931,967

Opening balance 323,645,421 319,279,212


Add: Provision for revaluation reserve on Land 18,286,545 13,820,355
341,931,966 333,099,567
Less: Reverse provision for revaluation on Land - -
341,931,966 333,099,567
Addition during the year 180,823,158 8,832,399
522,755,124 341,931,966
Adjustment made during the year - -
Closing balance 522,755,124 341,931,966

Annual Report 2014 134


Deferred tax assets 2014
As per Temporary difference
Particulars of assets/liabilities As per tax base
carrying value taxable/(deductible)
Provision for gratuity (110,270,549) - (110,270,549)
Provision for investment fluctuation in shares (495,377,836) - (495,377,836)
Provision for other assets (23,481,561) - (23,481,561)
Total temporary difference (deductible) (629,129,946) - (629,129,946)
42.50% &10.00%
Deferred tax assets (106,382,430)

Deferred tax assets 2013


As per Temporary difference
Particulars of assets/liabilities As per tax base
carrying value taxable/(deductible)
Furniture & fixture 256,598,134 259,562,107 (2,963,973)
Provision for investment fluctuation in shares (441,135,083) - (441,135,083)
Provision for other assets (23,481,561) - (23,481,561)
Total temporary difference deductible (208,018,510) 259,562,107 (467,580,617)
42.50% & 10.00%
Deferred tax assets 55,352,860

2014 2013
Taka Taka

Opening balance 55,352,860 30,570,243


Addition during the year 51,029,570 24,782,617
106,382,430 55,352,860
Adjustment made during the year - -
Closing balance 106,382,430 55,352,860

Net deferred tax (assets)/liabilities 416,372,694 286,579,106

Net deferred tax (income)/ expense charged to P/L 129,793,588 (15,950,218)

14.5 Provision for loans and advances

a) Movement in specific provision on classified loans and advances


Opening balance 2,663,394,687 1,705,136,900
Fully provided debt written off (1,010,025,120) (148,626,458)
Add: Recoveries of amount previously written off 11,873,927 12,368,153
Net charged to profit and loss account 1,039,908,407 1,094,516,092
Provision held at the end of the year 2,705,151,901 2,663,394,687

b) Movement in general provision on unclassified loans and advances

Opening balance 668,166,117 620,741,403


Add: Provision made for the year/net charge in profit and loss account 53,071,327 47,424,714
Adjustment during the year - -
721,237,444 668,166,117
Total (a+ b) 3,426,389,345 3,331,560,804

Annual Report 2014 135


2014 2013
14.5.1 Consolidated provision for loans and advances charged Taka Taka
to profit and loss account
a) Specific provision on classified loans and advances
NCC Bank Limited 1,039,908,407 1,094,516,092
NCCB Securities and Financial Services Limited 10,000,000 153,647,099
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,049,908,407 1,248,163,191
b) Movement in general provision on unclassified loans and advances
NCC Bank Limited 53,071,327 47,424,714
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
53,071,327 47,424,714
Total (a+b) 1,102,979,734 1,295,587,905
14.6 Provision on off-balance sheet items

Opening balance 274,615,302 256,173,211


Add: Provision made during the year 70,600,398 18,442,091
Closing balance 345,215,700 274,615,302

14.7 Provision for Off-shore banking unit


Opening balance 206,965 -
Add: Provision made for the year/net charge in profit and loss account 3,500,493 206,965
Adjustment during the year - -
3,707,458 206,965

14.8 Interest suspense account


Opening balance 979,431,588 613,309,927
Add: Amount transferred during the year 699,371,390 434,370,445
Less: Amount recovered during the year (93,844,587) -
Less: Amount written off during the year (96,162,679) (68,248,784)
Closing balance 1,488,795,712 979,431,588

14.9 Contribution to NCC Bank Foundation (NCCBF)

Opening balance 20,000,000 10,000,000


Add: Contribution during the year 25,000,000 20,000,000
45,000,000 30,000,000
Less: Adjustment during the year 20,000,000 10,000,000
Closing balance 25,000,000 20,000,000
14.10 Provision for gratuity
Opening balance 97,675,715 68,882,206
Add: Provision made during the year 110,270,549 97,675,715
Less: Adjusted/transferred to SND account (97,675,715) (68,882,206)
Closing balance 110,270,549 97,675,715

14(a) Consolidated other liabilities


NCC Bank Limited (Note-14) 10,130,694,248 9,779,884,197
NCCB Securities and Financial Services Limited 1,003,449,532 793,475,264
NCCB Capital Limited 17,648,110 16,173,814
NCCB Exchange (UK) Limited 7,723,411 6,665,889
11,159,515,301 10,596,199,164
Less: Inter company transactions 3,577,757 2,344,599
11,155,937,549 10,593,854,568

Annual Report 2014 136


2014 2013
Taka Taka
15 Share capital

15.1 Authorized share capital

1,000,000,000 ordinary shares @ of Tk. 10 each 10,000,000,000 10,000,000,000

15.2 Issued, subscribed and fully paid-up capital


39,000,000 Ordinary shares of Tk 10 each issued for cash 390,000,000 390,000,000
619,441,888 Ordinary shares of Tk 10 each issued as bonus 6,194,418,880 5,812,073,430
144,483,570 Ordinary shares of Tk 10 each issued as right share in Cash 1,444,835,700 1,444,835,700
802,925,458 Ordinary shares of Tk 10 each 8,029,254,580 7,646,909,130

15.3 History of paid-up capital of NCC Bank Limited


Accounting Year Declaration No. of Share Value of capital Cumulative
1993 Opening Capital 19,500,000 195,000,000 195,000,000
1994 - - - 195,000,000
1995 - - - 195,000,000
1996 - - - 195,000,000
1997 - - - 195,000,000
1998 - - - 195,000,000
1999 Initial Public Offer (IPO) 19,500,000 195,000,000 390,000,000
2000 10% Bonus Share 3,900,000 39,000,000 429,000,000
2001 12% Bonus Share 5,148,000 51,480,000 480,480,000
2002 15% Bonus Share 7,207,200 72,072,000 552,552,000
2003 10% Bonus Share 5,525,520 55,255,200 607,807,200
2004 30% Bonus Share 18,234,210 182,342,100 790,149,300
2005 50%Right Share 30,238,570 302,385,700 1,092,535,000
2005 10% Bonus Share 10,925,350 109,253,500 1,201,788,500
2006 12.50% Bonus Share 15,022,350 150,223,500 1,352,012,000
2007 30% Bonus Share 40,560,360 405,603,600 1,757,615,600
2008 30% Bonus Share 52,728,460 527,284,600 2,284,900,200
2009 47% Bonus Share 107,390,300 1,073,903,000 3,358,803,200
2010 50%Right Share 114,245,010 1,142,450,100 4,501,253,300
2010 32% Bonus Share 144,040,105 1,440,401,050 5,941,654,350
2011 17% Bonus Share 101,008,123 1,010,081,230 6,951,735,580
2012 10% Bonus Share 69,517,355 695,173,550 7,646,909,130
2013 5% Bonus Share 38,234,545 382,345,450 8,029,254,580
802,925,458 8,029,254,580

15.4 % of shareholdings as on 31 December 2014

Particulars No of share % of holdings


Local sponsors 238,151,657 29.66 2,381,516,570 2,266,224,490
Financial institutions 82,595,985 10.29 825,959,850 810,176,790
Foreign investors 1,553,809 0.19 15,538,090 16,727,080
Public issues 480,624,007 59.86 4,806,240,070 4,553,780,770
802,925,458 100.00 8,029,254,580 7,646,909,130

Annual Report 2014 137


15.5 Range wise shareholdings as on 31 December 2014

Range of holding of shares No. of share holders % of shares holding No. of shares
Less than 5,000 78,651 10.42 83,627,600
5,001 to 10,000 5,468 4.75 38,133,165
10,001 to 20,000 2,473 4.25 34,143,886
20,001 to 30,000 702 2.12 16,988,079
30,001 to 40,000 310 1.33 10,716,394
40,001 to 50,000 188 1.06 8,530,358
50,001 to 100,000 394 3.43 27,557,688
100,001 to 200,000 197 3.34 26,838,025
200,001 to 300,000 60 1.88 15,073,822
300,001 to 400,000 46 1.96 15,726,626
400,001 to 500,000 22 1.23 9,844,922
500,001 to 1,000,000 40 3.68 29,569,777
1,000,001 to 10,000,000 75 27.01 216,865,545
10,000,001 to 100,000,000 17 33.54 269,309,571
Total 88,643 100.00 802,925,458

2014 2013
Taka Taka
15.6 Capital Adequacy Ratio (CAR) (Solo Basis)

i) Core capital (Tier- i)

Paid-up capital 8,029,254,580 7,646,909,130


Statutory reserve -Note-16 4,783,513,367 4,283,417,675
General reserve -Note-17 10,162,348 10,162,348
Surplus in profit & loss account -Note-19 1,042,173,555 878,582,630
13,865,103,850 12,819,071,783
ii) Supplementary capital (Tier- ii)

General provision on unclassified Loan -Note-14.5(B) 721,237,444 668,166,117


General provision for off-balance sheet exposures-Note-14.6 345,215,700 274,615,302
General Provision for off-shore banking unit-Note-14.7 3,707,458 206,965
Revaluation reserve on Govt. securities 50% of total-Note-18.2 20,856,792 2,048,949
Assets revaluation reserve 50% of total-Note-18.1 221,574,368 223,331,807
1,312,591,762 1,168,369,140
A) Total capital (Tier-i+Tier-ii) 15,177,695,612 13,987,440,923

Total assets including off-balance sheet items 168,257,574,983 150,278,494,527


B) Total risk weighted assets 112,672,051,518 117,820,225,616
(Details computation of RWA shown in Annexure-G)
C) Required capital ( 10% of Total Risk Weighted Assets) 11,267,205,152 11,782,022,562
D) Surplus (A-C) 3,910,490,460 2,205,418,361

Capital adequacy ratio 13.47% 11.87%


Capital adequacy ratio :

Capital 2014 2013


requirement Required Held Required Held
Tier-I 5.00% 12.31% 5.00% 10.88%
Tier-II 5.00% 1.16% 5.00% 0.99%
Total 10.00% 13.47% 10.00% 11.87%

Annual Report 2014 138


2014 2013
Taka Taka
15.7 Capital Adequacy Ratio (Consolidated Basis)

i) Core capital (Tier- i)


Paid-up capital 8,029,254,580 7,646,909,130
Statutory reserve-Note-16 4,783,513,367 4,283,417,675
General reserve-Note-17 10,162,348 10,162,348
Non-controlling (Minority) interest-Note-15.8 215 215
Surplus in profit & loss account-Note-19(a) 1,046,694,283 889,752,897
13,869,624,793 12,830,242,264
ii) Supplementary capital (Tier- ii)
General provision on unclassified Loan -Note-14.5(B) 721,237,444 668,166,117
General provision for off-balance sheet exposures-Note-14.6 345,215,700 274,615,302
General Provision for off-shore banking unit-Note-14.7 3,707,458 206,965
Revaluation reserve on Govt. securities 50% of total-Note-18.2 20,856,792 2,048,949
Assets revaluation reserve 50% of total-Note-18.1 221,574,368 223,331,807
1,312,591,762 1,168,369,140
A) Total capital (Tier-i+Tier-ii) 15,182,216,554 13,998,611,404
Total assets including off-balance sheet items 169,094,603,926 150,862,048,204
B) Total risk weighted assets 114,351,589,587 118,902,889,105

(Details computation of RWA shown in Annexure-G)

C) Required capital ( 10% of risk weighted assets) 11,435,158,959 11,890,288,911

D) Surplus/(deficit) (A-C) 3,747,057,596 2,108,322,493

Capital adequacy ratio : 13.28% 11.77%

Capital 2014 2013


requirement Required Held Required Held
Tier-I 5.00% 12.13% 5.00% 10.79%
Tier-II 5.00% 1.15% 5.00% 0.98%
Total 10.00% 13.28% 10.00% 11.77%

15.8 Non-controlling (Minority) interest

Share capital 215 200


Profit attributable during the year - 5
Retained earnings - 12
Final dividend paid - (2)
215 215

Annual Report 2014 139


15.9 Name of the directors and their shareholdings:

Sl. Name of Directors Status with Bank Position as on Position as on


as on 31.12.2014 31.12.2014 31.12.2013
1 Alhaj Md. Nurun Newaz Chairman 16,403,547 15,336,712
2 Mr. A.S.M Main Uddin Monem Vice Chairman 16,062,961 15,298,059
3 Mr. Md. Abdul Awal Director 16,878,750 15,296,051
4 Mr. Amjadul Ferdous Chowdhury Director 16,073,131 15,307,744
5 Mr. S.M. Abu Mohsin Director 16,171,936 15,401,845
6 Mr. Abdus Salam Director 16,870,685 16,067,320
7 Mrs. Sohela Hossain Director 16,104,975 15,338,072
8 Mr. Yakub Ali Director 16,060,466 15,295,682
9 Mr. Md. Abul Bashar Director 16,880,250 15,297,493
10 Mr. Md. Harunur Rashid Director 17,833,013 16,983,822
11 Mr. Khairul Alam Chaklader Director 20,047,301 19,092,668
12 Mr. Md. Moinuddin Director 20,916,076 19,920,073
13 Mr. K.A.M.Harun Independent Director - -
14 Mr. Md.Amirul Islam, FCS, FCA Independent Director - -
206,303,091 194,635,541

2014 2013
16 Statutory reserve Taka Taka
Opening balance on 1 January 4,283,417,675 3,818,042,032
Addition during the year (20% of pre-tax profit) 500,095,692 465,375,643
Closing balance at 31 December 4,783,513,367 4,283,417,675
17 General reserve
Opening balance on 1 January 10,162,348 10,162,348
Addition during the year - -
Less : Adjusted during the year - -
Closing balance at 31 December 10,162,348 10,162,348
18 Other reserves
18.1 Assets revaluation reserve on land and building
Opening balance 464,950,159 467,162,980
Less : Provision for deferred tax 18,286,545 14,014,889
446,663,614 453,148,091
Less: Depreciation on revalued amount transferred to retained earnings 3,514,878 6,484,477
443,148,736 446,663,614
Add: Reverse deferred tax on revaluation on land - -
443,148,736 446,663,614
Add: Addition during the year - -
443,148,736 446,663,614
18.2 Revaluation reserve on Govt. securities (treasury bills & bonds)-HTM
Opening balance 4,097,898 16,581,364
Add: addition during the year 161,515,485 1,874,937
Held to maturity (HTM ) 8,007,887 -
Held for trading (HFT) 151,156,851 -
Treasury bond (RM) 2,350,747 1,874,937
Less: adjusted during the year (123,899,800) (14,358,403)
Held to maturity (HTM ) - -
Held for trading (HFT) (123,899,800) (14,358,403)
Closing balance 41,713,583 4,097,898
484,862,319 450,761,512
18.3 Foreign currency translation gain/(Loss)
Opening balance 2,518 -
Add: Transfer during the year (279,155) 2,518
Closing balance (276,637) 2,518

Annual Report 2014 140


2014 2013
Taka Taka
19 Surplus in profit and loss account

Retained earnings brought forward from previous year ( Note-19.1 ) 37,425,151 199,626,621
Profit for the year 1,501,329,218 1,137,847,175
Transfer to statutory reserve (500,095,692) (465,375,643)
Transferred to general reserve - -
Transferred from general reserve - -
1,038,658,677 872,098,153
Depreciation on revalued amount of building Trans. to retained earnings 3,514,878 6,484,477
1,042,173,555 878,582,630
19(a) Consolidated surplus in profit and loss account

Retained earning brought forward from previous year 48,592,899 208,145,541


Profit for the year 1,494,682,198 1,140,498,525
General reserve - -
Interim dividend - -
Transfer to statutory reserve (500,095,692) (465,375,643)
1,043,179,405 883,268,425
Less: Minority Interest - (5)
1,043,179,405 883,268,420
Dep.on revalued amount of building Trans. to retained earnings 3,514,878 6,484,477
1,046,694,283 889,752,897
19.1 Retained earnings
Conventional Banking 37,425,151 199,626,621
Off-Shore Banking Unit - -
37,425,151 199,626,621
Retained earnings
Conventional Banking
Opening balance 878,585,149 886,147,736
Expenditure charged wrongly to bank instead of NCCB Capital Ltd. - 8,652,435
Bonus share transferred to paid-up capital (382,345,450) (695,173,550)
Cash dividend paid (458,814,548) -
Closing balance 37,425,151 199,626,621
19.2 Consolidated retained earnings
Opening balance 889,752,897 894,666,656
Add: Expenditure charged wrongly to bank instead of NCCB Capital Ltd. - 8,652,435
Bonus share transferred to paid-up capital (382,345,450) (695,173,550)
Cash dividend paid (458,814,548) -
Closing balance 48,592,899 208,145,541
19.3 Consolidated foreign currency translation gain/(Loss)
NCC Bank Limited (Note-18.3) (276,637) 2,518
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 2,672,346 907,653
2,395,709 910,171
20 Contingent liabilities :

20.1 Acceptances and endorsement 11,771,729,896 12,350,769,134


20.2 Letter of guarantee
Money for which the Bank is contingently
liable in respect of guarantees issued

Annual Report 2014 141


2014 2013
Taka Taka
Directors 111,000 9,160,000
Government 6,337,715,888 1,903,884,754
Banks and other financial institutions 75,828,866 1,047,173,500
Others 4,981,467,349 3,711,699,181
Total 11,395,123,103 6,671,917,435
Less: Margin - Note 13.5 615,614,878 523,672,845
10,779,508,225 6,148,244,590
20.3 Letter of credit issued
Documentary Credit and short-term trade-related transactions 10,890,049,609 8,429,713,928
Forward Assets purchased and forward deposits placed - -
Undrawn formal standby facilities, credit facilities and other commitments
Spot and forward foreign exchange rate contract - -
Other exchange contract - -
Total 10,890,049,609 8,429,713,928
Less: Margin - Note 13.5 807,903,655 703,851,845
10,082,145,954 7,725,862,083

20.4 Bills for collection 295,242,380 3,894,651


21 Income statement
Income:
Interest, discount and similar income (Note-21.1) 14,631,734,339 14,953,471,792
Dividend income (Note-21.2) 61,042,636 42,459,567
Fee, commission and brokerage (Note-21.3) 635,013,672 653,207,867
Gains less losses arising from dealing in securities - -
Gains less losses arising from investment securities - -
Gains less losses arising from dealing in foreign currencies 199,627,853 259,232,444
Income from non-banking assets - -
Other operating income (Note-26) 344,308,980 319,522,236
Profit less losses on interest rate changes - -
15,871,727,480 16,227,893,906
Expenses
Interest, fee and commission (Note-23) 9,339,227,961 10,154,704,915
Losses on loans and advances - -
Administrative expenses (Note-21.4) 2,383,473,137 1,982,812,661
Other operating expenses (Note-36) 254,914,885 240,598,299
Depreciation on banking assets (Note-35) 147,309,634 150,964,056
12,124,925,617 12,529,079,931
3,746,801,863 3,698,813,975
21.1 Interest, discount and similar income
Interest income on loans and advances 11,999,643,549 12,097,573,754
Interest on balances with other banks and financial institutions 20,140,619 96,524,718
Interest on treasury bill 185,091,831 50,792,414
Interest on Reverse Repo (Treasury bills) 1,306,352 -
Interest on treasury bond (RM) 522,508,680 531,222,265
Gain on sale of shares 39,071,075 62,755,348
Capital gain on sale of treasury bonds 546,140,754 972,228,992
Interest on treasury bond (HTM) 1,031,662,646 1,047,290,292
Interest on treasury bond (HFT) 267,340,300 69,473,704
Interest on zero coupon bonds 4,627,783 1,834,347
Others 14,200,750 23,775,958
14,631,734,339 14,953,471,792

Annual Report 2014 142


2014 2013
Taka Taka
21.2 Dividend income
Dividend on shares 61,042,636 22,459,569
Dividend from NCCB Securities and Financial Services Ltd. - 19,999,998
61,042,636 42,459,567
21.3 Fee, commission and brokerage

Commission 635,013,672 653,207,867


Brokerage - -
635,013,672 653,207,867
21.4 Administrative expenses

Salary and allowances (Note-27) 1,738,691,455 1,424,775,370


Rent, taxes, insurance, electricity etc. (Note-28) 282,526,645 244,398,065
Legal expenses (Note-29) 19,889,646 14,798,420
Postage, stamp and telecommunication (Note-30) 28,109,335 27,104,240
Stationery, printing, advertisement etc. (Note-31) 70,819,994 77,635,840
Managing Director's salary & allowances (Note-32) 9,204,354 8,880,000
Director's fees (Note-33) 1,770,000 1,495,000
Audit fees (Note-34) 150,000 150,000
Repairs & maintenance of bank's assets (Note-35) 232,311,708 183,575,726
2,383,473,137 1,982,812,661

22 Interest income
Conventional banking (Note-22.1) 12,016,454,445 12,193,950,023
Off-shore banking unit (Note-22.2) 10,555,063 320,301
12,027,009,508 12,194,270,324
Less: intertransaction between OBU and conventional banking 7,225,340 171,852
12,019,784,168 12,194,098,472
22.1 Conventional banking
Interest on loans and advances
Loan ( General) 252,224,902 493,236,786
Loan against house building 178,797,672 219,513,219
Loan against imported merchandise 14,095,975 19,629,038
Loan against trust receipts 2,098,168,575 2,554,304,545
Loan against packing credit 11,443,599 12,709,040
Demand Loan 27,851,625 -
SOD against financial obligation 821,895,586 806,944,949
SOD against real estate - 60,819
SOD general 1,360,733,710 1,354,873,894
SOD export 30,029,817 46,185,863
Discount -EDF 525,374 -
C.C. against pledge 12,118,879 11,959,387
C.C. against hypothecation 2,315,661,988 2,288,236,647
C.C. against export 1,334,050 665,510
Forced loan 367,539,007 265,958,852
Inland bill purchased 6,625,944 2,070,403
FDBP & discounted 6,065,590 8,869,972
Payment against documents 72,387,544 125,991,286
Local documentary bills purchased 247,625,209 270,648,034
Transport loan 40,271,219 54,702,346
Project loan - 6,256,943
Lease finance 211,646,902 224,786,183

Annual Report 2014 143


2014 2013
Taka Taka

Small business loan 114,919,778 106,176,957


House renovation loan 3,033,070 4,951,293
Personal loans 1,409,090 1,008,471
Consumers finance scheme 35,570 63,862
Home improvement loan 21,168,268 14,025,658
Short Term Finance (STF) 84,232,124 -
Agri credit 202,581,623 173,971,495
Festival small business loan 7,996,365 11,480,456
Term loan (small, medium/large) 2,088,448,267 1,934,191,915
Special housing loan 160,751,758 159,624,902
Housing loan under refinance scheme 2,612,114 2,925,733
Staff P.F loan 20,877,479 21,922,787
Staff house building loan 18,575,732 20,019,770
Staff car loan 3,475,457 1,706,842
Credit card 97,657,565 87,568,321
Car loan scheme 7,269,322 11,253,059
Short term loan 437,486,635 388,491,312
Garments & foot wear cluster 777,412 611,485
Time loan 638,505,108 389,627,168
OBU 7,227,040 -
Education loan scheme 230,882 200,103
11,996,313,826 12,097,425,305
Interest on balances with other banks and financial institutions
Fixed deposits 11,785,204 69,491,250
Short term deposits 25,398 51,367
Nostro accounts 3,643,739 5,242,214
Money at call & short notice 3,634,639 17,970,833
Financial institutions 294,583 2,436,389
Discount on bills purchased 757,056 1,332,665
20,140,619 96,524,718
12,016,454,445 12,193,950,023
22.2 Off-Shore Banking Unit 10,555,063 320,301

22(a) Consolidated interest income

NCC Bank Limited (Note-22) 12,019,784,168 12,194,098,472


NCCB Securities and Financial Services Limited 251,905,890 466,086,881
NCCB Capital Limited - 10,854,216
NCCB Exchange (UK) Limited - -
12,271,690,058 12,671,039,569
Less: Inter company transactions 269,353,226 277,731,180
12,002,336,832 12,393,308,389
23 Interest paid on deposits and borrowings
Conventional banking (Note-23.1) 9,339,227,961 10,154,704,915
Off-shore banking unit (Note-23.2) 7,225,340 171,852
9,346,453,301 10,154,876,767
Less: intertransaction between OBU and conventional banking 7,225,340 171,852
9,339,227,961 10,154,704,915

Annual Report 2014 144


2014 2013
Taka Taka
23.1 Conventional banking
Interest paid on deposits and borrowings
Savings deposits 474,346,437 438,731,153
Short notice deposits 369,013,097 428,187,786
Fixed deposits 4,899,850,029 6,182,310,776
Special savings scheme 1,492,032,979 1,215,150,915
Special deposit scheme 506,419,804 360,465,858
NCCB youngster maximus & money plant scheme 2,638,224 1,150,000
Discount 27,777 945
Borrowings from banks, financial institutions, etc. 283,022,885 448,272,089
REPO agreement with Bangladesh Bank 263,436,901 259,528,524
Wage earners welfare DPS 13,166,872 20,062,712
Premium term deposits 40,145,623 35,095,488
Instant earning term deposits 31,500 433,500
Money double program 949,232,735 751,112,960
Money triple program 45,863,098 13,793,978
Others - 408,231
9,339,227,961 10,154,704,915
23.2 Off-Shore Banking Unit 7,225,340 171,852

23(a) Consolidated interest paid on deposits, borrowings, etc.


NCC Bank Limited (Note-23) 9,339,227,961 10,154,704,915
NCCB Securities and Financial Services Limited 269,353,226 266,876,964
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
9,608,581,187 10,421,581,879
Less: Inter company transactions 269,353,226 277,731,180
9,339,227,961 10,143,850,699

24 Income from investments


Dividend on shares 61,042,636 22,459,569
Dividend from NCCB Securities and Financial Services Ltd. - 19,999,998
Interest on treasury bills 185,091,831 50,792,414
Interest on Reverse Repo (Treasury bills) 1,306,352 -
Interest on treasury bond (RM) 522,508,680 531,222,265
Gain on sale of shares 39,071,075 62,755,348
Capital gain on sale of treasury bonds 546,140,754 972,228,992
Interest on treasury bond (HTM) 1,031,662,646 1,047,290,292
Interest on treasury bond (HFT) 267,340,300 69,473,704
Interest on zero coupon bonds 4,627,783 1,834,347
Others 14,200,750 23,775,958
2,672,992,807 2,801,832,887
24(a) Consolidated income from investments
NCC Bank Limited (Note-24) 2,672,992,807 2,801,832,887
NCCB securities and Financial Services Limited 134,250 465,942
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
2,673,127,057 2,802,298,829
Less: Inter company transactions - 19,999,998
2,673,127,057 2,782,298,831

Annual Report 2014 145


2014 2013
Taka Taka
25 Commission, exchange and brokerage
Commission:
Commission on bill purchased 7,564,995 10,394,061
Commission on remittances 17,812,732 24,185,799
Commission on letter of guarantee 153,166,319 126,499,508
Commission on letter of credit 184,706,490 192,830,877
Commission on pur./sale-share/securities 522,532 517,763
Commission on sanchaypatra 3,683,484 381,417
Commission on back to back LC. 25,433,804 32,331,498
Letter of credit advising commission & handling charge 36,904,047 35,656,044
Commission on acceptance of BTB L/C 26,015,720 42,671,880
Commission on acceptance ( other than BTB) 109,031,219 100,722,606
Commission - Miscellaneous 6,522,778 6,488,356
Commission on L/C confirmation 132,428 14,824
Underwriting commission 33,465,835 59,764,514
Commission on instrument cancellation 3,150 6,450
ATM POS commission 230 11,663
Commission from national prize bonds 33,000 482,000
Money gram/others 30,014,909 20,248,607
635,013,672 653,207,867
Exchange:

Exchange gain net off exchange losses 199,627,853 259,232,444


Brokerage - -
834,641,525 912,440,311
25(a) Consolidated commission, exchange & brokerage

NCC Bank Limited (Note-25) 834,641,525 912,440,311


NCCB Securities and Financial Services Limited 102,173,092 102,914,461
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 5,674,031 2,710,515
942,488,648 1,018,065,287

26 Other operating income


Rent locker 3,298,297 2,297,885
Rent godown 1,751,300 1,175,190
Postage recoveries 7,082,016 9,385,591
Telex, telegram, trunk call, fax.swift etc. recoveries 30,751,676 28,632,037
Incidental charge recoveries 1,000 57,475
Legal charge recoveries 371,525 3,000
Service charges 54,941,399 51,903,443
ATM transaction fees 828,699 911,118
Profit on sale of fixed assets 1,375,396 4,253,362
Risk fund 5,589,047 6,934,399
Account maintenance fees 82,877,438 74,462,800
Card fees & others 44,815,413 47,529,651
Banking & Clearing Charge 10,854,202 -
Exchange equalization gain 26,913 5,992
Miscellaneous earnings 83,258,869 76,837,322
Application and processing fees 16,485,790 15,132,971
344,308,980 319,522,236

Annual Report 2014 146


2014 2013
26(a) Consolidated other operating income Taka Taka

NCC Bank Limited (Note-26) 344,308,980 319,522,236


NCCB Securities and Financial Services Limited 3,412,269 4,773,187
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
347,721,249 324,295,423
27 Salary & allowances
Basic salary 737,497,408 618,806,492
House rent allowance 264,217,754 171,091,642
Allowances ( Note 27.1) 265,808,178 253,865,200
Bank's contribution to provident fund 62,453,898 51,916,321
Bonus 297,497,800 231,126,000
Gratuity-(Note-14.10) 110,270,549 97,675,715
Honorarium 945,868 294,000
1,738,691,455 1,424,775,370
27.1 Allowances
Entertainment allowance 38,094,102 57,280,712
Medical allowance 117,755,721 116,501,648
Washing allowance 1,869,973 1,071,281
Evening banking 514,950 519,916
Casual wages 39,462,670 29,957,804
Other allowance 68,110,762 48,533,839
265,808,178 253,865,200
27(a) Consolidated Salary & allowances
NCC Bank Limited (Note-27) 1,738,691,455 1,424,775,370
NCCB Securities and Financial Services Limited 30,451,984 24,682,178
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,769,143,439 1,449,457,548
28 Rent, taxes, insurance, electricity etc.
Rent :
Office 144,991,820 131,977,820
Clearing house 39,550 39,913
145,031,370 132,017,733
Rates and taxes:
Rates 545,060 2,064,265
Taxes 18,715,077 1,855,275
19,260,137 3,919,540
Insurance:

Cash 5,649,341 5,203,622


Vehicles 1,413,563 1,481,940
Deposits 58,261,862 55,938,844
65,324,766 62,624,406
Electricity :

Electricity - office 51,105,232 43,935,180


Electricity - residence 1,805,140 1,901,206
52,910,372 45,836,386
282,526,645 244,398,065

Annual Report 2014 147


2014 2013
28(a) Consolidated rent, taxes, insurance, electricity etc. Taka Taka
NCC Bank Limited (Note-28) 282,526,645 244,398,065
NCCB Securities and Financial Services Limited 12,138,076 11,940,819
NCCB Capital Limited 225,196 2,838,240
NCCB Exchange (UK) Limited 4,073,803 4,011,511
298,963,720 263,188,635
29 Legal expenses
Legal charge 17,014,081 14,452,120
Stamp charge 145,755 71,145
Consultancy fee 2,471,810 25,155
Credit Rating fee 258,000 250,000
19,889,646 14,798,420
29 (a) Consolidated legal expenses
NCC Bank Limited (Note-29) 19,889,646 14,798,420
NCCB Securities and Financial Services Limited - -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
19,889,646 14,798,420
30 Postage, stamp and telecommunication
Postage 9,261,535 10,153,336
Telex/swift/internet 7,722,548 6,832,475
Telephone -office 7,256,146 6,849,952
Telephone -residence 3,869,106 3,268,477
28,109,335 27,104,240
30(a) Consolidated Postage,stamp and telecommunication
NCC Bank Limited (Note-30) 28,109,335 27,104,240
NCCB Securities and Financial Services Limited 682,169 565,585
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
28,791,504 27,669,825
31 Stationery, printing, advertisement etc.
Printing and stationery:
Printed stationery 19,792,171 13,045,487
Security stationery 12,143,290 11,734,291
Petty stationery 12,172,110 12,575,346
44,107,571 37,355,124
Publicity and advertisement 26,712,423 40,280,716
70,819,994 77,635,840
31(a) Consolidated Stationery, printing, advertisement etc.
NCC Bank Limited (Note-31) 70,819,994 77,635,840
NCCB Securities and Financial Services Limited 497,991 488,610
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
71,317,985 78,124,450
32 Managing Director's salary & allowances
Basic salary 4,612,903 4,800,000
Festival bonus 800,000 800,000
* Incentive bonus 1,500,000 1,000,000
Entertainment allowance 505,968 360,000
Medical allowance 234,516 720,000
House Rent allowance 1,550,967 1,200,000
9,204,354 8,880,000

* Incentive bonus disbursed for 2014 included Tk.10,00,000/- in favour to our Ex-Managing Director & CEO.

Annual Report 2014 148


2014 2013
Taka Taka
33 Directors' fees

For attending the meeting of the Board / executive committee/


audit committee members are paid @ Tk 5,000 per attendance per person 1,770,000 1,495,000
33(a) Consolidated Directors' fees

NCC Bank Limited (Note-33) 1,770,000 1,495,000


NCCB Securities and Financial Services Limited 190,500 -
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,960,500 1,495,000
34 Audit fees 150,000 150,000

34(a) Consolidated audit fees

NCC Bank Limited (Note-34) 150,000 150,000


NCCB Securities and Financial Services Limited 29,250 15,000
NCCB Capital Limited 5,750 5,000
NCCB Exchange (UK) Limited - -
185,000 170,000
35 Repairs, maintenance, amortization and depreciation
Repairs & maintenance :
Repairs & maintenance of fixed assets 129,896,717 72,804,169
Amortization of software 20,663,887 32,674,845
Renovation & maintenance of premises 81,751,104 78,096,712
232,311,708 183,575,726
Depreciation: (Annexure 'D')
Furniture and fixtures 29,531,565 29,902,007
Machinery and equipment 86,773,595 90,393,246
Vehicles 13,976,316 13,204,025
Property/ apartments/Buildings 17,028,158 17,464,778
147,309,634 150,964,056
379,621,342 334,539,782
35(a) Consolidated Repairs, maintenance, amortization and depreciation
NCC Bank Limited (Note-35) 379,621,342 334,539,782
NCCB Securities and Financial Services Limited 6,929,392 8,145,938
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 1,704,804 2,072,090
388,255,538 344,757,810
36 Other expenses
Conventional Banking 254,914,885 240,598,299
Off-Shore Banking Unit - -
254,914,885 240,598,299
36.1 Other expenses
Conventional Banking
Entertainment 20,876,969 21,392,506
Car expenses 46,923,333 41,713,401
Paper and periodicals 1,531,445 1,375,548
Trade subscription 7,100,126 16,504,385
Traveling & conveyance 68,299,607 54,821,265
Cash carrying charges 2,225,715 1,739,250
Liveries and uniform 2,331,838 2,344,763

Annual Report 2014 149


2014 2013
Taka Taka
Water sewerage and gas 5,718,735 6,008,547
Medical charges 55,722 428,233
Laundry and cleaning 1,227,353 1,281,336
Training expenses 3,535,630 2,982,627
Business promotion 13,308,583 9,537,693
Donation 10,358,168 20,356,900
Utility charges 9,313,166 9,444,574
Traveling and haltage (directors ) 1,632,000 1,331,446
Refreshment and dinner ( directors ) 1,148,485 1,100,930
Revaluation/loss on BGTB/T.Bill (HFT) 31,981,588 21,455,844
Welfare and recreation 113,000 2,968,375
Other bank charge 7,670,162 4,985,673
CDBL charge 261,733 289,332
Miscellaneous expenses 1,156,930 610,821
Credit card service charge 12,081,822 12,745,070
Sales commission 62,775 3,179,780
Superannuation fund 6,000,000 2,000,000
254,914,885 240,598,299
Off-Shore Banking Unit - -
254,914,889 240,598,299
36(a) Consolidated other expenses
NCC Bank Limited (Note-36) 254,914,885 240,598,299
NCCB Securities and Financial Services Limited 16,194,627 14,676,463
NCCB Capital Limited 21,572 31,142
NCCB Exchange (UK) Limited 9,568,562 7,621,036
280,699,646 262,926,940
37 Cash received from other operating activities
Conventional Banking
Other operating income 889,074,338 1,312,001,256
Exchange earning 199,627,853 259,232,444
1,088,702,191 1,571,233,700
Off-Shore Banking Unit - -
1,088,702,191 1,571,233,700
37(a) Consolidated cash received from other operating activities

NCC Bank Limited (Note-37) 1,088,702,191 1,571,233,700


NCCB Securities and Financial Services Limited 3,412,272 3,618,273
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
1,092,114,463 1,574,851,973
38 Cash paid for other operating activities
Conventional Banking
Expenses for the year 649,823,712 459,212,953
Add: Opening accrued expenses 3,459,056 5,729,203
Less: Closing accrued expenses (3,873,441) (3,459,056)
649,409,327 461,483,100
Off-Shore Banking Unit - -
649,409,327 461,483,100

Annual Report 2014 150


2014 2013
38(a) Consolidated cash paid for other operating activities Taka Taka

NCC Bank Limited (Note-38) 649,409,327 461,483,100


NCCB Securities and Financial Services Limited 33,170,531 30,755,551
NCCB Capital Limited 21,572 2,874,382
NCCB Exchange (UK) Limited 14,865,870 13,631,579
697,467,300 508,744,612
39 Increase/(decrease) of other assets
Conventional Banking
Closing other assets:
Stationery in hand 9,483,941 11,820,590
Stamps and stamped forms in hand 3,170,134 2,715,071
Advance deposit 4,825,320 2,280,080
Advance against rent 146,136,367 158,292,633
Suspense account 59,416,347 22,161,570
Software 52,168,785 66,230,913
Others 3,180,447,581 5,027,613,642
3,455,648,475 5,291,114,499
Opening other assets:
Stationery in hand 11,820,590 17,677,910
Stamps and stamped forms in hand 2,715,071 2,319,838
Advance deposit 2,280,080 2,017,130
Advance against rent 158,292,633 121,152,137
Suspense account 22,161,570 23,582,639
Software 66,230,913 64,914,020
Others 3,146,934,763 3,445,835,915
Income tax paid during the year 723,735,054 1,320,176,856
Increase/(decrease) for the year 4,134,170,674 4,997,676,445
(678,522,199) 293,438,054
Off-Shore Banking Unit - -
(678,522,199) 293,438,054
39(a) Increase/(decrease) of consolidated other assets
Closing other assets:
Stationery in hand 9,483,941 11,820,590
Stamps and stamped forms in hand 3,170,134 2,715,071
Advance deposit 4,825,320 2,280,080
Advance against rent 146,136,367 158,292,633
Suspense account 59,416,347 22,161,570
Software 52,168,785 66,230,913
Others 952,806,247 2,927,666,668
1,228,007,141 3,191,167,525
Opening other assets:
Stationery in hand 11,820,590 17,677,910
Stamps and stamped forms in hand 2,715,071 2,319,838
Advance deposit 2,280,080 2,017,130
Advance against rent 158,292,633 121,152,137
Suspense account 22,161,570 23,582,639
Software 66,230,913 64,914,020
Others 882,436,453 1,313,600,266
Income tax paid during the year 764,227,838 1,379,690,275
Increase/(decrease) for the year 1,910,165,148 2,924,954,215
(682,158,007) 266,213,310

Annual Report 2014 151


2014 2013
40 Increase/(decrease) of other liabilities Taka Taka
Conventional Banking
Closing other liabilities
Interest suspense 1,488,795,712 979,431,588
Inter branch transaction account 254,763,149 253,955,174
1,743,558,861 1,233,386,762
Opening other liabilities
Interest suspense 979,431,588 613,309,927
Inter branch transaction account 253,955,174 252,104,212
1,233,386,762 865,414,139
Increase/(decrease) for the year 510,172,099 367,972,623
Off-Shore Banking Unit - -
510,172,099 367,972,623
40(a) Increase/(decrease) of consolidated other liabilities
NCC Bank Limited (Note-40) 510,172,099 367,972,623
NCCB Securities and Financial Services Limited 211,160,199 137,848,791
NCCB Capital Limited - -
NCCB Exchange (UK) Limited - -
721,332,298 505,821,414
41 Cash and cash equivalents
Conventional Banking
Cash in hand 1,173,484,082 1,256,477,852
Balance with Bangladesh Bank and Sonali Bank 7,438,676,826 6,618,784,769
Balance with other bank and financial institutions 2,407,581,410 637,380,180
Prize bonds 4,586,400 4,814,600
11,024,328,718 8,517,457,401
Off-Shore Banking Unit - -
11,024,328,718 8,517,457,401
41(a) Consolidated cash and cash equivalents

NCC Bank Limited (Note-41) 11,024,328,718 8,517,457,401


NCCB Securities and Financial Services Limited 3,347,304 13,969,598
NCCB Capital Limited - -
NCCB Exchange (UK) Limited 3,465,575 179,280
11,031,141,597 8,531,606,279
42 Earnings per share (EPS)

Net Profit after tax for the year 1,501,329,218 1,137,847,175


Number of Ordinary share outstanding 802,925,458 802,925,458

Earnings per share (EPS) 1.87 1.42

Earnings per share have been calculated in accordance with BAS-33 "Earnings per share". Previous year's figures
have been adjusted for the issue of bonus shares during the year.

42 (a) Consolidated earnings per share

Net profit after tax for the year 1,494,682,198 1,140,498,525


Number of ordinary share outstanding 802,925,458 802,925,458

Consolidated earnings per share 1.86 1.42

Annual Report 2014 152


Earnings per share have been calculated in accordance with BAS-33 "Earnings per share". Previous year's figures
have been adjusted for the issue of bonus shares during the year.

43 Events after balance sheets dates

The Board of Directors in its 316th meeting held on 06 May 2015 approved the financial statements and also
authorized the same for public issue. The Board also decided to recommend payment of 10% (ten percent) stock
dividend for the year 2014 for approval by the shareholders in the next ensuing Annual General Meeting (AGM).
There are no other material events for disclosure.

Chairman Director Director Managing Director & CEO

Annual Report 2014 153


NCC Bank Limited Annexure-A
BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS
Outside Bangladesh - Note 6.2
as on December 31, 2014

In demand deposit accounts (non interest bearing) with:


2014 2013

Currency Amount in Conversion Amount in Amount in Conversion Amount in


Name of the Bank Name Foreign rate per BDT. Foreign rate per BDT.
Currency unit F.C. Currency unit F.C.
Standard Chartered Bank, Singapore SGD 113,858.84 58.77 6,691,518 7,794.66 60.70 473,157
Standard Chartered Bank, Tokyo J.YEN 3,329,765.00 0.65 2,153,026 2,943,942.00 0.73 2,157,615
HSBC Bank, New York USD - - - 38,558.33 77.15 2,974,775
Bank of Tokyo Mitsubishi, Japan J.YEN 3,186,327.00 0.65 2,060,279 2,202,925.00 0.73 1,614,524
Standard Chartered Bank, Kolkata ACU - - - 446,139.87 77.15 34,419,691
Banko Itau USD - - - 11,846.88 77.15 913,987
American Express Bank, Colombo ACU 16,711.32 77.90 1,301,812 40,020.73 77.15 3,087,599
Commerze Bank AG EUR 67,065.06 94.05 6,307,281 12,134.19 105.52 1,280,394
United Bank Ltd., Karachi ACU 35,881.34 77.90 2,795,156 67,794.49 77.15 5,230,345
UBAF,Japan J.YEN - - - 416,800.00 0.73 305,473
Nepal Bangladesh Bank, Nepal ACU 189,226.62 77.90 14,740,754 139,106.62 77.15 10,732,076
Standard Chartered Bank, London EUR 15,188,355.33 94.05 1,428,422,291 - - -
AXIS Bank Kolkata ACU 63,005.87 77.90 4,908,157 59,991.94 77.15 4,628,378
Bank of Bhutan, Phuentsholing ACU 5,695.25 77.90 443,660 24,948.43 77.15 1,924,771
Standard Chartered Bank, London GBP 60,432.62 120.39 7,275,664 - - -
CITI Bank NA USD 1,282,073.92 77.90 99,873,558 - - -
Uni Credio Italiano Spa EUR 675,812.11 94.05 63,558,237 21,650.08 105.52 2,284,506
Nova Scotia Canada CAD - - - 25,547.54 72.04 1,840,330
Sonali Bank, UK GBP 4,770.52 120.39 574,337 - - -
Sonali Bank Kolkata ACU - - - 348,744.32 77.15 26,905,624
Sonali Bank, London USD 829,759.50 77.90 64,638,265 - - -
Habib Metropolitan Bank ACU 99,877.80 77.90 7,780,481 61,879.44 77.15 4,773,999
WESTPACBC AUD 29,501.00 63.30 1,867,458 12,619.00 68.32 862,083
Mashreq Bank, Kolkata ACU - - - 1,110,037.98 77.15 85,639,430
Off-shore Banking Unit USD 67,211.51 77.90 5,235,777 - - -
1,720,627,712 192,048,757

In demand deposit accounts (interest bearing) with:


Currency Amount in Conversion Amount in Amount in Conversion Amount in
Name of the Bank Name Foreign rate per BDT. Foreign rate per BDT.
Currency unit F.C. Currency unit F.C.
CITI Bank NA USD - - - 1,604,825.79 77.15 123,812,310
Standard Chartered Bank, New York USD 2,808,302.59 77.90 218,766,772 - - -
Standard Chartered Bank, London EUR 15,188,355.33 94.05 1,428,422,291 122,034.37 105.52 12,877,006
218,766,772 136,689,316
1,939,394,484 328,738,073

Annual Report 2014 154


NCC Bank Limited Annexure-B

INVESTMENT IN SHARES
As on 31 December 2014

Sl. No. of Quoted rate per Total Market


Name of Company Face Value Cost value share as on Value as at
No Shares
31-12-2014 31.12.2013
Quoted:
1 AB Bank Limited 10 108,337 6,067,093 29.90 3,239,276
2 Agrani Insurance Co. Limited 10 146,107 10,016,563 18.70 2,732,201
3 Al-Arafa Islami Bank Limited 10 2,922,829 73,613,875 14.90 43,550,152
4 Asia Insurance Limited 10 77,339 6,999,050 22.50 1,740,128
5 Asia Pacific General Insurance Limited 10 790,500 30,800,366 19.20 15,177,600
6 Bangladesh Auto Cars Limited 10 18,050 223,907 47.50 857,375
7 Bangladesh General Insurance Co. 10 110,250 5,620,658 21.40 2,359,350
8 Bank Asia Limited 10 1,017,610 25,382,039 16.70 16,994,087
9 Bata Shoe Co. (BD) Limited 10 5,000 3,008,892 1,172.10 5,860,500
10 Bay Leasing & Investment Limited 10 930,584 71,047,947 29.90 27,824,462
11 Beximco Limited 10 57,858 6,685,800 36.40 2,106,031
12 Beximco Pharma Limited 10 384 25,200 58.70 22,541
13 Bangladesh Submarine Cable Company Limited 10 143,500 26,650,837 116.70 16,746,450
14 BSRM Steel Limited 10 69,690 9,225,121 87.70 6,111,813
15 Dacca Dyeing & Manufacturing Co. Limited 10 159,236 6,570,400 14.40 2,292,998
16 Dhaka Electric Supply Company Limited 10 987,254 74,738,248 69.50 68,614,153
17 Confidence Cement Limited 10 35,000 5,298,842 106.70 3,734,500
18 Eagle Star Textile Mills Limited 10 254,700 4,227,951 9.90 2,521,530
19 Eastern Bank Limited 10 230,400 8,994,717 27.20 6,266,880
20 Eastern Cables Limited 10 24,590 277,852 118.40 2,911,456
21 Eastland Insurance Limited 10 185 11,650 34.30 6,346
22 EnboyTextiles Limited 10 772 39,678 51.60 39,835
23 Exim Bank Limited 10 8,437 55,150 11.10 93,651
24 Family Textile (BD) Limited 10 52,000 1,572,746 21.90 1,138,800
25 Fareast Life Insurance Co. Limited 10 61,525 7,078,425 75.10 4,620,528
26 First Lease Finance & Investment Limited 10 45,832 1,601,860 19.50 893,724
27 GBP Power Limited 10 132,250 4,324,100 23.30 3,081,425
28 GPH Ispat Limited 10 127,050 8,076,250 45.90 5,831,595
29 Grameenphone Limited 10 50,000 11,564,424 361.90 18,095,000
30 Green Delta Insurance Company Limited 10 158,878 16,685,130 74.10 11,772,860
31 Green Delta Mutual Fund 10 2,540,000 24,036,815 4.60 11,684,000
32 ICB Islamic Bank Limited 10 400,100 5,490,645 5.50 2,200,550
33 IDLC Finance Limited 10 305,925 27,466,708 74.70 22,852,598
34 Islami Bank Bangladesh Limited 10 3,217 56,132 23.40 75,278
35 Jamuna Bank Limited 10 650,968 19,670,799 12.30 8,006,906
36 Jamuna Oil Company Limited 10 195,300 38,435,918 205.90 40,212,270
37 Karnaphuli Insurance Limited 10 155,505 5,763,830 17.40 2,705,787
38 Khulna Power Co. Limited 10 103,201 5,698,282 57.00 5,882,457
39 Lafarge Surma Cement Limited 10 100,000 4,640,671 123.00 12,300,000
40 Lanka Bangla Finance Limited 10 1,265,881 86,762,006 44.00 55,698,764
41 Makson Spinning Mills Limited 10 241,171 8,706,149 13.20 3,183,457
42 MBL 1st Mutual Fund 10 1,000,000 10,000,000 4.50 4,500,000
43 Meghna Petrolium Limited 10 110,193 16,994,756 211.00 23,250,723
44 Mercantile Bank Limited 10 222,530 4,168,547 13.70 3,048,661
45 Mercantile Insurance Co. Limited 10 563,000 19,424,350 17.20 9,683,600
46 MI Cement Factory Limited 10 4,021 302,231 72.20 290,316
47 MJL Bangladesh Limited 10 46,000 6,360,450 125.00 5,750,000
48 National Bank Limited 10 1,003,776 22,385,193 11.40 11,443,046
49 Navana CNG Limited 10 707,890 61,467,196 65.40 46,296,006
50 NCCBL Mutual Fund-1 10 6,573,129 50,000,000 5.60 36,809,522
51 NCCBL Mutual Fund 10 15,000,000 150,000,000 5.60 84,000,000
52 NLI 1st Mutual Fund 10 3,300,000 30,000,000 8.00 26,400,000
53 Olympic Industries Limited 10 39,592 511,650 227.30 8,999,262
54 Padma Oil Company Limited 10 45,804 9,992,625 251.60 11,524,286
55 Peoples Leasing & Financial Services Limited 10 608,088 48,205,403 23.10 14,046,833
56 Power Grid Co. Bangladesh Limited 10 27,500 2,004,762 40.40 1,111,000

Annual Report 2014 155


Sl. No. of Quoted rate per Total Market
Name of Company Face Value Cost value share as on Value as at
No Shares
31-12-2014 31.12.2013
57 Phoenix Finance and Investment Limited 10 160,000 6,140,550 26.90 4,304,000
58 Premier Leasing & Finance Limited 10 390,495 13,236,181 10.20 3,983,049
59 Prime Bank Limited 10 495 11,223 19.60 9,702
60 Prime Islami Life Insurance Company Limited 10 4,128 355,508 79.40 327,763
61 Prime Textile Mills Limited 10 10,000 300,000 17.70 177,000
62 Pubali Bank Limited 10 701,790 31,232,515 25.50 17,895,645
63 R.N. Spinning Mills Limited 10 1,256,500 52,019,169 29.00 36,438,500
64 RAK Ceramics (Bangladesh) Limited 10 90 3,046 57.70 5,193
65 Rupali Insurance Limited 10 219,516 9,847,950 23.60 5,180,578
66 Saiham Textile Mills Limited 10 35,000 1,193,306 27.80 973,000
67 SEBL 1st Mutual Fund 10 3,300,000 30,000,000 8.00 26,400,000
68 Shahjalal Islami Bank Limited 10 810,524 18,004,087 11.50 9,321,026
69 South East Bank Limited 10 992,250 42,723,519 19.40 19,249,650
70 Square Pharmaceuticals Limited 10 250,781 44,466,343 258.50 64,826,889
71 Square Textiles Limited 10 361,669 36,160,385 91.00 32,911,879
72 Standard Bank Limited 10 5,124 114,448 12.70 65,075
73 Summit Alliance Port Limited 10 85,314 10,515,325 82.90 7,072,531
74 Summit Power Limited 10 1,343,571 64,153,966 39.30 52,802,340
75 Tallu Spinning Mills Limited 10 9,750 365,191 15.20 148,200
76 Titas Gas Transmission & Distribution Co. Limited 10 1,059,050 93,103,425 79.70 84,406,285
77 Trust Bank 1st Mutual Fund 10 177,663 2,000,000 5.40 959,380
78 United Commercial Bank Limited 10 659,450 20,405,951 29.30 19,321,885
79 Union Capital Limited 10 51,975 2,653,600 21.20 1,101,870
80 Unique Hotel & Resorts Limited 10 266,400 33,649,778 65.90 17,555,760
81 United Airways (BD) Limited 10 1,527,680 34,216,631 8.90 13,596,352
82 Uttara Bank Limited 10 153,049 8,120,373 25.90 3,963,969

Total Quoted Share : 1,640,022,359 1,152,190,089

Un-Quoted

1 Bangladesh Rating Agency Limited 41,659 4,165,900 - 4,165,900


2 Central Depository Bangladesh Limited (CDBL) 913,889 3,138,890 - 3,138,890
3 Dhaka Vegetable Oil Industries Limited 31,920 7,448,523 - -
4 MSF Asset Management Company - 2,000,000 - 2,000,000
5 Summit Purbanchal Power Company Limited 750,000 7,500,000 - 7,500,000
6 Summit Uttaranchal Power Company Limited 500,000 5,000,000 - 5,000,000
7 SWIFT 8 991,199 - 991,199
8 Venture Investment Partner Bangladesh Limited 187,200 18,000,000 - 18,000,000
Total Unquoted Share : 48,244,512 40,795,989
Grand Total : 1,688,266,871 1,192,986,078

Total market value of shares is lesser than cost price by Tk.495,377,836/- against which provision of Tk.495,377,836/-
is appearing in these financial statements.

Annual Report 2014 156


Annexure-C
NCC Bank Limited
Statement of Large Loan Exposure made during the year 2014
more than 10% of Total Capital of the Bank (Note-9.7)
As on 31 December 2014

(Amount in Crore Taka)

2014 2013
Sl. Outstanding Total Total
No Name of Clients
Non-Funded Amount Amount
Funded
1 Abul Khair Steel Industries Ltd. 133.15 193.33 326.48 334.01
2 NCCB Securities & Financial Services Limited 176.07 52.00 228.07 241.17
3 Meghna Group - - - 139.69
4 Ziri Subader Steel Re-Rolling Mills 44.56 139.94 184.50 221.81
5 Saad Musa Home Tex & Clothing Ltd. 145.43 66.17 211.60 231.07
6 Partex Group 190.22 32.43 222.65 217.39
7 BSRM Steel 136.38 113.21 249.59 160.59
8 Deshbandhu Sugar Mills Ltd. - - - 211.88
9 Metro Group (Best Holdings Ltd.) 159.02 - 159.02 -
10 Max Pre-Stress & Max Automobiles Ltd. 100.13 98.48 198.61 -
11 Kabir Steel Re-Rolling Mills Ltd. 115.72 128.87 244.59 -
12 DAF P.P. Ind. & allied concern 141.28 30.87 172.15 -
13 Doreen Power Generation & Systems Ltd. 166.41 260.07 426.48 -
Grand -Total 1,508.37 1,115.37 2,623.74 1,757.61

Annual Report 2014 157


Annexure-D
NCC Bank Limited
FIXED ASSETS SCHEDULE
as at 31 December 2014 Amount in Taka

Cost Depreciation Written down


Balance Additions (Disposals)/ Balance Balance Charge (On Disposals)/ Balance value (WDV)
on during the adjustments at on for the adjustments at
Particulars at 31 December
01 January year during the 31 December 01 January year during 31 December
2014
2014 year 2014 2014 the year 2014

Taka Taka Taka Taka Taka Taka Taka Taka Taka

Annual Report 2014


Furniture & fixture 428,887,682 78,266,436 (7,910,481) 499,243,637 172,289,548 29,531,565 (5,557,927) 196,263,186 302,980,451
Machinery & equipment 710,488,752 330,851,184 (5,782,695)
1,035,557,241 397,993,026 86,773,595 (3,669,159) 481,097,462 554,459,779

158
Building (Head Office premise on Land - 1) - 570,124,689 570,124,689 - - - - 570,124,689
Land - I - Head Office Premise 95,284,000 - - 95,284,000 - - - - 95,284,000
Land - II - Head Office Premise (with Structure) 24,709,834 - - 24,709,834 273,322 50,355 - 323,677 24,386,157
Land - III Premise of Dhanmondi Branch 26,699,950 - - 26,699,950 4,063,690 549,107 - 4,612,797 22,087,153
Land - IV Premise of Islampur Branch 47,812,834 - - 47,812,834 5,082,056 1,055,769 - 6,137,825 41,675,009
Land -V - Premise of Savar Branch 26,021,474 - - 26,021,474 2,831,938 521,738 - 3,353,676 22,667,798
Land - V1 - Premise of Bijoynagar Branch 53,085,456 - - 53,085,456 6,247,256 1,150,955 - 7,398,211 45,687,245
Land - V11 - Premise of Pragoti Sarani Branch 62,115,010 - - 62,115,010 5,351,497 1,419,088 - 6,770,585 55,344,425
Land - V111 - Premise of Uttara Branch 70,347,200 - - 70,347,200 5,324,080 1,625,578 - 6,949,658 63,397,542
Land - 1X -Premise of Agrabad Branch 60,682,473 - - 60,682,473 4,499,933 1,404,564 - 5,904,497 54,777,976
Land - X -Premise of Elephant Road Branch 87,386,268 - - 87,386,268 6,257,146 1,978,603 - 8,235,749 79,150,519
Land-XI- Premise of Mitford Branch 30,004,115 - - 30,004,115 1,540,987 543,078 - 2,084,065 27,920,050
Land-XI1- Premise of O. R. Nizam Road Branch 136,811,525 - - 136,811,525 7,133,737 3,214,445 - 10,348,182 126,463,343
Vehicles 95,750,888 9,147,542 (6,753,714) 98,144,716 61,239,759 13,976,316 (6,753,710) 68,462,365 29,682,351
Sub-total 1,956,087,461 988,389,851 (20,446,890) 2,924,030,422 680,127,975 143,794,756 (15,980,796) 807,941,935 2,116,088,487
Re-valuation Depreciation
Land -I -Premise of Head Office 79,816,000 - - 79,816,000 - - - - 79,816,000
Land - II - Head Office Premise (with Structure) 240,267,348 - - 240,267,348 - - - - 240,267,348
Land - III Premise of Dhanmondi Branch 76,152,845 - - 76,152,845 4,711,309 1,786,038 - 6,497,347 69,655,498
Land - IV Premise of Islampur Branch 9,472,401 - - 9,472,401 236,811 230,890 - 467,701 9,004,700
Land - V Premise of Saver Branch 11,895,874 - - 11,895,874 297,396 289,962 - 587,358 11,308,516
Land - VI Premise of Bijoynagar Branch 46,893,792 - - 46,893,792 1,172,344 1,143,036 - 2,315,380 44,578,412
Land - VII Premise of Pragoti Sarani Branch 2,664,720 - - 2,664,720 66,624 64,952 - 131,576 2,533,144
Sub-total 467,162,980 - - 467,162,980 6,484,484 3,514,878 - 9,999,362 457,163,618
December -2014 Grand total 2,423,250,441 988,389,851 (20,446,890) 3,391,193,402 686,612,459 147,309,634 (15,980,796) 817,941,297 2,573,252,105
December -2013 2,297,730,438 149,337,917 (23,817,914) 2,423,250,441 554,145,004 150,964,056 (18,496,601) 686,612,459 1,736,637,982
Annexure-E
NCC Bank Limited
Borrowings from other banks, Financial Institutions and agents.
(Outside Bangladesh) - Note -12
As on 31 December 2014

2014 2013

Currency Amount in Conversion Amount in Amount in Conversion Amount in


Name of the Bank Name Foreign rate per BDT. Foreign rate per BDT.
Currency unit F.C. Currency unit F.C.
ICICI Bank, HKK USD 428,986.03 78.90 33,846,998 272,691.57 78.15 21,310,846
ICICI Bank, Kolkata ACU 239,062.04 78.90 18,861,995 290,835.46 78.15 22,728,791
Mashreq Bank ,Kolkata ACU 119,248.91 78.90 9,408,739 - - -
Sonali Bank London USD - 78.15 - 114,855.25 78.15 8,975,938
Sonali Bank,Kolkata ACU 87,005.25 78.90 6,864,714 - - -
Habib American Bank USD - 78.15 - 680.84 78.15 53,208
Mashreq Bank N.Y USD 359,667.53 78.90 28,377,768 41,466.93 78.15 3,240,641
Wachovia NA USD 332,491.43 78.90 26,233,574 201,289.53 78.15 15,730,777
Jpmorgan Chess Bank USD - 78.15 - 13,701.60 78.15 1,070,780
Standard Chartered Bank, Kolkata ACU 568,637.27 78.90 44,865,481 - - -
Standard Chartered Bank, N.Y USD - 78.15 - 2,353,333.07 78.15 183,912,979
Standard Chartered Bank, London GBP - 131.04 - 17,784.65 131.04 2,330,522
168,459,269 259,354,482

Annual Report 2014 159


Annexure-F
NCC Bank Limited
Corporate Tax Position
As at 31 December 2014

Amount in Taka
Current Tax Tax Liability as Excess/ Advance
Accounting Assessment Provision as Dues/
per Assessment (Shortage) Income (Refund) Remarks
Year Year per accounts Order/Return provision Tax paid

Annual Report 2014


1 2 3 4 5=(3-4) 6 7=(4-6) 8

160
Up to 2000 - 142,334,958 213,676,031 (71,341,073) 215,471,134 (1,795,103) Assessment Completed
2001 2002-2003 119,081,542 146,692,885 (27,611,343) 139,829,928 6,862,957 Appeal filed to High Court Division
2002 2003-2004 177,842,495 177,842,495 - 177,842,495 - Assessment Completed
2003 2004-2005 255,478,335 86,888,016 168,590,319 159,999,990 (73,111,977) Appeal filed to High Court Division
2004 2005-2006 221,398,901 222,971,622 (1,572,721) 226,708,126 (3,736,504) Assessment Completed
2005 2006-2007 322,779,734 322,779,734 - 322,779,734 - Assessment Completed
2006 2007-2008 574,346,529 571,482,877 2,863,652 550,272,141 21,210,736 Appeal filed to High Court Division
2007 2008-2009 658,972,487 765,003,802 (106,031,315) 742,491,423 22,512,379 Appeal filed to High Court Division
2008 2009-2010 886,681,988 842,159,000 44,522,988 830,142,418 12,016,582 Appeal filed to High Court Division
2009 2010-2011 780,131,543 834,509,903 (54,378,360) 815,665,866 18,844,037 Appeal filed to High Court Division
2010 2011-2012 1,082,996,677 1,335,142,229 (252,145,552) 11,94,651,851 140,490,378 Appeal filed to High Court Division
2011 2012-2012 1,423,823,445 1,529,029,990 (105,206,545) 1,396,639,461 132,390,529 Appeal pending with Commissioner of Taxes (Appeal)
2012 2013-2014 1,311,459,496 1,331,302,532 (19,843,036) 1,331,302,532 - Return filed u/s-82BB but assessment order yet to receive.
2013 2014-2015 1,204,981,256 1,063,429,734 141,551,522 1,063,429,734 - Return filed u/s-82BB but assessment order yet to receive.
2014 2015-2016 869,355,654 749,661,486 119,694,168 571,990,215 - Return to be filed on 15 July 2015.
Total 9,162,309,386 9,442,910,850 (160,907,296) 9,167,226,836 275,684,014
NCC Bank Limited Annexure-G
Notes to the Financial Statements

Computation of Risk Weighted Assets (RWA)-Solo Basis as on 31 December 2014


Total Risk Weighted Assets (RWA)
Figure in Crore taka where applicable

Particulars December 31,2014 December 31,2013


A. Credit Risk:
On-Balance Sheet 8,072.33 8,637.57
Off-Balance Sheet 1,663.84 1,900.94
B. Market Risk 519.00 283.90
C. Operational Risk 1,012.14 959.60
Total Risk Weighted Assets (A+B+C) 11,267.21 11,782.00

a. i) Risk Weighted Assets for Credit Risk On Balance Sheet Exposure

December 31,2014 December 31,2013


Bangladesh
Sl. Particulars Bank's Risk Risk
No. Rating Risk Weighted Weighted
Exposure Exposure
Grade Weight Assets Assets
a) Cash 0% 117.35 - 125.65 -
b) Claims on Bangladesh Government and Bangladesh Bank 0% 2790.54 - 2428.13 -
Claims on other Sovereigns & Central Banks 0% - - - -
c) Claims on Bank for International Settlements International Monetary
Fund and European Central Bank 0% - - - -
d) Claims on Multilateral Development Banks (MDBs) 0% - - - -
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, NIB, CDB, CEDB 0% - - - -
ii) Other MDBs 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
e) Claims on Public Sector Entities ( other than Government) in Bangladesh 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
f) Claims on Banks and NBFIs
i) Original maturity over 3 months 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 100% 68.28 68.28 71.47 71.47
ii) Original maturity up to 3 months 20% 373.17 74.63 186.2 37.24
g) Claims on Corporate 1 20% 410.97 82.19 412.7 82.54
2 50% 1432.05 716.03 1081.87 540.94
3,4 100% 981.34 981.34 876.13 876.13
5,6 150% - - - -
Unrated 125% 728.10 910.13 3873.81 4,842.26
h) Claims on SME SME 1 20% - - - -
SME 2 40% 33.85 13.54 - -
SME 3 60% 300.16 180.10 - -
SME 4 80% - - - -
SME 5 120% - - - -
SME 6 150% - - - -

Annual Report 2014 161


December 31,2014 December 31,2013
Bangladesh
Sl. Particulars Bank's Risk Risk Risk
No. Rating Weight Exposure Weighted Exposure Weighted
Grade Assets Assets
Unrated 75% 72.44 54.33 - -
(Small enter-
prise & <BDT
3.00M)
Unrated 100% 2,590.89 2,590.89 - -
(Small enter-
prise having>
BDT 3.00M
& medium
enterprise)
i) Claims under Credit Risk Mitigation PSE N/A - - - -
Banks & NBFIs N/A - - - -
Corporate N/A 118.94 12.25 153.10 19.39
Retail & Small N/A 242.12 8.11 207.14 9.15
Cons.Finance N/A - - - -
Res. Property N/A - - - -
Comm. Real estate N/A - - - -
j) Claims categorized as retail portfolio (excluding SME Consumer Finance &
Staff loan) up to 1 crore 75% 126.56 94.92 574.63 430.97
k) Consumer Loan 100% 64.81 64.81 60.76 60.76
l) Claims fully secured by residential property 50% 125.36 62.68 125.68 62.84
m) Claims fully secured by commercial real estate 100% 382.65 382.65 344.24 344.24
n) 1. Past due claims (Risk weights are to be assigned net of specific provision)
Where specific provisions are less than 20 percent of the outstanding
amount of the past due claim 150% 467.68 701.52 176.65 264.98
Where specific provisions are no less than 20 percent of the outstanding
amount of the past due claim. 100% 69.68 69.68 44.15 44.15
Where specific provisions are more than 50 percent of the outstanding
amount of the past due claim. 50% 59.16 29.58 55.67 27.84
2. Claims fully secured against residential property that are past due for
more than 90 days and /or impaired and specific provision held
there-against is less than 20% of outstanding amount. 100% 35.33 35.33 4.45 4.45
3. Loans and Claims fully secured against residential property that are
past due for more than 90 days and or impaired and specific provision
held there-against is more than 20% of outstanding amount. 75% 4.64 3.48 27.42 20.57
o) Capital Market Exposures 125% 176.12 220.15 189.08 236.35
p) Unlisted equity investments and regulatory Capital instruments issued by
other banks ( Other than those deducted from capital) held in the banking book 125% 246.03 307.54 258.92 323.65
q) Investments in venture capital 150% - - - -
r) Investments in premises, plant and equipment and all other fixed assets 100% 167.62 167.62 173.66 173.66
s) Claims on all fixed assets under operating lease 100% - - - -
t) All other assets:
i) Claims on GoB & BB 0% 76.72 - 188.80 -
ii) Staff Loans 20% 65.78 13.16 70.80 14.16
iii) Cash items in Process of Collection 20% 0 - 0.01 0.00
iv) Claims on offshore Banking Unit 100% 37.07 37.07 0 -
iv) Other assets (not specified above) [net of specific provision if any 100% 188.97 188.97 149.84 149.84
Total 12,554.38 8,072.33 11,860.96 8,637.57

Annual Report 2014 162


a ii). Risk Weighted Assets for Off-balance sheet exposure

December 31,2014 December 31,2013


Bangladesh
Sl. Particulars Bank's Risk Risk
No. Rating Risk Weighted Weighted
Exposure Exposure
Grade Weight Assets Assets
a. Claims on Bangladesh Government and Bangladesh Bank 0% - - - -
b. Claims on other Sovereigns & Central Banks 0% - - - -
c. Claims on Bank for International Settlements International Monetary
Fund and European Central Bank 0% - - - -
d. Claims on Multilateral Development Banks (MDBs) 0% - - - -
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, NIB, CDB, CEDB 0% - - - -
ii) Other MDBs 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
e. Claims on Public Sector Entities ( other than Government) in Bangladesh 1 20% - - - -
1,2 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
f. Claims on Banks and NBFIs - - - -
i) Original maturity over 3 months 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 100% - - - -
ii) Original maturity less than 3 months 20% - - - -
g) Claims on Corporate 1 20% 265.97 53.19 114.84 22.97
2 50% 694.97 347.49 342.77 171.39
3,4 100% 626.93 626.93 371.93 371.93
5,6 150% - - - -
Unrated 125% 336.19 420.24 1,004.32 1,255.40
h) Claims on SME SME 1 20% - - - -
SME 2 40% - - - -
SME 3 60% 29.69 17.81 - -
SME 4 80% - - - -
SME 5 120% - - - -
SME 6 150% - - - -
Unrated 75% - - - -
(Small enter-
prise & <BDT
3.00M)
Unrated 100% - - - -
(Small enter-
prise having>
BDT 3.00M
& medium
enterprise)
i) Claims against retail portfolio and small & medium enterprise
(excluding consumer loan) 75% 264.23 198.17 105.67 79.25
j) Consumer Loan 100% - - - -
k) Claims fully secured by residential property 50% - - - -
l) Claims fully secured by commercial real estate 100% - - - -
m Investments in venture capital 150% - - - -
n All other assets 100% - - - -
Total 2,217.98 1,663.84 1,939.53 1,900.94

Annual Report 2014 163


b. Risk Weighted Assets for Market Risk Balance Sheet Exposure
Capital Capital Total Risk Weighted Assets
Sl. Charge for Charge for Capital against Market Risk
No. Particulars
Specific General Charge for
Risk Market Risk Market Risk December 31,2014 December 31,2013
A. Interest Rate Related Instruments - 9.41 9.41 94.10 1.90
B. Equities 11.55 11.55 23.10 231.00 250.40
C. Foreign Exchange Position - 19.39 19.39 193.90 31.60
Total (A+B+C) 11.55 40.35 51.90 519.00 283.90
c. Risk Weighted Assets for Operational Risk
Capital Risk Weighted Assets
Sl. Gross Average Charge for against Operational Risk
No. Particulars Gross
Income Operational
Income Risk December 31,2014 December 31,2013
A. 2012 660.03
B. 2013 650.75 674.75 101.21 1,012.14 959.60
C. 2014 713.47
Computation of Risk Weighted Assets (RWA)-Consolidated Basis

Total Risk Weighted Assets (RWA)

Particulars December 31,2014 December 31,2013


A. Credit Risk:
On-Balance Sheet 8,149.63 8,688.72
Off-Balance Sheet 1,663.84 1,900.94
B. Market Risk 525.81 285.22
C. Operational Risk 1,095.90 1,015.40
Total Risk Weighted Assets (A+B+C) 11,435.17 11,890.28
a ii). Risk Weighted Assets for Off-balance sheet exposure

December 31,2014 December 31,2013


Bangladesh
Sl. Particulars Bank's Risk Risk
No. Rating Risk
Exposure Weighted Exposure Weighted
Grade Weight Assets Assets
a) Cash 0% 117.35 - 125.65 -
b) Claims on Bangladesh Government and Bangladesh Bank 0% 2790.54 - 2428.13 -
Claims on other Sovereigns & Central Banks 0% - - - -
c) Claims on Bank for International Settlements International Monetary
Fund and European Central Bank 0% - - - -
d) Claims on Multilateral Development Banks (MDBs) 0% - - - -
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, NIB, CDB, CEDB 0% - - - -
ii) Other MDBs 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
e) Claims on Public Sector Entities ( other than Government) in Bangladesh 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
f) Claims on Banks and NBFIs
i) Original maturity over 3 months 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 100% 68.28 68.28 71.47 71.47
ii) Original maturity up to 3 months 20% 374.40 74.88 187.66 37.53

Annual Report 2014 164


a ii). Risk Weighted Assets for Off-balance sheet exposure

December 31,2014 December 31,2013


Bangladesh
Sl. Particulars Bank's Risk Risk
No. Rating Risk Weighted Weighted
Exposure Exposure
Grade Weight Assets Assets
g) Claims on Corporate 1 20% 410.97 82.19 412.7 82.54
2 50% 1432.05 716.03 1081.87 540.94
3,4 100% 981.34 981.34 876.13 876.13
5,6 150% - - - -
Unrated 125% 728.10 910.13 3873.81 4,842.26
h) Claims on SME SME 1 20% - - - -
SME 2 40% 33.85 13.54 - -
SME 3 60% 300.16 180.10 - -
SME 4 80% - - - -
SME 5 120% - - - -
SME 6 150% - - - -
Unrated 75% 72.44 54.33 - -
(Small enter-
prise & <BDT
3.00M)
Unrated 100% 2,590.89 2,590.89 - -
(Small enter-
prise having>
BDT 3.00M
& medium
enterprise)
i) Claims under Credit Risk Mitigation PSE N/A - -
Banks & NBFIs N/A - -
Corporate N/A 118.94 12.25 153.10 19.39
Retail & Small N/A 242.12 8.11 207.14 9.15
Cons.Finance N/A - - - -
Res. Property N/A - - - -
Comm. Real estate N/A - - - -
j) Claims categorized as retail portfolio (excluding SME
Consumer Finance & Staff loan) up to 1 crore 75% 126.56 94.92 574.63 430.97
k) Consumer Loan 100% 64.81 64.81 60.76 60.76
l) Claims fully secured by residential property 50% 125.36 62.68 125.68 62.84
m) Claims fully secured by commercial real estate 100% 382.65 382.65 344.24 344.24
n) 1. Past due claims (Risk weights are to be assigned
net of specific provision)
Where specific provisions are less than 20 percent of the outstanding
amount of the past due claim 150% 467.68 701.52 176.65 264.98
Where specific provisions are no less than 20 percent of the
outstanding amount of the past due claim. 100% 69.68 69.68 44.15 44.15
Where specific provisions are more than 50 percent of the
outstanding amount of the past due claim. 50% 59.16 29.58 55.67 27.84
2. Claims fully secured against residential property that are past due
for more than 90 days and /or impaired and specific provision held
there-against is less than 20% of outstanding amount. 100% 35.33 35.33 4.45 4.45
3. Loans and Claims fully secured against residential property that are
past due for more than 90 days and or impaired and specific provision
held there-against is more than 20% of outstanding amount. 75% 4.64 3.48 27.42 20.57
o) Capital Market Exposures 125% 460.74 575.93 451.41 564.26
p) Unlisted equity investments and regulatory Capital instruments issued by other
banks ( Other than those deducted from capital) held in the banking book 125% 20.18 25.23 33.08 41.35
q) Investments in venture capital 150% - - - -
r) Investments in premises,plant and equipment and all other fixed assets 100% 169.33 169.33 175.92 175.92
s) Claims on all fixed assets under operating lease 100% - - - -

Annual Report 2014 165


December 31,2014 December 31,2013
Bangladesh
Sl. Particulars Bank's Risk Risk
No. Rating Risk
Exposure Weighted Exposure Weighted
Grade Weight Assets Assets
t) All other assets:
i) Claims on GoB & BB 0% 97.35 - 205.38 -
ii) Staff Loans 20% 65.78 13.16 70.80 14.16
iii) Cash items in Process of Collection 20% - - 0.01 0.00
iv) Claims on offshore banking Unit 100% 38.33 38.33 2.04 2.04
v) Other assets (not specified above) [net of specific provision if any 100% 190.96 190.96 150.79 150.79
Total 12,639.97 8,149.63 11,920.74 8,688.72
a ii). Risk Weighted Assets for Off-balance sheet exposure
December 31,2014 December 31,2013
Bangladesh
Sl. Particulars Bank's
No. Rating Risk Exposure Risk Exposure Risk
Grade
a. Claims on Bangladesh Government and Bangladesh Bank 0% - - - -
b. Claims on other Sovereigns & Central Banks 0% - - - -
c. Claims on Bank for International Settlements International Monetary
Fund and European Central Bank 0% - - - -
d. Claims on Multilateral Development Banks (MDBs) 0% - - - -
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, NIB, CDB, CEDB 0% - - - -
ii) Other MDBs 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
e. Claims on Public Sector Entities ( other than Government) in Bangladesh 1 20% - - - -
1,2 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 50% - - - -
f. Claims on Banks and NBFIs - - - -
i) Original maturity over 3 months 1 20% - - - -
2,3 50% - - - -
4,5 100% - - - -
6 150% - - - -
Unrated 100% - - - -
ii) Original maturity less than 3 months 20% - - - -
g) Claims on Corporate 1 20% 265.97 53.19 114.84 22.97
2 50% 694.97 347.49 342.77 171.39
3,4 100% 626.93 626.93 371.93 371.93
5,6 150% - - - -
Unrated 125% 336.19 420.24 1,004.32 1,255.40
h) Claims on SME SME 1 20% - - - -
SME 2 40% - - - -
SME 3 60% 29.69 17.81 - -
SME 4 80% - - - -
SME 5 120% - - - -
SME 6 150% - - - -
Unrated 75% - - - -
(Small enter-
prise & <BDT
3.00M)
Unrated 100% - - - -
(Small enter-
prise having>
BDT 3.00M
& medium
enterprise)

Annual Report 2014 166


December 31,2014 December 31,2013
Bangladesh
Sl. Particulars Bank's
No. Rating Risk Exposure Risk Exposure Risk
Grade
i) Claims against retail portfolio and small & medium enterprise
(excluding consumer loan) 75% 264.23 198.17 105.67 79.25
j) Consumer Loan 100% - - - -
k) Claims fully secured by residential property 50% - - - -
l) Claims fully secured by commercial real estate 100% - - - -
m Investments in venture capital 150% - - - -
n All other assets 100% - - - -
Total 2,217.98 1,663.84 1,939.53 1,900.94

b. Risk Weighted Assets for Market Risk Balance Sheet Exposure


Capital Capital Total Risk Weighted Assets
Sl. Charge for Charge for Capital against Market Risk
No. Particulars
Specific General Charge for
Risk Market Risk Market Risk December 31,2014 December 31,2013
A. Interest Rate Related Instruments - 9.41 9.41 94.10 1.90
B. Equities 11.65 11.65 23.30 233.00 251.62
C. Foreign Exchange Position - 19.87 19.87 198.70 31.70
Total (A+B+C) 11.65 40.93 52.58 525.81 285.22

c. Risk Weighted Assets for Operational Risk

Capital Risk Weighted Assets


Sl. Gross Average Charge for against Operational Risk
No. Particulars Gross
Income Operational
Income Risk December 31,2014 December 31,2013
A. 2012 710.47
B. 2013 696.75 730.6 109.59 1,095.90 1,015.40
C. 2014 784.58

NCC Bank Limited Annexure-H

Statement of the Name of the Directors and


the entities in which they have interest
As on 31 December 2014

Status
Sl. Name of the firms/companies in which interested as proprietor, % of
Name of Directors with the
No partner, Director,managing agent, guarantor, employee etc. interest
NCCBL
1 Alhaj Md. Nurun Newaz Chairman
Royal International, Proprietor 100.00%
Electro Mart Limited, Chairman 17.50%
Trade International Marketing Ltd., Chairman 20.00%
Newaz International Ltd., Managing Director 35.00%
The Royal Bengal Agency, Proprietor 100.00%
Central Insurance Company Limited, Shareholder 5.00%
Electro Appliances Mfg.Industries Limited , Chairman 30.00%
2 Mr. A.S.M. Main Uddin Monem Vice Chairman Abdul Monem Limited, Director 15.00%
Abdul Monem Sugar Refinery Limited, Director 12.95%
Igloo Foods Limited, Director 15.38%
AM Securities & Financial Services Limited.,Managing Director 93.33%
AM Energy Limited, Director 15.00%

Annual Report 2014 167


Status
Sl. Name of the firms/companies in which interested as proprietor, % of
Name of Directors with the
No partner, Director,managing agent, guarantor, employee etc. interest
NCCBL
Mr. A.S.M. Main Uddin Monem Vice Chairman Igloo Ice Cream Limited, Director 16.67%
Novus Pharmaceuticals Limited. ,Managing Director 14.93%
Igloo Dairy Limited, Director 15.38%
AM Channel Limited, Director 25.00%
AM Auto Bricks Limited, Director 20.00%
AM Bran Oil Company Limited, Director 9.80%
AM Asphalt & Ready Mix Limited, Director 20.00%
AM Foods Limited, Director 25.00%
AM Development limited, Director 25.00%
AML Power Limited. ,Director 10.00%
AML Power Infotech Limited, Director 10.00%
AM Pharma Limited., Managing Director 18.00%
AM Beverage Limited. ,Director 20.00%
AM Consulting Limited, Director 33.33%
MM Holdings Limited, Director 98.00%
AM Capital & Investment Limited, Director 94.00%
AM Agricultural Products Limited, 33.33%
Millennium Cement Limited 10.00%
Joinab Enterprise, Proprietorship
Joinab Overseas, Proprietorship
Pragati Insurance Company Limited, Shareholder 0.20%
3 Mr. Md. Abdul Awal Director Unique Steel Industries Ltd., Managing Director 8.33%
Steel Enterprise Ltd, Managing Director 0.49%
Prime Steel Re-relling Mills Ltd,Managing Director 0.27%
Jahanabad Ship Breakers Ltd, Chairman 50.00%
Prime Textile Spinning Mills Ltd,Managing Director 6.12%
Prime Peoples Property Ltd,Managing Director 14.40%
Doleswar Iron & Engg. Works Ltd, Managing Director 6.00%
Prime Trans National Ltd,Managing Director 0.20%
Prime World Trade Ltd, Managing Director 80.00%
Prime Super Printing Mills Ltd, Managing Director 80.00%
Prime Synthetic Yarn Mills Ltd, Managing Director 80.00%
Prime Dyeing & Finishing Mills Ltd, Managing Director 80.00%
Prime Blended Yarn Mills Ltd, Managing Director 99.91%
Prime Weaving Mills Ltd, Managing Director 80.00%
Prime Composite Mills Ltd,Managing Director 6.51%
Prime Dairy & Poultry Ind. Ltd,Managing Director 80.00%
Prime Fisheries Industries Ltd, Managing Director 80.00%
Prime Melange Yarn Mills Ltd, Managing Director 12.50%
Prime Knitwears Ltd., Managing Director 60.00%
Prime Information Technology Ltd, Managing Director 50.00%
Prime Group of Industries Ltd, Managing Director 20.00%
Prime Knit Fabrics Ltd, Managing Director 75.00%
Prime Textile Fabrics Ltd, Managing Director 75.00%
Prime Energy Ltd., Managing Director 35.00%
Prime Fine Yarn Mills Ltd, Managing Director 60.00%
Prime Ship Breakers Ltd, Chairman 25.93%
Prime Ship Recycling Ltd, Chairman 15.50%
Prime FSS Ship Breakers Ltd, Chairman 20.00%
Prime Steel Mills Ltd. Managing Director 10.00%
Prime Ship Building Ltd., Managing Director 50.00%
Prime Financial Consultants & Equities Ltd, Chairman 48.29%
4 Mr.Amjadul Ferdous Chowdhury Director B.S.A. Garments Ind. (Pvt.) Limited, Managing Director 19.00%
B.S.A. Fashion Limited, Managing Director 50.00%

Annual Report 2014 168


Status
Sl. Name of the firms/companies in which interested as proprietor, % of
Name of Directors with the
No partner, Director,managing agent, guarantor, employee etc. interest
NCCBL
Mr.Amjadul Ferdous Chowdhury Director B.S.A. Apparels Limited, Managing Director 25.00%
Vanguard Garments Ltd., Managing Director 50.00%
Vanguard Fashion Ltd., Managing Director 15.00%
Vanguard Shares & Securities Ltd., Director 6.00%
Vanguard Packages Limited, Managing Director 33.00%
Vanguard Dresses Limited, Managing Director 33.00%
Glare Fashion Limited, Managing Director 50.00%
Royal Cement Limited, Chairman 10.00%
Brave Royal Shipping Limited, Managing Director 20.00%
Vanguard Maritime Limited, Chairman 30.00%
Royal P. P Bags Limited, Chairman 15.00%
Harrods Garments Ltd., Director 25.00%
Vanguard Designers Limited, Chairman 40.00%
BSA Shipping Limited, Director 30.00%
S.N.Sports Wear Limited, Director 19.00%
Glare Trading, Importer of Ahmed Foods , Proprietor 100.00%
5 Mr. S.M. Abu Mohsin Director Continental Insurance Limited, Chairman 3.77%
Alliance Deep Sea Fishings Ltd, Chairman 12.50%
Brothers Oxygen Ltd., Managing Director 80.00%
Food of Accommodation Limited, Chairman 33.32%
6 Mr. Abdus Salam Director The Bengal Electric Ltd., Managing Director 69.00%
Multipul Equipment & Engineering Ltd., Managing Director 60.00%
Gangatia Fisheries Ltd., Managing Director 20.00%
Bengal Shipyard Ltd., Managing Director 25.00%
7 Mrs. Sohela Hossain Director Mir Akhter Hossain Ltd., Director 15.00%
Mir Cement Ltd., Director 25.00%
Mir Real Estate Ltd., Director 25.00%
Mir Concrete Products Ltd.,Director 25.00%
Mir Telecom Ltd., Chairman 12.37%
Mir Power Ltd., Director 25.00%
Mir Group of Companies Ltd., Director 25.00%
Mir Supply Chain Ltd., Director 25.00%
Rego Communications Ltd.,Director 25.00%
8 Mr. Yakub Ali Director Ali Fashion Limited, Chairman 23.81%
Anowara Apparels Limited, Chairman 22.22%
Anowara Fashions Limited, Chairman 21.83%
Anowara Paper Mills Limited, Chairman 35.00%
Bangladesh Fertilizer & Agro Chemicals Limited, Director 18.35%
Diamond Cement Limited, Chairman 11.56%
Habib Printers and Publisher Limited, Chairman 33.35%
Habib Share & Securities Limited, Chairman & Managing Director 16.67%
Habib Sons, Managing Partner 1:3
Habib Steels Limited, Chairman 33.34%
HG Aviation Limited, Director 8.33%
Legacy Fashion Ware Limited., Chairman 10.60%
Maam Textile Mills Limited, Chairman 16.00%
MTS Re-rolling Mills Limited, Chairman 23.34%
Mudys Navigation Limited, Chairman 35.00%
Noor Garments Limited, Chairman 31.25%
Regent Fabrics Limited, Chairman 16.67%
Regent Power Limited, Chairman 13.33%
Regent Spinning Mills Limited., Chairman 1.09%
Regent Textile Mills Limited., Chairman 22.11%
Regent Weaving Limited, Chairman 33.33%
Regent Energy and Power Limited, Chairman 0.02%
Saims Superior Limited, Chairman 1.00%
Valiant Fashion Ware Limited, Chairman 16.67%
Valiant Garments Limited, Chairman 16.84%

Annual Report 2014 169


Status
Sl. Name of the firms/companies in which interested as proprietor, % of
Name of Directors with the
No partner, Director,managing agent, guarantor, employee etc. interest
NCCBL
9 Mr. Md. Abul Bashar Director Unique Steel Industries Ltd., Dy.Managing Director 4.17%
Steel Enterprise Ltd, Dy.Managing Director 0.01%
Prime Steel Re-relling Mills Ltd,Dy.Managing Director 0.01%
Jahanabad Ship Breakers Ltd, Managing Director 10.00%
Prime Textile Spinning Mills Ltd,Dy.Managing Director 5.00%
Prime Peoples Property Ltd,Dy.Managing Director 0.20%
Doleswar Iron & Engg. Works Ltd, Dy.Managing Director 3.00%
Prime Trans National Ltd,Dy.Managing Director 0.01%
Prime World Trade Ltd, Dy.Managing Director 2.00%
Prime Super Printing Mills Ltd, Dy.Managing Director 2.00%
Prime Synthetics Yarn Mills Ltd, Dy.Managing Director 2.00%
Prime Dyeing & Finishing Mills Ltd, Dy.Managing Director 2.00%
Prime Blended Yarn Mills Ltd, Dy.Managing Director 0.01%
Prime Weaving Mills Ltd, Dy.Managing Director 2.00%
Prime Composite Mills Ltd,Dy.Managing Director 0.22%
Prime Dairy & Poultry Ind. Ltd,Dy.Managing Director 3.00%
Prime Fisheries Industries Ltd,Dy.Managing Director 3.00%
Prime Melange Yarn Mills Ltd, Dy.Managing Director 1.00%
Prime Knit Wears Ltd., Dy.Managing Director 5.00%
Prime Information Technology Ltd, Dy.Managing Director 25.00%
Prime Group of Industries Ltd, Dy.Managing Director 1.00%
Prime Knit Fabrics Ltd, Dy.Managing Director 5.00%
Prime Textile Fabrics Ltd, Dy.Managing Director 5.00%
Prime Energy Ltd., Dy.Managing Director 5.00%
Prime Fine Yarn Mills Ltd, Dy.Managing Director 5.00%
Prime Ship Breakers Ltd, Managing Director 5.19%
Prime Ship Recycling Ltd, Managing Director 10.00%
Prime FSS Ship Breakers Ltd, Managing Director 6.00%
Prime Steel Mills Ltd. Dy.Managing Director 2.00%
Prime Ship Building Ltd., Dy.Managing Director 8.00%
Prime Financial Consultants & Equities Ltd, Managing Director 16.46%
10 Mr. Md. Harunur Rashid Director Apurba Embroidery, Proprietor 100.00%
HR Bricks, Proprietor 100.00%
Faridgonj Fisheries Ltd., Managing Director 95.00%
NCC Holdings Limited, Managing Director 95.00%
Nazma Construction Company, Proprietor 100.00%
Global Insurance Ltd., Sponsor Shareholders 2.23%
11 Mr. Khairul Alam Chaklader Director Desh Medical College & Hospital , Chairman 50.00%
Desh Diagnostic Center, Chairman 50.00%
Mos-5 Tel Ltd. 15.00%
Gulshan Point (Pvt) Ltd., Managing Director 50.00%
Gold Vision Industries Ltd., Managing Director 50.00%
Urban Responses Ltd., Managing Director 50.00%
Eastern Logistics Ltd., Director 5.00%
Maxwell Electronics, Proprietor 100.00%
Orbit Pharmaceuticals Ltd. Director 20.00%
12 Mr. Md. Moinuddin Director Janata Real Estate, Managing Director 60.00%
Central Paris, Managing Director 70.00%
Gausia Trading, Proprietor 100.00%
Salam Trading 65.00%
13 Mr Md. Amirul Islam, FCS, FCA Independent Director The Dacca Dyeing & Manufacturing Co. Limited, Independent Director Nil
Hakkani Pulp and Paper Mills Limited, Independent Director Nil
K.M. Hasan & Co. Chartered Accountants, Senior partner Nil
14 Mr. K.A.M. Haroon Independent Director Working as deputy team leader under 'Regional Co-operation
and Integration Project-Rail Component'. A joint venture project
of CANARAIL, SMEC, DB, ACE Consultants Ltd. Nil

Annual Report 2014 170


Annexure-I

NCC Bank Limited


Related Party Transactions
As on 31 December 2014

Related Party Transactions:

The Bank in normal course of business has had transactions with other entities that fall within the definition of Related party as contained in Bangladesh Accounting
Standards (BAS-24) (Related Party Disclosures) and as defined in the BRPD Circular # 14 dated 25 June 2003.

The Significant Related party transactions during the year were as follows: Figure in Lac

Directors Nature of Outstanding Outstanding Total


SL. Name of the Organization relation with Representing Directors
Transaction (Funded) (Non-funded) Outstanding
No. the concern
1 Mr.A.Parvez Chowdhury Guarantor Mr.Amjadul Ferdous Chowdhury CC(H) 109.50 - 109.50
FASN Corporation do do SOD(G) 167.22 - 167.22
Amjadul Forhad Chowdhury & allied do do HBL 96.23 - 96.23
2 Mr. Md. Harunur Rashid Self Mr. Md. Harunur Rashid Term Loan 882.87 - 882.87
3 Habib Sons Managing Partner Mr. Yakub Ali CC(H) 1.06 - 1.06
Habib Shares & Securities Ltd. Chairman & Managing Director do SOD(G) 47.85 - 47.85
4 Prime Steel Re-rolling Mills Limited Managing Director Mr.Md. Abdul Awal B/G - 1.11 1.11
5 Shaheedullah & Associates Guarantor Mrs. Sohela Hossain SOD(G) 53.00 - 53.00
Total 1,357.73 1.11 1,358.84

Annual Report 2014


171
NCC Bank Limited Annexure-J

FINANCIAL STATEMENTS
for the year ended on 31 December 2014

a.(i) Disclosure regarding outstanding Repo as on 31 December 2014

Sl. Amount
Counter Party Name Agreement Date
No Reversal Date (1st leg cash consideration)

1 Bangladesh Bank 30.12.2014 01.01.2015 1,101,530,000


2 Rupali Bank Ltd. 30.12.2014 01.01.2015 998,087,000
3 United Commercial Bank Limited 30.12.2014 01.01.2015 1,493,613,000
4 Amanat Bima Trust 30.12.2014 01.01.2015 229,570,590
Total 3,822,800,590

a.(ii) Disclosure regarding outstanding reverse repo as on 31 December 2014

Sl. Amount
No Counter Party Name Agreement Date Reversal Date (1st leg cash consideration)

NIL

Total -

b.Disclosure regarding overall transaction of Repo and Reverse repo.

Minimum Maximum Daily average


Particulars outstanding outstanding outstanding
during the year during the year during the year

Securities sold undrer repo:


i) with Bangladesh Bank 6,735,400,000 908,114,685
ii) with other banks & FIs 7,265,615,250 3,058,519,672
Securities purchased undrer repo:
i)from Bangladesh Bank - -
ii)from other banks & FIs 1,250,000,000 13,982,004

Annual Report 2014 172


NCC Bank Limited and its Subsidiaries Annexure-K

CONSOLIDATED FINANCIAL HIGHLIGHTS


For the year ended on 31 December 2014

Sl. No Particulars 2014 2013


Taka Taka

1 Paid-up Capital 8,029,254,580 7,646,909,130


2 Total Capital 15,182,216,554 13,998,611,404
3 Capital surplus / (Deficit) 3,747,057,596 2,108,322,493
4 Total Assets 135,996,552,482 124,626,249,746
5 Total Deposits 105,458,206,463 97,986,947,700
6 Total Loans & Advances 93,766,512,875 90,790,437,249
7 Total Contingent Liabilities 33,098,051,444 26,235,798,458
8 Credit Deposit Ratio* 77% 83%
9 Percentage of classified loans against total Loans & Advances 7.49% 5.56%
10 Profit after tax & provision 1,494,682,198 1,140,498,525
11 "Amount of classified loan during current year" 6,735,516,359 4,862,413,739
12 Provision kept against classified Loans 2,705,151,901 2,663,394,687
13 Provision surplus / (deficit) - -
14 Cost of Fund ( %) 10.81% 11.61%
15 Interest Earning Assets 114,383,656,042 111,348,432,419
16 Non-interest Earning Assets 21,612,896,440 13,277,817,327
17 Return on Investment (ROI) 11.49% 14.06%
18 Return on Assets (ROA) 1.15% 0.92%
19 Income from Investment 2,673,127,057 2,782,298,831
20 Earnings Per Share ( Taka) 1.86 1.42
21 Net income Per Share (Taka) 1.86 1.42
22 Price Earning Ratio (Times) 6.02 9.22

* Credit Deposit Ratio (CDR) calculation is made as per Bangladesh Bank guidelines.

Annual Report 2014 173


NCC Bank Limited Annexure-L

FINANCIAL HIGHLIGHTS
For the year ended on 31 December 2014

Sl. No Particulars 2014 2013


Taka Taka

1 Paid-up Capital 8,029,254,580 7,646,909,130


2 Total Capital 15,177,695,612 13,987,440,923
3 Capital surplus / (Deficit) 3,910,490,460 2,205,418,361
4 Total Assets 135,159,523,539 124,042,696,069
5 Total Deposits 105,703,614,110 98,229,442,528
6 Total Loans & Advances 90,920,772,028 88,167,205,831
7 Total Contingent Liabilities 33,098,051,444 26,235,798,458
8 Credit Deposit Ratio* 77% 83%
9 Percentage of classified loans against total Loans & Advances 7.49% 5.56%
10 Profit after tax & provision 1,501,329,218 1,137,847,175
11 "Amount of classified loan during current year" 6,735,516,359 4,862,413,739
12 Provision kept against classified Loans 2,705,151,901 2,663,394,687
13 Provision surplus / (deficit) - -
14 Cost of Fund ( %) 10.81% 11.61%
15 Interest earning Assets 112,222,257,434 108,688,074,544
16 Non-interest earning Assets 22,937,266,105 15,354,621,525
17 Return on Investment (ROI) 11.50% 14.07%
18 Return on Assets (ROA) 1.16% 0.92%
19 Income from Investment 2,672,992,807 2,801,832,887
20 Earnings per Share ( Taka) 1.87 1.42
21 Net income per Share (Taka) 1.87 1.42
22 Price Earning Ratio (Times) 5.99 9.24

* Credit Deposit Ratio (CDR) calculation is made as per Bangladesh Bank guidelines.

Annual Report 2014 174


Annexure-M
NCC Bank Limited
NOTES TO THE FINANCIAL STATEMENTS
For the year ended on 31 December 2014

Financial reporting by segmints

i) Gegraphical Segment Amount in Taka

In Bangladesh Outside Bangladesh


Particulars NCC Bank Limited Off-Shore NCCB Securities NCCB Exchange Total
and Financial Services
NCCB Capital
(Conventional Banking) Banking Units Limited (NCCBSFSL) Limited (UK) Limited
Income 15,861,172,417 10,555,063 357,625,499 - 5,674,031 16,235,027,010
Less: Inter segmental income - - - - - -
Total Income 15,861,172,417 10,555,063 357,625,499 - 5,674,031 16,235,027,010
Operating Profit (Profit before unallocated expenses and tax) 15,861,172,417 10,555,063 357,625,499 - 5,674,031 16,235,027,010
Allocated expenses 12,117,700,277 7,225,340 336,467,214 252,518 15,347,169 12,476,992,518
Provision against loans and advances and others 1,242,822,910 3,500,493 10,000,000 - - 1,256,323,403
Profit/(Loss) before tax 2,500,307,690 (170,770) 11,158,286 (252,518) (9,673,138) 2,501,369,550
Income tax including deferred tax 999,149,242 - 7,879,650 - - 1,007,028,892
Net Profit 1,501,158,448 (170,770) 3,278,636 (252,518) (9,673,138) 1,494,340,658
Segment Assets 134,772,986,919 386,536,620 4,880,568,168 275,990,224 6,133,373 135,996,552,482
Segment Liabilities 134,772,986,919 386,536,620 4,880,568,168 275,990,224 6,133,373 135,996,552,482

ii) Business Segment

Conventional Off-Shore Investment Remittance


Particulars Banking Banking Units (NCCBSFSL & NCCBCL) (outside Bangladesh) Total
Income 15,861,172,417 10,555,063 357,625,499 5,674,031 16,235,027,010
Less: Inter segmental income - - - - -
Total Income 15,861,172,417 10,555,063 357,625,499 5,674,031 16,235,027,010
Operating Profit (Profit before unallocated expenses and tax) 15,861,172,417 10,555,063 357,625,499 5,674,031 16,235,027,010
Allocated expenses 12,117,700,277 7,225,340 336,719,732 15,347,169 12,476,992,518
Provision against loans and advances and others 1,242,822,910 3,500,493 10,000,000 - 1,256,323,403
Profit/(Loss) before tax 2,500,307,690 (170,770) 10,905,768 (9,673,138) 2,501,369,550
Income tax including deferred tax 999,149,242 - 7,879,650 - 1,007,028,892
Net Profit 1,501,158,448 (170,770) 3,026,118 (9,673,138) 1,494,340,658
Segment Assets 134,772,986,919 386,536,620 5,156,558,392 6,133,373 135,996,552,482

Annual Report 2014


Segment Liabilities 134,772,986,919 386,536,620 5,156,558,392 6,133,373 135,996,552,482

175
NCC Bank Limited Annexure-N

Off-shore Banking Unit


Balance Sheet
As at 31 December 2014
2014 2013
PROPERTY AND ASSETS Notes USD BDT USD BDT

Cash - - - -
In hand (including foreign currencies) - - - -
Balance with Bangladesh Bank and its agent bank (s) - - - -
(including foreign currencies)
Balance with other banks and financial institutions 3 67,212 5,235,777 - -
In Bangladesh - - - -
Outside Bangladesh 67,212 5,235,777 - -

Loans and advances 4 4,700,422 370,745,781 265,000 20,696,500


Loans, cash credits, overdrafts, etc. 4.1 - - - -
Bills purchased & discounted 4.2 4,700,422 370,745,781 265,000 20,696,500

Fixed assets including premises, furnitures and fixtures 5 - - - -


Other assets 6 134,631 10,555,063 4,152 320,301
Non-banking assets - - - -
TOTAL ASSETS 4,902,264 386,536,620 269,152 21,016,801

LIABILITIES AND CAPITAL


Liabilities
Borrowings from other banks, financial
institutions and agents 7 4,858,461 383,332,567 265,000 20,693,982
Deposits and other accounts 8 - - - -
Current deposits and other accounts - - - -
Bills payable - - - -
Savings bank deposits - - - -
Fixed deposits - - - -
Term deposits - - - -

Other liabilities 9 47,004 3,707,458 4,878 378,817


TOTAL LIABILITIES 4,905,465 387,040,025 269,878 21,072,799
Shareholders' equity
Paid up capital - - - -
Statutory reserve - - - -
General reserve - - - -
Other reserve-assets revaluation reserve - - - -
Revaluation gain/(Loss) - - - -
Foreign currency translation gain/(loss) 9.2 (274,119) - 2,518
Surplus in profit and loss A/C 10 (3,201) (229,286) (726) (58,516)
TOTAL SHAREHOLDERS' EQUITY (3,201) (503,405) (726) (55,998)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,902,264 386,536,620 269,152 21,016,801
CONTRA ENTRIES
Off balance sheet items:
Contingent liabilities 11
Acceptances and endorsements - - - -
Letters of guarantee - - - -
Letters of credit issued - - - -
Bills for collection - - - -
Other contingent liabilities :
Claims against the bank not acknowledged as debt - - - -
Capital commitments - - - -
Export development fund (EDF)
TOTAL OFF BALANCE SHEET ITEMS - - - -

These financial statements should be read in conjunction with the annexed notes.

Annual Report 2014 176


NCC Bank Limited
Off-shore Banking Unit
Profit and Loss Account
For the year ended on 31 December 2014
2014 2013

Notes USD BDT USD BDT

Interest income 12 134,631 10,555,063 4,152 320,301


Less: Interest paid on deposits and borrowings 13 92,751 7,225,340 2,228 171,852
Net interest income 41,879 3,329,723 1,924 148,449
Commission, exchange and brokerage 14 - - - -
Total operating income 41,879 3,329,723 1,924 148,449
Salary and allowances 15 - - - -
Rent, taxes, insurance, electricity etc. 16 - - - -
Legal expenses 17 - - - -
Postage, stamp, telecommunication etc. 18 - - - -
Stationery, printing, advertisement etc. 19 - - - -
Audit fee 20 - - - -
Depreciation and repair of bank's assets 21 - - - -
Other expenses 22 - - - -
Total operating expense - - - -
Profit before provisions 41,879 3,329,723 1,924 148,449
Provision for loans and advances 44,354 3,500,493 2,650 206,965
Specific provision - - - -
General provision 44,354 3,500,493 2,650 206,965
Provision for off-balance sheet exposures - - - -
Provision for gratuity - - - -
Provision for investment fluctuation in shares - - - -
Provision for incentive Bonus - - - -
Provision for other assets - - - -
Total provisions 44,354 3,500,493 2,650 206,965
Profit before tax (2,475) (170,770) (726) (58,516)
Provision for tax - - - -
Current tax - - - -
Deferred Tax - - - -
Profit after tax (2,475) (170,770) (726) (58,516)

Annual Report 2014 177


NCC Bank Limited
Off-shore Banking Unit
Cash Flow statement
For the year ended on 31 December 2014
2014 2013
USD BDT USD BDT
A) Cash flows from operating activities

Interest received in cash 4,152 320,301 - -


Interest paid by cash (94,979) (7,397,192) - -
Dividend received - - - -
Fees & commission received in cash - - - -
Recoveries of loans previously written off - - - -
Cash paid to employees - - - -
Cash paid to suppliers - - - -
Income taxes paid - - - -
Received from other operating activities - - - -
Paid for other operating activities - - - -
Operating profit before changes in operating
assets and liabilities (90,827) (7,076,891) - -
Increase/(decrease) in operating Assets & Liabilities
Purchase-sale of trading securities - - - -
Loans and advances to other banks (4,435,422) (350,049,281) (265,000) (20,696,500)
Loans and advances to customers ( Other than Banks) - - - -
Other assets (4,152) (320,301)
Deposits/ borrowings from other Banks 4,593,461 362,638,585 265,000 20,693,982
Deposits from customers ( Other than Banks) - - - -
Other liabilities account of customers - - - -
Other liabilities - - 4,152 320,301

Net Cash received from operating activities 67,212 5,512,413 - (2,518)


B) Cash flows from investing activities
Proceeds from sale of securities - - - -
Payment for purchase of Securities - - - -
Purchase of property, plant and equipment - - - -
Sales proceeds of fixed assets - - - -
Net cash used in investing activities - - - -

C) Cash flows from financing activities

Received from issue of loan capital and debt securities - - - -


Payment for redemption of loan capital & debt security - - - -
Dividend paid in cash - - - -
Net cash received from financing activities - - - -
D) Net (decrease) / increase in cash (A+B+C) 67,212 5,512,413 - (2,518)
E) Effects of exchange rate changes on
cash and cash-equivalents - (276,636) 2,518
F) Opening cash and cash-equivalents as 1st January - - - -
G) Closing cash and cash-equivalents (D+E+F) 67,212 5,235,777 - -

These financial statements should be read in conjunction with the annexed notes.

Annual Report 2014 178


NCC Bank Limited
Off-shore Banking Unit
Notes to the Financial Statements
As at and for the year ended on 31 December 2014

1.1 Status of the Units

Off-shore Banking Unit (OBU) of NCCBL governed under rules and guidelines of Bangladesh Bank. The Bank
obtained permission from Bangladesh Bank for operating of Off-shore Banking units located at our Foreign
Exchange Branch & Agrabad Branch vide Bangladesh Bank Letter No. BRPD (P-3)744(113)/2010-1648 dated
02 May 2010. The Bank commenced the operation of its Off-shore Banking Units from 26 August 2013 at
Foreign Exchange Branch, Dhaka. Operation of OBU located at Agrabad Branch, Chittagong will be started
within very soon.

1.1.1 Principal activities

The principal activities of the OBU are to provide all kinds of commercial banking services to its customers
through its Off-shore Banking units in Bangladesh.

1.2 Significant accounting policies and basis of preparation of financial statements

1.2.1 Basis of accounting

The off-shore banking Units maintain its accounting records in USD from which accounts are prepared
according to the Bank Companies Act-1991, Bangladesh Accounting Standards (BASs), Bangladesh Financial
Reporting Standards (BFRSs) Other laws and regulations applicable in Bangladesh and applicable directives
issued by Bangladesh Bank.

1.2.2 Use of estimates and judgments

The preparation of financial statements requires management to make judgment, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets. Liabilities, income and
expenses. Actual expenses may differ from these estimates. The figure appearing in these financial statements
have been rounded off to the nearest integer.

1.2.3 Foreign currency transaction

a) Foreign currencies transaction

Foreign currency transactions are converted in to equivalent Taka using the ruling exchange rates on the dates
of respective transactions as per BAS-21 "The effects of changes in Foreign Exchange Rates". Foreign currency
balances held in US Dollars are converted into Taka at weighted average rate of inter-bank market as determined
by Bangladesh Bank on the closing date of every month.

b) Transaction gains and losses

The resulting exchange transaction gains and losses are included in the profit and loss account.

1.2.4 Cash flow statement

Cash flow statement has been prepared in accordance with the BRPD circular no.14 dated 25 June 2003 issued
by the Banking Regulations and Policy Department of Bangladesh bank.

1.2.5 Reporting period

The financial statements cover from 01 January 2014 to 31 December 2014.

Annual Report 2014 179


1.3 Assets and their valuations

1.3.1 Cash and cash equivalents

cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank
and highly liquid financial assets which are subject to insignificant risk to change in their fair value, and are used
by the unit management for its short-term commitments.

1.3.2 Loans and Advances

a) Loans and advances of off-shore banking units are stated in the balance sheet on gross basis.

b) Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest is not
charged on bad and loss as per guidelines of Bangladesh. Records of such interest amounts are kept in separate
memorandum accounts.

1.4 Basis for valuation of liabilities and provisions


Provision for liabilities

A provision for recognized 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 out flow 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 Interest paid

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 Bank's functional currency. Figure 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 closing rate as at
transaction date and average rate.

2014 2013
USD BDT USD BDT

3 Balance with other Banks and financial institutions :

In Bangladesh - - - -
Outside Bangladesh 67,212 5,235,777 - -
67,212 5,235,777 - -
4 Loans and Advances

Loans, cash credits, overdrafts etc.( Note-4.1) - -


Bills purchased and discounted (Note-4.2) 4,700,422 370,745,781 265,000 20,696,500
4,700,422 370,745,781 265,000 20,696,500

Annual Report 2014 180


2014 2013
USD BDT USD BDT
4.1 Loans, cash credits, overdrafts etc.

Inside Bangladesh: - - - -
Outside Bangladesh: - - - -
- - - -
4.2 Bills purchased and discounted
Inside Bangladesh: - -
Outside Bangladesh: 4,700,422 370,745,781 265,000 20,696,500
4,700,422 370,745,781 265,000 20,696,500

5 Fixed assets including premises, furniture and fixtures - - - -

6 Other assets

Interest receivable on loans and advances 134,631 10,555,063 4,151.66 320,301

134,631 10,555,063 4,151.66 320,301

7 Borrowing from other banks, financial institutions and agents 4,858,461 383,332,567 265,000 20,693,982

8 Deposits and other accounts - - - -

8.1 Bills payable:

9 Other liabilities

Provision for loans and advances (9.1) 47,004 3,707,458 2,650 206,965
Interest payable - - 2,228 171,852
47,004 3,707,458 4,878 378,817
9.1 Provision for loans and advances
Opening Balance 2,650 206,965 -
Provision for loans and advances charged during the year 44,354 3,500,493 2,650 206,965
Closing Balance 47,004 3,707,458 2,650 206,965

9.2 Foreign currency translation gain/(loss) (274,119) 2,518

10 Surplus in profit and loss account


Opening balance (726) (58,516) - -
Profit/(Loss) during the year (2,475) (170,770) (726) (58,516)
Closing balance (3,201) (229,286) (726) (58,516)

11 Contingent liabilities :

11.1 Acceptances and endorsement - - - -

11.2 Letter of guarantee - - - -

11.3 Letter of credit issued - - - -

11.4 Bills for collection - - - -

Annual Report 2014 181


2014 2013
USD BDT USD BDT

12 Interest income

Interest on loans and advances 134,631 10,555,063 4,152 320,301

13 Interest paid on deposits and borrowings

Interest on borrowings 92,751 7,225,340 2,228 171,852

14 Commission, exchange and brokerage - - - -

15 Salary & allowances - - - -

16 Rent, taxes, insurance, electricity etc. - - - -

17 Legal Expenses - - - -

18 Postage, stamp and telecommunication - - - -

19 Stationery, printing, advertisement etc. - - - -

20 Audit fees - - - -

21 Repairs, maintenance, amortization and depreciation


21.1 Repairs & maintenance : - - - -

21.2 Depreciation: - - - -

22 Other expenses - - - -

Annual Report 2014 182


NCCB SECURITIES AND FINANCIAL SERVICES LTD.
DIRECTORS REPORT TO THE SHAREHOLDERS

Dear Shareholders,

Assalamualaikum,

On behalf of the Board of Directors of NCCB Securities and Financial Services Ltd. I am immensely pleased to present before
you the Directors Report, Auditors Report and the Audited Financial Statements of the Company for the year ended on 31st
December, 2014 in the 5th Annual General Meeting for consideration, approval and adoption of our valuable shareholders.
But before that I would like to place a brief description of both Bangladesh and Global economic state during the year under
report for your reference.

Global Economy:
The World economy is still in the struggle to recover from economic downward trend as many advanced countries are trying
to cope with the aftermath of the global financial crisis. The recovery in developed nations has been uneven, as some
countries like the United States and United Kingdom have exceeded pre-crisis output peaks, but countries under the Euro
Zone are still below earlier peaks. Middle-income countries have also been less dynamic than in the past due to cyclical
reasons and to structural slowdown as well. Low-income countries continue to grow at a steady pace, despite a challenging
global environment. The World Bank has estimated that the growth in South Asia will rise at an estimated 5.5 percent in
2014 from a 10-year low of 4.9 percent in the previous year.

Bangladesh Economy:
Bangladesh has been experiencing steady economic growth over the years and could sustain an average GDP growth rate
of more than 6.0 percent despite global economic meltdown. During FY 2013-14 economic activity was disrupted by
political turmoil and uncertainty surfaced due to the general election of January 2014. However, macroeconomic stability
prevailed and foreign currency reserve buffers have been increased further. Gross Domestic Product (GDP) growth rate in
FY 2013-14 increased to 6.12 percent from 6.01 percent in FY 2012-13. Substantial remittance inflows and export activities
helped in achieving this solid economic growth rate. An impressive GDP growth rate of 6.5 percent for Bangladesh has been
projected by IMF in 2015, where the projection for Asia is 5.5 percent. Further, the Asian Development Bank (ADB) has also
projected a growth rate of 6.4 percent in FY 2014-15 for our country. In FY 2013-14, per capita GNI (gross national income)
at current market price of Bangladesh has been estimated to be about US$ 1190, against US$ 1054 for the preceding fiscal
year which was 12.9 percent. On the other hand, per capita GDP at current market price has also increased to US$ 1,115 in
FY 2013-14 from US$ 976 in FY 2012-13 showing US$ 139 increase or 14.2 percent growth.

At the end of FY 2012-13, foreign exchange reserve stood at US$ 15.32 billion, which was US$ 21.56 billion at the end of
FY 2013-14. Over the last few years, Bangladesh could maintain stable economic growth due to homebound remittance and
the remarkable growth of the hundred percent export-oriented readymade garments industry. Remittance inflows increased
four times in the last ten years. During FY 2012-13, remittance receipt was US$ 14.64 billion, which was US$ 14.23 billion
during FY 2013-14. Bangladesh has emphasized to improve the labor and capital efficiencies and increase investment rates,
to become a middle income country by 2021.

Capital Market of Bangladesh:


Owing to the untiring efforts of the concerned authority, the capital market of Bangladesh is moving towards achieving a
solid base. Demutualization in both the bourses (DSE & CSE), the strong monitoring in the capital market by BSEC using
powerful surveillance software, have increased transparency, accountability and stability in the capital market making the
capital market a matter of great attraction to the local and foreign investors in terms of investment in stocks.

Margin loan to the Client:


NCCB Securities and Financial Services Ltd has been allowing Margin loan to its valued clients active in capital market under
Margin Rule-1999 of BSEC. Total outstanding balance of the loan as 31.12.2014 was Tk.460.74 crore.

Annual Report 2014 183


Directors' Report
Operational Result:
The Company could earn an operational profit of Tk. 2.12 crore for the year ended as on 31st December 2014. Out of this,
provision for Margin Loan has been kept for Tk.1.00 crore as per directive of BSEC and provision for Income Tax has also
been made for Tk.0.79 crore. Thus, Retained Profit stood at Tk.0.33 crore only for the year, 2014.

Appointment of Auditors:
The auditor of the Company M/S. Shafiq Mizan Rahman & Augustine will retire in this Annual General Meeting (AGM).Being
eligible for reappointment as auditor of the Company, the Board of Directors has been recommended for reappointment of
M/S. Shafiq Mizan Rahman & Augustine, Chartered Accountants as auditor of the company for the year 2015 at a
remuneration of Tk. 25,000/-(Twenty Five Thousand) only for the approval of the shareholders in the Companys 5th Annual
General Meeting (AGM).

Appreciation:
On behalf of the members of the Board of Directors of NCCB Securities and Financial Services Ltd. I take this opportunity to
record thanks and gratitude to the Govt. of the Peoples' Republic of Bangladesh, Bangladesh Securities and Exchange
Commission, Dhaka Stock Exchange Ltd, Chittagong Stock Exchange Ltd, different Government Agencies, Regulatory
Bodies, Shareholders, Patrons, Valued Clients for their continuous support, guidance and cooperation and look forwards to
their continued support and co operation in future.

The Board of Directors also records its thanks to the Management Team and all the employees of the NCCB Securities and
Financial Services Ltd for their dedicated services towards the growth of the institution.

On behalf of the Board of Directors.

Alhaj Md. Nurun Newaz


Chairman

Annual Report 2014 184


Auditors Report To The Shareholders of
NCCB Securities and Financial Services Limited
We have audited the accompanying financial statements of NCCB Securities and Financial Services Limited (the
Company), which comprise the Statement of Financial Position as at 31 December 2014 and the related Statement of
Profit or Loss and other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year
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 (BFRS), 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 (BSA).Those standards require that we comply with ethical requirements
and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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 risks 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 give a true and fair view of the financial position of the Company as at 31 December
2014 and of its financial performance and its cash flows for the year then ended in accordance with the Bangladesh Financial
Reporting Standards (BFRS) and comply with the Companies Act, 1994, the Securities and Exchange Rules, 1987 and other
applicable laws and regulations.

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 purpose 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 Companys financial statements dealt with by the report are in agreement with the books of account; and

d the expenditures incurred were for the purpose of the companys business:

Dated, Dhaka SHAFIQ MIZAN RAHMAN & AUGUSTINE


25 April 2015 Chartered Accountants

Annual Report 2014 185


Annexure-O

NCCB Securities and Financial Services Limited


Statement of Financial Position
As at 31 December 2014

2014 2013
Notes
Taka Taka

Assets
Non-Current Assets

Property, Plant & Equipment 3 16,590,351 18,849,836


Intangible Assets 4 714,365 1,814,441
Investment in Shares of DSE & CSE 5 19,401,385 19,401,385
36,706,101 40,065,662
Current Assets
Investment in Marketable Securities 6 9,056,080 6,076,010
Accounts Receivable 7 11,610,509 7,754,479
Advance, Deposit and Prepayments 8 5,030,430 12,500
Advance Income Tax 9 201,347,939 162,088,313
Margin Loan to Customers 10 4,607,372,304 4,514,072,239
Cash and cash equivalents 11 9,444,805 13,969,598
Total Current Assets 4,843,862,067 4,703,973,139
Total Assets 4,880,568,168 4,744,038,801

Equity and Liabilities

Paid up Capital 12.2 2,000,000,000 2,000,000,000


Retained Earnings 13 34,150,218 30,871,582
Equity 2,034,150,218 2,030,871,582
Non Current Liabilities - -
Current Liabilities
Short Term Loan 14 1,811,631,457 1,890,840,821
Accounts Payable 15 653,815,275 459,622,509
Other Liabilities 16 179,725,106 169,337,427
Provision for Income Tax 17 201,246,112 193,366,462
Total Current Liabilities 2,846,417,950 2,713,167,219
Total Liabilities 2,846,417,950 2,713,167,219
Total Equity and Liabilities 4,880,568,168 4,744,038,801

These Financial Statements should be read in conjunction with the annexed notes from 1 to 32

Company Secretary Chairman Chief Executive Officer

See annexed auditor's report to the Shareholders of the date.

Dated, Dhaka SHAFIQ MIZAN RAHMAN & AUGUSTINE


25 April 2015 Chartered Accountants

Annual Report 2014 186


NCCB Securities and Financial Services Limited
Statement of Profit or Loss and other Comprehensive Income
For the year ended on 31 December 2014
2014 2013
Notes
Taka Taka

Operating Revenue:
Brokerage Commission 18 102,173,092 102,914,461
Interest on Margin Loan 19 251,601,091 465,544,860
Other Operating revenue 20 3,412,269 4,773,187
357,186,451 573,232,508

Less: Direct Expenses 21 280,111,079 276,591,891


Net Revenue from Operation 77,075,372 296,640,617
Add: Other Income 22 439,049 1,007,963
Total Revenue 77,514,420 297,648,580

General & Administrative Expenses

Salaries & Allowances 23 30,451,984 24,682,178


Rent, Taxes, Insurance, Electricity etc. 24 12,138,076 11,940,819
Postage, Stamp & Telecommunication 25 682,169 565,585
Stationery, Printing and Advertisement 26 497,991 488,610
Director Fees 27 190,500 -
Audit Fees 28 29,250 15,000
Depreciation, Amortization and Repair & Maintenance of Company's Assets 29 6,929,392 8,356,550
Other Expenses 30 5,436,773 4,750,924
56,356,134 50,799,666
Profit/(loss) before Provisions 21,158,286 246,848,914
Provision for Investment Fluctuation in shares - (543,683)
Provision for unrealized Loss in Margin Loan 16.1 10,000,000 153,647,099
Total Provision 10,000,000 153,103,416
Profit/(loss) before Tax 11,158,286 93,745,498

Less: Provision for Income Tax 17 7,879,650 65,086,678


Net Profit /(loss) after Tax 3,278,636 28,658,820
Other Comprehensive Income - -
Total Comprehensive Income for the year 3,278,636 28,658,820

These Financial Statements should be read in conjunction with the annexed notes from 1 to 32.

Company Secretary Chairman Chief Executive Officer

See annexed auditor's report to the Shareholders of the date.

Dated, Dhaka SHAFIQ MIZAN RAHMAN & AUGUSTINE


25 April 2015 Chartered Accountants

Annual Report 2014 187


NCCB Securities and Financial Services Limited
Statement of Cash Flows
For the year ended on 31 December 2014

2014 2013
Notes
Taka Taka

A. Cash flows from operating activities:


Brokerage commission received 102,173,092 102,914,461
Interest received on margin loan 251,601,091 465,544,860
Received from operating income 3,717,067 5,315,208
Cash paid to service provider (89,386,663) (105,424,694)
Cash paid for operating activities (56,557,320) (55,978,587)
Interest Paid (269,353,226) (266,876,964)
Income taxes paid (39,259,626) (59,500,479)
Net cash from operating activities 31 (97,065,586) 85,993,805
B. Cash flows from investing activities
Purchase of fixed assets (1,508,981) (469,380)
Sale proceeds of fixed assets 51,797 -
Purchase of shares (2,980,070) (1,337,627)
Gain / (realized) on sale of shares - 343,297
Dividend received 134,250 51,760
Margin loan to customers (93,300,065) (289,818,569)
Intangible asset purchased - (75,000)
Net cash used in investing activities (97,603,069) (291,305,519)

C. Cash flows from financing activities:


Loan received 190,143,862 398,357,356
Final dividend paid for the year 2012 - (20,000,000)
Interim dividend for the year 2012 - (160,000,000)
Net cash used in financing activities 190,143,862 218,357,356
Net increase/decrease in cash and cash equivalents (A+B+C) (4,524,793) 13,045,642
Cash and cash equivalents at beginning of the year 13,969,598 923,956
Cash and cash equivalents at end of the year 9,444,805 13,969,598

Company Secretary Chairman Chief Executive Officer

Annual Report 2014 188


NCCB Securities and Financial Services Limited
Statement of Changes in Equity
For the year ended on 31 December 2014

Particulars Paid up Capital Retained Earnings Total


Balance as on 01 January 2014 2,000,000,000 30,871,582 2,030,871,582
Net Profit for the year - 3,278,636 3,278,636
Balance as on 31 December 2014 2,000,000,000 34,150,218 2,034,150,218

Balance as on 01 January 2013 2,000,000,000 22,212,763 2,022,212,763


Net Profit for the year - 28,658,819 28,658,819
Appropriation:
Final Dividend for 2012 - (20,000,000) (20,000,000)
Balance as on 31 December, 2013 2,000,000,000 30,871,582 2,030,871,582

Company Secretary Chairman Chief Executive Officer

NCCB Securities and Financial Services Limited


Summary of Significant Accounting Policies and Other Explanatory Information
As at and for the year ended on 31 December 2014

1 Significant Accounting Policies & Other Material Information:

1.1 Legal Form of the entity:

NCCB Securities and Financial Services Limited (the "Company") has been incorporated as a private limited company with
the Registrar of Joint Stock Companies and Firms, Dhaka, Bangladesh bearing Registration No.C - 83683/10 dated April
04, 2010 under the Companies Act, 1994, registered office of the company situated at NCC Bank Bhaban (3rd Floor),13/1
& 13/2 Toyenbee Circular Road, Motijheel C/A, Dhaka-1000.

1.2 Nature of Business :


The main objective of the Company is to act as a full fledged Stock Broker & Stock Dealer to execute buy and sell order
and to maintain own portfolio as well as customers portfolio under the discretion of customers. The company also
performs the other activities relates to Capital Market as and when regulators permits the company to carry out activities
as per their guidelines.

2 Significant Accounting Policies

2.1 Basis of Presentation of Financial Statements

The Financial Statements have been Prepared on a going concern basis following accrual basis of accounting except for
statement of cash flows in accordance with the Company's Act 1994, Securities & Exchange Rules 1987, the listing Rules
of Dhaka & Chittagong Stock Exchanges and International Accounting Standards (IAS), International Financial Reporting
Standards (IFRS) as adopted in Bangladesh by the Institute of Chartered Accountants of Bangladesh as Bangladesh
Financial Reporting Standards (BFRS's) and other applicable laws & regulations.

Annual Report 2014 189


2.2 Components of the Financial Statements
The Financial Statements referred to here comprise of:

(a) Statement of Financial Position;


(b) Statement of Profit or Loss and other Comprehensive Income;
(c) Statement of Changes in Equity;
(d) Statement of Cash Flows; and
(e) Summary of Significant Accounting Policies and Other Explanatory Information;

2.3 Basis of Measurement

The Financial Statements have been prepared based on historical cost convention basis. No adjustment has been made
for inflationary factors affecting the financial statements. The accounting policies, unless otherwise stated, have been
consistently applied by the Company and are consistent with those of the previous year.

2.4 Functional and presentational currency

These financial statements are prepared in Bangladesh Taka which is the Companys functional currency. All financial
information presented in Taka has been rounded to the nearest integer.

2.5 Use of Estimates and Judgments

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revision of accounting estimates are
recognized in the period in which the estimate is revised and in any future periods affected.

Revenue Recognition:

Income from brokerage commission is recognized on daily basis in the profit and loss account after receiving the trading
note of securities transacted from Dhaka Stock Exchange Limited & Chittagong Stock Exchange Limited, at which point
performance is assured to be completed.

2.6 Cash flow statement:

Cash flow statement has been prepared as per Bangladesh Accounting Standard (BAS 7) Under Direct Method

2.7 Property, plant and equipment


Recognition and measurement

Items of Property, Plant and Equipment are measured at cost less accumulated depreciation and impairment losses, if
any. Cost includes expenditures that are directly attributable to the acquisition of the asset.

Subsequent costs

The cost of replacing part of an item of Property, Plant and Equipment is recognized in the carrying amount of the item if
it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be
measured reliably. The costs of the day-to-day servicing of Property, Plant and Equipment are recognized in the profit and
loss account as incurred.

Annual Report 2014 190


Depreciation
Depreciation is charged to Computer & Peripherals on the straight line method and Office Equipment and Furniture &
Fixture on the reducing balance method. The rates of depreciation are as follows:
Items Method Rate
Computer & Peripherals Straight Line Method 20%
Office Equipment Reducing Balance Method 10%
Furniture & Fixtures Reducing Balance Method 20%

2.8 Intangibles

Recognition and measurement

Computer software acquired by the Company, which have finite useful lives, are measured at cost less
accumulated amortization.

Amortization of intangible assets

Intangible assets are amortized at the rate of 20% on the straight line method.

2.9 Provision for Current Tax

The Income Tax is assessed under section 82BB of the Income Tax Ordinance (ITO) 1984 on income from
company's normal course of business and at 35% on company's income from other sources. Under section 82C,
income tax deducted under certain sections of the ITO is treated as final discharge of tax payer's tax liabilities from
that source.

2.10 Related Party Transactions

As per Bangladesh Accounting Standards (BAS) -24 " Related Party Disclosures " parties are considered to be
related if one of the parties has the ability to control the order party or exercise significant influence over the other
party in making financial and operational decisions. The Company carried out transactions in the ordinary course
of business on an arm's length basis at commercial rates with related parties.

2.11 Directors' Responsibility Statement

The Board of Directors takes the responsibility for the preparation and presentation of these Financial Statements.

2.12 General

a) Prior years figures have been rearranged, where necessary to conform current years presentation.

b) The figures appearing in these Financial Statements are expressed in Taka currency and rounded off to the nearest Taka .

2014 2013
Taka Taka
3 Property, Plant & Equipment

Property, Plant & Equipment at Cost 36,196,002 34,738,818


Less: Accumulated Depreciation 19,605,651 15,888,982
Written Down Value (WDV) 16,590,351 18,849,836

(Annexure-O (i) may kindly be seen for details).

Annual Report 2014 191


2014 2013
4 Intangible Assets Taka Taka

4.1 Preliminary Expenses

Trade License & TIN Certificate 20,100 20,100


Registration fee 984,225 984,225
Stamp & Share Charges 85,000 85,000
Audit Fee 15,000 15,000
DSE Entrance Fee & Club Member Fee 1,500,000 1,500,000
Stock Broker Registration Fee 40,000 40,000
DSE & CSE Membership and Transfer Fee 1,811,021 1,811,021
4,455,346 4,455,346
Less: Accumulated Amortization 3,935,723 3,044,651
519,623 1,410,695
4.2 Software
Software at cost 820,000 820,000
Bluechip software (MSA) 150,000 150,000
X-Broker Software at cost 75,000 75,000
1,045,000 1,045,000
Less: Accumulated Amortization 850,258 641,254
194,742 403,746
714,365 1,814,441
5 Investment in Shares of DSE & CSE
Investment in Shares of Stock Exchanges
Dhaka Stock Exchange Limited (Note:5.1) 400,385 400,385
Chittagong Stock Exchange Limited (Note:5.2) 19,001,000 19,001,000
19,401,385 19,401,385

The Dhaka Stock Exchange Ltd allotted 7,215,106 number of Ordinary shares of Tk 10 each against the
membership held with them as per approved scheme of Demutualization under the provision of Exchange
Demutualization Act, 2013 as under:
5.1 Investment in shares of Dhaka Stock Exchange Ltd:
Shares Allotted Face Value in Tk
40% Ordinary Shares i.e. 2,886,042 shares of Tk 10/- each credited to BO
A/C # 120209005087704 of NCCB Securities and Financial Services Ltd 28,860,420
60% Ordinary Shares i.e. 4,329,064 shares of Tk 10/- each credited to DSE 43,290,640
Demutualization Blocked account maintained by DSE.
72,151,060
The Chittagong Stock Exchange Ltd allotted 4,287,330 number of Ordinary shares of Tk 10 each against the
membership held with them as per approved scheme of Demutualization under the provision of Exchange Demutu-
alization Act, 2013 as under:
5.2 Investment in shares of Chittagong Stock Exchange Ltd:
Shares Allotted Face Value in Tk
40% Ordinary Share i.e. 1,714,932 shares of Tk 10/- each credited to BO
A/C # 120209005087704 of NCCB Securities and Financial Services Ltd. 17,149,320
60% Ordinary Share i.e. 2,572,398 shares of Tk 10/- each credited to CSE 25,723,980
Demutualization Blocked account maintained by CSE.
42,873,300

Annual Report 2014 192


2014 2013
Taka Taka
6 Investment in Marketable Securities
Investment at cost 9,441,913 6,461,843
Less: Provision for Investment in Marketable Securities 385,833 385,833
9,056,080 6,076,010
Market Value of Investment in shares 9,754,708 6,076,010

7 Accounts Receivable
Receivable from Dhaka Stock Exchange Limited 2,714,157 1,716,076
Receivable from Chittagong Stock Exchange Limited 8,882,505 5,966,612
Receivable against shares - 57,945
Interest Receivable on Margin Loan 13,847 13,847
11,610,509 7,754,479
8 Advance, Deposit and Prepayments:
Suspense Account-Sundry Debtors 40,500 12,500
Advance Against Office Rent 4,989,930 -
5,030,430 12,500
9 Advance Income Tax

Advance Income Tax paid in Cash 162,024,918 134,459,986


Income Tax deducted at source by DSE & CSE 39,183,282 27,522,775
Advance Income Tax deducted at source on Bank Interest 139,739 105,552
201,347,939 162,088,313
Year wise Break up of Advance Income Tax:
Accounting Year Provisional Amount Cash Paid
2011 84,544,924 31,142,098
2012 43,734,860 71,432,796
2013 65,086,678 59,513,420
2014 7,879,650 39,259,626
Total 201,246,112 201,347,939
10 Margin Loan to Customers
Margin Loan to Customers 4,607,372,304 4,514,072,239

The above Margin Loan are lying with 10,447 no of Investors.


11 Cash and cash equivalents:
Cash in Hand 631 18
Cash at Banks :
Special Notice Deposit Account with:

IFIC Bank Limited, Stock Exchange Branch,Dhaka 2,447,626 13,567,665


One Bank Limited, Principal Branch,Dhaka 898,727 100,272
NCC Bank Limited, Motijheel Main Branch,Dhaka 291,755 301,643
3,638,108 13,969,580
Current Deposit Account with:

Midland Bank Limited, Hemayetpur Branch,Savar,Dhaka 320 -


NCC Bank Limited, NCC Bank Bhaban Branch,Dhaka 5,805,746 -
5,806,066 -
9,444,174 13,969,580
9,444,805 13,969,598

Annual Report 2014 193


2014 2013
Taka Taka
12 Share Capital
12.1 Authorized Capital
50,000,000 Ordinary shares @ of Tk. 100 each 5,000,000,000 5,000,000,000
5,000,000,000 5,000,000,000
12.2 Issued, Subscribed and Paid up Capital

The Issued ,Subscribed and Paid up Capital is Tk 2,000,000,000.00 divided into 20,000,000 ordinary shares
of Tk 100 each fully paid. The shareholding position of the Company as on December 31,2014 was as follows:

Name of Shareholders Number of


shares held
NCC Bank Limited 19,999,999 1,999,999,900 1,999,999,900
Alhaj Md. Nurun Newaz 1 100 100
Total 20,000,000 2,000,000,000 2,000,000,000

13 Retained Earnings

Balance at the beginning of the year 30,871,582 22,212,763


Add: Net profit during the year 3,278,636 28,658,819
34,150,218 50,871,582
Final dividend for 2012 - (20,000,000)
Balance at the end of the year 34,150,218 30,871,582

14 Short Term Loan

NCC Bank Ltd. Motijheel Main Branch,Dhaka 1,761,631,457 1,890,840,821


Midland Bank Ltd. Hemayetpur Branch,Savar,Dhaka 50,000,000 -
1,811,631,457 1,890,840,821

The terms & conditions of above short term Loan is as under:

Particulars Security Rate of Interest Adjustment Period

1. Loan Agreement Within One Year


NCC Bank Limited 2. Usual Charge Documents as per Credit norms 14.00% from 30.11.2015
3. Board Resolution of the Company.

1. Letter of Comfort of NCC Bank Ltd


Midland Bank Limited 2. Loan Agreement Within One Year
14.50%
3. Cheque covering the debt amount from 19.08.2015
4. Usual charge documents

Annual Report 2014 194


2014 2013
Taka Taka
15 Accounts Payable

Security Deposit received from BO Account holders 23,102,030 24,084,030


Sundry Creditors 8,620,764 4,767,105
Interest suspense 616,684,620 405,524,421
Payable to CDBL 107,110 97,720
Payable to Dhaka Stock Exchange Limited - 23,648,385
Payable to Chittagong Stock Exchange Limited 610,667 262,525
Payable to Suppliers 1,115,000 1,115,000
IPO Money Deposit 3,371,000 -
Other Payables 204,084 123,324
653,815,275 459,622,509
16 Other Liabilities
Provision for expenses 1,499,810 1,112,131
Provision for Interest waiver 9,400,000 9,400,000
Provision for Unrealized loss in Margin Loan (Note-16.1) 168,825,296 158,825,296
179,725,106 169,337,427
16.1 Provision for Unrealized loss in Margin Loan

Balance at the beginning of the year 158,825,296 14,578,197


Less: Amount transferred for interest waiver in favour of small investors - (9,400,000)
Add: Addition during the year 10,000,000 153,647,099
Balance at the end of the year 168,825,296 158,825,296

As complied with BSEC Circular no. SEC/mukhpatra/2011/696 dated on 19 February 2013, has been provided
provision against equity erosion of Margin Loan A/C's for Tk 10,000,000.00 from the current year profit and
accumulated balance thereby stood at Tk 168,825,296.00 as on December 31, 2014. Moreover, Interest
Suspense has been buildup for Tk 616,684,820.00 against Margin Loan facility till 31 December, 2014 as well.
Interest receivable has also been kept in separate A/C namely 'Memorandum register' for Tk 501,866,778.85
on classified Margin Loan.

17 Provision for Income Tax

Balance at the beginning of the year 193,366,462 128,279,784


Add: Provision made during the year 7,879,650 65,086,678
201,246,112 193,366,462
Less: Addition during the year - -
Balance at the end of the year 201,246,112 193,366,462

Year wise Break up of provision for Income Tax :


Accounting Year
2011 84,544,924 84,544,924
2012 43,734,860 43,734,860
2013 65,086,678 65,086,678
2014 7,879,650 -
Total 201,246,112 193,366,462
(Annexure-O (ii) may kindly be seen for details).
18 Brokerage Commission
Brokerage Commission-DSE 100,004,344 101,342,368
Brokerage Commission-CSE 2,168,748 1,572,093
102,173,092 102,914,461

19 Interest on Margin Loan 251,601,091 465,544,860

Annual Report 2014 195


2014 2013
Taka Taka
20 Other Operating Revenue
Account Opening Fee 233,500 131,500
BO Account Maintenance Fee 1,067,800 1,071,300
Margin Account Opening Fee 12,000 18,000
Marginal Renewal Fees - 2,742,500
Account Closing Fee 273,581 249,243
Service Charge income 14,000 12,000
Postage charge recovery - 3,780
Commission from Dealer 12,634 -
Income from CDBL Charges 1,798,754 544,864
3,412,269 4,773,187
21 Direct Expenses
Howla Charge DSE 1,114,096 1,224,334
Howla Charge CSE 40,924 30,772
Laga Charge DSE 4,596,073 4,675,772
Laga Charge CSE 84,929 60,979
Investor Protection Fund 11,922 12,097
CDBL Charges 4,909,910 3,710,972
Interest on Short Term Loan 269,353,226 266,876,964
280,111,079 276,591,891
22 Other Income
Interest on balance with other Banks 304,799 542,021
Capital Gain on sale of Shares - 401,242
Dividend on shares 134,250 64,700
439,049 1,007,963
23 Salary and Allowances
Basic Salary 14,518,281 12,290,586
House Rent Allowance 4,872,165 3,331,347
Entertainment Allowance 630,604 735,242
Medical Allowance 1,261,798 1,447,665
Conveyance Allowance 812,501 593,825
Washing Allowance 26,390 10,800
Contribution to Provident Fund 1,291,294 1,090,163
Special Allowance 1,800 10,700
Bonus 5,914,650 4,520,600
Casual Wages 1,122,500 651,250
30,451,984 24,682,178
24 Rent, Taxes, Insurance, Electricity etc.
Rent Office 10,416,398 10,415,030
Insurance Premium 7,500 -
Electricity 1,714,178 1,525,789
12,138,076 11,940,819
25 Postage, Stamp & Telecommunication
Stamp, Postage & Courier 47,605 41,707
Telephone 634,564 523,878
682,169 565,585
26 Stationery, Printing and Advertisement
Printing & Stationery 484,891 433,324
Publicity & Advertisement 13,100 55,286
497,991 488,610
27 Director Fees 190,500 -
28 Audit Fees 29,250 15,000

Annual Report 2014 196


2014 2013
Taka Taka
29 Depreciation, Amortization, Repairs & Maintenance of Company's assets
Depreciation on Fixed Assets Annexure-O (i) 3,716,668 4,065,095
Amortization of Preliminary Expenses 891,072 891,072
Amortization of Software 209,004 222,754
Car Maintenance 66,206 210,612
Repair & Maintenance 2,046,442 2,967,017
6,929,392 8,356,550
30 Other Expenses
Utilities 118,780 122,250
Newspaper & Periodicals 81,369 99,789
Fuel cost for vehicle 85,753 -
Liveries & Uniform 52,292 39,559
Traveling expenses 489,905 213,849
Training, Development & Promotion 21,000 3,000
Conveyance 34,511 303,679
Bank Charges 74,742 49,292
Carrying Charge 9,500 -
Entertainment 609,511 546,455
Software & Development fees 250,000 -
Connectivity Charges 3,369,100 3,266,870
Trade Subscription 240,310 88,300
Gas Bill - 16,006
Business Promotion expenses - 1,875
5,436,773 4,750,924
31 Reconciliation of Cash Flow Statement from Operating Activities
under Indirect Method
Cash flows from operating activities under indirect method:
Profit /(loss) before Tax 11,158,286
Adjustment for non cash items:
Depreciation on fixed Assets Annexure-O(i) 3,716,668
Amortization of preliminary expenses 891,072
Amortization of software 209,004
Provision for unrealized loss in margin loan 10,000,000
14,816,744
25,975,030
Changes in operating assets & liabilities
Changes in accounts receivable (3,856,030)
Changes in advance, deposit & prepayments (5,017,930)
Changes in accounts payable 194,192,766
Changes in other Liabilities except provision for unrealized loss in margin loan 387,679
185,706,485
211,681,516
Dividend income considered in investing activities (134,250)
211,547,266
Interest Paid (269,353,226)
Income taxes Paid (39,259,626)
Net cash from operating activities (97,065,586)
32 Event after the Reporting Period
(a) The Board of Directors in its Meeting held on 25 April 2015 approved the Financial Statements and also authorized
the same for issue.
(b) There was no other significant event occurred till the date of signing the Financial Statements.

Company Secretary Chairman Chief Executive Officer

Annual Report 2014 197


Annexure-O(i)
NCCB Securities and Financial Services Limited
SCHEDULE OF PROPERTY, PLANT & EQUIPMENT
As at 31 December 2014

Cost Depreciation
Written Down
Disposal/ Disposal/
adjustment Rate of Balance as Balance as at Value (WDV)
Particulars Balance as Addition Balance as at Charged for adjustment
Depreciation 1st January 31 December as at
1st January During during 31 December during the Year
2014 the Year 2014 31 December 2014
2014 the Year the Year 2014
Computer & Peripherals 14,480,303 135,500 - 14,615,803 20% 7,027,375 2,345,693 - 9,373,068 5,242,735

Annual Report 2014


Office Equipment 7,380,891 150,000 51,797 7,479,094 20% 4,169,264 588,937 - 4,758,201 2,720,893
Furniture & Fixture 12,877,624 1,223,481 - 14,101,105 10% 4,692,344 782,037 - 5,474,381 8,626,724

198
Total 34,738,818 1,508,981 51,797 36,196,002 15,888,983 3,716,668 - 19,605,651 16,590,351

NCCB Securities and Financial Services Limited Annexure-O(ii)

Corporate Tax Position


As at 31 December 2014

Accounting Assessment Provision for Advance Income Tax Liability as (Short)/Excess Remarks
Year Year Income Tax Tax Paid per Return
1 2 3 4 5 6=(3-5) 7
2011 2012-2013 84,544,924 69,966,727 69,966,727 14,578,197 Return filed u/s -82BB of ITO 1984
2012 2013-2014 43,734,860 52,811,854 52,811,854 (9,076,994) Return filed u/s -82BB of ITO 1984
2013 2014-2015 65,086,678 59,350,764 59,350,764 5,735,914 Return filed u/s -82BB of ITO 1984
2014 2015-2016 7,879,650 19,340,561 - -
Total 201,246,112 201,469,906 182,129,345 11,237,117
NCCB Capital Limited
Directors Report, 2014
Dear Shareholders,

I am pleased to present the Directors Report of the NCCB Capital Ltd. for the year ended on 31.12.2014
together with audited financial statement and auditors report thereon along with the Companys state
in compliance with the Companies Act-1994.

Dear shareholders,

You are aware that due to policy reasons of the licensing authority, the company could not obtain
license from the competent authority as yet and as such failed to start its operational activities. It is
hoped that the legal and procedural hindrance would clear away soon. The authority at the parent
company is trying its best to obtain required license at the earliest.

Due to want of license, the company was compelled to pass another year of its existence without being
able to produce any result. However, a brief description is appended below about the affairs of the
company for ready reference.

Authorized and paid-up-Capital: The Authorized and paid-up-Capital of the Company remained at Tk.
1000 Million and Tk. 250 Million respectively as on 31.12.2014.

Operational Result: The Company due to its inoperative state suffered operational loss as on
31.12.2014 to the tune of Tk. 0.25 Million.

Conclusion:
We hope that it will be possible to obtain required license soon & we can go on to operation to play over
role to the growth of the sector in near future. We take this opportunity to record our thanks and
gratitude to all concerned including registrar of joint stock co. and Bangladesh bank for their
co-operation. Our thanks also go to the members of the Board of Directors of the Company for their
guidance so far.

Thanking you,

ASM. Main Uddin Monem


Chairman

Annual Report 2014 199


Auditors Report To The Shareholders of
NCCB Capital Limited
We have audited the accompanying financial statements of NCCB Capital Limited (the Company), which comprise the
Statement of Financial Position (Balance Sheet) as at 31 December 2014 and the related Statement of Comprehensive Income
(Profit and Loss Account) , Statement of Changes in Equity and Statement of Cash Flows for the year 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 (BFRS), 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 (BSA). Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from 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 auditors judgment, including the assessment of the risks 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 give a true and fair view of the financial position of the Company as at 31 December
2014 and of its financial performance and its cash flows for the year then ended in accordance with the Bangladesh Financial
Reporting Standards ( BFRS ) and comply with the companies Act 1994, the Securities and Exchange Rules 1987 and other
applicable laws and regulations.

Report on other Legal and Regulatory Requirements

We also report that:

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were neces
sary for the purpose of our audit and made due verification thereof;

(ii) 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;

(iii) the Companys statement of Financial position and Statement of Comprehensive income dealt with by the report are
in agreement with the books of account; and

(iv) the expenditure incurred were for the purposes of the Companys business.

Dated, Dhaka Hoda Vasi Chowdhury & Co.


29 April 2015
Chartered Accountants

Annual Report 2014 200


Annexure-P
NCCB Capital Limited
Statement of Financial Position
As at 31 December 2014

2014 2013
Notes
Taka Taka
Particulars

Sources of fund

Shareholders' equity
Share capital 3 250,000,000 250,000,000
Retained earnings 4 8,342,114 8,594,632
258,342,114 258,594,632
Long term liabilities 5 - -
Total Sources of fund 258,342,114 258,594,632
Applications of fund

Non-current assets

Property, plant & equipment 6 - -

Preliminary expenses 7 - -

Current assets
Cash and bank balance 8 271,032,940 271,044,320
Advance and prepayments 9 4,957,284 3,724,126
275,990,224 274,768,446
Less: Current liabilities
Payable to NCC Bank Limited 10 12,465,580 10,997,034
Provision for expenses 11 25,750 20,000
Provision for income tax 12 5,156,780 5,156,780
17,648,110 16,173,814
Net current assets 258,342,114 258,594,632

Total Applications of fund 258,342,114 258,594,632

These Financial Statements should be read in conjunction with the annexed notes from 1 to 32.

Company Secretary Chairman Chief Executive Officer

See annexed auditor's report to the Shareholders of the date.

Dated, Dhaka Hoda Vasi Chowdhury & Co.


29 April 2015 Chartered Accountants

Annual Report 2014 201


NCCB Capital Limited
Statement of Profit or Loss and Other Comprehensive Income
For the year ended on 31 December 2014

2014 2013
Notes
Taka Taka
Particulars

Operating income 13 - -
Less: Operating expenses 14 - -
Net Income from operation - -
Other income-interest on FDR 15 - 10,854,216
- 10,854,216
Less: Office & administrative Expenses 16 252,518 2,874,382
Profit/(Loss) before financial expenses (252,518) 7,979,834

Less: Financial expenses 17 - -

Net Profit/ (Loss) before tax (252,518) 7,979,834

Less: Provision for income tax 12 - 2,992,438

Net Profit/(Loss) after tax (252,518) 4,987,396

These Financial Statements should be read in conjunction with the annexed notes.

Company Secretary Chairman Chief Executive Officer

See annexed auditor's report to the Shareholders of the date.

Dated, Dhaka Hoda Vasi Chowdhury & Co.


29 April 2015 Chartered Accountants

Annual Report 2014 202


NCCB Capital Limited
Statement of Cash Flows
For the year ended on 31 December 2014
2014 2013
Particulars Taka Taka

Cash flows from operating activities

Interest received on FDR - 15,597,842


Payment for office and administrative expenses 1,221,778 -
Income tax paid (1,233,158) (1,559,784)
Net Cash generated from / (used) for operating activities (11,380) 14,038,058

Cash flows from investing activities - -


Net cash used in investing activities - -

Cash flows from financing activities


Issuance of share capital - -
Net cash received from financing activities - -
Net (decrease) / increase in cash and cash equivalents (11,380) 14,038,058
Cash and cash equivalents at the beginning of the year 271,044,320 257,006,262
Cash and cash equivalents at the end of the year 271,032,940 271,044,320

Cash at bank 271,032,940 271,044,320

Company Secretary Chairman Chief Executive Officer

NCCB Capital Limited


Statement of Changes in Equity
For the year ended on 31 December 2014
Retained earnings/
Particulars Paid up Capital Total
(accumulated losses)
Opening balance as at 01 January 2014 250,000,000 8,594,632 258,594,632
Share issued - - -
Profit/(Loss) during the year - (252,518) (252,518)
Balance as at 31 December 2014 250,000,000 8,342,114 258,342,114

Opening balance as at 01 January 2013 250,000,000 3,607,236 253,607,236


Share issued - - -
Profit during the year - 4,987,396 4,987,396
Balance as at 31 December 2013 250,000,000 8,594,632 258,594,632

Company Secretary Chairman Chief Executive Officer

Annual Report 2014 203


NCCB Capital Limited
Notes to the financial statements
For the year ended on 31 December 2014

1 Background of the company :


NCCB Capital Limited (the "Company") a fully owned subsidiary company of NCC Bank Limited has been
incorporated as a private limited company with the Registrar of Joint Stock Companies and Firms, Dhaka,
Bangladesh bearing Registration No.C - 83649/10 dated April 01, 2010 under the Companies Act, 1994 having
registered Office at NCC Bank Bhaban, 13/1, 13/2, Toyenbee Circular Road, Motijheel C/A, Dhaka-1000.(Previously
at Bhuiyan Center, 68, Dilkusha C/A, Dhaka-1000)
1.1 Nature of business :
The Main objective of the Company is to act as a full fledged merchant banking activities like issue management,
underwriting, advisory services. The company applied to the Securities & Exchange Commission for its license for
carrying out its operations but yet to get clearance up to 31 December 2014, the company could not formally
started its operation.
2 Basis of accounting
The Financial Statements, namely, Statement of financial position, Statement of Comprehensive Income, Cash
Flow Statement, Statement of Changes in Equity and relevant notes thereto, of NCCB Capital Limited are prepared
on a going concern basis under the historical cost convention and in accordance with Bangladesh Accounting
Standards (BAS), Bangladesh Financial Reporting Standards (BFRS) , the Companies Act-1994, and other laws
and rules applicable thereto.
2014 2013
Taka Taka
3 Share capital :
Authorized share capital
( 10,000,000 shares @ of Tk. 100 each) 1,000,000,000 1,000,000,000
Issued, subscribed and paid up capital
(2,500,000 shares @ of Tk. 100 each ) 250,000,000 250,000,000
250,000,000 250,000,000
3.1 Shareholding status:
Particulars No of shares

NCC Bank Limited 2,499,999 249,999,900 249,999,900


Mr. Gazi Hassan Mahmood 1 100 100
2,500,000 250,000,000 250,000,000
4 Retained earnings/(accumulated losses)
Opening balance 8,594,632 3,607,236
Add: Profit/(Loss) during the year (252,518) 4,987,396
Closing balance 8,342,114 8,594,632
5 Long term liabilities - -
6 Property, plant & equipments
At Cost - -
Less: Accumulated depreciation - -
- -
7 Preliminary expenses
Registration fees - -
Documentation fees - -
TIN obtaining charge - -
Trade license fee - -
- -
Less: Amortization during the year - -
- -

Annual Report 2014 204


2014 2013
8 Cash & bank balance : Taka Taka

Cash in hand - -
Cash at bank:
Current deposit account with NCCBL, Dilkusha branch 271,032,940 271,044,320
( Account No.0028-0210017040)
Fixed deposit account with NCCBL, Dilkusha branch - -
( Account No.0028-0330025993) interest rate @ 12.50%
271,032,940 271,044,320
9 Advances & prepayments
Advance against office rent - -
Interest receivable on FDR - -
Advance income tax paid 2,617,812 1,384,654
Advance income tax deducted at source on interest of FDR 2,339,472 2,339,472
4,957,284 3,724,126
10 Payable to NCC Bank Limited :
Registration fees 819,325 819,325
Documentation fees 126,520 126,520
Trade License fee 13,100 13,100
Income Tax paid for obtaining TIN number 1,000 1,000
Payable against advance for office rent - -
Payable against advance income tax of the company 2,617,812 1,384,654
Office rent 8,098,750 7,889,750
Electricity-office 704,017 687,821
Water & Sewage 85,056 74,864
12,465,580 10,997,034
11 Provision for expenses
Audit Fee 25,750 20,000
25,750 20,000
12 Provision for income tax
Opening balance 5,156,780 2,164,342
Add: Addition during the period - 2,992,438
Closing balance 5,156,780 5,156,780
13 Operating income