Post on 12-Jan-2023
Annual Report2014P{ H
h \\ kl HI‘
lullllllllllmlnununulmmmlm///mmQ
1
PUBALI BANK LIMITEDHead OfficePubali Bank Bhaban26, Dilkusha Commercial AreaDhaka-1000, BangladeshPost Box No. 853Fax: 880-2-9564009PABX: 9551614E-mail: mai|box@puba|ibankbd.comwww.puba|ibang|a.comSWIFT: PUBABDDH
Pubali Bank Limited Annual Report 2014
PageLetter of Transmittal O3
Board of Directors O4
Corporate Structure O5
Management Team O7
Notice of the 32nd Annual General Meeting 10
Vision/Mission/Goals 11
Compliance Certificate on Corporate Governance 13
Credit Rating Report 14
Message from the Chairman 15
Report of Managing Director & CEO 16
Directors‘ Report on Financial Statements and Internal Control 17Executive Committee Report 43
Audit Committee Report
PageRisk Management Committee Report 45
Shari'ah Supervisory Committee Report 46
Corporate Social Responsibility (CSR) 47
Eventful Year 2014 49
Key Financial Information 55
Value Added Statement 60
Economic Value Added Statement (EVA) 61
CEO and CFO‘s declaration to the Board 62
Auditors‘ Report 63
Audited Financial Statements 65
World Wide List of Exchange Companies 175
Branch Network 176
Proxy Form and Attendance Slip 183
44
Pubali Bank Limited Annual Report 2014
Letter of Tra nsmittal
All shareholders,Bangladesh Bank,Bangladesh Securities and Exchange Commission,Registrar ofloint Stock Companies and Firms,Dhaka Stock Exchange Limited,Chittagong Stock Exchange Limited,
Dear Sir(s)
It is my pleasure to transmit the Annual Report 2014 of Pubali Bank Limited alongwith theconsolidated balance sheet of its subsidiary company namely Pubali Bank Securities Limited for allconcerned.
The Annual Report includes message from the Chairman of the Board of Directors, Report ofManaging Director & CEO, Directors’ Report and Financial Statements with relevant notes alongwithconsolidated statements of subsidiary company.
I would like to convey my thanks and gratitude to all concerned. This is for your kind information andrecord please.
With regards
(Md. Sayeed Sikder)General Manager &Company Secretary
Pubali Bank Limited Annual Report 2014
Mr. Hafiz Ahmed Mazumder Mr. Habibur Rahman |\/|r_ Fahim Ahmed Faruk Chowdhury Mr. Moniruddin AhmedChairman Vice Chairman vi¢e chairman Director
*1‘
Mr. Syed Moazzem Hussain Mr. Monzurur Rahman Mr. Ahmed Shafi Choudhury Ms. Rumana SharifDirector Director Director Director
M“ M- Kabiruzzama“ Yaqub Mr. Mustafa Ahmed Mr. Musa Ahmed ' .FCMA (Um CGMA Director Director Dlrector
Mr Azizur Rahman
Director
\ | |
Mr. Khurshid-ul-Alam Dr. Shahdeen Malik Mr. Md. Abdul Halim ChowdhuryIndependent Director Independent Director Managing Director & CEO
(Current Charge)
Board of DirectorsChairmanMr. Hafiz Ahmed Mazumder
Vice ChairmanMr. Habibur RahmanMr. Fahim Ahmed Faruk Chowdhury
DirectorsMr. Moniruddin AhmedMr. Syed Moazzem HussainMr. Monzurur RahmanMr. Ahmed Shafi ChoudhuryMs. Rumana Sharif
Pubali Bank Limited Annual Report 2014
Mr. M. Kabiruzzaman Yaqub FCMA (UK), CGMAMr. Mustafa AhmedMr. Musa AhmedMr. Azizur RahmanMr. Khurshid-ul-Alam, Independent DirectorDr. Shahdeen Malik, Independent DirectorMr. Md. Abdul Halim Chowdhury, Managing Director (Current Charge)
Chief Financial OfficerMr. Sayeed Ahmed FCA, ACMA, CGMA
Company SecretaryMr. Md. Sayeed Sikder
Pubali Bank Limited Annual Report 2014
Executive CommitteeMr. Syed Moazzem HussainMr. Habibur RahmanMs. Rumana SharifMr. Musa Ahmedl\/ll’. l\/Id. Abdul Halim Chowdhury Managing Director & CEO (Current Charge)Mr. Md. Sayeed Sikder
Audit Committee
ChairmanMembers
Secretary
Mr. Khurshid-ul-AlamMr. Moniruddin AhmedMr. Ahmed Shafi ChoudhuryMr. M. Kabiruzzaman Yaqub FCMA(UK), CGMADr. Shahdeen MalikMr. Md. Sayeed Sikder
Risk Management Committee
ChairmanMembers
Secretary
Mr. M. Kabiruzzaman Yaqub FCMA(UK), CGMAMr. Fahim Ahmed Faruk ChowdhuryMr. Mustafa AhmedMr. Azizur RahmanMr. Khurshid-ul-AlamMr. Md. Sayeed Sikder
Shari'ah Council
ChairmanMembers
Secretary
lb. M. Azizul Huqlb. Prof. M. Mansurur Rahmanlb. Abdullah Bin Sayeed Jalalabadilb. Md. Mukhlesur Rahmanlb. Mohammad Mahbubur Rahmanlb. Prof. M. Muzahidul Islamlb. Habibur Rahmanlb. Moniruddin Ahmedlb. Ahmed Shafi Choudhurylb. Md. Abdul Halim Chowdhurylb. Abdul Gofran
Auditors
ChairmanFaqih Members
Islamic EconomistEx-Officio Members
Member Secretary
M/S Aziz Halim Khair ChoudhuryChartered Accountants
ACNABINChartered Accountants
Tax AdviserS.F. Ahmed & Co.Chartered Accountants
Managing Director & CEO(Current Charge)Mr. Md. Abdul Halim Chowdhury
Deputy Managing DirectorMr. Safiul Alam Khan Chowdhury
General ManagerMr. Md. Sayeed Ahmed, FCA, ACMA,CGMAMr. Mohammad AliMr. Sk. Golam MohammadMr. Syed Aziz AhmedMr. Md. Sayeed SikderMr. Md. Hasan AliMr. Dewan Ruhul AhsanMr. Md. Sirajul Islam MiahMr. Syed Abdul MazidMr. Habibur RahmanMr. Protik KarimMr. Mohammod Shahnawaz ChowdhuryMr. Dewan Jamil MasudMr. Abu Habib Khairul KabirMr. Ershadul HaqueMr. Md. Mohiuddin AhmedMr. B. M. Shahidul HaqueMr. Mohammad Humayun Kabir
Pubali Bank Training InstituteMr. Niranjan Chandra GopeVice-Principal
Head of Islamic Banking WingMr. Abdul Gofran
Pubali Bank Securities LimitedMr. Mohiuddin AhmedManaging Director & CEO
Chief of Board's Audit CellMr. Md. Shah Alam
Pubali Bank Limited Annual Report 2014
Deputy General Manager
Mrs. Rowshon AkhterMr. Sushil Kumar SahaMr. Pradip Kumar DattaMs. Shireen AktarMr. Md. Belayet HossainMr. Abduhu Ruhul MasihMr. A. S. Sirajul Haque ChowdhuryMr. Arunava ChowdhuryMr. Mohammad Ali KhanMr. Jagot Chandra SahaMr. Nitish Kumar RoyMr. Md. Omar SultanMr. Md. Mamun BakhtMr. Abu Sayeed SiddiquiMr. A.T.M. Mominul IslamMr. Shushil Chandra SikderMrs. Ferdousi lahanMr. Ataullah SiddiquiMr. Md. Rafiqul Islam BhuiyanMr. Shaikh Abdus SaburMr. Shyam Sundar BanikMr. Md. Shamsuddin FaruqueMr. Parimal Kumar DasMr. Md. Ashraful AlamMrs. Shamsun Nahar AktherMr. Kh. Mahbub-E-RabbaniMr. Md. Abdul HakimMr. Md. Abdul HyeMr. Md. Mostafa Kamal MiahMr. Md. Khurshed RezaMr. Zahid AhsanMr. Parimal Chandra DasMrs. Halima KhatoonMr. Md. lmamur RashidMosammat Shahida BegumMr. lftikher HaiderMr. Md. Shah Alam
Mr. Sayed Saiful IslamMrs. Rubina BegumMr. Dilip Kumar PaulMr. Md. Abdul Latif HowladerMr. Mohammad Saiful IslamMr. A. lalilMr. Md. Rafiqul IslamMr. Ziaul Hoque ChowdhuryMr. Mahbub AhmedMr. Md. Moshiur Rahman KhanMr. Ahmed Enayet ManjurMr. Hari Bhushan DebMr. Md. Shahnewaz KhanMr. Md. Shahadat HossainMr. Md. Mohiuddin AhmedMr. Mohammad Monjurul Islam
MojumderMr. Md. Faizul Hoque SharifMr. Md. Zahidur RahmanMr. Md. EshaMr. A.K.M. Muzammel HoqueMs. Nishat Maisura RahmanMr. Md. Anisur RahmanMs. Sultana Sarifun NaharMr. Md. Helal UddinMr. Md. Ehteshamul Hoq Chowdhury
Management TeamAssistant General ManagerMr. Ziauddin AhmedMr. Mohammad Saidul HoqueMr. Sheikh Faizul WahabMr. Faruq HasanMr. Md. Anwar HossainMr. Md. Alamgir HossainMr. Md. Muyeenul HoqueMr. A.K.M. Saiful IslamMrs. Hosne Ara BegumMr. Md. Mizanur RahmanMr. Syed Md. EhahiyaMr. Satya Ranjan ChakrabortyMrs. Shahnaz BegumMr. Md. Rashed Mahbub RabbanMr. Md. Shaheen KhanMr. Sukanta Chandra BanikMr. Debashis BhattacharyyaMr. Md. Faisal AhmedMr. Md. AnisuzzamanMr. Md. Rafiqul IslamMr. Md. Nanna SikderMr. Mohammad ShahjahanMr. Abu Hasan Md. KamruzzamanMr. Endra Mohan SutradharMr. Bibhuti Bhushan TalukderMr. Jibon Kumar RoyMr. Md. Shahidul IslamMr. Shamsul HoqueMr. Tahir Hossain IdrisMr. Shakti Ranjan DasMr. Md. KamruzzamanMr. Md. Noor-E-Alam SarkerMr. H.M. Omar FaruqueMr. Naresh Chandra BashakMr. Faroque AhmedMr. Khan Md. laved lafarMr. Md. Nazrul Islam SarkerMr. Ratan Kumar ShilMr. Mohammad Arifur RahmanMrs. Ismat Ara HuqMr. Ashim Kumar RoyMr. Md. Hasan Imam
Pubali Bank Limited Annual Report 2014
Mr. Mohammed Nurul KabirMr. A.F.M. Nurul IslamMr. Abdul Hoque SikderMr. Md. Solaiman MunshiMr. Dam Kamal KumarMr. Md. Shamsul HoqueMr. Md. Wahid ShamsMr. Md. Bellal Hossain SalimMr. Md. Ziaur RahmanMr. Md. Imtiazul HuqMr. lasim Uddin AhmedMr. Md. Abu Bakar SiddiqueMr. Atahar Ali MollahMr. Md. IshaqueMr. Md. Rustom Ali HowladerMr. Md. Abdus Salam PathanMr. Khandoker Abdur RazzaqueMrs. Shahina HossainMr. Prodyut Kumar RoyMr. Abdullah Al AminMr. Ali Ahmed AkanMr. Nur MohammadMr. Md. Akkas Ali MiahMr. A.F.M. Ruhul AminMr. Md. Muzaffar AliMr. Md. Shahadat HossainMr. Rafiqul IslamMs. Mousumi Rani ShahaMr. Shaheen ShahriaMr. Zahirul IslamMr. Md. Bellal HossainMr. Md. Abu NasarMr. Md. Khairul IslamMr. Nurul AlamMr. Kabir Ahmed ChowdhuryMr. Md. Rafiqul Islam KhanMr. Abdul JabberMr. Md. Abdur RazzaqueMr. Nurul Alam KhanMr. Md. Abdul Wahab MollahMr. Mosharraf HossainMr. Anwar Hossain
Assistant General ManagerMr. Md. Aminul IslamMr. Syed loaharul AlamMr. Mizanur RahmanMr. Md. Abdus Sobhan MiajeeMr. Aminul IslamMr. S.M. Rakib MiahMr. Sajal Willium RozarioMr. Asif IqbalMr. Mohammed Ali AmzadMr. Md. Wahid UllahMr. A.K.M. Abdur RaqibMr. Mollah Md. Ekramul HoqueMr. Jahangir AlamMr. Md. Shajahan MahmoodMr. Md. Shariful IslamMr. Shahidullah BhuiyanMr. Abul Kalam AzadMr. Md. Abdul Mumith ChowdhuryMr. Chowdhury Ishfaqur Rahman QureshiMr. S. M. Liaquat HossainMr. Md. Malequl IslamMr. Muhammad Tarequl Islam
- OPubali Bank Limited Annual Report 2014
Management Team
Ms. Fatema Shaela HossainMs. Ajuba KhandakerMr. Md. Saiful IslamMr. Abu Laich Md. ShamsujjamanMs. Masuma KhatunMr. Mohammad Mohasin SarkerMrs. Kaniz FatimaMr. Mohammad Tofazzal HossainMs. Tahmida SharminMs. Fahmida AkterMr. Md. Shaiful IslamMr. Zubair IslamMr. Chowdhury Md. Shafiul HasanMr. Md. Abul HasanMr. Mohammad Abdur RahimMrs. Kazi Shaswoti IslamMr. Md. Lotifur RahmanMs. Kaniz Farhana YasminMr. Mohammad Al MamunMr. Md. Ziaul HuqMr. Abdur RahmanMr. Md. Khalilur Rahman
Pubali Bank Limited Annual Report 2014
€ PUBALI BANK LIMITEDO O
%“'““‘\ Registered Office26, Dilkusha Commercial Area, Dhaka-1000, Bangladesh
Notice of the 32"“ (Thirty second) AGM of Pubali Bank LimitedNotice is hereby given that the 32"d (Thirty Second) Annual General Meeting (AGM) of Pubali Bank Limited willbe held on 315* March, 2015 at 9:00 a.m. at PSC Convention Hall, Police Staff College, Mirpur-14, Dhaka fortransacting the following businesses:
1. To receive, consider and adopt the Audited Financial Statements for the year ended on 31“ December2014 and Reports of the Directors and Auditors thereon.
2. To declare Dividend for the year ended on 315* December 2014 as recommended by the Board ofDirectors.
3. To re-appoint Auditor(s) ofthe Company for the year 2015 and to fix their remuneration.4. To elect Directors.
All the honourable Shareholders of the Bank are requested to kindly make it convenient to attend the Meeting in time.By order ofthe Board of Directors
Sd/-Md. Sayeed Sikder
Dated: Dhaka General Manager &February 28, 2014 Company Secretary
Notes:a) The "Record Date" of the 32nd Annual General Meeting (AGM) is 10.03.2015.b) The Shareholders whose name would appear in the CDS/Register of Members of the Company on the Record
Date shall be entitled to the dividend and attend the AGM.A member eligible to attend at the Annual General Meeting may appoint a proxy to attend on his/her behalf.Power of Attorney/Proxy forms must be submitted to the Share Department (26, Dilkusha C/A, 3rd floor), HeadOffice, Dhaka of the Company at least 48 (forty eight) hours before the Meeting i.e. 9.00 a.m. on 29.03.2015.Revenue Stamp of Tk.20/- (Taka Twenty) only shall have to be affixed on the proxy form.
d) Shareholders and proxies are requested to record their entry well in time.e) The last date of submission of nomination paper at the Registered Office for election of Directors is 16.03.2015
2)
upto 5.00 p.m. Scrutiny of nomination papers will be completed on 18.03.2015 and the list of eligiblecandidates will be hung at notice board by 4:00 p.m. on 18.03.2015. Last date of withdrawal of nominationpaper is 19.03.2015 upto 5.00 p.m.List of final candidates for election of Directors will be hung in the Notice Board at the Registered Office of theCompany on 19.03.2015 after 5.00 p.m.Election procedures and rules thereto are available at the Registered Office of the Company.
h) The honourable Shareholders may collect Proxy & Nomination forms from the Share Department of the
I<)
Company and also download from Bank's website (www.pubalibangla.com). Attendance slip may becollected from the Bank's Head Office or from the meeting venue.Annual Report and Balance sheet alongwith Directors‘ Report and Audited Financial Statements of the Bank forthe year ended 315* December 2014 will be available at the Bank's website (www.pubalibang|a.com) from 13thMarch, 2015 to till next AGM.Entry is reserved only for the honourable Shareholders and Proxies/Attorneys. Attendance slip (duly signed) must besubmitted to the Registration Counter at the time of entrance. Registration Counter shall be opened at 6:30 a.m.and remain open up to 9:00 a.m.Honorable Shareholders are requested to update Mailing Address, Bank Account no., Branch Routing no.,Signature and other related information of their BO Account before record date.
Payment of Dividend:O Cash Dividend amount will be credited to the respective account ofthe shareholder through BEFTN.
0 No gift or benefit in cash or kind shall be paid/offered to the Shareholders in the 32nd AGM as per BSECDirective No.SEC/CMRRCD/2009-193/154 dated 24.10.2013.
Pubali Bank Limited I Annual Report 2014
V I s I o nIII Providing customer centric life long banking services.
MissionTo be the most respected and preferred brand among all financialservices providers in Bangladesh.
Providing a superior value proposition to the customers by fulfillingtheir financial needs in the fastest and most appropriate way.
To provide world class finance, capital and risk managementproducts bundled with diversity and differentiation, deliveredeconomically through the client's choice of distribution channelrecognizing the unique lifetime financial needs of clients.
To build an empowering organization with the structure, careerdevelopment, training and rewards to ensure the vision is achieved.
Using flexible technology, scale and risk management to ensure ourservices are of superior value.
Pubali Bank Limited Annual Report 2014
Providing appropriate long term returns to our shareholders and to become thenumber one bank of all private commercial banks.
Serve institutions, corporate, businesses and individuals through CustomerRelationship Management (CRM).
Develop innovative and new products recognizing the unique lifetime financial needsof customers.
Delivery of services through all delivery channels like internet banking, IVR andtelephone banking, ATM and POS, mobile banking etc.
Enhancing Corporate Governance for effective interaction between various participantsi.e. shareholders, board of directors, bank's management and taking effective decisionto ensure corporate success and economic growth.
Streamlining risk and compliance for shareholders confidence, better operatingperformance and optimal risk-reward outcomes.
Continuous enrichment of its human assets so that they deliver value to the business.
Strengthening brand image for creating higher customer satisfaction and loyalty.
Adapting latest technologies and responding quickly in fast changing market scenariofor providing uninterrupted services and business continuity, minimizing risks andmoving towards MIS and DSS.
Enhancing financial inclusion efforts for sustained high economic growth anddevelopment
institutionalize CSR.
Pubali Bank Limited Annual Report 2014
Compliance Certificateon Corporate Governance Guidelines
to the Shareholders of Pubali Bank Limited
We have reviewed the compliance of conditions of the Corporate GovernanceGuidelines of the Bangladesh Securities and Exchange Commission ("BSEC") byPubali Bank Limited as stipulated in clause 7(i) of the BSEC notification no.SEC/CMRRCD/2006-158/134/Admin/44 dated August 7, 2012.
The compliance of conditions of the Corporate Governance Guidelines as stated inthe aforesaid notification and reporting of the status of compliance is theresponsibility of the management of the bank. Our review for the purpose ofissuing this certificate was limited to the verification of procedures andimplementations thereof adopted by the bank for ensuring the compliance ofconditions of Corporate Governance Guidelines and proper reporting of compliancestatus on the attached statement on the basis of evidences obtained andrepresentation received thereon from the management of the bank. It is neither anaudit nor expression of opinion on the financial statements of the bank.
To the best of our information and according to the explanations given to us, wecertify that the Bank has complied with the conditions of the CorporateGovernance Guidelines as stipulated in the above mentioned notification datedAugust 7, 2012 of Bangladesh Securities and Exchange Commission.
Zy“f
Md. Amirul Islam FCS FCASenior Partner
DhakaMarch 10, 2015
Pubali Bank Limited Annual Report 2014
Credit Rating
The summary of the up to date credit rating done by the National Credit Ratings Limited (NCR) is presentedbelow:
Credit Rating Report (Surveillance Rating)l Long Term Short Term
ST-1Rating Outstanding AA (Double A) (Strongest capacity)(updated July 13, 2014) (Very Strong Capacity)
Validity of Outstanding Rating l July 12,2015 l July 12, 2015
Outlook of the Company: Stable
NCR has assigned AA (Pronounced Double A) rating of Pubali Bank Limited in the Long Term and ST1 in the ShortTerm. This level of rating indicates very strong capacity for timely payment of financial commitments in bothLong Term and Short Term with very low likeliness to be adversely affected by foreseeable events. The ratingsalso draw strength from improved risk absorption maturity with sound equity base, adequate liquidity in termsof CRR & SLR and reasonable maturity gap. NCR performed the present rating assignment based on the AuditedFinancial Statements of 315T December 2013 and other relevant information. The present rating takes intoaccount, among others, Bank's comfortable capital adequacy, improved asset quality, continued profitability,adequate liquidity and reduction in non-performing assets (NPA) levels to single digit.
Message from the ChairmanDear Shareholders,I would like to take the opportunity to welcome you all, on behalf of the members of the Board of Directors of the bankin the 32"d Annual General Meeting of Pubali Bank Limited. Let me express my heartiest gratitude and thanks for yourcontinued support and co-operation throughout the year, which has always been a great source of our inspiration.Despite a challenging year, Pubali Bank Limited maintained a healthy pace of growth in 2014. It is my pleasure to informyou that Pubali Bank Limited has earned an operating profit of TK.708.14 crore inspite of intensified competition in thebanking sector amid the economic challenges. The bank's deposit has reached to TK.19,309.02 crore which is 8.55%higher than the previous year. Total advances of the bank is TK.14,997.45 crore, 9.52% higher than the previous year.During the year the bank handled import business worth TK. 9751.69 crore and export business worth TK. 7707.13 crore.The Board of Directors is committed to establish the highest standards of corporate governance such as integrity,transparency, accountability and responsible business conduct to safeguard the interests of its shareholders andstakeholders. Every year we are increasing our branch network with modern technology to provide better customerservices to our clients. Right now Pubali Bank Limited has the largest network of real time online banking in Bangladesh.Hence we have opened eleven (11) new branches in the country this year and at present we are the largest privatecommercial bank having 434 branches all over the country. Our all branches are equipped with real time online bankingfacilities. Simultaneously, in its move towards modern and technology based banking, Pubali Bank Limited iscontinuously striving for full automated banking.I am glad to inform you that Pubali Bank Limited has received the ‘Certificate of Merit‘ award of ICMAB Best CorporateAward 2013 in private commercial bank (Traditional Operation) category. The bank has also received the FinancialBranding Award by Centre for Non-Resident Bangladeshis (NRB) for its outstanding contribution to the Financial Brandingof Bangladesh abroad. The bank has also introduced SMS based banking services for the customers this year.I would like to extend sincerest thanks to our valued shareholders, customers, clients, well-wishers for their continuoussupport and inspiration. My deepest gratitude goes to our regulators especially Bangladesh Bank, Bangladesh Securitiesand Exchange Commission, Dhaka Stock Exchange Limited, Chittagong Stock Exchange Limited and Registrar of JointStock Companies and Firms for their prudent guidance and advice.
With best regards
L‘ll%(Hafiz Ahmed Mazumder)Chairman
I * '1"
__.“’\.;-0
1?“ ST '“ -‘_ __ _,,/.Q\ F5-77 4 I4-
,--
VI
Report of Managing Director & CEODear respected Shareholders,It is a great honour and privilege to welcome you all at the 32nd Annual General Meeting of Pubali Bank Limited.I am happy to inform you that Pubali Bank Limited maintained a healthy pace of growth in 2014. in this year ouroperating profit was TK.708.14 crore inspite of all the adversities in the banking sector. Throughout the year PubaliBank Limited has been able to maintain its substantial progress. The bank's deposit has reached to TK.19,309.02crore which is 8.55% higher than the previous year. Total advances of the bank is TK.14,997.45 crore, 9.52% higherthan the previous year. During the year the bank handled import business worth TK. 9751.69 crore and exportbusiness worth TK. 7707.13 crore.We continued our contribution to the economy of Bangladesh in 2014. While pursuing our own growth strategy, wehave focused on those sectors that in particular will contribute to our country's sustainable growth. When providingfunding support, we prioritized those industries that will provide competitiveness to the country in internationaltrade, attract foreign currency into the economy and contribute to new employment opportunities.We always try to provide the best quality services to our customers. This year we have opened eleven (11) morenew branches all over the country. Right now we are the largest private commercial bank having 434 branches allover the country. Simultaneously, in its move towards modern and technology based banking, Pubali Bank Limited iscontinuously striving for full digital and automation banking. This year SMS based banking service was alsointroduced by us.Pubali Bank Limited is working with great motivation and energy to lead the bank to new spectrum that will serve asan example for the Bangladeshi banking industry. Our greatest asset on this journey is our employees. I reallyappreciate them, the pillar of our success against all kinds of challenges. I am also thankful to the Board of Directorsfor their visionary role and guidance.I would like to convey my sincere thanks and gratitude to the regulators i.e. Bangladesh Bank, Bangladesh Securitiesand Exchange Commission, Dhaka Stock Exchange Limited, Chittagong Stock Exchange Limited, Registrar of JointStock Companies and Firms and Central Depository of Bangladesh Limited for their guidance and co-operation.
With warm regards
(Md. Abdul Halim Chowdhury)Managing Director & CEO (Current Charge)
LI
Pubali Bank Limited Annual Report 2014
Directors‘ Report on Financial Statements and Internal Control
Dear Shareholders,Assalamualaikum,
The Directors of the Bank are required to present the Annual Report together with Directors‘ Report andthe Financial Statements in accordance with Companies Act 1994, Rules and Regulations of BangladeshBank, Bangladesh Securities and Exchange Commission (BSEC) Rules, 1987 and Rules and Regulations ofInstitute of Chartered Accountants of Bangladesh (ICAB) and Listing Rules of the Dhaka Stock ExchangeLtd. and Chittagong Stock Exchange Ltd.In compliance with the requirements of the BSEC‘s notification, the Directors are also required to declarethe following matters in their report which inter alia includes as under:0 The financial statements prepared by the management of the issuer company present fairly its state
of affairs, the result of its operations, cash flows and changes in equity;0 Proper books of account of the issuer company have been maintained;0 Appropriate accounting policies have been maintained;0 Appropriate accounting policies have been consistently applied in preparation of the financial
statements and the accounting estimates are based on reasonable and prudent judgement;0 International Accounting Standards, as applicable in Bangladesh, have been followed in preparation of
financial statements with appropriate disclosures;0 The system if internal control is sound in design and has been effectively implemented and monitored;0 There are no significant doubts upon the issuer company's ability to continue as a going concern. If the
issuer company is not considered to be a going concern, the fact along with reasons there should bedisclosed;
0 Significant deviations from last year in operating results of the issuer company should be highlightedand reasons thereof should be explained;
0 Key operating and financial data of at least preceding three years should be summarized;0 if the issuer company has not declared dividend (cash or stock) for the year, the reason thereof
should be given;The Directors of the Bank confirm that Annual Report together with the Directors‘ Report and FinancialStatements have been prepared in compliance with law, rules and regulatory guidelines and Complianceof BSEC Notification No. SEC/CMRRCD/2006-158/Admin/02-08 dated 20"‘ February 2006.
MeetingsThe Board meets regularly to sanction loans and to review policies, procedures, risk management andbusiness plan of the Bank and appoints MD & CEO and Senior Management etc. During the year 2014, 51meetings of the Board were held.
On behalf of the Board of Directors
fll¥@>(Hafiz Ahmed Mazumder)Chairman
Pubali Bank Limited Annual Report 2014
Bangladesh Economy in 2014 - OverviewThe overall Socio-political environment of the country was largely calm, with variation of small - scalestrikes and demonstrations. This congenial situation helped the economy of Bangladesh operate almostsmoothly in 2014 and macroeconomic stability was by and large maintained.
Inflation was in control, driven in part by favourable international price trends complimented by conducivemonetary policy framework.
Agricultural growth followed its normal path, aided by benign weather, reasonably smooth functioning ofagricultural input markets and improved farm get prices.
A significant increase in the overall balance of payments surplus boosted official foreign exchange reservesas the Bangladesh Bank intervened to prevent a large appreciation of the nominal exchange rate.
The current account surplus turned into a deficit later in the year, as imports surged and exports stutteredas its main purview the garment industry, went through a transitional phase.
The exchange rate depreciated only slightly as the central bank began to sell dollars for the first time in lastthree years.
The monetary Policy continued to be a source of strength for the economy, accompanied with shortfalls infavourable Macro-Micro prudential regulation.
But much improvement was not reflected in areas of revenue generation, implementation of annualdevelopment program and public-private partnership, all of which could have paved the way for highergrowth.
About the banking sector, it received stress throughout the year, which reflects the lingering impact of aseries of financial scams and resultant loan defaults in state - owned commercial banks. Overall financialsector remained shaky because of limited actions to improve corporate governance and accountability. Thesector remains vulnerable to shocks and economic slowdown. The absence of tangible private sector creditgrowth and the subdued domestic demand prevailed round the year.
In the monetary and financial sector, domestic credit grew at 11.3 percent in November 2014 (Public 6.1percent and private 12.7 percent) although reserve money grew at 14.3 percent correspondingly. Theaverage lending rate slightly slid down to 12.5 percent while inflation has hovered around 7 percent. Theaverage deposit rate was above 8 percent and spread was close to 5 percent. Loans to SME have increasedby 15.67 percent at the end of September over the same period a year earlier.
Broad money, domestic credit, credit to the public sector and credit to the private sector recorded 12.8percent, 11.3 percent, 6.1 percent and 12.7 percent growth at the end of November 2014 respectively. Callmoney rates have declined since their peaks in early 2012. Call money rates moved around 6.5 - 7.9percent except some seasonal rise. Domestic lending rates fell due to lower cost of funds for banks, lowerdemand for credit as well as due to increasing competition from overseas lenders whose lending rates arein single digit.
The amount of classified loans in the country's banking system recorded a sharp decline in the final quarterof the calendar 2014 following rescheduling, write-off and recovery. In 31$t December, 2013 total NPL(Non-Performing Loan) was TK. 40,583 crore and in 315i December, 2014 total NPL stood at TK.50,156crore, increased 29.59%. But overall country rate of NPL reduced to 9.69% from 11.60% at the end ofDecember, 2014.
Nearly nine million Bangladeshi overseas nationals in 2014 remitted $14.92 billion, marking a 7.91 percentgrowth over that of the previous year. A relative stable domestic political situation and stable exchangerate of Taka (BDT) against the US dollar also helped the remittance growth.
Financial sectors of Bangladesh are involved in promotion of inclusive, environmentally sustainableeconomic activities, within the monetary growth with cautious & restrained monetary programs consistent
Pubali Bank Limited Annual Report 2014
with price and macroeconomic stability, which has assisted Bangladesh economy to keep up six pluspercent annual average real GDP growth for all over a decade now amid prolonged global growthslowdown. Growth has averaged 6.2 percent over the last five years. Single digit CPI inflation has stabilizedin a steadily downward trend. Declining lending interest rates accompanied with rising foreign exchangereserves and Taka exchange rate stability is enhancing friendliness of the domestic economic scene.
Imports have recovered from sluggishness of the past couple of years; current account balance of Paymenthas turned around from surplus to deficit. Import picked up in capital machinery and production inputs.
The sectoral growth figures showed upward trend in 2014 for all three sectors: agriculture, industry andservices. Government net borrowing from the banking system was significantly lower than projected. Therelatively low borrowing levels partly relates to the slower pace of ADP implementation. Another factorbehind the low levels of borrowing from the banking sector was the fact that revenue from the sales ofNational Savings Certificates rose sharply as the differential between their returns and that of bank fixeddeposit rates has increased.
Export receipts boosted up in December 2014 by 17.65% over the previous month, recording 1.56% growthin July-December 2014 (offsetting the negative growth up to October) compared to the same period of theprevious year.
Import payments based on shipment data boosted up by 16.64% during July-November 2014 over thecorresponding period of the previous year. Import L/C opening data rose by 14.77% during July -November.
Remittance growth started gaining in the second half of FY 2014 became negative of 1.6% against largergrowth of 12.6% in FY 2013 though this growth did faster to 5.6% during the second half of the yearcompared to the corresponding period of FY 2013.
The banks were heavily overburden with excess liquidity mainly because of poor investment, lower creditgrowth and non-expansion of businesses which is a cumulative result of several months‘ long politicalunrest, uncertainty, very unpredictable law and order situation, high bank interest rate, coupled with lowinfrastructural facilities, corruption in different sectors etc.
It is to note that some big businesses are borrowing money in the form of foreign currency loan fromoutside the country at a lower rate. They previously used to get the money from the local banks. It is also apressure of low credit demand to the local bank.
Meanwhile, the size of buyers‘ and suppliers‘ credit has become equivalent to one month's Import Bill Sizeof Bangladesh, which has raised a sense of concern among the regulators, especially to Bangladesh Bank.This liability will have to be paid in foreign currency.
In 2011-12 financial year suppliers‘ credit size was USS 104 crore. In 2012-13 it has rose to USS 182 crore.In one difference, foreign credit size of local entrepreneurs / businesses has grown for 43% while localprivate sectors credit taking has expanded only 10%.
The central bank has imposed a restriction on short-term buyers‘ and suppliers‘ credits from overseassources for import to minimize repayment risks.
If the import value exceeds $0.5 million or the loan tenure is more than six months, under the restriction,the payment will have to be made on a quarterly basis. This restriction has been imposed on all externalshort-term buyers‘ credit arrangement to minimize repayment risks and ensure discipline.
Bangladesh Bank raised the CRR rate from 6 percent to 6.5 percent with effect from 24.06.2014 to tamethe inflation through coffering the excess liquidity of the scheduled banks of the country. At present all thescheduled banks are running with excess liquidity due to sluggish trend in private investment sector.
Allocation to the export development fund (EDF) has been raised by 25 percent to USS 1.5 billion to meet agrowing demand from the exporters. Rising foreign exchange reserve prompts the fund hike. The centralbank has enhanced the allocation to the EDF scheme aiming to facilitate the country's exporters instrengthening their business activities.
Pubali Bank Limited Annual Report 2014
The central bank purchased a record amount of S 5.15 billion from the commercial banks directly in thejust concluded fiscal year 2013-14 to keep the inter- bank foreign exchange market stable. The amount wasthe highest in the last 10 years followed by S 4.54 billion in fiscal year 2013. The Bangladesh bank boughtthe US currency in last two consecutive fiscal years but did not sell any single US dollar in the market.
Country's stock exchanges have been hooked onto a wide-cast tax net as the bourse would have to paytaxes on their annual incomes from next fiscal year (2014-15), after enjoying waiver facility thus far. DSE,CSE to pay 20pc tax on income from next year (2014-15).
Inward remittances suffered negative growth for the first time in 13 years (2000-2001 to 2013-2014),mainly due to shrinking outflow of migrant workers and falling receipts from Middle Eastern nations.Bangladesh received S14.23 billion in remittances in 2013-14, down 1.6 percent from a year ago, accordingto data of Bangladesh Bank.
Bangladesh Bank has allowed to operate Agency Banking Services for local two banks. This is first in kind inBangladesh. Instead of opening new branch, through Agency services of the Agents the bank will providealmost every kind of banking services to the people, especially remote area and rural folks will be betterserved through this agent banking system, it is widely expected. The services of Agent Banking will rangefrom Deposit taking to loan giving and providing of utility services to the customers. This type of AgentBanking services are now being practiced in many countries of Latin America and African continents. InAsia, Agent banking System has got momentum & popularity in Indonesia, Sri Lanka and Pakistan.
The capital base of the banking sector widened 10.51 percent to Tk. 71,754 crore in the fourth quarter lastyear from a quarter ago.In the third quarter of July-September, it was Tk. 64,933 crore, according to datafrom the central bank.Bangladesh Bank said the capital base of the banking sector has expanded vastly inthe last five years.
As per international standards, a capital adequacy ratio (CAR) of 10 percent is required, but the CAR ofBangladeshi banks stood at 11.35 percent at the end of December, which was 10.57 percent three monthsearlier. In December, banks had a surplus capital of Tk. 4,069 crore, reversing from a deficit of Tk. 1,096crore in September. Despite global recession, the banking sector's capital base is steadily becoming strong,the central bank said.
In 2008, the banking sector's total capital was Tk. 20,578 crore under Basel-I standards. It went up by astaggering 249 percent or Tk. 51,176 crore at the end of last year.
The central bank said Bangladesh has fully implemented Basel-II in order to strengthen the capital base oflocal banks in line with the international standards. Starting 2015, banks are preparing to maintain thecapital requirement under Basel-III. BASEL-III is a global, voluntary regulatory standard on bank capitaladequacy, stress testing and market liquidity risk.
Global Economy
It is found that economy of Russia is severely hit by global power politics. The Russian Ruble lost onethird of its value to a Dollar. Inflation rate shot up to the sky and commodity price gone up and manyconsumer items became dearer. Due to sanctions Russian banks are failing to raise any fund from thedeveloped world and high interest rate discards of getting any home impetus to boost up the economyby itself. It tolls high on the growth and development of Russian economy.
The growth engine of China economy has slowed down and export oriented markets showed shakyattitudes, especially European markets, Japan market & other major buyers of China goods & productshave reduced their buying demand. To cope up with the changing situation and to keep balance ofgrowth, China has reduced Bank's interest rate substantially on 21.11.2014. In the calendar year 2014economy of China was beset with numerous multi facets problems. China economy faced lashing ofwhirl back winds. Stresses felt from developed infrastructure sector to new model of developmentincluding service sector to consumers of China in the year 2014. Due to global recession and act of
Pubali Bank Limited Annual Report 2014
vicious circle of economy and market competition has pulled down the advance & growth of economy.
The overall trade surplus for 65 billion US Dollar in 2014 of China economy apparently seems favourablebut total export growth fell 1% and import growth fell substantially of China at the end of 2014.
This is for the first time in last 10 years US economy has shown remarkable growth of GDP at rate of 5%in 3rdQ and continued this positive trend till the end of 2014. It was happened due to increase ofpurchasing power of the consumers and healthy growth of investment in the domestic economy. As aresult index of share market shot up and consumers were in buying mood at the end of the year.
At the end of the year, the Euro zone was close to the recession. its economy grew by a modest 0.2% inthe third quarter and risks sliding into deflation. The Euro zone's three biggest economies sawmanufacturing activity decline in November.
The new threat is a lack of growth and stubbornly high unemployment. There is a growing consensusthat without economic recovery the debt burden will become unsustainable again. So, Europe haschanged its priorities. No longer is the emphasis on reducing deficits. Italy and France have been shownsome flexibility over breaking EU budget rules.
Greece, which had for so long been the epicenter of the crisis, returned to rattle markets. its economyshrank by 25%, which is unprecedented in the modern era in Europe. But in 2014 it found growth of0.7% and even managed a budgetary surplus. Unemployment edged down to 25.7%.
Japan emerged from recession in the fourth quarter of 2014, but at a pace well below expectations asthe economy struggles to gain momentum. Japan's economy grew at an annualized pace of 2.2 percentin the fourth quarter of 2014.
In 2014 Australian economy grew 2%. But the overall economy position of Australia facing sluggishgrowth in its mine industries due to less demand from China.
The price of crude oil experienced ever low in last five years. The price of the crude oil had slid to 50%around US dollar S52 at the end of the December 2014. This sharp fall of oil price, Economists aroundthe world marked as weak recovery of global economy and less demand of industrial products. Theremarkable fall of crude oil price badly hit the economies of oil exporting countries across thecontinents. The country like Venezuela, Brazil in Latin America, Nigeria in North Africa and Iran in Asiafelt the major brunt of falling oil price.
Like the BRICS another acronym came into being in the global economic arena, it is called MlNTs. Thecountries are Mexico, Indonesia, Nigeria and Turkey. Economists have identified these four nations asnext potential power houses of the world economy. Their economy is growing remarkably for the lastfew years. But in 2014 MINTs nations have experienced mixed growth performances due to slump incrude oil price from the second half of 2014. Their domestic demand for consumer goods hasdecreased. Their export items, basically industrial raw materials (various mineral items) and exportearning of crude oil performed beyond expectation and as a result income reduced sharply.
Corporate Governance:
Pubali bank is a 100% indigenously operating largest private commercial bank in Bangladesh. MeanwhilePubali Bank Limited has taken effective measures to implement Corporate Governance. CorporateGovernance is echoed with the good governance. Pubali Bank has ensured basic four columns of goodgovernance i.e. Accountability, Transparency, Predictability & Balancing the Extreme through utilizationof available resources and day to day decision making in conformity with instructions of regulatorybodies.
Pubali Bank Limited Annual Report 2014
Board Structure
The Board of Directors consists of 15 Members including 02(two) Independent Directors and ManagingDirector, mainly directs on policy formulation and monitoring of its guidelines. The Board has followingSupporting Committees:
Executive Committee: The Executive Committee is comprised of 5 Board Members and they takedecision on emergency matters as and when required relating to Bank's business etc. subject toratification by the full Board. In 2014 the committee conducted 3 (three) Meetings.
Audit Committee: The Audit committee is formed with 5 members of the Board of Directors. The AuditCommittee peruses and evaluates all the Audit Reports of all Branches of the Bank (Audit & Inspectionreports of internal team & Bangladesh Bank). The committee assists the Board of Directors in ensuringthat the financial statements reflect true and fair view of the state of affairs of the company andensuring a congenial working method in the bank as per guidelines of the Regulators. In 2014 thecommittee conducted 22 (twenty two) Meetings.
Risk Management Committee: The Risk Management Committee is constituted with 5 members of theBoard of Directors in comply with the Bangladesh Bank's BRPD circular no.11 dated 27 October 2013.The Risk Management Committee peruses, analyzes, sorts out the risk and formulates the appropriatepolicy to reduce the risks. Such as Credit risk, Foreign exchange operation risk, Internal Control &Compliance risk, Money laundering risk, Information & Communication Technology risk, Operationalrisk, Interest risk, liquidity risk etc. and makes necessary capital reservation & provisioning against theabove risks. The committee conducted 4(four) meetings this year.
Financial Management
The Annual budget and the statutory financial statements are prepared with the approval of the Board.The Board regularly monitors and reviews bank's liquidity, income, expenditures, non-performing loans,loss provisions and steps taken for recovery of defaulted loans including legal means.
Management Structure
The management headed by Managing Director and CEO is assisted by Deputy Managing Director, 18General Managers alongwith head of Islamic Banking Wing and Chief of Board's Audit Cell to run thebusiness. The workflows are carried out by the relevant divisions/department/regionaloffices/branches of the Bank. The following committees also assist the management:
i) Management Committee (MANCOM): The MANCOM is comprised of senior Management membersand headed by Managing Director & CEO meets monthly to discuss relevant agenda and takeappropriate actions for running the Bank smoothly.
ii) Asset Liability Management Committee (ALCO): Asset Liability Management Committee headed bythe Managing Director and Management Members, meets monthly to discuss relevant agenda andtake appropriate actions for running the bank smoothly. CEO is responsible for Balance Sheet RiskManagement. The results of Balance Sheet analysis along with recommendation are placed in ALCOmeeting where important decisions are made to minimize risk and to maximize returns.
iii) Credit Committee: Headed by the Deputy Managing Director, the Credit Committee evaluates creditproposals and recommends for approval and/or otherwise.
iv) Task Force Committee for Recovery of Classified Loans: A task Force Committee for recovery ofclassified loans is constituted in the Head Office of the Bank with the Chairmanship of ManagingDirector and CEO. The other Members are Deputy Managing Director, Head of Audit Division andinformation Technology Division, General Managers and Deputy General Managers of creditAdministration, Monitoring and Recovery Division, Credit Division, CLS Division, Lease FinancingDivision and Law Division. The committee holds meeting at Head Office in every two months toevaluate the recovery position and formulate measures/steps for better recovery and preventing
v)
vi)
vii)
viii)
Pubali Bank Limited Annual Report 2014
further classification of loans. Stress is given on proper follow up and Monitoring of loan A/Cs. Thecommittee also extends discussion meetings with the borrowers at field level time to time to arriveat settlement of Bad loans under BRPD guidelines.
Risk Management Unit: Banking business is a risky business. The risk of the Bank may be defined asthe possibility of losses, financial or otherwise. The risk management of the Bank covers 06 corerisks i.e. Credit Risk, internal Control & Compliance Risk, Money Laundering Risk, Asset LiabilityManagement Risk (Balance Sheet Risk), Foreign Exchange Risk and Information Technology Risk.Moreover, Operational Risk, Market Risk, Liquidity Risk, Residual Risk, Reputation Risk, StrategicRisk, Settlement Risk and Environmental & Climate Change Risk are also brought into consideration.A separate Risk Management Unit (RMU) has been formed headed by Deputy Managing Directorwhere all the General Managers & Division Heads of Head Office are the members and the DivisionHead of Internal Control and Compliance Division is the member secretary. The Committee isresponsible to our Honorable Managing Director for compliance and implementation of thedecisions. Monthly meeting of Risk Management Unit is arranged on regular basis where differentrisks are discussed and decisions are gradually implemented. Minutes of Risk Management Unitmeeting along with risk management papers are submitted to Bangladesh Bank on quarterly basis.
Management Reporting System Committee: Management Reporting System Committee was formedheaded by Deputy Managing Director. In the meeting of Management Reporting SystemCommittee, Bank's MIS affairs are discussed and decisions are gradually implemented. TheCommittee is responsible to Honorable Managing Director for implementation of the decisions.Automated system collect and to ensure updated data has been developed & deployed to differentdivisions of our Bank. Our Credit Administration, Monitoring & Recovery Division is now gettingaccess to status of the loan, customer registration information, account opening information,expired loan etc. All other divisions of Head Office can now monitor different concerned affairs ofthe branches. Day by day, the system/MIS will be strengthened further to meet all kinds ofrequirements.
Central Compliance Unit: To prevent money laundering & combat terrorist financing, a CentralCompliance Unit headed by a Chief Anti-Money Laundering Compliance Officer (CAMLCO) wasformed. The unit is liable for regulatory compliance related to money laundering, terrorist financing,KYC, Cash Transaction Reporting (CTR), Suspicious Transaction Reporting (STR), and Account &Transaction Monitoring. The unit also faces Bangladesh Bank's inspection in this regard at our HeadOffice and branch level. Before establishing correspondent banking relationship with anybank/financial institution/exchange company, the unit evaluates the money laundering & terroristfinancing prevention status of that institution. Every year Bangladesh Bank instructs to arrange leadbank workshop and regional Conference in different districts. The unit arranges workshop andconference accordingly. Management of our Bank approves an outreach training calendar on moneylaundering & terrorist financing every year. The unit imparts training according to the outreachtraining calendar. So far 38 AML circulars received from Bangladesh Bank have been dispatched tothe branches and regional offices for compliance. More over the unit has issued severalcirculars/circular letters on this issue. As per Bangladesh Bank's AML circular no. 15 dated 24 March,2008, a half yearly summary report on Self-assessment and Independent Testing Procedure of thebranches are prepared and the same is placed before the Management and submitted toBangladesh Bank. Monthly meeting of Central Compliance unit is arranged regularly and thedecisions are gradually implemented.
Ethical Committee: In the present stage of globalization, ethical issue in banking sector is assumedgreat importance. More over behavioral norms of bank officials and loan takers are to be broughtinto consideration since the banks deal with the deposits of countless customers. If the interests ofthe depositors are in a vulnerable position, it may bring the economy to a halt. Considering theimportance of the issue and as per instruction of Bangladesh Bank, an Ethical Committee has beenformed headed by Deputy Managing Director where all the General Managers & Division Heads ofHead Office are the members and the Division Head of Internal Control & Compliance Division is the
Pubali Bank Limited Annual Report 2014
Member Secretary and Focal Point Officer. The Committee is responsible to our HonorableManaging Director for implementation of the decisions. Monthly meeting of Ethical Committee isarranged on regular basis and decisions are gradually implemented.
Code of Ethics/Policy of Business ConductThe Bank instituted “Service Rules“ since the inception of the bank in 1959. The Bank has formulateddifferent policies including Credit Policy, Purchase Policy and Rules, Finance and Accounting Policy,Foreign Exchange Risk Management Policy, Internal Control & Compliance Policy, Anti-moneylaundering policy and IT Manual/guideline. All these policies are followed and supervised on the basisof own manual & guidelines of each encompassed field/Division.
Internal Control System and Appropriate Accounting PoliciesThe sound system of Internal Control has been designed and has been efficiently practiced,implemented and monitored through continuous reviewing and vigilant monitoring Internal Control &Compliances are ensured. Appropriate Accounting Policies have been consistently applied inpreparation of the financial statements. Bangladesh Accounting Standard and international AccountingStandards, as applicable in Bangladesh have been followed and adequately disclosed.
Lending to Directors, Controlling Shareholders or EmployeesNo lending has been made to the Directors/Controlling Shareholders of the Bank. However, theemployees of the bank are entitled to House Building Loan, Consumer Loan, Car Loan, Consumer CreditScheme and Provident Fund Loan at arm's length basis.
Key Financials Information: Ref. to Page No.55.
RElEi’EECl party disclosures: Ref. to Notes No. 14.7 at Page No. 119.
Percentage of Shareholdings: Ref. to Notes No. 14.7.1 at Page No.119.
Bangladesh Bank Guidelines for Corporate Governance: Our Compliance StatusTo ensure good governance i.e. Corporate Governance in bank management, Bangladesh Bank (CentralBank of Bangladesh) issued a circular (BRPD Circular No. 06 dated 04 February 2010) which replacedearlier two circulars (BRPD circular No.03 dated 19 February 2002 & BRPD circular No.16 dated 24 July2003). These guidelines were aimed to provide a clear segregation of authority and responsibilitiesbetween the CEO, The Chairman of the Board and the Board of Directors in the overall functioning ofthe bank.
The details of the Bangladesh Bank guidelines and Pubali Bank Ltd.‘s compliance thereto are presentedbelow:
Particulars Compliance StatusSI No.
1 Responsibilities and authorities of the Board of Directors:(a) Work planning and strategic management:(i) The Board shall determine the objectives and goals and to this endshall chalk out strategies and work plans on annual basis. It shallspecially engage itself in the affairs of making strategies consistent withthe determined objectives and goals and in the issues relating tostructural change and reorganization for enhancement of institutionalefficiency and other relevant policy matters. It shall analyze/monitor atquarterly rests the development of implementation of work plans.
Complied. Board formulates strategies,policies and set targets for thecorporate management. Managementputs best efforts in implementing thestrategies to achieve set goals.
Pubali Bank Limited Annual Report 2014
SI No. Particulars Com pliance Status
(ii) The Board shall have its analytical review incorporated in the AnnualReport as regard the success/failure in achieving the business and othertargets as set out in its annual work plan and shall apprise theshareholders of its opinions/recommendations on future plans andstrategies. It shall set the Key Performance Indicators (KPIs) for the CEOand the other senior executives and have it evaluated at times.
Complied
(b) Loan and Risk Management:(i) The policies, procedures, strategies, etc. in respect of appraisal ofloan/investment proposal, sanction, disbursement, recovery, re-scheduling and Write-off thereof shall be made with the Board'sapproval under the purview of the existing laws, rules and regulations.The Board shall specifically distribute the power of sanction ofloan/investment and such distribution should desirably be made amongthe CEO and his subordinate executives as much as possible. Nodirector, however, shall interfere, directly or indirectly, into the processof loan approval.
Complied
(ii) The Board shall frame policies for risk management and get themcomplied with and shall monitor at quarterly rests the compliancethereof.
Complied
(c) Internal Control Management:The Board shall be vigilant on the internal control system of the bank inorder to attain and maintain satisfactory health or grade of itsloan/investment portfolio. It shall review at quarterly rests the reportssubmitted by its audit committee regarding the compliance ofrecommendations made in internal and external audit reports and theBangladesh Bank inspection reports.
Complied
(d) Human Resources Management and Development:(i) Policies relating to recruitment, promotion, transfer, disciplinary andpunitive measures, human resources development etc. and servicerules shall be framed and approved by the Board. The chairman or thedirectors shall in no way involve themselves and interfere into orinfluence over any administrative affairs including recruitment,promotion, transfer and disciplinary measures as executed under theset service rules. No member of the Board of directors shall be includedin the selection committees for recruitment and promotion to differentlevels. Recruitment and promotion to the immediate two tiers belowthe CEO shall, however, rest upon the Board. Such recruitment andpromotion shall have to be carried out complying with the service rulesi.e., policies for recruitment and promotion.
Complied. Pubali Bank Limited Boardapproves Human Resource policy fromtime to time which guides all actions ordecisions related to HR of Pubali BankLimited
(ii) The Board shall focus its special attention to the development ofskills of bank's staff in different fields of its business activities includingprudent appraisal of loan/investment proposals and to the adoption ofmodern electronic and information technologies and the introductionof effective Management Information System (MIS). The Board shall getthese programs incorporated in its annual work plan.
Complied
(e) Financial Management:(i) The annual budget and the statutory financial statements shall finallybe prepared with the approval of the Board. it shall at quarterly restsreview/monitor the positions in respect of bank's income, expenditure,liquidity, non-performing assets, capital base and adequacy,maintenance of loan loss provision and steps taken for recovery ofdefaulted loans including legal measures.
Complied
Pubali Bank Limited Annual Report 2014
SI No. Particulars Com pliance Status
(ii) The Board shall frame the policies and procedures for bank'spurchase and procurement activities and shall accordingly approve thedistribution of power for making such expenditures. The maximumpossible delegation of such power shall rest on the CEO and hissubordinates. The decision on matters relating to infrastructuredevelopment and purchase of land, building, vehicles, etc. for thepurpose of bank's business shall, however, be adopted with theapproval of the Board.
Complied. Pubali Bank Limited Boardapproves the amendments from time totime as required to the approved‘Procurement and Disposal Policy’.
(f) Formation of Supporting Committees:For decision on urgent matters and executive committee, whatevername called, may be formed with the directors. There shall be nocommittee or sub-committee of the Board other than the executivecommittee and the audit committee. No alternate director shall beincluded in these committees.
Complied.
(g) Appointment of CEO:The Board shall appoint a competent CEO for the bank with theapproval of the Bangladesh Bank.
Complied
(h) The Board shall ensure fulfilling any other responsibility (ies)appropriately assigned by the central bank (Bangladesh Bank).
Complied
2 Responsibilities of the Chairman of Board of Directors:(a) As the chairman of the Board of directors (or chairman of anycommittee formed by the Board or any director) does not personallypossess the jurisdiction to apply policy making or executive authority,he/she shall not participate in or interfere into the administrative oroperational and routine affairs of the bank.
Complied
(b) The chairman may conduct on-site inspection of any bank branch orfinancing activities under the purview of the oversight responsibilitiesof the Board. He may call for any information relating to bank'soperation or ask for investigation into any such affairs; he may submitsuch information or investigation report to the meeting of the Board orthe executive committee and if deemed necessary, with the approval ofthe Board, he shall effect necessary action thereon in accordance withthe set rules through the CEO. However any complaint against the CEOshall have to be apprised to Bangladesh Bank through the Board alongwith the statement of the CEO.
Complied
(c) The chairman may be offered an office room, a personalsecretary/assistant, a telephone at the office and a vehicle in thebusiness interest of the bank subject to the approval of the Board.
Complied
3 Responsibilities of the Adviser:The adviser, whatever name called, shall advise the Board of directorsor the CEO only on such issues for which he/she is engaged in terms ofthe conditions of his/her appointment. He shall neither have access tothe process of decision making nor shall have the scope of effectingexecutive authority in any matters of the bank including financial,administrative or operational affairs.
No such adviser at Pubali Bank Limited
4 Responsibilities and authorities of CEO:The CEO of the bank, whatever name called, shall discharge theresponsibilities and effect the authorities as follows:
Pubali Bank Limited Annual Report 2014
SI No. Particulars Com pliance Status
(a) In terms of financial, business and administrative authorities vestedupon him by the Board, the CEO shall discharge his own responsibilities.He/she shall remain accountable for achievement of financial and otherbusiness targets by means of business plan, efficient implementationthereof and prudent administrative and financial management.
Complied
(b) The CEO shall ensure compliance of the Bank Companies Act, 1991and/or other relevant laws and regulations in discharge of routinefunctions of the bank.
Complied
(c) The CEO shall include clearly and violation from Bank Companies Act1991 and/or any other related laws/regulations in the ‘memo’presented to the meeting of the Board or any other committee(s)engaged by the Board.
Complied
(d) The CEO shall report to Bangladesh Bank of issues in violation of theBank Companies Act, 1991 or of other laws/regulations and, if required,may apprise the Board post facto.
Complied
(e) The recruitment and promotion of all staff of the bank except thosein the two tiers below him/her shall rest on the CEO. He/she shall act insuch cases in accordance with the approved service rules on the basisof the human resources policy and approved delegation of employeesas approved by the Board. The Board or the chairman of any committeeof the Board or any director shall not get involved of interfere into suchaffairs. The authority relating to transfer of and disciplinary measuresagainst the staff, except those at one tier below the CEO, shall rest onhim/her, which he/she shall apply in accordance with the approvedservice rules. Besides, under the purview of the human resources policyas approved by the Board, he/she shall nominate officers for trainingetc.
Complied
5 Meetings of the Board of Directors:One meeting of the Board of Directors per month can be held usuallybut it can be more than one upon necessity. No less than one meetingof the Board in three months to be held.
Complied. Usually Pubali Bank Limitedholds four Board Meetings in a month.
6 Number of members of Executive Committee (EC) of the Board:Number of members of the EC cannot exceed 7 members as per BBBRPD Circular Letter No. 2 dated 15 February 2010 and more than onemember from one family shall not be included in the EC as per BBCircular Letter No.4 dated 14 March 2010.
Complied. Pubali Bank Limited has 6members EC of the Board.
7 Training of the Directors:The directors of the Board will acquire appropriate knowledge of theBanking Laws and other relevant laws, rules and regulations toeffectively discharge the responsibilities as a director of the bank.
Complied
PubaHBankLunHed AnnualReport2014
H. Compliance with BSEC Conditions:Status of compliance with the conditions imposed by the Commission's Notification No. SEC/CMRRCD/2006-158/129/Admin/43 dated 07 August 2012 issued under section 2CC of the Securities and ExchangeOrdinance, 1969:
ConditionNo.
Compliance status(Putv/inthe
Title appropriate column) RemarksComplied Not
(If any)
1.0 Board of Directors:
1.1 Board Size: Board members shall not beless than 5(five) and more than 20(Twenty)
1.2 Independent Directors:
t2(n Independent Director: At least 1/5'“ According to BankCompany Act, 1991(amended 22 July,2013) Sec: 15(9), If thenumber of Director's isless than 20(twenty)then no. of IndependentDirector(s) shall be2(tvvo) in case of BankCompany.
1200 For the purpose of this clause “ independentdirector” means a director
tzuna) Independent Directors do not hold any shareor hold less than one percent (1%) shares oftotal paid up capital.
tzunb) Independent Directors are not connected withthe company's Sponsor or Director OrShareholder who holds 1% or more shares.
12000) Independent Directors do not have any otherrelationship, whether pecuniary or otherwise,with the company or its Subsidiary/AssociatedCompanies.
rzund) independent Directors are not the Members,Directors or Officers of any Stock Exchange.
12OUe) Independent Directors are not theShareholders, Directors or Officers of anymember of Stock Exchange or an Intermediaryof the Capital Market.
PubaHBankLHnHed AnnualReport2014
Condition -|-me appropriate column) RemarksNo.
Compliance status(Putv/inthe
. N tComplied comgfied(If any)
12000 independent Directors are/were not thepartners or executives during preceding3(three) years of concerned company'sStatutory Audit Firm.
v’
1-2 (ii) 9) They are not the independent Directors inmore than 3(three) listed Companies. v’
12flUh) They are not convicted by a Court competentjurisdiction as a defaulter in payment of anyloan to a Bank or a Non-Bank FinancialInstitution (NBFI).
v’
1200 0 They have not been convicted for a criminaloffence involving moral turpitude. v’
tzum The Independent Directors shall be appointedby the Board of Directors and approved by theShareholders in the AGM.
v’
t2(w) The post of independent Directors cannotremain vacant for more than 90 days. v’
1.2 (v) The Board shall lay down a Code of Conductof all Board Members and Annual Complianceof the Code to be recorded.
v’
t2(w) The tenure of office of an Independent Directorshall be for a period of 3(three) years whichmay be extended for 1(one) Term only.
v’
1.3 Qualification of Independent Director (ID):
tau) Independent Director shall be knowledgeableindividual with integrity v’
tsun The Independent directors must have at least12(tweIve) years of corporatemanagement/professional experiences
v’
team In special cases above qualification may berelaxed by the commission; N/A
1.4 Separate Chairman and CEO and their clearlydefined roles and responsibilities. v’
PubaHBankLHnfied AnnualReport2014
ConditionNo.
Compliance status(Putv/inthe
Tine appropriate column) Remarks
CompliedIf
Not ‘ any)complied
1.5 Directors’ Report to Shareholders:
150) Industry outlook & possible futuredevelopments in the industry.
v’
1500 Segment wise product-wise performance v’tsum Risk and concerns. v’tsuw Discussion on Cost of goods sold, gross profit
margin and net profit margin. v’
15(v) Discussion on continuity of any Extra-Ordinarygain or loss. v’
15(vD Basis for related party transaction-a statementof all related party transactions should bedisclosed in the annual F€pOI'lI.
v’
ts(wn Utilization of proceeds from public issues, rightissues and/or through any others instruments. v’
t5(vm) An explanation if the financial result deteriorateafter the company goes for IPO, RPO, RightsOffer, Direct Listing etc.
v’
t5(u) If Significant variance occurs betweenQuarterly Financial Performance and AnnualFinancial Statements the management shallexplain about the variance on their AnnualReport.
v’
15(x) Remuneration to directors includingindependent directors. v’
15(xD The financial statements prepared by themanagement of the issuer company presentfairly its state of affairs, the results of itsoperation, cash flows and changes in equity.
v’
r5(mn Proper books of account of the issuercompany have been maintained.
v’
t5(xm) Appropriate accounting policies have beenconsistently applied in preparation of thefinancial statements and that the accountingestimates are based on reasonable andprudentjudgment.
v’
Pubali Bank Limited Annual Report 2014
ConditionNo.
Title
Compliance status(Put / in the
appropriate column). N tComplied comglied
Remarks(If any)
1.5 (xiv) International Accounting Standards(IAS)/Bangladesh AccountingStandards(BAS)/International FinancialReporting Standards (IFRS)/BangladeshFinancial Reporting Standards (BFRS), asapplicable in Bangladesh, have been followedin preparation of the financial statements andany departure there-from has been adequatelydisclosed.
/
1.5 (xv) The system of internal control is sound indesign and has been effectively implementedand monitored.
/
1.5 (xvi) There are no significant doubts upon theissuer company's ability to continue as a goingconcern. If the issuer company is notconsidered to be a going concern, that factalong with reasons thereof should bedisclosed.
i/
1.5 (xvii) Significant deviations from last year'soperating results of the issuer company shallbe highlighted and the reasons thereof shouldbe explained.
/
1.5 (xviii) Key operating and financial data of at leastpreceding 5(five) years shall be summarized.
/
1.5 (xix) If the issuer company has not declareddividend (cash or stock) for the year, thereasons thereof shall be given. Dividend declared
1.5 (xx) The number of Board Meeting held during theyear and attendance by each director shall bedisclosed.
/
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 Companiesand other related parties (name wisedetails);
/
1.5 (xxi) b) Directors. Chief Executive Officer. CompanySecretary, Chief Financial Officer, Head ofInternal Audit and their spouses and minorchildren ( name wise details).
i/
1.5 (xxi) c) Executives (top five salaried employees ofthe Company other than stated in 1.5(xxi)b);
/
Pubali Bank Limited Annual Report 2014
ConditionNo.
Title
Compliance status(Put / in the Remarks
appropriate column). Not
comphed complied
(If any)
1.5 (xxi) d) Shareholders holding ten percent (10%) ormore voting interest in the company (namewise details).
/
1.5 (xxii) In case of appointment /re-appointmentfollowing information to the Shareholders:
of a Director the Company shall disclose the
1.5 (xxii) a) A brief resume of the Director; /1.5 (xxii) b) Nature of his/her expertise in specific
functional areas. /
1.5 (xxii) c) Names of companies in which the personalso holds the directorship and themembership of committees of the board.
/
2.0 Chief Financial Officer (CFO), Head of Internal Audit and Company Secretary:
2.1 Appointment of CFO, Head of Internal Auditand Company Secretary and their clearlydefined roles, responsibilities and duties.
/
2.2 Attendance of CFO and the CompanySecretary at Board of Directors. i/
3.0 Audit Committee:
3 (i) Audit committee shall be the sub-committeeof the Board of Directors. i/
3 (ii) The Audit committee shall assist the Boardof Directors in ensuring that the financialstatements reflect true and fair view of thestate of affairs of the Company and inensuring a good monitoring system withinthe business.
/
3 (iii) The Audit committee shall be responsible tothe Board of Directors. The duties of theAudit Committee shall be clearly set forth inwriting.
/
3.1 Constitution of the Audit Committee:
3.1 (i) The Audit committee shall be composed ofat least 3 (three) members.
/
3.1 (ii) Constitution of Audit Committee with BoardMembers including one independentDirector.
/
3.1 (iii) All members of the Audit Committee shouldbe “financialIy Iiterate” and at least 1(one)member shall have accounting or relatedfinancial management experience.
/
Pubali Bank Limited Annual Report 2014
COI1diti0I1 Title appropriate column) emar SNo.
Compliance status(Put / in the R K
Complied Not(If any)
3.1 (iv) Filling of Casual Vacancy in Committee.complied
/3.1 (v) The Company Secretary shall act as the
Secretary of the Committee. /
3.1 (vi) The Quorum of the audit committee meetingshall not constitute without at least 1(one)independent director.
i/
3.2 Chairman of the Audit Committee:
3.2 (I) Chairman of the Audit Committee shall bean Independent Director.
/
3.2 (ii) Chairman of Audit Committee shall presentin the Annual General Meeting (AGM). /
3.3 Role of the 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 managementprocess.
/
3.3 (iv) Oversee hiring and performance of externalauditors. /
3.3 (v) Review along with the management, theannual financial statements beforesubmission to the Board for approval.
/
3.3 (vi) Review along with the management, thequarterly & half-yearly financial statementsbefore submission to the Board for approval
/
3.3 (vii) Review the adequacy of internal auditfunction.
/
3.3 (viii) Review the statement of significant relatedparty transaction submitted by themanagement.
i/
3.3 (ix) Review management letters/letter of internalcontrol weakness issued by statutoryauditors.
/
Pubali Bank Limited Annual Report 2014
ConditionNo.
Title
Compliance status(Put I in the
appropriate column) Remarks
CompliedIf
Not ( any‘complied
3.3 (X) When money is raised through initial publicoffering (IPO)/repeat public offering(RPO)/rights issue the company shalldisclose to the Audit Committee about theuses/applications of funds by major category(capital expenditure, sales and marketingexpenses, working capital etc.) on aquarterly basis, as a part of their quarterlydeclaration of financial results.
N/A
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 itsactivities to the Board of Directors. /
3.4.1 (ii) The Audit Committee shall immediatelyreport to the Board of Directors on thefollowing findings, if any:
3.4.1 (ii) a) Report on conflict of interests.N/A
3.4.1 (ii) b) Suspected or presumed fraud or irregularityor material defect in the internal controlsystem;
N/A
3.4.1 (ii) c) Suspected infringement of laws, includingsecurities related laws, rules andregulations; N/A
3.4.1 (ii) <1) Any other matter which shall be disclosed tothe Board of Directors immediately; /
3.4.2 Reporting of anything having materialfinancial impact to the Commission. /
3.5 Reporting to the Shareholders and GeneralInvestors i/
4.0 Externa|IStatutory Auditors:
4 (I) Appraisal or valuation services or fairnessopinions. 1/
4 (ii) Financial information systems design andimplementation.
1/
4 (iii) Book-keeping or other services related tothe accounting records or financialstatements.
/
4 (iv) Broker-dealer services. /
PubaHBankLhnRed AnnualReport2014
Condition -|-me appropriate column) Remarks
Compliance status(Put 1/ in the
No N01 (If any)Complied complied
4 A<\_» Actuarial services. 1/4 AS. V Internal audit services. 1/4(wh Any other service that the Audit Committee
determines.4(vm) No partner or employees of the external
audit firms shall possess any share of thecompany they audit at least during thetenure of their audit assignment of thatCompany;
1/
4(3) Audit/certification services on compliance ofcorporate governance as required underclause (i) of condition No. 7.
1/
5.0 Subsidiary Company:
5(h Provisions relating to the composition of theBoard of Directors of the holding companyshall be made applicable to the Compositionof Board of Directors of the subsidiarycompany.
1/
sun At least 1(one) independent director on theBoard of Directors of the holding companyshall be a director on the Board of Directorsof the subsidiary company.
1/
5(m) The minutes of the Board meeting of thesubsidiary company shall be placed forreview at the following Board meeting of theholding company.
1/
5(w) The Minutes of the respective Boardmeeting of the holding company shall statethat they have reviewed the affairs of thesubsidiary company.
1/
5 (v) The Audit Committee of the holdingcompany shall also review the financialstatements, in particular the investmentmade by the subsidiary company.
1/
6.0 Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO):6(h They have reviewed financial statements for
the year and that to the best of theirknowledge and belief;
6fl)a) These statements do not contain anymaterially untrue statement or omit anymaterial fact or contain statements thatmight be misleading.
1/
Pubali Bank Limited Annual Report 2014
Compliance status(Put 1/ in the
COI1dltiOl'\ Tlt|9 appropriate column) RemarksN01 Not any)
complied6 (i) b) These statements together present a true /
and fair view of the company's affairs andare in compliance with existing accountingstandards and applicable laws.
6 (ii) There are to the best of knowledge andbelief no transactions entered into by thecompany during the year which arefraudulent, illegal or violation of thecompany’s code of conduct.
1/
7,0 Reporting and Compliance of Corporate Governance:
7 (i) The company shall obtain a certificate from /a professional accountant/secretary(CA/CMA/CS) regarding compliance ofconditions of corporate governanceguidelines of the commission and shall sendthe same to the shareholders alongwith theAnnual Report on a yearly basis.
7 (ii) The directors of the company shall state, in /accordance with the Annexure attached inthe director's report whether the companyhas complied with these conditions.
Core Risk Management
Risk Management
The risk of the Bank may be defined as the possibility of losses, financial or otherwise. The riskmanagement 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 Riskand Information Technology Risk. Moreover, Operational Risk, Market Risk, Liquidity Risk, ReputationalRisk and Sustainability Risk etc. are also brought into consideration. The prime objective of the riskmanagement is that Bank takes well calculative business risks while safeguarding the Bank's capital, itsfinancial resources and profitability from various risk areas. The Bank strictly follows the guidelines ofBangladesh Bank and other regulatory bodies in respect of risk management. A separate RiskManagement Unit (RMU) has been formed headed by Deputy Managing Director where all the GeneralManagers & Division Heads of Head Office are the Members and the Division Head of Internal Control &Compliance Division is the member secretary of the committee. The committee reports to HonorableManaging Director regularly. Monthly meeting of Risk Management unit is arranged on regular basiswhere different risk areas are discussed, minutes and decisions are implemented. Minutes of RiskManagement Unit meeting along with risk management papers are submitted to Bangladesh Bank onquarterly basis. Adequate capital is maintained against Credit Risk, Market Risk and Operational Riskunder BASEL-II accord. Stress Testing is done on quarterly basis to assess the impact of different riskassociated with banking business on asset, liability & ultimately on capital. As per 2nd pillar of BASEL-lla Supervisory Review Process Team has been formed to review and calculate total required capital
Pubali Bank Limited Annual Report 2014
against all possible risks. The bank has a capital growth plan upto 2017 in commensurate with differentrisks ofthe bank.
Corporate Social Responsibilities (CSR)Our commitment to Corporate Social Responsibility (CSR) is more than an initiative - it's a core valuethat guides our daily business practices. The large number of welfare initiative of the bank reflects itscommitment and responsibility to the society. In the year 2014, Pubali Bank Limited undertookdiversified programs to make a positive and meaningful contribution to the society through involving innumbers of CSR activities.
Pubali Bank Limited donated Tk.43.00 lac to the Department of Rheumatology, Bangabandhu SheikhMujib Medical University, Shahbagh, Dhaka, Tk.16.00 lac to Dhaka National Medical College, Dhaka,Tk.11.35 lac to Sylhet Diabetic Hospital last year. Additionally, the bank donated notable amount to theRelief Fund of our Honorable Prime Minister, Sharsing Darussunnat Alia Madrasa, Pirojpur forestablishing a computer lab, Lakho Konthe Sonar Bangla, Police Welfare Trust etc.
Furthermore, our bank donates every year at the Research Center of Shahjalal University of Science &Technology (SUST), Morari Chand College in Sylhet, Asia Foundation for buying books, bereaved familyof martyred army officer killed in BDR mutiny, Asiatic Society of Bangladesh for purchasing books.Simultaneously, we sponsor to organize different sports each year like boat rowing, golf tournamentand art competetion to uphold our culture and tradition.
Performance of Pubali Bank Limited:
Share capital
Authorized capital and paid up capital of the bank stood at Tk.2000.00 crore and Tk. 880.37 crorerespectively in 2014.
Statutory and other Reserve
At the close of 2014, the statutory reserve and other reserves of the bank stood at Taka 14055.64million, out of which statutory reserve was Taka 8400.25 million, other reserve was Tk. 5655.39 million.Total Reserve was Tk. 11920.99 million at the end of 2013.
Deposits
The deposit trend was positive in 2014 in spite of political turmoil. At the end of 2013, Total deposit wasTaka 177878.17 million that came to Taka 193090.24 million at the end of 2014 showing 8.55%increase. Out of the total deposits, Time Deposits Taka 164044.88 million and Demand Deposits wereTaka 29045.36 million i.e 84.96% and 15.04% respectively.
Borrowing from other Banks and Financial Institutions
In 2014 the bank borrowed Taka 3376.78 million for business purpose compared to 4149.35 millionduring the previous year.
Lending to other Banks and Financial Institutions
In 2014 the bank lent Taka 988.29 million for business purpose compared to 568.89 million during theprevious year.
Adva nces
Total advances of the bank as on 31 December 2014 stood at Taka 149974.53 million showing anincrease of Taka 13034.07 million @ 9.52% growth.
Pubali Bank Limited Annual Report 2014
in line with national economic development, the bank made advances mainly as Commercial Loan,import & Export business, Term loan to large and medium scale industries, House Building loan,Working Capital loan, Consumer's Credit and Syndication loans etc.
Investment
Total investment of the bank was Tk. 48970.73 million during 2014. In comparison to previous year totalinvestment was increased by Taka 291.81 million @ 0.60% growth. The bank mainly invested inGovernment Bonds, Treasury Bills, Approved Debentures of private institutions and Capital Marketthrough own portfolio.
Foreign Exchange Business
a) Import Business
During the year the Bank handled import business worth Taka 97516.90 million. During the previousyear the amount was taka 97380.40 million. The amount of import business handled by the bankdecreased by 136.50 million during the year which was 0.14% higher than the previous year.
b) Export Business
The bank handled export business worth Taka 77071.30 million during the year as against Taka69484.40 million in the previous year which was 10.92% higher than the previous year.
c) Inward Foreign Remittance
Non resident Bangladeshis sent foreign exchange equivalent to Taka 43541.70 million in 2014 whereasthe amount was Taka 38947.60 million in 2013.
Position of profit & lossTotal operating income & total operating expenditure of the Bank during 2014 were Tk. 13429.25million and Tk. 6347.86 million respectively resulting a profit of Taka 7081.39 million before makingprovision for bad and doubtful debts and income tax.
During the year the Bank made a provision of Taka 898.12 million against loans and advances,diminution in value of investments, exposure of Off balance Sheet items, bad debt off setting and otherassets and provision of Taka 3073.37 million against Corporate Income Tax and deferred Tax. As such,net profit on the Bank stood at Taka 3070.13 million which the Board of Directors propose toappropriate in the following manner.
Net profit after taxation Tk. 3070.13 million
Transferred to Statutory Reserve Tk. 1228.70 million
Transferred to General Reserve Tk. 1841.43 million
Branch Expansion & ModernizationThe Bank expanded its operation through opening 11 new branches at different places during the year2014. As such, the total number of Branches of the Bank stood at 434 all over the country. Moreovernumber of branches were shifted to new premises in more suitable places and a large number ofbranches were furnished and modernized.
Pubali Bank Limited Annual Report 2014
Information Technology and AutomationInformation Technology has enabled efficient, accurate and timely management of the increasedtransaction volume of Pubali Bank Limited that comes with a larger customer base. Adoption oftechnology has delighted the customers in terms of convenience and satisfaction through newproducts, new services and efficient delivery channels.
Pubali Bank Limited has been extending customer services at all our 434 branches using our in-housedeveloped real time, centralized core banking software, Pubali Integrated Banking System (PIBS) undernetwork environment. This is now the largest Online Banking Network in Bangladesh.
One Stop Service has been implemented at all of our 434 branches to ensure better and quick customerservices. Hardware Engineers have also been posted in Regional Offices, each and all, for quick solutionto the hardware problems of the branches under the Region.
To encourage incoming foreign remittances, all of our branches have been brought under the networkof Western Union Money Transfer, Pravu Money Transfer, Transfast etc. alongwith own exchangehouse in U.K. named Pubali Exchange Company (UK) Ltd. In addition to receiving Foreign TTs fromdifferent Exchange House abroad. We have modified our instant cash remittance system with real timeauto reconciliation with Foreign Exchange branch.
We have launched our Internet Banking System using our in-house developed software and we areextending these services to the customers of our all Online Branches. Security of the transmitted databy encryption/decryption has been ensured through agreement with VeriSign Secured Site Pro. We willintegrate mobile recharge, billing system and transaction with 2FA in our internet banking.
We have established our own ATM Network with 100 ATM Booths across the country. We have alreadyparticipated in the National Payment Switch as Pilot Bank under supervision of Bangladesh Bank andinaugurated our ATM Debit Card. We have launched VISA Card and MasterCard as a Principal Member.We have already issued 34581 debit cards to our customers. Introduction of Credit Card is underway.We have established our Call Center for card services. This will be extended to all banking services.
We have established and modernized our Data Center at IT Division, Head Office and Disaster RecoveryCenter at Uttara, Dhaka with the latest technology of Oracle Exadata. Banking Data of our all the OnlineBranches are being stored both at our Data Center and Disaster Recovery Center simultaneously toensure business continuity even in disaster.
We have successfully implemented Bangladesh Automated Clearing House (BACH) and BangladeshElectronic Fund Transfer System (BEFTN) and Credit Information Bureau (CIB) Reporting as perguidelines of Bangladesh Bank. We have deployed goAML system in PIBS to report beneficiaryinformation Online to Bangladesh Bank for cash transaction. We are now working for Real Time GrossSettlement (RTGS) for local international transaction.
We have opened Islamic Banking Window at our Principal Branch, Dhaka and at Stadium Branch, Sylhetusing our in-house developed software, Pubali Integrated Islamic Banking System (PIIBS). Customers ofour Islamic banking windows can get selected services from any of our Online Branches through OnlineBanking Network.
We have established our website www.pubalibangla.com from where the visitors can get informationabout our products, charge schedule, career opportunities, procurement notices and present status ofour bank. The website is updated periodically and also as and when required. Communication throughemail among our Branches, Regional Offices and different Divisions of Head Office under our own MailServer at IT Division, Head Office has become quick and easier.
We have implemented Pubali Cash System in PIBS. By this product unbanked and people can receivemoney by PIN code from any branch of Pubali Bank Ltd. We have integrated Credit Application
Pubali Bank Limited Annual Report 2014
Processing System and Credit Appraisal System in PIBS. We have introduced SMS Alert System forDebit and Credit Transactions of the customers. We have developed Management Information System(MIS) for General Service & Development Division (GSDD), Internal Control & Compliance (ICC) Division,Audit Division, Monitoring Division and Credit Division (partially) as per their requirements.
To ensure proper training for our officials, Information Technology Division arranged need based handson training programs at our Computer Lab daily in addition to training/workshop arranged at HeadOffice Auditorium throughout the year. During the year 2014, we conducted 121 training programs atour Computer Lab on 13 (thirteen) different Topics/Modules covering 3,435 participants and 5 (five)Workshops on 2 (two) different Topics covering 1208 participants from Branches/Regional Officesacross the country.
Man-power & Training
In 2014, the work force of the Bank reached 7645. The Board of Directors put an extra emphasis onHuman Capital Development to secure all stakeholders interest.
Business and Human Capital are intertwined and its progress dependent upon each other. In thiscontext, the Bank has witnessed a rapid growth in human resource development for the last few yearsin terms of fast track and efficient e-recruitment and reduction of turn-around time significantly;development and implementation of a comprehensive orientation/induction process for the newlyappointed officials at entry level, implementation of new performance appraisal systems (PAS);computerization of Human Resources Management Systems etc.
The Bank is now uniquely positioned to move ahead in terms of creating and enabling environment forlearning, change in culture & mind-set and to strengthen professional capacity of employees in terms ofKnowledge Skill & Attitude (KSA).
a) Pubali Bank Training Institute (PBTI):
Vision:
Training Institute aspires to visualize that Officers are self-confident and capable of takingright decision in right time by developing a skilled, committed, ethical and well-motivatedhuman resource through training.
Mission:
In the broader sense, mission of this Training Institute is to produce active and capablemanpower for due support ofthe Management:
a. Bring all officers ofthe bank in training net;
b. Ensure compulsory job rotation for trained officials within at least one year inpost- training period under effective Management plan;
c. Create solid work-base in different operational areas by competent officers;
d. Mould man into manpower for making the bank gain fully profitable and turn itas one of the best Banks;
e. Organize need-based training program to cope with changes for achievement ofthe Bank's business strategy.
Pubali Bank Limited Annual Report 2014
Performance:
0 Total 17 training programs having 57 frequencies were conducted in 2014 for 1925officials of the Bank.
0 Total 4 outreach workshops having 24 frequencies were conducted in 2014 for 2652officials of the Bank.
b) Training at other institute
A total of 1092 persons attend in 154 courses at BIBM, IBA(DU), BBTA, BAB, BIM and other institutesin 2014.
c) Overseas training
20 persons attended 7 different programs i.e. IT, Foreign Exchange, Trade Service in abroad toacquire international practices to compete with other competitors in the local & internationalarena of Banking and to set ourselves at international standards as a benchmark ofcompetence.
A pool of 150 competent and qualified internal auditors has also developed through intensive month-long training programs at BIBM and BBTA as plays vital role for an organization to take appropriate andtimely corrective measures.
Human Resources Division of the banks has a commitment for ensuring the highest standard impartingon-job and formal training programs in its endeavor for development of human resources.
Audit & Inspection
Branches have been categorized as high risk, medium risk and low risk on the basis of the volume,nature of business and risk involved therein. 9 (nine) branches have been categorized as high risk; 85(eighty five) branches, 18 (eighteen) Regional Offices & 14 (fourteen) Divisions of Head Office have beencategorized as medium risk i.e. total 117 (one hundred & seventeen) Branches / Offices / Divisionscategorized as medium risk and 203 (two hundred & three) branches categorized as low risk in the year2014 and accordingly, Audit Division conducted comprehensive Audit. Moreover, Surprise Inspectionshave been conducted at 21 (twenty one) branches in the year 2014 as high risk categorized. So, totalNo. of Audited Branches, Offices, Divisions is 350 (three hundred & fifty) in the year 2014.
Besides, all Regional Offices, GM‘s Office, Chittagong & GM‘s Office, Sylhet conducted SurpriseInspection under their control as per Head Office guidelines.
Dividend
The Board of Directors has recommended 10% Cash Dividend for all shareholders of the bank out ofprofit on the basis of audited accounts for the year 315t December 2014 subject to approval in the 32ndAnnual General Meeting.
Appointment of Auditors
Board of Directors recommended to appoint M/S Aziz Halim Khair Choudhury, Chartered Accountantsand ACNABIN, Chartered Accountants as external Auditors for the year 2015 subject to approval in the32nd AGM of the Bank. These O2(two) Chartered Accountants firms audited the statement of accountswith due permission of Bangladesh Bank 81 Bangladesh Securities and Exchange Commission (BSEC).
Pubali Bank Limited Annual Report 2014
They are eligible for re-appointment. These O2(two) Chartered Accountants firms expressed theirwillingness for re-appointment.
Future Plan
The Bank has put stress on the targets fixed up for the year 2015. The annual targets-2015 is achallenging one. Deposits and Loans are projected to be increased by 22.51% and 33.36% respectivelyand Import, Export and Remittance businesses are expected to rise by 23.06%, 29.75% and 37.65%respectively and operating profit target fixed for Tk.1200.00 crore. The bank has a capital growth planupto 2017 in commensurate with different risks of the bank.
Conclusion
The Board of Directors expresses its profound gratitude to all Clients, Shareholders and Patrons forextending support and co-operation in the activities of the bank during the year 2014. The Boardthanked Government of the People's Republic of Bangladesh, Bangladesh Bank, Bangladesh Securitiesand Exchange Commission, Dhaka Stock Exchange Limited, Chittagong Stock Exchange Limited,Registrar of Joint Stock Companies and Firms and Central Depository of Bangladesh Limited (CDBL) fortheir co-operation and effective guidance.
The Directors also wish to place on record their sincere appreciation and thanks for the efforts anddedicated services and co-operation extended by the employees towards overall acceleratedperformance of the bank.
Pubali Bank Limited Annual Report 2014
The Executive Committee of the Bank consists of following Members:
Mr. Syed Moazzem Hussain Mr. Habibur Rahman Ms. Rumana SharifChairman Member Member
Mr. Musa Ahmed Mr. Md. Abdul Halim ChowdhuryMember Member
Status1 Mr. Syed Moazzem Hussain Chairman2 Habibur Rahman Member
5555
3 s. Rumana Sharif Member4 r. Musa Ahmed Member5 Md Abdul Halim Chowdhury Member & Managing Director
(Current Charge)
During the year 2014 the Executive Committee of the Board of Directors conducted 3 (three) Meetings. Thefollowing issues were discussed/evaluated/reviewed/approved in the meeting.O Reviewed of the application of the employees against whom disciplinary actions were taken by the
Management.O Reviewed overall trend of business and profitability of the Bank. Reviewed and scrutinized proposals of
large loan portfolio and forwarded to the Board with findings, comment and recommendations. TheExecutive Committee recommended guidelines to the Management for close monitoring of the largeloan accounts as well as borrowers ofthe bank.
The Committee expressed its gratitude to the Members of the Board and appreciated the Management fortheir all-out support and co-operation extended to the Committee during the period.
\
/ /
(Syed Moazzem Hussain)Chairman
Pubali Bank Limited Annual Report 2014
The Audit Committee of Board comprising ofthe following members of the Board of Directors.
Mr. Khurshid-ul-Alam Mr. Moniruddin Ahmed Mr. Ahmed Shafi Choudhury Mr. M. Kabiruzzaman Yaqub Dr. Shahdeen MalikChairman Member Member FCMA lUl<)i CGMA Member
Member
Status1 Mr. Khurshid-ul-Alam Chairman2 Mr. Moniruddin Ahmed Member3 Mr. Ahmed Shafi Choudhury Member4 Mr. M. Kabiruzzaman Yaqub FCMA (UK), CGMA Member5 Dr. Shahdeen Malik Member
During the year 2014, the Audit Committee of the Board of Directors conducted 22 (twenty two) meetingsin which among other things, the following issues were discussed/evaluated/reviewed and providedguidelines and necessary instructions:O Reviewed the comprehensive inspection Report of Bangladesh Bank received from time to time and
status of compliance thereof and issued guidelines/directions and decisions on the basis of report.0 Reviewed the internal Audit report of different Branches of the Bank conducted by Bank's Internal Audit
Team received from time to time and gave guidelines/directions and decisions on the basis of the report.O Evaluated whether Management is setting the appropriate compliance culture by communicating the
importance of Internal Control and risk management to ensure that all employees of the Bank haveunderstood their roles and responsibilities.
O Reviewed the corrective measures taken by the management with regards to the reports relating todeficiencies in Internal Audit Division, Bangladesh Bank Inspection Team and External Auditors andsubsequently inform the Board of Directors on a regular basis.
O Evaluated classified Loans and Advances on quarterly basis.O Reviewed Annual and periodical Audit and Inspection program of the Bank & special audit reports.O Reviewed External Auditor's Report on Branches.Q Reviewed policy guidelines of Information Technology and System Audit, Anti Money Laundering
Guidelines, Internal Control and Compliance etc.O Reviewed special inspection/special investigation/visit report of different Branches of the Bank
conducted by the Board's Special Audit Cell from time to time and the status of compliance thereof.
loaf(Mr. Khurshid-ul-Alam)
Chairman
O Reviewed Annual Financial Statements of the Bank.O Followed-up the recovery of Loans and Advances of the Bank.O Reviewed Un-audited Quarterly 81 Half yearly Financial Statements of the Bank.
Pubali Bank Limited Annual Report 2014
Risk Management Committee Re -
The Risk Management Committee of Board comprising of the following members of the Board of Directors.
Mr. M. Kabiruzzaman Yaqub Mr. Fahim Ahmed Faruk Chowdhury Mr. Mustafa AhmedFCMA (UK), CGMA Member Member
Chairman
1 Mr. M. Kabiruzzaman Yaqub FCMA (UK), CGMA
Mr. Azizur RahmanMember
Mr. Khurshid-ul-AlamMember
StatusChairman
2 Mr. Fahim Ahmed Faruk Chowdhury Member3 Mr. Mustafa Ahmed Member4 Mr. Azizur Rahman Member5 Mr. Khurshid-ul-Alam Member
In the year 2013, the Risk Management Committee of the Board of Directors has been formed inconsistency with the Bangladesh Bank's BRPD Circular No. 11 dated October 27, 2013. During the year 2014,the Risk Management Committee of the Board of Directors conducted 04 (four) meetings in which amongother things, the following issues were discussed/evaIuated/reviewed and provided guidelines andnecessary instructions to the Management:O Defining the definition of Risk and Risk Management.O Discussion on Risk Management Structure and instructed to reorganize the structure.O Evaluation of risk on the basis of minutes of Risk Management Unit (RMU).O Perused the Terms of Reference (TOR) of Risk Management Committee.O Analyzed and approved the Risk Management policy.O Perused the Stress Testing Report Q3, 2013 and reviewed of comprehensive Risk Management Rating
done by Bangladesh Bank.O Analyzed & perused the Monitory Policy of Bangladesh Bank of July-December, 2013 81 January-June,
2014.
O Analyzed & perused the Risk Management Guidelines for Banks of Bangladesh Bank.O Perused the report on “lCAAP under Supervisory Review process“ based on December 31, 2011 81
December 31,2012 of the Bank.
(M. Kabiruzzaman Yaqub FCMA (UK), CGMA)Chairman
Pubali Bank Limited Annual Report 2014
Shari‘ah Supervisory Committee Report
Al-'hamdu Lilloh, like previous years, Pubali Bank $hari‘ah Supervisory Committee continued playing their role ofShari'ah Watchdog in PBL Islamic Finance for one more year. In the course of this endeavor they met 4 times inShari‘ah Supervisory Committee meetings in 2014 to perform their Shar‘ee duties. These meetings transacted ahuge number of business for overall promotion of Shari'ah Finance in PBL. The major decisions, advices,recommendations, opinions and instructions made by the Shciri‘ah Supervisory Committee in these meetings arefurnished here below in chronological order and in compact form:
1. PBL Shori‘ah Supervisory Committee, in its 15‘ meeting of the year, opined that the Bank may ignore recoveryof profit from Mudaraba Depositors which has fallen due because of lesser actual Investment Income of ourIslamic Windows than provisioned during 2013. And the non-recovery of these profits doesn't violateShari'ah rather it is an I‘hsaan (the doing of good) which is highly encouraged in Islam.
2. The Committee suggested to introduce a monthly-profit-calculation-system to avoid payment of provisionalprofit and subsequent recovery of unintentional excess.
3. A Seminar on Islamic Finance was suggested to be organized by PBL for members of Board of Directors andShari‘ah Supervisory Committee of all Banks in Bangladesh offering Islamic Banking services which wasaccepted by the Bank-Management in principle and is under process.
4. The Committee opined that price variation in Deal to Deal and Client to Client for Islamic Finance is permittedin Islamic Shari'ah.
5. The Committee recommended to facilitate Islamic Banking Officials of the Bank to participate in advancedtraining courses at home and abroad to earn world class know-how in Islamic Finance. A list of eligibleofficials to undergo such training courses was advised to be prepared.
6. Being inspired by the 5hciri‘ah Supervisory Committee a two-member delegation, both are Chairmen of theBoard of Directors and Shari ‘oh Supervisory Committee respectively, attended the 10"‘ WIEF Conference heldduring 28- 30 October 2014 in Dubai, UAE.
7. Shari'ah Audit Reports of 2014 were examined in a Shari'ah meeting and were accepted with a conclusionthat no Shari'ah violation took place in the operations of Islamic Windows.
8. The Committee suggested the Bank to increase frequency of Shari'ah Audit preferably in every quarter toavoid Shari'ah violations, to minimize irregularities and to standardize Shari'ah compliance in days to come.
9. An issue on existing IISR (Investment Income Sharing Ratio) of MTDR (Mudaraba Term Deposit Receipt) of PBLIslamic Banking came up for discussion in the last meeting of the year aiming to rearrange the ratio. Themeeting suggested the Islamic Banking Wing to conduct study on it in collaboration with PBL IT Division andtry to automate the system of profit payout to Mudaraba Depositors in a way which will enable the IslamicWindow to readily get the final rate of distributable return up to date at the end of every month. The study inthis regard is in progress.
After examination of Shari'ah Reports and observation of overall activities of Islamic Windows the $hari‘ahSupervisory Committee is hopeful that the Islamic Windows of the Bank will do better in days to come.
/are/Wc(Abdul Gofran) (M. Azizul Huq)Member Secretary Chairman
Pubali Bank Limited Annual Report 2014
Pubali Bank's response to corporate social responsibility is embodied by the concept of responsible banking.Which is imbibed in the way we do business and drive the objectives of the Bank to be the best financialinstitution in Bangladesh. We recognize our obligations to the society, so we are committed to alwaysmaking informed, reasonable and ethical decision in the manner we carry out our business, how we treatour employees, and how we relate to our customers.
Our CSR initiatives over the years have focused on health care, sports, education and youth development,the arts, philanthropy and charitable activities including disaster management.
Health Care:We believe that good health is a critical condition for rapid socio-economic development of the country, theBank has donated or funded large volumes to set up state of an art facility to various hospitals across thecountry to underline its commitment to ensure availability of health service to all at affordable cost and thussaving exodus of foreign currencies.
Pubali Bank Limited donated Tk.43.00 lac to the Department of Rheumatology, Bangabandhu Sheikh MujibMedical University, Shahbagh, Dhaka, Tk.16.00 lac to Dhaka National Medical College, Dhaka, Tk.11.35 lac toSylhet Diabetic Hospital, Sylhet to take the health services to the door steps of the mass.
Apart from direct donation, Pubali Bank Limited from the very beginning of the projects extended creditfacilities to all prominent hospitals at a concessional rate of interest so that valuable foreign currency can besaved and our people can get healthcare services at affordable cost like:
1. BIRDEM
2. Ibrahim Cardiac Center
3. Apollo Hospital
4. United Hospital
5. Square Hospital
6. International Medical College and Hospital
7. Bangladesh Medical College and Hospital
8. Lab Aid
9. Green Life Hospital
10. National Heart Foundation Sylhet
11. Kidney Awarness Monitoring and Prevention Society-KAMPS etc.
Our other areas of Corporate Social ResponsibilityPubali Bank Limited is always extending its cooperation and generously coming forward when nation facesany disastrous situation or natural calamity and national tragedy. To help the winter stricken people of thecountry Pubali Bank Limited donated Tk.15.00 lac, Tk.1.00 crore in the Relief Fund of our Honorable PrimeMinister, Tk.11.06 lac to Sharsing Darussunnat Alia Madrasa, Pirojpur for establishing a computer lab,
Pubali Bank Limited Annual Report 2014
Tk.1.00 crore for Lakho Konthe Sonar Bangla, Tk.5.00 lac to the Police Welfare Trust, Sylhet. Pubali Bank alsodonated significant amount in BDR carnage, Masjid, Mondir etc.
Pubali Bank Limited regularly donates in different educational institutions, knowledge based organizationsand victim family of various incidents. Every year we are donating at the Research Center of ShahjalalUniversity of Science & Technology (SUST), Morari Chand College in Sylhet, Asia Foundation for buyingbooks, bereaved family of martyred army officer killed in BDR mutiny. We also donated to Asiatic Society ofBangladesh for purchasing books. We donated to the Madoak Drrabbo o Nesha Nirodh Sangstha, Dhaka formaking a documentary of the abuse of tobacco. We donated a 12 seated microbus to BangladeshAgricultural University Research System. Pubali Bank Limited also donated to different types of organizationsuch as South West Welfare Trust, Sunamgonj, Divisional Sports Association, Sylhet, National Society of theBlind & Partially Sighted, Faridpur etc.
We also sponsor to organize different sports each year like boat rowing, golf tournament and artcompetetion to uphold the culture and tradition as well as uplifting the image ofthe country.
Since inception i.e from 1959 this bank has been playing a vital role in socio-economic, industrial andagricultural development as well as in the overall economic development of the country with its ethicalbusiness through savings mobilization and investment of funds.
Eventful Year 2014
.., ‘ ~ />(_._,_,
/
Pubali Bank Limited Board of Directors‘ has donated Tk. 1(one) crore to theHonourable Prime Minister's Relief 81 Welfare fund as a part of corporate socialresponsibility. Hafiz Ahmed Mazumder, Chairman, Board of Directors of PubaliBank Ltd. and Ex-Managing Director 81 CEO of Pubali Bank Ltd. Helal AhmedChowdhury are handing over a donation cheque of Tk. 1 (one) crore to SheikhHasina, Hon‘bIe Prime Minister at Ganabhaban.
l'l imi ll\'\l\' ipiri ran
Regional 81 Corporate Bronch Nloliogers ‘I --11-I \1-l1|\| Hill! Ahfllqfl Mzuiirr-dot -
,1... .11....-11 Beard 111 111.,“-1--.1~.i.i1-1111-1 mini Ari-111111 one-arrurv l
1._n n .-. 11>
1 __ \.I-G iI‘\ , .
The 151 conference - 2014 of Regional and Corporate Branch Managers was heldat bank‘: head office on 25 January 2014. Hafiz Ahmed Mazumder, Chairman,Board of Directors of Pubali Bank was present as chief guest while Ex-ManagingDirector 81 CEO Helal Ahmed Chowdhury presided over the meeting. Directors ofPubali Bank Syed Moazzem Hussain, M. Kabiruzzaman Yaqub FCMA (UK), CGMA,Managing Director 81 CEO (Current Charge) Md. Abdul Halim Chowdhury are alsoseen in the photograph.
I/-— : _ ____
_,. ire-1-rm.~rrif‘nIz \_ Jr‘ mm," .'.ifr‘i!.'t'f" r'\""
A ' ( _' ' V _
|12"“
. I '4-4. .4I .., I . ' . _- ‘ - . 1 1~_ _ ._ “ V .~\\ . -3 ',- v _ \
", |,_; 1‘ 1. -“1".~ 11"‘ ‘ - _ -'----_."“I'*
Pubali Bank Limited has inaugurated its 425th branch at Mawna, Gazipur. Hon‘bleChairman, Board of Directors of Pubali Bank Ltd. Hafiz Ahmed Mazumder formallyinaugurated the branch. Ex-Managing Director of Pubali Bank Helal AhmedChowdhury, Chairman of Envoy Group Qutubuddin Ahmed, Mawna UnionParishad Chairman Md. Fazlul Haque, Company Secretary of Pubali Bank Ltd. Md.Sayeed Sikder, Genaral Manager 81 Dhaka North Region Head Dewan JamilMasud, General Manager B.M. Shahidul Hoque are also seen.
0-‘ ‘I ‘
1
l
Hafiz Ahmed Mazumder, Chairman, Board of Directors of Pubali Bank handingover the appointment letters to physically disabled Sanjida Rahman and visuallydisabled Dewan Salamat Raza Chowdhury. In the photograph Vice-Chairman,Board of Directors of Pubali Bank Fahim Ahmed Faruk Chowdhury, DirectorMoniruddin Ahmed, Director Azizur Rahman, Ex-Managing Director & CEO HelalAhmed Chowdhury and General Manager Abu Habib Khairul Kabir are also seen.
Pubali Bank Limited Annual Report 2014
B? 1
Cltlln H
Helal Ahmed Chowdhury, Ex-Managing Director 81 CEO of Pubali Bank Limitedreceiving the “Certificate of Merit" award of ICMAB Best Corporate Award 2013in private commercial Bank (Traditional Operation) category from Abul MaalAbdul Muhith, Hon‘bIe Minister, Ministry of Finance at a function at Radisson BluWater Garden in Dhaka recently.
:0 -11 _ W/.
-114?.-.. of-a|i...1ie-Is» J.» -.A l’l‘B.\l.l ll\\K H‘l-'.('llRlTIi'L§ I.|.\ ' lil)
T ‘ 1'1iiirrtliiii_1| (,,.,...1'rrit?\1 Af‘ ' ‘ _,_ -'i- . ____’ ,1 ‘\
. i 1 til If tl_r r 1 6‘ it1'1’, ‘
,:'i .. , "1 . ,-.T , * ' - .- ' . I. , V, ‘
"-“,5-3.90 ‘ -.-.r,;s_1~Pubali Bank Securities Limited has formally launched the trading of Chittagong Stock Exchangefrom 22 October 2014. Hafiz Ahmed Mazumder, Honourable Chairman, Board of Directors ofPubali Bank Limited was present at the occasion as Chief Guest and inaugurated the trading ofChittagong Stock Exchange.Helal Ahmed Chowdhury, Ex-Managing Director 81 CEO of Pubali BankLtd. and Director of Pubali Bank Securities Ltd. and Rana Laila Hafiz, Director of Pubali BankSecurities Ltd. were present as special guests at the launching ceremony. Managing Director 81CEO (Current Charge) Md. Abdul Halim Chowdhury, Deputy Managing Director Safiul Alam KhanChowdhury and Chief Financial Officer (CFO) of Pubali Bank Ltd. Sayeed Ahmed FCA, ACMA,CGMA were present as guests at the launching ceremony. Mohiuddin Ahmed, Managing Director81 CEO of Pubali Bank Securities Ltd. presided overthe function.
-_
Pubali Bank Ltd. has given blankets to Anjuman Mufidul Islam for distributingamong the poor 81 helpless cold stricken people. Hafiz Ahmed Mazumder,Chairman, Board of Directors of Pubali Bank Ltd. handed over 1000 pieces ofblanket to Al-hajj Abdus Salam, Chairman of relief committee, Anjuman MufidulIslam 81 Executive Director of Anjuman Mufidul Islam Kazi Abul Kashem.Directors‘ of Pubali Bank Ltd. Moniruddin Ahmed, Syed Moazzem Hussain, Ex-Managing Director 81 CEO Helal Ahmed Chowdhury, Independent DirectorKhurshid-ul-Alam 81 Dr. Shahdeen Malik and Managing Director 81 CEO (CurrentCharge) Md. Abdul Halim Chowdhury were present in the occassion.
_l'l ir\iii§\\i\ii\iiii-.ir .2--I e1111;.-1.-111» 21'/1 11¢ '
IIoglonol I (urponru lru-to Iluiopn
-.._. J1. . . 4-’! ‘ _ .. 1 _' .
I :_' ./- _ ’_4~ ‘T;. _i_ A T r D‘
.""~’\‘:""‘ e.._ .. 5‘The 2nd conference - 2014 of Regional and Corporate Branch Managers of PubaliBank Limited held at bank's head office on 13 July 2014. Hafiz Ahmed Mazumder,Chairman, Board of Directors of Pubali Bank was present as Chief Guest while Ex-Managing Director 81 CEO Helal Ahmed Chowdhury presided over the meeting.Director of Pubali Bank Azizur Rahman, Managing Director 81 CEO (CurrentCharge) Md. Abdul Halim Chowdhury and Deputy Managing Director Safiul AlamKhan Chowdhury are also seen in the photograph.
Pubali Bank Limited Annual Report 2014
Eventful Year 2014
Pubali Bank Limited, Hetimgonj branch of Sylhet formally inaugurated having onlinefacilities. Hafiz Ahmed Mazumder, Chairman, Board of Directors of Pubali Bank waspresent as chief guest. E><—Managing Director & CEO Helal Ahmed Chowdhury presidedover the inauguration ceremony. Mrs. Nahid Mahzabin Rahman, wife of Director AzizurRahman inaugurated the branch by cutting ribon. In the photograph, Vice—Chairman,Board of Directors of Pubali Bank Fahim Ahmed Faruk Chowdhury, Directors— AhmedShafi Choudhury, Moniruddin Ahmed, Mustafa Ahmed, Azizur Rahman, ManagingDirector & CEO (Current Charge) Md. Abdul Halim Chowdhury and Deputy ManagingDirector Safiul Alam Khan Chowdhury are also seen.
U .. r '
41 — 1
Pubali Bank Limited is running online banking service in all of its 434 branches by using Real-timeCentralized Online Banking Software invented by its own human resources. It is the largest onlinebanking network in the private sector of Bangladesh. Continuing to this and to provide modernand safe banking service, Pubali Bank has inaugurated Disaster Recovery Center. Hafiz AhmedMazumder, Chairman, Board of Directors of Pubali Bank Ltd. was present as Chief Guest. E><—Director of the Bank Mrs. Suraiya Rahman formally inaugurated the center. Directors‘Moniruddin Ahmed, Ahmed Shafi Choudhury, Ms. Rumana Sharif and Azizur Rahman werepresent as Special Guests while Ex-Managing Director St CEO of Pubali Bank Helal AhmedChowdhury presided over the function. Managing Director & CEO (Current Charge) Md. AbdulHalim Chowdhury and Deputy Managing Director Safiul Alam Khan Chowdhury were alsopresent.
Pubali Bank Limited has inaugurated its 432"d branch recently at Baneshwar, Rajshahi.Ahmed Shafi Choudhury, Director, Board of Directors of Pubali Bank Ltd. formallyinaugurated the branch as Chief Guest while Md. Abdul Halim Chowdhury, ManagingDirector & CEO (Current Charge) of Pubali Bank Ltd. was present as Guest of Honour.Deputy Managing Director Safiul Alam Khan Chowdhury of Pubali Bank Ltd. was presentas Special Guest. DGM and RM of Rajshahi region Sayed Saiful Islam presided over theinaugural ceremony. President of Baneshwar Bazar Traders‘ Association Alhaj Azizul BariMukta, Prominent Business Person Salman Khurshid, local elites & businessmen werealso attended at the ceremony.
K?" V
** "
Pubali Bank Limited, lshwardi Branch shifted to new premises having online facilitieswith a view to providing best & modern banking services. Director of Pubali BankLimited Ahmed Shafi Choudhury inaugurated the shifted branch as a chief guest. Ex-Managing Director Helal Ahmed Chowdhury presided over the inauguration ceremony.Deputy Managing Director of Pubali Bank Ltd. Safiul Alam Khan Chowdhury, ChiefTechnical Officer & GM Mohammad Ali, Regional Manager of Rajshahi Region DGMSayed Saiful Islam, Renowned businessmen and local elite were also attended at thefunction.
- _ \
The 1000th Board Meeting of Pubali Bank Limited was held at Guishan Club in the city onNovember 05, 2014. Hafiz Ahmed Mazumder, Chairman of Board of Directors of Pubali BankLimited is inaugurating the meeting by cutting a cake. PBL's Vice—Chairman Habibur Rahman,Directors‘ Moniruddin Ahmed, Ahmed Shafi Choudhury, M. Kabiruzzaman Vaqub FCMA (UK),CGMA, Ms. Rumana Sharif, Azizur Rahman, Independent Directors’ Khurshid-ui~A|am and Dr.Shahdeen Maiik, Alternate Director Dr. Abdur Razzak Mondai and Ex-Director Mrs. SuraiyaRahman, Ex-Managing Director & CEO Helal Ahmed Chowdhury, Managing Director 8t CEO(Current Charge) Md. Abdul Halim Chowdhury, CFO 8t General Manager Sayeed Ahmed FCA,ACMA, CGMA and CTO 8t General Manager Mohammad Ali, General Manager & CompanySecretary Md. Sayeed Sikder and DGM St Chief Protocol Officer Md. Shah Alam were present inthe meeting.
\
Pubali Bank Limited Board of Directors‘ has donated Tk. 7.5 iac (Seven Lac Fifty Thousand) to AsiaticSociety ol Bangladesh for composition and publication of ‘History of Bangladesh: Ancient and MedievaiProject‘ as a part of corporate social responsibility. In the photograph, Hafiz Ahmed Mazumder,Chairman, Board of Directors of Pubali Bank Ltd. IS handing over a donation cheque or Tk. 7.5 iac toProfessor (Rtd.) Abdul Momin Chowdhury, Director of the Project. Habibur Rahman, Vice-Chairman,Board of Directors of Pubali Bank Ltd. and Directors of Pubali Bank Ltd. Syed Moazzem Hussain, AhmedShafi Choudhury, Ms. Rumana Sharif, Independent Director l<hursl1id—ui—A|am and Dr. Shahdeen Maiik,Mrs. Suraiya Rahman (Ex—Director), Ex—Managing Director x. cso of Pubaii Bank Ltd. Helal AhmedChowdhury, Managing Director st ceo (Current Charge) Md. Abdul Halim Chowdhury, oeotity ManagingDirector saiiiii Alam Khan Chowdhury and President of Asiatic Society of Bangladesh Syed Arnirul Islamand General Secretary Ahmed Abduliah Jamal were also present at the cheque Handing over ceremony.
Hon‘ble Director of Pubali Bank Ltd. Ahmed Shafi Choudhury is formally inaugurating thePatkelghata branch at Satkhira. Ex—Managing Director & CEO of Pubali Bank Helal AhmedChowdhury, Managing Director 8i CEO (Current Charge) Md. Abdul Halim Chowdhuryand Regional Head of Khulna & General Manager Md. Humayun Kabir are also seen inthe photograph.
The 14"‘ meeting of Pubali Bank Shariah Supervisory Committee held on August 13, 2014 in theBoard Room of the Bank‘s Head Office to review the overall present position of the IslamicBanking. In the photograph Chairman of Pubali Bank Shariah Supervisory Committee M. AzizulHuq, Members of Pubali Bank Shariah Supen/isory Committee and Directors‘ of Pubali BankMoniruddin Ahmed, Ahmed Shafi Choudhury, Ex-Managing Director 8t CEO Helal AhmedChowdhury, Islamic Economist Prof. M. Muzahidul Islam, Prof. M. Mansurur Rahman, AbduliahBin Sayeed Jalalabadi, Md. Mukhlesur Rahman, Mohammad Mahbubur Rahman St Head ofIslamic Banking Wing of Pubaii Bank Abdul Gofran are seen.
Pubali Bank Limited Annual Report 2014
Eventful Year 2014
Pubali Bank Limited has received the Financial Branding Award by Centre for Non-ResidentBangladeshis (NRB) for its outstanding contribution to the Financial Branding of Bangladeshabroad. This award has been given at a closing ceremony of World Conference Series-2014 onNRB Talent, Investment and Remittance for Development. Centre for NRB organized a ceremonyon this occasion at Pan Pacific Sonargaon Hotel in city recently. Ex—Managing Director 8t CEO ofPubali Bank Limited Helal Ahmed Chowdhury receiving the award from State Minister for ForeignAffairs Md. Shahriar Alam. Governor of Bangladesh Bank Dr. Atiur Rahman, Deputy Chief of USEmbassy in Bangladesh David Mili and Chairperson of the Centre for NRB MS Shekil Chowdhuryare also seen.
Ii-‘Iii. .
In its move towards modern and technology based banking, Pubali Bank Ltd.launched its own "Pubali Cash" on 24 November 2014. Helal Ahmed Chowdhury,Ex~Managing Director & CEO of Pubali Bank Ltd. has launched the "Pubali Cash“as chief guest. Managing Director & CEO (Current Charge) Md. Abdul HalimChowdhury and Deputy Managing Director Safiul Alam Khan Chowdhury werealso present as special guests at the launching ceremony. Mohammad Ali, ChiefTechnical Officer & General Manager of IT Division was present.
4.5” giiitltltlnmsages PUB/iil.IBr\ l.l!\lITl-_lJ
A School Banking Conference was held in the Bangladesh Bank colony ground inChittagong recently. Governor of Bangladesh Bank Dr. Atiur Rahman was presentas chief guest in the conference and visited the stall of Pubali Bank Ltd. DeputyManaging Director of Pubali Bank Limited Safiul Alam Khan Chowdhurypresented bouquet to the Governor of Bangladesh Bank during his visit to thestall of the bank. Executive Director of Bangladesh Bank M. Mahfuzur Rahmanand General Manager of Pubali Bank Syed Abdul Mazid were present on theoccasion.
Pubali Barik L|mited- the largest private bank of the country has introduced sivis based banking servicesfor the customers. Ex-Managing Director & cco of Pubali Bank Ltd. Helal Ahmed Chowdhury inauguratedthe service as chief Guest at a ceremony in Bank's Head Office recentiy. Managing Director o cso(current charge) of bank Md. Abdul Halim Chowdhury, Deputy Managing Director Safiul Alam KhanChowdhury, Chief Technical Officer st General Manager of Information Technology Division MohammadAli, Managing Director of SSL Wireless Sayeeful Islam and Senior Executives of Head Office were alsopresent at the ceremony.
..- ,( i\-I‘5 L
Pubali Bank 5th Golf Tournament-2014 sponsored by Pubali Bank Limited was held at BhatiaryGolf 8t Country Club, Chittagong recently. Major General Sabbir Ahmed, NDC, PSC, Senior VicePresident of Bhatiary Golf 8t Country Club and General Officer, Commanding 24 Infantry DivisionSt Area Commander Chittagong was present as chief guest. Director 8t Chairman of ExecutiveCommittee, Board of Directors of Pubali Bank Ltd. Syed Moazzem Hussain, Ex—Managing DirectorSt CEO Helal Ahmed Chowdhury, Managing Director 8t CEO (Current Charge) Md. Abdul HalimChowdhury, Vice President of Bhatiary Golf 8t Country Club Mohosin Ahmed and SeniorExecutive of Pubali Bank Limited were present in the function.
-»jjiWI‘ lH\Ill‘I‘n.
1 “MP'-:- -_;—v_:- FAlr
J11.-_ -_ _\- _mitti ' i ‘
v_ . , .. __R‘; .a -, »- . ..-Q _ »_ ~-e- ‘I_ _ n ‘-.. . _. . . _
t ‘ i' t a ‘JO
An Open Discussion on "SME Financing" organized by Pubali Bank NarayanganjRegional Office was held at Regional Office, Narayanganj recently. ExecutiveDirector of Bangladesh Bank Nirmal Chandra Bhakta was present as Chief Guestwhile Ex~Managing Director 8t CEO of Pubali Bank Ltd. Helal Ahmed Chowdhurywas present as Guest of Honour. In the photograph, General Manager ofBangladesh Bank Md. Masum Patwary, Managing Director & CEO (CurrentCharge) of Pubali Bank Md. Abdul Halim Chowdhury, General Manager Md.Shahnewaz Chowdhury and DGM Md. Belayet Hossain are also seen.
l r.'\‘Ir
e '5-A, u~tr4o'£ ~!‘CI-_1€ t ‘I’ ‘t T93”p‘ e_-um fwd 4: Tile ‘--
As a part of Corporate Social Responsibility the Board of Directors of Pubali Bank Ltd. donatedTk.3D,0D,UDO/— (Taka thirty lac) to Sylhet Zilla Police for its auditorium and accompanyinginfrastructural development. Moniruddin Ahmed, Honourable Director, Board of Directors ofPubali Bank is handing over the cheque of Tk. 5 lac, the last installment of the donation to NooreAlam Mina, Superintendent of Police of Sylhet. In the photograph, Honourable Director of PubaliBank Ltd. Mustafa Ahmed, Abu Habib Khairul Kabir, General Manager, Sylhet Principal Office,Pubali Bank; Regional Manager of Sylhet East Zone DGM A. S. Sirajul Haque Chowdhury, RegionalManager of Sylhet West Zone DGM Dilip Kumar Paul and Additional Superintendent of Police ofSylhet Enamul Kabir are also seen.
Pubali Bank Ltd. signed an agreement with oracie and Aamra Technology Ltd. worth Tk. 45.43 crorerecently. Mohammad Ali, Chief Technical Officer at General Manager of Information Technology Divisionofthe Bank En Syed Farhad Ahmed, Managing Director of Aamra Technology Limited (Platinum Partner ofOracle Corporation) signed the agreement on behalf of their respective organizations. in the photograph,Chief Guest of the ceremony Ex—Managing Director Kt CEO of the Bank Helal Ahmed Chowdhury, SpecialGuests Managing Director at ceo (Current Charge) Md. Abdul Halim Chowdhury arid Deputy ManagingDirector Safiul Alam Khan Chowdhury st General Managers of Pubali Bank are seen. it is one of thelargest investment agreernent for infrastructural development in banking sector.
Pubali Bank Limited Annual Report 2014
Comparative Financial Highlights of PBL
Particulars
Income StatementTotalrevenueTotalexpensesOperating profitProfn before taxProfit after taxEarnings pershareAssets 8t LiabilitiesTotalassetsEarning assetsTotmloansandadvancesProperty, plant and equipmentTotaldeposfiShareholders’ equityCapkalPmdupcapfiflCapital maintainedRisk weighted assets (RWA)CapfialrequnedCapHaladequacyrafio(CAR)Share InformationEarningspershare(EPS)Net assets value per share (NAVPS)Number of sharesRegulatory RatioCash reserve requirement (CRR)Statutory liquidity ratio (SLR)Capnaladequacyraflo(CAR)CrewtdepodtRafloAsset QualityAmountofchsflfiedloansandadvances96ofchs§fiedloansandadvancesRequired provision for loans and advancesProvision maintained for loans and advancesOasnmdoflmrasemChsdfiedinvesnnentTotal classified assets
2014
25,629.3618,547.977,081.396,143.503,070.13
3.49
248,386.50200,874.83149,974.53
4,024.58193,090.2422,859.38
8,803.7423,434.69
199,636.7019,963.67
11.74%
3.4925.97
880,373,812
6.65%22.12%11.74%77.67%
9,377.596.25%
5,423.165,539.66
77.686.69
9,461.96
(BDT in million unless stated otherwise)
|ncrese/2013
(Decrease)
24,418.00 1,211.3616,858.20 1,689.777,559.80 (478.41)5,386.79 756.712,305.54 764.59
2.62 0.87
228,533.77186,929.10136,940.46
3,735.99177,878.1720,305.50
19,852.7313,945.7313,034.07
288.5915,212.072,553.88
419.232,351.82
19,944.4017,969.23 1,994.44
11.73% 0.01%
8,384.5121,082.87
179,692.30
2.62 0.8724.22 1.75
838,451,250 41,922,562
6.53% 0.13%24.04% (1.92)%11.73% 0.01%76.99% 0.69%
8,136.10 1,241.495.94% 0.31%
6,281.46 (858.30)6,282.91 (743.25)
69.51 8.176.73 (0.04)
8,212.34 1,249.62
Change(%)
4.96%10.02%(6.33)%14.05%33.16%33.16%
8.69%7.46%9.52%7.72%8.55%
12.58%
5.00%11.16%11.10%11.10%
0.05%
33.16%7.22%5.00%
1.97%(8.00)%
0.05%0.89%
15.26%5.27%
(13.66)%(11.83)%
11.75%(0.59)%15.22%
Pubali Bank Limited Annual Report 2014
Graphical Presentation
Operating profit Profit after tax(BDTin Million)(BDTin Million)
7 .7,081.39 559 80 6,135.79I I I 5,480.22 5,485.06
2014 2013 2012 2011 2010
3,070.13 314Q_22 3233.09
2305.54I 1761.98
Shareholders‘ equity(BDT in Million)
22,859.3820,305.50
17,283.1418,804.70
‘ I l 14,379.87
2014 2013 2012 2011 2010
2014 2013 2012 2011 2010
Earnings per share (EPS)(In BD
4.823.49 3.75
2.62I 2.10
T)
2014 2013 2012 2011 2010
Return on Shareholders‘ Fund
22.48%
18.17%
13.43% 11.35%I I 9.37%
2014 2013 2012 2011 2010
Net asset value per share (NAPVS)(in so
28.94
22.4325.97 2422 25.77 l
T)
2014 2013 2012 2011 2010
Paid up capital(BDTin Million)
8303-74 8,384.51 8,384.51
Capital adequacy ratio (CAR)12.20%
11.74% 11.73%6,707.61 O 1l_56%I 4,968.60 I I I 113%
2014 2013 2012 2011 20102014 2013 2012 2011 2010
Pubali Bank Limited Annual Report 2014
Graphical Presentation
Total assets Net assets(BDTin Million) 22,85,138 (B
128,462.65
Return on assets (ROA)
2.00%
2.44%
1.24%I 101% 0.91%
2014 2013 2012 2011 2010
248,386.50 228153377 20,305.50 18,804'70192,947.93
‘ I 157,153.71 I I
DT in Million)
14,379.8717,283.14
2014 2013 2012 2011 2010 2014 2013 2012 2011 2010
2010
2011
2012
2013
2014
Earning & non-earning asset(BDT in Million)22 022.80
106,439.85
27 803.41129,350.30
36 241.28156,706.64
41 604.67186,929.10
47 5 1 1.67200,874.83
Non -earning assets I Earning assets
2010
2011
2012
2013
2014
Interest income & interest expense(BDT i
9,003.515 729.02
3 790.18nMillion)
12,042.37
9 267.83
11 821.24
16,718.79
17,220.88
17,234.14
lnterestexpenses Ilnterestincome
2010
2011
2012
2013
2014
Deposits & Advances(BDT in Million)
89,106.2198,850.50106,329.63
123,805.97122 068.52
150,418.81136 940.46
177,878.17149,974.53
193,090.24Loans and advances I Deposits
2010
2011
2012
2013
2014
Total revenue & expenses(BDT i
7 343.4712,828.53
9 709.4815,189.70
14 642.57
nMillion)
20,778.3616 858.20
18,547
Total expenses ITotal income
24,418.00.9725,629.36
2010
2011
2012
2013
2014
Import, Export & Foreign remittance31,650.00
85,683.5334,003.90
90,568.90
4113930 108,120.30
38,947.60
97,380.4043,541.70 77,071.30
97,516.90Foreign remittance Export Ilmport
Key Financial Information
Pubali Bank Limited Annual Report 2014
(BDT in million unless stated otherwise)
ParticularBalance Sheet MatrixAuthorized capitalPaid up capitalReserve fund & surplusTotal shareholders‘ equityCapital employedDepositsLoans and advancesInvestmentsProperty, plant 8t equipment (Fixed Assets)Total assetsTotal off balance sheet exposuresEarning assetsNon-earning assetsNet AssetsIncome Statement MatrixInterest incomeInvestment incomeNon-interest incomeTotal incomeInterest expensesNon-interest expensesTotal expensesNet interest margin (NIM)Net non»interest marginOperating profitEarnings before provision, depreciation and taxProfit before provision 8t taxProfit before taxNet profit after taxCapital MatrixRisk weighted assets (RWA)Total required capitalTotal regulatory capital maintainedCapital surplus/(shortfall)Capital adequacy ratio (CAR)Core capital ratioSupplementary capital ratioAmount of core capital (Tier-I)Amount of supplementary capital (Tier-II)Asset Quality
Percentage of NPLs to total loans and advancesRequired provision for unclassified loansRequired provision for classified loansTotal required provision for loans and advancesTotal provision maintained for loans and advancesProvision excess/(shortfall) for loans and advancesGeneral provision maintainedSpecific provision maintainedClassified investmentProvision maintained for classified investmentClassified other assetsProvision maintained for other assetsTotal classified assetsTotal unclassified assets
Classified loans & advances (Non-performing loans)
Z014
20,0008,803.74
14,055.6422,859.38
117,629.61193,090.24149,974.5348,970.734,024.58
248,386.5047,538.41
200,874.8347,511.6722,859.38
17,234.14
5,987.81
2,407.41
25,629.36
12,200.11
6,347.86
18,547.97
5,034.03
2,047.36
7,081.39
7,327.09
7,081.39
6,143.50
3,070.13
199,637.00
19,964.00
23,435.00
3,471.00
11.74%
9.97%
1.77%
19,895.00
3,540.00
9,377.59
6.25%
1,454.20
3,968.96
5,423.16
5,539.66
116.50
1,454.20
4,085.46
6.69
18.75
77.68
190.05
9,461.96
238,924.54
Z013
20,0008,384.51
11,920.9920,305.50
107,983.07177,878.17136,940.4648,678.92
3,735.99228,533.7745,738.25
186,929.1041,604.6720,305.50
17,220.88
4,899.69
2,297.42
24,418.00
11,821.24
5,036.96
16,858.20
5,399.64
2,160.15
7,559.80
7,805.50
7,559.80
5,386.79
2,305.54
179,692.00
17,969.00
21,083.00
3,114.00
11.73%
9.60%
2.14%
17,244.003,839.00
8,136.10
5.94%
1,385.50
4,895.96
6,281.46
6,282.91
1.45
1,385.50
4,897.41
6.73
18.75
69.51
162.19
8,212.34
220,321.43
Z012
20,000
8,384.51
10,420.19
18,804.70
88,235.57
150,418.81
122,068.52
30,691.15
3,502.81
192,947.93
40,151.65
156,706.64
36,241.28
18,804.70
16,718.792,034.602,024.97
20,778.369,267.835,374.74
14,642.577,450.96
(1,315.17)6,135.796,331.486,135.794,317.081,761.98
159,674.4015,967.4419,483.743,516.30
12.20%9.88%2.32%
15,776.623,707.13
6,159.62
5.05%
1,462.43
2,785.87
4,248.30
4,252.73
4.43
1,462.43
2,790.31
7.24
18.75
118.41
143.97
6,285.27
186,662.66
2011
10,0006,707.61
10,575.5317,283.1469,714.20
123,805.97106,329.63
19,069.273,369.19
157,153.7133,616.28
129,350.3027,803.4117,283.14
12,042.371,257.091,890.24
15,189.705,729.023,980.469,709.486,313.35(833.13)
5,480.225,636.425,480.225,410.223,140.22
132,581.6013,258.1617,976.714,718.55
11.56%10.82%
2.74%14,350.013,626.70
2,146.38
2.02%
1,382.49
773.85
2,156.34
2,158.95
2.61
1,382.81
776.14
7.24
18.75
50.39
125.24
2,204.01
154,949.70
2010
10,0004,968.609,411.27
14,379.8757,751.8798,850.5089,106.2116,516.393,330.31
128,462.6527,735.81
106,439.8522,022.8014,379.87
9,003.512,137.211,687.81
12,828.533,790.183,553.297,343.475,213.33
271.735,485.065,492.225,485.064,980.053,233.09
134,608.80
12,114.79
15,123.23
3,008.44
11.23%
8.51%
2.72%
11,458.223,665.01
1,818.56
2.04%
1,257.59
530.25
1,787.84
1,793.11
5.27
1,262.81
530.30
256.42
258.75
49.22
116.84
2,124.20
126,338.45
Pubali Bank Limited Annual Report 2014
Key Financial Information
(BDT in million unless stated otherwise)
ParticularAsset QualityRequired provision for contingent liabilitiesProvision maintained for contingent liabilitiesCurrent assetsCurrent liabilitiesNet current assetsLong term liabilitiesLong term liabilities/current liabilitiesForeign Exchange BusinessImportExportForeign remittanceFinancial RatiosOperating profit ratioGross profit ratioOperating profit as a percentage of average working fundReturn on assets (ROA)Return on equity (ROE)Return on investment (ROI)Return on loans 8t advancesReturn on working fundReturn on earning assetsOperating profit per employeeNet profit per employeeOperating profit per branchNet interest margin as a percentage of working fundNet interest margin on earning assetsEfficiency ratioBurden ratioCost of depositYield on loans and advancesInterest spreadCost of fundNet spreadCost to income ratioDebt equity ratio (times)Current ratio (times)Net asset value per share (NAPVS) ( in BDT)Earnings per share (EPS) ( in BDT)Capital adequacy ratio (CAR)Credit deposit ratioCash reserve ratio/Liquidity ratioStatutory liquidity ratio (SLR)Medium term funding ratio (MTFR)Shares Information MatrixNumber of sharesEarnings per share (EPS) ( in BDT)Net asset value per share (NAPVS) ( in BDT)Market price per shareDividend:CashBonusOther InformationNumber of branches (in number)Number of employees (in number)Number of foreign correspondents (in number)
2014
475.38
476.80
145,461.32
130,756.89
14,704.43
94,770.23
0.72
97,516.90
77,071.30
43,541.70
27.63%
27.63%
48.16%
1.24%
13.43%
13.43%
2.05%
20.88%
1.53%
0.93
0.40
16.32
34.23%
2.51%
0.25%
1.59%
6.32%
11.49%
5.17%
9.74%
1.75%
24.77%
9.87
1.11
25.97
3.49
11.74%
77.67%
6.65%
22.12%
0.92
880,373,812
3.49
25.97
25.50
10.00
434
7,645
30
2013
457.38
464.30
139,407.49
120,550.70
18,856.79
87,677.57
0.73
97,380.40
69,484.40
38,947.60
30.96%
30.96%
40.09%
1.01%
11.35%
11.35%
1.68%
12.23%
1.23%
1.17
0.36
17.87
28.63%
2.89%
0.21%
1.20%
6.65%
12.58%
5.93%
10.17%
2.41%
20.63%
10.25
1.16
24.22
2.62
11.73%
76.99%
6.53%
24.04%
0.98
838,451,250
2.62
24.22
32.50
5.00
5.00
423
6,472
30
2012
401.52
414.30
118,388.68
104,712.36
13,676.32
69,430.87
0.66
108,120.30
59,004.80
41,239.90
29.53%
29.53%
44.86%
0.91%
9.37%
7.95%
1.44%
12.88%
1.12%
0.92
0.26
14.64
54.48%
4.75%
0.26%
1.74%
6.16%
13.70%
7.53%
10.77%
2.93%
25.87%
9.26
1.13
22.43
2.10
12.20%
81.15%
6.20%
18.38%
0.93
838,451,250
2.10
22.43
33.00
10.00
419
6,689
33
Z011
336.16
339.30
100,047.18
87,439.51
12,607.67
52,431.06
0.60
90,568.90
47,515.90
34,003.90
36.08%
36.08%
43.47%
2.00%
18.17%
17.70%
2.95%
24.91%
2.43%
0.88
0.50
13.50
50.08%
4.88%
0.26%
1.33%
4.63%
11.33%
6.70%
8.93%
2.40%
26.20%
8.09
1.14
25.77
3.75
11.56%
85.88%
6.00%
18.51%
0.92
670,761,000
3.75
25.77
50.50
5.00
25.00
406
6,219
33
2010
248.46
249.30
81,865.91
70,710.78
11,155.13
43,372.00
0.61
85,683.53
33,909.78
31,650.00
42.76%
42.76%
49.17%
2.44%
22.48%
12.94%
3.63%
28.98%
3.04%
0.99
0.58
13.75
46.73%
4.90%
0.28%
1.45%
3.83%
10.10%
6.27%
8.09%
2.01%
27.70%
7.93
1.16
28.94
4.82
11.23%
90.14%
6.28%
14.75%
0.93
496,860,000
4.82
28.94
106.00
5.00
35.00
399
5,534
33
Pubali Bank Limited Annual Report 2014
Horizontal & Vertical AnalysisOperating performance
(BDT in million unless stated otherwise)
Total revenueInterest expenses
Pa rt icu la r
Administrative & other expensesOperating profitProvisions excluding taxProfit before taxProvision for taxProfit after taxReserve fundRetained earningsEPS
201425,629.3612,200.116,347.867,081.39
898.126,143.503,073.373,070.131,228.701,841.43
3.49
201324,418.0011,821.245,036.967,559.802,173.015,386.793,081.252,305.541,077.361,228.18
2.62
201220,778.36
9,267.835,374.746,135.791,818.724,317.082,555.101,761.98
863.42898.56
2.10
201115,189.705,729.023,980.465,480.22
70.005,410.222,270.003,140.221,082.042,058.18
3.75
201012,828.533,790.183,553.295,485.06
505.004,980.051,746.963,233.09
996.012,237.08
4.82
2010
2011
2012
2013
2014
EPS
Operating Performance
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Retained earnings
I Profit after tax I Provision for taxProvisions excluding tax Operating profit
I Interest expenses I Total revenue
Reserve fundI Profit before taxI Administrative & other expenses
2010
2011
2012
2013
2014
Operating PerformanceTotal revenue
I Interest expenses
I Administrative & other expenses
Operating profit
I Provisions excluding tax
I Profit before tax
I Provision for tax
Profit after tax
Reserve fund
Retained earnings
I EPS
Pubali Bank Limited Annual Report 2014
Horizontal & Vertical AnalysisBalance Sheet
(BDTin million unless stated otherwise)
Cash in handBalance with Bangladesh Bank and its agent bankBalance with other banks and F|'sMoney at call and short noticeInvestmentsLoans and advancesFixed assetsOther assetsTotal Assets
Particular 20143,607.70
16,345.812,329.43
988.2948,970.73
149,974.534,024.58
22,145.07248,386.50
Z0134,186.60
15,312.861,566.37
568.8948,678.92
136,940.463,735.99
17,543.31228,533.77
Z0123,468.65
13,648.641,621.312,799.09
30,691.15122,068.52
3,502.8015,147.39
192,947.93
20112,376.589,368.981,592.112,359.29
19,069.27106,329.63
3,369.1912,688.27
157,153.71
20102,420.927,816.13
884.27119.49
16,516.3989,106.21
3,330.318,268.56
128,462.65
0% 2% 4% 6% 8% 1
Balance Sheet Analysis
ITotal shareholders‘ equity I Net current assets
Property, plant & equipment (Fixed Assets) Current liabilities
2010
2011
2012
2013
2014
0% 12% 14% 16% 18% 20%
2010
2011
2013
2014
Balance Sheet
I Cash in hand
I Balance with other banks and Fl's
I Fixed assets' I Other assets
I Total Assets
- I Loans and advances
_ Money at call and short notice2012 | I Investments
_ Balance with Bangladesh Bank and its agent bank
Pubali Bank Limited Annual Report 2014
Profitability, Dividend, Performance and Liquidity Ratios
Gross profit ratio
42.76%36.08%
30.96% 29.53%27.63% I I
Earnings before provision, depreciation and tax
(BDTin Million)
7,805.505,636.427,327-09 6,331.48
I ‘ I I 5,492.222014 2013 2012 2011 2010 2014 2013 2012 2011 2010
Current ratio (times)
1_15 1.161.14
1.13
1.11 I
Return on Capital employed
5.60%
4.50%
2.61%I Z-14% 2.00%
2014 2013 2012 2011 2010 2014 2013 2012 2011 2010
Return on equity (ROE)
22.48%
18.17%
13.43%11.35%I I 9.37%
Debt equity ratio (times)
10.259'87 9.26
‘ ‘ ‘ 809 7.932014 2013 2012 2011 2010 2014 2013 2012 2011 2010
Cost to income ratio
27.70%26 20%
24.77% 25-87% 'I 20.63% ‘ ‘
Efficiency ratio
025% 0.26% 0.26% 028%
‘ 0.21% ‘ ‘
2014 2013 2012 2011 2010 2014 2013 2012 2011 2010
Pubali Bank Limited l Annual Report 2014
Value Added Statementfor the year ended 31 December 2014
The value added statement provides a detailed account of total value addition and the distribution of thevalue created by the organization. Pubali Bank Limited contributes positively to socio-economicdevelopment by empowering employees through the payment of salaries and allowances; by payingattractive and consistent dividend to the providers of capital; by assisting the regulatory capacities throughpaying taxes and of course keeping in mind company's continuous expansion and growth.
Figures in BDT
2014 2013ParticularsAmount l % Amount l %
Value addedNet interest incomeCommission, exchange and brokerage, etc.Investment incomeOther operating incomeSub-total (a)
Cost of service rendered
Sub-total (b)
Total Value added by the bank (a-b)
Distribution of value added
5,034,039,0581,409,731,7075,987,807,463
997,675,201
37.4910.5044.59
7.43
5,399,645,5581,510,703,3134,899,691,551
786,719,178
42.8711.9938.90
6.2513,429,253,429 100.00 12,596,759,600 100.00
Provision for loans, investment, Off B/S items & etc.(2,272,377,570)
(898,120,000)(71.67)(28.33)
(1,822,233,312)(2,173,010,566)
(45.61)(54.39)
(3,170,497,570) (100.00) (3,995,243,878) (100.00)
10,258,755,859 8,601,515,722
EmployeesAs salaries and allowancesProvider of CapitalShareholdersGovernmentCorportate taxDeferred tax
Expansion and business growthStatutory resen/eDepreciation and repair of bank's assets
3,688,195,955
1,882,410,556
2,795,128,912278,238,424
3,073,367,336
1,228,699,563386,082,449
35.95
18.35
29.96
11.983.76
2,943,179,086
1,229,148,501
2,939,948,685141,304,692
3,081,253,377
1,077,358,271270,576,487
34.22
14.29
35.83
12.533.14
Total distribution 10,258,755,859 100.00 8,601,515,722 100.00
Market Value Added StatementUnlike EVA, which measures internal performance, market value added (MVA) is a measure ofexternal performance that indicate how the market has evaluated the company's performance interms of market value of shares compared to book value of shares. MVA is the differencebetween the market value of equity of the bank(s) and the book value of equity invested in thebank. A positive MVA indicates that the bank could add value to shareholders wealth. Thefollowing statement indicates the MVA at the year ended on 31 December 2014 and 2013 :
Figures in million TakaParticulars 2014 2013Market value of shares outstanding 8,529.15 6,965.61Book value of shares outstanding 7,112.37 6,771.95Market value added 1,416.78 193.66
Pubali Bank Limited Annual Report 2014
Economic value added (EVA) is the financial performance measure that attempts to measure the trueeconomic profit of an organization. It provides a measurement of the bank(s) economic success (or failure)over a period of time. Such a metric is useful for investors who wish to determine how well the bank hasadded value for its investors and it can be compared against bank(s) peers for a quick analysis of how wellthe bank is operating in its industry. Economic value added is calculated by taking the bank(s) net profitafter tax, adding with it, the amount of provision charged against profit to absorb the losses inherent inthe investments. EVA is calculated as under:
EVA= ( NPAT - Cost of average equity)
N PATNPAT is the net profit after tax plus the provision for doubtful losses charged against profit.
EqukyShareholders‘ equity is the total amount of equity the year end plus accumulated provision charged against profit for doubtfullosses.
Cost of equityIt is the opportunity cost i.e. the expected risk from return on investment, plus a risk premium. Interest on 5 years BangladeshGovernment Sanchaya Patra plus 1% risk premium has been assumed to be the cost of equity.
The following table indicates the EVA for the year from 2011 to 2014:
Economic Value added analysis
For the year ended 2014 2013
Figures in BDT
2012 2011Shareholders‘ equity at year endAdd : Accumulated provision for
loans,investments & Off B/S items etc.Total
Average shareholders‘ equityCost of equity (%)
22,859,377,335
6,225,258,582z9,084,635,9172s,159,142,952
13.20%
20,305,498,036
6,928,151,951z7,z33,649,98725,436,042,142
13.20%
18,804,700,02O
4,833,734,27623,638,434,29621,781,911,939
11.50%
17,283,143,339
2,642,246,24219,925,389,58118,361,629,018
11.50%
Economic Value Added 251,243,610 1,120,990,979 1,075,785,828 1,098,633,313Net profit after tax (before provision)Less : Cost of equity
3,968,250,4803,717,006,870
4,478,548,5423,357,557,563
3,580,705,7012,504,919,873
3,210,220,6502,111,587,337
Total operating incomeNet profit after tax
13,429,253,4293,070,130,480
12,596,759,6002,305,537,976
11,510,538,5481,761,981,044
9,460,681,5973,140,220,650
Key ratiosEVA/Total operating income (%)EVA/Average shareholders‘ equity (%)Net profit after tax/Total operating income (%)
1.870.89
22.86
8.904.41
18.30
9.354.94
15.31
11.615.98
33.19
N251.24
1.87
I2014 I2013 I2012 I2011 I2014 I2013 I2012 I2011
cn°QQ
I2014 I2013 I2012 I2011
15.31
I2013 I2012 I2011
Net profit afterEconomic Value Added EVA/Total operating EVA/A"°'=%° tax/Total operating
(in Minion) income (%) shareholders‘ equity (%) income (%)
Pubali Bank Limited Annual Report 2013
26 February 2015
The Board of DirectorsPubali Bank Limited26, Dilkusha Commercial AreaDhaka- 1000
SUB: CEO and CFO‘s declaration to the Board
In terms of the notification of Bangladesh Securities and Exchange Commission no.SEC/CMRRCD/2006-158/134/Admin/44 of 7 August 2012 we declare that for the financialyear ended 31 December 2014:
i) We have reviewed financial statements for the year and that to the best of our knowledgeand belief:
a) these statements do not contain any materially untrue statement or omit anymaterial fact or contain statements that might be misleading;
b) these statements together present a true and fair view of the company's affairs andare in compliance with existing accounting standards and applicable laws.
ii) There are, to the best of knowledge and belief, no transactions entered into by the Bankduring the year which are fraudulent, illegal or violation of the Bank's code of conduct.
-Md. Abdul Halim Chovr/day ayeed Ahmed FCA, ACMA, CGMAManaging Director 8: CEO General Manager 8: Chief Financial Officer
Pubali Bank Limited Annual Report 2014
Aziz Halim Khair Choudhury ACNABINChartered Accountants Chartered AccountantsPhulBari House BDBL Bhaban (Level-13 & 14)House No 25 12 Kawran Bazar Commercial AreaRoad No 1, Sector - 9 Dhaka-1215Uttara Model Town, Dhaka -1230
AUDlTORS' REPORT TO THE SHAREHOLDERS OF PUBALI BANK LIMITED
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Pubali Bank Limited and its subsidiaries(the “Group“) as well as the separate financial statements of Pubali Bank Limited (the “Bank“), which comprisethe consolidated and separate balance sheets as at 31 December 2014, and the consolidated and separate profitand loss accounts, consolidated and separate statements of changes in equity and consolidated and separatecash flow statements for the year then ended, and a summary of significant accounting policies and otherexplanatory information.
Management's Responsibility for the Financial Statements and Internal Controls
Management is responsible for the preparation of consolidated financial statements of the Group and alsoseparate financial statements of the Bank that give a true and fair view in accordance with Bangladesh FinancialReporting Standards as explained in notelf 2.32 and for such internal control as management determines isnecessary to enable the preparation of consolidated financial statements of the Group and also separate financialstatements of the Bank that are free from material misstatement, whether due to fraud or error. The BankCompany Act, 1991 and the Bangladesh Bank Regulations require the Management to ensure effective internalaudit, internal control and risk management functions of the Bank. The Management is also required to make aself-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances offraud and forgeries.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group and theseparate financial statements of the Bank based on our audit. We conducted our audit in accordance withBangladesh Standards on Auditing. Those standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether the consolidated financial statements ofthe 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 theconsolidated financial statements of the Group and separate financial statements of the Bank. The proceduresselected depend on the auditor's judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements of the Group and separate financial statements of the Bank, whether due tofraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation of consolidated financial statements of the Group and separate financial statements of the Bank thatgive a true and fair view in order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by management, as well as evaluating the overall presentation of the consolidated financialstatements 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 auditopinion.
Opinion
In our opinion, the consolidated financial statements of the Group and also separate financial statements of theBank give a true and fair view of the consolidated financial position of the Group and the separate financialposition of the Bank as at 31 December 2014, and of its consolidated and separate financial performance and its
Pubali Bank Limited Annual Report 2014
consolidated and separate cash flows for the year then ended in accordance with Bangladesh Financial ReportingStandards as explained in note# 2.32.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank Company Act, 1991and 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 werenecessary 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 Auditor'sResponsibility section in forming the above opinion on the consolidated financial statements of the Groupand the separate financial statements of the Bank and considering the reports of the Management toBangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under theManagement's Responsibility for the Financial Statements and Internal Controls:
i) internal audit, internal control and risk management arrangements of the Group and the Bank, asdisclosed in notelf 2.14 of the financial statements, appeared to be materially adequate;
ii) nothing has come to our attention regarding material instances of forgery or irregularity oradministrative error and exception or anything detrimental committed by employees of the Bank andits related entities other than matters disclosed in note # 2.15 of these financial statements;
(c) financial statements of a subsidiary, Pubali Bank Securities Limited, of the Bank have been audited byACNABIN, Chartered Accountants and the financial statements of another subsidiary, Pubali ExchangeCompany (UK) Limited, of the Bank have been verified by Mudabbir Hussain & Co, Chartered Accountantsand 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 faras it appeared from our examination of those books;
(e) the consolidated balance sheet and consolidated profit and loss account of the Group and the separatebalance sheet and separate profit and loss account of the Bank dealt with by the report are in agreementwith the books of account;
(f) the expenditure incurred was for the purposes ofthe Bank's business;
(g) the consolidated financial statements of the Group and the separate financial statements of the Bank havebeen drawn up in conformity with prevailing rules, regulations and accounting standards as well as withrelated 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 inthe 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 5,650 personhours for the audit of the books and accounts of the Bank.
an J‘:A. 3/magryAZIZ Halim Khair Choudhury ACNABIN
Chartered Accountants Chartered Accountants
Dated, Dhaka28 February 2015
Pubali Bank Limited Annual Report 2014
Consolidated Balance Sheet as at 31 December 2014
Property and Assets
CashIn hand (Including foreign currencies)Balance with Bangladesh Bank and its agent Bank(s)(Including foreign currencies)
Balance with Other Banks and Financial InstitutionsInside BangladeshOutside Bangladesh
Money at Call on Short Notice
InvestmentsGovernmentOthers
Loans, Advances and LeasesLoans, cash credits, overdrafts, etc.Bills purchased & discounted
Fixed Assets including Premises, Furniture & Fixtures
Other AssetsNon-banking Assets
Total Assets
Liabilities and Capital
LiabilitiesBorrowings from Other Banks, Financial Institutions & AgentsDeposits and Other AccountsCurrent accounts & other accountsBills payableSavings bank depositsTerm depositsOther depositsOther LiabilitiesTotal Liabilities
Capital /Shareholders‘ EquityPaid up capitalStatutory reserveRetained earnings (general reserve)Other reservesProfit and Loss account surplusForeign currency translation reserve
Non-controlling interestTotal Shareholders‘ EquityTotal Liabilities and Shareholders‘ Equity
N0162014Taka
2013Taka
3 (a)
4(a)
S
6 (a)
7 (a)
8 (a)
9 (a)10
1112 (a)
13 (a)
14.21516 (a)17 (a)18 (a)
19
19,953,501,902 19,503,092,1273,607,695,337
16,345,806,565
4,190,233,403
15,312,858,724
2,329,429,846 1,570,013,744941, 288,972
1,388,140,874740,835,024829,178,720
988,286,667
52,121,248,012
568,886,667
51,794,399,03639,184,326,57612,936,921,436
40,482,479,52811,311,919,508
148,592,358,958 135,483,374,690147,788,972,473
803,386,485134,249,125,738
1,234,248,952
4,026,742,698
20,657,803,938375,246
3,740,843,922
16,015,288,310375,246
248,669,747,267 228,676,273,742
3,376,775,986192,653,143,179
4,149,347,699177,650,064,102
20,721,644,3853,824,137,445
45,159,141,790118,197,230,889
4,750,988,670
17,868,885,6572,872,700,896
40,232,632,888112,266,906,063
4,408,938,59830,509,132,424 27,368,015,607
226,539,051,589 209,167,427,408
8,803,738,1208,400,249,4821,877,766,1703,048,941,282
8,384,512,5007,171,549,919
805,691,4453,145,966,838
1,125,04322,130,695,054
62419,508,845,745
58922,130,695,678 19,508,846,334
248,669,747,267 228,676,273,742
Pubali Bank Limited Annual Report 2014
Consolidated Balance Sheet as at 31 December 2014
Off-Balance Sheet ItemsContingent LiabilitiesAcceptances & EndorsementsLetters of guaranteeirrevocable letters of creditBills for collectionOther contingent liabilitiesTotal Contingent Liabilities
Other Commitments
2014Note 1-aka
2013Taka
20 7,036,861,64938,989,408,824
563,495,313948,646,848
5,818,362,05738,756,296,689
590,511,065573,081,000
47,538,412,634 45,738,250,811
Forward assets purchased and forward deposits placed -Undrawn note issuance and revolving underwriting facilities -Undrawn formal standby facilities, credit linesand other commitments
Documentary credits and shortterm trade related transactions - |
Total Other CommitmentsTotal Off-Balance Sheet Items including Contingent Liabilities
These financial statements should be read in conjunction with the annexed notes.
5 l-l- i rig ‘E!
Md. Abdul Halim ChowdhuryManaging Director
Dz Jim‘/14/.1‘. A. 3/MJZ07Aziz Halim Khair Choudhury
Chartered Accountants
Dated, DhakaFebruary 28, 2015
47,538,412,634 45,738,250,811
Q2. - ''
Azizur Rahman Rumana SharifDirector Director
Signed as per annexed report on even date
Hafiz Ahmed MazumderChairman
£1.-/l><'/»~...--_-7ACNABIN
Chartered Accountants
Pubali Bank Limited Annual Report 2014
Consolidated Profit & Loss Account for the year ended 31 December 2014
Operating IncomeInterest incomeLess: Interest paid on deposits, borrowings, etc.Net Interest IncomeIncome from investmentCommission, exchange and brokerageOther operating incomeTotal Operating IncomeOperating Expenses
Salaries and allowancesRent, taxes, insurance, electricity, etc.Legal expensesPostage, stamp, telecommunication, etc.Stationery, printing, advertisements, etc.Managing Director's salary and feesDirectors‘ feesAuditors‘ feesCharges on loan lossesDepreciation and repair of bank's assetsOther expensesTotal Operating Expenses
Profit/(Loss) before Provisions & Taxation
Provision for Loans, Advances, Investments and Other AssetsProvision for classified loans and advancesProvision for unclassified loans and advancesProvision for diminution in value of investmentsProvision for impairment clients‘ margin loanProvision for bad debt offsettingProvision for other assets
Provision for exposure of off-balance sheet itemsTotal ProvisionsLoss on disposal of subsidiaryForeign currency translation gainProfit/(Loss) before TaxesProvision for current tax 13.5 (a)Provision for deferred tax 13.5.1(a)Total Provision for TaxesNet Profit after TaxesProfit attributable to:Equity holders of parentsNon-controlling interestAppropriations :Statutory reserveRetained surplus (general reserve) carried forwardEarnings Per Share (EPS) Basic
Diluted
Note2014Taka
2013Taka
21 (a)22 (a)
23 (a)24 (a)25 (a)
26 (a)27 (a)28 (a)29 (a)30 (a)3132 (a)33 (a)
34 (a)35 (a)
36 (a)
37
44 (a)
17,329,810,38512,200,105,488
17,315,050,81511,821,238,722
5,129,704,8976,061,018,7821,477,942,355
998,852,669
5,493,812,0934,941,750,3351,586,503,650
793,045,97613,667,518,703 12,815,112,054
3,704,533,722505,191,312
13,944,85672,461,980
136,582,75211,498,3885,891,9012,868,1801,205,435
389,289,4451,563,456,781
2,954,120,811399,999,581
11,773,46267,187,516
128,270,64311,700,0005,814,8071,182,555
968,796273,114,689
1,225,004,1566,406,924,752 5,079,137,0167,260,593,951 7,735,975,038
806,299,53668,700,46486,844,54631,155,117
620,00010,000,000
2,123,010,566
10,010,110
1,003,619,66312,500,000
2,133,020,67650,000,000
1,016,119,663 2,183,020,676(23,9o9,649)
1,746,2516,222,310,890 5,552,954,3622,828,927,796
278,067,1752,939,948,685
181,401,1103,106,994,971 3,121,349,7953,115,315,919 2,431,604,567
3,115,315,88435
2,431,604,460107
3,115,315,919 2,431,604,5671,228,699,5631,886,616,356
1,077,358,2711,354,246,296
3.54 2.763.54 2.76
These financial statements should be read in conjunction with the annexed notes.
*,|. -I'I"- ’_ =.I"' .5
__ I H - _
Md. Abdul Halim Chowdhury Azizur Rahman Rumana SharifManaging Director Director Director
Signed as per annexed report on even dateDr Jfnm/24/J‘ A A/mflprAziz Halim Khair Choudhury/
Chartered AccountantsDated, DhakaFebruary 28,2015
Hafiz Ahmed MazumderChairman
flu.-/17>»Z-'2',’ACNABIN
Chartered Accountants
Pubali Bank Limited Annual Report 2014
N018Cash Flows from Operating ActivitiesInterest receipts in cashInterest paymentsDividend receiptsFees and commission receiptsRecoveries of loans previously written offCash payment to employeesCash payment to suppliersCurrent income tax paidReceipts from other operating activities 38 (a)Cash payments for other operating activities 39 (a)Operating Profit before Changes in Operating Assets & Liabilities
Cash Flows from Operating Assets & LiabilitiesStatutory depositsPurchase/sale of trading securitiesLoans and advances to customers (other than banks)Other assets 40 (a)Deposits to/from other banksDeposits from customers (other than banks)Other liabilities account of customersFC translation reserveOther liabilities 41 (a)Total lncrease/ (Decrease) in Operating Assets and LiabilitiesNet Cash from/(used in) Operating Activities
Cash Flows from Investing ActivitiesProceeds from sale of securitiesPurchase/ sale of property, plant & equipmentNet Cash from/(used in) Investing Activities
Cash Flows from Financing ActivitiesPayment for redemption of loan capital and debt securityReceipts from issue of loan capital and debt securityIssue of Share capitalDividend paidInvestment in Subsidiary CompanyNet Cash from/(used in) Financing Activities
Net lncrease/ (Decrease) in Cash and Cash Equivalents (a+b+c)Opening Cash and Cash EquivalentsClosing Cash and Cash Equivalents (d+e) 42 (a)
These financial statements should be read in conjunction with the annexed notes.
Consolidated Cash Flow Statement for the year ended 31 December 2014
2014Taka
2013Taka
22,878,735,408(12,200,105,488)
481,243,186914,954,61540,000,000
(3,716,032,110)(222,961,190)
(3,329,389,035)1,552,690,982
(2,221,417,747)
21,947,585,437(11,821,238,722)
303,569,7221,035,246,934
(2,965,820,811)(206,785,473)
(2,506,829,177)1,349,948,683
(1,688,765,985)4,177,718,621 5,446,910,608
1,287,169,787(1,610,054,263)
(13,103,994,498)(1,315,665,038)
(772,571,713)15,212,070,970(1,197,561,767)
(1,125,043)212,256,258
(15,115,707,439)(2,836,124,574)
(14,986,289,960)56,329,928
785,797,37827,459,366,628
233,929,184(58,698)
390,894,905(1,289,475,3o7) (4,o11,862,648)2,888,243,314 1,435,047,960
(529,809,863) (448,619,322)(5z9,809,863) (448,619,322)
($37,025,556)
(419,225,625)33,711,290
(838,451,250)(516,z51,181) (804,739,960)
1,842,182,270z1,885,247,964
181,688,67821,7o3,s59,z86
23,727,430,234 21,885,247,964
..- _ ,._Md. Abdul Halim Chowdhury Azizur Rahman Rumana Sharif Hafiz Ahmed Mazumder
Managing Director Director Director Chairman
Dated, DhakaFebruary 28, 2015
Signed as per annexed report on even date
4102Ir0PeRfluUnHAdG___H_mLkn8BMbUP
_EE‘__N___u
\_@_uE_‘_Nm_>_U@________<NcN_._
__BUw___QU__LS_w9583“
xllllwl
3%$3CO“LOQ2_Ug6___r_mEammUgwm
__8§_oggzg5N_N<
gfidg_MW8_q_H
mm
£R_$$___m_2
§_§fi_§
$___£_3
Egwfig
363::§_:$§w
£8_wN5:?E2038
__°§_____Dm___mm__~_>_
>__E_§o5E__mI___E<_u_>_
I
1
m_8~HUQEUUUQHm3353
8__H_E‘_£2_“R£R_Rq__H®2_£§__N___H___H$35mqgqfi_=qfi:$E_§_§_:
SHNE“
an_H\S_“_%gHHR_mwm_R3HmwfigfimfiEggg_§_£EggNm_$M§2_:
ggagggqg$3%q£fi;
gfivEgg
ACWNAQMWQ§_§_§_H§_§_§
§N_wmm_RO_HfigQégd
8_m_fi$Mm_mw
2~_§_§_=
gt‘
RN$8§2_:
§___g_fi___“m
:R_$_3
8_q£_&fi2
%_:fi_g__d
8___m_:_‘m£$
NSNkgE23%__%_>_O
Agmfl“gag_E%_>_Utwmg9n_MENI§g_m2:63Bgmm_wageEBBEW8EmF_2___
E;2“EEgg$2
E%_mo_aB$2\mwo_?_€__é5g"8pas“
E58m_____o:r_8_r_o_/_
$_tgo\_Q323co%%_€_J_Q_5w
UEUEUHBW$3E5~;o‘_n_2:EUUECMOUEHOEammO_figWCEM“U2
mm§§£__u___O_UE_m___w_H>HVCUt_JU
wEmEfi_H__>EBg€:_g2BE_38_wCoH_£%}___Q\___m
E@C__gU>C_g___&\_$>HEM6Eg_Hw____U<
$_Efi_o\_Q"6g_§___m>2heHgsg8%€_%___&__m
85885$“
5:8mc_E__OQgEmwcgo:3>a____N__HG3___W__w_fi__
E_§d_m_fi
5
g__£$_g__“_fi
gq__“g_g____~_
©=d£_RMw___u
~$_Q§_8_;
_§_§_§_Mw
22Hgmgat
:2§_E_3g_S33cm_£
335$833%;gnmaqéggqggd:m_§_:§_§§_E__m:8_§dn_§_§_§_2
mmmm
_£$m_":3gggmgzqgggg§_§_m2&3:gigAn£_§_mEafigog__fl_;_Q%_£m_2
Hmm_wmw_mm§m_mww_OmHVMw$dm5_Q;
EEK:Mw8_:@gfii
Amgmgi€$_m§_g$zqggwg§_§___mfig3%
$m_m$_wNN_H
oN®_mNN_§
gw_§fl§§8_|fl_§mfl_§_Mw
_Nm_m_g_8_|m_2
Q3
_‘m__H__§_§m_mn
mwmw_mw___afi:£
mag:
_‘m__}$__§_
®g__“__g_:1R8__m_fi__m£$
MSNEEmmi%__wt_>_D
Agmflmags_E%_>_Utwmg9n_MENIm2g_mm_Eg_*0gmm_w?_g2EBBBW8a“§__W‘____
E;WEL2Egg$2
>h%_3aV5*0$2_9__€_:E5g“O:o€£_m£_Qg
E58m_____o:r_8_r_o_/_
$_tgo\_Qvs23co%%_€_J_Q_5w
UEUEUHBW$3E5~;o‘_n_2:EUUECMOUEHOEammO_figWCEM“U2
mv>___“Um9_P_o_E_mr__~:UmB__°_H_$;_$fi9§
3g_22_%r_o_H_m_p_g>gg_S
S___mwE$gEM6g_§___W>2$0EDOHECoHE%\£__Q\___m
Eg_S_8>EgE&_8>“W2"6E@E§__U<
$_t2_o\_Q"6g_E__mw>2$0EggCoH_éF__u§_J_Q5m
8c_~_g“Egg
>u__oQmc_Eg8_~E$w_§_U“HON>a_EN__HHGUUCBNQ
:23%WEat
_B°___
§__8___m_____°=__8
z____3m_H5___Wn_
_U__%_>___“game_§O__O__“___2_6
mg__$2__°_:_m__g
_g__$2_22_m_mvgang_fl_%umM_______S_§__B3_>__2__Ew_________~fi_
2_w___§_g
As__W______m2__ME
QNQ__“__ULGEUUUOHmUUUCU$22:__O“_
>358“Emm_mC2_u"__°H_CUF_U“_fin__mUUH_fi_u__OmCOU
Pubali Bank Limited Annual Report 2014
Balance Sheet as at 31 December 2014
Property and Assets
CashIn hand (Including foreign currencies)Balance with Bangladesh Bank and its agent Bank(s)(Including foreign currencies)
Balance with Other Banks and Financial InstitutionsInside BangladeshOutside Bangladesh
Money at Call on Short Notice
InvestmentsGovernmentOthers
Loans, Advances and LeasesLoans, cash credits, overdrafts, etc.Bills purchased and discounted
Fixed Assets including Premises, Furniture & Fixtures
Other AssetsNon-banking Assets
Total Assets
Liabilities and Capital
LiabilitiesBorrowings from Other Banks, Financial Institutions & AgentsDeposits and Other AccountsCurrent accounts & other accountsBills payableSavings bank depositsTerm depositsOther depositsOther Liabilities
Total Liabilities
Capital / Shareholders‘ EquityPaid up capitalStatutory reserveRetained earningsProposed issue of bonus sharesOther reservesProfit and Loss account surplusTotal Shareholders‘ EquityTotal Liabilities and Shareholders‘ Equity
N0162014Taka
2013Taka
3
4
5
6
7
8
910
1112
13
14.21516
1718
19,953,501,902 19,499,4s9,1153,607,695,337
16,345,806,565
4,186,600,391
15,312,858,724
2,329,429,846 1,566,369,216941,288,972
1,388,140,874740,835,024825,534,192
988,286,667
48,970,725,727
568,886,667
48,678,919,86939,184,326,576
9,786,399,15140,482,479,528
8,196,440,341
149,974,530,667 136,940,462,369149,171,144,182
803,386,485135,706,213,417
1,234,248,952
4,024,576,168
22,145,071,507375,246
3,735,987,434
17,543,310,652375,246
248,386,497,730 228,533,770,568
3,376,775,986193,090,243,397
4,149,347,699177,878,172,427
21,156,902,3293,824,137,445
45,159,141,790118,199,073,163
4,750,988,670
18,079,808,9272,872,700,896
40,232,632,888112,284,091,118
4,408,938,59829,060,101,012 26,200,752,406
225,527,120,395 208,228,272,532
8,803,738,1208,400,249,4822,690,619,157
2,964,770,576
8,384,512,5007,171,549,9191,687,639,485
3,061,796,132
z2,s59,377,335 20,305,498,036248,386,497,730 228,533,770,568
Pubali Bank Limited Annual Report 2014
Balance Sheet as at 31 December 2014
Off-Balance Sheet Items Note2014Taka
2013Taka
Contingent LiabilitiesAcceptances & EndorsementsLetters of guarantee 20irrevocable letters of creditBills for collectionOther Contingent Liabilities
7,036,861,64938,989,408,824
563,495,313948,646,848
5,818,362,05738,756,296,689
590,511,065573,081,000
Total Contingent Liabilities 47,538,412,634 45,738,250,811
Other Commitments
Documentary credits and short term trade related transactionsForward assets purchased and forward deposits placedUndrawn note issuance and revolving underwriting facilitiesUndrawn formal standby facilities, credit linesand other commitmentsTotal Other CommitmentsTotal Off-Balance Sheet items including Contingent Liabilities 47,538,412,634 45,738,250,811
These financial statements should be read in conjunction with the annexed notes.
Md. Abdul Halim Chowdhury Azizur Rahman Rumana SharifManaging Director Director Director
Signed as per annexed report on even date
Z» Jim-r/44/J‘. A, C/mag;/7Aziz Halim Khair Choudhury
Chartered Accountants
Dated, DhakaFebruary 28, 2015
Hafiz Ahmed MazumderChairman
ACNABINChartered Accountants
Pubali Bank Limited Annual Report 2014
Profit & Loss Account for the year ended 31 December 2014
Note2014Taka
2013Taka
Operating IncomeInterest income 21Less: Interest paid on deposits, borrowings, etc. 22
17,234,144,54612,200,105,488
17,220,884,28011,821,238,722
Net Interest Income 5,034,039,058 5,399,645,558Income from investment 23Commission, exchange and brokerage 24Other operating income 25
5,987,807,4631,409,731,707
997,675,201
4,899,691,5511,510,703,313
786,719,178Total Operating Income 13,429,253,429 12,596,759,600Operating ExpensesSalaries and allowances 26Rent, taxes, insurance, electricity, etc. 27Legal expenses 28Postage, stamp, telecommunication, etc. 29Stationery, printing, advertisements, etc. 30Managing Director's salary and fees 31Directors’ fees 32Auditors‘ fees 33Charges on loan lossesDepreciation and repair of bank's assets 34Other expenses 35
3,676,697,567499,535,966
12,435,79871,874,937
136,220,87511,498,3885,385,9012,429,5801,205,435
386,082,4491,544,494,513
2,931,479,086396,214,761
11,433,12166,628,243
127,924,10911,700,0005,630,807
800,000968,796
270,576,4871,213,602,271
Total Operating Expenses 6,347,861,409 5,036,957,681
Profit/(Loss) before Provisions & Taxation 7,081,392,020 7,559,801,919
Provision for Loans, Advances, Investments and Other Assets 36Provision for classified loans and advancesProvision for unclassified loans and advancesProvision for diminution in value of investmentsProvision for bad debt offsettingProvision for other assets
806,299,53668,700,464
620,00010,000,000
2,123,010,566
Provision for exposure of off-balance sheet items 37885,620,000
12,500,0002,123,010,566
50,000,000Total Provisions 898,120,000 2, 173,010,566Less: Loss on disposal of subsidiary 39,774,204Profit/(Loss) before Taxes 6,143,497,816 5,386,791,353Provision for current tax 13.5Provision for deferred tax 13.5.1
2,795,128,912278,238,424
2,939,948,685141,304,692
Total Provision for Taxes 3,073,367,336 3,081,253,377Net Profit after TaxesAppropriations :Statutory reserveRetained surplus (general reserve) carried forward
3,070,130,480
1,228,699,5631,841,430,917
2,305,537,976
1,077,358,2711,228,179,705
Earnings Per Share (EPS) Basic 44 3.49 2.62Diluted 3.49 2.62
These financial statements should be read in conjunction with the annexed notes.
@ @~ _— -*|" ".- I '
Md. Abdul Halim Chowdhury Azizur Rahman Rumana SharifManaging Director Director Director
Dz .70»:/44/J‘. 4. A/mflpiAziz Halim Khair Choudhur
Chartered Accountants
Dated, DhakaFebruary 28, 2015
Signed as per annexed report on even date
Hafiz Ahmed MazumderChairman
@8-/i>~'/»..--1-.-'ACNABIN
Chartered Accountants
Pubali Bank Limited Annual Report 2014
Cash Flow Statement for the year ended 31 December 2014
Note2014Taka
2013Taka
a Cash Flows from Operating ActivitiesInterest receipts in cashInterest paymentsDividend receiptsFees and commission receiptsRecoveries of loans previously written offCash payment to employeesCash payment to suppliersCurrent income tax paidReceipts from other operating activities 38Cash payments for other operating activities 39Operating Profit before Changes in Operating Assets & Liabilities
Cash Flows from Operating Assets & LiabilitiesStatutory depositsPurchase/sale oftrading securitiesLoans and advances to customers (other than banks)Other assets 40Deposits to/from other banksDeposits from customers (other than banks)Other liabilities account of customersOtherliabilities 41Total lncreasel (Decrease) in Operating Assets and LiabilitiesNet Cash from/(used in) Operating Activities
b Cash Flows from Investing ActivitiesProceeds from sale of securitiesPurchase /sale of property, plant & equipmentNet Cash from/(used in) Investing Activities
c Cash Flows from Financing ActivitiesPayment for redemption of loan capital and debt securityReceipts from issue of loan capital and debt securityInvestment in subsidiary companyDividend paidNet Cash from/(used in) Financing Activities
d Net lncrease/ (Decrease) in Cash and Cash Equivalents (a+b+c)e Opening Cash and Cash Equivalentsf Closing Cash and Cash Equivalents (d+e) 42
These financial statements should be read in conjunction with the annexed notes.
22,783,069,569(12,200,105,488)
438,882,440846,743,967
40,000,000(3,688,195,955)
(222,961,190)(3,329,389,035)1,520,662,941
(2,191,002,407)
21,853,418,902(11,821,238,722)
267,156,929959,446,597
(2,943,179,086)(206,785,473)
(2,506,829,177)1,337,975,894
(1,670,201,969)3,997,704,842 5,269,763,895
1,287,169,787(1,575,011,145)
(13,034,o68,298)(1,300,209,801)
(772,571,713)15,212,070,970(1,192,571,997)
71,156,768
(15,115,707,439)(2,876,639,718)
(14,871,944,015)113,355,833785,797,378
27,459,366,628249,733,507335,885,700
(1,3o4,035,429) (3,9zo,152,1z6)2,693,669,413 1,349,611,769
(534,290,591) (449,978,437)(534,z90,591) (449,978,437)
(97,025,556)
(2,659,724)(419,225,625)
33,711,290(2,442,530)
(838,451,250)($18,910,905) (807,182,490)
1,640,467,91721,649,862,o99
92,450,84221,557,411,257
23,290,330,016 21,649,86Z,099
61- -"*5 }212’_' J_ sic 49- I ' _
Md. Abdul Halim Chowdhury Azizur Rahman Rumana Sharif Hafiz Ahmed MazumderManaging Director Director Director Chairman
Signed as per annexed report on even date
Dated, DhakaFebruary 28, 2015
4102trOPeRNUHHAdG___H_mLkH8BMbUP
___NE____m__U__28___fi___BU9__n_
$UE3_~_>__8E:<E2;t\_g_wg_~E__”____E_______$_=_N_N<
3%CU>U___OHLOQUL_§a____mL3mmBéw
§_:___§_g
§_m§€8£
$_‘_q$_gq__
g_§_=E
g_h_=q_‘££
mgQ>_m___§mv_m__D633
h2uU__Em___M§_>_
>5£_u>>or_UE__m____3B<_U_>_
I
1
MHON__2_____8gHm“N8g_£
€m_S_\§_E_§_R3Rag“figR6_§_§Eqfifiavfiv§§K_§_2
§_§_§Azqfifigv§_§_Mw§U__m
€mN_§_MwgmON_m:\wNN_HQg_:qR§J
E_mmm_Ro_HQQH25$
8mm_fiQ§_MW
2q_VE__“g_fi
§_§_z§
O8_H_;_Rfi___
§$_H2_;H_@
g_h_=q_‘££
NSN___m_§§%_>_O
$32ggaE_%_>_Ug8%\_fl_
N8N'm_V‘_2_m“203*0$5;gag>__2B$%8§w____E
_$>2:6*EOE$2
$EwQ°__QE23Co%_v_%\g_Q\__Jm
Eméfifim$3E5Ep_n_mgE_9_&_F_mo$_SC$$o_Ea2%$2
wmU__g£_Ur_o_$_wg__H>2§__3
$___UEH$>EB__o_§___W>2UsE1_o8_~Co%_v_%\g_Q___Jm
H__6EH_$>ECo5%5%HEhoEUEH_2___U<
gzaaoa3___o_H£___gEBE___o8@Co%_v_%\g_&_Jm
8928gfiwg
§_oQm____E___8gEgmflgcMEN>__2___2Hgm8§_g
§§$_§_a
m_G6R__‘g£
E_2g$£
§_§_8§
__g_§_m_§
mg3%mgat
:8__gE8g_S“N8F_~_mm
fifimgi$Q§_Mwm€:qg_N_:%€§_§_mE5562“gqg_}g\g
Afi£_§_mEaggmvgfidgiugfi
Tflgglmmdisgfimggi:m_§_§:gN§_mw_§J
$m_m$_wNN_H2q§€:N
o$_mNN_g§_fi$Mw$
£___2}___m__§
gHd2___H8£
§_a_§J
q_Hq9E___K__H§
H_8_N_H__N%£
MENheE5%_9_%_>_Q
Agwfl2:68_g_%_>_UU$°Q9_n_28_ggwwagU6262gag>_B3§B__%g__h
Em;2:_2tusa$2
wggaoaB23Co%_v_%\g_QSm
EUEBBW83E5EOE2:EV2582Hg$82E52%$2
mm_2_E§_U__o_HE_wF__p_H55:3
mEg_H$>___Bg_§%>EUs“gagCo%_U_%\g__§m
E9S$>ECo5%_$>H5$0HgE§__U<
$_t39Q*0g_u§__m>2BEIOHECo%_U_mw_U\g_&_Jm
8&8_H_2§m_”_
5:8m___E_68_mEmmgfiSON>322HG85$
323%mgL8
_2°___
_v___g_>__U_5mO__O__n_
wU>__UmU____2__U_°
_g_m_wU___g_____%_wMr__r___$__2__s2_
g__"__$__>__s__¥£m
EE8____|___:_
£___“____~n_
_g_N___E$____w_“__
33_g_E8wn_HmfigsE9»QtL2>“______um_Egmfiflsu$0“_____wEUHB_m
4102Ir0peRdUHHAdE___HMLkH8BM“bUP
8%gs___OPLOQUL_aXgr_mL3mm8___m_m
__E__E_2_U‘_SUU___fi___BU@___n_
\_%E_:mW_>_€________<NE_H_._E96_WgE3_geigSN_N<mqpngqm
S_“__$H_““_$§
$$$_m_$£
fin:q__"_g__‘
gq8q_fi_g__‘
2_6_:q2N€
__§_3E$_§
:_‘_gq__U8_$
_R__m_g$g£_‘
$5g__§_:
M§__§_gq£
g_§5dg__$
gqgHd8_28qm&d8_fim2ggtfififi
_m$dgd:§w_Da_Q§_N
Sqgqgqg§_§_£qm
gdgdmfiEH_£_m_§H$
®£\_Nmdm_£
:Kd_g_gZ“A_mm_£qM§_gm§fiR_mKQ_m
__m_R§M§§
_h__K_fiN_:q__U__m
g$m___$__m_$
g___9_____mdfi_R
mK_M_8_‘_:q8
Mfigggqg
EdaB_m_:©_QH_m£Hd$_§q_NR6d_m__RqgHmfifigag§_£q§mvgggmagq§_§w_2
£NR_mgfidfifimqfi§_H$__N8fi§_§_§§agm_:m_m
£_Nd$N$_Hm_n$_§w_$mq$W_M§&_‘Qxfigmg_N$_EUM_m
8mw_m_N_§fivgwgdmmwgqgdgagdmqmqgmfi§_§_g
MwmwdggiNfi_g_Nd8_:_Ng_‘mm€£_:Nmwqgfimws
fiU:__fi__mmREm___KdB_gg_mwq§RggqggMw_2R§€ga_:m__m_mw_2
SON_wN>__~__5w“_QED_§mn_
__°§___Em___m§_>_
>=E_E<§_UE__~I____§_E>_
I
I
Q8>%____5“Q2_$_H___n_m:_~__°___
8_H___%___6:6HMCO_2>Efi_
gggg
“Em?MW2o_H3_§__
_g_Lg_“__$_C_mm___w£OE2&r_;>otom_
H$E__g_|_382_s_B
“$3/_\w____v___g_r_o_/_
m$mm<EEO
mEBX_H_
um23_r_S“__mm_w_E9_&mC_g_g_$32_8XE
$2___N>gQmr_8|_
mEwEH$>r__
8:02togco:8E>Uco_>_
w__o_§_§__
__N_UCE__“_cgmv____mm_$50£_>>m8C_m__mm
E2E£8
382
_20___EH228>mgg_<
Ea“magm_HEBm__u__°ENH_M
_______2
EH2EEOEM_H5:08H=2:EOE“Ozm_a____u_tg
EONLQQEUUUDHmUOUCUEm;Qthe
?_;_m=~>H___3~E$E__n~__“ENfloamvEwes“:>H_2___El_
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
1 The Bank and its activities
Entity
Pubali Bank Limited (the Bank) was incorporated in the year 1959 under the name and style of EasternMercantile Bank Limited under Companies Act 1913. After the country's liberation in 1971, the Bankwas nationalised as per policy of the Government of Bangladesh under the Bangladesh Bank(Nationalisation) Order 1972 (PO No. 26 of 1972) and was renamed as Pubali Bank. Subsequently, theBank was denationalised in the year 1983 and was again incorporated in Bangladesh under the nameand style of Pubali Bank Limited in that year. The government transferred the entire undertaking ofPubali Bank to Pubali Bank Limited, which took over the same as a going concern.
Principal activities
The Bank engages in all types of commercial banking services as laid down in Banking Companies Act1991 and directives received from Bangladesh Bank from time to time. It has 434 branches all overBangladesh. It is listed in the stock exchange of Dhaka and Chittagong as a publicly-traded company.
Capital structure of the Bank
The authorised capital of the Bank is Taka 20,000,000,000 divided into 2,000,000,000 ordinary sharesof Taka 10 each which was increased from Taka 10,000,000,000 divided into 1,000,000,000 ordinaryshares of Taka 10 each.The face value of each share has also been changed to Taka 10 each from Taka100 vide special resolution passed in the extra ordinary general meeting held on 6 May 2010 and 15July 2010 respectively. Details of share capital are given in note no. 14.
Significant accounting policies and basis of preparation of financial statements
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 theBank are prepared on a going concern basis under historical cost convention, and in accordance withFirst 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 FinancialReporting Standards adopted in Bangladesh as Bangladesh Accounting Standards (BAS), andBangladesh Financial Reporting Standards (BFRS), the Companies Act 1994, the Bangladesh Securitiesand Exchange Rules 1987 including those that have been so far adopted by the Institute of CharteredAccountants of Bangladesh. Wherever appropriate, such principles are explained in succeeding notes.
2 1 1 Loss on striking off Pubali Exchange Company (UK) Limited
The Board of Directors of Pubali Bank Limited, the parent company of the wholly owned subsidiary’Pubali Exchange Company (UK) Limited decided to close down the company by getting it ‘struck off’the Companies Register instead of voluntary liquidation. For getting it struck off, it fulfils all theconditions required as under:
i. Hasn't traded or sold of any stock in the last 3 months;ii. Hasn't changed names in the last 3 months;iii. Isn't threatened with liquidation;iv. Has no agreements with creditors, e.g. Company Voluntary Agreement (CVA)
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
The company ceased its commercial operations from 2 December 2014 and treated the assets andliabilities at net realizable value as per BFRS 5 —Non-current Assets held for sale and DiscontinuedOperation. The financial statements for the year then ended as on 31 December 2014 were preparedon ‘break up’ basis instead of going concern. The earlier year comparatives were prepared on ‘goingconcern’ basis, presented meant not for comparative but for presentation only.
The fully owned subsidiary ‘Pubali Exchange Company (UK) Limited discontinued its operation from 2December 2014 for striking off the company from Companies Register, UK. As per Board decision ofparent company all payables to third parties would be paid by the parent. At the close of theoperation, total investment of parent company to this subsidiary was Tk. 30,497,705 and accumulatedloss reached to Tk. 39,774,204. The investment in subsidiary was struck off from parent companyrecords and all losses charged to statement of comprehensive income of parent company. Thebalancing amount remained payable by parent company to employees and third parties of UKsubsidiary.
Basis of consolidation
A separate set of records for consolidating the Balance Sheet and Profit and Loss Statement of thebranches are maintained at the Head Office of the Bank based on which these financial statementshave been prepared.
Islamic Banking Window
Islamic Banking Window has maintained a separate set of books and records for its operations. Allassets and liabilities and income and expenses of that window are incorporated in similar heads ofaccount of the Bank's financial statements. A separate financial statements, Balance Sheet and Profitand Loss Statement of Islamic Banking window is shown separately as per Bangladesh Bank BRPDcircular no. 15 dated 09 November 2009. Bases of distribution of profit and fixation of final rate ofIslamic Banking Operations for the year 2014 are enclosed as Annex D.
Use of estimates and judgments
The preparation of the financial statements in conformity with BFRS requires management to makejudgments, estimates and assumptions that affect the application of accounting policies and reportedamounts of assets, liabilities, income and expenses. The estimates and associated assumptions arebased on historical experience and various other factors that are believed to be reasonable under thecircumstances, the results of which form the basis of making the judgments about carrying amounts ofassets and liabilities that are not readily apparent from other sources. The estimates and underlyingassumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised inthe period in which the estimate is revised, if the revision affects only that period, or in the period ofthe revision or future periods, ifthe revision affects both current and future periods.
Foreign currency transactions
i. Functional and presentational currencyFinancial statements of the Bank are presented in Taka, which is the Bank's functional andpresentational currency.
ii. Foreign currency translationForeign currency transactions are converted into equivalent Taka currency at the ruling exchangerates on the respective dates of such transactions as per BAS-21 "The effects of Changes in ForeignExchange Rates".
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
Assets and liabilities in foreign currencies at 31 December 2014 have been converted into Takacurrency at the average of the prevailing buying and selling rates of the relevant foreign currenciesat that date except "Balances with other Banks and Financial Institutions" which have beenconverted as per directives of Bangladesh Bank vide its circular no. BRPD(R) 717/2004-959 dated 21November 2004.
Differences arising through buying and selling transactions of foreign currencies on different dates ofthe year have been adjusted by debiting/ crediting exchange gain or loss account.
. CommitmentCommitments for outstanding forward foreign exchange contracts disclosed in these financialstatements are translated at contracted rates. Contingent liabilities/commitments for letter ofcredit, letter of guarantee and acceptance denominated in foreign currencies are expressed in Takaterms at the rates of exchange ruling on the date of balance sheet.
2 6 TaxationIncome tax expense represents the sum ofthe current tax and deferred tax.
2 6 1 Current tax
The current tax payable is based on taxable profit for the year. Taxable profit differs from profit asreported in the Profit & Loss Account because it excludes items of income or expense that are taxableor deductible. The Bank's liability for current tax is calculated using tax rates that have been enactedor 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 afterconsidering some of the add backs of income and disallowances of expenditure as per Income TaxOrdinance 1984.
2 6 2 Deferred tax
Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxabletemporary differences. Deferred tax assets are the amount of income taxes recoverable in futureperiods in respect of deductible temporary differences. Deferred tax assets and liabilities arerecognised for the future tax consequences of timing differences arising between the carrying valuesof assets, liabilities, income and expenditure and their respective tax bases. Deferred tax assets andliabilities are measured using tax rates and tax laws that have been enacted or substantially enacted atthe date of Balance Sheet. The impact on the account of changes in the deferred tax assets andliabilities has also been recognised in the Profit and Loss Statement as per BAS 12 "lncome Taxes"(Note# 13.5.1).
Assets and basis of their valuation
2 7 1Cash and cash equivalents
Cash and cash equivalents include currency notes and coins on hand, balances held with BangladeshBank and most liquid financial assets which are subject to insignificant risk of changes in their fairvalue, and are used by the Bank to meet its short term obligations.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2.7.2
2.7.2.1
2.7.2.2
2.7.3
Investments
Investment in Govt. securities are initially recognized at cost, being fair value of the considerationgiven, including acquisition charges associated with the investment. Premiums are amortized anddiscounts accredited, using the effective yield method and are taken to discount income. Thevaluation methods of investments used are:
Held to maturity (HTM)
Investments which have fixed or determinable payments and are intended to be held to maturity, are classifiedas held to maturity. These investments are subsequently measured at amortized cost, less any provision forimpairment in value. Amortized cost is calculated by taking into account any discount or premium onacquisition. Any gain or loss on such investments is recognized in the Profit and Loss Statement when theinvestment is derecognized or impaired as per BAS 39 ‘Financial Instruments: Recognition and Measurement’.
Held for trading (HFT)
The securities under this category include those acquired by the Bank with the intention to trade by takingadvantages of short term price/interest movement, and the securities those are classified as HFT by the Bankheld in excess of statutory liquidity reserve (SLR) net of cash reserve requirement (CRR), at a minimum level.Investments classified in this category are principally for the purpose of selling or repurchasing on short tradingor if designated as such by the management. In this category, investments are measured at their fair value andany change in the fair value i.e., profit or loss on sale of securities in HFT category is recognized in the Profit andLoss Account.Value of investment has been enumerated as follows:
Item Applicable accounting value
At market valueAt market valueAt cost priceAt market valueAt cost value
Government treasury billsGovernment treasury bondsPrize bondsApproved debenturesShares and debentures
Investment in shares and debenture are valued at cost. Adequate provision is made for shortfall in market valueof shares and debentures over their cost price.
Loans and advances
(a) Interest on loans and advances is calculated on a daily product basis but charged and accountedfor quarterly on accrual basis. Interest on classified loans and advances is kept in interestsuspense account as per directives of Bangladesh Bank and such interest is not accounted for asincome until realized from borrowers.
(b) Interest is not charged on bad and doubtful loans and advances from the date of filing moneysuits against the borrowers.
(c) Provision for loans and advances is made on the basis of periodical review by the managementand of instructions contained in Bangladesh Bank's BCD circular nos. 34 of 16 November 1989,20 of 27 December 1994 and 12 of 04 September 1995 and BRPD circular nos. 16 of O6December 1998, 9 of 14 May 2001, 2 of 15 February 2005, 9 of 20 August 2005, 17 of 6December 2005, 5 of 5 June 2006 and 5 of 5 April 2008, 32 of 27 October 2010, O7 of 14 June
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2012, 14 of 23 September 2012, 19 of 27 December 2012, 5 of 29 May 2013 and 16 of 18November 2014 respectively at the following rates:
(i) General provision on unclassified loans and advances Rate
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 biz. 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/M Bs/Sds 2%Special mention account HF and LP 2%Special mention account Consumer's loan scheme other than HF &LP 5%
(ii) 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 are written off to the extent that there is no realistic prospect of recovery,and against which legal cases are pending for more than five years as per guidelines ofBangladesh Bank. These write offs, however, will not undermine/affect the claim amountagainst the borrowers. Detailed memorandum records for all such written off accounts aremeticulously maintained and followed up.
2.7.4 Fixed assets and depreciation
(a) Fixed assets other than land are stated at cost/revalued price less accumulated depreciation.
(b) Depreciation is charged at the rates prescribed by Bangladesh Bank on reducing balance method with theexception of Computers & Accessories, Machinery & Equipments and Motor vehicles on which straight-line method is applied.
(c) Cost of lifts is included in machinery and equipment and depreciated on straight line method.
(d) Upon sale or disposal of any item of fixed assets, no depreciation is charged in the year of its sale or disposal, thenet book value is eliminated from accounts and any resulting gain or loss is transferred to Profit & Loss Account.
(e) Full year's depreciation at applicable rates is charged on additions to fixed assets during the period from 1stOctober of the previous Year to 30th September of the current Year.
Category of asset Method Rate of Depreciation
Freehold Land N/A -Leasehold Land Fixed -Buildings Reducing Balance 2.50%
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2.7.5
2.7.6
2.8
2.9
Category of asset Method Rate of DepreciationFurniture and Fixtures Reducing Balance 10%Machinery and Equipments Straight Line 20%Computers and Computer Accessories Straight Line 30%Motor Vehicles Straight Line 20%
Other assets
Provision for other assets is made as per BRPD circular no. 14 of 25 June 2001.
Lease finance
Leases are classified as finance leases of the Bank as per BAS 17 "Leases" . Amount due from leasesunder finance leases are recorded as receivables as the amount of the Bank's net investment in theleases (note 7.13). Finance leases income is allocated to accounting periods so as to reflect aconstant periodic rate of return on the Bank's investment outstanding in respect of the leases. Nodepreciation has been charged for such leases in the account.
Retirement benefits to the employees
a) Provident fund
The Bank operates a contributory provident fund for its eligible employees. The Commissioner ofIncome Taxes, Dhaka has approved the provident fund as a recognized provident fund as per section2(1) of Part B of the First Schedule of Income Tax Ordinance 1984. The Fund is administered by aBoard of Trustees consisting 3 (three) members and funded by contributions both from employeesand Bank @10% of basic salary. Interest earned from the investment is credited to the members’accounts annually. Provident fund benefits are given to the employees of the Bank in accordancewith provident fund rules ofthe Bank.
b) Gratuity
The Bank has been maintaining an employee gratuity fund in the name of Pubali Bank LimitedGratuity Fund under which benefits are given to the staff of the Bank in accordance with therules of gratuity fund. National Board of Revenue has approved the gratuity fund as a recognizedgratuity fund vide their letter no. 6(16) /2007/822 of 14 November 2007. The Fund is operatedby a Board of Trustees consisting 5 (five) members of the Bank.
Revenue recognition
The revenue during the year is recognized as follows which satisfy all conditions of revenuerecognition as prescribed by BAS 18 "Revenue".
(i) Interest is calculated on daily product basis on unclassified loan and advances but charged on aquarterly basis.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2.10
2.11
2.12
2.13
2.14
(ii) Interest is charged on classified loans and advances as per Bangladesh Bank's BRPD circular no. 16of 06 December 1998 and other related circulars and such interest is not taken into income.
(iii) Dividend income is recognized when shareholders‘ right to receive is established.
(iv) Commission and discount on bills purchased and discounted are recognized at the time ofrealization.
Cash flow statement
Cash Flow Statement is prepared principally in accordance with BAS-7 "Cash Flow Statement" underdirect method as per guidelines of BRPD circular no. 14 dated 25 June 2003. The Cash FlowStatement shows the structure of and changes in cash and cash equivalents during the financial year.It reported cash flows during the period classified by operating activities, investing activities andfinancing activities.
Statement of liquidity
The liquidity statement has been prepared in accordance with the remaining maturity period of thevalue of the assets and liabilities as on the reporting date as per the guidelines of Bangladesh BankBRPD Circular No 14 of 25 June 2003.
Statement of changes in equity
Statement of changes in equity is prepared in accordance with BAS-1" Presentation of FinancialStatements" and under the guidelines of BRPD circular no.14 dated 25 June 2003.
Reconciliation of books of account
Books of account in regard to inter-bank (inside Bangladesh and outside Bangladesh) and inter-branchtransactions are being regularly reconciled. The Bank however, formed a task force to take positivesteps to eliminate the long outstanding inter-branch entries within the shortest period of time.
Risk Management
The risk of the Bank may be defined as the possibility of losses, financial or otherwise. The riskmanagement 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 Riskand Information Technology Risk. Moreover, Residual Risk, Credit Concentration Risk, Liquidity Risk,Reputation Risk, Strategic Risk, Settlement Risk and Environmental & Climate Change Risk are alsobrought into consideration. Success or failure of the Bank depends to a great extent on properidentification and minimization of these risks. The prime objective of the risk management is thatBank takes adequate measures to confront risk with a view to safeguarding the Bank's capital, itsfinancial resources and profitability. A separate Risk Management Unit (RMU) was formed headed byDeputy Managing Director where all the General Managers & Division Heads of Head Office are themembers and the Division Head, Internal Control & Compliance Division is the member secretary.The Committee is responsible to our Honorable Managing Director for compliance andimplementation of the decisions. Monthly meeting of Risk Management Unit is arranged regularlywhere different risks are discussed and decisions are gradually implemented. Minutes of RiskManagement Unit meeting along with risk management papers are submitted to Bangladesh Bank
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
on quarterly basis. As a part of risk management, adequate capital is maintained against Credit Risk,Market Risk and Operational Risk under Basel-II accord. Under the second pillar of Basel-II, aSupervisory Review Process (SRP) team has been formed to review, monitor and maintain adequatecapital considering all relevant risks. Quarterly Stress Testing is conducted to assess the impact ofdifferent risks associated with banking business on asset, liability & ultimately on capital and thereport is submitted before the Board of Directors and to Bangladesh Bank reguIarIy.As per BRPDCircular no. 11 dated 27 October, 2013 a Risk Management Committee of the Board was formed andthe Committee has started its operation complying with the instructions of Bangladesh Bank.
a) Credit Risk Management
Credit risks is one of the major risk faced by the bank. This can be described as potential loss arisingfrom the failure of a counter party to perform as per contractual agreement with the bank. Thefailure may result from unwillingness of the counter party or decline in his/her financial condition.Therefore, Bank's credit risk management activities have been designed to address all this issue.The bank has segregated duties of the Officers/Executives involved in credit related activities.Credit approval, Credit Administration, Monitoring and recovery function have been segregated.For this purpose, separate divisions have been formed at Head Office. These are Credit Division;Credit Administration, Monitoring and Recovery Division (CAM&RD) and Law Division. SimilarlyRegional Offices and Corporate Branches are also separated their works of sanctioning,disbursement, monitoring and recovery. Credit division is entrusted with the duties of maintenanceasset quality, assessing risk in lending to a particular customer, sanctioning credit, formulatingpolicy/strategy for lending operation etc.
A thorough assessment is done before sanction of any credit facility at credit division, Head Office;Regional Office & Corporate Branch. The risk assessment includes borrower risk analysis, financialanalysis, industry analysis, historical performance of the customer, security of the proposed creditfacility environmental risk etc. All credit proposals have been placed in credit committee forrecommendation to sanction or decline. Additional/Deputy Managing Director is the chairman ofthe credit committee. Loans exposure beyond the discretionary power of Managing Director areplaced before the Board of Directors of the Bank for sanctioning. Concentration of credit riskmanagement is shown in note 7.5, 7.6, 7.7 & 7.8
In determining single borrower/large loan limit, the instructions of Bangladesh Bank are strictlyfollowed. Internal audit is conducted on periodical interval to ensure compliance of Bank's andRegulatory policies. Loans are classified as per Bangladesh Bank's guidelines. Concentration ofsingle borrower/large loan shown in note 7.9
b) Foreign Exchange Risk Management
The foreign exchange risk arises from transaction involvement in any other nation currency; it alsomay be occurred when a bank holds assets or liabilities in foreign currencies and impacts theearnings and capital of bank due to the fluctuations in the exchange rates. Providing major foreignexchange related transactions are carried out on behalf of customer (against underlying L/Ccommitments and other fund requirements) thus bank has minimal exposure to the captioned risk.Treasury Division reviews the market conditions, exchange rates, exposure and transactions ondaily basis in fixation of foreign exchange rates to mitigate Foreign exchange risk. It is mentionablethat bank do not involve in any speculative transactions.
Our Treasury Division independently engages in the foreign currency transactions through foreignexchange (Fx) market and back office is responsible for verifying the deal and passes the necessaryaccounting entries. All foreign exchange transactions are revalued at mark-to-market rate on every
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
month end as advised by Bangladesh Bank. All nostro accounts are reconciled on monthly basis andoutstanding entries beyond 30 days are reviewed by management for settlement. The bankmaintains the daily exchange position within the stipulated limit prescribed by Bangladesh Bank.
Asset Liability Management
The Asset Liability Committee (ALCO) of the Bank monitors market risk and liquidity risks of the Bank. Themarket risk is defined as potential change in earnings due to change in rate of interest, foreign exchangerates which are not of trading nature. ALCO reviews liquidity requirement of the Bank, the maturity ofassets and liabilities, deposit and lending, pricing strategy and the liquidity contingency plan.
Prevention of Money Laundering
Money Laundering Risk arises from non-compliance of money laundering related instructions of theregulatory body. It's consequence are dire & far reaching and may be in the form of financialpenalty, reputation loss, legal harassment and even the risk of sustainability. Weakness in moneylaundering 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 inmoney laundering & terrorist financing, the regulatory bodies may impose restrictions in expansionof business and Bank may lose the market share. Banks around the globe may be unwilling toestablish correspondent banking relationship if money laundering prevention and combatingterrorist financing status are not upto the mark. The following initiatives have been taken by ourBank to comply with the requirements of Bangladesh Bank:
Central Compliance Unit (CCU) at Head Office, Regional Compliance Unit (RCU) at Regional Officesand Branch Compliance Unit (BCU) at branch level have been formed headed by Chief Anti-MoneyLaundering Compliance Officer (CAMLCO), Regional Anti-Money Laundering Compliance Officer(RAMLCO) and Branch Anti-Money Laundering Compliance Officer (BAMLCO) respectively.
Guideline on money laundering prevention and Combating Terrorist Financing Policy have beenrevised & updated and Bangladesh Bank's circulars/circular letters.
Uniform Account Opening Form was introduced where KYC is a must. As per Money LaunderingPrevention Act-2012 and as per Bangladesh Bank instruction, branches have been instructed toobtain full & accurate information of the clients while establishing banking relationship.
Actual transactions are compared with transaction Profile to identify abnormal and suspicioustransaction.
Cash Transaction Reporting (CTR) and Suspicious Transaction Reporting (STR) are made toBangladesh Bank on regular basis.
Customers are graded on the basis of risk. High risk customers are closely monitored and EnhancedDue Diligence is applied in this case.
Self Assessment is done by the branches and a summary report is prepared and submitted to theManagement and Bangladesh Bank on half yearly basis.
Independent Testing Procedure is done while conducting audit in the branches. The same issummarized and placed before the Management and Bangladesh Bank on half yearly basis.
As per Bangladesh Bank's AML circular no. 24 dated 03 March 2010, branches have been instructedto apply Enhance Due Diligence (EDD) in opening & maintaining accounts of Politically ExposedPersons, their family members and close associates.
Apart from Independent Testing Procedures, 50 branches have been inspected in the year 2014 on
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
money laundering prevention and combating terrorist financing.
Extensive training is being continuously imparted to the officials of the Bank to make them familiarwith money laundering prevention & combating terrorist financing and to mitigate the risk arisingout therefrom. In the year 2014, total 875 officials were provided training on money laundering,terrorist financing and foreign remittance through outreach workshop. Our training institute is alsoarranging training/ workshop on the issue.
Upto the year 2014 total 29 circulars of former Anti-Money Laundering Department and 9 circularsof present Bangladesh Financial Intelligent Unit (BFIU) of Bangladesh Bank have been disseminatedto the branches for compliance.
Monthly meeting of Central Compliance Unit (CCU) and Branch Compliance Unit (BCU) are arrangedand the decisions are gradually implemented.
Before establishing correspondent banking relationship, status on money laundering prevention andcombating terrorist financing of the respondent banks are obtained through a questionnairedeveloped by Bangladesh Bank. Correspondent Banking relationship with any bank is establishedupon receipt of the desired information and subject to our satisfaction.
As a precautionary measure and as per instruction of Central Bank, we do not establishCorrespondent Banking relationship with any shell bank or any bank having bankingrelationship with any shell bank.
We search the database of the customers to find out the sanction list of United Nations, OFACand competent authorities of Bangladesh. We also follow the list published in print &electronic media.
Internal Control and Compliance
Today's banks are involved in diversified & complex financial activities. The activities are no longerconfined to a single geographical boundary. The diversified & complex financial activities andinternational business of the bank bear significant risk. Thus the issue of effective internal controlsystem, corporate governance, transparency & accountability etc. have become of greatimportance. Weakness in Internal Control System may lead to significant amount of loss and theloss may be originated from internal & external fraud, employee practices & workplace safety,business practices, damage to physical assets, business disruption & system failure and processmanagement etc. In our Bank, internal control and compliance functions are jointly performed byAudit & Inspection Division, Monitoring Division, Compliance Division and Human ResourcesDivision. Audit & Inspection Division conducts periodical and special audit as per Risk Based AuditPlan approved by the Board. Synopsis of the audit report is placed before the Audit Committee ofthe Board of Directors regularly. Monitoring Division is engaged with on-site and off-sitemonitoring functions. Compliance Division deals with the in-house developed and regulatorycompliance related activities and also functions as the contact point of the Bank. It ensuresregulatory requirements and industry practices. Ethical issue and behavioral norms have assumedgreat importance in the banking industry since banks deal with the money of countless depositorsand if the interest of the depositors is threatened, it will bring the economy to a halt. Consideringthe fact and as per directive of our Central Bank, an Ethical Committee has been formed headed byDeputy Managing Director where all the Division Heads are the members and the Division Head,Compliance Division is the Member Secretary. The Committee is responsible to HonorableManaging Director for implementation of the decisions. All branches, regional offices and divisionsof Head Office have been instructed to form Ethical Sub-committee so that ethical banking can bepracticed in all walks of the Bank. The Management Committee (MANCOM) headed by HonorableManaging Director reviews the overall control system of the Bank and a certificate is provided tothe Board of Directors in this regard. As per instruction of Audit Committee of the Board,
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
Compliance Division places the quarterly position of internal control & compliance of the Bankbefore the Committee on regular basis and decisions are gradually implemented.
Information technology
Information Technology has enabled efficient, accurate and timely management of the increasedtransaction volume of Pubali Bank Limited that comes with a larger customer base. Adoption oftechnology has delighted the customers in terms of convenience and satisfaction through newproducts, new services and efficient delivery channels.
Pubali Bank Limited has been extending customer services at all of our 434 branches using our in-house developed core banking software, Pubali Integrated Banking System (PIBS) under networkenvironment. Real Time Centralized Online Banking System has been developed and deployed inall of 434 branches across the country. The Online Banking Network of Pubali Bank Limited hasbecome the largest one in the banking sector of Bangladesh. The efficient members of theSoftware and Hardware Support Unit at IT Division are extending quick support to the branches tosolve any software/operational problems in banking software.
One Stop Service has been implemented at all of our branches to ensure better and quick customerservices. Hardware Engineers have also been posted in each of our Regional Offices for quicksolution to the hardware problems of the branches under the Region.
To encourage incoming foreign remittances, all of our branches have been brought under thenetwork of Western Union Money Transfer, Pravu Money Transfer, Transfast etc. in additionto receiving Foreign TTs from different Exchange Houses abroad. Moreover, we have alsoestablished our own exchange house in U.K. named Pubali Exchange Company (UK) Ltd. usingour in-house developed software, Pubali Money Transfer System.
We have launched our Internet Banking System using our in-house developed software and we areextending this services to the customers of our all Online Branches. Security of the transmitteddata by encryption/decryption has been ensured through agreement with VeriSign Secured SitePro. Development of software for Mobile Phone Banking is under process. we have alsointroduced SMS alert service for debit and credit transaction notification.
As approved by the Board, we successfully established 100 ATM Booths across the country. Wehave already participated in the National Payment Switch as Pioneer Bank under supervision ofBangladesh Bank and inaugurated our ATM Debit Card. We have also started to provide Masterdebit card and visa debit card services to customer. We will start credit Card soon. We have alsoestablished a Call Center to support our customers.
We have established our Data Center at IT Division, Head Office and Disaster Recovery Center atUttara, Dhaka. Banking Data of our all the Online Branches are being stored both at our DataCenter and Disaster Recovery Center simultaneously to ensure business continuity even indisaster.
We have successfully implemented Bangladesh Automated Clearing House (BACH) and BangladeshElectronic Fund Transfer Network (BEFTN), Credit Information Bureau (CIB) Reporting as perguidelines of Bangladesh Bank.
We have established our website www.pubalibangla.com from where the visitors can get informationabout our products, charge schedule, career opportunities, procurement notices and present status ofour bank. The website is updated periodically and also as and when required. Communication through
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2.15
2.16
2.17
2.18
2.19
2.20
email among our Branches, Regional Offices and different Divisions of Head Office under our Own MailServer at IT Division, Head Office has become quick and easier.
To ensure proper training to our officials, Information Technology Division arranged need based handson training program at our Computer Lab daily in addition to training/workshop arranged at HeadOffice Auditorium throughout the year. During the year 2014, we conducted 121 training programs atour Computer Lab on 13 (thirteen) different Topics/Modules covering 3,435 participants and 2 (two)Workshops on General Banking Practices and related IT Operations at our Head Office Auditoriumcovering 1,208 participants from Branches/Regional Offices across the country.
Disclosure on fraud and forgeries committed by bank employees:
During the year 2014, 17 instances of fraud and forgeries were identified. The sum total of moneyinvolved against the 17 instances was Tk.3,75,29,600.07. Tk. 3,60,69,400.07 has been accountedfor/recovered against 14 instances out of total defalcated amount of Tk. 3,75,29,600.07 and therest amount of Tk. 14,60,200.00 against 3 instances ( in which some of our Bank employees wereinvolved ) has not been accounted for/recovered as yet.
It is to be mentioned that out of the 17 instances, some employees of our Bank were involved in 14instances amounting to Tk. 3,68,33,800.07 and outsiders/clients were involved in the 3 instancesamounting toTk.6,95,800.00
Administrative and disciplinary actions have been taken against the delinquent officials. All efforts arein force to recover the remaining defalcated money.
Off-balance sheet items
Under general banking transactions, liabilities against acceptance, endorsement and other obligationsand bills against which acceptances have been given and claims exist there against, have been shownas off-balance sheet items.
Authorization of financial statements
The financial statements for the year ended 31 December 2014 have been authorized for issue inaccordance with a resolution of the Board of Directors on 28 February 2015.
Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheetwhen there is a legally enforceable right to offset the recognized amounts and there is an intentionto settle on a net basis or realize the asset and settle the liability substantially.
Earnings per share
Earnings per share (EPS) has been computed by dividing the basic earnings by the number of ordinaryshares outstanding as on 31 December 2014 as per BAS 33 "Earnings per Share". Diluted earnings pershare was not required to calculate as no dilution occurred.
Interest paid and other expenses
In terms of the provisions of BAS 1 "Presentation of Financial Statements” interest and other expensesare recognized on accrual basis.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2.21
2.22
2.23
2.24
2.25
2.26
Memorandum items
Memorandum items are maintained to have control over all items of importance and for suchtransactions where the Bank has only a business responsibility and no legal commitment. Stock oftravelers‘ cheques, value of savings certificates (sanchaya patra) etc. fall under the memorandumitems.
Reporting period
These financial statements cover one calendar year from 01 January 2014 to 31 December 2014.
Number of employees
The number of employees employed in the Bank as on 31 December 2014 was 7,645, of which 6,472were male and 1,173 were female. The number of employees per branch was 15.52 excluding 910employees in the head office of the Bank.
During the year 2014, the Bank paid remuneration up to Taka 36,000 per employee to 307 personsand exceeding Taka 36,000 per employee to 7,338 persons.
Provision for liability
A provision is recognized in the balance sheet when the Bank has a legal or constructive obligation asa result of a past event and it is provable that an outflow of economic benefit will be required tosettle the obligations, in accordance with the BAS 37 "Provisions, Contingent Liabilities andContingent Assets".
Events after reporting period
In terms of provision of BAS 10 "Events after Reporting period" no material event has occurred afterbalance sheet date which could affect the values reported in the financial statements, exceptdeclaration of dividend, if any.
BASEL ll implementation
The BASEL Committee on Banking Supervision has published a new framework for calculating minimumcapital requirement, known as ‘Basel II’. The new guideline is structured around three pillars: (i) minimumcapital 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 managementprocess of the Bank and its capital adequacy requirement. Bangladesh Bank has formed a NationalSteering Committee and Coordination Committee for implementation of BASEL II in Bangladesh. As perthe Committee decision BASEL II has been fully implemented in Bangladesh from January 2011. TheNational Steering Committee has indicated that following methodology of BASEL II would be followed inBangladesh:
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 fromBangladesh Bank would be required.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2.27
The National Steering Committee has suggested for continuous training of the officers and employeesof the banks for capacity building and formation of an implementation team. Implementation teamwould be responsible for overall supervision of BASEL ll implementation in their banks. It has alsosuggested that the board of directors should also be updated on the issue. Accordingly, the Bank hasformed BASEL ll implementation team and is providing training to senior management, creditofficers and managers of the Bank. BASEL II implementation team has been regularly monitoring andgiving various suggestion/instruction regarding implementation ofthe above three pillars.
Training
In implementation of the human resources development strategy, the Bank has established its ownTraining Institute at the Head Office with the vision to build up professionals with technical, humanand conceptual skills. The Institute is focused to ensure a formal platform where employees canexchange their ideas, update their knowledge base, open up their eyes to face the complexities ofbanking world.
During the year 2014, the Training Institute of the Bank has arranged a total of 57 training courses,seminars and workshops mostly conducted by the internal resource persons with 1,925 participants.The objectives of designing all training programs are to bridge the gap between present level ofcompetence and the required level of competence.
SINo
No. ofTraining courses/workshops/seminars courses Number of participants
hem attended
1 Extended Learning Program for Jr.0fficer (Cash) recruited in 2012 & 2013 6 1712 Workshop on Ethics & Business Etiquette in Banking 8 224
3 Foundation Course for Officers recruited in 2012 & 2013 2 594 Workshop on Modern Marketing Techniques and Customer handling in Banks 6 162
5 Workshop on Business English and Writing Skill 5 137
6 Workshop on Credit Risk Management (CRM) 4 117
7 Workshop on Core Risk in Banking 4 107
8 Workshop on International Trade payment & Finance 5 127
9 Workshop on Consumers Financing 3 8110 Foundation Course for Senior Officers recruited in 2012 & 2013 1 29
11 Workshop on Manager and his/her Job.(Manager and Prospective Managers) 3 72
12 Refresher Course for Second Officersl Deputy Managers of Branches 2 5113 Workshop on International Trade & its operational aspects 1 2514 Foundation Course for Sr. Officers, Officers & Jr. Officers on Promotion
(Jr. Officers Cash & Comp.) 2 5315 Workshop on Risk Based Capital Management in Bank 1 2716 Orientation Course for Sr.Officers & Officers recruited in 2014 1 17917 Workshop on Money Laundering Prevention Act-2012 2 60
18 Orientation Course for Jr.Officers & Jr.0fficers Cash recruited in 2014 1 239Total 57 1,925
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2.28 Audit committeeThe Audit Committee of the Board comprising of the following members of the Board of Directors.
EducationalName Status in the Bank Status in the Committee _ _ _
Qualification
_ Independent _ B.A (Hon's), M.A (Eco) DU,M .Kh hd- l-Al - Chl uls ' U am D"'e°t°' alrman M.A(Eco), UniversityofNew England, Australia.Mr. Moniruddin Ahmed Director Member Matriculation
Mr. Ahmed Shafi Choudhury Director Member B.A (Dhaka University)
Dr. Shahdeen Malik lnfgeifgggfnt Member PhD in Law, educated in Dhaka, Moscow, Boston and London Universities.
Mr. M. Kabiruzzaman Yaqub DirectorFCMA (UK), CGMA Member B.Sc Eng (civil UK), FCMA (Uk), CGMA
2.29 Figures relating to the previous year included in this report have been rearranged, whereverconsidered necessary, to make them comparable with those of the current year for the purpose ofcomparison with current year's presentation, without any impact on.
2.30 Figures in these notes and in the annexed financial statements have been rounded off to the nearestTaka.
2.31 These notes form an integral part of the annexed financial statements and accordingly are to be read inconjunction therewith.
2.32 Statement of compliance
The financial statements of the Bank are prepared in accordance with Bangladesh Financial ReportingStandards (BFRS) and the requirements of the Bank Companies Act 1991, the rules and regulationsissued by Bangladesh Bank, the Companies Act 1994, Securities and Exchange Rules 1987. In case anyrequirement of the Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bankdiffer with those of BFRS, the requirements of the Bank Companies Act 1991, and provisions andcirculars issued by Bangladesh Bank shall prevail. Material departures from the requirements of BFRSare 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 thefair value (as measured in accordance with BFRS 13) at the year-end is taken to profit and lossaccount or revaluation reserve respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares andunquoted shares are revalued at the year end at market price and as per book value of last auditedbalance sheet respectively. Provision should be made for any loss arising from diminution in valueof investment; otherwise investments are recognised 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 recognised through profit and lossaccount. Securities designated as Held to Maturity (HTM) are measured at amortised cost methodand interest income is recognised through the profit and loss account.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gainson revaluation of securities which have not matured as at the balance sheet date are recognised inother reserves as a part of equity and any losses on revaluation of securities which have not maturedas at the balance sheet date are charged in the profit and loss account. Interest on HFT securitiesincluding amortisation of discount are recognised in the profit and loss account. HTM securities whichhave not matured as at the balance sheet date are amortised at the year end and gains or losses onamortisation are recognised 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 whetherobjective evidence of impairment exists for financial assets that are individually significant. Forfinancial assets that are not individually significant, the assessment can be performed on anindividual or collective (portfolio) basis.
Bangladesh Bank: As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December2012),BRPD circular No. 05 (29 May 2013) and BRPD circular No.16 (18 November 2014) a generalprovision at 0.25% to 5% under different categories of unclassified loans (good/standard loans) has tobe 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 forloans and advances depending on the duration of overdue. Again as per BRPD circular no. 10 dated 18September 2007 and BRPD circular no. 14 dated 23 September 2012, a general provision at 1% isrequired to be provided for all off-balance sheet exposures. Such provision policies are not specificallyin 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 39and interest income is recognised through effective interest rate method over the term of the loan.Once a loan is impaired, interest income is recognised in profit and loss account on the same basisbased on revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified,interest on such loans are not allowed to be recognised as income, rather the corresponding amountneeds to be credited to an interest in suspense account, which is presented as liability in the balancesheet.
Other comprehensive income
BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or theelements 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 befollowed by all banks. The templates of financial statements issued by Bangladesh Bank neitherinclude Other Comprehensive Income nor are the elements of Other Comprehensive Income allowedto be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank does notprepare the other comprehensive income statement. However, elements of OCI, if any, are shown inthe statements of changes in equity.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
vi)
vii)
viii)
ix)
X)
xi)
Financial instruments — presentation and disclosure
In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financialinstruments differently from those prescribed in BAS 39. As such full disclosure and presentationrequirements of BFRS 7 and BAS 32 cannot be made in the financial statements.
Financial guarantees
BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specifiedpayments to reimburse the holder for a loss it incurs because a specified debtor fails to makepayment when due in accordance with the terms of a debt instrument. Financial guarantee liabilitiesare recognised initially at their fair value, and the initial fair value is amortised over the life of thefinancial guarantee. The financial guarantee liability is subsequently carried at the higher of thisamortised amount and the present value of any expected payment when a payment under theguarantee has become probable. Financial guarantees are included within other liabilities.
Bangladesh Bank: As per BRPD 14, financial guarantees such as letter of credit, letter ofguarantee will be treated as off-balance sheet items. No liability is recognised for theguarantee except the cash margin.
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, prizebonds are shown in investments.
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.
Cash flow statement
BFRS: The Cash flow statement can be prepared using either the direct method or the indirectmethod. The presentation is selected to present these cash flows in a manner that is mostappropriate 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.
Balance with Bangladesh Bank: (Cash Reserve Requirement)
BFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for usein day to day operations as per BAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
xii)
xiii)
xiv)
Presentation of intangible asset
BFRS: An intangible asset must be identified and recognised, and the disclosure must be given as perBAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD 14.
Off-balance sheet items
BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement fordisclosure of off-balance sheet items on the face ofthe balance sheet.
Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guaranteeetc.) must be disclosed separately on the face of the balance sheet.
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 presentedseparately as liability and can not be netted off against loans and advances.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
PROPERTY AND ASSETS3
3.1
3.1.1
3.1.2
3.1.3
3 (a)
CashCash In hand ( Including foreign currency)In local currencyIn foreign currencies
Balance with Bangladesh Bank and its agent bank(s)Bangladesh BankIn local currencyIn foreign currencies
Sonali Bank as agent of Bangladesh BankIn local currency
2014Taka
2013Taka
3,560,191,40547,503,932
4,151,679,86534,920,526
3,607,695,337 4,186,600,391
12,785,752,6521,254,226,923
10,417,814,1272,525,001,150
14,039,979,5752,305,826,990
12,942,s15,277
2,370,043,44716,345,806,565 15,312,s5s,724
19,953,501,902 19,499,459,115
Cash Reserve Ratio and Statutory Liquidity RequirementCash Reserve Ratio and Statutory Liquidity Requirement have been calculated and maintained inaccordance with section 33 of Bank Companies Act 1991 MPD circular numbers 1 and 2 of 23 June2014 and 10 December 2013.
The statutory Cash Reserve Ratio (CRR) required on the Bank's time and demand liabilities at the rateof 6.5% has been calculated and maintained with Bangladesh Bank in current account and 13%Statutory Liquidity Requirement (SLR) , on the same liabilities is also maintained in the form oftreasury bills and bonds and other eligible securities. Both the reserves maintained by the Bank are inexcess of the statutory requirements, as shown below-
Cash Reserve Ratio (CRR)Required reserve (6.5%)Actual Reserve maintainedSurplus
Statutory Liquidity Requirement (SLR)Required reserve (13%)Actual resen/e maintainedSurplus
Total required amount of CRR and SLRTotal required reserve (19.5%)Total actual reserve maintainedTotal surplus
Consolidated CashCash in handPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
12,490,04s,11012,7s5,752,652
10,377,596,15610,417,s14,127
295,704,542 40,217,971
24,930,542,52042,416,2ss,41s
22,446,24s,s4441,50s,9s6,300
17,485,745,898 19,062,737,456
37,420,590,63055,202,041,070
32,823,845,00051,926,800,427
17,7s1,45o,44o 19,102,955,427
3,607,695,337 4,136,600,391
3,633,0123,607,695,337 4,190,233,403
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
Balance with Bangladesh Bank and its Agent Bank(s)Pubali Bank Limited 16,345,806,565Pubali Bank Securities Limited -Pubali Exchange Company (UK) Ltd. —
15,312,858,724
16,345,806,565 15,312,s58,72419,953,501,902 19,5o3,o92,127
4 Balance with Other Banks and Financial InstitutionsInside Bangladesh (Note 4.1)Outside Bangladesh (Note 4.2)
941,288,9721,388,140,874
740,835,024825,534,192
2,329,429,846 1,566,369,216
4.1 Inside BangladeshIn fixed/term deposit account (in local currenq/)Delta Brac Housing and Finance Corporation LtdICB Islamic Bank Ltd, Bangshal Branch, DhakaICB Islamic Bank Ltd, Principal Office, Dhaka 202,581,903Union Bank Limited, Hatkola Branch, Dhaka —Social Islami Bank Limited, Dilkusha Branch, Dhaka 300,000,000
300,000,00039,475,731
300,000,00040,076,421
203,783,283100,000,000
842,057,634 643,859,704
In Savings Deposit accountIslami Bank Bangladesh Limited, Foreign Exchange Branch, Dhaka 11,493,113 10,957,832
11,498,118 10,957,832
In Special Notice Deposit accountSonali Bank Ltd, Shilpa Bhaban Branch, DhakaBank Al Falah Ltd, Principal Branch, DhakaNational Bank Ltd, Dilkusha Branch, DhakaThe City Bank Ltd, Foreign Exchange Branch, DhakaMutual Trust Bank Ltd, Principal Branch, DhakaBangladesh Krishi Bank, Local office, DhakaThe Hongkong and Shanghai Banking Corp Ltd, Main Branch, Dhaka 574,369First Security Islami Bank Ltd, Dilkusha Branch, Dhaka 5,121,838
699,782375,172568,401620,482836,894596,532
474,761176,862348,531409,895605,237381,161365,785
4,975,1539,393,470 7,737,385
Total Inside deposit in BDT 862,949,222 662,554,921
Fixed deposit receipts (Foreign Currency)Standard Chartered Bank, Dhaka 1,948,750Commercial Bank of Ceylon, Dhaka 62,749,750The Hongkong and Shanghai Banking Corporation Ltd., Dhaka 13,641,250
5,700,00838,380,05034,200,045
78,339,750 78,280,103941,288,972 740,835,024
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31
4.2 Outside Bangladesh (Nostro Account) In demand deposit account (non i
December 2014
nterest bearing)
Name of Bank2014 2013
F°'el9" Conversion Amount in Amount inCl-|"e"CY rate per foreign BD taka
unit FC currencyname
Conversion Amount inrate per foreignunit FC currency
Amount inBD taka
American Express Bank Ltd, KolkataBank of Bhutan, ThimpuBank of Tokyo Mitsubishi Ltd, KolkataBank of Tokyo Mitsubishi Ltd, TokyoCitibank NA, New YorkCommerz Bank , GermanyCommerz Bank , GermanyHabib Metropolitan Bank, Ltd., KarachiHabib American Bank, New YorkHDFC Bank Ltd. MumbaiUnited Bank of india, kolkataHSBC Bank, MumbaiHypovereins Bank, MunchenICICI Bank Ltd., Kolkata, IndiaICICI Bank, MumbaiAB Bank, MumbaiMashreq Bank PSC NewyorkNDLC IFIC Bank Ltd. (NIB) KarachiPeoples Bank, ColomboRoyal Bank of Canada, TorontoSonali Bank Ltd, KolkataSonali Bank,UK(GBP) LtdSonali Bank,UK(USD) LtdStandard Chartered Bank, KathmanduStandard Chartered Bank, NewyorkStandard Chaitered Bank, MumbaiStandard Chartered Bank, UKICICI Bank, Kolkata, IndiaUBS AG, ZurichUnicredit S.P.A., Milano, Italy
ACUDACUDACUDYENUSDUSD
EUROACUDUSD
ACUDACUDACUDEUROACUDEUROACUDUSD
ACUDACUDCAD
ACUDGBPUSD
ACUDUSD
ACUDGBP
EUROCHF
EURO
77.9577.9577.95
0.65
77.9594.7177.9577.9577.9577.9577.9594.7177.95
77.9577.9577.95
77.95120.9377.9577.9577.9577.95
120.9394.7178.7494.71
54,849.44330,304.89
22,770.006,206,950.00
96,409.3656,669.68
523,528.45642,388.3840,665.02
134,516.9664,075.9413,387.37
365,481.18
502,626.944,229.74
81,553.83
431,686.02167,761.84851,978.58104,962.42
12,053,499.67754,351.93172,115.1812,394.8324,405.3036,862.61
4,275,48125,747,068
1,774,9084,008,850
7,515,0525,367,089
40,808,72850,073,7893,169,814
10,485,5164,994,6811,268,211
28,489,039
39,179,468329,706
6,357,072
33,649,66620,287,55766,411,2198,181,758
939,563,06758,801,28020,814,009
1,174,1861,921,5953,492,065
77.75 55,484.6477.75 85,741.8977.75 22,770.000.74 3,814,917.00
77.75 91,368.8777.75 278,060.27
77.75 576,186.4277.75 116,260.0077.75 214,137.6377.75 95,326.3877.75 64,075.94
106.83 38,760.3477.75 536,437.51
106.83 9,740.8677.75 307,038.8277.75 855,315.8877.75 4,229.7477.75 151,814.9072.56 191,471.2877.75 625,545.29
128.09 117,896.9377.75 1,632,402.6177.75 105,018.0277.75 3,524,984.0077.75 662,402.38
128.09 54,558.93
87.18 20,543.50106.83 17,456.81
4,313,9316,666,4321,770,3682,820,2897,103,930
21,654,186
44,798,4949,039,215
16,649,2017,411,6264,981,9044,140,709
41,708,0161,040,601
23,872,26866,500,810
328,86211,803,60913,893,50748,636,14615,101,786
126,919,3038,165,151
274,067,50651,501,7856,988,624
1,791,0481,864,885
1,388,140,874 825,534,192
2014Taka
2013Taka
4.3 Maturity grouping of balance with other banks and financial institutionsPayable on demandUp to 3 monthsOver 3 months but not more than 1 yearAbove 1 year (receivable from former The Oriental Bank Ltd.)
1,404,760,830478,713,882212,897,500233,057,634
844,229,409245,980,000232,900,103243,259,704
2,329,429,846 1,566,369,216
4 (a) Consolidated Balance with other banks and financial institutionsInside BangladeshPubali Bank LimitedPubali Bank Securities Limited
941,288,972437,100,218
Pubali Exchange Company (UK) Ltd. -
740,835,024228,108,325
1,378,389,190 968,943,349Less: Inter Company Transactions (Figure of 2013 restated) 437,100,213 228,108,325
941,288,972 740,835,024
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
Outside BangladeshPubali Bank Limited 1,388,140,874Pubali Bank Securities Limited -Pubali Exchange Company (UK) Ltd. -
825,534,192
3,644,5281,388,140,874 829,178,7202,329,429,846 1,570,013,744
5 Money at Call on Short NoticeBanking company (note- 5.1)Non-banking Financial Institution (note—5.2)
118,286,667870,000,000
18,886,667550,000,000
988,286,667 568,886,6675.1 Banking company
Standard Bank LimitedICB Islamic Bank Ltd.
100,000,00018,286,667 18,886,667
118,286,667 18,886,667
5.2 Non-banking financial institutionPrime Finance & Investment Ltd.Bangladesh Finance & Investment Co. Ltd.Lanka Bangla Finance Ltd.Industrial & Infrastructure Development Finance Co. LtdPremier Leasing & Finance Ltd.Bangladesh Industrial Finance Co. LtdInvestment Corporation of BangladeshFirst Finance Ltd.Phoenix Finance & Investment Ltd.International Leasing & Financial Services Ltd.Fareast Finance & Investment Co. Ltd.Delta Brac Housing Finance Corp. Ltd.
50,000,00050,000,00050,000,000
140,000,00050,000,00030,000,000
200,000,00050,000,00050,000,000
100,000,00050,000,00050,000,000
50,000,00050,000,00050,000,000
100,000,00050,000,000
200,000,000
50,000,000870,000,000 550,000,000
6 InvestmentsGovernment securitiesTreasury biIIs- at book value ( Note 6.1)Debentures ( Note 6.2 )
14,834,211,02510,000,000
21,344,375,10124,947,665
14,844,211,025 21,369,322,766Government bondsGovernment treasury bonds (Note 6.3)National prize bonds
24,321,003,95019,111,601
19,098,009,66115,147,101
24,340,115,551 19,113,156,762Total investment in government securities and bonds 39,134,325,575 40,482,479,528
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
6.1
6.2
6.3
Other investmentsShares (Note 6.4)Debentures (Note 6.5)Prime Bank Limited BondORASCOM BondMTBL BondDhaka Bank Limited BondNational Bank Limited BondOne Bank Limited BondMercantile Bank Limited BondTrust Bank Limited BondCity Bank Limited BondSoutheast Bank Limited BondBridge financing advances (Note 6.6)
Treasury bills91 days treasury bills182 days treasury bills1 year treasury bills
91 days (Lien-REPO with Bangladesh Bank under-ALS)182 days (Lien-REPO with Bangladesh Bank under-ALS)1 year (Lien-REPO with Bangladesh Bank under-ALS)
Approved debentures at cost
2014Taka
2013Taka
Rate of Int.
8,539,711,181469,060
90,000,00040,000,000
100,000,00064,000,000
100,000,000100,000,000250,000,000196,000,000300,000,000
6,218,910
7,579,713,154469,060
90,000,000200,000,00040,000,000
100,000,00080,000,000
100,000,000
6,258,1279,786,399,151 8,196,440,341
48,970,725,727 48,678,919,869
556,115,38513,404,952,067
214,592,71811,140,174,0405,057,708,877
13,961,067,452 l6,412,475,635
351,605,546325,259,549196,278,478
2,982,014,4181,949,885,048
873,143,573 4,931,899,46614,834,211,025 21,344,375,101
Bangladesh House Building Finance Corporation 5.50%Bangladesh Steel and Engineering Corporation 11.75% - 4,947,665
Government treasury bonds
25 years treasury bond20 years treasury bond15 years treasuiy bond10 years treasury bondSyears treasury bond2 years treasury bond
5.00%10.85% -12.98%10.30% - 12.42%8.75% - 12.16%7.87%- 11.82%
10.90% - 10.98%
20 years treasury bond (Lien-REPO with Bangladesh Bank under-ALS)15 years treasuiy bond (Lien-REPO with Bangladesh Bank under-ALS)5 years treasury bond (Lien-REPO with Bangladesh Bank under-ALS)2 years treasury bond (Lien-REPO with Bangladesh Bank under-ALS)
1 Year Bangladesh Govt. Islami Investment Bond
10,000,000 20,000,000
10,000,000 24,947,665
23,233,0008,028,004,6676,043,824,6686,057,542,8713,589,464,146
275,177,762
28,789,0005,426,337,2494,572,839,4644,757,180,1264,007,891,886
274,971,93624,017,247,114 19,068,009,661
53,444,78064,660,21565,924,63481,227,207
265,256,83638,500,000 30,000,000
24,321,003,950 19,098,009,661
Notes to the financial statements for the year ended 31 December 2014
6.4 Shares
Pubali Bank Limited Annual Report 2014
Name of company l No of share Market price Market value Book value 2014 Book value 2013
AB Bank LimitedACI LimitedACI Formulations LimitedActive Fines Chemicals LimitedAFC Agro Biotech Ltd.Aftab Automobiles LimitedAgricultural Marketing Company Limited (Pran)Ambee Pharma LimitedApex Adelchi Footwear LimitedApex Tanaiy LimitedAppollo Ispat Complex LimitedArgon Denims LimitedAsia Insurance Company LimitedAtlas Bangladesh LimitedBangas LimitedBangladesh Auto Car Company LimitedBangladesh Building Systems LimitedBangladesh Lamps LimitedBangladesh General Insurance Company LimtedBangladesh Shipping CorporationBangladesh Steel Re-Rolling Mills LimitedBangladesh Submarine Cable Company LimitedBank Asia LimitedBarkatullah Electro Dynamics LimitedBata Shoe company (Bangladesh) LimitedBay Leasing & Investment LimitedBeacon Pharma LimitedBengal Windsor Thermoplastics LimitedBerger Paints Bangladesh LimitedBritish American Tobaco Bangladesh LimitedCentral Insurance Company LimitedCentral Pharmaceuticals LimitedCity Bank LimitedCity General Insurance Company LimitedCMC KamalConfidence Cement LimitedContinental Insurance Company LimitedCVO Petrochemical Refinery LimitedDelta Brac Housing & Financing LimitedDelta Life Insurance Company LimitedDelta Spinners LimitedDeshbandhu Polymer LimitedDhaka Bank LimitedDhaka Electric Supply Company LimitedSub-Total C/F
10,000633,650414,400
2,557,150512,500596,120185,60010,230
947,491503,240708,755
130,39041,259
546,696154,850200,00026,724
139,0801,504,250
133,800
1,622,000
97,50041,600
119,168
529,071583,583662,400397,10084,750
2,483,550
2,006,520341,574
29.90389.90127.6073.9049.0067.20
196.10256.70
19.9041.2022.50
283.9022.7046.00
118.4021.40
507.50
116.7016.70
1,172.10
18.00
1,425.102,650.30
24.30
21.8018.6020.50
106.7020.60
149.90
18.3069.50
299,000247,060,13552,877,440
188,973,38525,112,50040,059,26436,396,1602,626,041
18,855,07120,733,48815,946,987
37,017,721936,579
25,148,01618,334,2404,280,000
13,562,430
16,230,63625,120,975
156,826,980
29,196,000
138,947,250110,252,480
2,895,782
11,533,74810,854,64413,579,20042,370,570
1,745,850
372,284,145
36,719,31623,739,393
278,246196,331,17271,034,796
180,245,67329,168,77166,380,06146,490,852
2,850,366
25,518,18437,086,37428,499,523
34,130,0581,936,219
26,921,89821,757,7308,514,112
14,460,529
26,639,60332,595,097
115,261,574
41,882,728
93,637,09440,817,5264,523,223
13,086,17819,629,69819,344,07858,851,2043,158,535
307,008,131
55,334,14823,062,416
65,006,631
66,380,06146,490,8526,720,512
110,290,41213,727,503
36,636,35828,499,523
114,35296,433,969
1,936,2198,476,244
17,159,8628,514,112
282,272,51447,501,20326,639,60332,595,09712,915,77656,893,665
506,16841,882,72824,223,34725,143,80530,745,1044,523,223
7,69713,086,17819,629,69819,344,07840,822,8163,158,535
10,597,74641,985,739
385,694,9032,687,0931,403,126
55,146,1065,949
1,740,515,426 1,646,435,797 1,685,798,507
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
No of share Market price Market value Book value 2014 Book value 2013
Sub-Total Bl FDhaka Insurance Company LimitedEast Land Insurance Company LimitedEastern LubricantsEastern Bank LimitedEastern Cables LimitedEastern Housing LimitedEastern Insurance Company LimitedEnvoy Textile LimitedExim Bank of Bangladesh LimitedFamilytex (Bd) LimitedFareast Life Insurance Company LimitedFederal Insurance Company LimitedFu-Wang Ceramics LimitedGeneration Next Fashions LimitedGlaxo SmithKline (GSK) Bangladesh LimitedGlobal Insurance Company LimitedGolden Harvest Agro Industries LimitedGolden Son LimitedGPH Ispat LimitedGrameen Mutual Fund OneGrameenphone LimitedGreen Delta Insurance LimitedGSP Finance Company (Bangladesh) LimitedHeidelberg Cement Bd LimitedICB Islamic Bank LimitedIDLC Finance LimitedIslami Bank LimitedJamuna Oil Company LimitedJanata Insurance LimitedJute Spinners LimitedKarnaphuli Insurance Company LimitedKeya Cosmetics LimitedLafarge Surma Cement LimitedLankabangla Finance LimitedLibra Infusions LimitedLinde Bangladesh LimitedLR Global Bangladesh Mutual FundM.I. Cement Factoiy LimitedMaksons Spinning Mills LimitedMalek Spinning Mills Ltd.Marico Bangladesh LimitedMeghna Petroleum LimitedMeghna Life Insurance Company LimitedMercantile Bank LimitedMercantile Insurance Company LimitedMetro Spinning LimitedMidas Financing LimitedMJL Bangladesh LimitedMutual Trust Bank LimitedSub-Total C/ F
108,500191,04831,900
14,303,479228,500208,26790,000
2,048,4611,221,0001,970,000
153,352
5,788,33261,300
596,2881,049,100
1,796,080
33,300308,367
502,9508,711,8001,673,078
1,00029,354
1,000259,140
16,594,1265,289,651
43,000129,550
5,184,672248,070
1,523,5502,285,000
66,050504,68834,100
365,996
165,0002,394,884
327,910
25.8034.30
405.3027.20
118.4046.4034.5051.6011.1021.9075.10
15.201,512.00
17.2027.50
45.90
361.9074.10
499.405.50
74.7023.40
205.90
53.0017.40
123.0044.00
373.00914.60
5.0072.2013.2019.10
1,123.20211.0090.6013.70
16.30125.6019.80
1,740,515,426 1,646,435,797 1,685,798,507
2,799,3006,552,946
12,929,070389,054,62927,054,4009,663,5893,105,000
105,700,58813,553,10043,143,00011,516,735
87,982,64692,685,60010,256,15428,850,250
82,440,072
12,051,27022,849,995
251,173,23047,914,900
124,978,92723,400
6,043,989
53,0004,509,036
2,041,077,498232,744,64416,039,000
118,486,43025,923,36017,910,65420,110,86043,643,50074,187,360
106,489,1683,089,4605,014,145
2,689,500300,797,430
6,492,618
6,016,95513,204,23317,751,805
101,063,58537,069,12411,348,3194,066,819
97,952,94621,280,67553,642,93815,192,864
130,389,18996,352,11722,867,94549,536,365
95,742,983
10,473,76231,938,029
222,223,74685,460,289
110,922,61728,829
5,157,242
100,00014,580,398
745,338,646316,932,96217,205,639
109,497,94850,000,00023,578,18630,330,42569,644,59754,506,104
111,680,2393,946,4396,584,317
4,148,037220,172,998
7,183,454
6,016,95513,204,233
101,063,585
1,938,6994,066,819
130,744,76521,280,67527,561,12215,192,864
362,0721,884,654
110,255,859
48,342,11522,867,945
5,63983,826,740
48,819626,744
31,938,0296,966,157
43,200,16485,460,289
204,018,1493,434
96,108,8871,226,625
100,00014,580,39816,475,106
504,558,894329,382,40517,023,94547,454,79050,000,00023,578,18630,330,42569,644,59751,152,07827,863,0483,593,639
36,241,0513,185,4703,721,6983,323,037
423,126,6207,183,454
6,152,095,879 4,671,549,562 4,406,529,386
Notes to the financial statements for the year ended 31 December 2014
Pubali Bank Limited Annual Report 2014
I No ofshare Market price Market value Book value 2014 Book value 2013
Sub-Total B/F
National Bank LimitedNational Credit & Commerce Bank LimitedNational Tea LimitedNational Life Insurance LimitedNational Tubes LimitedNavana CNG LimitedNLI First Mutual FundNoithern General Insurance Company LimitedOlympic Industries LimitedOne Bank LimitedOrion Infusion LimitedOrion Pharma LimitedPadma Islami Life Insurance LimitedPadma Oil CompanyParamount Textile LimitedPeoples Leasing And Financial Services LimitedPhoenix Finance & Investment LimitedPhoenix Insurance Company LimitedPopular Life Insurance Co. LimitedPower Grid Co. Bangladesh LimitedPragati Insurance Company LimitedPragati Life Insurance LimitedPremier Bank LimitedPremier Cement Mills LimitedPrime Bank LimitedPrime Finance & Investment LimitedPrime Life Insurance LimitedPurabi General Insurance Company LimitedQuasem Drycells LimitedRAK Ceramics Bangladesh LimitedRangpur Foundary LimitedRatanpur Steel Re-Rolling Mills LimitedReneta LimitedRenwick Jajneswar & Co (BD)Republic Insurance Company LimitedRN Spinning Mills LimitedRupali Bank LimitedRupali Insurance Company LimitedRupali Life Insurance Company LimitedS. Alam Cold Rolled Steels Ltd.Sandhani Insurance Company LimitedShahjalal Bank LimitedShinepukur Ceramics LimitedSinger Bangladesh LimitedSocial Islami Bank LimitedSub-Total C/ F
1,038,620242,719
33998,463
231,440262,620792,550240,020
18,5508,173,071
150,900
95,500656,88076,105
611,820710,312463,470
199,917
389,716525,000
4,322,523677,030
300,000144,468
140,0084,039,093
119,988251,475696,500
1,100,026
310,296309,925
11.4011.20
697.50235.20115.8065.408.00
27.70227.30
15.80
45.50
251.6023.1023.1026.9035.10
143.50
41.30
10.0080.9019.6021.40
57.90984.00
25.7029.00
23.6054.4034.50
11.50
218.8013.60
6,152,095,879 4,671,549,562 4,406,529,386
11,840,2682,718,453
236,45223,158,49826,800,75217,175,3486,340,4006,648,5544,216,415
129,134,522
6,865,950
24,027,80015,173,9281,758,025
16,457,95824,931,95166,507,945
8,256,572
3,897,16042,472,50084,721,45114,488,442
17,370,000142,156,512
3,598,206117,133,697
2,831,71713,680,24024,029,250
12,650,299
67,892,7654,214,980
26,341,7074,608,562
3,39021,444,09734,267,83419,547,04010,494,96610,422,6422,500,655
133,529,131
11,083,794
32,781,93334,657,0582,833,705
33,249,22541,673,73254,997,722
12,632,281
6,615,53770,782,19387,491,08821,317,841
19,789,62992,738,966
7,307,011138,139,675
5,041,03320,004,02932,018,186
19,168,109
49,627,2026,248,643
26,341,7074,608,562
3,6005,887,678
19,547,04010,494,96610,422,64240,154,87767,016,9257,573,831
11,083,79414,716,571
22,52234,657,0582,833,705
33,249,22541,673,73243,792,725
7,723911,744
3,616,9036,615,536
70,782,1931,089
21,317,841941,733905,159
8,235,54443,955
13,274,166
52,491,1068,587,7667,307,011
110,643,9944,310,5415,041,033
12,397,23832,018,18616,790,60419,168,1091,315,955
49,627,2026,248,643
7,095,482,889 5,734,908,178 5,233,211,520
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
6.4.1
Sub-Total B/F
No of share Market price Market value Book value 2014 Book value 2013
7,095,482,889 5,734,908,178 5,233,211,520
Southeast Bank Limited 6,708,397 19.40Square Pharmaceuticals Limited 1,291,000 258.50Square Textile Mills Limited 705,706 91.00Standard Bank Limited - -Standard Insurance Company Limited - -Summit Alliance Port Limited 106,434 82.90Summit Power Limited 2,431,913 38.30Summit Purbanchol Power Company Limited 1,035,166 49.90Sunlife Insurance Company Limited 157,657 43.30Tallu Spinning Mills Limited 810,603 15.20The Dacca Dyeing & Manufacturing Co.Limited 180,241 14.40Titas Gas Transmission & Dist. Co. Limited 7,551,000 79.70Unique Hotel & Resorts Limited 1,082,500 65.90United Airways (BD) Limited 1,457,086 8.90United Commercial Bank Limited 1,094,600 29.30Usmania Glass Sheet Factory Limited. 24,128 117.00Uttara Finance & Investment Limited 122,925 74.90Sub-Total (A)
Unquoted (B)Saleh Carpet Mills LimitedSwan Textile Mills Limited
130,142,902333,723,50064,219,246
8,823,37993,142,26851,654,7836,826,548
12,321,1662,595,470
601,814,70071,336,75012,968,06532,071,7802,822,9769,207,082
128,129,472200,035,84159,143,512
8,561,714116,997,52056,071,20110,124,90829,497,4417,076,853
590,381,079102,193,96924,148,21032,879,187
1,993,70210,227,618
84,372,426170,898,954130,308,290
400,7953,855
55,554,857116,997,520130,549,70910,124,90831,134,9697,076,853
620,537,358102,193,96924,148,21040,226,6433,984,224
10,227,6188,529,153,504 7,112,370,405 6,771,952,678
No. of share Face value Book value 2014 Book value 2013
56,800578
Specialised Jute Yarn & Twine Manufacturing Co. Limited 19,880Paper Converting & Packaging LimitedAshraf Textile Mills LimitedKarma Sangshtan BankPreferences Shares of Khulna Power Co. Ltd. (KPCL)
83999,165
100,000
Preferences Shares of Summit Uttaranchanl (SUPCL) 215,132Preferences Shares of Summit Purbanchanl (SPPCL) 327,172Preferences Shares of United Power Generation & Distribution Co. Ltd. 40,000,000Central Depository Bangladesh Limited 2,284,721Lanka Bangla Securities 20,000Sub-Total (B)Non Capital Market Investment Element (C)Investment Corporation Of Bangladesh 4,752,711Sub-Total (C)Total (A+B+C)
Particulars of required provision for investment
a. Shares
10.00100.00
10.00100.00
10.00100.00
100.00100.00
10.0010.00
250.00
100.00
568,00057,800
198,80083,900
1,274,98010,000,000
21,513,20032,717,200
400,000,0006,277,7705,000,000
568,00057,800
198,80083,900
1,274,98010,000,00040,000,00034,421,10052,347,500
500,000,0006,277,7705,000,000
477,691,650 650,229,850
949,649,126 157,530,626949,649,126 157,530,626
8,539,711,181
Market value Book value Required‘ Requiredat 31 Dec 2014 at 31 Dec 2014 rovision 2014 provision 2013
7,579,713,154
b. Bridge finance advances - 6,218,910 6,218,910 6,258,127c. Debentures - at cost - 469,060 469,060 469,060Grand Total 6,687,970 6,687,970 6,727,187No provision is required for current year as per DOS circular no. 04 dated 24 November 2011
Debentures at costGandhara Industries Ltd.Rupan Oil and Feeds Ltd.Bengal Carpet Ltd.Bay Sodium Chemical Industries Ltd.Monir Chemical Ltd.Saleh Carpet Industries Ltd.Ismail Carpet Industries Ltd.Ahmed Jutex Mills Ltd.Mirzaboo Steel Ltd.
Bridge financing advancesBridge financing advances (ICB sponsored)
Maturity grouping of InvestmentsReceivable on demandNot more than 3 monthsOver 3 months but not more than 1 yearOver 1 year but not more than 5 yearsOver 5 years
Pubali Bank Limited Annual Report 2014
Investment classified as per Bangladesh Bank CircularTreasury bill - Held for trading (HFT)Treasury bill — Held to maturity (HTM)Treasury bond - Held to maturity (HTM)Approved debenture — Held to maturity (HTM)Other securities
Repo and Reverse Repo
Notes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
6030,00075,00015,00085,00050,00050,00075,00089,000
6030,00075,00015,00085,00050,00050,00075,00089,000
469,060 469,060
6,218,910 6,258,127
7,141,283,11211,351,535,0943,563,975,9314,332,693,209
22,581,238,381
6,889,800,88516,770,801,5474,550,673,5545,010,049,147
15,457,594,73648,970,725,727 48,678,919,869
14,834,211,02524,321,003,950
10,469,0609,805,041,692
21,344,375,10119,098,009,661
24,947,6658,211,587,442
48,970,725,727 48,678,919,869
A. (I) Disclosure regarding outstanding Repo as on 31 December 2014
SL Counter Party Name Agreement Date Reversal Date A'“°“"'t 115‘ '59 cashconsideration)|_|. Bangladesh Bank 30/12/2014 1/1/2015 155,975,000|\) Bangladesh Bank 30/ 12/2014 1/1/2015 92,990,000U0 Bangladesh Bank 30/ 12/2014 1/1/2015 28,645,000-l> Bangladesh Bank 30/12/2014 1/1/2015 101,830,000
U1 Bangladesh Bank 30/12/2014 1/1/2015 69,700,000O‘- Bangladesh Bank 30/12/2014 1/1/2015 69,360,000\l Bangladesh Bank 30/12/2014 1/1/2015 180,455,000CZ) Bangladesh Bank 30/ 12/2014 1/1/2015 7,650,000\D Bangladesh Bank 30/ 12/2014 1/1/2015 62,645,000
1- O Bangladesh Bank 30/12/2014 1/1/2015 77,140,000|_; |_; Bangladesh Bank 30/12/2014 1/1/2015 62,700,000|_~ |\l Bangladesh Bank 30/12/2014 1/1/2015 24,130,000|—~ Lu Bangladesh Bank 30/12/2014 1/1/2015 18,715,000|—~ -l> Bangladesh Bank 30/12/2014 1/1/2015 37,620,000;_|. U1 Bangladesh Bank 30/ 12/2014 1/1/2015 32,395,000
Total 1,021,950,000
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
6 (a)
7
7.1
A.(II) Disclosure regarding outstanding Reverse Repo as on 31 December 2014
Counter Party Name Agreement Date Reversal Date . .considerationAmount (1st leg cash
)NIL NIL NIL NIL
B.(I) Disclosure regarding overall Transaction of Repo and Reverse Repo
ParticularMinimum Maximum Daily average
Outstanding During Outstanding Outstanding During thethe year During the year yea I‘
Securities sold under Repo:i) With Bangladesh Bank 98,345,000 5,525,000,000 265,923,832ii) With Other Banks and FIs
Securities Purchased under Repo:i) From Bangladesh Bankii) From Other Banks and FIs 4,784,200,925 279,118,765 656,422,897
Consolidated InvestmentsGovernmentPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
OtherPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
Loans, Advances and LeasesLoans, cash credits and overdrafts, etc. (note 7.1)Bills purchased and discounted (note 7.2)
Loans, cash credits, overdrafts, etc.Inside Bangladesh:LoansCash creditsOverdraftsLoan against merchandisePacking creditsLoan against trust receiptsPubali prochestaNon-resident Credit SchemePubali SubarnaPubali Karmo UddogPubali SujonPubali UtsobPayment against documentsConsumers loan schemeLease finance (Note 7.13)Others
Outside Bangladesh
2014Ta ka
2013Taka
39,184,326,576 40,482,479,528
39,184,3Z6,576 40,482,479,528
9,786,399,1513,150,522,285
8,196,440,3413,115,479,167
12,936,921,436 11,311,919,50852,121,248,012 51,794,399,036
149,171,144,182803,386,485
135,706,213,4171,234,248,952
149,974,530,667 136,940,462,369
44,544,373,13733,007,740,05739,816,216,893
6,628,769558,779,755
11,268,070,158384,165,646
1,151,4024,912,662,893
108,691,24845,514,94114,185,491
915,823,3486,705,454,0103,759,371,7783,122,314,656
35,850,856,12827,883,324,33336,855,206,715
9,864,936496,930,674
15,744,391,775212,988,208
1,505,0813,925,280,689
75,376,11629,998,2154,805,499
728,809,2065,776,366,0333,801,213,7414,309,296,068
149,171,144,182 135,706,213,417
149,171,144,182 135,706,213,417
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
7.1.1
7.2
7.2.1
7.3
7.4
Maturity grouping of Loans, Advances and Leases
Repayable on demandUp to 3 monthsOver 3 months but not more than 1 yearOver 1 year but not more than 5 yearsOver 5 years
Bills purchased and discountedPayable in Bangladesh:Loans against accepted billsLoans against demand draft purchased
Payable outside Bangladesh:Foreign bills purchasedForeign drafts purchased
Maturity grouping of Bills purchased and discountedReceivable on demandNot more than 3 monthsOver 3 months but not more than 6 months
Loans and advances including bills purchased anddiscounted analyzed in following broad categoriesInside BangladeshLoansCash creditsOverdrafts
Outside Bangladesh
Loans and advances on the basis of significant customerconcentration including bills purchased and discountedAdvance to directors and othersAdvance to officers and employeesAdvance to customers group (note 7.9)
2014Taka
2013Taka
l2,526,453,000l6,596,909,07270,206,557,89442,038,939,025
7,802,285,191
11,217,285,65921,482,394,13855,627,574,14840,786,657,376
6,592,302,096149,171,144,182 135,706,213,417
659,376,76831,565
1,031,269,14831,565
659,408,333
143,978,152
1,031,300,713
202,940,5447,695
143,978,152 202,948,239803,386,485 1,234,248,952
50,312,777496,522,650256,551,058
43,613,459897,237,860293,397,633
803,386,485 1,234,248,952
77,006,595,56533,007,740,05739,816,216,893
71,998,983,08227,883,324,33336,855,206,715
149,s30,552,515143,978,152
136,737,514,130202,948,239
149,974,530,667 136,940,462,369
2,292,302,55450,182,935,000
2,249,068,98957,608,243,000
Pubali Bank Limited Annual Report 2014
Industry wise distribution of loans and advancesAgricultureJuteTextileReady-made garmentsHospitals, Clinics and other health servicesSteel & engineeringShip scrapingEdible oilCementFood & alliedPaper, paper products and packagingConstructionEnergy and powerTranspoit and communicationPharmaceuticalsLeatherTrade & CommerceConsumer FinanceOthers
7 6 Geographical location-wise distribution of loans andadvances including bills purchased and discountedInside Bangladesh - UrbanDhakaChittagongSylhetBarisalKhulnaRajshahiRangpur
Inside Bangladesh - RuralDhakaChittagongSylhetBarisalKhulnaRajshahiRangpur
Outside Bangladesh (Foreign bills/drafts purchased)
Sector-wise loans and advances including bills purchased and discountedPublic sectorPrivate sectorCo-operative sector
Notes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
2,540,180,425239,835,973
12,738,609,09710,787,284,5145,324,159,7703,780,892,6792,910,109,3503,226,552,2261,488,173,1534,069,761,891
342,433,8509,630,269,456
417,665,7162,968,879,8861,462,666,164
66,801,85638,197,183,3028,863,105,712
40,919,965,647
1,957,427,459204,924,068
11,587,735,24010,795,184,5141,390,190,0004,497,065,8273,579,413,0816,732,052,0981,961,431,0633,327,860,089
578,587,7457,956,960,677
991,153,4958,349,500,0001,724,219,691
69,762,77833,536,705,6195,706,213,972
31,994,074,953149,974,530,667 136,940,462,369
91,779,744,94329,043,994,9967,055,171,0671,695,036,0803,536,859,3142,977,923,6362,992,214,500
86,834,822,53726,332,129,5236,689,783,8671,327,248,4952,441,466,4921,777,459,2412,074,069,491
139,080,944,536 127,476,979,646
4,006,207,3701,922,929,7002,258,831,283
400,220,015830,984,905
1,090,226,121240,208,585
3,048,386,1572,218,293,0951,803,929,957
333,866,575718,212,598881,168,303256,677,799
1o,749,6o7,979143,978,152
9,260,534,484202,948,239
149,974,530,667 136,940,462,369
20,754,828149,764,810,225
188,965,614
13,281,331136,738,215,424
188,965,614149,974,530,667 136,940,462,369
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
7.8 Security base-wise loans and advances including bills purchased and discountedCollateral of movable and immovable propertiesGuarantee of local banks and financial institutionsExpoit documentsFixed deposit receipts (FDR) of own BankFDR of other banksGovernment bondsPersonal guaranteeOther securities
7.9 Advance to customers group (Details of large loans and advances)
2014Taka
2013Taka
83,996,172,169390,968,736
2,892,417,7583,714,065,897
485,131,6487,356,791
33,603,578,52924,884,839,139
81,086,243,895162,700,610
3,846,093,0393,401,637,5031,561,415,867
37,816,94225,721,634,70321,122,919,810
149,974,530,667 136,940,462,369
Number of clients with amount of outstanding and classified loans to whom loans and advances sanctioned more than 10%of total capital of the Bank. Total capital of the Bank was Taka 23,434,691,457 as at 31 December 2014.
Number of clientsAmount of outstanding loans/advancesClassified amount thereonMeasures taken for recovery* Detailed shown in Annex-CName of borrowerHa-Meem GroupKeya GroupProject Builders GroupAbul Khair GroupBRACDird Composite GroupMeghna GroupSharmin GroupPakiza GroupM.A. Rahman Dying Industries Ltd.Pubali Bank Securities Ltd.Madina GroupParamount GroupPran GroupCity GroupEnvoy GroupT K GroupPHP GroupCity Seed Crushing GroupGPH GroupGrameen Phone
7.10 Classification of loans and advances including bills purchased and discountedUnclassified:
1450,182,935,000
1757,608,243,000
5,947,261,0005,124,606,0004,795,986,0004,524,131,0004,081,561,0003,338,810,0003,287,287,0003,221,132,0002,776,369,0002,769,313,0002,628,085,0002,726,159,0002,563,311,0002,398,924,000
5,945,020,0005,525,900,0004,004,729,0002,184,400,0002,282,760,0002,642,214,0003,030,287,000
2,633,175,0002,557,504,0002,201,369,0006,060,361,0004,138,318,0003,527,700,0003,066,707,0002,778,189,0002,530,840,0002,498,770,000
50,182,935,000 57,608,243,000
Standard 135,700,701,764Special Mention Account (SMA) 2,603,933,073
Classified:Sub-standard (SS)Doubtful (DF)Bad or loss (B/L)
Staff loan
124,003,931,2212,551,357,338
138,304,634,837 126,555,288,559
1,626,892,5331,377,841,7456,372,858,998
748,873,385793,331,579
6,593,899,8579,377,593,276 8,136,104,8212,292,302,554 2,249,068,989
149,974,530,667 136,940,462,369
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
7.11 Particulars of required provision for loans and advances
Status of Classification
General provision - UnclassifiedStandardSmall & Medium Enterprise financingLoans to BHs/MBs/SDs Against Share etc.Housing FinanceLoan for Professional to setup businessConsumers loan schemeShoit Term Agri Credit and Micro creditSpecial Mention Account (SMEF)Special Mention Account (CLS)Special Mention Account (LP,HF)Special Mention Account (Others)
Base for Rate of Provision)Provision
101,101,604,04725,236,488,635
2,229,282,558401,075,230
20,948,2924,162,979,9882,548,323,014
572,531,205831,561,314
60,127,9981,099,867,300
(°/0
_o
u-ir\.>r\.>|\.>|\_,i-
LFI
2.50.25
521
2014Taka
2013Taka
1,011,016,04063,091,22244,585,651
8,021,505418,966
208,148,99963,708,075
1,431,32841,578,066
1,202,56010,998,673
971,816,59747,751,71743,694,192
5,361,942430,351
169,671,74192,691,280
1,080,09439,621,574
243,83613,137,297
Specific provision - Classified1,454,201,085 1,385,500,621
Substandard (Agri & Micro credit)SubstandardDoubtful (Agri & Micro credit)DoubtfulBad/Loss
740,069969,468,430
795,838712,977,820
3,418,501,855 ,_. ou"u-i'\’u-iZ3Z
37,003193,893,686
39,791356,488,910
3,418,501,855
70,27691,525,757
209,741,2894,594,619,476
Required provisionProvision maintained (note 13.1)Excess provision
7.12 Particulars of loans and advances(i) Loans considered good in respect
of which the bank is fully secured(ii) Loans considered good for which
the bank holds no other security thanthe debtors’ personal security
(iii) Loans considered good being securedby the personal security of one or morepaities in addition to the personalsecurity of the debtors
(iv) Loans adversely classified; Provision not maintained there against
(v) Loans due by directors or officersof the bank or any of them either severally
3,968,961,245 4,895,956,7985,423,162,3305,539,660,643
6,281,457,4196,282,907,449
116,498,313 1,450,030
108,567,663,825
32,844,860,586
8,562,006,256
94,669,031,112
35,736,277,039
6,535,154,218
149,974,530,667 136,940,462,369
or jointly with any other persons 2,292,302,554
(vi) Loan due from companies or firmsin which the directors of the bank are interested asdirectors, partners or managing agents or in the caseof private companies as members
(vii) Maximum total amount of advances,including temporary advances, madeat any time during the year to directorsor employees of the bankor any of them either severallyor jointly with any other persons 2,292,302,554
2,249,068,989
2,249,068,989
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
(viii) Maximum total amount of advances,2014Taka
2013Taka
including temporary advances , grantedduring the year to the companies orfirms in which the directors of the bankare interested as directors, partnersor managing agents or in the case ofprivate companies as members.
(ix) Loans due from banking companies(x) Amount of classified loans on which interest
/profit has not been charged
a) Increasel (decrease) of provision ( specific)b) Amount written off debt
c) Amount of debt recovered against the debt which was previously written offd) Amount of Provision kept against loans classified as bad or loss
e) Amount of interest credited in suspense account
(xi) Cumulative amount of written off LoansOpening BalanceAmount of written off during the current year
2,129,700,0009,377,593,276
(1,316,711,030)(1,722,422,465)
(82,220,297)3,418,501,855
718,127,569
5,303,733,7921,722,422,465
3,165,965,0008,136,104,821
467,626,972(185,080,699)(89,708,851)
4,594,619,476646,970,801
5,118,653,093185,080,699
7,026,156,257 5,303,733,792(xii) Amount of written off loans for which law suit has been filed for recovery 7,026,156,257 5,303,733,792
7.13 Lease FinanceLease rental receivable within 1 yearLease rental receivable within 5 yearsLease rental receivable after 5 years
1,687,286,8492,973,328,504
212,430,9411,850,346,9693,460,342,859
199,887,693Total lease rental receivableLess : Un-earned interest receivable
4,873,046,2941,113,674,516
5,510,577,5211,709,363,780
Net Lease finance 3,759,371,778 3,801,213,741
7 (a) Consolidated Loans, Advances and LeasesLoans, Advances and LeasesPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
149,171,144,182745,913,657
135,706,213,417675,987,457
149,917,057,839 136,382,200,874Less: Inter Company Transactions 2,128,085,366 2,133,075,136
147,788,972,473 134,249,125,738Bills purchased and discountedPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
803,386,485 1,234,248,952
803,386,485148,592,358,958
1,234,248,952135,483,374,690
8. Fixed Assets including Premises, Furniture & Fixture CostLandBuildingVehiclesMachinery and equipmentsComputer & computer accessoriesFurniture and fixtures
2,273,993,992918,006,184200,398,266569,189,395
1,025,252,215445,854,910
2,276,633,992918,856,184174,070,267511,363,926665,170,065385,775,393
Less: Accumulated depreciation5,432,694,962
1,408,118,7944,931,869,827
1,195,882,393Net book value at the end of the year 4,024,576,168 3,735,987,434
The above amount includes revaluation surplus of Tk. 8,103,355, Tk. 230,540,953, Tk. 86,361,299,Tk. 800,757,736 and Tk.1,893,934,000 asceitained by independent values in 1986, 1992, 1996, 2006 and 2010 respectively, on land and buildings of theBank at different locations. The above stated revaluation surplus amounts have been credited to capital reserve. Further details ofabove assets are shown in Annex- A.
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
8 (a) Consolidated Fixed Assets including Premises, Furniture & FixtureCostPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
Less: Accumulated depreciationPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
9. Other AssetsIncome generating Other AssetsInterest accrued on investmentsAccrued income on loans & advancesAdvance security deposit, advance rent and prepaid expensesInvestment in subsidiary company
Non-income generating Other AssetsStationeiy and stampsDrafts payableBalance retained with BB (Agri-Credit)Suspense account (note 9.1)Demonetized notes (note 9.2)Items in transit (note 9.3 )Advance against income tax (note 9.4)Clearing house adjustmentOthers (note 9.5 )
9.1 Suspense accountSuspense account generalSuspense lawProtested bills
9.2 Demonetized Notes: Tk. 1,531,750This relates to demonetized notes lying with Bangladesh Bank, after due reimbursement.
9.3 Items in Transit: Tk. 2,972,304,696
2014Ta ka
2013Taka
5,432,694,9625,681,080
4,931,869,8275,354,0224,012,896
5,438,376,042 4,941,236,745
1,408,118,7943,514,550
1,195,882,3932,635,4511,874,979
1,411,633,344 1,200,392,8234,026,742,698 3,740,843,922
1,326,609,43686,200,442
213,787,1661,599,998,700
1,072,457,73281,463,516
145,122,0051,627,836,681
3,226,595,744 2,926,879,934
65,166,65251,599,731
257,105,3371,531,750
2,972,304,69615,363,607,181
118,582,72788,577,689
86,527,226107,021,016
2,700,000140,284,435
1,531,7502,069,161,306
12,034,218,14682,864,94992,121,890
18,918,475,763 14,616,430,71822,145,071,507 17,543,310,652
188,473,8661,390,433
67,241,03879,359,498
1,613,60359,311,334
257,105,337 140,284,435
The above is the net amount representing outstanding Inter-branch and Head Office transactions originated but yet to beresponded at the balance sheet date. The above amount includes receivables of Tk. 29,99,670 of Bank's own branches operating informer West Pakistan before Liberation of the country in 1971.
Notes to the financial statements for the year ended 31 December 2014
9.3.1 Subsequent position of non-responded entries as on 23.02.2015
9.4
9.5
9.6
9.7
9
Pubali Bank Limited Annual Report 2014
No. of Un-res onded entries
2014Ta ka
2013Taka
Period of un-reconciliation Debit Credit Debit CreditUp to 3 months 182 1,427 609,793,671 69,220,421Over 3 months but within 6 months 10 94 996,856 432,344Over 6 months but within 1 year 7 108 1,331,124 114,004Over 1 year but within 5 years 12 15 2,526,638 462,289
-l>(X) LOOver 5 years 451 7,224,303
Un-responded entries (Amount in TakaLl
4,224,633
Advance income Tax
Balance at the beginning of the yearPaid during the yearSettlement of previous years tax liability
12,034,218,1463,329,389,035
9,527,388,9692,506,829,177
Balance at the end of the year 15,363,607,181 12,034,218,146
OthersProperty accountAccrued interest overdue under CLSDelayed charges of lease rentalInterest subsidyInterest suspense against waiver of 50% BSCIC loanWaiver of 50% outstanding BSCIC loanSettlement bank A/C Arab Bangladesh bankWaiver of 50% interest for flood affected jute borrowersWaiver of 70% outstanding agricultural credit & rural credit
162,12983,925,816
66,7819,000
245,06144,176
1,068,6101,351,8121,704,304
162,12988,136,432
66,7819,000
245,06144,176
402,1951,351,8121,704,304
88,577,689 92,121,890Classification of Other Assets
UnclassifiedSub-standard (SS)Doubtful (DF)Bad/Loss (BL)
22,067,387,7021,250,433
76,433,372
17,473,801,55160,784,9378,724,164
22,145,071,507 17,543,310,652Particulars of provision for Other Assets
Status of Classification Base for provision Rate of Provision (%)
Doubtful 1,250,433 50Bad/Loss 76,433,372 100
625,21776,433,372
30,392,4698,724,164
Required provisionProvision maintained (note 13)
77,058,589190,047,479
39,116,633162,194,042
Excess provision 112,988,890 123,077,409
Consolidated Other AssetsPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
22,145,071,507112,744,941
9,276,499
17,543,310,65297,604,704
2,287,61822,267,092,947 17,643,202,974
Less: Inter-company transactionsPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
(9,290,309)(1,599,998,700)
(77,983)(1,599,998,700)
(27,837,981)(1,609,z89,009)_ (1,627,914,664)_20,657,803,938 16,015,288,310
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
10 Non-banking AssetsAssets of United Bank of India Ltd. located in( Dhaka South, Comilla, Rajshahi)
LIABILITIES AND CAPITAL
11. Borrowings from other Banks, Financial Institutions and AgentsInside Bangladesh (note 11.1)Outside Bangladesh (note 11.2)
11.1 Inside BangladeshRepo from Bangladesh Bank against Treasury Bill and BondCall loan from Citibank N.A.Call loan from Sonali Bank Limited,Local Office,Dhaka.Sonali Bank Limited,Local Office,Dhaka.
11.2 Outside Bangladesh
2014Taka
2013Taka
375,246 375,246
2,440,229,241
936,546,745
4,003,889,221
145,458,4783,376,775,986 4,149,347,699
1,021,950,000500,000,000800,000,000118,279,241
3,697,500,000
306,389,2212,440,229,241 4,003,889,221
As at 31 December 2014 As at 31 December 2013ForeignName of Bank Currency rate erName punit FC
Conversion Amountin foreigncurrency
EquivalentTaka
Conversion Amount E "Wentrate per in foreign qT kunit FC curren a aCY
In demand deposit accounts (non-interest bearing) with:AB Bank Ltd, Mumbai ACUD 77.95Citi Bank NA, New York USD 77.95COMMERZ Bank, AG Frankfrut EURO -HSBC, New York USD 77.95JP Morgan Chase Bank, New York USD 77.95Peoples Bank, Colombo (Vostr0 A/C) ACUD -
93678.609815264.79
182189.00192367100
7,302,191765,094,001
106.82 111,215.49 11,879,89714,201,537 77.75 108,345.42 8,423,856
149,949,016 77.75 1,319,949.03 102,626,03777.75 289,758.04 22 528 688
936,546,745 145 458 478 l
11.3 Security against borrowing from other banks,financial institutions and agentsSecuredUnsecured
11.4 Maturity grouping of borrowing from other banks,financial institutions and agentsPayable on demandPayable within 1 monthOver 1 month but within 6 monthsOver 6 months but within 1 yearOver 1 year but within 5 yearsOver 5 years and above
2,076,775,9861,300,000,000
4,149,347,6993,376,775,986 4,149,347,699
3,376,775,986 4,149,347,699
3,376,775,986 4,149,347,699
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
12. Deposits and other accountsInter-bank depositsOther deposits
12.1 Details of deposits and other accountsCurrent deposits and other accounts :Current accountCash credit A/C. (Cr. Balance)Pubali Prochesta (Cr. Balance)Q-cash (Cr. Balance)Call depositsForeign currency depositsUn- claimed drafts payableUn- claimed dividendUnclaimed deposits FDD A/C
Bills payable (note 12.1.1)
Savings Bank accountsTerm deposits:Fixed deposits - from customersSpecial notice depositsDeposit pension schemeInterest payable on term depositPubali pension schemePubali sanchay prakalpaDwigun sanchay prakalpa
Target based small deposit (Pubali shopnopuron)Monthly profit base depositMonthly profit based small deposit (Pubali shadhin sonchoy)Shikhya sanchay prokalpaChild edu. Care & maturity deposit
Other deposits
12.1.1 Bills payablePay orders issuedDemand drafts
12.2 Maturity analysis of inter-bank depositsPayable on demandPayable within 1 monthOver 1 month but within 6 monthsOver 6 months but within 1 yearOver 1 year but within 5 yearsOver 5 years and above
12.3 Maturity analysis of other depositsPayable on demandPayable within 1 monthOver 1 month but within 6 monthsOver 6 months but within 1 yearOver 1 year but within 5 yearsOver 5 years and above
2014Taka
2013Taka
1,175,423,281191,914,820,116
214,809,989177,663,362,438
193,09o,243,397 177,878,172,427
19,599,377,014466,508,161
6,230,8761,430,943
25,302,2521,041,692,121
3,56418,914
16,338,484
16,727,849,918441,449,914
2,098,4373,185,228
27,739,177861,217,280
3,56418,914
16,246,49521,156,902,329 18,079,808,927
3,824,137,445 2,872,700,896
45,159,141,790 40,232,632,888
64,445,868,43320,823,994,538
1,437,3963,424,637,1976,238,539,2944,286,071,380
15,803,184,151249,850,151
2,304,849,200469,789,721144,577,522
6,274,180
65,857,426,84418,284,740,519
8,902,2343,658,732,2593,451,854,4354,177,760,847
14,626,581,144148,306,415
1,688,493,858256,592,805121,437,225
3,262,533118,199,073,163 112,284,091,118
4,750,988,670 4,408,938,598193,09o,243,397 177,878,172,427
3,555,922,073268,215,372
2,454,895,997417,804,899
3,824,137,445 2,872,700,896
505,103,30549,204,493
621,115,483
39,488,49024,218,382
151,103,117
1,175,423,281 214,809,989
20,459,262,26511,885,396,07251,342,817,57142,085,977,38422,336,318,96343,805,047,861
17,053,798,93311,379,199,28850,868,811,55736,534,207,17328,174,088,35833,653,257,129
191,914,820,116 177,663,362,438193,090,243,397 177,878,172,427
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
12 (a)
13
Consolidated Deposits and other accountsPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
Less: Inter Company Transactions (Figure of 2013 restated)Other LiabilitiesAccumulated provision for loans and advances (note 13.1.1 )Accumulated provision for consumers loan (note 13.1.2)Accumulated provision for lease finance (note 13.1.3)Accumulated provision for demand loan pubali star (note 13.1.4)
Provision for unclassified loans and advances (note 13.1)Provision @1% against off-balance sheet exposure (note 13.2)Accumulated interest suspense (note 13.3 )Provision for doubtful investmentAdditional profit payable A/C for Islamic bankingI.B. bad debt offsetting reserveInterest suspense on underwriting advancesCLS interest A/CAccrued interest receivable on overdue CLS A/CConsumers depositsLease depositUnpaid dividendSpecial blocked account (note 13.4)Provision for Current Tax (note 13.5 )Provision for Deferred Tax (note 13.5.1)Valuation adjustmentExchange adjustment account (note 13.6 )Agri credit guarantee backing reserve (note 13.7)Excise dutyPakistan account (note 13.8 )Pension fund (note 13.9 )L/C cover account in BangladeshEDF adjustmentPubali bank adjustmentSadaqah fundCard transaction fee (interbank)Foreign currency FCC accountInterest suspense account against 70% agri loanBlocked account of UB1Propeity account of UB1Payable to Pubali Exchange Co. (UK)Non resident blocked account of UBI
Provision for expenses:(i) audit fee(ii) advertisement(iii) bonuses(iv) others
2014Taka
2013Taka
193,090,243,397 177,878,172,427
193,090,243,397 177,878,172,427437,100,218 228,108,325
192,653,143,179 177,650,064,102
3,370,599,256707,510,047
1,596,3415,753,914
4,204,501,888690,762,170
1,596,341546,429
4,085,459,558 4,897,406,8281,454,201,085
476,800,000718,127,569
18,750,460238,845
2,606,000270,415,969
10,589,42082,855,73274,495,030
311,582675,231
1,215,64017,169,338,725
647,073,577415,423,408
28,666,87870,261,3006,716,5928,393,0391,570,8831,583,640
2,819,139,78640,411,840
2,664,436944,412
17,363,819192,382
2,973,18649,617
9,276,49934,487
1,385,500,621464,300,000646,970,801
18,750,460207,893
1,986,000270,415,969
13,120,92184,297,99677,268,469
139,544675,231
1,215,64014,374,209,813
368,835,153436,907,462
28,666,87870,261,3006,318,6158,393,0391,570,8831,583,640
2,468,259,79138,137,9372,009,790
12,88217,363,819
192,3822,973,186
49,61734,487
24,353,361,069 20,790,630,219
1,515,0005,000,000
376,939,36347,778,543
1,315,0002,845,000
300,768,71145,592,606
431,232,906 350,521,317
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
13.1
13.2
13.3
13.4
13.5
Provision for other assets:Unreconciled debit entries in Nostro A/C (note 13.10)Suspense account (note 13.11 )Demonetized notes (note 13.12 )Provision for un-reconciled general account debit entries (note 13.13)ICT asset insurance resen/eReserve for unforeseen losses
Accumulated provision for loans and advancesSpecific provision on classified loans and advances
Provision held at the beginning of the yearFully provided debts written off during the yearRecoveries of amounts previously written offProvision transferred inSpecific provision for the year
13.1.1 Provision for general loans and advances13.1.2 Provision for consumers loan13.1.3 Provision for lease finance13.1.4 Accumulated provision for demand loan pubali star
Provision held at the end of the yearGeneral provision for unclassified loans and advances
Provision held at the beginning of the yearExcess provision transferred inProvision made during the yearProvision held at the end of the year
Provision for exposure against off balance sheet itemsProvision held at the beginning of the yearProvision transferred inProvision made during the year ( Note 37)Provision held at the end of the year
Interest suspense accountBalance at the beginning of the yearAmount transferred during the yearAmount recovered during the yearAmount written off during the yearBalance at the end of the year
Special blocked account: Tk. 1,215,640
2014Taka
2013Taka
63,714,468989,740
13,724,6577,200,120
104,418,494
721,32358,714,468
989,7408,724,6575,840,308
87,203,546190,047,479 162,194,042
29,060,101,012 26,200,752,406
4,204,501,888(1,722,422,465)
82,220,297806,299,536
2,099,937,183(185,080,699)
89,708,85176,925,987
2,123,010,5663,370,599,256
707,510,0471,596,3415,753,914
4,204,501,888690,762,170
1,596,341546,429
4,085,459,558 4,897,406,828
1,385,500,621
68,700,464
1,462,426,608(76,925,987)
1,454,201,085 1,385,500,6215,539,660,643 6,282,907,449
464,300,00012,500,000
414,300,00050,000,000
476,800,000 464,300,000
646,970,801859,405,858
(419,099,763)(369,149,327)
298,452,532736,234,415
(347,894,858)(39,821,288)
718,127,569 646,970,801
This represents refundable balance exceeding Tk.8,000 primarily disbursed to each depositor originated fromreimbursement of demonetized notes by Bangladesh Bank in the year 1975. The amount is repayable todepositor after receipt of value of demonetized notes deposited to Bangladesh Bank.
Provision for Current taxBalance at the beginning of the year 14,374,209,813Provision made for previous year I 228,492,990
11,434,261,128
Provision made for current year 2 566 635 922
Settlement of previous year's tax liabilityBalance at the end of the year
2,939,948,6852,795,128,912 2,939,948,685
17, 169,338,725 14,374,209,813
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
The status of corporate income tax of the bank has been shown in Annex-B
13.5 (a)
13.5.1
13.5.1 (a)
13.5.1(b)
13.5.2
13.6
13.7
13.8
13.9
13.10
Consolidated Provision for Current taxPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
Provision for Deferred TaxMaintained the deferred tax liability in this year as per BAS- 12 "Income Taxes"Balance at the beginning of the yearProvision made during the yearProvision held at the end of the yearConsolidated Provision for Deferred Tax in current yearPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Limited
Consolidated Provision for Deferred Tax (accumulated)Maintained the deferred tax liability in this year as per BAS- 12 "Income Taxes".Balance at the beginning of the yearProvision made during the yearProvision held at the end of the year
Tax Provision made during the YearCurrent TaxDeferred Tax
Exchange adjustment account: Tk. 28,666,878
2014Taka
2013Taka
2,795,128,91233,798,884
2,939,948,685
2,828,927,796 2,939,948,685
368,835,153278,238,424
227,530,461141,304,692
647,073,577 368,835,153
278,238,424(171,249)
141,304,69240,096,418
278,067,175 181,401,110
368,844,062278,067,175
187,442,952181,401,110
646,911,237 368,844,062
2,795,128,912278,238,424
2,939,948,685141,304,692
3,073,367,336 3,081,253,377
This represents windfall gains from devaluation of Bangladesh Taka in the years 1975 and 1976 through barter transactionswith socialist countries and the same is being carried forward since then. The account would be settled as per instruction ofBangladesh Bank.
Agri credit guarantee backing reserve: Tk. 70,261,300This represents the surplus amount retained by the Bank which was received till the end of 1984 as government guaranteetotaling Tk. 112,358,000 under Tk 100 crore special agri credit scheme disbursed during the years from 1977 to 1983.Repayment of the above to the government would be made in due course to the extent of recovery of aforesaid agri credit.
Pakistan account: Tk. 8,393,039This represents net liability to Bank's own branches operating in former West Pakistan before Liberation of the country and remainsunsettled as yet.Pension fund: Tk. 1,570,883This fund has been created from profit up to the year 1985 to defray pension settlements of the Bank's eligible employees. Sincethen, up to the year 2005 no provision for pension has been made but claims for pension are being settled from expenditure accountof the year it is incurred.Provision for nostro accountsAs per instruction contained in the Bangladesh Bank circular letter N0. FEPD (FEMO)/01/2005-677 of 13 September 2005, the Bank isrequired to make provision regarding the unreconciled debit balance of nostro accounts as on the repoiting date in the financialstatements which is as follows:
Provision at the beginning of the year 721,323 721,323Provision transferred out (721,323) -Provision at the end of the year - 721,323
Notes to the financial statements for the year ended 31 December 2014
Pubali Bank Limited Annual Report 2014
13.11 Provision for suspenseProvision at the beginning of the year 58,714,468 58,714,468Provision made during the year 5,000,000 -Provision at the end of the year 63,714,468 58,714,468
This represents provision for suspense or contingencies for the period prior to privatization of the Bank made in the year 1985,2004 &2014 as per vendor's agreement.
13.12 Provision for demonetized notes: Tk. 989,740This is as per accounts of earlier years. Representing provision out of demonetized notes of Tk. 1,531,750 of 1975 which remainsunsettled with Bangladesh Bank.
13.13 Provision for Un-reconciled General Account debit entries
13(a)
14.
14.1
14.2
2014Taka
2013Taka
. .. . Amount Base for ProvisionPeriod of un-reconciliation .Provision Required
Outstanding (%) 2014 2013
Less than 12 months -12 months and above but less than 24 months 164,000 82,000 1,025,41924 months and above 9,586,941 I 100% 9,586,941 7,224,303Required ProvisionProvision MaintainedExcess Provision
Consolidated other liabilitiesPubali Bank LimitedPubali Bank Securities LimitedParents Subsidiary loanInter company payablePubali Exchange Company (UK) Ltd.
CapitalAuthorized capital2,000,000,000 ordinary shares of Tk. 10 each
Issued, subscribed and paid up capital1,600,000 ordinary shares of Tk. 100 each issued for cash400,000 ordinary shares of Tk. 100 each as bonus share in 20002,000,000 ordinary shares of Tk. 100 each as bonus share in 20048,000,000 ordinary shares of Tk. 100 each as bonus share in 20059,000,000 ordinary shares of Tk. 100 each as bonus share in 20068,400,000 ordinary shares of Tk. 100 each as bonus share in 20078,820,000 ordinary shares of Tk. 100 each as bonus share in 200811,466,000 ordinary shares of Tk. 100 each as bonus share in 2009173,901,000 ordinary shares of Tk. 10 each as bonus share in 2010167,690,250 ordinary shares of Tk. 10 each as bonus share in 201141,922,562 ordinary shares of Tk 10 each as bonus share in 2013
All shares have been converted to Tk. 10 each in EGM held on 15 July 2010.
9,668,94113,724,657
8,249,7228,724,657
4,055,716
29,060,101,0123,577,130,588
(2,128,085,366)(9,290,309)9,276,499
474,935
26,200,752,4063,292,020,369
(2,133,075,136)(77,983)
8,395,95130,509,132,424 27,368,015,607
20,000,000,000 20,000,000,000
160,000,00040,000,000
200,000,000800,000,000900,000,000840,000,000882,000,000
1,146,600,0001,739,010,0001,676,902,500
419,225,620
160,000,00040,000,000
200,000,000800,000,000900,000,000840,000,000882,000,000
1,146,600,0001,739,010,0001,676,902,500
8,803,738,120 8,384,512,500
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2014 2013Taka_ _ Taka
14 3 Paid up capital as per shareholders category
Particular 20132014 I11 INo. of share I Percentagg(% Amount AmountDirectorsCo-operative societiesBanks and financial institutionsGovernmentOther institutionsNon resident BangladeshiGeneral public
229,487,86012,908,27728,919,690
2,126177,875,57723,973,609
407,206,673
26.05% 2,294,878,6001.47% 129,082,7703.29% 289,196,900
0.0002% 21,26020.21% 1,778,755,7702.72% 239,736,090
46.26% 4,072,066,730
1,775,893,060151,119,000258,206,070
20,2501,845,868,900
217,755,3404,135,649,880
880,373,812 100.00% 8,803,738,120 8,384,512,500
14 4 Range wise shareholdings
Range wise shareholding2014 I 2013
Number ofshareholders
Percentageof holding ‘ NumberofShares ‘ NumberofShares
of shares (%)Up to5015,00110,001 "20,001 "30,001 "40,001 "
500 sharesto 5,000 "
10,000 "20,000 "30,000 "40,000 "50,000 "
50,001 " 100,000 "100,001 and above
14 5 Capital Adequacy Ratio (CAR):
24,7211,638
86434511981
316
64,403 0.784.441.291.350.980.460.412.59
87.70
6,880,94339,073,17911,361,75011,877,2928,608,9014,077,2233,590,974
22,791,855772,111,695
8,088,34744,537,70913,105,15213,265,7528,921,2995,234,7133,076,242
22,079,709720,142,327349
92,836 100.00 880,373,812 838,451,250
In terms of section 13 (2) of the Bank Companies Act, 1991 and Bangladesh Bank BRPD circulars nos. 14,09,20,10,12,24,31,35,08,16 and 01 dated December 30, 2007, December 31, 2008, December 29,2009, March 10, 2010, March 29, 2010, August 03, 2010,October 25, 2010, December 29, 2010, July 23, 2012, October 29, 2012 and January 01, 2014 respectively, required capital of theBank at the close of business on 31 December 2014 was Taka 19,963,670,000 as against available core capital of Taka19,894,606,759 and supplementary capital of Taka 3,540,084,698 making a total capital of Taka 23,434,691,457 thereby showing asurplus capital/equity of Taka 3,471,021,457 at that date. Details are shown below:Total assets including off-balance sheet itemsTotal risk-weightedRequired Capital (10% of risk weighted assets)
Actual capital held
€:lSSEtS
i ) Core Capital ( Tier-i )ii ) Supplementary capital ( Tier-ii )
Total Capital Surplus /( Deficit)
Capital Adequacy Ratio(CAR) based on Basel II framework:
Capital Requirement :Tier-I (Minimum)Tier-II (Balancing)Total
Paid—up capitalStatutory reserveGeneral reserve
14 5.1 Core Capital (Tier-i)
295,924,910,364199,636,700,00019,963,670,000
23,434,691,457
274,272,021,379179,692,300,00017,969,230,000
21,os2,873,31919,894,606,759 H3,540,084,698
17,243,701,9043,839,171,415
3,471,021,457 3,113,643,319
Required
11.74°/o
Held
11.73%
5.00°/05.00%
10.00%
9.97%1.77%
11.74%
8,803,738,1208,400,249,4822,690,619,157
9.60%2.14°/0
11.73%
8,384,512,5007,171,549,9191,687,639,485
19,894,606,759 17,243,701,9o4
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
14.5.2 Supplementary capital (Tier-ii )
2014 2013Taka Taka
Provision maintained against unclassified loans including SMA 1,454,201,085 1,392,426,608Provision @ 1.00% against off-balance sheet exposuresAsset revaluation reserve up to 50%Revaluation resen/e for equity instruments up to 10%Revaluation reserve for securities up to 50%
Total actual capital maintained
14.6 Particulars of shareholding of the directors
SLNo.
Name of the directors Status
476,800,000 464,300,0001,449,354,627 1,450,476,127
141,678,310 466,526,72618,050,676 65,441,954
3,540,084,698 3,839,171,41523,434,691,457 21,082,873,319
2014 2013No. of shares Amount (Tk) No. of shares Amount (Tk)_
,_1 Mr. Hafiz Ahmed Mazumder Chairman 17,616,118 176,161,180 16,777,256 167,772,560I\J Mr. Habibur Rahman Vice-Chairman 17,620,601 176,206,010 16,781,525 167,815,250uu Mr. Moniruddin Ahmed Director 28,678,059 286,780,590 27,312,438 273,124,380
-I5 Mr. Syed Moazzem Hussain Director 17,635,150 176,351,500 16,795,381 167,953,810U1 Mr. Monzurur Rahman Director 17,608,124 176,081,240O‘\ Mr. Ahmed Shafi Choudhury Nominee Director 17,729,147 177,291,470 68,090 680,900\l Mr. Fahim Ahmed Faruk Chowdhuw Vice-Chairman 18,066,119 180,661,190 17,205,828 172,058,280I Ms. Rumana Sharif Nominee Director 17,850,000 178,500,000 45,680 456,800KO Mr. Mustafa Ahmed Director 19,230,536 192,305,360 18,314,797 183,147,970
>-4 Z Mr. Musa Ahmed Director 17,650,207 176,502,070 16,809,722 168,097,220,_. ,_. Mr. Azizur Rahman Director 22,192,342 221,923,420 21,135,564 211,355,6401- l\I Mr. M. Kabiruzzaman Yaqub Director 17,609,882 176,098,820 16,771,317 167,713,170,_. Lu Mr. Khurshid-ul-Alam Independent Director>-A -J> Dr. Shahdeen Malik Independent Director 1,575 15,750 1,500 15,000
229,487,860 2,294,878,600 168,019,098 1,680,190,980
14.7 Related party disclosures
14.7.1 Particulars of directors and their shareholding in the Bank
SL.No Name of the Directors Designation
Percentage of Percentage ofshareholding at shareholding at31 Dec 2014 31 Dec 2013
1.- Mr. Hafiz Ahmed Mazumder Chairman 2.00 2.00N Mr. Habibur Rahman Vice-Chairman 2.00 2.00LA) Mr. Moniruddin Ahmed Director 3.26 3.26A Mr. Syed Moazzem Hussain Dil'eCt0r 2.00 2.00U'l Mr. Monzurur Rahman Director 2.00O\ Mr. Ahmed Shafi Choudhury Nominee Director 2.01 0.01\l Mr. Fahim Ahmed Faruk Chowdhury Vice-Chairman 2.05 2.05O0 Ms. Rumana Sharif Nominee Director 2.03 0.01KO Mr. Mustafa Ahmed Director 2.18 2.18
i-~ O Mr. Musa Ahmed Director 2.00 2.00l—l l—'~ Mr. Azizur Rahman Dil'eCtOr 2.52 2.52l—* N) Mr. M. Kabiruzzaman Yaqub Director 2.00 2.00i—~ co Mr. Khurshid-ul-Alam Independent Director - -14 Dr. Shahdeen Malik Independent Director 0.0002 0.0002
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
14.7.2 Name of directors and the entities in which they
SLN0- Name of the Directors Status in the Bank
have interest
Name of the entities in whichthe directors have interest
2014Taka
2013Taka
Percentage ofStatus in the entities interest/No. of share in
the entites1 Mr. Hafiz Ahmed Mazumder Chairman I. Green Valley Plantation Ltd.
2. Beauty Garments Ltd.Managing DirectorManaging Director
84,705 shares14.00%
2 Mr. Habibur Rahman Vice-Chairman1. Delta Medical College and Hospital2. Pubali Bank Securities Ltd.3. Global Pharmaceutical Company Ltd.
DirectorDirectorDirector
3.41%1 share
3 Mr. Moniruddin Ahmed Director 1. Pubali Bank Securities Ltd. Chairman 1 share
4 Mr. Syed Moazzem Hussain Director1. Prince Corporation Ltd.2. Moazzem Knit 81 Dyeing Industry Ltd.3. Shapla Bricks Ltd.
ChairmanChairmanChairman
78.72%7.56%
10.00°/0
5 Mr. Monzurur Rahman Director1. Rema Tea Company Ltd.2. Pubali Bank Securities Ltd.3. Delta Life Insurance Company Ltd.
ChairmanDirectorDirector
24.17%1 share2.82%
6 Mr. Ahmed Shafi Choudhury Nominee Director 1. Pubali Bank Securities Ltd.2. Bangladesh Lamps Ltd.
DirectorIndependent Director
1 share
Mr. Fahim Ahmed Faruk7 Chowdhury Vice-Chairman
1. Chittagong Electric Manufacturing Co. Ltd.2. F. A. C Eastern Enterprise Ltd.3. Ranks FC Properties Ltd.4. Delta Medical Hospital Ltd.5. Surjiscope Hospital Pvt. Ltd.
Managing DirectorManaging DirectorManaging Director
DirectorDirector
15,000 shares485 shares
40.00%705,000 shares
10,000 shares8 Ms. Rumana Sharif Nominee Director Nil9 Mr. Mustafa Ahmed Director 1. Pubali Bank Securities Ltd. Director 1 share
10 Mr. Musa Ahmed Director
1. Popular Jute Exchange Ltd.2. Popular Jute Mills Ltd.3. Comilla Food and Allied Ind. Ltd.4. Popular Food and Allied Ind. Co. Ltd.5. Tejgaon Engineering and Construction Co. Ltd.
DirectorDirectorDirectorDirectorDirector
11 Mr. Azizur Rahman Director1. Pubali Bank Securities Ltd.2. National Ceramic Industries Ltd.3. Dressmen Fashionwear Ltd.
DirectorDirectorDirector
1 share
12 Mr. M. Kabiruzzaman Yaqub Director I. Imagine Properties Ltd.2. Pubali Bank Securities Ltd.
ChairmanDirector
50.00%I share
13 Mr. Khurshid-ul-Alam Independent Director Nil14 Dr. Shahdeen Malik Independent Director 1. Pubali Bank Securities Ltd. Independent Director
14.7.3 Significant contracts where the Bank is a party and wherein directors have interest: Nil
14.7.4 Shares issued to directors and executives without consideration or exercisable at a discount : Nil
14.7.5 Related party transactions
Name Of Part)! Related to Nature of transactionsNil NilNone
15. Statutory reserveThis represents amounts transferred to this resen/e as per section 24 of BankingCompanies Act 1991 @ 20% of current year's profit, before tax.Balance at the beginning of the year 7,171,549,919Add: Addition during the year 1,228,699,563
Amounts (Tk.)Nil
6,094,191,6481,077,358,271
Balance at the end of the year 8,400,249,482 7,171,549,919
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
16. Retained earnings (General reserve)Balance as on 1 JanuaryAddition during the year:Add: sale of properties
Less: Issue of dividendBalance as on 31 December
16(a) Consolidated Retained earnings (General reserve)Pubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
17. Other reserves17.1 Assets revaluation resenie
Balance at the beginning of the yearAddition on revaluation of Fixed Assets/ Investment During the YearDisposal during the year
Share forfeiture accountBalance at the end of the year
17.2 Exchange equalization fundBalance at the beginning of the yearAddition during the yearBalance at the end of the year
17 (a) Consolidated Other reservesPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
18. Profit & loss account surplusBalance at the beginning of the yearProfit after tax during the year
Appropriation for the yearStatutory reserveGeneral resen/e
Balance at the end of the year
18(a) Consolidated Profit and loss account surplusBalance at the beginning of the yearProfit after tax during the year
Appropriation for the yearStatutory reserveGeneral resen/e
Balance at the end of the year19. Non-controlling interest
Balance b/fShare of current year profit
2014Taka
2013Taka
1,687,639,4851,841,430,917
1,297,911,0301,228,179,705
3,529,070,402(838,451,245)
2,526,090,735(838,451,250)
2,690,619,157 1,687,639,485
2,690,619,157(812,852,987)
1,687,639,485(856,292,14o)
125,655,900)1,877,766,170 805,691,445
3,031,502,1763,029,757,098
(3,126,782,654)
2,997,790,8865,305,583,644
(5,271,872,354)2,934,476,620
333,9843,031,502,176
333,9842,934,810,604 3,031,836, 160
29,959,972 29,959,972
29,959,972 29,959,9722,964,770,576 3,061,796,132
2,964,770,57684,170,706
3,061,796,13284,170,706
3,048,941,282 3,145,966,838
3,070,130,480 2,305,537,9763,070,130,480
1,228,699,5631,841,430,917
2,305,537,976
1,077,358,2711,228,179,705
3,070,130,480 2,305,537,976
3,115,315,919 2,431,604,5673,115,315,919 2,431,604,567
1,228,699,5631,886,616,356
1,077,358,2711,354,246,296
3,115,315,919 2,431,604,567
58935
482107
624 589
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
20.
21.
21(a)
22.
Letter of guarantee
Claims against the Bank not acknowledged as debts Money for which the Bankis contingently liable in respect of guarantees given favoring:1.Government2.Directors3.Banks and other Financial institutions4.0thers
Interest incomeLoansCash creditsOver draftsLoan against imported merchandiseLoan against trust receiptInland bill purchased & demand draft purchasedForeign bill purchased and Export development fundPacking creditsPayments against documentCall loansLoans against deposit pension schemeAgricultural credits & rural creditsSundries accountCLS accountSecured mortgagesForeign bank accountsLoan against Shikya Sanchay ProkalpaLoan against Non-resident Credit SchemeLease financeLoan against Pubali Sanchay ProkalpaLoan against FDRTerm loansLoan against Pubali Pension Scheme
Consolidated interest incomePubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.Inter company transaction
Interest paid on deposits, borrowings, etc.Fixed depositInterest on repo borrowingsShort-notice depositSavings bank depositDeposit pension schemePubali bank pension schemeChild education care & maturity depositsCall borrowingMonthly monafa based deposit schemePubali Sanchay ProkalpaShikhya Sanchay ProkalpaQ-Cash Debit Card
2014Taka
2013Taka
500,000,0006,536,861,649
244,068,737500,000,000
5,074,293,3207,036,861,649 5,818,362,057
1,769,086,8973,992,510,8814,438,240,175
34,551,7141,540,073,781
95,312,37833,071,24337,571,986
180,025,681148,491,524
30,21218,478,47740,991,572
666,885,9011,212,869,526
30,999,678896,299
56,310507,104,88653,150,8068,353,402
2,398,048,18927,343,028
1,447,345,8983,892,278,5904,028,395,517
1,115,2362,145,407,218
138,393,33842,783,97033,359,334
387,974,867280,101,450
662,8999,301,699
95,064,839638,499,653
1,533,701,70231,956,089
708,280176,671
531,294,54845,832,90414,202,531
1,910,543,70511,783,342
17,234,144,546 17,220,884,280
17,234,144,54695,665,839
17,220,884,28094,166,535
17,329,810,385 17,315,o50,815
6,639,853,51989,540,363
1,182,871,8441,131,780,859
390,316475,003,848
607,74776,209,94437,061,685
315,630,15010,903,862
91,333
7,053,189,957261,622,038935,233,818
1,169,561,7462,507,385
239,108,259597,099
50,545,61140,335,733
306,699,1538,930,369
798,743
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
Dwigun Sanchay ProkalpaTreasury BondMarking to Market RevaluationInterest on MPSDInterest on TBSDInterest on MFD A/CSundry accounts
22 (a) Consolidated Interest paid on deposits, borrowings, etc.Pubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.Inter company transaction
23. Income from investmentInterest on treasury billInterest on treasury bondInterest on private bondInterest on debenturesInterest on Bangladesh Bank billGain on sale of sharesDividend on shares
23 (a) Consoildated Income from investmentPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
24. Commission, exchange and brokerageSC, LSC, DD, Tl‘, MT and POForeign L/CLocal L/CIssuance of foreign guaranteeIssuance of local guaranteeIssuance of traveller's chequeOther transactionsMiscellaneous handling commissionConsumers creditCommission on stationery aiticlesPoint of service (POS) transactionsIncome A/C commission OnlineTotal commissionExchange (Note 24.1)
24.1 ExchangeExchange gainLess: Exchange loss
24 (a) Consolidated Commission, exchange and brokeragePubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
2014Taka
2013Taka
1,918,483,71172,760,988
5,845,50132,381,91916,622,299
192,927,0191,138,581
1,562,583,42424,882,358
131,54716,080,4019,814,170
136,501,1232,115,788
12,200,105,488
12,200,105,488
11,821,238,722
11,821,238,722
12,200,105,488 11,821,238,722
2,221,441,7562,683,220,153
85,425,295605,754
75,662,210482,569,855438,882,440
2,078,183,4421,839,466,817
72,968,8251,154,247
102,974,094537,787,197267,156,929
5,987,807,463 4,899,691,5515,987,807,463
73,211,3194,899,691,551
42,058,784
6,061,018,782 4,941,750,335
37,732,920280,410,352103,132,846
154,77098,106,399
227,736201,466,134122,888,580
1,573,366536,005514,859
49,983,240267,102,727100,562,610
201,53891,953,527
782,998336,031,612101,293,600
1,287,901743,070
759,503,699
846,743,967562,987,740
959,446,597551,256,716
1,409,731,707 1,510,703,3133,499,740,5442,936,752,804
3,189,383,5462,638,126,830
562,987,740 551,256,716
1,409,731,70758,379,0339,831,615
1,510,703,31366,496,9419,303,396
1,477,942,355 1,586,503,650
Pubali Bank Limited Annual Report 2014
Other operating incomeRent recoveryPostage and telecommunication recoveryMiscellaneous incomeMiscellaneous income supervision and monitoringMiscellaneous income transfer feeRecovered from bad debt written offSwift incomeApplication fee of CLS accountAccount opening charge of CLS accountSen/ice chargeIncome on sale of leased assetOnline service chargeAccounts maintenance feeSMS service chargesCard fees and chargesCIB service chargesIncome on sale of Bank's property
25 (a) Consolidated Other operating incomePubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
Salary and allowances (excluding Managing Director)Basic salaryHouse rent allowancesMedical allowancesOther allowancesContributory provident fundGeneral provident fundBonus to employees
26 (a) Consolidated Salary and allowances (excluding Managing Director)Pubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
Rent, taxes, insurance, electricity, etcBank premisesGodownRates and taxesInsurance (vault)Insurance premiumElectricityElectric fittings and fixturesWater and sewerage bill
27 (a) Consolidated Rent, taxes, insurance, electricity, etc.Pubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
Notes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
2,350,07511,264,35179,144,170
61,603135,990
40,000,00081,100,497
931,3201,872,500
23,066,4691,208,878
375,552,310343,261,123
18,325,2574,920,5059,497,8394,982,314
2,317,35014,540,133
231,963,3665,513,650
59,82590,068,518
433,870836,135
102,403,0401,466,183
325,051,852
7,053,3025,011,954
997,675,201 786,719, 178
997,675,2011,177,468
786,719,1786,326,798
998,852,669 793,045,976
1,611,592,516827,284,080177,648,948683,516,624130,141,488
512,200246,001,711
1,285,261,885683,761,551143,026,495512,882,118106,028,792
991,183199,527,062
3,676,697,567 2,931,479,086
3,676,697,56721,086,7656,749,390
2,931,479,08616,959,2145,682,511
3,704,533,722 2,954,120,811
245,914,698220,600
7,217,19521,814,237
114,661,91087,347,51618,511,8813,847,929
191,041,3325,000
6,201,78814,930,88098,243,99361,502,68821,389,9922,899,088
499,535,966 396,214,761
499,535,966614,694
5,040,652
396,214,761401,464
3,383,356505,191,312 399,999,581
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
28. Legal expensesLawyers‘ chargesCourt fees and other expenses
28 (a) Consolidated Legal expensesPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
29. Postage, stamp, telecommunication, etcPostageTelegramTelexFaxStampTelephone (offlce)Telephone (residence)SWIFT chargesSMS expenditureTele rate/routerInternet charges
29 (a) Consolidated Postage, stamp, telecommunication, etcPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
30. Stationery, printing, advertisement, etc.Table stationeryComputer stationeryPrinting and stationeryConsumption of books and formsAdvertisement
30 (a) Consolidated Stationery, printing, advertisement, etcPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
31. Managing Director's salary and feesBasic payAllowancesBank's contributoiy provident fundBonus
32. Directors‘ feesMeeting fees and HonorariumMeeting expensesMeeting related travelling allowances
2014Taka
2013Taka
10,602,8021,832,996
9,516,6851,916,436
12,435,798 11,433,121
12,435,798600,000909,058
11,433,121167,200173,141
13,944,856 11,773,462
9,948,190216,966518,889
14,65023,660
29,973,6281,282,606
23,140,9492,881,810
854,8113,018,778
8,654,349145,500980,190
19,17949,525
27,341,5941,430,114
22,603,1191,716,5103,688,163
71,874,937 66,628,243
71,874,937349,262237,781
66,628,243329,654229,619
72,461,980 67,187,51622,287,61814,770,9677,781,314
22,376,74269,004,234
17,709,89214,542,6158,542,992
23,393,52163,735,089
136,220,875 127,924,109
136,220,875252,759109,118
127,924,109229,748116,786
136,582,752 128,270,643
6,438,7102,315,807
643,8712.100.000
6,600,0002,340,000
660,0002.100.000
11,498,388 11,700,000
3,150,0001,184,2411,051,660
3,535,0001,225,007
870,8005,385,901 5,630,807
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
32 (a)
33.
33 (a)
34.
34 (a)
35.
Consolidated Directors‘ feesPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
Each director is paid Tk. 5,000 per meeting per attendance.
Auditors‘ feesStatutory auditSpecial audit
Consolidated Auditors‘ feesPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
Depreciation and repair of bank's assetsRepairs to fixed assetsMaintenance of assetsDepreciation on fixed assets
Consolidated Depreciation and repair of bank's assetsPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
Other expensesRepairs to rented propertyNewspapersPetrol consumptionTravellingDonationsHonorariumSubscriptionsSub-ordinate staff clothingConveyanceEnteitainmentTrainingPhotocopyingBranches‘ opening expensesShifting expensesCarrying expensesProfessional feesSecurity and Auxiliary Sen/icesGun license feesTelegraphic address renewal feeOvertimeLunch subsidyPromotional expenses
2014Taka
2013Taka
5,385,901506,000
5,630,807184,000
5,891,901 5,814,807
1,030,0001,399,580
800,000
2,429,580
2,429,580115,000323,600
800.000
800,000125,500257,055
2,868, 180 1,182,555
14,585,382125,795,210245,701,857
12,709,33441,076,000
216,791,153386,082,449 270,576,487
386,082,4492,307,905
899,091
270,576,4871,510,6021,027,600
389,289,445 273,114,689
1,114,3743,270,474
55,670,31260,877,10744,417,095
4,570,5177,953,6509,541,130
17,487,48124,983,80320,879,812
1,388,092143,254
1,075,2291,745,6073,670,634
20,227,1391,406,488
63026,149,760
151,742,79788,447,182
1,332,5772,901,535
58,169,68447,397,06647,895,281
3,510,0008,953,5078,209,444
15,622,49215,909,97911,120,8771,882,713
372,708725,690
1,783,7132,468,208
15,338,6051,058,872
62522,450,20582,383,56558,187,359
GratuityGroup insuranceHouse maintenanceAdditional profit payable A/C for Islamic BankingCar allowanceChemicals for office equipmentsLoss on sale of bank's propertyCDBL feesLaga Hawla chargesAnnual general meetingBandwidth chargesF.C.Charge paidAmortization loss on T. bondMiscellaneous
35 (a) Consolidated Other expensesPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
Provision for loans and advances, investments and other assetsClassified loans and advances (note 13.1)Unclassified loans and advances (note 13.1)Provision for other assets
Notes to the financial statements for the year ended 31 December 2014
Pubali Bank Limited Annual Report 2014
2014Taka
2013Taka
678,497,08015,760,37689,551,230
5,385,180578,949833,726544,540
5,324,93595,699,506
2,046,143103,510,281
530,132,61014,699,27274,369,453
30,9525,429,403
626,839769,413548,747
1,3137,234,875
93,998,4114,160
1,210,05276,872,066
1,544,494,513 1,213,602,271
1,544,494,5137,534,788
11,427,480
1,213,602,2717,595,0063,806,879
1,563,456,781 1,225,004,156
806,299,53668,700,464
Provision for suspense 5,000,000Provision for unreconciled General Account debit entries 5 000 000
Provision for diminution in value of investmentsProvision for bad debt offsetting
36 a Consolidated Provision for loans and advances, investments and other assetsPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
Provision for off balance sheet exposureProvision for exposure against off-balance sheet items (note 13.2)
7 Provision for exposure against off-balance sheet itemsParticularsLetter of guaranteeIrrevocable letters of creditBills for collectionOther contingent liabilities
10,000,000
620,000
2,123,010,566
885,620,000 2,123,010,566
885,620,000117,999,663
2,123,010,56610,010,110
1,003,619,663 2,133,020,676
12,500,000 50,000,00012,500,000 50,000,000
7,036,861,64938,989,408,824
563,495,313948,646,848
5,818,362,05738,756,296,689
590,511,065573,081,000
Total Contingent Liabilities: 47,538,412,634 45,738,250,811g MarginLetter of guaranteeIrrevocable letter of credit - -Bills for collection l - ll - l
47,538,412,634 45,738,250,811
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
Base for Provision Rate Pf PF°Vi5i°"(90)
Letter of guarantee 7,036,861,649Irrevocable letters of credit 38,989,408,824Bills for collection 563,495,313Other contingent liabilities 948,646,848 l—ll—'~b—ll—l
2014Taka
2013Taka
70,368,617389,894,088
5,634,9539,486,468
58,183,620387,562,967
5,905,1115,730,810
Required provisionProvision maintainedExcess provision
38. Receipts from Other operating activities
ExchangeOther operating income
38 (a) Consolidated Receipts from Other operating activitiesPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
39. Cash payments for Other operating activitiesRent ,taxes, insurance, electricity etc.Director's feesCharges on loan lossesRepairs of bank's assetsOther expenses
39 (a) Consolidated Cash payments for Other operating activitiesPubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
40. Increase] (decrease) of Other assets
Closing Other AssetsStationery and stampsAccrued incomeAdvance security deposit, Advance rent etc.Suspense accountDemonetized notesItems in transitDrafts payable (Dr. Balance)Clearing house adjustmentOthers
Opening Other AssetsStationery and stampsAccrued incomeAdvance security deposit, Advance rent etc.Suspense accountDemonetized notesItems in transitDrafts payable (Dr. Balance)Clearing house adjustmentOthers
475,384,126476,800,000
457,382,508464,300,000
1,415,874 6,917,492
562,987,740957,675,201
551,256,716786,719,178
1,520,662,941 1,337,975,894
1,520,662,94132,028,041
1,337,975,89411,972,789
1,552,690,982 1,349,948,683
499,535,9665,385,9011,205,435
140,380,5921,544,494,513
399,214,7615,630,807
968,79650,785,334
1,213,602,2712,191,002,407 1,670,201,969
2,191,002,40712,280,40818,134,932
1,670,201,96910,543,1748,020,842
2,221,417,747 1,688,765,985
65,166,6521,412,809,878
213,787,166257,105,337
1,531,7502,972,304,696
51,599,731118,582,72788,577,689
86,527,2261,153,921,248
145,122,005140,284,435
1,531,7502,069,161,306
107,021,01682,864,94994,821,890
5,181,465,626 3,881,255,825
86,527,2261,153,921,248
145,122,005140,284,435
1,531,7502,069,161,306
107,021,01682,864,94994,821,890
77,755,366839,455,815101,709,431280,239,858
1,531,7502,294,905,163
191,790,369103,256,382103,967,524
3.881.255.825(1,3oo,209,8o1)
3,994.61 1.658113,355,833
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
40 (a) Consolidated Increase] (decrease) of Other AssetsPubali Bank Limited (1,300,209,801)Pubali Bank Securities Limited (15,455,237)Pubali Exchange Company (UK) Ltd. -
113,355,833(57,025,905)
(1,315,665,038)_ 56,329,92841. Increase/(decrease) of Other Liabilities
Closing Other LiabilitiesInterest suspenseInterest suspense on unden/vriting advancesInterest suspense against 70% Agri loan
718,127,569270,415,969
192,382646,970,801270,415,969
192,382988,735,920 917,579,152
Opening Other LiabilitiesInterest suspenseInterest suspense on unden/vriting advancesInterest suspense against 70% Agri loan
646,970,801270,415,969
192,382
298,452,532283,048,538
192,382917,579,152 581,693,452
71,156,768 335,885,70041 (a) Consolidated Increase/(decrease) of Other Liabilities
Pubali Bank LimitedPubali Bank Securities LimitedPubali Exchange Company (UK) Ltd.
71,156,768138,472,691
2,626,799
335,885,70066,111,024
(11,101,819)212,256,258 390,894,905
42. Cash and Cash Equivalents at the end of the yearCash in hand (including foreign currencies) 3,607,695,337Balance with Bangladesh Bank and its agent bank(s) 16,345,806,565Balance with other banks and financial institutes 2,329,429,846Prize bonds 19,111,601Money at call on short notice 988,286,667
4,186,600,39115,312,858,724
1,566,369,21615,147,101
568,886,66723,290,330,016 21,649,862,099
42 (a) Consolidated Cash and Cash Equivalents at the end of the yearPubali Bank Limited 23,290,330,016Pubali Bank Securities Limited 437,100,218Pubali Exchange Company (UK) Ltd. -
21,649,862,099228,108,325
7,277,54023,727,430,234 21,885,247,964
43.at the following exchange ratesAssets and liabilities as at 31 December 2014 denominated in foreign currencies have been converted to Bangladesh Taka
Currency Currency unit Equivalent TakaEuropean Currency EUROJapanese YenPound Sterling GBPSwiss Franc CHFUS Dollar USDACU Dollar ACUD
44. Earnings Per Share (EPS)Net profit after taxes 3,070,130,480Number of ordinary shares outstanding 880,373,812
94.71JPY 0.65
120.9378.7477.9577.95
2,305,537,976880,373,812
Earnings Per Share (EPS) 3.49 2.62
44 (a) Consolidated Earnings Per Share (EPS)Net profit after taxes 3,115,315,919Number of ordinary shares outstanding 880,373,812
2,431,604,567880,373,812
Earnings Per Share (EPS) 3.54 2.76
Pubali Bank Limited Annual Report 2014
Highlights on the overall activities of the Bankfor the period ended 31 December‘14 and 31 December'13
Notes to the financial statements for the year ended 31 December 2014
Particulars 2014Taka
2013Taka
Paid- up CapitalTotal CapitalCapital SurplusTotal AssetsTotal DepositsTotal Loans & AdvancesTotal Contingent LiabilitiesLoan Deposit Ratio (%)Ratio of Classified Loan to total Loans & Advances (%)Profit after taxation & ProvisionAmount of Classified Loan during the current yearProvision kept against Classified LoansProvision SurplusCost of Fund (%)Interest Earning AssetsInterest Non- Earning AssetsReturn on Investment (ROI) (PAT/Shareholders Equity)Return on Assets (ROA)Income from InvestmentEarnings Per Share (Taka)Net Income per Share (Taka)Price Earning Ratio (Times)
8,803,738,12023,434,691,4573,471,021,457
248,386,497,730193,090,243,397149,974,530,66747,538,412,634
77.67%6.25%
3,070,130,4809,377,593,2764,085,459,558
116,498,3139.74%
200,874,832,03347,511,665,697
13.43%1.24%
5,987,807,4633.493.497.31
8,384,512,50021,082,873,319
3,113,643,319228,533,770,568177,878,172,427136,940,462,36945,738,250,811
76.99%5.94%
2,305,537,9768,136,104,8214,897,406,828
1,450,03010.17%
186,929,103,92941,604,666,639
11.35%1.01%
4,899,691,5512.622.62
11.82
.a I ' _ -,-
Md. Abdul Halim Chowdhury Azizur Rahman Rumana SharifManaging Director Director Director
Hafiz Ahmed MazumderChairman
4102trOpeRfluUnnAd€H_mLknaBMbUP
§_D§m_'fl_
§_§_a:8$__m$_=v_s_§_m
Egg:
§£_mq2_:
Rgggg
€___§_g
9$_gq:
$Hg_____fi_N
gq2_H_g3_
§gH§__‘
_2_§_§_H§___8§g_m_§_g
R333
gflgqgqfi
§_§_m§
$_“__Hg_£
$fi__‘£_g
_E_§_§
§_§_§__‘
S2__w_____8gSE:8__g___8ufi_SQ
§_fiaMw_$_§_§_§E__§_§E635fiqgdfi_Hqqq$_MW:N
R3832édgg
Egg§§$i:33:
gdmfimwfig?
gdaagafifi§_§_§éqgaéwggg_
2wq§§31$
flggmII
qhfigqm§__m2_mEégqgfifiagévmfimfifiEQEJ
M§_H8d:Zqfiqé§_§_§:_:g_gH8_‘__m$_:__HH$dR_§
$2gg$3$2§_“_
gggg§_g__§£_§H_£3g$£_§§_§_§gqgqgd
52%gag:25}Riga
RggwggmgRaggam§K$ggmmwSqgfl
gdiw$3$_$§__§_gmgag
E65“:ggqagqgfifig§__E_§§_§_§gqggz
$_£__w>
¥5E_U_5Um_E;>§__%_m__>_§_O§8<EggsQ__$__QEOU
2__2“_Ea23_E__“_
m______5m
§§___mEg_2__vE54
SE32ggwuoa
GESEE__§§_E§n__$;_uu_________$>o__HHm38g_gfl5_sm=__H<u_______Q:2g
SE_$>05E$35
“E=8>__g__m_H38__~_~m_
SE§N_¢___§g_Hmumsci
SE
__$>2_;__________$>2:GE
35E§%<u________u_~8__m_fi_
__$>£;___5__s_~___
__°_§__gs_\m__°___§
HmHmg_g£83$2
__O_H_mN____°E<\__°_E§__g_
5222
to
SESON>_m____m_Hum8__m_mm
223?:
U
QHONLQQEUUQQHmPMmm$mmm<UUXE“__°m______8__Um
41O2trOpeRHUHHAdE___HWLkH8BMbUP
E5__m_>3XSWW5_D:
mg“;U6§_o_mm_F_E8Kama__6OA_$&<_mice§_o_mm_EE8I26
_g_5E_g~__g_Q<§8______<__
R§$_§_H
§_§_§_a
g_____a_:a_fi%fi_:_“__$___:
_2°___
9%HOE$20F__O_mm_ED_JmEgg
_mgdg_§€
IQ3382
M5523328
2%HgHO:Em_Ew§mmGD
§_H$_§d
_§_§|__fl£fl£
23.3%223
EU53>BE38
§_§__N$
§_§_§&
§_§_£38qgq§&
figlggS23
25figBE$8
$6_$QfiJfi
g_§_§N
§_§_§Ngggfimd
gmlfigm:22
:38£m____st;EEg_§__&_W__8__mU___%m
Sqfiqs
§_§_§€
8_N_ggUR€§_§dR_H
$8.32222
gs:m____itsBE__o_H8__&_~8552
mggg
m6_M§_2:
$q§_§€M$Q§_m§_H
Sglgg82:
E8£m____5;)85__o_§__Q%mG_(___§u_m&
m_N§8§8
§_£_£§
EggfigHm_§\m3
gig822
C:_,_H_>>_Uw__U_as
Q_w_§__N:
§__m8dR€
gqégmgaggfifi
gala“82@
tg__g_“_
$m_§_3
_§Mfifi_N
§_§_:gdfii
Mwgsg82MW
_D%__gE
gqgg
gnfim
mgg$156
83_m8N32§
:38£m____5:5_8__“_g_§__&_mgéflg
§_§__§
mwR_§_Mw£
gggm$335
gglggS2my
BOQt____H_>>mr__U:®QHggwmgg_U8_>P_
HIDV_r__32:3‘_:O>&E_H6>_@Hw‘_E@E@m_u__;t:OU£m__|_
Dag?“
RmMdg_A:H
_§_mw:$3ANQMWD£2
gglgg82m
E8__m____figBE__o_Hs__&_m@U_§£§
figqg
§_§_g
mwggqgégudgfi
SQIQBN$2Q
D:5E8£m____figBEg_Hs__§8___§§
gagsmag_m
€O_m_>_O%__gQ$
H58LEIQ553>_$&_~CmE:>E°£___~X3
gmgmvdb
§_§_§
Smw_§fl_NSQQWQQN
$2.3:$2X
Uw2_gE
£B__m__§V
mwwmgfiaw
mwgfiag82BgH
2:2“308%“;
__u____§__\_v__gm_n_m_¥__m_EH__2_g:___
E_g_Hw_%<_E__§_w_“________‘msQ83°“H=°_§__v%Va:E3:___
>“___°£__<fl____8u<53
E:E_§__F___3m_n_FFha8__O_m_>O___“_X@___§_Ew§m<
__$>g_8____O_,___m
E_m___E§___°EsmIxm___=<
AQHON__gE8mn_HmHmmgteam“mas“x~___
Details of large loans and advances
Number of clients with amount of outstanding and classified loans to whom loans and advances sanctioned more than 10% of total capital of the Bank
Number ofclients
Classified amount thereonMeasures taken for recovery
Pubali Bank Limited Annual Report 2014
Annex- C
Amounts in TakaAt At
31 Dec 2014 31 Dec 2013
14 17
Amount of outstanding loans/advances 50,182,935,000 57,608,243,000
Amounts in Taka
Name of the Clients Sanctioned Limit StatusOutstanding Total Outstanding
Funded Non-funded At 31 Dec 2014 At 31 Dec 2013Ha-Meem GroupKeya GroupProject Builders GroupAbul Khair GroupBRACDird Composite GroupMeghna GroupSharmin GroupPakiza GroupM.A. Rahman Dying Industries Ltd.Pubali Bank Securities Ltd.Madina GroupParamount GroupPran GroupCity GroupEnvoy GroupT K GroupPHP GroupCity Seed Crushing Group
GPH GroupGrameen Phone
8,183,900,000 sro7,707,062,000 sro5,019,796,000 sro6,327,600,000 sro5,260,500,000 sro5,468,811,000 sro6,800,000,000 STD5,323,100,000 sto3,804,200,000 STD1,945,000,000 STD3,000,000,000 STD4,623,300,000 STD4,302,800,000 STD4,319,996,000 STD
- 510srosrosrosrosro
- sro
2,634,100,0003,455,663,0002,957,606,0002,142,931,0003,939,461,0001,863,113,0001,546,535,0001,677,100,0002,135,039,0001,770,992,0002,128,085,0002,557,057,0001,409,501,0001,643,724,000
3,313,161,0001,668,943,0001,838,380,0002,381,200,000
142,100,0001,475,697,0001,740,752,0001,544,032,000
641,330,000998,321,000500,000,000169,102,000
1,153,810,000755,200,000
5,947,261,0005,124,606,0004,795,986,0004,524,131,0004,081,561,0003,338,810,0003,287,287,0003,221,132,0002,776,369,0002,769,313,0002,628,085,0002,726,159,0002,563,311,0002,398,924,000
5,945,020,0005,525,900,0004,004,729,0002,184,400,000
2,282,760,0002,642,214,0003,030,287,000
2,633,175,0002,557,504,0002,201,369,000
6,060,361,0004,138,318,0003,527,700,0003,066,707,0002,778,189,0002,530,840,0002,498,770,000
72,086,065,000 - 31,860,907,000 18,3zz,028,000 50,182,935,000 57,608,243,000
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited - Islamic Banking Windows Annex-D
Distribution of profit for the income year ended 31 December 2014
Profit and loss of Islamic Banking Windows are calculated anually as at 31 December each year. We followInvestment Income Sharing Ratio (IISR) system for distribution of profit to the depositors. During the year 2014distributable investment income was 10.01%. As per normal practice, final reates of distributable profit werecalculated ignoring fractional percentage while taking 10% as the actual investment income. Distributed profit rateswere as under.
I t t . ._ mes men _ _ Actual Additionalincome share of Provisional rate _ _ _earning rate distributeddepositors for distributed (%) (%)
2014 (%)SI. no. Types of Mudaraba Deposit
Mudaraba Term Deposit ReceiptHa) for 3 months 85 8.50 8.50
b Mudaraba Term Deposit Receipt( ) for 6 months 90 9.00 9.00
(c) Mudaraba Term Deposit for 12 months 95 9.50 9.50
(d) Mudaraba Term Deposit Receiptfor 24 months 95 9.50 9.50
2 Mudaraba Short Notice Deposit 40 4.00 4.00
Monthly profit based Mudaraba3 Term Deposit 95 9.50 9.50
4 Mudaraba Savings Account 45 4.50 4.50
5 Mudaraba Hajj Savings Account 85 8.50 8.50
Mudaraba deposit pension account6'(a) for 5 years 83 8.30 8.30
b Mudaraba deposit pension account( ) for 10 years 85 8.50 8.50
Therefore, no additional profit is required to be distributed and declared at the rates distributed as final for the year2014.
Provisional rates of profit were declared on the basis of expected rate of investment income.
A competent Shariah Supervisory Committee consisting of Islamic Scholars, Ulemas, Economist and Islamic Bankersheaded by Mr. M. Azizul Huq, founder Chief Executive of Islamic Bank Banglaedsh Limited oversee the IslamicBanking operations. During the year Shariah Supervisory Committee met in 4 (four) meetings and reviewed differentoperational issues in the line with Islamic Shariah. Besides, the Muraquibs of the Shariah Supervisory Committeeinspected both the Islamic Banking Windows during the year and reported no case of major violation of IslamicShariah in their operation.
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsBalance Sheet as at 31 December 2014
Property and Assets Note
Annex-E
2014Taka
2013Taka
Cash 1In hand (Including foreign currencies)Balance with Bangladesh Bank and its agent Bank(s)(Including foreign currencies)
Balance with Other Banks and Financial Institutions 2Inside BangladeshOutside Bangladesh
Placement with Banks and Other Financial Institutions 3
Investments in Shares and Securities 4GovernmentOthers
Investments 5General investmentsBills purchased & discounted
Fixed Assets including Premises, Furniture & Fixtures 6
Other Assets 7Non-banking Assets
Total Assets
Liabilities and Capital
LiabilitiesPlacement with Other Banks, Financial Institutions & Agents 8Deposits and Other Accounts 9Al-Wadia current depositBills payableMudaraba savings bank depositMudaraba term depositsOther depositsOther Liabilities 10
Total Liabilities
Capital / Shareholders‘ EquityPaid up capitalStatutory reserveRetained surplus (general reserve)Revaluation gain/(loss) on investmentOther reservesProfit and loss account surplusTotal Shareholders‘ EquityTotal Liabilities and Shareholders’ Equity
50,021,941 33,664,7593,283,193
46,738,748
2,335,983
31,328,776
316,619,956 115,932,985316,619,956 1 I 115,932,985
38,500,000 30,000,00038,500,000 30,000,000
416,071,814 445,752,274416,071,814 445,752,274
512,0281,279,631
477,899
82,220,525
823,005,370 708,048,442
728,700,951 649,687,19615,283,1204,985,297
50,279,438658,023,402
129,694
14,616,8137,066,767
39,097,646588,736,618
169,35281,692,862 26,757,608
810,393,813 676,444,804
12,611,557 31,603,63812,611,557 31,603,638
823,005,370 708,048,442
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsBalance Sheet as at 31 December 2014
Off-Balance Sheet Items QContingent LiabilitiesAcceptances & EndorsementsLetters of guaranteeIrrevocable letters of creditBills for collectionOther contingent liabilitiesTotal Contingent Liabilities
Other CommitmentsDocumentary credits and short term trade related transactionsForward assets purchased and forward deposits placedUndrawn note issuance and revolving underwriting facilitiesUndrawn formal standby facilities, credit lines and other commitmentsTotal Other CommitmentsTotal Off-Balance Sheet items including Contingent Liabilities
2014 2013Taka Taka
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsProfit and Loss Account for the year ended 31 December 2014
Annex-E (i)
Operating Income Note2014Ta ka
2013Taka
Investment income 11Less: Profit paid on deposits, borrowings, etc. 12
62,039,56845,570,134
113,163,55878,301,486
Net Investment IncomeIncome from investment in shares /securities 13Commission, exchange and brokerage 14Other operating income 15
16,469,434
1,761,891408,601
34,862,072
2,379,245335,831
Total Operating Income 18,639,926 37,577,148Operating ExpensesSalaries and allowances 16Rent, taxes, insurance, electricity, etc. 17Legal expenses 18Postage, stamp, telecommunication, etc. 19Stationery, printing, advertisements, etc. 20Chief Executive's salary and feesDirectors‘ fees & expensesShariah supervisory committee's fees and expensesAuditors‘ feesCharges on investment lossesDepreciation repair and maintenance of fixed assets 21Other expenses 22
4,876,9612,800
41,800127,502
179,849799,457
4,471,52610,775
31,508114,427
142,4721,202,802
Total Operating Expenses 6,028,369 5,973,510Total Profit/(Loss) before Provisions 12,611,557 31,603,638Provision for investmentsSpecific ProvisionGeneral Provision
Provision for off-balance sheet exposureProvision for diminution in value of investmentsOther provisionsTotal ProvisionsTotal Profit/(Loss) before Taxation 12,611,557 31,603,638
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsCash Flow Statement for the year ended 31 December 2014
Qa Cash Flows from Operating ActivitiesInvestment income in cashProfit paidFees and commission receiptsCash payment to employeesCash payment to suppliersReceipts from other operating activities 15Cash payments for other operating activities 23Operating Profit before Changes in Operating Assets & Liabilities
Cash Flows from Operating Assets & LiabilitiesStatutory depositsInvestment to customers (other than banks)Other assets 24Deposits from customers (other than banks)Other liabilities account of customersIncreasel (Decrease) in Operating Assets and LiabilitiesNet Cash from/(used in) Operating Activities
b Cash Flows from Investing ActivitiesPurchase /sale of property, plant & equipmentNet Cash from/(used in) Investing Activities
c Cash Flows from Financing ActivitiesReceipts from issue of investments capital and debt securitiesNet Cash from/(used in) Financing Activities
d Net Increase] (Decrease) in Cash and Cash Equivalents (a+b+c)e Opening Cash and Cash Equivalentsf Closing Cash and Cash Equivalents (d+e) 25
Annex-E (ii)
2014Taka
2013Taka
62,039,568(45,570,134)
1,761,891(4,876,961)
(169,302)408,601
(823,965)
113,163,558(78,301,486)
2,379,245(4,471,526)
(145,935)335,831
(1,213,577)12,769,698 31,746,110
(8,500,000)29,680,46080,940,89479,013,75554,935,254
(16,000,000)(131,583,138)
(78,251,761)29,517,931
(209,322,589)236,070,363 (405,639,557)248,840,061 (373,893,447)
(31,795,908) (18,048,108)(31,795,908) (18,048,108)
217,044,153149,597,744
(391,941,555)541,539,299
366,641,897 149,597,744
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking Windows 1A““eX'E(iii)Notes to the financial statements for the year ended 31 December 2014
PROPERTY AND ASSETS
1. Cash1.1 Cash In hand
In local currencyIn foreign currencies
1.2 Balance with Bangladesh Bank and its agent bank(s)Bangladesh BankIn local currencyIn foreign currencies
Sonali Bank as agent of Bangladesh BankIn local currency
1.3 Cash Reserve Ratio and Statutory Liquidity Requirement
2014Taka
2013Taka
3,283,193 2,335,9833,283,193
46,738,748
2,335,983
31,328,776
46,738,748 31,328,776
46,738,748 31,328,77650,021,941 33,664,759
Cash Reserve Ratio and Statutoiy Liquidity Requirement have been calculated and maintained in accordance with section 33of Bank Companies Act 1991 MPD circular numbers 1 and 2 of 23 June 2014 and 10 December 2013.The statutoiy Cash Reserve Ratio (CRR) required on the Bank's time and demand liabilities at the rate of 6.50% has beencalculated and maintained with Bangladesh Bank in current account and 5.50% Statutoiy Liquidity Requirement (SLR) on thesame liabilities is also maintained in the form of treasury bills and bonds including excess balances of CRR with BangladeshBank. Both the reserves maintained by the Bank are in excess of the statutory requirements, as shown below:
1.3.1 Cash Reserve Ratio (CRR)Required resen/e (6.50%)Actual reserve maintainedSurplus
1.3.2 Statutory Liquidity Requirement (SLR)Required resen/e (5.50%)Actual reserve maintainedSurplus
1.3.3 Total required amount of CRR and SLRTotal required resen/eTotal actual resen/e maintainedTotal surplus
2. Balance with Other Banks and Financial InstitutionsInside Bangladesh (Note 2.1)Outside Bangladesh
2.1 Inside BangladeshIn Mudaraba fixed/term deposit account (in local currency)Union Bank Limited, Hatkola Branch, DhakaSocial Islami Bank Limited, Dilkusha Branch, Dhaka
In Mudaraba Savings deposit accountIslami Bank Limited, Foreign Exchange Branch, Dhaka
In Mudaraba Special Notice Deposit accountFirst Security Islami Bank Ltd., Dilkusha Branch, Dhaka
42,946,35046,738,748
30,834,26131,328,776
3,792,398 494,515
36,339,22045,576,000
28,264,73932,336,000
9,236,780 4,071,261
79,285,57092,314,748
59,099,00063,664,776
13,029,178 4,565,776
316,619,956 115,932,985
316,619,956 115,932,985
300,000,000100,000,000
300,000,000 100,000,00011,498,118 10,957,832
11,498,118 10,957,832
5,121,838 4,975,1535,121,838 4,975,153
316,619,956 115,932,985
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsNotes to the financial statements for the year ended 31 December 2014
Maturity grouping of Balance with Other Banks and Financial InstitutionsPayable on demandUp to 3 monthsOver 3 months but not more than 1 year
Placement with Banks and Other Financial Institutions
Investments in Shares and SecuritiesGovernment treasury bonds1 Year Bangladesh Govt. Islami Investment Bond
InvestmentsGeneral InvestmentsBills purchased and discounted
General investmentsInside Bangladesh:QuardBai MuazzalMurabaha Post Impoit (TR)Hire Purchase Shirkatul Melk
Outside Bangladesh
5 1 1 Maturity grouping of General InvestmentRepayable on demandUp to 3 monthsOver 3 months but not more than 1 yearOver 1 year but not more than 5 yearsOver 5 years
Bills purchased and discountedPayable in Bangladesh:Loans against accepted billsLoans against demand draft purchased
Payable outside Bangladesh:Foreign bills purchasedForeign drafts purchased
5 2 1 Maturity grouping of Bills purchased and discountedReceivable on demandNot more than 3 monthsOver 3 months but not more than 6 months
2014Taka
2013Taka
16,619,956300,000,000
15,932,985100,000,000
316,619,956 115,932,985
38,500,000 30,000,00038,500,000 30,000,000
416,071,814 445,752,274416,071,814 445,752,274
10,335,00053,219,68574,666,488
277,850,641
585,00036,306,57295,1 10,858
313,749,844416,071,814 445,752,274
416,071,814 445,752,274
138,221,173277,850,641
132,002,430313,749,844
416,071,814 445,752,274
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsNotes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
5.3 Geographical location-wise distribution of Investmentsincluding Bills purchased and discountedIn BangladeshUrbanDhaka 253,907,358Sylhet 162,164,456
255,237,568190,514,706
416,071,814Rural —
445,752,274
416,071,814 445,752,274Outside Bangladesh (Foreign bills/drafts purchased) —
416,071,814 445,752,274
5.4 Sector-wise Investments including Bills purchased & discountedPublic sector -Private sector 416,071,814Co-operative sector -
445,752,274
416,071,814 445,752,274
5.5 Security base-wise Investments including Bills purchased & discountedCollateral of movable and immovable properties 405,736,814Guarantee of local banks and financial institutions -Export documents -Fixed deposit receipts (FDR) of own Bank -FDR of other banks 10,335,000Government bonds -Personal guarantee -Other securities -
445,167,274
585,000
416,071,814
5.6 Classification of Investments including Bills purchased & discountedUnclassified:
Standard 416,071,814Special Mention Account (SMA) -
445,752,274
445,752,274
416,071,814 445,752,274Classified:
Sub-standard (SS) -Doubtful (DF) -Bad or loss (B/L) -
Staff loan -416,071,814 445,752,274
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsNotes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
5.7 Particulars of required provision for Investments
Status of Classification Base for Rate of Provision (%)Provision
General provision - Unclassified5ta,,da,d 416,071,814 1
Specific provision - ClassifiedSub-standard (SS) 20Doubtful (DF) 50Bad or loss (B/L) 100
Required provisionProvision maintainedExcess provision
5.8 Particulars of Investments(i) Investments considered good in respect
of which the bank is fully secured.(ii) Investments considered good for which
the bank holds no other security thanthe debtors‘ personal security
(iii) Investments considered good being securedby the personal security of one or moreparties in addition to the personalsecurity of the debtors.
(iv) Investments adversely classified; provision notmaintained there against
(v) Investments due by directors or officersof the bank or any of them either severallyor jointly with any other persons
(vi) Investment due from companies or firmsin which the directors of the bank are interested asdirectors, partners or managing agents or in the caseof private companies as members.
(vii) Maximum total amount of advances,including temporary advances, madeat any time during the year to directorsor employees of the bankor any of them either severallyor jointly with any other persons.
(viii) Maximum total amount of advances,including temporary advances , grantedduring the year to the companies orfirms in which the directors of the bankare interested as directors, partnersor managing agents or in the case ofprivate companies as members.
(ix) Investments due from banking companies
4,160,718 4,457,5234,160,718 4,457,523
4,160,7184,160,718
4,457,5234,457,523
416,071,814 445,752,274
416,071,814 445,752,274
Pubali Bank Limited -Islamic Banking WindowsNotes to the financial statements for the year ended 31 December 2014
(X)
(Xi)
(xii) Amount of written off loans for which case has been filed for recovery
5.9 Hire Purchase Shirkatul MelkLease rental receivable within 1 yearLease rental receivable within 5 yearsLease rental receivable after 5 yearsTotal lease rental receivableLess : Un-earned income receivable
Classified Investments for whichinterest/profit not credited to incomea) Increase / decrease of provision ( specific)b) Amount written off debtC) Amount of debt recovered against the debt which was
previously written offd) Amount of Provision kept against Investments classified as bad or losse) Amount of interest credited in suspense account
Cumulative amount of written off InvestmentsOpening BalanceAmount of debt written off for the current year
Net Lease finance
6. Fixed Assets including Premises, Furniture & FixtureCostMachinery and equipmentsComputer & computer accessoriesFurniture and fixtures
Less: Accumulated depreciationNet book value at the end of the year
7. Other AssetsIncome generating other assetsAccrued income on investments
Non-income generating other assetsStationery and stampsPubali bank adjustment a/c
LIABILITIES AND CAPITAL
8. Placement with Other Banks, Financial Institutions & Agents
Inside BangladeshOutside Bangladesh
9. Deposits and Other AccountsInter-bank depositsOther deposits
Pubali Bank Limited Annual Report 2014
2014Taka
2013Taka
15,127,07150,359,616
212,430,94152,522,29661,339,855
199,887,693277,917,628
66,987313,749,844
277,850,641 3 13,749,844
579,040677,700364,621
482,590598,000348,501
1,621,3611,109,333
1,429,091951,192
512,028 477,899
1,248,000 2,791,6021,248,000 2,791,602
31,631 78,59879,350,325
31,631 79,428,9231,279,631 82,220,525
60,270,428668,430,523
140,723,811508,963,385
728,700,951 649,687,196
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsNotes to the financial statements for the year ended 31 December 2014
9.1 Details of Deposits and Other AccountsCurrent deposits and other accounts :Al-Wadia current deposit
Bills payable ( note 9.1.1)
Mudaraba savings bank deposit
Term deposits :Mudaraba fixed depositsMudaraba monthly term depositMudaraba short notice depositsProfit payable on mudaraba term depositProfit receivable on investmentMudaraba deposit pension schemeMudaraba hajj savings
Other deposits
9.1.1 Bills PayablePay orders issued
9.2 Maturity analysis of Inter-bank deposits
Payable on demandPayable within 1 monthOver 1 month but within 6 monthsOver 6 months but within 1 yearOver 1 year but within 5 yearsOver 5 years and above
9.3 Maturity analysis of other depositsPayable on demandPayable within 1 monthOver 1 month but within 6 monthsOver 6 months but within 1 yearOver 1 year but within 5 yearsOver 5 years and above
10. Other Liabilities
Unpaid expenses A/CItem in transit (Cr. Balance)Card transaction fee (Inter Bank)Sadaqad fundAdditional profit payable A/C for Islamic BankingI.B. bad debt offsetting reservePubali Bank adjustment A/C
2014Taka
2013Taka
15,283,120 14,616,81315,283,120 14,616,813
4,985,297 7,066,767
50,279,438
515,496,00918,193,900
102,769,1797,920,240
12,790,301853,773
39,097,646
397,364,54718,192,670
159,749,190
5,763,9797,210,085
456,147658,023,402 588,736,618
129,694 169,352728,700,951 649,687,196
4,985,297 7,066,7674,985,297 7,066,767
60,270,428 140,723,811
60,270,428 140,723,811
50,528,28830,522,583
350,844,47045,826,928
166,870,28023,837,974
25,202,36816,030,035
184,258,621127,275,663119,209,36436,987,334
668,430,523 508,963,385728,700,951 649,687,196
2,01056,344,773
2552,664,436
22,681,388
3,00024,744,758
602,009,790
81,692,862 26,757,608
Investment incomeBai MuazzalMurabaha Post Import (TR)Hire Purchase Shirkatul MelkInvestment Income from Other Bank
Profit paid on deposits, borrowings, etcMudaraba term depositsMudaraba special notice depositsMudaraba hajj savingsMudaraba savings bank depositMudaraba special savings depositMudaraba deposit pension schemeMudaraba monthly profit deposit
Pubali Bank Limited
Pubali Bank Limited -Islamic Banking WindowsNotes to the financial statements for the year ended 31 December 2014
Annual Report 2014
2014Taka
2013Taka
4,887,04210,383,11433,816,07112,953,341
3,072,0723,483,690
33,708,62572,899,171
62,039,568 113,163,55840,560,244
1,055,66846,853
1,355,417221,078606,394
1,724,480
34,661,68139,999,554
40,0941,062,412
25,253506,263
2,006,22945,570,134 78,301,486
Income from investment in shares]securities
Commission, exchange and brokerageSC, LSC, DD, ‘IT, MT and POForeign L/CLocal L/COther transactionsMiscellaneous handling commission
Other Operating IncomeMiscellaneous incomeService chargeCIB service chargeOnline service chargeAccount maintenance feeSMS service chargeCard fees and charges
Salary and allowancesBasic salaryHouse rent allowancesMedical allowancesOther allowancesContributory provident fundBonus to employees
Rent, taxes, insurance, electricity, etcElectric fittings and fixturesWater and Sewerage bills
Legal expenses
41,380286,907572,976
8,496852,132
53,010421,898867,548
29,0011,007,788
1,761,891 2,379,245
1,23910,20012,480
167,883192,924
18,4755,400
72,976121,571
4,810136,474
408,601 335,831
2,346,2801,352,983
311,900279,050225,643361,105
2,291,4811,267,273
236,771123,396204,455348,150
4,876,961 4,471,526
2,800 10,775
2,800 10,775
Lawyer charges -Court fees & other expenses — -
Pubali Bank Limited Annual Report 2014
Pubali Bank Limited -Islamic Banking WindowsNotes to the financial statements for the year ended 31 December 2014
2014Taka
2013Taka
19. Postage, stamp, telecommunication, etcPostage 2,430Telephone (office) 28,170Telephone (res) 11,200
1,34030,168
41,800 31,50820. Stationery, printing, advertisement, etc
Table stationery 10,235Computer Stationery 16,553Consumption of books and forms 97,833Printing & Stationery 2,881
5,8041,522
107,101
127,502 114,42721. Depreciation repair and maintenance of fixed assets
Repairs to fixed assets 21,708Depreciation on fixed assets 158,141Maintenance of computer hardware -
142,472
179,849 142,47222. Other expenses
Newspapers 9,622Travelling 18,770Honorarium 40,000Conveyance 8,570Entertainment 94,210Photocopy expenses 2,223Carrying expenses (cash,water,sty. etc.) 350Training expenses -Employees recreation 266,550House maintenance 212,000Security and auxiliary service 109,901Additional profit payable A/C for islamic banking -Miscellaneous 37,261
4,74319,950
7,7507,2502,227
269,395138,126165,097100,65630,952
456,656799,457 1,202,802
23. Cash payments for other operating activitiesRent, tax, insurance, lighting etc. 2,800Repairing expenses 21,708Other expenses 799,457
10,775
1,202,802823,965 1,213,577
24. Increase] (decrease) of Other Assets
Closing Other AssetsStationery and stamps 31,631Accrued income on investments 1,248,000Pubali Bank adjustment -
78,5982,791,602
79,350,3251,279,631 82,220,525
Opening Other AssetsStationery and stamps 78,598Accrued income on investments 2,791,602Pubali Bank adjustment 79,350,325
137,4603,831,304
82,220,52580,940,894
3,968,764(78,251,761)_
25. Cash and Cash Equivalents at the end of the yearCash in hand (Including foreign currencies) 3,283,193Balance with Bangladesh Bank and its agent bank(s) 46,738,748Balance with other banks and financial institutes 316,619,956
2,335,98331,328,776
115,932,985366,641,897 149,597,744
Pubali Bank Limited Annual Report 2014
Annex-F@ ACNABIN
Chartered Accountants
BDBL Bhaban (Lcvcl~13 8: 14) Tclcphonc : (83 02} 8144347 to 52I2 Kawran Bazar Con-imcrcial Area (33 02) 5189425 ‘O 291356181215, Bangladesh. Fatsimiit r (88 02) 8144353
c-mail : <acnabin@bangla.nc1>Web : www.acnabin.com
Auditor‘: Report to the shareholders of Pubali Bank Securities Limited
We have audited the accompanying financial statements of Pubali Bank Securities Limited(PBSL) which comprise the financial position as at 31 December 2014 and the statement ofcomprehensive income, statement of changes In equity and statement of cash flows for theyear then ended and a summary of significant accounting policies and other explanatoryinformation disclosed in Notes 1-22 to the financial statements.
Management's Responsibility for the Financial Statements
Management of PBSL is responsible for the preparation and fair presentation of thesefinancial statements in accordance with Bangladesh Financial Reporting Standards (BFRSs),and for such Internal control as management determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether dueto fraud or error.
Auditor's 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. Thosestandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amount anddisclosures in the financial statements. The procedures selected depend on the audltor‘sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity's internal control. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by management, as wellas evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financialposition of the Company as at 31 December 2014, and its financial performance and cashflows for the year then ended in accordance with Bangladesh Financial Reporting Standardsand comply with the Companies Act 1994, the Securities and Exchange Rules 1987 andother applicable laws and regulations.
Report on Other Legal and Regulatory Requirements
We also report that:(a) we have obtained all the material information and explanations which to the best of
our knowledge and belief were necessary for the purposes of our audit and made dueverification thereof;
(b) in our opinion, proper books of account as required by law have been kept by theCompany so far as it appeared from our examination of those books;
(c) the Company's financial position and financial performance dealt with by the report arein agreement with the books of account; and
(d) the expenditure incurred was for the purposes of the Company's business.
Dated, Dhaka Ac|uA51NFabruaw 26. 2015 Chartered Accountants
.y mraepeorn-m-newBAKER TILLYINTERNATIONAL
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities Limited Annex-FlilStatement of Financial Position as at 31 December 2014
SOURCES OF FUNDS Note
Share capital 3Investment Revaluation reserve 4Retained earnings 5Shareholders Equity
APPLICATION OF FUNDSNon-Current Assets (A)
Fixed assets 6Intangible assets 7
Current Assets (B)
Advances, deposits and prepayments 8Advance income tax 9Investment in securities 10Accounts receivable 11Loan to customersCash and cash equivalents 12
Current Liabilities (C)
Accounts payable 13Secured overdraft 14Provision for investment and clients‘ margin loan 15Provision for expenses 16Provision for taxation 17Payable for IPO Fund 18Deferred tax liabilities 19
Net Current Assets D=(B-C)Total Assets (A+D)
2014Amount in Taka
2013 l
1,600,000,00084,170,706
(s12,s53,663)
1,600,000,00084,170,706
($56,292,851)871,317,043 827,877,855
2,166,530 2,718,571315,000
2,166,530 3,033,571
1,064,00064,506,699
3,150,522,28547,174,242
745,913,657437,100,218
921,50039,942,230
3,115,479,16756,425,974
675,987,457228,108,325
4,446,281,101 4,116,864,653
333,409,6112,128,085,3661,025,470,327
1,024,34472,989,626
1,460,00014,691,314
197,246,0182,133,075,136
907,470,664175,246
39,190,742
14,862,5633,577,130,588 3,292,020,369
869,150,513 824,844,284871,317,043 827,877,855
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedStatement of Comprehensive income for the year ended 31 December 2014
Annex-F (ii)
I Note Amount in Taka2014 2013
Operating income
Revenue from brokerage commissionInterest income 20Capital gain from investment in securitiesDividend incomeOther operating income 21Total operating income (A)
Direct expenses 22Operating expenses 23Total operating expenses (B)
Operating profit before provision C=(A-B)Less: Provision for diminution in value of investment in shares (D) 15.1Less: Provision for impairment of clients‘ margin loan (E ) 15.2Operating profit before taxation F=(C-D-E)Less: Current tax expense 17.1Deferred tax expense 19Net profit after taxOther comprehensive incomeInvestment Revaluation reserve (Net off tax) 4Other comprehensive income for the yearTotal comprehensive income for the year
58,379,03395,665,83930,850,57342,360,746
1,177,468
66,496,94194,166,535
5,645,99136,412,7936,326,798
228,433,659 209,049,058
5,524,67727,842,496
6,307,78621, 194,602
33,367,173 27,502,388
195,066,486 181,546,670(86,844,546)(31,155,117) (10,010,110)77,066,823 111,536,560
(33,79s,ss4)171,249 (40,096,418)
43,439,188 131,440,142
84, 170,70684, 170,706
43,439,188 215,610,848
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities Limited Annex-F (iii)Statement of Cash Flow for the year ended 31 December 2014
Cash flows from operating activitiesNet profit during the year
Add: Amount considered as non-cash itemsDepreciation & amortization chargedProvision for investment & clients‘ margin loanDeferred tax expenseProvision for tax
Changes in working capital(Increase)/decrease in advances, deposits and prepayments(Increase)/decrease in advance income tax(Increase)/decrease in investments in securities(Increase)/decrease in accounts receivable(Increase)/decrease revenue stamp payableIncrease/(decrease) payable to SWFIncrease/(decrease) security deposit(Increase)/decrease in loans to customersIncrease/(decrease) in accounts payableIncrease/(decrease) in provision for expensesIncrease/(decrease) secured overdraft
Net cash from/ (used in) operating activities
Cash flows from investing activitiesFixed assets acquisitionProceeds from sale of fixed assetIntangible assets acquisitionNet cash from /(used in) investing activities
Cash flows from financing activitiesIssue of share capitalDividend receiptsDividend paidNet cash from / (used in) financing activities
l 2014Amounts in Taka
2013 l
43,439,188 131,440,142
1,194,099117,999,663
(171,249)33,798,884
1,348,76410,010,11040,096,418
152,821,397 51,455,292
(142,500)(24,564,469)(35,043,117)
9,251,732(3,630)
18112,460
(69,926,201)137,614,582
849,098(4,989,770)
(790,000)(12,926,642)40,515,143
(43,231,280)2,120
27031,770
(114,423,928)66,089,667
(12,803)(15,8o4,323)
13,058,366 (8o,550,006)209,318,951 102,345,428
(327,058) (15,410)4,000
(327,058) (11,410)
Cash and cash equivalent at the beginning of the year 228,108,325Net cash increase /(decrease) I 208,991,893 102,334,018
125,774,307Cash and cash equivalents at the end of the year 437,100,218 228,108,325
Pubali Bank Securities Limited Annex-F (iv)Statement of Changes in Equity for the year ended 31 December 2014
Pubali Bank Limited Annual Report 2014
Particulars Share CapitalInvestmentRevaluation Retained Earnings
ReserveTotal
Balance as at January 1, 2014Share capitalPre-operating expensesTotal comprehensive income for the year 2014
1,600,000,000 84, 170,706 (856,292,8s1)
43,439, 188
827,877,855
43,439, 188Balance as at 31 December 2014Balance as at 31 December 2013
1,600,000,000 84,170,706 (s12,ss3,663) 871,317,043
1,600,000,000 84,170,706 (ss6,z9z,s51) 827,877,855
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities Limited A""°"'F l")Notes to the financial statements for the year ended 31 December 2014
Status of the Company
Pubali Bank Securities Limited (PBSL) was incorporated on the 21st June 2010 under the CompaniesAct, 1994 as a public limited company. It is a subsidiary company of Pubali Bank Limited. Pubali BankLimited holds all the shares of the company except for thirteen shares being held by thirteenindividuals. The Company has been established as per Bangladesh Securities & Exchange Commission's(BSEC) Letter # SEC/Reg/DSE/MB/2009/444 dated 20.12.2009.The company started its operation witheffect February O1, 2011. The Registered Office of the Company is situated at A-A Bhaban (7th floor),23 Motijheel C/A, Dhaka-1000, Bangladesh.
The main objects of the company are to carry on the business of a stock broker and stock dealer houseand to buy, sell, and deal in shares, stocks, debentures, bonds and other securities, and to carry on anybusiness as is permissible for a broker and dealer house duly licensed by the Bangladesh Securities &Exchange Commission (BSEC).
Significant accounting policies
Basis of preparation of financial statements
These financial statements have been prepared under the historical cost convention on a going concernbasis and in accordance with Bangladesh Financial Reporting Standards (BFRS), The Companies Act1994, Securities and Exchange Rules 1987 and other laws and rules applicable in Bangladesh.
Basis Of measurements
The financial statements have been prepared based on historical cost convention basis. The accountingpolicies, unless otherwise stated, have been consistently applied by the Company and are consistentwith those ofthe previous year.
Use of estimates and judgments
The preparation of financial statements requires management to make judgments, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets,liabilities, income and expenses. It also requires disclosures of contingent assets and liabilities at thedate ofthe financial statements. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing concern basis. Revisions toaccounting estimates are recognized in the period in which the estimate is revised and in any futureperiods affected.
Components of Financial StatementsThe financial statements referred to here comprise
a) Statement of Financial Positionb) Statement of Comprehensive Incomec) Statement of Changes in Equityd) Statement of Cash Flows ande) Notes to the Financial Statements
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
2.5
2.6
2.7
2.8
2.9
2.10
Statement of cash flows
Statement of cash flows is prepared in accordance with the Bangladesh Accounting Standard-7 "Statement of Cash Flows" under indirect method.
Reporting period
These financial statements cover one calendar year from 1 January to 31 December 2014.
Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash orother financial assets.
Property, plant and equipment
All fixed assets are stated at cost less accumulated depreciation as per BAS-16 " Property, Plant andEquipment". The cost of acquisition of an asset comprises its purchase price and any directlyattributable cost of bringing the asset to its working condition for its intended use inclusive of inwardfreight, duties and non-refundable taxes.
The Company recognizes in the carrying amount of an item of property, plant and equipment the costof replacing part of such an item when that cost is incurred if it is probable that the future economicbenefits embodied with the item will flow to the company and the cost of the item can be measuredreliably. Expenditure incurred after the assets have been put into operation, such as repairs andmaintenance is normally charged off as revenue expenditure in the period in which it is incurred.
Categories of Assets Method of Depreciation RateComputer and Computer Accessories Straight Line Method 30%Machinery and Equipment Straight Line Method 20%Furniture and Fixtures Deminishing Balance Method 10%Full year depreciation is charged on the assets if it is purchased on or before 30 september ofthefinancial year. No depreciation is charged on the assets written off.
Intangible assets and amortization of intangible assets
An intangible asset is recognized if it is probable that the future economic benefits that areattributable to the asset will flow to the entity and the cost of the assets can be measuredreliably. System and software is amortized at the rate of 30% on the straight line basis.
Expenditure incurred for systems and software is capitalized only when it enhances and extends theecnomic benefits of software beyond of its original specification and life and such cost is recognizedas capital improvement and added to the original cost of software.
Advance, deposits and prepayments
Advances are initially measured at cost. After initial recognition, Advances are carried at cost lessdeductions, adjustments or charges to other account heads such as property, plant and equipment,inventory, etc.
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
Prepayments are initially measured at cost. After initial recognition, prepayments are carried at costless charges to Statement of Comprehensive Income.
2.11 Advance Income tax
The amount of advance income tax is mainly deduction at sources by DSE & CSE on daily transaction ofbroker & dealer operation. Tax deduction on interest income and dividend income are also includedhere.
2.12 Investments in securities
Investment in marketable and non-marketable ordinary shares has been shown at cost. Full provisionfor diminution in value of shares (Quoted) as on closing of the year on an aggregate portfolio basis hasbeen made in the account.
2.13 Account receivables
Receivables are recognized when there is a contractual right to receive cash or another financial assetfrom another entity.
2.14 Loans to customers
Loans to customers are stated in the balance sheet on gross basis. Interest is calculated on a dailyproduct basis but charged and accounted for on accrual basis. Interest on customer loans is realizedquarterly.
2.15 Cash and cash equivalentsCash and cash equivalents include notes and coins on hand, unrestricted balances held with Banks andhighly liquid financial assets which are subject to insignificant risk of changes in their fair value, and areused by the Company management for its short-term commitments.
2.16 Provision for Tax
Current TaxProvision for current tax is made in accordance with the provision of the Income Tax Ordinance, 1984
and subsequent amendments made thereto from time to time.
Deferred taxationDeferred tax liabilities are the amount of income taxes payable in future periods in respect of taxabletemporary differences. Deferred tax assets are the amount of income taxes recoverable in futureperiods in respect of deductible temporary differences. Deferred tax assets and liabilities arerecognized for the future tax consequences of timing differences arising between the carrying valuesof assets, liabilities, income and expenditure and their respective tax bases. Deferred tax assets andliabilities are measured using tax rates and tax laws that have been enacted or substantially enacted atthe balance sheet date. The impact on the account of changes in the deferred tax assets and liabilitieshas also been recognized in the profit and loss account as per BAS-12 "Income Taxes".
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
2.17
2.18
2.19
2.20
Provision for liabilities
A provision is recognized in the balance sheet when the Company has a legal or constructive obligationas a result of a past event and it is probable that an outflow of economic benefit will be required tosettle the obligations, in accordance with the BAS 37 "Provisions, Contingent Liabilities and ContingentAssets".
Revenue Recognition
Revenue is recognized only when it is probable that the economic benefits associated with thetransaction will flow to the enterprise and in accordance with the Bangladesh Accounting Standard(BAS) 18 “Revenue Recognition":
a) Brokerage commissionBrokerage commission is recognized as income when selling or buying order executed.
b) Interest income on margin loanInterest Income from margin loan is recognized on accrual basis. Such income is calculated on dailymargin loan balance of the respective parties. Income is recognized on monthly basis and appliedto the customers’ account on quarterly basis.Dividend IncomeDividend income is recognized when right to receive payment is established whereas profit or lossarising from the sale of securities is accounted for only when shares are sold in the market andprofit is realized or loss is incurred.
d) Capital Gain on Sale of shareCapital gain on investments in shares is recognized when it is realized.
c)
Provision against unrealized loss in shares purchased as dealer and Margin Loan
As per directive no. SEC/CMRRCD/2009-193/166 dated 12 January 2015 of Bangladesh Securities andExchange Commission, 20% provision can be made for unrealized loss arising out of year-end(31.12.2014) revaluation of shares purchased as dealer and unrealized loss as margin loan.
Related Party Transaction
As per Bangladesh Accounting Standards (BAS)-24 "Related Party Disclosures", parties are consideredto be related if one of the parties has the ability to control the other party or exercise significantinfluence over the other party in making financial and operational decisions. The Company carried outtransactions in the ordinary course of business on an arm's length basis at commercial rates withrelated parties.
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
2.20.1 Particulars of directors and their shareholdings
Number of ShareSL No Name of the directors Designation h°|di“9 as 31December 2014
Mr. Moniruddin Ahmed|_. Chairman 1|\) Mr. Ahmed Shafi Choudhury Director 1
Mr. Habibur RahmanL») Director |_L
Mr. Mustafa Ahmed_|> Director |_|.
L11 Mr. Muhammed Kabiruzzaman Yaqub Director )_i.
Mrs. Rana Laila HafizO\ Director )_L
Mr. Ahmed Salah Sater\i Director |_|.
I Mrs. Ayesha Farha Chowdhury Director |_L
Mr. Rezwan RahmankD Director |_|.
Mr. Azizur Rahman)_|. Z Director )_i.
)_L )_L Mr. Zeyad Rahman Director 1|_|. I\) Mr. M A Halim Chowdhury (Nominated by Pubali Bank Limited) Director 15999987
13 Mr. Shahdeen Malik IndependentDirector
2.20.2 Name of the directors and entities in which they have interest
Pubali Bank Securities Ltd. Pubali Bank Limited Bank Ltd.Percentage ofSL No Name of directors and status in Directors have intrest in Status in Pubali interest in Puba"
Bank Ltd.|_x Mr. Moniruddin Ahmed,Chairman Pubali Bank Ltd. Director 3.26%I\.) Mr. Ahmed Shafi Choudhury,Direct0r Pubali Bank Ltd. Director 2.01%Lad Mr. Habibur Rahman,Director Pubali Bank Ltd. Vice Chairman 2.00%
_b Mr. Mustafa Ahmed,Director Pubali Bank Ltd. Director 2.18%Q1 Mr. Muhammed Kabiruzzaman Yaqub,Director Pubali Bank Ltd. Director 2.00%C\ Mr. Azizur Rahman,Director Pubali Bank Ltd. Director 2.52%\i Mr. Shahdeen Malik, Independent Director Pubali Bank Ltd. Director 0.0002%Q3 Mr. M A Halim Chowdhury (Nominated by Pubali Bank Limited) Pubali Bank Ltd. Managing DirectorLO Mrs. Rana Laila Hafiz Not applicable
|_|. C) Mrs. Ayesha Farha Chowdhury Not applicable|_L |_L Mr. Rezwan Rahman Not applicable|_L |\) Mr. Zeyad Rahman Not applicable|_|. Lad Mr. Ahmed Salah Sater Not applicable
2.20.3 Related Party Transactions
Name of the Party Related to Nature of the outstandingtransactions amount as on 31
Dec 2014Pubali Bank Limited Parent company Secured Overdraft (2,12,so,s5,366)
2.21 Events after the reporting periodWhere necessary, all the material events after the reporting period date have been consideredand appropriate adjustment/disclosures have been made in the financial statements.
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
2.22 Manangement' responsibility on financial statementsThe manangement of the company is responsible for the preparation and presentation of thesefinancial statements.
2.23 Generala) These financial statements are presented in Taka, which is the Company's functional currency.
Figures appearing in these financial statements have been rounded off to the nearest Taka.b) The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been
provided for in the books of the Company.c) Figures of previous year have been rearranged whenever necessary to conform to current
years presentation.
3 Share capitalAuthorized capital50,000,000 Ordinary Shares of Tk. 100/- each.Issued, subscribed and paid-up capitalPaid-up Capital 16,000,000 shares of Tk. 100/- each, fully paid.
4 Investment Revaluation Reserve
Balance at the beginning of the yearTransferred during the yearDeferred tax liability
5 Retained earnings
Balance at the beginning of the yearPre-operating expensesAdd: Net profit during the year
Less: DividendBalance as at the end of the year (812,853,663)_
6 Fixed assetsFurniture and fixtureComputer and computer accessoriesMachinery & equipment
Less: Accumulated depreciation [Annexure-F(vi)]
7 Intangible assetsBack office software-Broker
Less: Accumulated amortization [Annexure-F(vi)]
8 Advances, deposits and prepaymentsOpening balance as at the beginning of the yearAdd: Advance made during the yearLess: Adjustment made during the yearBalance as at the end of the year
Amount in Taka2014 [I 2013 l
5,000,000,000 5,000,000,000
1,600,000,000 1,600,000,000
84,170,70699,024,360
(14,853,654)84,170,706 84,170,706
(856,292,851)
43,439,188
(987,732,993)
131,440,142(812,853,663) (856,292,851)
(856,292,851)_
2,218,9782,589,865
872,237
2,218,9782,262,807
872,2375,681,080
(3,514,550)5,354,022
(2,635,451)2,166,530 2,718,571
1,050,000 1,050,0001,050,000
(1,050,000)1,050,000(735,000)
921,5001,478,000
(1,335,500)
315,000
131,5001,567,000(777,000)
1,064,000 921,500
This balance represents advances for office space,various expense for the Head office & Gulshan Branch.
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
Advance income taxOpening balance as at the beginning of the yearAdvance income tax deducted by DSE on transaction (Broker)Advance income tax deducted by DSE on transaction (Dealer)Advance income tax deducted by CSE on transaction (Broker)Advance income tax deducted by CSE on transaction (Dealer)Advance income tax paid in cash assessment year 2012-2013Advance income tax paid in cash assessment year 2013-2014Advance income tax paid in cash assessment year 2014-2015Advance income tax deducted by bank on interest incomeAdvance income tax deducted on dividend
Investment in securitiesPortfolio investment at CostAB Bank Ltd.Bank Asia Ltd.City Bank Ltd.Dhaka Bank Ltd.Eastern Bank Ltd.Exim Bank of Bangladesh Ltd.IFIC Bank Ltd.Mercantile Bank Ltd.Mutual Trust Bank Ltd.National Bank Ltd.NCC Bank Ltd.The Premier Bank Ltd.Prime Bank Ltd.Shahjalal Islami Bank Ltd.Southeast Bank Ltd.Standard Bank Ltd.Trust Bank Ltd.United Commercial Bank Ltd.Uttara Bank Ltd.Delta Brac Housing Finance Corp. Ltd.First Lease Finance and Investment Ltd.FAS Finance & Investment Ltd.IDLC Finance Ltd.International Leasing & Financial Serv. Ltd.Lanka Bangla Finance Ltd.United Finance Ltd.Union Capital Ltd.AIBL 1st Islamic Mutual FundDBH First Mutual FundEBL First Mutual FundGrameen One : Scheme TwoGreen Delta Mutual FundMBL 1st Mutual FundPHP First Mutual FundPrime Bank 1st ICB AMCL Mutual FundAtlas Bangladesh Ltd.BSRM Steels Ltd.Deshbandhu Polymer Ltd.Golden Son Ltd.
Amount in Taka2014 2013
39,942,2306,448,325
161,74038,235
7292,000,0005,602,5531,744,465
1,2618,567,161
27,015,5887,388,548
187,238
28,9355,321,921
64,506,699
89,898,71813,688,89838,609,83724,482,639
8,865,02029,411,52018,897,74439,844,68931,800,91396,921,97632,213,15039,003,82560,872,62552,585,21143,022,98711,532,5005,540,894
20,221,10531,655,50271,376,774
2,712,2001,295,578
55,629,24176,825,919
6,998,50216,107,18850,000,00030,784,857
1,625,46320,375,60571,200,86550,000,00050,000,000
5,977,600113,543,620201,153,596
7,002,86326,883,401
39,942,230
89,898,71812,819,79838,130,53724,095,639
7,081,80029,411,52018,897,74439,844,68931,800,91396,921,97632,213,15039,003,82559,761,32552,585,21135,474,23810,757,0005,540,894
11,869,63031,655,50268,481,860
2,712,2001,295,578
52,537,10176,825,91929,491,2716,998,502
16,107,18750,000,00030,784,857
1,625,46320,375,60571,200,86550,000,00050,000,000
5,977,600113,543,620201,153,596
7,002,86326,883,401
Sub total C/F 1,548,563,025 1,550,761,597
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
Sub total B/FQuasem Drycells Ltd.S. Alam Cold Rolled Steels Ltd.Navana CNG Ltd.Singer Bangladesh Ltd.Fine Foods Ltd.Dhaka Electric Supply Company Ltd.Khulna Power Company Ltd.MJL Bangladesh Ltd.Energyprima Ltd.Jamuna Oil Company Ltd.Meghna Petroleum Ltd.Padma Oil Company Ltd.Power Grid Company of Bangladesh Ltd.Summit Power Ltd.Titas Gas Transmission & Dist. Co. Ltd.Apex Weaving & Finishing Mills Ltd.Envoy Textiles Ltd.Generation Next Fashions Ltd.Familytex (BD) Ltd.Malek Spinning Mills Ltd.Metro Spinning Ltd.Paramount Textile Ltd.Beximco Pharma Ltd.ACI Ltd.Active Fine Chemicals Ltd.Keya Cosmetics Ltd.Beacon Pharmaceuticals Ltd.Square Pharmaceuticals Ltd.Summit Alliance Port LimitedMeghna Cement Ltd.M.I. Cement Factory Ltd.Lafarge Surma Cement Ltd.Heidelberg Cement Bd. Ltd.Intech Online Ltd.Bangladesh General Insurance Company Ltd.Continental Insurance Ltd.Delta Life Insurance Ltd.Fareast Islami Life Insurance Co. Ltd.Green Delta Insurance Ltd.Meghna Life Insurance Co. Ltd.National Life Insurance Ltd.Pioneer Insurance Ltd.Pragati Insurance Ltd.Prime Islami Life Insurance Ltd.Progressive Life Insurance Co. Ltd.Reliance Insurance Ltd.Unique Hotel & Resorts Ltd.United Airways (BD) Ltd.Bangladesh Export Import Company Ltd.Sub total (A)
1,548,563,025
9,865,477117,213,112
49,207,762261,860,408
47,500,00017,334,22025,947,880
6,971,7959,167,150
70,933,007118,395,469
6,501,13415,409,155
1,298,7803,354,800
62,241,72467,126,6782,638,400
40,919,92421,412,51918,527,10082,774,61415,429,4007,452,7398,999,460
114,426,94512,284,91522,619,9744,839,5456,374,701
27,078,7514,777,3508,546,7392,322,5153,405,8509,174,8454,822,1354,393,7502,330,9553,023,110
912,05080,000,00065,503,45421,614,609
1,550,761,59715,356,7917,975,327
117,213,1129,333,790
33,42046,207,912
261,860,4088,334,702
47,500,0007,924,990
6,971,7955,608,500
63,746,155121,014,593
6,501,1346,034,3001,025,450
62,241,72467,126,678
40,919,92418,011,464
82,774,61415,333,5008,808,7218,999,460
114,426,94511,849,21534,470,150
6,374,70127,078,7514,777,350
20,024,7812,322,515
8,017,6354,889,5254,393,7502,303,2053,023,110
853,000912,050
80,000,00065,503,45421,614,609
3,035,497,925 3,000,454,807
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
Amount in Taka2014 I] 2013
Stock Exchange SharesDhaka Stock Exchange Ltd. I 72,151,060 I 72,151,060Chittagong Stock Exchange Ltd. 42,873,300 42,873,300Sub total (B) 115,024,360 115,024,360Total cost price (A+ B) 3,150,522,285 3,115,479,167
This represents total face value of the shares allotted by DSE and CSE in favor of the company against the DSE and CSEmemberships. As per the provision of the Exchange Demutualization Act-2013 and in accordance with the Bangladesh SecuritiesExchange Commission (BSEC) approved Demutualization Scheme, Dhaka Stock Exchange Ltd. (DSE) allotted total 72,15,106ordinary Shares at face value of Tk.10.00 each and a Trading Right Entitlement Certificate (TREC), and Chittagong Stock ExchangeLtd. (CSE) allotted total 42,87,330 ordinary shares at face value of Tk.10.00 and Trading Right Entitlement Certificate (TREC), infavor of the company against the membership of DSE and CSE respectively. Out of the above DSE transferred 2,886,042 sharesand CSE transferred 1,714,932 shares directly to the credit of the Beneficiary Owner's account of the company. The rest shareswere credited to blocked accounts as per provisions of the Exchange Demutualization Act, 2013. As there is no active market forDSE shares, we have shown the value at original cost of our investment.
no value has been asigned to, and recorded against, these two TRECs.
11 Accounts receivableReceivable from Pubali BankReceivable from DSE (Broker)Receivable from DSE (Dealer)Receivable from CSE (Broker)Receivable from CSE (Dealer)Dividend income receivableReceivable from clients
12 Cash and cash equivalentCash in handCash at Bank :Current account:Pubali Bank Ltd. A/C-355590103401-2 Consolidated customer A/CPubali Bank Ltd. A/C-355590103402-7 Customers Security DepositPubali Bank Ltd. A/C-355590103403-1 Other IncomePubali Bank Ltd. A/C-290590101901 Documentation feePubali Bank Ltd. A/C-565901023491 Consolidated customer (Gulshan Branch) A/CPubali Bank Ltd. A/C-2905901042400 VAT A/CPubali Bank Ltd. A/C-2905901042129 Consolidated customer A/CPubali Bank Ltd. A/C-2905901042114 Dealer A/C
23,641,036
4,473,714
8,408,34510,651,147
As the TREC is not a commonly tradable instrument and no purchase/sale transaction as yet has occurred after demutualization,
77,98335,217,126
9,411,62511,719,240
47, 174,242 56,425,974
12,162,8362,961,390
59,34017,751
409,841,44910,215,178
22,121,8582,949,390
28,97011,680
815,00015
178,220,5876,775,770
Sub total 435,257,944Special notice deposit account :Pubali Bank Ltd. SND A/C-2905102001105 Public Issue Application A/CPubali Bank Ltd. A/C-29051020993 Sundry Deposit A/CPubali Bank Ltd. A/C -290510201047 Income & Expenditure A/CSub total
210,923,270
1,157,043307,952377,279
258,25316,926,802
1,842,274 17,185,055Total 437,100,218 228,108,325
Pubali Bank Limited
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
13
14
15
15.1
15.2
16
Annual Report 2014
Amount in Taka2014 2013
Accounts payablePayable to DSE brokerPayable to Pubali BankPayable for CDBLPayable to clientsSecurity depositPayable to software providerVAT payableTax payableRevenue stamp payableSWF payableSalary and allowance payableRent expense payableLegal fees payableAuditor's fee payableStationeiy, printing, advertisement payablePayable to suppliersSundry deposits
29,38413,810
1,975,800301,761,019
2,961,850461,789
74,18825,336,046
7801,719
579,500115,00037,15061,576
34,131850,000
2,769,919189,464,496
2,949,390461,789
28,887206,251
4,4101,538
12,123267,200115,000
12,3087,000
61,576333,409,611 197,246,018
Secured overdraftBalance at the beginning of the yearAdd: Loan taken during the yearLess: Repayment of loan during the year
2,133,075,13610,460
(5,000,230 )
2,148,879,45934,195,677
(50,000,000)Balance at the end of the year 2,128,085,366 2,133,075,136
Provision for investment and clients‘ margin loanProvision for diminution in value of investment (note 15.1)Provision for impairment of clients’ margin loan (note 15.2)
964,958,83660,511,491
878,114,29029,356,374
Provision for diminution in value of investmentBalance at the beginning of the yearAdd: Provision made during the year
1,025,470,327
878,114,29086,844,546
907,470,664
878,114,290964,958,836 878,114,290
Provision for impairment of clients‘ margin loanBalance at the beginning of the yearAdd: Provision made during year
29,356,374
31,155,117
19,346,26410,010,110
20% provision for unrealized loss arising out of year end revaluation of sharespu,.chased_ 60,511,491 29,356,374
As per derictive no. SEC/CMRRCD/2009-193/ 166 dated 12 January 2015 of Bangladesh Securitues and Exchange Commission, 20%provision can be made for unrealized loss araising of the year end (31-12-2014) revaluation of shares purchased as dealer.
Provision for expensesProvision for rent, tax, insurance, electricity expense (Note-16.1)Provision for postage, stamp, telecommunication etc. (Note-16.2)Provision for Stationery, printing, advertisement expenses. (Note-16.3)Provision for repair of machinery equipment expenses(Note-16.4)Provision for other expenses (Note-16.5)
394,57947,30124,311
2,900555,253
30,87136,667
107,7081,024,344 175,246
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
16.1 Provision for rent, tax, insurance, electricity expenseBalance at the beginning of the yearProvision made during the yearSettlement during the yearBalance at the year end
16.2 Provision for postage, stamp, telecommunication etc.Balance at the beginning of the yearProvision made during the yearSettlement during the yearBalance at the year end
16.3 Provision for Stationery, printing, advertisement expensesBalance at the beginning of the yearProvision made during the yearSettlement during the yearBalance at the year end
16.4 Provision for repair of machinery equipment expensesBalance at the beginning of the yearProvision made during the yearSettlement during the yearBalance at the year end
16.5 Provision for other expensesBalance at the beginning of the yearProvision made during the yearSettlement during the yearBalance at the year end
17 Provision for taxationBalance at the beginning of the yearProvision made during the year (note-17.1)Settlement during the yearBalance at the end of the year
17.1 Current tax expensesProvision made during the yearPrior year adjustment
18 Payable for IPO FundBalance as at the beginning of the yearProvision made during the yearSettlement during the yearBalance at the end of the year
19 Deferred taxBalance as at the beginning of the yearProvision made during the yearProvision adjusted during the yearClosing balanceAdjustment for deferred tax liability for investment revaluation reserveDeferred tax liabilitiesl (assets)
Amount2014 U
30,871369,535
(5,827)
2013in Taka ‘
46,0507,000
(22,179)394,579 30,87 1
36,66740,950
(30,316)39,27229,184
(31,789)47,301 36,667
24,311
24,311
2,900
2,900
107,708536,733(89,188)
102,72795,374
(90,393)555,253 107,708
39, 190,74233,798,884
39,190,742
72,989,626 39, 190,742
I 33,798,88433,798,884
5,634,000(4,174,000)
1,460,000
14,862,563
(171,249)
(40,087,509)40,096,418
14,691,314 8,90914,853,654
14,691,314 14,862,563
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
20
21
22
23
23.1
Amount in Taka2014 I] 2013
Interest incomeInterest on margin I0an* | 95,665,839 || 94,166,535 |
95,665,839 94,166,535*While reviewing the investment status in margin account, the Board of Directors in its 29 Board meeting held on 17 December2014, observed that 113 numbers of loan accounts continuing their weak performances in dealing with their accounts, and withthe recent down trend in the market, their account positions are deteriorating day by day. Since, market is in bearish trend for lastcouple of months, Board felt that these negative equity account holders need special attention and require proper nursing to makethem turn around. For the benefit of the company, it is prudent not to charge the interest against these negative equity marginaccounts for next one year, so that these investors can make their accounts turned around which will eventually make thecompany asset realizable. To make this plan effective, the Board resolved to temporarily discontinue charging interest on theseloan accounts for next one year effective from 1 October 2014.
Other operating incomeBO opening charge, margin documentation fees, cheque bounce chargeRevenue from CDBL charge and annual maintenance fees and other income 1,118,535
58,933 336,7711,011,140
Others income from excess provision - 4,978,8871, 177,468 6,326,798
Direct expensesHowla and Iaga chargesCDBL expenseCDS connection fee
3,116,4772,402,200
6,0003,529,7032,772,083
6,0005,524,677 6,307,786
Operating expensesSalary and allowances (Note- 23.1) 21,086,765Rent expense 363,928Electricity & electric fittings expense 178,991Postage, stamp, telecommunication etc. 311,637Directors‘ fees 506,000Stationery, printing, advertisement expense 252,759Repairs of machinery and equipment 190,001Depreciation & amortization charge [Detailed in Annexure- F(vi)] 1,194,099Auditor's fee 115,000Software Development expenses 870,000Legal fees 600,000Newspapers & periodicals 14,824Fuel expense 51,956Overtime allowance 185,250Travelling allowance 35,010Maintenance of bank premises 48,400DSE charge 8,436Subscription -Conveyance charge 67,580Entertainment expense for office & clients 487,846Internet connection fee 31,625Car maintenance 5,405Bandwidth service charge 311,245Renewal & registration expense 176,210Water & sewerage 71,775Miscellaneous expense 677,754
16,959,214189,466136,047295,154184,000229,748121,606
1,348,764125,500167,200
9,97232,410
148,5509,445
40,23216,4385,000
67,714349,81434,500
298,20071,51575,951
278,162Allocation of expenses are given in Annexure-F(vii) 27,842,496 21,194,602
Salary & AllowancesBasic salaryHouse rent allowancesMedical allowancesOther allowancesContributory provident fundBonus to employees
8,281,8674,953,1711,122,7002,238,137
805,4053,685,485
6,528,0834,020,090
920,0381,329,992
629,2713,531,740
21,086,765 16,959,214
4102tr0PeRduHnAdE___HMLkH3BMbUP
IO8_O8__H
OOO_m_HM
8%?OOO__gO__H_
2583
_s°___
IOOQHEQH
OOO_n_:M
OM56?36QOOREQHI
OQQOQEU
9_@<£omaw“Egg”
g_§
g:50“=UH_“__=<’g
=°:~N_t°E<
3°
U
E~_a_“__mA_
"___°_“_mN:___°E
Om£3
O__m_h__;__m___m
@@OdhN
$§m__N
ONO__HW@__hI
Mw__mO_hNM
NNO__‘__H___m
_2°___
gmwifia:3:8%:
2:5mggmw@Rd:_N
D1“__R__HWNHQE
Mwmgmmag?aqmfig
adMgggIONOaqgwIQQO$Mw_Q_mdI
®@O_NNm
WNQEHQNgagBgad
m21_HXcQ23_E_:
EUE°___i“_m_Q>$Er_g_>_
mgamggm‘LWHDQEOUQLQHJQEOU
U5_N>
___°_Hm_Uo
hnwu
CEO?=U““__:<'_N“°_P
U5m___________mm°%E_uUu__guMECUQO__w8__mE___O_“__u_°<hNU>
LNU>EqgfiU5gt
Eu8____W_g
h~m>
$2:09_2°___2:u________u
hNU>Ucumflt
:1
8____W_gME___2_o
__°_EUU__%O#8
p_~____U_t~n_
As_F__E$____”E
__N__6NLQQEwuQn_HamHmmmm“wmm<UQXE‘Om_____um____u%
_>_xm______I<_§_E:mwztsumm“gm__g__:_
“__°_Hm_U2ag
Pubali Bank Securities Limited
Pubali Bank Limited Annual Report 2014
Notes to the financial statements for the year ended 31 December 2014
Allocation of operating expense
Annex-F(vii)
[Figures are in Tk.]I Particulars 2014 | 2013
Revenue from brokerage commissionCapital gain from investment in securitiesDividend incomeOther operating income
58,379,03330,850,57342,360,74696,843,307
25.56% 66,496,94113.51% 5,645,99118.54% 36,412,79342.39% 100,493,333
32%3%
17%48%
Total 228,433,659 100% 209,049,058 100%
Operating Expense attributable to Brokerage commission (25.56%, 32%)
Salary and allowancesRent expenseElectricity & electric fittings expensePostage, stamp, telecommunication etc.Directors‘ feesStationery, printing, advertisement expenseRepairs of machinery and equipmentDepreciation & amortization chargeAuditor's feeSoftware Development expensesLegal feesNewspapers & periodicalsFuel expenseOvertime allowanceTravelling allowanceMaintenance of bank premisesDSE chargeSubscriptionConveyance chargeEntertainment expense for office 81 clientsInternet connection feeCar maintenanceBandwidth service chargeRenewal & registration expenseWater 81 sewerageMiscellaneous expense
Sub total (A)
20145385777
950204575079,654
1253346460548564
30521229394
222372153360
578915280413508949
123712156
11273124693
8083L382
79,5544503918346
1752347,116,542
20135,426,948
60,62943,53594,44958,88073,51938,914
431,60440,160
53,5043,191
10,37147,536
3,02212,8745,2601,600
21,668111,940
11,040
95,42422,88524,30489,012
6,782,273
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
Operatng expense attributable to Capital gain frominvestment in securities (13.51%, 3%)
Salary and allowancesRent expenseElectricity 81 electric fittings expensePostage, stamp, telecommunication etc.Directors‘ feesStationery, printing, advertisement expenseRepairs of machinery and equipmentDepreciation & amortization chargeAuditor's feeSoftware Development expensesLegal feesNewspapers & periodicalsFuel expenseOvertime allowanceTravelling allowanceMaintenance of bank premisesDSE chargeSubscriptionConveyance chargeEntertainment expense for office 81 clientsInternet connection feeCar maintenanceBandwidth service chargeRenewal 81 registration expenseWater 81 sewerageMiscellaneous expense
Sub total (B)
Operating expense attributable toDividend income (18.54%, 17%)
Salary and allowancesRent expenseElectricity & electric fittings expensePostage, stamp, telecommunication etc.Directors‘ feesStationery, printing, advertisement expenseRepairs of machinery and equipmentDepreciation 81 amortization chargeAuditor's feeSoftware Development expensesLegal feesNewspapers 81 periodicalsFuel expenseOvertime allowanceTravelling allowanceMaintenance of bank premisesDSE chargeSubscriptionConveyance chargeEntertainment expense for office 81 clientsInternet connection feeCar maintenanceBandwidth service chargeRenewal 81 registration expenseWater 81 sewerageMiscellaneous expense
Sub total (C)
20142,848,822
49,16724,18242,10268,36134,14825,669
161,32315,537
117,53781,060
2,0037,019
25,0274,7306,5391,140
9,13065,9084,273
73042,04923,806
9,69791,565
3,761,521
3,909,48667,47233,18557,77793,81246,86235,226
221,38621,321
161,298111,240
2,7489,633
34,3456,4918,9731,564
12,52990,447
5,8631,002
57,70532,66913,307
125,6565,161,999
2013508,776
5,6844,0818,8555,5206,8923,648
40,4633,765
5,016299972
4,457283
1,207493150
2,03110,494
1,035
8,9462,1452,2798,345
635,838
2,883,06632,20923,12850,17631,28039,05720,673
229,29021,335
28,4241,6955,510
25,2541,6066,8392,794
85011,51159,468
5,865
50,69412,15812,91247,288
3,603,082
Pubali Bank Limited Annual Report 2014
Pubali Bank Securities LimitedNotes to the financial statements for the year ended 31 December 2014
Operating expense attributable to Otheroperating income (42.39%, 48%)
Salary and allowancesRent expenseElectricity 81 electric fittings expensePostage, stamp, telecommunication etc.Directors‘ feesStationery, printing, advertisement expenseRepairs of machinery and equipmentDepreciation 81 amortization chargeAuditor's feeSoftware Development expensesLegal feesNewspapers & periodicalsFuel expenseOvertime allowanceTravelling allowanceMaintenance of bank premisesDSE chargeSubscriptionConveyance chargeEntertainment expense for office 81 clientsInternet connection feeCar maintenanceBandwidth service chargeRenewal 81 registration expenseWater & sewerageMiscellaneous expense
Sub total (D)
Grand Total (A+B+C+D)
20148,938,680
154,26975,874
132,103214,493107,14580,541
506,17948,749
368,793254,340
6,28422,02478,52714,84120,517
3,576
28,647206,798
13,4062,291
131,93774,69530,425
287,30011,802,434
27,842,496
20138,140,423
90,94465,303
141,67488,320
110,27958,371
647,40760,240
80,2564,787
15,55771,3044,534
19,3117,8902,400
32,503167,911
16,560
143,13634,32736,456
133,51810, 173,409
21, 194,602
Pubali Bank Limited Annual Report 2014
Annex- G
ACCOUNTANT'S REPORT TO THE MEMBERS OFPUBALI EXCHANGE COMPANY (UK)LTD
FOR THE YEAR O1 JANUARY 2014 TO 31 DECEMBER 2014 PAGE-1
In accordance with instructions given to us we have verified thefinancial statements for the company for the year O1 January 2014 to31 December 2014. The Accounts have been prepared in accordance tothe special provisions of part 15 of the Companies Act 2006. Thedirector of the company has confirmed that the company is entitledto exemption from audit under section 477(2) of the Companies Act2006, and as a result no audit has been carried out. The financialstatements on pages 2 to 5 are therefore based on the informationshown in the accounting records and on the information supplied andexplanations given to us by the director.
Trading activities of Pubali Exchange Company (UK) Ltd have beenceased on 02 December 2014 and all of the assets have been realisedat the best market value and all of the liabilities have beensettled at their current value the accounts have therefore beenprepared on break up basis instead of going concern basis inaccordance with International Financial Reporting Standards.
Other notes to the accounts mentioned in the Notes to the Accountsfor the year ended 31 December 2014 are integral part of this reportand are requested to read as a conjunction of this report.
Ha/ueseim <.<.2_-Q0
MUDABBIR HUSSAIN & COChartered Accountants, Tax Advisers & Business Advisers203 Mile End RoadLondonE1 4AA
Pubali Exchange Company (UK) Ltd.Statement of Financial Position as at 31 December 2014
Pubali Bank Limited Annual Report 2014
gm
Assetsi Note
Amounts Amounts Amounts(Taka)
2014l (GBP) (Taka)
2013Non-current AssetsPreliminary expenses 2Tangible assets 3Total Non-current Assets
Current Assets
Cash at bank 4Cash in handReceivable from Pubali Bank LimitedTotal Current AssetsTotal Assets
Equity and Liabilities
Capital and ReservesPaid up capitalAccumulated lossForeign currency translation reserveTotal Equity
Current LiabilitiesPayments in transitCustoms and exciseOther payablesTotal Current LiabilitiesTotal Equity and Liabilities
2,287,6182,137,9174,425,535
76,716 9,276,499
3,644,5283,633,012
76,716 9,276,499 7,277,54076,716 9,276,499 11,703,075
27,837,981(25,655,900)
1,125,0433,307,124
76,716 9,276,499
7,594,728215,980585,243
76,716 9,276,499 8,395,95176,715 9,276,499 11,703,075
Pubali Bank Limited Annual Report 2014
Pu bali Exchange Company (UK) Ltd. Annex_G MStatement of Comprehensive Income for the year ended 31 December 2014
Commission incomeEmployee benefits expenseDepreciation & amortisationOther expenses
Profit before income taxIncome tax expenseNet profit/(loss) for the period
Other comprehensive incomeOther comprehensive income - net offtaxTotal comprehensive income/(loss)
Note 2014 2013
} Amounts(GBP) I Amounts(Taka) ‘ Amounts(Taka)
5 75,955(52,143)
6 (6,272)7 (140,103)
9,831,815(5,749,390)
(811,848)(18,134,932)
9,303,398(5,682,511)
(973,594)(8,020,842)
(122,563) (15,864,555) (5,373,551)
(122,583) (1s,se4,55s) (5,373,551)
(122,563) (15,864,555) (5,373,551)
Pubali Bank Limited Annual Report 2014
Pubali Exchange Company (UK) Ltd. AnneX_G UmStatement of Cash Flow for the year ended 31 December 2014
A. Cash flows from operating activitiesProfit/(loss) before income taxAdjustment for non cash activitiesDepreciationAmortisationOperating profit before working capital changesIncrease / (decrease) in trade and other payables
Cash flows generated from operationsInome tax paidInterest receivedPreliminary expensesNet Cash from/(used in) operating activities
B. Cash flows from investing activitiesPurchase of fixtures, fittings & equipmentNet Cash from/(used in) investing activities
C. Cash flows from financing activitiesIssue of share capitalNet cash from/(used in) financing activities
D. Net increase/(decrease) in cash and cash equivalents (A+B+C)E. Opening cash and cash equivalentsF. Closing cash and cash equivalents (D+E)
Amounts (GBP)2014 [| 2013 l
(122,563)|| (43,481)
3 316 4 0732,956 3,805 1
(116,291)11,097
(35,603)(87,078)
(105,194) (122,681)
(105,194) (122,681)
28,316 ||28,316
20,000 || 20,000 |20,000 20,000
(56,878)56,878
(102,681)159,559
56,878
Pubali Bank Limited Annual Report 2014
Pubali Exchange Company (UK) Ltd. Annex-G (iv)Statement of Changes in Equity for the year ended 31 December 2014
(Amounts in GBP)
Particulars Share Capital AccumulatedProfitflLoss)
Total
Balance at 1 January 2014 235,417 (209,570) 25,847
Newly issued and paid-up 20,000 20,000Total comprehensive income/(loss)for the year ended December 2014 (122,563) (122,563)
Accumulated Profit/(Loss) (255,417) 255,417
Balance as at 31 December 2014 (76,716) (76,716)
Transferred to current liabilities 76,716 76,716Total
Balance as at 31 December 2013 235,417 (209,570) 25,847
Pubali Bank Limited Annual Report 2014
Pubali Exchange Company (UK) Ltd. Annex-G lvlNotes to the financial statements for the year ended 31 December 2014
Status of the Company
Pubali Exchange Company (UK) Ltd. was incorporated on the 22 March, 2010 with the Registrar ofCompanies for England and Wales under the Companies Act 2006 with Company No. 7197488. TheCompany received Certificate of Registration for Money Laundering Regulation (MLR) No.12589712issued by HM Customs & Excise, UK on 10 June 2010. Financial Services Authority (FSA), UK hasapproved registration of Pubali Exchange Company (UK) Ltd. with effect from 3 December, 2010. TheRegistration Number is PSD/522085. The Company has started its operation from January, 2011.
The main objective of the company was to facilitate the Bangladeshi expatriates living and working in theUK to route their remittances through legal channel in a speedy and safe way to their families and dear &near one.
Accounting Policies
(a) Accounting Conventions and Financial Reporting Standards
The accounts have been prepared under the historical cost convention and in accordance with applicableaccounting and reporting standards.
As the trading activities of Pubali Exchange Company (UK) Ltd. have been ceased on O2 December 2014and all of the assets have been realised at the best market value and all liabilities have been settled attheir current value the acounts have been prepared on break up basis instead of going concern basis inaccordance with International Financial Reportig Standards.
(b) Turnover
Turnover represents the amount of commission received from money transmitting services.
(c) Depreciation
Depreciation is provided @ 18% on reducing balance basis. As the trading has been ceased on 02 December2014 and all of the assets have been realised at the best market value the balance between written downvalue and realisation value have been treated as Balancing Allowance as per Capital Allowances Act 2001 andas per Capital Allowances Guidelines of HM Revenue & Customs in the UK.
(d) Amortisation
Amortisation is provided @ 20% on Straight Line basis. As the trading activities of Pubali ExchangeCompany (UK) Ltd. have been ceased on O2 December 2014 all of the balance of unamortisedPreliminary Expenses have been amortised in this final statement of financial statements as perInternational Accounting Standards and Guidelines of HM Revenue & Customs in the UK.
Pubali Bank Limited Annual Report 2014
Pubali Exchange Company (UK) Ltd.Notes to the financial statements for the year ended 31 December 2014
2
3
4
5
6
7
Preliminary expensesPre-operating expensesTotalLess:20% Amortization for the period
Less: Disposal on account of winding upAs at 31 December 2014
Tangible assetsFixtures, fittings & equipment:CostBalance at the beginning of the periodAdditionsBalance at the end of the periodDepreciationBalance at the beginning of the periodCharges for the periodBalance at the end of the periodNet book value at 31.12.2014Less: Disposal on account of winding up
Cash at BankSonali Bank- Client A/CSonali Bank- Office A/C
Commission income
Amount in GBP2014 H 2013 l
17,879 21,95217,879
(3,316)21,952
(4,073)14,563(14,563)
17,87917,879
31,363 H 31,36331.363 31.363
(14,654)) I(g,956)
(10,849)(3,805)
(17,610) (14,654)13,75313,753
16,709
16,709
- 1 I 28,484 1
23.484
75,955 75,280Commission income represents the amount of commission received from money transmitting services.
Depreciation & AmortizationDepreciationAmortization
Other ExpensesAdvertising and PRRent, rate, insurance & waterLight and heatTelephone, fax & internetPrinting, postage and stationeryFees & renewalsSolicitors feeBank chargesComputer & softwareRepair & maintenanceAccountancy feeTravel and subsistenceProfessional feeRedundancy paymentBalancing allowance
2,9563,316
3,8054,073
6,272 7,87893
38,114828
1,837750
1,0905,933
37,972320354
2,5002,6001,460
18,47627,776
41726,481
8961,858
5281,401
28,336437
2,0802,468
140,103 64,902
Pubali Bank Limited Annual Report 2014
Worldwide list of Exchange Companies/Bank for sending
BahrainKSAKuwait
MalaysiaOman
Qatar
SingaporeUAE
UK
USA
Global
remittance through Pubali Bank Ltd.
Bahrain India International Exchange Co., Nonoo Exchange Co., Zenj Exchange Co.Al Rajhi Banking & Investment Corporation, Bank Al Bilad, AI Amoudi ExchangeAl Mulla International Exchange Company, Al Muzaini Exchange Co., Bahrain ExchangeCompany, City International Exchange Co., Dollarco Exchange Co., Oman ExchangeCompany, Security Exchange Company, UAE Exchange Centre WLL.NBL Money Transfer Sdn. Bhd., IME (M) Sdn. Bhd. Merchantrade Asia Sdn. Bhd.Oman & UAE Exchange Centre, Oman International Exchange, Purshottam KanjiExchange Co., Gulf Overseas Exchange Co., Laxmidas Tharia Ved (Exchange) Co., ModernExchange Co., Musandam Exchange, Mustafa Sultan Exchange Co., Hamdan Exchange.Al Mana Exchange, Al Zaman Exchange, Arabian Exchange Company, Eastern ExchangeEst., Gulf Exchange Company, Habib Qatar International Exchange Ltd., NationalExchange Company, Trust Exchange Co.NBL Money Transfer Pte. Ltd., Prime Exchange Pte.Ltd.Al Ahalia Money Exchange Bureau, Al Ansari Exchange, Al Falah Exchange, AI GhurairExchange Company, AI Mona Exchange Co., AI Rostamani International Exchange, AlfaExchange, Habib Exchange Co., Lari Exchange Establishment, National ExchangeCompany, UAE Exchange Centre (Express Money), UAE Exchange Centre LLC, EconomicExchange Centre, Emirates India International Exchange, Federal Exchange, MultinetTrust Exchange, Redha Al Ansari Exchange Est., Universal Exchange Centre, Wall StreetExchange Centre, Sharaf Exchange LLC.Pubali Exchange Company (UK) Limited, Orchid Money Transfer Limited, Wall Street ForexLondon Limited, K.F. Enterprises Money Transfer, KMB Enterprises, Frontier GlobalConsultants Ltd.Trans-Fast Remittance LLC, Wall Street Finance LLC, Prabhu Group Inc. (d/b/a Prabhu MoneyTransfer), Placid NK Corporation (DBA Placid Express), RIA Financial Services Ltd.Western Union Network (France) SAS, MoneyGram Payment System Inc.
76
Pubali Bank Limited Annual Report 2014
BRANCH NETWORK
Name of the Regions/Branches District Name of the Regions]Branches District
Corporate BranchesPrincipalMotijheelForeign ExchangeB.B. AvenueDhaka StadiumKawran BazarMohakhaliCDAAgrabad
Dhaka North ZoneFarmgateAsad AvenueMohammadpurSatmosjid RoadSavarTejgaonGulshan Model TownInternational AirportChiriakhana RoadMirpurKafrulShewraparaAgri Culture ComplexSonargaon HotelBananiProgati SaraniAshuliaPanthapathKuril Bishwa RoadUttara Model TownBaridharaBanasreePallabiDakshin KhanKaligonjKashimpurTongiJoydevpurSalnaMawnaDaulatpur
DhakaDhakaDhakaDhakaDhakaDhakaDhaka
ChittagongChittagong
DhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhaka
GanpurGaflpurGaflpurGanpurGaflpurGaflpur
Manikgonj
Manikgonj ManikgonjSingair Manikgonj
Dhaka Central ZoneMalibaghLaboratory RoadDhaka Railway StationShahbagh AvenueR.K. Mission RoadBashabooNayapaltanDhaka ShishuparkShantinagorGoran BazarSonargaon RoadMoghbazarFakirapool BazarRampuraNew MarketElephant RoadHotel Osmani InternationalShipahibagh Bazar
Dhaka South ZoneMoghaltullyPeelkhanaBar LibraryNawabpur RoadBangshalNazimuddin RoadSadarghatChawk bazarJhonson RoadBabu BazarSutrapurBegum BazarlslampurlmamgonjNayabazarKomorgonj
DhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhaka
DhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhakaDhaka
BRANCH NETWORK
Pubali Bank Limited Annual Report 2014
Name of the Regions/Branches District Name of the Regions/Branches District
DolaiparAti BazarDaniaJurain
Narayangonj ZoneNarayangonjTanbazarKalirbazarAraihazarDuptaraShibu MarketNetaigonjCharsindurGhorashalNarsingdiMadhabdiPalashMunshigonjAldibazarNurpurDhalagaonGazariaBhabercharNaoparaSreenagar Bazar
Chittagong North ZonePathergataOld Church CompoundKorbanigonjIndustrial AreaChawk BazarTerribazarKulgaonKhatungonjAman BazarLaldighi EastAsadgonjChaktaiAnderkillaCollege RoadBahadderhat
DhakaDhakaDhakaDhaka
NarayangonjNarayangonjNarayangonjNarayangonjNarayangonjNarayangonjNarayangonj
NarsingdiNarsingdiNarsingdiNarsingdiNarsingdi
MunshigonjMunshigonjMunshigonjMunshigonjMunshigonjMunshigonjMunshigonjMunshigonj
ChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagong
MehdibaghHathazariRanirhatNazirhatBibirhatDharmapurNanupurMadhunaghatRanguniaRaozanKatirhat
Chittagong South ZonePahartaliAnowaraHadiparaLohagoraNorth PotengaE.P.Z.ShiberhatSadarghatPortPatiyaShantirhatShaikh Mujib RoadKadamtaliSandwipBanshkhahSatkaniaChandanabhPaduaMithachara BazarBaratakia BazarReazuddin BazarHalishahorKeranihatShitakundo SM E/KrishiBaroiarhatCox's BazarMoiscalUkhiyaChokaria
ChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagong
ChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongChittagongCox's BazarCox's BazarCox's BazarCox's Bazar
7
Pubali Bank Limited Annual Report 2014
Consolidated Cash Flow Statement for the year ended 31 December 2014
BRANCH NETWORK
Name of the Regions/Branches District Name of the Regions]Branches District
Hill Tracts ZoneRangamatiKhagrachariBandarban
Sylhet East ZoneAsirgonj BazarBondar BazarBaroigram BazarBeani BazarBudhbari BazarChandarpur BazarChowdhury BazarChowkidekhiDarbostDargagateDhaka DakshinFenchugonjGachhbari BazarGolapgonjGowainghatHetimgonjKadamtaliKalighat RoadKaligonjKanaighatMirgonj BazarMohila CollegeMokam BazarShahjalal UpashaharShahgali BazarShahi EidgahShahparan GateSylhet MainZakigonj
Sylhet West ZoneBalagonjBaraikandiBiswanathDaspaika BazarGowala BazarTechnical RoadJalalpur
RangamatiKhagrachariBandarban
SylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhet
SylhetSylhetSylhetSylhetSylhetSylhetSylhetSylhet
TajpurStadiumLalabazarPathantulaSingerkatch BazarTuker BazarChhatakDeraiGobindagonjJagannathpurJamalgonjJawa BazarPagla BazarRasulgonjSriramshi BazarSunamgonj
Moulvibazar ZoneKamalgonjDakshinbaghJuriShamsernagarMoulvi BazarSreemongalWAPDA GateKulauraBaralekhaBrahman BazarAdampur BazarChowmohonaSherpur BazarTengra BazarJogidaharRabir BazarBhatera BazarSyedpur BazarAjmerigonjGazipurBaniachongNabigonjDharmagharSutang BazarHabigonj
SylhetSylhetSylhetSylhetSylhetSylhet
SunamgonjSunamgonjSunamgonjSunamgonjSunamgonjSunamgonjSunamgonjSunamgonjSunamgonjSunamgonj
MoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazarMoulvibazar
HabigonjHabigonjHabigonjHabigonjHabigonjHabigonjHabigonjHabigonj
BRANCH NETWORK
Pubali Bank Limited Annual Report 2014
Name of the Regions/Branches District
Town Mosjid RoadBar LibraryChunarughatShaistagonjMadhabpurGuningonj BazarGajnaipur BazarPutijuriRazar Bazar
Comilla ZoneComilla MainVictoria CollegeZilla ParishadDaulatgonjCheoraChawk BazarMeah BazarDollai NawabpurBangodda BazarPaduar BazarGouripur BazarDoulkhar BazarMaynamatiDebidwarDaudkandiChouddagramChhangarcharRampur BazarChandpurMotlab bazarAshrafpur BazarGridakalindia BazarHajigonjKachuaNayergaon BazarNatun bazarBrahmanbariaAkhauraAshugonjSarak BazarKutiBazar
HabigonjHabigonjHabigonjHabigonjHabigonjHabigonjHabigonjHabigonjHabigonj
ConnflaConflflaConuflaConnflaConflflaConuflaConflflaConflflaConuflaConflflaConflflaConnflaConflflaConflflaConnflaConflfla
ChandpurChandpurChandpurChandpurChandpurChandpurChandpurChandpurChandpurChandpur
Brahman bariaBrahman bariaBrahman bariaBrahman bariaBrahman baria
Name of the Regions/Branches District
Noakhali ZoneFeni (Main)SonagaziKazirhatFeni BazarChhagalnaiyaFulgaziBangla BazarDagon BhuiyanMaijdee CourtSamir MunshirhatChaumuhaniAfazia BazarThanarhat BazarBashurhatDatterhatLaxmipurRaipurRamgonjMirerhat
Mymensingh ZoneMymensingh (Main)Swadeshi BazarTaltola BazarDarirampurUniversity CampusCharparaMuktagachaBhalukaKishorgonjBhairab BazarKamalpurKathiadiNetrokona (Town)MohanganjMadanJamalpurNandina BazarBakultalaSarishabariSherpur TownPathrail BazarTangail MainAkurTakur
FeniFeniFeniFeniFeniFeniFeniFeni
NoakhaliNoakhaliNoakhaliNoakhaliNoakhaliNoakhaliNoakhaliLaxmipurLaxmipurLaxmipurLaxmipur
MymensinghMymensinghMymensinghMymensinghMymensinghMymensinghMymensinghMymensingh
KishorgonjKishorgonjKishorgonjKishorgonjNetrokonaNetrokonaNetrokona
JamalpurJamalpurJamalpurJamalpur
SherpurTangailTangailTangail
Pubali Bank Limited Annual Report 2014
BRANCH NETWORK
Name of the Regions/Branches District Name of the Regions/Branches District
GopalpurZilla SarakPakutiaKaratiaBhaighat Bazar
Rajshahi ZoneRajshahiNew MarketSericultureKatakhali BazarBaneswarNatoreKushumbi KaligonjChapai NawabgonjMoharajpurPabnaSalgariaAtaikulaMaligachaIshurdiSirajgonjKhamargramTarashSatmathaCheloparaBograMurail SME/KrishiSantaharJaipurhatJamalgonjNaogaonMohadevpurDeluabari
Rangpur ZoneRangpurStation RoadShapla ChattarKurigramFulbariGaibandhaMahimagonjPark RoadGobindagonj
TangailTangailTangailTangailTangail
RajshahiRajshahiRajshahiRajshahiRajshahi
NatoreNatore
Chapai NawabgonjChapai Nawabgonj
PabnaPabnaPabnaPabnaPabna
SirajgonjSirajgonjSirajgonj
BograBograBograBograBogra
JaipurhatJaipurhatNaogaonNaogaonNaogaon
RangpurRangpurRangpur
KurigramKurigramGaibadhaGaibadhaGaibadhaGaibadha
ParbatipurDinajpurFulbariPulhatLalmonirhatTushbanderNilphamariSaidpurShutibariThakurgaon (Town)Thakurgaon RoadPanchagarh
Khulna ZoneUpperlessore RoadKhulna MainBatiaghataKhalishpurDoulatpurMirerdangaSheikhpara BazarKayerbazarPhultalaChuknagarBagerhatMonglaSatkhiraPatkelghataMeherpurKushtiaBheramaraChuadangaSaratgonjAlukdia BazarAlamdangaJessoreNoapara BazarBenapoleNavaran BazarNarailJhenaidahMagura
DinajpurDinajpurDinajpurDinajpur
LalmonirhatLalmonirhatNilphamariNilphamariNilphamari
ThakurgaonThakurgaonPanchagarh
KhulnaKhulnaKhulnaKhulnaKhulnaKhulnaKhulnaKhulnaKhulnaKhulna
BagerhatBagerhatSatkhiraSatkhira
MeherpurKushtiaKushtia
ChuadangaChuadangaChuadangaChuadanga
JessoreJessoreJessoreJessore
NarailJhenaidah
Magura
BRANCH NETWORK
Pubali Bank Limited Annual Report 2014
Name of the Regions/Branches District Name of the Regions]Branches District
Barisal ZoneBarisalMadhabpashaShahid MinarBabugonjMehendigonjBazar RoadHospital RoadHizlaMuladiPirojpurNazirpurMatbariaBhandariaSarshinaMearhatSariatpur
BarisalBarisalBarisalBarisalBarisalBarisalBarisalBarisalBarisal
PirojpurPirojpurPirojpurPirojpurPirojpurPirojpur
Sariatpur
NalcityJhalakathiBholaCharfashionKalaiya BandarPatuakhaliGolachipaSubidkhaliBargunaBamnaKanaipurBhangaFaridpurSadarpurGopalgonjMadaripurRajbari
Jhalakhathilhalakhathi
BholaBhola
PatuakhaliPatuakhaliPatuakhaliPatuakhali
BargunaBargunaFaridpurFaridpurFaridpurFaridpur
GopalgonjMadaripur
RajbariNaria SME/Krishi ShariatpurRajapur Jhalakhathi
Pubali Bank Securities Limited(A Subsidiary of Pubali Bank Limited)A-A Bhaban (7th Floor)23, Motijheel C/A, Dhaka-1000Tel: 9589628, 9576147, 9589632, 9564882Fax: 880-2-9590536E-mail: pbIsecurities@gmaiI.com
Pangsha SME/Krishi Rajbari
PUBALI BANK LIMITEDRegistered office
26, Dilkusha C/A, Dhaka-1000
PROXY FORM
I/We...................................................................................................................................................................................................... ..
Address: ...................................................................................................................................................................... ..being the Shareholder
Member of Pubali Bank Limited do hereby appoint Mr./Ms. ............................................................................................................. ..as
my/our Proxy to attend and vote on my/our behalf at the 32"d Annual General Meeting of the Bank to be held on 31“ March,
2015 at 9.00 a.m. at the PSC Convention Hall, Police Staff College, Mirpur-14, Dhaka.
As wished, I/We have attested Signature of the Proxy Holder on ................. ..day of ................ ..2015.
Revenue
Signature of the Shareholder(s) -|-k_ 2000 Signature of the Proxy Holder
No. of Shares held ......................................... ..
Folio N0.
BmllllllllllllllllN.B. Important1. A Member entitled to attend and vote at the 32"d Annual General Meeting (AGM) may appoint a proxy to attend on
his/her behalf.2. The Proxy Form, duly completed, must be submitted at the Company's Registered Office at least 48 hours before
(i.e. by 9.00 a.m. 291*‘ March, 2015) the time fixed for AGM. Proxy is invalid if not signed and stamped as explainedabove.
3. Signature of the Shareholder(s) should agree with the Specimen Signature recorded with the Company.
PUBALI BANK LIMITEDRegistered office
26, Dilkusha C/A, Dhaka-1000
ATTENDANCE SLIP
I/We hereby record my/our presence at the 32"d Annual General Meeting (AGM) held on 315i March, 2015 at 9.00 a.m. at thePSC Convention Hall, Police Staff College, Mirpur-14, Dhaka.
Name of the Shareholder(s)
Name of the Proxy Holder
No. of Shares held
Folio No.
lllllllllllllllSignature of the Shareholder(s) Signature of the Proxy Holder
Notes: Please present this slip at the Reception Desk. Children and non-Shareholders will not be allowed at the Meeting.
/3,, 2 ./1;
PUBALI BANK LIMITED
€ PUBALI BANK LIMITEDo%a“€§
Market Discipline-Pillar-III Disclosures under Basel-II
As on 31 December 2014
Capital Adequacy under Basel-ll
Banks operating in Bangladesh are maintaining capital since 1996 on the basis of risk weighted assets in line withthe Basel Committee on Banking Supervision (BCBS) capital framework published in 1988. Considering presentcomplexity and diversity in the banking industry and to make the banks‘ capital requirement more risk sensitive,Bangladesh Bank, being the central bank of the country has decided to adopt the Risk Based Capital Adequacy forbanks in line with capital adequacy framework devised by the BCBS popularly known as ‘Basel II’. BangladeshBank prepared a guideline to be followed by all scheduled banks from January 2009. Both the existing capitalrequirement rules on the basis of Risk Weighted Assets and revised Risk Based Capital Adequacy Framework forBanks as per Basel II were followed simultaneously initially for one year. For the purpose of statutory complianceduring the period of parallel run i.e. 2009, the computation of capital adequacy requirement under existing rulesprevailed. On the other hand, revised Risk Based Capital Adequacy Framework as per Basel II had been practicedby the banks during 2009 so that Basel II recommendation could effectively be adopted from 2010. From January2010, Risk Based Capital Adequacy Framework as per Basel II have been fully practiced by the banks replacing theprevious rules under Basel-I. Pubali Bank Limited is maintaining its capital requirements at adequate level byadopting the Risk Based Capital Adequacy Guidelines of Bangladesh Bank in line with Basel II model.
The guideline is structured around the following three aspects or pillars of Basel-II:
i. Minimum capital requirements to be maintained by a bank against credit, market and operational risk;
ii. Supervisory Review i.e., Process for assessing overall capital adequacy in relation to a bank's risk profileand a strategy for maintaining its capital at an adequate level;
iii. Market Discipline i.e., To make public disclosure of information on the bank's risk profiles, capitaladequacy and risk management.
Disclosure framework of Pubali Bank Limited
Disclosure includes the following as per Bangladesh Bank guidelines :
0 Scope of Application0 Assets under Banking Book and Trading Book0 Credit risk0 Equity disclosure for Banking Book positions0 Interest rate risk in Banking Book0 Market risk0 Operational risk
Disclosure under Pillar Ill
/3,, 3.”;
Disclosure given below as specified by RBCA Guideline :
A) Scope of Application
Qualitative Disclosure
(9) The name of the top corporateentity in the group to which thisguidelines applies.
Pubali Bank Limited
(b) An out line of differences in thebasis of consolidation foraccounting and regulatorypurposes, with a brief descriptionof the entities within the group (a)that are fully consolidated; (b) thatare given a deduction treatment;and (c) that are neitherconsolidated nor deducted (e.g.where the investment is riskweighted )
The consolidated financial statements of the Bank include thefinancial statements of (a) Pubali Bank Limited (b) PubaliBank Securities Limited. A brief description of these aregiven below:
Pubali Bank limited
Pubali Bank limited (the Bank) was incorporated in the year1959 under the name and style of Eastern Mercantile BankLimited under Companies Act l9l3. After the country’sliberation in l97l, the Bank was nationalized as per policy ofthe Government of Bangladesh under the Bangladesh Bank(Nationalisation) Order 1972 (PO No. 26 of 1972) and wasrenamed as Pubali Bank. Subsequently, the Bank wasdenationalized in the year 1983 and was again incorporatedin Bangladesh under the name and style of Pubali BankLimited in that year. The government transferred the entireundertaking of Pubali Bank to Pubali Bank Limited, whichtook over the same as a going concem.
Pubali Bank Securities Limited
Pubali Bank Securities Limited (PBSL) was incorporated onthe 21$‘ June 2010 under the Companies Act, 1994 as apublic limited company. It is a subsidiary company of PubaliBank Limited holds all the shares of the company except forthirteen shares being held by thirteen individuals. Thecompany has been established as per Securities & ExchangeCommission’s (SEC) Letter # SEC/Reg/DSE/MB/2009/444/dated 20.12.2009. The Registered Office of the company issituated at A-A Bhaban (7"' floor), 23 Motijheel C/A, Dhaka-l000, Bangladesh. The company has started its commercialactivities from 01 February 2011.
The main objects of the company is to carry on the businessof a stock broker and stock dealer house and to buy, sell, anddeal in, shares, stocks, debentures, bonds and other securitiesand to carry on any business as is permissible for a brokerand dealer house duly licensed by the Securities & ExchangeCommission of Bangladesh.
&¢4JB
(0) Any restrictions, or other majorimpediments, on transfer of funds Not applicableor regulatory capital within thegI‘OL1p .
Quantitative Disclosure(d) The aggregate amount of capital
deficiencies in all subsidiaries notincluded in the consolidation that Not applicableare deducted and the name(s) ofsuch subsidiaries.
B) Capital Structure
Qualitative Disclosure
(a) Summary information of theterms and conditions of themain features of all capitalinstruments, especially in thecase of capital instrumentseligible for inclusion in Tier-Ior Tier-II.
The terms and conditions of the main features of all capitalinstruments have been segregated in line with of the eligibilitycriteria set forth vide BRPD Circular No. 35 dated 29 December2010 and other relevant instructions given by Bangladesh Bankfrom time to time. The main features of the capital instruments areas follows:
Tier - I Capital instruments
Paid-up share capital 1 Issued, subscribed and fully paid upshare capital of the Bank. It represents Paid up Capital, RightShares as well as Bonus Shares issued from time to time.
Statutory Reserve 1 As per Section 24(l ) of the Bank CompaniesAct, 1991, an amount equivalent to 20% of the profit before taxesfor each year of the Bank has been transferred to the StatutoryReserve Fund.
Bank is complied in this respect.
General reserve 1 Any reserve created through Profit and LossAppropriation Account for fulfilling any purpose
Bank is complied in this respect.
Retained Earnings 1 Amount of profit retained with the bankingcompany after meeting up all expenses, provisions andappropriations.
Bank is complied in this respect.
Tier - II capital instruments
General provision maintained against unclassified loans andoff-balance sheet exposures 1 As per BB directive, amount ofprovision maintained against unclassified loans and off-balancesheet exposures as of the reporting date has been considered.
Asset revaluation reserve : 50% of Assets Revaluation Reserve isconsidered as Tier 2 Capital. The revaluation reserve was formally
/Jaye 5 of 7;
conducted by the Professionally Qualified valuation firm and dulycertified by the external auditor of the Bank.
Revaluation reserves of securities 1 As per Bangladesh Bank'sinstruction, up to 50% of revaluation reserves of Governmentssecurities has been considered as Tier 2 Capital. This comprises ofrevaluation results of HFT and HTM securities.
Revaluation reserve for equity instruments 1 As per BangladeshBank's instruction, up to 10% of revaluation reserves of equityinstruments i,e quoted shares has been considered as Tier 2Capital.
Quantitative DisclosureTaka in million
Solo Consolidated(b) The amount of Tier I
Capital, with separatedisclosure of 1 (as of31.12.2013)
(c) Total amount of Tier -II Capital & Tier - IIICapital
~/ Paid up Capital\/ Non —repayable share
premium accountStatutory reserve 8,400.25 8,400.25General reserve - -
8,803.74 8,803.74
\\‘\ Retained earningsMinority Interest insubsidiaries
)/ Non-cumulative irredeemablepreference share
\2,690.62 1,877.76
19,894.61 19,081.75
3,540.13 3,408.90
(d) Other deduction fromCapital
(e) Total eligible capital 23,434.74 22,490.65C ) Capital Adequacy
Qualitative Disclosure
(a) A summary discussionof the Bank's approachto assessing theadequacy of its capitalto support current andfuture activities.
Capital Adequacy is the cushion required to be maintained for coveringthe Credit risk, Market risk and Operational risk so as to protect thedepositors and general creditors interest against such losses. In line withBRPD Circular No. 35 dated 29 December, 2010, the Bank has adoptedStandardized Approach for Credit Risk, Standardized (Rule Based)Approach for Market Risk and Basic Indicator Approach forOperational Risk for computing Capital Adequacy.
Quantitative Disclosure
71,. 8 .7 7;
Taka in millionSolo Consolidated
(b) Capital requirement for Credit Risk: | 16,200.33 | 15,840.83(c) Capital requirement for Market Risk: | 1,985.71 | 2,320.85(d) Capital requirement for Operational Risk: | 1,777.64 | 1,787.54(e) Total and Tier 1 Capital Ratio 1
> For the Bank alone Total I 11.74% andTier I I 9.97% -
> For the consolidated group - Total I 11.28% andTier I I 9.57%
D ) Credit Risk
Qualitative Disclosure
(a) The generalqualitativedisclosurerequirementwith respect tocredit risk,including:
* Definitions of past dueand impaired (foraccounting purposes)
Bank classifies loans and advances (loans and bill discount in the nature of anadvance ) into performing and non-performing loans (NPL) in accordance withthe Bangladesh Bank guidelines in this respect.
An NPA is defined as a loan or an advance where interest and / or installmentof principal remain overdue for more than 90 days inrespect of a Continuouscredit, Demand loan or a Term Loan etc.
Classified loan is categorized under following 03 (three) categories:> Sub- Standard> Doubtful> Bad & Loss
Any continuous loan will be classified as 1
> Sub-standard‘ if it is past due/over due for 6 months or beyond but lessthan 9 months.> "Doubtful' if it is past due/over due for 9 months or beyond but less than 12months.> ‘Bad/Loss‘ if it is past due/over due for 12 months or beyond.
Any demand Loan will be classified as :
> Sub-standard’ if it remains past due/over due for 6 months or beyond but notover 9 months from the date of claim by the bank or from the date of creationof forced loan.> Doubtful‘ if it remains past due/over due for 9 months or beyond but not over12 months from the date of claim by the bank or from the date of creation offorced loan.> Bad/Loss’ if it remains past due/over due for 12 months or beyond from thedate of claim by the bank or from the date of creation of forced loan.
In case of any installment(s) or part of installment(s) of a Fixed Term Loan isnot repaid within the due date, the amount of unpaid installment(s) will betermed as ‘defaulted installment‘.
page 70f’;
i. In case of Fixed Term Loans, which are repayable within maximum fiveyears of time:> If the amount ofdefaulted installment’ is equal to or more than the amount ofinstallment(s) due within 6 (six) months, the entire loan will be classified as"Sub-standard".> If the amount ofdefaulted installment’ is equal to or more than the amount ofinstallment(s) due within 12 (twelve) months, the entire loan will be classifiedas "Doubtful".> If the amount ofdefaulted installment’ is equal to or more than the amount ofinstallment(s) due within 18 (eighteen) months, the entire loan will beclassified as "Bad/Loss".ii. In case of Fixed Term Loans, which are repayable in more than five years oftime:> If the amount of defaulted installment‘ is equal to or more than the amount ofinstallment(s) due within 12 (twelve) months, the entire loan will be classifiedas "Sub-standard".> If the amount of defaulted installment‘ is equal to or more than the amount ofinstallment(s) due within 18 (eighteen) months, the entire loan will beclassified as "Doubtful".> If the amount of defaulted Installment‘ is equal to or more than the amountof installment(s) due within 24 (twenty four) months, the entire loan will beclassified as "Bad/Loss".
ShortTennAgri.Credit&Microcredit
Particulars
Consumer financing
OtherthanHF,LP
HF LP
SMEF
LoansBHs/MBs/SDsagainstshares
etc.
Allothercredit
Standard 2.5%UC
5% 2% 2% 0.25% 2% 1%
SMA 2.5% 5% 2% 2% 0.25% 1% 1%SS 5% 20% 20% 20% 20% 20% 20%
Classified DF 5% 50% 50% 50% 50% 50% 50%B/L 100% 100% 100% 100% 100% 100% 100%
Discussion ofthe Bank’scredit riskmanagementpolicy
The Board approaves the credit policy keeping in view relevant BangladeshBank guide lines to ensure best practice in credit risk management andmaintain quality of assets. Authorities are properly delegated in ensuring checkand balance in credit operation at every stage 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 ensuring proper riskmanagement of Loans and Credit Monitoring and Recovery Division formonitoring and recovery of irregular loans. Adequate provision is maintainedagainst classified loans as per Bangladesh Bank Guidelines. Status of loans areregularly reported to the Board/Board Audit Committee. Besides, Credit riskmanagement process involves focused on monitoring of Top- 30 Loans, Top-20 Defaulters, Sectoral exposures viz-a-viz among others limit.
Quantitative Disclosure
eaaxe
Amounts in Taka
(b) Total gross credit risk exposures brokendown by major types of credit exposure
LoansCash creditsOverdraftsLoan against merchandisePacking creditsLoan against trust receiptsPubali prochestaNon-resident Credit SchemePubali SubamaPubali Karmo UddogPubali SujonPubali UtsobPayment against documentsConsumers loan schemeLease financeBill purchased and discountedOthers
Total
44,544,373,13733,007,740,05739,816,216,893
6,628,769558,779,755
11,268,070,158384,165,646
1,151,4024,912,662,893
108,691,24845,514,94114,185,491
915,823,3486,705,454,0103,759,371,778
803,386,4853,122,314,656
149,974,530,667(c) Geographical distribution of exposures,
broken down in significant areas bymajor types of credit exposure
UrbanDhakaChittagongSylhetBarisalKhulnaRaj shahiRangpur
RuralDhakaChittagongSylhetBarisalKhulnaRaj shahiRangpur
Outside BangladeshForeign bills/drafts purchase
91,779,744,94329,043,994,996
7,055,171,0671,695,036,0803,536,859,3142,977,923,6362,992,214,500139,080,944,536
4,006,207,3701,922,929,7002,258,831,283
400,220,015830,984,905
1,090,226,121240,208,585
10,749,607,979
143,978,152
Total 149,974,530,667
71,. 9 .7 75
(d) Industry or counterparty type distributionof exposures, broken down by majortypes of credit exposure
AgricultureJuteTextileReady-made garmentsHospitals and other health serviceSteel and EngineeringShip scrapingEdible oilCementFood and allied productsPaper and packingConstructionEnergy and powerTransport and communicationPharmaceuticalsLeatherTrade & CommerceConsumer FinanceOthers
2,540,180,425
239,835,97312,738,609,09710,787,284,5145,324,159,7703,780,892,6792,910,109,3503,226,552,2261,488,173,1534,069,761,891
342,433,8509,630,269,456
417,665,7162,968,879,886
1,462,666,16466,801,856
38,197,183,3027 s 1
40 919 965 647149,974,530,667
8 863105 712
(e) Residual contractual maturity break
down of the whole portfolio, brokendown by major types of credit exposure.
(1) By major industry or counterparty type:
Amount of impaired loans and ifavailable, past due loans,Specific and general provisionsCharges for specific allowances andcharge-offs during the period
Loans and advances
Repayable on demandBelow 3 monthsOver 3 months but below 1 yearOver 1 year but below 5 yearsOver 5 years
Bills purchased and discountedRepayable on demandBelow 3 monthsOver 3 months but below 1 year
1
l2,526,453,000l6,596,909,07270,206,557,89442,038,939,025
7,802,285,191
49,171,144,182
50,312,777496,522,650256,551,058803,386,485
Total 1 49,974,530,667
9,377,593,2765,539,660,643
1,205,435
(g) Gross Non Performing Assets (NPAs) 1
Non Performing Assets(NPAs) toOutstanding Loans & advances
Movement of Non PerformingAssets(NPAs) :Opening BalanceAdditionsReductionsClosing Balance
8,136,104,8211,241,488,455
9,377,593,276
/6,, 10 8/1;
Movement ofProvision forAssets(NPAs)
Write-off
Write-back of
Opening BalanceProvision made during the year
Recoveries of amountspreviously write —offProvision transferred in
Other provisionClosing Balance
SpecificNon Performing
4,204,501,888806,299,536
(1,722,422,465)82,220,297
€XC€SS pI'OV1SlO1'1 —
714,860,3024,085,459,558
E) Equities: Disclosures for Banking Book Positions
Qualitative Disclosure(a) The general qualitative
disclosure requirement withrespect to the equity risk,including:
*differentiation between holdings onwhich capital gains are expected andthose taken under other objectivesincluding for relationship and strategicreasons; and
*discussion of important policiescovering the valuation and accountingof equity holdings in the bankingbook. This includes the accountingtechniques and valuationmethodologies used, including keyassumptions and practices affectingvaluation as well as significantchanges in these practices.
shares are valued at cost.
Investment in equity mainly for capital gain purpose but Bank hassome investment for relationship and strategic reasons.
Quoted shares are valued at cost. Necessary provision ismaintained if market price fall below the cost price. Unquoted
Quantitative Disclosure
Value disclosed in the balance sheet of investment, aswell as the fair value of those investments; for quotedsecurities, a comparison to publicly quoted share valueswhere the share price is materially different from fairvalue.
(b)Cost price of quoted share BDT7,112,370,405 & Market value ofquoted share BDT 8,529,153,504
( C ) The cumulative realized gains(losses) arising fromshares and liquidations in the reporting period. BDT 921,452,295
(<1)* Total unrealized gains (losses)*Any amounts of the above included in Tier 2 capital
BDT 1,416,783,099BDT 141,678,310
(e) Capital requirements broken down by appropriate equity
/3,, 71./1;
grouping, consistent with the bank's methodology, as well as theaggregate amounts and the type of equity investments subject toany supervisory provisions regarding regulatory capital Nilrequirements
F) Interest rate risk in the banking book (IRRBB)
Qualitative DisclosureThe general qualitative disclosurerequirement including the nature ofIRRBB and key assumptions,including assumptions regarding loanprepayments and behavior of non-maturity deposits, and frequency ofIRRBB measurement.
Interest rate risk is the potential that the value of the OnBalance Sheet and the Off Balance Sheet position of theBank would be negatively effected with the change in theInterest rate. The vulnerability of an institution towardsthe advance movement of the interest rate can be gaugedby using Duration GAP under Stress Testing Analysis.Pubali Bank Limited has also been exercising the StreesTesting using the Duration GAP for measuring theInterest Rate Risk on its On Balance Sheet exposure forestimating the impact of the net change in the marketvalue of equity on the Capital Adequacy Ratio (CAR) dueto change in interest rates only on its On Balance Sheetposition (as the Bank holds no interest bearing OffBalance Sheet positions and or Derivatives). Under theassumption of three different interest rate changes i.e. 1%,2% and 3%.
Quantitative Disclosure
The increase (decline) in earnings oreconomic value (or relevant measureused by management ) for upwardand downward rate shocks accordingto management method formeasuring IRRBB, broken down bycurrency (as relevant).
Market Value of Assets (Fig. in million) 247,975.10Market Value of Liability (Fig. in million) 225,625.70Duration GAP in years (times) 0.90
G) Market RiskQualitative Disclosure
(a) Views of BOD on trading /investment activities
The Board approves all policies related to market risk, setslimits and reviews compliance on a regular basis. Theobjective is to provide cost effective funding last year tofinance asset growth and trade related transaction.
(b) Methods used to measure Marketrisk
Standardized approach has been used to measure the marketrisk. The total capital requirement in respect of market risk isthe aggregate capital requirement calculated for each of therisk sub-categories. For each risk category minimum capitalrequirement is measured in terms of two separately calculatedcapital charges for ‘specific risk‘ and ‘general market risk‘.
(c) Market risk Management system The Treasury Division manage market risk covering liquidity,
/Jaye 72 of 7;
Interest rate and foreign exchange risks with oversight fromAsset-Liability management Committee (ALCO) comprisingsenior executives of the Bank. ALCO is chaired by theManaging Director. Alco meets at least once in a month.
(d) Policies and process formitigating market risk
There are approved limits for Market risk related instrumentsboth on-balance sheet and off-balance sheet items. The limitsare monitored and enforced on a regular basis to protectagainst market risks. The exchange rate committee of theBank meets on a daily basis to review the prevailing marketcondition, exchange rate, forex position and transactions tomitigate foreign exchange risks.
Quantitative DisclosureTaka in million
Solo Consolidated
( b ) The capital requirements for 1Interest rate riskEquity position riskForeign exchange riskCorrnnodity risk
104.60 104.601,705.80 2,041.00
175.30 175.30
H) Operational RiskQualitative Disclosure
(9)> Views of BOD on system to reduce
Operational Risk
> Performance gap of executives and staffs
> Potential extemal events
> Policies and processes for mitigatingoperational risk
The policy for operational risks including internalcontrol & compliance risk is approved by the boardtaking into account relevant guidelines ofBangladesh bank. Audit committee of the Boardoversees the activities of Intemal Control &Compliance Division (ICCD) to protect against alloperational risk.
Pubali Bank Limited has a policy to providecompetitive package and best workingenvironment to attract and retain the most talentedpeople available in the industry. Pubali Bankstrong brand image plays an important role inemployee motivation. As a result, there is nosignificant performance gap.
No potential extemal events is expected to exposethe Bank to significant operational risk.
The policy for operational risks including internalcontrol & compliance risk is approved by theBoard taking into account relevant guidelines ofBangladesh bank. Policy guidelines on Risk BasedInternal Audit system is in operation as per RBAbranches are rated according to their risk status andbranches scoring more on risk status are subjectedto more frequent audit by Internal Control &Compliance Division (ICCD). It is the policy of
Aafiafi
the bank to put all the branches of the bank underany form of audit at least once in a year. ICCDdirectly report to Audit Committee of the Board.
> Approach for calculating capital charge for Basic Indicator Approach is used for calculatingoperational risk capital charge for operational risk as of the
reporting date.
Quantitative DisclosureTaka in million
Solo Consolidated
‘ ( b ) The capital requirements for Operational Risk ‘ 1,777.64 ‘ 1,787.54 ‘