MIRA
INFORM REPORT
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Report Date : |
19th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
BASIC BANK LIMITED |
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Registered Office : |
Sena Kalyan Bhaban (6th, 7th & 8th
Floor), 195,Motijheel commercial Area, Dhaka-1000, Bangladesh. |
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Country : |
Bangladesh |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
29.03.1988 |
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Com. Reg. No.: |
C-17402 |
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Legal Form : |
Public
Limited Company |
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Line of Business : |
Engaged
in general banking |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company Name
BASIC BANK LIMITED
Address
Sena Kalyan Bhaban
(6th, 7th & 8th Floor),
195,Motijheel commercial Area,
Dhaka-1000,
Bangladesh.
Telephones :
880-2-9567910,9564830,9568190
Fax :
880-2-9564829
E-mail : basicho@citechco.net, basic@dric-bdg.toolnet.org
SUMMARY
Established :
March,1988
Incorporation :
C-17402
Incorporated dated :
29th March,1988
Status :
Satisfactory
Managing Director & CEO :
Mr.Ekbal Hossain
Payment : Regular
Litigation :
Nil
Paid up capital :
Tk.810 million
Total Deposit :
Tk.22.32 billion
Employees : 553
Executives- 21
Senior Officer 295
Junior Officer 111
Assistant Officer 126
NO OF BRANCHES
27
OFFICE AREA
6,975 sq.ft (rented)
FACTORY AREA
N/A
WAREHUOSE AREA
2,800 sq.ft (rented)
DIRECTORS
Mr.M.Nurul Amin Chowdhury
-Chairman
Mr.A.H.Ekbal Hossain
-Managing Director
Dr.M.Tarique
Mr.S.R.Osmani
Mr.M.Musarraf Hossain Bhuiyan
Mr.M.Ehsanul Haque
Mr.M.Asduzzaman Chowdhury
HISTORY
The subject was established in Dhaka city and was in
incorporated as a banking company under the companies’ act of 1913. In 2001 the
bank has changed its earlier name “ Bank of Small Industries and Commerce
Bangladesh” and registered the new name with ROC, Dhaka. Initially the Bank
started its operation as joint venture enterprise of now defunct BCC Foundation
(of BCCI of Dubai), and government of Bangladesh. On 4th June 1992 the
government of Bangladesh took over the entire share of the Bank and now it is
running under the control of Ministry of Finance, Government of Bangladesh.
BUSINESS
The subject is engaged in general banking
RANGE OF SERVICES
Ø
Retail Banking
Ø
Deposit Takings
Ø
Foreign Exchange Transaction
Ø
Import & Export Financing
Ø
Remittance
Ø
Industrial Financing
Ø
Small Enterprise Financing
Ø
Consumer Financing
Ø
Personnel Financing
Ø
Bridge Financing
Ø
Lease Financing
Ø
Pension Scheme
OVERSEAS CORRESPONDENCE BANKS
Ø
HSBC., Honk Kong
Ø
Tokyo Mitsubishi Bank, Tokyo
Ø
Bank of America, New York
Ø
State Bank of India, Mumbai
Ø
Agricole Indosuez Bank, Paris
Ø
Barclays Bank, London
Authorized Capital :
Tk.2 billion
Paid up Capital :
Tk.810 million
Total Assets :
Tk.27.13 billion
Total Deposits : Tk.22.32
billion
Total Investments (Loans & Advances) :Tk.15.33
billion
Net Income : Tk.285.49 million
Earning Per Share : 35.25
BALANCE SHEET
as on 31st
December,2005
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Property & Assets |
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Inhand (Including foreign currency) |
161,443,147 |
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Balance with bangladesh Bank and Sonali Bank |
973,059,383 |
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(Including foreign currency) |
1,134,502,530 |
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Balance with other banks and financial
institutions |
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In Bangladesh |
3,805,065,207 |
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Outside Bangladesh |
321,206,108 |
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4,126,271,315 |
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Money at call on short notice |
1,570,000,000 |
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Investments |
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Government |
4,486,541,000 |
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Others |
54,009,760 |
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4,540,550,760 |
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Loans and advances |
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Loans, cash creditors, overdraft etc |
13,759,050,937 |
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Bills purchased and discounted |
1,580,299,910 |
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15,339,350,847 |
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Fixed Assets including premises, furniture & fixture |
135,781,666 |
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Other assets |
289,913,558 |
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Non-banking assets |
--------------- |
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Total Assets |
27,136,370,676 |
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Liabilities and Capital |
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Liabilities |
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Borrowings from other banks, financial
institutions & agents |
937,515,570 |
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Deposit and other accounts |
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Current deposit and other accounts etc |
1,890,614,702 |
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Bills payable |
179,750,613 |
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Savings bank deposits |
793,430,624 |
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Fixed Deposit (Term deposits) |
19,461,785,401 |
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22,325,581,340 |
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Other liabilities |
2,147,134,639 |
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Total liabilities |
25,410,231,549 |
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Capital/Shareholders equity |
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Paid-up capital |
810,000,000 |
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Statutory reserve |
681,132,608 |
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Other reserve |
40,000,000 |
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Surplus in Profit and Loss Account |
195,006,519 |
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Total shareholder’s equity |
1,726,139,127 |
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Total liabilities and shareholders
equity |
27,136,370,676 |
PROFIT & LOSS ACCOUNT
for
the year ended 31st December,2005
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Taka |
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Interest
income |
1,781,042,342 |
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Interest
on deposit and borrowings |
(983,984,740) |
Net interest income
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797,057,602 |
Linvestment Income
|
162,531,620 |
Commission, exchange and
brokerage
|
237,894,276 |
Other operating income
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46,739,759 |
Total
operating income (A)
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1,244,223,257 |
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Salaries and allowance
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226,462,431 |
Rent, taxes, insurance,
lighting etc
|
41,231,700 |
Legal expenses
|
1,306,209 |
Postage, stamp, telegram,
telephone
|
21,019,983 |
Auditors fee
|
150,000 |
Stationery, printing,
advertising etc
|
13,604,312 |
Managing director’s salaries
|
1,621,000 |
Directors’ fee
|
324,500 |
Depreciation and repairs of
fixed assets
|
33,371,997 |
Other expenses
|
32,392,668 |
Total
operating expenditure (B)
|
371,484,800 |
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Profit
before provision (C)=(A-B)
|
872,738,457 |
Provision for loan &
Advances
|
242,300,000 |
Provision for diminution in
value if investments
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Interest Subsidy Adjustment
|
2,000,000 |
Total
provision (D)
|
244,300,000 |
Profit
before tax (C-D)
|
628,438,457 |
Provision for income tax
|
342,943,664 |
Profit
after tax for the year
|
285,494,793 |
Appropriation
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Statutory reserve
|
125,687,692 |
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Retained earning for the year
carried forward
|
159,807,101 |
Earning per Share (EPS)
|
35.25 |
MEMBER
Ø
Dhaka Chamber of Commerce & Industries, Dhaka.
Ø
Bangladesh Association of Bankers, Dhaka
LEGAL FORM
The subject is a public limited company incorporated with
the Registrar of Joint Stock Companies, Dhaka
COMMENTS
The subject is a public limited company engaged in General
Banking and other related services. The Bank has 27 branches all over the
country and they are quite popular among their clients. They are contemplating
to increase more branches and by the yearend there will be more 6 branches in
various commercially important places.
Mr. A. H. Ekbal Hossain, the managing director of the Bank
is an experienced banker and knows his job well. The other executives are also
experienced bankers.
The subject is good for normal business engagements at usual trade
terms and conditions.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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