|
|
|
MIRA
INFORM REPORT
|
Report No. : |
490883 |
|
Report Date : |
08.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
BRAC BANK LIMITED |
|
|
|
|
Registered Office : |
Anik Tower, 220/B, Tejgaon Gulshan Link Road,
Tejgaon, Dhaka 1208 |
|
|
|
|
Country : |
Bangladesh |
|
|
|
|
Financials (as on) : |
30.09.2017 |
|
|
|
|
Date of Incorporation : |
27.05.1999 |
|
|
|
|
Com. Reg. No.: |
C-37782 |
|
|
|
|
Legal Form : |
Public Listed Co |
|
|
|
|
Line of Business : |
Commercial Banking |
|
|
|
|
No. of Employees : |
6886 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
Bangladesh |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
BANGLADESH - ECONOMIC OVERVIEW
Bangladesh's economy has grown roughly 6% per year since 1996 despite prolonged periods of political instability, poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms. Although more than half of GDP is generated through the services sector, almost half of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product.
Garment exports, the backbone of Bangladesh's industrial sector, accounted for more than 80% of total exports and surpassed $25 billion in 2016. The sector continues to grow, despite a series of high-profile factory accidents that have killed more than 1,000 workers and crippling strikes, including a nationwide transportation blockade orchestrated by the political opposition during the first several months of 2015. Steady export growth in the garment sector combined with remittances from overseas Bangladeshis - which totaled about $15 billion and 8% of GDP in 2015 - are key contributors to Bangladesh's sustained economic growth and rising foreign exchange reserves.
|
Source
: CIA |
EXECUTIVE SUMMARY
|
IDENTIFICATION DETAILS |
||
|
Correct company Name |
: |
Brac Bank
Limited |
|
Head Office |
: |
Anik Tower, 220/B, Tejgaon Gulshan Link Road,
Tejgaon, Dhaka 1208, Bangladesh |
|
Tel No |
: |
8801301-32,
8801311, 8801321, 55668056 |
|
Fax No |
: |
+880-2-986
0395 |
|
E-mail |
: |
enquiry@bracbank.com |
|
Website |
: |
www.bracbank.com |
|
Date/ Year of Incorporation |
: |
May 27, 1999 |
|
Incorporation
No. |
: |
C-37782 |
|
Legal Form (General) |
: |
Public Listed Co Public (but not
listed) Private Co State-owned Co Sole Proprietorships Partnership Not Registered others (please
specify) ________________ |
|
Legal form (Specific) |
: |
LTD CORP INC CO others (please
specify) ________________ |
|
Issuing Authority |
: |
Registrar of Joint Stock
Companies & Firms City Corporation Municipal
Administration Union Council |
FINANCIALS- SUMMARY
|
Year |
Turnover/ Sales |
Assets |
Income/ (Loss) |
|
30th
Sept’2016 |
BDT 5061604220 (July to Sep’2016) |
BDT 268324018065 |
BDT 4528980388 (July to Sep’2016) |
|
30th Sept’2017 |
BDT 4959779574 (July to Sep’2017) |
BDT 294866501754 |
BDT 7182006799 (July to Sep’2017) |
FULLCHECK REPORT DETAILS
|
Information Parted By |
||
|
Name |
: |
Mr. Rais
Uddin Ahmad |
|
Designation |
: |
Company
Secretary |
|
Contract No |
: |
N/A |
|
Locations Details |
||
|
Operating Address |
: |
Anik Tower, 220/B, Tejgaon Gulshan Link Road,
Tejgaon, Dhaka 1208, Bangladesh |
|
Tel No |
: |
8801301-32,
8801311, 8801321, 55668056 |
|
Fax No |
: |
+880-2-986
0395 |
|
E-mail |
: |
enquiry@bracbank.com |
|
Website |
: |
www.bracbank.com |
|
Location
: |
: Owned |
|
Rented |
Ö |
|
Leased |
|
Area |
150000 |
Sq. ft. |
|
Type
of Office |
: Commercial Office Bldg. |
|
|
Semi-commercial office Bldg. |
|
|
|
|
Retail shop |
|
|
Industrial Park |
|
|
|
|
Business Center |
|
|
Home Office |
|
|
|
|
Residential Bldg. |
Ö |
|
|
|
|
|
|
Branches: |
: |
97 |
|
Employee: |
|
|||||||
|
|
|
|||||||
|
No.
of Employees |
In Office |
: |
6886 |
In Factory |
: |
Nil |
||
|
In Branch: |
: |
Nil |
Total
|
: |
6886 |
|||
|
Details: |
|
|
|
|||||
OWNERSHIP/SHAREHOLDERS
|
Names
of Shareholders |
No.
of Share |
Country |
|
BRAC |
379918141 |
Bangladesh. |
|
Sir Fazle Hasan Abed |
8424 |
Bangladesh. |
|
Late A. S. Mahmud |
7046 |
Bangladesh. |
|
Mr. Faruq A. Choudhury |
7046 |
Bangladesh. |
|
Dr. Saleh Uddin Ahmed |
5790 |
Bangladesh. |
|
Mr. Shib Narayan Kairy |
6409 |
Bangladesh. |
|
Ms. Nihad Kabir |
31046 |
Bangladesh. |
|
Mr. Kaiser Kabir |
110000 |
Bangladesh. |
|
General Public |
475115792 |
|
DIRECTORS
|
Name |
: |
Sir Fazle Hasan
Abed, KCMG |
|
Designation |
: |
Chairman |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
|
||
|
Name |
: |
Mr. Selim
R.F. Hussain |
|
Designation |
: |
Managing
Director & CEO |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
|
||
|
Name |
: |
Mr. Shib
Narayan Kairy |
|
Designation |
: |
Nominated
Director |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
|
||
|
Name |
: |
Ms. Nihad Kabir |
|
Designation |
: |
Nominated
Director |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
|
||
|
Name |
: |
Dr. Ahsan H
Mansur |
|
Designation |
: |
Independent
Director |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Ms. Zahida
Ispahani |
|
Designation |
: |
Independent
Director |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Mr. Kazi
Mahmood Sattar |
|
Designation |
: |
Independent
Director |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Mr. Kaiser
Kabir |
|
Designation |
: |
Nominated
Director |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Asif Saleh |
|
Designation |
: |
Nominated
Director |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
MANAGEMENT
|
Name |
: |
Mr. Selim
R.F. Hussain |
|
Job Description |
: |
Managing
Director & CEO |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Chowdhury
Akhtar Asif |
|
Job Description |
: |
Deputy
Managing Director & CRO |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Mr. A. K.
Joaddar |
|
Job Description |
: |
Deputy
Managing Director & CFO |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Brigadier
General Tushar Kanti Chakma (Retd.) |
|
Job Description |
: |
Head of GSS
& Procurement |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Muniruzzaman
Molla |
|
Job Description |
: |
Head of Operations |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
BUSINESS OPERATIONS
|
Nature
of Activity : |
Commercial Banking |
Ö |
Trader |
|
Dealer |
|
Distributor |
|
|
|
|
|||||||
|
|
Exporter |
|
Importer |
|
Services |
|
Others |
|
|
Item
dealing in: |
||
|
|
||
|
Products |
: |
Commercial Banking |
|
Production
Capacity |
: |
N/A |
|
Last
Year Production |
: |
N/A |
Trading
Terms:
|
Purchasing
Terms: |
L/C |
N/A |
Cash |
|
Others |
|
|
|||
|
|
Credit : |
|
30 days |
|
60 days |
Ö |
90 days |
|
|
days |
|
Selling
Terms : |
L/C |
|
Cash |
Ö |
Others |
|
|
|||
|
|
Credit : |
N/A |
30 days |
|
60 days |
|
90 days |
|
|
days |
DETAILED DATA
|
Trade Reference & Related Parties |
: |
Overseas Clients |
: |
N/A |
|
||
|
Local Clients |
: |
N/A |
|
||||
|
Overseas Suppliers |
: |
N/A |
|
||||
|
Local Suppliers |
: |
N/A |
|
||||
|
Trade Markets |
: |
Exports |
: |
N/A |
|
||
|
Imports |
: |
N/A |
|
||||
|
Brand Name |
: |
N/A |
|||||
|
Certified |
: |
N/A |
|||||
|
Auditors |
: |
M/s Hoda Vasi Chowdhury & Co. Chartered Accountants, BTMC Bhaban (7th & 8th Floor) 7-9
Karwan Bazar C/A, Dhaka 1215 |
|||||
|
Operation Status |
: |
Active |
|||||
|
Member |
: |
N/A |
|||||
CAPITAL STRUCTURE
|
Authorized
Capital |
: |
BDT 12000 Million |
|
|
||
|
Paid-up
Capital |
: |
BDT 8552096940 |
|
|
||
|
No.
of Shares |
: |
855209694 |
|
|
||
|
Share
Value |
: |
BDT10.00Each |
|
|
||
|
Main
Assets |
: |
BDT 294866501754 Million |
FINANCIAL STATEMENT- DETAILED
|
Balance
Sheet : |
||
|
|
Currency |
BDT |
|
|
Denomination |
:1 |
|
|
Financial Year Ending |
:
30th September 2017 |
|
Financial Highlights |
30th
September’2017 |
31st December’2016 |
|
PROPERTY AND ASSETS |
|
|
|
Cash |
15414334183 |
15827759714 |
|
Cash in hand |
4829246978 |
5411271407 |
|
(Including foreign
currency) |
|
|
|
Balance with Bangladesh
Bank and its agent Bank(s) |
10585087205 |
10416488307 |
|
(Including foreign
currency) |
|
|
|
Balance with other Banks and Financial Institutions |
37163718683 |
31148142995 |
|
Inside Bangladesh |
34532596782 |
29024134806 |
|
Outside Bangladesh |
2631121901 |
2124008189 |
|
Money at call and short notice |
- |
- |
|
Investments |
27039163858 |
22937709817 |
|
Government |
19466602314 |
17045441443 |
|
Others |
7572561544 |
5892268374 |
|
Loans and advances |
188311282524 |
175841420944 |
|
Loans, cash credit,
overdrafts etc. |
113211430813 |
112728439450 |
|
Small And Medium
Enterprises |
73014995874 |
61185461566 |
|
Bills purchased &
discounted |
2084855837 |
1927519928 |
|
Fixed assets including
premises, furniture and fixture s |
4775821698 |
4233151608 |
|
Other assets |
20716598804 |
16891450883 |
|
Non-banking assets |
63430075 |
62230075 |
|
Goodwill |
1382151929 |
1382151929 |
|
Total Property and Assets |
294866501754 |
268324018065 |
|
LIABILITIES AND CAPITAL |
|
|
|
Liabilities |
|
|
|
Borrowings from other
banks, financial institutions & agents |
20087954550 |
19131258722 |
|
Borrowings from Central
Bank |
4358440386 |
6752978397 |
|
Convertible Subordinate
Bonds |
2850148000 |
2951079000 |
|
Money at Call and Short
notice |
6827850000 |
1303750000 |
|
Deposits and other accounts |
195183466422 |
181478777560 |
|
Current accounts &
other accounts |
75324598833 |
66657447378 |
|
Bills payable |
1149858487 |
1309401487 |
|
Savings bank deposits |
33914534967 |
31368696186 |
|
Fixed deposits |
83181334457 |
80737078388 |
|
Other deposits |
1613139678 |
1406154121 |
|
Other liabilities |
38530804772 |
32966273573 |
|
Total Liabilities |
267838664130 |
244584117252 |
|
Capital and Shareholders’ Equity |
|
|
|
Paid up share capital |
8552096940 |
7104369100 |
|
Share premium |
5260323007 |
5181774966 |
|
Statutory reserve |
3470350332 |
3470350332 |
|
Dividend Equalization
Fund |
355218455 |
355218455 |
|
Revaluation reserve on
Government securities |
22528470 |
111643709 |
|
Revaluation reserve on
assets |
516373535 |
516373535 |
|
Translation Reserve |
(10576460) |
(26148190) |
|
Surplus in profit and
loss account/Retained earnings |
7182006799 |
5543987484 |
|
Total shareholders' equity |
25348321078 |
22257569391 |
|
Non-controlling Interest |
1679516546 |
1482331422 |
|
Total Equity |
27027837624 |
23739900813 |
|
Total Liabilities and Shareholders' Equity |
294866501754 |
268324018065 |
|
OFF BALANCE SHEET ITEMS |
|
|
|
Contingent Liabilities |
|
|
|
Acceptances and
endorsements |
23447459729 |
20015403528 |
|
Irrevocable letter of
credits |
26820740350 |
20609044537 |
|
Letter of guarantees |
8024570789 |
6357188894 |
|
Bills for collection |
3442367506 |
1815432730 |
|
Tax liability |
- |
43700000 |
|
Other contingent
liabilities |
14496150581 |
8369848874 |
|
Total Contingent Liabilities |
76231288955 |
57210618563 |
|
Other Commitments |
|
|
|
Documentary credits and
short term trade related transactions |
- |
- |
|
Forward assets purchased
and forward deposits placed |
- |
- |
|
Undrawn note issuance
and revolving underwriting facilities |
- |
- |
|
Undrawn formal standby
facilities, credit lines and other commitments |
- |
- |
|
Total Other Commitments |
- |
- |
|
Total Off-Balance Sheet items including contingent liabilities |
76231288955 |
57210618563 |
|
Net assets value (NAV) per share (3) |
29.64 |
31.33 |
|
Income
Statement : |
||
|
|
Currency |
:BDT |
|
|
Denomination |
:1 |
|
|
Financial Year Ending |
:
30th September 2017 |
|
Financial Highlights |
July to Sep’2017 |
July to Sep’2016 |
|
Interest income |
4959779574 |
5061604220 |
|
Interest paid on deposits and borrowing
etc. |
2061981268 |
2014105645 |
|
Net
interest income |
2897798306 |
3047498575 |
|
Investment income |
1308002495 |
673684706 |
|
Commission, exchange and brokerage |
1666979020 |
1316857627 |
|
Other operating income |
70713835 |
56994752 |
|
Total
operating income |
5943493656 |
5095035660 |
|
Salaries and allowances |
1529857042 |
1062641947 |
|
Rent, taxes, insurance, electricity etc. |
371663790 |
317935621 |
|
Legal expenses |
17694837 |
18441994 |
|
Postage, stamps, telecommunication etc. |
77191022 |
68891448 |
|
Stationery, printing, advertisement etc. |
315210204 |
229334387 |
|
Chief Executive’s salary & fees |
4335000 |
3986500 |
|
Directors’ fees & expenses |
728706 |
650288 |
|
Auditors’ fee |
2837201 |
2150418 |
|
Depreciation and repairs on bank’s assets |
358269157 |
395297875 |
|
Other expenses |
966918571 |
836851063 |
|
Total
operating expenses |
3644705530 |
2936181541 |
|
Profit/(loss)
before provisions |
2298788126 |
2158854119 |
|
Provision
for: |
|
|
|
Loans and advances |
276947314 |
749791401 |
|
Less: Recovery of Written off Bad Debts |
(202447719) |
(245694822) |
|
Diminution in value of investments |
- |
- |
|
Off balance sheet items |
118500829 |
35500000 |
|
Others |
- |
- |
|
Total
provision |
193000424 |
539596579 |
|
Profit/(loss)
before taxes |
2105787702 |
1619257540 |
|
Provision for Tax: |
|
|
|
Current tax expense |
998889271 |
719165390 |
|
Deferred tax expense/ (income) |
(445071541) |
(9599908) |
|
Total
provision for Tax |
553817730 |
709565482 |
|
Net
profit/(loss) after taxes |
1551969972 |
909692058 |
|
Attributable to: |
|
|
|
Equity holders of BRAC bank ltd. |
1505142724 |
879268081 |
|
Non-controlling interest |
46827248 |
30423977 |
|
|
1551969972 |
909692058 |
|
Retained earnings brought forward from
previous period/year |
5676864075 |
3649712307 |
|
Add: net profit after tax (attributable to
equity holders of the bank) |
1505142724 |
879268081 |
|
Profit available for appropriation |
7182006799 |
4528980388 |
|
Appropriations: |
|
|
|
Statutory reserve |
- |
- |
|
General reserve |
|
|
|
Dividend |
- |
- |
|
|
|
|
|
Dividend equalization fund |
|
|
|
|
- |
- |
|
Retained
surplus |
7182006799 |
4528980388 |
|
Earnings
per share (EPS) [previous year/period’s
figure restated] (note:4) |
1.76 |
1.03 |
ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES
|
Sister Concerns |
: |
Brac Tel Ltd Brac Net Limited Brac Services Limited Brac Industries Limited Brac Agro Industries Ltd. Aarong (Retail Chain Shop) Brac Banshkhali Tea Co. Ltd. Brac Microfinance Foundation |
|
Subsidiary |
: |
Brac EPL Stock Brokerage Limited Brac EPL Investment Limited Brac Saajan Exchange Limited Brac Asset Management Company Ltd. B-Kash Limited |
|
Name of The Group |
: |
Brac |
BANKING
|
Bank Name |
: |
Exim Bank
Ltd. Basic Bank
Ltd Sonali Bank
Ltd. Prime Bank
Ltd. Pubali Bank
Ltd. Janata Bank
Ltd Agrani Bank
Ltd Rupali Bank
Ltd. National Bank
Ltd. Southeast
bank Ltd. The City Bank
Ltd ICB Islami
Bank Ltd. Islami Bank
(BD) Ltd. First
Security Bank Ltd Bangladesh
Krishi Bank. United
Commercial Bank Ltd |
ADVERSE DATA MONITORING
|
Dishonored
Checks |
: |
No Record
Found |
|
Debt |
: |
No Record
Found |
|
Litigation |
: |
Clear |
|
Performance
Defaults |
: |
No Record
Found |
|
Adverse
Local Media Coverage/ Adverse Filling History |
: |
No Record
Found |
SITE VISIT COMMENTARY
|
Our representative visited the subject
company Head Office which is situated Anik Tower, 220/B, Tejgaon Gulshan Link
Road, Tejgaon, Dhaka 1208, Bangladesh. |
GENERAL COMMENTS
|
Based on the financial statements, SC’s
financial performance appears to be Strong Commercial Banking. SC has been in
its line of business for about 16 years. Taking into account its
long-standing history, reputation in the market, as well as its financial
condition, we recommend that Credit can proceed with favorable terms in Large
amount. |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.14 |
|
|
1 |
INR 89.50 |
|
Euro |
1 |
INR 79.43 |
|
BDT |
1 |
INR 0.77 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.