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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

490880

Report Date :

12.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

AB BANK LTD.

 

 

Registered Office :

BCIC Bhaban, 30-31, Dilkusha C/A, Dhaka-1000

 

 

Country :

Bangladesh

 

 

Financials (as on) :

30.09.2017

 

 

Date of Incorporation :

31.12.1981

 

 

Com. Reg. No.:

C-9692

 

 

Legal Form :

Public Listed Co

 

 

Line of Business :

Commercial Banking Service

 

 

No. of Employees :

2220

 

 

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 were on track to again surpass $25 billion in 2017. The sector continues to grow, despite the need for improvements in factory working conditions to avert further high-profile accidents that have killed more than 1,000 workers in recent years. Steady export growth in the garment sector combined with remittances from overseas Bangladeshis - which totaled about $13 billion and 6% of GDP in 2016 - are key contributors to Bangladesh's sustained economic growth and rising foreign exchange reserves.

The recent influx of hundreds of millions of additional refugees from Burma will place pressure on the Bangladeshi government’s budget and the country’s rice supplies, which declined in 2017 in part because of adverse weather.

 

Source : CIA

EXECUTIVE SUMMARY

 

                                                IDENTIFICATION DETAILS

Correct company Name

:

AB Bank Ltd.

Head Office

:

BCIC Bhaban, 30-31, Dilkusha C/A, Dhaka-1000, Bangladesh.

Tel No

:

88-02-9560312

Fax No

:

88-02-9564122-3, 9555098

E-mail

:

info@abbank.com.bd, info@abbl.com

Website

:

www.abbl.com

Date/ Year of Incorporation

:

31.12.1981

Incorporation No.

:

C-9692

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

 Cantonment Board                                              Chief Controller of  Import & Export (CCIE)

 

 

Other Registry & Certification Details

 

Organization Name

:

Dhaka Chamber of Commerce & Industry

Membership No

:

Nil

 

 

FINANCIALS- SUMMARY

      Year

Turnover/ Sales

 Assets

     Income

30th September’2016

BDT  8317495641

(Jan’16 Sep’16)

BDT  314835891011

BDT 896546198

(Jan’16 Sep’16)

30th September’2017

BDT  7662791825

(Jan’17 Sep’17)

BDT  316634444855

BDT 143053727

(Jan’17 Sep’17)

 

 

 

 

 

 

FULLCHECK REPORT DETAILS

 

                                                             Information Parted By

Name

:

Mr. Reazul Islam

Designation

:

Head of  IT & EBIZ

Contract No

:

N/A

 

                                                               Locations Details

Operating Address

:

BCIC Bhaban, 30-31, Dilkusha C/A, Dhaka-1000, Bangladesh.

Tel No

:

88-02-9560312

Fax No

:

88-02-9564122-3, 9555098

E-mail

:

info@abbank.com.bd, info@abbl.com

Website

:

www.abbl.com

 

Location :

: Owned

 

Rented

Ö

 

Leased

 

Area

30000

Sq. ft.

 

 

Type of Office

  :       Commercial Office Bldg.

Ö

 

Semi-commercial office Bldg.

 

     

Retail shop

 

 

Industrial Park

 

     

Business Center

 

 

Home Office

 

     

Residential Bldg.

 

 

 

 

 

 

Factory:

 

 

 

 

 

Address

:

N/A

Tel No

:

N/A

Fax No

:

N/A

 

 

 

Number of Branches : 94

 

Employee:

 

 

 

No. of Employees 

 

In Office

:

20

In Factory

:

N/A

In Branch

:

2200

Total

:

2220

Details:

 

                    

 

 

 

OWNERSHIP/SHAREHOLDERS

 

Names of Shareholders

No. of Share

Country

Mr. M. Wahidul Haque

145793

Bangladesh.

Mr. Salim Ahmed

15917596

Bangladesh.

Mr. Feroz Ahmed

13982398

Bangladesh.

Mr. M. A. Awal

4222

Bangladesh.

Mr. Faheemul Huq,

578201

Bangladesh.

Mr. Syed Afzal Hasan Uddin,

2997

Bangladesh.

Mr. Md. Mesbahul Hoque

2997

Bangladesh.

Mr. syed Gholam kibria

1000

Bangladesh.

Mr. Shamim Ahmed Chaudhury

1000

Bangladesh.

Local Institutions

20066711

Bangladesh.

Govt. Of Bangladesh

3862826

Bangladesh.

Foreign Institutions

10977958

Foreign Country’s

No-residential Bangladesh

210606005

Bangladesh.

General Public

397743910

Bangladesh.

 

 

DIRECTORS

 

Name

:

Mr. M. Wahidul Haque

Designation

:

Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Feroz Ahmed

Designation

:

Vice Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Moshiur Rahman Chowdhury

Designation

:

President & Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Md. Mesbahul Hoque

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Asish Baran Sarker

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Syed Golam Kibria

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Syed Golam Kibria

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Shishir Ranjan Bose, FCA

Designation

:

Independent Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Prof. Dr. M. Imtiaz Hossain

Designation

:

Independent Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

MANAGEMENT

 

Name

:

Mr. Moshiur Rahman Chowdhury

Job Description

:

President & Managing Director

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

 

 

Name

:

Mr. Sajjad Hussain

Job Description

:

Deputy Managing Director & Chief Risk Officer

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Shamshia I Mutasim

Job Description

:

Deputy Managing Director & Head of HR

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Reazul Islam

Job Description

:

Head of  IT & EBIZ

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Mahadev Sarker Sumon

Job Description

:

Chief Financial Officer & Company Secretary

Nationality

:

Bangladeshi

Email address

:

N/A

Other details

:

N/A

 

 

BUSINESS OPERATIONS

 

Nature of Activity       :

Banking Corporation   

Ö

Trader

 

Dealer

 

Distributor

 

 

 

 

Exporter

 

Importer

 

Services

 

Others

 

 

 

Item Dealings In:

 

Products

:

Commercial Banking Service

Production Capacity

:

N/A

Last Year Production

:

N/A

 

Trading Terms:

 

Purchasing Terms:

L/C

N/A

Cash

 

Others

 

 

 

Credit :

 

30 days

 

60 days

 

90 days

 

 

days

 

Selling Terms      :

L/C

N/A

Cash

 

Others

 

 

 

Credit :

 

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(Country)

:

N/A

 

Imports(Country)

:

N/A

 

Brand Name

:

N/A

Certified

:

N/A

Name of Auditors

:

N/A

Operation Status

:

Active

 

 

 

CAPITAL STRUCTURE

 

Authorized Capital

:

BDT 1500 Million

 

Paid-up Capital

:

BDT 6738936140

 

No. of Shares

:

673893614

 

Share Value

:

BDT 10.00 Each

 

Main Assets

:

BDT 316,634,444,855

 

 

FINANCIAL STATEMENT- DETAILED

 

Balance Sheet :

 

  Currency

:BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 30th Sep’2017

     Financial Highlights

30-09-2017

      31-12-2016

Property and Assets

 

 

Cash

17,857,962,920

19,707,650,776

In hand (including foreign currencies)

1,758,909,608

1,536,332,492

Balance with Bangladesh Bank and its agent

bank(s) (including foreign currencies)

16,099,053,313

18,171,318,283

Balance with other banks and financial

institutions

5,253,328,614

4,557,434,958

In Bangladesh

1,820,482,646

2,531,704,237

Outside Bangladesh

3 ,432,845,968

2,025,730,721

Money at call and on short notice

1,001,838,755

8,325,871,504

Investments

45,256,377,945

46,666,898,817

Government

40,813,808,885

41,903,780,261

Others

4 ,442,569,060

4 ,763,118,556

Loans, advances and lease/investments

229,223,318,899

218,769,451,248

Loans, cash credits, overdrafts,

etc./Investments

228,317,444,254

218,136,406,416

Bills purchased and discounted

905,874,645

633,044,832

Fixed assets including premises, furniture

 and fixtures

3,954,432,414

4,080,377,435

Other assets

14,087,185,307

12,728,206,273

Non-banking assets

-

-

Total Assets

316,634,444,855

314,835,891,011

Liabilities And Capital

 

 

 

 

 

Liabilities

 

 

 

 

 

Borrowings from other banks, financial

 institutions and agents

27,006,897,339

15,454,422,143

AB Bank Subordinated Bond

6,000,000,000

6,500,000,000

Deposits and other accounts

229,541,855,845

245,640,782,909

Current accounts and other accounts

23,392,068,267

22,298,120,917

Bills payable

3 ,059,913,337

4 ,865,582,322

Savings bank deposits

28,738,674,135

28,024,691,434

Fixed deposits

122,624,181,691

122,034,379,371

Other deposits

51,727,018,416

68,418,008,865

Other liabilities

31,163,677,957

24,126,225,778

Total Liabilities

293,712,431,141

291,721,430,830

Capital/Shareholders' Equity

 

 

Total Shareholders' Equity

22,922,013,713

2 3,114,460,183

Paid-up capital

6 ,738,936,140

6 ,738,936,140

Statutory reserve

6 ,536,373,914

6 ,495,637,440

Other reserve

2 ,694,369,538

3 ,070,222,838

Retained earnings

6 ,952,334,122

6 ,809,663,765

Total Liabilities and Shareholders' Equity

316,634,444,855

314,835,891,011

Off-Balance Sheet Items

 

 

Contingent liabilities

66,093,147,066

73,478,914,136

Acceptances and endorsements

26,959,209,741

29,034,996,366

Letters of guarantee

13,652,724,755

13,920,306,922

Irrevocable letters of credit

17,367,541,819

22,005,679,984

Bills for collection

8 ,067,833,770

8 ,517,930,863

Other contingent liabilities

45,836,980

-

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

66,093,147,066

73,478,914,136

 

 

Income Statement :

 

  Currency

:BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 30th Sep’2017

     Financial Highlights

Jan’17 Sep’17

   Jan’16 Sep’16

Operating Income

 

 

Interest income/profit on investments

12,628,119,970

15,027,367,680

Interest paid/profit on deposits and borrowings, etc.

(10,694,854,977)

(12,090,587,313)

Net interest income

1,933,264,994

2,936,780,367

Investment income

3,555,513,671

3,273,850,188

Commission, exchange and brokerage

2,085,550,445

2,012,472,904

Other operating income

88,462,715

94,392,183

 

5,729,526,832

5,380,715,274

Total operating income (a)

7,662,791,825

8,317,495,641

Operating Expenses

 

 

Salary and allowances

2,249,952,247

2,146,623,211

Rent, taxes, insurance, electricity, etc.

5 25,822,996

5 01,277,419

Legal expenses

4,972,284

17,241,848

Postage, stamps, telecommunication, etc.

99,542,114

1 02,841,098

Stationery, printing, advertisement, etc.

1 55,517,513

1 57,467,340

Chief executive's salary and fees

7,090,551

9,900,000

Directors' fees

6,387,130

5,687,200

Auditors' fees

1,652,788

3,322,306

Depreciation and repairs of Bank's assets

3 88,572,395

4 06,098,573

Other expenses

1,001,196,757

1,083,928,270

Total operating expenses (b)

4,440,706,775

4,434,387,265

Profit before provision (c = (a-b)

3,222,085,050

3,883,108,376

Provision against loans and advances

3 ,363,162,970

1 ,971,006,800

Provision for diminution in value of

investments

-

-

Other provisions

2,736,446

57,511,545

Total provision (d)

3,365,899,416

2,028,518,345

Profit before taxation (c-d)

(143,814,365)

1,854,590,031

Provision for taxation

(286,868,092)

9 58,043,833

Current tax

1,080,000,000

1,568,149,847

Deferred tax

(1,366,868,092)

(610,106,014)

Net profit after taxation

143,053,727

896,546,198

Appropriations

 

 

Statutory reserve

24,974,722

20,947,347

General reserve

-

-

Dividends, etc.

-

-

 

24,974,722

20,947,347

Retained surplus

118,079,005

875,598,851

Earnings Per Share (EPS)

0.21

1.33

 

 

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

 

Sister Concerns

:

Nil

Subsidiary

:

AB Securities Limited

AB Investment Limited

AB Exchange (UK) Limited

AB International Finance Ltd.

Cash link Bangladesh Limited

Arab Bangladesh Bank Foundation

Name of  The Group

:

Nil

 

 

BANKING

 

Bank Name  

:

Bank Asia Ltd

IFIC Bank Ltd

Trust Bank Ltd

Janata Bank Ltd

Janata Bank Ltd

Sonali Bank Ltd

BRAC Bank Ltd

Rupali Bank Ltd

Rupali Bank Ltd.

Agrani Bank Ltd

Premier Bank Ltd.

Standard Bank Ltd.

Bangladesh Krishi Bank

Standard Chartered Bank

Islami Bank Bangladesh 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

 

The subject company Head office is situated at “BCIC Bhaban, 30-31, Dilkusha C/A, Dhaka-1000, Bangladesh” which is situated at a Commercial Area.

 

 

GENERAL COMMENTS

 

The subject is commercial bank which engaged in Banking Services. It is one of the reputed Commercial bank in Bangladesh

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.37

UK Pound

1

INR 89.71

Euro

1

INR 78.89

BDT

1

INR 0.78

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.