MIRA INFORM REPORT

 

 

Report No. :

490893

Report Date :

15.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

MERCANTILE BANK LTD.

 

 

Registered Office :

61, Dilkusha Commercial Area, Dhaka-1000

 

 

Country :

Bangladesh

 

 

Financials (as on) :

30.09.2017

 

 

Date of Incorporation :

20.05.1999

 

 

Com. Reg. No.:

C-37775

 

 

Legal Form :

Public Listed Company  

 

 

Line of Business :

Banking Service.

 

 

No. of Employees :

1814

 

 

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 :

Good

 

 

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

:

Mercantile Bank Ltd.

Head Office

:

61, Dilkusha Commercial Area, Dhaka-1000, Bangladesh.

Tel No

:

88-02-9559333, 9553892

Fax No

:

88-02-9561213

E-mail

:

mbl@bol-online.com, it@mblbd.com

Website

:

www.mblbd.com

Date/ Year of Incorporation

:

20.05.1999

Incorporation No.

:

C-37775

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)

 

 

FINANCIALS- SUMMARY

      Year

Turnover/ Sales

 Assets

     Income

31st Dec’2016

BDT 7182485896

BDT 204127473699

BDT 1294737425

30th Sep’2017

BDT 8430445197

BDT 249715357680

BDT 2258511578

 

 

FULLCHECK REPORT DETAILS

 

                                                             Information Parted By

Name

:

Mr. Saiful Alam, FCS

Designation

:

Company Secretary.

Contract No

:

N/A

 

                                                               Locations Details

Operating Address

:

61, Dilkusha Commercial Area, Dhaka-1000, Bangladesh.

Tel No

:

88-02-9559333, 9553892

Fax No

:

88-02-9561213

E-mail

:

mbl@bol-online.com

Website

:

www.mblbd.com

 

Location :

: Owned

Ö

 

Rented

 

 

Leased

 

Area

40000

Sq. ft.

 

Type of Office :

  :       Commercial Office Bldg.

Ö

 

Semi-commercial office Bldg.

 

     

 

Retail shop

 

 

Industrial Park

 

     

 

Business Center

 

 

Home Office

 

     

 

Residential Bldg.

 

 

 

 

 

 

Branches:

 

 

Total

:

91 Nos.

 

Branch:

 

 

 

 

 

Address

:

N/A

Tel

:

N/A

Fax

:

N/A

 

Employee:

 

 

 

No. of Employees 

 

In Office

:

1814

In Factory

:

N/A

In Branch:

:

N/A

Total

:

1814

Details:

 

                    

 

 

 

OWNERSHIP/SHAREHOLDERS

 

Names of Shareholders

No. of Share

Country

Mr. Shahidul Ahsan

18475226

Bangladesh.

Mr. Md. Anwarul Haque

16661652

Bangladesh.

Mr. A.K.M. Shaheed Reza

39048992

Bangladesh.

Mr. Mohd. Selim

21420649

Bangladesh.

Mr. Md. Shahabuddin Alam

14820172

Bangladesh.

Mr. Al-Haj Akram Hossain(Humayun)

16042750

Bangladesh.

Mr. A.S.M. Feroz Alam

23141233

Bangladesh.

Mr. M. Amanullah

22200000

Bangladesh.

Mr. Md. Abdul Hannan

16898828

Bangladesh.

Mr. Morshed Alam

18408471

Bangladesh.

Mr. Alhaj Mosharref Hossain

17692058

Bangladesh.

General Public

514346670

Bangladesh.

 

 

DIRECTORS

 

Name

:

Mr. Shahidul Ahsan

Designation

:

Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

 

 

Name

:

Mr. Md. Anwarul Haque

Designation

:

Vice Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

 

 

Name

:

Mr. A.K.M. Shaheed Reza

Designation

:

Vice Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

 

 

Name

:

Mr. Kazi Masihur Rahman

Designation

:

Managing Director & CEO

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

 

 

Name

:

Mr. Md. Shahabuddin Alam

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

6.

 

 

 

Name

:

Mr. Al-Haj Akram Hossain (Humayun)

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

7.

 

 

 

Name

:

Mr. A. S. M. Feroz Alam

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

8.

 

 

 

Name

:

Mr. Mohd. Selim

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

9.

 

 

 

Name

:

Mr. M. Amanullah

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

10.

 

 

 

Name

:

Mr. Md. Abdul Hannan

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

11.

 

 

 

Name

:

Mr. Morshed Alam

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

12.

 

 

 

Name

:

Mr. Alhaj Mosharref Hossain

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

MANAGEMENT

 

Name

:

Mr. Kazi Masihur Rahman

Job Description

:

Managing Director & CEO

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

Name

:

Mr. Mati Ul Hasan

 

Job Description

:

Deputy Managing Director & CRO

 

Nationality

:

Bangladeshi.

 

Email address

:

N/A

 

Other details

:

N/A

 

 

Name

:

Mr. G.W.M. Mortaza

Job Description

:

Deputy Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Md. Quamrul Islam Chowdhury

Job Description

:

Chief Business Officer (CBO)

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Dr. Md. Nurul Islam

Job Description

:

Chief Financial Officer (CFO)

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Mostaque Uddin Ahmed

Job Description

:

Vice President

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Mrinal Paul

Job Description

:

Senior Vice President

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Saiful Alam, FCS

Job Description

:

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

:

Banking Service.

Production Capacity

:

N/A

Last Year Production

:

N/A

 

 

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

:

A Qasem & Co.

Chartered Accountants

 

Aziz Halim Khair Chowdhury

Chartered Accountants

Operation Status

:

Active

 

 

CAPITAL STRUCTURE

 

Authorized Capital

:

BDT 1200 Million

 

Paid-up Capital

:

BDT 7391567010

 

No. of Shares

:

739156701

 

Share Value

:

BDT10.00Each

 

Main Assets

:

BDT 249715357680 Million

 

 

FINANCIAL STATEMENT- DETAILED

 

Balance Sheet :

 

  Currency

BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 30th Sep’2017

     Financial Highlights

30th Sep’2017

      31st Dec’2016

 

 

 

Property and Assets

 

 

Cash Hand

14630214902

12499971654

Cash In Hand(Including foreign currencies)

1927607255

1722631842

Balance with Bangladesh Bank & its agent Bank(s) (Including foreign currencies)

12702607647

10777339812

Balance with other banks and financial institutions

2334078009

3536863426

In Bangladesh

2087395808

3190283274

Outside Bangladesh

246682201

346580152

Money at call on short notice

-

-

Investments

35527453293

32920687995

Government

26655413215

24271657529

Others

887204078

8649120466

Loans and Advances

191400116988

150912521562

Loans, Cash Credit, Overdraft etc.

171003227897

137869676919

Bills purchased and discounted

20396889091

13042844643

Fixed assets including premises, furniture and fixtures

3097694599

3175029609

Other assets

2725799889

1082399453

Non-banking assets

-

-

Total Property and Assets

249715357680

204127473699

Liabilities and capital

 

 

Liabilities

 

 

Borrowings from other banks, financial institutions and agents

28370306350

8804043480

Deposits and others Accounts

181543141228

156085775549

Currents Accounts and others Accounts

46516892463

35006160175

Bills payable

2313622678

2445955797

Savings Bank Deposits

19339541787

16601527469

Fixed Deposits

51247013449

36776569142

Deposit Under Schemes

62126070851

65255562966

Subordinated Bond

2400000000

3000000000

Others Liabilities

20325709061

19428048424

Total Liabilities

232639156639

187317867452

Capital/Shareholder’s Equity

 

 

Paid up capital

7761145307

7391567010

Statutory reserve

6112955355

5449253039

General reserve

240000000

-

Other reserve

1546543049

2430109418

Surplus in profit & loss Account

1415557267

1538676780

Total shareholders’ Equity

17076201041

16809606247

Total Liabilities & Shareholders’ Equity

249715357680

204127473699

Contingent Liabilities

 

 

Acceptances and Endorsements

33275618954

26754596178

Letters of Guarantee

11347312778

8300212805

Irrevocable Letters of Credit

                        46580265278

33790013239

Bills for Collection

7567468948

10116331039

Other contingent liabilities(BLW)

2374723148

2736632233

Total

101145389107

81697785494

Other comments

 

 

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

-

-

Total Off-Balance Sheet items including contingent liabilities

101145389107

81697785494

Net Asset Value per Share(NAVPS)

22.00

22.74

 

 

Income Statement :

 

                                                                                               Currency

:

BDT

                                                                                     Denomination

:

1

                                                                         Financial Year Ending

:

30th Sep’2017

 

     Financial Highlights

30th Sep’2017

      31st Dec’2016

Interest income

11833640529

   10167685709

Less: Interest paid on deposits, borrowing etc.

9405055779

     8059679344

Net Interest income

2428584751

     2108006364

Investment income

2419876882

     2262171862

Commission, exchange and brokerage

1832183147

     1301737297

Other operating income

1749800417

     1510570372

 

6001860446

     5074479532

Total operating income

8430445197

     7182485896

Salaries and allowances

1860728748

     1782145736

Chief Executive’s salary and fees

12748710

          8530645

Directors’ fees

3498489

          3560400

Rent, taxes, insurances, electricity etc.

509014865

       463520624

Legal expenses

12426580

           6102321

Postage, stamps, telecommunication etc.

  48431345

      47227318

Stationery, Printings, Advertisements etc.

151444178

     146301703

Auditors’ fees

      195500

          115000

Depreciation and repair of bank’s assets

292207904

     283835450

Others expenses

1028355950

   1605942115

Total operating expenses

3919052269

   4347281313

Profit/(Loss) before provision

4511392928

   2835204584

Provision for loans and advances including off Balance sheet items

1192881350

     140467158

Others provision

-

             -

Total provision

1192881350

     140467158

Total profit/(Loss) before taxes

3318511578

   2694737425

Provision for Current Tax

1060000000

   1395000000

Provision for Deferred Tax

-

        5000000

 

1060000000

   1400000000

Net profit after taxation

2258511578

   1294737425

Retained surplus brought forward from previous year

60748004

        8790121

Profit available for appropriation

2319259582

   1303527546

Appropriation

 

 

Statutory reserve

663702316

    538947485

General reserve

240000000

            -

Retained Surplus

1415557267

    764580061

 

2319259582

   1303527546

Earnings per share(EPS)

2.91

        1.67

 

 

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

 

Sister Concerns

:

N/A

Subsidiary

:

N/A

Name of  The Group

:

N/A

 

 

BANKING

 

Bank Name  

:

City Bank.

Bank Asia.

Dhaka Bank.

Sonali Bank Ltd.

Uttara Bank Ltd.

Agrani Bank Ltd.

Standard Chartered Bank.

 

 

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 at 61, Dilkusha Commercial Area, Dhaka-1000, Bangladesh. It is situated at commercial area which is a well decorated modern office Area.

 

 

GENERAL COMMENTS

 

The subject company is a well-known reputed Bank in Bangladesh.  Their services are popular to the local people. So day by day the subject companies increase their goodwill.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.13

UK Pound

1

INR 89.17

Euro

1

INR 79.39

BDT

1

INR 0.77 

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

VIV

 

 

Report Prepared by :

SYL

                                                


 

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.