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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

490896

Report Date :

23.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

SOUTHEAST BANK LTD.

 

 

Registered Office :

Eunoos Trade Centre (2nd- 4th, 6th & 16th Floor), 52-53, Dilkusha C/A, Dhaka-1000

 

 

Country :

Bangladesh

 

 

Financials (as on) :

30.09.2017

 

 

Date of Incorporation :

12.03.1995

 

 

Com. Reg. No.:

C-27985

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Commercial Banking Service.

 

 

No. of Employees :

2616

 

 

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

(30.09.2017)

Current Rating

(31.12.2017)

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

:

Southeast Bank Ltd.

Head Office

:

Eunoos Trade Centre (2nd- 4th, 6th & 16th Floor), 52-53, Dilkusha C/A,

Dhaka-1000, Bangladesh.

Tel No

:

88-02-9571115, 9576415, 9555466, 9578324

Fax No

:

88-02-9550093, 9550094, 9550086

E-mail

:

info@southeastbank.com.bd

Website

:

www.southeastbank.com.bd

Date/ Year of Incorporation

:

12.03.1995

Incorporation No.

:

C-27985

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

 

Taxpayer’s Identification No (TIN)

:

555495486932

Date of Registration

:

N/A

Issuing Authority

:

National Board of Revenue

 

 

 

Value Added Tax(VAT) No

:

19011025625

Date of Registration

:

N/A

Issuing Authority

:

National Board of Revenue

 

 

 

FINANCIALS- SUMMARY

      Year

Turnover/ Sales

 Assets

     Income

31st Dec,2016

BDT  9363031736

(1 Jan 2016 To 30 Sep, 2016)

BDT 291798010079

BDT 2280182202

(1 Jan 2016 To 30 Sep, 2016)

30th Sept,2017

BDT 9953032428

(1 Jan 2017 To 30 Sep, 2017)

BDT 315651014332

BDT 2366706963

(1 Jan 2017 To 30 Sep, 2017)

 

 

FULLCHECK REPORT DETAILS

 

                                                             Information Parted By

Name

:

Mr. Muhammad Shahjahan.

Designation

:

Company Secretary.

Contract No

:

Nil

 

                                                               Locations Details

Operating Address

:

Eunoos Trade Centre (2nd- 4th, 6th & 16th Floor), 52-53, Dilkusha C/A,

Dhaka-1000, Bangladesh

Tel No

:

88-02-9571115, 9576415, 9555466, 9578324

Fax No

:

88-02-9550093, 9550094, 9550086

E-mail

:

info@southeastbank.com.bd

Website

:

www.southeastbank.com.bd

 

Location :

: Owned

 

Rented

Ö

 

Leased

 

Area

55000

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

 

Branches:

 

 

 

 

 

No. of Branch

:

128

 

Employee:

 

 

 

No. of Employees 

 

In Office

:

2616

In Factory

:

N/A

In Branch:

:

N/A

Total

:

2616

Details:

 

                    

 

 

 

OWNERSHIP/SHAREHOLDERS

 

Names of Shareholders

No. of Share

County

Mr. Alamgir Kabir, FCA

19944672

Bangladesh.

Mr. M.A. Kashem

20307060

Bangladesh.

Mr. Azim Uddin Ahmed

25490735

Bangladesh.

Mrs. Duluma Ahmed

19082742

Bangladesh.

Mrs. Jusna Ara Kashem

18339525

Bangladesh.

Mr. Md. Akikur Rahman

18443731

Bangladesh.

Mrs. Rehana Rahman

18844145

Bangladesh.

Sirat Monira

120547

Bangladesh.

Financial Institutions

329,849,633

 

General Public

446,527,386

Bangladesh.

 

 

DIRECTORS

 

Name

:

Mr. Alamgir Kabir, FCA

Designation

:

Chairman

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

 

 

Name

:

Mr. M. Kamal Hossain

Designation

:

Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

 

 

Name

:

Mr. M. A. Kashem

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

 

 

Name

:

Mr. Azim Uddin Ahmed

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

 

 

Name

:

Mrs. Duluma Ahmed

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

6.

 

 

 

Name

:

Mrs. Jusna Ara Kashem

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

7.

 

 

 

Name

:

Mr. Md. Akikur Rahman

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

8.

 

 

 

Name

:

Mrs. Rehana Rahman

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

9.

 

 

 

Name

:

Mrs. Sirat Monira

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

10.

 

 

 

Name

:

Mr. A.H.M. Moazzem Hossain

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

11.

 

 

 

Name

:

Dr. Quazi Mesbahuddin Ahmed

Designation

:

Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

MANAGEMENT

 

Name

:

Mr. Shahid Hossain 

Job Description

:

Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

 

Name

:

Mr. Mohammed Gofran 

Job Description

:

Additional Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. S.M.Mainuddin Chowdhury 

Job Description

:

Additional Managing Director

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

Name

:

Mr. Muhammad Shahjahan.

Job Description

:

Company Secretary.

Nationality

:

Bangladeshi.

Email address

:

N/A

Other details

:

N/A

 

 

BUSINESS OPERATIONS

 

Nature of Activity       :

Commercial Bank

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

:

Rahman Rahman Huq

Chartered Accountants

Operation Status

:

Active

 

 

CAPITAL STRUCTURE

 

Authorized Capital

:

BDT 15000 Million

 

Paid-up Capital

:

BDT 9169501760

 

No. of Shares

:

916950176

 

Share Value

:

BDT 10.00 Each

 

Main Assets

:

BDT 315651014332

 

 

FINANCIAL STATEMENT- DETAILED

 

Balance Sheet :

 

  Currency

: BDT

 

       Denomination

: 1

 

Financial Year Ending

: 30th Sept, 2017

     Financial Highlights

30th Sep’2017

  31st Dec’2016

Property And Assets

 

 

Cash

 

 

In hand (including foreign

 currencies)

2959217141

2,432,620,307

Balance with Bangladesh Bank and its agent banks (including foreign currencies)

16523441766

15402827761

19482658907

17835448068

Balance with other banks and financial institutions

 

 

In Bangladesh

833276923

2860092475

Outside Bangladesh

1929974242

1185128939

 

2763251166

4045221414

Money at call and on short notice

1304100000

4271344100

Investments

 

 

Government

48644719283

54299803894

Others

12606866806

7431830566

 

61251586089

61731634460

Loans and advances/investments

 

 

Loans, cash credit, overdrafts

etc./investments

207918085660

182661818983

Bills purchased and discounted

9828173786

9203770254

 

217746259446

191865589237

Fixed assets including premises, furniture and fixtures

9349480950

8947162556

Other assets

3753677774

3101610244

Non - banking assets

-

-

Total assets

315651014332

291798010079

Liabilities And Capital

 

 

Liabilities

 

 

Borrowings from other banks, financial

institutions and agents

 

 

Subordinated bond

8000000000

8000000000

Other borrowings

9708448707

7371635082

 

17708448707

15371635082

Deposits and other accounts

 

 

Current/Al-wadeeah current accounts and

other accounts

33741396895

30285059627

Bills payable

3315415533

6548856941

Savings bank/Mudaraba savings bank deposits

 23016081858

19700582409

Fixed deposits/Mudaraba fixed deposits

188027983322

173438929873

Bearer certificates of deposit

-

-

Other deposits

-

-

 

248100877609

229973428850

Other liabilities

22922300615

19919384323

Total liabilities

288731626932

265264448255

Capital/shareholders’ equity

 

 

Paid up capital

9169501760

9169501760

Statutory reserve

9170000000

9170000000

Revaluation reserve

4604199400

4763888676

Other reserve

247650000

247650000

Foreign currency translation reserve

(21454375)

(24449246)

Retained earnings

3739365080

3196967474

Total shareholders’ equity

26909261865

26523558664

Non-controlling interest

10125535

10003160

Total liabilities and shareholders’ equity

315651014332

291798010079

Off-Balance Sheet Items

 

 

Contingent liabilities

 

 

Acceptances and endorsements

50151960982

43813553641

Letters of guarantee

16372731095

15154116600

Irrevocable letters of credit

43300156455

32881303677

Bills for collection

22069825606

17830304866

Other contingent liabilities

2125198000

1474684000

Total contingent liabilities 

134019872138

111153962784

Other commitments

 

 

Documentary credits and short term

trade-related transactions

-

-

Forward assets purchased and forward deposits placed

-

2756664000

Undrawn note issuance and revolving underwriting facilities

-

-

Undrawn formal standby facilities, credit lines and other commitments

-

-

Total other commitments

-

2756664000

Total off-balance sheet items including contingent liabilities

134019872138

113910626784

 

Income Statement :

 

  Currency

: BDT

 

       Denomination

: 1

 

         Financial Year Ending

: 30th Sept, 2017

     Financial Highlights

1 Jan 2017 To 30 Sep 2017

1 Jan2016 To 30 Sep 2016

Interest income/profit on

investments

12407339365

12959764893

Interest paid/profit shared on deposits and borrowings etc.

(9762041020)

(9603007780)

Net interest income/net profit on investments

2645298345

3356757113

Investment income

4191110272

3569335556

Commission, exchange and

 brokerage

2489289118

2037763604

Other operating income

627334694

399175463

 

7307734083

6006274623

Total operating income (A)

9953032428

9363031736

Salaries and allowances

1315394072

1191806556

Rent, taxes, insurance, electricity etc.

660038129

585168679

Legal expenses

1384154

510374

Postage, stamp, telecommunication

 etc.

143680566

132556152

Stationery, printing, advertisements

 etc.

109056845

85261892

Managing Director’s salary and fees

76896923

9450000

Directors’ fees and expenses

2361946

2008051

Auditors’ fees

1095000

-

Depreciation and repair of Bank’s assets

325865393

293431040

Other expenses

864268550

704385457

Total operating expenses (B)

3430831578

3004578201

Profit before provision (C=A-B)

6522200850

6358453535

Provision for loans and

advances/investments

 

 

General provision

814200000

100000000

Specific provision

955000000

1256498000

 

1769200000

1356498000

Provision for diminution in value of investments

(231853418)

158271334

Other provisions

200800000

143502000

Total provision (D)

1738146582

1658271334

Total profit before taxation (C-D)

4784054268

4700182202

Provision for taxation

 

 

Current

2407725305

2420000000

Deferred

9622000

-

 

2417347305

2420000000

Net profit after taxation

2366706963

2280182202

Net profit after tax attributable to

 

 

Equity holders of the Bank

2366584588

2280624169

Non- Controlling interest

122375

(441967)

Net profit after taxation

2366706963

2280182202

Appropriations

 

 

Statutory reserve

-

936134091

 

-

936134091

Retained surplus during the year

2366706963

1344048111

Earnings per share (par value Taka 10)

 

2.58

2.49

 

 

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

 

Name of  The Group

:

N/A

Name of Mother Company

:

Nil

Subsidiary

:

Southeast Bank Capital Services Limited

Southeast Financial Services (UK) Limited

Southeast Financial Services (Australia) Pty Limited

Southeast Exchange Company (South Africa) Pty Ltd.

Sister Concerns

:

N/A

 

 

BANKING

 

Bank Name  

:

AB Bank Ltd.

Janata Bank Ltd.

Pubali Bank Ltd.

Rupali Bank Ltd.

Sonali Bank Ltd.

Agrani Bank Ltd.

National Bank Ltd.

Bangladesh Krishi Bank.

Al Arafa Islami Bank Ltd.

The ICB Islami Bank Ltd.

Islami Bank Bangladesh Ltd.

United Commercial Bank Ltd.

The Commercial Bank of Ceylon Limited.

 

 

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 Eunoos Trade Centre (2nd- 4th, 6th & 16th Floor), 52-53, Dilkusha C/A, Dhaka-1000, Bangladesh.

 

 

GENERAL COMMENTS

 

Subject is Bangladesh’s leading Commercial bank engaged in Commercial banking services.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.05

UK Pound

1

INR 90.41

Euro

1

INR 79.83

BDT

1

INR 0.78 

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRA

 

 

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.