Dhaka Bank Limited a private sector commercial bank. It was incorporated as a public limited company on 6 April 1995 under the companies act 1994. It started commercial banking operations on 5 July 1995 with an authorised capital of Tk 1000 million, divided into 10 million ordinary shares of Tk 100 each. The issued, subscribed, and paid up capital of the bank in 1995 was Tk 100 million, which was paid fully by the sponsors. In 2000, the paid up capital of the bank increased to Tk 275.88 million. In 1999, the bank's total equity (capital and reserves) was Tk 338.30 million the amount of its reserves (statutory and general reserves and dividend equalisation fund) was Tk 62.42 million. The reserves declined to Tk 44.22 million in 2000. Every year the Dhaka Bank, like other scheduled commercial banks in Bangladesh, provides a general provision @ 1% on unclassified loans. The provisions are treated as supplementary capital of the bank.

In addition to all sorts of traditional banking activities, Dhaka Bank provides on-line tele-banking services and a comprehensive range of financial services to national and multinational companies in the country. It also underwrites shares and debentures, works as issue manager, and participates in other operations in money market and capital market. As a member of the Dhaka and Chittagong stock exchanges, the bank participates in the day-to-day transactions of the stock exchanges.

The bank has established a large network of foreign correspondents covering important business centres in 107 countries around the world and now has 325 foreign correspondents in these countries. The bank introduced Reuter's screen since 1998, which has accelerated its foreign exchange dealings. Of its 12 branches, 10 are authorised to deal in foreign exchange. The aggregate quantum of import business handled by the bank in 1999 stood at Tk 9,075 million while the export business handled by the bank that year was worth Tk 3,299.30 million.

Management of the bank is vested in an 18-member board of directors that includes the chairman and a vice-chairman. The managing director is the chief executive of the bank. He is assisted by 3 executive vice presidents, 9 senior vice presidents, 7 vice presidents, 8 senior assistant vice presidents, 12 first assistant vice presidents, and 9 assistant vice presidents. Total number of regular employees working in the bank is 247. The bank had 14 branches in December 2000.

Total deposits with Dhaka Bank on 30 June 2000 accounted for Tk 7554.7 million. The bank introduced some innovative deposit schemes such as the marriage deposit scheme and gift cheque. It disbursed a total of Tk 5,414.9 million in loans and advances in 2000. The average growth rate of loans and advances disbursed during 1998-2000 was 18.71%. The bank extends credit facilities to the private sector for trade as well as to meet working capital needs and it offers some project loans to industries such as textile, ready made garments, shipping, ship-breaking, steel and engineering, and edible oil. The bank also extends credit facilities under lease financing and hire purchase schemes as well as through syndication with other banks. In December 2000, classified loans of the bank stood at Tk 93.2 (1.72% of total) and the bank had a deficit in statutory liquidity reserve.

Total investment of the bank stood at Tk 813.73 million on 31 December 2000. The investment portfolio was made up of treasury bills (Tk 720 million), debentures of Investment Corporation of Bangladesh (Tk 20 million), prize bonds (Tk 0.98 million), shares (Tk 55.03 million), debentures of corporate bodies (Tk 1.20 million) and other investments (Tk 16.52 million). Total assets of the bank enhanced to Tk 11,646.4 million in December 2000, when its off-balance sheet transaction amounted to Tk 4,798.2 million.

In 2000, the bank earned a net profit (after tax) of Tk 173.12 million. Its operating incomes were net interest income (Tk 201.38 million), interest on investment (Tk 60.47 million), commissions, exchange earnings and brokerages (Tk 246.51 million), and incomes from other sources (Tk 18.92 million). Operating expenses in the year was Tk 231.71 million. During 1999, the bank's earning per share, return on assets, and return on equity were Tk 34.30 and 0.99%, and 27.98% respectively. [S M Mahfuzur Rahman]