SWOT Analysis.

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and eternal factors that are favorable and unfavorable to
achieving that objective. The techni!ue is credited to Albert "umphrey, #ho led a
convention at Stanford $niversity in the %&'(s and %&)(s using data from
*ortune +(( companies.
A SWOT analysis must first start #ith defining a desired end state or objective. A
SWOT analysis may be incorporated into the strategic planning model. Strategic
,lanning, including SWOT and S-A. analysis, has been the subject of much
research.
Strengths/ attributes of the person or company that is helpful to achieving the
objective.
Weaknesses/ attributes of the person or company that is harmful to achieving
the objective.
Opportunities/ eternal conditions that is helpful to achieving the objective.
Threats/ eternal conditions #hich could do damage to the objective.
SWOT Analysis of HSBC.
Strengths.
0anagement of the bank has been empo#ered #ith appropriate finance and
business decision making authorities as per the guidelines of 1angladesh
1ank.
1usiness plan of the bank provides for the #orking platform embodying the
gro#th aspect, profitability, risk appetite, capital management etc.
1ank has also formed a 1asel 2 II implementation committee to oversee the
implementation of this ne# risk management avenue of the banking business.
"S1- 1ank being a responsible corporate citi3en and a dynamic financial
institution has created value in line #ith its mission to be the best performing
bank in the country.
1ank as an institution is #oven in to the socio4economic fabric involving
numerous sector of the society #hich together is identified as stakeholders of
a bank.
1ank follo#s a #ell defined strategy and plan to mobili3e resources such as
deposits and borro#ings besides the capital.
The bank maintains an optimum trade 2 off bet#een li!uidity and profitability.
Weaknesses.
While it5s a national bank engaged in different kinds of banking business, it
faces a stiff challenge to brand itself like other big names in our banking
sector.
It faces a gigantic problem of ecess li!uidity #hich arises due to improper
planning for investment.
It doesn5t have a consistent dividend policy #hich sometimes discourages its
investors.
Opportunities.
*reedom granted by 1angladesh 1ank to charge discriminatory interest rates
on various accounts.
While many multinational banks are running scared of 0iddle46ast region.
"o#ever7 current situation provides opportunities to a fast bank like A1 1ank.
8overnment5s commitment to and undertaking of necessary measures to
discourage loan default.
In addition to 0iddle46ast, there are several other emerging economies in
Asia #hich provides same opportunities for "S1-.
"S1- can offset its ecess li!uidity problems by investing in these
economies.
1y the grace of ne# technology, the plastic money 9both credit and debit
cards: is no# very popular.
Threats.
The gro#ing stiff competition in the banking sector has become a threat for its
survival.
Attempts to integrate ne# technological dimensions have to face tremendous
challenges of technological ill effects7 for eample latest email viruses.
Some sectors in 1angladesh economy haven5t yet sho#n encouraging signs
of gro#th.
The instability in our political scenario is al#ays a potential threat for any
business particularly banking sector.
-ompetition among banks has resulted in snatching a#ay of good customers.
SWOT Analysis of Standard Chartered Bank.
Strengths.
Through re4structuring and strengthening of training program, Standard
-hartered 1ank ;imited has developed a #ell4educated and eperienced
#orking force that can carry out the 1ank to#ards its goal.
Implementation of 1AS6; II policy on capital ade!uacy is going to have an
unprecedented impact in the operation of bank.
Top managers of the 1ank are visionary and innovative.
Standard -hartered 1ank has plans for sustainability in its approach to
diversify its line of banking business.
The bank has ade!uate physical facilities and #ell decorated offices and
branches for its employees to #ork for its clients.
Standard -hartered 1ank is dominating the major portion of the 6port4Import
1usiness in the country and earning a huge foreign echange.
Weaknesses.
1ank is facing ecess li!uidity and its no# hard to invest.
Some of the directors are not visionary.
The overhead ependiture of the 1ank is too high for #hich it becomes
difficult to achieve its target perfectly.
Internal influence of the directors and eecutives in Standard -hartered 1ank
is too high. This is creating problems in implementing strategies.
A huge number of employees are cash based among top4level officers.
Opportunities.
The supportive monetary conditions prevalent in *< (& #ill be continued in
*< %( to cushion domestic economic activities against likely shocks from the
ongoing global do#nturn and to restore investment momentum.
-ommitments in -orporate Social =esponsibilities ensures enhancements in
business conduct.
8ro#th prospects in the global investment banking.
*reedom granted by 1angladesh 1ank to charge discriminatory interest rates
on various accounts.
"igh epectations of business gro#th in the year >(%( means higher
profitability.
1angladesh 1ank5s role in ensuring dynamic banking business.
Threats.
Again the increased stiff competition among the banks in banking sector has
generated many problems for banks.
?olatility of financial markets.
Some strict government regulations.
Slo# gro#th in industriali3ation.
=ecession in economy as a result of regional geo4political instability.
Security risk of individual accounts.
SWOT Analysis of Dutch-Bangla Bank Liited.
Strengths.
@11; is a corporate citi3en. The stakeholders, as a #hole help, direct and
monitor the 1ank to perform its operations in an effective #ay to create and
maimi3e value for the economy.
0anagement is al#ays focused on taking appropriate measures to maimi3e
value for bank5s stakeholders and to increase its contribution to the economy
and society in a sustainable #ay.
=isk is managed to ensure !uality and value of assets and uninterrupted
operations. It usually involves managing credit risk, operational risks and
market risk.
@11; maintains ade!uate capital and capital ade!uacy ratio 2 cushion to
absorb the unforeseen shocks.
@11;5s dividend policy is designed in a #ay to ensure sustainable gro#th of
the 1ank #ith strong capital ade!uacy ratio #hich must maimi3e the value of
shareholders.
@11; etends technology driven services to its customers at affordable cost.
Its AT0 service has attracted many customers due to its vast number of
location.
Weaknesses.
;arge bonuses for @irectors have attracted un#anted attention from
commentators, and it has been speculated that the bank5s reluctance to take
financing from the 1angladesh government is because that #ould end its
autonomy #ith regard to bonuses.
Services provided at some offices located in other districts have generated
controversy7 especially S06 1anking.
Some of the directors are not visionary. Therefore7 @11; sometimes faces
lack of proper planning in some of its activities.
Opportunities.
*reedom granted by 1angladesh 1ank to charge discriminatory interest rates
on various accounts.
The bank5s strategy is to offer a full portfolio of services nation#ide, providing
a #ide range of cross4selling opportunities.
8overnment5s commitment to and undertaking of necessary measures to
discourage loan default.
1y the grace of ne# technology, the plastic money 9both credit and debit
cards: is no# very popular.
@11; can turn its #eakness in S06 1anking into one of its strength because
of ne# S06 banking friendly regulations by the government.
Threats.
0any private commercial banks are operating in the industry. So, the
competition is too high.
Other private banks are taking a#ay the eperienced bankers from @11;. It5s
a huge threat for @11;
=ecession in economy as a reaction to the ongoing recession around the
developed #orld.
Slo# pace of industriali3ation in some sectors.
$ndue political and o#ner group pressure in snatching loan.
Ongoing political unrest bet#een t#o major political parties.
SWOT Analysis of B!AC Bank.
Strengths.
1=A- 1ank5s epanded business during the year7 the bank epanded the
hori3on of its business operations7 establishing ne# branches, introducing
brokerage business, epanding its AT0 net#ork and broadening its retail line
of products.
The capital ade!uacy as per 1asel II of the 1ank is %(.(% percent, #hich is
above the stipulated rate of A percent.
Its aim to assist lo# income earning people by providing loan facilities to
establish fisheries, poultry farms, small and cottage industries, village
transport and small engineering #orkshops has met #ith huge success.
1=A- 1ank introduced Islamic 1anking alongside the conventional banking
in >((A to give its clients total satisfaction and freedom to choose
The steady progress of 1=A- 1ank in its line of businesses is a testimony of
the 1ank5s creativity, commitment and care for stakeholders.
Weaknesses.
@isbursement of industrial loans by the bank is slo# due to some internal
problems of management.
6penses incurred during the banking business by 1=A- 1ank increase
>).%' during the last financial year.
Some of the top 2 level managers are not interested in bank5s gro#th.
1=A- 1ank needs to #ork more progressively on agricultural finance and
poverty mitigation.
1ank must maintain an optimum level of li!uidity through appropriate money
market operations.
Opportunities.
@espite many challenges, the opportunities are ample for the 1ank to operate
in international market.
*urther consolidation provided by the government has meant more freedom
and liberty for 1=A- 1ank to flourish its business.
8overnment5s commitment to and undertaking of necessary measures to
discourage loan default.
-ountry #ide boom in property business has resulted in more potential
people interested to seek home loans.
Threats.
;ucrative offers by other banks encourage eperienced bankers to s#itch to
other banks.
This problem has its roots in stiff competition among banks in banking sector
of 1angladesh.
$ndue political and o#ner group pressure in snatching loan.
,olitical unrest.
SWOT Analysis of "astern Bank Liited.
Strengths.
@iversified products, 9consumer finance, retail banking products and services,
investment banking, commercial banking, asset management, trade finance,
e4commerce products and services, private banking:.
.ation#ide infrastructure.
1ank business sustenance from the community in #hich it operates through
principle of respect of society.
6astern 1ank has ensured its fast gro#ing banking business through
ade!uate capital management. As on B%
st
@ecember >((&, 1ank5s Authori3ed
-apital #as TC %(,((( million #hile its ,aid up -apital reached TC B,D>>.'D
million.
.ecessary initiatives taken by the bank to enhance 1ank5s operational
efficiency and profit amid global economic recession, ever4increasing
competitive environment and rising customer epectation.
=isk management activities are ensured #ith an eye to securing the
soundness of operations and enhancing profitability.
Weaknesses.
Some of the complicated financial products.
@ebt obligations related to asset backed securities in the financial market.
Euestionable !uality of customer services.
Some of the bank services are not customi3ed.
Opportunities.
8ood market reputation, #hich is vital to ensure high profitability.
,rograms to issue =ight Shares and to enhance 1ank5s Supplementary
-apital in future.
Already good standing in the >(%(, #hich ensures promising years ahead.
*uturistic programs to consolidate the previous progress.
*urther epansion of product line.
*urther development of cross4selling strategies
Threats.
The financial market environment appears challenging for banking business.
0ay lose ground on competitors #ithout product development.
"igh street bankFs .et operations leading the field.
-onsolidation in the financial services industry.
"igh attrition in investment banking sector.
BC# $atri%
The 1-8 matri 9aka 1.-.8. analysis, 1-84matri, 1oston 1o, 1oston 0atri,
1oston -onsulting 8roup analysis: is a chart that had been created by 1ruce
"enderson for the 1oston -onsulting 8roup in %&'A to help corporations #ith
analy3ing their business units or product lines. This helps the company allocate
resources and is used as an analytical tool in brand marketing, product
management, strategic management, and portfolio analysis.
BC# $atri% of Hongkong and Shanghai Banking
Corporation&HSBC'.
The Hongkong and Shanghai Banking Corporation Liited 9-hinese:
is a global financial services corporation head!uartered in ;ondon, $nited
Cingdom.As of >(%(, it is both the #orldFs largest banking and financial services
group and the #orldFs Ath largest company according to a composite measure by
*orbes maga3ine."S1- #as founded as The "ongkong and Shanghai 1anking
-orporation and "ong Cong served as the bankFs head!uarters until %&&> #hen
it moved to ;ondon as a condition of completing the ac!uisition of 0idland 1ank
and as the handover of "ong CongFs sovereignty approached.Today, #hilst no
single geographical area dominates the groupFs earnings, "ong Cong still
continues to be a significant source of its income. =ecent ac!uisitions and
epansion in -hina are returning "S1- to part of its roots. "S1- has an
enormous operational base in Asia and significant lending, investment, and
insurance activities around the #orld. The company has a global reach and
financial fundamentals matched by fe# other banking or financial multinationals..
Although "S1- only commenced operation in 1angladesh in %&&', the 1ank has
!uickly made its presence felt in the local market. *rom the >)th position in >((B,
"S1- is no# one of five largest private banks in the country. As a full service
international bank, "S1- offer competitive pricing and efficient eecution. "S1-
provide a #ide range of treasury, loans, markets, payments and cash
management, and trade and supply chain services. "S1- have advisory
capabilities for clients #ishing to investGoperate in 1angladesh. 1ond issuance
capabilities are also being developed.
The companyFs business ranges from the traditional "igh Street roles of personal
finance and commercial banking, to corporate and investment banking, private
banking and global banking. It is the largest bank in "ong Cong #ith branches
and offices throughout the Asia ,acific region including other countries around
the #orld.
$aintaining Ade(uate Capital.
-apital ade!uacy is the measure of the financial strength and sustainability of a
bank. -apital Ade!uacy =ation 9-A=: determines the capacity of the 1ank in
terms of meeting the time liabilities and other risks such as credit risks, market
risks etc. It is the policy of "S1- to maintain ade!uate capital as a cushion for
potential losses to absorb unforeseen eventualitiesGshocks, to ensure long term
sustainability and gro#th of the 1ank to endure and enhance shareholders value.
At the end of >((&, 1ank5s total capital reached at Taka %,()&.(> -rore as
against Taka )DB.&A -rore on B% @ecember >((A.
The -A= against -ore -apital #as %%.A%H in >((& and the Supplementary
-apital #as %.&)H. So, the -A= #as %%.A%H as compared to %(.((H -AT set
by the 1angladesh 1ank.
Higher )rofit and #ro*th.
"S1-, despite the challenges of >((& faced by the financial sector in
1angladesh, #as able to achieve a remarkable gro#th in most business
segments to the credit of all concerned in management and in the policy making
arena. The net profit in >((& gre# by D'H over >((A. .et Assets ?alue 9.A?: of
"S1- stood at Taka %,((& crore in >(& #hich is +(H higher than >((A. 6arning
per share 96,S: stood at Taka %B%.%B end >(& #hich #as Taka A&.)> in >((A
i.e. a gro#th of D'H.
It is important to note that 1ank5s total assets stands at Taka %(,'&% crore end
>((& #hich #as at Taka A,D(+ crore in >((A meaning a gro#th of >)H.
Operating profit of "S1- in >((& registered a gro#th of B+H over >((A. ;oans
ratio in >((& stood at >(&DH #hich #as B.BAH in >((A. -lassified ;oans in A1
1ank stands >.)+H end >((& #hile it #as >.&&H in >((A.
De+elopent of Huan !esource.
"S1- is fully committed to developing human resources as a crucial par to of the
1ank5s development. .o product etension can be sustained #ithout a motivated
and a professionally competent team under the current competitive environment.
In the year >((&, the 1ank has conducted continuous skill development training
on its ne#ly established Training -entre. It has substantially increased training of
personnel for attending courses in foreign institutions. In >((&, the 1ank has
given training to B,%)) persons on headcount #ith total D',>D> hours of training
i.e. on average each participant received %D.++ hours of training. This #ill be
continued #ith added enthusiasm.
The above illustrated indicators mention that the business of "S1- has gro#n
substantially over the years. Therefore7 it is logical to conclude that "S1- falls
under the STAR category of 1-8 0atri.
BC# $atri% of Standard Chartered Bank
Standard -hartered 1ank has been launched by a group of successful
entrepreneurs #ith recogni3ed standing in the society. The management of the
1ank consists of a team led by senior bankers #ith decades of eperience in
international markets. The senior management team is ably supported by a
group of professionals many of #hom have eposure in the international market.
In the year >((B the 1ank again came to the limelight #ith oversubscription of
the Initial ,ublic Offering of the shares of the 1ank, #hich #as a record 9++
times: in our capital marketFs history and its shares commands respectable
premium.
The asset and liability gro#th has been remarkable. S-1 has been actively
participating in the local money market as #ell as foreign currency market #ithout
eposing the 1ank to vulnerable positions. The 1ankFs investment in Treasury
1ills and other securities #ent up noticeably opening up opportunities for
enhancing income in the contet of a regime of gradual interest rate decline.
Standard -hartered 1ank started its service #ith a vision to serve people #ith
modern and innovative banking products and services at affordable charge.
1eing parallel to the cutting edge technology the 1ank is offering online banking
#ith added delivery channels like AT0, Tele4banking, S0S and .et 1anking.
And as part of the bankFs commitment to provide all modern and value added
banking service in keeping #ith the very best standard in a globali3e #orld.
Higher )rofit and #ro*th.
@uring the year >((&, 1ank has accelerated its business significantly7 deposits
gre# by >&H, advances by >'H, and operating profit by B)H. The bank has
epanded its presence at eight ne# locations in different parts of the country.
International trade is one of the main sources of 1ank5s earnings. In the year
>((&, the import business of the bank gre# by B>H and eport business by >BH
and in#ard by BDH. These gro#ths contributed significantly to earn fees income
and echange gain for the 1ank.
In the year >((&, the bank established A ne# branches7 epanded its o#n AT0
net#ork from %A to B(. 6pansion also took place in the areas of S06
operations, retail financing and credit card. The Off4Shore banking unit is no#
fully operational dealing beyond the boundaries of the country.
Capital $anageent.
It is important to note that 1angladesh 1ank has directed the commercial banks
to follo# the 1AS6; II capital re!uirement from first !uarter of >(%(. The S-1
has complied the re!uirement #ithout any restructure of capital and issuance of
bond. *or the year >((&, the board of directors has recommended a dividend of
D(H for the shareholders in the form of stock dividend. This recommendation #ill
raise the paid up capital to Taka B,((B million and total capital to Taka +,+BA
million. The capital ade!uacy ratio of the bank as per 1AS6; I stands at %>.>)H
and as per 1AS6; II the ratio is %(.(%H.
It is important to note that the gro#th of 1ank Asia #ill be maintained in near
future, therefore it is safe to declare S-1 as STAR in the 1-8 0atri.
BC# $atri% of Dutch-Bangla Bank Liited
@utch41angla 1ank ;imited 9the 1ank, @11;: is a scheduled joint venture
commercial bank bet#een local 1angladeshi parties spearheaded by 0
Sahabuddin Ahmed 9*ounder I -hairman: and the @utch company *0O. @11;
#as established under the 1ank -ompanies Act %&&% and incorporated as a
public limited company under the -ompanies Act %&&D in 1angladesh #ith the
primary objective to carry on all kinds of banking business in 1angladesh. @11;
commenced formal operation from June B, %&&'. The 1ank is listed #ith the
@haka Stock 6change ;imited and -hittagong Stock 6change ;imited.
@11; is most #idely recogni3ed for its donations to social causes and its IT
investment 9largest AT0 net#ork:. "o#ever it has recently stated that it #ill stop
epansion on its AT0 net#ork as the current numbers have eceeded demand
and hence diminishing returns 9if any:. Although it is #idely believed it is a loss4
makingGsubsidi3ed unit #hich @11; rationali3es as !uasi -S=.
The bank is often collo!uially referred to as K@11;K, K@utch 1anglaK and K@utch
1angla 1ankK.
On the digital day 9%(G%(G%(:, the @11; inaugarated its 9digital: %(((th AT0 at
the factory premises of the 8laoSmithCline, -hittagong.
1anks that have signed agreements to share @11;Fs AT0 net#ork 9as of 0ay
>((&:/
-itibank 9locally kno#n as K-itibank .AK:
Standard -hartered 1ank 9S-1:
-ommercial 1ank of -eylon
0utual Trust 1ank
1ank Asia
.ational -redit and -ommerce 1ank ;imited 9.-- 1ank:
,rime 1ank
$nited -ommercial 1ank ;imited 9$-1;:
Southeast 1ank ;imited 9S61;:
The -ity 1ank 9locally kno#n as K-ity 1ankK to differentiate bet#een K-itibank
.AK:
*irst Security 1ank
Trust 1ank
0ercantile 1ank
E4-ash net#ork 1anks 9%. Janata 1ank >. 6astern 1ank B. I*I- 1ank D. A1
1ank +. Shahjalal Islami 1ank '. 1asic 1ank ). Jamuna 1ank A. 0ercantile
1ank &. .ational 1ank %(. .ational -redit and -ommerce 1ank %%. ,ubali
1ank %>. Sonali 1ank %B. Trust 1ank %D. $ttara 1ank %+. State 1ank of India
%'. The -ity 1ank %). Social Islami 1ank:
@haka 1ank
6LI0 1ank
Higher profit gro*th.
@espite generally slo#er business activities in the country, @11; #as successful
in achieving substantial gro#th in business and profit during the year >((&. The
deposits of the 1ank increased by B%.DH, loans and advances increased by
%'.%H, #hile import and eport business increased by >(.)H and >.)H
respectively. @uring the year >((&, operating profit increased by B&.BH and net
profit after ta increased by BA.+H from Taka A>%.) million to Taka %,%B).)
million.
Status of deposit and ad+ances.
The deposit gre# by Taka %',>%>.& million 9B%.DH: in >((& from Taka +%,+)+.)
million to Taka '),)AA.+ million. As a result, #eighted average cost of fund
declined to '.+BH from ).''H in >((&.
;oans and advances stood at Taka DA,D%(.& million 9%'.%H: at the end of year
>((& from Taka D%,'&A.B million in >((A. -lassified loan as percentage of
portfolio decreased from B.>)H in >((A to >.D'H in >((&.
Strong Capital Ade(uacy !atio $aintained.
@11;5s regulatory capital as on @ecember B%, >((& stood at Taka +,A&&.A
million. As on @ecember B%, >((&, -apital Ade!uacy =atio #as %%.+&H under
1asel I as against 1angladesh 1ank5s minimum re!uirement of %(H. The Tier4>
capital #as further strengthened by revaluation of held to maturity and held for
trading securities of the 1ank that #as transferred to e!uity #hich contributed
Taka >&.( million to Tier4> capital. *ifity percent 9+(H: of revaluation reserve
against held to maturity and held for trading securities is considered as
supplementary capital 9Tier > caital: by 1angladesh 1ank.
Custoer Ser+ices and Online Banking.
@11; continued to be a customer focused, need based and solution4driven
1ank. 1ank5s products and services are strongly supported by IT infrastructure
and online banking facilities, #hich are upgraded and epanded on a continuous
basis. B+( units if AT0 #ere installed in >((& to increase the number of AT0
units to )((. @11; is providing any branch anytime banking services to clients
>D hours a day and B'+ days a year.
All the above mentioned indicators sho# positive signs of @11; business over
the years. With all these, #e can easily put @11; as STAR in the 1-8 0atri.
BC# $atri% of B!AC Bank Liited
1=A- 1ank ;imited #as established in %&&+ #ith a dream and a vision to
become a pioneer banking institution of the country and contribute significantly to
the gro#th of the national economy. The 1ank #as established by leading
business personalities and eminent industrialists of the country #ith stakes in
various segments of the national economy. The incumbent -hairman of the 1ank
is 0uhammad A. 9=umee: Ali, *-A, a professional -hartered Accountant. 0r. 0.
A. Cashem a member of the 1oard and 0r. <ussuf Abdullah "arun #ere past
,residents of the *ederation of 1angladesh -hamber of -ommerce and
Industries 9*1--I:.
1=A- 1ank is run by a team of efficient professionals. They create and generate
an environment of trust and discipline that encourages and motivates everyone in
the 1ank to #ork together for achieving the objectives of the 1ank. The culture of
maintaining congenial #ork 4 environment in the 1ank has further enabled the
staff to benchmark themselves better against management epectations. A
commitment to !uality and ecellence in service is the hallmark of their identity.
1=A- 1ank takes pride for bringing #omen into the banking profession in a
significant number for gender e!uality. At present, B>H of 1=A- 1ank
employees are #omen that #ill rise to D+H over the net five years.
Higher )rofit and #ro*th.
@espite the adversities and competition, 1=A- 1ank earned an operating profit if
Taka D,'%D.'' million in >((& as against last year5s operating profit of Taka
B,(%>.+A million. The 1ank posted a gro#th of +B.%AH in operating income.
@uring the year, 1ank5s net profit stood at Taka %,A)(.%& million #hich is
%%(.A(H higher than the net profit of Taka AA).>D million earned by the bank in
the previous year.
@eposits, the 1ank5s life4blood, stood at Taka &',''&.(+ million #hile its loans
and advances #hich are its heart4beat, stood at Taka )),D&).+) million as on B%s
@ecember >((&. In the year under revie#, the 1ank conducted eport of Taka
D',)>D.D) million, import business for Taka '&,+A>.&> million, guarantee
business for Taka %%,&%'.)D million and in#ard remittance business of Taka
>B,A((.(( million.
Capital.
The Authori3ed -apital of the 1ank #as Taka %(,(((.(( million and ,aid4up
-apital #as Taka B,D>>.'D million as of @ecember B%, >((&. The -apital and
=eserve of the 1ank in >((& stood at Taka &,&>).%' million compared to Taka
),'+).(% million of the previous year sho#ing an increase of >&.'+H.
Capital Ade(uacy !atio.
The 1ank maintained a capital ade!uacy ratio of %%.)> percent of the risk4
#eighted assets as on @ecember B%, >((& as against re!uirement of %( percent
as set by 1angladesh 1ank under 1asel 2 I reporting.
As all the above mentioned indicators illustrate a promising future ahead for the
1=A- 1ank ;imited, #e can put it under the category of CASH COW in 1-8
0atri.
BC# $atri% of "astern Bank Liited
1angladesh economy has been eperiencing a rapid gro#th since the F&(s.
Industrial and agricultural development, international trade, inflo# of epatriate
1angladeshi #orkersF remittance, local and foreign investments in construction,
communication, po#er, food processing and service enterprises ushered in an
era of economic activities. $rbani3ation and lifestyle changes concurrent #ith the
economic development created a demand for banking products and services to
support the ne# initiatives as #ell as to channeli3e consumer investments in a
profitable manner. A group of highly acclaimed businessmen of the country
grouped together to responded to this need and established 6astern 1ank
;imited in the year %&&+.
The 1ank #as incorporated as a public limited company under the -ompanies
Act. %&&D. The 1ank started its commercial operation on July (+, %&&+ #ith an
authori3ed capital of Tk. %,((( million and paid up capital of Tk. %(( million. The
paid up capital of the 1ank stood at Tk >,'+&,+&),)'B as on 0arch B%, >(%(. The
total e!uity 9capital and reserves: of the 1ank as on 0arch B%, >(%( stood at Tk
',(B',B'A,)+D.
The 1ank has +D 1ranches, D S06 Service -enters, + -0S $nits, > Offshore
1anking $nit across the country and a #ide net#ork of correspondents all over
the #orld. The 1ank has plans to open more 1ranches in the current fiscal year
to epand the net#ork.
The 1ank offers the full range of banking and investment services for personal
and corporate customers, backed by the state2of2the4art technology and a team
of highly motivated ,rofessionals.
As an integral part of our commitment to 6cellence in 1anking, 6astern 1ank
no# offers the full range of real4time online banking services through its all
1ranches, AT0s and Internet 1anking -hannels.
6astern 1ank ;td. is the preferred choice in banking for friendly and personali3ed
services, cutting edge technology, tailored solutions for business needs, global
reach in trade and commerce and high yield on investments.
Capital $anageent.
The paid4up capital of the 1ank amounted to Taka >,%>A million as of B%
@ecember >((&. ,aid4up capital increased by Taka %&D million 9bonus share of
>((A: in >((&. The statutory reserve also increased by Taka D>) million during
the year by transferring >(H of pre4ta profit as per -ompanies Act %&&%. The
total shareholders5 e!uity 9capital I reserve: of the 1ank as at the end of
@ecember >((& stood at Taka D,&'+.'A million including sponsor capital of Taka
%,%&> million.
According to 1alance Sheet >((&, capital ade!uacy ratio #as e!uivalent to
%%.B%H of =isk Weighted Assets against %%.ADH of >((A.
,ncrease in )rofit.
1ank registered an operating profit of Taka >,A%( million in >((& compared to
Taka >,+BB million in >((A making a gro#th of %%H. The net profit of 1ank as of
B% @ecember >((& stood at Taka &+& million compared to previous year5s Taka
AB& million making a gro#th of %DH. 6arning per share 96,S: #as Taka D+.(& in
>((& compared to Taka B&.D> in >((A.
With the help of above mentioned indicators, the 1ank is categori3ed as Cash
Cow in the 1-8 0atri because of the slo# pace of gro#th in some of its
business segments.