Prime Bank Annual Report 2013

Annual Report 2013
1
Maintenance of adequate
capital against overall risk exposure of
the Bank is our guiding philosophy to
strengthen risk management and internal
control. PBLs regulatory capital as on 31
December 2013 stood at Taka 26,812 million and
the Capital Adequacy Ratio was 12.04% under
Basel II, as against Bangladesh Banks minimum
requirement of 10.0%. With strong cash flows
and falling debt PBL is well placed to fund
future growth and retain its
investment grade credit
rating.
S
t
r
o
n
g
C
apital Ade
q
u
a
c
y
Diversifying our loan
portfolio to avoid excessive
concentration to particular sectors
as well as to invest funds in the
productive sectors like SME and Retail
by at least 40% is our objective.
Allocation of capital through customer
account review and transaction
analysis upon determination of Risk
Adjusted Return on Capital
(RAROC)
D
i
v
e
r
s
ify
ing Loan P
o
r
t
f
o
l
i
o
In ensuring asset quality
we have to restructure our
business operations in many ways
like proper documentation, central
disbursement, better monitoring and
control over the assets. Without strong
monitoring and assessment of loan
portfolio and integrated effort of all
corners, expected results will not be
achieved. Classified loans which
has downward trend must be
addressed on priority.
C
o
n
c
e
n
tr
a
tion on Ass
e
t Q
u
a
l
i
t
y
Taking
advantage of all the
capabilities, expertise and
resources at our disposal to make
financial lives better. Quite simply, that is our
purpose to make financial lives better, through
the power of every connection. It comes down to
one customer, one client, one interaction at a time.
It comes down to delivering what our customers
need and doing it flawlessly over and over
again. It comes down to better connecting
as a team and working together to
deliver one company.
E
n
h
a
n
c
e
d
Custom
er S
e
r
v
i
c
e
Capital management is
first and foremost driven by risk.
Risk can trigger losses that deplete
the capital, as such our plan is to bring
the economic capital frame work to derisk
our Balance Sheet. We are carefully
considering the potential unexpected losses
that are associated with each individual
activity. Value maximization requires
financing only businesses that are
sufficiently profitable after their
capital consumption.
E
c
o
n
o
m
ic
Capital Fra
m
e
w
o
r
k
The
bank is focused on
securing our future workforce
through hiring fresh graduates in the
Management Trainee cadre. The MT
development program was redesigned in 2013,
and in 2014 our graduates will undertake a
broader program to support development of both
banking and leadership capability. We continued
to work towards building a diverse workforce
and rolled out a two-year Indigenous
employment strategy, in support of our
Strategic Priorities and Action
Plan.
B
u
ild
in
g Internal T
a
le
n
t
To remain competitive in
Bangladeshs volatile economic
environment we launched an
internal productivity campaign in 2013,
focused on improving efficiency and
effectiveness across the organization.
Delivering sustainable productivity
improvement will ensure PBL remains
a competitive and efficient financial
partner of choice.
I
m
p
r
o
v
in
g
B
usiness P
ro
d
u
c
t
i
v
i
t
y
Prime Bank is a proud commercial bank in Bangladesh with a long
history of achievements, and we are working hard to realize our
vision of becoming a leader in the private banking sector
Annual Report 2013
2

Letter of Transmittal 3
Notice of the 19
th
Annual General Meeting 4
Standard Disclosure Index 5
Corporate Governance Disclosure Checklist 8
Vision 10
Mission 11
Corporate Philosophy 12
Strategic Priority 13
Ethics, Integrity and Trust 14
Green Banking 15
Statement Regarding Forward Looking Approach 16
Corporate Profile 17
Milestones 19
Board of Directors Profile 20

CONTENTS
Whats inside
Composition of Board and Committees 29
From the office of the Chairman 30
Managing Director & CEO's Roundup 34
Directors Report 39
Report on the Actvities of Audit Committee 47
Report of Prime Bank Shari'ah Supervisory Committee 49
CEO / CFO's Declaration to the Board 50
Corporate Governance Report 51
Green Banking Report 72
Corporate Management 74
Corporate Organogram 87
Group Corporate Structure 88
Management Discussion & Analysis 89
Report on Risk Management by Chief Risk Officer 113
Risk Management Report 114
Market Discipline Disclosures on Risk Based Capital (Basel-II) 122
CORPORATE GOVERNANCE
SHAREHOLDERS' INFORMATION
OTHER INFORMATION
FINANCIAL STATEMENTS
SUSTAINABILITY REPORT
Financial Highlights- Group & PBL 140
Financial Highlights- PBL 141
Key Financial Data & Key Ratios- PBL 142
Graphical Presentation- PBL 144
Segment Analysis 146
Distribution of Shareholdings in 2013 147
Shares held by the Directors in 2013 147
Economic Impact Report 148
- Maintaining Capital Adequacy 148
- Statement of Value Added and its Distribution 149
- Economic Value Added Statement 150
- Maintaining Liquidity 151
- Payment of Dividends 151
Market Value Added Statement 151
Disclosure for Non Performing Assets 152
Market Price Information 153
Financial Calendar 2013 154
Governance on Investors Relation 154
Glimpses of 18
th
AGM 155
Awards and Recognition 157
Media Highlights 160
Products and Services 162
Prime Bank Foundation 166
(Corporate Social Responsibility)
Auditors' Report to the Shareholders 194
Consolidated Balance Sheet 196
Consolidated Profit and Loss Account 198
Consolidated Cash Flow Statement 200
Consolidated Statement of Changes in Equity 202
Balance Sheet of PBL 203
Profit and Loss Account 205
Cash Flow Statement 207
Statement of Changes in Equity 209
Notes to the Financial Statements 210
Financial Statements- OBU 297
Financial Statements- PBIL 309
Financial Statements- PBSL 315
Financial Statements- PECL, Singapore 321
Financial Statements- PBL Exchange (UK) Ltd. 327
Financial Statements- PBL Finance (Hong Kong) Ltd. 333
Some PBL Activities during 2013 338
Branch Network 340
Glossary 345
Sustainability Report 2013 346
(Global Reporting Initiative (GRI) 3.1)
Rationale of The Cover
With Nineteen Years of
Successful Evolution
Prime Bank is
Eyeing For The Next Level
Annual Report 2013
3
Letter of Transmittal
All Shareholders,
Bangladesh Bank,
Bangladesh Securities and Exchange Commission,
Registrar of Joint Stock Companies & Firms,
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited
Dear Sir(s),
Mohammed Ehsan Habib
Company Secretary
Annual Report of Prime Bank Limited for the year ended December 31, 2013
Enclosed please find a copy of the Annual Report of Prime Bank Limited along
with the Audited Financial Statements as at the position of December 31, 2013. The
Report includes Income Statements, Cash Flow Statements along with notes
thereon of Prime Bank Limited, its Subsidiaries namely Prime Exchange Co. Pte.
Limited, Singapore, PBL Exchange (UK) Limited, PBL Finance (Hong Kong)
Limited, Prime Bank Investment Limited and Prime Bank Securities Limited.
This is for your kind information and record please.
Best regards.
Yours sincerely,
Annual Report 2013
4
Annual Report 2013
5
Standard Disclosure Index
The table given below provides a cross reference to the standard disclosures to the key sections of the Annual
Report-2013:
Items Page No.
Corporate Objectives, Values & Structure Clarity and presentation
Vision and Mission
10, 11
Overall strategic objectives
13
Core values and code of conduct/ethical principles
14
Profle of the Company
17-18
Directors profles and their representation on Board of other companies & Organization Chart
20-27,87-88,274-276
ManagementReportandanalysisincludingDirectorsReport/ChairmansReview/CEOsReviewetc.
A general review of the performance of the company 30-46,89-112
Description of the performance of the various activities / products / segments of the Bank and
Group during the period under review
34-46,72-73,
89-112,140-153
A brief summary of the Business and other Risks facing the organization and steps taken to
effectively manage such risks
113-137
A general review of the future prospects/outlook. 32-33,38
Information on contribution of the Bank to its responsibilities towards the staff (including health
& safety)
42,102-105,381-393
(GRI)
Information on Banks contribution to the national exchequer & to the economy 149-150
Sustainability Reporting
Social Corporate Responsibility (CSR) Initiatives 32,38,166-192
Environment related Initiatives
37,72-73,369-380
(GRI)
Environment & Social Obligations 346-410 (GRI)
Integrated Reporting 346-410 (GRI)
Disclosure of Accounting policies and General Disclosure
Disclosure of adequate and properly worded accounting policies relevant to assets, liabilities,
Income and expenditure in line with best reporting standards
45,210-227
Any Specifc accounting policies 219-220 (BAS-19)
Impairment of Assets 217
Changes in accounting policies/ Changes in accounting estimates 219-220 (BAS-19)
Segment Information
Comprehensive segment related information bifurcating segment revenue, segment results
and segment capital employed
111,146,293
Availability of information regarding different segments and units of the entity as well as non-
segmental entities/units
Segment analysis of
- Segment Revenue
- Segment Results
- Turnover
- Operating proft
- Carrying amount of Net Segment assets
Financial Statements
Disclosures of all contingencies and commitments 197,204,252-253
Comprehensive related party disclosures 266-267
Disclosures of Remuneration & Facilities provided to Directors & CEO 44,55,61-63,259
Statement of Financial Position / Balance Sheet and relevant schedules
194-337
Income Statement / Proft and Loss Account and relevant schedules
Statement of Changes in Equity / Reserves & Surplus Schedule
Disclosure of Types of Share Capital
Statement of Cash Flow
Consolidated Financial Statement (CFS)
Extent of compliance with the core IAS/IFRS or equivalent National Standards
Disclosures / Contents of Notes to Accounts
Annual Report 2013
6
Items Page No.
Information about Corporate Governance
Board Of Directors, Chairman and CEO 20-27,54-60
Vision, Mission and Strategy 10-11,13,40-41
Audit Committee (Composition, role, meetings, attendance, etc.), Internal Control & Risk Management 29,51-71
Ethics and Compliance 14,31-71
Remuneration and other Committees of Board 29,60-63,259
Human Capital 42,101-105,381-393 (GRI)
Communication to Shareholders & Stakeholders
- Information available on website
154,www.primebank.
com.bd
- Other Information 359-363 (GRI)
Management Review and Responsibility 89-112
Disclosure by Board of Directors of Audit Committee on evaluation of quarterly reports 57
Any other investor friendly information 154
RiskManagement&ControlEnvironment
Description of the Risk Management Framework
113-137 Risk Mitigation Methodology
Disclosure of Risk Reporting
StakeholdersInformation
Distribution of shareholders (Number of shares as well as category wise, e.g Sponsors, FII
etc)
147,250
Shares held by Directors/Executives and relatives of Directors/Executives 147,250
Redressal of investors complaints 154
Graphical/PictorialData
Earnings per Share
140-153
Net Assets
Stock Performance
Shareholders Funds
Return on Shareholders Fund
Horizontal/VerticalAnalysisincludingfollowing.
Operating Performance (Income Statement)
- Total Revenue
- Operating proft
- Proft Before Tax
- Proft after Tax
- EPS
42-44,111-112,140-
153
Statement of Financial Position (Balance Sheet)
- Shareholders Fund
- Property, Plant & Equipment
- Net Current Assets
- Long Term Liabilities/ Current Liabilities
Proftability/Dividends/PerformanceandLiquidityRatios
Gross Proft Ratio
Earning before Interest, Depreciation and Tax
Price earning ratio
Current Ratios
Return on Capital Employed
Debt Equity Ratio
140-153
Statement of Value Added and Its Distribution
Government as Taxes
148-153
Shareholders as dividend
Employees as bonus/remuneration
Retained by the entity
Market share information of Banks product/services
Economic value added
Annual Report 2013
7
Items Page No.
Additional Disclosures
Sustainability Development Reporting
Human Resource Accounting
Any other good additional disclosures (Independence certifcation Eg GNV / GRI)
104-105,166-
192,346-410 (GRI)
SpecifcDisclosures
Disclosure of Ratings given by various rating agencies for Instruments issued by /of Bank. For
eg. FD, CD, Tier-I perpetual Bonds
17-18
Details of Advances portfolio Classifcation wise as per the direction issued by the central bank 233-240, 246-248
Disclosure for Non Performing assets
- Movements in NPA
- Sector-wise breakup of NPA
- Movement of Provisions made against NPA
- Details of accounts restructured as per regulatory guidelines
Maturity Pattern of Key Assets and Liabilities (ALM) 295
Classifcation and valuation of investments as per regulatory guidelines/Accounting Standards 229-233, 271
Business Ratio/Information
- Statutory Liquidity Reserve (Ratio)
- Net interest income as a percentage of working funds / Operating cost effciency ratio
- Return on Average Asset
- Cost / Income ratio
- Net Asset Value Per Share
- Proft per employee
- Capital Adequacy ratio
- Operating proft as a percentage of working funds
- Cash Reserve Ratio / Liquid Asset ratio
- Dividend Cover ratio
- Gross Non-Performing assets to gross advances/Non-Performing Loans (Assets) to
Total Loans (Assets)
42-44, 111-112,
140-153
Details of credit concentration / Sector vise exposures 234-240
The break-up of Provisions and contingencies included in the Proft and Loss Account 246-248
Disclosure under regulatory guidelines (Market Discipline- Pillar 3 Disclosures under Basel-II) 122-137
Details of Non-Statutory investment portfolio 231-233, 271
Disclosure in respect of assets given on operating & fnance lease 240, 272
Disclosures for derivative investments 231-233
Banks Network: List of Branches or Centers 340-344
Annual Report 2013
8
Corporate Governance Disclosure Checklist
Items Page No.
1. BOARDOFDIRECTORS,CHAIRMANANDCEO
1.1 Companys policy on appointment of directors disclosed. 54
1.2 Adequate representation of non executive directors i.e. one third of the board, subject to a
minimum of two
54
1.3 At least one independent director on the board and disclosure / affrmation of the board on
such directors independence.
54
1.4 Chairman to be independent of CEO 55
1.5 Responsibilities of the Chairman of the Board appropriately defned and disclosed. Disclosure
of independence of Non Executive Directors
55, 61, 62
1.6 Existence of a scheme for annual appraisal of the boards performance and disclosure of the
same.
55
1.7 Disclosure of policy on annual evaluation of the CEO by the Board. 55-56
1.8 Disclosure of policy on training (including details of the continuing training program) of directors
and type and nature of training courses organized for directors during the year Existence of a
scheme for annual appraisal of the boards performance
57
1.9 At least one director having thorough knowledge and expertise in fnance and accounting to
provide guidance in the matters applicable to accounting and auditing standards to ensure
reliable fnancial reporting.
54
1.10 Disclosure of number of meetings of the board and participation of each director (at least 4
meetings are required to be held)
61, 62
1.11 Directors issue a report on compliance with best practices on Corporate Governance that is
reviewed by the external auditors.
64
2. VISION/MISSIONANDSTRATEGY
2.1 Companys vision / mission statements are approved by the board and disclosed in the annual report. 10-11
2.2 Identifcation of business objectives and areas of business focus disclosed 89-112
2.3 General description of strategies to achieve the companys business objectives 13
3. AUDITCOMMITTEES
3.1 Appointment and Composition
3.1.1 Whether the Audit Committee Chairman is an independent Non Executive Director 57
3.1.2 Whether it has specifc terms of reference and whether it is empowered to investigate/
question employees and retain external counsel
57-58
3.1.3 More than two thirds of the members are to be Non Executive Directors 57
3.1.4 All members of the audit committee to be fnancially literate and at least one member
to have expert knowledge of fnance and accounting.
57
3.1.5 Head of internal audit to have direct access to audit committee 57
3.1.6 The committee to meet at least four times a year and the number of meetings and
attendance by individual members disclosed in the annual report.
62
3.2 Objectives & Activities
3.2.1 Statement on Audit Committees review to ensure that internal controls are well
conceived properly administered and satisfactorily monitored
58
3.2.2 Statement to indicate audit committees role in ensuring compliance with Laws,
Regulations and timely settlements of Statutory dues
57
3.2.3 Statement of Audit committee involvement in the review of the external audit function
v Ensure effective coordination of external audit function
v Ensure independence of external auditors
v To review the external auditors fndings in order to be satisfed that appropriate
action is being taken
v Review and approve any non audit work assigned to the external auditor and
ensure that such such work does not compromise the independence of the
external auditors.
v Recommend external auditor for appointment/ reappointment
57-58
Annual Report 2013
9
Items Page No.
3.2.4 Statement on Audit committee involvement in selection of appropriate accounting
policies that are in line will applicable accounting standards and annual review.
57-58
3.2.5 Statement of Audit Committee involvement in the review and recommend to the board
of directors, annual and interim fnancial releases
58
3.2.6 Reliability of the management information used for such computation 57-58
4. INTERNALCONTROL&RISKMANAGEMENT
4.1 Statement of Directors responsibility to establish appropriate system of internal control 53
4.2 Narrative description of key features of the internal control system and the manner in which
the system is monitored by the Board, Audit Committee or Senior Management.
58-59
4.3 Statement that the Directors have reviewed the adequacy of the system of internal controls 52
4.4 Disclosure of the identifcation of risks the company is exposed to both internally & externally 59-60
4.5 Disclosure of the strategies adopted to manage and mitigate the risks 59-60
5. EthicsandCompliance
5.1 Disclosure of statement of ethics and values, covering basic principles such as integrity,
confict of interest, compliance with laws and regulations etc.
14, 64-70
5.2 Dissemination / communication of the statement of ethics & business practices to all directors
and employees and their acknowledgement of the same
55
5.3 Boards statement on its commitment to establishing high level of ethics and compliance within
the organization
59
5.4 Establishing effective anti-fraud programs and controls, including effective protection of whistle
blowers, establishing a hot line reporting of irregularities etc.
364
6. REMUNERATIONCOMMITTEE
6.1 Disclosure of the charter (role and responsibilities) of the committee 60
6.2 Disclosure of the composition of the committee (majority of the committee should be non-
executive directors, but should also include some executive directors)
29, 60
6.3 Disclosure of key policies with regard to remuneration of directors, senior management and
employees
60
6.4 Disclosure of number of meetings and work performed 61-62
6.5 Disclosure of Remuneration of directors, chairman, chief executive and senior executives. 61-63, 259
7. HUMANCAPITAL
7.1 Disclosure of general description of the policies and practices codifed and adopted by
the company with respect to Human Resource Development and Management, including
succession planning, merit based recruitment, performance appraisal system, promotion and
reward and motivation, training and development, grievance management and counciling.
101-105
7.2 Organizational Chart 87
8. CommunicationtoShareholders&Stakeholders
8.1 Disclosure of the Companys policy/strategy to facilitate effective communication with
shareholders and other stake holders
359-363
8.2 Disclosure of companys policy on ensuring participation of shareholders in the Annual General
Meeting and providing reasonable opportunity for the shareholder participation in the AGM.
154
9. EnvironmentalandSocialObligatoins
9.1 Disclosure of general description of the companys policies and practices relating to social and
environmental responsibility of the entity
166-192
346-410
9.2 Disclosure of specifc activities undertaken by the entity in pursuance of these policies and
practices
Annual Report 2013
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Annual Report 2013
11
efficiency through integration of
Corporate Philosophy
For our Customers
To provide the most courteous and effcient service in every aspect of its business
To be innovative in the development of new banking products and services
For our Employees
By promoting their well-being through attractive remuneration and fringe benefts
By promoting good staff morale through proper staff training and development and provision of opportunities
for career development
For our Shareholders
By forging ahead and consolidating its position as a stable and progressive financial institution
By generating profts and fair return on their investment
For our Community
By assuming our role as a socially responsible corporate citizen in a tangible manner
By adhering closely to national policies and objectives thereby contributing towards the progress of the nation
........upholding ethical values and best practices
Constantly seeking to improve performance by aligning our goals with stakeholders expectations. Because we value them
Annual Report 2013
12
Strategic Priority
u Diversify loan portfolio to avoid excessive concentration to particular sectors as well as to invest
funds in productive industries
u Need to grow business in SME and Retail portfolio development at least by 36%
u Economic capital frame work to be implemented to derisking the Balance Sheet for the potential
unexpected losses that are associated with each individual activity
u Ggreater emphasis to serve potential and unbanked population of the country providing banking
services to under-served areas with the scaling up of various pilot initiatives
u Allocation of capital through customer account review and transaction analysis and upon
determining of risk-adjusted return on capital (RAROC) concepts basis
u Strengthening of Information Security Department to ensure secure technology in banking to
enable safer banking service to customers
u Monitoring and strengthening of recovery drive to bring down the NPL below 3% to maintain asset
quality at standard level
u Formation of Head line Corporate Business Team to provide one stop service to top 50 customers
to ensure better services with maximum satisfaction for more business
u Maintain strong capital base by expediting borrowers rating, concentrating on lending portfolio
having lower capital charge, strengthening Internal Capital Adequacy Assessment Process (ICAAP)
u Improvement of deposit mix by maintaining efficient deposit mix, increase share of low cost and no
cost deposit in total deposit, increase non-funded business
u Improve internal governance through strengthening good corporate cultures, motivation, training
and supervision as per KPIs in all levels of management
u Conduct BPR (Business Process Re-engineering) in different functional areas to improve efficiency
and bring in required structural change
u Integrated marketing effort by creating a customer-orientated culture, Branch archaeology study
(in-depth research for brand strategy development), Brand Repositioning and extensive marketing
for branding Hasanah
u Development in Human Resource Management System to motivate and retain the Human
Resources and transform Human Resources to Human Capital through proper training in every
aspects of working area
u Cost optimization at all levels of operation by ensuring budgetary control
Annual Report 2013
13
Annual Report 2013
14
Ethics, Integrity and Trust
Ethics
Trust
Integrity
Banking deals with public money where Ethics, Integrity and
Trust is utmost important. Prime Bank upholds these
principles in every section by its management and customer
service. The following are the key principles of Employee
Codes of Ethics and Business Conduct:
Provide service to customers with uncompromising
integrity, utmost respect, unwavering responsibility and
dedicated citizenship
Protect privacy and confidentiality of customer
information
Prevent money laundering and fraud
Demonstrate workplace respect
Green Banking
The environmental degradation needs to
be tackled in a concerted manner by all.
Society demands that business also take
responsibility in safeguarding the planet.
As a responsible Corporate Citizen,
Prime Bank reinforced its Green Banking
initiatives.
Annual Report 2013
15
Green Banking
The environmental degradation needs to
be tackled in a concerted manner by all.
Society demands that business also take
responsibility in safeguarding the planet.
As a responsible Corporate Citizen,
Prime Bank reinforced its Green Banking
initiatives.
Annual Report 2013
16
Statement Regarding Forward Looking Approach
The Annual Report contains some forward looking statements regarding the business environment and its likely effect in
the financial conditions of PBL. Statements which are not historical facts including statement of PBLs belief, expectation
are forward looking statements. Words such as plan, anticipate are forward looking statements. Forward looking statement
involves inherent risks and uncertainties. Some factors may actually cause actual results to differ and some may
significantly deviate from the forward looking approach. Some of the factors that may affect the business environment are
given below:
Changes in the general economic condition resulting from natural calamities and political disturbances
Changes in government policy issues
Increase in Tax, VAT on banking services
Increase in corporate tax rate
Increase in CRR and SLR of the banks
Withdrawal of incentive given to some thrust sectors which may make the projects slow moving
Directives to reduce the lending rates to finance essential items
Increase in provisioning requirement may reduce the ROA and ROE
Reducing the margin ratio for investment accounts
Volatility in interest rate
Volatility in capital market arising from speculations
Compliance issues raised by the international forums which are likely to affect the export growth
Rise in international prices of essentials which may result to volatility in Foreign Exchange Market
International embargo/unrest in Middle-East countries may affect remittances and trade
Risk management of lending portfolio often requires stress testing which is based on sophisticated mathematical tools
and cannot solely be dependent on existing MIS. The level of technology in banking industry is yet to acquire that
sophistication.
Annual Report 2013
17

Capital Market through Prime Bank Investment Limited and
Prime Bank Securities Limited.
Efcient Capital And Strong Asset Quality
PBL has a strong capital base and capital adequacy stands
at 12.03 percent of the risk weighted assets against the
regulatory requirement of 10 percent. The bank is also well
positioned to maintain capital under Basel-II.
Focused Business Strategy
The bank is focused on few strategic issues encompassing
change management in the short to long period through the
implementation of various policies, processes and activities
to ensure continuous, sustainable and qualitative growth,
with the sole objective of Institution Building. An effective
Cluster Management (Mentorship) program was
implemented. Branch management is now being
continually exposed to mature thoughts and ideas through
Mentors resulting in qualitative improvement of their
business and operational activities.
Organizational and structural changes were made in
managing the banks operations more effectively. Business
Units like Corporate/Commercial, Retail, SME, Cards were
restructured and established to provide sharper business
focus to each of these revenue earning sources. Credit
approvals, quality and recovery departments were
strengthened and separated from business sales to
facilitate faster growth and maintain quality simultaneously.
Support services to ensure greater customer satisfaction
with a wider range of products and services were
implemented. New departments like Alternate Delivery
Channels, Cards back office, Call Centre, operational
support were established.
The PBL Brand
PBLs superior service quality, strong corporate
governance has given it an excellent Brand Image. To
continue to reinforce the PBL Brand, Prime Bank is
continuously improving its customer service, corporate
governance and CSR activities by remaining innovative
and caring.
Awards and Accolades
PBL continues to earn recognition and trust for its strong
and sustained financial performance and product
management. From 2009, PBL has received the following
awards for the best published report:
SAFA Best Presented Annual Report Awards and
SAARC Anniversary Award for Corporate Governance
Disclosure 2009 Winner (Category: Banking Sector)
Disclosure 2009 Overall Winner
10th ICAB National Award for Best Published Accounts
& Report 1st Position in Private Sector Banks.
& Report 2009 Winner in Private Sector Banks
(Corporate Governance Disclosure Award).
11th ICAB National Award for Best Presented Annual
Report 2010 1st Position in Private Sector Banks.
Corporate Prole
Who We Are
Established in April 1995 by a group of visionary
entrepreneurs conceive an idea of floating a commercial
bank with different outlook. Prime Bank is known for its
superior service quality, brand image, strong corporate
governance and corporate culture. Committed for
excellence, Prime Bank is a top-tier bank in Bangladesh
and reputed among regulators as distinctly compliant and
among customers as agile and responsive to change. A
Bank aligned to its vision, mission, values and strategic
priorities.
Our Core Business
Prime Bank focuses on a wide range of financial products
and services which include commercial banking through
both conventional and Islamic mode, Merchant and
Investment Banking, SME & Retail Banking, Credit Card
and Off-shore Banking. It plays Leading Role in Syndicated
& Structured Financing. It has expertise in Corporate Credit
and Trade Finance and made extensive market penetration
with continuous growth in Corporate, Commercial and
Trade Finance sectors. It has fully owned exchange houses
in Singapore, UK and a fully owned finance company in
Hong Kong.
Corporate Ranking
Prime Bank ranked 9th in Dhaka Stock Exchange (DSE) by
market capitalization and stood at Tk 26,660 million as at
the end of 2013. Balance Sheet Size of around Tk. 243,869
million equivalent to USD 3,137 million. With wide
customer-base Prime Bank established itself as the Market
Leader among the conventional private commercial banks
for deposits and advances.
Credit Rating
CRISL reaffirmed long term rating of PBL to AA and short
term rating to ST-2 based on financials up to December
31, 2013.
Rating by Crisl

Network
PBL has a large and well distributed network of branches in
Bangladesh. It has 117 branches and 17 SME branches
covering strategic financial centers. It has 3 Off-shore
banking units at different EPZs in Bangladesh. It has fully
owned exchange houses at Singapore and UK facilitating
inward remittance to Bangladesh. It has a fully owned
finance company in Hong Kong. It has active presence in
2013 2012
CRISL:
Long Term AA AA+
Short Term ST-2 ST-1
CRAB:
Long Term AA2 -
Short Term ST-2 -
Outlook Stable
Date of Rating June 30, 2013
Annual Report 2013
18
The Bizz - The Recognition of Inspirational Company
with all its rights and privileges - 2012
Disclosure 2011 Winner (Category: Private Sector
Banks).
Disclosure 2011 Overall Runner Up.
& Report 2011 1st Position in Private Sector Banks
Report 2012 2nd Position in Private Sector Banks
(including Co-operative Banks).
Report 2012 3rd Position in SAARC Anniversary
Award for Corporate Governance.
ICMAB Best Corporate Award 4th Consecutive
Victory 1st Prize 2012
Best Bank of Bangladesh by Global Finance Survey
(Best Emerging Market Bank in Asia) - 2013
Our Commitments
PBL is committed to deliver value to its stakeholders. PBL
will continue to provide effective and competitive financials
solutions and services to its customers. It will continue to
enhance the shareholders value through consistent
financial performance and efficient capital management.
PBL will foster a strong performance and learning culture
that allows the development and talents of its employees so
that they can effectively play the role of PBL Brand
Ambassador.
Annual Report 2013
19
Milestones
Memorandum and Articles of Association signed by the Sponsors 05.02.1995
Incorporation of the Company 12.02.1995
Certificate of Commencement of Business 12.02.1995
License issued by Bangladesh Bank 20.02.1995
License issued for opening the first Branch, Motijheel 08.04.1995
Formal launching of the Bank 17.04.1995
Commencement of business from the Motijheel Branch 17.04.1995
Commencement of Islamic banking business from IBB, Dilkusha 18.12.1995
Initial Public Offerings (IPO)
Publication of Prospectus 29.08.1999
Subscription Opened 09.09.1999
Subscription Closed 22.09.1999
Listed with Chittagong Stock Exchange Limited 15.11.1999
Listed with Dhaka Stock Exchange Limited 27.03.2000
Trading of Shares on Dhaka Stock Exchange Limited 29.03.2000
Trading of Shares on Chittagong Stock Exchange Limited 29.03.2000
Dividend declared in the 5th AGM (First after the IPO) 14.03.2000
Registered as Merchant Banker with the Securities and Exchange Commission 29.03.2001
License issued from the Bangladesh Bank as Primary Dealer 11.12.2003
Registered as Depository Participant of CDBL 29.03.2004
Trading of Shares started in Demat Form in Stock Exchanges 15.06.2004
Completion of 10 years of Service 17.04.2005
Agreement with Temenos for Core Banking Software Temenos T24 30.06.2005
Incorporation of Prime Exchange Co. Pte. Ltd., Singapore 06.01.2006
Prime Exchange Co. Pte. Ltd., Singapore formally started business 08.07.2006
Opening of first Off-shore Banking Unit at DEPZ, Savar, Dhaka 15.03.2007
Launching of ATM 11.03.2008
Recipient of ICAB Best Published Accounts Award-2007 04.12.2008
Launching of Internet Banking 01.08.2009
Recipient of ICAB Best Published Accounts Award-2008 30.12.2009
Opening of first SME Centre 04.08.2009
Recipient of SAFA Best Bank Award 05.12.2009
Incorporation of PBL Exchange (UK) Ltd. 19.11.2009
Obtained Permission for issuance of Subordinated Bond for
Tk 2,500 Million for Basel-II Compliance 31.12.2009
Incorporation of PBIL 28.04.2010
Incorporation of PBSL 29.04.2010
Obtained permission for issuance of Rights Share 25.05.2010
Launching of SMS Banking 25.08.2010
Ground breaking of Prime Tower 22.09.2010
Change of Face Value and Market Lot of Shares of PBL 06.01.2011
Launching of Phone Banking 02.08.2011
Commencement of business of PBL Finance (Hong Kong) Ltd. 01.09.2011
Launching of Mobile Banking 25.03.2012
Launching of Biometric Smart Card-Prime Cash 20.05.2012
Recipient of ICMAB Best Corporate Award-2012 15.01.2013
Recipient of SAFA Best Presented Annual Report Awards and
SAARC Anniversary Awards for Corporate Governance Disclosures-2011 22.03.2013
Launching of Prime Bank Nursing Institute 13.04.2013
Launching of first in Bangladesh the JCB Cards online acquiring service 20.07.2013
Launching of Islamic Credit Card 24.07.2013
Recipient of 13th ICAB National Award for Best Presented Annual Reports
(Second Prize) Awards -2012 21.12.2013
Recipient of Best Bank Award 2013 from Global Finance 30.10.2013
Annual Report 2013
20
Board of Directors' Profle
Protecting Shareholders' Value
Mr. Md. Nader Khan, a Sponsor Director, was elected Chairman of the
Board of Prime Bank for the 2
nd
time in 398
th
Board Meeting held on 11th
May 2013. He is a prominent entrepreneur and has the credentials of
setting up many high-end business establishments in different sectors.
Currently, he is associated with the following business concerns in different
capacities, such as:
Chairman:
Artisan Ceramics Ltd.
New Vision Information Technology Ltd.
Managing Director:
Pedrollo nk Limited
Polyexprint Ltd.
Polyex Laminate Ltd.
Halda Valley Tea Co. Ltd.
Polytape Ltd.
PNL Water Management Ltd.
Director:
National Life Insurance Co. Ltd.
The Consolidated Tea and Lands Company (BD)
Hill Plantation Ltd.
Baraoora (Sylhet) Tea Company Ltd.
He completed his Graduation from Chittagong College under Dhaka University in 1967. One of his business concern,
Pedrollo nk Limited, is the market leader in water pump sale & distribution in Bangladesh since 1985. Mr. Khan was
honored with Prime Ministers Award 2010 for his contribution in tree plantation. A goodhearted personality, Mr. Khan is
actively involved in diverse CSR activities. He is the Chairman of Lion Mukhlesur Rahman Foundation, Lion Mukhlesur
Rahman Plastic Surgery Hospital, Zero Club Foot Project, Founder of Cider International School, Ex- Governor (2000-
2001) of Lions Club International- District 315 B4 Bangladesh, to mention a few. He is trustee Member of Independent
University of Bangladesh (IUB) & Chittagong Independent University (CIU). Mr. Khan believes hard work and business
integrity are the keys to success. He considers vision is necessary to give proper directions for economic development.
He, in view of his vast experience, likes to contribute in national development through expanding quality educational
services and tea plantation.
Md.NaderKhan
Chairman
Annual Report 2013
21
Mrs.NasimAnwarHossain, Chairperson of the Risk Management Committee
of the Board, is one of the Sponsor Directors of Prime Bank Limited. Mrs.
Hossain, Masters in Political Science from Dhaka University, is a successful
business personality as well. She is Director of Prime Cement Ltd., Lubricants
Asia Ltd., Bengal Tiger Cement Industries Limited. Mrs. Hossain is an active
social worker and takes keen interest in different benevolent and philanthropic
activities.
Mr. Mafz Ahmed Bhuyian has been elected Vice Chairman of the Board of
Directors of Prime Bank Limited in the 398
th
Meeting of the Board held on 11
th

May 2013. A Sponsor Director, Mr. Bhuiyan was Chairman, Executive Committee
of the Board prior to his present position. He is also a Member of the Executive
Committee and Risk Management Committee of the Board of Directors of Prime
Bank Limited. Mr. Bhuiyan is an entrepreneur and has the distinction of making
substantial contribution in the Backward Linkage Industry setup in the RMG sector
in its early years. He is also pioneered in setting up joint- venture projects in
the country with the collaboration of the developed countries like Taiwan / Hong
Kong / China and Korea. He is a Director of Australian International School
(International Holdings Ltd ), Life Member of Board of Trustees of Eastern
University Foundation, Eastern University ,South Asia Foundation and South
East University. He is also Managing Director of Shepherd World Trade Ltd and
representing Shepherd World Trade Limited to the Board of Citizen Securities &
Investment Limited as Chairman.
Mr.TanjilChowdhury is the Chairman of the Executive Committee of the Board
of Directors of Prime Bank Ltd. He is the Managing Director of East Coast Group
of Companies, a diversifed conglomerate with over 30 years of experience
in the Oil & Energy sector of Bangladesh. Mr. Chowdhury is the President of
Bangladesh Merchant Bankers Association (BMBA) and the President of Solar
Module Manufacturers Association of Bangladesh (SMMAB). He is also the
Chairman of Prime Exchange Singapore Pte. Ltd., Prime Banks remittance
arm in Singapore. He is the Secretary General of Prime Bank Cricket Club
(PBCC), an initiative of Prime Bank Foundation (PBF). Mr. Chowdhury has been
elected as Director and Chairman, Facilities Committee of Bangladesh Cricket
Board (BCB). He often conducts guest lectures and seminars in various private
universities, his topics include Financial Derivatives, Investment Management
& Organizational Behavior. Mr. Chowdhury did his B.A. (Hons.) in Accounting
& Finance from University of West London and went on to complete his MSc
in International Management (Finance) from the prestigious Kings College
London. He is an active member of BBC Film Society and also a keen golfer,
participating in amateur golf tournaments at home and abroad.
NasimAnwarHossain
Vice Chairperson
MafzAhmedBhuiyan
Vice Chairman
TanjilChowdhury
Chairman, Executive Commitee
Annual Report 2013
22
Mr. Imran Khan is a Director of Prime Bank and currently serves as the Vice
Chairman of the Executive Committee of the Board of Directors. He is one of
the Directors of Pedrollo nk Limited market leader of sale & distribution of
PEDROLLO Brand Water pumps of Italy in Bangladesh. A promising business
personality of the country, he is also Director of PNL Holding Limited, PNL
Water Management Limited, Polyexprint Ltd, Halda Valley Tea Co. Ltd, Hill
Plantation Limited. An Ex-Cadet of Fauzdarhat Cadet College, Chittagong, Mr.
Khan completed his graduation in BBA from North South University, Dhaka. Mr.
Khan is actively associated with various social activities. He is a member of the
Governing body of Lion Mukhlesur Rahman Foundation a renowned NGO and
Charitable Organization of Chittagong.
Prof.AinunNishat, a renowned personality in the arena of Water Management,
Climate Change, Environment and Disaster Management, is an Independent
Director and Chairman, Audit Committee of the Board of Prime Bank. Presently,
he is Vice Chancellor of BRAC University, Dhaka. He obtained Ph.D. in Civil
Engineering from University of Strathclyde, Glasgow, U.K. He is a graduate
of Bangladesh University of Engineering and Technology (BUET) in Civil
Engineering. Earlier in his career he was Professor, Dept. of Water Resources
Engineering and Director, Institute of Water and Flood Modeling BUET, Dhaka,
and Country Representative of International Union for Conservation of Nature
and Natural Resources. A widely traveled person Prof. Nishat has authored many
books and articles at home and abroad.
Mr. Md. Shirajul Islam Mollah, a Sponsor Director of Prime Bank Limited was
Chairman of the Board of Directors from August 24, 2011 to May 31, 2013. He
was Chairman of the Executive Committee prior to his election as Chairman.
He was also the Chairman of the Executive Committee during May 2003 to May
2004. A very successful business personality, Mr. Mollah is the Managing Director
of China-Bangla Ceramic Industries Limited, Bengal Tiger Cement Industries
Limited, Bajnabo Textile Mills Limited, United Shipping Lines Limited and Director
of Peoples Leasing & Financial Services Limited. Widely traveled, Mr. Mollah is
involved with many social and educational activities and earned recognitions from
a number of organizations. He is the founder of Bajnabo Abul Faiz Mollah High
School, Shibpur, Narsingdi. He is a Member of Dhaka Stock Exchange Limited
(Trustee Securities Ltd.). He is the President of Bangladesh Ceramic Wares
Manufacturers Association. A philanthropic personality, Mr. Md. Shirajul Islam
Mollah is also the Chairman of Shirajul Islam Mollah Samaj Seba Foundation.
He was elected Member of Parliament in the 10th National Parliament Election
held in 2014.
ImranKhan
Vice-Chairman, Executive Commitee
Prof.AinunNishat
Chairman, Audit Commitee
Md.ShirajulIslamMollah
Director
Annual Report 2013
23
Mr.M.A.Khaleque is the founder and Sponsor Director of Prime Bank Limited. He
was Vice Chairman of the Board from August 24, 2011 to May 31, 2013. During the
last 26 years, he has set an enviable standard by establishing high end institutions
ranging from banks, non-banks, life and general insurance in the country. Mr.
Khaleques name has now become synonymous with some of the fnest institutions
having high professional outlook and vision in the nation. Spanning over a period
of around 21 years, success came as a matter of choice through Prime Finance &
Investment Ltd, Fareast Islami Life Insurance Company Ltd., Prime Insurance Ltd.,
Fareast Finance & Investment Ltd., PFI Securities Ltd., Fareast Stocks and Bonds
Ltd., Prime Islami Securities Ltd., Prime Prudential Fund Ltd., Prime Financial
Securities Ltd. some of which are already market leaders in their respective felds.
Having set epoch making standards in the fnancial arena, he set his sight into the
emerging information technology, booming property sector and promising Agro-
based sector of the country and his dreams were fulflled through promotion of
GETCO Limited / GETCO Agrovision Ltd., GETCO Telecommunications Ltd., HRC
Technologies Ltd., Prime Property Holdings Limited and PFI Properties Ltd. He is
a member of the Board of Governors, Primeasia University. His social contribution
came through his foundation under the name and style of MAK Foundation through
establishment of a good number of educational institutions such as University,
Degree College, Technical College, Krishi College, High School, Girls High
School, Kindergartens and Madrasahs imparting quality education in the society.
He is actively involved with SEBA, a benevolent organization in Bangladesh.
He is currently the Chairman of Fareast Finance & Investment Limited, Fareast
Stocks and Bonds Ltd., and PFI Properties Ltd. He is also a Member of the Audit
Committee of the Board of Directors of Prime Bank Limited.
Mr.MizanurRahmanBhuiyan is a renowned industrialist in Bangladesh. Through his
strong leadership & vision, he expanded & diversifed the business to its present level in
Meghna Group as one of the most renowned business conglomerates in Bangladesh.
Presently, Mr. Rahman is the Chairman of Meghna Group. The core business of Meghna
Group is to manufacture & export bicycle & components to Europe. Meghna manufactures
full range of bicycle, CNG & motorcycle tyres & tubes and recently started manufacturing
automobile tyres. Meghna has also a steel tube manufacturing unit that produces quality
steel pipe for bicycle frame & steel furniture. Besides involvement in the bicycle industry,
Meghna has a joint venture of Hanger manufacturing unit with the renowned Mainetti of
Italy. The group also has business stake in a white cement manufacturing unit, a joint
venture with eminent Siam Group of Thailand. In the recent years, Meghna has started
a new line of business of manufacturing garments accessories; like button, poly bags,
printed & woven labels tags and tapes & fully automated corrugated carton factory is
already in operation while elastics, yarn & dyeing etc. are in the pipeline. Meghna Group
is very successful in the automotive sector in Bangladesh. Mehgna is the sole distributor
of prestigious German Brand BMW. KIA Motors from Korea is also represented by the
group in the country. For its excellent performance & contribution to national economy
Meghna Group has been awarded many times by the Govt. & non govt. bodies. For
the export performance in the year 2008, Transworld Bicycle Co. Limited received the
National Export Trophy Gold and Meghna Bangladesh limited received National
Export Trophy Silver. Meghna was awarded with the Business Enterprise of the year
2009 in the Daily star DHL Bangladesh Business Award. In the year 2005 Meghna
received the BMW Best Facility in the region Award from BMW Asia Limited. In the
year 1999 Meghna Automobiles Limited also received Best distributor of the year in
Asia Region from KIA Motors Corporation. Mr. Mizanur Rahman is one of the Sponsor
Directors of the best performing private sector Bank Prime Bank Limited. Mr. Rahman
was the Chairman of the Board of Directors in the year 2003-2004. Widely traveled, Mr.
Rahman is a member of Kurmitola Golf Club, Dhaka Cantonment.
M.A.Khaleque
Director
MizanurRahmanBhuiyan
Director
Annual Report 2013
24
Mrs. Marina Yasmin Chowdhury is a Sponsor Director and former Vice
Chairperson of Prime Bank Limited. She is the director of East Coast Group
(ECG), a diversifed conglomerate that has been engaged in Oil and Energy
business for last thirty years. She is also the Chairman of Clean Fuel Filling
Stations Limited and Parkesine Products Limited, both of which are subsidiaries
of ECG. Mrs. Chowdhury is also former-director of Green Delta Insurance
Company Limited, one of the leading general insurance companies of Bangladesh.
Outside the business life, Mrs. Marina Y. Chowdhury is deeply engaged in
Social Welfare programs conducted through East Coast Group Foundation and
is also personally involved in other philanthropic and charitable causes such
as accessible education and medical treatment for the underprivileged. In her
leisure time she enjoys working out, shopping and cooking variety of culinary
dishes for her family.
Mrs.NazmaHaque is one of the Sponsor Directors of Prime Insurance Company
Limited. Mrs. Nazma Haque, Graduate in Economics, under Dhaka University,
is a successful business personality as well. She is Executive Director of Bangla
Trac Limited, Chairman of Anirban Enterprise Limited and also Director of Asian
Gate Limited, ACORN Limited And THANE Technology Limited. Outside business
life, Mrs. Nazma Haque is an active social worker and deeply engaged in Social
Welfare programs in Rajshahi. She is one of the founders of Bangla Trac Cricket
Academy, located in Rajshahi and engaged in training underprivileged boys of
the locality.
Quazi Sirazul Islam is a Sponsor Director & former Chairman of Prime Bank
Limited. He took part in countrys liberation war in 1971 and later elected as
Member of Parliament in 1996 and 2001. Mr. Islam is the Managing Director of
Amin Jewelers Limited, one of the famous Jewelry House in the country. He is
the Chief Advisor of Sonar Bangla Insurance Limited. He is also the Member
of Gulshan Club Limited. Mr. Islam is the Chairman of City Hospital (Burn
Hospital), which is the only Private Sector Hospital of this kind in Bangladesh.
He is a Member of the Board of Trustee of Peoples University of Bangladesh.
A philanthropist by nature Mr. Islam was awarded Kabi Jasimuddin Gold Medal,
Maulana Akram Khan Gold Medal, Suf Motahar Hossain Gold Medal and Atish
Dipankar Gold Medal for remarkable contribution in education. He was also
awarded MJF (Melvin Jones Fellow) Medal by the Lions International Foundation
for his contribution to the Society. He is also a life member of Red Crescent
Society.
MarinaYasminChowdhury
Director
NazmaHaque
Director
Quazi Sirazul Islam
Director
Annual Report 2013
25
Mrs Salma Huq is one of the Sponsor Directors and former Chairman of the
Executive Committee of Prime Bank Ltd. She is a Director of GQ Group since
1986, which is engaged in manufacturing pen, plastic furniture, disposable plastic
wares, pp woven sacks, mosquito coils and snack foods. GQ Group is also one
of the sponsors of Prime Insurance Co Ltd, Prime Finance and Investment Ltd,
PFI Securities Ltd and Prime Capital Management Ltd. She is actively engaged
in philanthropic activities mainly providing scholarship to needy students and
providing free medicine and arranging treatment to poor patients. She is one of
the founders of Qazi Saleema Huq Womens College and Qazi Saleema Huq
Girls High School. She is also a Member of the Executive Committee and Risk
Management Committee of the Board of Directors of Prime Bank Limited.
KhandkerMohammadKhaled, former Chairman and present Director of Prime
Bank Limited is a BUET graduate in Mechanical Engineering. After graduation
he joined the then Water & Power Development Authority (WAPDA), now
Bangladesh Water Development Board (BWDB). After having served BWDB
for thirteen years, he started his own business in 1975 establishing Greenland
Engineers & Tractors Company Limited (GETCO) along with few associates
which by now has attained an enviable position among the contemporary
business houses in Bangladesh. He is currently Chairman & Managing Director
of GETCO Telecommunications Limited, GETCO Agro Vision Limited and
GETCO Limited. He is Vice- Chairman and Member, Board of Governor, Prime
Asia University. Besides, he is associated with numerous Chamber Bodies
and Societies in different capacities prominent among which are Institute of
Engineers, Bangladesh, National Heart Foundation of Bangladesh, Diabetic
Association of Bangladesh, AMCHAM, Bangladesh, Bangladesh Railway Spares
and Accessories Suppliers Association, International WHOs WHO Historical
Society and 62-Engineers Club. He is currently the President of Canada-
Bangladesh Chamber of Commerce and Industries (CANCHAM). A very widely
traveled person, Mr. Khaled is an amiable personality having track record of
making contributions in the social and educational development activities of the
country. He is also a Member of the Audit Committee and Risk Management
Committee of the Board of Directors of Prime Bank Limited.
Mrs. Muslima Shirin is the Chairperson of MAWSONS Ltd., engaged in
business. She is also engaged in real estate business. She represents in the
Board of Prime Finance & Investment Limited on behalf of MAWSONS Ltd. She
is also a Member of the Executive Committee and Risk Management Committee
of the Board of Directors of Prime Bank Limited.
SalmaHuq
Director
KhandkerMohammadKhaled
Director
MuslimaShirin
Director
Annual Report 2013
26
Mr.NafsSikder is the Managing Director of Palmal Group which was founded
by his father, late Engr. Nurul Haque Sikder, a prominent business personality,
in the early eighties. Since then the Company is holding leading position in the
RMG sector of the country. After completion of O and A level, Mr. Sikder went to
Washington University, Saint Louis, Missouri, USA and obtained BS in Business
Administration with distinction.
With his ingenuity and expertise in operations, strategic management &
marketing skills, expanded the Groups business, many folds in all the spheres of
RMG. The group at present, is the most prolifc and trusted suppliers of Apparels
to some of the most reputed North American, Australian and European buyers.
Mr. Nafs Sikder is an avid philanthropist and actively contributes in the promotion
and expansion of education, through establishing Schools and Colleges. He
is also associated with numerous socio welfare and charitable organizations
for promotion of health and alleviation of poverty. He is also a Member of the
Executive Committee of the Board of Directors of Prime Bank Limited.
A successful businessman, Mr.Md.ShahadatHossain is a Sponsor Director of
Prime Bank Limited. He is a past Vice Chairman of the Board of Directors also.
His business entity consists of VIP Shahadat Poultry & Hatchery, VIP Shahadat
Cold Storage and Rangpur Agro Industries. An active social worker, Mr. Hossain
is associated with different social welfare organizations dedicated to the services
of general masses. He is also a Member of the Executive Committee of the
Board of Directors of Prime Bank Limited.
Prof. Dr. Mohammed Aslam Bhuiyan, Pro-VC of National University, is a
renowned educationist and was appointed an Independent Director of the Bank
in April 2009. He obtained his MS in Sociology on Rural Development at the
Moscow University, erstwhile USSR in 1976. He was also educated in the USA
& Germany. He did his Ph.D from Bombay University under the fellowship of
Indian Council of Social Science Research (ICSSR). Professor Dr. Bhuiyan also
successfully completed a training programme for Directors, Financial Institution
on Corporate Governance held in Kuala Lumpur, Malaysia in 2012. Mr. Bhuiyan is
former Vice Chancellor of The Peoples University of Bangladesh and Chairman
of the Department of Sociology, University of Chittagong. He was also Director
CUCSU, Provost Shamsun Nahar Hall, Registrar (In charge) of Chittagong
University. Presently Dr. Bhuiyan is a Senate Member of Chittagong and Dhaka
University, Syndicate Member of the Moulana Bhashani University of Science &
Technology and member, Presidium, Bangladesh India Friendship Society. He
is also Member of Governing Council of Bangladesh Climate Change Resilience
Fund (BCCRF), Ministry of Environment and Forest. Prof. Bhuiyan wrote more
than 100 academic papers published in National & Foreign Journals including
many leading Newspapers. He is also a Member of the Audit Committee of the
NafsSikder
Director
Md.ShahadatHossain
Director
Prof.Dr.MohammedAslamBhuiyan
Director
Annual Report 2013
27
Mr.ManzurMurshed, a retired bureaucrat , is one of the Independent Directors
of the Bank. He graduated in Engineering (Electrical) in 1961 from the then
Ahsan Ullah Engineering College under the University of Dhaka and did MA
(Public Admin) from American University, Beirut. He started his career in 1961
as Assistant Engineer in East Pakistan Water and Power Development Authority
(EPWAPDA) and retired from service as member, Planning & Development,
Bangladesh Power Development Board in December 1995. He was also Director
of Eastern Cables Ltd. He at present runs a consultancy frm offering expertise
services in the power sector. He is also a Member of the Audit Committee of the
Mr. Md. Ehsan Khasru joined as Managing Director of Prime Bank Limited
on 15 September, 2011. Prior to joining Prime Bank Limited, he was Additional
Managing Director of The City Bank Ltd. In his long 31 years banking career, he
has held various responsible management positions in Credit Risk Management,
Risk Management, Credit Administration and Relationship Management. Mr.
Khasru started his illustrious banking career in 1983 as a Probationary Offcer in
National Bank Ltd. In 1985, he joined National Credit and Commerce Bank Ltd.
After serving eight years, in 1992 he moved to American Express Bank in the
Marketing Manager (Relationship) position in the Business & Corporate Banking
Division and served there till 1999. Later on, in 2000, he went abroad and
worked for Royal Bank of Canada and Bank of Montreal as a Senior Manager
(Relationship) and Financial Services Manager respectively till 2007. Mr. Khasru
returned to Bangladesh in 2007 and joined Eastern Bank Limited as Head of
Credit Risk Management. Subsequently, in 2008, he joined the City Bank Ltd. as
SEVP and Head of Credit Risk Management where he received elevation twice
in three years. During this time he was also promoted to the rank of Additional
Managing Director for his contribution as the Chief Risk Offcer of the bank. An
MBA in Marketing from the Institute of Business Administration (IBA), University
of Dhaka in 1982, Mr.Khasru achieved his Bachelor (Hons) in Economics from
Dhaka University in 1979.
ManzurMurshed
Director
Md.EhsanKhasru
Managing Director
IN THIS SECTION
Corporate Governance

Directors Report 39
Report of the Audit Committee 47
Annual Report 2013
29
Composition of Board and Committees
Board of Directors
Mr. Md. Nader Khan Chairman
Mrs. Nasim Anwar Hossain Vice Chairperson
Mr. Mafiz Ahmed Bhuiyan Vice Chairman
Quazi Sirazul Islam Director
Khandker Mohammed Khaled Director
Mr. M.A. Khaleque Director
Mr. Md. Shirajul Islam Mollah Director
Mr. Mizanur Rahman Bhuiyan Director
Mr. Md. Shahadat Hossain Director
Mrs. Marina Yasmin Chowdhury Director
Mrs. Nazma Haque Director
Mrs. Muslima Shirin Director
Mrs. Salma Huq Director
Mr. Nafis Sikder Director
Mr. Tanjil Chowdhury Director
Mr. Imran Khan Director
Prof. Ainun Nishat Director
Prof. Dr. Mohammed Aslam Bhuiyan Director
Mr. Manzur Murshed Director
Mr. Md. Ehsan Khasru Managing Director
Executive Committee
Mr. Tanjil Chowdhury Chairman
Mr. Imran Khan Vice Chairman
Mr. Mafiz Ahmed Bhuiyan Member
Mr. Md. Shahadat Hossain Member
Mrs. Muslima Shirin Member
Mrs. Salma Huq Member
Mr. Nafis Sikder Member
Audit Committee
Prof. Ainun Nishat Chairman
Mr. M.A. Khaleque Member
Khandker Mohammed Khaled Member
Mr. Manzur Murshed Member
Prof. Dr. Mohammed Aslam Bhuiyan Member
Risk Management Committee
Mrs. Nasim Anwar Hossain Chairperson
Khandker Mohammed Khaled Member
Mr. Mafiz Ahmed Bhuiyan Member
Mrs. Muslima Shirin Member
Mrs. Salma Huq Member
Advisor
Mr. Ziaul Hasan Siddiqui
Shariah Supervisory Committee
Prof. Maolana Mohammad Salahuddin Chairman
Prof. Maolana Mohammad Shahidul Islam Member
Prof. Dr. Shamsher Ali Member
Mr. M. Azizul Huq Member
Prof. Dr. Muhammad Abdur Rashid Member
Maolana Shah Mohammad Wali Ullah Member
Mr. Md. Nader Khan Member
Mr. Muhammad Abdul Wahhab Member
Mr. Md. Ehsan Khasru Member
Mr. Abu Zafar Md Sheikhul Islam Member Secretary
IN THIS SECTION

Directors Report 39
Report of the Audit Committee 47

ii
From the ofce of the Chairman
Annual Report 2013
31
The year two thousand thirteen fnally came to an
end with a heave of relief in anticipation that early
two thousand fourteen shall witness dawn of an era
much needed for fourishing business and investment
activities. Though, elections are over but we are not
assured of the peaceful time prevailing long. But
then, its typical as each year industry has to face
new challenges but as a sound bank having strong
fundamentals and the continuous support of the
stakeholders in its armory, warding off such adversity
is expected to occur in normal course. Therefore,
we will continue to look beyond like any yester years
towards the projected goals no matter what the global
or local scenario is.
Bangladesh economy has been acclaimed star
economy by external observers due to its consistent
growth each year as compared to diminishing trend of
many developed countries. Therefore, as part of the
local economy, the bank too can hope maintaining
steadiness despite the challenges varying from crisis,
volatility to various uncertainties.
Going back to the period 2013 under reference, the
bank had to pass through a long spell of adversity owing
to accommodation of investment slip-up. Until the end
of the 2nd Quarter, things were not looking bright but
fnally upon accommodation of the investment mishaps
through appropriate accounting means and prompt
realignment of the policies coupled with the measures
on cost cutting, paid off well to reach a respectable
position at the year end.
On the business perspective, it is known to all that
the year witnessed low demand of Credit as such
liquidity was in abundance. Loan to Deposit ratio
hardly exceeded 71-72% against usual 80% or more.
Persisting skepticism over political consensus affected
many running projects and the work of mighty Padma
Bridge could not be launched for obvious reasons
reducing signifcantly the prospect of funding & non
funding business. Remittance also showed signs of
declining trends to affect the earning of the banks.
In light of the background narrated above, our valued
stakeholders still have reasons to rejuvenate as their
bank stood the test of time & stress and came closer to
the projected performance targets.
For the valued stakeholders, I take the privilege to
highlight the following few aspects under reference of
the year 2013 on the frm belief that they will not only
be satisfying but reassuring for the confdence in our
future activities.
Performance- 2013
Against various odds, the bank succeeded in
maintaining double digit dividend for the year
2013 which can be mainly attributed for the strong
fundamentals of the bank. At the end of the year banks
Deposit & Advance stood at Tk. 201,907 million and
Tk.153,589 million respectively and the ratio clearly
supports the claim of unfavorable investment climate
prevailed during the year.
Return on Equity (ROE) stood at 8.35 percent and the
Earning per Share (EPS) was Tk 1.78 which may be
considered acceptable as against the industry average.
Capital Adequacy of the bank stood at 12.04 percent
against the regulatory requirement of 10.00 percent
and it is worth mentioning that during the entire 2013
bank made numerous Stress Testing exercises to re-
affrm its position assuming acute to most distressing
circumstances. The process also included continuous
persuasion of the business houses on the importance
of Corporate Rating for a mutual win-win situation.
The ratio of non-performing loans stood at 5.09
percent, though appears slightly higher compared to
earlier years yet low, compared to industry average
after meeting the prevailing stringent classifcation
rules.
Strategic Priorities & Actions Plans - 2012-2014 are in
progress and by the end of the year 2014, differences
shall be noticeable particularly in terms of centralization
and large scale transformation of manual operations
into automated state.
Centralization / Automations
Among the various measures initiated upon determining
strategic priorities and actions plan taken, enormous
emphasis was placed on technology realizing that
spending on widespread technology would be an
investment to support growth and new business
development. Pursuant to the belief, the bank has been
relentlessly pushing to popularize technology driven
products and services for inclusion banking. Banks
services and operational development partner, KPMG
is still with us engaged in the up gradation process of
the existing core banking software T-24 which will also
impact the Shariah banking to be more compliant.
Corporate Governance & BCA-2013
One of the major developments of 2013 had been
the passing of Bank Company Act - 2013 bill by the

ii
From the ofce of the Chairman
Annual Report 2013
32
parliament. The Act aims at reinforcing the process
of establishing Corporate Governance culture in the
banking operations. Even though, Prime Bank had
been a practicing entity ever since its inception, yet
the bank took the amendments in the right earnest
and took various measures which most conspicuously
included segregation of Audit & Inspection Unit from
the Management organogram to the Board. The Audit
& Inspection Unit is now formally independent of the
Management control and responsible for its activities
to the Board. The move is expected to provide more
impetus and responsibility in the interest of the
stakeholders.
BSEC directives on the Corporate Governance
issues had been met earlier as such the Bank stands
compliant to both regulators. Our stakeholders as
such, can rest assured that conditions of the BCA-
2013 & BSEC notifcations have been met to a large
extent and in particular the Audit Committee, assistive
committee of the Board has been playing its due role
to uphold the spirit of governance. In addition, as per
BSEC directives, all the subsidiaries of the bank have
been brought under the surveillance net of the Holding
Company.
BCA-2013 allowed formation of a third assistive
Committee of the Board, the Risk Management
Committee with the responsibility of formulation
& implementation of policies, Risk Management,
Internal Control, Internal Audit & its compliance. The
Committee has been assigned to identify all probable
risks and issue direction on mitigation measures
through introduction of effective tools/procedures
and also ensuring retention of adequate capital and
provisioning against such risk.
The Board has been prompt to form the Committee
as the banking business is full of inherent risks and
its the depositors money with which they deal with.
Even though, risk mitigation mechanism was always
prevalent for all kinds of funding, but for the frst time
the Board has been made responsible for identifying
the risks and formulation of appropriate strategies to
control those risks. The Committee is also supposed
to submit decisions/recommendations to the Board on
quarterly basis for further reviews and guidance in the
interest of the stakeholders.
Obligations to the Society (CSR)
Banking is all about the society. Its the society we do
banking about and its the society to which we belong.
Therefore, as a moral responsibility to the society our
contributions are on and in fact ever increasing.
Prime Bank since its inception has been alert about its
commitment to the society and with each passing day,
involvement has been taking diversifed approach. Our
attention is focused on the development of important
areas of the society like education, health care & sports
which we consider vital for the growth of the nation.
The bank has been performing the responsibilities
in dual approach. One, the Bank itself has been
engaging in day to day issues like extending fnancial
support to the non proftable organizations, educational
institutions, hospitals, organizing temporary medical
services, cultural activities, games & sports besides
sponsoring many other events of signifcance. While
the Prime Bank Foundation has been more organized
in its approach and took up projects like setting up
of schools, Educational support programs, Nursing
College and conducting numerous Eye Camps across
the country in association with Prime Bank Eye
Hospital. A lot of thoughts and deliberations are on for
larger project of signifcance like setting up of a Medical
College, international standard Auditorium and Cricket
Academy and all these appear taking shape in the
nearest future.
On the business front, Bank has been contributing to
the society by extending credit facilities on softer terms
to the Women entrepreneur, SME Sector, Education
Loan & environment friendly projects under Green
Banking policy of the bank.
Challenges- 2014
By the time this report reaches the stakeholders, the
year 2014 will be well set in. But early symptoms are
not very encouraging for service sector industry like
banks. Even though 50 percent of the GDP is generated
from this sector but some of the legacy of the past year
shall persist to impact its growth, such as:

Borrowers having availed the recent rescheduling
facilities as per Bangladesh Bank Guidelines to
overcome the diffcult time faced due to political
ambiguity will have to prove their fnancial strength.

Industry NPL ratio which was helped down might re-
surface if business does not show signs of picking
up

RMG export, though stood test of time, is yet to
receive boost as apparent from the impending
decision on GSP and European Union tilt for a
general consensus among the political parties.
Annual Report 2013
33

Government decision to build mighty Padma Bridge
with own funds may induce heavy Government
borrowings consequently impacting the liquidity in
the market.
But, we have reasons to draw inspirations from our
past and the strong fundamentals on which the bank
stands. The bank has worked to instill the spirit of
combating challenges, accordingly capacity building
has been done, therefore, it could be said with
conviction that skilled workforce of the bank coupled
with appropriate policy guidelines from the Board of
Directors, challenges will be overcome and our eyeing
forthenextlevel shall turn into a reality.
Note of appreciation
I had intended to touch upon many more subjects but
as they have been attended in different sections of the
Annual Report, I leave it to you to peruse them.
Therefore, before concluding I like to acknowledge and
thank a number of people and bodies for contributing
towards banks respectable position despite the odds.
First of all, I like to extend sincerest thanks to our
valued shareholders for their continuous support
and inspiration. My deepest gratitude goes to our
Regulators specially the Bangladesh Bank for their
guidance and advice without which bank might not
have achieved consistency in performance.
I also like to thank our external auditors for carrying
out the auditing task professionally and advising us
on the compliance as per practice of the International
and Bangladesh Accounting Standards. Continuous
appreciation of banks presented accounts by the local
& international forums bears the testimony of their
guidance.
I also like to thank all my colleagues in the Board of
Directors, the Management along with entire workforce
of the bank particularly the team associated with the
hard work of bringing out this voluminous Annual
Report of the year- 2013.
With the hope that our endeavor of eyingforthenext
level is materialized, we look forward to a brighter and
rewarding two thousand fourteen.
Md.NaderKhan
Chairman

ii
Managing Director & CEOs Round up
Annual Report 2013
35
Despite economic turmoil, Prime Bank has been always
focusing on the core fundamentals i.e., strengthening
financial statements, ensuring stability and heightening our
growth in a safer way. There was a strategy to focus on our
stakeholders: depositors, lenders, borrowers, shareholders,
employees and the environment. We continued to pursue
the strategy outlined in November 2012, announcing the
expansion of local and foreign network, maintaining
adequate liquidity, strengthening internal control and
recording underlying revenue growth in the major
faster-growing regions. Our strategy have been founded on
a clear sense of purpose to be where there is growth,
connecting customers to opportunities and enabling
businesses to thrive, economy to prosper and individuals to
realize their ambitions. This has given us clear parameters
around the way that we behave and conduct business and
where and how we compete. Since 2012, we have created
a consistency with strong governance and in 2013, we
continued to execute our strategic priorities to grow,
restructure and simplify PBL.
Global Economic Scenario
The world economy has entered into another transition.
Advanced economies are gradually strengthening. At the
same time, growth in emerging market economies has
slowed. This confluence is leading to tensions, with
emerging market economies facing the dual challenges of
slowing growth and tighter global financial conditions. The
U.S. economy remains at the center of events. Private
demand continued to be strong, although growth has been
hobble by excessive fiscal consolidation. The core
economies of Europe showed some signs of recovery. This
is the result not of recent major policy changes but of a
change in mood, which nonetheless could be largely
self-fulfilling. Progress on improving competitiveness and
increasing exports is not yet strong enough to offset
depressed internal demand. Economics have spurred the
recovery in Japan, but sustainability will be challenging.
The recent turbulence in financial markets underscores the
need for structural reform to sustain growth. Priority areas
include foreign direct investment, industrial diversification,
infrastructure and human capital, fiscal consolidation, and
social protection. Governance is another key area for
reform.
In spite of stringent global economic conditions,
Bangladesh economy showed its resilience amidst global
downturn registering 6.03% GDP growth against 4.7
percent as average for Developing Asian countries. One of
the key factors underlying our ability to have done so is the
successful controlling of point to-point inflation to a single
digit. The central bank is expected to adopt measures to
contain inflation but also ensure adequate credit flows to
maintain steady economic growth. Money supply growth
was below Bangladesh Banks program target, even as
banks net foreign assets rose sharply. The reason was
growth in credit to the private sector languishing far below
target as political uncertainty deterred investment.
Bangladesh Taka (BDT) has strengthened against the US
dollar since early 2013, reflecting the large balance of
payments surplus.
Financial Highlights
Prime Banks performance was, at its core, a reflection of
the macro and micro economic factors as well as changes
in the regulatory framework in 2013. We have built a
stronghold balance sheet that gives us the platform to
accelerate business growth. Operating profit of the Bank for
the year 2013 stood at Tk. 7,474 million compared to Tk.
8,551 million in 2012. The result was satisfactory
considering the political and economic turmoil, which led to
reduced demand for loans and the tightening of credit
policy due to some unfortunate scam in the banking sector.
Our aim has always been to focus on our fundamentals -
strengthening the Balance Sheet, ensuring stability and
maintaining a strong current and savings account base.
Profit before tax of the Bank was at Tk 3,445 earnings per
share were at Tk 1.78, and capital adequacy ratio was
12.04% at the end of the year. The total assets amounted to
Tk. 243,869 million as on December 31, 2013 registering
an increase of Tk. 7,036 million.
The major increase in asset was a record and the
aggregate investment portfolio grew by Tk. 11,078 million in
2013 that is by 24%. The ratio of non-performing assets to
total assets was at a reasonable limit of 5.09 percent, which
is much lower than the industry average of 12%. The Bank
maintained an impressive capital adequacy of 12.04
percent (12.03 percent on consolidated basis), well above
the stipulated rate of 10 percent.
Key Business Drivers and Strengths
The bank is driven by key business areas, namely
Corporate Banking, SME & Retail Banking and Islamic
Banking. These are competently supported by other
functions such as Operations, IT, R&D, Marketing, HR,
Procurement, Risk Management, Compliance, Internal
Audit and Financial Administration etc. In addition, the
global subsidiaries- Prime Exchange Co. Pte Ltd.
Singapore, PBL Exchange (UK) Limited, PBL Finance
(Hong Kong) Limited; and our local subsidiary Prime Bank
Investment Limited (PBIL) and Prime Bank Securities
Limited (PBSL), played a commanding role in the
performance of 2013. High on our list of strengths are our
growing customer base, our highly trained and motivated
staff, our superior technological platform, IT driven
processes and our highly developed work ethic and culture.
Prime Bank has always been a very customer centric Bank
maintaining the highest levels of engagement with its
customers. This was reinforced by the highly visible
initiatives taken to make our services more accessible and
convenient. Our channel expansion and subsequent
presence within top tier supermarket chains has
significantly enhanced accessibility and convenience in
respect to the customer. Likewise, our upgraded Internet
banking platform is extremely user friendly, a factor that will
aid in our efforts to promote its usage amongst more of our
customers. Both of these initiatives have made transacting
business with Prime Bank much easier. We are also
reinforcing the personal touch through more optimal staff
management and deployment whilst centralization and
automation frees up time at our branches to better serve
customers. Our footprint in the country has widened
considerably this year with 134 branches and 151 ATMs
plus online banking services. The Bank has also
strengthened infrastructure and enhanced productivity by
maximizing our IT capabilities and upgrading our risk
management system.
Economic Capital for Efcient Asset Management
In the wake of the global credit crisis, it is very important to
implement the concept of economic capital, which will act
Annual Report 2013
36

as a safety cushion for the bank. Still reeling from the effect
of unanticipated losses, a large number of banks are now
struggling to conserve and manage capital. In 2013, credit
risks continued to be ferment and fuelled in driving up
market volatility. In such a market, the capability to manage
the banking business in a risk-sensitive economic capital
framework becomes necessary. Bankers have had no other
choice but to reallocate or even reduce their portfolios. We
are carefully considering the potential unexpected losses,
thus bringing up the concept of economic capital that is
associated with each individual activity to minimize the risks
of the Balance Sheet and safeguard the interest of the
stakeholders.
Slowdown in the economy along with political turmoil is
primarily responsible for bad loans of banks forcing them to
raise more capital to meet the regulatory norms that
prescribes high levels of capital. Overall banking sector
witnessed a tough time with gross Non-Performing Loans
(NPL), which spiked at 12 per cent of total loans by the end
of 2013. Sluggish economic growth and high interest rates
are being touted as primary drivers for rising bad loans and
if the economic scenario continued there would have been
no doubt that asset quality would suffer further. In ensuring
asset quality, we have restructured our business operations
in a full-fledged manner, which includes proper
documentation, central disbursement, better monitoring
and control over the assets and the operation of Credit
Administration Division (CAD) implemented. With the
whole-hearted and integrated effort of the employees, we
could achieve better results as the classified loans were
5.09% of total portfolio, which is significantly lower than the
industry average.
Well-maintained Capital Adequacy Ratio
In maintaining adequate capital against overall risk
exposure of the Bank, our guiding philosophy has been
to strengthen risk management and internal control.
PBLs regulatory capital as on December 31, 2013 stood
at Tk. 26495.44 million. Whereas, the Capital Adequacy
Ratio (CAR) was 12.04% under Basel-II, as per Central
Banks minimum capital requirement of 10.00%.
Strong Deposit Base
We work for increasing savings to contribute towards
countrys economic development. We have introduced a
new deposit product named My First Account for students
that has received wide response from the young generation.
The Bank always stressed upon maintaining efficient
deposit mix. Customer deposits of the bank have been
growing substantially. The growth was supported by branch
network, innovative IT based products and superior services
along with liability campaigns carried out throughout the
year. As a stable funding base, scheme deposits continued
to rise resulting in a growth of 20 percent.
Asset and Liability
We continued to have a firm grip on the levers of risk, cost
and investment, and using our balance sheet strength to
increase the financing support to our customers. Deposit
increased by Tk 19,854 million during 2013 with an
impressive growth rate of 11 percent. We maintained a well
diversified Loans & Advances portfolio and at the same
time continued to take the conservative approach to
manage the balance sheet, maintain a strong liquidity
position and keep a watchful eye on asset quality given the
uncertainties that remain in the external environment.
Retail deposits were mobilized by providing competitive
and superior products while corporate deposits have been
collected with corporate deposit campaign. Thus, high cost
of fund has been managed with adequate focus on no and
low cost fund. Thus, sector wise the Bank maintained
optimum exposure with due concentration on SME and
Retail assets. The Bank adequately diversified its
investment through project finance, SME and Retail. Funds
under Corporate, SME and Retail stood at Tk 115.71 billion,
18.65 billion and 12.14 billion respectively.
Islamic Banking
Islamic Banking products and services based on Islamic
Shariah introduced by us through five Islamic banking
branches got remarkable response from a considerable
portion of its clientele who are eager to accept Shariah
compliant products and services. We enjoy a very strong
brand image in the banking sector and the bank has a very
good market reputation. The bank identifies all of its Islamic
Banking activities by adopting a generic name Hasanah -
the brand name for Islamic products and services of the
bank, which has been used in the Quran and the Hadith to
denote good deed, welfare, virtue, beauty spot etc. The
strategy to launch Hasanah brand has proved to be a good
move and the Islamic banking business is growing at a
competitive rate despite various limitations for its
expansion. Besides, the bank signed memorandum with
Hajj Agencies Association of Bangladesh (HAAB) where
agencies under HAAB across the country will use Prime
Banks online banking facility to collect the subscriptions of
the Hajj Pilgrims for their Hajj and other related expenses in
Saudi Arabia. Prime Bank is an active member of Central
Shariah Board for Islamic Banks of Bangladesh and
Islamic Banks Consultative Forum.
Branding & Public Relations
With the facilitation of the sponsored national and
international events, fairs, exhibitions and conferences, the
image of Prime Bank was upheld and brought new
dimensions. We have developed annual comprehensive
strategic marketing plan for corporate branding and product
groups. The banks phenomenal performance has reflected
not only in its financial performance but also with honors
and awards on local and global fronts. Global Finance is
the world-renowned financial magazine that focuses on
market insights and intelligence. PBL achieved the Best
Bank Award 2013 from Bangladesh in the category of
Worlds Best Emerging Markets Banks in Asia-Pacific
2013. The recognition of Global Finance as best bank in
Bangladesh is a significant achievement for Prime Bank.
The bank retained its image by receiving ICMAB Best
Corporate Award consecutively four times in arrow.
Furthermore, the bank proved its strict adherence to
regulations and disclosure by winning The Best Presented
Annual Reports for Corporate Governance Disclosure
2012 from the prestigious SAFA (South Asian Federation
of Accountants). In addition, the bank also received 13th
ICAB National Award for Best Presented Annual Report
2012 in Private Sector Banks and SAARC Anniversary
Award for Corporate Governance. Furthermore, 2014
started with NRB Remittance Award 2013 for our
contribution towards inward remittance. These awards will
enhance the reputation and accessibility in global financial
markets and facilitate international trade of the bank.
Annual Report 2013
37
Information Technology
We must keep innovating to offer our customers with new
and better solutions, cut costs and reinforce risk
management as staying committed to the goal of delivering
excellent banking services requires continuous
improvements in technological platform. It is the
combination of technology and banking knowledge that can
redefine the competitive landscape of the banking industry.
In an inherently digital industry, it is essential to embrace
technology-driven innovation in order to flourish. We have
invested on technological advancement to increase
automation of our back-end systems like Credit
Administration and Trade Services to drive down
transaction costs and to improve service quality and
resilience. As a result, our operations cost/income ratio
would decline consistently, whilst staff productivity would
rise gradually in the near future. We are also investing in
underlying data management systems, which is critical for
seamless management and vital for managing the risks.
Besides, accelerating innovation to make the bank more
accessible and easier to use through online, reducing
dependency on ATM booths by increasing acceptability in
the POS networks, mobile and SMS banking are the prime
challenges. Meanwhile, we have started Cash Back
Services for the debit cardholders, which has been
facilitated with the help of retail merchants throughout the
country. We have come a long way in Internet banking i.e.
Altitude which received acceptance from all corners of the
financial sector. This is the first ever truly real time fund
transfer facility without even going to the branch. Moreover,
the banks core banking software Temenos T24, which is an
excellent technology platform fine-tuned to achieve further
efficiency in its operations. In order to provide prompt
service to the valued customers our best efforts were given
on automation, developing procedure and reducing manual
operations. We had the privilege to launch JCB Debit Card
in Bangladesh for the first time as no other Bank has
officially issued this card yet.
Financial Inclusions and Diversication
Financial Inclusion remains a necessity for providing
access to financial services to all the unbanked and
under-banked people in a fair, transparent and equitable
manner at an affordable cost. Financial services include,
inter alia, credit delivery to micro and SME enterprises,
agricultural and other rural and urban farm and non-farm
productive activities. There has been a greater emphasis
on providing services to rural customers by enforcing a 1:1
rural - urban new branch ratio, which reflects in a larger
share of rural deposits and loans to rural areas.
Bangladesh Bank is planning to set up a Tk. 2 billion
refinancing facility to provide small loans to the
lower-income rural households, who have set up ten-taka
accounts. It will be implemented through Micro-Finance
Institutions starting from 2014. Close monitoring of SME
and agricultural credit has helped to ensure that these
loans are going to the intended clients and having their
desired impact. 117 conventional and 17 SME branches
were added to increase Primes foothold all over the
country. In 2014, PBL is going to open 10 branches as per
the approval of the Central Bank considering the economic
and business potentials in accordance with comprehensive
feasibility study.
Environment-friendly Banking
We have incorporated sustainability principles into
day-to-day activities of the bank. Our aim is to do best to
ensure that the credits we extend to our customers are
utilized for environmentally sound and sustainable
purposes. As per Environmental and Social Risk Policy, i.e.
Environmental Blueprint of the bank approved by the
Board, all business units must recognize the social
concerns and impact on the environment caused by their
customers before taking business decisions. Green
banking considers all the social and environmental factors
along with financial priorities with an aim to protect the
environment as well as to foster the economic development
in a more environment friendly way. It covers a multitude of
areas from a bank being environmentally friendly to how
their money is invested. To reduce carbon emission, green
house effects, dependency on traditional energy, natural
gas as well as reduce the environmental degradation, PBL
has established a separate cell called Green Financing
Cell for financing under refinance scheme of Bangladesh
Bank to set up of Effluent Treatment Plant (ETP), Bio-gas
Plant, Solar Energy (i.e. Solar panel, Solar home System,
Solar mini Grid, Solar irrigation pumping system, Solar PV
Assembly plant), Water Electricity Plant, PET bottle
reprocessing plant, Hybrid Hoffman Kiln (HHK) etc. The
Green Banking Cell (GBC) have been formed with the task
of developing policies, products, planning, reporting to
management and Bangladesh Bank and overseeing the
overall green financing activities of the bank.
A Clear Purpose on Investment in People
Prime Bank always gives the highest focus on the right
placement of its prime resource - human resources. The
bank believes in certain core values as practiced by all
employees to meet the mission and the broader vision of
the organization. We strongly believe human resources are
the greatest assets and recognize them as building blocks
of the banks performance. Recognizing Service
Excellence as the prime differentiator in a market of
homogeneous products and services, we continued to
invest in people to enhance and upgrade their skill sets
through various training programs at home and abroad. To
ensure long-term sustainability, PBL is relentlessly pursuing
its vision to transform the human resources into human
capital. Diversely talented, motivated and engaged
employees have always been our key assets. The Bank
has been maintaining a highly favorable employer image by
creating a performance-driven rewarding work culture;
where employees receive plenty of opportunities to realize
their diverse potentials fully as well as benefit the
organization by demonstrating value creating behaviors.
The Recruitment & Selection team works dedicatedly as
per organizations best fit philosophy to fill up the
vacancies and ensure that the additional human resources
are being assessed, selected and placed on time as per
required competencies. In most part of 2013, our 2,710
employees worked together to make possible the
technological advancement, expansion and modernization
plan that were set for achievement. Our efforts are focused
on the delivery of quality services in all areas of activities
with the aim to add increased value to shareholders
investment and offer highest possible convenience and
benefits to our customers. I am content that the sewing
together of, firstly, our banks vision and, secondly, the
strategies along with the KPIs and roll out plan of the
Annual Report 2013
38

models-occurred one after the other in a natural succession
flow, giving the employees readiness to the changes.
Contribution towards the society as a whole
As per corporate sustainability, Prime Bank was focused on
following specific key areas namely, nation building,
enhancement of market place, promotion of the work place,
support to the community and protection of the
environment. The bank has been delivering sustainable
profit growth for the long-term benefits of our stakeholders,
building sustainable customer relationships and
demonstrating that our business contributes to the
environment, social and economic well-being of the world at
large. These activities involved not only of financial
assistance but of also highlighting our role as highly aware
corporate entity contributing towards community as a whole.
The Prime Bank Foundation has taken exemplary strides,
which have proved our mission of making a difference. The
Foundation has established 67 eye camps, which are
facilitated with qualified eye surgeons. Besides, voluntary
blood donation, financing of Formalin Dehydrate Machine at
Banani Kitchen Market, medical camp at Biswa Iztema and
distributing blankets to underprivileged people suffering
from winter- are some of the major contributions towards the
society. Furthermore, PBL sponsored BPL 2013, which is
the biggest T20 Cricket Tournament of the country.
Economic Outlook
Whilst the operating environment for financial institutions
remains difficult, our core business will continue to reap the
benefit of recovering economic growth and its positive
impact. GDP growth in FY2014 is projected at 5.8%, as
exports and consumer and investment demand fall short of
expectations. The central bank has expected to adopt
measures to contain inflation but also ensure adequate
credit flows to maintain steady economic growth. The key
challenges are to boost private investment and maintain
macroeconomic stability.
Refreshing our Strategic Priorities
2014 will be a challenging year yet our firm commitment
towards excellence with outstanding operational efficiency
will make the bank stronger, set examples for others to
follow and create positive differences. Sustainable
business growth, dynamic and talented human capital
driven by values, excellent risk management, and
involvement of mid level management in decision-making
process will surely command some key strength for Prime
Bank. We believe that, as long as we adhere to the right
development strategy, take pro-active actions and forge
ahead determinedly, 2014 will be full of hopes and
harvests. Few of the major tactical and strategic moves that
have been chalked out to drive for the current year are:
l
Diversify loan portfolio to avoid excessive concentration
to particular sectors as well as to invest funds in the
productive sectors
l
Grow business in SME and Retail portfolio at least by
35%
l
Implement Economic capital framework to derisk the
Balance Sheet for the potential associated unexpected
losses
l
Greater emphasis to serve unbanked and under-
banked population of the country
l
Allocation of capital through customer account review
and transaction analysis upon determination of Risk
Adjusted Return on Capital (RAROC)
l
Strengthen Information Technology to ensure security of
technology and enable safer banking service to
customers
l
Monitor and strengthen recovery drive to bring down the
NPL below 3% to maintain asset quality at standard
level
l
Formation of Head line Business Banking Team to
provide priority service to our valued customers to
ensure better services with maximum satisfaction for
more business
l
Launch Monarch Priority Banking Services to high net
worth individuals
In summary, we have started the year with very good
momentum and an exceptionally strong balance sheet. In
addition, the bank has worked hard to instill the spirit of
combating challenges and accordingly there were a lot of
capacity building activities. I feel reenergized having the
knowledge of the probable weakening conditions; this
knowledge will help up fight better in the challenging times.
With a good team as the grandest arsenal, I am hopeful
about a brighter future for this institution.
I acknowledge the contribution of our stakeholders, the
prudence and guidance of our very capable and qualified
Board of Directors who have been supportive and regularly
been taking good care in seeing through our speedy
implementation. I would like to show my sincere gratitude to
the Central Bank for framing time befitting and
business-friendly policies, guidance and supports. I am
also thankful to our customers for their continuous support
and unwavering confidence in us.
Md. Ehsan Khasru
Managing Director & CEO

Directors Report
The Board of Directors of Prime Bank Limited has the
pleasure of presenting the 19th Annual Report and Audited
Financial Statements for the year 2013 together with the
Report of the Auditors to the shareholders. A brief overview
of the world market trend with the performance of
Bangladesh Economy has also been provided in this
Report. A review of this report would reveal continuous
growth of the bank in a stiff competitive environment.
Global Economy
The world economy is still struggling after the onset of the
global financial crisis. The World Bank and IMF estimated
the global GDP to grow by 2.5 percent in 2013.
High-income economies are going to be the main driver of
global growth where activities have been low for quite a few
years and the growth in United States has been very
steady. The higher growth in High Income economies was
the sudden growth in demand for higher inventory. Global
growth shows that there are signs that a self-sustaining
reclamation has begun among high-income countries,
proposing that they may now join developing countries as
a second engine of growth in the global economy. The
third-quarter improvement in global growth was partly due
to the higher inventory demand and an export rebound
growth in developing countries also helped. Activity in the
euro area has started to be smoother than before, and is
slowly moving from recession to recovery. In Japan, there
was a depreciation of the currency, which caused exports
to have increased, which boosted the overall growth of the
country.
In the Euro Area much has been achieved, and banks have
gone a long way toward restructuring themselves, but
long-term unemployment is still a factor which will slow
down recovery in the area. High Income economies have
become a second basis for global growth along with
developing economies. The stronger high-income growth
and import demand will be an important support for
developing countries' exports, which will help the overall
global growth.
In the United States, the rise in 2014 will be maintained by
final domestic demand supported in part by a decrease in
the fiscal drag as a consequence of the latest budget
agreement. The US was hindered by higher long-term
interest rates, fiscal uncertainty, and the government
shutdown but fortunately these factors did not derail the
recovery. A bounce back in consumer and business
sentiment in the fourth quarter, reflected in rising
household spending, industrial output, and employment
gains, shows continued strengthening in growth after a
strong acceleration in the third quarter. One of the main
advantages for the US economy is that the general
government deficit has come down significantly, mainly
through heavy spending cuts and rising tax revenues.
Strengthening growth in the United States has encouraged
the Federal Reserve to begin decreasing the support it
supplies to the economy from January 2014. The steady
stabilization of U.S. monetary policy is long-awaited as it
shows progressively substantial signs that a
self-supporting recovery is now underway.
Growth advancement is anticipated to be particularly
subdued in East Asia and the Pacific, as economies in
these regions have already healed from the crisis and are
increasing at close to potential. In the East Asia and Pacific
region, GDP growth is projected to remain smooth at about
7.17.2 percent, partly reflecting a trend slowing of growth
in China as it rebalances its economy.
In South Asia, slower growth in Indiafollowing a few
years of increasing inflation and current account
deficitshas created a large negative output gap, which is
anticipated to steadily close as the economy gradually
recovers. Better Indian performance will be heavily
reflected in the regions growth, which is expected to
strengthen from 4.6 percent in 2013 to 5.7 percent in 2014.
Growth in South Asia was subdued compared to average
growth over the past decade, reflecting a combination of
domestic discrepancies and a vulnerable external
environment. Regional exports and industrial activity
experienced a cyclical recovery in the third quarter, which
was reflected both in improving external demand and
currency devaluation in India. Despite the improvement,
regional industrial activity for the year was weak,
increasing an estimated 1.5 percent. Lower international
commodity prices facilitated to ease inflation in Sri Lanka,
but inflation remains high in India and has recently
increased in Bangladesh. Remittances grew an estimated
6.8 percent in 2013while India was the largest
beneficiary by size, movements were more significant for
Bangladesh, Nepal, Pakistan, and Sri Lanka as a share of
their GDP.
Bangladesh Economy
The Bangladesh economy achieved growth of 6.03 percent
during the year despite the political unrest in the country.
Strong foreign remittance and export growth along with
slow-moving import growth and the slackening in the
private sector credit growth have caused the economy to
slow down a little for the year 2013. Overall the Bangladesh
economy has been performing well in the South Asian
region.
One of the attributes to a slower growth for the country was
due to the slow agriculture growth in 2013. The agricultural
growth was only 2.17 percent in 2013, compared to 3.11
percent in 2012.
The Industry sector growth was better than last year, rising
to 8.99 percent in 2013 from 8.90 percent in 2012. The
growth was largely due to the faster growth in the
construction and small scale industries. The construction
sector increased to 8.05 percent from 7.57 percent and the
small scale industries improved to 6.76 percent from 6.45
percent in 2013.
The service sector was affected mostly due to political
unrest in the country, which caused growth to fall to 5.73
percent from 5.96 percent in 2013. The largest decline in
the sector came from land transport, wholesale, retail
trade, health and social work which were due to the political
turmoil. The disturbances in transportation and average
pace of activities caused a large toll on services
The average annual inflation measured by 12-month
average basis decreased to 7.53 percent in FY13 from
10.6 percent in FY12. The decline in inflation reflects a
drop in food and non-food prices. Softer international
Annual Report 2013
39
prices facilitated to condense food inflation. Improved
production, decreasing demand from large importers, and
growing food stocks in international markets applied
downward pressures on international prices. However, the
point to point basis inflation for food items as on December
2013 rose to 9.0 percent and point to point inflation for
non-food items were 4.88 percent..
Export earnings recorded growth of 10.7 percent whereas
import payments grew by 0.8 percent only. Export earnings
picked up steadily as the year progressed and demand
rose for the low-end garments made in Bangladesh.
Although the garments industry was affected by political
unrest and catastrophic accidents, it still is the main force
for export earnings for Bangladesh. Worker remittances, a
major source of foreign exchange, grew by 12.6 percent in
2013 due to large employments of Bangladeshi workers
overseas in 2012. Remittances escalated sharply from
Saudi Arabia, the United Arab Emirates, Oman, and
Malaysia.
Performance of PBL
The bank maintained satisfactory growth of asset and
liabilities inspite of all challanges during the year 2013.
Trade finance and other ancillary businesses recorded
considerable growth inspite of all odds and economic
turmoil. The bank further expanded its branch network and
alternate delivery channels. New IT based products and
services were introduced.
Business Review
PBLs vision, mission, corporate philosophy, strategic
priorities and corporate conduct are given in the beginning
of the report. In achieving banks vision, mission and
strategic priorities, the highest level of ethical standards
are maintained.
Brief History of PBL
PBL started its journey in the year 1995 with the firm
commitment of excellence in customer service with a
difference. Its vision remained to be the best private
commercial bank in Bangladesh in terms of efficiency,
capital adequacy, asset quality, profitability along with
strong liquidity.
PBL formally launched its business in April 1995 with one
branch at Motijheel Commercial Area, Dhaka. It started its
Islamic banking operations in December of the same year.
It was listed with both the bourses of Bangladesh viz.
Chittagong Stock Exchange and Dhaka Stock Exchange in
1999 and 2000 through initial public offering.
PBL became primary dealer for buying and selling
securities under the license issued by Bangladesh Bank in
2003.
With the aim to offer innovative banking service to the Non
Resident customers, PBL opened its first Offshore Banking
unit in 2007 at DEPZ, Savar, a new dimension in its
customer friendly business activities. The bank opened two
more Offshore Banking Units at CEPZ, Chittagong and
Adamjee EPZ, Narayangonj.
It was registered as a Merchant Banker with the
Bangladesh in 2001 for starting its Investment Banking
and Advisory services. As per directives of the
Bangladesh Bank, PBL converted its Merchant Banking
and Investment Division (MBID) into a subsidiary in the
name and style "Prime Bank Investment Ltd." in 2010. With
a view of business diversification in mind, the bank also
established another subsidiary company in the name and
style "Prime Bank Securities Ltd." to provide brokerage
services in the stock market.
PBL has also expanded its services cross border with a
view to providing banking services globally. It opened its
first fully owned subsidiary- Prime Exchange Co. Pte Ltd. in
Singapore, which started its operation from July 2006 to
offer remittance service to Bangladeshi Nationals living in
Singapore. This is the first ever fully owned Exchange
Company of a Private Sector Bank of Bangladesh
established in Singapore with the approval of the
Bangladesh Bank and the Monetary Authority of
Singapore.
With permission from the Bangladesh Bank and
registration of Financial Services Authority, UK, another
fully owned subsidiary of PBL, Prime Exchange (UK)
Limited, started its operation from August 2010 in the UK
along with its three branches in London, Birmingham and
Manchester. The company is engaged in remittance
business.
PBL Finance (Hong Kong) Limited, a fully owned
subsidiary of PBL started its operation in September 2011.
The main functions of the subsidiary are to advise,
negotiate, confirm and provide discounting facilities against
LCs originating from PBL and other banks in Bangladesh.
The company also handles remittance business.
At present, the bank has been working with 134 branches
including 17 SME branches. The introduction and
expansion of ATM network, Internet Banking, SMS
Banking, Phone Banking, Mobile Banking, Biometric Smart
Card and KIOSK ushered a new era and PBL is now well
poised towards sustainable development.
Principal Activities
The principal activities of the bank are banking and related
businesses. The banking businesses include deposits
taking, cash withdrawal, extending credit to corporate
organizations, organizing syndication deals, retail and
SME financing, trade financing, project financing, lease
and hire purchase financing, credit cards, remittance
services etc. The mode of banking includes conventional
and Islamic banking. The services are provided through
both traditional and modern IT based products. The bank
performs investment banking and advisory services
through Prime Bank Investment Limited and brokerage
services through Prime Bank Securities Limited. Banks
subsidiaries at Singapore and UK are engaged in providing
remittances facilities to expatriate Bangladeshis. PBL
Finance (Hong Kong) Limited advises, negotiates,
confirms and provides discounting facilities against LCs
originating from PBL and other banks in Bangladesh. The
company also handles remittance business. 3 (three)
Off-shore Banking Units offers banking services involving
foreign currency denominated assets and liabilities.
Strategic Plan
The strategic priorities and actions plans as stated in the
banks Strategic Plan (2012-2014) are stated below:
Annual Report 2013
40
Maintain strong capital base by expediting borrowers
rating, concentrating on lending portfolio having lower
capital charge, strengthening Internal Capital Adequacy
Assessment Process (ICAAP)
Continuation of diversification of credit portfolio in
corporate exposure, emphasize on retail, SME and
agricultural loan, address gender issue by providing
loans to women entrepreneurs in SME segment and
emphasize on geographical diversification
Improvement of deposit mix by maintaining efficient
deposit mix, increase share of low cost and no cost
deposit in total deposit, increase non-funded business
Maintain adequate level of liquidity through minimizing
asset-liability mismatch and recovery of past due loans
Diversification of products and services by introducing IT
based innovative products and alternate delivery
channels
Increase share of inward remittance by expansion of
existing exchange houses, opening of new exchange
houses, increase in domestic network for the
beneficiaries through strategic alliance, development of
new products for the NRBs
Increase non-funded (non-interest fee based) income
Extend banking services to un-banked and under
banked people for inclusive growth
Innovative approach in dealing with complex and large
transactions / fund requirements with strategic alliance
Improve internal governance through strengthening
good corporate cultures, motivation, training and
supervision as per KPIs in all levels of management
Strengthening internal control and monitoring
Conduct BPR (Business Process Re-engineering) in
different functional areas to improve efficiency and bring
in required structural change
Improvement of IT infrastructure in order to develop new
IT based products and services
Integrated marketing effort by creating a
customer-orientated culture, Brand archaeology study
(in-depth research for brand strategy development),
Brand Repositioning and extensive marketing for
branding Hasanah
Development in Human Resources Management
System to motivate and retain the Human Resources
and transform Human Resources to Human Capital
through proper training in every aspects of working area
Cost optimization at all levels of operation by ensuring
budgetary control
Expansion of activities related to Corporate Social
Responsibility and Green Banking
The bank has been working as per the above stated
Strategic Plan and a lot of developments have taken place
which are emphasized in different chapters of this Annual
Report.
Review of Operations, Products and Services of PBL
Review of operations along with products and services of
the bank has been given in Management Discussion and
Analysis, and other chapters in this report.
Offshore Banking
PBL has been offering Offshore Banking facilities through
3 (three) Offshore Banking Units (OBU) located in Dhaka
Export Processing Zone (DEPZ), Chittagong Export
Processing Zone (CEPZ) and Adamjee Export Processing
Zone (AEPZ). The total loans and advances of three OBUs
reached to USD 77.81 million equivalent to Tk 6,050
million as on December 31, 2013 compared to USD 61.30
million equivalent to Tk 4,895 million as on December 30,
2012 recording a growth of 24 percent. During the year
2013, OBUs made operating profit of USD 1.43 million
equivalents to Tk 111.86 million as against USD 1.84
million equivalents to Tk 150.32 million in 2012 with a
negative growth of 26 percent.
Prime Bank Investment Limited
PBL was registered as Merchant Banker with the
Bangladesh in 2001 for starting its Investment Banking and
Advisory services. As per directives of the Bangladesh
Bank, PBL converted its Merchant Banking and Investment
Division (MBID) into a subsidiary in the name and style
"Prime Bank Investment Ltd." in 2010. During the year
2013, the company made operating profit of Tk 168.52
million as against Tk 432.91 million in 2012.
Prime Bank Securities Limited
"Prime Bank Securities Ltd." was established to provide
brokerage services in the stock market. During the year
2013, the company made operating profit of Tk 26.18
million as against Tk 48.10 million in 2012.
Prime Exchange Co. Pte. Ltd., Singapore
The company operates with two branches in Desker Road
and Jurong East complying with the regulations of both
Bangladesh Bank and Monetary Authority of Singapore
(MAS). Growth in business of the company was possible
due to marketing efforts, personalized service, efficient
service platform under RemitFast software and
enhanced distribution network. The company significantly
expanded business in 2013. Total volume of remittance
was SGD 89.80 million in 2013 compared to SGD 82.56
million in 2012, showing growth of 8.77 percent. The
company made profit before tax of SGD 99,795 in 2013
compared to SGD 141,836 in 2012.
PBL Exchange (UK) Limited
The company has been operating with three branches in
London, Birmingham and Manchester. The business
volume has marked growth despite stiff competition. The
volume of remittance was GBP 23.78 million in 2013 which
was 20 percent higher than GBP 19.79 million in 2012. The
company incurred operating loss of GBP 33,697 in 2013
compared to operating loss of GBP 115,788 in 2012. The
subsidiary has taken some pragmatic steps for further
acceleration of business growth.
PBL Finance (Hong Kong) Limited
Total assets of the company reached to HKD 243.83 million
as on December 31, 2013 compared to HKD 119.69 million
on December 31, 2012. The company made a net profit
after tax of HKD 5.04 million in 2013 compared to HKD 4.32
million in 2012. The main functions of the subsidiary are to
advise, negotiate, confirm and provide discounting facilities
against LCs originating from PBL and other Bangladeshi
Banks. The company also handles remittance business.
Annual Report 2013
41
The company has been run by executive and officials
having diverse experience in foreign trade business both in
Hong Kong and Bangladesh.
Risk Management
PBL has always being in the forefront of implementing
different risk management tools and techniques. The Risk
of any banking institution may be defined as the possibility
of incurring losses, financial or otherwise. Banking
business is in fact a business of risk taking. So it is vital to
manage all these risks efficiently. In todays challenging
financial and economic environment effective risk
management is must for sustainable growth in
shareholders value. In banking arena, key risks include
credit, market, operational, liquidity, reputation risk and
other risks like strategic risk, concentration risk,
compliance risk etc. The risk management strategy is
based on a clear understanding of various risks, disciplined
risk assessment and measurement procedures and
continuous monitoring. Details of risk management are
given in the Risk Management Chapter of this Annual
Report.
Capital Management
Capital management of the bank is based on the objective
to maintain an adequate capital base to support the
projected business and regulatory requirement. This is
done by drawing an annual planned business growth
vis--vis capital requirement. PBL recognizes the impact of
shareholders returns on the level of equity and seeks to
maintain a prudent balance between Tier-I and Tier-II
capital. As per directives of Bangladesh Bank, the banks
are required to maintain capital at 10.00 percent of
risk-weighted assets under Basel-II. Tier-I capital should be
minimum 5 percent of total capital.
The banks capital fund is divided into two parts- Tier-I
and Tier-II capital. Tier-I includes the equity (paid-up
capital, share premium, statutory reserve and retained
earnings) and Tier-II includes general provision on
unclassified loans and advances, revaluation reserves,
unsecured subordinated debt and exchange equalization
account. Total consolidated capital fund of the bank
increased by Tk 896 million and stood at Tk 26,812
million during 2013. Tier-I capital grew by Tk 1,044 million
and stood at Tk 21,708 million during the year under
review. Total consolidated capital fund is equivalent to
12.03 percent of total risk weighted assets. More details
regarding capital management are given in the Market
Discipline- Disclosures on Risk Based Capital (Basel-II)
chapter of this Annual Report.
Human Resources
PBL is working with a vision of converting human resources
into human capital through appropriate knowledge, skills,
abilities and personal attribution. A healthy environment
has been created where employees enjoy working with
pride. Believing that the human resources are main
elements behind the success and future sustainability of
the bank, the bank is developing and motivating the
workforce with contemporary HR policies and attractive
benefits. The bank is not only offering a job but also a
learning, challenging and rewarding career.
Corporate Sustainability
In respect of corporate sustainability, PBL has focused on
following specific key areas namely, nation building,
enhancement of market place, promotion of the work
place, support to the community and protection of
environment. PBL established Prime Bank Foundation
and contributes 4 percent of net profit before tax (Tk 137.82
million in 2013) as donation to this foundation for
undertaking projects in health and education sector. Details
of activities of the foundation are given in Prime Bank
Foundation chapter in this report). Apart from the CSR
activities taken by Prime Bank Foundation, the bank
conducted various CSR activities during the year 2013,
details of which are given in Sustainability Report and
Green Banking chapters of this Annual Report.
The bank adheres strictly to the regulatory guidelines on
corporate governance. Disclosures on corporate
governance are provided in the Corporate Governance
Report chapter of this Annual Report.
Financial Analysis
Total Assets
Consolidated assets of the bank stood at Tk 245,522.65
million in 2013 as against Tk 238,169.05 million in 2012.
Total assets of PBL stood at Tk 243,868.80 million in 2013
from Tk 236,833.00 million in 2012 registering a growth of
2.97 percent. The increase in assets of PBL was mainly
driven by growth of customer deposits. The growth of
deposits was used for funding growth in credit and holding
of securities for SLR purpose and as a primary dealer. The
economy witnessed a satisfactory growth scenario in credit
and deposits mobilization.
Growth of Balance Sheet Items
Cash and Balance with Bangladesh Bank & its Agent
Consolidated position of the bank is Tk 17,665 million in
2013 as against Tk 16,187 million in 2012. PBLs position
increased from Tk 16,177 million in 2012 to Tk 17,643
million in 2013 depicting a growth of 9.06 percent. The
growth in deposits increased the Cash Reserve
Requirement of the Bank which is maintained with
Bangladesh Bank and its agent
Balance with other banks and nancial institutions
Consolidated position of the bank is Tk 1,088 million in
2013 as against Tk 1,718 million in 2012. PBLs position
decreased from Tk 1,644 million in 2012 to Tk 870 million
in 2013.
Investment
PBLs investment increased during the year by Tk 11,078
million and stood at Tk 56,940 million as at 31 December
2013. The bank purchased government treasury bills to
cover the increased SLR requirement. In addition, as a
primary dealer PBL had to buy government treasury bills
which were devolved by Bangladesh Bank.
2013 2012 %
Assets 243,869 236,833 2.97
Deposits 201,907 182,053 10.91
Loans & Advances 153,589 160,890 (4.54)
Growth of PBL
Taka in Million
Outstanding
Particulars
Annual Report 2013
42
Loans and Advances / Investments
Consolidated loans and advances/investments (credit under
Islamic Shar'iah) of the bank stood at Tk 159,010 million in
2013. Loans and advances of PBL was Tk 153,589 million
during 2013. Investment of Islamic banking branches was
Tk 12,612 million and with negative growth of 7.74 percent
during 2013. Outstanding loans and advances of off-shore
banking units was Tk 6,050 million showing a growth of
23.59 percent. Yield on loans and advances of PBL
increased to 15.17 percent from the level of 13.07 percent of
previous year due to increase of lending rates.
Concentration of loans and advances was well managed
and details of credit are given at notes to accounts no 7(a).5.
Ratio of nonperforming loan of PBL was 5.09 percent which
was much below the industry average of 12.00 percent.
Liabilities
Consolidated total liabilities (excluding equity) of the bank
stood at Tk 222,164 million in 2013 as against Tk 217,207
million in 2012. The total liabilities (excluding equity) of PBL
stood at Tk 220,839 million in 2013 from Tk 216,046 million
in 2012 registering a growth of 2.22 percent. The increase
in liability was mainly due to growth in deposits and
borrowings.
Borrowings from other banks, nancial institutions and
agents
The borrowing of PBL stood at Tk 3,858 million which
represents PBLs borrowing against PBL Bond, call
borrowing, repo of treasury bills and refinance against SME
loan from Bangladesh Bank. The borrowed amount was
mainly used for purchasing Treasury Bills/Bonds which
were devolved on the bank in excess of SLR requirement.
Deposits
The deposits of PBL grew by 10.91 percent in 2013.
Customer deposits of the bank grew by 11.11 percent. The
growth was supported by branch network and high
standard service provided to customers along with liability
campaign carried out by retail liability team for mobilization
of no cost and low cost deposits. Fixed deposits remained
the main component of deposits contributing 44.70 percent
of the total deposits. Interest cost of deposit increased to
8.80 percent as against 8.75 percent of the previous year
as a result of increase in rates of high cost term deposits
fueled by the liquidity position in the market. Scheme
deposits increased by 15.16 percent over the previous
year. The clientele group of the Bank was individuals,
corporation, NGO, NBFI, government bodies etc.
Shareholders Equity
Consolidated shareholders equity increased by 11.43
percent during the year. PBLs shareholders equity
increased by 10.79 percent during 2013. Paid-up capital
of PBL increased by Tk 936 million (bonus share of
2012) and stood at Tk 10,293 million during 2013. The
statutory reserve increased by Tk 689 million during the
year and stood at Tk 7,529 million. Distributable profit
stood at Tk 1,341 million during the year. The strong
growth in shareholders equity will help the bank to
expand its business.
Analysis of Income Statement of PBL
Taka in million
Sl No Particulars 2013 2012 % Change
Interest Income
PBLs interest income decreased by 3.55 percent during
2013. Interest earned from loan and profit earned on
investment remained the principal component of interest
income. Yield on loans and advances was 14.73 percent in
2013 as compared to 15.38 percent in the previous year.
Interest Expense
On the other hand, PBLs interest expense increased by
1.54 percent during 2013. Interest cost on deposits was the
main component of interest expenses whereas interest
cost on borrowings also had a significant impact in 2013.
Interest cost of deposits decreased to 8.53 percent in 2013
from 8.68 percent.
Net Interest Income
PBLs net interest income decreased by 19.94 percent
during 2013. Net interest income was the main contributor
to operating income, accounting for 34 percent followed by
investment income and non-interest income.
Investment Income
PBLs investment income consists of interest / discount
earned on treasury bills / bonds, gain on government
security trading, dividend received on shares and capital
2013 2012 2013 2012
Current & Contingent 27,406 27,975 (0.02) 15.12 15.37
Bills Payable 2,081 3,421 (39.17) 1.03 1.88
Savings 21,126 19,189 10.09 10.46 10.54
Special Notice Deposits 15,097 8,412 79.47 5.92 4.62
FDR 90,252 82,608 9.25 44.70 45.37
Scheme Deposits 45,945 40,448 13.59 22.76 22.22
Total Deposits 201,907 182,053 10.91
Growth
%
Mix (%)
Taka in Million
Outstanding
Deposits Mix of PBL
Types of Deposits
1 Interest income 22,011 22,822 (3.55)
2 Interest expense (17,678) (17,410) 1.54
3 Net interest income 4,332 5,411 (19.94)
4 Investment income 5,582 4,633 20.49
5 Non-interest income 2,968 3,447 (13.90)
6 Total operating income 12,883 13,492 (4.51)
7 Total operating expenses (5,409) (4,941) 9.47
8 Profit before tax and provision 7,474 8,551 (12.59)
9 General provision on loans (642) (240) 172.50
10 Provision for classified loans (2,980) (1,490) 102.01
11 General provision on
off-balance sheet items (10) (140) (92.86)
12 Provision for diminution in
value of investments (25) (44) (44.00)
13 Provision for OBU (362) - 100%
14 Other provisions (10) (1,302) (99.22)
15 Net profit before tax 3,445 5,335 (35.42)
16 Provision for tax including
deferred tax 1,616 2,636 (38.70)
17 Net profit after tax 1,829 2,699 (32.22)
Particulars 2013 2012 % Change
No.
Sl.
Annual Report 2013
43
gain from sale of securities of listed companies. Investment
income increased by Tk 949 million during the year
registering a growth of 20 percent over the previous year,
accounted for 43 percent of the operating income. Since
PBL is a primary dealer, securities were devolved by the
Bangladesh Bank in excess of SLR requirement. As such
interest/discount income became the main contributor to
investment income.
Non-Interest Income
Non-interest income of PBL increased by 5.82 percent
during the year. Commission and exchange based income
of the bank decreased by 11.28 percent during the year
due to fall in import business and lower spread between
buying and selling rates of foreign currencies.
Total Operating Income
Due to the reasons explained above, total operating
income of the bank decreased by 4.51 percent during the
year and stood at Tk 12,883 million.
Total Operating Expense
Total operating expenses of PBL increased by 9.47 percent
during the year mainly due to increase in personnel and
other operating expenses. To match with the growth of
SME and retail business and branch expansion a number
of manpower was recruited along with sales force. PBL
also made donation amounting to Tk 137.82 million to
Prime Bank Foundation to carry on various CSR activities.
PBL also focused on developing brand image and
increased promotional and advertisement expenses. This
strategy added value to the business. The banks cost
income ratio was 41.98 percent in 2013 which slightly
increased from 36.62 percent in 2012 due to increased
investment in branch expansion and development of IT
infrastructure. Considering the factors stated above, the
ratio indicates the satisfactory operating efficiency of the
bank as per the industry standard.
The productivity of the employee continued to grow which
is evident from the following ratio:
Taka in million
Provision for Classied Loans
The provision against classified loans increased during the
year due to change in loan classification and provisioning
policy by the Bangladesh Bank. Total provision against
classified loan was Tk 3,330 million during 2013 as against
Tk 1,490 million of previous year. Provision adequacy ratio
was 100 percent.

General Provision
Provision against unclassified loans was made to the tune of
Tk 642 million during 2013 as against Tk 240 million of
previous year. General provision requirement on off-balance
sheet outstanding had to be provided Tk 10 million as
against Tk 140 million of previous year. Provision against
unclassified loans of off-Shore banking units was made
Tk.12 million during the year. This is to be noted that general
provision is regarded as Tier-II capital of the bank and
provides safeguard against future default as well as
supports business growth by strengthening the capital base.
Adequate provision was made to the tune of Tk 25 million
for diminution in value of investment in shares arising from
the volatile capital market.
Other Provisions
Upon assessing the recovery prospects, the bank made
full provision against protested bills and claims
originated during the course of banking operations
amounting to Tk 10 million.
Net Prot before Tax
After making above provisions, net profit before tax of PBL
stood at Tk 3,445 million registering a negative growth of
35.42 percent due to higher provision requirement due
mainly change in loan provisioning policy by the
Bangladesh Bank
Provision for Income Tax
Provision against current year income tax of PBL was
Tk 1,616 million compared to Tk 2,636 million of
preceding year.
Net Prot after Tax
Net profit after tax stood at Tk 1,829 million registering a
negative growth of 32.22 percent during 2013. Earnings
per share decreased to Tk 1.78 as at December 31, 2013
from Tk 2.62 in the previous year. Average ROA and ROE
stood at 0.76 percent and 8.35 percent respectively.
Statutory Reserve
As per Bank Company Act 1991, 20 percent of profit before
tax is required to be transferred to statutory reserve. As
such an amount of Tk 689 million has been transferred to
statutory reserve.
Dividends
Thus fund available for distribution is Tk 1,341 million
(Tk 1,140 million from current year profit plus Tk 201
million from retained earnings of previous year). In order
to maintain a satisfactory capital adequacy ratio of the
bank, the Board decided to recommend 12.50 percent
cash dividend for the year 2013. Satisfactory capital
fund will enable the bank to increase business activities.
Remuneration of Directors
The Bank does not pay any remuneration to its Directors.
As per the BRPD circular no.09 dated 19/09/1996 that
the Chairman may be provided car, telephone, Office
chamber and private secretary. In addition to above,
Directors are entitled to fees and other benefits for
attending the board, EC, Audit Committee and Shariah
supervisory committee meeting. Managing Director is
paid salaries and allowances as per approval of the
Board and Bangladesh Bank.
Particulars 2013 2012
Income per employee 4.75 5.30
Expense per employee 1.99 1.94
Profit before provision per employee 2.76 3.36
Profit before tax per employee 1.27 2.10
Assets per employee 89.99 93.09
2012 2012
NPL ratio 5.09% 3.83%
Industry average of NPL ratio 12% 10.03%
Provision adequacy 100.19% 101.19%
Annual Report 2013
44
Adequate Accounting Records
The directors responsibilities also include maintaining
adequate accounting records and an effective system of
risk management as well as preparation of the
supplementary schedules included in these Financial
Statements. The directors have made an assessment of
the Banks ability to continue as a going concern and have
no reason to believe that the business will not be a going
concern in the year ahead.
Accounting Policy and Implementation of BAS/BFRS
Board of Directors are responsible for the preparation and
fair presentation of the Bank Annual Financial Statements,
comprising the statements of financial position at 31 Dec.
2013, and the statements of comprehensive income,
changes in equity and cash flow for the year then ended,
and the notes to the Financial Statements, which include a
summary of significant accounting policies and other
explanatory notes, and the Directors report, in accordance
with Bangladesh Financial Reporting Standards (BFRS)
and in the manner required by the Companies Act,1994.
The directors responsibilities include: designing,
implementing and maintaining internal control relevant to
the preparation and fair presentation of these Financial
Statements that are free from material misstatement,
whether due to fraud and error; selecting and applying
appropriate accounting policies and making accounting
estimates that are reasonable in the circumstances.
Internal Control System
Board of directors have the responsibility for approving
reviewing the overall business strategies and significant
policies of the bank; understanding the major risks run by
the bank, setting acceptable levels for these risks and
ensuring that senior management takes steps necessary
to identify, measure, monitor and control these risks.
Senior management have the responsibility for
implementing strategies and policies approved by the
board; developing processes that identify, measure,
monitor and control risks incurred by the bank; maintaining
an organizational structure that clearly assigns
responsibility, authority and reporting relationships;
ensuring that delegated responsibilities are effectively
carried out; setting appropriate internal control policies and
monitoring the adequacy and effectiveness of the internal
control system. An effective internal control system also
requires that an appropriate control structure is set up, with
control activities defined at every business level. These
include: top level reviews; appropriate activity controls for
different departments or divisions; physical controls;
checking for compliance with exposure limits and follow-up
on non-compliance; a system of approvals and
authorizations; and a system of verification and
reconciliation.
Standards of Reporting
The financial statements have been prepared in
accordance with Bangladesh Financial Reporting
Standards (BFRS) as adopted by The Institute of
Chartered Accountants of Bangladesh and applicable
provisions of the Companies Act, 1994. Managenment
accepts responsibility for the integrity and objectively of
these financial statements, as well as for various estimates
and judgments used therein. The estimates and judgments
relating to the financial statements have been made on a
prudent and reasonable basis, in order that the financial
statements reflect the financial operations of the Bank in a
true and fair manner.
Going Concern
Going concern is one of the fundamental assumptions in
accounting on the basis of which financial statements are
prepared. Financial statements are prepared assuming
that a business entity will continue to operate in the
foreseeable future without the need or intention on the part
of management to liquidate the entity or to significantly
curtail its operational activities. Therefore, it is assumed
that the entity will realize its assets and settle its obligations
in the normal course of the business. It is the responsibility
of the management of a company to determine whether the
going concern assumption is appropriate in the preparation
of financial statements. If the going concern assumption is
considered by the management to be invalid, the financial
statements of the entity would need to be prepared on
break up basis. This means that assets will be recognized
at amount which is expected to be realized from its sale
(net of selling costs) rather than from its continuing use in
the ordinary course of the business. Assets are valued for
their individual worth rather than their value as a combined
unit. Liabilities shall be recognized at amounts that are
likely to be settled.
No indication of possible problems of going concern:
Deteriorating liquidity position of the bank not backed
by sufficient financing arrangements
High financial risk arising from increased gearing level
rendering the bank vulnerable to delays in payment of
interest and loan principle
Significant trading losses being incurred for several
years
Profitability of the bank is essential for its survival in
the long term
Aggressive growth strategy not backed by sufficient
finance which ultimately leads to over trading
Increasing level of short term borrowing and overdraft
not supported by increase in business
Inability of the bank to maintain liquidity ratios as
defined in the loan covenants
Serious litigations faced by the bank which does not
have the financial strength to pay the possible
settlement
Inability of the bank to develop a new range of
commercially successful products
Control Environment
Control activities are the policies and procedures which
help ensure that management directives are carried out,
and the necessary actions are taken to minimize the risks
of failure to meet stated objectives. Policies and
procedures are effectively established within the Bank and
are continuously reviewed for compliance, adequacy and
improvement opportunities.
The Board of Directors sets the tone for an effective control
environment through regular reviews of the processes for
identifying, evaluating, and managing significant risks. The
Standard Operating Procedures (SOP) are signed off by
each Head of Department to provide assurance that these
Annual Report 2013
45
standards are communicated, understood and complied
with. An effective Control environment is set by top
management and cascades across all business functions.
Every year the top team conducts a self-assessment of key
controls that affect the business and develops up action
plans to make the internal control environment more robust
Supplier Payment Policy
PBL developed and implemented a set of payment polices
for all suppliers. We explain the payment method and
system and review the process with the vendor before
issuing a purchase order. Bills are paid according to the
payment terms and VAT and other withholding taxes are
deducted from bills as per law. As of date there is no legal
case filed by the Bank or filed against the Bank by any
supplier.
Shareholders Value
PBL remains fully committed to delivery of higher
shareholders value. The high profitability track record
underpins the value the shareholders derived from
investing in the shares of PBL. The earnings per share
decreased and stood at Tk 1.78 and return on average
equity stood at 8.35 percent during 2013. Market
capitalization stood at Tk 26,660 million as at December
2013 holding the 9th position among the listed companies
and 3rd position among the listed banks in the Dhaka Stock
Exchange.
Meeting of the Board
During the year 2013, 20 Board Meetings were held.
Appointment of Auditors
M/S Hoda Vasi Chowdhury & Co and Howlader Yunus &
Co.Chartered Accountants were appointed as External
Auditors and will be completing their terms in the AGM.
They are not eligible for re-appointment as per Bangladesh
Bank guidelines. Shareholders will appoint Auditors for the
term until the next AGM.
Annual General Meeting
Annual General Meeting will be held on 30th March 2014 at
Winter Garden, Ruposhi Bangla Hotel at 3.00 p.m. The
Directors Report and financial statements were approved
at 414th Board Meeting held on 04 March 2014 for
presentation to the shareholders.
On behalf of the Board of Directors
Md. Nader Khan
Chairman
Annual Report 2013
46
The Audit Committee in its usual role as an assistive
committee of the Board has been carrying out its regular
function of oversight on behalf of the Board of Directors.
Recent amendments in the Bank Company Act-1991 and
subsequent BRPD Circular #11/2013 dated 27 October
2013, issued in light of the amendments, entrusted the
Committee even wider responsibilities of oversight and to
facilitate it undertake the additional responsibilities, the
Audit & Inspection wing of the Management has been
placed under the Board and their reporting line directly with
the Chairman of the Audit Committee. The objective has
been to pave the way for the Audit & Inspection wing to work
independently of management influence and thus help the
process of laying a stronger foundation for establishment of
Corporate Governance practices, compliance culture and
transparency in the operation of Bank Company for the
interest of all stakeholders, be it major or minor.
Constitution of Audit Committee
In conformity with the spirit & objectives of the prevailing
directives, Members of the Audit Committee has been
carefully chosen from among the members who are not
members of the Executive Committee. The Committee
constitutes of five (05) members of whom majority belongs
to the Independent Category. The Company Secretary
discharges the function of Secretary as per directives.
Currently Audit Committee comprises of the following who
were appointed by the Board in its 398th meeting held on
11/05/2013.
All the members are financially literate and
knowledgeable individuals having the ability to ensure
compliance with financial, regulatory and corporate laws
and in a position to make meaningful contribution to
business. They have professional experience due to long
engagement with corporate management and in some
cases academic background of the concerned also
relates to Financial Management.
The year 2013 saw the Parliament passed the Bank
Company (Amendment) Act 2013 which upon proper
implementation is likely to make positive impact on the
ongoing strengthening process of the Corporate
Governance practices and compliance culture in the
operations of the Banking Companies. To those objectives
in view and facilitate the Audit & Inspection wing
undertake required oversight and other relevant
functions on behalf of the Committee, the Audit
Committee made comprehensive study and discussion
at various level before resolving on the following
measures:
A new organogram was designed to align with the
objectives of the amendment where a unique
integration point was set to accommodate Audit &
Inspection with that of the Management to function
towards a single objective of oversight ensuring
smooth work flow and at the same time overcoming
administrative hassles
Operational activities & Work-flow of Audit &
Inspection Teams were redefined
Existing Check Lists were upgraded for ensuring
meticulous compliance with the revised regulatory
directives
On the Risk Management issues, the committee
directed updating all existing questionnaire/check list
in light of the Act to ensure mitigation of the risk
factors was inherent with the banking business
Further emphasis was put on the compliance
activities so as to ensure a definite compliance culture
was in place
Emphasis was laid on arranging vigorous training
activities for the Audit personnel by designing suitable
courses to cope with the challenges
Activities of the Committee
During the year, the Audit Committee in total held nine (09)
meetings with the prime objective of ensuring oversight and
it also included the following:
Reviewing the Audit plan, policies, procedures followed
and interim Financial Reports to make those free from
material defects, errors or omission or any other reason
to conform to the statutory requirements.
Reviewing the Annual Financial Statements of 2013
prepared by the Management upon auditing by the
External Auditors 1) M/S Hoda Vasi Chowdhury & Co.
and 2) M/S Howlader Yunus & Co. and recommending
necessary changes before presenting to the Board for
consideration.
The committee also attended following issues during the
year under reporting:
Reviewed Financial Reports of the Subsidiaries
Examined the financial reporting process
Monitored Inter Control Risk Management process
Appraised performance of the External Auditors
Reviewed and discussed on the reports concerning
violation of laws and regulatory directives
Made arrangement for Special Inspection, Surprise
Inspection and various Risk Based Internal Audit on
routine basis
About the lapses/irregularities observed during regular/special
exercises of the Audit & Inspections, the Committee asked for
removal of such objections by seeking continuous compliance
Report on the Activities of Audit Committee
Name Designation Nature
Independent
Director
Independent
Director
Independent
Director
Director
Director
Chairman
Member
Member
Member
Member
Prof. Ainun Nishat
M.A. Khaleque
Khandker Mohammad
Khaled
Prof. Dr. Mohammad
Aslam Bhuiyan
Mr. Manzur Murshed
Annual Report 2013
47
until the outstanding numbers were reduced to zero.
For setting up a high standard Training Academy, the
Committee persisted towards the goal by collecting data
from peer banks and other relevant sources to assist the
Management in this direction.
Emphasis was placed on the effectiveness of the IT Audit &
Security to identify the vulnerable areas associated with the
operation of IT in Banking Business.
Under regular functioning of the Audit & Inspection, the
Committee insisted conducting regular inspection on the
operations of Head Office Divisions/Unit, Prime Bank
Foundation which is the CSR wing of the Bank as well
alongside the branches.
The Committee reviewed Management Letter issued by
External Auditors and Inspection Report of Bangladesh
Bank and Managements response thereto.
The committee reviewed statements on ICAP (Internal
Capital Adequacy Assessment Process) under SRP
(Supervisory Review Process) for the year 2011 & 2012
as per guidelines of Bangladesh Bank and advised
maintaining required preparation for the periodical
dialogue/reviews on the subject with the Bangladesh
Bank.
The committee reviewed implementation process of the
DCFCL (Departmental Control Function Check List)
and advised Management to strengthen Compliance
Unit of ICC to prevent occurrence of operational
irregularities.
The Committee reviewed implementation status of KYC
& TP documentation and advised management to
strictly comply with the AML guidelines.
Also, the Committee placed findings/lapses detected by the
Internal Auditors/Bangladesh Bank Inspection Teams and
External Auditors before the Board for information and
guidance.
During the year, the Committee, took various measures
endeavored to bring about qualitative changes in the
operation of the Bank leading to the fundamental objectives
of check & balance and establishing a Corporate and
Compliance culture in the Banking Companies.
Therefore, before drawing conclusion, the committee likes
to extend sincerest thanks to all the members of the Audit
Committee for their valuable time and support for enabling
it to carry forward the objectives of the Board and the Audit
Committee for the best interest of all stakeholders. The
Committee also likes to thank the Management & the Board
for allowing it to discharge its due role as an independent
assistive committee of the Board.
Finally, with the assurance to devise innovative approaches
of oversight and overcome the stiffer challenges on the way
to attaining objectives for the interest of the valued
stakeholders, the report of the Committee is placed before
them for kind information and record.
Prof. Ainun Nishat
Chairman

Annual Report 2013
48
Bismillahir Rahmanir Rahim.
All praises are for Allah Subhanahu-wa-taala. He is the
One and Second to none.
Salat and Salam are on Hazrat Muhammad (peace be
upon him) who is the best Prophet and the last messenger
of Allah.
In the year 2013, two meetings of Prime Bank Shari'ah
Supervisory Committee were held where different
operational issues including those referred to by the
Management of the Bank were perused by the Committee
and necessary guidelines and counseling were provided
thereon. Respected members of the Committee also
addressed Iftar Mahfils arranged by the Islamic Banking
Division of the Bank and held formal and informal
discussions on Shari'ah issues that inspired all concerned
for compliance with Shari'ah principles. Apart from this, the
Muraqibs audited all Islamic banking branches during the
year 2013 and submitted reports thereon. Based on the
reports, some branches were advised to improve their
standard of Shariah compliance in certain areas.
After reviewing Shari'ah audit reports, the Prime Bank
Shari'ah Supervisory Committee opined that awareness on
Shari'ah compliance has been increased during the year
under report, among the officials related to investment and
also among the investment clients as compared to the
previous year. It has also been observed from the reports of
the Muraquibs that desk level violations in investment deals
have been substantially decreased. Most of the Shariah
violations occur due to non-availability of Islamic banking
software.
Based on the Committee observations, the Management of
the Bank considered it as a special project and has given
top priority to install the Islamic banking software at the
earliest. It has also been observed that Shariah audit
conducted by the Muraqibs resulted in increased
commitment on Shari'ah compliance among the branch
officials.
Besides providing observations and guidelines, the
Shari'ah Supervisory Committee also recommended the
Management for doing the needful for advancement of
Islamic banking operations at Prime Bank. It was
suggested that training on Shari'ah principles should be
enhanced and the manpower of Islamic banking branches
of all tiers should be brought under the process.
The Committee recommended to engage manpower
having sufficient knowledge and to impart training on
Islamic Shari'ah at all Islamic banking branches to ensure
proper observation of Islamic mode of finance and banking
in investment operation and the Committee also felt that
officials should be more cautious about Shari'ah
compliance while financing, especially in buying and selling
of goods. Furthermore, strict supervision of Islamic banking
activities based on Manual/SOP prepared for the purpose
was stressed by the Shari'ah Supervisory Committee.
May Allah give us Taufique to attain His satisfaction through
implementation of Shari'ah in every sphere of life.
Ameen.
Report of Prime Bank Shari'ah Supervisory Committee
_______________________________
Prof. Maolana Mohammad Salahuddin
Chairman
_________________________
Abu Zafar Md. Sheikhul Islam
Member Secretary
Annual Report 2013
49
Annual Report 2013
50
30
th
March, 2014

Board of Directors
Prime Bank Limited
Adamjee Court Annex Building-2
119-120 Motijheel Commercial Area
Dhaka-1000
SUB: CEO/CFO DECLARATION TO THE BOARD
The following is provided to the Board of Directors of Prime Bank Limited in our capacity as the persons responsible for
performing the functions of Managing Director & CEO and Chief Financial Offcer of the Bank.
In accordance with the notifcation of Bangladesh Securities and Exchange Commission No.SEC/ CMRRCD/2006-158/134/
Admin/44 dated 07, August, 2012 we declare that for the fnancial year ended 31 December, 2013:
i) We have reviewed the fnancial statements for the year and that to the best of our Knowledge and belief:
a) these statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading
b) these statements together present a true and fair view of the companys affairs and are in
compliance with existing accounting standards and applicable laws
i) There are, to the best of knowledge and belief, no transactions entered into by the Bank during the year
which are fraudulent, illegal or violation of the Banks code of conduct.
Md.Ehsan Khasru Ahmed Kamal Khan Chowdhury
Managing Director & CEO Deputy Managing Director & Chief Financial
Offcer
Corporate
Governance
Legal &
Recovery
Business
Practice
& Ethics
Disclosure &
Transparency
Enterprise Risk
Management
Board of Directors
& Committee
Monitoring
Statement of Directors on adequacy of the system of Internal Control 52
Statement of Directors responsibility to establish appropriate
system of Internal Control 53
Board of Directors 54-55
Chairman of the Board 55
Role and Responsibilities of the CEO 55-56
Role of the Company Secretary 56
Audit Committee 57-58
Internal Control 58-59
Risk Management 59-60
Remuneration 60
Committee Meetings 61-62
The pattern of Shareholding along with name wise details 62-63
Professional Certicate on Compliance of Conditions on
Corporate Governance 64
Bangladesh Securities Exchange Commission Checklist 65-71
IN THIS SECTION
Corporate Governance Report
Statement of Directors on adequacy of the system of Internal Control
The Board of Directors has certain roles as stipulated in the Bank Company (amended) Act 2013. Accordingly, the
directors have worked on maintaining sound corporate governance and diligently discharged their responsibilities. The
directors have established broad business strategies, adopted significant policies for internal control and risk management
and implemented risk based internal audits as per sections 15 Kha & 15 Ga of the Bank Company (amended) Act 2013
for ensuring that the Bank is appropriately and effectively managed and controlled.
The Board has reviewed the policies and manuals of various segments of businesses in order to establish an effective
internal control system, which is adequate for achieving sustainable growth through orderly and efficient conduct of
business. The directors has also checked the control procedures for ensuring the safeguarding of the Banks asset, the
prevention and detection of fraud and error, the adequacy and completeness of accounting records, timely preparation of
financial information and the efficient management of risk.
The Board of Directors monitors the adequacy and effectiveness of Internal Control systems through the establishment of
Audit Committee. While preparing the Audit Committee, all the conditions mentioned in the Bank Company (amended) Act
2013, Bangladesh Bank guidelines and the Corporate Governance guidelines by Bangladesh Securities and Exchange
Commission have been properly addressed. The committee has reviewed the system of internal control and management
of core risks faced by the Bank. It has also reviewed the audit process, the Banks process for monitoring compliance with
laws and regulations and codes of business conduct.
The Audit Committee has reviewed the arrangements made by management for adding the control features to the existing
Management Information System (MIS). The committee has also reviewed the corrective measures taken by management
relating to fraud-forgery and deficiencies in internal control revealed in previous years. It has placed all the compliance
reports before the Board of Directors and regulators on a timely basis and has performed all other oversight functions
relating to Internal Control Systems of the Bank.
Md. Nader Khan
Chairman
Annual Report 2013
52
Nowadays banking activities have high risks and are diversified and complex, so they are no longer limited within the
geographic boundary of a country. The issues of effective internal control systems, corporate governance, transparency
and accountability has become more significant to ensure smooth performance of a bank in recent times. The overall
attitude, awareness and action of directors regarding internal control systems plays a key role for achieving operational
excellence, the reliability of financial reporting and compliance with applicable laws, regulations and internal policies.
Internal control is a process which is affected by the Banks Board of Directors, management and other personnel at all
level within the organization. The process includes all the policies and procedures established and implemented to manage
and control a particular risk or business activity to which the Bank is exposed to.
The Bank needs to have in place an appropriate and effective internal control environment under which internal controls
are developed, implemented and monitored. The control environment consists of the mechanisms and arrangements that
ensure internal and external risks to which the Bank is exposed to are identified; appropriate and effective internal controls
are developed and implemented to soundly and prudently manage these risks; reliable and comprehensive systems are to
be put in place to appropriately monitor the effectiveness of these controls.
The directors affirm that they are actively concerned with sound corporate governance and diligently discharge their
responsibilities of establishing broad business strategies, adopting significant policies for internal control, risk management
and implementing risk based internal audit as per section 15 Kha of Bank Company (amended) Act 2013 for ensuring that
the Bank is appropriately and effectively managed and controlled. They attend periodic review meetings with senior
management to discuss the effectiveness of the internal control systems of the Bank and ensure that management has
taken appropriate actions as per recommendations of the auditors and regulators.
Md. Nader Khan
Chairman
Statement of Directors responsibility to establish
appropriate system of Internal Control
Annual Report 2013
53
Board of Directors is fully committed to maintaining the
highest standards in corporate governance,
professionalism and integrity in driving Prime Bank to
create and deliver long-term sustainable value. In line with
the Banks aspirations, the Board has continued to ensure
that the highest standards in corporate governance are
upheld, with a view to enhancing stakeholder value,
increasing investor confidence, establishing customer trust
in building a competitive organization, whilst at the same
time not losing sight of its stakeholders by establishing and
overseeing requisite governance policies and processes.
Board of Directors
Prime Bank Limited does not have its own policy on
appointment of Directors, except for the very first Board that
was held. PBL always complies with the prescription of the
regulatory authorities regarding appointment of directors.
Bangladesh Bank circulars, BSEC notification, Bank
Company Act and Company Act are strictly followed
regarding this matter.
Composition
All directors of the Board are non-executive directors and
almost one-fifth is Independent Directors. There are three
independent directors appointed by the Board and
approved by the shareholders in the AGM. Bangladesh
Securities Exchange Commission (BSEC) has also
approved their appointment. The Chairman has been
independent of the CEO, and has been in practice from the
inception of PBL. This also complies with Section 1.4 of the
BSECs notification on Corporate Guidance Guidelines. All
directors are financially literate and quite a few of them are
from Financial Management background, which shows that
PBL has an enriched Board of Directors.
Selection and Appointment of New Directors
In context to the selection and appointment of new
directors, the existing Board of Directors has the following
obligations and duties:
1. Frequently assess the size and structure of the
Board and the mix of knowledge, skills, experience
and perceptions that may be necessary to allow the
Board to perform its functions
2. Recognize any capabilities not sufficiently
represented and approve the procedure necessary
to be certain that an applicant designated by the
shareholders with those capabilities is nominated
The directors are selected by the shareholders in the
Annual General Meeting. Casual vacancy, if any, are filled
up by the Board in accordance with the conditions in the
Companies Act and Articles of the Company.
Retirement and Re-election of Directors
As per Companies Act and Articles of Association of the
Company, each year one-third of the Directors retire from
office and being eligible, may offer themselves for re-election
by shareholders at the Annual General Meeting. Accordingly
following directors will retire at the 19th AGM and they are
eligible for reelection: 1) Mr. Md. Shahadat Hossain, 2) Mr.
M.A. Khaleque, 3) Mr. K.M. Khaled, 4) Mr. Mafiz Ahmed
Bhuiyan, 5) Mrs. Muslima Shirin and 6) Mr. Shirajul Islam
Mollah. In line with the requirement of Banking Companies
Act, no Director should serve more than 3 years without
seeking re-election at shareholders meeting.
Independent Director
As per SEC Circular No. EC/ CMRRCD/ 2006-158/ 134/
Admin/ 44, dated August 07, 2012, the elected directors of
the Board of PBL nominates three independent directors
(1/5th of total number of Directors) on the Board of
Directors so that the Board contains core skills considered
appropriate in the framework of the company. The three
independent directors are Professor Ainun Nishat,
Professor Mohammed Aslam Bhuiyan and Mr. Manzur
Murshed.
Role and Responsibilities of the Board
The Prime Bank Board is responsible for the periodic
review and approval of the overall strategies, business and
significant policies of the Bank. The Board also sets the
Banks core values, adopts proper standards to ensure that
the Bank operates with integrity, and complies with the
relevant rules and regulations.
The Boards responsibilities are, but are not limited to:
Reviewing and approving the strategies and business
plans for the Bank
Approving the Banks annual budget and carrying out
periodic review of the achievements by the various
operating divisions against their respective business
targets
Prescribing the minimum standards and establishing
policies on the management of credit risks and other
key areas of the Banks operations
Ensuring that the operating infrastructure, systems of
control, systems for risk identification and
management, financial and operational controls, are in
place and properly implemented
Reviewing the adequacy and integrity of the Banks
internal control systems
Overseeing the conduct and performance of the Banks
businesses
Succession planning, including ensuring all candidates
appointed to senior management positions are of
sufficient caliber and program are in place to provide for
the orderly succession of senior management
Reviewing succession planning and talent
management plans for the Bank and approving the
appointment and compensation of senior management
staff
Approving changes in the corporate organization
structure
Approving policies relating to corporate branding,
public relations, investor relations and shareholder
communication programs
Reviewing the Banks strategies on promotion of
sustainability focusing on environmental social and
governance aspects
The Board duly complies with the guidelines issued by
Bangladesh Bank, BSEC, Bank Company Act and
Company Act regarding the responsibility and
accountability of the Board, its Chairman and Managing
Director.
Annual Report 2013
54
Code of Conduct for the Board of Directors
The Board of Directors follows a Code of Conduct which
was adopted to provide guidance to directors to carry out
their duties in an honest, responsible and business like
manner and within the scope of their authority, as set forth
in the laws of the country as well as in the Memorandum
and Articles of Association of the Company.
The Code of Conduct states:
1. The Members shall act honestly, in good faith and in the
best interests of the shareholders and the company
2. The members shall not make improper use of
information acquired as a director
3. The members shall not take improper advantage of the
position as a director
4. The members will be obligated to be independent in
judgment and actions and take all reasonable steps to
be satisfied as to the soundness of decision taken by
the board of directors
5. Confidential information acquired by the members in
the course of exercise of directorial duties shall remain
the property of the company and it will be improper to
disclose or allow it to be disclosed, unless that
disclosure has been authorized by the company, or the
person from whom the information has been received
6. Members shall make every effort to attend all Board
and Committee Meetings during their tenure. They will
not absent themselves without good reasons or
confirming leave of absence
7. To maximize effectiveness of the Board/Committee
Meetings, contribution of individual director shall be
monitored and appraised on an annual basis
8. Board members having interest of any nature in the
agenda of the meeting, shall declare beforehand the
nature of their interest and withdraw from the room,
unless they have a dispensation to speak
9. Training opportunities/orientation/workshops will be
arranged for the members (especially for the newly
inducted members) to make them acquainted with the
international best practices, their fiduciary obligations,
Code of Conduct etc.
10. Members shall always maintain Fit and Proper Test
Criteria, clean CIB status and other obligations
declared by the Primary and other Regulators
11. Members shall be judicious about their entitlement of
benefit/privileges as per Banking Companies Act -1991
and all circulars issued by Bangladesh Bank and shall
be willing to produce supporting documents, if required
12. Members shall comply with Article 23.1 of the Banks
Memorandum and Articles of Association of the
Company while making Sale-Buy of Companys share
and shall refrain from making such transaction without
formal declaration
Every Director will assure annually signing a confirmation
that they have gone through, have complied with and will
continue to comply with the set of codes approved by the
Board of Directors.
Directors Remuneration
Directors are not eligible to any remuneration other than at
the end of the meeting of the Board and its Committee.As
per DFIM Circular No. 03, dated February 24, 2010,
directors are eligible to the remuneration on BDT 5,000 for
each meeting.
Chairman of the Board
The Chairman of the Board is elected to the ofce of
Chairman by the directors. The Board considers that the
Chairman is independent.
Role and Responsibilities of the Chairman
The role and responsibilities of the Chairman are:
As the Chairman of the Board of Directors (or
Chairman of any Committee formed by the Board of
Directors) does not personally possess the jurisdiction
to apply policy making or executive authority, he shall
not participate in or interfere into the administration or
operational and routine affairs of the bank
The Chairman may conduct on-site inspection of any
branch or financing activities under the purview of the
oversight responsibilities of the Board. He may call for
any information relating to banks operation or ask for
investigation into any such affairs; he may submit such
information or investigation report to the meeting of the
Board or the Executive Committee and if deemed
necessary, with the approval of the Board, he shall take
necessary action thereon in accordance with the set
rules through the CEO. However, any complaint
against the CEO shall have to be apprised by the
Bangladesh Bank through the Board along with the
statement of the CEO.
Besides this, the Chairman may/shall assume any other
responsibility if the Board assigns within the purview of the
Rules, Regulations, Acts and Articles of the Bank. The
Chairmans responsibility is defined by the Board as
directed by BSECs notification on Corporate Governance
Guidelines.
Role of the Chairman and CEO are independent
The Chairman of the Board is not the Managing Director of
the Company. The role of Chairman and the Managing
Director are independent and detached from each other.
Role and Responsibilities of the CEO
The responsibilities and authorities of the Managing
Director are as follows:
I. In terms of the financial, business and administrative
authorities vested upon him by the board, the CEO
shall discharge his own responsibilities. He shall
remain accountable for achievement of financial and
other business targets by means of business plans,
efficient implementation thereof and prudent
administrative and financial management.
II. The CEO shall ensure compliance of the Bank
Companies Act, 1991 and/or other relevant laws and
regulations in discharge of routine functions of the
bank.
III. The CEO shall include information on violation of any
law, rules, regulation including Bank Company Act,
1991 while presenting memos before the Board or the
committee formed by the board.
IV. CEO will provide all sorts of information to
Bangladesh Bank about the violation of Banking
Companies Act, 1991 and/ or any violation of Laws,
rules and regulations.
V. The recruitment and promotion of all staff of the bank
except those in the two tiers below him shall rest on
the CEO. He shall act in such cases in accordance
Annual Report 2013
55
with the approved service rules on the basis of the
human resources policy and sanctioned strength of
employees as approved by the board. The board or
the chairman of any committee of the board or any
director shall not get involved or interfere into such
affairs. The authority relating to transfer of and
disciplinary measures against the staff, except those
at one tier below the CEO, shall rest on him, which he
shall apply in accordance with the approved service
rules. Besides, under the purview of the human
resources policy as approved by the board, he shall
nominate officers for training
Besides, the Managing Director shall assume any other
responsibility if the Board assigns within the purview of the
Rules, Regulations, Acts and Articles of the Bank.
Board Meetings
The Board meets as required to discuss business strategy,
financial performance, matters pertaining to compliance
and governance as well as reports on matters deliberated
by the respective committees. The Board reviews, amongst
others, the financial performance of the Bank and
subsidiaries, risk management and compliance reports and
approve the quarterly results of the Bank at its meeting. The
meetings of the Board are scheduled in advance for the
Directors to plan their schedules. In addition, Special Board
meetings are held when necessary, to deliberate on major
transactions and ad-hoc matters that require the Boards
urgent attention and decisions. A Board meeting is held at
the beginning of the year to discuss the Banks Business
plan and Budget.
Meeting papers on the proposals and reports are delivered
to the Directors prior to the meetings, giving them sufficient
time to evaluate the proposals and if necessary, request
additional information. This enables the Board to function
and discharge their responsibilities effectively. The
minimum information required for the Board to make an
informed and effective decision includes background,
objective, key issues, rationale, financial and non-financial
impact of the proposal. Directors who are unable to attend
a meeting due to unavoidable circumstances are
encouraged to provide feedback to the Chairman on
matters to be deliberated for their views to be given due
consideration at the meetings.
Role of the Company Secretary
Company Secretary is responsible for advising the Board
on issues relating to corporate compliance with the relevant
laws, rules, procedures and regulations affecting the Board
and the Bank, as well as best practices of governance. He
is also responsible for advising the Directors of their
obligations and duties to disclose their interest in securities,
disclosure of any conflict of interest in a transaction
involving the Bank, prohibition on dealing in securities and
restrictions on disclosure of price-sensitive information.
The responsibilities of the Company Secretary comprises
of:
i. Ensuring the compliance of the Bank in relation to
financial and legal practices, as well as issues of
corporate governance. He acts as a point of
communication between the management, board of
directors, company shareholders, reporting in a timely
and accurate manner on company procedures and
developments
ii. Ensure the Bank complies with its governing document,
policies, company law and any other relevant legislation
i.e. regulations with Bangladesh Bank, Securities and
Exchange Commission (SEC) and Registrar of Joint
Stock Companies etc. Support and advise the Chair by
ensuring the smooth functioning of the Board. Work in
partnership with the Chief Executive and other Trustees
to ensure the activities & operations of the Bank
iii. Support the Chairman in the smooth functioning of the
Board. Receive agenda items from other Directors/staff
and ensure appropriate agenda items are tabled at
Board meetings. This is done in consultation with the
Chief Executive and the Chair who is responsible for
preparing Board meeting agendas
iv. In line with Bangladesh Bank guidelines the company
secretary has to act as the Secretary to the Audit
Committee of the Board of Directors. In this area of risk
mitigation, the Company Secretary has a pivotal role to
play in support of the members of the Audit Committee,
Board Audit Cell, Audit & Inspection Division and
Internal Control & Compliance Division
v. Act as a custodian of Banks governing documents and
policies. Ensure the Bank pursues its objects as defined
in its governing document. He should act as a custodian
of the interests of the Bank. So it is his prime duty to
protect and safeguard such interests of the Bank at all
levels: statutory, administrative, and arbitrational and in
other policy matters. He should also ensure that Board
meeting minutes are signed by the Chair once they
have been confirmed and copies filed and kept at the
Bank
vi. Ensure the appointment of Banks board members, that
those appointed are not disqualified in law and are
eligible to be members under the provisions of the
governing documents and policies, and that the
appointment procedure laid down in the governing
document and policies is followed
vii. Make sure that the Directors have information to enable
them to comply with the decisions and fulfill their
responsibilities. This includes organizing the induction
of new Directors also
viii. Ensure that Board meetings are held in compliance with
Banks governing documents and arrangements for the
meetings are made
ix. Confirms that Annual General Meetings (AGMs) and
Extraordinary General Meetings (EGMs) are run
effectively and in accordance with the provisions of
Banks governing document. This includes checking
that a quorum is present. Also make sure that agendas
and minutes of AGMs and EGMs are circulated timely
x. File the annual list of members and summary of share
capital together with the authenticated Balance Sheet
and the Profit and Loss account. Issue Dividend
Warrants, bonus share certificates and make
arrangement for disposal of fractional shares, if any
xi. Maintain strict confidentially of information, manage
situations like conflict of interest, identify problems and
implement or recommend solutions
xii. Maintain and liaise with various corporate bodies viz.
BAB, ABB, Chambers/other bodies, regulators
Annual Report 2013
56
Appraisal and evaluation of Board of Directors and CEO
There isnt a scheme for annual appraisal of the boards
performance till date, but the company is abiding by the
Code of Conduct which was formulated by the Board.
There is a three year (2012-2014) strategic Priorities &
Action Plan (KPI) for the evaluation of the
CEO/Management on an annual basis and it is revised from
time to time accordingly by the Board. Training is also
encouraged for directors by the Board, especially on
Corporate Governance. Training is encouraged both at
home and abroad, and two directors attended courses in
Kuala Lumpur in 2012.
Audit Committee
As per BSEC notification no. SEC/ CMRRC/ 2006-158/
129/ Admin/ 44 dated 7th August 2012 on Corporate
Governance; the current Audit Committee consists of 5
members. The Audit Committee consists of 2 Directors and
3 Independent Directors. All members of the Audit
Committee are non-executive directors. All members are
financially literate and one of the members of the committee
is from Finance and Accounting background. The Chairman
of the committee is a BSEC approved independent
non-executive Director. The head of internal audit always
has direct access to the audit committee as well, and can
express his issues in front of the committee. The Audit
Committee has a term of reference and is empowered to
investigate/question employees and retain external
counsel as required.
Terms of Reference
To steer the Audit Committee forward, a terms of reference
(TOR) has been established. According to the TOR for the
Audit Committee, some of the roles and responsibilities are
as follows:
1.0 Purpose
To monitor and review the formal arrangements established
by the Board in respect of:
a. The financial reporting and narrative reporting of the
Bank;
b. The effectiveness of the internal controls and the risk
management framework;
c. Whistle blowing;
d. Internal audit process;
e. External auditors appointment/reappointment.
The Committee will act independently to ensure that the
interests of shareholders are properly protected in relation
to financial reporting and internal control are always within
the principle of all directors having a duty to act in the
interests of the Bank and all directors remaining equally
responsible for the Company's affairs.
2.0 Authority
The Audit Committee is a committee of the Board of the
Company. The Committee is authorized by the Board to:
a. Investigate any activity within its terms of reference
and have such direct access to the resources of the
Bank as it may reasonably require;
b. Seek any information that it requires from any
employee, and all employees are directed to
co-operate with any request made by the Committee
c. Engage outside legal or other independent
professional advisers and obtain appropriate funding
for the payment of relevant fees and expenses.
Where the Committee is not satisfied with any aspect of the
proposed financial reporting by the Company it shall report
its views to the Board of the Company. In the event of any
disagreement between the Committee members and the
rest of the Board, such matters will be resolved at Board
level.
3.0 Responsibilities
Financial Affairs of the Group
To monitor the integrity of the financial statements of
the Bank (and any discussion or analysis thereof
including annual and interim reports), and any formal
announcements relating to the Banks actual and
forecast financial performance, reviewing significant
financial reporting judgments contained in them
To review any unusual items or matters brought to its
attention requiring the exercise of managerial
judgment affecting the preparation of the statements
and announcements
To provide a forum for the discussion and resolution of
areas of disagreement in relation to the statements
and announcements, e.g. between management and
the External Auditor
Accounting, Financial Reporting and Regulatory Compliance
To review, and challenge where necessary, the
actions, estimates and judgments of management
(and any changes in them), in relation to the interim
and annual financial statements before submission to
the Board, paying particular attention to:
a) Significant accounting policies and practices,
and any changes in them
b) Disclosures and estimates requiring a major
element of judgment
c) The extent to which the financial statements are
affected by any unusual transactions in the year,
the methods used to account for any significant
or unusual transactions where different
approaches are possible, and how such
transactions are disclosed
d) The clarity and completeness of disclosures, and
the context within which financial statements are
made
e) Compliance with accounting standards
f) Compliance with legal and regulatory
requirements
g) The going concern assumption
h) The representation letter to the auditors and
i) All material information presented with the
financial statements including the business
review, and corporate governance statements
relating to the audit and risk management
To review the controls and procedures established by
management for compliance with regulatory and
financial reporting requirements and with the
requirements of external regulators
To review the content of the annual report and
accounts and advise the Board on whether, it is fair,
balanced and understandable and provides the
information necessary for shareholders to assess the
company's performance, business model and
strategy. The review undertaken by the Committee
should assess whether the narrative is consistent with
the accounting information.
Annual Report 2013
57
Standards of Internal Control
To review the arrangements of the Banks systems of
internal controls in relation to financial management,
compliance with laws and regulations and
safeguarding of assets, and the procedures for
monitoring the effectiveness of such controls
To monitor any significant deficiencies and material
weaknesses in internal controls and disclosure
controls and procedures, as reported by Internal Audit
and the External Auditor, and the implementation by
management of appropriate remedial action
To review arrangements for the receipt, retention and
treatment of complaints including those regarding
accounting, internal accounting controls or auditing
matters. To review procedures by which employees
may, in confidence and with anonymity, raise concerns
including those of questionable financial reporting,
accounting or auditing matters
To monitor and review in broad terms the scope, nature
of the work and effectiveness of Internal Audit and to
receive and review its reports, findings and
recommendations covering key operating risks
Review the arrangements made by the management
for building a suitable Management Information
System (MIS) including computerization system and its
application
Review the existing risk management procedures for
ensuring an effective internal check and control system
Evaluate whether management is setting the
appropriate compliance culture by communicating the
importance of internal control and the management of
risk and ensuring that all employees have
understanding of their roles and responsibilities
Review the corrective measures taken by the
management as regards the reports relating to
fraud-forgery, deficiencies in internal control or other
similar issues detected by internal and external
auditors and inspectors of the regulatory authority and
inform the board on a regular basis
The Group's Relationship with its External Auditors
Make recommendations to the Board, to be put to
shareholders for approval at the Annual General
Meeting, on the appointment, reappointment and
removal of the external auditor. The Audit Committee
shall oversee the process for selecting the external
auditor
Oversee the relationship with the external auditor,
including:
Review and approve the annual audit plan, and ensure
that it is consistent with the scope of the audit
engagement, and coordinated with the activities of the
Internal Audit function
Discuss with the external auditor, before the audit
commences, the nature and scope of the audit and
review the auditors quality control procedures and
steps taken by the auditor to respond to changes in
regulatory and other requirements
Review the findings of the audit with the external
auditor, considering the external auditors management
letter and managements responsiveness to the
auditor's findings and recommendations
Review reports prepared by the external auditor as the
Audit Committee shall require, considering
managements response to any major external audit
recommendations
Review annually and report to the Board on the
qualification, expertise and resources, and
independence of the external auditors and the
effectiveness of the audit process, with a
recommendation on whether to propose to the
shareholders that the external auditor be re-appointed.
The assessment should cover all aspects of the audit
service provided by the audit firm, and include obtaining
a reporting on the audit firm's own internal quality
control procedures and consideration of the audit firm's
annual transparency report where available
Ensure that the audit committee section of the annual
report should include an explanation of how the
committee has assessed the effectiveness of the
external audit process and the approach taken to the
appointment or reappointment of the external auditor,
including length of term
Review the audit representation letters before
signature, giving particular consideration to any
non-standard issues within the representations
Other Responsibilities
Place compliance report before the board on quarterly
basis regarding regularization of the errors &
omissions, fraud and forgeries and other irregularities
as detected by the internal and external auditors and
inspectors of regulatory authorities
Perform other oversight functions as requested by the
board and evaluate the committees own performance
on a regular basis
Internal Control
A system of effective internal controls is a critical
component of bank management and a foundation for the
safe and sound operation of the organization. A system of
strong internal controls can help to ensure that the goals
and objectives of a banking organization will be met, that
the bank will achieve long-term profitability targets, and
maintain reliable financial and managerial reporting. Such a
system can also help to ensure that the bank will comply
with laws and regulations as well as policies, plans, internal
rules and procedures, and decrease the risk of unexpected
losses or damage to the banks reputation.
Internal control is a process affected by the board of
directors, senior management and all levels of personnel. It
is not solely a procedure or policy that is performed at a
certain point in time, but rather it is continually operating at
a) Approving the terms of engagement (and the
engagement letter) of the external auditor,
including the remuneration to be paid
b) Assessing the external auditors effectiveness,
independence and objectivity, ensuring that key
partners are rotated at appropriate intervals
c) Agreeing the policy for, and where required by that
policy, approving the provision of non-audit
services by the external auditor and the related
remuneration
d) Agreeing with the Board a policy on the
employment of former employees of the Bank's
auditor, and monitoring the implementation of this
policy
Annual Report 2013
58
all levels within the bank. The board of directors and senior
management are responsible for establishing the
appropriate culture to facilitate an effective internal control
process and for monitoring its effectiveness on an ongoing
basis; however, each individual within an organization must
participate in the process. The main objectives of the
internal control process can be categorized as follows:
1. Efficiency and effectiveness of activities (performance
objectives)
2. Reliability, completeness and timeliness of financial
and management information (information objectives)
and
3. Compliance with applicable laws and regulations
(compliance objectives)
Performance objectives for internal controls pertain to the
effectiveness and efficiency of the Bank in using its assets
and other resources and protecting the bank from loss.
Information objectives address the preparation of timely,
reliable, relevant reports needed for decision-making within
the banking organization. They also address the need for
reliable annual accounts, other financial statements and
other financial-related disclosures and reports to
shareholders, supervisors, and other external parties.
Compliance objectives ensure that all banking business
complies with applicable laws and regulations, supervisory
requirements, and the organizations policies and
procedures. This objective must be met in order to protect
the Banks reputation.
Key features of Internal Control System are as follows:
a. Management oversight and the control culture
b. Risk recognition and assessment
c. Control activities and segregation of duties
d. Information and communication
e. Monitoring activities and correcting deficiencies
Management oversight and the control culture
The board of directors provides governance, guidance and
oversight to senior management. It is responsible for
approving and reviewing the overall business strategies
and significant policies of the organization. The board of
directors has the ultimate responsibility for ensuring that an
adequate and effective system of internal controls is
established and maintained.
Senior management is responsible for carrying out the
directives of the board of directors, including the
implementation of strategies and policies and the
establishment of an effective system of internal control.
An essential element of an effective system of internal
control is a strong control culture. It is the responsibility of
the board of directors and senior management to
emphasize the importance of internal control through their
actions and words. This includes the ethical values that
management displays in their business dealings, both
inside and outside the organization.
Risk recognition and assessment
An effective internal control system requires that the
material risks that could adversely affect the achievement
of the banks goals are being recognized and continually
assessed. This assessment should cover all risks facing
the bank (which are credit risk, country and transfer risk,
market risk, interest rate risk, liquidity risk, operational risk,
legal risk and reputational risk). Internal controls may need
to be revised to appropriately address any new or
previously uncontrolled risks.
Control activities and segregation of duties
Control activities should be an integral part of the daily
activities of a bank. An effective internal control system
requires that an appropriate control structure is set up, with
control activities defined at every business level. These
should include: top level reviews; appropriate activity
controls for different departments or divisions; physical
controls; checking for compliance with exposure limits and
follow-up on non compliance; a system of approvals and
authorizations and, a system of verification and
reconciliation.
Information and communication
An effective internal control system requires there are
adequate and comprehensive internal financial, operational
and compliance data, as well as external market
information about events and conditions that are relevant to
decision making. Information should be reliable, timely,
accessible, and provided in a consistent format.
Monitoring activities and correcting deficiencies
The overall effectiveness of the banks internal controls
should be monitored on an ongoing basis. Monitoring of
key risks should be part of the daily activities of the bank as
well as periodic evaluations by the business lines and
internal audit.
The board of directors of Prime Bank performs the following
activities to monitor the Internal Control System:
(1) Periodic discussions with management concerning
the effectiveness of the internal control system
(2) Timely review of evaluations of internal controls made
by management, internal auditors, and external
auditors
(3) Periodic efforts to ensure that management has
promptly followed up on recommendations and
concerns expressed by auditors and supervisory
authorities on internal control weaknesses
(4) Periodic review of the appropriateness of the banks
strategy and risk limits
Through the establishment of the Audit Committee, the
Board of Directors monitors the effectiveness of internal
control system. The Audit Committee evaluates whether
management is setting the appropriate compliance culture
by communicating the importance of internal control among
the employees. They also review the corrective measures
taken by the management relating to operational lapses.
Senior management of Prime Bank develops processes
that identify, measure, monitor and control risks incurred by
the bank; maintains an organizational structure that clearly
assigns responsibility, authority and reporting relationships;
ensures that delegated responsibilities are being carried
out effectively; sets appropriate internal control policies;
and monitors the adequacy and effectiveness of the
internal control system. They ensure proper control through
techniques such as top level reviews, activity controls,
physical controls, compliance with exposure limit,
approvals & authorizations and verification & reconciliation
of transactions of the Bank.
Risk Management
Banking industry is unique in many ways and one of the
features that set it apart from other business is the diversity
and complexity of the risks it is exposed to. Deregulated
regimes along with globalization of business have opened
new frontiers that warrant risk management an even
greater priority.
Annual Report 2013
59
The failure to adequately manage these risks exposes
banks not only to business losses but may also result in
circumstances that they cannot remain in business. Prime
Bank has identified six core risk areas of banking which are
as follows:
1. Credit Risk
2. Asset and Liability/Balance Sheet Risk
3. Foreign Exchange Risk
4. Internal Control and Compliance Risk
5. Money laundering Risk
6. Information and Communication Technology Security Risk
Banking companies in Bangladesh, while conducting
day-to-day operations, may face some other risks both
internally and externally:
Credit Risk also includes concentration risk, country
risk, transfer risk, and settlement risk
Market Risk (including interest rate risk in the banking
book, foreign exchange risk and equity market risk)
Liquidity Risk
Operational Risk
Strategic Risk
Reputation Risk
Prime Bank adopted the following strategies to manage
and mitigate the risk:
Setting targets for capital ratios and capital composition
Managing the balance sheet
Managing the funding structure
Determining general principles for measuring,
managing, and reporting the bank's risks
Developing risk policies for business units
Determining the overall investment strategy
Identifying, monitoring, and managing the bank's
current and potential operational risk exposures
Handling "critical risks" (risks that require follow-up and
further reporting)
Following up on reviews by and reports from
Bangladesh Bank and informing the Board of issues
affecting the bank's operational risks
Following up on reports prepared by Internal Audit and
informing the Board through Audit Committee of
unusual circumstances
Preparing management information on issues such as
IT security, physical security, business continuity, and
compliance
Duties and Responsibilities
Identifying different risks and introduce and implement
proper strategies to control those risks, review existing
risk management principles & procedures and take
corrective measures if necessary
Ensure appropriate organizational structure for risk
management
Form separate committees at Management level for
compliance of instructions under risk related guidelines
and supervision of their activities
Review risk management policies and guidelines,
review loan approval limit and submission to the Board
for necessary revision each year
Examine and approve the preservation of data and
reporting implemented by the management. Ensure
implementation of approved systems
Inform the Board of Directors about the summary of
minutes of meetings of the committee
Submit decisions/recommendations of the Committee
to the Board on quarterly basis. If sought by the
committee, internal and external auditors will submit
evaluation report to the committee
Remuneration
Prime Bank Ltd. has a Management Executive Committee
(MEC) which comprises Managing Director, Deputy
Managing Directors and Head of Human Resources
Division to review, discuss and decide on important
business issues. In addition to the regular roles and
responsibilities, the Committee also governs the
remuneration related policies and practices in alignment of
the Banks short and long-term objectives.
The Committee plays an independent role, operating as an
overseer; and if required, makes recommendations to the
Board of Directors of the Bank for its consideration and final
approval for any remuneration related policy. The role of the
Committee is to assist the Board of Directors to ensure that
all employees are remunerated fairly in alignment with the
long-term interests of the Bank and effective remuneration
policy, procedures and practices are in place, aligned with
the Banks strategy, and applied consistently for all
employee levels.

The Committee performs all the functions necessary to
fulfill its roles which include the followings:
i. Oversees the preparation and maintenance of a
remuneration philosophy and policy to promote
performance culture
ii. Monitors the remuneration of Top Executives, Senior
Managers and all other Officers
iii. Reviews the effectiveness of remuneration policy to
ensure that whether the Boards set objectives and
expectations are being met
iv. Ensures that the structure and mix of fixed and variable
pay and other elements are in alignment with the
overall business objectives
v. Guides and provides proper direction to HRD during
preparation and review of any policy or process related
to compensation and benefits
vi. Reviews the annual salary increment for all employees
vii. Ensures that all benefits, including retirement benefits
and other financial arrangements, are justified,
appropriately valued and promoting the performance
based reward & recognition
The Committee meets on a regular interval throughout the
year. So, if any remuneration related issue needs
Committees attention, it is placed as agenda for necessary
review. However, if required meetings are held on need basis
to review and discuss any remuneration related issue
exclusively. In 2013, a total of 12 meetings were held by the
Management Executive Committee. The current
remuneration structure of PBL is attractive enough to
motivate and retain performers. The PBL is always
committed to ensure both internal and external pay equity
while maintaining a balance with what the business can
afford.
Annual Report 2013
60
SL
No.
Name of Directors Designation
Presence of the Directors at
the Meetings
Remuneration
Drawn
(Tk.5000.00/ Meeting
No. of
Meetings
Present Absent
1. Mr. Tanjil Chowdhury Chairman 22 18 04 Tk.90,000.00
2. Mr. Imran Khan Vice Chairman 22 11 11 Tk.55,000.00
3. Mr. Mafiz Ahmed Bhuiyan Director 22 16 06 Tk.80,000.00
4. Mr. Md. Shahadat Hossain
(Appointed on 01.06.2013) Director 12 12 -- Tk.60,000.00
5. Mrs. Muslima Shirin Director 22 21 01 Tk.105,000.00
6. Mrs. Salma Huq Director 22 14 08 Tk.70,000.00
7. Mr. Nafis Sikder
(Appointed on 01.06.2013) Director 12 01 11 Tk.5,000.00
Board Meeting : 2013
Excecutive Committee Meeting : 2013
SL
No.
Name of Past Members Designation
the Meetings
Remuneration
Drawn
No. of
Meetings
Present Absent
1. Quazi Sirazul Islam
(Upto 31.05.2013) Director 10 07 03 Tk.35,000.00
2. Mrs. Nasim Anwar Hossain
(Upto 31.05.2013) Director 10 07 03 Tk.35,000.00
Annual Report 2013
61
SL
No.
the Meetings
Remuneration
Drawn
No. of
Meetings
Present Absent
1. Mr. Md. Nader Khan Chairman 20 18 02 TK.90,000.00
2. Mrs. Nasim Anwar Hossain Vice Chairperson 20 19 01 TK.95,000.00
3. Mr. Mafiz Ahmed Bhuiyan Vice Chairman 20 16 04 TK.80,000.00
4. Quazi Sirazul Islam Director 20 17 03 TK.85,000.00
5. Khandker Mohammed Khaled Director 20 09 11 TK.45,000.00
6. Mr. M. A. Khaleque Director 20 09 11 TK.45,000.00
7. Mr. Md. Shirajul Islam Mollah Director 20 17 03 TK.85,000.00
8. Mr. Mizanur Rahman Bhuiyan Director 20 01 19 TK.5,000.00
9. Mr. Md. Shahadat Hossain Director 20 20 -- TK.100,000.00
10. Mrs. Marina Yasmin Chowdhury Director 20 11 09 TK.55,000.00
11. Mrs. Nazma Haque Director 20 18 02 TK.90,000.00
12. Mrs. Muslima Shirin Director 20 19 01 TK.95,000.00
13. Mrs. Salma Huq Director 20 10 10 TK.50,000.00
14. Mr. Nafis Sikder Director 20 09 11 TK.45,000.00
15. Mr. Tanjil Chowdhury Director 20 13 07 TK.65,000.00
16. Mr. Imran Khan Director 20 10 10 TK.50,000.00
17. Prof. Ainun Nishat Independent
Director 20 17 03 TK.85,000.00
18. Prof. Mohammed Aslam Bhuiyan Independent
Director 20 18 02 TK.90,000.00
19. Mr. Manzur Murshed Independent
Director 20 19 01 TK.95,000.00
SL
No.
the Meetings
Remuneration
Drawn
No. of
Meetings
Present Absent
1. Prof. Ainun Nishat Chairman 09 09 - Tk.45,000.00
2. Mr. Khandker Mohammed Khaled Member 09 03 06 Tk.15,000.00
3. Mr. M. A. Khaleque Member 09 05 04 Tk.25,000.00
4. Mr.Manzur Murshed
(Appointed on 01.06.2013) Member 05 04 01 Tk.20,000.00
5. Prof. Mohammed Aslam Bhuiyan Member 09 08 01 Tk.40,000.00
SL
No.
the Meetings
Remuneration
Drawn
No. of
Meetings
Present Absent
1. Mrs. Nasim Anwar Hossain Chairperson 01 01 - Tk.5000/-
2. Mr. Khandker Mohammed Khaled Member 01 01 - Tk.5000/-
3. Mr. Mafiz Ahmed Bhuiyan Member 01 01 - Tk.5000/-
4. Mrs. Muslima Shirin Member 01 01 - Tk.5000/-
5. Mrs. Salma Huq Member 01 - 01 -
Risk Management Committee Meeting: 2013
SL
No.
Name of Executives
% of Shares as at
31.12.2013
1. Chief Executive Officer and his spouse and minor children -
2. Chief Financial Officer and his spouse and minor children -
3. Company Secretary and his spouse and minor children -
4. Head of Internal Audit and his spouse and minor children -
SL
No.
Name of Past Member Designation
the Meetings
Remuneration
Drawn
No. of
Meetings
Present Absent
1. Mrs. Nazma Haque
(Upto 31.05.2013) Director 04 03 01 Tk.15,000.00
Audit Committee Meeting: 2013
Annual Report 2013
62
The pattern of Shareholding along with name wise details of:
i) Parent/Subsidiary/Associated Companies and other related parties: Nil
ii) Shareholding of CEO, CFO, Company Secretary & Head of Internal Audit:
Annual Report 2013
63
SL
No.
Name of Executives
% of Shares as at
31.12.2013
1. Mr. Muhammad Yasin Ali, DMD -
2. Mr. Kanti Kumar Saha, DMD -
3. Mr. Md. Tabarak Hossain Bhuiyan, DMD -
4. Mr. Quazi A.S.M. Anisul Kabir, DMD -
5. Mr. Habibur Rahman, DMD -
iv) Shareholding of Senior Executives (Top five salaried executives other than CEO, CFO, CS, HIA):
iii) Shareholding of Directors:
SL
No.
Name of Directors Position
% of Shares as at
31.12.2013
1 Mr. Md. Nader Khan Chairman 3.69
2 Mrs. Nasim Anwar Hossain Vice Chairperson 2.27
3 Mr. Mafiz Ahmed Bhuiyan Vice Chairman 2.00
4 Mrs. Marina Yasmin Chowdhury Director 2.03
5 Mr. Md. Shirajul Islam Mollah Director 2.01
6 Mrs. Nazma Haque Director 2.01
7 Mr. Khandker Mohammad Khaled Director 2.78
8 Quazi Sirazul Islam Director 2.00
9 Mrs. Salma Huq Director 3.13
10 Mrs. Muslima Shirin Director 2.00
11 Mr. Mizanur Rahman Bhuiyan Director 2.00
12 Mr. M. A. Khaleque Director 2.12
13 Mr. Imran Khan Director 2.00
14 Mr. Md. Shahadat Hossain Director 2.70
15 Mr. Nafis Sikder Director 2.51
16 Mr. Tanjil Chowdhury Director 2.00
(Representative of East Coast Shipping Lines Ltd.) (Share holding of East
Cost Shipping Lines Ltd.)
17 Prof. Ainun Nishat Independent Director -
18 Mr. Manzur Murshed Independent Director 0.003
19 Prof. Dr. Mohammed Aslam Bhuiyan Independent Director -
20 Mr. Md. Ehsan Khasru Managing Director -
Annual Report 2013
64
Report on Compliance of BSECs Notication on
(Notification No SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August, 2012)
Condition
No.
Title
Compliance Status
(Put in the appropriate
column)
Complied Not complied
Remarks
(if any)
1.0 Board of Directors
1.1 Boards size shall not be less than 5 and
more than 20
1.2 Independent Director
1.2 (i) Independent director: At least 1/5
th
of the
total number of directors
1.2 (ii) For the purpose of this clause independent
director means a director.
1.2 (ii) a) Independent director does not hold any
share or holds less than one percent (1%)
shares of total paid up capital.
1.2 (ii) b) Independent Director is not a sponsor of the
company and is not connected with the
companys Sponsor or Director or
Shareholder who holds 1% or more shares
of the company (certain family members are
also required to comply with this
requirement).
1.2 (ii) c) Independent director does not have any
other relationship, whether pecuniary or
other wise, with the company or its
subsidiary/associated companies.
1.2 (ii) d) Independent directors are not the members,
directors or officers of any stock exchange.
1.2 (ii) e) Independent director is not the shareholder,
director or officers of any member of Stock
Exchange or an Intermediary of the capital
market.
1.2 (ii) f) Independent director is/was not the partners
or executives during preceding 3 (three)
years of concerned companys statutory
audit firm.
1.2 (ii) g) Independent directors is not the
independent director in more than 3 (three)
listed companies.
1.2 (ii) h) Independent director is not convicted by a
court of competent jurisdiction as a
defaulter in payment of any loan to a bank
or a non-bank financial institution (NBFI).
Annual Report 2013
65
-
-
-
-
-
-
-
-
-
-
-
Condition
No.
Title
Compliance Status
column)
Remarks
(if any)
1.2 (ii) i) Independent director has not been convicted
for a criminal offence involving moral turpitude.
1.2 (iii) The independent director shall be appointed
by the Board of Directors and approved by the
Shareholders in the AGM.
1.2 (iv) The post of independent directors cannot
remain vacant for more than 90 days.
1.2 (v) The Board shall lay down a Code of Conduct
of all Board Members and Annual Compliance
of the Code to be recorded.
1.2 (vi) The tenure of office of an Independent
Directors shall be for a period of 3 (three)
years which may be extended for 1 (one)
term only.
1.3 Qualification of Independent Director (ID)
1.3 (i) Independent director shall be knowledgeable
individual with integrity who is able to ensure
required compliance.
1.3 (ii) The independent director must have at least
12 (twelve) years of corporate
management/professional experiences along
with other requisites.
1.3 (iii) In special cases above qualification may be
relaxed by the Commission
1.4 Separate Chairman and CEO and their clearly
defined roles and responsibilities.
1.5 Directors Report to Shareholders
1.5 (i) Industry outlook and possible future
developments in the industry
1.5 (ii) Segment-wise or product-wise performance.
1.5 (iii) Risks and concerns
1.5 (iv) Discussion on cost of goods sold, gross profit
margin and net profit margin
1.5 (v) Discussion on continuity of any extra-ordinary
gain or loss
1.5 (vi) Basis for related party transaction- a
statement of all related party transactions
should be disclosed in the annual report
1.5 (vii) Utilization of proceeds from public issues,
right issues and/ or through any others
instruments.
PBL does not
have such
gain or loss.
Annual Report 2013
66
-
-
-
-
-
-
-
N/A
-
-
-
-
-
-
-
Condition
No.
Title
Compliance Status
column)
Remarks
(if any)
1.5 (viii) An explanation if the financial results
deteriorate after the company goes for IPO,
RPO, Rights Offer, Direct Listing etc.
1.5 (ix) If significant variance occurs between
Quarterly Financial performance and Annual
Financial Statements the management shall
explain about the variance on their Annual
Report.
1.5 (x) Remuneration to directors including
independent directors.
1.5 (xi) The financial statements prepared by the
management of the company present fairly
its state of affairs, the results of its operation,
cash flows and changes in equity.
1.5 (xii) Proper books of account of the company
have been maintained.
1.5 (xiii) Appropriate accounting policies have been
consistently applied in preparation of the
financial statements and that the accounting
estimates are based on reasonable and
prudent judgment.
1.5 (xiv) International Accounting Standards
(IAS)/Bangladesh Accounting Standards
(BAS)/International Financial Reporting
Standards (IFRS)/Bangladesh Financial
Reporting Standards (BFRS), as --applicable
in Bangladesh, have been followed in
preparation of the financial statements and
any departure there-from has been
adequately disclosed.
1.5 (xv) The system of internal control is sound in
design and has been effectively implemented
and monitored.
1.5 (xvi) There are no significant doubts upon the
company's ability to continue as a going
concern.
1.5 (xvii) Significant deviations from the last years
operating results of the company shall be
highlighted and the reasons thereof should
be explained.
1.5 (xviii) Key operating and financial data of at least
preceding 5 (five) years shall be
summarized.
1.5 (xix) If the company has not declared dividend
(cash or stock) for the year, the reasons
thereof shall be given.
1.5 (xx) The number of Board meetings held during
the year and attendance by each director
shall be disclosed.
Annual Report 2013
67
N/A -
N/A -
-
-
-
-
-
-
-
-
-
N/A -
-
Condition
No.
Title
Compliance Status
column)
Remarks
(if any)
1.5 (xxii) In case of appointment/re-appointment of a Director the Company shall disclose
the following information to the Shareholders:
1.5 (xxii) a) a brief resume of the Director
1.5 (xxii) b) Nature of his/her expertise in specific
functional areas.
1.5 (xxii) c) Names of companies in which the person
also holds the directorship and the
membership of committees of the board.

2.1 Appointment of CFO, Head of Internal Audit
and Company Secretary and their clearly
defined roles, responsibilities and duties.
2.2 Attendance of CFO and the Company
Secretary at Board of Directors meeting.
3 Audit Committee:
3 (i) Audit Committee shall be the sub-committee
of the Board of Directors.
3 (ii) The Audit Committee shall assist the Board
of Directors in ensuring that the financial
statements reect true and fair view of the
state of affairs of the Company and in
ensuring a good monitoring system within the
business.
3 (iii) The Audit Committee shall be responsible to
the Board of Directors. The duties of the Audit
Committee shall be clearly set forth in writing.
1.5 (xxi) The pattern of shareholding shall be reported to disclose the aggregate number of
shares (along with name wise details where stated below) held by:
1.5 (xxi) a) Parent/Subsidiary/Associated Companies
and other related parties (name wise details)
1.5 (xxi) b) Directors, Chief Executive Ofcer, Company
Secretary, Chief Financial Ofcer, Head of
Internal Audit and their spouses and minor
children (name wise details)
1.5 (xxi) c) Executives (top five salaried employees of
the company other than stated in 1.5(xxi)b)
1.5 (xxi) d) Shareholders holding ten percent (10%) or
more voting interest in the company (name
wise details).
Annual Report 2013
68
-
-
-
-
-
-
-
-
-
-
-
-
2.0 Chief Financial Officer, Head of Internal Audit & Company Secretary
Condition
No.
Title
Compliance Status
column)
Remarks
(if any)
3.1 Constitution of the Audit Committee
3.1 (i) The Audit Committee shall be composed of at
least 3 members.
3.1 (ii) Constitution of Audit Committee with Board
Members including one Independent Director.
3.1 (iii) All members of the Audit Committee should
be financially literate and at least 1 (one)
member shall have accounting or related
financial management experience.
3.1 (iv) Filling of Casual Vacancy in Committee
3.1 (v) The Company Secretary shall act as the
secretary of the Committee.
3.1 (vi) The quorum of the Audit Committee meeting
shall not constitute without at least 1
independent director.
3.2 Chairman of the Audit Committee
3.2 (i) Chairman of the Audit Committee shall be an
Independent Director.
3.2 (ii) Chairman of the audit committee shall remain
present in the Annual General Meeting
(AGM).
3.3 Role of Audit Committee
3.3 (i) Oversee the financial reporting process.
3.3 (ii) Monitor choice of accounting policies and
principles.
3.3 (iii) Monitor Internal Control Risk management
process.
3.3 (iv) Oversee hiring and performance of external
auditors.
3.3 (v) Review along with the management, the
annual financial statements before
submission to the board for approval.
3.3 (vi) Review along with the management, the
quarterly and half yearly Financial Statements
before submission to the Board for approval.
3.3 (vii) Review the adequacy of internal audit
function.
3.3 (viii) Review statement of significant related party
transactions submitted by the management.
3.3 (ix) Review Management Letters/ Letter of
Internal Control weakness issued by
statutory auditors.
Annual Report 2013
69
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Condition
No.
Title
Compliance Status
column)
Remarks
(if any)
3.3 (x) When money is raised through Initial Public
Offering (IPO)/ Repeat Public Offering
(RPO)/Rights Issue the company shall
disclose to the Audit Committee about the
uses/applications of funds by major category
(capital expenditure, sales and marketing
expenses, working capital, etc.), on a
quarterly basis, as a part of their quarterly
declaration of financial results.
3.4. Reporting of the Audit Committee
3.4.1 Reporting to the Board of Directors
3.4.1 (i) The Audit Committee shall report on its
activities to the Board of Directors.
3.4.1 (ii) The Audit Committee shall immediately
reportto the Board of Directors on the
following findings, if any:
3.4.1 (ii) a) Report on conflicts of Interests.
3.4.1 (ii) b) Suspected or presumed fraud or irregularity
or material defect in the internal control
system;
3.4.1 (ii) c) Suspected infringement of laws, including
securities related laws, rules and regulations;
3.4.1 (ii) d) Any other matter which shall be disclosed to
the Board of Directors immediately.
3.4.2 Reporting of anything having material
financial impact to the Commission.
3.5 Reporting to the Shareholders and General
Investors.
4 External/Statutory Auditors should not be
engaged in:
4 (i) Appraisal or valuation services or fairness
opinions.
4 (ii) Financial information systems design and
implementation.
4 (iii) Book-keeping or other services related to the
accounting records or financial statements.
4 (iv) Broker-dealer services.
4 (v) Actuarial services.
4 (vi) Internal audit services.
4 (vii) Any other service that the Audit Committee
determines.
4 (viii) No partner or employees of the external audit
firms shall possess any share of the company
they audit at least during the tenure of their
audit assignment of that Company.
Annual Report 2013
70
N/A -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Condition
No.
Title
Compliance Status
column)
Remarks
(if any)
6 Duties of Chief Executive Ofcer (CEO) and Chief Financial Ofcer (CFO):
7 Reporting and Compliance of Corporate Governance:
5 Subsidiary Company
5 (i) Provisions relating to the composition of the
Board of Directors of the holding company
shall be made applicable to the composition
of the Board of Directors of the subsidiary
company.
5 (ii) At least 1 (one) independent director on the
Board of Directors of the holding company
shall be a director on the Board of Directors
of the subsidiary company.
5 (iii) The minutes of the Board meeting of the
subsidiary company shall be placed for
review at the following Board meeting of the
holding company.
5 (iv) The Minutes of the respective Board meeting
of the holding company shall state that they
have reviewed the affairs of the Subsidiary
Company also.
5 (v) The Audit Committee of the holding
company shall also review the Financial
Statements, in particular the investments
made by the Subsidiary Company.
6 (i) They have reviewed the Financial
Statements for the year and that to the best
of their knowledge and belief.
6 (i) a) These Financial Statements do not contain
any materially untrue statement or omit any
material fact or contain statements that might
be misleading. These financial statements
do not contain any materially untrue
statement or omit any material fact or contain
statements that might be misleading.
6 (i) b) These Financial Statements together
present a true and fair view of the companys
affairs and are in compliance with existing
accounting standards and applicable laws.
6 (ii) There are, to the best of knowledge and
belief, no transactions entered into by the
company during the year which are
fraudulent, illegal or violation of the
companys code of conduct.
7 (i) The company shall obtain a Certificate from
a Professional Accountant/Secretary
(CA/CMA/CS) regarding compliance of
conditions of Corporate Governance
Guidelines of the Commission and shall
send the same to the shareholders along
with the Annual Report on a yearly basis.
7 (ii) The directors of the company shall state, in
accordance with the Annexure attached, in
the directors' report whether the company
has complied with these conditions.
Annual Report 2013
71
-
-
-
-
-
-
-
-
-
-
-
We all are aware of the fact that the change in climate has
direct impact on biodiversity, agriculture, forestry, dry land,
water resources and human health. To safeguard the planet
and its eco-system from the adverse effect of
environmental degradation caused by rising carbon
emission, encroachment of rivers, improper disposal of
industrial waste, medical & household waste, deforestation,
loss of open space etc. Bangladesh Bank in line with global
norms has already introduced Green Banking and
sustainable practices for all scheduled banks of
Bangladesh and circulated a policy guidelines for Green
Banking, vide BRPD Circular No. 02 dated 27, February
2011.
Bangladesh Bank declared the following preferential
treatments for the compliant banks:
a) Points to be awarded on management component
while computing CAMELS rating resulted ultimately in
overall rating of the bank.
b) Top 10 (ten) Banks name will be declared in the
Bangladesh Bank website.
c) Consideration will be given while according permission
for opening new Branch of the Bank.
The Guidelines segregated the Green Banking activities for
implementing in 03 (three) phases. 1st Phase time lining
was within 31st December 2011. 2nd phase is within 31st
December 2012. 3rd phase will be within 31st December
2013.
Bangladesh Bank Rating on Green Banking
Bangladesh Bank has recognized Prime Bank Limited as
one of the top ten private commercial Banks for its
contribution to Green Banking activities across the country.
Green Banking Initiatives of Prime Bank
Prime Bank Limited has been positively upholding green
banking acts to accomplish its strategic goal of being a
green bank. Prime Bank Limited has always been devoted
to perform as an arbitrator between economic development
and conservation of the environment. Our Green Banking
activities cover multidimensional areas including both
in-house environment management and undertaking Green
Financing towards supporting Green Economy. Prime
Bank Limited believes that an environmentally
responsible bank do not only improve its own standard but
also influence socially responsible behavior of other
business entities. As one of the strategic focuses of Prime
Bank Limited is going green, which includes efficient
energy consumption, paperless office, financing renewable
energy etc. Prime Banks achievements in green initiatives
are detailed out in the green banking section.
Green Banking Policy
In light with Banking Regulations & Policy Department,
Bangladesh Bank vide their Circular No.02 dated February
27, 2011; Prime Bank Limited has outlined a
comprehensive Green Banking Policy for implementing
Green Banking activities.
Green Banking Cell
As directed by Bangladesh Bank, an independent dedicated
Green Banking Cell has been formed, which comprise of
representative of related divisions to implement and report
Green Banking initiatives of the Bank. The Green Banking
Cell (GBC) has been formed with the task of developing
policies, planning and overseeing the overall green banking
activities of the bank. All the Divisions, Branches and senior
level management have been informed on the principles
and responsibilities on their part. The cell is actively
working on respective areas for compliance under
supervision of High Powered Committee which was formed
with the members from the Board, as per guidelines.
Incorporation of Environmental Risk in CRM
Prime Bank has incorporated the Environmental Risk
Policy in its Credit Risk Management Policy as part of the
due diligence review. The incorporation of the
environmental scanning to assess credit risk of the
borrowers has improved CRM principles significantly.
Prime Bank is allowing facilities to the client on the
condition of supporting environmental matters and
obtaining permission from the related environmental
regulatory agencies. Regular monitoring is being done by
the respective Credit officials for existing Customers.
Green Banking Report
Annual Report 2013
72
In-house Management & Green practices
Since commencement Prime Bank Limited has been
maintaining a balance between strategic goal and business
activity, in order to control the effects of environmental
pollution. Prime Bank has adopted strategy to reuse,
recycle of materials and minimize waste as part of in-house
environmental management under Phase-II. Most of the
communications are done by using on-line network
facilities. Energy saving lights is being used instead of
traditional lights. Solar panel with adequate capacity has
successfully been installed in specific branches, SME
branches and ATM booths. Reduced utilization of electricity
and minimum uses of water and paper has become
mandatory for the officials. Air coolers are functioning on
auto temperature basis at optimum level which helps
limited running of compressor unit and subsequently saving
electricity. Employment notices are given on website and
online applications are invited now. After introduction of
SMS banking, green marketing is gaining momentum.
Through push and pull system, the customers are
becoming aware of banks new products and initiatives.
Internet Banking is also adding much value in this respect.
Setting up Green Branches and ATMs
A Green Branch is characterized by the prerequisite of
optimum use of natural light, renewable energy, energy
saving bulbs and other equipments, reduced water and
electricity use, etc. Such a branch of a bank is exclusively
nominated as Green Branch. As per Bangladesh Bank
guidelines, Prime Bank has successfully installed solar
panels with adequate capacity in 16 branches and 4 ATM/
SME branches.
Online Banking facilities
All the branches of Prime Bank are online. The bank has
expanded its ATM network and bill payment system has
been enabled through ATM. Prime Bank has used the
BACH and BEFTN mechanism for convenient payment
activities which greatly supports the concept of green
banking.
Mobile Banking facilities
Prime Bank Mobile Banking Service EasyCash is a
secured mobile financial service to access cash easily by
using mobile phone technology. EasyCash can be
accessed from anywhere at any time including remote rural
areas of the country. The EasyCash Account model of
Prime Bank works on the fundamental principle of giving
everyone an access to a bank account and adding value to
lifestyle of the customers.
Green Finance
Prime Bank is well aware of the environmental degradation
situation and has already given directions to the branches
from time to time to this effect.In order to reduce Carbon
emission, green house effects, dependency on traditional
energy, natural Gas as well as reduce the
water/environment pollutions in Bangladesh, Prime Bank
Limited has established a separate Cell under Corporate
Banking Division at Head Office of Prime Bank Limited
styled as Green Financing Cell "comprising representative
of related divisions i.e. Corporate, Agriculture, SME and
Export Finance for green financing under refinance scheme
of Bangladesh Bank to set up of Effluent Treatment Plant
(ETP), Bio-gas Plant, Solar Energy (i.e. Solar panel, Solar
home System, Solar mini Grid, Solar irrigation pumping
system, Solar PV Assembly plant), Water Electricity Plant,
PET bottle reprocessing plant, Solar battery reprocessing
plant, bulb production based in LED technology, Hybrid
Hoffman Kiln (HHK)/Tunnel Kiln, Converting into
Zig-Zag/VSBK from traditional local based brick field,
Organic manure Production, and Vermicompost. The
Green Financing Cell (GBC) has been formed with the task
of developing policies, Products, planning, financing,
reporting to management and Bangladesh Bank and
overseeing the overall green financing activities of the
bank.
Green finance as a core element of green banking makes
great contribution to the transition to resource efficient and
low carbon industries i.e., green industry and green
economy. Prime Bank financed various projects which are
environment friendly. The projects which contribute to
degradation or deterioration of the environmental issues
are usually avoided. With the maturity of industrial bases for
garments in the country, Prime Bank has continued
financing a significant amount towards installation of
Effluent Treatment Plant (ETP). At corporate level, Prime
Bank has a network with valuable exporters of the country
and adequate finances have been extended especially in
the garments and textile industries supported with ETP. In
2013, the bank extended finance of Tk 25.40 million for
installation of ETP and Tk 373.52 million for financing 3
projects having ETP. The bank has further strengthened its
green banking initiatives by financing environment-friendly
Hoffman Kiln and Zigzag based automated brick fields,
which contribute towards a greener climate. Prime bank
disbursed 49.50 million for financing Hybrid Hoffman Kiln
(HHK). Prime bank has also extended finance of Tk 0.35
million to set up of 2 bio gas plant. We are also looking
forward to finance Vermicompost as bio-fertilizer and
already financed a considerable amount of fund in
bio-pesticide project.
Capacity Building & Climate change Risks
In 2012, climate risk funds has been created and utilized
partially. Besides, the bank contributes to Government
initiative whenever there is demand for such fund. Prime
Bank is expanding its exposure in agricultural sector where
interest rate is lower than the regular rate of interest. To
educate its officials on the issues, Management, under due
recommendation of Green Banking Cell, has instructed to
arrange programs to educate senior level executives with
the collaboration of external parties of international
standard. Side by side, necessary publications in support of
educating clients for green initiatives have been instructed
to launch immediately using fund budgeted for green
marketing and capacity building activities. Prime Bank is
expanding its exposure in agricultural sector where interest
rate is lower than the regular rate of interest. Prime Bank
allocated Tk 15 million per quarter during 2013 for green
marketing, training and capacity building. In addition, CSR
activities had contributed to the field of health and green
finance as well.
Annual Report 2013
73
Annual Report 2013
74
Md. Ehsan Khasru
Kanti Kumar Saha
Deputy Managing Director & CBO
Ahmed Kamal Khan Chowdhury
Deputy Managing Director & COFGB
Quazi A. S. M. Anisul Kabir
Deputy Managing Director & COO
Habibur Rahman
Deputy Managing Director & COEM
Senior Management
Annual Report 2013
76
Management Committee
Asset Liability Committee
Alternative Delivery
Channel (ADC)
Agriculture Banking
Anti-Money Laundering
Team
Annual Report 2013
77
Management Teams
Management Teams
Audit & Inspection Team
Board Audit Cell
Board Secretariat
Annual Report 2013
78
Management Teams
Corporate & Public Affairs
Relationship Division
(C&PARD)
Credit Administration Division
(CAD)
Card Division
Annual Report 2013
79
Management Teams
Centralized Clearing Cell
& Internet Banking
Operations (CCC&IBO)
Corporate Banking Team
Credit
Risk Management
(CRM)
Annual Report 2013
80
Management Teams
Financial Administration
Division (FAD)
Facility Management
Division (FMD)
Human Resource Division (HRD)
Annual Report 2013
81
Management Teams
Islamic Banking Division
International Division (ID)
IT Infrastructure
Annual Report 2013
82
Management Teams
IT Operations
Legal & Recovery
Marketing
Annual Report 2013
83
Management Teams
Operations
Monarch
(Premium Banking)
Research &
Development
(R&D)
Annual Report 2013
84
Management Teams
Retail Banking Division (RBD)
Risk Management Division
(RMD)
SME Banking
Annual Report 2013
85
Management Teams
Trade Services
Treasury Division
Annual Report 2013
86
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Annual Report 2013
87
Group Corporate Structure
Prime Bank Investment Ltd. (99.99%)
Prime Bank Securites Ltd. (95%)
Prime Exchange Co. Pte. Ltd. Singapore (100%)
PBL Exchange (UK) Ltd. (100%)
PBL Finance (Hong Kong) Ltd. (100%)
Bangladeshi Companies Overseas Companies
Prime Bank Limited
Annual Report 2013
88
Annual Report 2013
89
Management Discussion &
Analysis
The countrys scheduled banks in the year 2013 showed
a mixed performance as some banks posted healthy
operating proft while other banks lost their proftability
due to business stagnation amid political unrest. The
banking sector had faced different types of crisis in the
completed year as the private sector plunged in a debacle
due to the frequent violence amid political disputes ahead
of the general elections. The credit demand for the private
sector declined signifcantly in the period as the business
people were reluctant to expand their operation by taking
credit from the banks which ultimately put negative impact
on the banks proft. Credit disbursement is the signifcant
business for the banks and it mainly controls the proft.The
credit growth in the private sector declined continuously
in the last few months which stood at 11.04 per cent in
October against 20.60 per cent in the corresponding month
of 2012. Due to a lower loan demand, majority number
of the banks declined their interest rate on lending and
deposit products. The banks import business decreased
signifcantly in 2013 as the import of capital machinery
and the industrial materials declined, a good amount of
proft from the LC opening and settlement. Besides, the
fnancial scams in the banking sector also hit the banks
business in the last year. Banks were able to manage their
treasury operation successfully in the last year which had
fnally achieved proft. The banks have earned signifcant
amount of proft by investing government securities as the
regular business faced a recession due to the unfriendly
business environment.
What we did good
l Excellent Brand Image
l Network of 117 branches and 17 SME branches at
strategic fnancial centers
l Deep market penetration and continuous growth in
corporate, commercial and trade fnance sectors
l Good market share and sound fnancial
performance
l Islamic banking products and services including
Islamic Credit Cards
l Off-shore banking in major EPZs
l Exchange Houses (fully-owned subsidiaries) at
Singapore and UK for remittance business
l PBL Finance (Hong Kong) Ltd., a fully owned
subsidiary for fnancing and remittance business
l Real-time online banking through core banking software
Temenos T24, a world class technology platform
l Expansion of ATM services and KIOSK
l Internet Banking, SMS Banking and Phone Banking
l Credit Cards
l Consumer fnance
l Small & Medium Enterprise (SME) fnance
l Syndicated fnancing
l Merchant banking activities through Prime Bank
Investment Limited (fully-owned subsidiary)
l Brokerage activities through Prime Bank Securities
Limited (fully-owned subsidiary)
l Corporate governance and CSR activities
l Management team and skilled HR
l Wide customer base
l Growth of foreign exchange business despite slow
economic situation
l Continuous expansion of branches
l Diversifed product base
Business Review
Corporate Banking Division
Bangladesh is walking through the industrialization
process in various sectors, leaving behind the identity of
under developed country to developing country. To achieve
this sustainable growth, Prime Bank Ltd. (PBL) is working
hard and has initiated their focus on entertaining large
corporate houses with a dedicated team under Corporate
Banking Division (CBD). We have gone through economic
slowdown in the year 2013 due to political instability.
CBD serves through six wings namely (i) General Credit
Unit, (ii) Export Finance Unit, (iii) Lease Finance Unit (iv)
Structured Finance Unit (v) Corporate Relationship Team
and (vi) Corporate Liability Marketing Team.
Corporate Loan Mix
Other Loans (SOD)
13.05%
Commercial Lending
10.01%
Industrial Loan
70.61%
Export Financing
3.14%
House Building Loan
3.20%
Annual Report 2013
90
General Credit Unit (GCU)
Considering the nature of Credit appraisal, General
Credit is handled by two units dividing into two regions,
one is GCU-1 and another is GCU-2. These units handle
proposals other than Export and Lease & Structured
Finance. Presently they are taking care of essential
commodity trading and processing, construction,
pharmaceuticals, telecommunications, real estate, work
order fnancing (for construction of roads, highways,
bridges, jetty, embankment, rehabilitation and new
construction of railway lines etc.), ship building, ship
breaking, manufacturing and steel re-rolling, renewable
energy, health etc. With a well-defned structure to handle
credit proposals, GCU team is engaged with processing
the proposals complying with regulatory issues and
guidelines. After getting request/proposal from branches,
proper scrutiny is done by GCU and then places it to the
competent authority for approval. With experienced and
trained offcials, GCU has been maintaining an enviable
standard of credit processing. Team members also keep
communication with customers from Head Offce end to get
more understanding on business needs, so that the proper
banking solution can be provided.
Export Finance Unit
Prime Bank Ltd. has a sizable portfolio in export
fnancing to support the growing and important textile and
Readymade Garments (RMG) sectors of the country and
it becomes necessary to take the challenge of serving
existing Exporters with a specialized team to add value and
support 100% export oriented customers. The countrys
major earning comes from export of readymade garments.
Home textile, sweater, knit and other specialized factories
are getting quick support to get various banking services
and assistance from this unit. With 27 Authorized Dealer
(AD) branches and 3 Off-shore Banking Units (OBUs) PBL
is well equipped to serve the countrys export oriented
industries. RMG Monitoring Team was set up under Export
Finance Unit for better understanding of the business and
quick transaction support.
Corporate liability marketing and cash management unit
Cash management plays a vital role in sourcing low cost
deposit providing Transactional Value to customers in an
increasingly competitive market for fund mobilizations at
competitive rates. This team deals with offering various
cash management products and investment solutions
to the existing and prospective corporate clients in line
with their cash fow/cash cycle and investment/savings
appetite. This will facilitate better cash management,
reduce cost of fund and most importantly ensure maturity
matching between banks asset and the corresponding
liabilities. Cash Management solutions thus help
customers in managing liquid assets which include
corporate salary account, collection account of large
business houses, correspondent banking arrangements
for other banks, insurance companies, leasing and
fnance companies, state owned corporations/entities, etc.
Investment solutions include different Current Accounts,
SND Accounts, Term Deposit Account etc. In addition,
corporate liability team also provides a wide range of
corporate fund management solutions for business
houses using online banking platform of PBL through its
134 branch network all over the country.
Corporate Relationship Team
Considering the challenges in line with PBLs priority to
serve customers with better solutions, a new unit named
Corporate Relationship Team (CRT) under Corporate
Banking Division has been formed. The main objective of
the team is to provide better coverage to top tier valued
corporate customers with a view to know the customers
needs and to provide customized solutions. PBL values
the relationship with its customers most and always
provides the best possible services. The team directly
maintains contact with corporate customers along with
branches. The aim is to provide one stop services to the
customer more effciently and timely manner. Dedicated
relationship managers are placed under this team, who
are responsible to manage the relationship with customers
to understand and cater to customers needs.
Lease Finance
With a view to further strengthening and making it more
effective, the bank has formed a separate Lease Finance
Unit under Corporate Banking Division which commenced
operation from 2001. Leasing is a method of fnancing
for acquisition of capital machinery/equipment/vehicles
involving a contractual relationship in which the Lessor
grants exclusive right to the Lessee to use the machinery/
equipment for a stipulated period of time in exchange
of a series of rentals. Thus, leasing enables the lessee
to avail the uses or services of a machinery/equipment
without investing his own fund. Lease Finance yields
Industrial Loan Mix
Agriculture
2.01%
Textile
8.90%
Food and allied
6.93%
Others (including
bills) 56.29%
Pharmaceuticals
2.74%
Tobacco
0.89%
Transport and communication
9.23%
Service 5.84%
Leather, chemical, cosmetics
1.56%
Cement and ceramic
5.60%
Annual Report 2013
91
comparatively higher rate of return. Moreover, lease
fnancing is a secured form of credit as the bank retains
the ownership of the leased items.
Lease Finance unit under Corporate Banking Division
is also taking care of the NBFI (Non-banking Financial
Institution) and fnance to the reputed and sound
institutions considering growth and NPL position.
Lease Finance Unit of the Bank undertakes the following activities:
l To diversify credit portfolio for minimizing
investment risk
l To add more value to the investment since yield is
higher comparing other modes of fnance
l To reap the beneft as a fnancial service provider
having an edge over other leasing companies
operating in the country, who have to tap resources
from banks at a bit higher price
l To take an effective role in the industrial
development of the country
l To help generate employment opportunities by
providing fnancial assistance to different projects
promoted by entrepreneurs and professionals
At the end of the year, 2013, the lease fnance portfolio
of the Bank stood at Tk. 5.41 billion. Prime Bank Limited
offers lease fnance facility against the following items:
l Capital Machinery required for industrial unit
l Capital Machinery required for BMRE of the
existing industrial units
l Medical Equipment for clinics, pathological
laboratories, hospitals etc.
l Elevators, Central Air Conditioners, Generators etc.
l Vehicles including luxury coach, bus, minibus,
micro-bus trucks etc. &
l Construction Equipment
Apart from this, the Bank extended loans to 15 Non-
Banking Financial Institutions (NBFIs) against which total
outstanding was Tk. 1.42 billion at the end of the year 2013.
Structured Finance Department
Structured Finance Department (SFD) of Corporate
Banking Division offers a project specifc need based
customized, friendly and fexible fnancial solutions/
package in a cost-effective manner. SFD is staffed with
experienced and skilled personnel with in-depth product,
market and industry knowledge. The team specialized
in syndicated and project fnancing with a focus on
infrastructure, industrial and service sector projects. At
the close of 2013, portfolio size of SFD stood BDT 12,389
million which is around 11.57% of the total portfolio under
Corporate Banking Division. During 2013, in addition to bi-
lateral project fnancing, SFD has closed two syndicated
deals as Lead Arranger and Agent by arranging syndicated
term loan of BDT 3960 million for Star Ceramics Pvt. Ltd.
and additional syndication loan of BDT 680 million for Sea
Pearl Beach Resort & Spa Ltd.
Besides, Prime Bank also participated in foreign
currency syndicated loan for USD 15.0 million out of
total syndication term loan of USD 90 million under Lead
Arrangement of HSBC for Abul Khair Steel Melting Ltd.
Prime Bank is also acting as an Investment Agent for
International Islamic Corporation for the Development
(ICD) of the Private Sector for the Islamic tranche of USD
25 million contributed by ICD in the above syndication
transaction. During this tenure, SFD has earned total fee
income of BDT 53.17 million which is the highest amount
of fee income SFD has earned since its inception.
Trade Finance
As part of Strategic Priorities & Action Plan, Prime Bank
has started centralization process of its Trade Finance
Business operation from February, 10 2013. The primary
objective of centralization of Trade Finance Business
operation was to optimize utilization of resources and
their expertise under one roof, without compromising
procedural control while enhancing service standards and
minimizing transactional turnaround.
For smooth operation and to provide prompt and fawless
services to the customers of both AD & Non AD Branches
of the bank, the bank management has decided to
operate trade related activities of the bank by setting-up
six separate regional trade services hub in the country.
Retail Banking
Prime Bank has specially focused on Retail Banking due to
its higher return on investment. Irrespective of nationwide
political unrest, once again this division strived and
achieved its goal for the year and created its mark in the
fnancial market. The bank is one of the largest providers
of Retail Banking services in Bangladesh. The year 2013
was another successful year for Retail Banking Division
both in terms of business and operational expansion.
Retail Loan portfolio of Retail Banking Division witnessed
a good growth. While retail loan portfolio of the bank had
a growth of 7.40% in the year 2013. Newness, changes
and improvement were not only found in retail products
but were also generated in operational structure. In
2013, Retail Loan Limit loading has been centralized and
disbursement of 26 branches is being done centrally. Credit
Assessment Offcers are physically visiting customers
Annual Report 2013
92
when required and this helps toward maintaining a quality
portfolio.
A new department has been incorporated in Retail
Banking Division to excel and exceed the current
business and service standard. A separate unit called
Service Quality Unit was launched this year to focus on
customer service standard of the bank. Service Quality
(SQ) has published online (intranet), the frst Customer
Service Policy Manual of the bank called Prime Service
Excellence. It has already started its operation through
customer service surveys, trainings and workshops.
Already 638 employees (Front Desk Offcers) of 123
branches received Service Quality Training. On the other
hand, Telephone Communication Survey (TCS) was
launched to assess product knowledge and telephone
etiquettes of service providers of branches.
Another value center called Premium Banking has
been formed in the year 2013. Premium Banking will be
launched in the year 2014. This exclusive service will
be extended to those customers maintaining a balance
above a certain threshold limit in their accounts.
Premium Banking
Prime Bank Ltd is making a speedy progress to establish
itself as the high quality, customer centric, service driven
and technologically advanced bank in the country. It
has adopted international best practices, operational
excellence and offers comprehensive banking and
fnancial solutions to all its valued customers. The
management of Prime Bank Ltd has approved to
introduce Premium banking service which is named as
Monarch. The idea behind such type of banking is to
provide hassle free services to its frst class customers.
Monarch is a symphony of banking benefts, unique
investment products, personalized service and exclusive
lifestyle benefts that brings complete harmony to all
fnancial needs of a customer. Its an exclusive service
that is embarked for a privileged few who maintain an
average given balance above a certain threshold limit in
their account.
Credit Card
Plastic card is the sharp weapon for future banking
business and Prime Bank Limited is a leading name in the
plastic card market. Every day we try to add more value
to our existing customers through ensuring convenience
while they shop, dine, stay at hotels, roam cities and
countries or anytime they swap the card anywhere.
Aggressive card selling of some market players and
fnancial & political turmoil put in a hard challenge for
the card industry in keeping the asset quality in good
shape in 2013. Special recovery drive conducted by the
business people along with the Collection Wing brought
a remarkable outcome in pulling the classifcation rate
to a tolerance level this year. Our vigorous footsteps
throughout the year encompassed grand launching of
Shariah based Islamic Credit Card Hasanah Credit
Card through a gala night, issuing pre-paid hajj card for
the pilgrims and starting the JCB Card online acquiring.
Our unique selling proposition in terms of promotional
campaign was the Reward Card launching in 2013, which
is a complimentary card with prepaid balance based on
reward points or Shop n Win winning categories. Gradual
replacement of old POS terminals by new GPRS POS
and application installation for EMV acquiring were also
important strategic movements of Card division in this year.
We have signed an agreement with more than 100 merchant
outlets, with 5 50 percent discount offer for Prime Bank
Credit Card holders, under Merchant Campaigns in 2013.
Home Loan
Retial Asset Portfolio
Un-secured Loan
44%
50%
6%
Semi-Secured Loan
CASA
Retial Liability Portfolio
Scheme Fixed Deposit
33%
20%
47%
Annual Report 2013
93
Key Performance
Indicators
Year
2010 2011 2012 2013
% Growth
Over 2012
Card Base 48,376 57,741 67,947 76,442 13%
Advance (BDT in
million )
517 750 915 1,042.20 14%
Operating Proft (BDT
in million )
55.32 65.37 80.23 94.00 17%
SME Banking
SMEs play a vital role in any economy in terms of
employment, income, innovation and the development of
local markets and supply chains. Most of the SMEs assist
in regional and local development since they accelerate
rural industrialization by linking it with the more organized
urban sector. SMEs use a combination of innovation,
improvisation to develop local products and services for
local needs using local resources. Thus through the SMEs,
it is possible to achieve fair and equitable distribution of
wealth by regional dispersion of economic activities.
Keeping this in view, Prime Bank Limited has formulated
a comprehensive policy on SME fnancing and made
signifcant progress in fnancing this sector and the Bank
is offering congenial lending products and services so that
SMEs can aspire to opportunities of growth and wealth
generation.
Prime Bank Limited has been operating SME business
as one of the market leaders in Bangladesh successfully
since 1995. For successful SME operation, the division
adopted centralized operating practices by developing
need-based, market oriented and transparent check &
balance working models.
The Board has approved SME Financing Policy in
its 318
th
meeting held on 20.04.2009
Established a centralized SME Banking Division
on July- 2009 and dedicated SME desk in all
Branches
Separate SME dedicated desk for Women
Entrepreneurs
Separate monitoring team for SMEs
Separate team for selling loan and collecting
deposit through SME products
Special Credit Risk Management team for SME
Banking
Different trainings for SME offcials as well as for
entrepreneurs
Commission/incentives based on the performances
of Direct Sales team and a dedicated collection
team for SME loan
Customized products and services for SME.
Establishment of 17 SME/Agri Branches at
different places in Bangladesh.
Developed 7 SME loan products.
Developed clusters under area approach etc.
Prime Banks strategy is to focus on marketing the
products to wider range of customers and providing
working capital and term loan to different manufacturers,
traders and service providers including backward and
forward linkage industries that fall into SME segment.
Trade
Sector-wie SME Outstanding
Manufacturing
17%
49%
Service
34%
Small
Sector-wie SME Outstanding
Micro
7%
49%
Medium
44%
Division-wise SME Outstanding
Dhaka 63%
Chittagong 17%
Sylhet 4%
Rangpur 3%
Rajshahi 10%
Khulna 3%
Annual Report 2013
94
Capacity Building Activities
With a view to increasing focus on the SME business,
Prime Bank puts its efforts for the development of this
sector by participating in various road shows, workshops,
forums and fairs to build awareness among the customers
as well as for capacity building of the SME offcials. In line
with the trend of contemporary business and regulatory
requirement, the management of the Bank has recently
declared all its conventional branches as SME branches.
Prime Bank Limited organized a day long workshop on
SME fnances and SME Reporting at a local hotel in
Dhaka on 11th May, 2013.
SME Marketing Strategy
With a view to increase focus on the SME business, and to
be in line with the regulatory guideline for SME business
Prime Bank Limited declared and observed an SME
Month in September, 2013 for door to door marketing of
SME products.
Prime Bank Limited is relentlessly working to ensure a
vibrant national economy through fnancing in the SME
sector. Prime Bank Limited has already taken several
initiatives conducive to the overall growth of this sector; it
is putting an increasing focus on the development of SME
sector following the guidelines of Bangladesh Bank.
Prime Bank is a party to various refnance programme
executed with Bangladesh Bank for making available
easy fnance to SME sector. So far Prime Bank received
Tk. 3841 lac against 889 clients from various re-fnance
scheme of Bangladesh Bank.
Financing women entrepreneurs under SME
Another notable idea in SME fnancing is the development
of women entrepreneurs. In the new framework of SME,
Prime Bank is giving top priority in developing and
harnessing women entrepreneurs. Bank has designed
a separate product Anchol for women entrepreneurs.
In order to empower of the Women, Prime Bank has
disbursed Tk. 697 lac to 120 clients at lower interest rate.
Agriculture Financing
Agriculture is the key driving force of the economy of
Bangladesh. The overall economic development of the
country is closely interlinked with the development of the
agricultural sector. There is no alternative but to increase
production through the development of agriculture to
ensure food security, similarly, agriculture is still now the
largest employment generating sector of Bangladesh.
Besides, agriculture makes the largest contribution
to favorable Balance of Payment position through
poverty alleviation, providing raw materials for industry,
reducing imports and enhancing exports. According
to the Agricultural/Rural Credit Policy and Program of
Bangladesh Bank, crop, fsheries, livestock and green
fnance will have to be given priority.
Agriculture as a sector depends more on credit than
any other sector because of seasonal variations in
farmers returns and a changing trend from subsistence
to commercial farming. In the absence of necessary
working capital for buying water, fertilizer and pesticides,
coupled with the lack of the knowledge for their balanced
application, farmers often fail to reap a better harvest from
modern technology-led crops.
In line with Government efforts as well as the Bangladesh
Bank guidelines, PBL continued its proactive policy and
program support to boost up agriculture fnancing. PBL
also recognizes Agriculture / Rural Credit as one of the
major tools for ensuring inclusion of the rural people
into the banking activities and plays a major role in the
overall economic development of the country. In the
absence of own branch, network the bank has largely
been depending on third party networks (NGOs/MFIs). It
is pertinent to mention that while using third party network
the bank is extremely selective in choosing the NGOs/
MFIs in order to eliminate or reduce the possibilities of the
accounts being delinquent. In spite of all odds PBL has
been ceaselessly trying to contribute to the sector and will
continue doing so in the future for the greater interest of
the country.
Agriculture Loan by purpose
PBL clients receives loan for various purposes. Most of
them are related to crops, fsheries, livestock (dairy, beef
fattening, poultry, etc.) and poverty alleviation.
Taka in Million
SL Purpose
2012 2013
Disbursement
Outstanding
as on
31.12.2012
Disbursement
Outstanding
as on
31.12.2013
1
Crops /
Vegetables
cultivation
665.58 516.38 1547.258 1872.45
2 Fisheries 100.38 122.75 66.37 127.20
3 Livestock 361.85 424.44 487.787 511.16
4
Irrigation
equipment
36.05 32.61 21.48 33.49
5
Farm
Machineries
26.95 26.06 10.202 32.57
6
Crop storage
& Marketing
and Others
359.43 236.45 375.949 140.79
7
Poverty
Alleviation
84.88 70.12 40.147 314.34
Total 1635.12 1428.82 2549.19 3032.00
Table: Agriculture Loan by purpose
Annual Report 2013
95
Target and Achievement of the FY 2012-2013
Prime Bank Limited has achieved the Agricultural/Rural
Credit disbursement target for the fscal year 2012-13
successfully. During the FY 2012-2013, Prime Bank
Limited disbursed a total amount of agricultural/rural
credit for Tk. 296.57 crore which is 107% of the target.
Target for Agricultural/Rural Credit Disbursement for the
FY 2013-2014
In line with the Agricultural/Rural Credit Policy and Programme
of Bangladesh Bank, a target of agricultural credit amounting to
Tk.278.00 crore only has been set for PBL for the FY 2013-2014.
Islamic Banking
Islamic banking products and services based on Islamic
Shariah introduced by Prime Bank through its fve
Islamic banking branches got tremendous response from
a considerable portion of its clientele who are eager to
accept Shariah compliant products and services. Prime
Bank is also offering Islamic banking products and
services through Islamic Banking Service Desks set up at
its conventional banking branches.
The bank identifes all of its Islamic banking activities by
adopting a generic name Hasanah - the brand name for
Harvesting pointed gourd (Potol) fnanced by Prime Bank Ltd
A Dairy Farm fnanced by Prime Bank Ltd
A Poultry (Layer) farm fnanced by Prime Bank Ltd
A Fisheries project fnanced by Prime Bank Ltd
Product-wise Outstanding 2013
61.76%
4.64%
10.37%
1.10%
1.07%
16.86%
4.20%
Crops / Vegetables
cultivation
Farm Machineries Crop storage & Marketing
and Others
Fisheries Livestock Irrigation equipment
Poverty Alleviation
Agricultural Loan Disbursement during 2013
60.70%
14.75%
1.57%
0.40%
0.84%
19.13%
2.60%
Crops / Vegetables
cultivation
Farm Machineries Crop storage & Marketing
and Others
Fisheries Livestock Irrigation equipment
Poverty Alleviation
Annual Report 2013
96
Islamic products and services of the bank, which has been
used in the Quran and the Hadith to denote good deed,
welfare, virtue, beauty spot etc. The strategy to launch
Hasanah brand has proved to be a good move - the
Islamic banking business is growing at a competitive rate
despite various limitations for its expansion. This growth
is also comparable to the overall growth of the Islamic
banking sector of the country.
The Islamic banking manpower of the bank is more than
one hundred for whom the bank arranges regular training
programs on operation of Islamic banking. Prime Bank is
an active member of Central Shariah Board for Islamic
Banks of Bangladesh and Islamic Banks Consultative
Forum. Thus Prime Bank is committed to uphold the
sentiment of majority of the people in the country as A
bank with a difference.
Nationwide, Islamic banking earned around 20% market
share of the banking sector (private commercial banks)
of Bangladesh. Among the Islamic banks, fully fedged
Islamic banks conduct around 95% of the Islamic
banking business of the country while the rest is done
by the conventional banks having Islamic branches and
windows. Among these banks, Prime Bank has the lions
share around 30% of the market share in deposit,
investment and proft.
Since inception, Islamic banking business of Prime Bank
marked steady growth in all areas - deposit, investment
and proft. The Islamic banking business of Prime Bank is
growing at a competitive rate.
Cost Effectiveness of Islamic banking products is better
compared to overall business - Cost of Deposit 8.07%,
Cost of Operation 0.79% and Cost of Fund 8.86%. In the
income matrix, Islamic banking business of Prime Bank
also shows reasonable performance - Yield on Advance
16.68%, Spread 8.61% and Burden Coverage 88.46%.
In Islamic banking, employee productivity of Prime Bank
is also very high income per employee is 12.52 million
taka, expenditure per employee is 1.44 million taka,
proft per employee is 11.08 million taka and employee
expenses to operating proft is 7.93%.
Activities for the year 2013
As per decision of the management, Hajj Campaign 2013
was conducted with a view to provide service to the Hajj
Pilgrims and mobilize deposit in the process. For the
purpose, a team of offcials worked under the supervision
of Islamic Banking Division to provide marketing and
sales effort. The performance of the team was excellent
targeted number of agent accounts were opened and fees
of thousands of pilgrims as low-cost deposit was mobilized.
Two meetings of the Shariah Supervisory Committee were
arranged where different operational issues were reviewed
and the Muraqibs of Shariah Supervisory Committee
conducted Shariah audit and inspection at the Islamic
banking branches and submitted reports thereon. Besides,
Medical Camp at Bishwa Ijtema was arranged where
thousands of devotees were given primary health services
for the consecutive ffth year.
Prime Bank has been selected to act as Investment Agent
for the Islamic Financing (USD 25 million) as part of the
syndication (USD 90 million) fnanced by HSBC (lead
arranger), Prime Bank (conventional) and ICD (Islamic)
for implementation of Abul Khair Steel Melting Ltd under
Islamic banking mode sale and lease back for the frst
time in Bangladesh.
Treasury Function
Treasury is a vital and indispensable part of the banking
industry and Prime Bank's Treasury is not an exception.
Over the last couple of years Prime Bank's Treasury
has been continuously performing very well despite
adversaries & global economic turmoil. In spite of having
diffculties and political unrest in 2013, Treasury achieved
most of the KPIs successfully, even exceeded in some
areas especially in Liquidity Management, Primary
Dealers Operations, Government Securities Trading &
Foreign Currency Investment and Dealing.
In 2013, the Local Money Market as well as Foreign
Exchange Market was quite liquid. This was primarily due
to the slowdown in our local investment. In this situation,
to support the countrys industrial sector and to revive
investors confdence, Bangladesh Bank took several
steps to ensure adequate credit fows to maintain steady
economic growth while containing infation.
Prime Bank is one of the most active PDs in both the
Primary & Secondary Market of Govt. securities. All over
the year 2013, Treasury of Prime Bank actively participated
in both the Primary & Secondary Market of Govt. securities
as it wanted to boost its market involvement. The outcome
was total turnover in secondary Govt. securities trading
crossed BDT 13,982.10 million and we earned BDT
152.25 million as capital gain in 2013.
Prime Bank Money Market Desk was very active in
the money market all through the year. The revenue
generated by MM Desk in 2013 depicts that picture. It was
able to generate revenue of BDT 235.30 million in 2013
which was BDT 81.78 million in 2012.
Interbank Foreign Exchange Market was also very stable in
2013 with very low volatility in USD/BDT rate. Bangladesh
Bank managed USD/BDT rate very successfully to
protect the interest of the exporters and at the same time
control the rate within its tolerable limit. In order to offer
the best possible service, Prime Bank Foreign Exchange
Desk provided a wide range of Treasury products to
Annual Report 2013
97
its customer such as Local Currency Spot & Forward,
best cross currency, forward and SWAP rates. In 2013,
Foreign Exchange desk handled a business volume of
USD 3,760.06 million. The inward remittance at the end
of 2013 stood at USD 419.66 million.
Asset Liability Management (ALM) is an integral part of
Bank Management. Through ALM Prime Bank aims to
achieve various objectives like proftability, stability of
earnings, growth in assets and liabilities and containment
of risk in a coherent manner. ALM desk of Prime Bank
Treasury through its own market research and market
intelligence very correctly presented the overall investment
and fund deployment opportunities in the market and the
same time also presented the banks overall fnancial
position in front of the senior management to formulate
an effective investment and fund management strategy
for the bank. The overall proftability of the bank in 2013
considering its balance sheet size and the risk it was
exposed to refects its achievement.
Treasury, as a major contributor to banks revenue line,
contributed suffciently in 2013. All our strategy and
policies that were adopted in 2013 paid us very well and
helped us to have a proftable 2013. Overall Treasury
revenue numbers in 2013 from different revenue heads
are given below with a comparison of 2012 to show the
growth in its business horizon and revenue line:
Treasury Income
Million BDT
Foreign Exchange Gain 930.44 1,123.57
Interest Income Call Loan 91.89 1.85
Interest Income on Placement /Deposit
(Local)
0.90 0.30
Interest Income on Placement /Deposit
(Foreign)
142.51 79.63
Interest Income on Govt. Securities 4,650.71 3,806.59
Interest Income on Debenture/Bonds 96.61 117.15
Capital Gain for Sell of Govt. Sec. 152.25 92.56
Gain on discounted bond/bills 672.17 497.41
Underwriting Commission regarding
Treasury Bill/Bond
21.71 17.17
Total 6,759.19 5,736.23
Growth 17.83%
Foreign Remittance
Persistent effort with maximum dedication in providing
remittance service has contributed in upholding Prime
Banks name to the remitter abroad and benefciary at
home. Prime Bank maintained a consistent trend of
inward foreign remittance throughout the year. The Non-
Resident Bangladeshis (NRBs) routed remittance to Prime
Bank through its networks of exchange companies and
banks. The Bank handled total Inward Foreign Remittance
of Tk 3,262.83 crore compared to Tk 4,244.25 crore in
2012. Prime Banks inward remittance network attains
further strength with the inclusion of global remittance
provider RIA Financial Services of USA in 2013. The
network now covers locations including Saudi Arabia,
Singapore, UAE, UK, Malaysia, USA, Italy, South Korea
and Oman. For providing better and effective services to
the Bangladeshi expatriates living and working in different
parts of UAE, offcials of Prime Bank are working in UAE
under deputation.
Prime Bank has ensured greater access to the unbanked
population of different remote areas with the strategic
alliances for distribution of remittance with BURO
Bangladesh and UDDIPAN. The Centralized Foreign
Remittance Cell (CFRC) has served customers through
effcient mechanism of distributing foreign remittance to
the benefciary. Benefciaries are informed through SMS
regarding account credit through our in-house software
RemitF@st. A number of offcials of PBL visited UAE and
Malaysia to promote products of the Bank to expatriates
through participating in different fairs/campaigns.
Correspondent Relationship
PBL has a wide correspondent relationship with
banks around the world to facilitate international trade
transactions. As on December 31, 2013 the number
of relationship stood at 661 covering 267 banks spread
across 80 countries. PBL maintains 38 Nostro Accounts
in 10 major currencies with reputed international banks
around the world in all the important global fnancial
centers. PBL also offers Vostro account service to foreign
Treasury Income
2012 2013
0
2000
1000
3000
4000
5000
6000
7000
8000
5
,
7
3
6
.
2
3

6
,
7
5
9
.
1
9

F
i
g
.

i
n

m
i
l
l
i
o
n
Annual Report 2013
98
correspondents. PBL enjoys suffcient credit lines from
its correspondents, including Credit Limit under TFFP of
Asian Development Bank (ADB), for adding confrmation
to letter of credit as and when needed. During 2013 PBL
availed bilateral loan in USD from Correspondent Banks
for use in trade fnance transactions through Offshore
Banking Units.
Offshore Banking
Prime Bank is offering Offshore Banking facilities through
3 (three) Offshore Banking Units (OBU) located in Dhaka
Export Processing Zone, Chittagong Export Processing
Zone and Adamjee Export Processing Zone. Total Loans
and Advance of three OBUs reached to USD 77.81 million
as on December 31, 2013 compared to USD 61.30 as
on December 31, 2012, recording a growth of 26.93%.
During the year 2013, OBUs have made a Proft of USD
1.42 million as against USD 1.84 million in 2012.
Information and Communication Technology
PBL has always upgraded itself with the latest technology
and time-to-time the bank has adopted different
advantages of the technology which has enriched its IT
infrastructure. Technological development of the bank
tremendously increased its customer service as well as
trust worthiness of the stakeholders towards the bank.
Major IT initiatives in the year 2013 are:
IT Infrastructure
Information Technology (IT) Division of Prime Bank Limited
was established at the beginning of its banking operation.
The division is well equipped not only with technology,
but also with a dedicated professional workforce which
has been built-up for support as well as development of
new satellite applications. Information technology of PBL
enables sophisticated product development, better market
infrastructure, implementation of reliable techniques for
control of risks and helps the fnancial intermediaries to
reach geographically distant and diversifed markets.
Information Technology Infrastructure
The banking sector requires a secure and reliable
communication infrastructure to ensure operational
effciency. PBL has a robust network infrastructure
with a scalable, secure, redundant and load balanced
architecture to support its customers regarding on-line
transactions with the highest level of security. PBL IT staffs
are strictly ensuing security policies when designing new
or upgrading existing networks taking into consideration
for managing users, dividing networks into segments
and restricting access to information based on different
business and security policies.
Groups of information services, users and information
systems are segregated on networks. To mitigate the risk
of unauthorized access to network devices the following
guidance is in place:
l Production, staging and development zones
are established and physically and/or logically
separated using frewalls
l Firewalls are used to provide granular access
control between the various network zones and
only required communication ports, protocols,
devices and servers are permitted
l Users are only being granted access to those
areas of the network and systems for which they
are authorized.
Strict policies are in place for maintaining different network
segregation to manage the network infrastructure like
internet, intranet and extranet.
Data center is connected with the head offce and different
branches all over the country through this network. All
the branches are connected with the core router at the
datacenter using fber optic, radio link or VSAT.
Redundancy: As per the business continuity plan of
the bank, redundancy has been kept for all the devices
installed in the Datacenter, Disaster Recovery Site as well
as the branches. Link level redundancy as well as device
level redundancy has been maintained for all branches
to ensure maximum uptime and better services to the
customers.
Load balancing: Application control engine (NLB) has
been used to provide load balancing facilities for different
banking application servers like core banking, mobile
banking, switching, and e-commerce gateway.
Security: Network security remains essential to
protecting data and privacy. Many services/devices have
been installed to secure PBL network such as frewalls,
encryption, prevention of intrusion and intrusion detection.
By combining a few key security features and procedures,
PBL maintains the privacy of data, ensuring the safety and
security of network, and preventing access to malicious
hackers and non-authorized users by adopting latest
technologies.
The security controls are properly applied to reduce
the risks associated with connectivity to external/
internal networks. The implementation of connectivity
with external/internal networks is properly authorized,
authenticated, monitored, encrypted and managed by IT
staffs that are properly trained in networking technologies.
Monitoring: NMS system with a dedicated NOC team
is in place for monitoring the PBL network. PBL has
Annual Report 2013
99
the technology to monitor and manage the network
infrastructure.
Access Control System: PBL can monitor and control
the door access and for visitor management and perimeter
monitoring. PBL is equipped with a 32-bit Windows based
GUI point-and-click interface. This security interface
animates whenever activity occurs on the security system,
be it a door opening or a person entering the datacenter.
CCTV System: PBL is using CCTV systems to monitor
the building premises. Cameras and software are being
used to monitor and record all type of activities.
During 2013, PBL initiated to replace old hardware and
systems for its existing core banking system. This upgrade
will enable PBL to provide better banking services, both
at its branches as well as through electronic banking
channels (e.g. ATM, POS, KIOSK, Internet Banking,
Mobile Banking, Phone Banking, etc.).
Information Security Department
PBL is one of the pioneer banks in Bangladesh to realize
the need of information security in todays technology
dependent banking service. The primary objective of
Information Security Department is to ensure secure
technology in banking to enable safer banking service to
customers.
With a vision to provide secure and safer banking
services, Information Security Department was formed
in December 2013. At the very beginning, Information
Security department is following globally accepted
management system standard ISO 27001 to manage
information security. The department is also working
towards ensuring security of payment cards (Debit/ Credit
cards) by following Payment Card Industry Data Security
Standard (PCI DSS).
IT Audit & Security
Information System is the lifeblood of any large business.
As in past years, computer systems do not merely record
business transactions, but actually drive the key business
processes of the enterprise. In such a scenario, senior
management and business managers have concerns
about information systems.
Information Security
Information Security protects information from a wide
range of threats in order to ensure business continuity,
minimize business damage, and maximize return on
investment. Information Systems Audit is a part of the
overall audit process, which is one of the facilitators for
good corporate governance. IT audit is basically the
process of collecting and evaluating evidence to determine
whether a computer system safeguards assets, maintains
data integrity, achieves organizational goals effectively
and consumes resources effciently.
To comply with the ICT Guideline of Bangladesh Bank
and to ensure the smooth operation of business, an
Independent IT Audit & Security Department has been
formed on May 30, 2007. The main aim of the department is
to identify the inherent risks and vulnerabilities associated
with the use of IT, its operation and operation of banking
system T24. The department also aims to ensure that
controls are implemented to mitigate risks and provide
recommendations for improvement in controls hence
reducing risks. Internal IT Audit provide an objective
means of reviewing the risks faced by the Bank in relation
to use of Information Technology and assess whether
they are being controlled/mitigated in an effective and
effcient manner; provide an assessment of the Banks
IT control against Guideline on ICT for Scheduled Banks
and Financial Institutions of Bangladesh Bank.
In 2013, the department has carried out audit for 111
branches 17 SMEs and 5 Divisions of Head Offce.
Anti-Money Laundering Department
Bangladesh Bank through BRPD Circular No. 17 dated
October 07, 2003 advised the scheduled commercial
Banks operating in the country to put in place effective risk
management systems which includes Money Laundering
Risk Management among others. Money laundering, a
criminal act recognized all over the world has very severe
consequence in the economy and security of the society.
PBL has updated Anti Money Laundering Guidelines in
2012, which includes Senior Management commitment
to the anti-money laundering program. The Management
has evolved such a culture for the Bank so that all the
employees strictly adhere to each and every provision
of Money Laundering Prevention Act 2012 and Anti-
Terrorism Act-2009 with amendment of 2012. Later a
Circular was issued for compliance of the Anti-Terrorist
(Amended) Act-2013. All employees of the Bank,
irrespective of the position they hold, are accountable
to the Top Management and regulatory body for their
activities which might directly or indirectly relate to money
laundering.
Video Conferencing System
During 2013, PBL implemented Video Conferencing
System to connect with remote branches for strengthening
relationship between Head Offce and branches. By using
the system, Management can save time and money by
avoiding long distance travel in order to attend meetings.
Currently, the system has been implemented in few
branches. The bank has a plan to cover all the branches
under the system by the frst quarter of this year.
Annual Report 2013
100
IT Systems Security and Audit
PBL has taken various measures to make the IT systems
more secure and reliable for the users. Apart from the
above network and communication security, the bank
has deployed anti-virus software for all of its branches. In
addition, the bank uses email security solution and world
class web-gateway to manage the network in a more
effcient way.
Facility Management
Facility management is an integral and fundamental
requirement for any modern organization. To meet the
goals or objectives, a well-planned logistics strategy
is a primary requisite to the successful outcome of any
operation, especially when establishing, conducting and
even expanding business under crucial environments,
anywhere within or beyond borders. In PBL, the function
of FMD (Facility Management Division) team is delegated
with the administration of planning, organizing, controlling,
staffng, designing, selection and decoration for branch
opening, printing, procurement, inventory, warehousing,
distribution, transportation, safety and security, well-knit
supply chain management, hiring, renewal and purchase
of real estate property.
Credit Administration Division
Prime Bank Limited is a very fast growing private
sector Bank in Bangladesh. The functions of Credit
Administration Division (CAD) are critical in ensuring that
proper documentation and approval are in place prior
to disbursement of loan facilities. For this reason, the
functions of CAD have been segregated from Relationship
Management. Nevertheless, the key element toward
ensuring proper credit discipline in a bank depends on
a strong centralized credit administration division. That is
why; centralized CAD is being established with a view to
safeguard the Banks assets and to maximize stability in
assets quality by reducing the risk to an optimal level.
Very soon, CAD is going to be structured as a unique
body from where all the disbursement procedures and
documentation of the Bank will be taken place.
During 2013, CAD has incorporated a number of major
initiatives to ensure better credit discipline in the bank,
which is described below:
l Re-arrangement of CAD Organogram: To ensure
the proper documentation, central disbursement
and better monitoring and control over the assets,
the rearranging of CAD organogram is under
the process and the operation of CAD is going
to include another new unit known as Sanction
Advice Unit along with the recently established
Disbursement unit as well as previously established
Documentation Unit, Limit Loading unit, MIS and
Monitoring unit and CIB & BB Returns Unit.
l Automation of Documentation: As a part
of commitment towards ensuring proper
documentation and monitoring, CAD has already
established E-DOC in 32 branches of the bank
and within January, 70% of branches would be
brought under the shelter of E-DOC. E-DOC is the
automation process of security documentation and
monitoring as it allows the electronic archiving of
security documents along with reminder clock for
better monitoring and control.
l Central Disbursement: Recently, CAD has started
the central disbursement of credit facilities whereas
previously limit loading was centrally performed
by CAD. Already 35 branches have been brought
under Central Disbursement and within January,
we expect it to be 50 branches in total. Such
initiative would ensure better discipline in credit
management and thus it would strengthen our
asset base.
l Re-vetting of Security Documentation: To
ensure the strength of our asset portfolio, CAD has
successfully completed the re-vetting of security
documents of the borrower whose total credit
exposure is 10 crore and above. Presently, strong
monitoring is being conducted for regularization of
the inadequacies/lapses found during the re-vetting
process.
l Service Partner Agreement: The aim of this
agreement is to provide a basis for close co-
operation between the service partners and the
Credit Administration Division for mutual service
delivery to each other which are error free in the
areas of approval/proposal, documentation &
transaction and thereby, ensuring a timely and
effcient service activities from both ends.
l Surveyor Enlistment Policy: This policy is
treated as a comprehensive guideline for selecting
the surveyors. Consequently, better verifcation
regarding the immovable properties would be
possible and thereby it would strengthen the asset
bases of our bank.
l CAD Process Manual: This manual covers the
operational guidelines required to manage the
Credit Administration Division (CAD) of Prime
Bank Limited and also provides a comprehensive
direction regarding the process fow of centralized
credit operation.
Annual Report 2013
101
l E-DOC Training: As E-DOC is totally a new concept
in Prime Bank Limited, introducing the members
of Prime Bank with E-DOC is considered as an
indispensable task of CAD. For this reason, CAD
has completed a series of E-DOC training of around
250 offcials which covered almost all the branches
and some divisions of Prime Bank Limited.
l External Audit: To detect the documentation
lapses and operational faults, an external audit
was conducted (by A. Qasem & Co., Rahman
& Rahman Huq and Acnabin) throughout the
branches regarding 50 crore and above loans and
advances in this year. Here CAD was entrusted
with the responsibility of coordination of the audit
and CAD is now closely monitoring and maintaining
liaison with the branches for regularization of the
inadequacies/lapses found during the audit.
Human Capital
The Bank has been able to maintain a highly favourable
employer image by creating a performance-driven
rewarding work culture; where employees receive plenty
of opportunities to realize their diverse potentials fully as
well as beneft the organization by demonstrating value
creating behaviours.
Manpower Planning and Recruitment
The manpower planning of PBL is linked with the overall
strategic plan of the Bank. This manpower planning
process not only defnes the number of human resources
to be hired within a given time-frame, but also the types of
human resources and the required competencies and skills
that will be needed to achieve the defned business goals.
The on-going recruitment of PBL is primarily being
governed by 3-year manpower planning outlined in 2013.
To fll up the vacancies and ensure that the additional
human resources are assessed, selected and placed on-
time as per required competencies, the Recruitment &
Selection team works dedicatedly as per organizations
best ft philosophy.
HR Division follows PBLs recruitment policy that clearly
states the criteria and procedures to recruit fresh and
lateral entrants. For the fresh hires, HR Division organizes
written test for the shortlisted candidates who must obtain
minimum marks to be assessed further by the selection
panel. On the other hand, lateral entrants are also
assessed rigorously by the selection committee subject to
matching the required competency and experience level.
At the end of 2013, total number of employees was
reported as 2,710. In 2013, the Recruitment & Selection
team has facilitated to select a total of 297 new hires, both
fresh and lateral entry.
New recruitment in 2013 shown by gender:
Gender No. of Emp. Percentage
Male 220 74.07%
Female 77 25.93%
Total 297 100%
Number of Fresh and Lateral Entrants:
New Entrants No. of Employees
Fresh Entrants 130
Lateral Entrants 167
Total 297
Diversity in Workplace
PBL believes that diverse, heterogeneous teams generate
greater creativity, innovation and business development.
PBL is cognizant that an inclusive culture maintains and
drives workforce diversity by fostering the exchange of
ideas and collaboration among individuals and across
groups. To speak simply, the constant success of PBL
depends in part on maintaining a plurality of perspectives.
No. of employees by age group and gender:
Age
group
No. of
Emp.
Percentage
(%)
Gender
No. of
Emp.
Below 30
years
571 21.07
Male 385
Female 186
30 years
to 40
years
1606 59.26
Male 1,292
Female 314
40 years
to 50
years
415 15.32
Male 368
Female 47
50 years
and above
118 4.35
Male 110
Female 8
Total 2,710 100 2,710
PBL practices equal employment opportunity for competent
candidates regardless of their gender, age, locality or ethnicity.
The ratio of male and female employees has been
increasing over the time. Currently, approximately 20.52%
of employees are female.
Gender diversity among employees
Gender No. of Members Percentage
Male 2154 79.48%
Female 556 20.52%
Total 2,710 100%
Annual Report 2013
102
In 2013, new recruitment of female employees
was approximately 26%. Besides, PBL is gradually
encouraging the women to take up leadership opportunity
which will ensure a more balanced work force.
Learning & Development
PBL continuously thrives to transform Human Resources
to Human Capital through appropriate training in every
aspects of work area which in turn will help the Bank
to achieve a sustainable growth. HR Division regularly
undertakes effectively designed training programs
targeting the right group of employees through proper
training need assessment.
List of Training and workshops arranged by HR Training
and Development Centre (HR-TDC) in 2013:
SL. Course Title
No. of
Courses
No. of
Participants
A. TRAINING
1 Foundation Training Course for TA (Cash) 1 25
2 Foundation Training Course for TA (General) 2 70
3 Training on T-24 System 9 134
4 Training on Anti Money Laundering 1 35
5 Foundation Training Course for MT 1 36
6 Foundation - COBIT5 1 25
7
Web Based Retail Banking Management
System (RSYS)
12 144
8 Information System Audit 1 20
9 Prime Cash Service 4 120
10 Foundation Training Course for SO to SEO 1 50
11 Advanced Credit Management 2 51
12
Up-gradation of Islamic Banking Software and
Up-gradation of T-24 System
1 18
13 Foundation Training Course for SO to SEO 1 51
14
Training on Implementation of New Guideline
of Bangladesh Bank on SBS-2 & SBS-3
4 273
15
Training Program on Service Quality Hand
Book
18 748
16 Training on Credit Risk Management 1 50
17 67th Foundation Training Course for TA General 1 53
SUB TOTAL 61 1903
B. WORKSHOPS
1 BACP and i-Banking 2 114
2 Credit Risk Grading for Lending Decision 1 30
3 RIT (Rationalized Input Templates) 1 16
4
Proper Documentation against Loans &
Advance and Charging of Securities
2 72
5
SBS-1, SBS-2 & SBS-3 Reporting to
Bangladesh Bank
1 53
6 Green Banking 1 30
7 Laws, Regulations & Practice in Banks 1 50
8
Legal Issues, Audit & Inspection, Bangladesh
Bank Regulations & E-Learning
1 48
9 Retail Banking (RB) & Consumer Finance 1 37
10 Islamic Banking Operations and Finance 1 25
11 General Banking Operations 1 49
12 Rules and Procedures in Foreign Remittance 1 28
13 Communication Skill Development 1 22
14
Prevention of Money Laundering and Terrorist
Financing
1 40
15 Customer Relationship Management 1 22
16 Ethics, Etiquette & Manner in Banks 1 23
17 IT Security 1 52
18 Workshop on BACH & BEFTN 3 132
19 E-doc Software 1 30
20
Workshop on BACH & BEFTN for General
Banking
3 132
21
Workshop on goAML schema for submitting
CTR
6 235
SUB TOTAL 32 1240
GRAND TOTAL 93 3143
In 2013, Prime Banks internal HR Training and
Development Centre arranged 61 professional training
courses and 32 workshop/seminars for 3,143 enthusiastic
participants. Besides, a total of 248 employees were sent
to attend various training programs/conferences in home
and abroad.
No. of participants in different types of training and
workshops arranged by HR-TDC:
No. of Employees attended in different Training/
Workshop/ Seminar in home and abroad:
Increasing Percentage of Femal Employees
2010 2011 2012 2013
18.08%
18.59%
19.77%
20.52%
Female Ratio
Foundation
285
Soft-skill & Leadership
815
Core Banking
1520
IT
523
75
10
34
129
Abroad BIBM Local (Others) BBTA
Annual Report 2013
103
The whole capacity building efforts is pivoted on the
unique understanding of banking sector as well as
required behavioural skills to create a group of competent
professionals with strong leadership skill.
Compensation & Benefts
PBL has an agile compensation and benefts system that
helps to ensure pay equity, is linked with performance
that is understood by employees, and keeps in touch with
employee desires and whats coveted in the market, while
maintaining a balance with the business affordability.
The compensation and benefts are regularly reviewed
through market and peer group study. Currently, the level
and structure of remuneration is very attractive to motivate
and retain performers.
Other than monthly competitive base pay and a good
number of allowances, PBL has variety of market-
competitive Benefts schemes designed to motivate the
employees. The various cash and non-cash benefts
include: Company car for Top Level Executives, Car
maintenance allowance, Leave fair assistance allowance,
Medical treatment allowance, Maternity benefts, Car loan
facility, House loan facility, Staff loan at discounted interest
rate, House furnishing allowance, Travel allowance,
Festival bonus, Annual leave etc. Employees are paid
bonus based on yearly business performance, as well as
on individual performance.
PBL also provides long-term as well as retirement
benefts to employees like: Leave encashment, Provident
fund, Gratuity beneft, Retirement beneft, Partial and full
disability beneft, Death beneft to family members etc.
The Bank has a Welfare Fund taking contribution from
both employees and Bank. In 2013, a total of Tk. 10.65
million from this Fund was sanctioned and disbursed to
support 285 employees for a variety of purposes like:
Hospitalization, Surgery, Maternity, Death benefts,
Retirement benefts etc.
Purpose
No. of
Employees
Amount in Tk.
Major Surgery 9 17,14,953
Surgery 25 12,94,697
Hospitalization 3 1,08,329
Maternity 242 47,45,410
Death 2 12,00,000
Retirement 4 15,91,300
Total 285 1,06,54,689
Career Progression & Succession Planning
PBL always plans for employees to advance their
career goals. This includes advancement into more
responsible positions. The company supports career
opportunities internally so that talented employees are
deployed in upgraded positions and thereby enables
them to deliver their greatest value to the organization.
In addition to vertical career growth, employees may also
grow horizontally. Whenever possible Human Resources
Division mobilizes employees across different functions
and branches; thus assisting them to progress with varied
skills and experience. In 2013, a total of 511 employees
have been mobilized in different branches and divisions
based on business need.
Besides encouraging individual employee growth and
development, PBL also gives effort to identify and
retain the human resources who can potentially be the
successors of mission critical roles. PBL continuously
assesses organisational, divisional and team capability
gaps to identify, develop and retain the successors in a
timely manner to meet the demands of the future.
Reward & Recognition Program
PBL has a well-designed Reward & Recognition program
that gives special attention to employees actions,
efforts, behaviour and performance. It meets the intrinsic
psychological need for appreciation of employees efforts
and supports business strategy by reinforcing certain
behaviours (e.g. extraordinary accomplishments) that
contribute to Banks success.
Followings are the different cash and non-cash awards
given to employees for their exemplary works:
The Chairmans Star of the Stars Award (CSS)
CEOs Banker with Exceptional Service Traits
Award (BEST)
Outstanding Recovery Initiative Award (ORI)
Commendable Branch Performance Award
(CBPA)
Trainees with Outstanding Performance Award
(TOP)
Around the Year Appreciation Award (AAA) etc.
Code of Ethics and Business Conduct
PBL is always committed to establish the highest level
of business compliance and ethical standard. PBL has
Employee Code of Ethics and Business Conduct duly
reviewed and approved by Board of Directors which works
as a framework of ethical and business behaviour for all
employees. This provides guidelines on various issues,
like: safeguarding customers and Banks confdential
information, preventing money laundering, complying
with laws and regulations, avoiding offensive behaviour,
demonstrating respect in workplace, avoiding activities
that may raise confict of interest etc.
Annual Report 2013
104
All employees are properly oriented to comply with
Code of Ethics and conform to the relevant laws and
regulations. HR Division makes sure that during joining
employees read, understand the Code of Ethics and
Business Conduct and acknowledge the same by
signing. HR continuously raises awareness among
employees to ensure that business decisions and actions
undertaken by employees are completely in compliance
with the prevalent rules and regulations. In addition, it
is the responsibility of all managers to help employees
understand how ethics apply to their everyday behaviour
and be diligent in enforcing the Banks ethical standards.
Prime Banks high ethical standards are supported with
rigid enforcement so that customers expectations and
interests are protected in a compliant manner. Any action
or behaviour that, in the opinion of the Bank, violates or
jeopardizes its ethical standards may result in immediate
appropriate disciplinary action.
Achievements of 2013
The relentless pursuit of HR Division continues throughout
the year. Furthermore, it aims to ensure excellence in all
HR policies and practices in line with the mission and vision
of the Bank. In addition to all the achievements mentioned
earlier, HR Division implemented the following things in
2013 to enhance the overall employee experience:
l Launched Prime Life Style as part of employee
engagement. This was an arrangement by which
HR Division has been ensuring attractive discounts
and facilities in hotels, restaurants, amusement
parks, retail shops, hospitals & diagnostic centres
etc. for employees.
l Completed the selection process of 200
Management Trainees in 2013; which included
screening more than 28,000 applications, taking
preliminary tests, written tests, interviewing and
fnal selection.
l Made the HR software HR Connect operational
for different automated HR processes.
l Prepared the automated performance appraisal
system to save time and efforts.
l Established a separate Fire & Safety unit and
recruited human resources with relevant expertise.
l Developed CV bank using the web portal to
expedite the recruitment process by saving time
and efforts.
l Successfully managed the MT rotation program
of Management Trainees who had been hired in
2012. This included foundation training, on-the-
job training on core banking through effective job
rotation in different branches and divisions.
l Recruited a good number of new employees
through Campus hunting both from IBA and BIBM.
l Coordinated the Managers Conference of 2013
which was held to foster effective communication
and business alignment among the Branch
Managers, Divisional Heads, Top Management
and Honourable Board of Directors.
l Developed online Greeting software which is used
to send birth-day cards to employees. Employees
can also use this software to send different festival
and occasional greetings through electronic cards
to the external stakeholders.
HR Plan & Priorities of 2014
To grow up with the challenge of tapping opportunities to
meet both organizational and employee needs, PBL is
moving forward with the transformational initiatives. The
transformational phase started with introducing HR as
Strategic Business Partner which already generated
value in people & process management. So, the year
2013 was marked as one of the successful years in
building an employee centric work culture with automated
HR services & delivery and with focused skill development
for employees. The tone will be the same for year 2014
and HR will pursue solid contemporary thoughts and
action plans to draw results in many fronts not as peoples
manager only, rather as the Change Agent for Employee
& Business Development.
Followings are some of the priorities of HR Division for
the year 2014:
l Improve the overall Performance Management
Process
l Review, Update, Document & Rollout Job
Description, Key Result Area (KRA), Key
Performance Indicator (KPI) for all the employees
of Prime Bank Limited
l Review HR Policies & Procedures and
communicate to employees
l Talent Management Program
l Skill Gap Assessment for the employees &
improvement road map design
l Charter based long term training plan & program
l Work on Employer Branding initiatives & Employee
Relations and so on
Human Resources Accounting in PBL
HR Accounting is the process of valuing human resources
as assets and reporting the investments made in human
resources of an organization that are presently not
accounted in the conventional accounting practices. But
Annual Report 2013
105
there is no specifc way to value the human resources
and measure the direct impact of the cost spent for
employees. The period of existence of a set of human
resources in an organization cannot be predicted; hence
treating and valuing them as assets is diffcult. So, due to
various limitations, like most of the institutes, PBL has not
yet practiced HR Accounting in the real sense. However,
to better understand the impact of recruitment, training,
compensation and other cost related to employees, the
Bank tracks cost on the following parameters:
Tk. in Million
Salary cost per emp. 1.08 1.06
Operating cost per emp. 1.99 1.94
Operating income per emp. 4.75 5.30
Proft before provision per emp. 2.76 3.36
Proft before tax per emp. 1.27 2.10
Salary cost as percentage of
operating cost
54.55 54.33
Salary cost as percentage of
operating income
22.90 19.90
Monitoring performance through Key Performance
Indicators
The bank tracks the performance against number of
bench marks known as key performance indicators. The
KPIs fall under two categories: fnancial and non-fnancial.
The KPIs are used to track performance against the
planned targets, comparison of previous years results
and industry bench mark.
Product and Services and Information Technology
PBL will depend more on technology and shall convert its
products supported by the core banking software.
Risk factors
It is needless to say that there are certain risk factors
which are external in nature and can affect the business
of the bank. The factors discussed below can signifcantly
affect the business:
l General business and political condition
PBLs performance greatly depends on the general
economic conditions of the country. The effect of
recession is still unfolding which may result to slow down
in business environment. Political stability is a must for
growth in business activities.
l Changes in credit quality of borrowers
Risk of deterioration of credit quality of borrowers is
inherent in banking business. This could result due to
global economic crisis and supply side distortion. The
changes in the import prices affect the commodity sectors
and ship breaking industry. Deterioration in credit quality
requires provisioning.
l Changes in policies and practices of regulatory
bodies to revise practices, pricing and responsibilities
of the fnancial institutions
PBL is subject to regulations and compliance of regulation
is must. Changes in policies with regard to interest rates,
pricing have signifcant effect on the performance of
the bank. Bangladesh Bank is expected to continue its
persuasion to reduce the spread and charges further
which is likely to affect the performance. Changes in
provisioning requirement will also affect the performance
of the bank.
l Compliance with Basel-II
Basel-II is fully effective from 2010 and PBL has complied
with respect to credit risk management, its supervision
and establishment of effective internal control. The
establishment of effective control requires more
investment in technology and operating expenses are
likely to increase. The rating of the borrowers is being
done. Basel-III is yet to be implemented in Bangladesh
but the bank has been in the process for mind set-up to
prepare for the new accord.
l Volatility in equity market
Securities and Exchange Commission and the stock
exchanges improved their supervisory role but the equity
market is still volatile. The recession fear also added to
the volatility. If volatility continues it is likely to affect the
performance of the bank.
l Changes in market conditions
Changes in market conditions particularly interest rates
on deposits and volatility in foreign exchange market is
likely to affect the performance of the bank. Depositors
are becoming increasingly price sensitive and any
unilateral upward change by a bank will exert pressure
on interest rate structure of the banking sector. It is feared
that wage earners remittances may decline due to fall in
job opportunity in international market. Unless it is offset
by export performances, there may be pressure in the
foreign exchange market.
Annual Report 2013
106
l The risk of litigation
In the ordinary course of business, legal actions, claims
by and against the bank may arise. The outcome of such
litigation may affect the fnancial performance of the bank.
l Success of strategies
PBL is proceeding with its strategic plan and its successful
implementation is very important for its fnancial
performance. Major deviation due to external and internal
factors will affect the performance of the bank.
Centralized Clearing Cell (CCC) & Internet Banking
Operations
To ensure a modern payment and settlement system
infrastructure for the country, Bangladesh Automated
Clearing House (BACH), the frst ever electronic clearing
house, with its two components: Bangladesh Automated
Cheque Processing System (BACPS) and Bangladesh
Electronic Fund transfer network (BEFTN), a state of the
art technology went live on October 07, 2010 and February
24, 2011 respectively. Besides these projects, Centralized
Clearing Cell & Internet Banking Operations is providing
services to the Customers of Prime Bank Limited through
fast growing Internet Banking ALTITUDE.
Prime Bank Limited is providing services through
Centralized Clearing Cell & Internet Banking Operations
with three projects to its valuable customers. Total number
and amount of instruments in the automated clearing
(BACPS & BEFTN) & ALTITUDE are increasing day by
day as customers are being highly benefted;
Benefts of BACPS
BACPS minimizes fraud and forgery, reduces cheque
carrying and clearing cost, reduces payment processing
time dramatically; ensure faster and secured payment
and settles payment of all cheques of the whole country
under a single head of the Bangladesh Bank.
Alternate Delivery Channels
1. ATM Booths
ATM services were started from January 2008. By end
of December 2013 we have reached 151 LIVE ATMs
operating across the country.
2. Information KIOSK
We installed four information KIOSK on June, 2011 for
Debit Card holders to provide them extra service. The
following facilities are given through Information Kiosk: 1)
Account Balance enquiry 2) Account Statement 3) Utility
Bills pay (Mobile Bill Payment) and 4) PIN Change
3. Bank POS Service
As a part of continues development of ADC Services, a new
service has been introduced as Bank POS which enables
a customer to expedite cash withdrawal facilities from the
branches when they are not carrying a cheque book.
Features of Bank POS services:
1. Customers carrying PBL Debit card may withdraw
cash by using Bank POS without bearing a cheque
book within banking hours.
2. Customers will require only Debit Card and
relevant PIN to access the facility.
3. A customer can withdraw Tk. 50,000 through
Master Debit Card and Tk. 30,000 (including ATM
transaction) per day through proprietary Debit Card.
4. No Charge will be imposed for Bank POS Service.
4. Debit Card
ATM Card service was started from March, 2008 and by
the end of 2013 the number of ATM Cards (proprietary)
was 190,946.
Starting from January 2011 the number of Master Debit
Card reached to 120,133 and by the end of December
2013, the banks total number of Debit Cards were
311,079.
2012
2013
No. of Cheques(Outward & Inward) in 2012 and 2013
(Taka in million)
No. of Cheques (Outward) No. of Cheques (Inward)
0
2000000
4000000
6000000
8000000
10000000
2012
2013
Total Amount of Cheques(Outward & Inward) in 2012 and 2013
(Taka in million)
Outward Amount(Crore) Inward Amount(Crore)
0
10000
20000
30000
40000
50000
60000
Annual Report 2013
107
5. Biometric Smart Card
We successfully launched Biometric Smart Card on May
20, 2012 to provide fnancial service for the unbanked
and under banked people in the rural & urban areas by
fngerprint recognition.
Till December 2013 total number of agent was 1,169 and
37,500 account holders across the country were enjoying
this service.
6. SMS Banking
SMS Banking service was started from July 2010. On
December 2013 total numbers of registered SMS users
were 19,000.
7. Phone Banking
Phone Banking service was started from May 2011 and
till now more than 2,500 users are enjoying this service.
We plan to increase the number of users to 20,000 by
2014.
8. Internet Banking (Altitude)
Launching of Altitude was one of the revolutions of ADC
services of PBL in 2012. PBL was one of the pioneers
Bank which has started this Inter-Intra Financial Banking
service for customers. By December 2013 we reached a
total number of 25,000 users.
9. Mobile Banking
We successfully launched Mobile Banking Service on
March 25, 2012 to facilitate fnancial services using
mobile phone for PBL Account holders. But for some
unwanted situation we could not progress on it as
expected.
We are expecting to progress our services from 2014
among the customers.
List of the proposed services to the customers are as
follows:
1. Customers will be able to deposit & withdraw
money from remote agents without visiting
Branch.
2. SMS Banking facilities such as Balance inquiry,
Mini Statement etc.
3. Bill/Utility payment Services.
4. Fund transfer to account of same bank.
5. Fund transfer to any registered mobile account
(not an account holder of PBL)
6. Shopping through registered merchant.
7. Visa Money Transfer (VMT) to enable customers
to send/receive money from a VISA Card to
another card irrespective of the issuing bank.
8. Facility to link Banks existing Debit Card or Credit
Card through the customers mobile.
10. JCB Debit Card
We have the privilege to launch this new brand of Debit
Card in Bangladesh for the 1st time as no other Bank
has offcially issued this card as yet.
We are already acquiring this Card at our ATM/POS
terminals and very soon we are going to start this Debit
Card.
With the help of this new Branded card PBL Debit
Cardholders can enjoy the cash withdrawal facility from
our 151 LIVE ATMs as well as 1,200 DBBL ATMs for free
of charge.
Research and Development (R&D)
With an ever increasing notion of keeping customers at
the forefront in every process and endeavors to fulfll the
ever changing consumer needs for products and services,
there is no alternative to customer-oriented information
that is reliable, accurate and valid. Besides, as the macro-
economy is facing the turbulence of external factors
caused by seismic shifts from global perspective, sluggish
demand and supply of the domestic economy create
manifold challenges. Moreover, competition is ferce in the
banking industry, as banks have to operate in a perfectly
competitive market. The proliferation of banks, NBFIs,
innovation in alternative fund transfer mechanisms add
more dimensions for the banking industry. Therefore, it is
highly required to have a strategic initiative that is proactive
and can respond to controllable and uncontrollable factors
Consumer
R & Ds
Focus
Market Economy
Annual Report 2013
108
in a prudent way. Against this backdrop, Research and
Development (R&D) division of the bank explores latent
need of customers and embrace creative ways to address
them. In todays competitive knowledge based economy,
the approach of R&D is to scan the environmental
factors, assess information gap, develop, research,
design and analyze data and disseminate information
to the concerned stakeholders of the bank. This is how
information about customers preference, perception,
and potential untapped investment opportunities as well
as competitive intelligence is gathered to implement
strategies aimed at satisfying those needs.
To support the banks strategic objective, R&Ds activities
are functional in three core areas: i) Market Research,
ii) Operations Research and iii) Economic and Business
Policy Research. R&D conducted a number of research
studies and innovative activities in 2013 considering the
market dynamics.
Some major activities performed by the R&D Division in
2013 are highlighted below:
Market Research
Product Development
l New Product Development: R&D Division introduced
some innovative products such as Shukonna
(Female Account), Nobagoto (Infant Account)
conventional and Islamic version, Prime Subidha
(SME Asset Product jointly with SME division),
Mudaraba Brighter Tomorrow Deposit (MBTD),
NFCD Premier (Non-Resident Foreign Currency
Deposit Account jointly with Treasury Division)
l Product Re-engineering: The division also
modifed features of existing products and services
as per market demand to attain & retain market
share. Products are such as - Double Beneft
Deposit Scheme-DBDS (Conventional and
Islamic), Monthly Beneft Deposit Scheme-MBDS
(Conventional and Islamic), My First Account
(Savings Account for school & college students),
Prime Millionaire Deposit Scheme (Conventional
and Islamic) responding to changes in the macro
economy.
Marketing Research
The bank believes in customer service excellence
to provide the most courteous and effcient service
in all aspects of business. To ensure service
excellence, Mystery Shopping - a Comprehensive
Service Quality Assessment Survey has been
undertaken throughout the year. In 2012-2013,
mystery shopping has been conducted in 102
branches. Based on the fndings, documentary has
been prepared to train up the service personnel at
branch level.
Feasibility study on Automatic Rice processing
Milling Businesses in Bangladesh was conducted.
R&D Division has been requested to prepare
a study paper encompassing the areas, such
as In-depth SWOT analysis of the industry,
business locations, demand-supply forecasting
of rice, present status of existing different
auto rice mills, dependence on Bank fnance,
track record of repayment of Bank borrowings,
Comparative scenario, standard storage capacity
etc. Accordingly, teams of the division visited rice
mills located areas such as Naogaon, Dinajpur,
Joypurhat, Sherpur, Ashuganj of B.Baria, Jessore,
Faridpur, Barishal and Sylhet for collecting data
through interview and observations.
The division conducted study on Generalized
Systems of Preference (GSP) to assess the extent
of impact on the global business of the bank and
the country after possible withdrawal of GSP
facility by the US Government
R&D Division conducted a customer survey for
understanding customers behavior and perception
regarding online banking services before revising
the online charges of the bank
The division conducted exploratory study on
Prime Campus: An initiative of Prime Bank
Market Research
Operations Research
Business and Economic
Policy Research
New Product
Development
Product Reengineering
Service Quality Studies
Ad hoc research
Branch Expansion
Program (BEP)
ATM Expansion Program
CDM, KIOSK
Monthly Newsletter"In-
Focus"
Weekly e-Newsletter
Miscellaneous Functions
Indiference
towards
Customer
Service- Proft
Fades
Keen attention
towards customer
Service-
Sustainable Proft
andLong Term
Relationships
Annual Report 2013
109
Foundation. R&D gathered customer insights from
the guardians of the enrolled students from Prime
Campus Uttara.
Feasibility report on knowledge based and creative
publishers to assess the creative publishers
sector to determine the Banks opportunity for the
refnance scheme under Bangladesh Bank Fund.
Feature analysis on selected SME products of the
Bank and its peer banks for designing market-
oriented promotional materials and revising
relevant PPGs
Marketing
Developing annual comprehensive strategic marketing
plan for corporate brand and product groups (Retail
Banking Products, Corporate Banking Products, SME
Banking Products, and Islamic Banking Products etc.)
and execution of these plans.
Providing prompt marketing and communications supports
to divisions in any initiative of new products innovation,
communication, launching and implementation plan.
Designing new product development, product innovations
and product modifcations.
Providing international marketing activities related to
remittance business and foreign subsidiaries (exchange
houses) of the Bank.
Sponsoring Prime Bank BPL 2013: the biggest T20
Cricket Tournament of the Country
Prime Bank has been associated with cricket for a very
long time. In 2011, a premier division league team was
acquired by Prime Bank. There are also plans to create
a state-of-the-art Cricket Academy with international
standard training facilities and best possible coaching
services. Prime Bank continually sponsors sporting
events throughout the country under its CSR and
sponsorship activities.
Prime Bank Ltd. came forward to heighten the Bangladesh
Premier League T20 2013, Season-2 through sponsoring
by signing a Tk. 6 crore deal with the Game On Sports
Management Ltd. Prime Bank sponsored this popular
sports event to get the title rights of the BPL T20
tournament in 2013 which was known as Prime Bank-
BPL T20 2013. Prime Bank believes this investment
in cricket will create an enabling environment to help
cricketers grow with style and it has already become the
fag-ship brand of the country. This event helped the bank
to enhance its Brand, Product Promotion, and connecting
to the youth customer segment of the country through
School Banking Campaign. Prime Bank Limited also
heavily promoted Prime Bank Platinum Cards during this
mega-event. Most of all, television rating point was high
during BPL in January-February 2013.
During BPL T20 2013, Channel 9, the TV Channel which
telecasted the tournament showed a higher TVR than any
other channels. On 15 February 2013, Channel 9s share
was 17% which is 10% more than the top-viewed channel
NTV.
Prime Bank Cricket Club
There are many ways that each and every one of us
can make a contribution to the future of our forthcoming
generation. We can teach values, share experiences and
transfer life skills. Prime Bank Foundation (CSR wing
of PBL) does exactly that by engaging in social impact
programs, which range from education, health and
performance sports initiatives.
Mystery Shopping Conducted
(No. of Branches)
2010 2011 2012-13
0
20
40
60
80
100
120
1
0
2
4
4
2
0
Annual Report 2013
110
Prime Bank Cricket Club (PBCC) started its journey in
2011 by acquiring a premier division club in the Dhaka
Premier League. This is the frst step forward for Prime
Bank Ltds ambition to help promote and develop cricket
in Bangladesh.
Our main goal is to help boost the image and quality of
cricket in the country by taking cricket to a new level, while
ensuring we create an unmatched sporting atmosphere
where progress and maturity is the priority.
We have been able to achieve laurels in our inaugural
season by introducing new culture and valued practices
such as health insurance for players, post match analysis
tutorials, sports biometrics study, optimal dietary programs
and player anti-stress suites.
The next step would be to create a state of the art Cricket
Academy with international standard training facilities
and best possible coaching services. This elite practice
facilities will help nurture cricketers into world-class
players ft for all modern formats of the game.
PBCC seeks to provide opportunities for aspiring
cricketers, especially from underprivileged backgrounds,
to pursue cricket as a promising career path side by side
with their academic engagements. We also want to offer
our programs within primary and secondary schools to
stimulate youth development of club cricket and National
Cricket of Bangladesh.
My First Account
My First Account is a savings deposit account that can
be opened by only enduring Bangladeshi student having
the age 6 years to below 18 years. The main emphasis is
to give students familiarity with banking and building the
habit to save. This will facilitate students savings attitude
towards a secured future.
Finance
Finance department cover a wide range from the basic
record keeping for providing information to assisting
managers in making strategic decisions. Finance
department is responsible for all the day to day
transactional accounting for the bank. This includes
tracking of all transactions and the management of any
regulatory reporting.
Finance department prepare the banks budgets and
forecasts, and reports back on the progress against these
throughout the year. This information can be used to plan
for any important decision regarding deposit, loan and
advances, staffng levels, asset purchases, expansions
etc. and cash needs, before they become necessary.
Management accounting information that manager can
use to monitor the operations and decide where further
attention is required. It will likely include some non-
fnancial information and is communicated to branch
managers in a way that is easy to understand.
Management of capital adequacy ratio (CAR) and reporting
on quarterly basis to central bank is another important
area of the fnance division. Also arrangement of funds
through different sources and guiding management the
most cost effective way in raising such capital.
Corporate tax/VAT administration and arrangement of
getting the assessment done is another important role of
the division.
Finance department is often called upon to provide
information to assist managers in making key strategic
decisions, such as which markets or projects to pursue or
the payback periods for economic ways of capital planning
and investment.
Board Audit
Towards strengthening the control mechanism of the bank,
The Board of Directors has formed an independent and
special Cell apart from Audit and Inspection Department.
Board Audit Cell is an independent and special wing of
the internal control mechanism of the Bank under the
umbrella of the Board Audit Division. Special inspection,
investigation etc are being observed as per instruction of
the Board and Board Audit Division.
Moreover the cell is continuously followed up by the
compliance of the divisions on a quarterly decisions of
the Board and Executive Committee of The Board and
submitting the reports to the Board Audit Division for their
review.
Annual Report 2013
111
Financial performance
Taka in million
Operating income 12,883 13,492
Operating expenses* 5,409 4,941
Proft before tax and provision 7,474 8,551
Net proft before tax 3,445 5,335
Net proft attributable to
shareholders
1,341 2,072
Total assets 243,869 236,833
Loans and advances 153,589 160,890
Deposits 201,907 182,053
Shareholders equity 23,030 20,787
Net return on equity 8.35% 13.53%
Cost income ratio* 41.98% 36.62%
Non-performing loan ratio 5.09% 3.83%
Capital adequacy 12.04% 12.73%
Budget Vs. Achievement-2013
Taka in billion
Particulars
Budget
2013
Actual
2013
Budget
Achievement
(%)
Proft before
provision
10.00 7.47 75
Deposit 224.00 201.91 90
Advance 182.00 153.59 84
Import 197.00 133.22 68
Export 171.00 127.09 74
Inward Remittance
(Foreign)
50.00 32.63 65
Guarantee 35.00 31.17 89
Proft before Tax by segments
Taka in million
Conventional banking 2,152 4,323
Islamic banking 1,181 862
Off-shore banking 112 150
Total 3,445 5,335
l Conventional banking remained the main
contributor to proft
l The proftability of conventional banking and
Islamic banking reduced due to higher provision
requirement resulting from new loan provisioning
policy by the Bangladesh Bank
Balance Sheet Growth, Asset Quality and Capital Position
l PBLs total asset increased by Tk 7035.80 million
and stood at Tk 243,869 million as at end of
December 2013 indicating a growth of 2.97%
l Loans and advances decreased by 4.54% and
stood at Tk 153,589 million as at December 2013
l Deposits grew by Tk 19,854 million and stood at
Tk 201,907 million as at December 2013 indicating
a growth of 10.91%
l Non-performing loan ratio stood at 5.09% in 2013
compared to 3.80%t in 2012
l Capital adequacy ratio as per Basel-II stood at
12.04% at the end of December 2013 which was
12.73% at the end of December 2012
Deposits
l Core customer deposits continued to increase.
Customer deposits consist of 98.97% of total
deposits as at December 2013
l Savings deposit of the bank showed growth of
10.09% and its share to total deposit stood at
10.46%
l Low cost and no cost deposits showed growth of
2.52%. However, high cost deposits registered a
growth of 15.16%. As a Primary Dealer, we had to
go for mobilization of additional high cost deposits
to purchase treasury bills / bonds
Loans and advances
l SME and retail loans showed a growth of 34.58%
2013 while corporate loan had a negative
performance
l Non-performing loan increased during the year
by Tk 1,646 million due mainly to the new loan
classifcation and provisioning policy by the
Bangladesh Bank and stood at 5.09% which is
Deposit & Advances
Deposit
8,925
11,606
13,885
16,089
15,359
7,519
8,802
10,696
12,457
15,982
18,205
20,191
2008 2009 2010 2011 2012 2013
Loans & Advances
High Cost Deposit
No Cost Deposit
Low Cost Deposit
16%
21%
63%
Annual Report 2013
112
much below the market average of 12 percent. As
such the asset quality may be termed as good;
l PBL made adequate provision against loans and
advances as per the Bangladesh Bank guideline.
Cash fow statement of PBL
During the year under review, PBL had a net cash infow
of Tk 698 million as shown below:
Taka in million
Net cash fows from operating
activities
2528 4,395
Net cash fows from investment
activities
(894) (791)
Net cash fows from fnancing activities (936) (780)
Net increase / decrease in cash 698 2,824
Net Cash fows from operating activities
The major component of net cash fow from operating
activities is operating proft by eliminating the effect of
depreciation and provisions. Net cash fow was positive
as the increase in loans and advances and purchase
of trading securities (treasury bills) were adequately
covered by customer deposits and borrowings from the
Bangladesh Bank under repo facilities provided to primary
dealers.
Net Cash fows from investment activities
Net cash fow was negative as the bank realized sale
proceeds from securities less than the amount for
purchase of land and building for its business and made
payment against lease obligations.
Net Cash fows from fnancing activities
Net cash fow was negative as 10 percent cash dividend
for 2012 was distributed to the shareholders in 2013.
Liquidity statement
l From the liquidity statement it transpires that there
is minimal negative gap till 1-3 months bucket,
moderate positive gap in 3-12 months bucket
and there is a huge positive gap in over 5 years
maturity bucket. So the cumulative gap is positive
and pressure from liquidity is minimal. In reality,
above 90 percent of fxed term deposits are
renewed on maturity. As such, the negative gap
actually converts into positive gap.
l In order to meet the withdrawal demand the
Bank maintained adequate liquid assets as per
regulation. Following CRR and SLR ratio was
maintained as at December 31, 2012 as against
the regulatory requirement:
Particulars
Required
(%)
Maintained
(%)
Cash Reserve Requirement
(CRR)
6.00 6.97
Statutory Liquidity Ratio
(SLR)
19.00 38.39
Strengthening capital base
By maintaining strong growth of proft, PBL has always
ensured internal generation of capital to meet the
business growth. As a result, capital adequacy of the
bank as per Basel-II remained strong at 12.04 percent
as against the minimum statutory requirement of 10.00
percent. The bank has gradually been taking Basel-III into
consideration both in terms of mind set-up and decision
making which is yet to be implemented in Bangladesh.
Branch Cluster Management
Branch Cluster Management (Branch Mentorship) was
strengthened further during 2013. Through Cluster
Management the Senior Management is becoming directly
involved with Head of Branches (HOBs) in their marketing
drives for assets, liabilities, and other issues. As a result,
the HOBs are exposed to more matured thoughts and
ideas through Mentors resulting in qualitative improvement
of their business and operational activities. The shift to the
mentorship program has proved to be a very effective way
of empowering the people to do better, understand the
challenges ahead through interactive dialogue with senior
management. The cluster management follows a bottom
up approach in setting the budget which includes all key
parameters of core risk management.
Managing Risk
PBL Group recognizes and takes proactive measures
to manage various risks posed by the ever-changing
business environment. These risks which include credit
risk, market risk, liquidity risk and operational risk are
comprehensively dealt with and systematically managed
by established limits and control. PBL established a
structured frame work for risk management which is
intended to balance risk against returns. Details of risk
management of PBL are given in Risk Management
chapter of this report.
Credit Deposit Ratio
85.38%
76.07%
88.38%
93.16%
83.45%
86.88%
2008 2009 2010 2011 2012 2013
Identifying, measuring, monitoring and controlling various type
of risks are vital for ensuring the health of a bank as well as the
whole financial systems. In addition to the traditional risks
faced by the banks in credit and market risks, various operation
risks are created due to following reasons:
Increasing use of automated technology
Growing importance of IT integration and shared services
across financial institutions and entities
Necessity of reducing earnings volatility and achieving
cost efficiencies
Shifting from vanilla type products to technology based
products which are creating more complexity in product
and product development
Increasing customer needs
Evolving outsourcing arrangements and increasing
dependency
Increasing focus by regulators on legal, fraud, and
compliance issues
This has necessitated development of enterprise wise risk
management framework for the banks. PBL is increasingly
focusing on development of appropriate risk management
framework for managing risks of the Bank. Risk Management
Division has been set up which shall monitor and report various
type of risks and develop appropriate risk culture within the
Bank. The Division has been working on identifying the gaps in
the risk management procedure of the bank, placing those
issues to Risk Management Unit comprising of members from
all key business / risk areas and following up for rectification.
Major activities of RMD include preparing Risk Management
Paper, performing stress testing, vetting of different Product
Program Guidelines, process manuals, developing various risk
models and acting as an operation layer for Internal Capital
Adequacy Assessment.
During 2013, PBL has taken various proactive measures for
risk management and appointed KPMG to assist the Bank in
this regard. The scope of the KPMG assignment among others
included improvement of internal control system, review of IT
governance and security control and review of gaps of the
existing Business System Control and corrections through
SOP (Standard Operating Procedure)
Credit Risk Management
Increased focus has been given in managing operational risk in
credit risk management. Fixation of limits for all loans has been
made centralized which have mitigated various risks arising
from human error in branch banking. Similarly, foreign trade
services are also being centralized and the process is
expected to be completed within 2nd quarter of 2014. To
reduce the residual risks the security related documents were
revalidated by legal firms and also cross examined by the
independent audit firms. Corrective measures have been taken
as per the report issued. Periodical Stock verification and
insurance coverage has been made mandatory before
sanctioning or renewing any credit proposals. Since the Bank
has significant exposure in RMG sector, a separate
Merchandiser Team has been formed with people having
adequate experience in RMG operation. This has enhanced
the Banks capability to identify risks and mitigate them on
time. In order to shift to risk adjusted return on capital
(RAROC), borrowers rating is considered while considering
any price adjustment. This is encouraging the borrowers to
come under rating procedure of rating agencies.
Operational Risk Management
Internal Control and Compliance Division is responsible for
monitoring the transactions of the branches as per guidelines
and to develop a compliance culture. The division has been
adequately manned to monitor the operational risks in banking
transactions. They are monitoring both offsite and onsite.
Information Technology Risk
Separate IT Security Department has been formed to assess
the IT risks faced by the Bank and suggest suitable risk
management process for the Bank.
Market Risk
Market risk is actively monitored by the Treasury Division of the
Bank. As per stress testing, the Bank is unlikely to face any
major risks in liquidity, interest rates and foreign exchange.
Pillar 1 Risk Management
PBL has been maintaining capital above the minimum capital
requirement as against Credit, Market and Operational risk.
The bank has proper credit risk mitigation process in place.
Moreover, PBL is consistently trying to rate its corporate
borrowers not only to have expert opinion on the borrowers but
also to have capital relief. PBL has 50 percent of total eligible
corporate borrowers of the bank rated through External Credit
Assessment Institutions (ECAIs). Through borrower rating,
PBL achieved 5,796.40 million capital reliefs as on the position
of December 31, 2013. Proper organizational structure and
procedures are also in place to ensure mitigation of operational
risk and market risk.
PBL was well ahead of minimum capital requirement of 10
percent in all the four quarters of 2013. Capital Adequacy Ratio
of the bank was 10.69% at the end of March,10.79% at the end
of June,11.63% at the end of September and 12.03% at the
end of the December.
Pillar 2 Risk Management
The key principle of the Supervisory Review Process (SRP), the
second Pillar of Basel-II, is that banks have a process for
assessing overall capital adequacy in relation to their risk profile
and a strategy for maintaining their capital at an adequate level.
SRP covers additional risks like Residual Risk, Concentration
Risk, Liquidity Risk, Reputation Risk, Strategic Risk, Settlement
Risk etc. PBL assessed its additional capital requirement under
Pillar 2 and submitted the statements on Internal Capital
Adequacy Assessment Process (ICAAP) to Bangladesh Bank.
PBL has been conducting stress testing on its financials on
quarterly basis and reporting the outcomes to Bangladesh Bank,
as a part of Pillar 2 risk management.
Pillar 3: Market Discipline
PBL always delivers the appropriate disclosures not only to
meet the regulatory requirements but also as per international
best practices. Disclosures on the position of PBLs risk profile,
capital adequacy, and risk management system has been
included in this Annual Report also.
As per the Bank-Company (Amendment) Act, 1991 and as
guided by the Bangladesh Bank BRPD Circular no. 11 dated
October 27, 2013 the Risk Management Committee (RMC) of
the Board has been formed to look after the risk management
issues of the Bank. The formation of RMC will definitely add
new dimensions in the risk management of the Bank.
Ahmed Kamal Khan Chowdhury
Deputy Managing Director & CRO
Prime Bank Limited
Report on Risk Management by Chief Risk Ofcer
Annual Report 2013
113
Annual Report 2013
114

Risk Management Report
Risk is the probability that an investments actual return will
be different than expected which includes the possibility of
losing partial or full of the original investment. As such the
enterprizes through coordinated steps manages the risk to
keep the loss at a tolerable limit. The steps also includes
control and monitoring.
The objective of risk management is to identify and analyze
risks and manage their consequences. Basel II Accord, the
standards of Risk Management as guided by the Bank for
International Settlements (BIS) and particularly Basel
Committee on Banking Supervision (BCBS), has been
applied by bank regulators across the world. Bangladesh
Bank also issued guidelines which forms the basis of risk
management of the banks in Bangladesh. The guidelines
requires that the banks adopt enhanced policies and
procedures of risk management. PBLs risk management
strategy is based on a clear understanding of various risks,
disciplined risk assessment, measurement procedures and
continuous monitoring. PBL continues to focus on
improving its risk management systems not only to ensure
compliance with regulatory requirements but also to ensure
better risk-adjusted return and optimal capital utilization
keeping in mind of the business objectives. For sound risk
management, PBL manages risk in strategic layer,
managerial layer, and operational layer.
The risk management process of the bank operates under
following structure:
The Board approves overall risk management
policies of the Bank in line with the regulatory
guidelines
Executive Committee (EC) of the Board is
responsible for all sort of decision making as set by
the Board. All decision taken by EC is ratified by the
Board afterward
Audit Committee (AC) of the Board reviews the
internal audit reports of the bank and operational risk
and assesses whether internal control of the Bank is
proper or not
Risk Management Committee (RMC) of the Board
oversees the overall Risk Management of the Bank.
The committee also review risk management policies
& guidelines, loan approval limit and submit to the
Board for necessary revision each year
For managing risk, PBL established Credit Risk
Management Division (CRM), Credit Administration
Division (CAD), Recovery Division, Legal Division,
Internal Control and Compliance Division (ICCD),
Internal Audit and Inspection Department and Risk
Management Division (RMD). For managing money
laundering risk, Branch Anti Money Laundering
Compliance Officer (BAMLCO) for every Branch
under dedicated Chief Anti Money Laundering
Compliance Officer (CAMLCO) has been placed
PBL also formed various risk management
committees like Head Office Credit Review Committee
(HOCRC), Asset Liability Committee (ALCO),
Management Committee (MANCOM), Central
Compliance Committee, Management Reporting
System Committee (MRS) and Risk Management Unit
(RMU) for managing and monitoring of risk throughout the
organization
Risk Management Process
Risk management is to balance the trade-off between risk
and return and ensure optimum risk-adjusted return on
capital. The risk management function of PBL strives to
proactively anticipate vulnerabilities at the transaction as
well as at the portfolio level, through quantitative or
qualitative examination of the embedded risks. Risk is
managed through a framework of policies and principles
approved by the Board of Directors which ensures that the
Bank operates within its risk appetite. The policies and
procedures established for this purpose are continuously
benchmarked with international best practices. Further, the
Internal Capital Adequacy Assessment Process (ICAAP) of
the Bank assesses all the significant risks associated with
various businesses.
Identification: A banks risks have to be identified before
they can be measured and managed. Typically PBL
distinguishes Credit risk, Market risk, Liquidity risk,
Operational risk, Islamic banking risk and Information and
Communication Technology (ICT) risk. Besides these,
concentration risk, strategic risk, residual risk, reputation
risk etc are covered under Internal Capital Adequacy
Assessment Process (ICAAP).
Measurement: The consistent assessment of the above
mentioned types of risks is an essential prerequisite for
successful risk management. For example, in order to
assess credit risk associated with any corporate financing
proposal, PBL carries out various risk assessment like
financial spreadsheet analysis, credit risk grading and other
risk like concentration related to the borrower and the
relevant industry.
Aggregation: PBL closely monitors aggregate risk in order
to minimize its exposure to adverse financial
developments- such as a credit crunch or even insolvency-
arising at a counterparty or client. While aggregating risks,
it is important to take into account correlation effects which
cause a banks overall risk differing from the sum of the
individual risks. This applies to risks both within a risk
category as well as across different risk categories.
Planning & Controlling: PBL takes into consideration
the business strategy while planning and setting control
for mitigating risk. As risk management is the trade-off
Annual Report 2013
115
between risk and return PBL always try to manage the risk
without hampering the business growth and stakeholders
return. Internal Capital Adequacy Assessment Process
(ICAAP) is one of the biggest part of planning and
controlling of risk.
Monitoring: Risk monitoring is the most challenging task in
the whole risk management cycle as monitoring helps the
Bank to identify earlier of any probable risk that may take in
place in many cases. Risk monitoring also helps to track
whether the risks actually incurred lie within the prescribed
limits, thus ensuring an institutions capacity to bear those
risks.
The above process of risk management is being
undertaken by PBL which implies that if any risk(s) remains
un-attended, that will be addressed though the repetition of
the process which started with identification of those factors
and the process continues.
Credit Risk Management
Management of Credit Risk in PBL
While financial institutions have faced difficulties over the
years for a multitude of reasons, the major cause of serious
banking problems continues to be directly related to lax
credit standards for borrowers and counterparties, poor
portfolio risk management, or a lack of attention to changes
in economic or other circumstances that can lead to a
deterioration in the credit standing of a banks
counterparties. Credit risk is most simply defined as the
potential that a banks borrower or counterparty will fail to
meet its obligations in accordance with agreed terms. The
goal of credit risk management is to maximize a banks risk
adjusted rate of return by maintaining credit risk exposure
within acceptable parameters. The effective management
of credit risk is a critical component of a comprehensive
approach to risk management and essential to the
long-term success of any banking organization. Thats why,
a risk based asset review framework has also been put in
place wherein the frequency of asset review would be
higher for high exposure cases and/or lower credit rating.
The sound practices set out in this document specifically
address the following areas:
Establishing an appropriate credit risk environment
Operating under a sound credit granting process
Maintaining an appropriate credit administration
measurement and monitoring process and
Ensuring adequate controls over credit risk
The following sets of principles are used for the sustainable
risk management culture:
Balancing Risk and Return: Risk is taken hampering the
interest of banks stakeholders, in line with banks strategy
and within its risk appetite.
Responsibility: All employees ensure that risk-taking is
disciplined and focused.
Accountability: Risk is taken only by delegated authorities
and where there is appropriate infrastructure and
resources. PBL maintains a clear and transparent process
for all risk-taking decisions.
Anticipation: PBL seeks to anticipate future risks and
ensure awareness of all known risks.
Competitive advantage: The bank seeks to achieve
competitive advantage through efficient and effective risk
management and control. The credit risk management
policy of PBL operates under the following broad principles:
A. Establishing an appropriate Credit Risk environment
The Board of Directors is responsible for approving and
reviewing the credit risk strategies and policies of the bank
periodically. The strategy reflects banks tolerance for risk
and the level of profitability the bank expects to achieve for
incurring various credit loss.
Senior management is responsible for implementing the
credit risk strategy approved by the Board and for
developing standard policies and procedures for
identifying, measuring, monitoring and controlling any type
of risk associated with the strategy. Such policies and
procedures address credit risk of the banks activities and
at both the individual credit and portfolio level.
PBL ensures that the risks inherent in products and
activities which are apparently new to the bank are subject
to adequate procedures and controls before being
introduced or undertaken, and approved in advance by the
Board of Directors or its appropriate committee. In order to
streamline risk control features in a more effective manner,
PBL has put in place Standard Operating Procedure (SOP)
in line with internationally accepted best practices.
B. Operating under a sound credit granting process
PBL follows sound, well defined credit-granting criteria.
These criteria include a thorough assessment of the
borrower or the counterparty, as well as the purpose and
structure of the credit, and its source of repayment.
Credit facilities are allowed in a manner so that asset
growth can be maintained ensuring optimum asset
quality and without compromising the banks standard of
excellence
PBL carefully avoids name lending. Credit facility is
being allowed absolutely on business consideration with
absolute due diligence
Risks inherent in a credit proposal are being identified
and appropriate mitigating steps are taken
Collateral offered against a credit facility is properly
valued and verified by the concerned Relationship
Officer or Relationship Manager periodically. In addition,
the same collateral is valued and verified by an enlisted
surveyor of the bank which is now applicable for all
customers irrespective of any amount
Risk grading of the accounts is being done as per the
Bangladesh Banks guidelines. Any credit approval/
sanction is subject to the banking regulations in force or
imposed by the regulatory body from time to time and
subject to changes of the banks policy. Data collection
check list and limit utilization format are prepared for
regular assessment. Internal Audit & Inspection Division
independently reviews the risk assessment at the time
of auditing
The bank has established overall credit limit at every level
of groups of legally connected borrowers including
individual borrowers and counterparties that aggregate in
comparable and meaningful manner for different types of
exposures, both in the banking and trading book and on
and off balance sheet.
Annual Report 2013
116

PBL always complies with the prevailing banking
regulations regarding Single Borrower Exposure Limit set
by the Bangladesh Bank from time to time. Credit facility to
a single customer (Individual, Enterprise, Company,
Corporate, Organization, and Group) shall be treated as
Large Loan if total limit/disbursement amount exceeds 10
percent of the total capital of the bank. PBLs total Large
Loan Portfolio exposure shall not exceed 56 percent of the
total outstanding loans and advances at any point of time
as per Master Circular on Single Borrower Exposure Limit
of BRPD circular no 5 dated April 09, 2005.
The bank has a clearly-established process in place for
approving new credits as well as the extension of existing
credits. A thorough credit risk assessment is done before
granting loans. The Credit Risk Assessment includes
borrower risk analysis, industry risk analysis, historical
financial analysis, projected financial performance, the
conduct of the account, and security against the proposed
loan.
The assessment originates from relationship manager/
account officer and is reviewed by Head Office Credit
Review Committee. The Credit analyst or executive duly
delegated by proper authority approves the credit
proposals. Executive Committee of the Board approves the
proposals beyond the delegated authority limit of the
Management. The Board of Directors reviews the
proposals approved by the Executive Committee.
All credit extensions are made on an arms length basis. In
particular, credits to related companies and individuals
monitored with particular care and other appropriate steps
taken to control or mitigate the risks of connected lending.
Credit granting process at PBL operates within the defined
risk limit so that the bank can achieve growth target and
superior return on capital.
C. Maintaining an appropriate credit administration,
measurement and monitoring process
A system has been put in place by the bank for ongoing
administration of various credit risk-bearing portfolios.
Dedicated independent risk management units are
developed for these purposes. Dedicated committees at
management level have been set up to monitor risk.
PBL segregated the total credit process into Relationship
Management/Marketing, Credit Approval/Risk Management,
Credit Administration to improve the knowledge levels and
expertise in each department and to impose controls over the
disbursement of authorized loan facilities and obtain an
objective and independent judgment of credit proposals. Credit
Administration Division completes security documentation
after getting approval from Credit Risk Management
Division and ensures adherence to approved terms and
other requirements before limit creation and disbursement.
To minimize credit losses, monitoring procedures and
systems is in place that provides an early indication of the
deteriorating financial health of a borrower.
An Early Alert Account is one that has risks or potential
weaknesses of a material nature requiring monitoring,
supervision, or close attention of the management. If such
weaknesses are left uncorrected, they may result in
deterioration of the repayment prospects for the asset or in
the banks credit position at some future date with a
likelihood of being downgraded. Early identification, prompt
reporting and proactive management of Early Alert
Accounts are prime responsibilities of all Relationship
Managers / Officers and the whole process is a continuous
one. An Early Alert Report is completed by the Relationship
Manager and sent to the approving authority in Credit Risk
Management Division for any account that is showing signs
of deterioration. The Risk Grade is then changed and
referred to Credit Risk Management Division for assistance
in recovery.
The bank has also put a system in place for monitoring the
condition of individual credits including determining the
adequacy of provisions and reserves. For NPL Provisioning
and Write-off, the guidelines established by the Bangladesh
Bank for Credit Information Bureau (CIB) reporting,
provisioning and write-off of bad and doubtful debts and
suspension of interest are followed in all cases. Provision is
maintained for any shortfall in the Forced Sale Value (FSV)
to cover total loan outstanding once an account is
classified.
PBL has information systems and analytical techniques
that enable management to measure the credit risk
inherent in all on- and off-balance sheet activities. PBL
have taken initiative to make management information
system more robust and sophisticated for monitoring the
asset quality of the Bank.
All credit approvals are given complying with the
requirements of banks Memorandum and Articles of
Association, the Bank Company Act, 1991 as amended
from time to time, the Bangladesh Banks instruction
circulars, guidelines and other applicable laws, rules and
regulations, banks Credit Risk Management Policy, Credit
Operational Manual and all relevant circulars in force. Any
deviations from the internal policy of the bank are well
documented. The portfolio is well diversified with respect to
Annual Report 2013
117
sector and industry. Concentration of credit is carefully
avoided to minimize risk.
PBL takes into consideration of potential future changes in
economic conditions while assessing individual credits and
credit portfolios. An important element of sound credit risk
management involves discussing what could potentially go
wrong with individual credits and within the various credit
portfolios, and factoring this information into the analysis of
the adequacy of capital and provisions.
D. Ensuring adequate controls over credit risk
PBL has established a system of independent, ongoing
credit review and the results of such reviews are
communicated directly to the Board of Directors and senior
management.
PBL ensures that the credit-granting function is being
properly managed and that credit exposures are within
levels, consistent with prudential standards and internal
limits. The bank has established and enforced internal
controls and other practices to ensure that exceptions to
policies, procedures and limits are reported in a timely
manner to the appropriate level of management.
PBL has a system in place for managing problem credits
and various other workout situations. All NPLs are assigned
to Account Manager(s) within the Recovery Division, who is
responsible for coordinating and administering the action
plan / recovery of the account and serve as the primary
customer contact after the account is downgraded to
substandard.
Environmental Risk Management
Environmental Risk Management seeks to provide a
framework for addressing the risk to ensure a trajectory of
sustainable financial and economic growth. As instructed
by the Bangladesh Bank, PBL has incorporated
Environmental Risk Management guidelines into Credit
Risk Management Policy.
PBL use Environmental Risk Rating (EnvRR) for both
financing for new, green field projects as well as those
pertaining to existing facilities.
Liquidity Risk Management
Liquidity risk is the failure to meet obligations leading to an
inability to support normal business activity and to meet
liquidity regulatory requirements. Liquidity risk can arise
due to market liquidity or funding liquidity. Market liquidity
risk is the risk of the inability to sell assets due to lack of
liquidity in the market. Funding liquidity risk is the risk of the
inability to meet liabilities when they fall due or can only be
met at abnormal high price.
To manage liquidity risk, PBL maintains diversified and
stable funding base comprising of core retail, corporate
and institutional deposits. The principle responsibility of
the liquidity risk management of the bank rests with
Treasury Division which maintains liquidity based on
historical requirements, current liquidity position,
anticipated future funding requirement, sources of fund,
options for reducing funding needs, present and
anticipated asset quality, present and future earning
capacity, present and planned capital position. ALCO
manages the liquidity risk by i) setting tolerance limit for
cumulative cash flow mismatches, ii) setting limit on loan
to deposit ratio and iii) setting limits on dependence on
institutional deposits which are volatile in nature. From the
liquidity statement (Annexure-I) it can be seen that out of
total deposit liabilities of Tk 201,907 million, contractual
maturity of liability within 1 year is Tk 125,480 million. In the
liquidity statement it is apparent that there is minimal
negative gap till 1-3 months bucket, moderate positive gap
in over 3 months to 5 years bucket and there is a huge
positive gap in over 5 years maturity bucket which conforms
that pressure from liquidity is minimal. In reality, above 90
percent of fixed term deposits are renewed on maturity. As
such, the negative gap actually converts into positive gap.
Market Risk Management
Market risk is defined as the risk of losses in on and
off-balance sheet positions arising from adverse movements
in market prices which may impact the Banks earnings and
capital. The purpose of market risk management framework
is to minimize the risk of loss and maximize profit in trading
portfolio. The risk may pertain to interest rate related
instruments (interest rate risk), equities (equity price risk)
and foreign exchange rate risk (currency risk). Besides, the
Bank is also exposed to liquidity or funding risk.
Market Risk management is guided by well laid policies,
guidelines, processes and systems for the identifcation,
measurement, monitoring and reporting of exposures
against various risk limits. The Asset Liability Management
Committee meets periodically and reviews the positions of
trading groups, interest rate sensitivity, sets deposit and
benchmark lending rates and determines the asset liability
management strategy, as deemed fit, in light of the current
and expected business environment. Treasury back office
monitors Risk limits including position limits and stop loss
limits for the trading book and reviews periodically. For
managing and monitoring foreign exchange risk PBL has
started calculation of Value at Risk (VaR). Interest rate risk
is monitored through the use of re-pricing gap analysis and
duration analysis. Interest rate risk is further monitored
through the ALCO.
PBL uses various tools for measurement of liquidity risk like
structural liquidity profile, stress testing etc. PBL maintains
diversified sources to facilitate the bank to meet funding
requirements.
Interest Rate Risk
Interest rate risk is the risk of losing profit by an
interest-bearing asset, such as a loan or a treasury bond
etc due to variability of interest rates. In general, as rates
rise, the price of a fixed rate bond will fall, and vice versa.
PBL monitors interest rate risk through duration gap
analysis. The short term impact of changes in interest rates
is on the banks Net Interest Income (NII). In a longer term,
changes in interest rates impact the cash flows on the
assets, liabilities and off-balance sheet items, which raise
the risk of losing the net worth arising out of all re-pricing
mismatches and other interest rate sensitive position.
Maturity grouping of rate sensitive assets and liabilities of
the Bank (see table on Interest Rate Risk Analysis) shows
negative gap in the first quarter and moderate positive gap
Market Risk
Interest Rate
Risk
Equity Risk
Foreign
Exchange Risk
Commodity Risk
Annual Report 2013
118

in the rest three quarters. If interest rate increases by
1 percent, the Bank will enjoy a positive earning to the
tune of Tk. 14.17 million during 1 year period and vice
versa. The impact is very insignificant compared to
total revenue of the Bank and also within the
acceptable limit as stipulated by the Bangladesh Bank.
The statement also shows that there will be 2.10%
impact on quarterly operating profit which is also within
the stipulated limit of 10 percent.
Foreign Exchange Risk Management
It is the risk that the bank may suffer losses as a result of
adverse exchange rate movements during a period in
which it has an open position in an individual foreign
currency. In addition, the bank is also exposed to interest
rate risk and settlement risk on account of its foreign
exchange business.
Foreign exchange risks are measured and monitored by
Treasury Division. To evaluate the extent of foreign
exchange risk, a Liquidity Gap Report is prepared for each
currency. Gap or mismatch of maturities can arise due to
a customer transaction resulting in a long or a short
position for the bank. The overall foreign currency
exposure of the Bank is USD 48.98 million which is
equivalent to Tk. 3,808.20 million or on overnight basis as
stipulated by Bangladesh Bank. The sum of the net overall
positions in different currencies results in a positive net
asset position of Tk. 429.42 million. The overall exposure
does not exceed the stipulated limit.
Equity Risk Management
Equity risk is defined as losses due to changes in market
price of equity held by the bank. To measure and identify
the risk, mark to market valuations of the share investment
portfolios are done. Mark to market valuation is done
against a predetermined limit.
Operational Risk Management
Operational risk is defined as the risk of loss resulting from
inadequate or failed internal processes, people and
systems, or from external events. Operational risks vary in
their components. Some are very high occurrence with low
value risk and some are low occurrence with high value
risks. Third consultative paper of Basel-II recommended
following event based classification of operational risks:
Internal fraud
External fraud
Employment practices and workplace safety
Client, products and business practices
Damage to physical assets
Business disruption and system failure
Execution, delivery and process management
In PBL, operational risks are identified and measured in the
following manner:
Risks are identified with reference to the relevant policy
manuals, processes, procedures and practices
Accounts are evaluated as per Departmental Control
function Check List (DCFCL)
Incident reporting and analysis of causes and actions
taken on losses from fraud and control lapses
Review of safety and control measures of premises.
Risk control and measurement in PBL are as under:
Manuals and Standard Operating Procedures are in
place and implementation of those are regularly
monitored
Regular review of system and network by Management
Committee (MANCOM) and Management Reporting
System Committee (MRSC)
Internal Audit & Inspection and Internal Control and
Compliance Division of the bank undertake periodical
comprehensive and special audit of branches and
departments at Head Office for review of the operation
and compliance of statutory requirement respectively.
The Audit Committee of the Board subsequently reviews
the reports of the Internal Control and Compliance
Division
Risk based audit by Internal Audit & Inspection Division
Segregation of duties and multi-tier approval procedure
Conduct IT Audit on regular basis
Establishing a Data Center for backup of data and
information
Regular testing of systems back-up procedure and
contingency plan
Prevention of Money Laundering
Money Laundering means properties acquired or earned
directly or indirectly through illegal means or illegal transfer,
conversion and concealment of location. Bangladesh Bank
through BRPD Circular No. 17 dated October 07, 2003
advised the scheduled commercial banks operating in the
country to put in place effective risk management system
which includes Money Laundering Risk Management
among others.
PBL has updated Anti Money Laundering Guidelines in
2012, which includes Senior Management commitment to
the anti-money laundering program. The Management has
evolved such a culture for the Bank so that all the
employees strictly adhere to each and every provision of
Money Laundering Prevention Act 2012 and Anti-Terrorism
Act-2009 with amendment of 2012. Later Circular was
issued for compliance of the Anti-Terrorist (Amended)
Act-2013. All employees of the Bank, irrespective of the
position they hold, are accountable to the Top Management
and regulatory body for their activities which might directly
or indirectly relate to money laundering.
Details of Anti Money Laundering activities are included in
the Corporate Governance chapter of this Annual Report.
Internal Control and Compliance
Internal Control and Compliance is a management process
designed to achieve effectiveness and efficiency of
operations, reliable financial reporting and compliance with
laws and regulations.
Pillar 1 and Pillar 2 of BaselII Accord also focused on
operational risk and supervisory review respectively
attaching considerable importance to internal control &
compliance and on supervision & monitoring. As prescribed
in the Bangladesh Bank core risk guideline on Internal
Control & Compliance, Management Committee
(MANCOM) of PBL reviews the overall effectiveness of
internal control system.
The chapter on Corporate Governance in this Annual
Report contains details of internal control and compliance
measures of the bank.
Islamic Banking Risk Management
Islamic banking is becoming a popular mode of banking
because of its Shariah complied principles. In many
countries, there are separate Islamic banking banks and
also banks which are operating under both conventional
and Islamic mode of banking. In addition to the credit risk,
market risk, liquidity risk and operational risk there are
other risks in Islamic banking operation.
Annual Report 2013
119
Shariah Non-Compliance Risk arises from the failure of
the banks to comply with Shariah rules and regulations.
As more and more banks are operating under both
conventional and Islamic banking, it is becoming
increasingly important to comply with Shariah rules and
regulations for the sustainability of Islamic banking.
Based on historical reviews, the potential areas of
Shariah non-compliance is assessing potential profits
that cannot be recognized as eligible profits under
Shariah Principle
Fiduciary risk is the risk that arises from banks failure to
perform in accordance with explicit and implicit
standards applicable to their fiduciary responsibilities.
As a result of losses in investments, banks may become
insolvent and therefore unable to (i) meet the demands
of current account holders for repayment of their funds
and (ii) safeguard the interests of their PLS (Profit Loss
Sharing) deposit holders. Banks may fail to act with due
care when managing investments resulting in the risk of
possible forgone profits to PLS deposit holders
In order to reduce Shariah non-compliance risk, the
Muraqibs regularly conducted Shariah audit. Fiduciary risk
is controlled through banks risk management process.
Information and Communication Technology Risk
Management
We are living in an era of information and communication
technology and the banks have become more technology
driven these days. Use of computer, internet has become a
common practice in the banking industry. There are certain
risks involved in the use of information and communication
technology. This risk may arise from malfunction of system,
failure of network, lack of knowledge about the use of
technology, virus attack, hacking etc.
PBL has adopted world class Core Banking Software
TEMENOS T24. PBL has also implemented Disaster
Recovery (DR) site. One DR site located in Uttara and the
other is in Gulshan to make sure that the bank operates
smoothly under unavoidable circumstances. PBL has an IT
audit team also, formed as per the Central Banks guideline.
The team conducts IT Audit in each branch on a periodic
basis and provides suggestions to higher management. IT
Division is also managing IT related training programs to
make sure that employees are aware of IT risk related
issues. The chapter on Corporate Governance in this
Annual Report contains details of IT audit.
With a vision to provide secure and safer banking service,
Information Security Department has been formed. At the
very beginning, Information Security department is
following globally accepted management system standard
ISO 27001 to manage Information Security.
Internal Capital Adequacy Assessment Process (ICAAP)
The Bank conducts ICAAP process every year as stipulated
by the Bangladesh Bank. ICAAP is aimed at ensuring that
the bank maintains an amount of capital commensurate
to its risk profile and improves upon its risk management
systems and framework. It involves realistic assessment of
the level of risks inherent in the business operations of the
bank and setting aside adequate capital to cover all such risks
like Residual Risk, Concentration Risk, Liquidity Risk,
Reputation Risk, Strategic Risk, Settlement Risk etc. The
assessment is done considering the operational presence,
activities, and processes etc. Monitoring all the material risks
also forms part of ICAAP. In short, ICAAP is integrated into the
management and decision making process and is reflected in
the processes and business operations of the Bank.
Risk Management Paper
Risk Management Paper (RMP) consisting of various data
related to Credit Risk, Market Risk, Liquidity Risk and
Operational Risk from all related divisions are presented in
the monthly meeting of Risk Management Unit (RMU) by
Risk Management Division (RMD).
Credit risk under RMP covers the sector concentration of
the portfolio, classification, recovery, provisioning, top
defaulters, collateral, fund diversion etc. Market Risk
covers the Interest Rate Risk, Foreign Exchange Risk,
Equity Risk. Liquidity Risk covers Statutory Liquidity
Requirement (SLR), Cash Reserve Ratio (CRR), Advance
Deposit Ratio (ADR) etc. Operational Risk covers internal
fraud, external fraud, evaluation of core risk management
etc.
The RMP is also submitted to the Risk Management
Committee of the Board and the decisions are
communicated to relevant divisions of the bank for
implementation. The Bangladesh Bank also determines the
status of risk management of the bank on the basis of RMP.
Borrowers Rating
As prescribed by Bangladesh Bank (BB), all banks in
Bangladesh assessing credit risk under the Standardized
Approach of the Risk Based Capital Adequacy framework
(Basel II), where External Credit Assessment Institutions
(ECAIs) duly recognized by BB performs borrower rating
against which risk weight mapped with the credit rating
category and risk weighted assets (RWA) is determined for
calculating the capital requirement of banks against credit risk.
Basel-II, in respect of capital measurement and capital
standards, aligns capital of a bank more closely with the
underlying risk. With a view to smooth implementation of
Basel II Accord, The management of PBL decided to
conduct Credit Rating for Corporate Borrowers through
External Credit Rating Assessment Institutions (ECAIs).
Capital Management is one of the key strategic issues
these days in the banking business. Borrower rating not
only plays an important role in improving capital adequacy
of the bank through capital relief but also helps the bank to
understand the risk associated with the borrowers. In this
regard, RMD calculates capital relief on the basis of rated
customers quarterly.
As a result of vigorous effort and continuous persuasion,
out of total 576 nos. of eligible corporate borrowers of PBL
having exposures of BDT 100 million and above, rating of
288 nos. of borrowers (50 percent of eligible borrowers) has
been completed till December 31, 2013.
Annual Report 2013
120

The rating distribution of the 288 nos. corporate borrowers
of PBL is as follows:
* The risk weight for unrated exposure is 125 percent.
Stress Testing
A stress test, in financial terminology, is an analysis or
simulation designed to test the ability of a given financial
institution to deal during forecasted economic crisis.
Instead of doing financial projection on a "best estimate"
basis, a bank or its regulators do stress testing where it
looks at how robust institutions is in certain crashes, a kind
of What-If scenario analysis.
This type of analysis has become increasingly widespread,
and has been taken up by various governmental bodies as
a regulatory requirement on certain financial institutions to
ensure adequate capital allocation to cover potential losses
incurred during extreme, but plausible, events.
Stress testing framework as provided by Bangladesh Bank
assesses the impact on CAR due to minor, moderate and
major level of shock in terms of credit risk, exchange rate
risk, liquidity risk, equity price risk and interest rate risk.
Stress testing for credit risk assesses the impact of
increase in the level of Non-Performing Loans (NPLs) of the
banks.
Performing loan directly downgraded to B/L- Sectoral
Concentration 1
It is a measure of the concentration risk where the bank has
the highest investment. It assumes that 3 percent, 9
percent and 15 percent of the performing loan will be
directly downgraded to B/L category in minor, moderate
and major levels of shock respectively. Capital Adequacy
Ratio (CAR) of PBL will be 12.03 percent, 11.94 percent
and 11.84 percent in minor, moderate and major levels of
shock respectively when considering individual shock.
Performing loan directly downgraded to B/L- Sectoral
Concentration 2
It is a measure of the concentration risk where the bank has
the second highest investment. It assumes that 3 percent,
9 percent and 15 percent of the performing loan will be
directly downgraded to B/L category in minor, moderate
and major levels of shock respectively. Capital Adequacy
Ratio (CAR) of PBL will be 12.07 percent, 12.06 percent
and 12.04 percent in minor, moderate and major levels of
shock respectively when considering individual shock.
Increase in NPLs due to default of top large loan borrowers
It represents the scenario of the bank when top large
borrowers default. It is assumed that top 3, 7 and 10
borrowers of the bank will default in minor, moderate and
major levels of shock respectively. Capital Adequacy Ratio
(CAR) of PBL will be 9.38 percent, 7.60 percent and 6.13
percent in minor, moderate and major levels of shock
respectively when considering individual shock. PBL is
reducing the exposure of large loan borrower and focusing
on diversification of credit portfolio. However, the bank is
continuously monitoring the performance of large loan
borrowers. Besides, a good amount of security coverage is
also maintained against those large loans.
Negative shift in NPLs categories
It represents the shift of a loan from one NPL category to
the next NPL category. It is based on the assumption of 5
percent, 10 percent and 15 percent downward shift in the
NPLs categories in minor, moderate and major levels of
shock respectively. Capital Adequacy Ratio (CAR) of PBL
will be 11.92 percent, 10.76 percent and 10.41 percent in
minor, moderate and major levels of shock respectively
when considering individual shock.
Decrease in the Forced Sale Value (FSV) of the collateral
It represents the banks condition when FSV of collateral
decreases sharply. It is based on the assumption that FSV
of collateral will fall by 10 percent, 20 percent and 40
respectively. Capital Adequacy Ratio (CAR) of PBL will be
11.92 percent, 11.76 percent and 11.43 percent in minor,
moderate and major levels of shock respectively when
considering individual shock.
Interest rate shock
It represents the condition of the bank when interest rate
changes significantly. It is based on the assumption that
interest rate will change by 1 percent, 2 percent and 3
Foreign exchange shock
It represents the condition of the bank when exchange rate
changes significantly. It is based on the assumption that
exchange rate will change by 5 percent, 10 percent and 15
Equity shock
It represents the banks condition when market value of
share falls sharply. It is based on the assumption that share
price will change by 10 percent, 20 percent and 40 percent
in minor, moderate and major levels of shock respectively.
Capital Adequacy Ratio (CAR) of PBL will be 11.86 percent,
11.64 percent and 11.20 percent in minor, moderate and
major levels of shock respectively when considering
individual shock.
When all the shocks are considered together, Capital
Adequacy Ratio (CAR) of PBL will be 10.08 percent, 6.36
percent and 3.02 percent in minor, moderate and major
levels of shock respectively. So, the Bank can absorb minor
level of shock only when all the shocks are considered
together. However, for absorbing other levels of shock
which is very unlikely in the industry, the bank may require
additional capital and reserve.
BB Grade 1
BB Grade 2
BB Grade 3
BB Grade 4
BB Grade 5
20
50
100
100
150
57
96
108
24
3
288
19.79
33.33
37.50
8.33
1.05
100
No. of Rated
Borrowers
of PBL
Bangladesh
Bank
Rating Grade
Risk Weight*
(Percentage)
Percentage of
Total Rated
Borrowers
Total
Annual Report 2013
121
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Annual Report 2013
122
Market Discipline
Disclosures on Risk Based Capital (Basel-II)
1. Scope of Application
Qualitative
disclosure
a) The name of the top corporate
entity in the group to which this
guidelines applies.
b) An outline of differences in the
basis of consolidation for
accounting and regulatory
purposes, with a brief
description of the entities within
the group (a) that are fully
consolidated; (b) that are given
a deduction treatment; and (c)
that are neither consolidated
nor deducted (e.g. where the
investment is risk-weighted).
Prime Bank Limited
Prime Bank Limited has 5 (Five) subsidiaries viz. (i) Prime Bank Investment Limited, (ii)
Prime Bank Securities Limited, (iii) Prime Exchange Co. (Pte.) Limited, Singapore, (iv) PBL
Exchange (UK) Limited and (v) PBL Finance (Hong Kong) Limited.
A brief description of the Bank and its subsidiaries are given below:
Prime Bank Limited:
The Prime Bank Limited ("the Bank") was incorporated as a public limited company in
Bangladesh under Companies Act, 1994 with the registered office of the company at
119-120 Motijheel C/A, Dhaka-1000. It commenced its banking business with one branch
from April 17, 1995 under the license issued by Bangladesh Bank. Presently the Bank has
134 (One Hundred Thirty Four) branches including 17 (Seventeen) SME Centre/ Branches
all over Bangladesh and 2 (Two) booths located at Dhaka Club, Dhaka and at Chittagong
Port, Chittagong. Out of the above 134 branches, 05 (five) branches are designated as
Islamic Banking branch complying with the rules of Islamic Shariah. Also the Bank has 3
(Three) Off-shore Banking Units (OBU), 5 (Five) subsidiary Companies (3 Foreign
subsidiaries & 2 Local subsidiaries). The Bank went for Initial Public Offering in 1999 and its
shares were listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange
Limited as a publicly traded company for its general classes of share.
The principal activities of the Bank are to provide all kinds of commercial banking services
to its customers through its branches.
Subsidiaries of PBL:
i) Prime Bank Investment Limited:
Prime Bank Investment Limited (PBIL) is a subsidiary company of Prime Bank Limited
incorporated as a public limited company on April 27, 2010 with the registrar of Joint Stock
Companies, vide certificate of incorporation no.C-84266/2 dated 28 April 2010 which has
commenced its business on the same date.
The main objectives of the company are to carry out the business of full-fledged merchant
banking activities like issue management, portfolio management, underwriting, corporate
advisory services etc.

ii) Prime Bank Securities Limited:
Prime Bank Securities Limited was incorporated on April 29, 2010 as a private limited
company under the Companies Act 1994. The main objectives of the company are to carry
on business of stock brokers / dealers in relation to shares and securities dealings and other
services as mentioned in the Memorandum and Articles of Association of the Company. The
company commenced its operation from May 2011.
iii) Prime Exchange Co. (Pte.) Limited, Singapore:
Prime Exchange Co. (Pte) Ltd., Singapore a fully owned subsidiary company of Prime Bank
Limited was incorporated in Singapore on January 06, 2006 and commenced its remittance
business with one (1) Branch from July 08, 2006. In 2011 the Company has also opened
another Branch located at Jurong East Branch, Block: 134 #01-305 Jurong Gateway Road,
Singapore 600134. The principal activities of the company are to carry on the remittance
business and to undertake and participate in transactions, activities and operations
commonly carried on or undertaken by remittance and exchange house.
iv) PBL Exchange (UK) Limited:
PBL Exchange (UK) Limited was incorporated as a private limited company with Companies
House of England and Wales under registration no. 7081093 dated 19 November 2009. The
company is a wholly owned subsidiary of Prime Bank Limited. The company commenced its
operation on 02 August 2010 with three Branches located at Brick Lane of London, Coventry
Road of Birmingham and North Oldham of Manchester. The registered office is located at
16 Brick Lane, London E1 6RF.
v) PBL Finance (Hong Kong) Limited:
PBL Finance (Hong Kong) Limited, a fully owned subsidiary of Prime Bank Limited. PBL
Finance (Hong Kong) Limited was incorporated with Companies Registries of Hong Kong
(Certificate of incorporation no. 1584971 and Business Registration no. 58197431 both
dated April 7, 2011). PBL Finance (Hong Kong) Limited obtained Money Lending Licenses
# 307/2011 issued by Honorable Court of Hong Kong on 28th July 2011. It has commenced
its operation from August 2011 with one branch located at 608, 6/F, Admiralty Centre,
Tower-2, 18 Harcourt Road, Hong Kong.
Not applicable
Not applicable
Annual Report 2013
123
2. Capital Structure
c) Any restrictions, or other major
impediments, on transfer of
funds or regulatory capital within
the group.
d) The aggregate amount of
capital deficiencies in all
subsidiaries not included in the
consolidation that are deducted
and the name(s) of such
subsidiaries.
company is a wholly owned subsidiary of Prime Bank Limited. The company commenced its
operation on 02 August 2010 with three Branches located at Brick Lane of London, Coventry
Road of Birmingham and North Oldham of Manchester. The registered office is located at
16 Brick Lane, London E1 6RF.
v) PBL Finance (Hong Kong) Limited:
PBL Finance (Hong Kong) Limited, a fully owned subsidiary of Prime Bank Limited. PBL
Finance (Hong Kong) Limited was incorporated with Companies Registries of Hong Kong
(Certificate of incorporation no. 1584971 and Business Registration no. 58197431 both
dated April 7, 2011). PBL Finance (Hong Kong) Limited obtained Money Lending Licenses
# 307/2011 issued by Honorable Court of Hong Kong on 28th July 2011. It has commenced
its operation from August 2011 with one branch located at 608, 6/F, Admiralty Centre,
Tower-2, 18 Harcourt Road, Hong Kong.
Not applicable
Not applicable
Quantitative
disclosure
As per the guidelines of Bangladesh Bank, Tier-1 Capital of PBL consists of (i) Fully
Paid-up Capital, (ii) Non-repayable Share Premium Account, (iii) Statutory Reserve,
(iv)General reserve (v) Retained Earnings and (vi) Minority Interest in Subsidiaries.
Tier-2 Capital consists of (i) General Provision against unclassified Loans/Investments,
Off-balance sheet exposures & Off-shore banking Units), 50% of Asset revaluation reserve,
50% of Revaluation gain/loss on investment (HFT), 10% of Revaluation reserve for equity
instruments, PBL unsecured nonconvertible subordinated bond as approved by
Bangladesh Bank and Exchange equalization fund etc.
a) Summary information on the
terms and conditions of the main
features of all capital
instruments, especially in the
case of capital instruments
eligible for inclusion in Tier 1 or
in Tier 2.
Quantitative
disclosure
b) The amount of Tier-1 capital with separate disclosure of:
Solo Consolidated
Taka in Million
I. Fully Paid up capital 10,293.49 10,293.49
II. Non repayable share premium account 2,241.23 2,241.23
III. Statutory reserve 7,528.63 7,528.63
IV. General reserve - 28.00
V. Retained earnings 1,341.08 1,616.37
VI. Minority interest in subsidiaries 0.00 0.00
VII. Non-cumulative irredeemable preference shares - -
VIII. Dividend equalization account - -
Sub-Total (A) 21,404.43 21,707.72
c) The total amount of Tier 2 and Tier 3 capital (B) 5,091.00 5,104.30
d) Other deductions from capital - -
e) Total eligible capital (A+B) 26,495.43 26,812.02
Annual Report 2013
124
3. Capital Adequacy:
The Bank has adopted Standardized Approach (SA) for computation of capital charge for
credit risk and market risk, and Basic Indicator Approach (BIA) for operational risk.
Assessment of capital adequacy is carried out in conjunction with the capital adequacy
reporting to the Bangladesh Bank.
The Bank has maintained capital adequacy ratio on the basis of Consolidated and Solo
are 12.03% & 12.04% respectively as against the minimum regulatory requirement of 10%.
Tier-I capital adequacy ratio for Consolidated is 9.74% as well as Solo is 9.73% against
the minimum regulatory requirement of 5%. The Banks policy is to manage and maintain its
capital with the objective of maintaining strong capital ratio and high rating. The Bank
maintains capital levels that are sufficient to absorb all material risks. The Bank also
ensures that the capital levels comply with regulatory requirements and satisfy the external
rating agencies and other stakeholders including depositors. The whole objectives of the
capital management process in the Bank are to ensure that the Bank remains adequately
capitalized at all times.
a) A summary discussion of the
banks approach to assessing
the adequacy of its capital to
support current and future
activities.
Quantitative
disclosure
4. Credit Risk:
With a view to strengthening credit discipline and bring classification and provisioning
regulation in line with international standard, a phasewise program for classification and
provisioning was undertaken by the Bank as per Bangladesh Bank circulars issued from
time to time. In this regard, all the loans and advances/investments are grouped into four
categories for the purpose of classification, namely (i) Continuous Loan, (ii) Demand Loan,
(iii) Fixed Term Loan and (iv) Short-term Agricultural and Micro Credit. They are classified as
follow:
Continuous & Demand Loan are classified as:
Sub-standard- if it is past due/overdue for 03(three) months or beyond but less than
06 (six) months;
Doubtful- if it is past due/overdue for 06 (six) months or beyond but less than 09 (nine)
months;
Bad/Loss- if it is past due/overdue for 09 (nine) months or beyond.
In case of any installment(s) or part of installment(s) of a Fixed Term Loan amounting upto
Tk 1 million is not repaid within the due date, the amount of unpaid installment(s) are treated
as past due or overdue installment. Such types of Fixed Term Loans are classified as
under:
Sub-standard- if the amount of past due installment is equal to or more than the
amount of installment(s) due within 06 (six) months, the entire loans are classified as
Sub-standard.
Doubtful- if the amount of past due installment is equal to or more than the amount of
installment(s) due within 09 (nine) months, the entire loans are classified as Doubtful.
Bad/Loss- if the amount of past due installment is equal to or more than the amount
of installment(s) due within 12(twelve) months, the entire loans are classified as
Bad/Loss.
i) Definitions of past due and
impaired (for accounting
purposes);
Quantitative
disclosure
Solo Consolidated

Particulars
Taka in Million
b) Capital requirement for credit risk 19,558.47 19,594.80
c) Capital requirement for market risk 393.22 537.54
d) Capital requirement for operational risk 2,050.31 2,146.80
e) Total and Tier 1 capital ratio:
For the consolidated group; and - 80.96%
For stand alone 92.11% -
Minimum capital requirement 22,002.00 22,279.14
Total Risk Weighted Assets (RWA) 220,020.00 222,791.40
Total and Tier-1 Capital Ratio:
Total CAR 12.04% 12.03%
Tier-1 CAR 9.73% 9.74%
Tier-2 CAR 2.31% 2.29%
Quantitative
disclosure
a) The general qualitative disclosure requirement with respect to credit risk, including:
Annual Report 2013
125
In case of any installment(s) or part of installment(s) of a Fixed Term Loan amounting more
than Tk 1 million is not repaid within the due date, the amount of unpaid installment(s) are
treated as past due or overdue installment. Such types of Fixed Term Loans are classified
as under:
Sub Sub-standard- if the amount of past due installment is equal to or more than the
amount of installment(s) due within 03 (three) months, the entire loans are classified as
Sub-standard.
Doubtful- if the amount of past due installment is equal to or more than the amount of
installment(s) due within 06 (six) months, the entire loans are classified as Doubtful.
Bad/Loss- if the amount of past due installment is equal to or more than the amount
of installment(s) due within 09 (nine) months, the entire loans are classified as
Bad/Loss.

Short-term Agricultural and Micro Credit will be considered irregular if it is not repaid within
the due date as stipulated in the loans agreement are classified as under:
Sub-standard- if the irregular status continues after a period of 12 (twelve) months,
the credits are classified as Sub-standard.
Doubtful- if the irregular status continue after a period of 36 (thirty six) months, the
credits are classified as Doubtful.
Bad/Loss- if the irregular status continue after a period of 60 (sixty) months, the credits
are classified as Bad/Loss.
A Continuous loan, Demand loan or a Term Loan which remained overdue for a period of 02
(two) months or more, are treated as Special Mention Account (SMA).
The Bank is required to maintain the following general and specific provision in respect of
classified and unclassified loans and advances / investments on the basis of Bangladesh
Bank guidelines issued from time to time:
Particulars
General provision on unclassified Small and Medium Enterprise (SME)
financing.
General provision on unclassified loans and advances/investments.
General provision on interest receivable on loans / invest.
General provision on off-balance sheet exposures (Provision has been
made on the total exposure and amount of cash margin or value of eligible
collateral were not deducted while computing off-balance sheet exposure).
General provision on unclassified loans and advances/investments for
housing finance, loans for professionals to set-up business under consumer
financing scheme.
General provision on the unclassified loans to Brokerage House, Merchant
Banks, Stock Dealers, etc.
General provision on unclassified amount for Consumer Financing.
General provision on outstanding amount for Special Mention Account
(SMA).
Specific provision on Sub-Standard loans and advances / investments.
Specific provision on Doubtful loans and advances / investments.
Specific provision on bad / loss loans and advances / invests.
Total gross credit risk exposures broken down by major types of credit exposure of the Bank:
Particulars Taka in Million
Secured Overdraft/Quard Against TDR 33,752.10
Cash Credit/Mudaraba 22,698.31
Loan (General) 33,237.88
House Building Loan 3,806.85
Loan Against Trust Receipts (LTR) 11,147.87
Payment Against Documents (PAD) 265.17
Retail Loan 12,138.26
Lease Finance/Izara 5,888.49
Credit Card 1,042.30
SME Loan 614.84
Hire Purchase 7,950.58
Other Loans & Advances 14,838.23
Bill purchased/discounted-Inland 4,376.38
Bill purchased/discounted-Foreign 1,831.50
Total 153,588.76
ii) Description of approaches
followed for specific and
general allowances and
statistical methods;
b) Total gross credit risk exposures
broken down by major types of
credit exposure.
Quantitative
disclosure
Rate
0.25%
1%
1%
1%
2%
2%
5%
0.25%-5%
20%
50%
100%
Annual Report 2013
126
Geographical distribution of exposures, broken down in significant areas by major types of
credit exposure of the Bank:
Urban
Dhaka Zone 109,175.98
Chittagong Zone 27,743.85
Khulna Zone 6,422.47
Rajshahi Zone 4,604.59
Barishal Zone 142.88
Sylhet Zone 1,743.92
Rangpur Zone 517.28
Sub-Total 150,350.97
Rural
Dhaka Zone 1,712.69
Chittagong Zone 689.96
Khulna Zone 143.81
Rajshahi Zone 462.95
Sylhet Zone 228.38
Sub-Total 3,237.79
Grand Total (Urban + Rural) 153,588.76
Industry or counterparty type distribution of exposures, broken down by major types of credit
exposure of the Bank:
Commercial Lending 11,908.59
Export Financing 3,732.41
House Building Loan 3,806.85
Retail Loan 12,138.26
Small & Medium Enterprises (SME) 19,532.38
Special Program Loan -
Staff Loan 7.51
Other Loans & Advances (SOD) 16,573.22
Loans, Advances & Lease/Investments to Managing Director / CEO
and other senior executives 1,865.94
Industrial Loans/Investments (Details are given below) 84,023.60
Total 153,588.76
Industrial Loans/Investments
Agriculture 1,691.36
Textile Industries 7,477.77
Food and allied industries 5,819.25
Pharmaceutical Industries 2,303.53
Leather , Chemical, Cosmetics, etc. 1,310.17
Tobacco Industries 750.81
Cement and Ceramic Industries 4,702.30
Service Industries 4,910.68
Transport & Communication Industries 7,757.52
Other Industries including bills purchased and discounted 47,300.21
Total 84,023.60
c) Geographical distribution of
exposures, broken down in
significant areas by major types
of credit exposure.
d) Industry or counterparty type
distribution of exposures,
broken down by major types of
credit exposure.
e) Residual contractual maturity
breakdown of the whole
portfolio, broken down by major
types of credit exposure.
Residual contractual maturity break down of the whole portfolios, broken down by major
types of credit exposure of the Bank:
Repayable on Demand -
Up to 1 month 34,355.44
Over 1 month but not more than 3 months 33,818.86
Over 3 months but not more than 1 year 46,707.59
Over 1 year but not more than 5 years 29,030.15
Over 5 years 9,676.72
Total 153,588.76
Annual Report 2013
127
5. Equities: Disclosures for Banking Book Positions
The amount of classified loans and advances/investments of the Bank are given below as
per Bangladesh Bank guidelines.
Particulars
Continuous Loans & Advances 1,324.46
Demand Loans & Advances 2,700.28
Term Loans & Advances 3,784.51
Short Term Agro Credit and Micro Credit 5.25
Total 7,814.50
Specific and general provisions were made on the amount of classified and unclassified
loans and advances/investments, off-balance sheet exposures and off-shore banking units,
interest on receivable, diminution in value of investment and other assets-suspense of the
Bank according to the Bangladesh Bank guidelines.
Provision on classified loans and advances/investments 3,342.05
Provision on unclassified loans and advances/investments 1,659.17
Provision on Off-balance sheet exposures 1,090.00
Provision for Off-shore Banking Units 422.50
Provision for interest receivable on loans & advances/investments 9.52
Provision for other assets 88.34
Provision for diminution in value of invests. 68.32
Total 6,679.90
f) By major industry or
counterparty type:
i) Amount of impaired loans and
if available, past due loans,
provided separately;
Opening balance 6,168.50
Addition/adjustment during the year 1,646.00
Closing balance 7,814.50
Movement of Non Performing
Assets (NPAs).
Opening balance 1,949.08
Provisions made during the period 2,980.00
Transferred from unclassified loan & advances 947.50
Write-off (2,540.59)
Write-back of excess provisions 6.06
Closing Balance 3,342.05
Movement of Non Performing
Assets (NPAs).
Differentiation between holdings on
which capital gains are expected and
those taken under other objectives
including for relationship and strategic
reasons; and
g) Gross Non Performing Assets (NPAs).
Non Performing Assets (NPAs) to Outstanding loans and advances.
ii) Specific and general
provisions; and
During the year the specific and general provisions were made on the amount of classified
and unclassified loans and advances/investments, off-balance sheet exposure, off-shore
banking units, interest on receivable, diminution in value of investment and other
assets-suspense of the Bank as per Bangladesh Bank guidelines.
Provision on classified loans and advances/investments 2,980.00
Provision on unclassified loans and advances/investments 642.00
Provision on Off-balance sheet exposures 10.00
Provision for Off-shore Banking Units 362.00
Provision for interest receivable on loans & advances/investments -
Provision for other assets 10.13
Provision for diminution in value of investments 24.53
Total 4,028.66
iii) Charges for specific
allowances and charge-offs
during the period.
a) The general qualitative disclosure requirement with respect to equity risk, including:
Investment in equity securities are broadly categorized into two parts:
i) Quoted Securities (Common or Preference Shares & Mutual Fund) that are
traded in the secondary market (Trading Book Assets).
ii) Unquoted securities are categorized as banking book equity exposures which
are further sub-divided into two groups: unquoted securities which are
invested without any expectation that these will be quoted in near future i.e.
held for maturity (HFM), and securities those are acquired under private
placement or IPO and are going to be traded in the secondary market after
completing required formalities. Unquoted securities are valued at cost.
Quantitative
disclosure
Annual Report 2013
128
5. Equities: Disclosures for Banking Book Positions
6. Interest Rate Risk in the Banking Book (IRRBB)
a) The general qualitative disclosure
requirement including the nature of
IRRBB and key assumptions,
including assumptions regarding loan
prepayments and behavior of
non-maturity deposits, and frequency
of IRRBB measurement.
Interest rate risk is the risk where changes in market interest rates might
adversely affect a bank's financial condition. Changes in interest rates affect both
the current earnings (earnings perspective) as well as the net worth of the bank
(economic value perspective). Re-pricing risk is often the most apparent source of
interest rate risk for a bank and is often gauged by comparing the volume of a
banks assets that mature or re-price within a given time period with the volume of
liabilities that do so.
The short term impact of changes in interest rates is on the banks Net Interest
Income (NII). In a longer term, changes in interest rates impact the cash flows on
the assets, liabilities and off-balance sheet items, giving rise to a risk to the net
worth of the bank arising out of all re-pricing mismatches and other interest rate
sensitive position.
Maturity grouping of rate sensitive assets and liabilities of the bank shows
significant positive gap in the first quarter and moderate gap during the rest three
quarters. If market rates shifts upward by one percent the bank will enjoy a
positive earning to the tune of Tk 61.87 million and vice versa. The impact is very
insignificant compared to total revenue of the bank and also within the acceptable
limit as stipulated by Bangladesh Bank.
Quantitative
disclosure
b) Value disclosed in the balance sheet of investments, as well as
the fair value of those investments; for quoted securities, a
comparison to publicly quoted share values where the share
price is materially different from fair value.
c) The cumulative realized gains (losses) arising from sales and
liquidations in the reporting period.
d) Total unrealized gains (losses)
Total latent revaluation gains (losses)
Any amounts of the above included in Tier-2 capital.
Solo Consolidated
Taka in Million
At cost At market At cost At market
value value

324.64 256.34 1,472.25 977.93
2.64 257.54
(68.30) (494.32)
- -
- -

25.63 97.79
25.63 97.79
Quantitative
disclosure
Discussion of important policies covering
the valuation and accounting of equity
holdings in the banking book. This
includes the accounting techniques and
valuation methodologies used,
including key assumptions and
practices affecting valuation as well as
significant changes in these practices.
The primary aim is to investment in these equity securities for the purpose of
capital gain by selling them in future or held for dividend income. Dividends
received from these equity securities are accounted for as and when received.
Both Quoted and Un-Quoted equity securities are valued at cost and necessary
provisions are maintained if the prices fall below the cost price.
As per Bangladesh Bank guidelines, the HFT equity securities are revalued once
in each week using marking to market concept and HTM equity securities are
amortized once a year according to Bangladesh Bank guideline.
The HTM equity securities are also revalued if any, are reclassified to HFT
category with the approval of Board of Directors.
e) Capital requirements broken down by appropriate equity groupings, consistent with the banks methodology, as well as the
aggregate amounts and the type of equity investments subject to any supervisory provisions regarding regulatory capital
requirements (10% on market value).
Specific Market Risk
General Market Risk
Annual Report 2013
129
Interest Rate Risk Analysis (for 1% change in the market rate of interest)
b) The increase (decline) in
earnings or economic value
(or relevant measure used by
management) for upward
and downward rate shocks
according to managements
method for measuring
IRRBB, broken down by
currency (as relevant).
Particulars 1-90 Over 3 Over 6 Over 9
days months to months to months to
upto 6 months upto 9 months upto 1 year
Taka in Million
Rate Sensitive Assets 70,062 28,763 18,305 11,063
Rate Sensitive Liabilities 73,200 20,490 9,582 7,034
GAP (10,138) 8,273 8,724 4,029
Cumulative GAP (10,138) (1,865) 6,859 10,888
Adjusted Interest Rate Changes (IRC) 1.00% 1.00% 1.00% 1.00%
Quarterly earnings impact (Cum. GAP * IRC) (24,998) (4,598) 16,913 26,848
Accumulated earning impact to date (24,998) (29,595) (12,682) 14,166
Earning impact/Avg. quarterly net profit (3.70%) (4.39%) (1.88%) 2.10%
Quantitative
disclosure
7. Market Risk:
a) i) Views of Board of Directors (BOD)
on trading/ investment activities.

ii) Methods used to measure Market
risk.
Market risk is the possibility of losses of assets in balance sheet and
off-balance sheet positions arising out of volatility in market variables i.e.,
interest rate, exchange rate and price. Allocation of capital is required in
respect of the exposure to risks deriving from changes in interest rates
and equity prices in the banks trading book, in respect of exposure to
risks deriving from changes in foreign exchange rates and commodity
price in the overall banking activity. The total capital requirement for
banks against their market risk shall be the sum of capital charges
against:
i. Interest rate risk
ii. Equity position risk
iii. Foreign exchange (including gold) position risk throughout the
banks balance sheet and
iv. Commodity risk.
Measurement Methodology:
As banks in Bangladesh are now in a stage of developing risk
management models, Bangladesh Bank suggested the banks for using
Standardized Approach for credit risk capital requirement for banking
book and Standardized (rule based) Approach for market risk capital
charge in their trading book.
Maturity Method has been prescribed by Bangladesh Bank in determining
capital against market risk. In the maturity method, long or short positions
in debt securities and other sources of interest rate exposures, including
derivative instruments, are slotted into a maturity ladder comprising 13
time-bands (or 15 time-bands in case of low coupon instruments).
Fixed-rate instruments are allocated according to the residual term to
maturity and floating-rate instruments according to the residual term to
the next repricing date.
In Standardized (rule based) Approach the capital requirement for various
market risks (interest rate risk, price, and foreign exchange risk) are
determined separately.
The total capital requirement in respect of market risk is the sum of capital
requirement calculated for each of these market risk sub-categories. e.g.:
a) Capital Charge for Interest Rate Risk = Capital Charge for Specific
Risk + Capital Charge for General Market Risk;
b) Capital Charge for Equity Position Risk = Capital Charge for
Specific Risk + Capital Charge for General Market Risk;
c) Capital Charge for Foreign Exchange Risk = Capital Charge for
General Market Risk;
d) Capital Charge for Commodity Position Risk = Capital charge for
general market risk.
Quantitative
disclosure
Annual Report 2013
130
iii) Market Risk Management system.

iv) Policies and processes for
mitigating market risk.
Treasury Division manages the market risk and ALCO monitors the
activities of treasury Division in managing such risk.
To mitigate the several market risks the bank formed Asset Liability
Management Committee (ALCO) who monitors the Treasury Divisions
activities to minimize the market risk. ALCO is primarily responsible for
establishing the market risk management and asset liability management
of the Bank, procedures thereof, implementing core risk management
framework issued by the regulator, best risk management practices
followed by globally and ensuring that internal parameters, procedures,
practices/polices and risk management prudential limits are adhere to.
The Treasury Division are taking following measures to minimize the
several market risks:
i) Foreign exchange risk management: it is the risk that the bank may
suffer losses as a result of adverse exchange rate movement during a
period in which it has an open position in an individual foreign currency.
This risk measured and monitored by the Treasury Division. To evaluate
the extent of foreign exchange risk, a liquidity Gap report prepare for each
currency.
ii) Equity Risk: Equity risk is defined as losses due to changes in market
price of the equity held. To measure and identify the risk, mark to market
valuation to the share investment portfolios are done. Mark to market
valuation is done against a predetermined limit. At the time of investment,
following factors are taken into consideration:
a) Security of Investment
b) Fundamentals of securities
c) Liquidity of securities
d) Reliability of securities
e) Capital appreciation
f) Risk factors and
g) Implication of taxes etc.
a) i) Views of BOD on system to reduce
Operational Risk
Operational risk is defined as the risk of loss resulting from inadequate or
failed internal processes, people and systems or from external events.
This definition includes legal risk but excludes strategic and reputation
risk. It is inherent in every business organization and covers a wide
spectrum of issues. The Board of Director (BOD) of the Bank and its
Management firmly believe that this risk through a control based
environment in which processes see documented, authorization as
independent and transactions are reconciled and monitored. This is
supported by an independent program of periodic reviews undertaken by
internal audit, and by monitoring external operational risk events, which
ensure that the group stays in line which industry best practice and takes
account or lessons learned from publicized operational failures within the
financial services industry.
The BOD has also modified its operational risk management process by
issuing a high level standard like SOP, supplemented by more detailed
formal guidance. This explains how the bank manages operational risk by
identifying, assessing, monitoring, controlling and mitigating the risk,
rectifying operational risk events, and implementing any additional
procedures required for compliance with local regulatory requirements.
Interest rate risk 219.60 219.61
Equity position risk 50.10 276.20
Foreign exchange risk and 66.15 66.10
Commodity risk - -
Total Capital Requirement 335.85 561.91
b) The capital requirements for: Solo Consolidated
Taka in Million
Quantitative
disclosure
Quantitative
disclosure
8. Operational Risk:
Annual Report 2013
131
ii) Performance gap of executives and
staffs.
The Bank maintains and tests contingency facilities to support operations
in the event of disasters. Additional reviews and tests are conducted in
the event that any branch of the bank is affected by a business disruption
event, to incorporate lessons learned in the operational recovery from
those circumstances. Plans have been prepared for the continued
operation of the banks business, with reduced staffing levels.
Human Resources
People: The Prime Assets!
Diversely talented, motivated and engaged employees have always been
the key assets for Prime Bank Limited. To ensure long term sustainability,
PBL is relentlessly pursuing its vision to transform the human resources
into human capital.
The Bank has been able to maintain a highly favorable employer image
by creating a performance-driven rewarding work culture; where
employees receive plenty of opportunities to realize their diverse
potentials fully as well as benefit the organization by demonstrating value
creating behaviors.
The manpower planning of PBL is linked with the overall strategic plan of
the Bank. This manpower planning process not only defines the number
of human resources to be hired within a given time-frame, but also the
types of human resources and the required competencies and skills that
will be needed to achieve the defined business goals.
The ongoing recruitment of PBL is primarily being governed by 3-year
manpower planning outlined in 2013. To fill up the vacancies and ensure
that the additional human resources are assessed, selected and placed
on-time as per required competencies, the Recruitment & Selection team
works dedicatedly as per organizations best fit philosophy.
HR Division follows PBLs recruitment policy that clearly states the criteria
and procedures to recruit fresh and lateral entrants. For the fresh hires,
HR Division organizes written test for the shortlisted candidates who must
obtain minimum marks to be assessed further by the selection panel. On
the other hand, lateral entrants are also assessed rigorously by the
selection committee subject to matching the required competency and
experience level.
At the end of 2013, total number of employees was reported as 2,710. In
2013, the Recruitment & Selection team has facilitated to select a total of
297 new hires, both fresh and lateral entry.
PBL believes that diverse, heterogeneous teams generate greater
creativity, innovation and business development. PBL is cognizant that an
inclusive culture maintains and drives workforce diversity by fostering the
exchange of ideas and collaboration among individuals and across
groups. To speak simply, the constant success of PBL depends in part on
maintaining a plurality of perspectives.
No. of employees by age group and gender:
Age group No. of Percentage Gender No. of
Emp. (%) Emp.
Below 30 yrs 571 21.07 Male 385
Female 186
30 - 40 yrs 1606 59.26 Male 1,292
Female 314
40 - 50 yrs 415 15.32 Male 368
Female 47
50 years and above 118 4.35 Male 110
Female 8
Total 2,710 100 2,710
Annual Report 2013
132
PBL practices equal employment opportunity for competent candidates
regardless of their gender, age, locality or ethnicity. While recruiting fresh
graduates, PBL source the pool from different recognized public and
private universities; with a view to creating a diverse work force.
Besides, the ration of male and female employees has been increasing
over the time. Currently, approximately 20.48% of employees are female.
Gender diversity among employees
Gender No. of Members Percentage
Male 2154 79.48%
Female 556 20.52%
Total 2,710 100%
Increasing ratio of Female over the years
Year Female Ratio
2011 18.59%
2012 19.77%
2013 20.48%
In 2013, new recruitment of female employees was approximately 26%.
Besides, PBL is gradually encouraging the women to take up leadership
opportunity which will ensure a more balanced work force.
PBL continuously thrives to transform Human Resources to Human
Capital through appropriate training in every aspects of work area which
in turn will help the Bank to achieve a sustainable growth. HR Division
regularly undertakes effectively designed training programs targeting the
right group of employees through proper training need assessment.
In 2013, Prime Banks internal HR Training and Development Centre
arranged 61 professional training courses and 32 workshop/seminars for
3,143 enthusiastic participants. Besides, a total of 248 employees were
sent to attend various training programs/conferences in home and
abroad.
Compensation & Benefits
PBL has an agile compensation and benefits system that helps to ensure
pay equity, is linked with performance that is understood by employees,
and keeps in touch with employee desires and what's coveted in the
market, while maintaining a balance with the business affordability. The
compensation and benefits are regularly reviewed through market and
peer group study. Currently, the level and structure of Remuneration is
very attractive to motivate and retain performers.
All employees are paid competitive remuneration package. The structure
and level of remuneration are reviewed time to time based on Bank's
performance and affordability. Employees are paid bonus based on
yearly business performance, as well as on individual performance.
The various cash and non-cash benefits include: company car for Top
Level Executives, Car maintenance allowance, Leave fair assistance
allowance, Medical treatment allowance, Maternity benefits, Car loan
facility, House loan facility, Staff loan at discounted interest rate, House
furnishing allowance, Travel allowance, Festival bonus, Annual leave etc.
PBL also provides long-term as well as retirement benefits to employees,
like: Leave encashment, Provident fund, Gratuity benefit, Retirement
benefit, Partial and full disability benefit, Death benefit to family members
etc.
The Bank has a Welfare Fund taking contribution from both employees
and Bank. In 2013, a total of Tk. 10.65 million sanctioned from this Fund
and disbursed to support 285 employees for a variety of purposes like:
Hospitalization, Surgery, Maternity, Death benefits, Retirement benefits
etc.
PBL always plans for employees to advance their career goals. This
includes advancement into more responsible positions. The company
supports career opportunities internally so that talented employees are
deployed in upgraded positions and thereby enables them to deliver their
greatest value to the organization. In 2013, based on business need a
total of 617 employees were promoted to higher positions to reward the
good performers with new and more responsibilities. In addition, 511
employees have been mobilized in different branches and divisions
The opportunities for career growth, attractive compensation & benefits
packages and a congenial work culture helped the Bank to maintain a
healthy turnover rate of 4.05% in the year 2013.
Performance Management Program
PBL has a comprehensive performance management program that
evaluates employees' yearly performance against business targets at the
year-end. In addition, their functional and leadership competencies are
also rated by the line management. This appraisal process also identifies
the competency gap and training needs of employees. All permanent
employees of PBL undergo annual performance appraisal process.
HR Division has automated the entire performance appraisal process.
The purpose is to ensure transparency in performance evaluation
process by encouraging dialogues between appraisers and appraises.
PBL has a well-designed Reward & Recognition program that gives
special attention to employees actions, efforts, behavior and
performance. It meets the intrinsic psychological need for appreciation of
employees efforts and supports business strategy by reinforcing certain
behaviors (e.g., extraordinary accomplishments) that contribute to Banks
success.
Followings are the different cash and non-cash awards given to
employees for their exemplary works:
CEOs Banker with Exceptional Service Traits Award (BEST)
Commendable Branch Performance Award (CBPA)
Trainees with Outstanding Performance Award (TOP)
Decent Workplace
PBL believes that the business can grow favorably if the organization
enables employees through creating and maintaining a decent
workplace. In PBL, there is a decent work environment where employees
can work with dignity, have the freedom to express opinions, can
participate in the decision making process that affect their lives, and
receive equal treatment and opportunity. PBL ensures security in the
workplace and social protection for employees families, better prospects
for their personal development and social integration.
PBL is always committed to establish the highest level of business
compliance and ethical standard. PBL has Employee Code of Ethics and
Business Conduct which works as a framework of ethical and business
behavior for all employees. This provides guidelines on various issues,
like: safeguarding customers and Banks confidential information,
preventing money laundering, complying with laws and regulations,
avoiding offensive behavior, demonstrating respect in workplace,
avoiding activities that may raise conflict of interest etc. All employees
are properly oriented to comply with Code of Ethics and conform to the
relevant laws and regulations. Prime Banks high ethical standards are
supported with rigid enforcement so that customers expectations and
interests are protected in a compliant manner.
Automated HR Processes
During the year HR Division has upgraded and deployed the HR
Connect software in collaboration with IT Division to automate different
HR processes. Employees located across the country are presently using
this. It is all about people, processes, and results using information and
communications technologies to improve the transparency, efficiency,
and effectiveness.
It aims to ensure excellence in all HR policies and practices in line with
the mission and vision of the Bank. In addition to all the achievements
mentioned earlier, HR Division implemented the following things in 2013
to enhance the overall employee experience:
Launched Prime Life Style as part of employee engagement. This
includes attractive discounts and facilities in hotels, restaurants,
amusement parks, retail shops, hospitals & diagnostic centers etc.;
Completed the selection process of 200 Management Trainees in
2013;
Launched the HR software HR Connect operational for different
automated HR processes;
Prepared the automated performance appraisal;
Established a separate Fire & Safety unit and recruited human
resources with relevant expertise;
Developed CV bank using the web portal to expedite the
recruitment process by saving time and efforts;
Recruited a good number of new employees through Campus
hunting both from IBA and BIBM.
To grow up with the challenge of tapping opportunities to meet both
organizational and employee needs, PBL is moving forward with the
transformational initiatives. The transformational phase started with
introducing HR as Strategic Business Partner which already
generated value in people & process management. So, the Year 2013
was marked as one of the successful years in building an employee
centric work culture with automated HR services & delivery and with
focused skill development for employees.
Followings are some of the priorities of HR Division for the year 2014:
Improve the overall Performance Management Process;
Review, Update, Document & Rollout Job Description, Key Result
Area (KRA), Key Performance Indicator (KPI) for all the employees;
Review HR Policies & Procedures and communicate to employees;
Talent Management Program;
Skill Gap Assessment for the employees & improvement road map
design;
Charter based Long term training Plan & program;
Work on Employer Branding initiatives & Employee Relations and
so on.
Human Resources Accounting in PBL:
HR Accounting is the process of valuing human resources as assets and
reporting the investments made in human resources of an organization
that are presently not accounted in the conventional accounting
practices. But there is no specific way to value the human resources and
sensitive and any unilateral upward change by a bank will exert
pressure on interest rate structure of the banking sector. It is feared
that wage earners remittances may decline due to fall in job
opportunity in international market. Unless offset by export
performances, there may be pressure in the Foreign Exchange
market.
The risk of litigation
In the ordinary course of business, legal actions, claims by and against
the bank may arise. The outcome of such litigation may affect the
financial performance of the bank.
Success of strategies
implementation is very important for its financial performance. Major
deviation due to external and internal factors will affect the
Prime Bank limited (PBL) has formed a separate Risk Management
Division under Chief Risk Officer to ensure following things:
Designing of organizational structure by clearly defining roles and
responsibilities of individuals involved in risk taking as well as
managing it;
Formulation of overall risk assessment and management policies,
methodologies, guidelines and procedures for risk identification, risk
measurement, risk monitoring, defining an acceptable level of risk,
mitigation of all the core risks in line with their respective guidelines
provided by Bangladesh Bank;
Reviewing and updating all risks on systematic basis as necessary at
least annually, preferably twice a year, ensuring that adequate controls
exist and that the related returns reflect these risks and the capital
allocated to support them. The main risk areas will be (i) Balance sheet
Risk Management, (ii) Credit Risk, (iii) Foreign Exchange Risk, (iv)
Internal Control and Compliance Risk, (v) Money Laundering Risk and
(vi) IT Risk. The following risks have also to be reviewed:
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
Setting the portfolio objectives and tolerance limits/parameters for
each of the risks;
Formulation of strategies and different models in consistency with
risk management policy based on IT Policy and in house IT support
which can measure, monitor and maintain acceptable risk levels of
the bank;
Development of information systems/MIS inflow and data
management capabilities to support the risk management functions
of the bank.
Ensure compliance with the core risks management guidelines at
the department level, and at the desk level;
The unit will work under banks organizational structure and
suggest to the CEO to take appropriate measures to overcome any
existing and potential financial crisis;
Analysis of self resilience capability of the bank;
Initiation to measure different market conditions, vulnerability in
investing in different sectors;
The unit will also work for substantiality of capital to absorb the
associated risk in banking operation.
Activities undertaken by Risk Management Unit since inception
and recent approaches
Risk Management Division of PBL is currently arranging monthly
meeting on various issues to determine strategies in consistency with
risk management policy, which can measure, monitor, and maintain
acceptable risk level of the bank. Minutes of each meeting is submitted
to Bangladesh Bank on monthly basis;
Besides, Risk Management Paper has also been prepared on the
basis of 03 months monthly minutes addressing different areas of risk
and their mitigating tools & techniques guided by the members of Risk
Management Division;
In order to perform the risk management function smoothly, RMD had
invited all the Operational Divisions vide letter to the Head of
respective Divisions to form an internal committee along with defined
duties of concerned officials. It is to be noted here that due to
continuous and successful persuasion, all the Operational Divisions
have formulated and established internal risk management
committees.
Stress Testing in PBL:
Risk Management Division (RMD) of PBL has prepared a stress testing
model in line with the Bangladesh Banks guideline which initially focused
on Simple Sensitivity and Scenario Analysis on the following five risk
factors:
Interest rate;
Forced sale value of collateral;
Non-performing loans (NPLs);
Share prices; and
Foreign exchange rate.
The stress testing based on the financial performance of the bank as on
December 31, 2013 has also been completed which shows that the bank
has adequate capital to absorb minor, moderate and major level of
shocks. However, in case of cumulative shocks, some additional capital
may be required.
The Banks operating in Bangladesh shall compute the capital
requirements for operational risk under the Basic Indicator Approach
(BIA). Under BIA, the capital charge for operational risk is a fixed
percentage, denoted by (alpha) of average positive annual gross
income of the bank over the past three years. Figures for any year in
which annual gross income is negative or zero, should be excluded from
both the numerator and denominator when calculating the average. The
capital charge may be expressed as follows:
K = [(GI 1 + GI2 + GI3) ]/n
Where-
K = the capital charge under the Basic Indicator Approach
GI = only positive annual gross income over the previous three years (i.e.,
negative or zero gross income if any shall be excluded)
= 15 percent
n = number of the previous three years for which gross income is positive.
Gross income: Gross Income (GI) is defined as Net Interest Income plus
Net non-Interest Income. It is intended that this measure should:
i). be gross of any provisions;
ii). be gross of operating expenses, including fees paid to outsourcing
service providers;
iii). exclude realized profits/losses from the sale of securities held to
maturity in the banking book;
iv). exclude extraordinary or irregular items;
v.) exclude income derived from insurance.
measure the direct impact of the cost spent for employees. The period of
existence of a set of human resources in an organization cannot be
predicted; hence treating and valuing them as assets is difficult. So, due
to various limitations, like most of the institutes, PBL has not yet practiced
HR Accounting in the real sense. However, to better understand the
impact of recruitment, training, compensation and other cost related to
employees, the Bank tracks cost on the following parameters:
Tk. in Million
Salary cost per employee 1.08 1.06
Operating cost per employee 1.99 1.94
Operating income per employee 4.75 5.30
Salary cost as percentage of operating cost 54.55 54.33
Salary cost as percentage of operating income 22.90 19.90
PBL will gradually improve the methodology so as to measure the
monetized value of human resources as well as the return on HR
investment more accurately.
Risk factors/Potential external events:
It is needless to say that there are certain risk factors which are external
in nature and can affect the business of the Bank. The factors discussed
below can significantly affect the business:
General business and political condition
PBLs performance greatly depends on the general economic
conditions of the country. The effect of recession is still unfolding which
may result to slow down in business environment. Political stability is
must for growth in business activities.
Changes in credit quality of borrowers
Risk of deterioration of credit quality of borrowers is inherent in
banking business. This could result due to global economic crisis and
supply side distortion. The changes in the import prices affected the
commodity sectors and ship breaking industry. Deterioration in credit
quality requires provisioning.
Changes in policies and practices of regulatory bodies to revise
practices, pricing and responsibilities of the financial institutions
PBL is subject to regulations and compliance of regulation is must.
Changes in policies with regard to interest rates, pricing have
significant effect on the performance of the Bank. Bangladesh Bank is
expected to continue its persuasion to reduce the spread and charges
further which is likely to affect the performance. Changes in
provisioning requirement will also affect the performance of the bank.
Implementation of Basel-II
Basel-II is fully effective from 2010 and PBL needs to be complied with
respect to credit risk management, its supervision and establishment
of effective internal control. The grading of the borrowers and its link
with capital requirement may slow down the credit expansion. The
establishment of effective control requires more investment in
technology and operating expenses are likely to increase.
Volatility in equity market
The Bangladesh Securities and Exchange Commission and the stock
exchanges improved their supervisory role but the equity market is still
volatile. The recession fear also added to the volatility. If volatility
continues it is likely to affect the performance of the bank.
Changes in market conditions
Changes in market conditions particularly interest rates on deposits
and volatility in Foreign Exchange market is likely to affect the
performance of the bank. Depositors are becoming increasingly price
Annual Report 2013
133
success.
Decent Workplace
and effectiveness.
2013;
design;
so on.
market.
managing it;
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
each of the risks;
the bank;
of the bank.
committees.
factors:
Interest rate;
Share prices; and
may be required.
K = [(GI 1 + GI2 + GI3) ]/n
Where-
= 15 percent
service providers;
Tk. in Million
Annual Report 2013
134
success.
Decent Workplace
and effectiveness.
2013;
design;
so on.
market.
managing it;
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
each of the risks;
the bank;
of the bank.
committees.
factors:
Interest rate;
Share prices; and
may be required.
K = [(GI 1 + GI2 + GI3) ]/n
Where-
= 15 percent
service providers;
Tk. in Million
Annual Report 2013
135
success.
Decent Workplace
and effectiveness.
2013;
design;
so on.
market.
managing it;
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
each of the risks;
the bank;
of the bank.
committees.
factors:
Interest rate;
Share prices; and
may be required.
K = [(GI 1 + GI2 + GI3) ]/n
Where-
= 15 percent
service providers;
Tk. in Million
iii) Potential external events
Annual Report 2013
136
success.
Decent Workplace
and effectiveness.
2013;
design;
so on.
market.
managing it;
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
each of the risks;
the bank;
of the bank.
committees.
factors:
Interest rate;
Share prices; and
may be required.
K = [(GI 1 + GI2 + GI3) ]/n
Where-
= 15 percent
service providers;
Tk. in Million
iv) Policies and processes for
mitigating operational risk.
Annual Report 2013
137
success.
Decent Workplace
and effectiveness.
2013;
design;
so on.
market.
managing it;
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
each of the risks;
the bank;
of the bank.
committees.
factors:
Interest rate;
Share prices; and
may be required.
K = [(GI 1 + GI2 + GI3) ]/n
Where-
= 15 percent
service providers;
Tk. in Million
v) Approach for calculating capital
charge for operational risk
Quantitative
disclosure
Particulars
Solo Basis Consolidated
Taka in Million
b)
The capital requirement for operational risk
2,050.30 2,146.80
Our commitment is to increase long term
value for shareholders and we will continue
to do so through successful execution of
Strategic Priorities and Action Plan.
SHAREHOLDERS' INFORMATION
OF THE GROUP AND PBL
Financial Highlights - Group & PBL 140
Financial Highlights - PBL 141
Key Financial Data & Key Ratios - PBL 142
Graphical Presentation - PBL 144
Segment Analysis 146
Distribution of Shareholdings in 2013 147
Shares held by the Directors in 2013 147
Economic Impact Report 148
- Maintaining Capital Adequacy 148
- Statement of Value Added and its Distribution 149
- Economic Value Added Statement 150
- Maintaining liquidity 151
- Payment of Dividends 151
Market Value Added Statement 151
Disclosure for Non Performing Assets 152
Market Price Information 153
Financial Calendar 2013 154
Governance on Investors Relation 154
Glimpses of 18
th
AGM 155
IN THIS SECTION
Our commitment is to increase long term
value for shareholders and we will continue
to do so through successful execution of
Strategic Priorities and Action Plan.
Annual Report 2013
140
Shareholers' Information
Financial Highlights-Group & PBL
Performance during the year
Prime Bank Limited Group
2013 2012 Change 2013 2012 Change
Taka in
million
Taka in
million
%
Taka in
million
Taka in
million
%
Interest income 22,011 22,822 -3.55 22,616 23,808 -5.01
Proft before provision and tax 7,474 8,551 -12.59 7,732 8,840 -12.53
Provision for loans and assets 4,029 3,216 25.28 4,030 3,324 21.24
Proft after provision before tax 3,445 5,335 -35.42 3,702 5,516 -32.88
Tax including deferred tax 1,616 2,636 -38.70 1,664 2,815 -40.91
Proft after tax 1,829 2,699 -32.22 2,038 2,700 -24.52
At the year end
Total shareholders equity 23,030 20,787 10.79 23,359 20,962 11.43
Deposits 201,907 182,053 10.91 201,819 181,962 10.91
Loans and advances 153,589 160,890 -4.54 159,010 165,042 -3.66
Investments 56,940 46,862 21.50 58,751 48,003 22.39
Property, plant and equipment 6,407 4,363 46.83 6,457 4,420 46.09
Total assets 243,869 236,833 2.97 245,523 238,169 3.09
Statutory Ratios (%)
Cash Reserve Ratio 6.97 6.06 15.08 6.97 6.06 15.08
Statutory Liquidity Ratio 38.39 34.02 12.83 38.39 34.02 12.83
Capital Adequacy Ratio 12.04 12.73 -5.42 12.03 12.64 -4.83
Share Information
Earnings per share (Taka) 1.78 2.62 -32.06 1.98 2.62 -24.43
Dividend (%) 12.50 20.00 -37.50 12.50 20.00 -37.50
Net assets value per share (Taka) 22.37 22.21 0.72 22.69 22.40 1.30
Ratios (%)
Non performing loans 5.09 3.83 32.90 4.91 3.74 31.39
Return on average shareholders fund 8.35 13.53 -38.28 9.20 13.43 -31.51
Return on average assets 0.76 1.24 -38.61 0.84 1.23 -31.48
Loans & Advance Investment Fixed Assets
Liquid Assets Other Assets
4.19%
6.55%
Paid up Capital
Constituents of Liabilities & Capital of Group
Resurves & Surplus Deposit
Borrowings Other Liabilities
1.74%
5.32%
82.20%
4.22%
6.18%
Paid up Capital
Constituents of Liabilities & Capital of PBL
Resurve & Surplus Deposite
Borrowing Other Liabilities
1.58%
5.23%
82.79%
2.63%
Loans & Advance
Constituents of Assets of PBL
Investment Fixed Assets
Liquid Assets Other Assets
23.35%
7.59%
3.45%
62.98%
7.64% 2.63%
Constituents of Assets of Group
23.93%
1.04%
64.76%
Annual Report 2013
141
Financial Highlights-PBL
Taka in million
Gross revenue 30,561 30,902
Operating income 12,883 13,492
Proft after tax 1,829 2,699
Total capital 26,495 25,752
Total deposits 201,907 182,053
Total loans & advances 153,589 160,890
Total assets 243,869 236,833
No. of deposits accounts 1,083,793 1,034,120
No. of loans & advances accounts 49,594 55,709
Return on assets (%) 0.76 1.24
Return on equity (%) 8.35 13.53
Statutory Liquidity ratio (%) 38.39 32.02
Capital adequacy ratio (%) 12.04 12.73
No. of employees 2,710 2,544
No. of branches 117 113
No. of SME branches/centers 17 17
Rating (CRISL)
Long -term AA AA+
Short-term ST-2 ST-1
Rating (CRAB)
Long -term AA2 -
Short-term ST-2 -
Total Capital Fund
(Taka in million)
2012 2013
Gross Revenue
(Taka in million)
Proft Before Tax
(Taka in million)
2012 2013
2012 2013
0
5000
10000
15000
20000
25000
30000
35000
0
1000
2000
3000
4000
5000
6000
5
,
3
3
5
3
0
,
9
0
2
3
0
,
5
6
1
3
,
4
4
5
0
5000
10000
15000
20000
25000
30000

2
5
,
7
5
2

2
6
,
4
9
5

Annual Report 2013
142
Key Financial Data & Key Ratios-PBL
Taka in million
Particulars 2009 2010 2011 2012 2013
Interest income 10,856 12,147 16,709 22,822 22,011
Interest expenses 8,426 7,824 12,648 17,410 17,678
Net interest income 2,430 4,323 4,061 5,411 4,332
Investment income 3,372 2,632 4,157 4,633 5,583
Commission, exchange and brokerage 1,749 2,262 2,689 2,429 2,155
Other Operating Income 644 579 652 1,018 813
Operating Income 8,196 9,795 11,559 13,492 12,883
Operating expenses 2,907 3,618 4,132 4,941 5,409
Earning before interest, depreciation and tax 13,175 13,643 19,666 23,024 21,422
Proft before provision and tax 5,289 6,177 7,427 8,551 7,474
Provision for loans and assets 700 540 661 3,216 4,029
Proft after provision before tax 4,589 5,637 6,766 5,335 3,445
Tax including deferred tax 1,805 2,535 3,132 2,636 1,616
Proft after tax 2,784 3,102 3,634 2,699 1,829
Balance Sheet
Authorized capital 10,000 10,000 10,000 25,000 25,000
Paid-up capital 3,555 5,776 7,798 9,358 10,293
Total shareholders' equity 11,745 16,908 19,095 20,787 23,030
Deposits 106,956 124,574 159,816 182,053 201,907
Long-term liabilities 38,209 47,918 63,379 84,827 91,424
Loans and advances 89,252 116,057 138,848 160,890 153,589
Investments 19,934 20,484 39,172 45,862 56,940
Property, Plant and Equipment 1,573 1,695 3,975 4,363 6,407
Earning assets 109,905 137,577 179,537 212,204 211,399
Net current assets 3,435 7,349 2,262 2,735 15,023
Total assets 124,806 154,342 199,950 236,833 243,869
Total liabilities 113,061 137,434 180,856 216,046 220,839
Current ratio 1.05 1.09 1.02 1.02 1.12
Gearing ratio 80.56 76.98 77.88 80.97 80.67
Quick Ratio 1.05 1.09 1.01 1.01 1.12
Cash Reserve Ratio 6.04 6.70 6.22 6.06 6.97
Statutory liquidity Ratio 28.50 26.00 32.96 34.02 38.39
Equity debt ratio (%) 10.39 12.30 10.56 9.62 10.43
Other Business
Import 96,452 147,704 174,384 168,532 133,219
Export 76,097 106,943 133,396 143,612 127,091
Remittance 26,447 28,433 36,890 42,443 32,628
Guarantee Business 13,673 29,000 27,844 29,391 31,170
Capital Measures (Consolidated)
Total risk weighted assets 82,710 183,747 194,380 205,103 222,791
Core capital (Tier-I) 9,057 15,791 18,744 20,664 21,708
Supplementary capital (Tier-II) 3,112 5,692 5,485 5,252 5,104
Total capital 12,168 21,483 24,229 25,916 26,812
Tier-I capital ratio 10.95 8.60 9.64 10.08 9.74
Tier-II capital ratio 3.76 3.09 2.82 2.56 2.29
Total capital ratio 14.71 11.69 12.46 12.64 12.03
Annual Report 2013
143
Key Financial Data & Key Ratios-PBL
Taka in million
Particulars 2009 2010 2011 2012 2013
Credit Quality
Non-performing loans (NPLs) 1,149 1,368 1,908 6,168 7,815
NPLs to total loans and advances (%) 1.29 1.18 1.37 3.83 5.09
Provision for unclassifed loans 1,303 1,463 1,725 2,025 1,691
Provision for classifed loans 631 642 778 1,949 3,733
Share Information
Market price per share (Taka) 65.30 94.45 44.50 37.00 25.90
No. of shares outstanding (Million) 355.47 577.64 779.81 935.77 1029.35
No. of shareholders (actual) 10,339 19,748 26,030 23,964 25,632
Earnings per share (Taka) 7.83 5.69 4.70 2.88 1.78
Dividend: 40% 40% 30% 20% 12.50%
Cash 10% 5% 10% 10% 12.50%
Bonus 30% 35% 20% 10% -
Effective dividend ratio (%) 44.44 49.52 40.21 21.82 13.10
Dividend cover ratio (times) 1.96 1.42 1.57 1.44 1.42
Dividend yield (%) 6.13 4.23 6.74 5.41 4.83
Market capitalization 23,212 54,572 34,702 34,624 26,660
Net asset value per share (Taka) 33.04 29.27 24.49 22.21 22.37
Price earning ratio (times) 8.34 16.60 9.47 12.85 14.57
Operating Performance Ratio (%)
Net Interest Margin (NIM) 2.95 4.21 3.19 3.61 2.75
Net non-interest margin on average earning assets 2.72 1.50 2.12 1.60 1.48
Earning base in assets (average) 89.34 88.66 89.51 89.69 88.12
Gross proft ratio 49.31 55.60 47.75 43.66 42.15
Net interest income as a percentage of working funds 2.07 3.10 2.29 2.48 1.80
Proft per employee 2.87 2.89 3.24 3.36 2.76
Operating proft as a percentage of working funds 4.50 4.43 4.19 3.92 3.11
Cost-income ratio 35.47 36.94 35.75 36.62 41.98
Credit-deposit ratio 83.45 93.16 86.88 88.38 76.07
Cost of funds on average deposits 8.41 6.39 8.15 8.75 8.80
Yield on average advance 13.16 11.76 13.09 15.17 13.85
Return on average assets 2.37 2.22 2.05 1.24 0.76
Return on average equity 30.19 21.65 20.19 13.53 8.35
Return on Capital Employed 10.59 9.53 9.01 8.10 6.53
Other information
No. of branches 84 94 102 113 117
No. of SME branches/centers 5 14 17 17 17
Number of ATM 39 43 81 134 151
No. of employees 1,844 2,139 2,292 2,544 2,710
No. of foreign correspondents 602 621 644 660 661
Average earning assets 105,083 123,741 158,557 195,871 211,802
Average total assets 117,622 139,574 177,146 218,392 240,351
Average deposits 97,488 115,765 142,195 170,934 191,980
Average loans & advances 82,204 102,654 127,452 149,869 157,239
Average equity 9,221 14,327 18,002 19,941 21,908
Annual Report 2013
144
Graphical Presentation-PBL
Operating Proft
(Taka in million)
2009 2010 2011 2012 2013
0
2000
4000
6000
8000
10000
5
,
2
8
9

6
,
1
7
6
7
,
4
2
7

8
,
5
5
1

7
,
4
7
4

Return on Equity (%)
2009 2010 2011 2012 2013
0
5
10
15
20
25
30
35
3
0
.
1
9
2
1
.
6
5
2
0
.
1
9
1
3
.
5
3
8
.
3
5
Earnings per Share
(Taka in million)
2009 2010 2011 2012 2013
0
1
2
3
4
5
6
7
8
7
.
8
3
5
.
6
9
4
.
7
0
2
.
8
8
1
.
7
8
Net Asset Value per Share
(Taka in million)
2009 2010 2011 2012 2013
0
5
10
15
20
25
30
35
3
3
.
0
4
2
9
.
2
7
2
4
.
5
4
2
2
.
2
1
2
2
.
3
7
Return on Assets (%)
2009 2010 2011 2012 2013
0.0
0.5
1.0
1.5
2.0
2.5
2
.
3
7
2
.
2
2
2
.
0
5
1
.
2
4
0
.
7
6
Market Price per Share
(Taka in million)
2009 2010 2011 2012 2013
0
20
40
60
80
100
6
5
.
3
0
9
4
.
4
5
4
4
.
5
0
3
7
.
0
0
2
5
.
9
0
0
500
1000
1500
2000
2500
3000
3500
4000
Proft after Tax
(Taka in million)
2009 2010 2011 2012 2013
2
,
7
8
4
3
,
1
0
1
3
,
6
3
4
2
,
6
9
9
1
,
8
2
9
0
10
20
30
40
50
Cost-Income Ratio (%)
2009 2010 2011 2012 2013
3
5
.
4
7
3
6
.
9
4
3
5
.
7
5
3
6
.
6
2
4
1
.
9
8
Annual Report 2013
145
Graphical Presentation-PBL
Deposit & Advance
(Taka in million)
2009 2010 2011 2012 2013
0
50000
100000
150000
200000
250000
1
0
6
,
9
5
6
1
2
4
,
5
7
4
1
1
6
,
0
5
7
1
5
9
,
8
1
6
1
3
8
,
8
4
8
1
8
2
,
0
5
3
1
6
0
,
8
9
02
0
1
,
9
0
7
1
5
3
,
5
8
9
8
9
,
2
5
2
Deposits Loans & Advances
Shareholders' Equity
(Taka in million)
2009 2010 2011 2012 2013
0
5000
10000
15000
20000
25000
1
1
,
7
4
5
1
6
,
9
0
8
1
9
,
0
9
5
2
0
,
7
8
7
2
3
,
0
3
0
Non-Performing Loans
(Taka in million)
2009 2010 2011 2012 2013
0
1000
2000
3000
4000
5000
6000
7000
8000
1
,
1
4
9
1
,
3
6
8
1
,
9
0
8
6
,
1
6
8
7
,
8
1
5
Investment Income
(Taka in million)
2009 2010 2011 2012 2013
3
,
3
7
2
2
,
6
3
2
4
,
1
5
7
4
,
6
3
3
5
,
5
8
3
Non-Interest Income
(Taka in million)
2009 2010 2011 2012 2013
0
2000
4000
6000
8000
10000
5
,
7
6
5
5
,
4
7
3
7
,
4
9
8
8
,
0
8
1
8
,
5
5
1
Savings Deposit as % of Total Deposit
2009 2010 2011 2012 2013
0
3
6
9
12
15
1
1
.
3
2
1
2
.
2
8
1
1
.
2
3
1
0
.
5
4
1
0
.
4
6
Branch Network
2009 2010 2011 2012 2013
0
30
60
90
120
150
8
9
1
0
8
1
1
9
1
3
0
1
3
4
Number of ATM
2009 2010 2011 2012 2013
0
50
100
150
200
3
9
4
3
8
1
1
3
4
1
5
1
0
1000
2000
3000
4000
5000
6000
Annual Report 2013
146
Segment Analysis
0.99%
Conventional Banking
Operating Revenue
Islamic Banking Of-shore Banking
10.39%
88.62%
3.25%
Proft Before Tax
34.28%
62.47%
2.74%
Assets Employed
6.90%
90.36%
PBL
Group
Operating Revenue
85.07%
9.97%
0.95%
2.53%
1.48%
Islamic Banking
Of-shore Banking
Local Subsidiaries (PBIL, PBSL)
Overseas Subsidiaries
(Exchange House, Finance Co.)
Islamic Banking
Of-shore Banking
31.91%
58.14%
3.02%
5.22%
1.71%
Proft Before Tax
Islamic Banking
Of-shore Banking
6.57%
86.08%
2.61%
3.69%
1.05%
Assets Employed
Annual Report 2013
147
Distribution of Shareholdings in 2013
Types
Number of Shares % of Shares
2013 2012 2013 2012
Sponsors 416,508,783 379,553,447 40.46% 40.56%
Financial Institutions 188,617,995 188,237,104 18.32% 20.12%
Foreign Investors 51,108,455 35,695,212 4.97% 3.81%
Non-Resident Bangladeshi 3,752,285 5,031,043 0.36% 0.54%
General Public 369,361,098 327,254,663 35.89% 34.97%
Total 1,029,348,616 935,771,469
100.00% 100.00%
Shares held by Directors in 2013
Sl. # Name of the Director Status Opening Position Closing Position Change
1 Mr. Md. Nader Khan Chairman 34,563,056 38,019,361 10.00%
2 Mrs. Nasim Anwar Hossain Vice Chairperson 22,150,681 23,365,749 5.49%
3 Mr. Mafz Ahmed Bhuiyan Vice Chairman 18,719,181 20,591,099 10.00%
4 Quazi Sirazul Islam Director 18,741,962 20,616,158 10.00%
5 Khandaker Mohammed Khaled Director 25,973,071 28,570,378 10.00%
6 Mr. M. A. Khaleque Director 19,860,746 21,846,820 10.00%
7 Mr. Md. Shirajul Islam Mollah Director 18,768,111 20,644,922 10.00%
8 Mr. Mizanur Rahman Bhuiyan Director 18,720,079 20,592,086 10.00%
9 Mr. Md. Shahadat Hossain Director 25,283,258 27,811,583 10.00%
10 Mrs. Marina Yasmin Chowdhury Director 18,983,935 20,882,328 10.00%
11 Mrs. Nazma Haque Director 18,798,231 20,678,053 10.00%
12 Mrs. Muslima Shirin Director 18,716,136 20,587,749 10.00%
13 Mrs. Salma Huq Director 29,322,129 32,254,341 10.00%
14 Mr. Nafs Sikder Director 23,478,344 25,826,178 10.00%
15 Mr. Tanjil Chowdhury (Representative
of East Coast Shipping Lines Limited)
Director 18,728,326 20,601,158 10.00%
16 Mr. Imran Khan Director 18,716,670 20,588,337 10.00%
17 Prof. Ainun Nishat Independent
Director
- - -
18 Prof. Dr. Mohammed Aslam
Bhuiyan
Independent
Director
- - -
19 Mr. Manzur Murshed Independent
Director
26,616 29,277 10.00%
Total 349,550,532 383,505,577 9.71%
Sponsors
Types of Shareholding
Sponsors
40.46%
Foreign
Investors
4.97%
Non-Resident
Bangladeshi
0.36%
General
Public
35.89%
Financial
Institutions
18.32%
Financial Institutions
Foreign Investors
Non-Resident Bangladeshi
General Public
Annual Report 2013
148
Economic Impact Report
The banks overall mission is to deliver optimum value to its customers, employees, shareholders and the nation
and the business strategy is geared towards achieving this. This section covers the value the bank delivers to its
shareholders and the nation at large.
The banks policy has been to deliver optimum value in a manner that is consistent with the highest levels of fairness
and transparency. For the bank, it has not been a case of building fnancial value and enhancing the bottom line at
any cost, but rather participating in a process of creating value through fair and ethical means. Building sustainable
value of all stakeholders is an important corporate goal.
Some of the measures taken to create, sustain and deliver optimum value are as follows:
Maintaining Capital Adequacy
Capital adequacy symbolizes the fnancial strength and stability of a bank. It limits the extent up to which banks can
expand their business in terms of risk weighted assets. Like all commercial institutions, banks too constantly look
at ways of expanding their operations by acquiring property, plant and equipment, opening branches, in addition to
mobilizing deposits, providing loans and investing in other assets.
Regulatory capital requirements are therefore necessary to prevent banks from expanding beyond their ability to
manage (over trading), to improve the quality of banks assets, to control the ability of the banks to leverage their
growth and to lead to higher earnings on assets, leading to peace of mind of all the stakeholders. The bank keeps a
careful check on its capital adequacy ratios.
The capital adequacy computation on consolidated basis as at December 31, 2013 is given below:
Details of Capital Fund
Taka in million
2013 2012
Tier-I: Core capital
Paid-up capital 10,293 9,358
Share premium 2,241 2,241
General Reserve 28 -
Minority interest in subsidiaries 0 0
Statutory reserve 7,529 6,840
Surplus in consolidated proft and loss account / Retained earnings 1,616 2,225
Total Tier-I capital 21,708 20,664
Tier-II: Supplementary capital
General provision maintained against unclassifed loans / investments 1,659 1,965
General provision maintained against off-balance sheet exposure 1,090 1,080
General provision maintained against Off-shore Banking Units 32 61
Revaluation gain / loss on investment (50% of total) 68 21
Revaluation reserve for equity instruments (10% of unrealized market gain) - -
Revaluation reserve for fxed assets (50% of total) 756 126
Subordinated bond 1,500 2,000
Exchange equalization account - -
Total Tier-II capital 5,104 5,252
Total capital 26,812 25,916
Total risk-weighted assets 222,791 205,103
Core capital ratio (%) 9.74 10.07
Supplementary capital ratio (%) 2.29 2.56
Total capital adequacy ratio (%) 12.03 12.64
Annual Report 2013
149
Statement of Value Added and its Distribution
Particulars
Taka in million
2013 2012
Income from banking services 30,561 30,902
Less: Cost of services & supplies (19,838) (19,388)
Value added by banking service 10,723 11,514
Non-banking income - -
Provision for loans & off-balance sheet exposure (4,029) (3,216)
6,695 8,298
Distribution of value addition
To employees as salaries & allowances 2,951 2,685
To providers of capital as dividend & reserve 1,976 2,939
To Government as income tax 1,616 2,450
To expansion and growth
Retained proft (146) (240)
Depreciation 298 278
Deferred taxation - 186
152 225
Total 6,695 8,298
To employees as salaries
& allowances
Distribution of value addition- 2012
32.36%
3.35% 2.24%
29.52%
-2.89%
35.42%
To Government as
income tax
Retained proft
To providers of capital
as dividend & reserve
Depreciation
Deferred taxation
29.51%
24.14%
-2.19%
4.46%
0.00%
44.08%
To employees as salaries
& allowances
Retained proft Depreciation
To providers of capital
as dividend & reserve
To Government as
income tax
Deferred taxation
Distribution of value addition- 2013
Capital Adequacy Ratio (%)
2009 2010 2011 2012 2013
0
3
6
9
12
15
1
4
.
7
1
1
1
.
6
9
1
2
.
4
6
1
2
.
6
4
1
2
.
0
3
Annual Report 2013
150
Economic Value Added Statement
Economic value added is a measure of proftability which takes into consideration the cost of total invested
equity. Shareholders / equity providers are always conscious about their return on capital invested. As a
commercial banking company, we are deeply concerned for delivery of value to all of our shareholders /
equity providers.
Taka in million
Particulars 2013 2012 2011
Shareholders equity 23,030 20,787 19,095
Add: Cumulative provision for loans / investments, off-balance
sheet exposure and Off-shore Banking Units
6,514 4,082 3,503
29,543 24,869 22,598
Average shareholders equity 27,206 23,734 21,241
Earnings
Proft after taxation 1,829 2,699 3,634
Add: Provision for loans / investments, off-balance sheet
exposure and Off-shore Banking Units 4,029 3,216 661
Less: written-off during the year (2,541) (404) (200)
3,318 5,511 4,095
Average cost of equity (based on weighted average rate of
Shanchay Patra issued by the Government of Bangladesh) plus
2% risk premium. 12.90% 13.46% 13.46%
Cost of average equity 3,509 3,194 2,859
Economic value added (192) 2,316 1,237
Growth over last year -108.27% 87.33% -4.84%
Taka in million
Maturity analysis
Below
1 year
1-5 years
Above
5 years
Total
Interest earning assets 134,317 29,074 48,008 211,399
Non-interest earning assets 10,120 2,349 20,000 32,470
Total assets 144,437 31,423 68,008 243,869
Interest bearing liabilities 124,567 27,911 51,206 203,684
Non-interest bearing liabilities 4,848 358 11,950 17,155
Total liabilities 129,415 28,269 63,156 220,839
Maturity Gap 15,023 3,154 4,853 23,030
Cumulative Gap 15,023 18,177 23,030
Annual Report 2013
151
Maintaining Liquidity
The liquidity policy of the bank has always been to
carry a positive mismatch in the interest earning
assets and interest bearing liabilities in the 1 to 30
days category. Our liquidity remained at optimum
levels during the year. The liquid assets ratio stood
at 38.39% ( required 19% of total demand & time
deposits) in December 2013.
The assets and liabilities committee (ALCO) of
the bank monitors the situation and maintains
a satisfactory trade-off between liquidity and
proftability.
Payment of Dividends
The dividend policy of bank has always been to
pay a decent dividend to its shareholders while
ploughing back suffcient profts to fund growth and
capital adequacy requirements. As a result of this
prudent dividend policy, the bank has been able to
build up its shareholders fund base to satisfactory
levels.
Considering the performance of the bank over
the past year, the Board has recommended cash
dividend of 12.50% for the year 2013.
Market Value Added Statement
Market Value Added (MVA) statement is the difference between the total market value and the total book value of
shares of a bank. A high MVA indicates that the bank has created substantial wealth for the shareholders. MVA is
equivalent to the present value of all future expected economic value added. The share market value of banks shares
stood at Tk 26,660 million whereas the book value of the shares stood at Tk 23,030 million, resulting a Market Value
Addition of Tk 3,630 million as of December 31, 2013. The calculation of Market Value Added is given below:
Particulars No. of shares Value in Taka Taka in million
Market value 1,029,348,616 25.90 26,660
Book value 1,029,348,616 22.37 23,030
Market value added 3,630
Market Value Additon
(Taka in million)
Book Value Market Value Value Addition
0
5000
10000
15000
20000
25000
30000
2
3
,
0
3
0
2
6
,
6
6
0
3
,
6
3
0
Dividend (%)
2009 2010 2011 2012 2013
Cash Dividend (%)
Stock Dividend (%)
0
10
20
30
40
50
1
0
3
0
5
3
5
1
0
2
0
1
0
1
0
1
2
.
5

1,237

2,316
-192
0
1,000
2,000
3,000
4,000
2011 2012 2013
Economic Value Additon
(Taka in million)
Annual Report 2013
152
Disclosure for Non Performing Assets
Movements in NPA
Opening Balance 6,168.50
Add:
Additional NPA during the period 14,768.88
Less:
NPA recovered during the period (1,824.96)
NPA declassifed as performing during the period (8,542.39)
NPA written off during the period (2,755.52)
Sector wise breakup of NPA
Corporate 5,257.71
Retail 1,144.36
SME 1,322.90
Credit Card 89.54
Total NPA 7,814.50
Movement of Provisions made against NPA
Opening Balance 1,949.08
Add: addition during the year 4,318.50
Less: Adjustment during the year (2,534.53)
96 Accounts was rescheduled during the year
Sector-wise NPA
Corporate
67.28%
Credit Card
1.15%
SME
16.93%
Retail
14.64%
Corporate Retail Credit Card SME
Annual Report 2013
153
Market Price Information
The reported high and low prices and volume of shares of Prime Bank Limited traded during the year 2013
on Dhaka Stock Exchange and Chittagong Stock Exchange are given below:
Month
DSE CSE
Total Volume
on
DSE & CSE
High
Taka
Low
Taka
Volume
High
Taka
Low
Taka
Volume
January 38.50 35.20 7,822,804 38.40 35.70 265,775 8,088,579
February 38.40 31.80 6,815,179 39.00 31.90 188,158 7,003,337
March 34.70 29.90 9,789,870 37.00 28.80 576,514 10,366,384
April 31.30 27.00 5,322,063 31.20 25.00 264,568 5,586,631
May 30.80 27.00 5,631,049 30.30 24.70 241,970 5,873,019
June 31.70 28.20 9,573,295 32.00 27.00 377,066 9,950,361
July 29.80 21.60 6,446,411 30.00 22.00 254,616 6,701,027
August 23.50 20.00 5,817,408 23.60 19.00 48,472 5,865,880
September 22.40 16.80 6,764,738 21.20 15.50 2,358,225 9,122,963
October 24.10 16.80 4,941,554 23.60 15.50 142,977 5,084,531
November 27.50 22.10 9,312,091 25.90 21.60 104,067 9,416,158
December 26.50 22.00 9,959,449 26.00 21.00 112,903 10,072,352
2009 2010 2011 2012 2013
23,212
54,572
34,702
34,624
26,660
Market Capitalization
(Taka in million)
Price Earning Ratio (Times)
2009 2010 2011 2012 2013
0
5
10
15
20
8
.
3
4
1
6
.
6
0
9
.
4
7
1
2
.
8
5
1
4
.
5
7
Prime Bank-DSE Year 2013 Prime Bank-CSE Year 2013
Period Period
Annual Report 2013
154
Financial Calendar 2013
Quarterly Results
Audited consolidated results for the 4
th
quarter ended 31 December 2012 Announced on 28
th
February 2013
Unaudited consolidated results for the 1st quarter ended 31 March 2013 Announced on 13
th
May 2013
Unaudited consolidated results for the 2
nd
quarter and half-year ended 30 June 2013 Announced on 30
th
July 2013
Unaudited consolidated results for the 3
rd
quarter ended 30 September 2013 Announced on 24
th
October 2013
Dividends
Distribution of stock dividend of 10% and cash dividend of 10% in respect of
fnancial year ended 31 December 2012
Stock Dividend
Cash Dividend
3
rd
April 2013
9
th
April 2013
Notice of Annual General Meeting 10
th
March 2013
Annual General Meeting 31
st
March, 2013
Other Information
Exchange controls and other limitations affecting equity security holders
Non-residents can buy and sell PBLs shares and transfer the dividends after complying with Foreign Exchange
Transaction Guidelines 1996 and BSEC Rules.
Taxation on shares and dividends
Following is the current deduction of tax at source on dividend income as per current fscal act:
In case of resident / non-resident Bangladeshi company at the rate of 20 percent
If the shareholder resident / non-resident Bangladeshi person other than company at the rate of 10 percent
If the shareholder resident (other than Bangladeshi non-resident) person other than company at the rate of 25
percent
Capital gain arising from transfer or sale of Government Securities is tax exempted. Capital gain arising from
transfer or sale of Stocks and Shares of publicly listed companies listed with stock exchanges is taxable at the
rate of at least 10 percent. For non-resident the tax exemption on capital gain shall be allowed if the similar
exemption is allowed in the country of residence of the non-resident
Stock Details
Particulars DSE CSE
Stock Symbol PRIMEBANK PBBANK
Company Code 11116 22013
Listing year 2000 1999
Market category A A
Electronic share Yes Yes
Market lot 250 250
Total number of securities 1,029,348,616 1,029,348,616
Availability of information about PBL
Annual Report 2013 and other information about PBL may be viewed on PBLs website www.primebank.com.bd PBL provides
copies of Annual Reports to the Bangladesh Securities and Exchange Commission, Bangladesh Bank, Dhaka Stock Exchange
and Chittagong Stock Exchange for their reference. Investors may read them at their public reference room or library.
Governance on Investors Relation
PBL is strongly committed to equitable treatment of every shareholder, whether they are major or minority shareholders, institutional
investors, or foreign shareholders. To ensure equal treatment of all shareholders, the bank created various mechanisms, such as:
Shareholders who are unable to attend the shareholders meeting, the bank provides proxy forms which allow shareholders to specify
their vote on each agenda. The proxy forms, which are in accordance with the standard format, are sent along with the annual report.
The shareholders meetings proceed according to the order of the agenda, without adding new and uninformed agenda,
in order to give the opportunity to shareholders to study the information on the given agenda before making a decision.
Moreover, there are no changes to the important information in the shareholders meeting.
The bank sees the importance of the consideration of transactions which may have confict of interest or may be connected or
related transactions, and abides by good corporate governance principles, including the rules and regulations of the Bangladesh
Securities and Exchange Commission and the Dhaka Stock Exchange and the Chittagong Stock Exchange transactions,
directors, management and those who are related persons do not participate in the consideration to approve such transactions.
The bank provides a channel for minority shareholders to propose issues deemed important and appropriate to include in
the agenda of the banks annual general meeting of shareholders and to nominate candidates with appropriate knowledge,
abilities and qualifcations to be considered for the position of director.
The bank continues to have regular communication with the shareholders through periodic updates of performance and at
any other time when it believes it to be in the best interest of shareholders generally.
Investors Inquiries
Any queries relating to shareholdings for example transfer of shares, changes of name and address, and payment of dividend
should be sent to the following address:
Share Department
Sarker Mansion (8
th
Floor)
29, Rajuk Avenue, Dhaka-1000
Phone: 9567265/261
Email: info@primebank.com.bd
Annual Report 2013
155
Glimpses of 18th AGM
OTHER INFORMATION
Annual Report 2013
157
Awards and Recognition
SAFA Award for the Best Presented
Accounts and Corporate Disclosures in
Banking Sector 2010 - 1
st
prize.
International Star for Leader in Quality
(ISLQ) Award, France
ICAB National Award for the best
published Accounts and Reports 2010
- 1
st
prize
ICMAB Best Corporate Award
2010-1st prize
SAFA Best Presented Accounts Award
- 2009 overall winner
- 2008 Joint Winner Banking Financial
Sector
SAFA Best Presented Accounts and
Corporate Governance Disclosures
Award 2009 - winner (Banking Sector)
ICMAB Best Corporate Performance
Award 2008 - 1
st
Position (Jointly)
- 2007 Bronze Award (Banking Sector)
Annual Report 2013
158
3
rd
Position
ICAB National Awards - 2003 for Best
Published Accounts and Reports - 2
nd

Prize Financial Sector (Banking)
11
th
ICAB National Awards for Best
Published Accounts and Reports 2010
Winner (Private Sector) Corporate
Governance Disclosure Awards
12
th
ICAB National; Awards for Best
Published Accounts & Reports 2011
(1st Postion-Private Sector Bank)
ICMAB Best Corporate Award 2012
1
st
Position in the Banking Sector
(Private Commercial Bank-
Traditional Operation)
9
th
ICAB National Awards for Best
1st prize Financial Sector (Banking)
10
th
ICAB National Award for Best
1st prize (Banking Sector)
FNS Award - 2005, Best Performing
Local Bank
ICAB National Awards - 2004 for Best
Published Accounts and Reports - 1
st

Prize, Financial Sector (Banking)
Annual Report 2013
159
The Bizz 2012- Inspirational
Company Award
SAFA Best Presented Annual
Report Awards 2011-Overal Winner
(1
st
Runner up)
Bangladesh Business Award-2011,
DHL-The Daily Star
SAFA Best Presented Annual
Report Awards 2011-Winner
(Private Sector Banks)
13
th
Presented Annual Report 2012 -
2
nd
Position in Private Sector Bank
(including Co-operative Bank)
13
th
Presented Annual Report 2012+3rd
Position in SAARC Anniversary
Award for Corporate Governance.
Best Bank of Bangladesh by Global
Survey (Best Emerging Market
Bank in Asia) - 2013
Annual Report 2013
160
Media Highlights
Annual Report 2013
161
Annual Report 2013
162

Fixed Deposit
Special Notice Deposit
Current Deposit
Savings Deposit
u Savings Account
u My First Account
u Shukonna
u Nobagoto
Non Resident Taka Account
NR Investors Taka Account
Security Deposit Receipt
Deposit Schemes:
u Double Benefit Deposit Scheme
u Monthly Benefit Deposit Scheme
u House Building Deposit Scheme
u Education Savings Scheme
u Lakhopati Deposit Scheme
u Prime Millionaire Scheme
u Contributory Savings Scheme
u Laksmapuron Savings Scheme
u Account 150% Deposit Scheme
u Brighter Tomorrow
u Cash Management
Products and Services
Al-Wadeeah Current Account (AWCA)
Mudaraba Savings Account (MSA)
Mudaraba Special Notice Deposit (MSND)
Mudaraba Term Deposit Receipt (MTDR)
Mudaraba Sukonna Deposit Account
Mudaraba My First Account
Mudaraba Special Saving Scheme Deposit:
u
Mudaraba Double Benefit Deposit Scheme (MDBDS)
u
Mudaraba Contributory Savings Scheme (MCSS)
u
Mudaraba Education Savings Scheme (MESS)
u
Mudaraba Hajj Savings Scheme (MHSS)
u
Mudaraba Monthly Benefit Deposit Scheme (MMBDS)
u
Mudaraba Lakhpati Deposit Scheme (MLDS)
u
Mudaraba Millionaire Deposit Scheme (MMDS)
u
Mudaraba House Building Deposit Scheme (MHBDS)
u
Mudaraba Laksma Puron Savings Scheme (MLPSS)
u
Mudaraba 150% Deposit Scheme
u
Mudaraba Brighter Tomorrow Deposit Scheme
Islamic Banking Conventional Banking
Annual Report 2013
163
SPOT, Forward & SWAPS
Import/Export Financing
Call Money, Term Lending
& Borrowing, Investment in
Corporate, Debenture and Bonds
Inter-Branch Money Transfer
SWIFT
Issuing and Encashing Foreign Drafts
Electronic Fund Transfer (BEFTN) and
Bangladesh Automated Cheque
Processing System(BACPS)
ATM/Proprietary/Prepaid Cards:
Proprietary Debit Card
MasterCard Debit Card
Prime Cash (Bio-Metric Smart Card)
Dhaka Club Prepaid Card Service
JCB Debit Card (Up Coming)
NRB Banking
Foreign Remittance:
u
Web-based Instant Cash Remittance
u
TT Remittance
u
Wire Transfer Remittance (SWIFT)
u
DD Remittance
Investment Bond for NRBs:
u
Wage Earners Development Bond
u
US Dollar Investment Bond
u
US Dollar Premium Bond
Account Facilities for NRBs:
u
Foreign Currency Account
u
Non-Resident Foreign Currency
u
Deposit Account
u
Non-Resident Taka Account
u
Non-Resident Investors Taka Account
Treasury Bill
Treasury Bonds
REPOs
Reverse REPOs
Annual Report 2013
164
Cash Credit
Loan General
Lease Finance
Hire Purchase
House Building Loan Commercial/Residential
OD (General)
Letters of Credit
u
Letter of Credit Sight
u
Letter of Credit Deferred
u
Back to Back L/C
u
Stand-by letter of credit (SBLC)
u
UPAS L/C
Payment Against Document (PAD)/Packing
Credit(PC)/Export Cash Credit (ECC)
Foreign Document Bill Purchase (FDBP)
Inland Documentary Bills Purchased (IDBP)
EDF Loan
Loan Against Imported Merchandize (LIM)
Letter of Trust Receipt (LTR)
Payment Against Documents (PAD)
Secured Overdraft (SOD)
Time Loan
Letters of Guarantee
u
Advance Payments Guarantee
u
Bid Bond
u
Performance Bond
u
Payment Bond
u
Custom Guarantee
u
Retention Money Guarantee
u
Shipping Guarantee
u
Guarantee Others
u
Swapnaneer Home Loan
u
Swapnashaj Home Loan
u
Swapnapuron Home Loan
u
Abash Home Loan
u
Car Loan
u
Any Purpose Loan
u
CNG Conversion Loan
u
Doctors Loan
u
Marriage Loan
u
Travel Loan
u
Household Durables Loan
u
Education Loan
u
Hospitalization Loan
u
Loan against Salary
u
Carnival Loan
Bai-Murabaha
Bai-Salam
Quard
Bills (Islamic)
Bai-Muajjal
Izarah
HP under Sirkatul Milk
Musharaka
Term Investment Retail
u
Hasanah Medical
Investment (Shifa)
u
Hasanah Home Investment
(Manjeel)
u
Hasanah Auto Investment
(Burak)
u
Hasanah Household
u
Durables Investment (Asbab)
Sahaj Rin (Easy Loan)
Sampad Rin (Capital Loan)
Chalti Rin (Working Capital Loan)
Moushami Rin (Seasonal Loan)
Digun Rin (Double Loan)
Anchol (Women Entrepreneurs Loan)
Prodip Loan
Prime Subidha
ALTITUDE Internet Banking
SMS Banking
Phone Banking
Kiosk
Utility Bills Pay Service
Platinum Dual Credit Card (MasterCard & VISA)
Gold Dual Credit Card (MasterCard & VISA)
Silver/Classic Local /Intl Credit Card ((MasterCard & VISA)
Travel Quota International Credit Card (MasterCard & VISA)
RFCD International Credit Card (MasterCard & VISA)
ERQ International Credit Card (MasterCard & VISA)
FC International Credit Card (MasterCard & VISA)
Hasanah Credit Card (VISA Platinum & VISA Gold)
Hajj Prepaid Card (MasterCard)
Reward Card (MasterCard)
Prime NFCD Account
Tripple Beneft Deposit Scheme
Premium Banking/ Private Banking
Srijon Loan (SME Banking)
Cashback Service
Platinum Debit Card (Visa & MasterCard)
M
a
s
te
rC
a
rd
G
o
ld
C
re
d
it C
a
rd
-D
u
a
l
Annual Report 2013
165
Prime Bank Foundation
CEOs Go Over
In concert with our Corporate Social Responsibility (CSR)
project/programme teams, we have made a commitment to
stakeholders that is expressed through our new slogan:
Our endeavour for is our passion.
As used here, Impossible includes the changes in the
future life and lifestyle of our direct beneficiary and their
families. The Prime Bank Foundation is ardent about
meeting our societal expectations while changing the life of
each one of our beneficiary. While undertaking its long
journey, Prime Bank Foundation in 2013 has experienced
another year of success for transforming the impossible
into the realm of possibility. It is probably easier to add in
rather than removing in depending on whether we are
dealing with ink or graphite, and what's handy, a writing
instrument, an eraser, or whiteout. If we can make the
impossible possible, then it was not impossible to begin
with. In other words, we can't make the impossible
possible. The theme we have picked up this year is "Making
the Impossible... Possible." We want to share, how does
one do that? How do we make the Impossible - Possible?
Four things we consider essential to making the
Impossible... Possible are:
1. Excellent People: They seem a "no-brainer" on the
surface. But, wishing for excellent people and having
them are two different things. Most organisations and
business-owners are wishers and wanters. We are
willing to do the things necessary to grow the people
from average to superior. An even lesser number are
willing to do what is necessary to identify those with
superior potential before they hire them. The reason is
simple; it is hard, it takes time and money. Instead, they
go on wishing and hoping for something different, but
never get it. The world around them, however, cheers
them because they are like them, average.
2. Leadership: It is not always glamorous. In fact, mostly it
is not. For certain, leaders must know where they are
going and be able to communicate their objective and
direction to those who would follow. In order to make
this happen what we have a vision; the ability to
communicate and engage others; a talent to motivate
other to act to achieve the vision and the integrity.
3. Persistence: We cannot tell how many great ideas and
projects we have abandoned too soon. Many quit too
soon. Persistence seems to us is a "sure winner." We
have tried following 3 activities that build persistence:

Begin at a pace we can sustain over time

Keep on doing the things we believe to be moving us
in a positive direction, no matter what

Be vigilant change that necessitates a modified
strategy
4. Patience: For patience, first and foremost, requires
believing in and knowing that we will reach our objective
because we are doing what is right. If we are not moving
toward our objective, keep on doing what we are doing
while we are looking for a better way.
So, for those of us who are growing a social business, the
road will not be easy, many will fail but those who practice
the Three Ps with a dash of L; their chances of success will
be significantly enhanced. So we can make it happen in our
lifetime, just in our generation. It is possible. All that we
need to do is to start dreaming big and thinking possibility.
We must also change our mindset about a lot of things and
issues which have become conventional, that is, the status
quo. We must therefore embrace the 'can-do' attitude. It is
only through this we can make this country a heaven and a
real home for our children and our children's children. Yes,
indeed, we can make the IMPOSSIBLE POSSIBLE.
Our success in our social business growth in 2013 has
provided a strong foundation on realising our commitment
to meet our CSR. In line with our new CSR theme, our
endeavour for making IMPOSSIBLE, we have tried to
bring the benefits of our education and healthcare
programmes designed for our priority target groups, in the
belief that a better nation offers greater benefits and the
chance for prosperity for us all.
Our education and healthcare services still dominate the
Foundations key areas of focus, contributing about 90%,
but we are now beginning to see a growing contribution
from our sports sector, which is in line with our
expectations. This achievement came on the back of smart
investments in sports, the cricket in particular. We are now
poised to mend as a way of addressing the problems
society faces in education and eye health sectors. I feel so
very proud on behalf of all members of the team of Prime
Bank Foundation and its projects. I sincerely believe that for
us, the most rewarding part of the job is being able to
extend a caring hand for a tender healing touch for those in
need. We are firm in our belief that our programmes
designed to tailor to the needs of our priority target
beneficiaries create opportunities for them to turn their
dreams into reality. This belief continues to drive us towards
new initiatives and new targets so we can impact the lives
of many across the country.
We have also consistently taken strategic measures to
improve our performance on the three strategic goals of
CSR. Our beneficiaries, who are the most important
stakeholders in our business, account for the greater share
of our focus on social performance, particularly with regard
to health and education.
As presented in this CSR report, we have implemented a
number of strategies to win and retain clienteles trust.
Moreover, our clienteles are part of a countrywide
programme trend, in which client choices and decisions are
significant factors in various aspects of programme
implementation, including the issue of accessibility and
availability of services and innovations in low-cost but high
quality services.
In addition, in line with our mission to become a model of
management excellence, we have continued to raise our
standards with regard to our corporate governance
practices. Stakeholder trust in Foundations economic,
social and environmental performance is a great
compliment for us. For this reason, the involvement of
relevant stakeholders in formulating our business strategy
is critical, and represents a challenge that we must address
in the future to ensure that what is presented in our CSR
Reports in the years to come embraces the interests of all
stakeholders. In this way we will be able to achieve our
sustainable programme development objectives and
provide benefits for all.
We are determined to respond to the expectations and
demands of diverse stakeholders in the country in order to
achieve our corporate vision of being one of the leading
foundations in Bangladesh. We will make use of
national/international guidance for CSR so that we
continually test, verify and improve CSR in our business
operations as we energetically put it into practice.
To facilitate our ability to integrate the Foundations
capabilities in the pursuit of this vision for the future, we
refined the Corporate Philosophy, which comprises the
Foundations core identity, into a more simple form.
Specifically, we embraced our corporate motto of "Serving
Society with Superior Quality" as a statement of our
mission and identified four basic stances as the foundation
of the philosophy for our projects to adopt. Going forward,
we will strive to anticipate social needs and propose
creative solutions based on this philosophy.
We gratefully acknowledge the excellent guidance and
inspirational efforts made by the Foundation Management
Committee, its Executive Committee and Prime Bank
Board of Directors, staff and partners for the kind of
resilience needed for us to stay dedicated to our mission
throughout the year. I also appreciate the support we have
received from the entire priority target beneficiary and
community for the period of our work. As we advance in
2014 and beyond, we will make a more painstaking effort to
be a stronger voice of hope, a fire of light and an
organisation that is dedicated to uplifting the areas of our
work. The staff works particularly hard to achieve
programmatic goals. They exhibit humility that spurs
upward mobility for indigent families, while administering
outstanding services to our clientele with professionalism,
technical knowledge and care.
As in previous years, this report shares some of the
important work we are doing for our priority target groups,
and our efforts to manage a responsible social endeavours.
The report aims to show that the Foundation fulfils its CSR
through careful attention it accords to each of its activities,
incorporating this discussion of the status of its recent
activities. With a view to giving the reader a clear sense of
how PBFs services relate to society, the report provides
case studies of PBFs ongoing emphasis on CSR through
different projects/programme it conducts, we have
employed some guidelines in our effort to improve the
reports readability.
PBF considers this report an important tool for
communicating with all manner of stakeholders and hopes
to continue improving it. Accordingly, we welcome your
comments and suggestions.
The spirit, commitment and dedication of our employee and
the CSR team at the projects level who contribute to CSR
activities is indeed inimitable and goes long way in
engaging effectively with our target beneficiaries.
Keeping pace with the changing need and time has been
our hallmark, especially, when it has potential of improving
and touching numerous lives. Hope the new financial year
will see the start of new initiative in health, education and
sports for supplementing the efforts being made by
countrys other players towards national developmental
process. While we are proud of our achievements so far, we
believe that we can build on these accomplishments in
2014 and remain committed to responsible, transparent
reporting and disclosure. In a fast-placed global economy
with an evolving sourcing landscape and geopolitical
climate, CSR policies that are flexible and responsive while
remaining realistic are essential to progress. I am excited
about all I believe we can accomplish. I extend my heartfelt
thanks to you for your interest in our seventh annual report
on our CSR values and performance. I invite you to make
use of this information, and engage with us as we continue
to address some of the most challenging issues facing our
Foundation, our industry and the country. As this report
demonstrates, we continue to make important and exciting
changes and look forward to updating you on further
progress in the years to come.
Sincerely yours,
Dr. Iqbal Anwar
Chief Executive Officer
Prime Bank Foundations CSR
Corporate Social Responsibility (CSR) is the continuing
commitment by businesses to behave ethically and
contribute to economic development while improving the
quality of life of the workforce and their families as well as
of the local community and society at large.
We, Prime Bank Foundation (PBF) go beyond the sphere of
business. As a socially conscious and responsible
corporate body, Prime Bank Foundation is committed to the
improvement of the society as a whole. PBF is constantly
trying to put its effort to help the disadvantage population of
the country in the sectors of Health, Education, Sports, Art
& culture, Disaster Management etc. PBF is a non-profit
organisation, working solely for the improvement of the
poverty-stricken mass of our country. We have been
working relentlessly from 2007 and have successfully
undertaken and implemented various activities changing
the life of a multitude of the populace.
We dont stop at providing and helping people financially
but also assist them in securing a place in the job market.
We invest in improving public health, bolstering education
and developing local economies. Responsibility is a way of
life for us. This is because we believe in the success that
has come to us as a result of responsible business
operations.
Stated briefly, CSR is about (i) taking stock of the
economic, social, and environmental impacts of a business,
(ii) extenuating the negative impacts and bolstering the
benevolent impacts, (iii) taking up action programmes and
community investments to reduce social segregation and
disparity and to address the key sustainable development
challenges.
Since inception, as a responsible corporate citizen, Prime
Bank Foundation has been playing a pioneering role in
implementing different social and philanthropic
programmes to help underprivileged people of the country.
Education, healthcare, human resources development,
creation of social awareness, rehabilitation of distressed
people, and such other programmes to wipe out human
sufferings are some of the important areas where the PBF
carries out its social and philanthropic activities.
Business is an indivisible and embedded component of the
society. In addition to its economic role in society, business
also has numerous other roles and responsibilities towards
society. All our activities reflect our belief that Success and
Responsibility Go Together. Therefore, we have put in
place very strong and sensible CSR initiatives. Our vision is
to achieve the necessary balance between sustainable
environmental, social and economic development. Keeping
this view in mind, PBF has established permanent
institutions like Prime Bank Eye Hospital in Dhanmondi,
Prime Bank Nursing Institute in Pragati Sarani, Prime
Campus at Uttara and Mirpur. All our efforts are geared
towards providing affordable but quality service to our
society at large.
Education Support Programme (ESP)
Education Support Programme, a long term, renewable
scholarship programme for under privileged but meritorious
students across the country assures their graduation/
post-graduation level studies rather than providing one time
recognition awards to good performers. The programme,
launched in 2007 to remove access barriers of many
economic hardship-hit deserving students to their desired
level of education, has successfully completed its 7th year.
Through this, we engage in building self-respect and
capabilities to make career, educational and life-changing
journey. In order to keep the continuity of the first 6 years
of the programme into the 7th year, i.e. in the reporting year,
another 394 underprivileged but meritorious students were
awarded stipends from ESP. This represents the highest in
one year since its inception for whom financial support has
been included, in the form of monthly stipends for
completing their graduation/post-graduation level studies in
the countrys public sector universities and medical
colleges/engineering/agriculture universities. With the
inclusion of these students, the total number of poor but
meritorious students who are the recipients of Prime Bank
Foundation stipends stood at 1671. For awarding stipends
in 2013, the same processes were followed: Inviting
applications from potential poor but meritorious students
through advertisement in the countrys leading national
dailies and their selection by the Foundations Advisory
Committee. The first installment of stipends of all those
student selected in 2013 was handed over through a formal
award giving ceremony organised on September 21, 2013
at LGED Auditorium (Level-2), LGED Bhaban, Agargaon,
Sher-e-Bangla Nagar, Dhaka-1207. The Foundation
continues without fail to gratefully acknowledge the
contributions made by its Advisory Committee, constituted
in 2007 for selecting awardees for seven years in a row,
including the reporting year.
In addition to furnishing vital statistics in graphics on the
programme, case studies on the outcome/impacts of Prime
Bank Foundations Education Support Programme are
portrayed for our readers and stakeholders.
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In the database we preserve all relevant information of the
applicants based on which the compilation sheet is
generated to be provided to the Advisory Committee of
PBF for its ESP. The Advisory Committee then develops a
set of criteria for the selection and recommendation of the
most deserving students. After having the set cut off lines
of the combined CGPA marks from the Advisory
Committee, PBF Officers individually conduct one-to-one
Validation Exercise (VE) on the primarily selected
applicants. Through this process PBF Officers validate their
information, academic papers, economic hardship, and
how deserving each is, including other sources of income
along with applicants appetite for the stipend as
assistance rather than hand-outs.
One of the challenges of the whole processes is to pick out
the most deserving students, maintaining highest level of
neutrality from such a huge number of applications. It has
been made possible by constituting a three-member
Advisory Committee for the Education Support Programme
of Prime Bank Foundation, with highly credible and
respectable members of the society.
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CEOs Go Over



strategy
quality services.
Sincerely yours,
Dr. Iqbal Anwar
operations.
challenges.
society at large.
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||<| |<T <<| o-: <- |-|< |<<|< 1<
|-|-< |<T <-
Bgivb nvmbt |-<| < | . <|-. |-|< <|<|< <"|
|-|<| :| - =T-. <|<| =- |< <|- <| <<:
|<- -| <- |<+| < |.=-.|. |||:- |:|-<: -|;
|*| |<- |T :|< |-:*| =: |<- :< |-|-<
|;|< | << <|: <- :- -| |:|-
wcweGd KgKZvt ||- |<|<= < =-|<= : <- |: <-
"|- - <<-. <<- |< |-|< |< T-< <<|:
Bgivb nvmbt -|<| |<|<-|< |:< < |<|- |T |-|<
=<-|= <| |;|< |~ |<:| < |-|< |< <|-
<|< |T -| << ||<= =< <|| |-|< |<-< -|;
|<< -< <| |<<|< |<|- <|-< |-< |;|< |<|
--|<|| -. <|- |<- |< |<-< -|<:|< T <|
|-|< . - <|< <|| "|- =-|<= |-| <||<<
||= 8. =< -< 8. < <- "|- - <|< <:-|-
-|<| || < |<< - <|-|-< << |-|<
|-|- |<|- << |<|< -<<|< - <|< ;
||<|< < | -|<| |<|<-|< |-|- |<| |<<
- <| |-: <||T
|-|< = :|< |T- |-|< <|<|--|<< -|<| |< |-
<|< |<~- << | <|| <| |-<| <T. :|
||- |- <|< < |- <|< |<~-< <:=:| =|-
<<|T
AvRvnvi Dwb
|<<. -|<| |<|<-|<
||<= =|<<|<| (-- <||)
Dr. Iqbal Anwar
CEO, Prime Bank Foundation
making IM POSSIBLE
GKRb Qvi wPwV
eivei,
cavb wbevnx KgKZv
cvBg evsK dvDkb
ebvbx, XvKv 1213
welq t abev` vcb cm
mvi,
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1|7|6 7T e|0Ie|0|1 1!|T dT| |1||d|1 d!
71 7||7 || 36T" T1 n| e
Annual Report 2013
167
CEOs Go Over



strategy
quality services.
Sincerely yours,
Dr. Iqbal Anwar
operations.
challenges.
society at large.
Kvwnbx -01
AvKei nvmb:
|:|<|< |--< <|< =< -:--|<- |-- -<< |-
|<<< -|-. -. | |- <|< |<~- << <|
|<<|< < ||<= =< -- <-<:| <|-- -:
|<|T- || |;|: |<<<-< <||;: <||;< << -|.
<|<|--|< |<--|<|<|< -<<"|< <|<- ||= - |<|": --
:|<| |<<<-< <||;< = --||< ||=< << || << <||:
-< =< |:<-- <| <<|:: -. | ||<= <:<
<||: <||<< |<| ||< <; |-: |<|- |<<<<
--|< |<|-|- :| "|- |<
<| |<<|< < <|<| |<<| |-< :|< -|^| <- <|<. <|
|-<|-: <|": -< <v << |<|< | <| <<| <|<
|<<v-| -:| |< |: |-|< < | <| - <<:
<|< |<<< :|< <|<|<||-<:|< -|<| |<|<-|<< ---|
||< |<| |<|<=: |-< "|- << -< |<|< <||
||= -<|<| - -< -<. |- <|< |- =< -|:|
||: <| |< |-| <<|< =|- << <: o< <<
|<<<< |< ||<| o< <| :|. |:-< ---| |-
||< - |<<|< ||<<| |< |- <|< ||-< =
=<|< <- |-- |T :|< <| |- =--|< <|-<-< |-<|
=| -|: |-< T | |- <|< |<~- <|< :|<
<:=:| < |-- |-|: |-- -| <- |<<< -||<<
<|< <|<|< |<T< - <|<< -< ;
|<<< |-|< :|< |<-< = <- - < -<T |- <|<
|<~- << <| |<<|< - <| || <: <|<
||<=/||<= <:< - ||<- -|<| <|<< |-|< <
|-|< <|<|--|<< = <| <|<=- |-|< -:| |<<<-<
=- |-< |< ||; |-: <|<< = --|- <| <|<=-|
Kvwnbx -02
mvvZ nvmb:
|- <|< |<~- =< |<<- <|| T|= ||:
-|-. -|<| |<|<-|< =<|<| =~ -<-- |<|<
T|= =-|<= |<| =-| < -< |- |< :|: |<: |:-<
<<||< <. -.8 :||< = T|=| =-|< - <|-|-
<< |- <|< ||-< =
:||-<|<| ||<|< -|-< |-|< -|<| - <<
=<- |< -|: < | |- |- <|<
|<~- | |- <|< |<~- =< <-<:|-< |<
:|< |-- <|< <<: |: :|< |-- |< <T| |T -|<
-:: |- || -| - :| <- |<| -<|< -<
||: |-|< =:<; | |-|< <-| < -:| -|
|- <|< |<~- =< = |-|- <-|- |-|< |<-
|<< -< <|<< <|- |- <|< ||-< =< |-<|<
|| ;. -- ; <|< |- <|< |<~-< <-|-< <<|
<| <-| <|< -< |-- << < <|<
Kvwnbx -03
gvKmy`v Avvi:
-|<-| ||<. <|<| -|-< <--|- |T- |-|- <:-||
=<- <-||<| <|<|< <| -:: |< < ; <|<
:|<| |--|<< <|< =< =< ||;| |< :|-< <||;
-|<-|< -|<< <|- |<- |< -<-| ||| |:-|< ||<
<|- <<- |: <|< |<< ||<| <| ||:| -<< <<|
||< |<|-< | ;| |||< -<| |T <|- =< ||
: <|<| |<|*< -|<-| ||< |: -: - -< -|<|
|<|<-|<< <-||: |<| -|<:| <<|< -: <|- |:|<
"- < - :|-< --| < ; <|< -|<-|. |< <-
<|<|- :|< " |- <|< |<~- =|< | :|< ||
<| |-<
<| |<<|< < <- <|< -|<-|< -|^| o< -< - <
|| <|:< |< 1- << -|- -|| |<| ||
1- <<|< < < |<< - <|-|- <<- | <|<
< |< :|< " ||-< - <|<<|< ;|. :|
|<|=-= (||) <| << <|-|- <<- |-. | |-
<<|- <|< "1| <|<|< ||< - -|<-|< |<
< -|;|< :|< |<<|<|<. :|:< |-- | :|< |<
||<< :| :|< " < |- <|< |<~- =< ||
<| | |-<| |- << -|<-| |<| |-|- |- <|<
|<~- =< <|| |: <|:=-| <|< |: |:- -| <
< |- <|< |<~- = <|- =<| || |<|
< <<: -< :| -- =<| < <| <<:| <|- |<
<| |<| <<| <|< -| = <<-< || <|<|< ||- < |
<| <<: - - | = |:| |: |-|< |
<| <<: -|<:| << :| |< | < "< <|<
||<= =< = <-|-< <<| <:=:| ||-< |- <|<
|<~- =< -* <|--| <<- -|<-| ||<
Kvwnbx -04
Bgivb nvmb:
|- <|< |<~- << -- | <| |< -<|-
-|- :- |T -|<| |<|<-|<< |-|- |<|< T|=.
:|< <|<| |T- |-|- =<- |<+|/ |.=-.| ||< ||<=
<-<:|<| T |<|T- <|<||;<|< :|-< :< <||;:
:|< << =<| |:<-- T|| -< -> |< |- <|<
||-< =< <||<< |<|
-<|- -|- <:-|- -|<| || << |<|<= =< |<<
|-< ||<|< <T ||<= <-<:|< <<| -< :|< <-"
wcweGd KgKZvt |-|< |-^< -- |T -> | |-<|
|-|-< |-< <||; <|<||;<| |< |<||*| |<
|T|- |-|-< ||- |<-||= -: | =|T |-|<
||<| |<T <<| o-: <- |-|< |<<|< 1<
|-|-< |<T <-
Bgivb nvmbt |-<| < | . <|-. |-|< <|<|< <"|
|-|<| :| - =T-. <|<| =- |< <|- <| <<:
|<- -| <- |<+| < |.=-.|. |||:- |:|-<: -|;
|*| |<- |T :|< |-:*| =: |<- :< |-|-<
|;|< | << <|: <- :- -| |:|-
wcweGd KgKZvt ||- |<|<= < =-|<= : <- |: <-
"|- - <<-. <<- |< |-|< |< T-< <<|:
Bgivb nvmbt -|<| |<|<-|< |:< < |<|- |T |-|<
=<-|= <| |;|< |~ |<:| < |-|< |< <|-
<|< |T -| << ||<= =< <|| |-|< |<-< -|;
|<< -< <| |<<|< |<|- <|-< |-< |;|< |<|
--|<|| -. <|- |<- |< |<-< -|<:|< T <|
|-|< . - <|< <|| "|- =-|<= |-| <||<<
||= 8. =< -< 8. < <- "|- - <|< <:-|-
-|<| || < |<< - <|-|-< << |-|<
|-|- |<|- << |<|< -<<|< - <|< ;
||<|< < | -|<| |<|<-|< |-|- |<| |<<
- <| |-: <||T
|-|< = :|< |T- |-|< <|<|--|<< -|<| |< |-
<|< |<~- << | <|| <| |-<| <T. :|
||- |- <|< < |- <|< |<~-< <:=:| =|-
<<|T
AvRvnvi Dwb
|<<. -|<| |<|<-|<
||<= =|<<|<| (-- <||)
GKRb Qvi wPwV
eivei,
cavb wbevnx KgKZv
cvBg evsK dvDkb
ebvbx, XvKv 1213
welq t abev` vcb cm
mvi,
"|T|1 01 e|| 7| 7'!|7 1* |Te d 1|||1 *||n 3|
|1 |" *|, 1|1| 3|1 dT| e| *|1 |6Tn1
7|*| *|3|T '|T| |1|1n!| ` |d `| *|3|1
|d|*, |* 3!|d3 |1| |1|1n!| |*1 16
3|d"1 |3* *||3 T| T1|e |T *7T|1 T|| 30 `
*|3|1 |e e|e d|, '|T| d7 "|T| <|6|1 |||, *||
|3| nd |3 1!|T "|"d d1 |6| 1|7, 7|*! T"|
1* d 1|7 *|3|1 d1 *|3|1 |11|11 |1d |
n *||"T 7|*| d |T|1 T|d |*`||*|1
3|d6 || 1| T1| `| 7 60 ||1d" 71n| dT
|*|d "T |6| 1|7 | |T ||1d" d1 |6| 1|7|
*dT| 1!|*0|3 d<|d |* |*d 3|7 1 1 |6|*
3d dT| T| T1*| 1| <|1| `|n 1|7 17
`| d 1d1 7|*d*| *|3|T d | |6| 7'!d d
11 *|3|T '|T| |1|1n!|1 3!|d3 |1| 763 |d
*|T|1 T1* 7|*| T1 " *|3|n1 *0 "|d|
1||n1 | 71 | "T d |6| 1|71 *7
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|6| 1|7| V nT| |d T1| *|3|1 |1d d* 1
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gvt Avyi inxg
1!1|d| |1|, '|T| |1|1n!|
wkv ewwU ewZgx

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**! *n|1n, ||11|T |*1|7, ||*, d|*3,
3|7`|| 6 *|n1 |11|11 7|d *!||n 60 *|1nd1
`|!*| |Te| ||" T1|

1||n1 <!|*d|3| |6||1n "71 ||31 1|
|1|, "71 d3. |T. T *|Tn|1 6 "|n|1
1d||3d T7| d1 73 dT| nT| T|3| 1e
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n|d1 60 |1" n|T 1|<|

1|7|6 7T e|0Ie|0|1 1!|T dT| |1||d|1 d!
71 7||7 || 36T" T1 n| e
Annual Report 2013
168
CEOs Go Over



strategy
quality services.
Sincerely yours,
Dr. Iqbal Anwar
operations.
challenges.
society at large.
Kvwnbx -01
AvKei nvmb:
|:|<|< |--< <|< =< -:--|<- |-- -<< |-
|<<< -|-. -. | |- <|< |<~- << <|
|<<|< < ||<= =< -- <-<:| <|-- -:
|<|T- || |;|: |<<<-< <||;: <||;< << -|.
<|<|--|< |<--|<|<|< -<<"|< <|<- ||= - |<|": --
:|<| |<<<-< <||;< = --||< ||=< << || << <||:
-< =< |:<-- <| <<|:: -. | ||<= <:<
<||: <||<< |<| ||< <; |-: |<|- |<<<<
--|< |<|-|- :| "|- |<
<| |<<|< < <|<| |<<| |-< :|< -|^| <- <|<. <|
|-<|-: <|": -< <v << |<|< | <| <<| <|<
|<<v-| -:| |< |: |-|< < | <| - <<:
<|< |<<< :|< <|<|<||-<:|< -|<| |<|<-|<< ---|
||< |<| |<|<=: |-< "|- << -< |<|< <||
||= -<|<| - -< -<. |- <|< |- =< -|:|
||: <| |< |-| <<|< =|- << <: o< <<
|<<<< |< ||<| o< <| :|. |:-< ---| |-
||< - |<<|< ||<<| |< |- <|< ||-< =
=<|< <- |-- |T :|< <| |- =--|< <|-<-< |-<|
=| -|: |-< T | |- <|< |<~- <|< :|<
<:=:| < |-- |-|: |-- -| <- |<<< -||<<
<|< <|<|< |<T< - <|<< -< ;
|<<< |-|< :|< |<-< = <- - < -<T |- <|<
|<~- << <| |<<|< - <| || <: <|<
||<=/||<= <:< - ||<- -|<| <|<< |-|< <
|-|< <|<|--|<< = <| <|<=- |-|< -:| |<<<-<
=- |-< |< ||; |-: <|<< = --|- <| <|<=-|
Kvwnbx -02
mvvZ nvmb:
|- <|< |<~- =< |<<- <|| T|= ||:
-|-. -|<| |<|<-|< =<|<| =~ -<-- |<|<
T|= =-|<= |<| =-| < -< |- |< :|: |<: |:-<
<<||< <. -.8 :||< = T|=| =-|< - <|-|-
<< |- <|< ||-< =
:||-<|<| ||<|< -|-< |-|< -|<| - <<
=<- |< -|: < | |- |- <|<
|<~- | |- <|< |<~- =< <-<:|-< |<
:|< |-- <|< <<: |: :|< |-- |< <T| |T -|<
-:: |- || -| - :| <- |<| -<|< -<
||: |-|< =:<; | |-|< <-| < -:| -|
|- <|< |<~- =< = |-|- <-|- |-|< |<-
|<< -< <|<< <|- |- <|< ||-< =< |-<|<
|| ;. -- ; <|< |- <|< |<~-< <-|-< <<|
<| <-| <|< -< |-- << < <|<
Kvwnbx -03
gvKmy`v Avvi:
-|<-| ||<. <|<| -|-< <--|- |T- |-|- <:-||
=<- <-||<| <|<|< <| -:: |< < ; <|<
:|<| |--|<< <|< =< =< ||;| |< :|-< <||;
-|<-|< -|<< <|- |<- |< -<-| ||| |:-|< ||<
<|- <<- |: <|< |<< ||<| <| ||:| -<< <<|
||< |<|-< | ;| |||< -<| |T <|- =< ||
: <|<| |<|*< -|<-| ||< |: -: - -< -|<|
|<|<-|<< <-||: |<| -|<:| <<|< -: <|- |:|<
"- < - :|-< --| < ; <|< -|<-|. |< <-
<|<|- :|< " |- <|< |<~- =|< | :|< ||
<| |-<
<| |<<|< < <- <|< -|<-|< -|^| o< -< - <
|| <|:< |< 1- << -|- -|| |<| ||
1- <<|< < < |<< - <|-|- <<- | <|<
< |< :|< " ||-< - <|<<|< ;|. :|
|<|=-= (||) <| << <|-|- <<- |-. | |-
<<|- <|< "1| <|<|< ||< - -|<-|< |<
< -|;|< :|< |<<|<|<. :|:< |-- | :|< |<
||<< :| :|< " < |- <|< |<~- =< ||
<| | |-<| |- << -|<-| |<| |-|- |- <|<
|<~- =< <|| |: <|:=-| <|< |: |:- -| <
< |- <|< |<~- = <|- =<| || |<|
< <<: -< :| -- =<| < <| <<:| <|- |<
<| |<| <<| <|< -| = <<-< || <|<|< ||- < |
<| <<: - - | = |:| |: |-|< |
<| <<: -|<:| << :| |< | < "< <|<
||<= =< = <-|-< <<| <:=:| ||-< |- <|<
|<~- =< -* <|--| <<- -|<-| ||<
Kvwnbx -04
Bgivb nvmb:
|- <|< |<~- << -- | <| |< -<|-
-|- :- |T -|<| |<|<-|<< |-|- |<|< T|=.
:|< <|<| |T- |-|- =<- |<+|/ |.=-.| ||< ||<=
<-<:|<| T |<|T- <|<||;<|< :|-< :< <||;:
:|< << =<| |:<-- T|| -< -> |< |- <|<
||-< =< <||<< |<|
-<|- -|- <:-|- -|<| || << |<|<= =< |<<
|-< ||<|< <T ||<= <-<:|< <<| -< :|< <-"
wcweGd KgKZvt |-|< |-^< -- |T -> | |-<|
|-|-< |-< <||; <|<||;<| |< |<||*| |<
|T|- |-|-< ||- |<-||= -: | =|T |-|<
||<| |<T <<| o-: <- |-|< |<<|< 1<
|-|-< |<T <-
Bgivb nvmbt |-<| < | . <|-. |-|< <|<|< <"|
|-|<| :| - =T-. <|<| =- |< <|- <| <<:
|<- -| <- |<+| < |.=-.|. |||:- |:|-<: -|;
|*| |<- |T :|< |-:*| =: |<- :< |-|-<
|;|< | << <|: <- :- -| |:|-
wcweGd KgKZvt ||- |<|<= < =-|<= : <- |: <-
"|- - <<-. <<- |< |-|< |< T-< <<|:
Bgivb nvmbt -|<| |<|<-|< |:< < |<|- |T |-|<
=<-|= <| |;|< |~ |<:| < |-|< |< <|-
<|< |T -| << ||<= =< <|| |-|< |<-< -|;
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||= 8. =< -< 8. < <- "|- - <|< <:-|-
-|<| || < |<< - <|-|-< << |-|<
|-|- |<|- << |<|< -<<|< - <|< ;
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- <| |-: <||T
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<|< |<~- << | <|| <| |-<| <T. :|
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<<|T
AvRvnvi Dwb
|<<. -|<| |<|<-|<
||<= =|<<|<| (-- <||)
An Awardee receiving cheque form Dr. Atiur Rahman Governor,
Bangladesh Bank in the Award Giving Ceremony of ESP 2013
GKRb Qvi wPwV
eivei,
cavb wbevnx KgKZv
cvBg evsK dvDkb
ebvbx, XvKv 1213
welq t abev` vcb cm
mvi,
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Annual Report 2013
169
CEOs Go Over



strategy
quality services.
Sincerely yours,
Dr. Iqbal Anwar
operations.
challenges.
society at large.
Kvwnbx -01
AvKei nvmb:
|:|<|< |--< <|< =< -:--|<- |-- -<< |-
|<<< -|-. -. | |- <|< |<~- << <|
|<<|< < ||<= =< -- <-<:| <|-- -:
|<|T- || |;|: |<<<-< <||;: <||;< << -|.
<|<|--|< |<--|<|<|< -<<"|< <|<- ||= - |<|": --
:|<| |<<<-< <||;< = --||< ||=< << || << <||:
-< =< |:<-- <| <<|:: -. | ||<= <:<
<||: <||<< |<| ||< <; |-: |<|- |<<<<
--|< |<|-|- :| "|- |<
<| |<<|< < <|<| |<<| |-< :|< -|^| <- <|<. <|
|-<|-: <|": -< <v << |<|< | <| <<| <|<
|<<v-| -:| |< |: |-|< < | <| - <<:
<|< |<<< :|< <|<|<||-<:|< -|<| |<|<-|<< ---|
||< |<| |<|<=: |-< "|- << -< |<|< <||
||= -<|<| - -< -<. |- <|< |- =< -|:|
||: <| |< |-| <<|< =|- << <: o< <<
|<<<< |< ||<| o< <| :|. |:-< ---| |-
||< - |<<|< ||<<| |< |- <|< ||-< =
=<|< <- |-- |T :|< <| |- =--|< <|-<-< |-<|
=| -|: |-< T | |- <|< |<~- <|< :|<
<:=:| < |-- |-|: |-- -| <- |<<< -||<<
<|< <|<|< |<T< - <|<< -< ;
|<<< |-|< :|< |<-< = <- - < -<T |- <|<
|<~- << <| |<<|< - <| || <: <|<
||<=/||<= <:< - ||<- -|<| <|<< |-|< <
|-|< <|<|--|<< = <| <|<=- |-|< -:| |<<<-<
=- |-< |< ||; |-: <|<< = --|- <| <|<=-|
Kvwnbx -02
mvvZ nvmb:
|- <|< |<~- =< |<<- <|| T|= ||:
-|-. -|<| |<|<-|< =<|<| =~ -<-- |<|<
T|= =-|<= |<| =-| < -< |- |< :|: |<: |:-<
<<||< <. -.8 :||< = T|=| =-|< - <|-|-
<< |- <|< ||-< =
:||-<|<| ||<|< -|-< |-|< -|<| - <<
=<- |< -|: < | |- |- <|<
|<~- | |- <|< |<~- =< <-<:|-< |<
:|< |-- <|< <<: |: :|< |-- |< <T| |T -|<
-:: |- || -| - :| <- |<| -<|< -<
||: |-|< =:<; | |-|< <-| < -:| -|
|- <|< |<~- =< = |-|- <-|- |-|< |<-
|<< -< <|<< <|- |- <|< ||-< =< |-<|<
|| ;. -- ; <|< |- <|< |<~-< <-|-< <<|
<| <-| <|< -< |-- << < <|<
Kvwnbx -03
gvKmy`v Avvi:
-|<-| ||<. <|<| -|-< <--|- |T- |-|- <:-||
=<- <-||<| <|<|< <| -:: |< < ; <|<
:|<| |--|<< <|< =< =< ||;| |< :|-< <||;
-|<-|< -|<< <|- |<- |< -<-| ||| |:-|< ||<
<|- <<- |: <|< |<< ||<| <| ||:| -<< <<|
||< |<|-< | ;| |||< -<| |T <|- =< ||
: <|<| |<|*< -|<-| ||< |: -: - -< -|<|
|<|<-|<< <-||: |<| -|<:| <<|< -: <|- |:|<
"- < - :|-< --| < ; <|< -|<-|. |< <-
<|<|- :|< " |- <|< |<~- =|< | :|< ||
<| |-<
<| |<<|< < <- <|< -|<-|< -|^| o< -< - <
|| <|:< |< 1- << -|- -|| |<| ||
1- <<|< < < |<< - <|-|- <<- | <|<
< |< :|< " ||-< - <|<<|< ;|. :|
|<|=-= (||) <| << <|-|- <<- |-. | |-
<<|- <|< "1| <|<|< ||< - -|<-|< |<
< -|;|< :|< |<<|<|<. :|:< |-- | :|< |<
||<< :| :|< " < |- <|< |<~- =< ||
<| | |-<| |- << -|<-| |<| |-|- |- <|<
|<~- =< <|| |: <|:=-| <|< |: |:- -| <
< |- <|< |<~- = <|- =<| || |<|
< <<: -< :| -- =<| < <| <<:| <|- |<
<| |<| <<| <|< -| = <<-< || <|<|< ||- < |
<| <<: - - | = |:| |: |-|< |
<| <<: -|<:| << :| |< | < "< <|<
||<= =< = <-|-< <<| <:=:| ||-< |- <|<
|<~- =< -* <|--| <<- -|<-| ||<
Kvwnbx -04
Bgivb nvmb:
|- <|< |<~- << -- | <| |< -<|-
-|- :- |T -|<| |<|<-|<< |-|- |<|< T|=.
:|< <|<| |T- |-|- =<- |<+|/ |.=-.| ||< ||<=
<-<:|<| T |<|T- <|<||;<|< :|-< :< <||;:
:|< << =<| |:<-- T|| -< -> |< |- <|<
||-< =< <||<< |<|
-<|- -|- <:-|- -|<| || << |<|<= =< |<<
|-< ||<|< <T ||<= <-<:|< <<| -< :|< <-"
wcweGd KgKZvt |-|< |-^< -- |T -> | |-<|
|-|-< |-< <||; <|<||;<| |< |<||*| |<
|T|- |-|-< ||- |<-||= -: | =|T |-|<
||<| |<T <<| o-: <- |-|< |<<|< 1<
|-|-< |<T <-
Bgivb nvmbt |-<| < | . <|-. |-|< <|<|< <"|
|-|<| :| - =T-. <|<| =- |< <|- <| <<:
|<- -| <- |<+| < |.=-.|. |||:- |:|-<: -|;
|*| |<- |T :|< |-:*| =: |<- :< |-|-<
|;|< | << <|: <- :- -| |:|-
wcweGd KgKZvt ||- |<|<= < =-|<= : <- |: <-
"|- - <<-. <<- |< |-|< |< T-< <<|:
Bgivb nvmbt -|<| |<|<-|< |:< < |<|- |T |-|<
=<-|= <| |;|< |~ |<:| < |-|< |< <|-
<|< |T -| << ||<= =< <|| |-|< |<-< -|;
|<< -< <| |<<|< |<|- <|-< |-< |;|< |<|
--|<|| -. <|- |<- |< |<-< -|<:|< T <|
|-|< . - <|< <|| "|- =-|<= |-| <||<<
||= 8. =< -< 8. < <- "|- - <|< <:-|-
-|<| || < |<< - <|-|-< << |-|<
|-|- |<|- << |<|< -<<|< - <|< ;
||<|< < | -|<| |<|<-|< |-|- |<| |<<
- <| |-: <||T
|-|< = :|< |T- |-|< <|<|--|<< -|<| |< |-
<|< |<~- << | <|| <| |-<| <T. :|
||- |- <|< < |- <|< |<~-< <:=:| =|-
<<|T
AvRvnvi Dwb
|<<. -|<| |<|<-|<
||<= =|<<|<| (-- <||)
evev-gvqi mv_ mvvZ nvmb
gv: AvKei nvmb
eZgvb cvBg evsK wjwgUW gvbRgU UBbx Awdmvi c` KgiZ
Case Study on Education Support Programme
GKRb Qvi wPwV
eivei,
cavb wbevnx KgKZv
cvBg evsK dvDkb
ebvbx, XvKv 1213
welq t abev` vcb cm
mvi,
"|T|1 01 e|| 7| 7'!|7 1* |Te d 1|||1 *||n 3|
|1 |" *|, 1|1| 3|1 dT| e| *|1 |6Tn1
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1|7|6 7T e|0Ie|0|1 1!|T dT| |1||d|1 d!
71 7||7 || 36T" T1 n| e
Annual Report 2013
170
CEOs Go Over



strategy
quality services.
Sincerely yours,
Dr. Iqbal Anwar
operations.
challenges.
society at large.
Kvwnbx -01
AvKei nvmb:
|:|<|< |--< <|< =< -:--|<- |-- -<< |-
|<<< -|-. -. | |- <|< |<~- << <|
|<<|< < ||<= =< -- <-<:| <|-- -:
|<|T- || |;|: |<<<-< <||;: <||;< << -|.
<|<|--|< |<--|<|<|< -<<"|< <|<- ||= - |<|": --
:|<| |<<<-< <||;< = --||< ||=< << || << <||:
-< =< |:<-- <| <<|:: -. | ||<= <:<
<||: <||<< |<| ||< <; |-: |<|- |<<<<
--|< |<|-|- :| "|- |<
<| |<<|< < <|<| |<<| |-< :|< -|^| <- <|<. <|
|-<|-: <|": -< <v << |<|< | <| <<| <|<
|<<v-| -:| |< |: |-|< < | <| - <<:
<|< |<<< :|< <|<|<||-<:|< -|<| |<|<-|<< ---|
||< |<| |<|<=: |-< "|- << -< |<|< <||
||= -<|<| - -< -<. |- <|< |- =< -|:|
||: <| |< |-| <<|< =|- << <: o< <<
|<<<< |< ||<| o< <| :|. |:-< ---| |-
||< - |<<|< ||<<| |< |- <|< ||-< =
=<|< <- |-- |T :|< <| |- =--|< <|-<-< |-<|
=| -|: |-< T | |- <|< |<~- <|< :|<
<:=:| < |-- |-|: |-- -| <- |<<< -||<<
<|< <|<|< |<T< - <|<< -< ;
|<<< |-|< :|< |<-< = <- - < -<T |- <|<
|<~- << <| |<<|< - <| || <: <|<
||<=/||<= <:< - ||<- -|<| <|<< |-|< <
|-|< <|<|--|<< = <| <|<=- |-|< -:| |<<<-<
=- |-< |< ||; |-: <|<< = --|- <| <|<=-|
Kvwnbx -02
mvvZ nvmb:
|- <|< |<~- =< |<<- <|| T|= ||:
-|-. -|<| |<|<-|< =<|<| =~ -<-- |<|<
T|= =-|<= |<| =-| < -< |- |< :|: |<: |:-<
<<||< <. -.8 :||< = T|=| =-|< - <|-|-
<< |- <|< ||-< =
:||-<|<| ||<|< -|-< |-|< -|<| - <<
=<- |< -|: < | |- |- <|<
|<~- | |- <|< |<~- =< <-<:|-< |<
:|< |-- <|< <<: |: :|< |-- |< <T| |T -|<
-:: |- || -| - :| <- |<| -<|< -<
||: |-|< =:<; | |-|< <-| < -:| -|
|- <|< |<~- =< = |-|- <-|- |-|< |<-
|<< -< <|<< <|- |- <|< ||-< =< |-<|<
|| ;. -- ; <|< |- <|< |<~-< <-|-< <<|
<| <-| <|< -< |-- << < <|<
Kvwnbx -03
gvKmy`v Avvi:
-|<-| ||<. <|<| -|-< <--|- |T- |-|- <:-||
=<- <-||<| <|<|< <| -:: |< < ; <|<
:|<| |--|<< <|< =< =< ||;| |< :|-< <||;
-|<-|< -|<< <|- |<- |< -<-| ||| |:-|< ||<
<|- <<- |: <|< |<< ||<| <| ||:| -<< <<|
||< |<|-< | ;| |||< -<| |T <|- =< ||
: <|<| |<|*< -|<-| ||< |: -: - -< -|<|
|<|<-|<< <-||: |<| -|<:| <<|< -: <|- |:|<
"- < - :|-< --| < ; <|< -|<-|. |< <-
<|<|- :|< " |- <|< |<~- =|< | :|< ||
<| |-<
<| |<<|< < <- <|< -|<-|< -|^| o< -< - <
|| <|:< |< 1- << -|- -|| |<| ||
1- <<|< < < |<< - <|-|- <<- | <|<
< |< :|< " ||-< - <|<<|< ;|. :|
|<|=-= (||) <| << <|-|- <<- |-. | |-
<<|- <|< "1| <|<|< ||< - -|<-|< |<
< -|;|< :|< |<<|<|<. :|:< |-- | :|< |<
||<< :| :|< " < |- <|< |<~- =< ||
<| | |-<| |- << -|<-| |<| |-|- |- <|<
|<~- =< <|| |: <|:=-| <|< |: |:- -| <
< |- <|< |<~- = <|- =<| || |<|
< <<: -< :| -- =<| < <| <<:| <|- |<
<| |<| <<| <|< -| = <<-< || <|<|< ||- < |
<| <<: - - | = |:| |: |-|< |
<| <<: -|<:| << :| |< | < "< <|<
||<= =< = <-|-< <<| <:=:| ||-< |- <|<
|<~- =< -* <|--| <<- -|<-| ||<
Kvwnbx -04
Bgivb nvmb:
|- <|< |<~- << -- | <| |< -<|-
-|- :- |T -|<| |<|<-|<< |-|- |<|< T|=.
:|< <|<| |T- |-|- =<- |<+|/ |.=-.| ||< ||<=
<-<:|<| T |<|T- <|<||;<|< :|-< :< <||;:
:|< << =<| |:<-- T|| -< -> |< |- <|<
||-< =< <||<< |<|
-<|- -|- <:-|- -|<| || << |<|<= =< |<<
|-< ||<|< <T ||<= <-<:|< <<| -< :|< <-"
wcweGd KgKZvt |-|< |-^< -- |T -> | |-<|
|-|-< |-< <||; <|<||;<| |< |<||*| |<
|T|- |-|-< ||- |<-||= -: | =|T |-|<
||<| |<T <<| o-: <- |-|< |<<|< 1<
|-|-< |<T <-
Bgivb nvmbt |-<| < | . <|-. |-|< <|<|< <"|
|-|<| :| - =T-. <|<| =- |< <|- <| <<:
|<- -| <- |<+| < |.=-.|. |||:- |:|-<: -|;
|*| |<- |T :|< |-:*| =: |<- :< |-|-<
|;|< | << <|: <- :- -| |:|-
wcweGd KgKZvt ||- |<|<= < =-|<= : <- |: <-
"|- - <<-. <<- |< |-|< |< T-< <<|:
Bgivb nvmbt -|<| |<|<-|< |:< < |<|- |T |-|<
=<-|= <| |;|< |~ |<:| < |-|< |< <|-
<|< |T -| << ||<= =< <|| |-|< |<-< -|;
|<< -< <| |<<|< |<|- <|-< |-< |;|< |<|
--|<|| -. <|- |<- |< |<-< -|<:|< T <|
|-|< . - <|< <|| "|- =-|<= |-| <||<<
||= 8. =< -< 8. < <- "|- - <|< <:-|-
-|<| || < |<< - <|-|-< << |-|<
|-|- |<|- << |<|< -<<|< - <|< ;
||<|< < | -|<| |<|<-|< |-|- |<| |<<
- <| |-: <||T
|-|< = :|< |T- |-|< <|<|--|<< -|<| |< |-
<|< |<~- << | <|| <| |-<| <T. :|
||- |- <|< < |- <|< |<~-< <:=:| =|-
<<|T
AvRvnvi Dwb
|<<. -|<| |<|<-|<
||<= =|<<|<| (-- <||)
gvKmy`v Avvi, eZgvb Iqvb evsK KgiZ
Bgivb nvmb, cfvlK, XvKv wmwU KjR
GKRb Qvi wPwV
eivei,
cavb wbevnx KgKZv
cvBg evsK dvDkb
ebvbx, XvKv 1213
welq t abev` vcb cm
mvi,
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|1 |" *|, 1|1| 3|1 dT| e| *|1 |6Tn1
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3|d"1 |3* *||3 T| T1|e |T *7T|1 T|| 30 `
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1* d 1|7 *|3|1 d1 *|3|1 |11|11 |1d |
n *||"T 7|*| d |T|1 T|d |*`||*|1
3|d6 || 1| T1| `| 7 60 ||1d" 71n| dT
|*|d "T |6| 1|7 | |T ||1d" d1 |6| 1|7|
*dT| 1!|*0|3 d<|d |* |*d 3|7 1 1 |6|*
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*|T|1 T1* 7|*| T1 " *|3|n1 *0 "|d|
1||n1 | 71 | "T d |6| 1|71 *7
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|6| 1|7| V nT| |d T1| *|3|1 |1d d* 1
"T n|| T1|e d |6| 1|7| *|3|1 3* *n|1nn1T
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nab
gvt Avyi inxg
1!1|d| |1|, '|T| |1|1n!|
wkv ewwU ewZgx

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T7 1||1 3|!3 e|0Ie|0|n1 ||11||1T *||"T 6

T* 3|1| 6 *n|1nn1 |d1||d T1| d* *|n1
n| *"! `|||1|e| T1|1 7`| "|T

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1|7|6 7T e|0Ie|0|1 1!|T dT| |1||d|1 d!
71 7||7 || 36T" T1 n| e
Annual Report 2013
171
CEOs Go Over



strategy
quality services.
Sincerely yours,
Dr. Iqbal Anwar
operations.
challenges.
society at large.
Kvwnbx -01
AvKei nvmb:
|:|<|< |--< <|< =< -:--|<- |-- -<< |-
|<<< -|-. -. | |- <|< |<~- << <|
|<<|< < ||<= =< -- <-<:| <|-- -:
|<|T- || |;|: |<<<-< <||;: <||;< << -|.
<|<|--|< |<--|<|<|< -<<"|< <|<- ||= - |<|": --
:|<| |<<<-< <||;< = --||< ||=< << || << <||:
-< =< |:<-- <| <<|:: -. | ||<= <:<
<||: <||<< |<| ||< <; |-: |<|- |<<<<
--|< |<|-|- :| "|- |<
<| |<<|< < <|<| |<<| |-< :|< -|^| <- <|<. <|
|-<|-: <|": -< <v << |<|< | <| <<| <|<
|<<v-| -:| |< |: |-|< < | <| - <<:
<|< |<<< :|< <|<|<||-<:|< -|<| |<|<-|<< ---|
||< |<| |<|<=: |-< "|- << -< |<|< <||
||= -<|<| - -< -<. |- <|< |- =< -|:|
||: <| |< |-| <<|< =|- << <: o< <<
|<<<< |< ||<| o< <| :|. |:-< ---| |-
||< - |<<|< ||<<| |< |- <|< ||-< =
=<|< <- |-- |T :|< <| |- =--|< <|-<-< |-<|
=| -|: |-< T | |- <|< |<~- <|< :|<
<:=:| < |-- |-|: |-- -| <- |<<< -||<<
<|< <|<|< |<T< - <|<< -< ;
|<<< |-|< :|< |<-< = <- - < -<T |- <|<
|<~- << <| |<<|< - <| || <: <|<
||<=/||<= <:< - ||<- -|<| <|<< |-|< <
|-|< <|<|--|<< = <| <|<=- |-|< -:| |<<<-<
=- |-< |< ||; |-: <|<< = --|- <| <|<=-|
Kvwnbx -02
mvvZ nvmb:
|- <|< |<~- =< |<<- <|| T|= ||:
-|-. -|<| |<|<-|< =<|<| =~ -<-- |<|<
T|= =-|<= |<| =-| < -< |- |< :|: |<: |:-<
<<||< <. -.8 :||< = T|=| =-|< - <|-|-
<< |- <|< ||-< =
:||-<|<| ||<|< -|-< |-|< -|<| - <<
=<- |< -|: < | |- |- <|<
|<~- | |- <|< |<~- =< <-<:|-< |<
:|< |-- <|< <<: |: :|< |-- |< <T| |T -|<
-:: |- || -| - :| <- |<| -<|< -<
||: |-|< =:<; | |-|< <-| < -:| -|
|- <|< |<~- =< = |-|- <-|- |-|< |<-
|<< -< <|<< <|- |- <|< ||-< =< |-<|<
|| ;. -- ; <|< |- <|< |<~-< <-|-< <<|
<| <-| <|< -< |-- << < <|<
Kvwnbx -03
gvKmy`v Avvi:
-|<-| ||<. <|<| -|-< <--|- |T- |-|- <:-||
=<- <-||<| <|<|< <| -:: |< < ; <|<
:|<| |--|<< <|< =< =< ||;| |< :|-< <||;
-|<-|< -|<< <|- |<- |< -<-| ||| |:-|< ||<
<|- <<- |: <|< |<< ||<| <| ||:| -<< <<|
||< |<|-< | ;| |||< -<| |T <|- =< ||
: <|<| |<|*< -|<-| ||< |: -: - -< -|<|
|<|<-|<< <-||: |<| -|<:| <<|< -: <|- |:|<
"- < - :|-< --| < ; <|< -|<-|. |< <-
<|<|- :|< " |- <|< |<~- =|< | :|< ||
<| |-<
<| |<<|< < <- <|< -|<-|< -|^| o< -< - <
|| <|:< |< 1- << -|- -|| |<| ||
1- <<|< < < |<< - <|-|- <<- | <|<
< |< :|< " ||-< - <|<<|< ;|. :|
|<|=-= (||) <| << <|-|- <<- |-. | |-
<<|- <|< "1| <|<|< ||< - -|<-|< |<
< -|;|< :|< |<<|<|<. :|:< |-- | :|< |<
||<< :| :|< " < |- <|< |<~- =< ||
<| | |-<| |- << -|<-| |<| |-|- |- <|<
|<~- =< <|| |: <|:=-| <|< |: |:- -| <
< |- <|< |<~- = <|- =<| || |<|
< <<: -< :| -- =<| < <| <<:| <|- |<
<| |<| <<| <|< -| = <<-< || <|<|< ||- < |
<| <<: - - | = |:| |: |-|< |
<| <<: -|<:| << :| |< | < "< <|<
||<= =< = <-|-< <<| <:=:| ||-< |- <|<
|<~- =< -* <|--| <<- -|<-| ||<
Kvwnbx -04
Bgivb nvmb:
|- <|< |<~- << -- | <| |< -<|-
-|- :- |T -|<| |<|<-|<< |-|- |<|< T|=.
:|< <|<| |T- |-|- =<- |<+|/ |.=-.| ||< ||<=
<-<:|<| T |<|T- <|<||;<|< :|-< :< <||;:
:|< << =<| |:<-- T|| -< -> |< |- <|<
||-< =< <||<< |<|
-<|- -|- <:-|- -|<| || << |<|<= =< |<<
|-< ||<|< <T ||<= <-<:|< <<| -< :|< <-"
wcweGd KgKZvt |-|< |-^< -- |T -> | |-<|
|-|-< |-< <||; <|<||;<| |< |<||*| |<
|T|- |-|-< ||- |<-||= -: | =|T |-|<
||<| |<T <<| o-: <- |-|< |<<|< 1<
|-|-< |<T <-
Bgivb nvmbt |-<| < | . <|-. |-|< <|<|< <"|
|-|<| :| - =T-. <|<| =- |< <|- <| <<:
|<- -| <- |<+| < |.=-.|. |||:- |:|-<: -|;
|*| |<- |T :|< |-:*| =: |<- :< |-|-<
|;|< | << <|: <- :- -| |:|-
wcweGd KgKZvt ||- |<|<= < =-|<= : <- |: <-
"|- - <<-. <<- |< |-|< |< T-< <<|:
Bgivb nvmbt -|<| |<|<-|< |:< < |<|- |T |-|<
=<-|= <| |;|< |~ |<:| < |-|< |< <|-
<|< |T -| << ||<= =< <|| |-|< |<-< -|;
|<< -< <| |<<|< |<|- <|-< |-< |;|< |<|
--|<|| -. <|- |<- |< |<-< -|<:|< T <|
|-|< . - <|< <|| "|- =-|<= |-| <||<<
||= 8. =< -< 8. < <- "|- - <|< <:-|-
-|<| || < |<< - <|-|-< << |-|<
|-|- |<|- << |<|< -<<|< - <|< ;
||<|< < | -|<| |<|<-|< |-|- |<| |<<
- <| |-: <||T
|-|< = :|< |T- |-|< <|<|--|<< -|<| |< |-
<|< |<~- << | <|| <| |-<| <T. :|
||- |- <|< < |- <|< |<~-< <:=:| =|-
<<|T
AvRvnvi Dwb
|<<. -|<| |<|<-|<
||<= =|<<|<| (-- <||)
GKRb Qvi wPwV
eivei,
cavb wbevnx KgKZv
cvBg evsK dvDkb
ebvbx, XvKv 1213
welq t abev` vcb cm
mvi,
"|T|1 01 e|| 7| 7'!|7 1* |Te d 1|||1 *||n 3|
|1 |" *|, 1|1| 3|1 dT| e| *|1 |6Tn1
7|*| *|3|T '|T| |1|1n!| ` |d `| *|3|1
|d|*, |* 3!|d3 |1| |1|1n!| |*1 16
3|d"1 |3* *||3 T| T1|e |T *7T|1 T|| 30 `
*|3|1 |e e|e d|, '|T| d7 "|T| <|6|1 |||, *||
|3| nd |3 1!|T "|"d d1 |6| 1|7, 7|*! T"|
1* d 1|7 *|3|1 d1 *|3|1 |11|11 |1d |
n *||"T 7|*| d |T|1 T|d |*`||*|1
3|d6 || 1| T1| `| 7 60 ||1d" 71n| dT
|*|d "T |6| 1|7 | |T ||1d" d1 |6| 1|7|
*dT| 1!|*0|3 d<|d |* |*d 3|7 1 1 |6|*
3d dT| T| T1*| 1| <|1| `|n 1|7 17
`| d 1d1 7|*d*| *|3|T d | |6| 7'!d d
11 *|3|T '|T| |1|1n!|1 3!|d3 |1| 763 |d
*|T|1 T1* 7|*| T1 " *|3|n1 *0 "|d|
1||n1 | 71 | "T d |6| 1|71 *7
e|0Ie|0| 1e 1!|*03|3 d |6| 1|7| |dn
*|3|1 3* d n1 *7<! e|0Ie|0|1 |1d | |ne
|6| 1|7| V nT| |d T1| *|3|1 |1d d* 1
"T n|| T1|e d |6| 1|7| *|3|1 3* *n|1nn1T
1! e |n* |1| |3T| |d T1e *| *||3 7|T
nab
gvt Avyi inxg
1!1|d| |1|, '|T| |1|1n!|
wkv ewwU ewZgx

|* |*d 3|7 *1*1 e|0Ie|0|1| *|n1 |6|*
*|n1 dT||3T 1|, T|7 "|"1 *1|d *!||n
< T1* d1 3|!3 e|0Ie|0|n1T ||

T7 1||1 3|!3 e|0Ie|0|n1 ||11||1T *||"T 6

T* 3|1| 6 *n|1nn1 |d1||d T1| d* *|n1
n| *"! `|||1|e| T1|1 7`| "|T

|* 1e1 e|0Ie|0| |d1||d T36 'u 3|| |6|"|
|d1||d |T| T1|

1||n1 71 | "T *|1nd 0 3| d1
7T | "T d |6| 1|71 d! e|0Ie|0| |d1|||*
nqQ|

||1d" d1 dT| ||1 1e `|1 3|!3 e|0Ie|0|n1
|1|d |d| *"! 716 T1|

|* 1e1 d| 71||T |||1* T36 -| |0T|
"|T *|1nd 0 3| n6|1 d!

**! *n|1n, ||11|T |*1|7, ||*, d|*3,
3|7`|| 6 *|n1 |11|11 7|d *!||n 60 *|1nd1
`|!*| |Te| ||" T1|

1||n1 <!|*d|3| |6||1n "71 ||31 1|
|1|, "71 d3. |T. T *|Tn|1 6 "|n|1
1d||3d T7| d1 73 dT| nT| T|3| 1e
`|n1 |d|1 **|1|d e|0Ie|0| |d1||d1 T|| 7||1
|1 7'!d T1|

1|7 |6 e|0Ie|0|1| <|| " |d| 6
||1d"I||1d d |d| 1|6| || T1 ||T|1
n|d1 60 |1" n|T 1|<|

1|7|6 7T e|0Ie|0|1 1!|T dT| |1||d|1 d!
71 7||7 || 36T" T1 n| e
Annual Report 2013
172
CEOs Go Over



strategy
quality services.
Sincerely yours,
Dr. Iqbal Anwar
operations.
challenges.
society at large.
Kvwnbx -01
AvKei nvmb:
|:|<|< |--< <|< =< -:--|<- |-- -<< |-
|<<< -|-. -. | |- <|< |<~- << <|
|<<|< < ||<= =< -- <-<:| <|-- -:
|<|T- || |;|: |<<<-< <||;: <||;< << -|.
<|<|--|< |<--|<|<|< -<<"|< <|<- ||= - |<|": --
:|<| |<<<-< <||;< = --||< ||=< << || << <||:
-< =< |:<-- <| <<|:: -. | ||<= <:<
<||: <||<< |<| ||< <; |-: |<|- |<<<<
--|< |<|-|- :| "|- |<
<| |<<|< < <|<| |<<| |-< :|< -|^| <- <|<. <|
|-<|-: <|": -< <v << |<|< | <| <<| <|<
|<<v-| -:| |< |: |-|< < | <| - <<:
<|< |<<< :|< <|<|<||-<:|< -|<| |<|<-|<< ---|
||< |<| |<|<=: |-< "|- << -< |<|< <||
||= -<|<| - -< -<. |- <|< |- =< -|:|
||: <| |< |-| <<|< =|- << <: o< <<
|<<<< |< ||<| o< <| :|. |:-< ---| |-
||< - |<<|< ||<<| |< |- <|< ||-< =
=<|< <- |-- |T :|< <| |- =--|< <|-<-< |-<|
=| -|: |-< T | |- <|< |<~- <|< :|<
<:=:| < |-- |-|: |-- -| <- |<<< -||<<
<|< <|<|< |<T< - <|<< -< ;
|<<< |-|< :|< |<-< = <- - < -<T |- <|<
|<~- << <| |<<|< - <| || <: <|<
||<=/||<= <:< - ||<- -|<| <|<< |-|< <
|-|< <|<|--|<< = <| <|<=- |-|< -:| |<<<-<
=- |-< |< ||; |-: <|<< = --|- <| <|<=-|
Kvwnbx -02
mvvZ nvmb:
|- <|< |<~- =< |<<- <|| T|= ||:
-|-. -|<| |<|<-|< =<|<| =~ -<-- |<|<
T|= =-|<= |<| =-| < -< |- |< :|: |<: |:-<
<<||< <. -.8 :||< = T|=| =-|< - <|-|-
<< |- <|< ||-< =
:||-<|<| ||<|< -|-< |-|< -|<| - <<
=<- |< -|: < | |- |- <|<
|<~- | |- <|< |<~- =< <-<:|-< |<
:|< |-- <|< <<: |: :|< |-- |< <T| |T -|<
-:: |- || -| - :| <- |<| -<|< -<
||: |-|< =:<; | |-|< <-| < -:| -|
|- <|< |<~- =< = |-|- <-|- |-|< |<-
|<< -< <|<< <|- |- <|< ||-< =< |-<|<
|| ;. -- ; <|< |- <|< |<~-< <-|-< <<|
<| <-| <|< -< |-- << < <|<
Kvwnbx -03
gvKmy`v Avvi:
-|<-| ||<. <|<| -|-< <--|- |T- |-|- <:-||
=<- <-||<| <|<|< <| -:: |< < ; <|<
:|<| |--|<< <|< =< =< ||;| |< :|-< <||;
-|<-|< -|<< <|- |<- |< -<-| ||| |:-|< ||<
<|- <<- |: <|< |<< ||<| <| ||:| -<< <<|
||< |<|-< | ;| |||< -<| |T <|- =< ||
: <|<| |<|*< -|<-| ||< |: -: - -< -|<|
|<|<-|<< <-||: |<| -|<:| <<|< -: <|- |:|<
"- < - :|-< --| < ; <|< -|<-|. |< <-
<|<|- :|< " |- <|< |<~- =|< | :|< ||
<| |-<
<| |<<|< < <- <|< -|<-|< -|^| o< -< - <
|| <|:< |< 1- << -|- -|| |<| ||
1- <<|< < < |<< - <|-|- <<- | <|<
< |< :|< " ||-< - <|<<|< ;|. :|
|<|=-= (||) <| << <|-|- <<- |-. | |-
<<|- <|< "1| <|<|< ||< - -|<-|< |<
< -|;|< :|< |<<|<|<. :|:< |-- | :|< |<
||<< :| :|< " < |- <|< |<~- =< ||
<| | |-<| |- << -|<-| |<| |-|- |- <|<
|<~- =< <|| |: <|:=-| <|< |: |:- -| <
< |- <|< |<~- = <|- =<| || |<|
< <<: -< :| -- =<| < <| <<:| <|- |<
<| |<| <<| <|< -| = <<-< || <|<|< ||- < |
<| <<: - - | = |:| |: |-|< |
<| <<: -|<:| << :| |< | < "< <|<
||<= =< = <-|-< <<| <:=:| ||-< |- <|<
|<~- =< -* <|--| <<- -|<-| ||<
Kvwnbx -04
Bgivb nvmb:
|- <|< |<~- << -- | <| |< -<|-
-|- :- |T -|<| |<|<-|<< |-|- |<|< T|=.
:|< <|<| |T- |-|- =<- |<+|/ |.=-.| ||< ||<=
<-<:|<| T |<|T- <|<||;<|< :|-< :< <||;:
:|< << =<| |:<-- T|| -< -> |< |- <|<
||-< =< <||<< |<|
-<|- -|- <:-|- -|<| || << |<|<= =< |<<
|-< ||<|< <T ||<= <-<:|< <<| -< :|< <-"
wcweGd KgKZvt |-|< |-^< -- |T -> | |-<|
|-|-< |-< <||; <|<||;<| |< |<||*| |<
|T|- |-|-< ||- |<-||= -: | =|T |-|<
||<| |<T <<| o-: <- |-|< |<<|< 1<
|-|-< |<T <-
Bgivb nvmbt |-<| < | . <|-. |-|< <|<|< <"|
|-|<| :| - =T-. <|<| =- |< <|- <| <<:
|<- -| <- |<+| < |.=-.|. |||:- |:|-<: -|;
|*| |<- |T :|< |-:*| =: |<- :< |-|-<
|;|< | << <|: <- :- -| |:|-
wcweGd KgKZvt ||- |<|<= < =-|<= : <- |: <-
"|- - <<-. <<- |< |-|< |< T-< <<|:
Bgivb nvmbt -|<| |<|<-|< |:< < |<|- |T |-|<
=<-|= <| |;|< |~ |<:| < |-|< |< <|-
<|< |T -| << ||<= =< <|| |-|< |<-< -|;
|<< -< <| |<<|< |<|- <|-< |-< |;|< |<|
--|<|| -. <|- |<- |< |<-< -|<:|< T <|
|-|< . - <|< <|| "|- =-|<= |-| <||<<
||= 8. =< -< 8. < <- "|- - <|< <:-|-
-|<| || < |<< - <|-|-< << |-|<
|-|- |<|- << |<|< -<<|< - <|< ;
||<|< < | -|<| |<|<-|< |-|- |<| |<<
- <| |-: <||T
|-|< = :|< |T- |-|< <|<|--|<< -|<| |< |-
<|< |<~- << | <|| <| |-<| <T. :|
||- |- <|< < |- <|< |<~-< <:=:| =|-
<<|T
AvRvnvi Dwb
|<<. -|<| |<|<-|<
||<= =|<<|<| (-- <||)
Prof. Abdullah Abu Sayeed in the Award Giving Ceremony
of ESP 2013
Meeting of the Advisory Committee of ESP
The composition of the Advisory Committee is as follows:
Professor M Q K Talukder, Chairman, Centre for Women
and Child Health & Chairperson, Bangladesh
Breastfeeding Foundation: Chairman
Professor Jamilur Reza Choudhury, Educationalist:
Member
Fr. Benjamin Costa, Educationalist: Member
The Prime Bank Foundation is honoured to have them in
the Advisory Committee for its Education Support
Programme. Using their long, diverse experience and
expertise, the Advisory Committee every year develops
an inimitable set of selection criteria to pick out the most
deserving applicants without being biased.
The final approval of the students recommended by the
AC is given by Foundation Management Committee
(FMC).
GKRb Qvi wPwV
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Annual Report 2013
173
CEOs Go Over
As used here, "Impossible includes the changes in the



strategy
quality services.
Sincerely yours,
Dr. Iqbal Anwar
operations.
challenges.
society at large.
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Annual Report 2013
174
The Amount paid out monthly in the form of stipend for ESP Awardees is shown in the following Graph
Rate of Stipend Per Batch Per Month Per Student
Rate of Stipend
2500
2000
1500
1000
500
0
2400
1500
1
7
01
2
2
1
9
81
9
6
2
0
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1800
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2000
1800
2000
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I recently spoke to both sections of Class 3 at my English
medium school in Uttara, Dhaka on the subject of
archeology as part of their history lesson. Asking questions
orally, showing illustrations from the Eyewitness book from
our school library, and sharing my own experiences as an
amateur archeologist in the U.S., I used the schools
dynamic, interactive approach to teaching. Before visiting
the first class, I had misgivings that Class 3 students might
have trouble comprehending my English and subject
matter. I was pleasantly surprised. Both groups were
vibrant and responsive, raising hands and venturing
answers, delighting in the new ideas and pictures. One
student couldnt wait to stand and share her experience
finding an ancient burial site in Bangladesh. A few could
answer the complex question why archeologists had to
record the depth of artifacts they uncovered.
My positive experience with these students, most of whom
had attended Prime Campus since Nursery or
Kindergarten, was a reflection on our interactive,
child-centered, holistic education. Its working! I thought
to myself. Students were developing their language,
cognitive, and imaginative capabilities, interest in learning,
and self-confidence under a programme that was
supportive and relatively stress-free.
From its founding in Uttara, Dhaka in 2008 and including its
first branch begun in Mirpur in 2012, this CSR project of
Prime Bank Foundation has offered pre-school and primary
grade English medium education in the sense of the words
original Latin derivation educere, to bring out (as
something latent). Starting with the premise that children
enter school with immense linguistic, conceptual, and
creative capacities and a wealth of experiential-based
knowledge, we make it our aim to bring out and build on
these endowments. At the same time, believing that
children are naturally eager to learn, we do not unduly
pressure our students.
Instead of often memorising information from the board or
textbooks for re-producing on regularly scheduled tests and
exams, Prime Campus students are often engaged by the
teacher with oral questions, including ones about their own
experience, Have you ever seen a crocodile? and Do you
know what air is? are two examples from Class 3s
Literature and Science lessons this very week I am writing.
Students also respond to drawings on the board, pictures in
the textbooks, and objects seen and held in the classroom.
They take part in small group activities, make drawings and
charts, and do hands-on science projects. They invent
conclusions to stories, teach each other from the board,
and make up and solve their own math problems.
Encouraged to reflect and draw on their personal
experience, they are allowed to share their own
ideasmaybe even to interrupt with a comment not directly
related to the questionin class discussions. They
participate in extra-curricular activities such as visiting the
school library, painting in watercolours, viewing
documentaries, and singing in Music class. Twice a year
they attend field trips to parks, zoos, museums, or other
venues. Instead of being pressured with a lot of textbooks,
homework, and exams, as well as private tuition or
coaching, our students are given a moderate work load
suited to their developmental stage, and home tutoring and
coaching are strictly prohibited.
Tests and quizzes are given at different times and are
disguised as class work so as not to cause test anxiety.
Minimum age requirements for admission to Nursery and
Kindergarten, where most students enter, are strictly
observed. In Nursery class, there are no desks, textbooks,
or writing lessons. Our students are not subjected to
academic class rankings since we believe each student
should be taught and assessed with sensitivity to his or her
learning pace and gradient.
What aptitudes and qualities do we expect to see, and often
see, in our students as a result of this interactive,
child-centered, holistic education? They include critical
thinking, problem solving, and communication skills,
creativity, initiative, open-mindedness, responsibility,
independence, and self-confidence. By keeping the
learning process and environment fresh, stimulating, and
comfortable, we also nurture the students self-motivation
to learn.
What are the prospects, then, for the enthusiastic young
learners I spoke to about archeologyand for all Prime
Campus students? If, as we continue adding the next class
level each year, they complete their Cambridge O and A
Levels with us, can they compete for admission to local
public universities with students trained in the traditional
exam-based system? We think so. Having well-trained,
resourceful minds and habits of self-reliance as learners,
they will be able to prepare for and pass the admissions
exams. What about their chances in the over-burdened job
market? We propose that a truly educated person has a
certain advantage over other applicants. In a passage in
Fayeka Zabeen Siddiquas recent article Why Study
Liberal Arts? published by The Daily Star, some of our
students skills mentioned above are seen as desirable to
employers:
These days while the job market is very competitive, there
are a certain set of skills which help us to differentiate
from one candidate to the other, says Raiyan Alam, Project
Coordinator of the Human Resource department at a
pharmaceutical company.
Other than the professional proficiency, skills like problem
solving, critical thinking, leadership, and communication
skills are important too in a real world setting.
Opportunities for higher studies and employment arent the
full picture, though. We believe that, with their capacities
and interests brought out and developed by a genuine
education, Prime Campus students will become
well-rounded adults who are capable and fulfilled in all
areas of lifefamily, work, and societyand have the zest
for learning that makes for life-long learners.
Dr. William C. Engels
Principal, Prime Campus
Prime Campus: A Symbol of Unique, Quality English
Medium Schooling
Prime Campus, an English medium school established by
Prime Bank Foundation, might not be familiar to many of
the people of Dhaka City. Since its inception in 2008, the
school has embraced a challenge of helping its students
get the best out of education. It likes to introduce itself as a
school with a non-traditional approach. I have been working
with Prime Campus as a Teacher since 2010. Before joining
here, I couldnt imagine about the method of conducting
class which is innovative and different from most other
English medium schools in the country. What are some of
the features of the schools unique methodology?
Putting the Student at the Centre
Children are the priority in this method. Unlike the
traditional one, the teacher or book is not the basis or most
important part of the classroom. Rather, the student is at
the centre. The teacher interacts with the student and there
are fewer textbooks. Also, the emphasis is on classroom
learning, and textbooks and tutors at home are not allowed.
Students are encouraged to share their cherished thoughts
or ideas. The child-centred approach at Prime Campus
builds up the students personality so that they will grow up
as confident human beings.
Creating Interested, Thoughtful Learners
The child-centred methodology increases students
motivation as interested learners because they feel that
their ideas are appreciated. This draws their attention more
to the lesson, so that they start observing, not merely
seeing, and making their own answers, not merely
memorising. A thirst is awakened for knowing and learning
on their own. In this way, students are encouraged to
become good and even life-long learners.
Building Up Better Human Beings
The surroundings and environment play a great role in
every human life. At Prime Campus, the disciplined,
peaceful, and simple classrooms help the student become
a better human being. Students arent forced to follow the
rules and regulations, but are motivated to follow them
without being pressured. In this way, their self-realisation is
developed. Also, the beauty of Prime Campus is unity in
diversity. Students learn the skills to mingle with different
members of society regardless of color, race, religion, or
financial and social background. In sum, Prime Campus
students are guided to be disciplined, well-mannered,
confident, and self-dependent human beings for the world
of the near future.
Earlier I had little idea about the interactive method of
education. Now, after having adequate training in and using
it, I have seen how helpful it is for the growing students to
develop their creativity. Teachers and students who have
come to Prime Campus from traditional English medium
schools are especially able to see the strengths of Prime
Campus as a school with a difference. It offers a very
conducive environment for building up the academic career
of a child. Parents who want to offer quality learning to their
children should not choose another English medium school
but Prime Campus.
Ms. Mohoseena Parvin
Teacher, Prime Campus

Out of 1671 awardees, 292 awardees of 2007 & 2008 batches have already completed their study.
Of these 292 awardees 27 completed Bachelor of Engineering, 96 MBBS and the rest 169 completed their Masters
from Universities. Many of them were assisted for internship & searching jobs.
Prime Bank Nursing Institute
Properly educated and trained nurses are a dire necessity
for providing state of the art medical facilities to the people
in Bangladesh. And while a number of nursing institutes are
functioning, the number of the trained nurses and their
scope of higher education are lagging behind the demand.
Keeping this fact and reality in mind, Prime Bank
Foundation launched an ambitious and realistic programme
as a part of their corporate social responsibility.
Prime Bank Nursing Institute is a new long term venture to
promote nursing education in the modern era. Starting as
an institute in well built up campus with all modern
modalities in 2013, this institute received the approval of
Bangladesh Nursing Council (BNC) the regulatory body of
Nursing Institutions for Diploma in Nursing Science and
Mid-Wifery for a first batch of 40 students for the session
2012-13. Prime Bank Nursing Institute was launched on
April 13, 2013, at a ceremony attended by numerous
distinguished guests, including the Governor of
Bangladesh Bank, guests of MoH & FW, Directorate of
Nursing Services (DNS), Bangladesh Nursing Council
(BNC), Board of Directors of Prime Bank Limited (PBL),
and representatives from the Stake Holders.
With persistent and relentless effort, it was planned to
upgrade the institute into a college to deliver higher
education in nursing. With this view and mission, a
memorandum of Understanding (MoU) was signed with the
Cebu Normal University of Philippines as technical
assistance partner.
As an appreciation of quality education and technical
superiority, the institute is scheduled to be upgraded into
Prime Bank College of Nursing which will offer
B.Sc.in-nursing, a 04 year basic and 02 year Post-Basic
courses to be started from 2014. This upgrading will help
meet the growing demand of highly educated nurses for the
medical service providers in this country and abroad. With
its persistent effort to reach the goal, Prime Bank College of
Nursing (PBCN) received the necessary approval by the
Ministry of Health and Family Welfare in a short time. With
affiliation for starting academic activities in B.Sc. nursing
under Dhaka University, the proposal has already been
sent. Prime Bank Foundation has indeed made a visionary
step by setting this programme. A good number of nurses
with modern and up to date knowledge and skills, along
with the capacity of going further in nursing science, will
certainly enhance the medical sector and Foundation itself
in long term basis.
Prime Bank Eye Hospital
Eye care in a developing country like ours is still a low
priority manifesto among the health care providers, ongoing
campaigns and in general, among the population it self.
This is mainly due to illiteracy, ignorance and of course the
socioeconomic problems of the society along with the
chronic progression of the diseases involving the eye.
Proper screening and diagnosis of eye problem of our huge
population is a tough task and needs special attention and
motivation for both the people and the social, corporate
organisations. Prime Bank Foundation with its social
corporate responsibility sense properly was and is able to
address this necessity and had started since 2012 to make
a bold step on this issue. Prime Bank Eye Hospital (PBEH)
is one of its achievement and symbol of fulfilling its mission
towards eye care. Its a state of the art Hospital with all sorts
of modern facilities and capabilities to deliver best services
for eye care as a whole including all subspecialties of
ophthalmology. Standing in the heart of Dhaka City, it is
providing both in and outpatient services for the patients
with eye problems in a 24 hours basis by very well trained
staffs and renowned opthalmologists. Its sustainable and
well determined efforts truly reflected by its statistics of
works done since 2012. The number of total patients
examined, the number of surgeries have been dramatically
increased in 2013 comparing those of 2012. This hospital
has unique system of providing eye care to patients both in
paid and free options so that poor community and the
payable population can get the service under the same roof
with equal standard of care. PBEH financed by PBL also
concentrates its sincere efforts for community outreach by
conducting the eye camps in different places around the
country for screening the underprivileged population.
Incremental numbers of eye camps have already been
organised attracting a large number of people to screen
visual acuity, cataract prevalence since 2012. PBEH is
looking forward in this year, 2014 to expand its mission and
vision to set up Industry screening camp and also to
establish vision centre. Broadening its horizon, PBEH will
continue its journey for a healthy eye for all the people of
this country.
Some Outstanding Performers
Tapasi Roy
ID # 07-2-3-118
Accounting, Govt.
B.L. College
Position: 1st class
2nd in Masters
Ummey Honey
ID # 07-2-3-115
Accounting &
Information
System, DU
Position: 5th in
Honours
Richerd Kisku
ID # 08-1-2-088,
Crafts, DU
Position: 6th in
Honours
Rabeya Sultana Lata
ID # 07-2-3-117
Banking, DU
Position, 2nd in MBA
Sabrina Akter
ID # 07-2-1-085,
Microbiology, DU
Position: 10th in
Masters
Nawrin Sultana
ID # 08-2-1-051
CSE, BUET
Position: 10th in
Graduation
Mohammad Rony
ID # 08-1-3-104
Finance, DU
Position 3rd in
Honours
Iqbal Hossain
ID # 08-1-3-105
Management, DU
Position 10th in
Honours
Mohammad Ali
ID # 08-1-3-102
International
Business, DU
Position: 17th in
Honours
Md. Abdul Halim
ID # 08-1-2-086
Economics, DU
Position: 15th in
Honours
Loss of sight can be the greatest tragedy next to death, yet
more than six hundred thousand people in Bangladesh are
suffering from blindness and about one hundred twenty
thousand people are getting blind every year from
reversible blinding conditions. With eye-disease enveloping
across Bangladesh, countless poor and needy people
throughout the country suffer and lose their livelihoods to
conditions that are readily treatable and often preventable.
Being moved by this hard fact and assisted by Aravind Eye
Care System, a centre of excellence for eye care in India,
Prime Bank Foundation launched Prime Bank Eye Hospital
(PBEH) in January 2012 to provide eye care that is not only
affordable to all, but of the highest standard. Situated at
Dhanmondi, Dhaka it serves an area within 20 km radius
covering a population of about 15 million. Though the hallmark
of PBEH is to provide treatment at prices that everyone can
afford, with many receiving free support, a core principle of
hospital is its financial self-sufficiency, based on successful
social business models. This is achieved through high quality,
high volume care based on a well-organised system. Aiming to
meet the goals defined by the Vision 2020 initiative of the
World Health Organisation, PBEH not only provides treatment
and surgery, but is also actively involved in raising awareness
of and generating demand for eye health in order to promote
the prevention and control of avoidable blindness across the
country.The PBEH is well staffed with a highly skilled team of
professionals and outfitted with the modern equipment
including phaco, YAG laser for cataract and other eye
surgeries.
The hospital provides high quality preventive, promotive and
curative services to the rich and poor alike, yet financially self
supporting through comprehensive eye care services. In the
reporting year the PBEH handled 9,020 outpatient visits and
performed 251 surgeries.
The PBEH having considered community outreach
programme as an integral part of its service delivery model has
intensified it to take eye care services to the doorsteps of the
community people who cannot access to the its base hospital
for the kind of services they need. The only way people in
many rural and hard-to-reach areas can get access to eye
care is through eye camps. In the year ending December
2013, 31camps were conducted through which 39,857
patients were seen and 1,480 patients underwent surgery.
Eye camps are organised by different hospitals/agencies and
conducted differently. But because of some uniqueness of
PBEH organised eye camp in terms of its team composition,
range of services offered is considered as a mini hospital.
The PBEH for its outreach camps has a very balanced
team of professionals headed by the Field Coordinator who
plans their camp activities/targets for a calendar year. For
almost all the camps in 2013, Prime Bank Limited (PBL)
was the sponsor. As the sponsor, PBL took care of the
expenses connected with publicity such as pamphlets,
banners, and announcement from vehicles, and the
organisation of the camps (usually in some school or public
place). Patients requiring surgery were provided free
transportation to and from the hospital in addition to the free
surgery, stay, and food in the hospital. This expense is
borne by the sponsor. All medication that was needed for 1
month after surgery was also provided free by the hospital
and borne by sponsor.
The clinical team (made up of Ophthalmologists and
paramedical staff) examines all patients for eye problems
with basic required instruments and equipments which
includes dilation and fundus examination to some extent.
Refraction is also done in the camp and eyeglasses are
offered at affordable prices to support the service delivery
system. People who need cataract surgery are counselled
and transported to the base hospital. No surgery is
performed at the camp. An optician also accompanies the
team and based on forecasts take a stock of ready
spectacles. About 75 to 90 percent of those prescribed
glasses opt to purchase them at the camp site itself. These
camps also serve to educate the local community on eye
care.
In the advertisement of the camp, the blind patients are
usually advised to come prepared to go to the base hospital
in Dhanmondi, Dhaka for surgery. Thus most come with
their bags and, often, with relatives who would accompany
them (though not encouraged). The persons needing
surgery and willing to undergo it are then counselled
regarding the procedure, length of stay, and facilities at the
base hospital. If they agree to go to surgery then they are
taken to the base hospital in Dhaka at the end of the camp.
After rest, they would either be operated the next day or the
day after depending on the workload.
Different steps involved in an Eye Camp are as follows:
Step 1: Patient registration
The camp team composed of ophthalmologists and
paramedical staff proceeds to the campsite. With support
from local community, local volunteers record the patient
details - name, age and address - in the OP register and
case sheet. Patients are given identity cards, which may be
used for any future follow-up.
Step 2: Preliminary vision test
Preliminary vision test is performed by ophthalmic
assistants. Vision charts, such as the Snellen and E type
charts, are used.
Step 3: Preliminary examination
Ophthalmologists perform the preliminary examination.
Clinical conditions such as external eye infections, vision
loss caused by nutritional deficiency and the incurably blind
are examined. After this basic examination with the help of
torch light and direct ophthalmoscope, the patients are
directed to further steps. Need based medicine are also
dispensed.
Step 4: Tension and duct examination
Patients above the age of 40 have their intraocular
pressure tested. Senior level ophthalmic assistants
administer topical anaesthetic drops and measure the
intraocular pressure with a Schiotz tonometer. Lacrimal
passage is also tested by syringing for the patients with
cataract in operable condition. Facilities for the patients to
lie on, additional benches for waiting patients, and
adequate lighting are ensured.
Step 5: Refraction
Refraction is performed on patients who have refractive
errors, presbyopia, outdated glasses, or pseudo-aphakia
with the help of relevant equipment. Well-trained
ophthalmic technician conducts refraction while volunteers
control the patient flow.
Step 6: Final examination
Senior Ophthalmologist evaluates the test findings, perform
the final examination (which includes fundus examination
on needy patients), review the patient records, make the
final diagnoses and prescribe required management which
could be, medication, eye glass prescription, surgery or
treatment.
Step 7: Counselling
Patients advised for surgery or further specialty
interventions are educated by the counsellors to uptake the
relevant eye care. Patients who are advised for cataract
surgery undergo blood pressure measurement and sugar
test. Those who fit for surgery are counselled at the
campsite are registered in Inpatients register and
transported to the base hospital in Dhaka for surgery.
These patients receive surgery, postoperative care, meals,
and round-trip transportation all free of cost.
Step 8: Optical Services
Optician (sales person and technicians from optical
division) also attend the screening camp as part of the
medical team. A set of frames and required indent of power
glasses are taken to the camp venue. Patients advised to
wear eye glasses may use this opportunity as it is available
at affordable price and receive eye glasses in the camp
venue itself.
Annual Report 2013
175
to learn.
employers:
Medium Schooling
of the near future.
but Prime Campus.
assistance partner.
in long term basis.
this country.
surgeries.
care.
charts, are used.
dispensed.
Step 5: Refraction
treatment.
Step 7: Counselling
venue itself.
Annual Report 2013
176
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to learn.
employers:
Medium Schooling
of the near future.
but Prime Campus.
Teacher Ms. Maruf leading her students during field trips.
Children are engaged with hands-on learning about traffic signals
with colouring the object.
assistance partner.
in long term basis.
this country.
Prime Campus
WHAT A PRIME CAMPUS EDUCATION MEANS
surgeries.
care.
charts, are used.
dispensed.
Step 5: Refraction
treatment.
Step 7: Counselling
venue itself.
Annual Report 2013
177
to learn.
employers:
Medium Schooling
of the near future.
but Prime Campus.
Teacher Ms. Mohaseena teaching at class II
assistance partner.
in long term basis.
this country.
surgeries.
care.
charts, are used.
dispensed.
Step 5: Refraction
treatment.
Step 7: Counselling
venue itself.
Annual Report 2013
178
to learn.
employers:
Medium Schooling
of the near future.
but Prime Campus.
Some Differences between Traditional English Medium Schools and Prime Campus
assistance partner.
in long term basis.
this country.
View of PBNI Campus Building
surgeries.
care.
charts, are used.
dispensed.
Step 5: Refraction
treatment.
Step 7: Counselling
venue itself.
Annual Report 2013
179
Traditional English Medium School Prime Campus
Commercial & profit oriented Not-for- profit
High tuition rates affordable by few Low tuition rates affordable by many
One-way, teacher-centered learning Two-way, student-centered learning
Extreme academic pressure Moderate academic pressure
Emphasis on private tuition Emphasis on classroom learning
Little pre-service training of teachers Mandatory pre-service training of teachers
Lack of parents involvement in the education process Parents involvement in the education process
Textbooks allowed at home Textbooks not allowed at home
Pre-school Play Group class No pre-school Play Group class
Two-year, KG-1 & KG-2 class One-year KG class
Unlimited lateral enrollment Restricted lateral enrollment
Relaxed minimum-age requirements for enrollment, class levels Strict minimum-age requirements for enrollment, class levels
Physically challenged students unwelcomed Physically challenged students more welcomed
Upper income level students Mixed income level students
to learn.
employers:
Medium Schooling
of the near future.
but Prime Campus.
assistance partner.
in long term basis.
this country.
Inspection Team from the Ministry of Health & Family Welfare
and BNC at PBNI
Students of Diploma-in-Nursing Science & Midwifery
(Batch-I/Session: 2012-13) are in DMC Hospital for Clinical Training
Inauguration of PBNI by Dr. Atiur Rahman, Honorable Governor,
Bangladesh Bank on April 13, 2013
surgeries.
care.
charts, are used.
dispensed.
Step 5: Refraction
treatment.
Step 7: Counselling
venue itself.
Annual Report 2013
180
to learn.
employers:
Medium Schooling
of the near future.
but Prime Campus.
assistance partner.
in long term basis.
this country.
PBEH Outreach Eye Camp, A Mini Hospital for the Hardcore People
surgeries.
care.
Deputy Commissioner (DC), Thakurgaon declaring the grand
opening to one of the PBL sponsored Eye Camp
PBF Chaiman & Honourable Director, PBL giving speech in
Badargonj, Rangpur PBL sponsored Eye Camp
charts, are used.
dispensed.
Step 5: Refraction
treatment.
Step 7: Counselling
venue itself.
Annual Report 2013
181
to learn.
employers:
Medium Schooling
of the near future.
but Prime Campus.
assistance partner.
in long term basis.
this country.
surgeries.
care.
charts, are used.
dispensed.
Step 5: Refraction
treatment.
Step 7: Counselling
venue itself.
Patients are in queue for registration
Tension and Duct Examination at Camp
Refraction is being done by a PBEH Optometrist at Camp
Annual Report 2013
182
PBEHs School Children Screening Eye Camp
Globally, uncorrected refractive error is the main cause of
vision impairment in children aged 615 years, and the
prevalence of short-sightedness (myopia) is seen to be
increasing among children. Organisation of the PBEH
outreach in schools initiated in Dhaka city concentrates on
refractive error, which can lead to lack of academic
success in school. Students with other eye ailments are
also identified and referred to the base hospital at
Dhanmondi.
The PBEH at the time of organising outreach in the school
also conducts a short term orientation. The training covers
common eye disorders among the children and visual
acuity measurement. This exposure helps the teachers to
conduct a preliminary assessment on the school children
as a whole. This kind of assessment helps the PBEH
Outreach team to conduct detailed eye examination on the
children identified with eye problems. The training for
teachers also helps give a feeling of ownership of the
screening process effectively.
Cataract surgery done on a school going child
identified through PBEH School Screening Camp
Some of the Major Service Statistics of Prime Bank Eye Hospital
Pay Patient Examined 5,625 9,020 60.36%
Camp Patient Examined 2,335 39,857 1606.94%
Pay Patient Operated 87 251 188.51%
Camp Patient Operated 93 1,480 1491.40%
Total Patient Operated 280 1,731 518.21%
Growth
Rate Year-2012 Year-2013
Particulars
Statistics
Annual Report 2013
183
Annual Report 2013
184
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A couple of case studies of PBEH Eye Camp captured from Mini Hospital
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Annual Report 2013
185
Photographs of Patient flow at Outreach Eye Camp
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Annual Report 2013
186
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Annual Report 2013
187
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Annual Report 2013
188
Photo Session of Prime Bank South Zone, a Proud Owner of one of the Franchise-based National Cricket League of BCB
Prime Bank Cricket Club
Prime Bank Foundation recognises the link between the sports and culture, and the social development which is frequently
often overlooked in typical CSR programmes. PBF also believes that sports are not only pure entertainment but are also
connected with the mental and physical health, and the character development of the nation. as a whole. Prime Bank has a
long been a patron of culture in Bangladesh, having sponsored sporting events over many year. No doubt, as a sporting event,
cricket is now a passion in the heart of this nation. So, to offer players a way to experience the life of professional cricket and
to improve their skill, Prime Bank Cricket Club (PBCC) was formed in 2011. This journey began with the acquisition of a
Premier Division cricket team eligible to play in Premier Division Cricket League (PBCL) of Bangladesh. Since then PBCC in
the PBCL was able to make some clear achievements in cricket, incorporating some world class players in the team and to
give local boys an opportunity to experience the international flavour. The subsequent plans involve the development of an
integrated cricket development programme that has created a pathway for continued athletic progress for promising talents. In
addition, PBF has also involved in general promotion and popularisation of cricket all over the country through participation in
various other cricket events/tournaments. The highlights of the achievements made by PBCC in the reporting year are outlined
below:

PBCC has already been able to leverage marketing power of cricket and cricket fans

PBCC has already earned the confidence of BCB and others in the field of cricket in Bangladesh through management
excellence/promoting best practices and PBCC team performances

Became a proud owner of one of the Franchise Teams (known as Prime Bank South Zone, constituted with Khulna and
Barisal Divisions) one of the Franchise-based National Cricket League launched by BCB from 2012/2013 to
promote/popularise longer version of cricket in Bangladesh. National star players like Sakib-al-Hasan, Shohag Gazi,
Rubel Hossain, Anamul Haque Bijoy, Abdur Razzak, Robiul Islam and Al-Amin play for this team

In 2013, BCB for the first time organised Amber Victory Day T20 Cup tournament. PBCC was the sponsor of one of the
four teams of this tournament to be captained by Sakib-al-Hasan and won the champions trophy beating UCB team in the
final. The tournament being highly covered by countrys both print and electronic media (including live telecast of the final)
was able to attract the countrys huge cricket fans and lovers

PBCC through its General Secretary being on BCB as one of its Directors is to get brand and advertising mileage all over
Bangladesh on BCB platform and to make contributions towards national cricket development
Annual Report 2013
189
PBCC Team celebrating the out of the Skipper of the BCB XI
Mr. Tanjil Chowdhury (4
th
from the left), Director, Bangladesh Cricket Board (BCB) in the Board Meeting
Prime Bank Cricket Club in a Photo Session
Annual Report 2013
190
Partial view of PBL Cricket Fans at Sher-E-Bangla National Cricket Stadium
Prime Bank Cricket Club, Winner of the Amber Victory Day T20 Cup 2013
Prime Bank Cricket Club in a Photo Session
The CSR contribution directly from Prime Bank Limited for the period of January-December 2013 are distributed into
the following categories:
Education:

Sponsorship to Mr. Debendranath Biswas of Rangpur District for education purpose of his two daughters;

Donation to the National Society of the Blind and Partially Sighted of Faridpur District;

Donation to the Department of Banking and Insurance for arranging a ceremony in the memory of honorable Lutfor
Rahman Sarker, an eminent banker and former Managing Director, Prime Bank Limited.
Health:

Conduct of Eye Camp in the remote areas of Bangladesh for giving free eye treatment;

Donation to Diabetic Samity, Luxmipur for constructing a hospital;

Donation to Mr. Golap Hossain for treatment of his son who is suffering from blood cancer;

Donation to Mr. Moniruzzaman for treatment purpose.
Sports:

Sponsorship of Prime Bank Cup Golf Tournament - 2013 at Ghatail Golf Club;

Sponsorship of Prime Bank Bangladesh Premier League 2013;

Sponsorship of Prime Bank 16th International Rating Chess Tournament organized by Leonine Chess Club.
Arts & Culture:

Participation as associate sponsor in the 2nd Harrow Music Festival;

Sponsorship of a Brand New Car as mega gift for Houseful, a TV program of Maasranga Television;

Organization of Remittance based Star Night at Doha;

Sponsorship of Dhaka University Debating Society (DUDS) for participation in a debate competition at Singapore.
Disaster Management:

Donation to Bangladesh Association of Banks for the affected families of Savar tragedy;

Distribution of 5,210 pcs of blankets among poor people;

Donation of Cheques to the families of two martyred army officers killed in BDR carnage at Pilkhana at Dhaka.
Others:

Sponsorship of Press Club, Jessore for constructing Jessore Press Club Auditorium;

Sponsorship of a seminar on Global Strategy Exchange;

Sponsorship of SAFA International event organised by ICMAB.
All our achievements might be meager compare to our millions more that also need dire help in their life but PBF is here
to help . It has started growing and spreading its helping nets more in the future to come.
Annual Report 2013
191
Goal-1 Goal-2
Three Strategic Goals
Goal-3
Make education more accessible
to the target population we work
for both access and quality in
education have been given
attention, as education
programmes continued to be
implemented.
Sizeable increase of our
programme reach in all 64 districts
of the country including the very
hard-to- reach areas through ESP,
a programme to respond to the
needs of the grad/ post-grad level
underprivileged but meritorious
students of the country.
Availability of low cost quality
education to a much bigger
number of children through Prime
Campus, Uttara and its new
branch at Mirpur.
Signing of an MOU with Cebu
Normal University, one of the
centres of excellence for nursing
education in the Philippines to
have them as a technical
assistance partner for Prime Bank
Nursing Institute, a new initiative
of Prime Bank Foundation which
has been set in the reporting year
aiming at developing highly skilled
nurses at an affordable price
needed to meet the increasingly
high demand of nurses by different
healthcare service providers in the
country and beyond.
Availability of high quality nursing
education at an affordable cost
through enrollment of the first
batch of students at Prime Bank
Nursing Institute after its formal
launching from the beginning of
2013.
Make health more accessible to
the target population we work for.
Completed the set up of Prime
Bank Eye Hospital in Dhaka, a
well equipped eye hospital staffed
with skilled workforce with the
technical assistance from Aravind
Eye Care System of India to
provide a wide range of eye care
services to all.
Where cost is an issue, eye care is
not out of reach. Prime Bank Eye
Hospital, an initiative of Prime
Bank Foundation, from the
beginning of 2012, has started
providing high quality eye care
services as part of its Corporate
Social Responsibility
Build a strong and dynamic
organisation, capable of
facilitating effective education, eye
and other components of health
programme, and having positive
impact on public opinion, policies
and practices.
Our capacity development
endeavour, is envisioned to
institutionalise learning processes
and systematically organise
sharing of information,
experiences, best practices and
lessons learned with our project
level people and the organisation
to we work partner with. We aim
institutionalise the core values of
responsible corporate citizenship
into the way of doing business, to
mould future business and to
professionalise the practice of
CSR. Monitored, measured and
report on the impact of the work
that we do.
Implemented information sharing
and communication sharing and
communication systems to link our
people and programmes.
Increased efficiency in managing
organisational resources.
Continued building capacity of
project staff and systems to support
our target people
Annual Report 2013
192
Annual Report 2013
194
Auditors Report
to the Shareholders of Prime Bank Limited
We have audited the accompanying consolidated fnancial statements of Prime Bank Limited and its subsidiaries (together
referred to as the Group) as well as the separate fnancial statements of Prime Bank Limited (the Bank) which comprise
the consolidated and separate Balance Sheets as at 31 December 2013, consolidated and separate proft and loss accounts,
statements of changes in equity and cash fow statements for the year then ended, and a summary of signifcant accounting
policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated fnancial statements of the Group
and also separate fnancial statements of the Bank that give a true and fair view in accordance with Bangladesh Financial
Reporting Standards (BFRS) as explained in Note 2 and for such internal control as management determines is necessary
to enable the preparation of consolidated fnancial statements of the Group and also separate fnancial statements of the
Bank that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and the local
central bank (Bangladesh Bank) Regulations require the Management to ensure effective internal audit, internal control and
risk management functions of the Bank. The Management is also required to make a self-assessment on the effectiveness of
anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated fnancial statements of the Group and the separate fnancial
statements of the Bank based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing
(BSA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the consolidated fnancial statements of the Group and the separate fnancial statements of the
Bank are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
fnancial statements of the Group and separate fnancial statements of the Bank. The procedures selected depend on our
judgment, including the assessment of the risks of material misstatement of the consolidated fnancial statements of the
Group and the separate fnancial statements of the Bank, whether due to fraud or error. In making those risk assessments, we
consider internal control relevant to the entitys preparation of consolidated fnancial statements of the Group and separate
fnancial statements of the Bank that give a true and fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated fnancial
statements of the Group and the separate fnancial statements of the Bank.
The fnancial statements of the Banks fve subsidiaries, namely Prime Exchange Co. Pte. Ltd. (Singapore), Prime Exchange
(UK) Ltd., PBL Finance (Hong Kong) Ltd., Prime Bank Investment Ltd., the Prime Bank Securities Ltd. refects total assets of
Tk. 11,628,755,893 as at 31 December 2013 and total revenue of Tk. 1,136,068,592 for the year ended 31 December 2013.
These fnancial statements have been audited by other component auditors who have expressed unqualifed audit opinion
and accepted by us for the audit of the Groups consolidated fnancial statements.
We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated fnancial statements of the Group and also separate fnancial statements of the Bank give
a true and fair view of the consolidated fnancial position of the Group and the separate fnancial position of the Bank as at
31 December 2013, and of its consolidated and separate fnancial performance and cash fows for the year then ended in
accordance with Bangladesh Financial Reporting Standards (BFRS) as explained in Note 2.
Annual Report 2013
195
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, Securities and Exchange Rules 1987, the Bank Company, Act 1991 and the
rules and regulations issued by Bangladesh Bank, we also report that:
(i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purpose of our audit and made due verifcation thereof;
(ii) to the extent noted during the course of our audit work performed on the basis stated under the Auditors
Responsibility section in forming the above opinion on the consolidated fnancial statements of the Group and the
separate fnancial statements of the Bank and considering the reports of the Management to Bangladesh bank on
anti-fraud internal controls and instances of fraud and forgeries as stated under the Managements Responsibility
for the Financial Statements and Internal Control:
(a) internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed in
the fnancial statements appeared to be materially adequate;
(b) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error
and exception or anything detrimental committed by employees of the Bank and its related entities;
(iii) fnancial statements of all subsidiaries of the Bank have been audited by us as well as other auditors and have been
properly refected in the consolidated fnancial statements;
(iv) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it
appeared from our examination of those books and proper returns adequate for the purpose of our audit have been
received from branches not visited by us;
(v) the consolidated balance sheet and consolidated proft and loss account of the Group and the separate balance
sheet and separate proft and loss account of the Bank together with the annexed notes dealt with by the report are
in agreement with the books of account and returns;
(vi) the expenditures incurred was for the purpose of the Banks business;
(vii) the consolidated fnancial statements of the Group and the separate fnancial statements of the Bank have been
drawn up in conformity with prevailing rules, regulations and accounting standards as well as related guidance
issued by Bangladesh Bank;
(viii) adequate provisions have been made for advance and other assets which are in our opinion, doubtful of recovery;
(ix) the records and statements submitted by the branches have been properly maintained and consolidated in the
fnancial statements;
(x) the information and explanations required by us have been received and found satisfactory;
(xi) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 3,640 person
hours during the audit; and
(xii) Capital Adequacy Ratio (CAR) as required by the Bangladesh Bank has been maintained adequately during the
year.

Dhaka, 4th March 2014
Hoda Vasi Chowdhury & Co
Chartered Accountants
Howladar Yunus & Co
Annual Report 2013
196
Consolidated Balance Sheet
as at 31 December 2013
Particulars Notes
Amount in Taka
2013 2012
PROPERTY AND ASSETS
Cash 3
In hand (including foreign currencies) 2,705,924,415 2,069,226,315
Balance with Bangladesh Bank and its agent bank (s)
(including foreign currencies) 14,958,779,761 14,117,939,937
17,664,704,176 16,187,166,252
Balance with other banks and fnancial institutions 4
In Bangladesh 378,707,076 251,534,389
Outside Bangladesh 709,510,273 1,466,724,570
1,088,217,349 1,718,258,959
Money at call and short notice 5 - -
Investments 6
Government 56,147,165,851 44,936,697,967
Others 2,603,960,634 3,065,827,910
58,751,126,485 48,002,525,877
Loans, advances and lease /investments
Loans, cash credits, overdrafts etc./ investments 7 150,378,169,432 156,374,907,982
Bills purchased and discounted 8 8,631,546,764 8,667,419,387
159,009,716,196 165,042,327,369
Fixed assets including premises, furniture and fxtures 9 6,456,759,073 4,419,804,836
Other assets 10 2,552,122,357 2,798,965,983
Non - banking assets - -
Total assets 245,522,645,636 238,169,049,276
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, fnancial institutions and agents 11 4,273,597,629 21,149,348,118
Deposits and other accounts 12
Current / Al-wadeeah current deposits 26,525,056,611 27,294,077,412
Bills payable 2,081,417,055 3,421,438,111
Savings bank / Mudaraba savings deposits 21,125,908,174 19,188,831,632
Term deposits / Mudaraba term deposits 152,086,878,317 132,058,072,695
Bearer certifcate of deposit - -
Other deposits - -
201,819,260,157 181,962,419,850
Other liabilities 13 16,071,268,524 14,095,474,132
Total liabilities 222,164,126,310 217,207,242,100
Capital / Shareholders equity
Paid -up capital 14.2 10,293,486,160 9,357,714,690
Share premium 14.8 2,241,230,396 2,241,230,396
Minority interest 14.9 65 67
Statutory reserve 15 7,528,626,614 6,839,527,566
Revaluation gain / loss on investments 16 135,671,362 42,034,865
Revaluation reserve 17 1,511,486,306 251,603,567
Foreign currency translation gain 18 3,646,693 4,510,188
Other reserve 28,002,888 -
Surplus in proft and loss account / Retained earnings 19 1,616,368,842 2,225,185,837
Total Shareholders equity 23,358,519,326 20,961,807,176
Total liabilities and Shareholders equity 245,522,645,636 238,169,049,276
Annual Report 2013
197
Consolidated Balance Sheet
Particulars Notes
Amount in Taka
2013 2012
OFF - BALANCE SHEET EXPOSURES
Contingent liabilities 20
Acceptances and endorsements 20.1 25,014,184,593 26,979,335,910
Letters of guarantee 20.2 54,276,988,409 42,846,572,774
Irrevocable letters of credit 20.3 19,359,031,049 28,353,752,325
Bills for collection 20.4 9,104,975,230 10,007,661,530
Other contingent liabilities - -
107,755,179,281 108,187,322,539
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 - -
Liabilities against forward purchase and sale - -
- -
Total Off-Balance Sheet exposures including contingent liabilities 107,755,179,281 108,187,322,539
These fnancial statements should be read in conjunction with the annexed notes 1 to 50.
See annexed auditors report to the Shareholders of the date.
Dhaka, 04 March 2014
Howladar Yunus & Co
Chairman
Director Director Managing Director
Annual Report 2013
198
Consolidated Proft and Loss Account
for the year ended 31 December 2013
Particulars Notes
Amount in Taka
2013 2012
Interest income / proft on investments 22 22,615,648,865 23,807,748,522
Interest / proft paid on deposits, borrowings, etc. 23 (18,276,343,701) (17,987,629,591)
Net interest / net proft on investments 4,339,305,164 5,820,118,931
Investment income 24 5,863,198,678 4,451,946,974
Commission, exchange and brokerage 25 2,332,258,137 2,628,137,057
Other operating income 26 886,403,880 1,101,978,717
Total operating income (A) 13,421,165,859 14,002,181,679
Salaries and allowances 27 3,050,300,291 2,780,540,201
Rent, taxes, insurance, electricity, etc. 28 595,222,912 474,283,014
Legal expenses 29 40,451,700 32,391,528
Postage, stamp, telecommunication, etc. 30 141,707,735 134,466,650
Stationery, printing, advertisements, etc. 31 396,640,713 308,479,135
Managing Directors salary and fees 32 11,590,000 11,448,000
Directors fees 33 4,443,241 5,217,746
Auditors fees 34 1,631,427 1,522,518
Charges on loan losses 35 - -
Depreciation and repair of Banks assets 36 365,272,233 345,856,437
Other expenses 37 1,081,838,188 1,068,015,016
Total operating expenses (B) 5,689,098,440 5,162,220,245
Proft / (loss) before provision (C=A-B) 7,732,067,419 8,839,961,434
Provision for loans / investments 38
Specifc provision 2,980,000,000 1,490,000,000
General provision 642,000,000 240,000,000
Provision for Off-Shore Banking Units 362,000,000 -
Provision for off-balance sheet exposures 10,000,000 140,000,000
3,994,000,000 1,870,000,000
Provision for diminution in value of investments 24,475,240 (27,053,710)
Provision for impairment of client margin loan 1,354,126 179,183,361
Other provisions 10,135,000 1,301,942,300
Total provision (D) 4,029,964,366 3,324,071,951
Total proft / (loss) before taxes (C-D) 3,702,103,053 5,515,889,483
Provision for taxation:
Current tax 39 1,664,898,350 2,629,200,771
Deferred tax (1,105,233) 186,283,025
1,663,793,117 2,815,483,796
Net proft after taxation 2,038,309,936 2,700,405,687
Retained earnings brought forward from previous year 19.1 295,160,847 591,798,618
2,333,470,783 3,292,204,305
Annual Report 2013
199
Consolidated Proft and Loss Account
Particulars Notes
Amount in Taka
2013 2012
Appropriations
Statutory reserve 689,099,048 1,067,018,461
Minority interest 5 7
General reserve 28,002,888 -
717,101,941 1,067,018,468
Retained surplus 19 1,616,368,842 2,225,185,837
Earnings per share (EPS) 44 1.98 2.62
See annexed auditors report to the Shareholders of the date
Howladar Yunus & Co
Chairman
Annual Report 2013
200
Consolidated Cash Flow Statement
Particulars Notes
Amount in Taka
2013 2012
A) Cash fows from operating activities
Interest receipts in cash 27,624,433,535 26,869,276,024
Interest payments (17,972,431,422) (17,771,734,765)
Dividend receipts 89,885,351 14,477,350
Fees and commission receipts in cash 2,332,258,137 2,628,137,056
Recoveries of loans previously written off 6,064,168 85,048,984
Cash payments to employees (3,031,288,851) (2,654,658,200)
Cash payments to suppliers (812,060,773) (688,608,205)
Income taxes paid (1,862,253,078) (1,992,688,589)
Receipts from other operating activities 40 1,912,401,737 1,918,600,187
Payments for other operating activities 41 (1,578,552,527) (1,453,178,417)
Cash generated from operating activities before
changes in operating assets and liabilities 6,708,456,274 6,954,671,425
Increase / (decrease) in operating assets and liabilities
Statutory deposits - -
Purchase of trading securities (Treasury bills) (3,274,763,630) 1,157,486,973
Loans and advances to other banks - -
Loans and advances to customers 3,543,714,833 (23,651,758,398)
Other assets 42 (7,837,890,184) (12,968,997,333)
Deposits from other banks / borrowings (16,887,977,580) 9,125,817,450
Deposits from customers 20,905,176,176 22,559,005,948
Other liabilities account of customers (1,340,021,056) 428,842,035
Trading liabilities - -
Other liabilities 43 655,531,219 685,431,691
(4,236,230,221) (2,664,171,634)
Net cash from operating activities 2,472,226,053 4,290,499,791
B) Cash fows from investing activities
Debentures 5,000,000 5,000,000
Payments for purchases of securities 293,682,203 (2,591,181)
Purchase of property, plant and equipment (918,179,822) (676,877,625)
Payment against lease obligation (6,126,544) (5,720,867)
Proceeds from sale of property, plant and equipment 2,079,350 3,893,813
Net cash used in investing activities (623,544,813) (676,295,860)
Annual Report 2013
201
Consolidated Cash Flow Statement
Particulars Notes
Amount in Taka
2013 2012
C) Cash fows from fnancing activities
Receipts from issue of sub-ordinated bond - -
Receipts from issue of ordinary share including premium net off Tax - -
Dividend paid (992,804,143) (779,809,558)
Net cash used in fnancing activities (992,804,143) (779,809,558)
D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 855,877,097 2,834,394,373
E) Effects of exchange rate changes on cash and cash equivalents (7,211,283) (13,654,203)
F) Cash and cash equivalents at beginning of the year 17,910,531,111 15,089,790,941
G) Cash and cash equivalents at end of the year (D+E+F) 18,759,196,925 17,910,531,111
Cash and cash equivalents at end of the year
Cash in hand (including foreign currencies) 2,705,924,415 2,069,226,315
Balance with other banks and fnancial institutions 1,088,217,349 1,718,258,959
Money at call and short notice - -
Reverse repo - -
Prize bonds (note-6a) 6,275,400 5,105,900
18,759,196,925 17,910,531,111
Chairman
Annual Report 2013
202
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Annual Report 2013
203
Balance Sheet
Particulars Notes
Amount in Taka
2013 2012
PROPERTY AND ASSETS
Cash 3a
In hand (including foreign currencies) 2,683,867,027 2,059,503,576
17,642,646,788 16,177,443,513
Balance with other banks and fnancial institutions 4a
In Bangladesh 244,165,129 251,389,642
Outside Bangladesh 626,533,772 1,392,741,405
870,698,901 1,644,131,047
Money at call and short notice 5 - -
Investments 6a
Government 56,147,165,851 44,936,697,967
Others 792,350,658 925,206,241
56,939,516,509 45,861,904,208
Loans, advances and lease / investments
Loans, cash credits, overdrafts, etc./ investments 7a 147,380,881,952 153,440,706,958
Bills purchased and discounted 8a 6,207,878,277 7,449,141,605
153,588,760,229 160,889,848,563
Fixed assets including premises, furniture and fxtures 9a 6,406,719,662 4,363,349,270
Other assets 10a 8,420,462,735 7,896,328,978
Total assets 243,868,804,824 236,833,005,579
Liabilities
Borrowings from other banks, fnancial institutions and agents 11a 3,858,260,882 20,681,977,457
Deposits and other accounts 12a.1.c
Bills payable 2,081,417,055 3,421,438,111
Savings bank / Mudaraba savings deposits 21,125,908,174 19,188,831,632
Bearer certifcate of deposit - -
Other deposits - -
201,907,141,182 182,052,872,060
Other liabilities 13a 15,073,785,652 13,311,117,157
Paid up capital 14.2 10,293,486,160 9,357,714,690
Share premium 14.8 2,241,230,396 2,241,230,396
Statutory reserve 15 7,528,626,614 6,839,527,566
Revalutation gain / (loss) on investments 16a 109,193,803 19,719,692
Revaluation reserve 17 1,511,486,306 251,603,567
Foreign currency translation gain 18a 4,513,294 5,015,711
Other reserve - -
Surplus in proft and loss account / Retained earnings 19a 1,341,080,535 2,072,227,283
Total Shareholders equity 23,029,617,108 20,787,038,905
Annual Report 2013
204
Balance Sheet
Particulars Notes
Amount in Taka
2013 2012
OFF-BALANCE SHEET EXPOSURES
Contingent liabilities 20a
Acceptances and endorsements 20a.1 25,014,184,593 26,979,335,910
Letters of guarantee 20a.2 54,276,988,409 42,846,572,774
Irrevocable letters of credit 20a.3 19,359,031,049 28,353,752,325
Bills for collection 20a.4 9,104,975,230 10,007,661,530
107,755,179,281 108,187,322,539
Other commitments
Liabilities against forward purchase and sale - -
- -
Total Off-Balance Sheet exposures including contingent liabilities 107,755,179,281 108,187,322,539
See annexed auditors report to the Shareholders of the date.
Howladar Yunus & Co
Chairman
Annual Report 2013
205
Proft and Loss Account
Particulars Notes
Amount in Taka
2013 2012
Interest income / proft on investments 22a 22,010,657,745 22,821,500,674
Interest / proft paid on deposits, borrowings, etc. 23a (17,678,359,259) (17,410,286,124)
Net interest / net proft on investments 4,332,298,486 5,411,214,550
Investment income 24a 5,582,706,055 4,633,326,302
Commission, exchange and brokerage 25a 2,155,485,165 2,429,444,757
Other operating income 26a 812,592,003 1,017,962,459
Salaries and allowances 27a 2,939,016,912 2,673,292,974
Rent, taxes, insurance, electricity, etc. 28a 550,258,309 430,873,148
Legal expenses 29a 37,756,195 28,570,418
Postage, stamp, telecommunication, etc. 30a 134,001,255 127,601,535
Stationery, printing, advertisements, etc. 31a 392,246,376 304,366,321
Managing Directors salary and fees 32 11,590,000 11,448,000
Directors fees 33a 4,364,816 5,152,571
Auditors fees 34a 690,000 575,000
Charges on loan losses 35 - -
Depreciation and repair of Banks assets 36a 348,115,280 331,708,120
Other expenses 37a 990,885,125 1,027,527,828
Total operating expenses (B) 5,408,924,268 4,941,115,915
Proft / (loss) before provision (C=A-B) 7,474,157,441 8,550,832,153
Provision for loans / investments 38a
Specifc provision 2,980,000,000 1,490,000,000
General provision 642,000,000 240,000,000
Provision for Off-Shore Banking Units 362,000,000 -
Provision for off-balance sheet exposures 10,000,000 140,000,000
3,994,000,000 1,870,000,000
Provision for diminution in value of investments 24,527,202 43,797,548
Other provisions 10,135,000 1,301,942,300
Total provision (D) 4,028,662,202 3,215,739,848
Total proft / (loss) before taxes (C-D) 3,445,495,239 5,335,092,305
Provision for taxation
Current tax 39a 1,616,000,000 2,449,800,000
Deferred tax - 186,300,000
1,616,000,000 2,636,100,000
Net proft after taxation 1,829,495,239 2,698,992,305
Retained earnings brought forward from previous years 19.1a 200,684,344 440,253,439
2,030,179,583 3,139,245,744
Annual Report 2013
206
Particulars Notes
Amount in Taka
2013 2012
Appropriations
Statutory reserve 689,099,048 1,067,018,461
General reserve - -
689,099,048 1,067,018,461
Retained surplus 19a 1,341,080,535 2,072,227,283
Earnings per share (EPS) 44a 1.78 2.62
See annexed auditors report to the Shareholders of date
Howladar Yunus & Co
Chairman
Annual Report 2013
207
Cash Flow Statement
Particulars Notes
Amount in Taka
2013 2012
Interest receipts in cash 27,019,442,414 25,883,028,176
Interest payments (17,374,446,980) (17,194,391,298)
Dividend receipts 89,885,351 14,477,350
Fees and commission receipts in cash 2,155,485,165 2,429,444,756
Recoveries of loans previously written off 6,064,168 85,048,984
Cash payments to employees (2,921,049,473) (2,554,040,973)
Income taxes paid (1,862,253,078) (1,992,688,589)
Receipts from other operating activities 40a 1,558,097,238 1,775,963,262
Payments for other operating activities 41a (1,429,170,216) (1,355,446,797)
Cash generated from operating activities before changes
in operating assets and liabilities 6,435,320,188 6,407,525,968
Purchase of trading securities (Treasury bills) (3,274,763,630) 1,157,486,973
Loans and advances to other banks - -
Loans and advances to customers 4,760,494,847 (22,041,418,555)
Other assets 42a (8,849,257,530) (13,647,964,993)
Deposits from other banks / borrowings (16,835,943,667) 8,658,446,788
Deposits from customers 20,902,604,991 22,646,097,089
Other liabilities account of customers (1,340,021,056) 428,842,035
Other liabilities 43a 729,880,009 786,096,248
(3,907,006,035) (2,012,414,415)
Net cash from operating activities 2,528,314,152 4,395,111,553
Debentures 5,000,000 5,000,000
Proceeds from sale of securities - -
Payments for purchases of securities (35,329,490) (127,663,428)
Purchase of property, plant and equipment (859,824,544) (666,354,778)
Payment against lease obligation (6,126,544) (5,720,867)
Proceeds from sale of property, plant and equipment 2,079,350 3,893,813
Net cash used in investing activities (894,201,228) (790,845,260)
Annual Report 2013
208
Cash Flow Statement
Particulars Notes
Amount in Taka
2013 2012
Receipts from issue of sub-ordinated bond - -
Receipts from issue of ordinary share including premium net off Tax - -
Dividend paid (935,771,469) (779,809,558)
Net cash used in fnancing activities (935,771,469) (779,809,558)
D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 698,341,455 2,824,456,735
E) Effects of exchange rate changes on cash and cash equivalents (5,400,826) (13,202,489)
F) Cash and cash equivalents at beginning of the year 17,826,680,460 15,015,426,214
G) Cash and cash equivalents at end of the year (D+E+F) 18,519,621,089 17,826,680,460
Cash in hand (including foreign currencies) 2,683,867,027 2,059,503,576
Balance with other banks and fnancial institutions 870,698,901 1,644,131,047
Money at call and short notice - -
Reverse repo - -
Prize bonds (note-6a) 6,275,400 5,105,900
18,519,621,089 17,826,680,460
Chairman
Annual Report 2013
209
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Annual Report 2013
210
Notes to the Financial Statements
1.1 Prime Bank Limited
The Prime Bank Limited (the Bank) was incorporated as a public limited company in Bangladesh under Companies
Act, 1994 with the registered offce of the company at 119-120 Motijheel C/A, Dhaka-1000. It commenced its
banking business with one branch from April 17, 1995 under the license issued by Bangladesh Bank. Presently
the Bank has 134 (One Hundred Thirty Four) branches including 17 (Seventeen) SME Centre/ Branches all over
Bangladesh and 2 (Two) booths located at Dhaka Club, Dhaka and at Chittagong Port, Chittagong. Out of the
above 134 branches, 05 (fve) branches are designated as Islamic Banking branch complying with the rules of
Islamic Shariah. Also the Bank has 3 (Three) Off-shore Banking Units (OBU), 5 (Five) subsidiaries Companies ( 3
Foreign subsidiaries & 2 Local subsidiaries). The Bank went for Initial Public Offering in 1999 and its shares were
listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company
for its general classes of share.
1.1.1 Principal activities
The principal activities of the Bank are to provide all kinds of commercial banking services to customers through its
branches and SME centre/ branches in Bangladesh. The Bank also provides Off-shore banking services through
its 3 (Three) Off-shore Banking Units (OBU).
1.1.2 Off-shore Banking Units
The Bank obtained permission of Off-shore Banking Units vide letter no. BRPD(P)744(84)/2001-868 dated 19
March 2001. The Bank commenced operation of its one unit from March 15, 2007. Presently the Bank has 3 (Three)
Off-shore banking Units (OBU) located at Dhaka EPZ, Chittagong EPZ and Adamjee EPZ. The Off-shore banking
units are governed under the rules and guidelines of Bangladesh Bank. Separate fnancial statements of Off-shore
banking unit are shown in Annexure-K.
1.2 The Bank has 5 (Five) Subsidiaries details of which are given at note no. 1.2.1-1.2.5.
1.2.1 Prime Bank Investment Limited
Prime Bank Investment Limited is a subsidiary company of Prime Bank Limited incorporated as a public limited
company on April 27, 2010 with the registrar of Joint Stock Companies, Dhaka vide certifcate of incorporation
no.C-84266/10, dated 28 April 2010 which has commenced its business on the same date. There of 29,999,994
shares (out of 30,000,000 shares) of Prime Bank Investment Limited are held by Prime Bank Limited and only
6 shares are held by 6 senior executives of Prime Bank Limited and Prime Bank Investment Limited. The main
objectives of the company for which was established are to carry out the business of full-fedged merchant banking
activities like issue management, portfolio management, underwriting, corporate advisory services etc. Securities
and Exchange Commission (SEC) thereafter issued a full fedged merchant banking license in favor of Prime Bank
Investment Ltd, vide letter no. SEC/Reg/MB/SUB/2010/03/208, dated 02 June 2010 with effect from 01 June 2010.
Financial Statements of the company are shown in Annexure-L.
1.2.2 Prime Bank Securities Limited
Prime Bank Securities Limited was incorporated on April 29, 2010 as a private limited company under the
Companies Act 1994 vide certifcate of incorporation no.C-84302 /10. Prime Bank Securities Limited became
member of Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited for brokerage transaction
vide Security Exchange Commission certifcate no. 3.1/DSE-219/2010/429, dated 16 September 2010 and 3.2/
CSE-141/2010/239, dated 31 August 2010 respectively. Prime Bank Securities Limited commenced its operation
from May 2011. The main objectives of the company are to carry on business of stock brokers / dealers in relation
to shares and securities dealings and other services as mentioned in the Memorandum and Articles of Association
of the Company. Prime Bank Limited and Prime Bank Investment Limited hold 95% and 5% share of Prime Bank
Securities Limited respectively. Financial Statements of the company are shown in Annexure-M.
Annual Report 2013
211
1.2.3 Prime Exchange Co. (Pte) Limited, Singapore
Prime Exchange Co. (Pte) Ltd., a fully owned subsidiary company of Prime Bank Limited was incorporated in
Singapore on January 06, 2006 and commenced its remittance business from July 08, 2006 under the remittance
license issued by the Monetary Authority of Singapore (MAS) under section 7A(3) of the Money Changing and
Remittance Business Act (Chapter 187) with 1 (One) branch located at 2A Desker Road, (2nd foor), Singapore
209549. In 2011 the Company has also opened another Branch located at Jurong East Branch, Block: 134 #01-305
Jurong Gateway Road, Singapore 600134. The principal activities of the company are to carry on the remittance
business and to undertake and participate in transactions, activities and operations commonly carried on or
undertaken by remittance and exchange house. Financial Statements of the company are shown in Annexure-N.
1.2.4 PBL Exchange (UK) Limited
PBL Exchange (UK) Limited was incorporated as a private limited company with Companies House of England
and Wales under registration no. 7081093 dated 19 November 2009. The company is a wholly owned subsidiary
of Prime Bank Limited. The company commenced its operation on 02 August 2010 with three Branches located
at Brick Lane of London, Coventry Road of Birmingham and North Oldham of Manchester. The registered offce is
located at 16 Brick Lane, London E1 6RF. Financial Statements of the company are shown in Annexure-O.
1.2.5 PBL Finance (Hong Kong) Limited
PBL Finance (Hong Kong) Limited, a fully owned subsidiary of Prime Bank Limited. PBL Finance (Hong Kong)
Limited was incorporated with Companies Registries of Hong Kong (Certifcate of incorporation no. 1584971 and
Business Registration no. 58197431 both dated April 7, 2011). PBL Finance (Hong Kong) Limited obtained Money
Lending Licenses # 307/2011 issued by Honorable Court of Hong Kong on 28th July 2011. It has commenced its
operation from August 2011 with one branch located at 608, 6/F, Admiralty Centre, Tower-2, 18 Harcourt Road,
Hong Kong. Financial Statements of the company are shown in Annexure-P.
2.00 Signifcant accounting policies and basis of preparation of fnancial statements
2.1 Basis of accounting
2.1.1 Statement of compliance
The fnancial statements of the Bank and its subsidiaries (the Group) are made up to 31 December 2013 and
are prepared under the historical cost basis, except for certain investments which are stated at fair/market value
and freehold land which are measured at revalued amount, in accordance with the First Schedule (Sec-38) of the
Bank Companies Act 1991, BRPD Circular # 14 dated 25 June, 2003 and DFIM Circular # 11, dated 23 December
2009, other Bangladesh Bank Circulars, Bangladesh Accounting Standards (BAS) and Bangladesh Financial
Reporting Standards (BFRS) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), the
Companies Act 1994, the Securities and Exchange Rules 1987, Dhaka & Chittagong Stock Exchanges listing
regulations and other laws and rules applicable in Bangladesh. In case the requirement of Bangladesh Bank
differs with those of BAS/BFRS, the requirement of Bangladesh Bank have been applied.
In addition to foregoing directives and standards, the operation of Islamic Banking Branches are accounted for in
accordance with Financial Accounting Standards issued by the Accounting and Auditing Organisation for Islamic
Financial Institutions, Bahrain, and Bangladesh Bank circular no-15, dated November 09, 2009. A separate
balance sheet, proft and loss account and a statement of proft paid on deposits are shown in Annexure-G and
G(1) and the fgures appearing in the annexure have been incorporated in the related heads of these fnancial
statements as recommended by the Central Shariah Board for Islamic Banks in Bangladesh.
2.1.2 Basis of consolidation
The consolidated fnancial statements include the fnancial statements of Prime Bank Limited and its subsidiaries,
i.e. Prime Bank Investment Limited, Prime Bank Securities Limited, Prime Exchange Co. (Pte) Limited, Singapore,
PBL Exchange (UK) Limited and PBL Finance (Hong Kong) Limited made up at the end of the fnancial year.
The consolidated fnancial statements have been prepared in accordance with Bangladesh Accounting Standard-
27Consolidated and Separate Financial Statements. The consolidated fnancial statements are prepared to a
common fnancial year ended 31 December 2013.
Annual Report 2013
212
Subsidiary
Subsidiary is that enterprise which is controlled by the Bank. Control exists when the Bank has the power, directly
or indirectly, to govern the fnancial and operating policies of an enterprise from the date that control commences
until the date that control ceases. The fnancial statements of subsidiary are included in the consolidated fnancial
statements from the date that control effectively commences until the date that the control effectively ceases.
Subsidiary companies are consolidated using the purchase method of accounting. The overseas subsidiary
companies i.e. Prime Exchange Co. (Pte) Limited, Singapore, Prime Exchange (UK) Limited and PBL Finance
(Hong Kong) Limited has a common fnancial year ending 31 December 2013. The conversion policy of subsidiary
companies is given below.
Particulars Price
Prime Exchange Co.
(Pte) Ltd., Singapore
PBL Exchange (UK)
Ltd.
PBL Finance
(Hong Kong)
Ltd.
For assets & liabilities Closing price 61.25420 128.07760 10.02690
For income & expenses Average price 63.24550 128.58945 10.16506
All intra-group transactions, balances, income and expenses are eliminated on consolidation. proft and loss
resulting from transactions between Group are also eliminated on consolidation.
2.1.3 Use of estimates and judgments
In the preparation of the fnancial statements management required to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amount of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
The most critical estimates and judgments are applied to calculate provision for loans, advances and investments.
2.1.4 Foreign currency transaction
a) Foreign currency
Items included in the fnancial statements of each entity in the group are measured using the currency of the
primary economic environment in which the entity operates, i e. the functional currency. The fnancial statements
of the group and the Bank are presented in BDT which is the Banks functional and presentation currency.
b) Foreign currencies translation
Foreign currency transactions are converted into equivalent BDT using the ruling exchange rates on the dates of
respective transactions as per BAS-21 The Effects of Changes in Foreign Exchange Rates. Foreign currency
balances held in US Dollar are converted into BDT at weighted average rate of inter-bank market as determined
by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other than US Dollar
are converted into equivalent US Dollar at buying rates of New York closing of the previous day and converted
into BDT equivalent.
Assets and liabilities & income and expenses of Off-shore Banking Units have been converted into BDT currency
@ US$1 = Taka 77.7500 (closing rate as at 31st December 2013) and Tk.78.1008 (average rate which represents
the year end).
c) Commitments
Commitments for outstanding forward foreign exchange contracts disclosed in these fnancial statements are
translated at contracted rates. Contingent liabilities / commitments for letters of credit and letters of guarantee
denominated in foreign currencies are expressed in BDT terms at the rates of exchange ruling on the balance
sheet date.
Annual Report 2013
213
d) Translation gains and losses
The resulting exchange transaction gains and losses are included in the proft and loss account, except those
arising on the translation of net investment in foreign subsidiary.
e) Foreign operations
The results and fnancial position of the Groups operations whose functional currency is not Bangladeshi Taka are
translated into Bangladeshi Taka as follows:
i) Assets and liabilities are translated at the exchange rate ruling at the balance sheet date.
ii) Income and expenses in the income statement are translated at an average rate approximating the exchange
rates at the year end;
iii) Resulting exchange differences are recognized as a separate component of equity.
iv) As per BAS 21 Foreign Currency Transactions, foreign currency denominated non-monetary items of the
OBUs are translated at historical rate, as the OBUs are considered as an integral part of the Banks operation
not a foreign operation due to specifc regulations governing the OBU and its unique nature.
f) Consolidation of Financial Statements of foreign operations
Consolidation, foreign exchange differences arising from the translation of net investments in foreign entities, as
well as any borrowings are taken into capital reserve. When a foreign operation is disposed of, such currency
translation differences are recognized in the income statement as part of the gain or loss on disposal.
2.1.5 Statement of cash fows
Statement of cash fows have been prepared in accordance with the Bangladesh Accounting Standard-7
Statement of Cash Flows under direct method as recommended in the BRPD Circular No. 14, dated June 25,
2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank.
2.1.6 Liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual maturity
term as per the following basis [Annexure-I & I (1)]:
i) Balance with other Banks and fnancial institutions, money at call and short notice, etc. are on the basis of their
maturity term;
ii) Investments are on the basis of their respective maturity;
iii) Loans and advances / investments are on the basis of their repayment schedule;
iv) Fixed assets are on the basis of their useful lives;
v) Other assets are on the basis of their realization / amortization;
vi) Borrowing from other Banks, fnancial institutions and agents, etc. are as per their maturity / repayment terms;
vii) Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal by the
depositors;
viii) Provisions and other liabilities are on the basis of their payment / adjustments schedule.
2.1.7 Reporting period
These fnancial statements cover one calendar year from 1 January to 31 December 2013.
Annual Report 2013
214
2.1.8 Offsetting
Financial assets and fnancial liabilities are offset and the net amount reported in the balance sheet when there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realize
the asset and settle the liability simultaneously (note-9a, 13a.1, 24a, 25a.1).
2.2 Assets and basis of their valuation
2.2.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank
and highly liquid fnancial assets which are subject to insignifcant risk of changes in their fair value, and are used
by the Bank management for its short-term commitments.
2.2.2 Loans, advances and lease / investments
a) Loans and advances are stated in the balance sheet on gross basis.
b) Interest / proft is calculated on a daily product basis but charged and accounted for on accrual basis. Interest
/ proft on classifed loans and advances / investments is kept in suspense account as per Bangladesh Bank
instructions and such interest / proft is not accounted for as income until realised from borrowers [note - 7a.10
(x)]. Interest / proft is not charged on bad and loss loans / investments as per guidelines of Bangladesh Bank.
Records of such interest amounts are kept in separate memorandum accounts.
c) Commission and discounts on bills purchased and discounted are recognized at the time of realization.
d) Provision for loans and advances / investments is made on the basis of year-end review by the management
following instructions contained in Bangladesh Bank BCD Circular no. 34, dated 16 November 1989, BCD
Circular no. 20, dated 27 December 1994, BCD Circular no. 12, dated 4 September 1995, BRPD Circular no.
16, dated 6 December 1998, BRPD Circular no. 9, dated 14 May 2001, BRPD Circular no.02, February 2005,
BRPD Circular no. 09, August 2005, BRPD Circular no. 17, dated 06 December 2005, BRPD circular no.32,
dated 27 October 2010, BRPD Circular no.14, dated 23.09.2012, BRPD Circular no19, dated 27.12.2012 and
BRPD Circular no 05, dated 29.05.2013. The rates of provision for loans and advances / investments are given
below:
Particulars Rate
General provision on unclassifed general loans and advances / investments 1%
General provision on unclassifed small enterprise fnancing 0.25%
General provision on interest receivable on loans / investments 1%
General provision on unclassifed loans / investments for housing
fnance, loans for professionals to set-up business and loans to share business
2%
General provision on unclassifed consumer fnancing other than housing fnance, loan
for professionals and loans for BGs/MBs/SDs
5%
General provision on Special Mention Account (SMA) except Short Term Agriculture Loans 0.25%-5%
Specifc provision on substandard loans and advances / investments 20%
Specifc provision on doubtful loans and advances / investments 50%
Specifc provision on bad / loss loans and advances / investments 100%
e) Loans and advances / investments are written off to the extent that (i) there is no realistic prospect of recovery,
and (ii) against which legal cases are pending for more than fve years as per guidelines of Bangladesh
Bank. These write off however will not undermine / affect the claim amount against the borrower. Detailed
memorandum records for all such write off accounts are meticulously maintained and followed up.
f) Amounts receivable on credit cards are included in advances to customers at the amounts expected to be
recovered.
Annual Report 2013
215
2.2.3 Investments
All investment securities are initially recognised at cost, being fair value of the consideration given, including
acquisition charges associated with the investment. Premiums are amortized and discounts accredited, using the
effective yield method and are taken to discount income. The valuation method of investments used are:
Held to maturity (HTM)
Investments which have fxed or determinable payments, and are intended to be held to maturity, other than
those that meet the defnition of held at amortized cost-others are classifed as held to maturity. Investment (HTM)-
BHBFC is shown in the fnancial statements at cost price.
Held for trading (HFT)
Investments classifed in this category are acquired principally for the purpose of selling or repurchasing -in short-
trading or if designated as such by the management. After initial recognition, investments are measured at fair
value and any change in the fair value is recognised in the statement of income for the period in which it arises.
These investments are subsequently revalued at current market value on weekly basis as per Bangladesh Bank
Guideline. Revaluation gain has been shown in revaluation reserve account & revaluation loss has been shown in
Proft & Loss account.
Value of investments has been enumerated as follows :
Items Applicable accounting value
Government treasury bills-HTM Amortized value
Government treasury bills-HFT Market value
Government treasury bonds-HTM Amortized value
Government treasury bonds-HFT Market value
Prize bond At cost
BHBFCs-debenture At cost
Investment in listed securities
These securities are bought and held primarily for the purpose of selling them in future or hold for dividend income.
These are reported at cost. Unrealized gains are not recognized in the proft and loss account. But provision for
diminution in value of investment is provided in the fnancial statements which market price is below the cost price
of investment as per Bangladesh Bank guideline (note-13a).
Investment in unquoted securities
Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any shortage of
book value over cost for determining the carrying amount of investment in unlisted securities.
Investments in subsidiary
Investment in subsidiaries is accounted for under the cost method of accounting in the Banks fnancial statements
in accordance with the Bangladesh Accounting Standard-28. Accordingly, investments in subsidiaries are stated
in the Banks balance sheet at cost, less impairment losses (if any).
2.2.4 Property, plant and equipment
Property, plant & equipment are recognized if it is probable that future economic benefts associated with the
assets will fow to the Bank and the cost of the assets can be reliably measured.
a) All fxed assets are stated at cost less accumulated depreciation as per BAS-16 Property, Plant and
Equipment. The cost of acquisition of an asset comprises its purchase price and any directly attributable
cost of bringing the asset to its working condition for its intended use inclusive of inward freight, duties and
non-refundable taxes.
Annual Report 2013
216
b) The Bank recognises in the carrying amount of an item of property, plant and equipment the cost of replacing
part of such an item when that cost is incurred if it is probable that the future economic benefts embodied
with the item will fow to the company and the cost of the item can be measured reliably. Expenditure incurred
after the assets have been put into operation, such as repairs and maintenance, is normally charged off as
revenue expenditure in the period in which it is incurred.
c) Revaluation of Land and Building: As per Bangladesh Accounting Standard (BAS-16) revaluation should be
made with suffcient regulatory compliance to ensure that the carrying amount does not differ materially from
that which would be determined using the fair value at the end of reporting period. The fair value of Land and
Buildings is usually determined from market based evidence by an appraisal that is normally undertaken by
professionally qualifed Valuers. Therefore, any upward increases of the assets have positive impact on the
capital adequacy of the Bank (50% of the asset revaluation is considered as Tier-2 Supplementary Capital).
With a view to qualify for higher capital adequacy, the bank revalued its Land and Buildings upon complying
with all regulatory requirements. As a result an increase of BDT 148.22 crore accounted for in the Balance
Sheet of the Bank at the end of 2013.
d) Depreciation is charged for the year at the following rates on reducing balance method on all fxed assets
other than vehicles, software and all fxed assets of ATM related on which straight line depreciation method
is followed and no depreciation is charged on land:
Category of fxed assets Rate
Land Nil
Buildings 2.50%
Furniture and fxtures 10%
Offce equipments 20%
Library books 20%
Vehicles 20%
Category of fxed assets (ATM Assets) Rate
Offce equipment 20%
e) For additions during the year, depreciation is charged for the remaining days of the year and for disposal
depreciation is charged up to the date of disposal.
f) On disposal of fxed assets, the cost and accumulated depreciation are eliminated from the fxed assets
schedule and gain or loss on such disposal is refected in the income statement, which is determined with
reference to the net book value of the assets and net sale proceeds.
g) Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset have been capitalized as part of the cost of the asset as per BAS-23.
h) Leasehold properties are recorded at present value of minimum lease payments or fair market value,
whichever is lower as per the provisions of BAS-17. The carrying value of leasehold properties is amortized
over the remaining lease term or useful of leasehold property, whichever is lower.
2.2.5 Intangible assets
a) An intangible asset is recognized if it is probable that the future economic benefts that are attributable to the
asset will fow to the entity and the cost of the assets can be measured reliably.
b) Software represents the value of computer application software licensed for use of the Bank, other than
software applied to the operation software system of computers. Intangible assets are carried at its cost, less
accumulated amortization and any impairment losses.
Initial cost comprises license fees paid at the time of purchase and other directly attributable expenditure that
are incurred in customizing the software for its intended use.
Annual Report 2013
217
c) Expenditure incurred on software is capitalized only when it enhances and extends the economic benefts
of computer software beyond their original specifcations and lives and such cost is recognized as capital
improvement and added to the original cost of software.
d) Software is amortized using the straight line method over the estimated useful life of 10 (ten) years commencing
from the date of the application software is available for use over the best estimate of its useful economic life.
2.2.6 Impairment of Assets
The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment is as
follows:
The Bank assesses at the end of each reporting period or more frequently if events or changes in circumstances
indicate that the carrying value of an asset may be impaired, whether there is any indication that an asset may
be impaired. If any such indication exits, or when an annual impairment testing for an asset is required, the bank
makes an estimate of the assets recoverable amount. When the carrying amount of an asset or cash-generating
unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down
to its recoverable amount by debiting to proft & loss account.
Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the carrying
amount of an asset may be impaired.
2.2.7 Investment properties
a) Investment property is held to earn rentals or for capital appreciation or both and the future economic benefts
that are associated with the investment property but not sale in the ordinary course of business.
b) Investment property is accounted for under cost model in the fnancial statements. Accordingly, after
recognition as an asset, the property is carried at its cost, less accumulated depreciation and impairment
loss.
c) Depreciation is provided on a reducing basis over the estimated life of the class of asset from the date of
purchase up to the date of disposal.
2.2.8 Other assets
Other assets include all balance sheet accounts not covered specifcally in other areas of the supervisory activity
and such accounts may be quite insignifcant in the overall fnancial condition of the Bank.
2.2.9 Securities purchased under re-sale agreement
Securities purchased under re-sale agreements are treated as collateralized lending and recorded at the
consideration paid and interest accrued thereon. The amount lent is shown as an asset either as loans and
advances to customers or loans to other banks.
The difference between purchase price and re-sale price is treated as interest received and accrued evenly over
the life of Repo agreement.
2.2.10 Receivables
Receivables are recognised when there is a contractual right to receive cash or another fnancial asset from
another entity.
2.2.11 Inventories
Inventories measured at the lower of cost and net realizable value.
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2.2.12 Leasing
Leases are classifed as fnance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee as per BAS-17 Leases. All other leases are classifed as operating leases
as per BAS-17 Leases.
The Bank as lessor
Amount due from lessees under fnance leases are recorded as receivables at the amount of the Banks net
investment in the leases (note-7a.3). Finance lease income is allocated to accounting periods so as to refect a
constant periodic rate of return on the banks net investment outstanding in respect of the leases.
The Bank as lessee
Assets held under fnance leases are recognised as assets of the Bank at their fair value at the date of acquisition
or, if lower, at the present value of the minimum lease payments (note-9a). The corresponding liability to the lessor
is included in the balance sheet as a fnance lease obligation (note-13a.9). Lease payments are apportioned
between fnance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged directly against income.
Assets held under fnance leases are depreciated over their expected useful lives on the same basis as owned assets.
2.2.13 Non-banking assets
There are no assets acquired in exchange for loan during the period of fnancial statements.
2.2.14 Reconciliation of inter-bank and inter-branch account
Accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled regularly and there are
no material differences which may affect the fnancial statements signifcantly. Un-reconciled entries / balances in
the case of inter-branch transactions as on the reporting date are not material.
2.3 Share capital
Ordinary shares are classifed as equity when there is no contractual obligation to transfer cash or other fnancial
assets.
2.4 Statutory reserve
As per Bank Companies Act, the Bank requires to transfer 20% of its current years proft before tax to statutory
reserve until such reserve equals to its paid up capital and we are complying accordingly.
2.5 Revaluation reserve
When an assets carrying amount is increased as a result of revaluation, the increase amount should be credited
directly to equity under the head of revaluation surplus / reserve as per BAS-16: Property, Plant and Equipment.
The Bank revalued of its land and buildings during the year 2008 & 2013 which are absolutely owned by the Bank
and the increase amount transferred to revaluation reserve accordingly. The tax effects on revaluation gain are
measured and recognised in the fnancial statements as per BAS-12: Income Taxes.
2.5.1 Minority interest in subsidiaries
Minority interest in business is an accounting concept that refers to the portion of a subsidiary corporations stock
that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is
always less than 50% of outstanding shares, else the corporation would cease to be a subsidiary of the parent.
Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owning
company to refect the claim on assets belonging to other, non-controlling shareholders. Also, minority interest is
reported on the consolidated income statement as a share of proft belonging to minority shareholders.
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2.5.2 Prime bank sub-ordinated bond
Prime Bank issued unsecured non-convertible sub-ordinated bond on 07 February 2010 after obtained approval
from Bangladesh Bank and Securities and Exchange Commission vide their letter # BRPD (BIC) 661 / 14B (P)
/2009-319, dated 31 December 2009 and SEC / CI / CPLC-205 / 09 / 282, dated December 23, 2009 respectively.
The Subordinated Bond is counted towards Tier- II capital of the Bank. The bond shall bear interest @ Tk.11.50%
per annum, payable semi annually in arrear on 07 August and 07 February of each year.
2.5.3 Share premium
Share premium is the capital that the Bank raises upon issuing shares that is in excess of the nominal value of the
shares. The share premium may be applied by the Bank in paying up unissued shares to be allotted to members
as fully paid bonus shares or writing-off the preliminary expenses of the Bank or the expenses of or the commission
paid or discount allowed on, any issue of shares or debentures of the Bank or in providing for the premium payable
on the redemption of any redeemable preference shares or of any debentures of the Bank. Share premium was
shown in accounts after deduction of income tax @ 3% on share premium as per fnance Act-2010.
2.7 Deposits and other accounts
Deposits by customers and banks are recognised when the Bank enters into contractual provisions of the
arrangements with the counterparties, which is generally on trade date, and initially measured at the consideration
received.
2.8 Borrowings from other banks, fnancial institutions and agents
Borrowed funds include call money deposits, borrowings, re-fnance borrowings and other term borrowings from
banks, fnancial institutions and agents. These are stated in the balance sheet at amounts payable. Interest paid /
payable on these borrowings is charged to the proft & loss account.
Disclosures of borrowings against Repo are shown in notes- 6a.11 to 6a.12 and 46
2.9 Basis for valuation of liabilities and provisions
2.9.1 Provision for current taxation
Provision for current income tax has been made as per prescribed rate in the Finance Ordinance, 2013 on the
accounting proft made by the Bank after considering some of the add backs to income and disallowances of
expenditure as per income tax laws in compliance with BAS-12 Income Taxes.
2.9.2 Deferred taxation
Deferred tax is accounted for in accordance with BAS 12: Income Taxes. Deferred tax normally results in a
liability being recognized within the Statement of Financial Position. BAS 12 defnes a deferred tax liability as
being the amount of income tax payable in future periods. Deferred tax is recognized on differences between
the carrying amounts of assets and liabilities in the fnancial statements and the corresponding tax bases used
in the computation of taxable proft, and are accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to
the extent that it is probable that taxable profts will be available against which deductible temporary differences,
unused tax losses or unused tax credits can be utilized. Such assets and liabilities are not recognized if the
temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable proft nor the accounting proft. Deferred
tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the company
intends to settle its current tax assets and liabilities on a net basis.
2.9.3 Benefts to the employees
The retirement benefts accrued for the employees of the Bank as on reporting date have been accounted for in
accordance with the provisions of Bangladesh Accounting Standard-19, Employee Beneft. Bases of enumerating
the retirement beneft schemes operated by the Bank are outlined below:
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220
a) Provident fund
Provident fund benefts are given to the permanent employees of the Bank in accordance with Banks service
rules. Accordingly a trust deed and provident fund rules were prepared. The Commissioner of Income Tax, Taxes
Zone-5, Dhaka has approved the Provident Fund as a recognized provident fund within the meaning of section
2(52), read with the provisions of part - B of the First Schedule of Income Tax Ordinance 1984. The recognition
took effect from July 07, 1997. The Fund is operated by a Board of Trustees consisting six members (03 members
from management and other 03 members from the Board of Directors) of the Bank. All confrmed employees of
the Bank are contributing 10% of their basic salary as subscription to the Fund. The Bank also contributes equal
amount of the employees contribution. Interest earned from the investments is credited to the members account
on yearly basis.
b) Gratuity fund
The Bank operates a funded gratuity scheme on Continuing Fund Basis, in respect of which provision is made
annually according to the recommendation of Actuary which is covering all its permanent eligible employees in
accordance with Bank Service Rules. The Second Secretary (Tax Exemption), National Board of Revenue, Segun
Bagicha, Dhaka has approved the Prime Bank Limited Employees Gratuity Fund as a recognized Gratuity Fund
(Letter Ref no. 08.01.0000.035.02.0016.2013/217, dated 22/07/2013) within the meaning of Para 2,3 & 4, read with
the provisions of Part - C of the First Schedule of Income Tax Ordinance 1984. The recognition took effect from
July 22, 2013. The Fund is operated by a Board of Trustees consisting six members (03 members from the Board
of Directors and other 03 members from management) of the Bank. Actuarial valuation of gratuity scheme has
been made to assess the adequacy of the liabilities provided for the scheme as per BAS-19 Employees Beneft.
c) Welfare fund
Prime Banks employees welfare fund is subscribed by monthly contribution of the employees. The Bank also
contributes to the Fund in accordance with Bank Service Rules. The Fund has been established to provide medical
support and coverage in the event of accidental death or permanent disabilities of the employees. Disbursement
of loan from the fund is done as per rules for employees welfare fund. Retirement beneft are also provided from
this fund.
d) Incentive bonus
10% of net proft after tax is given to the employees in every year as incentive bonus. This bonus amount is being
distributed among the employees based on their performance. The bonus amount is paid annually, normally frst
quarter of every following year and the costs are accounted for in the period to which it relates.
2.9.4 Provision for liabilities
A provision is recognised in the balance sheet when the Bank has legal or constructive obligation as a result of
a past event and it is probable that an outfow of economic beneft will be required to settle the obligations, in
accordance with the BAS 37 Provisions, Contingent Liabilities and Contingent Assets.
2.9.5 Provision for Off-balance sheet exposures
Off-balance sheet items have been disclosed under contingent liabilities and other commitments as per
Bangladesh Bank guidelines. As per BRPD Circular # 14, dated September 23, 2012, banks are advised to
maintain provision @1% against off-balance sheet exposures (L/C and Guarantee) in addition to the existing
provisioning arrangement.
2.9.6 Provision for nostro accounts
As per instructions contained in the circular letter no. FEPD (FEMO) / 01 / 2005-677 dated 13 September 2005
issued by Foreign Exchange Policy Department of Bangladesh Bank, provision is to be maintained the un-
reconciled debit balance of nostro account more than 3 months as on the reporting date in these fnancials. Since
there is no unreconciled entries which are outstanding more than 3 months provision has not been made.
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2.10 Revenue recognition
2.10.1 Interest income
In terms of the provisions of the BAS-18 Revenue, the interest income is recognised on accrual basis. Interest on
loans and advances ceases to be taken into income when such advances are classifed. It is then kept in interest
suspense. After the loans / investments is classifed as bad, interest / proft ceases to apply and recorded in a
memorandum account. Interest/Proft on classifed advances/investment is accounted for on a cash receipt basis.
2.10.2 Proft on investment (Islamic Banking Branches)
Mark-up on investment is taken into income account proportionately from proft receivable account. Overdue charge
/ compensation on classifed investments is transferred to proft suspense account instead of income account.
2.10.3 Investment income
Interest income on investments is recognised on accrual basis. Capital gain on investments in shares is also
included in investment income. Capital gain is recognised when it is realised.
2.10.4 Fees and commission income
Fees and commission income arising on services provided by the Bank are recognised on a cash basis.
Commission charged to customers on letters of credit and letters of guarantee is credited to income at the time of
effecting the transactions.
2.10.5 Dividend income on shares
Dividend income on shares is recognised during the period in which it is declared and ascertained.
2.10.6 Interest paid and other expenses (Conventional Banking Branches)
In terms of the provisions of BAS-1 Presentation of Financial Statements interest and other expenses are
recognised on accrual basis.
2.10.7 Proft paid on deposits (Islamic Banking Branches)
Proft paid to mudaraba depositors is recognised on accrual basis as per provisional rate. However, the fnal proft
is determined and to be paid to the depositors as per Annexure-F.
2.10.8 Dividend payments
Interim dividend is recognised when they are paid to shareholders. Final dividend is recognized when it is
approved by the shareholders.
The proposed dividend for the year 2013 has not been recognized as a liability in the balance sheet in accordance
with the BAS-10 : Events After the Reporting Period.
Dividend payable to the Banks shareholders is recognized as a liability and deducted from the shareholders
equity in the period in which the shareholders right to receive payment is established.
2.11 Risk management
The risk of Prime Bank Limited is defned as the possibility of losses, fnancial or otherwise. The risk management of
the Bank covers core risk areas of banking viz. credit risk, liquidity risk, market risk that includes foreign exchange
risk, interest rate risk, equity risk, operational risk and reputation risk arising from money laundering incidences.
The prime objective of the risk management is that the Bank evaluates and takes well calculative business risks
and thereby safeguards the Banks capital, its fnancial resources and proftability from various business risks
through its own measures and through implementing Bangladesh Banks guidelines and following some of the
best practices as under:
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2.11.1 Credit risk
It arises mainly from lending, trade fnance, leasing and treasury businesses. This can be described as potential
loss arising from the failure of a counter party to perform as per contractual agreement with the Bank. The failure
may result from unwillingness of the counter party or decline in his / her fnancial condition. Therefore, the Banks
credit risk management activities have been designed to address all these issues.
The Bank has segregated duties of the offcers / executives involved in credit related activities. A separate
Corporate Division has been formed at Head Offce which is entrusted with the duties of maintaining effective
relationship with the customers, marketing of credit products, exploring new business opportunities, etc. Moreover,
credit approval, administration, monitoring and recovery functions have been segregated. For this purpose, three
separate units have been formed within the credit division. These are (a) Credit Risk Management Unit (b) Credit
Administration Unit and (c) Credit Monitoring and Recovery Unit. Credit Risk Management Unit is entrusted with
the duties of maintaining asset quality, assessing risk in lending to a particular customer, sanctioning credit,
formulating policy / strategy for lending operation, etc. Adequate provision has been made on classifed loans /
investments is shown in note-13a.3.
A thorough assessment is done before sanction of any credit facility at Credit Risk Management Unit. The risk
assessment includes borrower risk analysis, fnancial analysis, industry analysis, historical performance of the
customer, security of the proposed credit facility, etc. The assessment process at Head Offce starts at Corporate
Division by the Relationship Manager / Offcer and ends at Credit Risk Management Unit when it is approved /
declined by the competent authority. Credit approval authority has been delegated to the individual executives.
Proposals beyond their delegation are approved / declined by the Executive Committee and / or the Management
of the Bank. Concentration of credit risk is shown in note -7a. 5.
In determining Single borrower / Large loan limit, the instructions of Bangladesh Bank are strictly followed. Internal
audit is conducted at periodical intervals to ensure compliance of Banks and Regulatory polices. Loans are classifed
as per Bangladesh Banks guidelines. Concentration of single borrower / large loan limit is shown in note-7a.9.
2.11.2 Liquidity risk
The object of liquidity risk management is to ensure that all foreseeable funding commitments and deposit
withdrawals can be met when due. To this end, the Bank is maintaining a diversifed and stable funding base
comprising of core retail and corporate deposits and institutional balance (note - 12a). Management of liquidity
and funding is carried out by Treasury Department under approved policy guidelines. Treasury front offce is
supported by a very structured Mid offce and Back offce. The Liquidity management is monitored by Asset
Liability Committee (ALCO) on a regular basis. A written contingency plan is in place to manage extreme situation.
2.11.3 Market risk
The exposure of market risk of the Bank is restricted to foreign exchange risk, interest rate risk and equity risk.
Foreign exchange risk
Foreign exchange risk is defned as the potential change in earnings due to change in market prices. The foreign
exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the customers against
underlying L/C commitments and other remittance requirements. No foreign exchange dealing on Banks account
was conducted during the year.
Treasury Department independently conducts the transactions and the back offce of treasury is responsible for
verifcation of the deals and passing of their entries in the books of account. All foreign exchange transactions
are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the month-end. All Nostro accounts
are reconciled on a monthly basis and outstanding entry beyond 30 days is reviewed by the management for its
settlement. The position maintained by the bank at the end of day was within the stipulated limit prescribed by the
Bangladesh Bank.
Interest rate risk
Interest rate risk may arise either from trading portfolio or non-trading portfolio. The trading portfolio of the Bank
consists of Government treasury bills of 28 days maturity. The short-term movement in interest rate is negligible or
nil. Interest rate risk of non-trading business arises from mismatches between the future yield of an asset and its
funding cost. Asset Liability Committee (ALCO) monitors the interest rate movement on a regular basis.
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223
Equity risk
Equity risk arises from movement in market value of equities held. The risks are monitored by Investment Committee
under a well designed policy framework. The market value of equities held was, however, lower than the cost price
at the balance sheet date (Annexure-B).
2.11.4 Reputation risk arising from money laundering incidences
Money laundering risk is defned as the loss of reputation and expenses incurred as penalty for being negligent in
prevention of money laundering. For mitigating the risks, the Bank has a designated Chief Compliance Offcer at
Head Offce and Compliance Offcers at branches, who independently review the transactions of the accounts to
verify suspicious transactions. Manuals for prevention of money laundering have been established and transaction
profle has been introduced. Training is continuously given to all category of Offcers and Executives for developing
awareness and skill for identifying suspicious activities / transactions.
2.11.5 Operational risk
Operational risk may arise from error and fraud due to lack of internal control and compliance. Management
through Internal Control and Compliance Division controls operational procedure of the Bank. Internal Control and
Compliance Division undertakes periodical and special audit of the branches and divisions at the Head Offce for
review of the operation and compliance of statutory requirements. The Audit Committee of the Board subsequently
reviews the reports of the Internal Control and Compliance Division.
2.11.6 Audit Committee Disclosures
The Audit Committee of the Board was duly formed by the Board of Directors of the Bank in accordance with the
BRPD Circular no. 12, dated December 23, 2002 of Bangladesh Bank.
Pursuant to the BRPD Circular no. 08 dated June 06, 2011 and BSEC notifcation no. SEC/CMRRCD/2006-158/129/
Admin/44 dated August 07, 2012 on Corporate Governance, the current Committee is constituted with the following
5 (Five) members of the Board and it is also comply with the BRPD Circular no. 11, dated October 27, 2013.
Sl No. Name Status with Bank Status with Committee
i) Prof. Ainun Nishat Independent Director Chairman
ii) Mr. M. A. Khaleque Director Member
iii) Mr. Khandker Mohammad Khaled Director Member
iv) Mr. Manzur Murshed Independent Director Member
v) Prof. Dr. Mohammad Aslam Bhuiyan Independent Director Member
During the year 2013, the Audit Committee of the Board conducted 9 (Nine) meetings in which the important
issues were discussed / reviewed are presented in note no. 47.
2.11.7 Risk Management Committee Disclosures
The Board of Directors constituted with the following 5 (Five) members Risk Management Committee of the Board,
the third Committee of the Board besides the Executive Committee and the Audit Committee in consistence with
Bank Company (Amendment) Act 2013 and it is also comply with the BRPD Circular no. 11, dated October 27, 2013.
Sl No. Name Status with Bank Status with Committee
i) Mrs. Nasim Anwar Hossain Director Chairman
ii) Mr. Khandker Mohammad Khaled Director Member
iii) Mr. Mafz Ahmed Bhuiyan Director Member
iv) Mrs. Salma Huq Director Member
v) Mrs. Muslima Shirin Director Member
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224
The Risk Management Committee of the Board has formed soon after the Central Banks instruction issued in
October 27, 2013. The Committee conducted 1 (One) meeting on 28/12/2013 where the following important issues
were discussed / reviewed:
i) Determine risk management framework, policy formulation, supervision techniques and above all continuous
training;
ii) Drawing appropriate TOR for the Committee in conformity with the Bank Company Act and Central Bank
guidelines, considering the objectives of the Committee, experience and professional personnel with proper
job description to be assigned the responsibilities;
iii) Constituted the Management Committee on core Risk Management. The Management Committee will use
check list/ Questionnaires to ascertain the effectiveness of the mitigation of tools and gaps thereof and they
will update the check list / questionnaires and taking appropriate actions as and when required;
iv) Monitoring of large loans should be increased, insurance coverage and documentation of other collateral
should be in order so that risks can be covered. Management should increase lending to SMEs in order to
reduce effect of shock on Capital Adequacy;
v) Recovery drives to be strengthened for negative shift of NPL categories. Management should also take
appropriate steps to bring the NPL ratio below 5% as suggested by Central Bank;
vi) ALCO should monitor the liquidity and FX risks to keep the shock at bare minimum;
vii) Management should get the rating done by the borrowers as per decision taken by the Board and quarterly
report should be submitted regarding the progress of rating to the Risk Management Committee of the
Board;
viii) IT Risk Management and Information Security are very important now a day for the Bank. Experience and
technical personnel should be appointed so that it can function properly. The activity report of the Department
along with the compliance status of Central Banks guidelines should be submitted to the Risk Management
Committee of the Board on quarterly basis;
ix) The Management Committee advised to incorporate of appropriate clause / provision in the relevant sanction
advice to the effect that Banks auditors / internal audit team would periodically visit for review of the operation
of business under its fnancing.
2.12 Earnings per share
Basic earnings per share
Basic earnings per share has been calculated in accordance with BAS 33 Earnings per Share which has been
shown on the face of the proft and loss account. This has been calculated by dividing the basic earnings by the
weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share
No diluted earnings per share is required to be calculated for the year as there was no scope for dilution during
the year under review.
2.13 Events after the reporting period
Where necessary, all the material events after the reporting period have been considered and appropriate
adjustment / disclosures have been made in the fnancial statements.
2.14 Directors responsibility on fnancial statements
The Board of Directors takes the responsibility for the preparation and presentation of these fnancial statements.
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225
2.15 Memorandum items
Memorandum items are maintained to have control over all items of importance and for such transactions where
the Bank has only a business responsibility and no legal commitment. Bills for collection, Stock of travelers
cheques, savings certifcates, wage earners bonds and other fall under the memorandum items. However, Bills for
Collection is shown under contingent liabilities as per Bangladesh Banks format of reporting.
2.16 Related party transaction
Related party transaction is a transfer of resources, services or obligation between related parties, regardless of
whether a price is charged. Detail of related parties transaction are given in note-48.
2.17 Information about business and geographical segments
Segmental information is presented in respect of the Groups business and of Prime Bank Limited.
Business segments
Business segments report consists of products and services whose risks and returns are different from those of
other business segments. These segments comprise Conventional Banking including Off-shore Banking Units,
Islamic Banking, Prime Bank Investment Limited and Prime Bank Securities Limited. Business segments report
are shown in Annexure-H.
Geographical segments
Geographical segments report consists of products and services within a particular economic environment
where risks and returns are different from those of other economic environments. These segments comprise
of Prime Bank Limited, Off-shore Banking Units, Prime Bank Investment limited, Prime Bank Securities Limited,
Prime Exchange Co. (Pte.) Ltd, Singapore, PBL Exchange (UK) Ltd. and PBL Finance (Hong Kong) Limited.
Geographical segments report are shown in Annexure-H.
Inter-segment transactions are generally based on inter-branch fund transfer measures as determined by the
management. Income, expenses, assets and liabilities are specifcally identifed with individual segments. Based
on such allocation, segmental balance sheet as on 31 December 2013 and segmental proft and loss account for
the year ended 31 December 2013 have been prepared.
2.18 Compliance report on Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS)
The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of Bangladesh
Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS). While preparing the fnancial
statements, Prime Bank applied all the applicable BAS and BFRS as adopted by ICAB. Details are given below:
Name of the BAS BAS no Status
Presentation of Financial Statements 1 Applied*
Inventories 2 Applied
Statement of Cash Flows 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the reporting period 10 Applied
Construction Contracts 11 N/A
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Leases 17 Applied
Revenue 18 Applied
Employee Benefts 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
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226
Name of the BAS BAS no Status
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Beneft Plans 26 N / A**
Consolidated and Separate Financial Statements 27 Applied
Investments in Associates 28 Applied
Interests in Joint Ventures 31 N / A
Financial Instruments: Presentation 32 Applied*
Earnings per share 33 Applied
Interim Financial Reporting 34 Applied ***
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Financial Instruments: Recognition and Measurement 39 Applied *
Investment Property 40 Applied
Agriculture 41 N / A
Name of the BFRS BFRS no. Status
First time adoption 1 N / A
Share Based Payment 2 N / A
Business Combinations 3 N / A
Insurance Contract 4 N / A
Non-current Assets Held for Sale and Discontinued Operations 5 N / A
Exploration for and Evaluation of Mineral Resources 6 N / A
Financial Instruments: Disclosure 7 Applied
Operating Segments 8 Applied
Consolidated Financial Statements 10 Applied
Joint Arrangement 11 N / A
Disclosure of Interest in other entities 12 N / A
Fair Value Measurement 13 Applied
N/A= Not Applicable
* In order to comply with certain specifc rules and regulations of the local Central Bank (Bangladesh Bank) which
are different to BAS/BFRS, some of the requirements specifed in these BAS/BFRSs are not applied. Refer below
for such recognition and measurement differences that are most relevant and material to the Bank and the Group.
** This Standard regards a retirement beneft plan as a reporting entity separate from the employers of the
participants in the plan. Therefore, it is not applicable for the Banks annual report as it is the employer and not the
retirement beneft plan itself.
*** The objective of BAS 34 is to prescribe the minimum content of an interim fnancial report and to prescribe the
principles for recognition and measurement in complete or condensed fnancial statements for an interim period
and hence it is not applicable for annual fnancial statements. However, the Bank being a listed entity in Dhaka and
Chittagong Stock Exchanges regularly publishes Interim Financial Report complying with BAS 34.
New and amended standards adopted by the Bank and the Group
There are no new standards, amendments to standards and interpretations that are effective for the frst time for
the fnancial year ended 31 December 2013 that have a signifcant impact on the Group and the Bank.
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227
New and amended standards and interpretations not yet adopted by the Bank and the Group
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning from 1 January 2014 or later, and have not been applied in preparing these consolidated fnancial
statements. None of these is expected to have a signifcant effect on the consolidated fnancial statements of the
Group and the Bank. Although International Accounting Standards Board (IASB) has issued a new standard (IFRS
9) along with related amendments to existing standards (IAS/BAS 32, 39) but none of these have been adopted
and/or endorsed locally as BAS/BFRS and as such any possible impact could not be determined.
Difference between BAS/BFRS and Bangladesh Bank Regulation:
Provision for loans and advances
BAS/BFRS: As per BAS 39 an entity should start the impairment assessment of loans and advances by
considering whether objective evidence of impairment exists for those loans that are individually signifcant.
For loans and advances which are not individually signifcant, the assessment can be performed on an
individual or collective (portfolio) basis. Such provision shall be netted off against loans and advances.

As per BRPD Circular no. 14 & 15 dated 23 September 2012 and BRPD Circular no. 19 dated 27 December
2012 , a general provision at 0.25% to 5% under different categories of unclassifed loans (standard/ SMA loans)
should be maintained regardless of objective evidence of impairment. And, specifc provision for sub-standard
loans, doubtful loans and bad losses should be provided at 20%, 50% and 100% respectively for loans and
advances depending on the duration of overdue. Also, a general provision at 1% should be provided for all off-
balance sheet exposures. Such provision policies are not specifcally in line with those prescribed by BAS 39. Also
for disclosure such provision shall be shown as liability as opposed to netting off against loans and advances.
Repo and reverse repo transaction of Government securities (i.e. treasury bills and bonds)
BAS/BFRS: When an entity sells a fnancial asset and simultaneously enters into an agreement to repurchase
the asset (or a similar asset) at a fxed price on a future date (REPO), the arrangement is accounted for as
a deposit as opposed to a sale, and the underlying asset continues to be recognised in the entitys fnancial
statements. Such transaction do not satisfy derecognition criteria specifed in BAS 39. Same rule applies to the
opposite side of the transaction (Reverse REPO). As per Bangladesh Bank circulars/guidelines, when a bank
sells a fnancial asset and simultaneously enters into an agreement to repurchase the asset (or a similar asset)
at a fxed price on a future date (REPO), the arrangement is accounted for as a normal sales transactions
and the fnancial assets should be derecognised in the sellers book andrecognised in the buyers book.
Cash and cash equivalent
BAS/BFRS: As per BAS 7 cash and cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignifcant risk of changes in value. Therefore,
some items like Balance with Bangladesh Bank on account of CRR/SLR are not part of cash and cash equivalent
as those are not readily available.
As per Bangladesh Bank circulars/guidelines, balance with Bangladesh Bank is part of cash and cash equivalent
regardless of any restriction.
2.19 Approval of fnancial statements
The fnancial statements were approved by the Board of Directors on 4 March, 2014
2.20 General
a) These fnancial statements are presented in Taka, which is the Banks functional currency. Figures appearing
in these fnancial statements have been rounded off to the nearest Taka.
b) The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided for
in the books of the Bank.
c) Figures of previous year have been rearranged whenever necessary to conform to current years presentation.
Annual Report 2013
228
Amount in Taka
2013 2012
3 Consolidated cash
i Cash in hand
Prime Bank Limited (note-3a.1) 2,683,867,027 2,059,503,576
Prime Bank Investment Limited 21,223 7,346
Prime Bank Securities Limited 7,011 4,895
Prime Exchange Co. Pte. Ltd., Singapore 22,029,154 9,710,498
PBL Exchange (UK) Ltd. - -
PBL Finance (Hong Kong) Limited - -
2,705,924,415 2,069,226,315
ii Balance with Bangladesh Bank and its agent bank(s)
Prime Bank Investment Limited - -
Prime Bank Securities Limited - -
Prime Exchange Co. Pte. Ltd., Singapore - -
14,958,779,761 14,117,939,937
17,664,704,176 16,187,166,252
3a Cash of the Bank
3a.1 Cash in hand
In local currency 2,632,476,975 1,971,441,919
In foreign currency 51,390,052 88,061,657
2,683,867,027 2,059,503,576
3a.2 Balance with Bangladesh Bank and its agent bank(s)
In local currency 13,797,228,087 10,816,492,170
In foreign currency 773,672,374 2,881,505,675
14,570,900,461 13,697,997,845
Sonali Bank as agent of Bangladesh Bank (Local currency) 387,879,300 419,942,092
14,958,779,761 14,117,939,937
17,642,646,788 16,177,443,513
Reconciliation statements regarding Bangladesh Bank balance are given Annexure-A-1
3a.3 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained in accordance
with section 33 of Bank Companies Act, 1991 and MPD circular nos.05, dated December 01, 2010
The Cash Reserve Requirement on the Banks time and demand liabilities at the rate of 6% has been calculated
and maintained with Bangladesh Bank in current account and 19% Statutory Liquidity Ratio for conventional
banking and 11.50% Statutory Liquidity Ratio for Islamic banking , including CRR, on the same liabilities has also
been maintained in the form of treasury bills, bonds and debentures including FC balance with Bangladesh Bank.
Both the reserves maintained by the Bank are in excess of the statutory requirements, as shown below:
a) Cash Reserve Requirement
Required reserve 11,873,385,700 10,711,548,230
Actual reserve maintained (note-3a.2) 13,797,228,087 10,816,492,170
Surplus / (defcit) 1,923,842,387 104,943,940
b) Statutory Liquidity Ratio
Required reserve (including CRR) 36,528,669,420 32,672,594,350
Actual reserve maintained (including CRR) - note-3a.5 73,799,812,639 58,503,355,882
Surplus / (defcit) 37,271,143,219 25,830,761,532
Total required reserve 36,528,669,420 32,672,594,350
Actual reserve held 73,799,812,639 58,503,355,882
Total surplus 37,271,143,219 25,830,761,532
3a.4 Maturity grouping of cash
Payable on demand - -
Up to 1 month 5,769,261,088 5,399,669,573
Over 1 month but not more than 3 months - -
Over 3 months but not more than 6 months - -
Over 6 months but not more than 1 year - -
Over 1 year but not more than 5 years - -
Over 5 years 11,873,385,700 10,777,773,940
17,642,646,788 16,177,443,513
Annual Report 2013
229
Amount in Taka
2013 2012
3a.5 Held for Statutory Liquidity Ratio
Cash in hand (note -3a.1) 2,683,867,027 2,059,503,576
Balance with Bangladesh Bank and its agent bank(s) (note-3a.2) 14,958,779,761 14,117,939,937
Government securities (note-6a.ii) 5,246,989,603 1,635,648,489
Government bonds (note-6a.ii) 48,905,409,848 39,457,906,766
Bangladesh Bank bills (note-6a.ii) 1,994,766,400 1,217,357,114
Debenture of HBFC (note-6a.ii) 10,000,000 15,000,000
73,799,812,639 58,503,355,882
4 Consolidated balance with other banks and fnancial institutions
In Bangladesh
Prime Bank Limited (note-4a.1) 244,165,129 251,389,642
Prime Bank Investment Limited 87,665,728 90,411,112
Prime Bank Securities Limited 134,757,244 185,845
466,588,101 341,986,599
Less: Inter-company transaction 87,881,025 90,452,210
378,707,076 251,534,389
Outside Bangladesh
Prime Bank Limited (note-4a.2) 626,533,772 1,392,741,405
PBL Exchange (UK) Ltd. 36,333,566 24,335,982
PBL Finance (Hong Kong) Limited 15,090,284 12,170,729
709,510,273 1,466,724,570
1,088,217,349 1,718,258,959
4a Balance with other banks and fnancial institutions of the Bank
In Bangladesh (note-4a.1) 244,165,129 251,389,642
Outside Bangladesh (note-4a.2) 626,533,772 1,392,741,405
870,698,901 1,644,131,047
4a.1 In Bangladesh
Current account
Agrani Bank Ltd., Principal Branch, Dhaka 470,903 477,554
Agrani Bank Ltd., Purana Paltan Branch, Dhaka 93,129 94,739
Agrani Bank Ltd., Bhairab Bazar, Kishoregonj 2,500,000 3,500,000
Agrani Bank Ltd., Mirzapur Branch, Mirzapur 11,394,974 5,778,964
AB Bank Ltd. Principal Branch, Dhaka 2,997,108 2,997,108
The City Bank Ltd, Dhaka 274,369 274,719
Dutch-Bangla Bank Ltd., Mirzapur Branch, Tangail 499,000 -
Exim Bank Ltd., Motijheel Branch, Dhaka 1,694,141 1,696,291
Islami Bank BD Ltd., Local Offce, Dhaka 7,306,518 7,347,825
Islami Bank BD Ltd., Jhikorgacha 483 1,000
Janata Bank Ltd., Local Offce, Dhaka 93,554,383 13,565,017
Janata Bank Ltd., Ishwardi Branch 75,014 3,288,797
Janata Bank Ltd., Corporate Branch, Bogra 1,292 1,292
National Bank Ltd., Rangpur Branch 45,665 13,123,089
Pubali Bank Ltd., Dhaka Stadium Branch, Dhaka 1,194,719 1,167,259
Rupali Bank Ltd. ,Motijheel Branch, Dhaka 3,123,755 9,562,393
Sonali Bank Ltd., Rangpur Branch 59,884 3,045,665
Sonali Bank Ltd., Sunamganj Branch - 23,417,396
Sonali Bank Ltd., Local Offce, Dhaka 7,130,137 17,178,093
Sonali Bank Ltd., Narayanganj 688,232 6,932,833
Sonali Bank Ltd., Fakirapool Branch, Dhaka 543,353 599,503
Sonali Bank Ltd., Faridpur Branch, Faridpur 32,824,908 63,022
Sonali Bank Ltd., Narsingdi Branch 3,515,663 10,542,555
Sonali Bank Ltd., Satkhira 3,294,338 16,509,210
Standard Chartered Bank, Bangladesh - 3,621,134
United Commercial Bank Ltd., Principal Branch, Dhaka 7,446,192 7,448,342
Off-shore Banking Units 347,658,546 166,621,451
Uttara Bank Ltd., Local Offce, Dhaka 174,841 176,341
528,561,547 319,031,592
Less: Off-shore Banking Units 347,658,546 166,621,451
180,903,001 152,410,141
Annual Report 2013
230
Amount in Taka
2013 2012
Special notice deposit accounts
Agrani Bank Ltd., Principal Branch, Dhaka 307,870 295,926
Agrani Bank Ltd., Takerhat Branch 3,227 2,112
ICB Islamic Bank Ltd., Principal Offce, Motijheel, Dhaka 14,334 15,599
ICB Islamic Bank Ltd., Sylhet 17,016 18,971
Dutch-Bangla Bank Ltd., Local Offce 41,996,514 62,733,959
Janata Bank Ltd., Local Offce, Dhaka 5,267,539 5,028,074
National Bank Ltd., Narayanganj Branch, Dhaka 15,473,223 30,705,174
Sonali Bank Ltd., Bhairab Bazar, Kishoregonj 950 950
Social Islami Bank Ltd., Principal Branch, Dhaka 12,603 12,433
63,093,276 98,813,198
Savings accounts
Al Arafah Islami Bank Ltd., Dhaka 64,622 63,492
Bank Al Falah Ltd., Dhaka 36,595 36,109
Social Islami Bank Ltd., Principal Branch, Dhaka 67,635 66,702
168,852 166,303
Fixed deposits - -
- -
244,165,129 251,389,642
4a.2 Outside Bangladesh (NOSTRO Accounts)
Current account
AB Bank Ltd., Mumbai, India 319,322 327,947
Banca Nazionale, del Lavoro, Rome, Italy - 708,632
Bank of Bhutan Phuentsholing, Bhutan 2,180,840 12,070,342
The Bank of Tokyo Mitsubishi Ltd., Japan 3,235,755 8,633,221
SMBC, Tokyo, Japan 3,216,184 10,439,935
Citibank N.A., Mumbai, India 584,056 621,790
Citibank N.A., London , UK 4,527,980 14,492,798
Citibank N.A., New York, USA 8,797,334 56,046,201
Citibank N.A., New York, USA (Off-shore Banking) - 429,879
Commerz Bank AG, Frankfurt , Germany (EURO) 159,786,208 54,469,945
Commerz Bank AG, Frankfurt , Germany (US$) 8,110,938 251,018
Commonwealth Bank of Australia, Australia 3,147,975 5,033,160
Credit Suisse (First Boston), Switzerland - 5,927,202
Deutsche Bank Trust Company Americas 8,602,136 -
Habib American Bank, New York, USA 9,335,805 7,927,789
Habib Metropolitan Bank Ltd, Karachi 30,785,285 18,116,329
Habib Bank Ltd, Karachi 17,697,455 -
HDFC Bank Limited, Kolkata, India 32,091,018 32,118,229
HSBC Bank USA, New York, USA 14,632,726 151,564,812
HSBC Bank Middle East Ltd., Karachi, Pakistan - 84,844
HSBC PLC, London, UK 14,736,883 50,043,048
HANA Bank, Seoul 570,635 3,755,849
ICICI Bank Ltd, Mumbai, India 24,531,556 10,295,770
Intesa Sanpaolo SPA, Milano, Italy 828,466 375,130
J. P. Morgan Chase Bank, New York 4,723,254 37,666,149
Korea Exchange Bank Seoul 3,311,468 -
Mashreq Bank PSC, New York, USA 6,989,715 527,580,408
Mashreq Bank PSC, Mumbai, India 19,477,075 9,429,091
National Westminister Bank, London, UK 26,878,103 19,477,472
The National Commercial Bank, Jeddah 2,306,917 3,376,263
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal 6,553,566 6,730,567
Peoples Bank, Colombo, Sri Lanka 21,846,696 57,071,561
Skandinaviska Enskilda Banken, Sweden 469,724 2,641,429
Sonali Bank, Kolkata, India 3,547,477 9,146,985
Standard Chartered Bank, Kolkata, India 25,255,331 5,800,084
Standard Chartered Bank, New York, USA 15,925,386 55,539,532
Standard Chartered Bank, Singapore 51,956,036 132,751,323
Standard Chartered Bank, Frankfurt, Germany 5,315,001 8,715,241
The Bank of Nova Scotia, Toronto, Canada 4,849,610 -
Unicredito Italiano SPA, Milano, Italy 55,245,752 34,428,476
Wells Fargo Bank N. A. Newyork 18,581,484 38,652,955
Zuercher Kantonal Bank, Zurich 5,582,619 -
(Annexure -A) 626,533,772 1,392,741,405
Annual Report 2013
231
Amount in Taka
2013 2012
4a.3 Maturity grouping of balance with other banks and fnancial institutions
Payable on demand 807,436,773 1,545,151,546
Up to 1 month 16,885 16,630
Over 1 month but not more than 3 months 63,093,276 98,813,198
Over 3 months but not more than 6 months - -
Over 6 months but not more than 1 year 151,967 149,673
Over 1 year but not more than 5 years - -
Over 5 years - -
870,698,901 1,644,131,047
5 Money at call and short notice - -
6 Consolidated investments
Government
Prime Bank Limited (note-6a) 56,147,165,851 44,936,697,967
56,147,165,851 44,936,697,967
Others
Prime Bank Limited (note-6a) 792,350,658 925,206,241
Prime Bank Investment Limited 1,066,059,442 1,399,569,819
Prime Bank Securities Limited 745,550,534 741,051,850
2,603,960,634 3,065,827,910
58,751,126,485 48,002,525,877
6a Investments of the Bank
i) Investment classifed as per Bangladesh Bank Circular:
Held for trading (HFT) 18,428,655,503 9,939,151,576
Held to maturity (HTM) 37,722,234,948 35,007,440,491
Other securities 788,626,058 915,312,141
56,939,516,509 45,861,904,208
ii) Investment classifed as per nature:
a) Government securities:
28 days treasury bills - -
91 days treasury bills 1,883,343,497 1,075,511,325
182 days treasury bills 502,226,451 381,038,068
364 days treasury bills 2,861,419,655 1,293,085,866
5 years treasury bills - -
5,246,989,603 2,749,635,259
30 days Bangladesh Bank bills 1,994,766,400 1,217,357,114
Government bonds:
Prize bonds 6,275,400 5,105,900
Government bonds - (note-6a.2) 48,899,134,448 40,964,599,694
48,905,409,848 40,969,705,594
56,147,165,851 44,936,697,967
b) Other investments:
Debentures of HBFC-bearing interest rate @ 5.5% (note-6a.3) 10,000,000 15,000,000
Dhaka Bank Subordinated Bond interest rate @ 11.65% (note-6a.4) 171,430,361 171,430,361
National Bank Subordinated Bond interest rate @ 11.50% (note-6a.5) 161,328,889 201,661,111
DBH Zero coupon bond interest rate @ 8.25% (note-6a.6) - 54,663,022
IDLC Zero coupon bond interest rate @ 8.25% (note-6a.7) - 18,152,329
Orascom bond interest rate @ 13.50% (note-6a.8) 100,075,000 150,112,500
Shares (note-6a.9) 349,516,408 314,186,918
792,350,658 925,206,241
56,939,516,509 45,861,904,208
Annual Report 2013
232
Amount in Taka
2013 2012
6a.1 Maturity grouping of investments
On demand - -
Up to 1 month 1,867,566,359 4,539,349,166
Over 1 month but not more than 3 months 12,748,348,547 615,376,253
Over 3 months but not more than 6 months 1,883,343,497 955,636,877
Over 6 months but not more than 1 year 2,065,293,139 1,022,318,981
Over 1 year but not more than 5 years 43,604,902 15,098,785,391
Over 5 years 38,331,360,065 23,630,437,541
56,939,516,509 45,861,904,208
6a.2 Government bonds
Name of the bonds
HTM
3 years T & T bonds - -
2 years Bangladesh Government Islami Investment Bonds 850,000,000 850,000,000
5 years Bangladesh Government treasury bonds (7.80%-9.00%) 6,660,776,280 6,652,563,435
37,712,234,948 34,992,440,491
HFT
3 years T & T bonds - -
2 years Bangladesh Government treasury bonds (10.07%-10.98%) 4,500,615,831 -
15 years Bangladesh Government treasury bonds (11.88%-12.42%) 591,279,128 677,658,330
20 years Bangladesh Government treasury bonds (12.10%-12.48%) 578,671,771 469,653,165
11,186,899,500 5,972,159,203
48,899,134,448 40,964,599,694
6a.3 Debentures of Bangladesh House Building Finance Corporation
- at redeemable value
Principal 100,000,000 100,000,000
Add: Accrued Interest - -
Less: Redeemed up to 31 December 2013 (90,000,000) (85,000,000)
Redeemable value 10,000,000 15,000,000
6a.4 Dhaka Bank Ltd. Subordinated Bond
Opening balance 171,430,361 171,595,403
Add: Interest accrued during the year 19,805,000 19,805,000
Less: Principal redemption during the year - -
Less: Interest received during the year (19,805,000) (19,970,042)
6a.5 National Bank Ltd. Subordinated Bond
Opening balance 201,661,111 201,661,111
Less: Principal redemption during the year (40,000,000) -
6a.6 DBH Zero Coupon Bond
Opening balance 54,663,022 151,813,187
Less: Principal redemption during the year (37,500,000) (75,000,000)
Redeemable value - 54,663,022
Annual Report 2013
233
Amount in Taka
2013 2012
6a.7 IDLC Zero Coupon Bond
Opening balance 18,152,329 50,402,795
Add: Interest accrued during the year 650,971 2,771,904
Redeemable value - 18,152,329
6a.8 Orascom Bond
Principal 150,112,500 200,150,000
6a.9 Investment in shares
Quoted
AB Bank Ltd. 39,201,794 32,918,300
Bank Asia Ltd. 24,429,908 17,987,037
BRAC Bank Ltd. 21,243,239 21,243,239
The City Bank Ltd. 29,538,943 18,648,926
DESCO 19,397,475 27,121,550
Dhaka Bank Ltd. 28,551,258 20,855,770
Eastern Bank Ltd. 37,410,456 29,608,038
Federal Insurance Company Bangladesh Ltd. 20,380 20,380
Jamuna Bank Ltd. 14,338,010 14,338,010
Lanka Bangla Finance Ltd. 23,395,426 23,395,426
M. I. Cement Factory Ltd. - -
MJL Bangladesh Ltd - -
National Bank Ltd. 27,970,098 21,314,190
NLI First MF - 9,980,000
One Bank Ltd. 22,130,581 19,867,211
Titas Gas - -
Uttara Bank Ltd. 37,009,980 37,009,980
324,637,548 294,308,058
Unquoted as on 31 December 2013
Central Depository Bangladesh Limited (CDBL) 15,694,430 15,694,430
Investment in SWIFT 4,184,430 4,184,430
MSF 5,000,000 -
24,878,860 19,878,860
(Annexure -B) 349,516,408 314,186,918
6a.10 (i) Disclosure regarding outstanding Repo
Counterparty name Agreement date Reversal date Amount
-
Total -
6a.10 (ii) Disclosure regarding outstanding Reverse Repo
Counterparty name Agreement date Reversal date Amount
- -
Total -
6a.11 Disclosure regarding Overall transaction of Repo and Reverse Repo
Counterparty name
Minimum Outstanding
during the year
Maximum
outstanding
during the year
Daily average
outstanding
during the year
Securities sold under Repo
With Bangladesh Bank 330,735,000 7,195,180,000 952,239,397
With other Banks & FIS 805,836,474 4,452,848,146 453,040,315
Securities purchased under Reverse Repo
From Bangladesh Bank 700,000,000 2,000,000,000 16,712,329
From other Banks & FIS 685,951,835 1,962,616,000 43,224,464
Annual Report 2013
234
Amount in Taka
2013 2012
7 Consolidated loans, advances and lease / Investments
154,089,777,718 160,192,828,280
Less: Inter-company transactions 3,711,608,286 3,817,920,298
150,378,169,432 156,374,907,982
Consolidated bills purchased and discounted (note-8) 8,631,546,764 8,667,419,387
159,009,716,196 165,042,327,369
7a Loans, advances and lease / investments of the Bank
i) Loans, cash credits, overdrafts, etc.
Inside Bangladesh
Secured overdraft / Quard against TDR 33,752,101,030 38,485,351,177
Cash credit / Murabaha 22,698,310,397 22,797,516,730
Loans (General) 33,237,874,555 30,396,292,698
House building loans 3,806,849,550 3,615,477,187
Loans against trust receipt 11,147,870,482 17,724,668,458
Payment against document 265,174,901 679,994,650
Retail loan 12,138,261,922 11,303,238,002
Lease fnance / Izara (note - 7a.3) 5,888,494,557 8,186,003,760
Credit card 1,042,299,553 915,407,506
SME loan 614,841,924 988,948,830
Hire purchase 7,950,577,640 8,118,559,532
Other loans and advances 14,838,225,441 10,229,248,428
147,380,881,952 153,440,706,958
Outside Bangladesh - -
147,380,881,952 153,440,706,958
ii) Bills purchased and discounted (note-8a)
Payable Inside Bangladesh
Inland bills purchased 4,376,377,482 5,499,981,492
Payable Outside Bangladesh
Foreign bills purchased and discounted 1,831,500,795 1,949,160,113
6,207,878,277 7,449,141,605
153,588,760,229 160,889,848,563
7a.1 Net loans, advances and lease / investments
Gross performing loans, advances and lease / investments (note-7a) 153,588,760,229 160,889,848,563
Less:
Non-performing loans, advances and lease / investments (note-7a.11) 7,814,501,727 6,168,499,440
Interest suspense (note-13a.6) 1,913,098,167 620,359,575
Provision for loans, advances and lease / investments (note-13a,13a.3, 13a.5) 5,433,236,415 3,983,765,735
15,160,836,309 10,772,624,749
138,427,923,920 150,117,223,814
7a.2
Residual maturity grouping of loans, advances and lease /
investments including bills purchased and discounted
Repayable on demand - -
Up to 1 month 34,355,437,436 36,933,559,434
Over 1 month but not more than 3 months 33,818,860,912 34,024,057,815
Over 3 months but not more than 1 year 46,707,588,279 44,801,021,311
Over 1 year but not more than 5 years 29,030,155,201 42,229,227,840
Over 5 years 9,676,718,401 2,901,982,163
153,588,760,229 160,889,848,563
Annual Report 2013
235
Amount in Taka
2013 2012
7a.3 Lease fnance / Izara
Lease rental receivable within 1 year 527,936,859 3,283,525,539
Lease rental receivable within 5 years 8,682,621,264 11,226,832,700
Lease rental receivable after 5 years 391,065,600 585,251,400
Total lease / Izara rental receivable 9,601,623,723 15,095,609,639
Less: Unearned interest receivable 3,713,129,166 6,909,605,879
Net lease / Izara fnance 5,888,494,557 8,186,003,760
7a.4 Loans, advances and lease / investments under the following broad categories
Loans 90,930,470,525 92,157,839,051
Cash credits 22,698,310,397 22,797,516,730
Overdrafts 33,752,101,030 38,485,351,177
147,380,881,952 153,440,706,958
Bills purchased and discounted (note-8) 6,207,878,277 7,449,141,605
153,588,760,229 160,889,848,563
7a.5
Loans, advances and lease / investments on the basis of signifcant
concentration including bills purchased and discounted.
a) Loans, advances and lease / investments to Directors of the Bank - -
b) Loans, advances and lease / investments to Chief Executive
and other senior executives
1,865,934,020 1,724,309,911
c) Loans, advances and lease / investments to customer groups:
i) Commercial lending 11,908,593,920 21,690,116,112
ii) Export fnancing 3,732,411,949 13,119,356,738
iii) House building loan 3,806,849,550 3,615,477,187
iv) Retail loan 12,138,261,922 11,303,238,002
v) Small and medium enterprises 19,532,373,794 12,230,784,130
vi) Special program loan - 682,454,196
vii) Staff loan 7,509,737 11,201,263
viii) Industrial loans / investments detail (note-7a.5 d) 84,023,601,882 81,767,701,149
ix) Other loans and advances (SOD) 16,573,223,455 14,745,209,875
151,722,826,209 159,165,538,652
153,588,760,229 160,889,848,563
d) Details of Industrial loans / investments
i) Agricultural industries 1,691,360,795 2,274,808,715
ii) Textile industries 7,477,767,779 26,070,842,203
iii) Food and allied industries 5,819,255,353 5,340,966,112
iv) Pharmaceutical industries 2,303,534,065 1,574,636,341
v) Leather, chemical, cosmetics, etc. 1,310,169,543 1,170,213,626
vi) Tobacco industries 750,806,206 204,570,425
vii) Cement and ceramic industries 4,702,298,898 5,113,194,980
viii) Service Industries 4,910,682,968 5,958,981,208
ix) Transport and communication industries 7,757,516,825 9,325,671,441
x) Other industries including bills purchase and discounted 47,300,209,450 24,733,816,098
84,023,601,882 81,767,701,149
7a.6 Loans, advances and leases / investments -geographical location-wise
Inside Bangladesh
Urban
Dhaka Division 109,175,984,414 117,138,250,054
Chittagong Division 27,743,849,035 25,060,277,567
Khulna Division 6,422,469,216 5,214,202,263
Rajshahi Division 4,604,585,904 4,510,325,528
Barisal Division 142,885,592 150,519,568
Sylhet Division 1,743,916,954 1,993,477,795
Rangpur Division 517,279,364 1,020,742,969
150,350,970,479 155,087,795,744
Rural
Dhaka Division 1,712,691,772 3,866,632,368
Chittagong Division 689,955,890 1,014,279,804
Khulna Division 143,815,669 121,042,186
Rajshahi Division 462,949,214 487,631,644
Sylhet Division 228,377,205 312,466,817
3,237,789,750 5,802,052,819
153,588,760,229 160,889,848,563
Annual Report 2013
236
Amount in Taka
2013 2012
7a.7 Sector-wise loans, advances and lease / investments including
bills purchased and discounted
Public sector 7,960,394 107,324,320
Co-operative sector - -
Private sector 153,580,799,835 160,782,524,243
153,588,760,229 160,889,848,563
7a.8 Details of pledged collaterals with the Bank
Collateral of movable / immovable assets 132,454,115,539 115,788,853,865
Local banks and fnancial institutions guarantee 2,118,339,891 3,010,813,582
Government guarantee - 242,063,041
Foreign banks guarantee - 5,131,043
Export documents 3,636,471,239 6,466,293,749
Fixed deposit receipts 4,683,447,951 7,566,583,262
FDR of other banks 238,650,747 1,408,779,115
Government bonds 24,166,735 1,853,220
Personal guarantee 5,883,313,924 10,412,344,557
Other securities 4,550,254,203 15,987,133,129
153,588,760,229 160,889,848,563
7a.9 Details of large loans, advances and lease / investments
Number of clients with outstanding amount and classifed loans / investments exceeding 10% of total capital of the
Bank. Total capital of the Bank was Taka 26,495.44 million as at 31 December 2013 (Tk. 25,751.53 million in 2012).
Number of clients 5 12
Amount of outstanding advances / investments 19,236,040,000 45,574,440,000
Amount of classifed advances / investments Nil 632,544,000
Measures taken for recovery Not Applicable Negotiation
under process
Name of clients
Outstanding (Tk. in million) Total Total
Funded Non-Funded (Tk. in million) (Tk. in million)
Ananta Group - - - 3,171.19
Bismillah Group - - - 3,117.10
Bulk Trade International Ltd. - - - 3,119.78
Saad Musa Group 2,338.94 491.45 2,830.39 -
ENA Group 1,368.59 1,419.79 2,788.38 2,778.61
Meghna Group 1,653.26 4,556.19 6,209.45 -
Energy Pac Confdence Group - - - 2,668.93
Janata Flour & Dal Mills Ltd. - - - 6,469.47
M/s. Kabir Steel & BSA Group - - - 4,386.21
Noman Group - - - 2,805.73
Prime Bank Investment Ltd 3,373.60 - 3,373.60 3,816.30
Project Builders Ltd. 2,676.91 1,357.31 4,034.22 4,714.17
Tamishna Group - - - 2,841.12
T.K Group - - - 5,685.86
11,411.30 7,824.74 19,236.04 45,574.44
Annual Report 2013
237
Amount in Taka
2013 2012
7a.10 Particulars of loans, advances and lease / investments
i) Loans / investments considered good in respect of which
the Bank is fully secured
116,535,874,451 131,232,363,211
ii) Loans / investments considered good against which the
bank holds no security other than the debtors personal
guarntee
7,798,673,512 26,399,477,686
iii) Loans / investments considered good secured by the
personal undertaking of one or more parties in addition to
the personal guarantee of the debtors
29,254,212,265 3,258,007,666
iv) Loans / investments adversely classifed; provision not
maintained there against
- -
153,588,760,229 160,889,848,563
v) Loans / investments due by directors or offcers of the
banking company or any of them either separately or
jointly with any other persons (note-7a.5b+7a.5c.vii) 1,873,443,756 1,735,511,174
vi) Loans / investments due from companies or frms in which the
directors of the Bank have interest as directors, partners or
managing agents or in case of private companies, as members

- -
vii) Maximum total amount of advances / investments, including
temporary advances made at any time during the year to
directors or managers or offcers of the banking company or
any of them either separately or jointly with any other person. 1,873,443,756 1,735,511,174
viii) Maximum total amount of advances / investments, including
temporary advances / investments granted during the year to
the companies or frms in which the directors of the banking
company have interest as directors, partners or managing
agents or in the case of private companies, as members - -
ix) Due from banking companies - -
x) Classifed loans and advances / investments
a) Classifed loans and advances / investments on
which interest has not been charged (note-7a.11)

7,814,501,727

6,168,499,440
b) Provision on classifed loans and advances /
investments (for details see note-13a.3 & 13a.5) 3,733,047,125

1,949,076,445
c) Provision kept against loans / investments
classifed as bad debts

3,184,620,754

1,354,840,849
d) Interest credited to Interest Suspense Account (note-13a.6) 1,913,098,167 620,359,575
xi) Cumulative amount of written off loans / investments
Opening Balance 2,979,164,346 2,574,963,826
Amount written off during the year 2,540,593,488 404,200,520
5,519,757,834 2,979,164,346
Amount realised against loans / investments previously written off 6,064,168 85,048,984
The amount of written off / classifed loans / investments
for which law suits have been fled (note-7a.14)
12,702,465,814 3,487,369,161
Annual Report 2013
238
Amount in Taka
2013 2012
7a.11 Classifcation of loans, advances and lease / investments
Unclassifed
Standard including staff loan 141,281,895,324 150,891,349,341
Special mention account (SMA) 4,492,363,178 3,829,999,781
145,774,258,502 154,721,349,123
Classifed
Sub-standard 874,419,377 2,286,522,275
Doubtful 1,054,569,739 709,305,223
Bad / Loss 5,885,512,611 3,172,671,942
7,814,501,727 6,168,499,440
153,588,760,229 160,889,848,563
7a.12 Particulars of required provision for loans, advances and lease / investments
Base Rate
Status for provision (%)
General Provision
Loans/investments (Including SMA) 145,774,258,502 *Various 1,687,252,207 1,981,025,178
Interest receivable on loans/
investments
523,769,388 1 5,237,694 9,517,274
1,692,489,901 1,990,542,452
*General provision is kept @ 1% on general loans and advances / investments and 0.25% on small enterprise
fnancing, 2% on certain other types of lending and 5% on consumer fnancing.
Base Rate
Specifc provision
Sub-standard 434,902,220 20 86,980,444 402,820,192
Doubtful 917,855,396 50 458,927,698 188,537,563
Bad / Loss 3,184,620,754 100 3,184,620,754 1,354,840,849
3,730,528,896 1,946,198,604
Required provision for loans, advances and lease / investments 5,423,018,797 3,936,741,056
Total provision maintained (note - 13a, 13a.3 & 13a.5) 5,433,236,415 3,983,765,735
Excess / (short) provision at 31 December 2013 10,217,618 47,024,679
7a.13 Particulars of required provision on Off-balance Sheet Exposures
Base Rate
for provision 1%
Acceptances and endorsements 30,869,304,940 308,693,049 330,645,225
Letter of guarantee 55,438,139,259 554,381,393 440,311,231
Letter of credit 20,885,957,458 208,859,575 306,021,728
Required provision on Off-balance Sheet Exposures 1,071,934,017 1,076,978,184
Total provision maintained (note - 13a.4) 1,090,000,000 1,080,000,000
Excess / (short) provision at 31 December 2013 18,065,983 3,021,816
Annual Report 2013
239
Amount in Taka
2013 2012
7a.14 Suits fled by the Bank (Branch wise details)
Agrabad Branch 181,091,420 182,223,605
Adamjee EPZ Branch 1,286,331 619,020
Asad Gate Branch 21,699,401 20,978,451
Ashulia Branch 10,944,530 12,667,127
Banani Branch 27,297,839 7,339,256
Bangshal Branch 26,595,540 22,095,540
Barisal Branch 545,085 779,085
Bashundhara Branch 7,412,477 7,412,477
Bhairab Bazar Branch 570,714 -
Bogra Branch 736,361,692 733,109,329
Head Offce, FMD & Card 24,302,502 25,440,651
Chaumuhani Branch 153,779 -
Court Road Branch 507,721 507,721
Coxs Bazar Branch 1,894,530 2,122,930
Dinajpur Branch 1,179,786 440,993
Elephant Road Branch 1,702,826,470 3,715,619
Faridpur Branch 187,000 -
Feni Branch 1,028,601 -
Foreign Exchange Branch 171,871,396 413,947,087
Ganakbari Branch 800,000 683,550
Garib-e-Newaz Branch 326,495 -
Gulshan Branch 93,893,494 93,893,494
Hajigonj Branch 277,365 -
Halishahar Branch 716,034 385,000
Hathazari Branch 8,973,879 6,167,879
IBB, Amberkhana Branch 9,632,100 3,132,100
IBB, Dilkusha Branch 26,740,776 26,740,776
IBB, Mirpur Branch 60,434,498 270,000
IBB, O.R. Nizam Road Branch 82,621,251 33,187,610
IBB, Pahartali Branch 15,499,110 212,146
Jamalpur Branch 311,000 -
Jatrabari Branch 1,130,421 -
Jessore Branch 6,046,580 6,592,865
Joypara 2,293,964 1,978,190
Joydevpur Chowrasta Branch 1,696,973 -
Jubilee Road Branch 933,174,863 480,606,863
Kawran Bazar Branch 133,348,985 132,755,491
Khatunganj Branch 795,152,047 16,137,047
Khulna Branch 119,979,665 120,302,380
Kustia Branch 2,100,403 -
Laldighi East Branch 412,745,500 6,357,500
Madhabdi Branch 2,937,003 3,348,640
Mirpur-1 Branch 7,987,830 9,802,051
Motijheel Branch 6,113,652,133 763,638,244
Mohakhali Branch 2,012,365 2,012,365
Mouchak Branch 124,884,081 4,117,086
Moulvibazar Branch, Dhaka 95,627,284 100,648,973
Mymensingh Branch 8,482,743 8,150,000
Naogaon Branch 60,233,982 -
Narayanganj Branch 41,284,660 40,825,730
New Eskaton Branch 1,392,076 1,410,176
Oxygen More Branch 2,582,696 727,696
Pabna Branch 8,280,882 -
Pallabi Branch 3,290,751 1,290,144
Panthapath Branch 3,731,725 3,763,525
Pragati Sarani Branch 6,339,826 -
Prabortak More Branch 2,053,082 -
Rajshahi Branch 314,731,333 49,272,272
Rangpur Branch 2,737,017 857,888
Ring Road Branch 50,477,613 42,195,523
Sat Masjid Road Branch 49,638,430 1,604,025
SBC Tower Branch 4,966,853 5,329,753
Simrail Branch 5,465,265 5,465,265
SME Banking, Dhaka 43,796,199 19,891,879
Sremangal Branch 42,497,866 21,903,286
Sylhet Branch 20,537,350 20,615,350
Subidbazar Branch, Sylhet 31,151,126 2,414,000
Annual Report 2013
240
Amount in Taka
2013 2012
Suits fled by the Bank (Branch wise details)
Tangail Branch 857,583 -
Tongi Branch 2,432,493 2,432,493
Uposhahar Branch, Sylhet 1,550,500 1,447,800
Uttara Branch 21,200,849 11,403,213
12,702,465,814 3,487,369,161
8 Consolidated bills purchased and discounted
PBL Finance (Hong Kong) Limited 2,423,668,487 1,218,277,782
8,631,546,764 8,667,419,387
8a Bills purchased and discounted
Payable in Bangladesh 4,376,377,482 5,499,981,492
Payable outside Bangladesh 1,831,500,795 1,949,160,113
6,207,878,277 7,449,141,605
8a.1 Maturity grouping of bills purchased and discounted
Payable within one month 2,172,817,434 2,975,545,974
Over one month but less than three months 2,895,891,748 1,938,801,812
Over three months but less than six months 1,116,986,582 2,534,793,819
Six months or more 22,182,513 -
6,207,878,277 7,449,141,605
9 Consolidated fxed assets including premises, furniture and fxtures
PBL Finance (Hong Kong) Limited 2,869,448 964,587
6,456,759,073 4,419,804,836
9a Fixed assets including premises, furniture and fxtures of the Bank
Property, Plant & Equipment
Land 3,543,593,939 2,200,907,410
Building 1,474,637,827 761,773,433
Furniture and fxtures 768,205,298 694,293,990
Offce equipment and machinery 1,306,112,866 1,157,551,128
Vehicles 319,950,486 325,821,316
Library books 1,746,017 1,558,890
7,414,246,433 5,141,906,167
Leased property:
Leased vehicles 31,690,384 31,690,384
ATM
Hardware & equipment 233,788,335 211,498,500
Furniture & fxtures 42,426,440 34,070,094
276,214,775 245,568,594
Off-shore Banking Units
Offce equipment and machinery 1,637,587 1,637,587
Vehicles 1,410,371 1,410,371
6,026,748 5,994,941
7,728,178,340 5,425,160,086
Less: Accumulated depreciation 1,463,175,057 1,214,728,832
6,265,003,283 4,210,431,254
Intangibles assets
Software-core banking 244,091,071 226,740,063
Software-ATM 43,212,614 28,235,444
Cost of intangibles assets 287,303,685 254,975,507
Less: Accumulated amortization 145,587,306 102,057,491
141,716,379 152,918,016
Net book value at the end of the year (See annexure-C for detail) 6,406,719,662 4,363,349,270
The fxed assets recognised and measurements policy are described in note 2.2.4
Annual Report 2013
241
Amount in Taka
2013 2012
10 Consolidated other assets
Less: Investment in Prime Bank Investment Limited (note-10a.5) (2,999,999,940) (2,999,999,940)
Less: Investment in Prime Bank Securities Limited (note-10a.5) (712,500,000) (712,500,000)
Less: PBIL investment in Prime Bank Securities Ltd.(below) (37,500,000) (37,500,000)
Less: Investment in PBL Exchange (UK) Ltd. (note-10a.5) (56,352,624) (56,352,624)
Less: Investment in Prime Exchange Co. Pte. Ltd., Singapore (note-10a.5) (10,993,235) (10,993,235)
Less: Investment in PBL Finance (Hong Kong) Limited (note-10a.5) (34,365,722) (28,685,185)
Less: Dividend of Prime Bank Investment Limited (note-10a) - (239,999,995)
Less: Due from Investment in PBL Finance (Hong Kong) Limited (note-10a) (2,323,714,250) (1,128,039,537)
2,245,036,964 2,682,258,462
Prime Bank Investment Limited (investment in PBSL) 37,500,000 37,500,000
PBL Exchange (UK) Ltd. - 1,936,520
307,085,393 116,707,521
2,552,122,357 2,798,965,983
10a Other assets of the Bank
Stationery and stamps 23,087,731 22,512,393
Exchange adjustment account - -
Investment in subsidiary (note-10a.5) 3,814,211,521 3,808,530,984
Loan to Off-shore Banking Units 5,008,368,379 4,124,190,642
Due from Off-shore Banking Units 111,353,884 146,642,463
Loan to PBL Finance (Hong Kong) Limited 2,323,714,250 1,128,039,537
Prepaid expenses 15,018,391 30,971,838
Interest / proft receivable on loan (note-10a.1) 523,769,388 951,727,418
Interest receivable on Govt. securities 1,174,675,523 1,008,186,693
Advance deposits and advance rent 164,348,546 185,487,221
Prepaid expenses against house furnishing 7,072,019 7,430,885
Branch adjustments account 23,675,936 61,205,540
Migration account 1 (2,440)
Suspense account (note -10a.2) 204,781,969 166,334,111
Encashment of PSP / BSP 35,151,558 259,196,282
ATM 1,407,446 2,050,889
Credit card 92,196,123 90,683,814
Sundry assets ( note -10a.3) 17,352,333 173,973,813
13,540,184,998 12,167,162,082
Less: Off-shore Banking Units 5,119,722,263 4,270,833,105
8,420,462,735 7,896,328,978
10a.1 Interest / proft receivable: Amount represents interest / proft receivable on loans, advances and lease /
investments, interest on term placement, Government securities & foreign currency balance, etc.
10a.2 Suspense account includes TT / DD in transit, advance against Land/ Building, advance against new branch,
advance against TA/ DA, printing and stationery, postage, suspense- others, clearing adjustment account etc.
10a.3 Sundry assets
Protested Bills 29,931,566 1,141,024,661
Less: Write off during the year (14,526,624) (1,126,313,064)
Receivable from/ (Payable to) branches - (123,449)
Others 1,947,391 159,385,664
17,352,333 173,973,813
At year-end management has performed detailed review of all protested bills and claims originated during the
course of banking operation, and upon assessing their recovery prospect, amounts which are considered to be
not recoverable have been written off after observing required formalities (note-13a.8). However, an amount of
Tk. 30,935,540.66/- has been recovered during the year against previously written off.
Annual Report 2013
242
Amount in Taka
2013 2012
10a.4 Particulars of required provision for other assets
Rate
Purchase of credit card bills 71,000,000 100% 71,000,000 71,000,000
Protested bills 15,404,942 100% 15,404,942 14,711,597
Advance deposits and advance rent 1,212,244 100% 1,212,244 1,212,244
Others - - 159,385,664
Required provision for other assets 87,617,186 246,309,505
Total provision maintained (note - 13a.8) 88,338,648 247,111,936
Excess / (short) provision at 31 December 2013 721,462 802,431
10a.5 Investment in subsidiaries
3,814,211,521 3,808,530,984
As per the provision of the Exchange Demutualization Act-2013 and in accordance with the Bangladesh Security
Exchange Commission (BSEC) approved Demutualization Scheme, Dhaka Stock Exchange Ltd. (DSE) alloted
total 72,15,106 ordinary shares at a face value of Tk 10.00 each and Chittagong Stock Exchange Ltd. (CSE)
aalloted total 42,87,330 ordinary Shares at face value of Tk 10.00 each against the Membership of DSE and CSE
respectively. Out of the above DSE transferred 2,886,042 shares and CSE transferred 1,714,932 shares directly
to the credit of the Benefciary Owners account of the company. The rest shares were credited to blocked
accounts as per provisions of the Exchange Demutualization Act, 2013. As there is no active market for shares
DSE and CSE, we have shown the value at original cost as investment.
11 Consolidated borrowings from other banks, fnancial institutions and agents
7,985,205,915 24,967,268,416
Less: Inter-company transactions 3,711,608,286 3,817,920,298
4,273,597,629 21,149,348,118
11a Borrowings from other banks, fnancial institutions and agents of the Bank
In Bangladesh (note-11a.1) 2,692,010,882 20,043,096,293
Outside Bangladesh (note-11a.2) 1,166,250,000 638,881,164
3,858,260,882 20,681,977,457
11a.1 In Bangladesh
Call deposits - 14,900,000,000
PBL bond 2,500,000,000 2,500,000,000
Standard Chartered Bank, Bangladesh 1,968,953 -
Bangladesh Bank (Off-shore Banking Units) - -
Repo of Treasury Bills - 2,424,510,000
Refnance against SME loan from Bangladesh Bank 190,041,929 218,586,293
2,692,010,882 20,043,096,293
11a.2 Outside Bangladesh
The Bank of Nova Scotia, Canada - 81,964
Doha Bank, Qatar - 399,249,500
BANCA UBAE SPA, Italy 388,750,000 -
Commercial Bank of Qatar 777,500,000 -
United Bank Ltd., UAE - 239,549,700
1,166,250,000 638,881,164
Annual Report 2013
243
Amount in Taka
2013 2012
11a.3 Security against borrowings from other banks, fnancial institutions and agents
Secured (Treasury bills) - 2,424,510,000
Unsecured 3,858,260,882 18,257,467,457
3,858,260,882 20,681,977,457
11a.4 Maturity grouping of borrowings from other banks, fnancial institutions and agents
Payable on demand - 14,900,000,000
Up to 1 month 1,968,953 3,063,391,164
Over 1 month but within 3 months - -
Over 3 months but within 1 year 1,166,250,000 -
Over 1 year but within 5 years 2,690,041,929 2,718,586,293
Over 5 years - -
3,858,260,882 20,681,977,457
12 Consolidated deposits and other accounts
Current deposits and other accounts
Prime Bank Limited (note-12a.1.c) 26,612,333,767 27,373,823,258
26,612,333,767 27,373,823,258
Less: Inter-company transactions 87,277,156 79,745,846
26,525,056,611 27,294,077,412
Bills payable
2,081,417,055 3,421,438,111
Savings bank / Mudaraba savings deposits
21,125,908,174 19,188,831,632
Term / Fixed deposits
152,087,482,186 132,068,779,059
Less: Inter-company transactions 603,869 10,706,364
152,086,878,317 132,058,072,695
201,819,260,157 181,962,419,850
12a Deposits and other accounts of the Bank
Deposits from banks (note -12a.1.a) 3,220,015,044 3,232,242,135
Deposits from customers (note-12a.1.b) 198,687,126,138 178,820,629,925
201,907,141,182 182,052,872,060
Annual Report 2013
244
Amount in Taka
2013 2012
12a.1 a) Deposits from Banks
Current deposits and other accounts 55,157,539 37,755,074
Savings bank / Mudaraba savings deposits 33,178,088 477,642,721
Special notice deposits 3,131,679,417 466,844,340
Fixed deposits - 2,250,000,000
3,220,015,044 3,232,242,135
b) Customer Deposits
i) Current deposits and other accounts
Foreign currency deposits 3,757,493,442 3,794,404,102
Security deposits 10,240,925 15,276,866
Sundry deposits (note - 12a.2) 13,525,353,551 14,469,292,445
26,904,834,774 27,502,689,635
Less: Off-shore Banking Units 347,658,546 166,621,451
26,557,176,228 27,336,068,184
ii) Bills payable
Pay orders issued 2,034,158,732 3,305,503,224
Pay slips issued 4,228,790 4,425,077
Demand draft payable 42,595,454 111,195,865
Foreign demand draft 313,592 313,592
T. T. payable 119,720 318
Bill Pay ATM 767 35
2,081,417,055 3,421,438,111
iii) Savings bank / Mudaraba savings deposits 21,092,730,086 18,711,188,911
iv) Term / Fixed deposits
Fixed deposits / Mudaraba fxed deposits 90,251,742,484 80,358,078,398
Special notice deposits 11,965,259,585 7,944,713,645
Non resident Taka deposits 793,839,134 601,207,853
Scheme deposits 45,944,961,566 40,447,934,823
148,955,802,769 129,351,934,719
198,687,126,138 178,820,629,925
201,907,141,182 182,052,872,060
c) Deposits and other accounts
Deposits from banks (note -12a.1.a) 55,157,539 37,755,074
Deposits from customers (note-12a.1.b.i) 26,557,176,228 27,336,068,184
26,612,333,767 27,373,823,258
Bills payable
Deposits from banks (note -12a.1.a) - -
Deposits from customers (note-12a.1.b.ii) 2,081,417,055 3,421,438,111
2,081,417,055 3,421,438,111
Savings bank / mudaraba savings deposits
Deposits from banks (note -12a.1.a) 33,178,088 477,642,721
Deposits from customers (note-12a.1.b.iii) 21,092,730,086 18,711,188,911
21,125,908,174 19,188,831,632
Deposits from banks (note -12a.1.a) 3,131,679,417 2,716,844,340
Deposits from customers (note-12a.1.b.iv) 148,955,802,769 129,351,934,719
152,087,482,186 132,068,779,059
201,907,141,182 182,052,872,060
12a.2 Sundry deposits
F.C. held against back to back L/C 5,855,120,347 6,085,186,554
Sundry creditors 59,271,224 162,584,000
Risk fund and service charges (CCS and lease fnance) 40,444,902 20,572,395
Sale proceeds of PSP / BSP 72,885,000 45,110,000
Margin on letters of guarantee 1,161,150,850 1,184,550,356
Margin on letters of credit 1,526,926,409 2,248,420,445
Margin on FDBP / IDBP, export bills, etc 116,518,903 87,103,659
Lease deposits 116,593,055 120,955,692
Interest / proft payable on deposits 2,842,526,106 2,538,613,828
Withholding VAT/Tax /Excise duty payable to Government Authority 619,900,109 447,366,607
Others 1,114,016,646 1,528,828,909
13,525,353,551 14,469,292,445
Annual Report 2013
245
Amount in Taka
2013 2012
12a.3 Payable on demand and time deposits
a) Demand deposits
Current deposits 9,666,904,396 9,261,471,296
Savings deposits (10%) 2,112,590,817 1,918,883,163
Foreign currency deposits (Non interest bearing) 3,409,834,896 3,627,782,651
Security deposits 10,240,925 15,276,866
Sundry deposits 13,525,353,551 14,469,292,445
Bills payable 2,081,417,055 3,421,438,111
30,806,341,640 32,714,144,532
b) Time deposits
Savings deposits (90%) 19,013,317,357 17,269,948,469
Fixed deposits 90,251,742,484 82,608,078,398
Special notice deposits 15,096,939,002 8,411,557,985
Deposits under schemes 45,944,961,566 40,447,934,823
Non resident Taka deposits 793,839,134 601,207,853
171,100,799,542 149,338,727,528
201,907,141,182 182,052,872,060
12a.4 Sector-wise break-up of deposits and other accounts
Government 2,789,570,000 3,331,169,000
Deposit money banks 3,220,015,044 3,232,242,135
Other public 6,369,399,824 6,281,049,000
Foreign currency 3,409,834,896 3,627,782,651
Private 186,118,321,418 165,580,629,274
201,907,141,182 182,052,872,060
12a.5 Unclaimed deposits and valuables
Current deposits 117,090 66,084
Savings deposits 268,276 173,417
Demand Draft 278,310 275,745
SDR 1,015,432 974,487
Pay order 5,034,420 4,388,608
6,713,528 5,878,340
12a.6 Maturity analysis of deposits
a) Maturity analysis of deposits from Banks
Up to 1 month 55,157,539 37,755,074
Over 1 month but within 3 months 346,346,029 524,327,155
Over 3 months but within 1 year - 2,250,000,000
Over 1 year but within 5 years 2,818,511,476 420,159,906
Over 5 years but within 10 years - -
Over 10 years - -
3,220,015,044 3,232,242,135
b) Maturity analysis of customer deposits excluding bills payable
Up to 1 month 31,263,902,485 28,653,601,490
Over 1 month but within 3 months 58,915,442,556 39,295,756,247
Over 3 months but within 1 year 32,818,144,014 36,174,586,587
Over 1 year but within 5 years 22,402,309,920 47,903,487,671
Over 5 years but within 10 years 51,199,196,580 23,365,881,479
Over 10 years 6,713,528 5,878,340
196,605,709,083 175,399,191,814
c) Maturity analysis of bills payable
Payable on demand 2,081,417,055 3,421,438,111
Up to 1 month - -
Over 1 month but within 3 months - -
Over 3 months but within 1 year - -
Over 1 year but within 5 years - -
Over 5 years but within 10 years - -
Over 10 years - -
2,081,417,055 3,421,438,111
201,907,141,182 182,052,872,060
Annual Report 2013
246
Amount in Taka
2013 2012
13 Consolidated other liabilities
16,071,268,524 14,095,474,132
13a Other liabilities of the Bank
Foreign currency held against EDF loan 2,019,648,273 2,198,309,830
Exchange equalization account (note - 13a.7) - -
Exchange adjustment account 795,021 1,298,288
Expenditure and other payables 78,636,660 78,241,569
Provision for bonus 202,107,180 279,347,201
Obligation under fnance lease (note-13a.9) 3,624,186 9,750,730
Provision for income tax (note - 13a.1) 2,484,245,887 2,730,498,965
Deferred tax liability (note-13a.2) 1,319,653,470 1,097,321,222
Unearned commission on bank guarantee 120,567,836 126,153,370
Credit card 700 700
Provision for gratuity 106,797,460 591,083,488
Provision for off-balance sheet exposures (note-13a.4) 1,090,000,000 1,080,000,000
Provision for Off-shore Banking Units (note-13a.5) 422,500,000 60,500,000
Fund for employee welfare fund (EWF) 6,891,000 10,672,000
Fund for Prime Bank Foundation (PBF) 137,820,000 213,405,000
Provision for loans and advances / investments (note - 13a.3) 5,001,219,115 3,913,748,435
Provision for Interest receivable on loans and advances / investments 9,517,300 9,517,300
Provision for diminution in value of investments (note-38a) 68,324,749 43,797,548
Interest suspense account (note - 13a.6) 1,913,098,167 620,359,575
ATM - -
Other liabilities - -
Other provision (note - 13a.8) 88,338,648 247,111,936
15,073,785,652 13,311,117,157
13a.1 Provision for income tax
Advance tax
Balance of advance income tax on 1 January 11,196,053,006 9,203,364,417
Paid during the year 1,862,253,078 1,992,688,589
Settlement of previous years tax liability - -
13,058,306,084 11,196,053,006
Provision
Balance of provision on 1 January 13,926,551,971 11,476,751,971
Provision of previous year - -
Provision made during the year (note-39a) 1,616,000,000 2,449,800,000
15,542,551,971 13,926,551,971
Net balance at 31 December 2,484,245,887 2,730,498,965
* Corporate tax position of the bank is shown in annexure-D
13a.2 Deferred tax liability
`
Deferred tax liability
Balance as on 1 January 1,052,920,593 866,620,593
Add: Provision for revaluation of land and building (note-17) 266,732,877 44,400,629
Add: Addition / Adjustment during the year (note-39a) - 186,300,000
Balance as on 31 December 1,319,653,470 1,097,321,222
Annual Report 2013
247
Amount in Taka
2013 2012
13a.3 Provision for loans, advances and lease / investments
Movement in specifc provision on classifed loans / investments:
Provision held as on 1 January 1,949,076,445 778,227,982
Less: Fully provided debts written off during the year (2,540,593,488) (404,200,520)
Add: Recoveries of amounts previously written off 6,064,168 85,048,984
Add: Specifc provision made during the year for other accounts - -
Add: Transferred from General Provision 947,500,000 -
Less: Provision no longer required - -
Add: Net charge to proft and loss account (note-38a) 2,980,000,000 1,490,000,000
Provision held as on 31 December 3,342,047,125 1,949,076,445
Movement in general provision on unclassifed loans / investments
Provision held as on 1 January 1,964,671,990 1,724,671,990
Add: Amount transferred to classifed provision (947,500,000) -
Add: General provision made during the year (note-38a) 642,000,000 240,000,000
5,001,219,115 3,913,748,435
13a.4 Provision for off-balance sheet exposures
Provision held as on 1 January 1,080,000,000 940,000,000
Add: Amount transferred from classifed provision - -
Add: Provision made during the year (note-38a) 10,000,000 140,000,000
13a.5 Provision for Off-shore Banking Units
Movement in specifc provision on classifed loans / investments:
Provision held as on 1 January - -
Add: Transferred from Unclassifed Provision of OBU 41,000,000 -
Add: Net charge to proft and loss account (note-38a) 350,000,000 -
Provision held as on 31 December 391,000,000 -
Movement in general provision on unclassifed loans / investments
Provision held as on 1 January 60,500,000 60,500,000
Add: Amount transferred to classifed provision of OBU (41,000,000) -
Add: General provision made during the year (note-38a) 12,000,000 -
Provision held as on 31 December 31,500,000 60,500,000
422,500,000 60,500,000
13a.6 Interest suspense account
Balance as on 1 January 620,359,575 538,695,707
Add: Amount transferred to "interest suspense" account during the year 1,853,144,443 358,662,232
Less: Amount recovered from "interest suspense" account during the year (347,292,000) (116,255,174)
Less: Amount written-off during the year (213,113,851) (160,743,191)
Balance as on 31 December 1,913,098,167 620,359,575
13a.7 Exchange equalization account
Balance as on 1 January - 4,523,326
Less: Transfer during the year - 4,523,326
Balance as on 31 December - -
13a.8 Other provision for classifed assets
Balance as on 1 January 247,111,936 81,000,000
Add: Addition during the year (note-38a) 10,135,000 1,292,425,000
Less: Adjustment during the year (168,908,288) (1,126,313,064)
Balance as on 31 December 88,338,648 247,111,936
At year-end management has performed detailed review of all protested bills and claims originated during the
course of banking operation, and upon assessing their recovery prospect, amounts which are considered to be
not recoverable have been written off after observing required formalities (note-10a.3).
Annual Report 2013
248
Amount in Taka
2013 2012
13a.9 Obligation under fnance lease
Minimum lease rental payable
Within 1 year 3,721,693 7,454,973
Above 1 year but within 5 years - 3,064,950
3,721,693 10,519,923
Less: Finance charge payable 97,507 769,193
3,624,186 9,750,730
14 Share capital
14.1 Authorized capital
2,500,000,000 ordinary shares of Taka 10 each 25,000,000,000 25,000,000,000
14.2 Issued, subscribed and fully paid up capital
30,000,000 ordinary shares of Taka 10 each issued for cash 300,000,000 300,000,000
883,821,276 ordinary shares of Taka 10 each issued as bonus shares 8,838,212,760 7,902,441,290
115,527,340 ordinary shares of Taka 10 each issued as right shares 1,155,273,400 1,155,273,400
10,293,486,160 9,357,714,690
14.3 History of paid-up capital
Given below the history of raising of share capital of Prime Bank Limited:
Accounting
year
Declaration No of share Value in capital Cumulative
1995 Opening capital 10,000,000 100,000,000 100,000,000
1996 60% Bonus share 6,000,000 60,000,000 160,000,000
1997 25% Bonus share 4,000,000 40,000,000 200,000,000
1999 Initial Public Offer (IPO) 20,000,000 200,000,000 400,000,000
2000 25% Bonus share 10,000,000 100,000,000 500,000,000
2001 20% Bonus share 10,000,000 100,000,000 600,000,000
2002 16.67% Bonus share 10,000,000 100,000,000 700,000,000
2003 42.86% Bonus share 30,000,000 300,000,000 1,000,000,000
2004 40% Bonus share 40,000,000 400,000,000 1,400,000,000
2005 25% Bonus share 35,000,000 350,000,000 1,750,000,000
2006 30% Bonus share 52,500,000 525,000,000 2,275,000,000
2007 25% Bonus share 56,875,000 568,750,000 2,843,750,000
2008 25% Bonus share 71,093,750 710,937,500 3,554,687,500
2009 30% Bonus share 106,640,620 1,066,406,200 4,621,093,700
25% right share 115,527,340 1,155,273,400 5,776,367,100
2010 35% Bonus share 202,172,848 2,021,728,480 7,798,095,580
2011 20% Bonus share 155,961,911 1,559,619,110 9,357,714,690
2012 10% Bonus share 93,577,147 935,771,470 10,293,486,160
1,029,348,616 10,293,486,160
Annual Report 2013
249
Amount in Taka
2013 2012
14.4 Group capital adequacy ratio (Consolidated)
In terms of section 13 (2) of the Bank Companies Act, 1991 and Bangladesh Bank BRPD circulars no. 35 dated
December 29, 2010, required capital of the Bank (Consolidated) at the close of business on 31 December 2013
was Taka 22,279,142,851 as against available core capital of Taka 21,707,714,965 and supplementary capital of
Taka 5,104,250,824 making a total capital of Taka 26,811,965,789 thereby showing a surplus capital / equity of
Taka 4,532,822,938 at that date. Details are shown below:
Core capital (Tier-I)
Paid-up capital (note-14.2) 10,293,486,160 9,357,714,690
Share premium (note-14.8) 2,241,230,396 2,241,230,396
Minority interest (note-14.9) 65 67
Statutory reserve (note-15) 7,528,626,614 6,839,527,566
General reserve 28,002,888 -
Surplus in consolidated proft and loss account / Retained earnings (note-19) 1,616,368,842 2,225,185,837
21,707,714,965 20,663,658,556
Supplementary capital (Tier-II)
General provision maintained against unclassifed loan / investments (note-13a.3) 1,659,171,990 1,964,671,990
General provision on off-balance sheet exposures (note-13a.4) 1,090,000,000 1,080,000,000
General provision on off-shore Banking Units (note-13a.5) 31,500,000 60,500,000
Revaluation gain / loss on investments-50% of total (note-16) 67,835,681 21,017,432
Revaluation reserve for equity instruments-10% of market gain - -
Revaluation reserve-50% of total (note-17) 755,743,153 125,801,783
Prime Bank Sub-ordinated Bond 1,500,000,000 2,000,000,000
Exchange equalization account (note-13a.7) - -
5,104,250,824 5,251,991,206
A) Total Capital 26,811,965,789 25,915,649,761
Total assets including off-balance sheet exposures 353,277,824,918 346,356,371,815
B) Total risk weighted assets 222,791,428,514 205,102,656,431
C) Required capital based on risk weighted assets (10% on B) 22,279,142,851 20,510,265,643
D) Surplus (A-C) 4,532,822,938 5,405,384,118
Capital adequacy ratio 12.03% 12.64%
Capital requirement Required Held Required Held
Tier - I 5% 9.74% 5% 10.08%
Tier - II 5% 2.29% 5% 2.56%
Total 10.00% 12.03% 10.00% 12.64%
Capital adequacy ratio (Solo Basis)
Core capital (Tier-I)
Paid-up capital (note-14.2) 10,293,486,160 9,357,714,690
Share premium (note-14.8) 2,241,230,396 2,241,230,396
Statutory reserve (note-15) 7,528,626,614 6,839,527,566
Surplus in consolidated proft and loss account / Retained earnings (note-19a) 1,341,080,535 2,072,227,283
21,404,423,705 20,510,699,934
Supplementary capital (Tier-II)
General provision maintained against unclassifed loan / investments (note-13a.3) 1,659,171,990 1,964,671,990
General provision on off-balance sheet exposures (note-13a.4) 1,090,000,000 1,080,000,000
General provision on off-shore Banking Units (note-13a.5) 31,500,000 60,500,000
Revaluation gain / loss on investments-50% of total (note-16a) 54,596,901 9,859,846
Revaluation reserve-50% of total (note-17) 755,743,153 125,801,783
Prime Bank Sub-ordinated Bond 1,500,000,000 2,000,000,000
Exchange equalization account (note-13a.7) - -
5,091,012,044 5,240,833,619
A) Total Capital 26,495,435,749 25,751,533,553
Total assets including off-balance sheet exposures 351,623,984,106 345,020,328,118
B) Total risk weighted assets 220,020,078,032 202,339,782,174
C) Required capital based on risk weighted assets (10% on B) 22,002,007,803 20,233,978,217
D) Surplus (A-C) 4,493,427,946 5,517,555,336
Capital adequacy ratio 12.04% 12.73%
Capital requirement Required Held Required Held
Tier - I 5% 9.73% 5% 10.14%
Tier - II 5% 2.31% 5% 2.59%
Total 10.00% 12.04% 10.00% 12.73%
Annual Report 2013
250
Amount in Taka
2013 2012
14.5 Percentage of shareholdings at the closing date
Particulars
2013 2012 2013 2012
Taka Taka % %
Sponsors 4,165,087,830 3,795,534,470 40.46% 40.56%
Financial Institutions 1,886,179,950 1,882,371,040 18.32% 20.12%
Foreign Investors 511,084,550 356,952,120 4.97% 3.81%
Non- resident Bangladeshi 37,522,850 50,310,430 0.36% 0.54%
General Public 3,693,610,980 3,272,546,630 35.89% 34.97%
10,293,486,160 9,357,714,690 100.00% 100.00%
14.6 Shareholding range on the basis of shareholdings as at 31 December 2013
Shareholding range
Number of share
holders
Taka
Shares Percentage
Less than 500 12,488 2,144,698 0.21%
500- 5,000 10,028 17,270,380 1.68%
5,001 - 10,000 1,417 9,922,377 0.96%
10,001 - 20,000 760 10,778,620 1.05%
20,001 - 30,000 212 5,227,952 0.51%
30,001 - 40,000 104 3,644,225 0.35%
40,001 - 50,000 80 3,586,830 0.35%
50,001 - 100,000 179 12,400,462 1.20%
100,001 - 1,000,000 227 65,707,583 6.38%
Over 1,000,000 137 898,665,489 87.31%
25,632 1,029,348,616 100.00%
14.7 Name of the Directors and their shareholdings as at 31 December 2013
Sl Name of the directors Status
Opening
position
Closing position
% of shares as
at 31.12.2013
1 Mr. Md. Nader Khan Chairman 34,563,056 38,019,361 3.69
2 Mrs. Nasim Anwar Hossain Vice Chairperson 22,150,681 23,365,749 2.27
3 Mr. Mafz Ahmed Bhuiyan Vice Chairman 18,719,181 20,591,099 2.00
4 Mrs. Marina Yasmin Chowdhury Director 18,983,935 20,882,328 2.03
5 Mr. Md. Shirajul Islam Mollah Director 18,768,111 20,644,922 2.01
6 Mrs. Nazma Haque Director 18,798,231 20,678,053 2.01
7 Mr. Khandker Mohammad Khaled Director 25,973,071 28,570,378 2.78
8 Quazi Sirazul Islam Director 18,741,962 20,616,158 2.00
9 Mrs. Salma Huq Director 29,322,129 32,254,341 3.13
10 Mrs. Muslima Shirin Director 18,716,136 20,587,749 2.00
11 Mr. Mizanur Rahman Bhuiyan Director 18,720,079 20,592,086 2.00
12 Mr. M. A. Khaleque Director 19,860,746 21,846,820 2.12
13 Mr. Imran Khan Director 18,716,670 20,588,337 2.00
14 Mr. Md. Shahadat Hossain Director 25,283,258 27,811,583 2.70
15 Mr. Nafs Sikder Director 23,478,344 25,826,178 2.51
16 Mr. Tanjil Chowdhury
(Representative of East Coast
Shipping Lines Ltd.)
Director 18,728,326 20,601,158 2.00
(Share holding
of East Cost
Shipping Lines
Ltd.)
17 Prof. Ainun Nishat Independent Director - - -
18 Mr. Manzur Murshed Independent Director 26,616 29,277 0.003
19 Prof. Dr. Mohammed Aslam Bhuiyan Independent Director - - -
20 Mr. Md. Ehsan Khasru Managing Director - - -
349,550,532 383,505,577
Annual Report 2013
251
Amount in Taka
2013 2012
14.8 Share premium
11,552,734 ordinary shares of Taka 200 each per share 2,310,546,800 2,310,546,800
Less: Income tax deduction at source @ 3% on total premium 69,316,404 69,316,404
2,241,230,396 2,241,230,396
14.9 Minority interest
Share capital 60 60
Retained earnings 5 7
65 67
15 Statutory reserve
Balance on 1 January 6,839,527,566 5,772,509,105
Addition during the year ( 20% of pre-tax proft) 689,099,048 1,067,018,461
Balance at 31 December 2013 7,528,626,614 6,839,527,566
16 Consolidated revaluation gain / loss on investments
Gain on revaluation of Investment at Prime Exchange Co. Pte. Ltd., Singapore 4,320,315 5,315,965
Gain on revaluation of Investment at Prime Exchange (UK) Ltd. 7,686,176 8,198,026
Gain on revaluation of Investment at PBL Finance (Hong Kong) Limited 14,471,068 8,801,182
135,671,362 42,034,865
16a Revaluation gain / loss on investments of the Bank
Opening balance on 1 January 19,719,692 243,159,736
Add: Amortized/Revaluation Gain 318,478,771 145,134,659
Less: Adjustment of amortization/revaluation gain against sale/maturity (229,101,567) (368,669,109)
Add: Adjustment of revaluation gain/(loss) of OBU fxed assets 96,907 94,406
Less: Adjustment of Revaluation loss - -
109,193,803 19,719,692
17 Revaluation reserve
Balance on 1 January 296,004,196 296,004,196
Addition during the year 1,482,214,987 -
Balance at 31 December 2013 1,778,219,183 296,004,196
Less: Provision for deferred tax (266,732,877) (44,400,629)
1,511,486,306 251,603,567
The Bank revalued the assets of Land and Buildings details described in note 2.5
18 Consolidated foreign currency translation gain/ (loss)
Prime Exchange Co. Pte. Ltd., Singapore (187,889) 141,298
PBL Exchange (UK) Ltd. 17,248 (152,759)
PBL Finance (Hong Kong) Limited (695,960) (494,062)
3,646,693 4,510,188
18a Foreign currency translation gain/ (loss)
Balance on 1 January 5,015,711 8,694,724
Addition during the year (502,417) (3,679,013)
Balance at 31 December 2013 4,513,294 5,015,711
19 Consolidated retained earnings / movement of proft and loss account
PBL Exchange (UK) Ltd. (49,495,332) (45,540,613)
1,700,035,392 2,461,001,302
Less: Minority Interest (5) (7)
Less: Transfer to general reserve (28,002,888) -
Less: Dividend of Prime Bank Investment Limited - (239,999,995)
Less: Proft Remitted by Prime Exchange Co. Pte. Ltd., Singapore (9,270,867) -
Less: Proft Remitted by PBL Finance (Hong Kong) Limited (47,761,808) -
Less: Foreign currency translation gains 1,369,018 4,184,536
1,616,368,842 2,225,185,837
Annual Report 2013
252
Amount in Taka
2013 2012
19a Retained earnings / movement of proft and loss account of the Bank
Addition during the year 1,829,495,239 2,698,992,305
Transfer to statutory reserve (689,099,048) (1,067,018,461)
Cash dividend (935,771,469) (779,809,558)
Issue of bonus shares (935,771,470) (1,559,619,110)
Balance at 31 December 2013 1,341,080,535 2,072,227,283
Add: Foreign currency translation gain/ (loss) (502,417) (3,679,013)
1,340,578,118 2,068,548,269
19.1 Consolidated retained earnings brought forward from previous year
Prime Bank Limited (note-19.1 a) 200,684,344 440,253,439
Prime Bank Investment Ltd. 86,488,306 152,129,749
Prime Bank Securities Ltd. 33,096,718 4,495,828
PBL Exchange (UK) Ltd. (45,540,613) (29,966,981)
PBL Finance (Hong Kong) Limited - 3,315,705
296,104,702 591,744,809
Foreign currency translation gain on 1 January (943,855) 53,809
295,160,847 591,798,618
19.1.a Retained earnings brought forward from previous year of the Bank
Bonus shares issued (935,771,470) (1,559,619,110)
Cash dividend paid (935,771,469) (779,809,558)
Balance at 31 December 2013 200,684,344 440,253,439
Foreign currency translation gain on 1 January - -
200,684,344 440,253,439
20 Consolidated contingent liabilities
20.1 Acceptances and endorsements
25,014,184,593 26,979,335,910
20.2 Letters of guarantee
54,276,988,409 42,846,572,774
20.3 Irrevocable Letters of Credit
19,359,031,049 28,353,752,325
Annual Report 2013
253
Amount in Taka
2013 2012
20.4 Bills for collection
9,104,975,230 10,007,661,530
107,755,179,281 108,187,322,539
20a Contingent liabilities of the Bank
20a.1 Acceptances and endorsements
Back to back bills (Foreign) 23,256,635,325 23,467,179,116
Back to back bills (Local) 7,032,011,863 8,735,295,070
Back to back bills (EPZ) 580,657,752 862,048,278
30,869,304,940 33,064,522,464
Less: Margin (5,855,120,347) (6,085,186,554)
25,014,184,593 26,979,335,910
20a.2 Letters of guarantee
Letters of guarantee (Local) 20,458,081,297 21,604,943,515
Letters of guarantee (Foreign) 34,980,057,962 22,426,179,615
Foreign counter guarantees - -
55,438,139,259 44,031,123,130
Less: Margin (1,161,150,850) (1,184,550,356)
54,276,988,409 42,846,572,774
Money for which the Bank is contingently liable in respect of
guarantees given favoring:
Directors or offcers - -
Government 413,930,380 625,653,522
Banks and other fnancial institutions 16,877,442,202 3,924,452,092
Others 38,146,766,677 39,481,017,516
55,438,139,259 44,031,123,130
Less: Margin (1,161,150,850) (1,184,550,356)
54,276,988,409 42,846,572,774
20a.3 Irrevocable Letters of Credit
Letters of credit (Sight) 6,042,369,612 10,353,128,681
Letters of credit (Deferred) 7,067,578,263 7,598,796,833
Back to back L/C 7,776,009,583 12,650,247,256
20,885,957,458 30,602,172,770
Less: Margin (1,526,926,409) (2,248,420,445)
19,359,031,049 28,353,752,325
20a.4 Bills for collection
Outward bills for collection 9,221,494,133 10,094,765,189
9,221,494,133 10,094,765,189
Less: Margin (116,518,903) (87,103,659)
9,104,975,230 10,007,661,530
Bills for collection is a Memorandum Item. However bills for collection is shown under contingent liability as
per Bangladesh Banks format for preparing fnancial statements.
Annual Report 2013
254
Amount in Taka
2013 2012
21 Income statement
Income:
Interest, discount and similar income (note-21.1) 27,503,478,449 27,200,349,631
Dividend income (note-24a) 89,885,351 254,477,345
Fees, commission and brokerage (note-21.2) 1,225,042,868 1,305,873,890
Gains less losses arising from dealing in securities - -
Gains less losses arising from investment securities - -
Gains less losses arising from dealing in foreign currencies (note-25a.1) 930,442,297 1,123,570,867
Income from non-banking assets - -
Other operating income (note-26a) 812,592,003 1,017,962,459
Proft less losses on interest rate changes - -
30,561,440,968 30,902,234,192
Expenses:
Interest / proft paid on deposits, borrowings, etc. (note-23a) 17,678,359,259 17,410,286,124
Losses on loans, advances and lease/ investments - -
Administrative expenses (note-21.3) 4,119,577,598 3,635,158,345
Other operating expenses (note-37a) 990,885,125 1,027,527,828
Depreciation on banking assets (note-36a) 298,461,545 278,429,742
23,087,283,527 22,351,402,039
7,474,157,441 8,550,832,153
21.1 Interest, discount and similar income
Interest income / Proft on investments (note-22a) 22,010,657,745 22,821,500,674
Interest income on treasury bills / reverse repo / bonds (note-24a) 4,650,707,200 3,806,588,945
Gain on Discounted bond / bills (note-24a) 672,169,796 497,413,554
Gain on sale of shares (note-24a) 2,640,608 11,241,156
Gain on Govt. security trading (note-24a) 152,252,408 92,555,220
Interest on debentures (note-24a) 96,608,268 117,149,862
27,585,036,025 27,346,449,411
Less: Loss on revaluation of security trading (note-24a) 81,557,576 146,099,780
27,503,478,449 27,200,349,631
21.2 Fees, commission and brokerage
Commission (note-25a) 1,225,042,868 1,305,873,890
Settlement fee-PBIL (note-25a) - -
1,225,042,868 1,305,873,890
21.3 Administrative expenses
Salary and allowances (note-27a) 2,939,016,912 2,673,292,974
Rent, taxes, insurance, electricity, etc. (note-28a) 550,258,309 430,873,148
Legal expenses (note-29a) 37,756,195 28,570,418
Postage, stamp, telecommunication, etc. (note-30a) 134,001,255 127,601,535
Stationery, printing, advertisement, etc. (note-31a) 392,246,376 304,366,321
Managing Directors salary and fees (note-32) 11,590,000 11,448,000
Directors fees (note-33a) 4,364,816 5,152,571
Auditors fees (note-34a) 690,000 575,000
Repair of Banks assets (note-36a) 49,653,735 53,278,378
4,119,577,598 3,635,158,345
Annual Report 2013
255
Amount in Taka
2013 2012
22 Consolidated interest income / proft on investment
Prime Exchange Co. Pte. Ltd., Singapore - 7,696
22,615,648,865 23,807,748,522
22a Interest income / proft on investment of the Bank
Loans (General) / Musharaka 4,204,486,951 3,884,501,655
Loans against imported merchandise / Murabaha 12,223,477 11,259,564
Loans against trust receipts 1,924,614,565 3,293,804,014
Packing credit 55,195,298 89,028,712
House building loan 586,329,448 629,952,993
Lease fnance / Izara 1,033,922,835 1,298,020,103
Hire purchase 1,138,828,562 1,082,367,798
Payment against documents 72,769,763 150,427,754
Cash credit / Bai-Muajjal 2,929,270,357 2,806,526,070
Secured overdraft 4,778,544,332 5,192,261,814
Consumer credit scheme 1,915,282,906 1,808,255,965
Portfolio loan - -
Staff loan 128,528,443 109,932,550
Small and Medium Enterprise (SME) 734,951,041 700,008,462
Agricultural Loan 153,033,197 5,940,634
Forced loan 169,788,729 216,807,034
Documentary bills purchased 751,465,294 926,720,192
Interest income from credit card 210,085,335 192,245,609
Other loans and advances / Investments 976,034,520 341,663,152
Total interest / proft on loans and advances / investments 21,775,355,053 22,739,724,075
Interest / proft on balance with other banks and fnancial institutions 899,852 296,162
Interest on call loans 91,891,431 1,846,528
Interest / proft received from foreign banks 142,511,409 79,633,909
22,010,657,745 22,821,500,674
23 Consolidated interest / proft paid on deposits, borrowings, etc.
Prime Bank Securities Limited - 41,618,117
18,276,343,701 17,987,629,591
23a Interest / proft paid on deposits, borrowings, etc. of the Bank
i) Interest / proft paid on deposits:
Savings bank / Mudaraba savings deposits 831,075,984 751,474,472
Special notice deposits 945,532,299 526,880,164
Deposits under scheme 4,824,217,055 3,905,613,809
Foreign currency deposits (note-23a.1) 9,127,196 11,026,627
Others 26,942,930 16,108,114
16,890,477,434 14,963,700,395
ii) Interest / Proft paid for borrowings:
Call deposits 240,430,291 1,017,498,487
Repurchase agreement (repo) 116,560,703 1,037,169,869
Bangladesh Bank-refnance 5,820,034 43,789,000
Local bank accounts 134,334,236 54,737,521
Foreign bank accounts 23,466 94,767
Islamic Bond Fund - 4,283,154
PBL bond 290,713,095 289,012,931
787,881,825 2,446,585,729
17,678,359,259 17,410,286,124
Annual Report 2013
256
Amount in Taka
2013 2012
23a.1 Foreign currency deposits
Interest / proft paid on F.C 4,781,773 5,026,115
Interest / proft paid on N.F.C.D 4,317,525 5,754,638
Interest / proft paid on R. F.C.D 27,898 245,874
9,127,196 11,026,627
24 Consolidated investment income
5,863,198,678 4,691,946,969
Less: Inter-company transactions - 239,999,995
5,863,198,678 4,451,946,974
24a Investment income of the bank
Interest on treasury bills / Reverse repo / bonds 4,650,707,200 3,806,588,945
Interest on debentures / bonds 96,608,268 117,149,862
Gain on discounted bond / bills 672,169,796 497,413,554
Gain on sale of shares 2,640,608 11,241,156
Gain on Govt. security trading 152,252,408 92,555,220
Dividend on shares (note-24a.1) 89,885,351 254,477,345
5,664,263,631 4,779,426,082
Less: Loss on revaluation of security trading 81,557,576 146,099,780
5,582,706,055 4,633,326,302
25 Consolidated commission, exchange and brokerage
PBL Finance (Hong Kong) Limited - 24,627
2,332,258,137 2,628,137,057
25a Commission, exchange and brokerage of the Bank
Commission on L/Cs 258,410,469 300,728,857
Commission on L/Cs-back to back 489,047,307 583,764,007
Commission on L/Gs 363,327,092 315,647,991
Commission on remittance 75,011,914 68,781,312
Commission for services rendered to issue of shares 51,059 5,376
Merchant Commission 3,571,842 4,795,635
Underwriting Commission regarding Treasury bill/ Bond 21,710,905 17,972,030
Commission from sale of BSP /PSP 13,912,280 14,178,682
1,225,042,868 1,305,873,890
Exchange gain (note - 25a.1) - including gain from FC dealings 930,442,297 1,123,570,867
Settlement fees / Brokerage - -
2,155,485,165 2,429,444,757
25a.1 Exchange gain
Exchange gain 930,532,464 1,129,771,972
Exchange gain-credit card - -
Less: Exchange lose (90,167) (6,201,105)
930,442,297 1,123,570,867
Annual Report 2013
257
Amount in Taka
2013 2012
26 Consolidated other operating income
Prime Bank Limited (note-26a) 812,592,003 1,017,962,459
Prime Exchange Co. Pte. Ltd., Singapore 1,027,803 320,683
886,403,880 1,101,978,717
26a Other operating income of the Bank
Rent recovered 7,618,374 6,304,685
Service and other charges 21,555,536 201,195,485
Retail Income 221,870,549 220,364,527
Income from ATM service 115,967,133 88,912,804
Credit card income (note-26a.2) 38,914,256 39,803,095
Postage / telex / SWIFT/ fax recoveries 160,888,059 135,174,145
Incidental charges 86 35,206
Rebate from foreign Bank outside Bangladesh 102,710,778 149,696,068
Proft on sale of fxed assets 2,014,878 3,862,312
Miscellaneous earnings (note-26a.1) 141,052,354 172,614,132
812,592,003 1,017,962,459
26a.1 Miscellaneous earnings include syndication fee, commission from foreign remittance house / bank, notice
fee and sale proceeds of various items, etc.
26a.2 Credit card income
Annual fees 19,826,512 22,108,347
Inter-change fees 18,868,098 16,812,014
Others 219,646 882,734
38,914,256 39,803,095
27 Consolidated salaries and allowances
3,050,300,291 2,780,540,201
27a Salaries and allowances of the Bank
Basic pay 1,218,404,871 1,091,326,503
Allowances 893,857,770 809,496,228
Bonus 379,634,025 444,844,951
Banks contribution to provident fund 113,361,176 98,711,190
Retirement benefts 1,961,610 1,914,102
Gratuity 331,797,460 227,000,000
2,939,016,912 2,673,292,974
28 Consolidated rent, taxes, insurance, electricity, etc.
595,222,912 474,283,014
Annual Report 2013
258
Amount in Taka
2013 2012
28a Rent, taxes, insurance, electricity, etc. of the Bank
Rent, rates and taxes 284,692,653 222,399,771
Lease rent 4,550,878 8,160,897
Insurance 156,419,900 112,543,348
Power and electricity 104,594,878 87,769,132
550,258,309 430,873,148
29 Consolidated legal expenses
Prime Exchange Co. Pte. Ltd., Singapore 969,617 2,020,048
PBL Finance (Hong Kong) Limited 367,568 41,201
40,451,700 32,391,528
29a Legal expenses of the Bank
Legal expenses 17,272,917 18,810,119
Other professional charges 20,483,278 9,760,299
37,756,195 28,570,418
30 Consolidated postage, stamp, telecommunication, etc.
PBL Exchange (UK) Ltd. 978,437 1,079,758
141,707,735 134,466,650
30a Postage, stamp, telecommunication, etc. of the Bank
Postage & Courier 15,922,767 13,378,380
Telegram, telex, fax and internet 49,144,504 39,380,812
Data communication 45,727,139 54,895,205
Telephone - offce 22,117,929 18,930,111
Telephone - residence 1,088,916 1,017,027
134,001,255 127,601,535
31 Consolidated stationery, printing and advertisements, etc.
Prime Bank Investment Limited 932,710 1,472,157
PBL Exchange (UK) Ltd. 1,317,528 798,382
396,640,713 308,479,135
31a Stationery, printing and advertisements, etc. of the Bank
Offce and security stationery 73,816,577 97,835,991
Computer consumable stationery 71,334,861 62,423,207
Publicity and advertisement 247,094,938 144,107,123
392,246,376 304,366,321
32 Managing Directors salary and fees
Basic salary 5,940,000 5,940,000
Bonus 1,990,000 1,848,000
House rent allowance 1,320,000 1,320,000
Utility allowance 624,000 624,000
House maintenance allowance 960,000 960,000
Others 756,000 756,000
11,590,000 11,448,000
Annual Report 2013
259
Amount in Taka
2013 2012
33 Consolidated Directors fees
4,443,241 5,217,746
33a Directors fees of the Bank
Meeting fees 2,255,000 1,715,000
Other benefts 2,109,816 3,437,571
4,364,816 5,152,571
Each Director is paid Tk.5,000/- per meeting per attendance.
34 Consolidated Auditors fees
Prime Bank Limited (note-34a) 690,000 575,000
Prime Exchange Co. Pte. Ltd., Singapore 252,982 256,547
PBL Exchange (UK) Ltd. 321,474 319,455
1,631,427 1,522,518
34a Auditors fees of the Bank
External Audit fee 690,000 575,000
690,000 575,000
35 Charges on loan losses
Loan -written off - -
Interest waived - -
- -
36 Consolidated depreciation and repair of Banks assets
PBL Finance (Hong Kong) Limited 1,061,191 292,004
365,272,233 345,856,437
36a Depreciation and repair of Banks assets
Depreciation - (see annexure-C for detail)
Fixed assets 249,858,500 246,512,209
Leased assets 5,073,230 5,030,002
254,931,730 251,542,211
Amortization -(see annexure-C for detail)
Software-core banking 38,847,401 24,056,251
Software-ATM 4,682,414 2,831,280
43,529,815 26,887,531
Repairs
Building 3,021,075 3,964,557
Offce equipment 29,483,968 26,522,967
Banks vehicles 7,921,793 9,020,713
Maintenance 5,308,326 10,728,914
49,653,735 53,278,378
348,115,280 331,708,120
Annual Report 2013
260
Amount in Taka
2013 2012
37 Consolidated other expenses
Prime Bank Limited (note-37a) 990,885,125 1,027,527,828
1,081,838,188 1,068,015,016
37a Other expenses of the Bank
Security and cleaning 165,790,496 130,803,436
Entertainment 47,687,861 61,824,950
Car expenses 148,941,549 125,497,534
ATM expenses 150,585,538 110,491,112
Retail expenses 64,324,900 81,319,178
Books, magazines and newspapers, etc. 1,750,362 2,079,747
Liveries and uniforms 664,020 289,508
Medical expenses 165,729 63,981
Bank charges and commission paid 8,006,432 9,737,272
Loss on sale of fxed assets 143,122 2,755
Finance charge for lease assets 1,767,809 2,663,894
House furnishing expenses 2,627,195 3,292,671
Subscription to institutions 9,201,312 10,683,133
Donations 33,425,556 17,209,194
Traveling expenses 26,147,659 32,980,211
Expenses for merchant banking 3,319,093 11,816,537
Local conveyance, labor, etc. 22,873,227 34,037,537
Business development 19,909,911 29,615,867
Training and internship 14,657,059 16,220,803
Remittance charges 9,398,083 9,196,817
Cash reward to branches 1,155,000 6,481,666
Laundry, cleaning and photographs, etc. 6,423,219 5,729,029
Credit card expenses 32,238,509 39,682,609
Consolidated salary (staff) 35,276,010 27,351,178
Annual General Meeting 713,905 470,203
Exgratia 13,511,843 12,154,041
Welfare fund 6,891,000 10,672,000
Prime Bank Foundation 137,820,000 213,405,000
Miscellaneous expenses 25,468,725 21,755,965
990,885,125 1,027,527,828
38 Consolidated provision for loans, investments, off balance
sheet exposure & other assets
Provision for bad and doubtful loans and advances / investments-PBL (note-38a) 2,980,000,000 1,490,000,000
Provision for unclassifed loans and advances / investments-PBL (note-38a) 642,000,000 240,000,000
Provision for off-balance sheet exposure-PBL (note-38a) 10,000,000 140,000,000
Provision for diminution in value of investments-PBL (note-38a) 24,527,202 43,797,548
Provision for diminution in value of investments-PBIL - (74,084,236)
Provision for impairment of client margin loan-PBIL - 178,586,273
Provision for diminution in value of investments-PBSL (51,962) 3,232,978
Provision for impairment of client margin loan-PBSL 1,354,126 597,088
Provision for other assets (note-38a) 10,135,000 1,301,942,300
3,667,964,366 3,324,071,951
As per the Press release # SEC/Mukhopatro/2011/662, SEC/Mukhopatro/2011/ 696 and SEC/MRRCD/2009-193/154,
dated 29 January 2013, 19 February and 09 December 2013 respectively of Bangladesh Securities and Exchange
Commission, 20% provision has been made by Prime Bank Securities Limited while Prime Bank Investment
Limited made 70.42% provision on diminution in value of investments and 20% provision made on impairment of
client margin loan.
Annual Report 2013
261
Amount in Taka
2013 2012
38a Provision for loans, investments, off balance sheet exposure
& other assets of the Bank
Provision for bad and doubtful loans and advances / investments 2,980,000,000 1,490,000,000
Provision for unclassifed loans and advances / investments 642,000,000 240,000,000
Provision for bad and doubtful loans and advances (OBU) 350,000,000 -
Provision for unclassifed loans and advances / investments (OBU) 12,000,000 -
Provision for off-balance sheet exposure 10,000,000 140,000,000
Provision for diminution in value of investments 24,527,202 43,797,548
Provision for other assets 10,135,000 1,301,942,300
4,028,662,202 3,215,739,848
39 Consolidated tax expenses
Current tax
Prime Exchange Co. Pte. Ltd., Singapore 344,056 859,495
1,664,898,350 2,629,200,771
Deferred tax
Prime Bank Limited (note-39a) - 186,300,000
Prime Bank Investment Limited (690,162) -
Prime Bank Securities Limited (415,071) (16,975)
(1,105,233) 186,283,025
1,663,793,117 2,815,483,796
39a Tax expenses of the Bank
Current tax 1,616,000,000 2,449,800,000
Deferred tax - 186,300,000
1,616,000,000 2,636,100,000
40 Consolidated receipts from other operating activities
Prime Exchange Co. Pte. Ltd., Singapore 1,027,803 320,683
1,912,401,737 1,918,600,187
40a Receipts from other operating activities of the Bank
Rent recovered 7,618,374 6,304,685
Credit card income 38,914,255 39,803,096
Retail Income 221,870,549 220,364,527
Income from ATM services 115,967,133 296,531,804
Postage / Telex / Fax / SWIFT charge recoveries 160,888,059 135,174,145
Incidental charges 86 35,206
Rebate from foreign Bank outside Bangladesh 102,710,778 149,696,068
Gain from sale of treasury bond / shares 745,505,236 455,110,150
Miscellaneous earnings 143,067,232 176,476,444
1,558,097,238 1,775,963,262
41 Consolidated payments for other operating activities
1,578,552,527 1,453,178,417
Annual Report 2013
262
Amount in Taka
2013 2012
41a Payments for other operating activities of the Bank
Rent, rates and taxes 550,258,310 430,873,148
Legal expenses 37,756,196 28,570,418
Postage and communication charges, etc. 134,001,254 127,601,536
Directors fees 4,364,816 5,152,571
Other expenses 702,789,641 763,249,124
1,429,170,216 1,355,446,797
42 (Increase) / decrease of consolidated other assets
Prime Bank Limited (note-42a) (8,849,257,530) (13,647,964,993)
Inter-company capital 5,680,537 14,030,152
Prime Bank Investment Limited (175,046,740) 87,583,771
Prime Bank Securities Limited (16,512,699) 9,227,793
Prime Exchange Co. Pte. Ltd., Singapore 1,139,897 (3,445,866)
PBL Finance (Hong Kong) Limited 1,194,169,831 566,986,901
(7,837,890,184) (12,968,997,333)
42a (Increase)/ decrease of other assets of the Bank
T & T bonds 49,331,968,698 41,560,619,018
Stationery and stamps 23,087,731 22,512,393
Branch adjustment account 23,675,936 61,205,540
Suspense account 204,781,970 166,334,111
Encashment of PSP / BSP 35,151,558 259,196,282
Credit card 92,196,123 90,683,814
Sundry assets 8,001,594,436 6,681,509,089
57,876,804,999 49,027,547,468
(8,849,257,530) (13,647,964,993)
43 Increase / (decrease) of consolidated other liabilities
Prime Bank Investment Limited (251,293,689) (129,311,326)
Prime Bank Securities Limited 150,305,281 (6,205,212)
Prime Exchange Co. Pte. Ltd., Singapore 12,096,811 (211,020)
655,531,219 685,431,691
43a Increase / (decrease) of other liabilities of the Bank
F.C. held against EDF L/C 2,019,648,273 2,198,309,830
Exchange equalization fund - -
Provision for bonus 18,307,180 9,647,201
Unearned commission on bank guarantee 120,567,836 126,153,370
Other provision 795,721 388,462,283
Interest suspense account 1,913,098,167 620,359,575
4,151,053,837 3,421,173,829
729,880,009 786,096,248
44 Consolidated earnings per share (CEPS)
Net proft after tax (Numerator) 2,038,309,936 2,700,405,687
Number of Ordinary shares outstanding (Denominator) 1,029,348,616 1,029,348,616
Consolidated earnings per share (CEPS) 1.98 2.62
Earnings per share has been calculated in accordance with BAS - 33: Earnings Per Share (EPS). Previous
years fgures have been adjusted for the issue of bonus shares during the year.
Annual Report 2013
263
Amount in Taka
2013 2012
44a Earnings per share (EPS) of the Bank
Net proft after tax (Numerator) 1,829,495,239 2,698,992,305
Number of Ordinary shares outstanding (Denominator) 1,029,348,616 1,029,348,616
Earnings per share (EPS) 1.78 2.62
Earnings per share has been calculated in accordance with BAS - 33: Earnings Per Share (EPS). Previous
years fgures have been adjusted for the issue of bonus shares during the year.
45 Number of employees of the Bank
The number of employees engaged for the whole year or part thereof who received a total remuneration of
Tk. 36,000 p.a. or above were 2,710.
46 Assets pledged as security for liabilities of the Bank
Treasury bills & bonds to Bangladesh Bank for Repo - 7,404,350,307
Annual Report 2013
264
47 Disclosure on Audit Committee of the Bank
a) Particulars of Audit Committee
The audit committee of the Board was duly constituted by the Board of Directors of the Bank in accordance
with the BRPD Circular no. 12 dated December 23, 2002 of Bangladesh Bank.

Pursuant to the BRPD Circular no. 08 dated 19.06.2011 and BSEC notifcation no. SEC/
CMRRCD/2006-158/129/Admin/44 dated August 7, 2012 on Corporate Governance, the current
Committee is Constituted with the following 5 (Five) members of the Board and it is also comply with the
BRPD Circular No. 11 dated 27.10.2013.
Name Status with bank
Status with
committee
Educational Qualifcation
Prof. Ainun Nishat
Independent
Director
Chairman
M.Sc. Engineer (Civil), Bangladesh
University of Engineering and Technology
(BUET), Ph.D. in Civil Engineering from
University of Strathclyde, Glasgow, U.K.
Mr. M. A. Khaleque Director Member M. Com. CA (CC) ICAB
Mr. Khandker
Mohammad Khaled
Director Member
B.Sc. Engineer (Mechanical), Bangladesh
University of Engineering and Technology
(BUET).
Mr. Manzur Murshed
Independent
Director
Member
B.Sc.Engineer (Electrical), University of
Dhaka, M.A. (public Admin.), American
University of Bairut.
Prof. Dr. Mohammed
Aslam Bhuiyan
Independent
Director
Member
B.A. (Hons.), M.A. University of Dhaka,
MS in Sociology on Rural Development,
Moscow University, Ph.D. from Bombay
University.

b) Meetings held by the Audit Committee during the year by date:
Meeting No Held on
84th 22.01.2013
85th 25.02.2013
86th 21.04.2013
87th 11.05.2013
88th 18.07.2013
89th 03.09.2013
90th 23.10.2013
91st 12.12.2013
92nd 30.12.2013
Annual Report 2013
265
c) Review by the Audit Committee and Recommended thereof:
i) Review of the Internal Audit Plan, policies, procedures and interim fnancial reports for the year
2013 and suggested area of further concentration.
ii) Review of the Internal Control function and recommend before the Board for enhancement of the
activities streamlining operational risk.
iii) Review of all branch and Head offce inspection reports as submitted by the Internal Control and
Compliance Division and advice management for timely implementation and follow up.
iv) Review of the draft consolidated fnancial statements along with the external auditors and the
management and recommending it to the Board of Directors for consideration.
v) Review the implementation status of KYC & TP documentation and advised management to
stricly comply with the AML guidelines.
vi) Review with the top management of the organizations policies and procedures to prevent illegal
or unethical activities, the quality of its personnel and the adequacy of staffng, key accounting
policies and procedures, internal controls, signifcant areas of risk, legal / regulatory matters that
may have an impact on the fnancial statements, and any other matters that may affect fnancial
reporting.
vii) Review the implementation process of the Depertmental Control Function Check List (DCFCL)
and advised Management to strengthen compliance unit of ICC to prevent occurrence of
operational irregularities.
viii) Review of the Management Letter issued by Bangladesh Bank & External Auditors and
Management response thereto as part of compliance.
ix) Submission of compliance report on the minutes to the Board along with its decisions for
information and concurrence of the Board on quarterly basis.
d) Steps taken for implementation of an effective internal control procedure of the Bank :
i) Review new organogram and advise to ensuring to smooth work fow without any administrative
hassles.
ii) Review the effectiveness of the Audit & Security team to idenfy the vulnerable areas associated
with the operation of IT System in Banking Business.
iii) Review the Risk Management issues and advise for updating all existing questionnaire/ check
list in light of the Act to ensure compliance culture taking a defnite shape in the nearest future.
iv) Advise Audit Team to carry out Audit & Inspections of all Divisions of the Head Offce including
Prime Bank Foundation alongside the branches and subsidiaries to ensure proper functioning as
per laid down guidelines of the Board and the regulators.
Annual Report 2013
266
48 Related Party Disclosures of the Bank
i)
Names of the Directors together with a list of entities in which they have Interest Annexure-E
ii) Signifcant contracts where Bank is a party and wherein Directors have interest during the year 2013
(Figure in Taka)
Name of party Relationship Nature of transaction Amount
- - - Nil
iii) Shares issued to Directors and Executives without consideration or exercisable at a discount Nil
iv) Related party transactions
Nature of party/ contract Relationship Amount
Bangla Trac Ltd. Common Director 5,220,950
Prime Insurance Company Ltd Common Director 19,583,490
Green Delta Insurance Co Ltd. Common Director 6,399,294
Pragati Insurance Co. Ltd Common Director 496,512
Lease agreement Common Director 1,628,400
Lease agreement Common Director 280,400
Lease agreement Common Director 267,500
Lease agreement Common Director 7,500,000
v) Lending policies in respect of related party
a) Amount of transaction regarding loans and advances, deposits, guarantees
and commitment as on 31.12.2013
Nil
b) Amount of transactions regarding principal items of deposits, expenses and commission Nil
c) Amount of provision against loans and advances given to related party Nil
d) Amount of guarantees and commitments arising from other off-balance sheet exposures Nil
vi) Disclosure of transaction regarding Directors and their related concerns Nil
vii) Business other than banking business with any relation concern to the Directors as per Section
18(2) of the Bank Companies Act, 1991.
a) Lease agreement made with the Sponsor Director & Independent Director
Nature of contract Branch Name
Name of Director and related
by
Remarks
Lease agreement
Jubilee Road
Branch
Mr. Md. Nader Khan
Director & owner of the premises
Lease period:
01.08.2012 to
31.07.2015
Lease agreement
ATM Booth
Jubilee Road Branch
Mr. Md. Nader Khan
Lease period:
12.10.2011 to
11.10.2021
Lease agreement Kulaura Branch
Mrs. Marina Yasmin Chowdhury
Lease period:
01.08.2013 to
31.07.2019
Lease agreement Gulshan Branch
Prof. Ainun Nishat
(Independent Director)
Prof. Ainun Nishat
was not a Director of
the Bank when the
lease agreement was
executed in 2002.
However, Mr. Ainun
Nishat became a
Independent Director on
19 March 2009. He is one
of the co-sharer of the
lease premises. Lease
period: 01.09.2011 to
31.08.2014
Annual Report 2013
267
b) Service receiving companies where the Directors interest subsisted during the year
Name of party Relationship Nature of transaction Amount
Bangla Trac Ltd Common Director Procurement of Generators 5,220,950
Prime Insurance Company Ltd Common Director Insurance Coverage 19,583,490
Green Delta Insurance Co Ltd. Common Director Insurance Coverage 6,399,294
Pragati Insurance co. Ltd Common Director Insurance Coverage 496,512
viii) Investment in the Securities of Directors and their related concern Nil
ix) Business with subsidiary
Name of the Organization Relationship Nature of transaction Outstanding Amount
Prime Bank Investment Limited Subsidiary Company OD Facilities 3,373,598,085
Prime Bank Securities Limited Subsidiary Company OD Facilities 338,010,202
Prime Bank Securities Limited Subsidiary Company Bank Gurantee 500,000,000
Prime Bank Securities Limited Subsidiary Company Share Trading 324,637,548
PBL Finance (Hong Kong) Ltd Subsidiary Company Term Placement 2,323,714,250
49 Workers Participation Fund and Welfare Fund
SRO-336-AIN/2010 dated 5-10-2010 issued by Ministry of Labor and Employment and published in Bangladesh
gazette on 7-10-2010 declaring the status of business of certain institutions and companies (like mobile operating
companies, mobile network service providing company, all Govt. and Non-govt. money lending companies, all
insurance companies etc. ) as Industrial Undertakings for the purposes of Chapter-XV of the Bangladesh Labour
Act, 2006 which deals with the workers participation in companys proft by way of Workers Participation Fund
and Welfare Fund (WPFWF). The Bangladesh Labour Act, 2006 requires the Industrial Undertakings to maintain
provision for workers proft participation fund @ 5% on net proft. However, we have obtained legal opinion from Legal
advisor in this regard where it has been stated that Prime Bank Limited does not fall under this category. Therefore,
no provision in this regard has been made in the fnancial statements during the year under audit.
50 Events after the Reporting Period
The Board of Directors in its 414th meeting decided to recommend payment of 12.50% (twelve and half) cash
dividend for the year 2013. The total amount of dividend is Tk.1,286,685,770 ( One hundred twenty eight crore sixty
six lac eighty fve thousand seven hundred seventy) only.
Chairman
Annual Report 2013
268
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Annual Report 2013
269
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Annual Report 2013
270
Reconciliation statement of Balance with Bangladesh Bank
as at 31st December 2013
Annexure-A-1
1) Balance with Bangladesh Bank-Taka account of the Bank
Detail Total
Balance as per Bank ledger 13,797,228,087
Unresponded debit entries in
Bangladesh Bank statement 4,065,249
Prime Banks ledger 28,385,850 32,451,099
13,764,776,988
Unresponded credit entries in
Prime Banks ledger 83,645 17,670,883
Balance as per Bangladesh Bank statement 13,782,447,871
2) Balance with Bangladesh Bank-Foreign currency of the Bank
Balance as per Bank ledger 773,672,374
Unresponded debit entries in
Bangladesh Bank statement -
761,789,263
Unresponded credit entries in
Balance as per Bangladesh Bank statement 1,355,057,372
Annual Report 2013
271
Investment in shares of the Bank
Annexure-B
SL.
No.
Name of the Company
Face
Value
No of
shares
Cost / present
value of
holdings
Average
cost
Quoted rate
per share as
on 31.12.13
Total market
value as at
31.12.13
Quoted:
1 AB Bank Ltd. 10 1,125,000 39,201,794 34.85 26.20 29,475,000
2 Bank Asia Ltd. 10
1,100,000
24,429,908 22.21 23.00 25,300,000
3 BRAC Bank Ltd. 10 690,000 21,243,239 30.79 32.60 22,494,000
4 The City Bank Ltd. 10
1,100,000
29,538,943 26.85 20.20 22,220,000
5 DESCO 10 287,500 19,397,475 67.47 58.40 16,790,000
6 Dhaka Bank Ltd. 10 1,160,000 28,551,258 24.61 18.80 21,808,000
7 Eastern Bank Ltd. 10 1,000,000 37,410,456 37.41 29.10 29,100,000
8 Federal Insurance Compnay
Bangladesh Ltd.
10 2,509 20,380 8.12 24.70 61,972
9 Jamuna Bank Ltd. 10 600,000 14,338,010 23.90 16.30 9,780,000
10 Lanka Bangla Finance Ltd. 10 385,000 23,395,426 60.77 66.50 25,602,500
11 National Bank Ltd. 10 1 ,000,000 27,970,098 27.97 11.80 11,800,000
12 One Bank Ltd. 10 920,000 22,130,581 24.05 15.80 14,536,000
13 Uttara Bank Ltd. 10 880,000 37,009,980 42.06 31.10 27,368,000
Sub Total 324,637,548 256,335,472
Unquoted:
1 Central Depository
Bangladesh Ltd.
10 4,569,443 15,694,430 3.43 - 15,694,430
2 Investment in SWIFT 4,184,430 - - 4,184,430
3 Market Stabilization Fund 5,000,000 5,000,000
Sub Total 24,878,860 24,878,860
Total 349,516,408 281,214,332
Annual Report 2013
272
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Annual Report 2013
273
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Annual Report 2013
274
Name of the Directors and their
interest in different entities of the Bank
Annexure-E
Sl
no.
Name of Directors Status with PBL Entities where they have interest
%
of Interest
1 Mr. Md. Nader Khan Chairman
Pragati Corporation 100.00
Pedrollo NK Limited 40.00
PNL Water Management Limited 35.00
Polyexprint Limited 30.00
PNL Holding Limited 20.00
Halda Valley Tea Company Limited 15.00
Pedrollo Dairy & Horticulture Limited 2.35
Polyex Laminate Limited 2.00
Polytape Limited 1.43
Hill Plantation Ltd. 0.80
Cider Education Services Ltd. 20.00
National Life Insurance Co. Ltd 12.67
2 Mrs. Nasim Anwar Hossain Vice Chairperson
Prime Cement Ltd. 2.86
Lubricants Asia Ltd. 14.00
3 Mr. Mafz Ahmed Bhuiyan Vice Chairman
Shepherd World Trade Limited 50.00
Shepherd Consultant & Management Ltd 15.00
Techno Resources Development Ltd 5.00
4 Quazi Sirazul Islam Director
Amin Jewelers Limited 50.00
City Hospital Limited 30.00
Bangla Gold Limited 15.00
Ducati Apparels Limited 33.00
5 Mr. Khandker Mohammad Khaled Director
Greenland Engineers & Tractors Company Limited 42.00
Machinery & Equipment Trading Company Limited 42.00
GETCO Limited 37.50
GETCO Trading Limited 51.00
GETCO Agro Vision Limited 27.50
GETCO Telecommunications Limited 60.00
GETCO One Line Limited 48.00
GETCO Business Solutions Limited 34.00
GETCO Agri-Technologies Limited 50.00
Khaled Textile Mills Limited 55.00
Fareast Stocks & Bonds Limited 10.00
Fareast Islami Life Insurance Co. Ltd. 1.01
Fareast Finance & Investment Limited 4.90
6 Mr. M. A. Khaleque Director
Fareast Finance & Investment Limited 1.77
Fareast Stocks & Bonds Limited 7.24
Maksons Bangladesh Limited 50.00
Maksons Associates Limited 50.00
Prime Property Holdings Limited 20.00
PFI Properties Limited 10.00
Prime Prudential Fund Limited 10.00
Prime Financial Securities Limited 20.00
GETCO Limited 37.50
GETCO Agro Vision Limited 27.50
GETCO Fibers Limited 37.50
GETCO Power Limited 27.00
GETCO Elevator Company Limited 30.00
GETCO Agri Technologies 40.00
GETCO Online Limited 40.00
HRC Technologies Limited 40.00
7 Mr. Md. Shahadat Hossain Director
VIP Shahadat Cold Storage 50.00
VIP Shahadat Poultry & Hatchery 50.00
Annual Report 2013
275
Annexure-E Continued
Sl
no.
%
of Interest
8 Mr. Md. Shirajul Islam Mollah Director
China - Bangla Ceramic Industries Ltd. 43.44
Bengal Tiger Cement Industries Ltd. 12.00
Bajnabo Textiles Mills Ltd. 50.00
Trustee Securities Ltd. 22.00
United Shipping Lines Ltd. 40.00
Peoples Leasing and Financial Services Ltd. 2.27
SR Telecom Ltd 40.00
Dhaka-Foshan Mould Company Ltd. 15.00
9 Mr. Mizanur Rahman Bhuiyan Director
Meghna Bangladesh Ltd. 75.00
Meghna Wheels Ltd. 66.67
Meghna Light Industrial Products Limited 80.00
Meghna Cycle Industries Limited 33.33
Meghna Components Ltd. 66.67
Meghna Innova Rubber Co. Ltd. 70.00
Trans-world Bi-cycle Co. Ltd. 64.00
Meghna Poly Propylene Limited 25.00
Executive Motors Ltd. 33.33
Uniglory Cycle Components Ltd. 27.00
Uniglory Wheels Ltd. 80.00
Uniglory Steel Products Ltd. 65.00
Uniglory Cycle Industries Limited 50.00
Meghna Associates Limited 40.00
Meghna Rubber Industries Limited 93.34
Cycle Life Limited 75.00
Abrar Steel Industries Limited 40.00
Mahin Cycle Industries Limited 40.00
Meghna Holdings Limited 10.00
Meghna Tyres Limited 25.00
Meghna Mainetti Limited 80.00
Uniglory Paper & Packaging Limited 7.50
Hola Limited 10.00
Uniglory Accessories Limited 50.00
Spring Knit Wears Limited 75.00
Kia Motors Bangladesh Limited 30.00
M/S Meghna Bangladesh 100.00
10 Mrs. Marina Yasmin Chowdhury Director
Parkensine Products Ltd. 20.00
East Coast Trading (Pvt.) Ltd. 20.00
EC Securities Ltd. 3.60
EC Bulk Carriers Ltd. 20.00
East Coast Shipping Lines Ltd. 7.50
EC Distribution Ltd 40.00
Green Delta Insurance Co. Ltd 0.05
MJL Bangladesh Limited 0.002
11 Mrs. Nazma Haque Director
Asian Gate Ltd 30.00
Acorn Limited 25.00
THANE Technology 25.00
Anirban Enterprise Ltd. 50.00
12 Mrs. Salma Huq Director
GQ Ball Pen Industries Limited 9.92
PP Woven Bag Industry 33.40
Mosquito Coil Industry 0.13
GQ Foods Limited 26.66
GQ Enterprise Limited 68.81
Annual Report 2013
276
Annexure-E Continued
Sl
no.
%
of Interest
13 Mrs. Muslima Shirin Director Mawsons Limited 19.23
14 Mr. Nafs Sikder Director
Marina Apparels Ltd. 99.00
Nafa Apparels Ltd. 99.00
Ayesha Clothing Co. Ltd. 99.00
Ayesha Washing Limited 99.00
Ayesha Fashion Limited 99.00
Safaa Sweaters Ltd 99.00
Aswad Composite Mills Limited 95.00
Cortz Apparels Limited 99.00
K.M. Apparels (Pvt.) Ltd. 99.00
Hamza Clothing Ltd. 99.00
Palmal Garments Ltd. 43.75
Palmal Garments Hosiery Ltd. 43.75
Palmal Logistics 51.00
Palmal Packaging Ltd. 10.00
15
Mr. Tanjil Chowdhury
(Representative of East
Coast Shipping Lines
Limited)
Director
Parkesine Products Limited 20.00
East Coast Trading (Pvt.) Ltd. 20.00
EC Securities Ltd. 3.60
EC Bulk Carriers Ltd. 20.00
MJL Bangladesh Limited 0.002
Bangladesh Trade Syndicate Ltd 7.50
Green Delta Insurance Co. Ltd 0.55
16 Mr. Imran Khan Director
Prima Enterprise 100.00
PNL Holdings Limited 20.00
Polyexprint Limited 15.00
Halda Valley Tea Co. Limited 15.00
PNL Water Management Limited 15.00
Pedrollo NK Limited 10.00
Pedrollo Dairy & Horticulture Limited 2.35
Polyex Laminate Limited 2.00
Hill Plantation Ltd. 8.33
Polytape Limited 1.43
17 Prof. Ainun Nishat
Independent
Director
N/A N/A
18
Prof. Dr. Mohammed Aslam
Bhuiyan
Independent
Director
N/A N/A
19 Mr. Manzur Murshed
Independent
Director
N/A N/A
Annual Report 2013
277
Distribution of proft under Islamic
Banking operation
Annexure-F
Prime Bank is operating 05 (fve) Islamic Banking branches based on Islamic Shariah, which absolutely prohibits receipts
and payments of interest in any form. The operation of these 05 (fve) branches are totally different from other conventional
banking branches as they operate on the basis of proft sharing arrangement.
Fixation of fnal proft rate for the year 2013
Provisional proft are applied to the different types of depositors at the rates to be decided by the Bank from time to time
taking into consideration of the industry trend and that of the rates of other Islamic Banks in Bangladesh. Final rates of proft
are declared annually as at 31 December in every year on the basis of income earned from different investments and other
business by individual branches and distributed as per weightage of the different deposit products.
For the year ended 31 December 2013, 70% of total investment income shall be distributed to the different types of
Mudaraba depositors (except no cost fund) according to the weightage. The remaining 30% of the investment income will
be retained by the Bank as Management fee (25%) and Investment loss Off-setting Reserve (5%).
Final Proft rate for the year 2013 is given below:
Deposit types Weightage
Final rate of proft for the
year 2013(%)
Mudaraba Saving Deposits 0.75 7.06
Mudaraba Short Notice Deposits 0.52 4.89
Mudaraba Term Deposits
36 Months 1.00 9.41
24 Months 0.98 9.22
12 Months 0.96 9.04
06 Months 0.92 8.66
03 Months 0.88 8.28
01 Month 0.88 8.28
Mudaraba Education Savings Scheme 1.20 11.30
Mudaraba Monthly Contributory Savings Scheme 1.05 9.88
Mudaraba Monthly Beneft Deposit Scheme 1.02 9.60
Mudaraba Double Beneft Scheme 1.02 9.60
Mudaraba Hajj Savings Scheme 1.20 11.30
Mudaraba Lakhpoti Deposit Scheme 1.05 9.88
Mudaraba Lakhpoti Deposit Scheme > 3 1.05 9.88
Mudaraba Millionaire Deposit Scheme 1.05 9.88
Mudaraba House Building Deposit Scheme 1.05 9.88
Mudaraba My First Account 0.75 7.06
Mudaraba Sukonna Deposit 0.75 7.06
Mudaraba Nobagoto Deposit 1.05 9.88
Mudaraba 150% Deposit Scheme 1.01 9.51
Mudaraba Laksma Puran Saving Scheme 1.05 9.88
Annual Report 2013
278
Prime Bank Limited-Islamic Branches
Balance Sheet as at 31 December 2013
Annexure-G
Particulars Notes
Amount in Taka
2013 2012
PROPERTY AND ASSETS
Cash in hand 1
Cash in hand (including foreign currencies) 84,027,018 62,420,709
(including foreign currencies) - -
84,027,018 62,420,709
Balance with other banks and fnancial institutions 2
In Bangladesh 212,804 213,306
212,804 213,306
Placement with banks & other fnancial institutions 3 - -
Investments in share & securities 4
Government - -
Others - -
- -
Investments
General investments etc 5 12,321,696,555 12,907,804,605
Bills purchased and discounted 6 289,896,022 761,805,137
12,611,592,577 13,669,609,742
Fixed assets including premises 7 29,330,353 39,803,189
Other assets 8 3,413,895,474 2,523,594,919
Total assets 16,139,058,226 16,295,641,865
Liabilities
Placements from other banks, fnancial institutions and agents 9 - -
Mudaraba savings deposits 1,469,555,319 1,883,521,658
Mudaraba term deposits 12,324,949,496 11,735,023,423
Other mudaraba deposits - -
Al-wadeeah current deposits and other deposits accounts 2,088,343,898 2,498,804,441
Bills payable 62,570,057 128,706,901
15,945,418,769 16,246,056,423
Other liabilities 11 193,639,457 49,585,442
Paid up capital - -
Statutory reserve - -
Revaluation gain / (loss) on investments - -
Revaluation reserve - -
Other reserve - -
Surplus in proft and loss account / Retained earnings - -
Total Shareholders equity - -
Annual Report 2013
279
Particulars Notes
Amount in Taka
2013 2012
OFF- BALANCE SHEET EXPOSURES
Acceptances and endorsements 12.1 2,435,446,515 2,853,617,078
Letters of guarantee 12.2 1,020,196,625 967,587,167
Irrevocable letters of credit 12.3 1,141,700,480 1,056,519,014
Bills for collection 12.4 201,389,599 167,679,643
4,798,733,219 5,045,402,902
Other commitments
Other commitments - -
- -
Total Off-Balance Sheet exposure including contingent liabilities 4,798,733,219 5,045,402,902
Annual Report 2013
280
Proft and Loss Account for the year ended 31 December 2013
Annexure-G(I)
Particulars Notes
Amount in Taka
2013 2012
Investment income 13 2,784,445,882 2,521,281,958
Proft paid on deposits 14 (1,579,947,869) (1,663,610,420)
Net investment income 1,204,498,013 857,671,538
Income from investment in shares / securities - -
Commission, exchange and brokerage 15 91,091,483 100,413,925
Other operating income 16 42,332,914 51,165,583
Salaries and allowances 17 102,897,944 95,254,697
Rent, taxes, insurance, electricity, etc. 18 13,899,916 12,118,962
Legal expenses 19 731,628 211,615
Postage, stamp, telecommunication, etc. 20 7,832,438 9,397,036
Stationery, printing, advertisements, etc. 21 4,932,443 5,346,313
Chief Executives salary and fees - -
Directors fees & expenses - -
Shariah supervisory committees fees and expenses - -
Auditors fees - -
Charges on investment losses 22 - -
Depreciation and repair of Banks assets 23 7,838,369 9,365,464
Zakat expenses - -
Other expenses 24 18,527,958 15,858,328
Total operating expenses (B) 156,660,696 147,552,415
Proft / (loss) before provision (C=A-B) 1,181,261,714 861,698,631
Provision for investments 25
Specifc provision - -
General provision - -
Provision for off-balance sheet exposures - -
- -
Provision for diminution in value of investments - -
Other provisions - -
Total provision (D) - -
Total proft / (loss) before taxes (C-D) 1,181,261,714 861,698,631
Annual Report 2013
281
Cash Flow Statement for the year ended 31 December 2013
Particulars
Amount in Taka
2013 2012
Investment income receipts in cash 2,523,624,527 2,179,669,119
Proft paid on deposits (1,572,272,330) (1,661,136,450)
Dividend receipts - -
Fees and commission receipts in cash 91,091,483 100,413,925
Recoveries of investments previously written off - -
Cash payments to employees (102,897,944) (95,254,697)
Income taxes paid - -
Receipts from other operating activities 42,332,914 51,165,583
Payments for other operating activities (43,450,386) (40,199,922)
in operating assets and liabilities 933,495,821 529,311,245
Purchase of trading securities (Treasury bills) - -
Investment to other banks - -
Investment to customers 1,058,017,164 (400,948,724)
Other assets (1,818,416,454) (27,059,588)
Deposits from other banks (214,050,964) (1,813,162,649)
Deposits from customers (86,586,690) 1,760,244,704
Other liabilities account of customers - -
Other liabilities 144,054,015 (28,412,152)
(916,982,929) (509,338,409)
Net cash from operating activities 16,512,892 19,972,836
Debentures - -
Proceeds from sale of securities - -
Payments for purchases of securities - -
Purchase of property, plant and equipment 5,092,915 (5,849,042)
Payment against lease obligation - -
Proceeds from sale of property, plant and equipment - -
Net cash from investing activities 5,092,915 (5,849,042)
Dividend paid - -
Net Cash from fnancing activities - -
D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 21,605,807 14,123,793
E) Effects of exchange rate changes on cash and cash equivalents - -
F) Cash and cash equivalents at beginning of the year 62,634,015 48,510,222
G) Cash and cash equivalents at end of the year (D+E+F) 84,239,822 62,634,015
Cash in hand (including foreign currencies) 84,027,018 62,420,709
(including foreign currencies) - -
Balance with other banks and fnancial institutions 212,804 213,306
Placement with banks & other fnancial institutions - -
Prize bonds - -
84,239,822 62,634,015
Annual Report 2013
282
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Annual Report 2013
283
Notes to the Financial Statements for the year ended 31 December 2013 Please see PBL notes 1-2
Amount in Taka
2013 2012
1 Cash in hand
i) In local currency 82,487,257 60,635,745
ii) In foreign currency 1,539,761 1,784,964
Sub-total (a) 84,027,018 62,420,709
Cash with Bangladesh Bank and its agents
Balance with Bangladesh Bank - -
Balance with Sonali Bank (as agent of Bangladesh Bank) - -
Sub-total (b) - -
Grand total (a+b) 84,027,018 62,420,709
Required CRR and SLR of Islamic Branches are maintained at Head Offce
2 Balance with other banks and fnancial institutions
In Bangladesh (note-2.1) 212,804 213,306
Outside Bangladesh (note-2.2) - -
212,804 213,306
2.1 In Bangladesh
Short-term deposit accounts
ICB Islamic Bank Ltd., Motijheel, Dhaka 14,334 15,599
ICB Islamic Bank Ltd, Sylhet 17,016 18,971
Social Islami Investment Bank Ltd. Dhaka 12,603 12,433
43,953 47,003
Savings accounts
Al Arafah Islami Bank Ltd. Dhaka 64,622 63,492
Bank Al Falah Ltd. Dhaka 36,595 36,109
Social Islami Investment Bank Ltd. Dhaka 67,635 66,702
168,851 166,303
2.2 Outside Bangladesh (NOSTRO Accounts) - -
212,804 213,306
3 Placement with banks & other fnancial institutions - -
4 Investment in share & securities - -
5 Investments
a) In Bangladesh
Quard against TDR 1,918,612,116 997,689,634
Bai-Murabaha (cc pledge) 3,645,849,351 4,450,284,608
Bai-Muajjal (cc hypo) 2,737,353,624 3,058,092,259
Retail investment 648,495,741 775,652,281
Izara (note-5.2) 491,240,293 673,512,624
Bai-Salam (packing credit) 34,258,761 74,271,401
Staff investment 141,596,189 125,249,403
Hire purchase 2,704,290,480 2,753,052,395
12,321,696,555 12,907,804,605
b) Outside Bangladesh - -
12,321,696,555 12,907,804,605
Inland bills purchased 269,918,641 757,557,115
Payable Outside Bangladesh -
Foreign bills purchased and discounted 19,977,381 4,248,022
289,896,022 761,805,137
12,611,592,577 13,669,609,742
Annual Report 2013
284
Notes to the Financial Statements for the year ended 31 December 2013
Amount in Taka
2013 2012
5.1 Investments under the following broad categories
Investments 4,019,881,464 4,401,738,103
Bai-Murabaha / Bai-Muajjal 6,383,202,976 7,508,376,868
Quard against TDR 1,918,612,116 997,689,634
12,321,696,556 12,907,804,605
Bills purchased and discounted (note-6) 289,896,022 761,805,137
12,611,592,577 13,669,609,742
5.2 Izara
Lease rental receivable within 1 year 101,580,600 311,317,837
Lease rental receivable within 5 years 1,082,792,736 908,084,691
Lease rental receivable after 5 years - -
Total lease / Izara rental receivable 1,184,373,336 1,219,402,528
Less: Unearned interest receivable 693,133,043 545,889,904
Net lease / Izara fnance 491,240,293 673,512,624
5.3 Investments on the basis of signifcant
concentration including bills purchased and discounted.
a) Investments to Directors of the Bank - -
b) Investments to Chief Executive and
other executives & offcers 141,528,771 125,167,295
c) Investments to customer groups:
i) Commercial investment 915,930,190 1,690,146,448
ii) Export fnancing 38,274,261 112,903,107
iii) House building investment 935,753,322 1,392,961,486
iv) Retail investment 648,495,741 775,652,281
v) Small and medium enterprises 1,121,587,678 1,080,027,038
vi) Special program investment - -
vii) Staff investment 67,418 82,108
viii) Industrial investments 7,814,679,327 7,709,101,131
ix) Other investment 995,275,870 783,568,848
12,470,063,807 13,544,442,447
12,611,592,577 13,669,609,742
d) Details of Industrial investments
i) Agricultural industries 194,372,071 192,491,753
ii) Textile industries 874,104,981 3,934,920,022
iii) Food and allied industries 433,559,027 536,801,685
iv) Pharmaceutical industries 75,679,162 101,150,019
v) Leather, chemical, cosmetics, etc. 60,308,781 -
vi) Tobacco industries - -
vii) Cement and ceramic industries 823,091,709 841,183,375
viii) Service Industries 120,059,319 13,561,298
ix) Transport and communication industries 260,732,118 305,297,467
x) Other industries including bills purchase and discounted 4,972,772,160 1,783,695,512
7,814,679,327 7,709,101,131
5.4 Investments -geographical location-wise
Inside Bangladesh
Urban
Dhaka Division 9,541,802,748 9,601,679,320
Chittagong Division 2,882,890,221 3,873,823,138
Khulna Division - -
Rajshahi Division - -
Barisal Division - -
Sylhet Division 186,899,608 194,107,284
12,611,592,577 13,669,609,742
Rural
Dhaka Division - -
Chittagong Division - -
Sylhet Division - -
- -
12,611,592,577 13,669,609,742
Annual Report 2013
285
Amount in Taka
2013 2012
5.5 Details of pledged collaterals
Collateral of movable / immovable assets 9,424,546,296 11,973,280,644
Local banks and fnancial institutions guarantee 1,398,779,310 48,261,564
Export documents 44,813,875 44,061,714
Fixed deposit receipts 582,074,989 683,671,820
FDR of other banks - -
Personal guarantee 949,280,184 619,475,122
Other securities 212,097,923 300,858,878
12,611,592,577 13,669,609,742
5.6 Particulars of investments
i) Investments considered good in respect of which the Bank is fully secured 11,400,050,545 12,701,014,178
ii) Investments considered good against which the Bank holds no
security other than the debtors' personal guarantee 316,661,147 920,334,000
iii) Investments considered good secured by the personal undertaking of
one or more parties in addition to the personal guarantee of the debtors
894,880,886 48,261,564
iv) Investments adversely classifed; provision not maintained there against - -
12,611,592,577 13,669,609,742
v) Investments due by directors or offcers of the banking company
or any of them either separately or jointly with any other persons 141,596,189 125,249,403

vi) Investments due from companies or frms in which the directors
of the Bank have interest as directors, partners or managing
agents or in case of private companies, as members - -
vii) Maximum total amount of investments, including temporary
investment made at any time during the year to directors or
managers or offcers of the banking company or any of them
either separately or jointly with any other person. 141,596,189 125,249,403
viii) Maximum total amount of investments, including temporary
investments granted during the year to the companies or
frms in which the directors of the banking company have
interest as directors, partners or managing agents or in the
case of private companies, as members - -
ix) Due from banking companies - -
x) Classifed investments
a) Classifed investments on which proft has not been charged (note-5.7) 235,056,108 311,786,384
b) Provision on classifed investments (note-5.8) 70,039,007 97,528,306
c) Provision kept against investments classifed as bad debts 60,036,704 66,572,306
d) Proft Suspense Account (note-11) 104,487,600 45,123,559
xi) Cumulative amount of written off investments
Opening Balance - -
Amount written off during the year - -
- -
Amount realised against investments previously written off - -
The amount of written off investments
for which law suits have been fled - -
Annual Report 2013
286
Amount in Taka
2013 2012
5.7 Classifcation of investments
Unclassifed
Standard including staff investment 12,137,830,784 13,156,437,869
Special mention account (SMA) 238,705,685 201,385,489
12,376,536,469 13,357,823,358
Classifed
Sub-standard 33,986,865 189,449,012
Doubtful 41,323,916 32,104,862
Bad / Loss 159,745,328 90,232,510
235,056,108 311,786,384
12,611,592,577 13,669,609,742
5.8 Particulars of required provision for investments
Base Rate
General Provision
Investments (Including SMA) 12,376,536,469 *Various 177,799,853 209,076,393
177,799,853 209,076,393
*General provision is kept @ 1% on general investments and 2% on small enterprise fnancing and 5% on consumer
fnancing.
Specifc provision
Sub-standard 13,820,000 20 2,764,000 20,663,732
Doubtful 14,476,606 50 7,238,303 10,292,268
Bad / Loss 60,036,704 100 60,036,704 66,572,306
70,039,007 97,528,306
Required provision for investments 247,838,860 306,604,699
Provision maintained by Head Offce 247,838,860 306,604,699
Excess / (short) provision at 31 December 2013 - -
5.9 Particulars of required provision for Off-balance Sheet Exposures
Base Rate
for provision 1%
Acceptances and endorsements 3,153,072,594 31,530,726 34,956,999
Letter of guarantee 1,045,110,938 10,451,109 10,048,405
Letter of credit 1,550,741,407 15,507,414 16,820,877
Required provision on Off-balance Sheet Exposures 57,489,249 61,826,281
Provision maintained by Head Offce 57,489,249 61,826,281
Excess / (short) provision at 31 December 2013 - -
6 Bills purchased and discounted
Payable in Bangladesh 269,918,641 757,557,115
Payable outside Bangladesh 19,977,381 4,248,022
289,896,022 761,805,137
Annual Report 2013
287
Amount in Taka
2013 2012
7 Fixed assets including premises, furniture and fxtures
Property, Plant & Equipment
Land - -
Building - 7,752,957
Offce equipment and machinery 11,242,163 11,834,066
Vehicles 3,682,075 5,701,027
Leased vehicles 990,340 414,533
Library books 1,709 811
29,330,353 39,803,189
ATM
Hardware & equipment - -
Furniture & fxture - -
Interior decoration - -
- -
29,330,353 39,803,189
Less: Accumulated depreciation - -
29,330,353 39,803,189
Intangibles assets
Software-core banking - -
Software-ATM - -
Cost of intangibles assets - -
Less: Accumulated amortization - -
- -
Net book value at the end of the year 29,330,353 39,803,189
8 Other assets
Stationery and stamps 258,819 306,281
Proft receivable 260,821,355 341,612,838
Advance income tax - 104,062
Branch adjustments account 3,135,936,450 1,000,059,777
Migration account - -
Suspense account 589,226 683,312
Islamic transit account 408,564 -
Sundry assets 14,526,624 1,178,571,630
3,413,895,474 2,523,594,919
9 Borrowings from other banks, fnancial institutions and agents
In Bangladesh - -
- -
10 Deposits and other accounts
Deposits from banks (note -10.1.a) 1,597,372,572 1,811,423,535
Deposits from customers (note-10.1.b) 14,348,046,198 14,434,632,888
15,945,418,769 16,246,056,423
10.1 a) Deposits from Banks
Al-wadeeah current deposits - -
Bills payable - -
Mudaraba savings deposits 33,178,088 477,642,721
Mudaraba special notice deposits 1,564,194,484 333,780,814
Mudaraba fxed deposits - 1,000,000,000
1,597,372,572 1,811,423,535
Annual Report 2013
288
Amount in Taka
2013 2012
Sl No Name of Bank Type of Account
1 Al Arafah Islami Bank Ltd MSB 14,728,547 53,202,185
2 Bank Al-Falah MSB 6,345 11,231
3 Social Islami Bank Ltd MSB 12,167,806 418,318,007
4 Islami Bank Bangladesh Ltd MSB 6,275,390 6,111,298
Sub Total 33,178,088 477,642,721
5 Exim Bank Ltd MSND 24,809,713 20,759,196
6 ICB Islamic Bank Ltd MSND 2,120,793 2,049,567
7 Social Islami Bank Ltd MSND 6,659 7,809
8 Shahjalal Islami Bank Ltd MSND 1,508,450,115 288,840,944
9 Modhumoti Bank Ltd MSND 5,592,532 -
10 Islami Bank Bangladesh Limited MSND 23,214,672 22,123,298
Sub Total 1,564,194,484 333,780,814
11 Al Arafah Islami Bank Ltd MTDR - -
12 Islami Bank Bangladesh Limited MTDR - 1,000,000,000
Sub Total - 1,000,000,000
Grand Total 1,597,372,572 1,811,423,535
b) Customer Deposits
i) Al wadeeah current deposits and other accounts
Al-wadeeah current deposits 480,917,949 576,646,553
Foreign currency deposits 133,233,832 131,027,883
Security deposits 440,619 591,119
Sundry deposits 1,473,751,498 1,790,538,886
2,088,343,898 2,498,804,441
ii) Bills payable
Pay orders issued 61,069,249 126,215,349
Pay slips issued 70,594 70,594
Demand draft payable 1,430,214 2,420,958
Foreign demand draft - -
T. T. payable - -
62,570,057 128,706,901
iii) Mudaraba savings deposits 1,436,377,231 1,405,878,937
iv) Mudaraba term deposits
Mudaraba fxed deposits 7,013,593,729 7,152,959,411
Mudaraba special notice deposits 817,285,777 628,218,239
Non resident Taka deposits - -
Mudaraba special scheme deposits 2,929,875,506 2,620,064,959
10,760,755,012 10,401,242,609
14,348,046,198 14,434,632,888
15,945,418,769 16,246,056,423
c) Deposits and other accounts
Deposits from banks (note -10.1.a) - -
Deposits from customers (note-10.1.b.i) 2,088,343,898 2,498,804,441
2,088,343,898 2,498,804,441
Bills payable
Deposits from banks (note -10.1.a) - -
Deposits from customers (note-10.1.b.ii) 62,570,057 128,706,901
62,570,057 128,706,901
Savings bank / mudaraba savings deposits
Deposits from banks (note -10.1.a) 33,178,088 477,642,721
Deposits from customers (note-10.1.b.iii) 1,436,377,231 1,405,878,937
1,469,555,319 1,883,521,658
Annual Report 2013
289
Amount in Taka
2013 2012
Deposits from banks (note -10.1.a) 1,564,194,484 1,333,780,814
Deposits from customers (note-10.1.b.iv) 10,760,755,012 10,401,242,609
12,324,949,496 11,735,023,423
15,945,418,769 16,246,056,423
11 Other liabilities
Foreign currency held against EDF loan 85,857,204 -
Obligation under fnance lease - -
Provision for unclassifed investments - -
Provision for classifed investment - -
Provision for off-balance sheet exposure - -
Interest suspense account 104,487,600 45,123,559
193,639,457 49,585,442
12 Contingent liabilities
12.1 Acceptances and endorsements
Back to back bills (Foreign) 2,459,259,236 2,532,366,798
Back to back bills (Local) 652,101,031 931,935,821
Back to back bills (EPZ) 41,712,327 31,397,330
3,153,072,594 3,495,699,949
Less: Margin (717,626,079) (642,082,871)
2,435,446,515 2,853,617,078
Letters of guarantee (Local) 285,838,261 379,740,629
Letters of guarantee (Foreign) 759,272,677 625,099,851
Foreign counter guarantees - -
1,045,110,938 1,004,840,480
Less: Margin (24,914,313) (37,253,313)
1,020,196,625 967,587,167
Money for which the Bank is contingently liable in respect of guarantees given favoring:
Directors or offcers - -
Government 54,130,155 127,865,180
Banks and other fnancial institutions 779,238,926 643,680,136
Others 211,741,857 233,295,164
1,045,110,938 1,004,840,480
Less: Margin (24,914,313) (37,253,313)
1,020,196,625 967,587,167
12.3 Irrevocable Letters of Credit
Letters of credit (Sight) 293,211,731 441,735,207
Letters of credit (Deferred) 455,761,331 774,173,437
Back to back L/C 801,768,345 466,179,067
Banks liabilities PAD - -
1,550,741,407 1,682,087,711
Less: Margin (409,040,927) (625,568,697)
1,141,700,480 1,056,519,014
Outward bills for collection 201,602,649 167,892,693
Inward local bills for collection - -
Inward foreign bills for collection - -
201,602,649 167,892,693
Less: Margin (213,050) (213,050)
201,389,599 167,679,643
Annual Report 2013
290
Amount in Taka
2013 2012
13 Investment income
i) Income from general investment
Quard against TDR 103,973,188 113,143,164
Bai-Murabaha (cc pledge) 638,886,325 690,481,270
Bai-Muajjal (cc hypo) 459,781,751 523,385,528
Retail investment loan 110,515,252 130,147,008
Izara 95,234,116 104,558,960
Bai-Salam (packing credit) (973,580) 11,820,191
Staff loan 7,701,644 5,830,656
Hire purchase 414,688,278 351,409,160
Other investments 886,115,704 460,702,605
Inland bills purchased 68,519,667 129,796,772
Sub-total (i) 2,784,442,345 2,521,275,314
ii) Proft on deposits with other Islamic banks
In Bangladesh 3,537 6,644
Out side Bangladesh - -
Sub-total (ii) 3,537 6,644
Grand total (i+ii) 2,784,445,882 2,521,281,958
14 Proft paid on deposits
a) Proft paid on deposits:
Mudaraba savings deposits 131,447,430 119,574,501
Mudaraba special notice deposits 267,011,921 162,218,851
Mudaraba term deposits 854,344,000 1,059,813,449
Mudaraba special scheme deposits 323,903,776 266,068,567
Foreign currency deposits - 13,732
Others 3,240,742 51,637,837
1,579,947,869 1,659,326,937
b) Interest / Proft paid for borrowings:
Bangladesh Bank/ Other Bank/ FI/Agents bank - 328
Islamic Bond Fund - 4,283,155
- 4,283,483
1,579,947,869 1,663,610,420
15 Commission, exchange and brokerage
Commission on L/Cs-sight 11,913,223 27,673,365
Commission on L/Cs-deferred 8,450,202 3,455,822
Commission on L/Cs-back to back 38,729,498 30,761,631
Commission on L/Gs 6,796,222 9,721,337
Commission on remittance 2,291,493 2,218,224
Other commission 34,877 67,933
68,215,515 73,898,312
Exchange gain (note - 15.1) - including gain from FC dealings 22,875,968 26,515,613
Settlement fees / Brokerage - -
91,091,483 100,413,925
15.1 Exchange gain
Exchange gain 22,880,312 26,515,613
Less: Exchange loss (4,344) -
22,875,968 26,515,613
Annual Report 2013
291
Amount in Taka
2013 2012
16 Other operating income
Rent recovered 529,500 533,210
Retail Income 16,153,308 17,747,844
Income from ATM Service 3,501,870 2,647,483
Postage / telex / SWIFT/ fax recoveries 6,239,601 4,324,463
Gain on sale of assets - -
Incidental charges - -
Rebate from foreign Bank 3,368,389 4,123,454
Foreign correspondent charges - -
Miscellaneous earnings (note-16.1) 8,515,589 17,167,226
42,332,914 51,165,583
16.1 Miscellaneous earnings include syndication fee, commission from
foreign remittance house / bank and sale proceeds of various items, etc.
17 Salaries and allowances
Basic pay 51,707,020 47,632,946
Allowances 38,007,916 35,655,325
Bonus 8,246,000 7,426,000
Banks contribution to provident fund 4,937,008 4,540,426
102,897,944 95,254,697
18 Rent, taxes, insurance, electricity, etc.
Rent, rate and taxes 9,324,931 7,354,877
Lease rent - 10,617
Insurance 772,645 952,440
Power and electricity 3,802,340 3,801,028
13,899,916 12,118,962
19 Legal expenses
Legal expenses 731,628 211,615
Other professional charges - -
731,628 211,615
20 Postage, stamp, telecommunication, etc.
Postage 1,256,865 1,011,532
Telegram, telex, fax and e-mail 2,315,566 2,947,781
Data communication 3,553,105 4,897,397
Telephone - offce 638,434 484,704
Telephone - residence 68,468 55,622
7,832,438 9,397,036
21 Stationery, printing and advertisements, etc.
Offce and security stationery 2,224,512 2,167,810
Computer consumable stationery 2,663,063 2,943,042
Publicity and advertisement 44,868 235,461
4,932,443 5,346,313
22 Charges on loan losses
Loan -written off - -
Interest waived - -
- -
Annual Report 2013
292
Amount in Taka
2013 2012
23 Depreciation and repair of Banks assets
Depreciation
Fixed assets 5,379,922 6,751,484
Leased assets - -
5,379,922 6,751,484
Repairs
Building 115,090 343,938
Furniture and fxtures 159,830 170,805
Offce equipment 1,428,754 1,401,163
Banks vehicles 485,323 96,221
Maintenance 269,450 601,853
2,458,447 2,613,980
7,838,369 9,365,464
24 Other expenses
Security and cleaning 6,449,277 4,888,973
Entertainment 1,974,788 2,223,296
Car expenses 5,349,881 4,850,965
Books, magazines and newspapers, etc. 28,261 21,737
Medical expenses - -
Bank charges and commission paid 1,400 800
Loss on sale of assets - -
Finance charge for lease assets - -
Retail Expenses 768,103 -
Traveling expenses 864,670 755,884
Local conveyance, labor, etc. 714,447 825,063
Business development - -
Training and internship 254,050 202,750
Remittance charges 683,650 617,260
Laundry, cleaning and photographs, etc. 349,478 333,809
Exgratia 430,500 385,000
Miscellaneous expenses 659,453 752,791
18,527,958 15,858,328
25 Provision for investments & off -balance sheet exposure
Provision for bad and doubtful investments - -
Provision for unclassifed investments - -
Provision for off-balance sheet exposure - -
Provision for other assets - -
- -
Annual Report 2013
293
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L
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m
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t
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d
Annual Report 2013
294
L
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q
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6
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1
5
1
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-

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8
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M
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n
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3
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5
6
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L
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2
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1
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F
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a
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5
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4
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6
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O
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2
3
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1
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2
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1
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3
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8
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N
o
n

b
a
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k
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g

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s

-

-

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T
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t
a
l

a
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s
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s

(
A
)
:

4
2
,
8
7
4
,
2
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3
,
8
0
9

4
8
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4
1
8
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3
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5
3
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1
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8
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7
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3
1
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4
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9
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0
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2

6
8
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4
4
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1

2
4
3
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8
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8
,
8
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8
2
4

L
i
a
b
i
l
i
t
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e
s
:
B
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o
w
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g
s

f
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m

B
a
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g
l
a
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B
a
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k
,

o
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r

b
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f
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(
n
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e
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1
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9
6
8
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3

-

1
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6
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2
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0
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2
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9

-

3
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8
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D
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s

(
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6
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3
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5
9
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2
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8
8
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3
2
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4

2
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6

5
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1
9
9
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8
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O
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(
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6
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2
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-

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2
,
0
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1
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4
1
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5

P
r
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v
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d

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s

4
1
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0
4
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2
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1
7
8
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0
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3

5
4
7
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2
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6
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3
5
7
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3
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1
1
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9
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9
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3
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9
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9

1
5
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7
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5
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2

T
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t
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l

l
i
a
b
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l
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t
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e
s

(
B
)
:

3
3
,
4
4
3
,
4
8
8
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2

6
1
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4
3
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9
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3
4
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3
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2

2
8
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9
4
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7

6
3
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1
5
5
,
7
0
4
,
0
4
7

2
2
0
,
8
3
9
,
1
8
7
,
7
1
6

N
e
t

l
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q
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d
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y

g
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p

(
A
-
B
)
:

9
,
4
3
0
,
7
7
5
,
0
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7

(
1
3
,
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2
1
,
4
7
1
,
7
3
0
)

1
8
,
6
1
3
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1
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,
0
9
1

3
,
1
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4
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3
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2
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4
,
8
5
2
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7
4
0
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4
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4

2
3
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1
7
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1
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8

D
i
r
e
c
t
o
r
M
a
n
a
g
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g

D
i
r
e
c
t
o
r
C
h
a
i
r
m
a
n
D
i
r
e
c
t
o
r
Annual Report 2013
295
C
o
n
s
o
l
i
d
a
t
e
d

L
i
q
u
i
d
i
t
y

S
t
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m
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t

(
A
n
a
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s

o
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m
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y

o
f

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s

a
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d

l
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)
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s

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t

3
1

D
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r

2
0
1
3
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n
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x
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(
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s

U
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t
o

1

m
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1
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3

m
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s

3
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m
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1
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y
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s

A
b
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5

y
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T
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1
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B
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w
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b
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6
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-

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1
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M
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a
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c
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1
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3
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4
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3
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5
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L
o
a
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s

a
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d

a
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v
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/

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s
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n
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s

3
4
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2
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3
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4
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2
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9
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1
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6

F
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x
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d

a
s
s
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t
s

i
n
c
l
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p
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m
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,

f
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d

f
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s

5
1
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4
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1
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2
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1
6
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2

1
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5
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3
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6
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O
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r

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1
2
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7
9
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2
9
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1
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1

7
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4
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1
8
8
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0
5
4
,
3
4
8

2
,
5
5
2
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1
2
2
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3
5
7

N
o
n

b
a
n
k
i
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g

a
s
s
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t
s

-

-

-

-

-

-

T
o
t
a
l

a
s
s
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t
s

(
A
)
:

4
3
,
0
0
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4
1
4
,
8
2
0

5
1
,
8
4
4
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4
2
5
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3
6

5
3
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4
5
0
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2
6
3
,
7
6
1

3
1
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5
3
6
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5
9
3
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7
2
5

6
5
,
6
9
0
,
9
4
8
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2
9
3

2
4
5
,
5
2
2
,
6
4
5
,
6
3
6

L
i
a
b
i
l
i
t
i
e
s
:
B
o
r
r
o
w
i
n
g
s

f
r
o
m

B
a
n
g
l
a
d
e
s
h

B
a
n
k
,

o
t
h
e
r

b
a
n
k
s
,

f
n
a
n
c
i
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l

i
n
s
t
i
t
u
t
i
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n
s

a
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d

a
g
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n
t
s

2
,
1
8
0
,
9
0
8

-

1
,
2
9
1
,
7
9
5
,
2
9
0

2
,
9
7
9
,
6
2
1
,
4
3
1

-

4
,
2
7
3
,
5
9
7
,
6
2
9

D
e
p
o
s
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t
s

3
1
,
2
3
1
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7
8
2
,
8
6
9

5
9
,
2
6
1
,
7
8
8
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5
8
4

3
2
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8
1
8
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1
4
4
,
0
1
4

2
5
,
2
2
0
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2
1
7
,
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2
7

5
1
,
2
0
5
,
9
1
0
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1
0
8

1
9
9
,
7
3
7
,
8
4
3
,
1
0
2

O
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r

a
c
c
o
u
n
t
s

2
,
0
8
1
,
4
1
7
,
0
5
5

-

-

-

-

2
,
0
8
1
,
4
1
7
,
0
5
5

P
r
o
v
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s
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o
n

a
n
d

o
t
h
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r

l
i
a
b
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l
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e
s

1
9
5
,
3
4
2
,
5
4
6

2
,
3
0
8
,
2
3
2
,
9
9
3

5
7
4
,
2
1
1
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1
6
0

4
0
9
,
9
8
9
,
2
7
6

1
2
,
5
8
3
,
4
9
2
,
5
4
9

1
6
,
0
7
1
,
2
6
8
,
5
2
4

T
o
t
a
l

l
i
a
b
i
l
i
t
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e
s

(
B
)
:

3
3
,
5
1
0
,
7
2
3
,
3
7
8

6
1
,
5
7
0
,
0
2
1
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5
7
7

3
4
,
6
8
4
,
1
5
0
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4
6
4

2
8
,
6
0
9
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8
2
8
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2
3
4

6
3
,
7
8
9
,
4
0
2
,
6
5
7

2
2
2
,
1
6
4
,
1
2
6
,
3
1
0

N
e
t

l
i
q
u
i
d
i
t
y

g
a
p

(
A
-
B
)
:

9
,
4
8
9
,
6
9
1
,
4
4
3

(
9
,
7
2
5
,
5
9
6
,
5
4
1
)

1
8
,
7
6
6
,
1
1
3
,
2
9
7

2
,
9
2
6
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7
6
5
,
4
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1

1
,
9
0
1
,
5
4
5
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6
3
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2
3
,
3
5
8
,
5
1
9
,
3
2
6

Annual Report 2013
296
High Lights of the Bank
Annexure-J
(Taka in million)
Sl. no Particulars 2013 2012
1 Paid-up capital 10,293.49 9,357.71
2 Total capital (Consolidated) 26,811.97 25,915.65
3 Total capital (Solo Basis) 26,495.44 25,751.53
4 Capital surplus / (defcit) (Consolidated) 4,532.82 5,405.38
5 Capital surplus / (defcit) (Solo Basis) 4,493.43 5,517.56
6 Total assets 243,868.80 236,833.01
7 Total deposits 201,907.14 182,052.87
8 Total loans and advances / investments 153,588.76 160,889.85
9 Total contingent liabilities and commitments 107,755.18 108,187.32
10 Credit deposit ratio 76.07% 88.38%
11 Percentage of classifed loans / investments against total loans and advances / investments 5.09% 3.83%
12 Proft after tax and provision 1,829.50 2,698.99
13 Amount of classifed loans / investments during the year 7,814.50 6,168.50
14 Provisions kept against classifed loans / investments 3,342.05 1,949.08
15 Provision surplus / (defcit) against classifed loans / investments 10.22 47.02
16 Cost of fund 8.80% 8.75%
17 Interest earning assets 211,398.98 208,395.88
18 Non-interest earning assets 32,469.83 28,437.12
19 Return on investment (ROI) 10.86% 10.43%
20 Return on assets (ROA) 0.76% 1.24%
21 Income from investment 5,582.71 4,633.33
22 Earnings per share (Taka) 1.78 2.62
23 Net income per share (Taka) 1.78 2.62
24 Price earning ratio (times) 14.57 14.11
Annual Report 2013
298
Particulars Notes
2013 2012
USD Taka Taka
PROPERTY AND ASSETS
Cash
In hand (including foreign currencies) - - -
Balance with Bangladesh Bank and its agent
bank (s) (including foreign currencies)
- - -

- -
Balance with other banks and fnancial institutions
In Bangladesh 3 4,471,493 347,658,546 166,621,451
Outside Bangladesh - - 429,879
4,471,493 347,658,546 167,051,330
Loans and advances
Loans, cash credits, overdrafts, etc. 4 46,202,480 3,592,242,835 3,237,122,791
Bills purchased and discounted 5 31,609,109 2,457,608,207 1,657,978,582
77,811,589 6,049,851,042 4,895,101,373
Fixed assets including premises, furniture and fxtures 6 39,767 3,091,918 3,793,678
Other assets 7 72,265 5,618,574 119,278
Non - banking assets - - -
Total assets 82,395,114 6,406,220,080 5,066,065,659
Liabilities
Borrowings from other banks, fnancial institutions and agents 8 79,416,314 6,174,618,379 4,762,989,842
Current deposits 1,205,828 93,753,151 154,476,693
Bills payable - - -
Savings bank deposits - - -
Term deposits - - -
Bearer certifcate of deposit - - -
1,205,828 93,753,151 154,476,693
Other liabilities 10 1,772,972 137,848,550 148,599,124
Total liabilities 82,395,114 6,406,220,080 5,066,065,659
Paid up capital - - -
Statutory reserve - - -
Foreign currency gain - - -
Other reserve - - -
Defcit in proft and loss account / Retained
earnings
- - -
Total Shareholders equity - - -
Total liabilities and Shareholders equity 82,395,114 6,406,220,080 5,066,065,659
Annual Report 2013
299
Particulars Notes
2013 2012
USD Taka Taka
OFF-BALANCE SHEET EXPOSURES
Acceptance and endorsements - - 1,006,562
Letters of guarantee 227,296 17,672,245 18,149,544
Irrevocable letters of credit 6,419,799 499,139,380 530,676,369
Bills for collection 10,027,229 779,617,066 801,171,904
Other contingent liabilities - - -
16,674,324 1,296,428,691 1,351,004,379
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 - - -
Liabilities against forward purchase and sale - - -
Other commitments - - -
- - -
Total Off-Balance Sheet exposures including contingent liabilities 16,674,324 1,296,428,691 1,351,004,379
Annual Report 2013
300
Proft and Loss Account for the year ended 31 December 2013
Particulars Notes
2013 2012
USD Taka Taka
Interest income 12 3,043,496 237,699,454 194,204,867
Interest paid on deposits, borrowings, etc. 13 (1,720,011) (134,334,236) (56,150,131)
Net interest 1,323,485 103,365,218 138,054,736
Commission, exchange, brokerage, etc. 14 214,242 16,732,483 22,906,115
Other operating income 15 98,454 7,689,346 6,144,669
Total operating income (A) 1,636,181 127,787,047 167,105,520
Salaries and allowances 16 140,658 10,985,512 12,213,631
Rent, taxes, insurance, electricity, etc. 17 10,956 855,636 988,779
Legal expenses 521 40,662 19,975
Postage, stamp, telecommunication, etc. 18 2,498 195,127 164,596
Stationery, printing, advertisements, etc. 19 3,656 285,516 236,585
Auditors fees - - -
Depreciation and repair of Banks assets 20 8,428 658,226 772,677
Other expenses 21 37,260 2,910,067 2,387,800
Total operating expenses (B) 203,977 15,930,746 16,784,043
Proft / (loss) before provision (C=A-B) 1,432,204 111,856,301 150,321,477
Provision for loans and advances / investments
Specifc provision - - -
General provision - - -
- - -
Provision for diminution in value of investments - - -
Other provision - - -
Total provision (D) - - -
Total proft / (loss) before taxes (C-D) 1,432,204 111,856,301 150,321,477
Provision for taxation
Current tax - - -
Deferred tax - - -
- - -
Net proft / (loss) after taxation 1,432,204 111,856,301 150,321,477
Annual Report 2013
301
Cash Flow Statement for the year ended 31 December 2013
Particulars
2013 2012
USD Taka Taka
Interest receipts in cash 3,043,496 237,699,454 194,204,867
Interest payments (1,720,011) (134,334,236) (56,150,131)
Fees and commission receipts in cash 214,242 16,732,483 22,906,115
Cash payments to employees (140,658) (10,985,512) (12,213,631)
Cash payments to suppliers (21,509) (1,679,870) (1,587,747)
Receipts from other operating activities 98,454 7,689,346 6,144,669
Payments for other operating activities (33,658) (2,628,704) (2,258,415)
in operating assets and liabilities 1,440,356 112,492,961 151,045,727
Loans and advances to other banks - - -
Loans and advances to customers (16,507,801) (1,283,481,494) (1,509,658,150)
Other assets (70,771) (5,502,433) 14,669
Deposits from other banks / borrowings - - -
Deposits from customers (728,760) (56,661,099) (51,421,947)
Other liabilities (1,520,213) (118,196,586) (281,250,365)
(18,827,545) (1,463,841,612) (1,842,315,793)
Net cash used in operating activities (17,387,189) (1,351,348,651) (1,691,270,066)
Purchase / sale of property, plant and equipment (409) (31,807) (30,025)
Proceeds from sale of property, plant and equipment - - -
Net cash used in investing activities (409) (31,807) (30,025)
Borrowing from Prime Bank Limited, Other Bank
and Bangladesh Bank
19,767,024 1,536,886,081 1,629,764,406
Net cash from fnancing activities 19,767,024 1,536,886,081 1,629,764,406
D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 2,379,426 185,505,623 (61,535,685)
E) Effects of exchange rate changes on cash and cash equivalents - (4,898,407) (9,523,475)
F) Cash and cash equivalents at beginning of the year 2,092,067 167,051,330 238,110,490
G) Cash and cash equivalents at end of the year (D+E+F) 4,471,493 347,658,546 167,051,330
Cash in hand (including foreign currencies) - - -
Balance with Bangladesh Bank and its agent
bank (s) (including foreign currencies)
- - -
Balance with other banks and fnancial institutions 4,471,493 347,658,546 167,051,330
4,471,493 347,658,546 167,051,330
Annual Report 2013
302
1.1 Status of the units
Off-shore Banking Units of Prime Bank Limited, governed under the rules and guidelines of Bangladesh Bank.
The Bank obtained the Off-shore Banking Unit permission vide letter no. BRPD (P) 744 (84)/2001-868 dated 19
March 2001. The Bank commenced the operation of its Off-shore Banking Unit from March 15, 2007. Presently
the Bank has 3 (Three) units in Dhaka, Adamjee EPZ and Chittagong.
1.1.1 Principal activities
The principal activities of the units are to provide all kinds of commercial banking services to its customers
through its Off-shore Banking Units in Bangladesh.
1.2 Signifcant accounting policies and basis of preparation of fnancial statements
1.2.1 Basis of accounting
The Off-shore Banking Units maintain its accounting records in USD from which accounts are prepared according
to the Bank Companies Act 1991, Bangladesh Accounting Standards and other applicable directives issued by
Bangladesh Bank.
1.2.2 Use of estimates and judgments
The preparation of fnancial statements requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
1.2.3 Foreign currency transaction
a) Foreign currencies translation
Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates
of respective transactions as per BAS-21 The Effects of Changes in Foreign Exchange Rates. Foreign currency
balances held in US Dollar are converted into Taka at weighted average rate of inter-bank market as determined
by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other than US Dollar
are converted into equivalent US Dollar at buying rates of New York closing of the previous day and converted
into Taka equivalent.
b) Commitments
Commitments for outstanding forward foreign exchange contracts disclosed in these fnancial statements are
translated at contracted rates. Contingent liabilities / commitments for letter of credit and letter of guarantee
denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on the balance
date.
c) Translation gains and losses
The resulting exchange transaction gains and losses are included in the proft and loss account, except those
arising on the translation of net investment in foreign subsidiary.
1.2.4 Cash fow statement
Cash fow statement has been prepared in accordance with the Bangladesh Accounting Standard-7 Cash Flow
Statement under direct method as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by
the Banking Regulation & Policy Department of Bangladesh Bank.
Annual Report 2013
303
1.2.5 Reporting period
These fnancial statements cover from January 01 to December 31, 2013.
1.3 Assets and basis of their valuation
1.3.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank
and highly liquid fnancial assets which are subject to insignifcant risk of changes in their fair value, and are used
by the unit management for its short-term commitments.
1.3.2 Loans and advances / investments
a) Loans and advances of Off-shore Banking Units are stated in the balance sheet on gross basis.
b) Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest is not
charged on bad and loss loans as per guidelines of Bangladesh Bank. Records of such interest amounts are kept
in separate memorandum accounts.
1.3.3 Fixed assets and depreciation
a) All fxed assets are stated at cost less accumulated depreciation as per BAS-16 Property, Plant and Equipment.
The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the
assets to its working condition for its intended use inclusive of inward freight, duties and non-refundable taxes.
b) Depreciation is charged for the year at the following rates on reducing balance method on all fxed assets.
Category of fxed assets Rate
Offce equipment 20%
c) For additions during the year, depreciation is charged for the remaining days of the year and for disposal
depreciation is charged up to the date of disposal.
1.4 Basis for valuation of liabilities and provisions
1.4.1 Benefts to the employees
The retirement benefts accrued for the employees of the units as on reporting date have been accounted
for in accordance with the provisions of Bangladesh Accounting Standard-19, Employee Beneft. Bases of
enumerating the retirement beneft schemes operated by the Bank are outlined below:
a) Provident fund
Provident fund benefts are given to the permanent staffs of the OBU under the Provident Fund Rules of the Bank.
The Commissioner of Income Tax, Taxes Zone - 5, Dhaka has approved the Provident Fund as a recognized
provident fund within the meaning of section 2(52) read with the provisions of part - B of the First Schedule of
Income Tax Ordinance 1984. The recognition took effect from 07 July 1997. The Fund is operated by a Board
of Trustees consisting six members (03 members from management and other 03 members from the Board
of Directors) of the Bank. All confrmed employees of the Units are contributing 10% of their basic salary as
subscription to the Fund. The units also contribute equal amount of the employees contribution. Interest earned
from the investments is credited to the members account on yearly basis.
b) Gratuity fund
The Bank operates a funded gratuity scheme on Continuing Fund Basis, in respect of which provision is made
annually according to the recommendation of Actuarial which is covering all its permanent eligible employees in
accordance with Bank Service Rules. The Second Secretary (Tax Exemption), National Board of Revenue, Segun
Bagicha, Dhaka has approved the Prime Bank Limited Employees Gratuity Fund as a recognized Gratuity Fund
(Letter Ref no. 08.01.0000.035.02.0016.2013/217, dated 22/07/2013) within the meaning of Para 2,3 & 4, read with
the provisions of Part - C of the First Schedule of Income Tax Ordinance 1984. The recognition took effect from July
22, 2013. The Fund is operated by a Board of Trustees consisting six members (03 members from the Board of
Directors and other 03 members from management) of the Bank. Actuarial valuation of gratuity scheme has been
made to assess the adequacy of the liabilities provided for the scheme as per BAS-19 Employees Beneft.
Annual Report 2013
304
c) Welfare fund
Prime Banks employees welfare fund is subscribed by monthly contribution of the employees. The Bank also
contributes to the Fund from time to time. The Fund has been established to provide coverage in the event of
accidental death or permanent disabilities of the employees. Disbursement from the fund is done as per rules for
employees welfare fund. Welfare fund for Off-shore Banking Units are maintained with Head Offce, Prime Bank
Limited.
d) Incentive bonus
Prime Bank started a incentive bonus scheme for its employees. 10% of net proft after tax is given by the
Board of directors in every year for its employees. These bonus amount distributed among the employees as per
performance. The bonus amount are paid annually, normally frst quarter of every following year and the cost are
accounted for the period to which it relates. Provision for incentive bonus for Off-shore Banking Units is kept with
Head Offce, Prime Bank Limited.
1.4.2 Provision for liabilities
A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result of
a past event and it is probable that an outfow of economic beneft will be required to settle the obligations, in
accordance with the BAS 37 Provisions, Contingent Liabilities and Contingent Assets.
1.5 Revenue recognition
1.5.1 Interest income
In terms of the provisions of the BAS-18 Revenue, the interest income is recognized on accrual basis.
1.5.2 Fees and commission income
Fees and commission income arises on services provided by the units are recognized on a cash receipt basis.
Commission charged to customers on letters of credit and letters of guarantee are credited to income at the time
of effecting the transactions.
1.5.3 Interest paid and other expenses
In terms of the provisions of the BAS - 1 Presentation of Financial Statements interest and other expenses are
recognized on accrual basis.
2 General
a) These fnancial statements are presented in Taka, which is the Banks functional currency. Figures appearing
in these fnancial statements have been rounded off to the nearest Taka.
b) Assets and liabilities & income and expenses have been converted into Taka currency @ US$1 = Taka 77.7500
(closing rate as at 31st December 2013) and Taka.78.1008 (average rate which represents the year end).
Annual Report 2013
305
2013 2012
USD Taka Taka
3 Balance with other banks and fnancial institutions
In Bangladesh (note-3.1) 4,471,493 347,658,546 166,621,451
Outside Bangladesh (note-3.2) - - 429,879
4,471,493 347,658,546 167,051,330
3.1 In Bangladesh 4,471,493 347,658,546 166,621,451
3.2 Outside Bangladesh (Nostro accounts)
Current account
Citibank N.A., New York, USA - - 429,879
4 Loans and advances
i) Loans, cash credits, overdrafts, etc.
Loan (General) 22,640,886 1,760,328,910 1,166,471,360
Hire purchase 9,551,932 742,662,715 989,120,208
Lease fnance - - -
Over Draft 1,238,184 96,268,814 50,728,723
T.R Loan 12,771,478 992,982,397 1,030,802,500
46,202,480 3,592,242,835 3,237,122,791
ii) Bills purchased and discounted (note-5)
Inland bills purchased 18,125,688 1,409,272,204 1,023,436,123
Payable Outside Bangladesh
Foreign bills purchased and discounted 13,483,421 1,048,336,003 634,542,459
31,609,109 2,457,608,207 1,657,978,582
77,811,589 6,049,851,042 4,895,101,373
5 Bills purchased and discounted
Payable in Bangladesh 18,125,688 1,409,272,204 1,023,436,123
Payable outside Bangladesh 13,483,421 1,048,336,003 634,542,459
31,609,109 2,457,608,207 1,657,978,582
6 Fixed assets including premises, furniture and fxtures
Cost
Furniture and fxtures 24,191 1,880,845 2,128,598
Offce equipment and machinery 7,536 585,892 747,842
Vehicle 8,041 625,181 917,238
39,767 3,091,918 3,793,678
7 Other assets
Advance deposits and advance rent 1,339 104,110 106,921
Stationery A/c & Stamp in hand 525 40,792 12,357
Suspense 70,401 5,473,673 -
Due from Head Offce - - -
72,265 5,618,574 119,278
Annual Report 2013
306
2013 2012
USD Taka Taka
8 Borrowings from other banks, fnancial institutions and agents
Bangladesh Bank - - -
Prime Bank Limited 64,416,314 5,008,368,379 4,124,190,642
Other Bank & Financial Institutes 15,000,000 1,166,250,000 638,799,200
79,416,314 6,174,618,379 4,762,989,842
9 Deposits and other accounts
Bank deposits - - -
Customer deposits and other accounts (note-9.1) 1,205,828 93,753,151 154,476,693
1,205,828 93,753,151 154,476,693
9.1 Customer deposits and other accounts
Current deposits 725,943 56,442,058 120,045,666
Foreign currency deposits 181,317 14,097,371 14,478,118
Security deposits receipts - - -
Sundry deposits 298,569 23,213,722 19,952,909
1,205,828 93,753,151 154,476,693
10 Other liabilities
Interest on bills discount - - -
Interest on borrowing - - -
Provision for Expenses/adjusting A/C credit 83,224 6,470,680 1,956,661
Interest Suspense A/c 257,543 20,023,985 -
Due to Head Offce 1,432,204 111,353,884 146,642,463
1,772,972 137,848,550 148,599,124
11 Contingent liabilities
11.1 Acceptance & endorsement
Back to Back bills - - 1,006,562
- - 1,006,562
Less: Margin - - -
- - 1,006,562
Letters of guarantee (Local) 227,296 17,672,245 18,149,544
Letters of guarantee (Foreign) - - -
Foreign counter guarantees - - -
227,296 17,672,245 18,149,544
Less: Margin - - -
227,296 17,672,245 18,149,544
11.3 Irrevocable Letters of credits
Letters of credits 6,419,799 499,139,380 530,676,369
Back to Back letter of credit - - -
6,419,799 499,139,380 530,676,369
Less: Margin - - -
6,419,799 499,139,380 530,676,369
Outward local bills for collection - - -
Outward foreign bills for collection 10,027,229 779,617,066 801,171,904
Inward local bills for collection - - -
Inward foreign bills for collection - - -
10,027,229 779,617,066 801,171,904
Less: Margin - - -
10,027,229 779,617,066 801,171,904
Annual Report 2013
307
2013 2012
USD Taka Taka
12 Interest income
Loan (general) 396,492 30,966,367 27,624,171
SOD 14,359 1,121,445 3,573,801
LTR loan 255,038 19,918,659 54,580,573
Lease fnance - - -
Hire purchase 764,688 59,722,734 80,809,094
Payment against documents - - -
Documentary bills purchased 1,601,992 125,116,889 25,032,251
Others - - -
Interest on loans and advances 3,032,569 236,846,093 191,619,890
Interest on balance with other banks and fnancial institutions - - -
Interest received from FC account 10,926 853,361 2,584,977
10,926 853,361 2,584,977
Total Interest income 3,043,496 237,699,454 194,204,867
13 Interest on deposits, borrowings, etc.
a) Interest paid on deposits - - 55,551
b) Interest paid on local bank accounts 1,720,011 134,334,236 54,737,193
c) Interest paid on Bangladesh Bank - - 1,357,387
1,720,011 134,334,236 56,150,131
14 Commission, exchange and brokerage
Commission on L/Cs 88,719 6,928,998 6,984,070
Commission on L/Gs - - 165,779
Commission on export bills 45,673 3,567,123 5,829,795
Commission on bills purchased - - -
Commission on accepted bills 48,230 3,766,777 4,075,017
Commission on OBC, IBC, etc. 10 781 -
Commission on PO, DD, TT, TC, etc. 470 36,707 88,217
Commission for services rendered to issue of shares - - -
Other commission 31,141 2,432,098 5,763,237
214,242 16,732,483 22,906,115
Exchange gain including gain from FC dealings - - -
Brokerage - - -
214,242 16,732,483 22,906,115
15 Other operating income
Postage charge recovery 2,494 194,783 614,636
Service & other charge - - -
SWIFT charge recovery 13,091 1,022,430 920,173
Miscellaneous earnings 82,869 6,472,133 4,609,860
98,454 7,689,346 6,144,669
16 Salaries and allowances
Basic pay 65,520 5,117,143 5,622,211
Allowances 58,083 4,536,307 5,190,934
Bonus 10,690 834,875 872,251
Units contribution to provident fund 6,366 497,187 528,235
Retirement benefts and gratuity - - -
140,658 10,985,512 12,213,631
Annual Report 2013
308
2013 2012
USD Taka Taka
17 Rent, taxes, insurance, electricity, etc.
Rent, rate and taxes 7,962 621,867 741,506
Insurance 708 55,291 55,856
Power and electricity 2,285 178,478 191,417
10,956 855,636 988,779
18 Postage, stamp, telecommunication, etc.
Postage 1,047 81,735 88,754
Telegram, telex, fax and e-mail 1,183 92,409 54,396
Telephone - offce 269 20,983 20,783
Telephone - residence - - 663
2,498 195,127 164,596
19 Stationery, printing and advertisements, etc.
Offce and security stationery 1,089 85,047 131,044
Computer consumable stationery 1,857 145,036 94,476
Publicity and advertisement 710 55,433 11,065
3,656 285,516 236,585
20 Depreciation and repair of Banks assets
Depreciation
Fixed assets 8,152 636,661 724,250
Leased assets - - -
8,152 636,661 724,250
Repairs
Furniture and fxtures - - -
Offce equipment 109 8,510 32,104
Vehicle - - 4,321
Maintenance 167 13,055 12,002
276 21,565 48,427
8,428 658,226 772,677
21 Other expenses
Security and cleaning 12,254 957,078 855,283
Entertainment 1,288 100,565 125,254
Bank charge & Commission 9,224 720,428 739,180
Car expenses 4,266 333,167 367,085
Books, magazines and newspapers, etc. 72 5,658 9,426
Travel expenses 758 59,186 105,118
Local conveyance, labor, etc. 928 72,476 55,659
Training & internship - - -
Other Professional Charges - - 34,928
Exgratia 45 3,543 3,541
Miscellaneous expenses 8,425 657,965 92,326
37,260 2,910,067 2,387,800
Annual Report 2013
309
Annual Report 2013
310
Auditors Report
to the shareholders of Prime Bank Investment Limited
We have audited the accompanying fnancial statements of Prime Bank Investment Limited (PBIL) which comprise the
fnancial position as at 31 December 2013 and the statement of comprehensive income, statement of changes in equity and
statement of cash fows for the year then ended and a summary of signifcant accounting policies and other explanatory
information disclosed in Notes 1- 42 to the fnancial statements.
Management of PBIL is responsible for the preparation and fair presentation of these fnancial statements in accordance with
Bangladesh Financial Reporting Standards (BFRSs), and for such internal control as management determines is necessary
to enable the preparation of fnancial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these fnancial statements based on our audit. We conducted our audit in
accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the fnancial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial state-
ments. The procedures selected depend on the auditors judgment, including the assessment of the risks of material mis-
statement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entitys preparation and fair presentation of the fnancial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fnancial
statements.
Opinion
In our opinion, the fnancial statements which have been prepared in accordance with Bangladesh Financial Reporting Stan-
dards, give a true and fair view of the state of affairs of the Company as at 31 December 2013 and of its fnancial performance
and cash fows for the year then ended and comply with applicable laws and regulations.
Emphasis of matter
Without qualifying our opinion as above, we draw attention to note # 25 & 26 to the fnancial statements wherein the company
disclosed the reason for not recognizing interest income on margin loan and management fee against most of the loanees
with negative equity.
Other matters:
We also report that:
(a) we have obtained all the material information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verifcation thereof;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from
our examination of those books; and
(c) the Companys fnancial position and fnancial performance dealt with by the report are in agreement with the books
of account.
ACNABIN
Dated, Dhaka
11 February 2014
Annual Report 2013
311
Statement of Financial Position
Amount in Taka
2013 2012
ASSETS
Non-Current Assets
Property, plant and equipment 17,924,016 22,809,876
Investment in Prime Bank Securities Ltd 37,500,000 37,500,000
Preliminary and pre-operational expenses 3,137,486 3,660,401
Total non-current assets (A) 58,561,502 63,970,277
Current Assets
Advances, deposits and prepayments 6,503,380,927 6,408,456,656
Investment in shares 1,066,059,442 1,399,569,819
Dividend receivable 4,468,239 -
Prepaid expenses 56,168 108,045
Advance corporate income tax 15,972,649 29,019,573
Cash and bank balances 87,686,951 90,418,458
Total current assets (B) 7,677,624,376 7,927,572,550
Total Assets (A+B) 7,736,185,878 7,991,542,827
EQUITY AND LIABILITIES
Capital and Reserve
Share capital 3,000,000,000 3,000,000,000
General Reserve 28,002,888 -
Retained earnings 198,499,857 86,488,306
Total Equity (C) 3,226,502,745 3,086,488,306
Non-current Liabilities
Deferred tax liabilities 513,315 1,203,477
Total non-current liabilities (D) 513,315 1,203,477
Current Liabilities
Loan facilities 3,788,934,831 3,933,012,529
Liability for withholding taxes 79,303 46,521
Security deposit receipt 44,100 44,100
Payable for expenses 7,972,785 8,037,006
Provision for investment and clients margin loan 504,502,037 504,502,037
Corporate income tax payable 29,139,720 155,023,509
Accounts payable 601,331 10,248,937
Dividend payable 10 240,000,006
Other payables 177,895,701 52,936,398
Total current liabilities (E) 4,509,169,818 4,903,851,044
Total Equity and Liabilities (C+D+E) 7,736,185,878 7,991,542,827

ACNABIN
Chief Executive Offcer Director Chairman
Dated, Dhaka
11 February 2014
Annual Report 2013
312
Statement of Comprehensive Income
Amount in Taka
2013 2012
INCOME (A)
Interest income 455,964,116 861,132,742
Transaction/settlement fee 45,258,899 59,535,567
Management fee 21,232,690 43,021,047
Gain on sale of shares 252,033,568 5,191,395
Dividend on shares 24,160,056 43,634,197
Underwriting commission 225,000 177,600
Issue management fee 50,000 -
Bank interest on STD accounts 5,601,605 2,630,735
Documentation fees 17,000 7,500
Other income - 125,905
804,542,934 1,015,456,688
EXPENDITURE (B)
Interest expenses 568,950,077 513,953,702
Settlement and other fees 6,260,808 8,737,127
Salary and allowances 31,576,176 34,528,694
Rent, Taxes, Insurance and Electricity 7,649,825 11,274,109
Legal & Professional expenses 125,525 339,295
Postage, Stamp and Telecommunication 1,512,472 1,520,411
Stationery, Printing and Advertisement 932,710 1,472,157
Directors remuneration 59,450 46,200
Auditors fee 115,000 115,000
Depreciation, Amortisation and Repair of assets 6,263,540 6,351,755
Entertainment, Travelling & Conveyance 1,895,940 1,141,992
Security expense 1,991,839 1,944,217
Other expenses 8,694,391 1,118,752
636,027,753 582,543,411
Proft before provision and tax (C=A-B) 168,515,181 432,913,277
Less: Provision for investment and clients margin loan - 104,502,037
Proft before tax 168,515,181 328,411,240
Less: Tax expenses 28,500,742 154,052,683
Current Tax 29,190,904 155,000,467
Deferred Tax (690,162) (947,784)
Proft after tax 140,014,439 174,358,557
Earnings per share 0.47 0.58
ACNABIN
Dated, Dhaka
11 February 2014
Annual Report 2013
313
Statement of Cash Flows
Amount in Taka
2013 2012
A. Cash Flows from Operating Activities:
Cash generated from operations 414,413,028 379,037,404
Advance Income Tax (11,000,000) (150,675,485)
TDS on interim cash dividend - (89,999,999)
Payment for withholding taxes (2,403,750) (2,383,026)
Advance deposit (117,588) (1,000)
Income tax paid (136,261,037) -
Net cash from operating activities 264,630,653 135,977,894
B. Cash Flows from Investing Activities:
Purchase of property, plant and equipment (472,560) (474,932)
Sale of shares during the year 403,555,453 54,926,179
Purchase of shares during the year (70,270) (7,747,640)
Margin Loan recovered 214,625,214 (450,438,577)
Net cash from investing activities 617,637,837 (403,734,970)
C. Cash Flows from Financing Activities:
Proceeds/(Repayments) of loan facilities (645,000,000) 354,920,960
Dividend paid (239,999,996) -
Net cash used in fnancing activities (884,999,996) 354,920,960
D. Net Cash Infow/(Outfow) for the Period (A+B+C) (2,731,507) 87,163,884
Opening cash and bank balances 90,418,458 3,254,574
Closing cash and bank balances 87,686,951 90,418,458

Dated, Dhaka
11 February 2014
Annual Report 2013
314
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Annual Report 2013
316
Auditors Report
to the shareholders of Prime Bank Securities Limited
We have audited the accompanying fnancial statements of Prime Bank Securities Limited (PBSL) which comprise the
fnancial position as at 31 December 2013 and the statement of comprehensive income, statement of changes in equity and
statement of cash fows for the year then ended and a summary of signifcant accounting policies and other explanatory
information disclosed in Notes 1- 29 to the fnancial statements.
Management of PBSL is responsible for the preparation and fair presentation of these fnancial statements in accordance with
Bangladesh Financial Reporting Standards (BFRSs), and for such internal control as management determines is necessary
to enable the preparation of fnancial statements that are free from material misstatement, whether due to fraud or error.
accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements and
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial state-
ments. The procedures selected depend on the auditors judgment, including the assessment of the risks of material mis-
statement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entitys preparation and fair presentation of the fnancial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fnancial
statements.
Opinion
In our opinion, the fnancial statements which have been prepared in accordance with Bangladesh Financial Reporting Stan-
dards, give a true and fair view of the state of affairs of the Company as at 31 December 2013 and of its fnancial performance
and cash fows for the year then ended and comply with applicable laws and regulations.
Emphasis of Matter
Without qualifying our opinion as above, we draw attention to note# 7 to the fnancial statements wherein the company ex-
plains about the recognition and measurement procedure of the investment in DSE and CSE shares.
Other Matters:
We also report that:
(a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit and made due verifcation thereof;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from
our examination of those books; and
(c) the Companys fnancial position and fnancial performance dealt with by the report are in agreement with the books
of account.
Dated, Dhaka
24 February 2014
ACNABIN
Annual Report 2013
317
31.12.2013 31.12.2012
Amount in Taka
SOURCES OF FUNDS
Share capital 750,000,000 750,000,000
Shareholders equity 799,055,787 783,096,718
APPLICATION OF FUNDS
Non-Current Assets (A)
Fixed assets 5,243,558 7,492,430
Intangible assets 912,072 1,217,647
Membership at cost - 664,000,000
Investment in DSE and CSE shares 664,000,000 -
670,155,630 672,710,077
Current Assets (B)
Advances, deposits and prepayments 231,300 313,800
Advance income tax 31,283,680 19,568,539
Investment in securities 81,550,534 77,051,850
Accounts receivable 13,137,599 7,658,920
Loan to customers 398,772,908 404,029,700
Preliminary expenses - 614,121
Cash and cash equivalents 134,764,255 190,740
Other assets 15,500 -
659,755,776 509,427,669
Current Liabilities (C)
Accounts payable 150,740,644 14,933,195
Overdraft facility 338,010,202 352,278,429
Provision for taxation 33,193,298 23,855,427
Deferred tax liabilities 233,839 648,910
Provision for diminution in value of investment in shares 4,169,836 4,221,798
Provision for impairment of margin loan 1,951,214 597,088
Provision for expenses 2,556,586 2,506,181
530,855,619 399,041,028
Net current assets D=(B-C) 128,900,157 110,386,641
Total assets (A+D) 799,055,787 783,096,718

Dated, Dhaka
24 February 2014
ACNABIN
Chief Executive Offcer
Chairman
Director
Annual Report 2013
318
For the year ended 31 December 2013
2013 2012
Amount in Taka
Operating Income
Revenue from brokerage commission 31,572,380 52,419,765
Interest income 67,578,007 58,355,301
Capital gain from investment in shares 2,868,559 8,850,564
Dividend income 1,430,440 944,511
Other operating income 569,922 859,572
Total operating income (A) 104,019,308 121,429,712
Operating expenses 24,731,443 23,518,667
Financial expenses 48,648,446 42,469,849
Direct expenses 4,455,387 7,341,905
Total operating expenses (B) 77,835,275 73,330,421
Operating proft before provision C=(A-B) 26,184,033 48,099,291
Less: Provision for diminution in value of investment in shares (51,962) 3,232,978
Provision for impairment of margin loan 1,354,126 597,088
Total provision (D) 1,302,164 3,830,066
Operating proft before taxation E=(C-D) 24,881,869 44,269,225
Current tax 9,337,871 15,685,310
Deferred tax (415,071) (16,975)
Total provision for tax (F) 8,922,800 15,668,336
Net proft after tax [G=E-F] 15,959,069 28,600,890
Earnings per share 0.21 0.38
Dated, Dhaka
24 February 2014
ACNABIN
Chairman
Director
Annual Report 2013
319
Statement of Changes in Equity
Particulars Share capital Retained earnings Total
Balance as at January 01, 2012 750,000,000 4,495,828 754,495,828
Proft for the year 2012 - 28,600,890 28,600,890
Balance as at December 31, 2012 750,000,000 33,096,718 783,096,718
Balance as at January 01, 2013 750,000,000 33,096,718 783,096,718
Proft for the year 2013 - 15,959,069 15,959,069
Balance as at December 31, 2013 750,000,000 49,055,787 799,055,787
Dated, Dhaka
24 February 2014
Chairman
Director
Annual Report 2013
320
2013 2012
Amount in Taka
A Cash fow from operating activities
Net proft during the year 15,959,069 28,600,890
Add: Amount considered as non-cash items
Depreciation & amortization charged 2,607,827 2,503,407
Write off of preliminary expenses 614,121 614,122
Dividend receipts (969,400) (650,111)
Provision for diminuation in value of investment (51,962) 3,232,978
Provision for negative equity under margin loan 1,354,126 597,088
3,554,712 6,297,484
Changes in working capital
(Increase)/decrease in advances, deposits and prepayments 82,500 (82,500)
(Increase)/decrease in advance income tax (11,715,141) (11,425,188)
(Increase)/decrease in investments in securities (4,498,684) (44,578,873)
(Increase)/decrease in accounts receivable (5,478,679) 20,121,360
(Increase)/decrease in loans to customers 5,256,792 (211,008,590)
(Increase)/decrease in deferred tax (415,071) (16,975)
Increase/(decrease) in current tax 9,337,871 15,685,310
Increase/(decrease) in provision for expenses 50,405 1,106,830
Increase/(decrease) in accounts payable 135,807,449 (25,916,694)
Increase/(decrease) in secured overdraft (14,268,227) 217,025,232
(Increase)/decrease in other assets (15,500) -
114,143,715 (39,090,088)
Net cash fows from operating activities 133,657,495 (4,191,714)
B Cash fow from investing activities
Fixed assets acquisition (53,380) (412,490)
Intangible assets acquisition - (658,600)
Net cash fows from investing activities (53,380) (1,071,090)
C Cash fows from fnancing activities
Issue of share capital - -
Dividend receipts 969,400 650,111
Dividend paid - -
Net cash from fnancing activities 969,400 650,111
D Net cash increase / (decrease) 134,573,515 (4,612,693)
E Cash and cash equivalents at the beginning of the year 190,740 4,803,433
F Cash and cash equivalents at the end of the year 134,764,255 190,740
Cash in hand 7,011 4,895
Cash at Bank 134,757,244 185,845
134,764,255 190,740

Dated, Dhaka
24 February 2014
Chairman
Director
Annual Report 2013
322
Independent Auditors Report
to the Member of Prime Exchange Co. Pte. Ltd.
Report on the Financial Statements
We have audited the accompanying fnancial statements of Prime Exchange Co. Pte. Ltd. (the Company), which comprise
the statement of fnancial position as at 31 December 2013, and the statement of comprehensive income, statement of
changes in equity and statement of cash fows for the fnancial year then ended, and a summary of signifcant accounting
policies and other explanatory information.
Management is responsible for the preparation of fnancial statements that give a true and fair view in accordance with the
provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards, and for
devising and maintaining a system of internal accounting controls suffcient to provide a reasonable assurance that assets
are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are
recorded as necessary to permit the preparation of true and fair proft and loss account and balance sheet and to maintain
accountability of assets.
accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial
statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material
misstatement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation of the fnancial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the fnancial statements.
Opinion
In our opinion, the fnancial statements are properly drawn up in accordance with the provisions of the Act and Singapore
Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Company as at 31 December 2013
and of the results, changes in equity and cash fows of the Company for the fnancial year ended on that date.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in
accordance with the provisions of the Act.
C.C. YANG & CO.
PUBLIC ACCOUNTANTS AND
CHARTERED ACCOUNTANTS
SINGAPORE
27 January, 2014
30 January 2013
Annual Report 2013
323
((Expressed in Singapore Dollars)
2 0 1 3 2 0 1 2
$ $
Commission Income 627,720 560,416
Other Income 16,251 5,120
Employee Benefts Expense (341,600) (305,034)
Depreciation (59,440) (30,249)
Foreign Currency Gains 276,247 259,663
Other Expenses (419,383) (348,080)
Proft Before Income Tax 99,795 141,836
Income Tax Expense (5,440) (13,401)
Net Proft for the Year 94,355 128,435
Other Comprehensive Income
Other Comprehensive Income, Net of Tax - -
Total Comprehensive Income $ 94,355 $ 128,435
Annual Report 2013
324
(Expressed in Singapore Dollars)
2 0 1 3 2 0 1 2
$ $
ASSETS
Non-Current Assets
Property, Plant and Equipment 100,324 78,104
Total Non-Current Assets 100,324 78,104
Current Assets
Other Receivables 69,990 83,434
Prepayments 8,050 7,315
Cash and Bank Balances 874,745 571,851
Fixed Deposits - 151,467
Total Current Assets 952,785 814,067
Total Assets $ 1,053,109 $ 892,171
EQUITY AND LIABILITIES
Equity
Share Capital 250,000 250,000
Retained Earnings 422,022 469,778
Total Equity 672,022 719,778
Non-Current Liabilities
Deferred Tax Liabilities 9,728 6,615
Total Non-Current Liabilities 9,728 6,615
Current Liabilities
Trade and Other Payables 367,066 156,312
Tax Payable 4,293 9,466
Total Current Liabilities 371,359 165,778
Total Equity and Liabilities $ 1,053,109 $ 892,171
Annual Report 2013
325
Statement of Changes In Equity
(Expressed in Singapore Dollars)
Total
Share
Capital
Retained
Earnings
$ $ $
Balance at 1.1.2013 719,778 250,000 469,778
Distributions to Owner
Dividends (142,111) - (142,111)
Total Distributions to Owner (142,111) - (142,111)
Total Comprehensive
Income for the Year - 2013 94,355 - 94,355
Balance at 31.12.2013 $ 672,022 $ 250,000 $ 422,022
Balance at 1.1.2012 591,343 250,000 341,343
Total Comprehensive
Income for the Year - 2012 128,435 - 128,435
Balance at 31.12.2012 $ 719,778 $ 250,000 $ 469,778
Annual Report 2013
326
Note
2 0 1 3 2 0 1 2
$ $
Cash Flows From Operating Activities
Proft Before Income Tax 99,795 141,836
Adjustments For:
Depreciation 59,440 30,249
Interest Income - (120)
Operating Proft Before Working
Capital Changes 159,235 171,965
Increase in
Other Receivables (232) (35,750)
Prepayments (735) (2,065)
Increase (Decrease) in
Trade and Other Payables 210,754 (22,244)
Cash Flows Generated From Operations 369,022 111,906
Income Tax Paid (7,500) (522)
Interest Received - 114
Net Cash Flows From Operating Activities 361,522 111,498
Cash Flows From Investing Activities
Purchase of Property, Plant and Equipment (81,660) (66,735)
Net Cash Flows Used In Investing Activities (81,660) (66,735)
Cash Flows From Financing Activities
Dividends Paid On Ordinary Shares (142,111) -
Decrease (Increase) in Amount Due From
Holding Company 13,676 (13,676)
Net Cash Flows Used In Financing Activities (128,435) (13,676)
Net Increase in
Cash and Cash Equivalents 151,427 31,087
Cash and Cash Equivalents
at Beginning of Year 723,318 692,231
Cash and Cash Equivalents at End of Year $ 874,745 $ 723,318
Annual Report 2013
328
to the Members of PBL Exchange (UK) Limited
We have audited the fnancial statements of PBL EXCHANGE (UK) LIMITED for the year ended 31 December 2013 set out
on pages 5 to 12. The fnancial reporting framework that has been applied in their preparation is applicable law and United
Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the companys members, as a body, in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might state to the companys members those matters we are
required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company and the companys members as a body, for our audit work,
for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors Responsibilities Statement set out on pages 1 - 2, the directors are responsible for the
preparation of the fnancial statements and for being satisfed that they give a true and fair view. Our responsibility is to audit
the fnancial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Boards Ethical Standards for Auditors.
Scope of the audit of the fnancial statements
An audit involves obtaining evidence about the amounts and disclosures in the fnancial statements suffcient to give
reasonable assurance that the fnancial statements are free from material misstatement, whether caused by fraud or error.
This includes an assessment of: whether the accounting policies are appropriate to the companys circumstances and have
been consistently applied and adequately disclosed; the reasonableness of signifcant accounting estimates made by the
directors; and the overall presentation of the fnancial statements.
Opinion on fnancial statements
In our opinion the fnancial statements:
- give a true and fair view of the state of the companys affairs as at 31 December 2013 and of its loss for
the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors Report for the fnancial year for which the fnancial statements are
prepared is consistent with the fnancial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if,
in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or
- the fnancial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors remuneration specifed by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the fnancial statements and the directors report in accordance
with the small companies regime.
Mrs. Seema Siddiqui (Senior Statutory Auditor)
for and on behalf of Reddy Siddiqui & Kabani
Statutory Auditor
26 January 2014
Park View
183-189 The Vale Acton
London
W3 7RW
Annual Report 2013
329
2 0 1 3 2 0 1 2

Turnover 330,858 265,590
Administrative expenses (364,551) (381,378)
Operating loss (33,693) (115,788)
Interest payable and similar charges (4) -
Loss on ordinary activities before taxation (33,697) (115,788)
Tax on loss on ordinary activities - -
Loss for the year (33,697) (115,788)
The proft and loss account has been prepared on the basis that all operations are continuing operations
There are on recognised gains and losses other than those passing through the proft and loss account.
Annual Report 2013
330
Balance Sheet
2013 2012

Fixed assets
Tangible assets 132,303 146,209
Current assets
Debtors - 15,000
Cash at bank and in hand 283,684 188,503
283,684 203,503
Creditors: amounts falling due within one year (302,435) (202,463)
Net current (liabilities)/assets (18,751) 1,040
Total assets less current liabilities
113,552 147,249
Capital and reserves
Called up share capital 500,000 500,000
Proft and loss account (386,448) (352,751)
Shareholders funds 113,552 147,249
These fnancial statements have been prepared in accordance with the provisions applicable to companies subject to the
small companies regime within Part 15 of the Companies Act 2006.
Approved by the Board and authorised for issue on 26 January, 2014
Md. Ehsan Khasru
Driector
Md. Shirajul Islam Mollah
Driector
Annual Report 2013
331
Cash Flow Statement
2013 2012

Net cash (outfow)/infow from operating activities (255,807) 80,382
Returns on investments and servicing of fnance
Interest paid (4) -
Net cash outfow for returns on investments and
servicing of fnance (4) -
Capital expenditure
Payments to acquire tangible assetes - (27,008)
Net cash outfow for capital expenditure - (27,008)
Net cash (outfow)infow before management of liquid
resources and fnancing
(255,811) 53,374
Financing
Issue of ordinary share capital - 50,000
Issue of shares - 50,000
Decrease in debt - -
Net cash (outfow)/infow from fnancing - 50,000
(Decrease)/increase in cash in the year (255,811) 103,374
Annual Report 2013
334
to the Shareholders of PBL Finance (Hong Kong) Limited
(Incorporated in Hong Kong with limited liability)
We have audited the fnancial statements of PBL Finance (Hong Kong) Limited (the Company ) set out on pages 5 to
16, which comprise the statement of fnancial position as at 31st December, 2013, and statement of income and retained
earnings and statement of cash fows for the year then ended, and a summary of signifcant accounting policies and other
explanatory information.
Directors Responsibility for the Financial Statements
The directors are responsible for the preparation of fnancial statements that give a true and fair view in accordance with the
Hong Kong Financial Reporting Standard for Private Entities issued by the Hong Kong Institute of Certifed Public Accountants
and the Hong Kong Companies Ordinance, and for such internal control as the directors determine is necessary to enable the
preparation of fnancial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these fnancial statements based on our audit. Our report is made solely to you,
as a body, in accordance with Section 141 of the Hong Kong Companies Ordinance, and for no other purpose. We do not
assume responsibility toward or accept liability to any other person for the contents of this report.
We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certifed
Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the fnancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material
misstatement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation of fnancial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the
fnancial statements.
Opinion
In our opinion, the fnancial statements give a true and fair view of the state of the Companys affairs as at 31st December,
2013, and of its proft and cash fows for the year then ended in accordance with the Hong Kong Financial Reporting Standard
for Private Entities and have been properly prepared in accordance with the Hong Kong Companies Ordinance.
T. O. Yip & Co. Limited
Certifed Public Accountants (Practising)
Yip Tak On, George
Practising Certifcate Number : P00301
Date : 27 January 2014

Annual Report 2013
335
Statement of Income and Retained Earnings
for fhe year ended 31st December, 2013
2 0 1 3 2 0 1 2
HK$ HK$
Interest income 8,012,647 6,407,656
Interest expenses (2,879,048) (2,097,317)
Net interest income 5,133,599 4,310,339
Other operating income 4,457,709 3,556,575
Total operating income 9,591,308 7,866,914
Staff costs (2,304,613) (1,863,731)
Depreciation (104,396) (28,030)
Other operating expenses (1,158,499) (809,311)
Total operating expenses (3,567,508) (2,701,072)
Proft before taxation 6,023,800 5,165,842
Income tax expense (986,273) (845,043)
Proft for the year 5,037,527 4,320,799
Retained earnings at start of year 4,635,624 314,825
Dividends (4,635,624) -
Retained earnings at end of year 5,037,527 4,635,624
Annual Report 2013
336
as at 31st December, 2013
2 0 1 3 2 0 1 2
HK$ HK$
Non-current assets
Property, plant and equipment 286,175 93,620
Current assets
Discounted bills receivable 241,716,631 118,242,546
Deposits, prepayments and other receivables 323,572 168,835
243,545,183 119,592,637
Current liabilities
Accrued liabilities and other payables 2,012,001 1,022,952
Amount due to ultimate holding company 233,118,600 110,190,600
Income tax payable 163,230 905,081
235,293,831 112,118,633
Net current assets 8,251,352 7,474,004
8,537,527 7,567,624
Equity
Share capital 3,500,000 2,932,000
8,537,527 7,567,624
The fnancial statements were approved and authorised for issue on 27 January 2014
Md. Ehsan Khasru
Driector
Driector
Annual Report 2013
337
for the year ended 31st December, 2013
2 0 1 3 2 0 1 2
HK$ HK$
Operating activities
Proft before taxation 6,023,800 5,165,842
Adjustments for :
Property, plant and equipment written off 4,012 -
Depreciation 104,396 28,030
Operating proft before changes in working capital 6,132,208 5,193,872
Increase in discounted bills receivable (123,474,085) (63,562,045)
Increase in deposits, prepayments and other receivables (154,737) (59,635)
Increase in accrued liabilities and other payables 989,049 747,966
Increase in amount due to ultimate holding company 122,928,000 56,782,440
Net cash generated from/(used in) operation 6,420,435 (897,402)
Tax paid (1,728,124) -
Net cash generated from/(used in) operating activities 4,692,311 (897,402)
Investing activities
Purchase of property, plant and equipment (300,963) (72,874)
Net cash used in investing activities (300,963) (72,874)
Financing activities
Issue of shares 568,000 702,000
Dividend paid to equity shareholders of the Company (4,635,624) -
Cash (used in)/generated from fnancing activities (4,067,624) 702,000
Net increase/(decrease) in cash and cash equivalents 323,724 (268,276)
Cash and cash equivalents at start of year 1,181,256 1,449,532
Cash and cash equivalents at end of year 1,504,980 1,181,256
Analysis of cash and cash equivalents
Observance of Earth Day to create awareness and enhance
Green Financing
Some PBL Activities during 2013
MoU between Prime Bank and Hajj Agencies Association of
Bangladesh (HAAB)
Workshop on Prevention of Money Laundering & Terrorist
Financing in Chittagong.
Launching of Islamic Credit Card
Launching of JCB Cards online acquiring service
FPxJ y mvJU jfj mZr mre
Business alliance, signing of a tripartite agreement among Prime Bank
Ltd., Airtel and Dipon Consultancy Services Ltd.
Inauguration of 133rd branch at Kulaura, Moulvibazar.

Annual Report 2013
338
Launching of Reward Card Customer Loyalty Program
Prime Bank Shariah Supervisory Committee Meeting
Agreement signing for launching Mobile Airtime Recharge
Launching of biometric smart card service Prime Cash
Opening of ATM Booth at Banasree, Dhaka
The Business Conference of Prime Bank
Launch of the Prime Cash Card Services at Prime Bank ATM
Booths
Annual Report 2013
339
Adamjee EPZ Branch
Adamjee EPZ , Holding # 4 Siddirganj,
Narayanganj
Phone: (02) 7692025-26, 7692024
Email: pbladamjee@primebank.com.bd
Fax: (02) 7692027
Swift: PRBLBDDHAEZ
Asad Gate Branch
Family World Tower, 2/6, Sir Sayed Road,
Ward # 42, Mohammadpur (Mirpur Road),
Dhaka
Phone: (02) 9125400,8142106,8142134
Email: pblasadgate@primebank.com.bd
Fax: (02) 9122640
Ashulia Branch
Sherif Mansion (1st Floor), Diakhali,
Jamgora Bazar
Ashulia, Savar, Dhaka
Phone: (02) 7788290, 7788326, 7788325
Email: pblasulia@primebank.com.bd
Fax: (02) 7788291
Banani Branch
House # 62, Block # E, Kemal Ataturk
Avenue, Banani, Dhaka-1213
Phone: (02) 8815754, 9889868
Email: pblbanani@primebank.com.bd
Fax: 02-8853616
Swift: PRBLBDDH020
Banasree Branch
Arcadia (Ground Floor and 1st Floor), Plot
No.-14, Block No.-C, Main Road,
Banasree, Dhaka.
Phone: (02) 8399548, 8399591
Email: pblbanasree@primebank.com.bd
Fax: (02) 8399547
Bangshal Branch
43/44 Malitola, North South Road,
Bangshal, Dhaka-1100
Phone: (02) 9561501, 7123480, 7113310
Email: pblbangshal@primebank.com.bd
Fax: 7175185
Swift: PRBLBDDH026
Baridhara Branch
Concord I-K Tower (1st Floor) Plot# 02,
Block# CEN(A) North Avenue, Gulshan-2
Dhaka-1212 Phone: (02) 9850376, (02)
9850392, 01730781181 (HOB) Email:
pblbaridhara@primebank.com.bd Fax:
(02) 9850384
Bashabo Branch
Shapnil (2nd & 3rd Floor), 60-61 South
Bashabo, Dhaka Phone: (02) 7219201,
Direct: (02) 7219206 Email:
pblbashabo@primebank.com.bd Fax:
(02) 7219205
Bashundhara Branch
Baitul Aman Tower (1st Floor),
Boshundhara Project, Block-B, Plot# 236,
P.S-Cantonment, Dhaka
Phone: PABX : (02) 8845214, 8845213,
Direct : (02) 8845215
Email:pblbasundhara@primebank.com.bd
Fax: (02) 8845214
Gulshan Branch
Plot # 01, Block # CEN(H), Road # 109,
Gulshan Avenue
Dhaka-1212
Phone: (02) 9886171, 8815885
Email: pblgulshan@primebank.com.bd
Fax: 02-9884977
Swift: PRBLBDDH016
Hemayetpur Branch
Madhu Bhaban, Singair Road,
Hemayetpur, Savar, Dhaka.
Phone: (02) 7742096, 01730781154 (HOB)
Email:pblhemayetpur@primebank.com.bd
Fax: (02) 7742096
IBB Dilkusha Branch
19, Dilkusha C/A, Dhaka -1000.
Phone: (02) 9587494, 9577582, 9576414
Email: pbldilkusha@primebank.com.bd
Fax: 02-9567228
Swift: PRBLBDDH005
IBB Mirpur Branch
Mamoni Tower, 1244, East Monipur,
Begum Rokeya Sarani, Mirpur,
Dhaka-1216
Phone: (02) 8057681-2,8058371
Email: pblibbmirpur@primebank.com.bd
Fax: 88-02-8075441
Ibrahimpur Branch
Sumona Sahadat Center, 80, Ibrahimpur,
Kafrul, Dhaka-1206
Phone: Direct: 02-8872557, PABX:
02-8872503, 8872423
Email: pblibrahimpur@primebank.com.bd
Fax: 02-8872501
Jamalpur Branch
Jibon Mansion, Station Road, Jamalpur.
Phone: (0981) 65360, (0981) 65 361
Email: pbljamalpur@primebank.com.bd
Fax: (0981) 65362
Jatrabari Branch
Nur Tower, 76/Ga, Bibir Bagicha, North
Jatrabari, Dhaka-1204
Phone: (02) 7552158, (02) 7552178
Email: pbljatrabari@primebank.com.bd
Fax: (02) 7552169
Joydevpur Chowrasta Branch
Shapla Mansion (1st Floor), Joydevpur
Chowrasta, Chandana Dhaka-Tangail
Road, Gazipur
Phone: (02) 9264135, 9264103
Email: pbljoydevpur@primebank.com.bd
Fax: 88-02-9264097
Joypara Branch
Azahar Ali Mozahar Ali Shopping
Complex (1st floor) Joypara, Lotakhola
Dohar, Dhaka.
Phone: 02-7768055, 02-7768053,
02-7768054
Email: pbljoypara@primebank.com.bd
Fax: 02-7768052
Kawran Bazar Branch
54, Kawran Bazar C/A, Dhaka-1215
Phone: (02) 8157288, 9124296-7
Email: pblkawran@primebank.com.bd
Fax: 88-02-9129004
Swift: PRBLBDDH010
Bhairab Bazar Branch
181, Tin Potty Road, Bhairab
Pawrashava, Bhairab, Kishoregonj
Phone: PABX : 02-9470723, 9470771
Email: pblbhairab@primebank.com.bd
Fax: 02-9471755
Bijoy Nagar Branch
Akram Tower (1st Floor), 15/5, Bijoy
Nagar (Sayed Nazrul Islam Saroni),
Dhaka-1000
Phone: (02) 9335762, 9335732, 9334123
Email: pblbijoy@primebank.com.bd
Fax: 02-9332639
Boalmari Branch
Azahar Tower, Holding 503, Station Road,
Ward # 03, Boalmari, Faridpur
Phone: 06324-56132, 06324-56130
Email: pblboalmari@primebank.com.bd
Fax: 06324-56139
Damudya Branch
Holding # 264 (1st & 2nd Floor), Ward #
8, Sonali Bank Road
Damudya, Shariatpur
Phone: (06023) 56396
Email: pbldamudya@primebank.com.bd
Fax: (06023) 56390
Dhanmondi Branch
Momtaz Plaza (1st Floor), House No # 7,
Road No # 4 Dhanmondi R/A, Dhaka
Phone: (02) 8622304, 9662704
Email: pbldhanmondi@primebank.com.bd
Fax: (02) 9662705
Elephant Road Branch
Ananta Plaza, 136, Elephant Road,
Dhaka-1205
Phone: (02) 9662776-7, 9673783
Email: pblelephant@primebank.com.bd
Fax: 88-02-8622591
Swift: PRBLBDDH011
Faridpur Branch
KMA Arcadia (1st Floor), Holding #
60/116(A), Moirapotty, Faridpur
Phone: (0631) 65133
Email: pblfaridpur@primebank.com.bd
Fax: (0631) 65128
Foreign Exchange Branch
Al-Haj Mansion, 82, Motijheel C/A, Dhaka
-1000
Phone: (02) 9551682
Direct: (02) 7161146
Email: pblforex@primebank.com.bd
Fax: 88-02-9553078
Swift: PRBLBDDH019
Ganakbari Branch
Somsher Plaza (1st Floor), Balibhadra
Bazar Bus Stand, Dhamsona, Ganakbari,
Savar, Dhaka-1340
Phone: (02) 7789379, 7788100
Email: pblganakbari@primebank.com.bd
Fax: 02-7789378
Swift: PRBLBDDH014
Gareb-E-Newaz Avenue Branch
Gareb-E-Newaz Branch Holding # 1,
Gareb-E-Newaz Avenue
Sector # 11, Uttara R/A, Dhaka
Phone: (02) 8950997, 8991781
Email: pblgarib@primebank.com.bd
Fax: (02) 8931687
Kishoregonj Branch
Shamsuddin Bhuiyan Plaza, Teripotty,
Kishoregonj
Phone: (0941) 62590, Direct: (0941)
62592
Email: pblkishoregonj@primebank.com.bd
Fax: (0941) 62591
Madhabdi Branch
Plot # 17, Madhabdi Bazar,
Narsingdi-1604
Phone: (06251) 56682
Email: pblmadhabdi@primebank.com.bd
Fax: 88-06257-56683
Mirpur-1 Branch
Rabiul Plaza (1st Floor), Plot #
Shee-1/Kha, Section -1, Mirpur
Dhaka-1216
Phone: (02) 8034126, 8034590
Email: pblmirpur-1@primebank.com.bd
Fax: (02) 8034591
Mirzapur Branch
Rashid Biponi Bhaban, 706, College
Road, Mirzapur, Tangail.
Phone: (09229) 56591
Direct: (09229) 56592
Email: pblmirzapur@primebank.com.bd
Fax: (09229) 56593
Mohakhali Branch
69, Mohakhali C/A, Dhaka-1212
Phone: (02) 9850302, 9882291
Email: pblmohakhali@primebank.com.bd
Fax: 88-02-9886052
Swift: PRBLBDDH007
Motijheel Branch
Adamjee Court Annex Building -2,
119-120, Motijheel C/A, Dhaka-1000
Phone: (02) 7175491-2,9567225, 9562982
Email: pblmotijheel@primebank.com.bd
Fax: 88-02-9567223
Swift: PRBLBDDH001
Mouchak Branch
Manhattan Tower (1st Floor), 83,
Siddheswari Circular Road
Malibagh, Dhaka-1217
Phone: (02)8352831, 9347757
Email: pblmouchak@primebank.com.bd
Fax: 88-02-9338883
Swift: PRBLBDDH013
Moulvi Bazar Branch
77/4, Moulvi Bazar, Dhaka-1100
Phone: (02) 7313407, 7311017
Email: pblmoulvi@primebank.com.bd
Fax: 88-02-7318305
Swift: PRBLBDDH003
Mymensingh Branch
10, Swadeshi Bazar, Mymensingh
Phone: PABX : (091) 52390, Direct : (091)
52391
Email:pblmymensingh@primebank.com.bd
Fax: (091) 52391
Narayanganj Branch
Modern Model Complex, 56, S.M. Maleh
Road, Narayanganj-1400
Phone: (02) 764689,7630150
Email: pblngonj@primebank.com.bd
Fax: 02-7630140
Swift: PRBLBDDH012
Shibpur Branch
Khan Tower (1st Floor), Shibpur Bazar,
Narsingdi
Phone: 06256-75130, 06256-75131
Email: pblshibpur@primebank.com.bd
Fax: 06256-75134
Shimrail Branch
Hazi A Rahman Super Market & Shopping
Tower (1st Floor), Holding # 96, Shimrail
Morr, Chittagong Road
Chowrastha, Shanarpar
Siddirgonj, Narayangonj
Phone: (02) 7691670, 7692912
Email: pblshimrail@primebank.com.bd
Fax: (02) 7691671
Sreenagar Branch
Rahman Complex Sreenagar Bazar
Munshigonj
Phone: 01730781191 (HOB)
Tangail Branch
Holding No: 414-417
Main Road, Tangail
Phone: PABX : (0921) 61248, 61271,
Direct : (0921) 61330
Email: pbltangail@primebank.com.bd
Fax: (0921) 61322
Tejgaon Branch
Shanta Western Tower, Level-02, 186, Bir
Uttam Mir Shawkat Sarak, Dhaka-1208
Phone: 02-8879157-8, 02-8879160
Email: pbltejgaon@primebank.com.bd
Fax: 02-8879156
Tongi Branch
Sena Kalyan Commercial Complex (1st
Floor), Plot # 9, Block #F, Tongi, Gazipur
Phone: (02) 9813811, 9813874
Email: pbltongi@primebank.com.bd
Fax: (02) 9813835
Uttara Branch
Siaam Tower (1st Floor), Plot # 15, Sector
# 03, Dhaka Mymensingh Road, Uttara
Model Town, Dhaka
Phone: (02) 8916233, 8950341-2
Direct : (02) 8950016
Email: pbluttar@primebank.com.bd
Fax: (02) 8924248
Swift: PRBLBDDH021
Wari Branch
Tanin Roseate (1st Floor), 43 Ranking
Street, Wari, Dhaka.
Phone: (02) 9512085, 7118311, 7118169
Email: pblwari@primebank.com.bd
Fax: (02)9512084
Chittagong Division
Agrabad Branch
Chittagong Chamber House, 38 Agrabad
C/A, Chittagong-4100
Phone: (031) 716724-5, 7207018
Email: pblagrabad@primebank.com.bd
Fax: 88-031-718971
Swift: PRBLBDDH015
Ashugonj Branch
Seriya Sayed Tower, Post office Road,
Ashugonj Bazar, Ashugonj, Brahmanbaria
Phone: 08528-74596, 74595
Email: pblashugonj@primebank.com.bd
Fax: (08528)74594
New Eskaton Branch
133, New Eskaton Road
Dhaka - 1000
Phone: (02) 9354044, 9354738, 9359683
Email: pbleskaton@primebank.com.bd
Fax: 88-02-9354826
Off-shore Banking Unit DEPZ
Room No: 75-76, 3rd Floor
Zone Service Building
Dhaka Export Processing Zone
Savar, Dhaka
Tel : +88 02 7788240
Fax: +88 02 7788241
E-mail: obu_depz@primebank.com.bd,
mhossain@primebank.com.bd
SWIFT: PRBLBDDHDEZ
Pallabi Branch
Setaras Dream(1st Floor), Holding No:
1/11 & 1/12, Pallabi
Mirpur, Dhaka
Phone: PABX : (02) 9000559, 9001913,
Direct : (02) 9013629
Email: pblpallabi@primebank.com.bd
Fax: (02) 9001813
Panthapath Branch
Firoz Tower, 152/3-B, Green Road,
Panthapath, Dhaka-1205
Phone: (02) 9142879, 8128100, 8152852
Email: pblpanthapath@primebank.com.bd
Fax: 02-9137887
Pragati Sarani Branch
Facilities Tower, Kha-199/2, Maddhya
Badda, Dhaka
Phone: (02) 9840689, 8816938, 9840685
Email: pblpragati@primebank.com.bd
Fax: 02-8837531
Ring Road Branch
Baitul Aman Tower (1st Floor), Holding No:
840-841, Uttar Adabor, Dhaka
9129093
Email: pblringroad@primebank.com.bd
Fax: (02) 8117010
Satmasjid Road Branch
House # 99, Road # 11/A, Dhanmondi
R/A, Dhaka-1209
Phone: (02) 9122374,8124258, 8153556
Email: pblsatmasjid@primebank.com.bd
Fax: (02) 8121652
Swift: PRBLBDDH023
Savar Branch
KK Plaza (1st floor), Holding # A-91,
Word # 5, Savar Bazar Road, Savar,
Dhaka
Phone: (02) 7744862
Direct: (02) 7744861
Email: pblsavar@primebank.com.bd
Fax: (02) 7744863
SBC Tower Branch
Sadharan Bima Tower (Ground Floor)
37/A, Dilkusha C/A, Dhaka
Phone: (02) 9561221, 9559943
Email: pblsbc@primebank.com.bd
Fax: 88-02-9564189
Swift: PRBLBDDH024
Sirajdikhan Branch
Haji Mostafa Plaza (1st Floor), Dag # 284,
Bazar Road, Serajdikhan, Munshigonj
Phone: 02-7628320, 7628330
Email: pblsirajdikhan@primebank.com.bd
Fax: 02-7744863
Annual Report 2013
340
Branch Network
Dhaka Division
Oxygen More Branch
405 Sekander Center, Chittagong
Cantonment, Oxygen More, Chittagong
Phone: (031) 2583181, 2583180
Email: pbloxygen@primebank.com.bd
Fax: (031) 2583180
Prabartak More Branch
12/12 O.R. Nizam Road, Prabartak More,
Panchlish, Chittagong
Phone: (031) 2553593, 2553591-2
Email: pblprabartak@primebank.com.bd
Fax: (031) 2553594
Raozan Branch
Fazal Tower (1st Floor), Raojan Bus
Stand, Mader Mohal, Chittagong
Phone: (03026) 56214, 56168
Email: pblraozan@primebank.com.bd
Fax: (03026) 56215
Rajshahi Division
Baneswar Branch
Baneswar Bazar Puthia, Rajshahi
Phone: 01755534922
Email: pblbaneswar@primebank.com.bd
Bogra Branch
331/364, Rangpur Road, Borogola,
Bogra-5800
Phone: (051) 78203, 67172
Email: pblbogra@primebank.com.bd
Fax: 051-61142
Swift: PRBLBDDH022
Chapai Nawabganj Branch
Holding No.29 ( First Floor), Islampur,
Daudpur Road, Bara Indira Moor, Chapai
Nawabganj
Phone: (0781) 51125, 51126
Email: pblchapai@primebank.com.bd
Fax: (0781) 51127
Ishwardi Branch
Holding # 1335/982, (1st Floor) Station
Road, Ishwardi Pawrashava, Word # 7,
Ishwardi, Pabna
Phone: (07326) 64435, 64650
Email: pblishwardi@primebank.com.bd
Fax: 07326-64436
Joypurhat Branch
Tahera Complex, 306 Main Road,
Joypurhat
Phone: (0571) 51156, 51157
Email: pbljoypurhat@primebank.com.bd
Fax: (0571) 51158
Mohadebpur Branch
Charmatha Boker More, Bridge Road,
Mohadebpur, Naogaon.
Phone: (07426) 75041, 75088
Email:pblmohadebpur@primebank.com.bd
Fax: 07426-75044
Naogaon Branch
Jagannath Bhaban (2nd & 3rd Floor)
Ward # 4, Holding # 320, Main Road
Bridge-er-More, Naogaon
Phone: (0741) 62150, 62151
Email: pblnaogaon@primebank.com.bd
Fax: 0741-62152
Banshkhali Branch
G.S. Plaza (1st Floor),
Chittagong-Banshkhali Highway,
Banshkhali Pawrashava
Banshkhali, Chittagong
Phone: (0303) 756222
Email: pblbanshkhali@primebank.com.bd
Fax: (0303) 756223
Bhatiary Branch
Khalek Tower (1st & 2nd Floor) Bhatiary
(Uttar Bazar)
Sitakunda, Chittagong
Phone: 031-2781261, 2781263
Email: pblbhatiary@primebank.com.bd
Fax: 031-2781262
Brahmanbaria Branch
1st Floor, K. Das Bhaban K. Das Square,
Brahmanbaria
Phone: 0851-61698, 0851-61699
Email: pblbrahmanbaria@primebank.com.bd
Fax: 0851-58849
Chauddagram Branch
Abdul Goni Shopping Complex (1st Floor),
Chowddgram Bazar, Comilla
Phone: (08020) 56364
Email: pblchauddagram@primebank.com.bd
Fax: (08020) 56362
Chaumuhani Branch
Holding # 180-182 (1st Floor), Feni Road,
Chowmuhani, Begumganj, Noakhali.
Phone: (0321) 54096
Email: pblchaumuhani@primebank.com.bd
Fax: (0321) 56096
Comilla Branch
Holding No: 10/8, Ward#12, Chatpatty
(Gangagonj), Kotowali, Comilla
Phone: (081) 72611, 72612, 72610
Email: pblcomilla@primebank.com.bd
Fax: (081) 72646
Cox's Bazar Branch
Hajera Shopping Center, Holding # 256,
Main Road, Cox's Bazar
Phone: (0341) 51085
Email: pblcox@primebank.com.bd
Fax: (0341) 51084
Dagonbhuiyan Branch
R.B Plaza, 391 Faziler Ghat,
Dagonbhuiyan, Feni
Phone: (03323) 79248, 79249
Email: pbldagonbhuiyan@primebank.com.bd
Fax: (03323) 79250
Fatickchari Branch
Haji Hossain Plaza (1st Floor), College
Road, Bibirhat, Dhurang Union,
Fatickchari, Chittagong
Phone: (03022) 56006
Email: pblfatickchari@primebank.com.bd
Fax: (03022) 56006
Feni Branch
Kazi Center, Holding No: 106, S.S.K.
Road, Feni
Phone: (0331) 63091, 63092, 63093
Email: pblfeni@primebank.com.bd
Fax: (0331) 63092
Hajigonj Branch
Ananda Complex, Holding # 191, Hajiganj
Bazar, Hajiganj,Chandpur
Phone: (08424) 75110, 75111
Email: pblhajiganj@primebank.com.bd
Fax: (08424) 75111
Halishahar Branch
Nandita House (1st & 2nd Floor), Plot No.
# 5/A, Lane # 2, Road # 2, Block # G,
Halishahar Housing Estate, Double
Mooring, Chittagong
Phone: (031) 2512039, 2512064
Email: pblhalishahar@primebank.com.bd
Fax: (031) 2512054
Hathazari Branch
N. Zahur Shopping Center (1st Floor)
Kachari Road
Hathazari, Chittagong
Phone: (031) 2601524, 2601525
Email: pblhathazari@primebank.com.bd
Fax: 88-031-2601526
IBB O. R. Nizam Road Branch
O.R. Nizam Road, Hazrat Garibullah City
Corporation Bhaban (1st Floor), 739/804
CDA Avenue, Bagmoniram, Chittagong
Phone: (031) 639855, 2861437
Email: pblornizam@primebank.com.bd
Fax: 031-2861434
Swift: PRBLBDDH027
IBB Pahartali Branch
B S Plaza, Plot # 305/1390, Abdul Ali Hat,
Sorai Para, Alanker Morr, Pahartali,
Chittagong
Phone: (031) 753143, 2771752
Email: pblpahartali@primebank.com.bd
Fax: (031) 753144
Jubilee Road Branch
Pedrollo Plaza, 5, Jubilee Road,
Chittagong -4000
Phone: (031) 613939, 2850319
Email: pbljubilee@primebank.com.bd
Fax: 031-618689
Swift: PRBLBDDH017
Karnaphuli EPZ Branch
Karnaphuli Export Processing Zone,
North Patenga, Chittagong
Phone: (031) 2502382, 2502381
Email: pblkepz@primebank.com.bd
Fax: (031) 2502383
Khatungonj Branch
142, Chand Mia Lane, Khatungonj,
Chittagong-4000
Phone: (031) 623213-14, 627297
Email: pblkhatunganj@primebank.com.bd
Fax: 031-610848
Swift: PRBLBDDH002
Laldighi East Branch
8, Laldighi East, Chittagong
Phone: (031) 2850771, 2850773
Email: pbllaldighieast@primebank.com.bd
Fax: (031) 2850772
Swift: PRBLBDDH025
Muradpur Branch
Shah Alam Plaza, 129, CDA Avenue,
Muradpur, Chittagong
Phone: 031-2557826, 2557824
Email: pblmuradpur@primebank.com.bd
Fax: 031-2557825
Off-shore Banking Unit CEPZ
Zone Services Building, Ground Floor
West Wing South Block, CEPZ,
Chittagong
Tel: (031) 741341, 01714-116174
Fax: (031) 741330
Khulna Branch
7, Old Jessore Road
Khulna -9100
Phone: (041) 720071, 725100
Email: pblkhulna@primebank.com.bd
Fax: 041-731195
Swift: PRBLBDDH004
Kushtia Branch
Bangabandhu Super Market 2, N S Road,
Kushtia
Phone: (071) 72431, 72432
Email: pblkushtia@primebank.com.bd
Fax: (071) 72430
Satkhira Branch
Islam Plaza, Abul Kashem Road,
Satkhira.
Phone: (0471) 62450, 63007
Email: pblsatkhira@primebank.com.bd
Fax: 0471-63001
Barisal Division
Barisal Branch
37, Hemayet Uddin Road, Barisal - 8200
Phone: (0431) 64011,64012
Email: pblbarisal@primebank.com.bd
Fax: 0431-63712
Swift: PRBLBDDH008
Rangpur Division
Dinajpur Branch
Mazeda Plaza ( 1st Floor), 518/473
Ganashtala, Jail Road, Dinajpur
Phone: (0531) 51289, 51291
Email: pbldinazpur@primebank.com.bd
Fax: (0531) 51296
Rangpur Branch
Shah-Amanat Super Market (1st Floor),
268 Station Road, Jahaj Companier
More, Rangpur.
Phone: (0521) 64119, 64120
Email: pblrangpur@primebank.com.bd
Fax: (0521) 64118
SME Branch
Aganagar SME Branch
Golden Plaza (2nd Floor), Purbo
Aganagar, Keranigonj, Dhaka
Phone: (02) 7763273
Email: smeaganagar@primebank.com.bd
Fax: 88-02-7763273
Bhujpur SME Branch
Macca Shopping Center (1st Floor),
Bhujpur, Fatickchari, Chittagong
Phone: 01713-255771
Email: smebhujpur@primebank.com.bd
Chatkhil SME/Agri Branch
Momota Shopping Center, C&B Road,
Chatkhil , Noakhali
Phone: (03222) 75113
Email: smechatkhil@primebank.com.bd
Fax: 03222- 75119
Natore Branch
Holding # 1052 (1st Floor),
Dhaka-Rajshahi Highway, Natore
Phone: (0771) 67001
Email: pblnatore@primebank.com.bd
Fax: (0771) 67002
Pabna Branch
423/1, Sonapotti Road, Pabna
Phone: (0731) 66426, 66425
Email: pblpabna@primebank.com.bd
Fax: (0731) 66399
Rajshahi Branch
138/144, Shaheb Bazar, Rajshahi-6100
Phone: (0721) 773981, 774582, 771874
Email: pblrajshahi@primebank.com.bd
Fax: 0721-773980
Swift: PRBLBDDH009
Sylhet Division
Barolekha Branch
Hazi Abdul Ali Trade Center, 842,
Barolekha, Moulvibazar
Phone: PABX : (08622) 56519, Direct :
(08622) 56520
Email: pblbaralekha@primebank.com.bd
Fax: (08622) 56522
Beanibazar Branch
Zaman Plaza (1st Floor), Beanibazar,
Sylhet Phone: (08223) 56139, 56140
Email: pblbeanibazar@primebank.com.bd
Fax: (08223) 56141
Biswanath Branch
Al-Burak Shopping Center (1st Floor),
Biswanath Bazar
Biswanath, Sylhet
Phone: (08244)56017
Email: pblbis@primebank.com.bd
Fax: (08224) 56004
Court Road Branch
Court Road, Moulvi Bazar -3200
Phone: (0861) 53877,53878
Email: pblcourtroad@primebank.com.bd
Fax: 0861-53878
Swift: PRBLBDDH014
Habigonj Branch
Holding # 3794 (1st floor), Commercial
Area, Habiganj, Habiganj Phone: (0831)
62814, 62813 Email:
pblhabiganj@primebank.com.bd Fax:
(0831) 62815
IBB Amberkhana Branch
Nabiba Complex, Amberkhana Airport
Road, Sylhet-3100
Phone: (0821) 717332, 728944
Email: pblamber@primebank.com.bd
Fax: (0821)-717337
Islampur Branch
Century Park. Plot # 1052, Islampur,
Sylhet.
Phone: (0821)761174, 761157
Email: pblislampur@primebank.com.bd
Fax: 0821-761115
Kadamtali Branch
Motin Complex, Fenchuganj, South
Surma (beside Shahzalal Market) Sylhet
Phone: (0821)728910, 841319
Email: pblkadamtali@primebank.com.bd
Fax: 0821-728630
Kulaura Branch
Dakkhin Bazar, Moulvibazar Bus Stand,
Kulaura, Sylhet
Phone: (08624)57081, 57082
Email: pblkulaura@primebank.com.bd
Fax: 08624-57080
Nabigonj Branch
Anwara Bipan (1st Floor) Holding # 322,
Osmani Road
Nabigonj, Habigonj
Phone: (08328) 56025, 56029
Email: pblnabiganj@primebank.com.bd
Fax: (08328) 56015
Sreemangal Branch
Saptadinga Complex (1st Floor) Ward #
9, Holding No # 145 Moulvibazar Road,
Sreemangal, Moulvibazar
Phone: (08626) 71181, 71183
Email: pblsreemangal@primebank.com.bd
Fax: 08626-71182
Subid Bazar Branch
Corner View (1st Floor, west side), Plot
No: 488(SA),2155(RS), Sylhet
Phone: (0821) 727688, 727629
Email: pblsubid@primebank.com.bd
Fax: (0821) 2830942
Sunamganj Branch
Subakth Raja Complex, 414 Old Station
Road, Sunamganj
Phone: (0871) 62516, 62515
Email: pblsunamganj@primebank.com.bd
Fax: (0871) 62514
Sylhet Branch
Laldighirpar, Sylhet-3100
Phone: (0821) 721127, 710208
Email: pblsylhet@primebank.com.bd
Fax: 0821-710673
Swift: PRBLBDDH006
Tajpur Branch
Maya View Super Market (1st Floor),
Tajpur, Osmaninagar
Balaganj, Sylhet
Phone: (08242) 56211, 56210
Email: pbltajpur@primebank.com.bd
Fax: (08242) 56212
Upashahar Branch
Alif Center (1st Floor - Front Portion),
Subhanighat, Upashahar, Sylhet
Phone: (0821) 811366, 723524
Email: pblupashahar@primebank.com.bd
Fax: (0821) 710094
Khulna Division
Daulatpur Branch
Akankha Tower 454, Khan-A-Sabur Road,
Daulatpur, Khulna
Phone: 041-2850877, 2850876
Email: pbldaulatpur@primebank.com.bd
Fax: 041-2850875
Jessore Branch
47, Netaji Subhas Chandra Road,
Jessore Town, Jessore-7400
Phone: (0421) 68815, 68814
Email: pbljessore@primebank.com.bd
Fax: 0421-68816
Swift: PRBLBDDH018
Companygonj SME Branch
Mother Shoping Complex, 5, West
Nabipur Nabinagar Road, Muradnagar,
Companygonj, Comilla
Phone: (0265) 9090
Email: smecompanygonj@primebank.com.bd
Fax: (0265) 9090
Dholaikhal SME Branch
Holding# 9/1, Ward# 74, Goal Ghat Lane,
Dholaikhal, Sutrapur, Dhaka
Phone: 029571896
Email: smedholaikhal@primebank.com.bd
Fax: 02-9571896
Jhikorgacha SME/Agri Branch
Zaman Market (ist Floor), Holding No.
522, Jhikorgacha, Jessore.
Phone: (04225) 71780
Email: smejhikorgacha@primebank.com.bd
Fax: 04225- 71788
Khawaja Nagar SME /Agri Branch
Subarna Rice Mill
Khawjanagar, Kushtia
Phone: 01730-373919
Email: smekhajanagar@primebank.com.bd
Madhabpur SME Branch
Katiara, Madhabpur, Habigonj
Phone: (08327) 56327
Email: smemadhabpur@primebank.com.bd
Fax: 08327-56343
Madunaghat SME/Agri Branch
Mabia Emporium, Madunaghat Bazar,
Phone: (031)2573206
Email: smemadunaghat@primebank.com.bd
Fax: 031-2573205
Narsingdi SME Branch
B.S. Plaza (1st Floor), 9, North
Kandapara Bazir More, Narsinghdi
Phone: (02) 9463343
Email: smenarsingdi@primebank.com.bd
Fax: 02-9463343
Posta SME Branch
Holding#90, Ward#62, Water Works
Road, Posta, Lalbag, Dhaka
Phone: (02) 9571896
Email: smeposta@primebank.com.bd
Fax: (02) 9571896
Raipur SME/Agri Branch
Queen Complex, Holding #514/15, Main
Road, Raipur, Laxmipur
Phone: (03822) 56396
Email: smeraipur@primebank.com.bd
Fax: 03822-56397
Sherpur SME Branch
819, Municipal Road, Habib Mansion (1st
Floor), Narayanpur
Sadar, Sherpur
Phone: (0931) 62176
Email: smesherpur@primebank.com.bd
Fax: 0931-62175
Sonargaon SME Branch
Madina Tower (1st Floor), Habibpur,
Sonargaon, Narayangonj
Phone: (02) 7656359
Email: smesonargaon@primebank.com.bd
Fax: 02-7656362
Syedpur SME Branch
Radish Complex, Sayedpur, Jagnnathpur,
Sunamganj
Phone: 01713-255776
Email: smesyedpur@primebank.com.bd
Takerhat SME Branch
Nasirpur, Rajoir, Madaripur
Phone: 01713-255772
Email: smetakerhat@primebank.com.bd
Thakurgaon SME Branch
Chowdhury Complex (1st Floor),
Nishchintapur, Sadar, Thakurgaon
Phone: (0561) 52295
Email: smethakurgaon@primebank.com.bd
Fax: 0561-52538
Subsidiary Companies
Prime Exchange Co. Pte Ltd
(Singapore)
2A Desker Road, (2nd Floor) Singapore
Tel : 65-6392 4996, 0065- 6392 4829,
0065-91963012, E-mail:
primex@singnet.com.sg
Fax : 65-6392 4838
Jurong East Branch
Block 134, Jurong Gateway
Road # 1-305, Singapore-600134
Tel : 0065-68994647, 0065-96432498
Fax : 0065-65617559
E-mail: prime.jurongeast@yahoo.com
PBL Exchange ( UK ) Limited,UK
London Branch
16 Brick Lane London, E1 6RF
Tel (Off) : 02076500005, 07939227610
E-mail: pbl.ex.uk@primebank.com.bd
Birmingham Branch
PBL Exchange (UK) Limited,UK
493 Coventry Road,
Birmingham, B10 0JS
Tel (Off) : 01217735553, 07956675296
Oldham Branch, Manchester
104 Featherstall Road, North Oldham, Ol9 6BX
Tel (Off) : 01616522444, 07956675297
Suit 1407, 14/F, Admiralty Centre, Tower -1,
18 Harcourt Road, Hong Kong
Tel (Off) : 852-2529- 2710, 852-2529- 2719,
852-6274-2996
E-mail: masud@pblfinancehk.com
Prime Bank Investment Ltd.
Tel (Off) : 02-7174716, 02-9555674
Cell : 01819-219496
E-mail:mortuza@primebank.com.bd
Fax : 88-02-9559257
Sarker Mansion (3rd Floor) 29, Rajuk
venue, Motijheel C/A, Dhaka-1000
Tel (Off) : 02-9513396, 02-9513397
E-mail: pbsl@primebank.com.bd
Fax : 88-02-9566912
House # 8 (2nd Floor), Road # 19/A,
Block-E, Banani, Dhaka-1213
Tel (Off) : 02-8828900, 02-8813788,
02-8813800/101, Cell : 01713-069905
E-mail: iqbalanwar@primebank.com.bd
Fax : 88-02-9886046
Adamjee EPZ Branch
Narayanganj
Phone: (02) 7692025-26, 7692024
Fax: (02) 7692027
Swift: PRBLBDDHAEZ
Asad Gate Branch
Dhaka
Phone: (02) 9125400,8142106,8142134
Fax: (02) 9122640
Ashulia Branch
Jamgora Bazar
Phone: (02) 7788290, 7788326, 7788325
Fax: (02) 7788291
Banani Branch
Phone: (02) 8815754, 9889868
Fax: 02-8853616
Swift: PRBLBDDH020
Banasree Branch
Banasree, Dhaka.
Phone: (02) 8399548, 8399591
Fax: (02) 8399547
Bangshal Branch
Phone: (02) 9561501, 7123480, 7113310
Fax: 7175185
Swift: PRBLBDDH026
Baridhara Branch
Dhaka-1212 Phone: (02) 9850376, (02)
9850392, 01730781181 (HOB) Email:
(02) 9850384
Bashabo Branch
(02) 7219205
Bashundhara Branch
Phone: PABX : (02) 8845214, 8845213,
Direct : (02) 8845215
Fax: (02) 8845214
Gulshan Branch
Gulshan Avenue
Dhaka-1212
Phone: (02) 9886171, 8815885
Fax: 02-9884977
Swift: PRBLBDDH016
Hemayetpur Branch
Phone: (02) 7742096, 01730781154 (HOB)
Fax: (02) 7742096
IBB Dilkusha Branch
Phone: (02) 9587494, 9577582, 9576414
Fax: 02-9567228
Swift: PRBLBDDH005
IBB Mirpur Branch
Dhaka-1216
Phone: (02) 8057681-2,8058371
Fax: 88-02-8075441
Ibrahimpur Branch
Kafrul, Dhaka-1206
02-8872503, 8872423
Fax: 02-8872501
Jamalpur Branch
Phone: (0981) 65360, (0981) 65 361
Fax: (0981) 65362
Jatrabari Branch
Phone: (02) 7552158, (02) 7552178
Fax: (02) 7552169
Road, Gazipur
Phone: (02) 9264135, 9264103
Fax: 88-02-9264097
Joypara Branch
Dohar, Dhaka.
Phone: 02-7768055, 02-7768053,
02-7768054
Fax: 02-7768052
Kawran Bazar Branch
Phone: (02) 8157288, 9124296-7
Fax: 88-02-9129004
Swift: PRBLBDDH010
Phone: PABX : 02-9470723, 9470771
Fax: 02-9471755
Bijoy Nagar Branch
Dhaka-1000
Phone: (02) 9335762, 9335732, 9334123
Fax: 02-9332639
Boalmari Branch
Phone: 06324-56132, 06324-56130
Fax: 06324-56139
Damudya Branch
8, Sonali Bank Road
Damudya, Shariatpur
Phone: (06023) 56396
Fax: (06023) 56390
Dhanmondi Branch
Phone: (02) 8622304, 9662704
Fax: (02) 9662705
Dhaka-1205
Phone: (02) 9662776-7, 9673783
Fax: 88-02-8622591
Swift: PRBLBDDH011
Faridpur Branch
Phone: (0631) 65133
Fax: (0631) 65128
-1000
Phone: (02) 9551682
Direct: (02) 7161146
Fax: 88-02-9553078
Swift: PRBLBDDH019
Ganakbari Branch
Savar, Dhaka-1340
Phone: (02) 7789379, 7788100
Fax: 02-7789378
Swift: PRBLBDDH014
Phone: (02) 8950997, 8991781
Fax: (02) 8931687
Kishoregonj Branch
Kishoregonj
Phone: (0941) 62590, Direct: (0941)
62592
Fax: (0941) 62591
Madhabdi Branch
Narsingdi-1604
Phone: (06251) 56682
Fax: 88-06257-56683
Mirpur-1 Branch
Dhaka-1216
Phone: (02) 8034126, 8034590
Fax: (02) 8034591
Mirzapur Branch
Phone: (09229) 56591
Direct: (09229) 56592
Fax: (09229) 56593
Mohakhali Branch
Phone: (02) 9850302, 9882291
Fax: 88-02-9886052
Swift: PRBLBDDH007
Motijheel Branch
Phone: (02) 7175491-2,9567225, 9562982
Fax: 88-02-9567223
Swift: PRBLBDDH001
Mouchak Branch
Phone: (02)8352831, 9347757
Fax: 88-02-9338883
Swift: PRBLBDDH013
Moulvi Bazar Branch
Phone: (02) 7313407, 7311017
Fax: 88-02-7318305
Swift: PRBLBDDH003
Mymensingh Branch
52391
Fax: (091) 52391
Narayanganj Branch
Phone: (02) 764689,7630150
Fax: 02-7630140
Swift: PRBLBDDH012
Shibpur Branch
Narsingdi
Phone: 06256-75130, 06256-75131
Fax: 06256-75134
Shimrail Branch
Phone: (02) 7691670, 7692912
Fax: (02) 7691671
Sreenagar Branch
Munshigonj
Phone: 01730781191 (HOB)
Tangail Branch
Holding No: 414-417
Main Road, Tangail
Phone: PABX : (0921) 61248, 61271,
Direct : (0921) 61330
Fax: (0921) 61322
Tejgaon Branch
Phone: 02-8879157-8, 02-8879160
Fax: 02-8879156
Tongi Branch
Phone: (02) 9813811, 9813874
Fax: (02) 9813835
Uttara Branch
Model Town, Dhaka
Phone: (02) 8916233, 8950341-2
Direct : (02) 8950016
Fax: (02) 8924248
Swift: PRBLBDDH021
Wari Branch
Phone: (02) 9512085, 7118311, 7118169
Fax: (02)9512084
Chittagong Division
Agrabad Branch
Phone: (031) 716724-5, 7207018
Fax: 88-031-718971
Swift: PRBLBDDH015
Ashugonj Branch
Phone: 08528-74596, 74595
Fax: (08528)74594
New Eskaton Branch
Dhaka - 1000
Phone: (02) 9354044, 9354738, 9359683
Fax: 88-02-9354826
Savar, Dhaka
Tel : +88 02 7788240
Fax: +88 02 7788241
SWIFT: PRBLBDDHDEZ
Pallabi Branch
1/11 & 1/12, Pallabi
Mirpur, Dhaka
Phone: PABX : (02) 9000559, 9001913,
Direct : (02) 9013629
Fax: (02) 9001813
Panthapath Branch
Phone: (02) 9142879, 8128100, 8152852
Fax: 02-9137887
Badda, Dhaka
Phone: (02) 9840689, 8816938, 9840685
Fax: 02-8837531
Ring Road Branch
9129093
Fax: (02) 8117010
R/A, Dhaka-1209
Phone: (02) 9122374,8124258, 8153556
Fax: (02) 8121652
Swift: PRBLBDDH023
Savar Branch
Dhaka
Phone: (02) 7744862
Direct: (02) 7744861
Fax: (02) 7744863
SBC Tower Branch
Phone: (02) 9561221, 9559943
Fax: 88-02-9564189
Swift: PRBLBDDH024
Sirajdikhan Branch
Phone: 02-7628320, 7628330
Fax: 02-7744863
Annual Report 2013
341
Oxygen More Branch
Phone: (031) 2583181, 2583180
Fax: (031) 2583180
Phone: (031) 2553593, 2553591-2
Fax: (031) 2553594
Raozan Branch
Phone: (03026) 56214, 56168
Fax: (03026) 56215
Rajshahi Division
Baneswar Branch
Phone: 01755534922
Bogra Branch
Bogra-5800
Phone: (051) 78203, 67172
Fax: 051-61142
Swift: PRBLBDDH022
Nawabganj
Phone: (0781) 51125, 51126
Fax: (0781) 51127
Ishwardi Branch
Ishwardi, Pabna
Phone: (07326) 64435, 64650
Fax: 07326-64436
Joypurhat Branch
Joypurhat
Phone: (0571) 51156, 51157
Fax: (0571) 51158
Mohadebpur Branch
Phone: (07426) 75041, 75088
Fax: 07426-75044
Naogaon Branch
Phone: (0741) 62150, 62151
Fax: 0741-62152
Banshkhali Branch
Phone: (0303) 756222
Fax: (0303) 756223
Bhatiary Branch
(Uttar Bazar)
Phone: 031-2781261, 2781263
Fax: 031-2781262
Brahmanbaria Branch
Brahmanbaria
Phone: 0851-61698, 0851-61699
Fax: 0851-58849
Chauddagram Branch
Phone: (08020) 56364
Fax: (08020) 56362
Chaumuhani Branch
Phone: (0321) 54096
Fax: (0321) 56096
Comilla Branch
Phone: (081) 72611, 72612, 72610
Fax: (081) 72646
Cox's Bazar Branch
Phone: (0341) 51085
Fax: (0341) 51084
Dagonbhuiyan Branch
Dagonbhuiyan, Feni
Phone: (03323) 79248, 79249
Fax: (03323) 79250
Fatickchari Branch
Phone: (03022) 56006
Fax: (03022) 56006
Feni Branch
Road, Feni
Phone: (0331) 63091, 63092, 63093
Fax: (0331) 63092
Hajigonj Branch
Phone: (08424) 75110, 75111
Fax: (08424) 75111
Halishahar Branch
Mooring, Chittagong
Phone: (031) 2512039, 2512064
Fax: (031) 2512054
Hathazari Branch
Kachari Road
Phone: (031) 2601524, 2601525
Fax: 88-031-2601526
Phone: (031) 639855, 2861437
Fax: 031-2861434
Swift: PRBLBDDH027
Chittagong
Phone: (031) 753143, 2771752
Fax: (031) 753144
Jubilee Road Branch
Chittagong -4000
Phone: (031) 613939, 2850319
Fax: 031-618689
Swift: PRBLBDDH017
Phone: (031) 2502382, 2502381
Fax: (031) 2502383
Khatungonj Branch
Chittagong-4000
Phone: (031) 623213-14, 627297
Fax: 031-610848
Swift: PRBLBDDH002
Phone: (031) 2850771, 2850773
Fax: (031) 2850772
Swift: PRBLBDDH025
Muradpur Branch
Phone: 031-2557826, 2557824
Fax: 031-2557825
Chittagong
Tel: (031) 741341, 01714-116174
Fax: (031) 741330
Khulna Branch
7, Old Jessore Road
Khulna -9100
Phone: (041) 720071, 725100
Fax: 041-731195
Swift: PRBLBDDH004
Kushtia Branch
Kushtia
Phone: (071) 72431, 72432
Fax: (071) 72430
Satkhira Branch
Satkhira.
Phone: (0471) 62450, 63007
Fax: 0471-63001
Barisal Division
Barisal Branch
Phone: (0431) 64011,64012
Fax: 0431-63712
Swift: PRBLBDDH008
Rangpur Division
Dinajpur Branch
Phone: (0531) 51289, 51291
Fax: (0531) 51296
Rangpur Branch
More, Rangpur.
Phone: (0521) 64119, 64120
Fax: (0521) 64118
SME Branch
Aganagar SME Branch
Phone: (02) 7763273
Fax: 88-02-7763273
Bhujpur SME Branch
Phone: 01713-255771
Chatkhil , Noakhali
Phone: (03222) 75113
Fax: 03222- 75119
Natore Branch
Phone: (0771) 67001
Fax: (0771) 67002
Pabna Branch
Phone: (0731) 66426, 66425
Fax: (0731) 66399
Rajshahi Branch
Phone: (0721) 773981, 774582, 771874
Fax: 0721-773980
Swift: PRBLBDDH009
Sylhet Division
Barolekha Branch
(08622) 56520
Fax: (08622) 56522
Beanibazar Branch
Sylhet Phone: (08223) 56139, 56140
Fax: (08223) 56141
Biswanath Branch
Biswanath Bazar
Biswanath, Sylhet
Phone: (08244)56017
Fax: (08224) 56004
Court Road Branch
Phone: (0861) 53877,53878
Fax: 0861-53878
Swift: PRBLBDDH014
Habigonj Branch
62814, 62813 Email:
(0831) 62815
Road, Sylhet-3100
Phone: (0821) 717332, 728944
Fax: (0821)-717337
Islampur Branch
Sylhet.
Phone: (0821)761174, 761157
Fax: 0821-761115
Kadamtali Branch
Phone: (0821)728910, 841319
Fax: 0821-728630
Kulaura Branch
Kulaura, Sylhet
Phone: (08624)57081, 57082
Fax: 08624-57080
Nabigonj Branch
Osmani Road
Nabigonj, Habigonj
Phone: (08328) 56025, 56029
Fax: (08328) 56015
Sreemangal Branch
Phone: (08626) 71181, 71183
Fax: 08626-71182
Subid Bazar Branch
Phone: (0821) 727688, 727629
Fax: (0821) 2830942
Sunamganj Branch
Road, Sunamganj
Phone: (0871) 62516, 62515
Fax: (0871) 62514
Sylhet Branch
Phone: (0821) 721127, 710208
Fax: 0821-710673
Swift: PRBLBDDH006
Tajpur Branch
Tajpur, Osmaninagar
Balaganj, Sylhet
Phone: (08242) 56211, 56210
Fax: (08242) 56212
Upashahar Branch
Phone: (0821) 811366, 723524
Fax: (0821) 710094
Khulna Division
Daulatpur Branch
Daulatpur, Khulna
Phone: 041-2850877, 2850876
Fax: 041-2850875
Jessore Branch
Phone: (0421) 68815, 68814
Fax: 0421-68816
Swift: PRBLBDDH018
Phone: (0265) 9090
Fax: (0265) 9090
Phone: 029571896
Fax: 02-9571896
Phone: (04225) 71780
Fax: 04225- 71788
Subarna Rice Mill
Phone: 01730-373919
Phone: (08327) 56327
Fax: 08327-56343
Phone: (031)2573206
Fax: 031-2573205
Phone: (02) 9463343
Fax: 02-9463343
Posta SME Branch
Phone: (02) 9571896
Fax: (02) 9571896
Phone: (03822) 56396
Fax: 03822-56397
Sherpur SME Branch
Floor), Narayanpur
Sadar, Sherpur
Phone: (0931) 62176
Fax: 0931-62175
Phone: (02) 7656359
Fax: 02-7656362
Syedpur SME Branch
Sunamganj
Phone: 01713-255776
Takerhat SME Branch
Phone: 01713-255772
Phone: (0561) 52295
Fax: 0561-52538
(Singapore)
Tel : 65-6392 4996, 0065- 6392 4829,
0065-91963012, E-mail:
Fax : 65-6392 4838
Jurong East Branch
Tel : 0065-68994647, 0065-96432498
Fax : 0065-65617559
London Branch
Tel (Off) : 02076500005, 07939227610
Birmingham Branch
493 Coventry Road,
Birmingham, B10 0JS
Tel (Off) : 01217735553, 07956675296
Tel (Off) : 01616522444, 07956675297
Tel (Off) : 852-2529- 2710, 852-2529- 2719,
852-6274-2996
Tel (Off) : 02-7174716, 02-9555674
Cell : 01819-219496
Fax : 88-02-9559257
Tel (Off) : 02-9513396, 02-9513397
Fax : 88-02-9566912
Tel (Off) : 02-8828900, 02-8813788,
02-8813800/101, Cell : 01713-069905
Fax : 88-02-9886046
Adamjee EPZ Branch
Narayanganj
Phone: (02) 7692025-26, 7692024
Fax: (02) 7692027
Swift: PRBLBDDHAEZ
Asad Gate Branch
Dhaka
Phone: (02) 9125400,8142106,8142134
Fax: (02) 9122640
Ashulia Branch
Jamgora Bazar
Phone: (02) 7788290, 7788326, 7788325
Fax: (02) 7788291
Banani Branch
Phone: (02) 8815754, 9889868
Fax: 02-8853616
Swift: PRBLBDDH020
Banasree Branch
Banasree, Dhaka.
Phone: (02) 8399548, 8399591
Fax: (02) 8399547
Bangshal Branch
Phone: (02) 9561501, 7123480, 7113310
Fax: 7175185
Swift: PRBLBDDH026
Baridhara Branch
Dhaka-1212 Phone: (02) 9850376, (02)
9850392, 01730781181 (HOB) Email:
(02) 9850384
Bashabo Branch
(02) 7219205
Bashundhara Branch
Phone: PABX : (02) 8845214, 8845213,
Direct : (02) 8845215
Fax: (02) 8845214
Gulshan Branch
Gulshan Avenue
Dhaka-1212
Phone: (02) 9886171, 8815885
Fax: 02-9884977
Swift: PRBLBDDH016
Hemayetpur Branch
Phone: (02) 7742096, 01730781154 (HOB)
Fax: (02) 7742096
IBB Dilkusha Branch
Phone: (02) 9587494, 9577582, 9576414
Fax: 02-9567228
Swift: PRBLBDDH005
IBB Mirpur Branch
Dhaka-1216
Phone: (02) 8057681-2,8058371
Fax: 88-02-8075441
Ibrahimpur Branch
Kafrul, Dhaka-1206
02-8872503, 8872423
Fax: 02-8872501
Jamalpur Branch
Phone: (0981) 65360, (0981) 65 361
Fax: (0981) 65362
Jatrabari Branch
Phone: (02) 7552158, (02) 7552178
Fax: (02) 7552169
Road, Gazipur
Phone: (02) 9264135, 9264103
Fax: 88-02-9264097
Joypara Branch
Dohar, Dhaka.
Phone: 02-7768055, 02-7768053,
02-7768054
Fax: 02-7768052
Kawran Bazar Branch
Phone: (02) 8157288, 9124296-7
Fax: 88-02-9129004
Swift: PRBLBDDH010
Phone: PABX : 02-9470723, 9470771
Fax: 02-9471755
Bijoy Nagar Branch
Dhaka-1000
Phone: (02) 9335762, 9335732, 9334123
Fax: 02-9332639
Boalmari Branch
Phone: 06324-56132, 06324-56130
Fax: 06324-56139
Damudya Branch
8, Sonali Bank Road
Damudya, Shariatpur
Phone: (06023) 56396
Fax: (06023) 56390
Dhanmondi Branch
Phone: (02) 8622304, 9662704
Fax: (02) 9662705
Dhaka-1205
Phone: (02) 9662776-7, 9673783
Fax: 88-02-8622591
Swift: PRBLBDDH011
Faridpur Branch
Phone: (0631) 65133
Fax: (0631) 65128
-1000
Phone: (02) 9551682
Direct: (02) 7161146
Fax: 88-02-9553078
Swift: PRBLBDDH019
Ganakbari Branch
Savar, Dhaka-1340
Phone: (02) 7789379, 7788100
Fax: 02-7789378
Swift: PRBLBDDH014
Phone: (02) 8950997, 8991781
Fax: (02) 8931687
Kishoregonj Branch
Kishoregonj
Phone: (0941) 62590, Direct: (0941)
62592
Fax: (0941) 62591
Madhabdi Branch
Narsingdi-1604
Phone: (06251) 56682
Fax: 88-06257-56683
Mirpur-1 Branch
Dhaka-1216
Phone: (02) 8034126, 8034590
Fax: (02) 8034591
Mirzapur Branch
Phone: (09229) 56591
Direct: (09229) 56592
Fax: (09229) 56593
Mohakhali Branch
Phone: (02) 9850302, 9882291
Fax: 88-02-9886052
Swift: PRBLBDDH007
Motijheel Branch
Phone: (02) 7175491-2,9567225, 9562982
Fax: 88-02-9567223
Swift: PRBLBDDH001
Mouchak Branch
Phone: (02)8352831, 9347757
Fax: 88-02-9338883
Swift: PRBLBDDH013
Moulvi Bazar Branch
Phone: (02) 7313407, 7311017
Fax: 88-02-7318305
Swift: PRBLBDDH003
Mymensingh Branch
52391
Fax: (091) 52391
Narayanganj Branch
Phone: (02) 764689,7630150
Fax: 02-7630140
Swift: PRBLBDDH012
Shibpur Branch
Narsingdi
Phone: 06256-75130, 06256-75131
Fax: 06256-75134
Shimrail Branch
Phone: (02) 7691670, 7692912
Fax: (02) 7691671
Sreenagar Branch
Munshigonj
Phone: 01730781191 (HOB)
Tangail Branch
Holding No: 414-417
Main Road, Tangail
Phone: PABX : (0921) 61248, 61271,
Direct : (0921) 61330
Fax: (0921) 61322
Tejgaon Branch
Phone: 02-8879157-8, 02-8879160
Fax: 02-8879156
Tongi Branch
Phone: (02) 9813811, 9813874
Fax: (02) 9813835
Uttara Branch
Model Town, Dhaka
Phone: (02) 8916233, 8950341-2
Direct : (02) 8950016
Fax: (02) 8924248
Swift: PRBLBDDH021
Wari Branch
Phone: (02) 9512085, 7118311, 7118169
Fax: (02)9512084
Chittagong Division
Agrabad Branch
Phone: (031) 716724-5, 7207018
Fax: 88-031-718971
Swift: PRBLBDDH015
Ashugonj Branch
Phone: 08528-74596, 74595
Fax: (08528)74594
New Eskaton Branch
Dhaka - 1000
Phone: (02) 9354044, 9354738, 9359683
Fax: 88-02-9354826
Savar, Dhaka
Tel : +88 02 7788240
Fax: +88 02 7788241
SWIFT: PRBLBDDHDEZ
Pallabi Branch
1/11 & 1/12, Pallabi
Mirpur, Dhaka
Phone: PABX : (02) 9000559, 9001913,
Direct : (02) 9013629
Fax: (02) 9001813
Panthapath Branch
Phone: (02) 9142879, 8128100, 8152852
Fax: 02-9137887
Badda, Dhaka
Phone: (02) 9840689, 8816938, 9840685
Fax: 02-8837531
Ring Road Branch
9129093
Fax: (02) 8117010
R/A, Dhaka-1209
Phone: (02) 9122374,8124258, 8153556
Fax: (02) 8121652
Swift: PRBLBDDH023
Savar Branch
Dhaka
Phone: (02) 7744862
Direct: (02) 7744861
Fax: (02) 7744863
SBC Tower Branch
Phone: (02) 9561221, 9559943
Fax: 88-02-9564189
Swift: PRBLBDDH024
Sirajdikhan Branch
Phone: 02-7628320, 7628330
Fax: 02-7744863
Annual Report 2013
342
Oxygen More Branch
Phone: (031) 2583181, 2583180
Fax: (031) 2583180
Phone: (031) 2553593, 2553591-2
Fax: (031) 2553594
Raozan Branch
Phone: (03026) 56214, 56168
Fax: (03026) 56215
Rajshahi Division
Baneswar Branch
Phone: 01755534922
Bogra Branch
Bogra-5800
Phone: (051) 78203, 67172
Fax: 051-61142
Swift: PRBLBDDH022
Nawabganj
Phone: (0781) 51125, 51126
Fax: (0781) 51127
Ishwardi Branch
Ishwardi, Pabna
Phone: (07326) 64435, 64650
Fax: 07326-64436
Joypurhat Branch
Joypurhat
Phone: (0571) 51156, 51157
Fax: (0571) 51158
Mohadebpur Branch
Phone: (07426) 75041, 75088
Fax: 07426-75044
Naogaon Branch
Phone: (0741) 62150, 62151
Fax: 0741-62152
Banshkhali Branch
Phone: (0303) 756222
Fax: (0303) 756223
Bhatiary Branch
(Uttar Bazar)
Phone: 031-2781261, 2781263
Fax: 031-2781262
Brahmanbaria Branch
Brahmanbaria
Phone: 0851-61698, 0851-61699
Fax: 0851-58849
Chauddagram Branch
Phone: (08020) 56364
Fax: (08020) 56362
Chaumuhani Branch
Phone: (0321) 54096
Fax: (0321) 56096
Comilla Branch
Phone: (081) 72611, 72612, 72610
Fax: (081) 72646
Cox's Bazar Branch
Phone: (0341) 51085
Fax: (0341) 51084
Dagonbhuiyan Branch
Dagonbhuiyan, Feni
Phone: (03323) 79248, 79249
Fax: (03323) 79250
Fatickchari Branch
Phone: (03022) 56006
Fax: (03022) 56006
Feni Branch
Road, Feni
Phone: (0331) 63091, 63092, 63093
Fax: (0331) 63092
Hajigonj Branch
Phone: (08424) 75110, 75111
Fax: (08424) 75111
Halishahar Branch
Mooring, Chittagong
Phone: (031) 2512039, 2512064
Fax: (031) 2512054
Hathazari Branch
Kachari Road
Phone: (031) 2601524, 2601525
Fax: 88-031-2601526
Phone: (031) 639855, 2861437
Fax: 031-2861434
Swift: PRBLBDDH027
Chittagong
Phone: (031) 753143, 2771752
Fax: (031) 753144
Jubilee Road Branch
Chittagong -4000
Phone: (031) 613939, 2850319
Fax: 031-618689
Swift: PRBLBDDH017
Phone: (031) 2502382, 2502381
Fax: (031) 2502383
Khatungonj Branch
Chittagong-4000
Phone: (031) 623213-14, 627297
Fax: 031-610848
Swift: PRBLBDDH002
Phone: (031) 2850771, 2850773
Fax: (031) 2850772
Swift: PRBLBDDH025
Muradpur Branch
Phone: 031-2557826, 2557824
Fax: 031-2557825
Chittagong
Tel: (031) 741341, 01714-116174
Fax: (031) 741330
Khulna Branch
7, Old Jessore Road
Khulna -9100
Phone: (041) 720071, 725100
Fax: 041-731195
Swift: PRBLBDDH004
Kushtia Branch
Kushtia
Phone: (071) 72431, 72432
Fax: (071) 72430
Satkhira Branch
Satkhira.
Phone: (0471) 62450, 63007
Fax: 0471-63001
Barisal Division
Barisal Branch
Phone: (0431) 64011,64012
Fax: 0431-63712
Swift: PRBLBDDH008
Rangpur Division
Dinajpur Branch
Phone: (0531) 51289, 51291
Fax: (0531) 51296
Rangpur Branch
More, Rangpur.
Phone: (0521) 64119, 64120
Fax: (0521) 64118
SME Branch
Aganagar SME Branch
Phone: (02) 7763273
Fax: 88-02-7763273
Bhujpur SME Branch
Phone: 01713-255771
Chatkhil , Noakhali
Phone: (03222) 75113
Fax: 03222- 75119
Natore Branch
Phone: (0771) 67001
Fax: (0771) 67002
Pabna Branch
Phone: (0731) 66426, 66425
Fax: (0731) 66399
Rajshahi Branch
Phone: (0721) 773981, 774582, 771874
Fax: 0721-773980
Swift: PRBLBDDH009
Sylhet Division
Barolekha Branch
(08622) 56520
Fax: (08622) 56522
Beanibazar Branch
Sylhet Phone: (08223) 56139, 56140
Fax: (08223) 56141
Biswanath Branch
Biswanath Bazar
Biswanath, Sylhet
Phone: (08244)56017
Fax: (08224) 56004
Court Road Branch
Phone: (0861) 53877,53878
Fax: 0861-53878
Swift: PRBLBDDH014
Habigonj Branch
62814, 62813 Email:
(0831) 62815
Road, Sylhet-3100
Phone: (0821) 717332, 728944
Fax: (0821)-717337
Islampur Branch
Sylhet.
Phone: (0821)761174, 761157
Fax: 0821-761115
Kadamtali Branch
Phone: (0821)728910, 841319
Fax: 0821-728630
Kulaura Branch
Kulaura, Sylhet
Phone: (08624)57081, 57082
Fax: 08624-57080
Nabigonj Branch
Osmani Road
Nabigonj, Habigonj
Phone: (08328) 56025, 56029
Fax: (08328) 56015
Sreemangal Branch
Phone: (08626) 71181, 71183
Fax: 08626-71182
Subid Bazar Branch
Phone: (0821) 727688, 727629
Fax: (0821) 2830942
Sunamganj Branch
Road, Sunamganj
Phone: (0871) 62516, 62515
Fax: (0871) 62514
Sylhet Branch
Phone: (0821) 721127, 710208
Fax: 0821-710673
Swift: PRBLBDDH006
Tajpur Branch
Tajpur, Osmaninagar
Balaganj, Sylhet
Phone: (08242) 56211, 56210
Fax: (08242) 56212
Upashahar Branch
Phone: (0821) 811366, 723524
Fax: (0821) 710094
Khulna Division
Daulatpur Branch
Daulatpur, Khulna
Phone: 041-2850877, 2850876
Fax: 041-2850875
Jessore Branch
Phone: (0421) 68815, 68814
Fax: 0421-68816
Swift: PRBLBDDH018
Phone: (0265) 9090
Fax: (0265) 9090
Phone: 029571896
Fax: 02-9571896
Phone: (04225) 71780
Fax: 04225- 71788
Subarna Rice Mill
Phone: 01730-373919
Phone: (08327) 56327
Fax: 08327-56343
Phone: (031)2573206
Fax: 031-2573205
Phone: (02) 9463343
Fax: 02-9463343
Posta SME Branch
Phone: (02) 9571896
Fax: (02) 9571896
Phone: (03822) 56396
Fax: 03822-56397
Sherpur SME Branch
Floor), Narayanpur
Sadar, Sherpur
Phone: (0931) 62176
Fax: 0931-62175
Phone: (02) 7656359
Fax: 02-7656362
Syedpur SME Branch
Sunamganj
Phone: 01713-255776
Takerhat SME Branch
Phone: 01713-255772
Phone: (0561) 52295
Fax: 0561-52538
(Singapore)
Tel : 65-6392 4996, 0065- 6392 4829,
0065-91963012, E-mail:
Fax : 65-6392 4838
Jurong East Branch
Tel : 0065-68994647, 0065-96432498
Fax : 0065-65617559
London Branch
Tel (Off) : 02076500005, 07939227610
Birmingham Branch
493 Coventry Road,
Birmingham, B10 0JS
Tel (Off) : 01217735553, 07956675296
Tel (Off) : 01616522444, 07956675297
Tel (Off) : 852-2529- 2710, 852-2529- 2719,
852-6274-2996
Tel (Off) : 02-7174716, 02-9555674
Cell : 01819-219496
Fax : 88-02-9559257
Tel (Off) : 02-9513396, 02-9513397
Fax : 88-02-9566912
Tel (Off) : 02-8828900, 02-8813788,
02-8813800/101, Cell : 01713-069905
Fax : 88-02-9886046
Adamjee EPZ Branch
Narayanganj
Phone: (02) 7692025-26, 7692024
Fax: (02) 7692027
Swift: PRBLBDDHAEZ
Asad Gate Branch
Dhaka
Phone: (02) 9125400,8142106,8142134
Fax: (02) 9122640
Ashulia Branch
Jamgora Bazar
Phone: (02) 7788290, 7788326, 7788325
Fax: (02) 7788291
Banani Branch
Phone: (02) 8815754, 9889868
Fax: 02-8853616
Swift: PRBLBDDH020
Banasree Branch
Banasree, Dhaka.
Phone: (02) 8399548, 8399591
Fax: (02) 8399547
Bangshal Branch
Phone: (02) 9561501, 7123480, 7113310
Fax: 7175185
Swift: PRBLBDDH026
Baridhara Branch
Dhaka-1212 Phone: (02) 9850376, (02)
9850392, 01730781181 (HOB) Email:
(02) 9850384
Bashabo Branch
(02) 7219205
Bashundhara Branch
Phone: PABX : (02) 8845214, 8845213,
Direct : (02) 8845215
Fax: (02) 8845214
Gulshan Branch
Gulshan Avenue
Dhaka-1212
Phone: (02) 9886171, 8815885
Fax: 02-9884977
Swift: PRBLBDDH016
Hemayetpur Branch
Phone: (02) 7742096, 01730781154 (HOB)
Fax: (02) 7742096
IBB Dilkusha Branch
Phone: (02) 9587494, 9577582, 9576414
Fax: 02-9567228
Swift: PRBLBDDH005
IBB Mirpur Branch
Dhaka-1216
Phone: (02) 8057681-2,8058371
Fax: 88-02-8075441
Ibrahimpur Branch
Kafrul, Dhaka-1206
02-8872503, 8872423
Fax: 02-8872501
Jamalpur Branch
Phone: (0981) 65360, (0981) 65 361
Fax: (0981) 65362
Jatrabari Branch
Phone: (02) 7552158, (02) 7552178
Fax: (02) 7552169
Road, Gazipur
Phone: (02) 9264135, 9264103
Fax: 88-02-9264097
Joypara Branch
Dohar, Dhaka.
Phone: 02-7768055, 02-7768053,
02-7768054
Fax: 02-7768052
Kawran Bazar Branch
Phone: (02) 8157288, 9124296-7
Fax: 88-02-9129004
Swift: PRBLBDDH010
Phone: PABX : 02-9470723, 9470771
Fax: 02-9471755
Bijoy Nagar Branch
Dhaka-1000
Phone: (02) 9335762, 9335732, 9334123
Fax: 02-9332639
Boalmari Branch
Phone: 06324-56132, 06324-56130
Fax: 06324-56139
Damudya Branch
8, Sonali Bank Road
Damudya, Shariatpur
Phone: (06023) 56396
Fax: (06023) 56390
Dhanmondi Branch
Phone: (02) 8622304, 9662704
Fax: (02) 9662705
Dhaka-1205
Phone: (02) 9662776-7, 9673783
Fax: 88-02-8622591
Swift: PRBLBDDH011
Faridpur Branch
Phone: (0631) 65133
Fax: (0631) 65128
-1000
Phone: (02) 9551682
Direct: (02) 7161146
Fax: 88-02-9553078
Swift: PRBLBDDH019
Ganakbari Branch
Savar, Dhaka-1340
Phone: (02) 7789379, 7788100
Fax: 02-7789378
Swift: PRBLBDDH014
Phone: (02) 8950997, 8991781
Fax: (02) 8931687
Kishoregonj Branch
Kishoregonj
Phone: (0941) 62590, Direct: (0941)
62592
Fax: (0941) 62591
Madhabdi Branch
Narsingdi-1604
Phone: (06251) 56682
Fax: 88-06257-56683
Mirpur-1 Branch
Dhaka-1216
Phone: (02) 8034126, 8034590
Fax: (02) 8034591
Mirzapur Branch
Phone: (09229) 56591
Direct: (09229) 56592
Fax: (09229) 56593
Mohakhali Branch
Phone: (02) 9850302, 9882291
Fax: 88-02-9886052
Swift: PRBLBDDH007
Motijheel Branch
Phone: (02) 7175491-2,9567225, 9562982
Fax: 88-02-9567223
Swift: PRBLBDDH001
Mouchak Branch
Phone: (02)8352831, 9347757
Fax: 88-02-9338883
Swift: PRBLBDDH013
Moulvi Bazar Branch
Phone: (02) 7313407, 7311017
Fax: 88-02-7318305
Swift: PRBLBDDH003
Mymensingh Branch
52391
Fax: (091) 52391
Narayanganj Branch
Phone: (02) 764689,7630150
Fax: 02-7630140
Swift: PRBLBDDH012
Shibpur Branch
Narsingdi
Phone: 06256-75130, 06256-75131
Fax: 06256-75134
Shimrail Branch
Phone: (02) 7691670, 7692912
Fax: (02) 7691671
Sreenagar Branch
Munshigonj
Phone: 01730781191 (HOB)
Tangail Branch
Holding No: 414-417
Main Road, Tangail
Phone: PABX : (0921) 61248, 61271,
Direct : (0921) 61330
Fax: (0921) 61322
Tejgaon Branch
Phone: 02-8879157-8, 02-8879160
Fax: 02-8879156
Tongi Branch
Phone: (02) 9813811, 9813874
Fax: (02) 9813835
Uttara Branch
Model Town, Dhaka
Phone: (02) 8916233, 8950341-2
Direct : (02) 8950016
Fax: (02) 8924248
Swift: PRBLBDDH021
Wari Branch
Phone: (02) 9512085, 7118311, 7118169
Fax: (02)9512084
Chittagong Division
Agrabad Branch
Phone: (031) 716724-5, 7207018
Fax: 88-031-718971
Swift: PRBLBDDH015
Ashugonj Branch
Phone: 08528-74596, 74595
Fax: (08528)74594
New Eskaton Branch
Dhaka - 1000
Phone: (02) 9354044, 9354738, 9359683
Fax: 88-02-9354826
Savar, Dhaka
Tel : +88 02 7788240
Fax: +88 02 7788241
SWIFT: PRBLBDDHDEZ
Pallabi Branch
1/11 & 1/12, Pallabi
Mirpur, Dhaka
Phone: PABX : (02) 9000559, 9001913,
Direct : (02) 9013629
Fax: (02) 9001813
Panthapath Branch
Phone: (02) 9142879, 8128100, 8152852
Fax: 02-9137887
Badda, Dhaka
Phone: (02) 9840689, 8816938, 9840685
Fax: 02-8837531
Ring Road Branch
9129093
Fax: (02) 8117010
R/A, Dhaka-1209
Phone: (02) 9122374,8124258, 8153556
Fax: (02) 8121652
Swift: PRBLBDDH023
Savar Branch
Dhaka
Phone: (02) 7744862
Direct: (02) 7744861
Fax: (02) 7744863
SBC Tower Branch
Phone: (02) 9561221, 9559943
Fax: 88-02-9564189
Swift: PRBLBDDH024
Sirajdikhan Branch
Phone: 02-7628320, 7628330
Fax: 02-7744863
Annual Report 2013
343
Oxygen More Branch
Phone: (031) 2583181, 2583180
Fax: (031) 2583180
Phone: (031) 2553593, 2553591-2
Fax: (031) 2553594
Raozan Branch
Phone: (03026) 56214, 56168
Fax: (03026) 56215
Rajshahi Division
Baneswar Branch
Phone: 01755534922
Bogra Branch
Bogra-5800
Phone: (051) 78203, 67172
Fax: 051-61142
Swift: PRBLBDDH022
Nawabganj
Phone: (0781) 51125, 51126
Fax: (0781) 51127
Ishwardi Branch
Ishwardi, Pabna
Phone: (07326) 64435, 64650
Fax: 07326-64436
Joypurhat Branch
Joypurhat
Phone: (0571) 51156, 51157
Fax: (0571) 51158
Mohadebpur Branch
Phone: (07426) 75041, 75088
Fax: 07426-75044
Naogaon Branch
Phone: (0741) 62150, 62151
Fax: 0741-62152
Banshkhali Branch
Phone: (0303) 756222
Fax: (0303) 756223
Bhatiary Branch
(Uttar Bazar)
Phone: 031-2781261, 2781263
Fax: 031-2781262
Brahmanbaria Branch
Brahmanbaria
Phone: 0851-61698, 0851-61699
Fax: 0851-58849
Chauddagram Branch
Phone: (08020) 56364
Fax: (08020) 56362
Chaumuhani Branch
Phone: (0321) 54096
Fax: (0321) 56096
Comilla Branch
Phone: (081) 72611, 72612, 72610
Fax: (081) 72646
Cox's Bazar Branch
Phone: (0341) 51085
Fax: (0341) 51084
Dagonbhuiyan Branch
Dagonbhuiyan, Feni
Phone: (03323) 79248, 79249
Fax: (03323) 79250
Fatickchari Branch
Phone: (03022) 56006
Fax: (03022) 56006
Feni Branch
Road, Feni
Phone: (0331) 63091, 63092, 63093
Fax: (0331) 63092
Hajigonj Branch
Phone: (08424) 75110, 75111
Fax: (08424) 75111
Halishahar Branch
Mooring, Chittagong
Phone: (031) 2512039, 2512064
Fax: (031) 2512054
Hathazari Branch
Kachari Road
Phone: (031) 2601524, 2601525
Fax: 88-031-2601526
Phone: (031) 639855, 2861437
Fax: 031-2861434
Swift: PRBLBDDH027
Chittagong
Phone: (031) 753143, 2771752
Fax: (031) 753144
Jubilee Road Branch
Chittagong -4000
Phone: (031) 613939, 2850319
Fax: 031-618689
Swift: PRBLBDDH017
Phone: (031) 2502382, 2502381
Fax: (031) 2502383
Khatungonj Branch
Chittagong-4000
Phone: (031) 623213-14, 627297
Fax: 031-610848
Swift: PRBLBDDH002
Phone: (031) 2850771, 2850773
Fax: (031) 2850772
Swift: PRBLBDDH025
Muradpur Branch
Phone: 031-2557826, 2557824
Fax: 031-2557825
Chittagong
Tel: (031) 741341, 01714-116174
Fax: (031) 741330
Khulna Branch
7, Old Jessore Road
Khulna -9100
Phone: (041) 720071, 725100
Fax: 041-731195
Swift: PRBLBDDH004
Kushtia Branch
Kushtia
Phone: (071) 72431, 72432
Fax: (071) 72430
Satkhira Branch
Satkhira.
Phone: (0471) 62450, 63007
Fax: 0471-63001
Barisal Division
Barisal Branch
Phone: (0431) 64011,64012
Fax: 0431-63712
Swift: PRBLBDDH008
Rangpur Division
Dinajpur Branch
Phone: (0531) 51289, 51291
Fax: (0531) 51296
Rangpur Branch
More, Rangpur.
Phone: (0521) 64119, 64120
Fax: (0521) 64118
SME Branch
Aganagar SME Branch
Phone: (02) 7763273
Fax: 88-02-7763273
Bhujpur SME Branch
Phone: 01713-255771
Chatkhil , Noakhali
Phone: (03222) 75113
Fax: 03222- 75119
Natore Branch
Phone: (0771) 67001
Fax: (0771) 67002
Pabna Branch
Phone: (0731) 66426, 66425
Fax: (0731) 66399
Rajshahi Branch
Phone: (0721) 773981, 774582, 771874
Fax: 0721-773980
Swift: PRBLBDDH009
Sylhet Division
Barolekha Branch
(08622) 56520
Fax: (08622) 56522
Beanibazar Branch
Sylhet Phone: (08223) 56139, 56140
Fax: (08223) 56141
Biswanath Branch
Biswanath Bazar
Biswanath, Sylhet
Phone: (08244)56017
Fax: (08224) 56004
Court Road Branch
Phone: (0861) 53877,53878
Fax: 0861-53878
Swift: PRBLBDDH014
Habigonj Branch
62814, 62813 Email:
(0831) 62815
Road, Sylhet-3100
Phone: (0821) 717332, 728944
Fax: (0821)-717337
Islampur Branch
Sylhet.
Phone: (0821)761174, 761157
Fax: 0821-761115
Kadamtali Branch
Phone: (0821)728910, 841319
Fax: 0821-728630
Kulaura Branch
Kulaura, Sylhet
Phone: (08624)57081, 57082
Fax: 08624-57080
Nabigonj Branch
Osmani Road
Nabigonj, Habigonj
Phone: (08328) 56025, 56029
Fax: (08328) 56015
Sreemangal Branch
Phone: (08626) 71181, 71183
Fax: 08626-71182
Subid Bazar Branch
Phone: (0821) 727688, 727629
Fax: (0821) 2830942
Sunamganj Branch
Road, Sunamganj
Phone: (0871) 62516, 62515
Fax: (0871) 62514
Sylhet Branch
Phone: (0821) 721127, 710208
Fax: 0821-710673
Swift: PRBLBDDH006
Tajpur Branch
Tajpur, Osmaninagar
Balaganj, Sylhet
Phone: (08242) 56211, 56210
Fax: (08242) 56212
Upashahar Branch
Phone: (0821) 811366, 723524
Fax: (0821) 710094
Khulna Division
Daulatpur Branch
Daulatpur, Khulna
Phone: 041-2850877, 2850876
Fax: 041-2850875
Jessore Branch
Phone: (0421) 68815, 68814
Fax: 0421-68816
Swift: PRBLBDDH018
Phone: (0265) 9090
Fax: (0265) 9090
Phone: 029571896
Fax: 02-9571896
Phone: (04225) 71780
Fax: 04225- 71788
Subarna Rice Mill
Phone: 01730-373919
Phone: (08327) 56327
Fax: 08327-56343
Phone: (031)2573206
Fax: 031-2573205
Phone: (02) 9463343
Fax: 02-9463343
Posta SME Branch
Phone: (02) 9571896
Fax: (02) 9571896
Phone: (03822) 56396
Fax: 03822-56397
Sherpur SME Branch
Floor), Narayanpur
Sadar, Sherpur
Phone: (0931) 62176
Fax: 0931-62175
Phone: (02) 7656359
Fax: 02-7656362
Syedpur SME Branch
Sunamganj
Phone: 01713-255776
Takerhat SME Branch
Phone: 01713-255772
Phone: (0561) 52295
Fax: 0561-52538
(Singapore)
Tel : 65-6392 4996, 0065- 6392 4829,
0065-91963012, E-mail:
Fax : 65-6392 4838
Jurong East Branch
Tel : 0065-68994647, 0065-96432498
Fax : 0065-65617559
London Branch
Tel (Off) : 02076500005, 07939227610
Birmingham Branch
493 Coventry Road,
Birmingham, B10 0JS
Tel (Off) : 01217735553, 07956675296
Tel (Off) : 01616522444, 07956675297
Tel (Off) : 852-2529- 2710, 852-2529- 2719,
852-6274-2996
Tel (Off) : 02-7174716, 02-9555674
Cell : 01819-219496
Fax : 88-02-9559257
Tel (Off) : 02-9513396, 02-9513397
Fax : 88-02-9566912
Tel (Off) : 02-8828900, 02-8813788,
02-8813800/101, Cell : 01713-069905
Fax : 88-02-9886046
Adamjee EPZ Branch
Narayanganj
Phone: (02) 7692025-26, 7692024
Fax: (02) 7692027
Swift: PRBLBDDHAEZ
Asad Gate Branch
Dhaka
Phone: (02) 9125400,8142106,8142134
Fax: (02) 9122640
Ashulia Branch
Jamgora Bazar
Phone: (02) 7788290, 7788326, 7788325
Fax: (02) 7788291
Banani Branch
Phone: (02) 8815754, 9889868
Fax: 02-8853616
Swift: PRBLBDDH020
Banasree Branch
Banasree, Dhaka.
Phone: (02) 8399548, 8399591
Fax: (02) 8399547
Bangshal Branch
Phone: (02) 9561501, 7123480, 7113310
Fax: 7175185
Swift: PRBLBDDH026
Baridhara Branch
Dhaka-1212 Phone: (02) 9850376, (02)
9850392, 01730781181 (HOB) Email:
(02) 9850384
Bashabo Branch
(02) 7219205
Bashundhara Branch
Phone: PABX : (02) 8845214, 8845213,
Direct : (02) 8845215
Fax: (02) 8845214
Gulshan Branch
Gulshan Avenue
Dhaka-1212
Phone: (02) 9886171, 8815885
Fax: 02-9884977
Swift: PRBLBDDH016
Hemayetpur Branch
Phone: (02) 7742096, 01730781154 (HOB)
Fax: (02) 7742096
IBB Dilkusha Branch
Phone: (02) 9587494, 9577582, 9576414
Fax: 02-9567228
Swift: PRBLBDDH005
IBB Mirpur Branch
Dhaka-1216
Phone: (02) 8057681-2,8058371
Fax: 88-02-8075441
Ibrahimpur Branch
Kafrul, Dhaka-1206
02-8872503, 8872423
Fax: 02-8872501
Jamalpur Branch
Phone: (0981) 65360, (0981) 65 361
Fax: (0981) 65362
Jatrabari Branch
Phone: (02) 7552158, (02) 7552178
Fax: (02) 7552169
Road, Gazipur
Phone: (02) 9264135, 9264103
Fax: 88-02-9264097
Joypara Branch
Dohar, Dhaka.
Phone: 02-7768055, 02-7768053,
02-7768054
Fax: 02-7768052
Kawran Bazar Branch
Phone: (02) 8157288, 9124296-7
Fax: 88-02-9129004
Swift: PRBLBDDH010
Phone: PABX : 02-9470723, 9470771
Fax: 02-9471755
Bijoy Nagar Branch
Dhaka-1000
Phone: (02) 9335762, 9335732, 9334123
Fax: 02-9332639
Boalmari Branch
Phone: 06324-56132, 06324-56130
Fax: 06324-56139
Damudya Branch
8, Sonali Bank Road
Damudya, Shariatpur
Phone: (06023) 56396
Fax: (06023) 56390
Dhanmondi Branch
Phone: (02) 8622304, 9662704
Fax: (02) 9662705
Dhaka-1205
Phone: (02) 9662776-7, 9673783
Fax: 88-02-8622591
Swift: PRBLBDDH011
Faridpur Branch
Phone: (0631) 65133
Fax: (0631) 65128
-1000
Phone: (02) 9551682
Direct: (02) 7161146
Fax: 88-02-9553078
Swift: PRBLBDDH019
Ganakbari Branch
Savar, Dhaka-1340
Phone: (02) 7789379, 7788100
Fax: 02-7789378
Swift: PRBLBDDH014
Phone: (02) 8950997, 8991781
Fax: (02) 8931687
Kishoregonj Branch
Kishoregonj
Phone: (0941) 62590, Direct: (0941)
62592
Fax: (0941) 62591
Madhabdi Branch
Narsingdi-1604
Phone: (06251) 56682
Fax: 88-06257-56683
Mirpur-1 Branch
Dhaka-1216
Phone: (02) 8034126, 8034590
Fax: (02) 8034591
Mirzapur Branch
Phone: (09229) 56591
Direct: (09229) 56592
Fax: (09229) 56593
Mohakhali Branch
Phone: (02) 9850302, 9882291
Fax: 88-02-9886052
Swift: PRBLBDDH007
Motijheel Branch
Phone: (02) 7175491-2,9567225, 9562982
Fax: 88-02-9567223
Swift: PRBLBDDH001
Mouchak Branch
Phone: (02)8352831, 9347757
Fax: 88-02-9338883
Swift: PRBLBDDH013
Moulvi Bazar Branch
Phone: (02) 7313407, 7311017
Fax: 88-02-7318305
Swift: PRBLBDDH003
Mymensingh Branch
52391
Fax: (091) 52391
Narayanganj Branch
Phone: (02) 764689,7630150
Fax: 02-7630140
Swift: PRBLBDDH012
Shibpur Branch
Narsingdi
Phone: 06256-75130, 06256-75131
Fax: 06256-75134
Shimrail Branch
Phone: (02) 7691670, 7692912
Fax: (02) 7691671
Sreenagar Branch
Munshigonj
Phone: 01730781191 (HOB)
Tangail Branch
Holding No: 414-417
Main Road, Tangail
Phone: PABX : (0921) 61248, 61271,
Direct : (0921) 61330
Fax: (0921) 61322
Tejgaon Branch
Phone: 02-8879157-8, 02-8879160
Fax: 02-8879156
Tongi Branch
Phone: (02) 9813811, 9813874
Fax: (02) 9813835
Uttara Branch
Model Town, Dhaka
Phone: (02) 8916233, 8950341-2
Direct : (02) 8950016
Fax: (02) 8924248
Swift: PRBLBDDH021
Wari Branch
Phone: (02) 9512085, 7118311, 7118169
Fax: (02)9512084
Chittagong Division
Agrabad Branch
Phone: (031) 716724-5, 7207018
Fax: 88-031-718971
Swift: PRBLBDDH015
Ashugonj Branch
Phone: 08528-74596, 74595
Fax: (08528)74594
New Eskaton Branch
Dhaka - 1000
Phone: (02) 9354044, 9354738, 9359683
Fax: 88-02-9354826
Savar, Dhaka
Tel : +88 02 7788240
Fax: +88 02 7788241
SWIFT: PRBLBDDHDEZ
Pallabi Branch
1/11 & 1/12, Pallabi
Mirpur, Dhaka
Phone: PABX : (02) 9000559, 9001913,
Direct : (02) 9013629
Fax: (02) 9001813
Panthapath Branch
Phone: (02) 9142879, 8128100, 8152852
Fax: 02-9137887
Badda, Dhaka
Phone: (02) 9840689, 8816938, 9840685
Fax: 02-8837531
Ring Road Branch
9129093
Fax: (02) 8117010
R/A, Dhaka-1209
Phone: (02) 9122374,8124258, 8153556
Fax: (02) 8121652
Swift: PRBLBDDH023
Savar Branch
Dhaka
Phone: (02) 7744862
Direct: (02) 7744861
Fax: (02) 7744863
SBC Tower Branch
Phone: (02) 9561221, 9559943
Fax: 88-02-9564189
Swift: PRBLBDDH024
Sirajdikhan Branch
Phone: 02-7628320, 7628330
Fax: 02-7744863
Annual Report 2013
344
Oxygen More Branch
Phone: (031) 2583181, 2583180
Fax: (031) 2583180
Phone: (031) 2553593, 2553591-2
Fax: (031) 2553594
Raozan Branch
Phone: (03026) 56214, 56168
Fax: (03026) 56215
Rajshahi Division
Baneswar Branch
Phone: 01755534922
Bogra Branch
Bogra-5800
Phone: (051) 78203, 67172
Fax: 051-61142
Swift: PRBLBDDH022
Nawabganj
Phone: (0781) 51125, 51126
Fax: (0781) 51127
Ishwardi Branch
Ishwardi, Pabna
Phone: (07326) 64435, 64650
Fax: 07326-64436
Joypurhat Branch
Joypurhat
Phone: (0571) 51156, 51157
Fax: (0571) 51158
Mohadebpur Branch
Phone: (07426) 75041, 75088
Fax: 07426-75044
Naogaon Branch
Phone: (0741) 62150, 62151
Fax: 0741-62152
Banshkhali Branch
Phone: (0303) 756222
Fax: (0303) 756223
Bhatiary Branch
(Uttar Bazar)
Phone: 031-2781261, 2781263
Fax: 031-2781262
Brahmanbaria Branch
Brahmanbaria
Phone: 0851-61698, 0851-61699
Fax: 0851-58849
Chauddagram Branch
Phone: (08020) 56364
Fax: (08020) 56362
Chaumuhani Branch
Phone: (0321) 54096
Fax: (0321) 56096
Comilla Branch
Phone: (081) 72611, 72612, 72610
Fax: (081) 72646
Cox's Bazar Branch
Phone: (0341) 51085
Fax: (0341) 51084
Dagonbhuiyan Branch
Dagonbhuiyan, Feni
Phone: (03323) 79248, 79249
Fax: (03323) 79250
Fatickchari Branch
Phone: (03022) 56006
Fax: (03022) 56006
Feni Branch
Road, Feni
Phone: (0331) 63091, 63092, 63093
Fax: (0331) 63092
Hajigonj Branch
Phone: (08424) 75110, 75111
Fax: (08424) 75111
Halishahar Branch
Mooring, Chittagong
Phone: (031) 2512039, 2512064
Fax: (031) 2512054
Hathazari Branch
Kachari Road
Phone: (031) 2601524, 2601525
Fax: 88-031-2601526
Phone: (031) 639855, 2861437
Fax: 031-2861434
Swift: PRBLBDDH027
Chittagong
Phone: (031) 753143, 2771752
Fax: (031) 753144
Jubilee Road Branch
Chittagong -4000
Phone: (031) 613939, 2850319
Fax: 031-618689
Swift: PRBLBDDH017
Phone: (031) 2502382, 2502381
Fax: (031) 2502383
Khatungonj Branch
Chittagong-4000
Phone: (031) 623213-14, 627297
Fax: 031-610848
Swift: PRBLBDDH002
Phone: (031) 2850771, 2850773
Fax: (031) 2850772
Swift: PRBLBDDH025
Muradpur Branch
Phone: 031-2557826, 2557824
Fax: 031-2557825
Chittagong
Tel: (031) 741341, 01714-116174
Fax: (031) 741330
Khulna Branch
7, Old Jessore Road
Khulna -9100
Phone: (041) 720071, 725100
Fax: 041-731195
Swift: PRBLBDDH004
Kushtia Branch
Kushtia
Phone: (071) 72431, 72432
Fax: (071) 72430
Satkhira Branch
Satkhira.
Phone: (0471) 62450, 63007
Fax: 0471-63001
Barisal Division
Barisal Branch
Phone: (0431) 64011,64012
Fax: 0431-63712
Swift: PRBLBDDH008
Rangpur Division
Dinajpur Branch
Phone: (0531) 51289, 51291
Fax: (0531) 51296
Rangpur Branch
More, Rangpur.
Phone: (0521) 64119, 64120
Fax: (0521) 64118
SME Branch
Aganagar SME Branch
Phone: (02) 7763273
Fax: 88-02-7763273
Bhujpur SME Branch
Phone: 01713-255771
Chatkhil , Noakhali
Phone: (03222) 75113
Fax: 03222- 75119
Natore Branch
Phone: (0771) 67001
Fax: (0771) 67002
Pabna Branch
Phone: (0731) 66426, 66425
Fax: (0731) 66399
Rajshahi Branch
Phone: (0721) 773981, 774582, 771874
Fax: 0721-773980
Swift: PRBLBDDH009
Sylhet Division
Barolekha Branch
(08622) 56520
Fax: (08622) 56522
Beanibazar Branch
Sylhet Phone: (08223) 56139, 56140
Fax: (08223) 56141
Biswanath Branch
Biswanath Bazar
Biswanath, Sylhet
Phone: (08244)56017
Fax: (08224) 56004
Court Road Branch
Phone: (0861) 53877,53878
Fax: 0861-53878
Swift: PRBLBDDH014
Habigonj Branch
62814, 62813 Email:
(0831) 62815
Road, Sylhet-3100
Phone: (0821) 717332, 728944
Fax: (0821)-717337
Islampur Branch
Sylhet.
Phone: (0821)761174, 761157
Fax: 0821-761115
Kadamtali Branch
Phone: (0821)728910, 841319
Fax: 0821-728630
Kulaura Branch
Kulaura, Sylhet
Phone: (08624)57081, 57082
Fax: 08624-57080
Nabigonj Branch
Osmani Road
Nabigonj, Habigonj
Phone: (08328) 56025, 56029
Fax: (08328) 56015
Sreemangal Branch
Phone: (08626) 71181, 71183
Fax: 08626-71182
Subid Bazar Branch
Phone: (0821) 727688, 727629
Fax: (0821) 2830942
Sunamganj Branch
Road, Sunamganj
Phone: (0871) 62516, 62515
Fax: (0871) 62514
Sylhet Branch
Phone: (0821) 721127, 710208
Fax: 0821-710673
Swift: PRBLBDDH006
Tajpur Branch
Tajpur, Osmaninagar
Balaganj, Sylhet
Phone: (08242) 56211, 56210
Fax: (08242) 56212
Upashahar Branch
Phone: (0821) 811366, 723524
Fax: (0821) 710094
Khulna Division
Daulatpur Branch
Daulatpur, Khulna
Phone: 041-2850877, 2850876
Fax: 041-2850875
Jessore Branch
Phone: (0421) 68815, 68814
Fax: 0421-68816
Swift: PRBLBDDH018
Phone: (0265) 9090
Fax: (0265) 9090
Phone: 029571896
Fax: 02-9571896
Phone: (04225) 71780
Fax: 04225- 71788
Subarna Rice Mill
Phone: 01730-373919
Phone: (08327) 56327
Fax: 08327-56343
Phone: (031)2573206
Fax: 031-2573205
Phone: (02) 9463343
Fax: 02-9463343
Posta SME Branch
Phone: (02) 9571896
Fax: (02) 9571896
Phone: (03822) 56396
Fax: 03822-56397
Sherpur SME Branch
Floor), Narayanpur
Sadar, Sherpur
Phone: (0931) 62176
Fax: 0931-62175
Phone: (02) 7656359
Fax: 02-7656362
Syedpur SME Branch
Sunamganj
Phone: 01713-255776
Takerhat SME Branch
Phone: 01713-255772
Phone: (0561) 52295
Fax: 0561-52538
(Singapore)
Tel : 65-6392 4996, 0065- 6392 4829,
0065-91963012, E-mail:
Fax : 65-6392 4838
Jurong East Branch
Tel : 0065-68994647, 0065-96432498
Fax : 0065-65617559
London Branch
Tel (Off) : 02076500005, 07939227610
Birmingham Branch
493 Coventry Road,
Birmingham, B10 0JS
Tel (Off) : 01217735553, 07956675296
Tel (Off) : 01616522444, 07956675297
Tel (Off) : 852-2529- 2710, 852-2529- 2719,
852-6274-2996
Tel (Off) : 02-7174716, 02-9555674
Cell : 01819-219496
Fax : 88-02-9559257
Tel (Off) : 02-9513396, 02-9513397
Fax : 88-02-9566912
Tel (Off) : 02-8828900, 02-8813788,
02-8813800/101, Cell : 01713-069905
Fax : 88-02-9886046
Adamjee EPZ Branch
Narayanganj
Phone: (02) 7692025-26, 7692024
Fax: (02) 7692027
Swift: PRBLBDDHAEZ
Asad Gate Branch
Dhaka
Phone: (02) 9125400,8142106,8142134
Fax: (02) 9122640
Ashulia Branch
Jamgora Bazar
Phone: (02) 7788290, 7788326, 7788325
Fax: (02) 7788291
Banani Branch
Phone: (02) 8815754, 9889868
Fax: 02-8853616
Swift: PRBLBDDH020
Banasree Branch
Banasree, Dhaka.
Phone: (02) 8399548, 8399591
Fax: (02) 8399547
Bangshal Branch
Phone: (02) 9561501, 7123480, 7113310
Fax: 7175185
Swift: PRBLBDDH026
Baridhara Branch
Dhaka-1212 Phone: (02) 9850376, (02)
9850392, 01730781181 (HOB) Email:
(02) 9850384
Bashabo Branch
(02) 7219205
Bashundhara Branch
Phone: PABX : (02) 8845214, 8845213,
Direct : (02) 8845215
Fax: (02) 8845214
Gulshan Branch
Gulshan Avenue
Dhaka-1212
Phone: (02) 9886171, 8815885
Fax: 02-9884977
Swift: PRBLBDDH016
Hemayetpur Branch
Phone: (02) 7742096, 01730781154 (HOB)
Fax: (02) 7742096
IBB Dilkusha Branch
Phone: (02) 9587494, 9577582, 9576414
Fax: 02-9567228
Swift: PRBLBDDH005
IBB Mirpur Branch
Dhaka-1216
Phone: (02) 8057681-2,8058371
Fax: 88-02-8075441
Ibrahimpur Branch
Kafrul, Dhaka-1206
02-8872503, 8872423
Fax: 02-8872501
Jamalpur Branch
Phone: (0981) 65360, (0981) 65 361
Fax: (0981) 65362
Jatrabari Branch
Phone: (02) 7552158, (02) 7552178
Fax: (02) 7552169
Road, Gazipur
Phone: (02) 9264135, 9264103
Fax: 88-02-9264097
Joypara Branch
Dohar, Dhaka.
Phone: 02-7768055, 02-7768053,
02-7768054
Fax: 02-7768052
Kawran Bazar Branch
Phone: (02) 8157288, 9124296-7
Fax: 88-02-9129004
Swift: PRBLBDDH010
Phone: PABX : 02-9470723, 9470771
Fax: 02-9471755
Bijoy Nagar Branch
Dhaka-1000
Phone: (02) 9335762, 9335732, 9334123
Fax: 02-9332639
Boalmari Branch
Phone: 06324-56132, 06324-56130
Fax: 06324-56139
Damudya Branch
8, Sonali Bank Road
Damudya, Shariatpur
Phone: (06023) 56396
Fax: (06023) 56390
Dhanmondi Branch
Phone: (02) 8622304, 9662704
Fax: (02) 9662705
Dhaka-1205
Phone: (02) 9662776-7, 9673783
Fax: 88-02-8622591
Swift: PRBLBDDH011
Faridpur Branch
Phone: (0631) 65133
Fax: (0631) 65128
-1000
Phone: (02) 9551682
Direct: (02) 7161146
Fax: 88-02-9553078
Swift: PRBLBDDH019
Ganakbari Branch
Savar, Dhaka-1340
Phone: (02) 7789379, 7788100
Fax: 02-7789378
Swift: PRBLBDDH014
Phone: (02) 8950997, 8991781
Fax: (02) 8931687
Kishoregonj Branch
Kishoregonj
Phone: (0941) 62590, Direct: (0941)
62592
Fax: (0941) 62591
Madhabdi Branch
Narsingdi-1604
Phone: (06251) 56682
Fax: 88-06257-56683
Mirpur-1 Branch
Dhaka-1216
Phone: (02) 8034126, 8034590
Fax: (02) 8034591
Mirzapur Branch
Phone: (09229) 56591
Direct: (09229) 56592
Fax: (09229) 56593
Mohakhali Branch
Phone: (02) 9850302, 9882291
Fax: 88-02-9886052
Swift: PRBLBDDH007
Motijheel Branch
Phone: (02) 7175491-2,9567225, 9562982
Fax: 88-02-9567223
Swift: PRBLBDDH001
Mouchak Branch
Phone: (02)8352831, 9347757
Fax: 88-02-9338883
Swift: PRBLBDDH013
Moulvi Bazar Branch
Phone: (02) 7313407, 7311017
Fax: 88-02-7318305
Swift: PRBLBDDH003
Mymensingh Branch
52391
Fax: (091) 52391
Narayanganj Branch
Phone: (02) 764689,7630150
Fax: 02-7630140
Swift: PRBLBDDH012
Shibpur Branch
Narsingdi
Phone: 06256-75130, 06256-75131
Fax: 06256-75134
Shimrail Branch
Phone: (02) 7691670, 7692912
Fax: (02) 7691671
Sreenagar Branch
Munshigonj
Phone: 01730781191 (HOB)
Tangail Branch
Holding No: 414-417
Main Road, Tangail
Phone: PABX : (0921) 61248, 61271,
Direct : (0921) 61330
Fax: (0921) 61322
Tejgaon Branch
Phone: 02-8879157-8, 02-8879160
Fax: 02-8879156
Tongi Branch
Phone: (02) 9813811, 9813874
Fax: (02) 9813835
Uttara Branch
Model Town, Dhaka
Phone: (02) 8916233, 8950341-2
Direct : (02) 8950016
Fax: (02) 8924248
Swift: PRBLBDDH021
Wari Branch
Phone: (02) 9512085, 7118311, 7118169
Fax: (02)9512084
Chittagong Division
Agrabad Branch
Phone: (031) 716724-5, 7207018
Fax: 88-031-718971
Swift: PRBLBDDH015
Ashugonj Branch
Phone: 08528-74596, 74595
Fax: (08528)74594
New Eskaton Branch
Dhaka - 1000
Phone: (02) 9354044, 9354738, 9359683
Fax: 88-02-9354826
Savar, Dhaka
Tel : +88 02 7788240
Fax: +88 02 7788241
SWIFT: PRBLBDDHDEZ
Pallabi Branch
1/11 & 1/12, Pallabi
Mirpur, Dhaka
Phone: PABX : (02) 9000559, 9001913,
Direct : (02) 9013629
Fax: (02) 9001813
Panthapath Branch
Phone: (02) 9142879, 8128100, 8152852
Fax: 02-9137887
Badda, Dhaka
Phone: (02) 9840689, 8816938, 9840685
Fax: 02-8837531
Ring Road Branch
9129093
Fax: (02) 8117010
R/A, Dhaka-1209
Phone: (02) 9122374,8124258, 8153556
Fax: (02) 8121652
Swift: PRBLBDDH023
Savar Branch
Dhaka
Phone: (02) 7744862
Direct: (02) 7744861
Fax: (02) 7744863
SBC Tower Branch
Phone: (02) 9561221, 9559943
Fax: 88-02-9564189
Swift: PRBLBDDH024
Sirajdikhan Branch
Phone: 02-7628320, 7628330
Fax: 02-7744863
Annual Report 2013
345
Oxygen More Branch
Phone: (031) 2583181, 2583180
Fax: (031) 2583180
Phone: (031) 2553593, 2553591-2
Fax: (031) 2553594
Raozan Branch
Phone: (03026) 56214, 56168
Fax: (03026) 56215
Rajshahi Division
Baneswar Branch
Phone: 01755534922
Bogra Branch
Bogra-5800
Phone: (051) 78203, 67172
Fax: 051-61142
Swift: PRBLBDDH022
Nawabganj
Phone: (0781) 51125, 51126
Fax: (0781) 51127
Ishwardi Branch
Ishwardi, Pabna
Phone: (07326) 64435, 64650
Fax: 07326-64436
Joypurhat Branch
Joypurhat
Phone: (0571) 51156, 51157
Fax: (0571) 51158
Mohadebpur Branch
Phone: (07426) 75041, 75088
Fax: 07426-75044
Naogaon Branch
Phone: (0741) 62150, 62151
Fax: 0741-62152
Banshkhali Branch
Phone: (0303) 756222
Fax: (0303) 756223
Bhatiary Branch
(Uttar Bazar)
Phone: 031-2781261, 2781263
Fax: 031-2781262
Brahmanbaria Branch
Brahmanbaria
Phone: 0851-61698, 0851-61699
Fax: 0851-58849
Chauddagram Branch
Phone: (08020) 56364
Fax: (08020) 56362
Chaumuhani Branch
Phone: (0321) 54096
Fax: (0321) 56096
Comilla Branch
Phone: (081) 72611, 72612, 72610
Fax: (081) 72646
Cox's Bazar Branch
Phone: (0341) 51085
Fax: (0341) 51084
Dagonbhuiyan Branch
Dagonbhuiyan, Feni
Phone: (03323) 79248, 79249
Fax: (03323) 79250
Fatickchari Branch
Phone: (03022) 56006
Fax: (03022) 56006
Feni Branch
Road, Feni
Phone: (0331) 63091, 63092, 63093
Fax: (0331) 63092
Hajigonj Branch
Phone: (08424) 75110, 75111
Fax: (08424) 75111
Halishahar Branch
Mooring, Chittagong
Phone: (031) 2512039, 2512064
Fax: (031) 2512054
Hathazari Branch
Kachari Road
Phone: (031) 2601524, 2601525
Fax: 88-031-2601526
Phone: (031) 639855, 2861437
Fax: 031-2861434
Swift: PRBLBDDH027
Chittagong
Phone: (031) 753143, 2771752
Fax: (031) 753144
Jubilee Road Branch
Chittagong -4000
Phone: (031) 613939, 2850319
Fax: 031-618689
Swift: PRBLBDDH017
Phone: (031) 2502382, 2502381
Fax: (031) 2502383
Khatungonj Branch
Chittagong-4000
Phone: (031) 623213-14, 627297
Fax: 031-610848
Swift: PRBLBDDH002
Phone: (031) 2850771, 2850773
Fax: (031) 2850772
Swift: PRBLBDDH025
Muradpur Branch
Phone: 031-2557826, 2557824
Fax: 031-2557825
Chittagong
Tel: (031) 741341, 01714-116174
Fax: (031) 741330
Khulna Branch
7, Old Jessore Road
Khulna -9100
Phone: (041) 720071, 725100
Fax: 041-731195
Swift: PRBLBDDH004
Kushtia Branch
Kushtia
Phone: (071) 72431, 72432
Fax: (071) 72430
Satkhira Branch
Satkhira.
Phone: (0471) 62450, 63007
Fax: 0471-63001
Barisal Division
Barisal Branch
Phone: (0431) 64011,64012
Fax: 0431-63712
Swift: PRBLBDDH008
Rangpur Division
Dinajpur Branch
Phone: (0531) 51289, 51291
Fax: (0531) 51296
Rangpur Branch
More, Rangpur.
Phone: (0521) 64119, 64120
Fax: (0521) 64118
SME Branch
Aganagar SME Branch
Phone: (02) 7763273
Fax: 88-02-7763273
Bhujpur SME Branch
Phone: 01713-255771
Chatkhil , Noakhali
Phone: (03222) 75113
Fax: 03222- 75119
Natore Branch
Phone: (0771) 67001
Fax: (0771) 67002
Pabna Branch
Phone: (0731) 66426, 66425
Fax: (0731) 66399
Rajshahi Branch
Phone: (0721) 773981, 774582, 771874
Fax: 0721-773980
Swift: PRBLBDDH009
Sylhet Division
Barolekha Branch
(08622) 56520
Fax: (08622) 56522
Beanibazar Branch
Sylhet Phone: (08223) 56139, 56140
Fax: (08223) 56141
Biswanath Branch
Biswanath Bazar
Biswanath, Sylhet
Phone: (08244)56017
Fax: (08224) 56004
Court Road Branch
Phone: (0861) 53877,53878
Fax: 0861-53878
Swift: PRBLBDDH014
Habigonj Branch
62814, 62813 Email:
(0831) 62815
Road, Sylhet-3100
Phone: (0821) 717332, 728944
Fax: (0821)-717337
Islampur Branch
Sylhet.
Phone: (0821)761174, 761157
Fax: 0821-761115
Kadamtali Branch
Phone: (0821)728910, 841319
Fax: 0821-728630
Kulaura Branch
Kulaura, Sylhet
Phone: (08624)57081, 57082
Fax: 08624-57080
Nabigonj Branch
Osmani Road
Nabigonj, Habigonj
Phone: (08328) 56025, 56029
Fax: (08328) 56015
Sreemangal Branch
Phone: (08626) 71181, 71183
Fax: 08626-71182
Subid Bazar Branch
Phone: (0821) 727688, 727629
Fax: (0821) 2830942
Sunamganj Branch
Road, Sunamganj
Phone: (0871) 62516, 62515
Fax: (0871) 62514
Sylhet Branch
Phone: (0821) 721127, 710208
Fax: 0821-710673
Swift: PRBLBDDH006
Tajpur Branch
Tajpur, Osmaninagar
Balaganj, Sylhet
Phone: (08242) 56211, 56210
Fax: (08242) 56212
Upashahar Branch
Phone: (0821) 811366, 723524
Fax: (0821) 710094
Khulna Division
Daulatpur Branch
Daulatpur, Khulna
Phone: 041-2850877, 2850876
Fax: 041-2850875
Jessore Branch
Phone: (0421) 68815, 68814
Fax: 0421-68816
Swift: PRBLBDDH018
Phone: (0265) 9090
Fax: (0265) 9090
Phone: 029571896
Fax: 02-9571896
Phone: (04225) 71780
Fax: 04225- 71788
Subarna Rice Mill
Phone: 01730-373919
Phone: (08327) 56327
Fax: 08327-56343
Phone: (031)2573206
Fax: 031-2573205
Phone: (02) 9463343
Fax: 02-9463343
Posta SME Branch
Phone: (02) 9571896
Fax: (02) 9571896
Phone: (03822) 56396
Fax: 03822-56397
Sherpur SME Branch
Floor), Narayanpur
Sadar, Sherpur
Phone: (0931) 62176
Fax: 0931-62175
Phone: (02) 7656359
Fax: 02-7656362
Syedpur SME Branch
Sunamganj
Phone: 01713-255776
Takerhat SME Branch
Phone: 01713-255772
Phone: (0561) 52295
Fax: 0561-52538
(Singapore)
Tel : 65-6392 4996, 0065- 6392 4829,
0065-91963012, E-mail:
Fax : 65-6392 4838
Jurong East Branch
Tel : 0065-68994647, 0065-96432498
Fax : 0065-65617559
London Branch
Tel (Off) : 02076500005, 07939227610
Birmingham Branch
493 Coventry Road,
Birmingham, B10 0JS
Tel (Off) : 01217735553, 07956675296
Tel (Off) : 01616522444, 07956675297
Tel (Off) : 852-2529- 2710, 852-2529- 2719,
852-6274-2996
Tel (Off) : 02-7174716, 02-9555674
Cell : 01819-219496
Fax : 88-02-9559257
Tel (Off) : 02-9513396, 02-9513397
Fax : 88-02-9566912
Tel (Off) : 02-8828900, 02-8813788,
02-8813800/101, Cell : 01713-069905
Fax : 88-02-9886046
Glossary
AD Authorized Dealer
ALCO Asset Liability Committee
ATM Automated Teller Machine
BB Bangladesh Bank (Central Bank of Bangladesh)
Bank Prime Bank Limited
B/L Bad/Loss
BAS Bangladesh Accounting Standard
BIBM Bangladesh Institute of Bank Management
CRR Cash Reserve Requirement
CRG Credit Risk Grading
CSR Corporate Social Responsibility
CPI Consumer Price Index
CDBL Central Depository Bangladesh Limited
CBS Core Banking Software
CRISL Credit Rating and Information Services Ltd.
DCFCL Departmental Control Function Check List
DEPZ Dhaka Export Processing Zone
DP Depository Participants
EPS Earning Per Share
EPZ Export Processing Zone
FY Fiscal Year (July to June)
GDP Gross Domestic Product
HOB Head of Branch
ICAB Institute of Chartered Accountants of Bangladesh
IT Information Technology
IMF International Monetary Fund
IAS International Accounting Standard
IPO Initial Public Offering
LC Letter of Credit
MBID Merchant Banking and Investment Division
MTMF Medium Term Macro Economic Framework
MANCOM Management Committee
NII Net Interest Income
NPL Non Performing Loan
NCB Nationalised Commercial Banks
OBU Offshore Banking Unit
PCB Private Commercial Banks
PBL Prime Bank Limited
PECL Prime Exchange Co. Pte.Ltd.
PBIL Prime Bank Investment Ltd.
PBSL Prime Bank Securities Ltd.
POS Point of Sale
PV Present Value
RWA Risk Weighted Assets
RMG Readymade Garments
ROA Return on Assets (excluding contingent items)
ROE Return on Equity
R&D Research and Development
ROD Rights Share Offer Document
SAFA South Asian Federation of Accountants
SME Small and Medium Enterprise
SOP Standard Operating Procedure
SLR Statutory Liquidity Requirement

CEOs Statement
On behalf of Prime Bank Limited, I am proud to
present our rst Sustainability Report according
to Global Reporting Initiative (GRI), in which we
transparently present and discuss our social,
economic and environmental practices,
performance and challenges. At Prime Bank,
we are aware that our strength and resources
should be used to do more for the benet of our
society and the planet. We mostly use this
strength to continue with the investments that
we make as a team in our society and the future
of our country. In line with this concept, we
constantly review and develop all of our
operations, business processes and values in a
way that allows for further sustainability.
As a leading local corporation, it is our
responsibility to be pro-active and
communicate how we are committed to
building a strong organization where
sustainability is embedded in all our activities
and operations. Our association with the GRI
has just begun from this year. GRI enables
transparency and accountability through a
worldwide, multi-stakeholder network with
close to 3,000 global organizations using the
GRI framework to report their progress on
sustainability in a comprehensive manner. Our
journey starts with our strong values and
governance system. Our focus on integrity and
trust remains an important pillar of our success
and the entire Prime Bank family continues to
live by the Code of Conduct to guide our
professional and personal lives. PBL embodies
the philosophy of building sustainable
businesses that are rmly rooted in the
community and demonstrate care for the
environment. At PBL, sustainability is
demonstrated through responsible
governance, reliable and robust work
processes and progress toward tangible
objectives.
Corporate social responsibility is more
important than ever in the current economic
climate. Prime Bank makes every effort to play
an active part as a corporate citizen, taking into
consideration stakeholder needs. One of our
347

priority stakeholders are our customers and
serving our customers at the utmost standard
and ensuring the safety of their savings are our
primary concern; therefore PBL follows a
cautious approach and nancial policy that give
priority to customer safety. Meanwhile, we
strive to offer innovative products and services
that satisfy client needs. I believe that this
strategy can help us preserve our existing
customers and increase new ones, a belief
substantiated by our outcomes.
Innovation remains an utmost priority for us. We
are crafting products and services that our
customers want and need. We are developing
new, more convenient networks through which
the clients can bank with us. By offering
customers the option to use their mobile
phones, tablets or computers to manage their
nances, we are becoming a greener, more
procient bank. This in turn will help us to
decrease costs, reduce our impact on the
environment and most importantly, ensure our
sustainability.
We strengthened our internal control and risk
management culture to simplify the way in
which we do business, delivering greater
precision. This will set the stage for increased
protability and more sustainable customer
relationships. We have also taken initiatives to
ensure that when assessing credit risks of
customers, environmental and social issues
are also taken into consideration. This will help
to ensure that environmental and social factors
are taken into consideration before giving loans
to customers.
One of our priorities of maintaining a
sustainable future is to take steps to preserve
the environment. Prime Bank has also taken
initiatives to build as many Green Branches
as possible in the upcoming year. Up to 2013,
we have already set up around 12 branches
according to policies set up by Bangladesh
Bank, and we expect to build numerous more
branches in the upcoming year. The bank is
also taking measures to ensure that we can
become a paperless ofce in the future. We
have a vigorous plan set out for the upcoming
year to take even larger steps and enlarge our
portfolio in the Green Banking sector.
Considering the sustainability of our earth as
equally important as the development of the
countrys economy, PBL will continue to
provide its involvement in the economy and the
society within the frame of a universal
approach. We realize that the obligation levied
upon us by being a leader is a heavy one. We
possess the human resource, professional
competencies, and nancial resources that are
essential to achieve this heavy responsibility.
And we also recognize that a sustainable earth
will remain indenable in the absence of ethical
values. Prime Bank puts into practices that
make us proud in corporate governance and
ethical values, and regards it a duty towards its
stakeholders to achieve compliance with
legislations. Although our sector is one with a
relatively low direct impact upon the
environment, we are focused on setting Prime
Bank apart and also maximizing its contribution
through our innovative practices that we carry
out within the scope of our products and
services. We take the environmental factor into
consideration in all of our activities, and always
aim to minimize the indirect environmental
impact.
I would like to mention that due to the
economic environment in the country, along
with the political unrest, it has been a tough

348
year for the banking industry. Among all these
hurdles, Prime Bank has been able to soar
through its business and been able to ensure
sustainable progress. I am hopeful that the
upcoming year will be a bigger year for the
bank regarding sustainability, with quite a few
upcoming projects regarding Green Banking
that will be initiated.
I would like to reinstate though that our ambition
has not changed - it is to be a leader in the
industry. That does not necessarily mean being
the biggest earner in the market. It is about
being the most recommended by our
customers, our business partners and our
intermediaries, and being the preferred
employer in the industry. It is essential that each
and every one of our customers feels that he or
she can - and should - recommend us to his or
her family and friends. Attaining this
most-recommended rank in our sector is, in my
sight, the most vital achievement that we can
and should achieve in the near future. This
means our customers have to know us; that
they have a clear understanding of what we
can do to help them; that they are satised with
our products and the level of service we
provide; that they have a consistently positive
experience when they interact with us; that
they trust us for their necessary nancial needs
and then recommend us. In my view, this is
how we will measure success and how the
work that is underway across our organization
will ultimately be rewarded.
I am condent that the steps we have taken to
construct a greener, stronger bank have placed
us to achieve sustainable revenue and
commercial growth in the coming year. I am
excited about the opportunities in responsible
nancing and investing and supporting
businesses involved in renewable energy and
green developments. I believe this is an area in
which Prime Bank can make the most
meaningful contribution to climate change. We
are well equipped to achieve these objectives
thanks to our outstanding people. Their hard
work carried out in all branches, combined with
our innovative products, our cost discipline and
our risk management culture all accommodate
to convey a strong competitive advantage. For
all of these reasons, I am convinced that in
2014 we will continue to be successful in
implementing our strategy and realizing our
ambition to be one of the strongest banks in
Bangladesh.
Last but not least, I would like to take this
opportunity to be grateful to our Board of
Directors, our senior management team, our
employees, as well as our various
stakeholders, for their involvement in
accomplishing nancial and reputational
success, and for empowering us to deliver our
results in a responsible and gradually
sustainable way. I would like to express our
promise to continue our operations, aligned
with internationally recognized standards of
responsible operation, aiming to meet and
surpass the requirements and expectations of
our stakeholders and therefore support the
growth of a more sustainable business
environment and society at large.
Md. Ehsan Khasru
349
The Prime Bank Limited was incorporated as a
public company in Bangladesh under
Companies Act 1994 with the registered ofce
of the company at 119-120 Motijheel C/A,
Dhaka-1000. It commenced its banking
business with one branch from April 17, 1995
under the license issued by Bangladesh Bank.
The number of countries where Prime Bank
operates is 4, and those are Bangladesh,
Singapore, Hong Kong and the United
Kingdom. Prime Bank has taken the initiative to
report on the guidelines based on GRI 3.1, and
the index has been provided at the end of the
report.
About Prime Bank Limited

Prime Bank Limited aims to adapt to the
changing environment in the Bangladesh
banking sector. To ensure that it has already
worked on changes in various areas of its
policies over the past few years. In 2013, the
bank has taken many initiatives for future
prosperity, but the nale is not yet in prospect.
Prime Bank has always been keen to create a
more distinct prole for itself in the areas of
sustainability and corporate social responsibility
(CSR).
Prime Banks approach to sustainability is that it
believes in a green economy. A green
economy is one that creates nancial wealth
and social improvements, while promoting the
natural environment instead of diminishing it.
Prime Bank believes that following a green
economy conception will not only add value to
the planet, but also generate new openings
and lifestyle benets for the general public, and
new sources of sustainable revenue for the
business.
Business Strategy
351
352
People
With a growing number of young energetic
people coming into the workforce, Prime Bank
needs to expand its existing industries and build
new ones to meet employment needs. A green
economy promotes diversication in some of the
most critical sectors for global competitiveness,
while contributing to fast-paced job creation.
Prime Bank is trying to capture the brightest
young minds in the country, and motivate them
towards a more green economy which will
enhance the country as a whole.
Planet
A green economy will help the environment and
accomplish ecological sustainability. Benets of
a green economy will include reduced
resource depletion and negligible pollution of the
earth, water and air.
Prot
Potential economic gains are wide-ranging
deriving prots from environmental issues and
natural stewardship, instead of viewing them
purely as cost-centers. Any company in the
world can save costs and maximize earnings
just by reducing its fuel, electricity and water
consumptions.
But beyond prots, environmental innovation is
now a focal point for competitiveness.
Customers demand nowadays is driving the
development of products and services that
reduces our environment impacts, and creates
outstanding opportunities.
Risks
Prime Bank enhanced its forward-looking,
upbeat attitude and organized disciplined
approach to managing risk. The bank reviewed
risk and control frameworks to ensure that risk
appetite, beliefs and behavior as well as
accountability for risk in the changing
environment remain vibrant to everyone in the
bank. We explicitly acknowledged and
communicated the margins within which we can
continue to function productively, sustain
protability and increase our rating and client
satisfaction
The risks of failing to comply with the ideologies
of conducting sustainable business as well as
other typical risks in PBLs processes are
monitored regularly. According to Prime Banks
strategy, factors ensuring the Banks strength
are of fundamental signicance for attaining the
plans it has adopted: maintaining a solid capital
base, a safe level of liquidity, effective risk
management, continuous cost control and
enhanced processes. All these factors form the
foundation for achieving the Banks business
objectives. Having concern for volatile business
conditions and the likelihood of other types of
risks (market, credit, liquidity and operational)
occurring, if the results attained differ
considerably, strategies will be reviewed
accordingly and steps taken to ensure that the
Bank stays sustainable in the future.
Strategies
Prime Banks Five Pillars for Sustainable Business
Stakeholder Engagement: By engaging with the
expertise of our stakeholders employees,
vendors, customers, communities and
governments we can steer and develop
solutions together.
Financial Adaptation: Sustainable nance
means bringing sustainability into nance, and
nance into sustainability. Only a cohesive
approach will create meaningful value for the
organization. Prime Bank will steer its effort
toward achieving this goal.

353
Market Change: As the market for sustainable
facts, news and analytics matures, we want to
propel demand and proactively answer to
developing customer requirements.
Operational Distinction: One of the ways that
Prime Bank operates is that the Bank believes
sustainability creates worthy business sense. The
Bank constantly tracks innovative explanations
and continuously challenges itself to redene
business as usual.
Thought Direction: Prime Bank will be
revolutionary and innovative in implementing a
sustainable vision and policy that is practically
applicable for us and our stakeholders.
Dening Report Content
Prime Bank has taken the initiative for the rst
time to report in accordance with the GRI
Sustainability Reporting Guidelines G3.1 version
of the Global Reporting Initiative (GRI), which is a
worldwide-recognized reporting establishment.
In line with the transparency principle, the report
comprises the initiatives we took in sustainability,
the outcomes we accomplished and our
commitments. The bank has selected three
areas of Corporate Social Responsibility areas
which are essential to sustainable business, and
they are in the economic, environmental and
social eld.
Materiality
The main issue regarding materiality that Prime
Bank focused on when preparing this report
was our concern for our stakeholders. The key
to a sustainable business is to maintain a good
liaison with our stakeholders, and that was our
focus for preparing the sustainability report. Our
foremost material issues that we identied were:
1. Accuracy to our information services.
2. Accuracy and balance of our reporting gures.
3. Focusing on environmental and social concerns.
4. Constructing a talented and diverse workforce.
5. Decreasing our effect on the environment.
6. Supporting the communities where we live and work.
7. Ability to continue to innovate.
8. Ability to provide superior customer service and support
9. Ability to remain competitive in the banking industry.
354
Prime Bank is working hard to make our
information more transparent and accurate. We
recognize that there is always room for
improvement and we are taking every step
possible to innovate and provide more valuable
information to our stakeholders.
Prime Bank has taken the initiative for the rst
time to report in accordance with the GRI
Sustainability Reporting Guidelines G3.1
version of the Global Reporting Initiative (GRI),
which is a worldwide-recognized reporting
establishment. In line with the transparency
principle, the report comprises the initiatives we
took in sustainability, the outcomes we
accomplished and our commitments. The bank
has selected three areas of Corporate Social
Responsibility areas which are essential to
sustainable business, and they are in the
economic, environmental and social eld.
The main issue regarding materiality that Prime
Bank focused on when preparing this report
was our concern for our stakeholders. The key
to a sustainable business is to maintain a good
liaison with our stakeholders, and that was our
focus for preparing the sustainability report.
Our foremost material issues that we identied
were:
1. Accuracy to our information services.
2. Accuracy and balance of our reporting gures.
3. Focusing on environmental and social concerns.
4. Constructing a talented and diverse workforce.
5. Decreasing our effect on the environment.
6. Supporting the communities where we live and work.
7. Ability to continue to innovate.
8. Ability to provide superior customer service and support
9. Ability to remain competitive in the banking industry.
Report Content
Prime Bank is working hard to make our
information more transparent and accurate. We
recognize that there is always room for
improvement and we are taking every step
possible to innovate and provide more valuable
information to our stakeholders.
All data and information in the Report for 2013
covers all banking activities and locations of
Prime Bank Limited, Bangladesh. The
boundary of the report does not cover activities
of our subsidiaries or our suppliers in other
countries. The report will cover strategic
decisions and activities taken by the Bank in
2013 for a sustainable future.
The limitation of scope that was present on
reporting was due to the fact that PBL will be
reporting for the rst time on GRI 3.1. All facts
and gures have been stated at actual, and any
estimates that have been used have been
given with proper disclosures.

355
Prime Bank also realizes there are quite a few
restrictions on this report, such as getting
external assurance for the GRI 3.1 Report and
setting quantitative targets in all regions
described within this Report.
The report includes nancial data and
information on all branches of Prime Bank
Limited, but it does not extend to its
subsidiaries. The subsidiaries of Prime Bank
are Prime Exchange Co. Pte. Ltd., Singapore,
PBL Exchange (UK) Ltd., PBL Finance (Hong
Kong) Ltd., Prime Bank Investment Ltd. and
Prime Bank Securities Ltd. The subsidiaries in
the UK and Singapore act as remittance
houses for the bank, and the Hong Kong
branch works as a nance house, hence they
dont need to be considered for the report as
these branches have no material activity
regarding sustainability. Prime Bank Investment
Ltd. and Prime Bank Securities Ltd. are local
subsidiaries who also have no material issues
regarding sustainability, hence they are also not
considered for this report.
Prime Bank views it as a signicant future
priority to support the facts provided in the
report and make it completely reliable by
systematizing our data gathering processes as
we move forward. In order to certify that the
reported data is trustworthy, we have
incorporated quantiable gures and have tried
to limit the use of estimations wherever
possible. The facts are grounded either on the
strongest statistics obtainable or on sample
assessments. The process of describing the
reports content was grounded on the GRIs
reporting principles of materiality, stakeholder
inclusiveness, sustainability framework and
completeness.
External assurance could not be provided for
the report as there are no assurance rms that
provide the service in Bangladesh. Prime Bank
is taking initiatives to liaison with an assurance
rm abroad to certify its report for next year.
Board of Directors
Prime Bank obeyed with appropriate guidelines
of Bangladesh Bank and Bangladesh
Securities and Exchange Commission while
establishing its board of directors. The
numbers of Board members are 20 out of
whom one is an Independent Director and two
members are from the Depositors. All members
of the Board of Directors are of high
competence, with academic and professional
qualication in the eld of business. The Board
praises the banks budget and business plans
and evaluates those on a monthly basis so as
to give guidance as per changing economic
and market environment. The Board also
assesses the strategies and manuals of several
segments of businesses in order to establish
effective risk management in credit and other
key areas of operations.
Executive Committee
At PBL, the Board has an Executive Committee
which consists of 7 members. The Executive
Committee evaluates policies and guidelines
Committees in PBL
356
issued by Bangladesh Bank concerning credit
and further operations of the banking industry.
It ensures the implementation of the policies
and guidelines through management. The
Executive Committee accepts the credit
proposals as per the accepted policies of the
Board.
Audit Committee
In compliance with the guidelines of Bank
Companies Act & BSEC directives, the Audit
Committee has been functioning as a
sub-committee of the Board of Directors with 5
members. The Audit Committee has been
supporting the Board in safeguarding that
nancial statements reect a true and fair view
of the state of concerns of the bank. It also
carries out the oversight responsibilities for
implementation and compliance of different
policies formulated by the Board and the
Regulators.
Duties and Responsibilities
Identifying different risks and introduce and
implement proper strategies to control
those risks, review existing risk
management principles & procedures and
take corrective measures if necessary.
Ensure appropriate organizational structure
for risk management
Form separate committees at
Management level for compliance of
instructions under risk related guidelines
and supervision of their activities.
Review risk management policies and
guidelines, review loan approval limit and
submission to the Board for necessary
revision each year.
Examine and approve the preservation of
data and reporting implemented by the
management. Ensure implementation of
approved systems.
Inform the Board of Directors about the
summary of minutes of meetings of the
committee.
Submit decisions/recommendations of the
Committee to the Board on quarterly basis.
If sought by the committee, internal and
external auditors will submit evaluation
report to the committee.
Shariah Supervisory Committee
Operations of Islamic banking branches of PBL
are supervised by Prime Bank Shariah
Supervisory Committee, comprising of a pool
of Shariah experts and renowned economists
of the country. The basic functions of the
committee are to offer views on matters related
to Islamic banking operation of the bank from
time to time and to assist the Board of Directors
by advising them on matters relation to
Shariah. Their recommendation of Shariah
Principles is strictly respected by the Board to
run Islamic banking operation of the bank.
Asset Liability Committee (ALCO)
The Asset-Liability Committee (ALCO) is
chaired by the Managing Director and is
responsible for the daily liquidity and cash
management. The ALCO reviews reports on
liquidity risk, market risk and capital
management and takes decisions accordingly.
It is also responsible for deposit-pricing
strategy for the local market and appraises
liquidity contingency plans for the Bank.
Management Committee (MANCOM)
The Management Committee is (MANCOM)
responsible for the global management of
PBLs operations. MANCOM consists of the
Managing Director, Deputy Managing Directors
and Head of Divisions. MANCOM appraises
the Banks nancial data, position in the sector,
protability of business units, and new
business developments. Based on the Credit
Committees analysis and observation, the
proposal will be forwarded to the Managing
Director, Executive Committee or Board of
Directors according to delegation.
Credit Committee
The Credit Committee is made up of
knowledgeable individuals that that examines
loan offers in terms of compliance with legal
regulations, banking principles, the Banks
goals and loan policies. The committee will
accept or decline the credit application and will
put observations accordingly.

357
The Chairman of the Board and the Managing
Director are two of the highest governing
bodies in Prime Bank Limited. The Chairman is
not an executive ofcer of the company, but the
Managing Director is an executive of the bank.
The Chairman of the Board of Directors does
not possess the jurisdiction to apply policy
making or executive authority, and also shall
not interfere in the administration or operational
and routine affairs of the bank. The Chairman is
responsible for leading the board and
overseeing the entire functioning of the bank as
per guidelines of the bank.
The Managing Director of the bank shall remain
accountable for accomplishment of nancial
and other business targets by means of
business plans, efcient implementation and
prudent administrative and nancial
management. The Managing Director leads the
bank by implementing strategic plans in the
most efcient way possible. The term for a
Managing Director is 3 years, with the
possibility of re-election for another term.
Prime Bank operates with a unitary board
structure, which consists of a Board of
Directors with non-executive directors and
executive directors. The board of directors
consists of 16 non-executive directors, 3
independent directors and an executive
director. Of the 20 members of the Board of
Directors in the bank, 5 members are female
and the rest of the members are male.
Independent directors do not have any
shareholding in the company; meanwhile
non-executive directors are not involved in the
daily transactions of the bank. Non-executive
directors are involved in the banks business
plans and gives direction for the bank taking
into consideration the economic and market
environment.
The Board of Directors is authorized to provide
effective governance based on an ethical
basis, to ensure the company remains a
responsible corporate citizen and the
companys ethics are efciently managed. The
Managing Director of PBL is the formal leader
of the code of ethics, and is ultimately
accountable for integrating its spirit throughout
the banks operations. The Audit Committee
takes responsibility for the internal reporting of
ethics-related incidents to management.
The Board of Directors is always members of
high caliber, with excellent academic
qualications and numerous years of
experience in the banking industry. Prime Bank
ensures that all members of the Board are
competent and knowledgeable individuals with
experience from various industries, which gives
a good diversity among all members. The
Managing Director is normally selected on the
basis of having vast knowledge and experience
in the banking industry. Overall, the value of
education and experience is extremely valued
in Prime Bank Limited and is also the basis of
selecting members of the highest governance
bodies.
The mechanism for shareholders to reach the
board is through the annual general meeting.
Shareholders can raise their concerns about
the company or provide recommendations
358
through the AGM. After getting feedback from
the shareholders at the AGM, the board takes
initiatives to implement their recommendations
accordingly. Shareholders can also express
their opinion by emailing the bank through
Prime Banks website.
The way that employee concerns are raised to
upper management is through Managers
Conferences. The Managers Conference is an
open forum for all Head of Branches to raise
questions and also get solutions from the most
senior management of PBL. The forum helps
management to understand employee
concerns, and take appropriate decisions in
the future.
Conict of interest is a very sensitive issue in
the banking sector, and is monitored very
strictly by Bangladesh Bank. According to
section 27 of the Bank Companies Act, 1991,
all loans to directors are prohibited, and Prime
Bank ensures that it follows the regulation. The
bank has a Code of Conduct for all employees,
ofcers and directors. It denes that all
employees or ofcers must, in the execution of
their duties, put the interests of Prime Bank
Limited ahead of their own or those of third
parties. They must also avoid placing
themselves in a conict of interest situation,
either real, potential or apparent. The codes of
ethics and conduct prohibit, among others,
certain personal trading deemed conictual,
including receiving certain gifts and using any
advantage, information or interest related to the
bank that would be incompatible with the
professional duties and responsibilities of an
employee.
The audit committee and executive committee
exist to ensure that conict of interests do not
rise as well. The audit committee ensures that
all transactions in the business are being done
ethically and prociently. The executive
committee is responsible for the credit policies
of the bank and ensures that there wont be
any conict of interest issues among the
clients.
Ultimate accountability and responsibility for
sustainable development rests with the
Executive Committee. PBLs Executive
Committee is responsible for executing group
strategy, and also evaluates and provides
direction on all relevant sustainability issues.
The Executive Committees obligation regarding sustainability issues is to guide and monitor:
Matters concerning social and economic development.
Labor and employment policies, practices and procedures.
Environmental impacts.
Consumer relationships.
Ethical conduct.
Prime Bank Limited evaluates itself by the
strategies, objectives and budgets that the
Board has approved. The board sets
challenging targets for the bank, and the
company is evaluated on how well the targets
are achieved. The Board mostly sets targets
based on economic performances, but also
oversees environmental and social issues as
well. The bank up to now has performed well
and achieved as much as possible to the
Boards expectations.
The precautionary principle is not applied

359
directly or openly throughout the organization,
instead Prime Bank Limited assesses loans
regarding their impact on the environment or
any other social factors. The bank always has
quite a lot of Corporate Social Responsibility
(CSR) events throughout the year, and always
tries to help preserve the environment and
communities throughout the entire country.
Hence, Prime Bank Limited takes into
environmental and social factors and not only
economic factors when it does business with
clients.
Prime Bank Limited contacts its stakeholders
on a regular basis. As part of its CSR efforts, it
qualies shareholders, Bangladesh Bank and
other regulators, employees, customers,
suppliers, society and the natural environment
as its stakeholders. Contacts are periodic, but
sometimes prompted by specic events when
communication would be on a regular basis.
Stakeholder Engagement
360
Frequency of Dialogue with Shareholders
Stakeholder Communication channels

Frequency of dialogue

Shareholders and Analysts

Bangladesh Bank and
other regulators

Customers

Employees

E-

Society

Competition and training

Media

-

Once a year
Several times a year
Ongoing
Ongoing
Ongoing
Ongoing
Ongoing
On a daily basis
Ongoing
Monthly/quarterly/yearly and
ad hoc
Ongoing
Ongoing
Quarterly/Annually
Ongoing
Ongoing
At least a dozen a year
At least a dozen a year
Ongoing
Ongoing
Ongoing
Suppliers
General Meeting of Shareholders
Conferences
Meetings
Stock exchange and press releases
Contact through Internet, e-mail and
phone
Periodic Meetings
Regular Reports
E-Mail
Phone Calls
Website
Branches
Website
Information on statement
Satisfaction Surveys
Intranet
Website
Internal Meetings
Corporate Events
mail
Website
Conferences and seminar
Meetings
Website
Press Con
ference
Press Release
Telephone
E mail
Periodic Meetings


361
Stakeholders issues raised and actions taken
Stakeholders Issues Raised Action Taken by PBL

Shareholders
Transparent activity, swift and
smooth access to information
regarding the Bank.
PBL ensures that the annual reports
have been presented in the most
transparent way possible. The bank
makes sure that there is efcient
exchange of information through
communication with shareholders.
Bangladesh Bank
and other regulators

Proper compliance with guidelines
set by authorities.
Submitting reports on a timely
basis according to guidelines.
VAT and tax calculations submitted
precisely and timely
PBL thoroughly conform to all
associated laws and regulations in all
of its act ivities. PBL follows forums,
conferences, and press news to
ensure that the bank is up to date with
all legislations. The bank closely
monitor developments related to the
banking industry and present its
opinions on legislation amendments to
related author ities. PBL has always
ensured all reports are submitted on a
timely basis with utmost compliance.
Employees Steadiness of employment and
professional growth opportunities,
fair salary and bonuses and
responding to requests submitted
by employees.
PBL has an ofcially approved human
resources policy with assessable goals
that are observed regularly. The bank
takes initiatives to research on
employee needs, motivation and
satisfaction. The HRD department also
safeguards that various channels of
contact exist s among employees and
management.
Customers High quality of products and
services offered, fair consumer
practices, safety of deposited fund
and ease of communication with
the Bank.
PBL always tries to offer competitively
priced products and superior quality
services that are in line with the clients
requirements. The bank uses
techniques that ensure fair and secure
management of client funds and also
makes sure that there are frequent
contacts with customers.
362
Communication Channel among Stakeholders
of Prime Bank Limited
Society
Website
Competition and training
Conferences and seminars
Meetings
Bangladesh Bank and
other regulators
Periodic meetings
Regular reports
E-mail
Phone calls
Website
Media
Website
Press conferences
Press releases
Telephone
E-mail
Shareholders and
analysts
Annual General Meeting
Conferences
Meetings
Stock exchange and press
announcements
Website
E-mail
Phone calls
Suppliers
Periodic meetings
Phone calls
E-mail
Employees
Internet
Website
Internal Meetings
Corporate Events
E-mail
Customers
Branches
Website
Information on statement
Satisfaction Surveys
Prime Bank Limited

363
Prime Bank Limited identies stakeholders on
the basis of which stakeholders have an impact
on the activities of PBL and the impact that PBL
has on the stakeholders. This allows the bank
to identify key stakeholders that interact with
the organization.
It was identied that shareholders, Bangladesh
Bank and other regulators, employees,
customers, suppliers, society and the natural
environment were key stakeholders for the
bank.
Shareholders
Customers
Employees
Suppliers
Society
Competitors
Business
Organization
Students
Public Opinion
Auditors
Business Analyst
Media
Environment
NGO
Bangladesh Bank and
other regulators
Impact of the Stakeholders on the activities of PBL
Low Medium
Focus Inform Monitor Support
M
e
d
i
u
m
High
High
I
m
p
a
c
t

o
f

P
B
L

o
n

t
h
e

S
t
a
k
e
h
o
l
d
e
r
s
Mapping of Stakeholders of Prime Bank Limited
364

Anti-fraud Controls in PBL
Prime Bank has always been very effective in
establishing systems of anti-fraud controls
among the organization. PBL established the
Anti-Money Laundering Department (AMLD) to
ensure that any type of fraud or corruption is
detected at an early stage. AMLD seeks to
prevent any misuse of the nancial system for
the purposes of money laundering, corruption,
fraud and other criminal offences that might
endanger the assets of PBL. AMLD operates in
a way such that whistleblowers in the company
are protected against any type of threats and is
reachable to all employees in the organization
for reporting on any irregularities. AMLD also
trained 219 employees during 2013 on
anti-money laundering issues and how to take
action if any types of money laundering, fraud
or corruption are detected. AMLD inspects
branches on surprise visits and checks that all
employees are taking precautionary steps to
ensure that fraud is detected. Prime Bank is
always taking steps to ensure that there are no
major occurrences of fraud or corruption
among the organization.
About this report
This report was entirely compiled by the
Financial Administration Division (FAD), Green
Banking Cell (GBC) and Human Resource
Division. Any queries regarding this report can
be addressed to Mr. Shahjahan Majumder, EVP
and Head of FAD and Mr. Farhan Alam, Senior
Ofcer, FAD.
ECONOMICAL
ASPECT
366
Economic Aspects
Economic Value Created
Particulars Amount in Taka
2013 2012

Direct economic value generated: revenues.
12,883.08

13,491.95
Direct economic value distributed: operating costs.
2,458.32

2,256.37
Direct economic value distributed: employee wages and benets.
2,950.61

2,684.74
Direct economic value distributed: payments to providers of capital.
935.77

779.81
Direct economic value distributed: payments to governments (by country).
5,121.11

4,857.88
Direct economic value distributed: community investments.
171.25

230.61
Economic value retained
(=Economic value generated less (=minus) Economic value distributed).

79,969.13

66,648.94
Benefit plans for PBL
Prime Bank Limited provides the following benefit plans for its employees upon retirement according to individuals
entitlement:
1. Provident Fund
2. Welfare Fund
3. Benevolent Fund
4. Gratuity
These funds are controlled by a Trustee Board, and decisions regarding investing and encashment of these funds are
based on the Boards judgment. The Trustee Board works to ensure that the employee on retirement will get full coverage
of their portion of the fund. Provident Fund contributions are made by employees (10% of basic salary per employee) and
employer (Same amount as paid by employee). Welfare Fund and Benevolent Fund are deducted from salary based on
designation of the employee. The fund position as of December 31st, 2013 was as follows:
PRIME BANK LIMITED
Name of the Funds Amount (BDT) as on
31.12.2013
Prime Bank Limited Employees' Provident Fund
1,307,974,063.07

Prime Bank Limited Employees' Gratuity Fund
762,150,121.83
Prime Bank Limited Employees' Welfare Fund
94,196,444.48
Employees' Benevolent Fund
9,549,677.46

367
List of Donations for the Year 2013
Some sponsorship during the year 2013

Sl
No.
Beneciary

Particulars

Amount in BDT

01 Tamanna Bedding Store Distribution of Blankets
4,920,000/-
02 Munsef Bari Jaam-E-Masjid Donation to Mosque
200,000/-

03 Jamiatul Falah Jatio Mosque,
Chittagong
Donation for development work of mosque
200,000/-

04 Debendranath Biswas Donation as contribution towards educational
expenses of children
200,000/-

05 The Institute of Bankers,
Bangladesh
For purchasing of oor space
3,745,000/-
06 Diabetic Samity Luxmipur Construction of Hospital 2,000,000/-
07 Bangladesh Association of
Banks
Financial support for affected families of the
victims of building collapse at Savar (Rana
Plaza)
10,000,000/-

08 FBCCI For 05 Formalin De-hydrate machine 680,680/-
10 NSBP Faridpur District Branch For educational cost of its students
10,000/-
09 Golap Hossain For treatment purpose of his son who had
been suffering Blood Cancer
20,000/-

10 Khandakar Moniruzzaman For treatment purpose of his wife who had
been suffering from Breast Cancer
15,000/-
11 Department of Banking and
Insurance, Dhaka University
For Chair Professor in the name of Ex-
Governor of Bangladesh Bank- L.R.Sarker
1,800,000/-
Purpose Actual Expenditure
Kurmitola Golf Club Golf Tournament 1,478,724.00
Department of Biochemistry and Molecular Biology, Dhaka University for
Organizing Biochemistry Olympiad held on December 22, 2012
200,000.00
Notre Dame College for participating in International 18th International Science
Competition at India
200,000.00
Nagorik Natyangon Ensembel for Organizing Drama Festival titled " Kalim Shara
Shorene Natya Utsob"
100,000.00
Dhaka Club Ltd. for Organizing Eve Ball Celebration 2,000,000.00
Chattagram Samity for Organizing Annual Mejban held 100,000.00
Prime Bank BPL 85,349,347.00

368
Some sponsorship during the year 2013 (cont.)
Purpose Actual Expenditure
Prime Bank District Football Football League - BFF 18,000,000.00
ICSB Chartered Secretary National Convention 2012 50,000.00
Batexpo - BGMEA 2,500,000.00
Chess Tournament 5,20,000
24th National Debate of NDC 450,000
Dhaka University Rokeya Hall alumni association for Re-Union 150,000.00
Wrishiz Shilpi Gosti for sponsoring a program on the occasion of International
Mother Language Day
200,000.00
Press Club Jessore for constructing Auditorium 1,250,000.00
Triple A Limited for organizing music festival at UK 350,000.00
Manabzamin 290,000
Venue Branding for Dhaka University Alumni Association 70,725
Ghatail Golf Club for organizing Golf Tournament 450,000.00
Association of Comilla Old Cadets for Re-Union 50,000.00
Rewaz Performers School for organizing Music Night 200,000.00
Daffodil International University for organizing International Conference of Tertiary
Education in Dhaka
50,000.00
American International University Bangladesh for organizing Economics Day
Festival
140,000.00
BUET Lunabotics Team for participate in the NASA's 4th annual Lunabotics
Mining Competition at Florida, USA
300,000.00
Payment to Association of Bankers Bangladesh Ltd for publishing a special report
on Bangladesh in UK Newspaper
200,000
Payment to ZONTA International Club of Dhaka International Conference 20,000
Payment to Heritage Archives of Bangladesh History Trust for publishing
magazines
50,000
Dhaka Ahsania Mission for organizing a program on the occasion of 55th
Anniversary of the mission
200,000.00
Dhaka University Debating Society (DUDS) for participating in a debate
competition at Singapore
150,000.00
Global Strategy Exchange - Conference 150,000.00
ICMAB & Ardent for Sponsoring SAFA International Conference 1,000,000

Environmental
Aspects
370
Foreword
In the present world, all of us are aware that
global warming is an issue that calls for a global
response. The rapid changes in climate will be
too great to allow many eco-systems to adapt
suitably, since the changes have direct impact
on biodiversity, agriculture, forestry, dry land,
water resources and human health. Due to
unusual weather pattern, rising greenhouse
gas, declining air quality etc. society demands
that business also take responsibility in
safeguarding the planet. Green nance as a
part of Green Banking makes great contribution
to the transition to resource-efcient and low
carbon industries i.e. green industry and green
economy in general.
In line with this, our central bank has initiated
Policy Guidelines for Green Banking in the
year 2011 under which all the commercial
banks operating in Bangladesh are
encouraged to work on the issue with a view to
have a safe and sustainable eco-friendly
environment. In line with Central bank, we also
believe the same and working on it as a
commitment to the state and its habitants.

371
Agriculture and sustainable rural based
economy in the country is already a success
story. Thanks to the development of new
strains of high yielding varieties of rice by our
agricultural scientists, updated method of
cultivation and, above all, hard and sincere
efforts of the farmers, the country is almost
self-sufcient in food production. This has led
to a drastic fall in food import in recent years.
Like others Prime Bank Limited also believe
that if the nations agriculture and rural base
economy walk through a techno-based
eco-friendly process, all the targeted goals will
be achieved in a sustainable way. With the
same vision, Bangladesh Bank (BB)
announced a farmer-friendly agriculture and
rural credit policy for the scal year 2013-2014.
The target for disbursement of agricultural
credit has been set at Taka 145.95 billion,
which marks an increase of 3.29 percent over
that of the last scal.
It is expected that the farmer-friendly credit
disbursement policy of the central bank would
help diversify crops, lead to increased
production and consolidate the success in
food production. The Bank has been involved
in disbursing quite a large portfolio of
agriculture loans during the year, which are
listed below.
Agriculture and rural credit
2012 2013
1 Crops / Vegetables
cultivation
2 Fisheries
3 Livestock
4 Irrigation equipment

5 Farm Machineries
6
Crop storage &
Marketing and Others
7 Poverty Alleviation

Total

Outstanding as
on 31.12.2013
1872.45

127.20

511.16

33.49

32.57

140.79
314.34

3032.00
Disbursement
1547.258
66.37

487.787

21.48

10.202

375.949

40.147
2549.19
Outstanding as
on 31.12.2012
516.38
122.75
424.44
32.61
26.06
236.45
70.12
1428.82
Disbursement
665.58
100.38
361.85
36.05
26.95
359.43
84.88
1635.12
Table: Agriculture Loan by purpose:
Taka in Million
372
Source Consumption Mega joules CO
2
Emission
Electricity 7,041,756 kwh 25,350,322 7,393.84 tonnes
Octane 98,275.80 Liters 3,144,826 242.73 tonnes
Diesel 4,921 Liters 189,951 14.27 tonnes

An individual's nation's or organization's carbon
footprint can be measured by undertaking a
GHG (Green House Gas) emissions
assessment or other calculative activities
denoted as carbon accounting. Once the size
of a carbon footprint is known, a strategy can
be devised to reduce it, e.g. by technological
developments, better process and product
management, consumption strategies, and
others.
The mitigation of carbon footprints through the
development of alternative projects, such as
solar or wind energy or reforestation,
represents one way of reducing a carbon
footprint and is often known as Carbon
offsetting. The main inuences on carbon
footprints include population, economic output,
and energy and carbon intensity of the
economy. These factors are the main targets of
individuals and businesses in order to
decrease carbon footprints. Scholars suggest
the most effective way to decrease a carbon
footprint is to either decrease the amount of
energy needed for production or to decrease
the dependence on carbon emitting fuels.
As a believer of Green and Safe Universe
theme, Prime Bank Limited also considers an
extensive focus on Carbon Offsetting and
started its journey in nancing in eco-friendly
industries.
Due to the email and sms notications, Prime Bank has been able to save a large
quantity of paper and also minimized cost during the process.
Carbon Foot Print
Energy efciency
Energy Consumption of Prime Bank during 2013

Total SMS notifications during the year
Total email notifications during the year
1,555,479
201,867
Source : Megajoules conversion : http://www.convertworld.com
CO2 Emission conversion: http://www.carbonify.com
Bangladesh is heavily involved in textile
production and export. A lot of textile mills were
established all around the country in the last
decade. A large number of these mills produce
and release waste waters. It was reported by
the various organization and monitoring
authority that the pollution of the rivers and
canals in and around the country is well above
their acceptable level. Various agencies are
trying to safeguard the clean environment.
Bangladesh Government has already issued
various forms of warning and red alerts to the
concerned industries. A lot of textile wet
processing industries have already installed
efuent treatment plants (ETP) and many of
them are at various stages of installing ETP.
Efuent treatment Plants provide effective
solutions to efuent odor control, BOD
(Biological Oxygen Demand) reduction,
aeration, clarication, phosphorous and
nitrogen removal and more. To keep the
environment safe and sustainable,
incorporation of ETP is highly required for those
business institutions deal with such process of
producing sewage water.
Prime Bank Limited has also started screening
in nancing those businesses that may hamper
environmental greenness. Up to 2013, Prime
Bank has nanced 48 factories/garments that
have ETP, where the total exposure is Tk. 3212
crore. Some of the plants that we have
nanced can treat 30,000 litre efuents per
hour very effectively. Prime Bank encourages
all factories to incorporate ETP into their
processes and move towards a more
eco-friendly environment.
Financing Effluent Treatment Plant
Bangladesh is endowed with a favorable
climate and soil conditions for the production of
a variety of crops all the year round. The major
crops cultivated in the country are rice, wheat,
maize, sugarcane, potato, jute, pulses,
oilseeds, spices and vegetables. Cereals and
potato production fullls the countrys
requirement. Other crop productions are
decient in the country. To meet the demand a
huge amount of foreign currency is spent for
importing sugar, pulses, oilseeds and spices
every year. The deciency of some crops can
be minimized through increase of production in
a suitable land with minimum cultivation cost.
For that, it is important to identify and delineate
suitable areas for growing particular crops in
order to harvest maximum potential yield.
The genetic yield potential of maize is very high.
Bangladesh Agricultural Research Institute
(BARI) has already developed ve high yielding
medium duration maize varieties with grain yield
potential of 5-7 Mt/hectare, suitable for ood
prone areas.
Vegetable oil from oilseeds is the main sources
of fats in the average Bangladeshi diet. Its
present level of consumption is only 25 percent
of the FAO/WHO recommended level.
Prime Bank Limited has the desire to contribute
in ourishing the crop diversication in the
country with a view to attain multifarious output
in production, saving foreign exchange,
substituting rice and other conventional crops.
In line with this the Bank has nanced a
substantial amount in cultivation of Maize and
spices.
Credit facilities are allowed at rebate rate (4
percent) for cultivation of pulse, oil seeds and
spices to reduce dependency on import and
save huge amount of foreign exchange
incurred for importing the items under interest
loss compensation scheme of the
Government. During the year of 2013, PBL has
disbursed Tk 2.69 million among 46 farmers at
rebate rate (4 percent) for cultivation of pulse,
oil seeds and spices.
Cultivation of Maize, spice and oil seed
SL Crop Loan Disbursed @4% interest
(January 2013 to Dec.2013)
Number of Farmer
1 Spices 1.62 23
2 Maize 1.07 23
Total 2.69 46

375
Ship breaking activities in Bangladesh is
concentrated in Sitakunda (Bhatiary to
Barwalia), just north of Chittagong city on the
Bay of Bengal. It is of paramount importance to
the macro and micro economies of poverty
stricken Bangladesh. Ship breaking activities
present both challenges and opportunities for
our coastal zone management. Meeting
increasing demand for raw materials such as
steel needs to be balanced with the negative
impact this activity is having on our coastal
environment and the conditions of the workers.
International Maritime Organization (IMO) has
been trying to implement
guidelines/regulations/conventions
for qualitative improvement of shipbreaking
industry around the globe since 2003.
Considering the cumulative demand of steel
and potential threat to environment, Prime Bank
Limited is concentrating on nancing
environment compliance ship braking industry.
Our Bank already has nanced a substantial
amount in this sector which is above Tk. 700
crore. The major customers nanced by PBL
may be named as Prime Ship Breakers, Kabir
Steel and MAS Ship Breakers.
Bangladesh is the second largest nation which
accommodates one fourth of total scrapped
ships globally. The bank has nanced this
sector after doing Environmental Risk Analysis
for each customer and the bank only nanced
to those customers, who have obtained
membership license from Bangladesh Ship
Breakers Association and completed all
ancillary works, e.g. they also have obtained
Environmental Clearance Certicate from
Environment Department, Chittagong Division.
The customers have applied Efuent treatment
plant (ETP) as per instruction of Environment
Department, developed workers recreation
center, labor barrack in their yards etc.
Financing Environment Compliance
Ship Breaking Industry
Name of the customer Limit
OWW Tarding. with Laldighi East Branch 2226
MAS Ship with Laldighi East Branch 2495
EK Steel Ship Breaking 6550
Sagorika Ship Braeking Industry 2520
RA Ship Breaking 4868.32
Al Safa Steel Rerolling Mills Ltd 5427.4
Prime Ship Breakers Ltd 13541
Khawja Ship Breaking 6390
Darusslam Enterprise 7491
Total Amount 51508.72

376
Brick making in Bangladesh is a highly
energy-intensive and carbon-emitting activity
and one of the largest sources of greenhouse
gas emissions, estimated to be around 3
million tonnes of carbon dioxide annually. Most
brick kilns in Bangladesh are highly polluting
since they use crude technology and low
quality coal for fuel. Burning of coal in the kilns
releases various pollutants in to the
atmosphere. Contrary to the conventional
system of brick kilns the Zigzag brick kilns are
far environment friendly where more than 50%
coal usage can be saved than the same
production of brick by the conventional system.
Our central bank is also deeply concerned
about it and motivates the commercial banks to
nance in converting the xed chimney system
brick elds to Zigzag or other modern
technology based brick like Hoffman Kiln or
Hybrid Hoffman Kiln. Inspired by the
commitment to the environment and the
country man, Prime Bank Limited gets
self-contentment by nancing to eco-friendly
Kiln factories. Prime Bank has nanced 49.8
million in environment friendly Zigzag Brick eld
in the year 2013 and looks to expand its
investment in this sector in 2014.
Financing Environment Friendly Brick Kiln

377
Ispahani Group is one of the oldest business
houses in the country with diversied interests
in the blending and packaging of tea, tea
gardens, textile, jute, snacks, packaging
material, agro seeds and pesticides. In
addition, the group has various other
undertakings, such as a container yard,
brokerage houses at both Dhaka and
Chittagong Stock Exchange, Hotel, Restaurant
and bakery etc.
In the year 2013, we have established
business relationship with this group and have
approved a credit limit of Tk. 179.00 Crore,
favoring two concerns of this group namely M.
M. Ispahani Ltd. and Ispahani Agro Ltd. Major
Business of M. M. Ispahani Ltd. is covered by
Pahartali Textiles & Hosiery Mills (PTHM)
including Blend Yarn Unit and Tea Department.
Pahartali Textile & Hosiery Mills (PTHM) is a unit
of M. M. Ispahani Ltd. It was established in
1954 with 18,000 spindles, one of the
pioneers in textile manufacturing in this country.
Presently there are 03 (three) units and present
installed capacity of this mill is 30 MT/day, i.e.
9,000. MT/ Year (approximate). The unit
produces different verities of yarn namely
Millange, Viscose, pure cotton, Polyester, etc.
as per buyers requirement. We have learned
that this is company also performing
international standard fair trade, organic and
BCI (Better cotton Initiative). The details of
these types are as follows:
Fair trade: Fair trade is a trading partnership,
based on dialogue, transparency and respect
that seek greater equity in international trade. It
contributes to sustainable development by
offering better trading conditions to, and
securing the rights of marginalized producers
and workers.
Organic: It is a production process where
there in no chemical is used.
BCI (Better Cotton Initiative): In this process
some chemical, fertilizer, etc is being used in a
controlled way.
They also have options to produce Carded
yarn (where wastage is 12%) and Combed yarn
(where wastage is 28%). Prime Bank has
allowed composite credit limit of Tk.160.00
crore favoring M. M. Ispahani Ltd.
Ispahani Agro Limited (IAL), a sister concern of
M. M. Ispahani Ltd. has been operating its agro
business with three wings Ispahani Seeds,
Ispahani Biotech and Ispahani Agro
Processing since 2007 started their journey
with the goal as Safe food for better life.
Targeting the safe food security, IAL has
designed One Stop Agriculture conceiving
the following business wings:
Ispahani Seeds
Ispahani Biotech
Ispahani Agro Processing
Ispahani Agro produce supply chain
(consumer)
There are 2 departments which are Sseeds &
Bio-Pesticide, who are engaged in
manufacturing & distribution of Hybrid & Upshi
seeds, Pheromone and Benecial Insects.
In January 2009, Ispahani Group joined with
the government to fulll the mission of reducing
the use of chemical products as pesticides.
Since then, the researchers have been striving
to develop Integrated Pest Management (IPM)
which is cost-effective, environment friendly
and harmless to consumers health. Under the
IPM system, the insects in fruits and vegetable
elds are controlled naturally without using any
chemical. They use the friendly insects to
control the harmful insects.
Financing Bio Pesticides
378
The parasites of friendly insects are spread in
the eld to control the harmful insects. First,
they procure/import chemicals and produce
the Pheromone bait. The production
procedure is completed within a day. Ispahani
Agro Ltd. can produce 2000-2500 bait in a
day. For production of benecial insects,
harmful insects are used. The harmful insects
are collected from local sources. It takes 15
days to complete the entire production
process. Ispahani Agro Ltd. produces 300 jars
at a time. But, the insects are produced on
requirement basis as they are living things and
cannot be store for long. Prime Bank has
nanced Tk.19.00 crore favoring Ispahani Agro
Limited (IAL) for their environment friendly
business, and plan to expand it in the
upcoming year.
Conventionally grown cotton uses more
insecticides than any other crop in the world. It
is estimated that each year cotton producers
use as much as 25 percent of the world's
insecticides and more than 10 percent of the
world's pesticides; an incredible amount for
just one crop. Organic cotton is grown without
the use of toxic pesticides or fertilizers. It is
grown using methods and materials that have a
low impact on the environment. Organic
production systems replenish and maintain soil
fertility, reduce the use of toxic and persistent
pesticides and fertilizers, and build biologically
diverse agriculture.

Companies around the world are developing
programs that either use 100 percent
organically grown cotton, or blend small
percentages of organic cotton with
conventional cotton in their products. There are
a number of companies driving the expanded
use of domestic and international organic
cotton. In addition, organic cottonseed is used
for animal feed, and organic cottonseed oil is
used in a variety of food products, including
cookies and chips.
Ispahani Organic Cotton

379
Biogas is practically produced as landll gas
(LFG) or digested gas. A biogas plant is the
name often given to an anaerobic digester that
treats farm wastes or energy crops. It can be
produced using anaerobic digesters. These
plants can be fed with energy crops such as
maize silage or biodegradable wastes including
sewage sludge and food waste.
Bangladesh is a signatory of Millennium
Development Goal and committed to ensure
electricity for all by the year 2020 - 2021. The
present energy situation directing us to
acknowledge the fact that, the country is going
to face a serious energy crisis in the near future
and searching renewable energy source is the
only way to meet the present and forthcoming
additional demand. Among the renewable
energy options, biogas is considered to be one of the best solutions. Some basic advantages
of Bio Gas may be considered as, all
hazardous waste like city waste, industrial
waste, human excreta, poultry litter, agriculture
waste, water hyacinth, cow dung etc. are the
raw materials of biogas and reserves of these
are huge in Bangladesh. Biogas can be used
for cooking, lighting, running engines,
generating electricity etc along with its ability in
drastic reduction of greenhouse gas and
reduction of deforestation. Prime Bank has
disbursed Tk 0.35 million to set up 2 bio gas
plant under renance scheme of Bangladesh
Bank in 2013. Prime Bank Limited plans to
invest and support 50 bio gas plants in the year
2014.
Bio-gas
Prime Bank is always trying to reduce its effect
on the environment and encourages all
employees to take steps to preserve the
environment. Prime Bank has already started to
install lever based taps in all its ofces which
should conserve a lot of water usage and its
affect should be visible in the upcoming year.
For the year 2013, water consumption was
24,751,238.17 Liters in all branches
(Calculation was based on WASA bill received).
We are committed to lessen our water
consumption for the year 2014 and will be
taking actions proactively. Prime Bank always
encourages its employees to use as less paper
as possible and always encourages
double-sided printing to save and efciently
use paper. For the year 2014, we are planning
to take all waste material from our Head Ofce
and efciently reuse and recycle the waste
products. Prime Bank is committed to make
2014 a very proactive year regarding Green
Banking.
Commitment to the
Environment

- 41 -
HUMAN
RESOURCES
HUMAN
RESOURCES
People: The Prime Assets!
Diversely talented, motivated and engaged
employees have always been the key assets
for Prime Bank Limited. To ensure long term
sustainability, PBL is relentlessly pursuing its
vision to transform the human resources into
human capital.
The Bank has been able to maintain a highly
favourable employer image by creating a
performance-driven rewarding work culture;
where employees receive plenty of
opportunities to realize their diverse potentials
fully as well as benet the organization by
demonstrating value creating behaviours.

383
The manpower planning of PBL is linked with
the overall strategic plan of the Bank. This
manpower planning process not only denes
the number of human resources to be hired
within a given time-frame, but also the types of
human resources and the required
competencies and skills that will be needed to
achieve the business goals.
The ongoing recruitment of PBL is primarily
governed by 3-year manpower planning
outlined in 2013. To ll up the vacancies and
ensure that the additional human resources are
assessed, selected and placed on-time as per
required competencies, the Recruitment &
Selection team works dedicatedly as per
organizations best t philosophy.
Employment Type
Total
Parmanent
Contractual
Probation
2,059
7
88
508
-
48
2,710
Employment Level
Total
Entry Level
Mid Level
Senior Management
1,914
225
15
544
12
-
2,710
At the end of 2013, total number of employees was reported as 2,710 in 3 major employment
categories.
384
New Recruitment in 2013
Total
Number of Employee
Percentage
220
74.07%
77
25.93%
297
New Recruitment in 2013 shown by level
Total
Entry Level
Mid Level
Senior Management
187
33
-
75
2
-
297
New Recruitment in 2013 shown by age group
Below 30 years 111 57
Total
30 years to 40 years
50 years and above
91
13
5
19
1
-
297
New Recruitment in 2013 shown by Religion
Total
Islam
Hindu
Buddhist
206
12
2
74
3
-
297
In 2013, the Recruitment & Selection team has facilitated to select a total of 297 new hires, both
fresh and lateral entry.

385
PBL believes that diverse, heterogeneous
teams generate greater creativity, innovation
and business development. We are cognizant
that an inclusive culture maintains and drives
workforce diversity by fostering the exchange
of ideas and collaboration among individuals
and across groups. To speak simply, our
constant success depends in part on
maintaining a plurality of perspectives.
We practice equal employment opportunity for
competent candidates regardless of their
gender, age, locality or ethnicity. While
recruiting fresh graduates, PBL source the pool
from different recognized public and private
universities and academic institutions; with a
view to creating a diverse work force.
Board members by age group:
Below 30 years 1 5 %
Total
50 years and above
3
1
15
15 %
5 %
75 %
20
No. of employees by age group
Below 30 years 385 186
Total
50 years and above
1,292
368
110
314
47
8
571 21.07%
1606
415
118
59.26%
15.32%
4.35%
2,710
No. of employees by religion:
Total
Islam
Hindu
Buddhist
2,527
175
8
93.31%
6.40%
0.29%
2,710
386
Gender diversity among Board members
Total
Male
Female
15
5
75%
25%
20
Gender diversity among employees:
Total
Male
Female
2,154
556
79.48%
20.52%
2,710
Our ration of male and female employees has been increasing over the time. Currently, approxi-
mately 20.48% of total employees are female. On the other hand, 25% of the Board of Directors
represents females.
In 2013, new intake of female employees was approximately 26%. We are gradually encouraging
the women to take up leadership opportunity which will ensure a more balanced work force.
PBL continuously thrives to transform Human
Resources into Human Capital through
appropriate training in every aspects of work
area which in turn will help the Bank to achieve
a sustainable growth. HR Division regularly
undertakes effectively designed training
programs targeting the right group of
employees through proper training need
assessment.
In 2013, Prime Banks internal HR Training and
Development Centre (HR-TDC) arranged 61
professional training courses and 32
workshop/seminars for 3,143 enthusiastic
participants. Besides, a total of 248 employees
were sent to attend various training
programs/conferences in home and abroad.
Average number of hours of training per year
per participant is approximately 34.07 hours.
The whole capacity building efforts is pivoted
on the unique understanding of banking sector
as well as required behavioural skills to create a
group of competent professionals with strong
leadership skill. The banking sector is complex
and diverse with evolving nature of threats and
the risks. So, the training module is updated
time to time for employees of the Bank in the
changing context of nancial market.

387
Compensation & Benefits
PBL has an agile compensation and benets
system that tracks costs, helps to ensure pay
equity, is linked with performance which is
understood by employees, and keeps in touch
with employee desires and what's coveted in
the market, while maintaining a balance with
the business affordability. The compensation
and benets are regularly reviewed through
market and peer group study. Currently, the
level and structure of Remuneration is very
attractive to motivate and retain performers.
In PBL, the Board of Directors is not eligible for
any compensation. They are paid honorarium
for attending meetings only. On the other hand,
all employees are paid competitive
remuneration package. The structure and level
of remuneration are reviewed time to time
based on Bank's performance and affordability.
Employees are paid bonus based on yearly
business performance.
In addition to monthly competitive base pay
and a good number of allowances, PBL has
variety of market-competitive Benets schemes
designed to motivate the employees. The
various cash and non-cash benets include:
PBL also provides long-term as well as retirement benets to employees:
Company car for Top Level Executives
Car maintenance allowance
Leave fair assistance allowance
Medical treatment allowance
Maternity benets
Car loan facility
House loan facility
Staff loan at reduced interest rate
Hard furnishing allowance
Mobile phone allowance
Travel allowance
Technical allowance
Festival bonus
Allowance for employees meritorious
students
Annual leave
Maternity leave
Study leave etc.
Leave encashment
Provident fund
Gratuity benet
Retirement benet
Partial and full disability benet
Death benet to family members etc.
388
Career Progression
PBL always plans for employees to advance
their career goals. This includes advancement
into more responsible positions. The company
supports career opportunities internally so that
talented employees are deployed in upgraded
positions and thereby enables them to deliver
their greatest value to the organization. The
annual promotion policy includes multiple
criteria that identify both the performers and
potential employees who need to be upgraded
into higher positions with enhanced
responsibilities. In addition to regular
promotion, there is opportunity for talented
employees to be fast tracked.
PBL believes that the career growth may be
ensured in two ways - vertically and
horizontally. So, whenever possible Human
Resources Division seeks opportunity to
mobilize employees across different functions
and thus assists them to progress with varied
skills and experience.
Male 91 85.05%
Female 16 14.95%
Total 107 100%
Employee turnover by gender:
Employee Turnover
The opportunities for career growth, attractive
compensation and benets packages and a
congenial work culture helped the Bank to
maintain a healthy attrition rate of 4.07% in the
year 2013.
Male 28
33.64%
Female 8
Male 42
44.86%
Female 6
Male 11
12.15%
Female 2
50 years and above
Male 10
9.35%
Female
Total 107 100%
Age group
Below 30 years
Employee turnover by age group and gender:
389
PBL has a comprehensive performance
management program that evaluates
employees' yearly performance against
business targets. In addition, their functional
and leadership competencies are also rated by
the line management. This appraisal process
also identies the competency gap and training
needs of employees. All permanent employees
of PBL undergo annual performance appraisal
process.
To eliminate the complexity of hard copy based
appraisal system (performance and capability
evaluation) and to make it more accessible to
employees, HR Division has automated the
entire performance appraisal process. This
includes justication of the rating as well as
agreement between the employee and line
manager regarding the nal appraisal. The
purpose is to ensure transparency in
performance evaluation process by
encouraging dialogues between appraisers
and appraises. HRD also ensures that clear
feedback on improvement points (performance
and professional capabilities) is provided to
employees based on the outcome of
evaluation to promote employees longer term
development and improved contribution to
organizational performance.
PBL has a well-designed Reward &
Recognition program that gives special
attention to employees actions, efforts,
behaviour and performance. It meets the
intrinsic psychological need for appreciation of
employees efforts and supports business
strategy by reinforcing certain behaviours(e.g.,
extraordinary accomplishments) that contribute
to Banks success.
To acknowledge outstanding performance, in
2013, Human Resources Division invited and
received organization wide nominations. After
proper screening the short-listed candidates
proles were sent to Management Committee
for evaluation and nal selection.
Followings are the different cash and non-cash
awards given to employees for their exemplary
works:
CEOs Banker with Exceptional Service Traits
Award (BEST)
Commendable Branch Performance Award
(CBPA)
Trainees with Outstanding Performance
Award (TOP)
Around the Year Appreciation Award (AAA)
etc.
390
Work-life Balance
PBL upholds the philosophy of work-life
balance and has organizational practices and
policies that actively support employees to
achieve success at both work and home.
Management is also open and shows exibility
in regard to a balanced work-life.
We have exible work arrangement. Employees
are entitled to sufcient annual leave and sick
leave with pay. To enjoy vacation with family,
Bank provides Leave Fare Assistance
Allowance to employees.
In Prime Bank Ltd. all female employees are
eligible for Maternity Leave (Parental Leave) of
six-month period. In 2013, a total of 62 female
employees availed Maternity leave. After
completion of the leave, they returned to work
and are still continuing with the organization.
On emergency situation, employees are at
liberty to take leave without pay when their
regular leave days are consumed. Employees
can also pursue higher studies availing Study
Leave which is subject to Management
approval.
Culture
Many factors impact Banks nancial
performance. One such factor is culture which
helps organization to create a high
performance environment that supports
business strategy implementation in an
effective and efcient manner. In PBL, HR
Division plays a vital role in developing, shaping
and impacting organizational culture by:
practicing values appropriate for the bank;
dening working relationship and
communication pattern between superior and
subordinates; governing rules and regulations
which control employees behaviour;
promoting a strong employer brand through
which employees identify with the organization;
maintaining effective reward system that affects
employees loyalty and empowering employees
to demonstrate their innovativeness not only to
be competitive in the market but also to
achieve a sustainable growth.
Healthy and Safe Work Environment
Healthy, productive and motivated employees
are the foundation of a successful organization.
In PBL the physical, mental and social
well-being of its employees always get priority.
PBL helps employees assume responsibility for
their own personal behaviour in health-related
matters, and support health-promoting general
conditions within the Company. We
continuously focus on improving health and
safety of employees that includes proper work
place design and decoration of head ofce and
branches, maintaining the cleanliness at work
space, holding awareness session related to
physical and psychosocial well-being, email
communication on various health and safety
related topics, sending alerts to employees on
emergency situations, arranging re drill
sessions, nancial support for medical care
etc.
Bank employees are not usually exposed to
work-related injury and occupational diseases
because of its operating nature. Nevertheless
Prime Bank also remains cautious so as not to
create any hazardous work condition.

391
Decent Workplace
PBL believes that the business can grow
favourably if the organization enables
employees through creating and maintaining a
decent workplace.
PBL has created a decent work environment
where employees can work with dignity, have
the freedom to express opinions, can
participate in the decision making process that
affect their lives, and receive equal treatment
and opportunity. PBL ensures security in the
workplace and social protection for employees
families, better prospects for their personal
development and social integration.
In PBL, employees have the right to exercise
freedom of association or collective bargaining
following the legal procedure of country laws.
However, employees have never formed or
wanted to form any collective bargaining
agency.
PBL follows non-discriminatory approach in all
HR policies and practices. The salary of an
employee is determined based on his/her
competency, experience and performance.
During the period of 2013, neither any incident
regarding discrimination nor any grievance
related human right has been reported.
PBL neither employs child labour nor has any
provision for forced labour. Employees can
voluntarily resign from their employment serving
proper notice period and following the internal
procedures.
Ensuring a decent workplace also encompass
PBLs investment decisions as well as
agreements with the suppliers and contractors.
For instance, human right, as appropriate, is
covered as an integral part of decision making
for major nancial investments. Among all the
signicant investments, garments and
manufacturing industry contain major stakes
where issues related to human rights are more
relevant and critical. Hence, any such
investment agreement is subject to screening
of human right issues along with other criteria.
On the other hand, all the agreements of PBL
with suppliers or contractors undergo due
assessment process which requires complying
with Labour Code and other applicable laws of
the country. Moreover, the procurement
decisions are also subject to conformity with
International Labour Conventions. The team
involved in procurement periodically visits
suppliers and contractors' premises to monitor
working conditions and other relevant human
right issues.
The security personnel employed by PBL are
formally trained and aware of policies and
procedures regarding human right issues. The
training requirement also applies to third party
organizations that provide security personnel to
PBL.
PBL is always committed to establish the
highest level of business compliance and
ethical standard. HR Division always takes
prompt actions against any deviation from the
set standards. All employees are properly
oriented during joining and inducted properly to
comply with the business rules and regulations.
HR continuously raises awareness among
employees to ensure that business decisions
and actions undertaken by employees are
completely in compliance with the prevalent
rules and regulations. Employees code of
conduct is always being observed and
monitored so that customers expectations and
392
In 2013, HR Division developed a software
named HR Connect in collaboration with IT
Division to automate different HR processes.
Employees located across the country are
presently using this. It is all about people,
processes, and results using information and
communications technologies to improve the
transparency, efciency, and effectiveness.
This software is robust and used for a range of
purposes from HR services to a transparent
performance appraisal system. This
automation initiative also positively changed the
mindset of employees about transparent work
culture with more empowerment and
accountability; which will eventually make them
prepared to accept any major change initiative
in the coming days.
Forward Looking Approach
PBL is constantly tapping into opportunities to
contribute to the business by enabling and
engaging its human resources. In this process,
HR Division is facilitating the organization in all
possible ways through an effective partnership
with the functional leaders.
From a forward looking perspective, HR has
couple of initiatives at hand, like: Develop &
rollout Job Description, Key Result Area (KRA),
Key Performance Indicator (KPI) for all the
employees of Prime Bank Limited; Improve the
Performance Management process, review HR
Policies & Procedures; Talent Management
Program; Skill Gap Assessment for the
employees & improvement road map design;
Reinforce Employer Brand with new initiatives
fostering Employee Relations and so on.

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393
AWARDS

395
Product Responsibility
Prime Bank ensures that all products are
compliant as per Bangladesh Bank, the central
bank, product program guideline. The divisions
that are responsible for ensuring that all
products are compliant are: Operations
Division, Business Divisions (Retail Banking,
Corporate Banking, SME Banking, Cards
Division, Islamic Banking Divisions, Alternate
Delivery Channels Divisions, and Centralized
Clearing Cell), Research & Development
Division and Marketing Division. The Marketing
Department has a draft brand guideline which
they follow to ensure all marketing
communications are adherent to all laws and
regulations.
Prime Bank always tries to ensure that it
maintains a high level of customer satisfaction
among all branches, which is why it took the
initiative of starting a survey for all customers
from 2010. Mystery Shopping Survey is an
ongoing project of the bank to measure
customer satisfaction. Every year Prime Bank
conducts this satisfaction survey in one or two
phases through deployment of research
agency.
Standard procedures regarding methodology of the surveys:
> The service delivery skills of Front Desk Ofcers (FDOs) as well as Tellers are identied.
> Level of service standard (FDOs, Activities, Queries and overall branch wise) is identied.
> Calculation of overall score in delivering service of PBL (In-depth Quality Index) according
to performance of Staff, Branch and overall Bank is done
> The satisfaction level with the performance of Front Desk Ofcers (FDOs) as well as Tellers
is identied.
> Overall, three broad parameters (Customer Management Skills, Service Delivery Speed
and Branch Environment) are assessed to ensure customer service.
The results of the survey were:
The total sample (number of visits) is 2318 in
the last survey which was completed in 2013.
The samples were randomly selected. The
overall score of the Bank in service quality is
68.62 (Customer Management Skills 43.30 out
of 75, Service Delivery Speed 11.22 out of 15
and Branch Environment 14.10 out of 15). 43
branches scored above 70 (out of 100) in
terms of performance while 47 of the 102
branches performed moderate by scoring from
60 to 70 (out of 100).
On an average, the performance score (based
on Customer Management Skill, Service
Delivery Speed and Branch Environment) of a
branch was 68.62 (out of 100) which indicated
that most of the branches were performing at a
satisfactory level but there were still factors on
which we could improve on. The Bank has
already set-up Service Quality Unit (SQU) for
centralized monitoring of quality and
improvement of customer service.
Prime Bank would also like to state that there
have been no issues of non-compliance with
regulatory bodies in 2013. There were no
reported incidents or there have been no
signicant payment of nes to regulatory bodies
during the year.
Awards received in 2013
SAFA Best Presented Annual Report Awards and SAARC Anniversary Award for Corporate
Governance Disclosure 2011 Winner (Category: Private Sector Banks).
SAFA Best Presented Annual Report Awards and SAARC Anniversary Award for Corporate
Governance Disclosure 2011 Overall Runner Up.
396

13th ICAB National Award for Best Presented Annual Report 2012 2nd Position in Private Sector
Banks (including Co-operative Banks).
13th ICAB National Award for Best Presented Annual Report 2012 3rd Position in SAARC
Anniversary Award for Corporate Governance.
397
ICMAB Best Corporate Award 4th Consecutive Victory 1st Prize 2012
Best Bank of Bangladesh by Global Finance Survey (Best Emerging Market Bank in Asia) - 2013
398

List of Membership
1) Bangladesh Association of Banks
2) Bangladesh Institute of Bank Management
3) Bangladesh Association of Publicly Listed Companies
4) Association of Bankers, Bangladesh Limited.
5) American Chamber of Commerce in Bangladesh
6) Metropolitan Chamber of Commerce and Industry
7) Japan - Bangladesh Chamber of Commerce and Industry
8) Dhaka Stock Exchange Limited
9) Chittagong Stock Exchange Limited
10) Central Depository Bangladesh Limited
11) Dhaka Chamber of Commerce & Industry
13) Canada Bangladsh Chamber of Commerce of Industry
14) Islamic Bank Consultative Forum
15) Bangladesh Foreign Exchange Dealers Association
16) The Institute of Bankers Bangladesh
17) International Chamber of Commerce Bangladesh
18) Central Shariah Board for Islamic Banks of Bangladesh
399
Standard Disclosure Part-I: Profile Disclosures
This report contains information on the actions Prime Bank Limited took to improve our social, environmental, and
economic performance and the results we achieved during the period between 1 January 2013 and 31 December
2013. The contents of the report are developed in compliance with the B-application level of the 3.1 version of the
GRI (Global Reporting Initiative) Sustainability Reporting Guidelines, which is an internationally recognized reporting
standard. The table below has been prepared to facilitate access to information provided within the framework of
GRI's B-level application.
Profile
Disclosure
Disclosure Level of
Reporting
Page
no.
Comments

1 Strategy and Analysis
1.1 Statement from the most senior decision maker
of the organization.
Fully
1.2 Description of key impacts, risks, and
opportunities
Fully

2 Organizational Profile
2.1 Name of the organization Fully
2.2 Primary brands, products, and/or services Fully
2.3 Operational structure of the organization,
including main divisions, operating companies,
subsidiaries and joint ventures.
Fully
2.4 Location of organizations headquarters Fully
2.5 Number of countries where the organization
operates, and names of countries with either
major operations or that are specifically relevant
to the sustainability issues covered in the report.
Fully
2.6 Nature of ownership and legal form Fully
2.7 Markets served (including geographic
breakdown, Sectors served, and types of
customers/beneficiaries).
Fully
2.8 Scale of the reporting organization, including: Fully
2.9 Significant changes during the reporting period
regarding size, structure, or ownership including

2.1 Awards received in the reporting period. Fully

3 Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for
information provided
Fully
3.2 Date of most recent previous report (if any). Fully
3.3 Reporting cycle (annual, biennial etc.) Fully
3.4 Contact point for questions regarding the report
or its contents.
Fully
3.5 Process for defining report content, Fully
GRI 3.1 Content Index
400

347-349
352-353
350
162
393
350
354
350
355
354
396-398
354
354
355
354-355
364
Fully 355
3.6 Boundary of the report (e.g., countries, divisions,
subsidiaries, leased facilities, joint ventures,
suppliers).
Fully
3.7 Any specific limitations on the scope or boundary
of the report
Fully
3.8 Basis for reporting on joint ventures,
subsidiaries, leased facilities, outsourced
operations, and other entities that can
significantly affect comparability from period to
period and/or between organizations.
Fully
3.9 Data measurement techniques and the bases of
calculations, including assumptions and
techniques underlying estimations applied to the
compilation of the Indicators and other
information in the report.
Fully
3.1 Explanation of the effect of any re-statements of
information provided in earlier reports, and the
reasons for such re-statement (e.g.
mergers/acquisitions, change of base
years/periods, nature of business, measurement
methods).
Fully
3.11 Significant changes from previous reporting
periods in the scope, boundary, or measurement
methods applied in the report.
Fully
3.12 Table identifying the location of the Standard
Disclosures in the report
Fully
3.13 Policy and current practice with regard to
seeking external assurance for the report.
Fully

4 Governance, Commitments, and
Engagement

4.1 Governance structure of the organization,
including committees under the highest
governance body responsible for specific tasks,
such as setting strategy or organizational
oversight.
Fully
4.2 Indicate whether the Chair of the highest
governance body is also an executive officer
Fully
4.3 For organizations that have a unitary board
structure, state the number and gender of
members of the highest governance body that
are independent and/or non-executive members
Fully
4.4 Mechanisms for shareholders and employees to
provide recommendations or direction to the
highest governance body.
Fully
4.5 Linkage between compensation for members of
the highest governance body, senior managers,
and executives (including departure
arrangements), and the organization's
performance (including social and environmental
performance).
Fully
Profile
Disclosure
Disclosure Level of
Reporting
Page
no.
Comments

401
355
354
355
355
354-355
355
400
355
355-356
357
357
357-358
387
4.6 Processes in place for the highest governance
body to ensure conflicts of interest are avoided
Fully
4.7 Process for determining the composition,
qualifications, and expertise of the members of
the highest governance body and its committees,
including any consideration of gender and other
indicators of diversity
Fully
4.8 Internally developed statements of mission or
values, codes of conduct, and principles relevant
to economic, environmental, and social
performance and the status of their
implementation.
Fully
4.9 Procedures of the highest governance body for
overseeing the organization's identification and
management of economic, environmental, and
social performance, including relevant risks and
opportunities, and adherence or compliance with
internationally agreed standards, codes of
conduct, and principles.
Fully
4.1 Processes for evaluating the highest governance
bodys own performance, particularly with
respect to economic, environmental, and social
performance
Fully
4.11 Explanation of whether and how the
precautionary approach or principle is addressed
by the organization.
Fully
4.12 Externally developed economic,
environmental, and social charters,
principles, or other initiatives to which the
organization subscribes or endorses
Fully
4.13 Memberships in associations (such as industry Fully
associations) and/or national/international
advocacy organizations in which the
organization:
Has positions in governance bodies;
Participates in projects or committees;
Provides substantive funding beyond routine
membership dues; or

Views membership as strategic.
4.14 List of stakeholder groups engaged by the
organization
Fully
4.15 Basis for identification and selection of
stakeholders with whom to engage.
Fully
4.16 Approaches to stakeholder engagement,
including frequency of engagement by type and
by stakeholder group
Fully
4.17 Key topics and concerns that have been raised
through stakeholder engagement, and how the
organization has responded to those key topics
and concerns
Fully
Profile
Disclosure
Disclosure Level of
Reporting
Page
no.
Comments

402

358
357
358
357
358
358-359
357-359
399
362
363
360
361
Standard Disclosure Part II: Disclosures on Management Approach (DMAs)
Standard Disclosure Part III: Performance Indicators
FSS DMAs Disclosure Level of
Reporting
Page no. Comments
DMA PS Product and Service Fully
DMA EC Economic Performance Fully
DMA EN Environment Fully
DMA LA Labor Practice Fully
DMA HR Human Rights Fully
DMA SO Society Fully
DMA PR Product Responsibility Fully
Product and Service Impact
Indicator Disclosure
Level of
Reporting
Page no. Comments
Product portfolio
FS6
Percentage of the portfolio for business lines by specific
region, size (e.g. micro/SME/large) and by sector.
Fully 140-155
FS7
Monetary value of products and services designed to
deliver a specific social benefit for each business line
broken down by purpose.
N/A
FS8
Monetary value of products and services designed to
deliver a specific environmental benefit for each
business line broken down by purpose.
N/A
Audit
FS9
Coverage and frequency of audits to assess
implementation of environmental and social policies and
risk assessment procedures.
N/A
Active Ownership
FS10
Percentage and number of companies held in the
institution's portfolio with which the reporting
organization has interacted on environmental or social
issues.
N/A
FS11
Percentage of assets subject to positive and negative
environmental or social screening.
N/A
403
35-38
35-38
370
382
382
166-192
35-38

Reporting
Indicator Disclosure Page no. Comments
FS12
Voting policies applied to environmental or social issues
for shares over which the reporting organization holds
the right to vote shares or advises on voting.
N/A
Economic
Level of
Reporting
Page no. Comments
Economic Performance
EC1
COMM
Direct economic value generated and distributed,
including revenues, operating costs, employee
compensation, donations and other community
investments, retained earnings, and payments to
capital providers and governments.
Fully 366
EC2
Financial implications and other risks and opportunities
for the organization's activities due to climate change.
Not reported
EC3
Coverage of the organization's defined benefit plan
obligations.
Fully 366
EC4
Significant financial assistance received from
government.
Fully
Prime Bank does not
receive any financial
assistance from
government.
Market Presence
EC5
Range of ratios of standard entry level wage by gender
compared to local minimum wage at significant
locations of operation.
Fully
Prime Banks level entry
level wage is above
industry average.
EC6
Policy, practices, and proportion of spending on locally-
based suppliers at significant locations of operation.
Fully
All suppliers are locally-
based.
EC7
Procedures for local hiring and proportion of senior
management hired from the local community at
significant locations of operation.
Fully 383
All employees are
hired from the local
community and proper
procedures are in
place for hiring.
Indirect Economic Impact
EC8
Development and impact of infrastructure investments
and services provided primarily for public benefit
through commercial, in-kind, or pro bono engagement.
N/A
EC9
Understanding and describing significant indirect
economic impacts, including the extent of impacts.
N/A
404
Level of
Reporting
Environmental
Level of
Reporting
Page no. Comments
Materials
EN1 Materials used by weight or volume. N/A
EN2
Percentage of materials used that are recycled input
materials.
N/A
Energy
EN3 Direct energy consumption by primary energy source. Partially 372
380
EN4 Indirect energy consumption by primary source. N/A
EN5
Energy saved due to conservation and efficiency
improvements.
N/A
EN6
Initiatives to provide energy-efficient or renewable
energy based products and services, and reductions in
energy requirements as a result of these initiatives.
N/A
EN7
Initiatives to reduce indirect energy consumption and
reductions achieved.
N/A
Water
EN8 Total water withdrawal by source. Fully
EN9
Water sources significantly affected by withdrawal of
water.
N/A
EN10
Percentage and total volume of water recycled and
reused.
N/A
Biodiversity
EN11
Location and size of land owned, leased, managed in,
or adjacent to, protected areas and areas of high
biodiversity value outside protected areas.
N/A
EN12
Description of significant impacts of activities, products,
and services on biodiversity in protected areas and
areas of high biodiversity value outside protected
areas.
N/A
EN13 Habitats protected or restored. N/A
EN14
Strategies, current actions, and future plans for
managing impacts on biodiversity.
N/A
EN15
Number of IUCN Red List species and national
conservation list species with habitats in areas affected
by operations, by level of extinction risk.
N/A
Emissions, effluents and waste
EN16
COMM
Total direct and indirect greenhouse gas emissions by
weight.
Fully 372
EN17
Other relevant indirect greenhouse gas emissions by
weight.
N/A
EN18
Initiatives to reduce greenhouse gas emissions and
reductions achieved.
N/A
EN19 Emissions of ozone-depleting substances by weight. N/A
405

EN20
NO
x
, SO
x
, and other significant air emissions by type
and weight.
N/A
EN21 Total water discharge by quality and destination. N/A
EN22
COMM
Total weight of waste by type and disposal method. N/A
EN23 Total number and volume of significant spills. Fully
None of the ships that
PBL has financed
have had any spills in
2013.
EN24
Weight of transported, imported, exported, or treated
waste deemed hazardous under the terms of the Basel
Convention Annex I, II, III, and VIII, and percentage of
transported waste shipped internationally.
N/A
EN25
Identity, size, protected status, and biodiversity value of
water bodies and related habitats significantly affected
by the reporting organization's discharges of water and
runoff.
N/A
Products and Services
EN26
Initiatives to mitigate environmental impacts of products
and services, and extent of impact mitigation.
N/A
EN27
Percentage of products sold and their packaging
materials that are reclaimed by category.
N/A
Not relevant for
financial institutions.
Compliance
EN28
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with
environmental laws and regulations.
Fully
No fines have been
paid during 2013.
Transport
EN29
Significant environmental impacts of transporting
products and other goods and materials used for the
organization's operations, and transporting members of
the workforce.
N/A
Not relevant for
financial institutions.
Overall
EN30
Total environmental protection expenditures and
investments by type.
Fully 371-380
Social: Labor Practice and Decent Work
Level of
Reporting
Page no. Comments
Employment
LA1
Total workforce by employment type, employment
contract, and region, broken down by gender.
Fully
LA2
Total number and rate of new employee hires and
employee turnover by age group, gender, and region.
Fully
383, 385
384, 388
406
Level of
Reporting
LA3
Benefits provided to full-time employees that are not
provided to temporary or part-time employees, by
major operations.
Fully
LA15
Return to work and retention rates after parental leave,
by gender.
Fully
Labor/Management relations
LA4
Percentage of employees covered by collective
bargaining agreements.
Fully
LA5
Minimum notice period(s) regarding significant
operational changes, including whether it is specified in
collective agreements.
N/A
Occupational health and safety
LA6
Percentage of total workforce represented in formal
joint management-worker health and safety
committees that help monitor and advice on
occupational health and safety programs.
N/A
LA7
Rates of injury, occupational diseases, lost days, and
absenteeism, and number of work-related fatalities by
region and by gender.
Partially
LA8
Education, training, counseling, prevention, and risk-
control programs in place to assist workforce members,
their families, or community members regarding
serious diseases.
Fully
LA9
Health and safety topics covered in formal agreements
with trade unions.
N/A
No trade unions exist
in the banking
industry.
Training and education
LA10
Average hours of training per year per employee by
gender, and by employee category.
Fully
LA11
Programs for skills management and lifelong learning
that support the continued employability of employees
and assist them in managing career endings.
Fully
LA12
Percentage of employees receiving regular
performance and career development reviews, by
gender.
Fully
Diversity and equal opportunity
LA13
Composition of governance bodies and breakdown of
employees per employee category according to
gender, age group, minority group membership, and
other indicators of diversity.
Fully
Equal remuneration for men and women
LA14
Ratio of basic salary and remuneration of women to
men by employee category, by significant locations of
operation.
Fully
407
Level of
Reporting
387
390
391
390
390
386
386
389
385
391

Social: Human Rights
Level of
Reporting
Page no. Comments
Investment and procurement practices
HR1
COMM
Percentage and total number of significant investment
agreements and contracts that include clauses
incorporating human rights concerns, or that have
undergone human rights screening.
Fully
HR2
Percentage of significant suppliers, contractors and
other business partners that have undergone human
rights screening, and actions taken.
Fully
HR3
Total hours of employee training on policies and
procedures concerning aspects of human rights that
are relevant to operations, including the percentage of
employees trained.
Not reported
Non-Discrimination
HR4
Total number of incidents of discrimination and
corrective actions taken.
Fully
Freedom of association and collective bargaining
HR5
Operations and significant suppliers identified in which
the right to exercise freedom of association and
collective bargaining may be violated or at significant
risk, and actions taken to support these rights.
Fully
Child Labor
HR6
Operations and significant suppliers identified as having
significant risk for incidents of child labor, and measures
taken to contribute to the effective abolition of child
labor.
Fully
Prevention of forced and compulsory labor
HR7
Operations and significant suppliers identified as having
significant risk for incidents of forced or compulsory
labor, and measures to contribute to the elimination of
all forms of forced or compulsory labor.
Fully
Security Practices
HR8
Percentage of security personnel trained in the
organization's policies or procedures concerning
aspects of human rights that are relevant to operations.
Fully
Indigenous Rights
HR9
Total number of incidents of violations involving rights of
indigenous people and actions taken.
Assessment
HR10
Percentage and total number of operations that have
been subject to human rights reviews and/or impact
assessments.
408
391
391
391
391
391
391
391
N/A
N/A
Remediation
HR11
"Number of grievances related to human rights filed,
addressed and resolved through formal grievance
mechanisms."
Fully 391
Social: Society
Level of
Reporting
Page no. Comments
Local Communities
SO1 (FSSS)
Nature, scope, and effectiveness of any programs and
practices that assess and manage the impacts of
operations on communities, including entering,
operating, and exiting.
Not Reported
SO1 (G3.1)
Percentage of operations with implemented local
community engagement, impact assessments, and
development programs.
Not Reported
FS13
Access points in low-populated or economically
disadvantaged areas by type.
Not Reported
FS14
Initiatives to improve access to financial services for
disadvantaged people.
Not Reported
SO9
Operations with significant potential or actual negative
impacts on local communities.
Fully
Prime Banks
operations have no
negative impacts on
local communities.
SO10
Prevention and mitigation measures implemented in
operations with significant potential or actual negative
impacts on local communities.
Not Reported
Corruption
SO2
Percentage and total number of business units
analyzed for risks related to corruption.
Not Reported
SO3
Percentage of employees trained in organization's anti-
corruption policies and procedures.
Not Reported
SO4 Actions taken in response to incidents of corruption. Not Reported
Public Policy
SO5
Public policy positions and participation in public policy
development and lobbying.
Not Reported
SO6
Total value of financial and in-kind contributions to
political parties, politicians, and related institutions by
country.
Fully
There have been no
contributions to
political parties
throughout the year.
Anti-Competitive Behavior
SO7
Total number of legal actions for anti-competitive
behavior, anti-trust, and monopoly practices and their
outcomes.
Fully
No legal actions have
been taken regarding
this issue.
409

Compliance
SO8
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with laws
and regulations.
Fully
No significant fines
have been paid during
the period.
Social: Product Responsibility
Level of
Reporting
Page no. Comments
Customer health and safety
PR1
Life cycle stages in which health and safety impacts of
products and services are assessed for improvement,
and percentage of significant products and services
categories subject to such procedures.
N/A
Not applicable for
banks as products
have no health
hazards
PR2
Total number of incidents of non-compliance with
regulations and voluntary codes concerning health and
safety impacts of products and services during their life
cycle, by type of outcomes.
N/A
Not applicable for
banks as products
have no health
hazards
Product and service labeling
PR3
Type of product and service information required by
procedures and percentage of significant products and
services subject to such information requirements.
Not reported
PR4
regulations and voluntary codes concerning product
and service information and labeling, by type of
outcomes.
Fully
PR5
Practices related to customer satisfaction, including
results of surveys measuring customer satisfaction.
Fully
FS16
Initiatives to enhance financial literacy by type of
beneficiary.
N/A
Not applicable for
No such incidence
have occured in 2013
banking institutions
Marketing Communications
PR6
Programs for adherence to laws, standards, and
voluntary codes related to marketing communications,
including advertising, promotion, and sponsorship.
Partially 395
395
PR7
regulations and voluntary codes concerning marketing
communications, including advertising, promotion, and
sponsorship by type of outcomes.
Fully
Customer Privacy
PR8
Total number of substantiated complaints regarding
breaches of customer privacy and losses of customer
data.
Fully
Compliance
PR9
Monetary value of significant fines for non-compliance
with laws and regulations concerning the provision and
use of products and services.
Fully
410
395
395
No significant fines
have been paid during
the period.

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