dbbl capital mgt

8/3/2019 Dbbl Capital Mgt

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Background:

Dutch-Bangla Bank Limited (the Bank, DBBL) is a scheduledjoint venturecommercial bank

between local Bangladeshi parties spearheaded by M Sahabuddin Ahmed (Founder &Chairman) and the Dutch company FMO. DBBL was established under the Bank Companies

Act 1991 and incorporated as a public limited company under the Companies Act 1994 in

Bangladesh with the primary objective to carry on all kinds of banking business in Bangladesh.

DBBL commenced formal operation from June 3, 1996. The Bank is listed with the Dhaka

Stock Exchange Limited and Chittagong Stock Exchange Limited.

DBBL is most widely recognized for its donations to social causes and its IT investment

(largest ATM network). However it has recently stated that it will stop expansion on its ATM

network as the current numbers have exceeded demand and hence diminishing returns (if any).

Although it is widely believed it is a loss-making/subsidized unit which DBBL rationalizes as

quasi CSR.

Profile:

Dutch-Bangla Bank Limited

Type-Private (Non-Government), (DSEDUTCHBANGLA)

Industry-Banking

Founded-Dhaka,Bangladesh (1995)

Headquarters-Dhaka, Bangladesh

Key people-M Sahabuddin Ahmed -Founder & Chairman

Products-Banking services, ATM services, Consumer Banking

Corporate BankingInvestment Banking

Employees-1600

Capital Management:

The bank is committed to maintain a strong capital base to support business growth, comply

with all regulatory requirements, and obtain good credit rating and CAMELS rating and to

have a cushion to absorb any unforeseen shock arising from credit, operational and market

risks.
http://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Dhaka_Stock_Exchangehttp://en.wikipedia.org/wiki/Dhaka_Stock_Exchangehttp://en.wikipedia.org/wiki/Chittagong_Stock_Exchangehttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Dhaka_Stock_Exchangehttp://www.dsebd.org/displayComany.jsp?name=DUTCHBANGLhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Dhaka_Stock_Exchangehttp://en.wikipedia.org/wiki/Dhaka_Stock_Exchangehttp://en.wikipedia.org/wiki/Chittagong_Stock_Exchangehttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Dhaka_Stock_Exchangehttp://www.dsebd.org/displayComany.jsp?name=DUTCHBANGLhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Investment_Bankinghttp://en.wikipedia.org/wiki/Joint_venture


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Tools and Technique:

Increased capital requirement for sustainable business growth.

Keeping sufficient cushion to absorb unforeseen shock or stress.

Cost effective options for raising Tier 1 and Tier 2 capital.

Improving credit rating and CAMELS rating of the bank.

Meeting regulatory requirements.

Meeting covenants of lenders.

The board is responsible to ensure capital management within a broad framework of risk

management.

The bank has been perusing a dividend policy that must ensure satisfactory return for

shareholders as well as sustainable growth of the bank with strong capital adequacy ratio toprotect greater interest of depositors and shareholders.


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http://en.wikipedia.org/wiki/File:DbblLogo.jpg


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Tier 1 capital

Item Taka

Paid up Share Capital 1000000000

share premium 11067500

statutory reserve 1197524880

dividend equalization reserve 25266875

share capital 500000000

retained earnings 177329775

Total 2911189030

Tier 2 Capital

Item Taka

Subordinated debt 1423007500

Asset Revaluation Reserve 244900889

Revaluation Reserve of HTM securities 64502264

Total 1732410653


6/8

Risk Weighted Asset

Item Taka

Loans and advances (41016622637* 100%) 41016622637

Balance with other bank (1901459632* 20%) 380291926

Money at call and short notice

(2500000000*50%)

1250000000

Total 42646914563

Tier 1 CAR =T1RWA

= T1RWA

= 291118903042646914563


7/8

= 0.0682625943712635

= 6. 823%

Tier 2 CAR =T2RWA

= 173241065342646914563

= 0.0406221803089835

= 4.06%

CAR= T1+T2RWA


8/8

= 2911189030+173241065342646914563

= 0.108884774680247

= 10.88%

dbbl capital mgt

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