Stress testing

a) Core capital (Tier I) TK  Fully Paid-up Capital            2,057,210,100 

Statutory Reserve            1,449,995,550 

Surplus in Profit & Loss Account               225,613,894 

Proposed Bonus Share  1,1 31,465,555 Total Eligible Tier-I Capital            3,732,819,544 

b)Supplementary capital (Tier II)

General provision on Unclassified Loan & Advances               550,368,554 

Provision for Off Balance Sheet Items               222,792,684 

Surplus value of equity instruments up to 10%               318,485,035 

Total Eligible Tier-II Capital            1,091,646,273 

A. Total Eligible Capital 4,824,465,817

Total risk-weighted assets (RWA) 44569332290B. Total required capital (10% of Total RWA)            4,456,933,229 

Capital Surplus / (Shortfall) [A-B]               367,532,588 

Capital adequacy ratio 10.82%

Interest Rate Shock         tk in mn.a Magnitude of Shock   1% 2% 3%

b Fall in MVE‐(on‐balance sheet)              139             278             416 

c Net fall in MVE‐(on‐balance sheet & off‐balance sheet)              139             278             416 d Tax Rate   42.50% 42.50% 42.50%

e Tax adjusted loss                 80             160             239 

f Total Regulatory capital           4,824          4,824          4,824 

g Revised Capital           4,745          4,665          4,585 

h Risk weighted assets         44,569        44,569        44,569 

i Revised risk weighted assets         44,490        44,410        44,330 j CAR   10.82% 10.82% 10.82%k Revised CAR   10.66% 10.50% 10.34%

l Fall in CAR (% age points)   0.16% 0.32% 0.48%

Exchange rate Shock

   

Adverse Movement 5% 10% 15%

Net Exposure 10072 10072 10072

Exchange rate loss 504 1007 1511

Tax Rate 42.50% 42.50% 42.50%

Tax adjusted loss 290 579 869

Revised Capital 4535 4245 3956

Revised risk weighted assets 44280 43990 43701

Revised CAR (%) 10.24% 9.65% 9.05%

Fall in CAR (%) 0.58% 1.17% 1.77%

1. Increase in NPLs: 20101% 2% 3%

Total Loan (in million) 42190.40 42190.4042190.4

0

Total Performing Loan 39983.53 39983.5339983.5

3Total NPLs 2206.87 2206.87 2206.87NPLs to Loan(%) 5.23% 5.23% 5.23%Increase in NPLs 399.84 799.67 1199.51Increase in Provisions (after 399.84 799.67 1199.51Tax adjusted Provision (not 399.84 799.67 1199.51Revised Capital 4424.63 4024.80 3624.96Revised risk weighted assets 44169.50 43769.66 43369.8CAR 10.82% 10.82% 10.82%Revised CAR (%) 10.02% 9.20% 8.36%

2. Downward Shift in NPLs catagories 50% 80% 100%Weighted amount of provision 1297.72 1297.72 1297.72Provision after shift in categories 1506.69 1588.32 1642.73Increase in Provision 208.97 290.60 345.01Tax adjusted Provision (not applicable) 208.97 290.60 345.01Revised Capital 4,615.49 4,533.87 4,479.45 Revised risk weighted assets 44,360.36 44,278.73 44,224.32 CAR 10.82% 10.82% 10.82%Revised CAR (%) 10.40% 10.24% 10.13%

3. Increase of NPLs in particular 1 or 2 sectors

Readymade Garments5.00% 7.50% 10.00%

Total Loans in Garments and textile sector sector 10383 10383 10383Increase in NPLs under B/L category 519 779 1038Increase in provision 519 779 1038Revised Capital 4,305.30 4,045.71 3,786.13 Revised risk weighted assets 44,050.16 43,790.58 43,530.99 CAR 10.82% 10.82% 10.82%Revised CAR (%) 9.77% 9.24% 8.70%Fall in CAR (%) 1.05% 1.59% 2.13%

2010

4. Increase in NPLs due to default of Top 10 borrowers5.00% 7.50% 10.00%

Total Loan to Top 10 large borrowers 1,135.21 1,135.21 1,135.21 Increase in NPLs under B/L Category 56.76 85.14 113.52 Increase in Provisions 56.76 85.14 113.52 Tax adjusted Provision (not appilcable) 56.76 85.14 113.52 Revised Capital 4,767.71 4,739.33 4,710.94 Revised risk weighted assets 44,512.57 44,484.19 44,455.81 Revised CAR (%) 10.71% 10.65% 10.60%Fall in CAR (%) 0.11% 0.17% 0.23%

2010

5. Increase in NPLs up to that position in which whole capital will be wiped out 2010

Total Loan (in million) 42,190 Total Performing Loan(in million) 39,984 Total NPLs 2,207 NPLs to totalLoan(%) 5.23%Total Capital (in million) 4,824 Increase in NPL 4,824 Revised Capital 0.00Revised risk weighted assets 39,744.87 Revised CAR (%) 0Fall in CAR (%) 10.82%Revised NPLs 7,031 Revised NPLs to Loans (%) 16.67%

10% 20% 40%

Total Exposure in Stock market

1,714

1,714

1,714

Fall in Stock Prices 171 343 686

Tax 42.5% 42.5% 42.5%

Tax adjusted loss 99 197 394

Revised Capital 4726 4627 4430

Revised risk weighted assets 44471 44372 44175

Revised CAR (%) 10.63% 10.43% 10.03%

Fall in CAR (%) 0.20% 0.40% 0.80%

2010

10% 20% 30%

Liquidity Ratio 24% 24% 24%

Fall in Liquid Liabilities 5109 10217 15326

Revised Liquid Assets 7274 2166 -2943

Revised Liquid Liabilities 45977 40869 35760

Revised Liquidity Ratio 16% 5% -8%