NRB Commercial Bank Limited Bangladesh Bank Bangladesh Securities & Exchange Commission Registrar of Joint Stock Companies & Firms
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Annual Report 2019 CONTENTS Letter of Transmittal ....................................................... 04 Corporate Governance Report ...................................... 83 Notice of the 7th Annual General Meeting .................... 05 Corporate Governance .................................................. 84 Corporate Profile ............................................................ 06 Status of Compliance with the Corporate Governance 94 Associates ....................................................................... 08 Code (CGC) ..................................................................... Mission ........................................................................... 09 Vision .............................................................................. 09 Risk Management Report, Market Disclosure on Risk 107 Strategic Objectives ....................................................... 10 Based & Capital Under Basel-III ................................... Core Values .................................................................... 11 Risk Management .......................................................... 108 Code of conduct ............................................................. 12 Pillar III of Basel III .......................................................... 113 Forward Looking Statement ........................................... 13 Chronicles ....................................................................... 14 Corporate Social Responsibility (CSR) .......................... 121 From the Desk of the Chairman Words from the 17 Managing Director & CEO .............................................. Human Capital the Key to brilliant ACT ....................... 125 From the Desk of the Chairman .................................... 18 ICT vigilant with demand ............................................... 129 Words from the Managing Director & CEO ................... 21 NRBC Agent Banking Posture ......................................... 135 Digitalized Partner of Government ................................ 137 Board of Directors’ Profile ............................................. 25 NRBC Green Banking Initiative ....................................... 138 Responsibility Statement of MD and CFO ..................... 140 Sponsors ......................................................................... 30 Auditors’ Report along with Audited Financial 141 Committees of NRBC Bank ............................................ 37 Statements to the Shareholders .................................. List of Executive 40 Branch Networks ............................................................ 42 NRBC Bank Securites LTD .............................................. 217 Last 5 Years Performance Indicators .............................. 51 Core Financial Performance ........................................... 54 NRBC Bank’s Products .................................................. 235 Non Financial Performance ........................................... 56 NRBC Bank Deposit Products ......................................... 236 NRBC Bank Retail Loan Products ................................... 241 Directors’ Report ............................................................ 57 NRBC Auto Loan ............................................................. 242 NRBC Home Loan ........................................................... 243 Audit committee Report & Credit Ratings .................... 79 NRBC Business Loan ....................................................... 244 Audit Committee Report ................................................ 80 NRBC Education Loan .................................................... 245 Credit Ratings ................................................................. 82 Proxy Form ..................................................................... 247 LETTER OF TRANSMITTAL All Shareholders of NRB Commercial Bank Limited Bangladesh Bank Bangladesh Securities & Exchange Commission Registrar of Joint Stock Companies & Firms Dear Sir(s) Annual Report of NRB Commercial Bank Limited for the year ended on 31st December 2019. We are pleased to enclose a copy of Annual Report – 2019, along with the Audited Consolidated Financial Statements for the year ended on 31st December 2019 for your kind information and record. The Report includes consolidated Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity, Liquidity Statement, along with Notes thereon and Directors’ Report, of NRBC Bank for the year ended on 31st December 2019. Best regards Yours truly, Md. Mozammel Hossain, FCA Company Secretary Annual 4 Report 2019 NOTICE OF THE 7TH ANNUAL GENERAL MEETING Virtual Shareholders’ Meeting Notice is hereby given that the th7 Annual General Meeting (AGM) of NRB Commercial Bank Limited will be held on Sunday, 7th June 2020, at 12:00 noon through video conference to transact the following business: AGENDA a) Consideration and adoption of Directors’ Report and the Audited Financial Statements of the Bank for the year ended 31st December 2019 together with the Auditors Report thereon. b) Declaration of Dividend for the year ended 31st December 2019 as recommended by the Board of Directors. c) Election/Re-Election of Directors. d) Appointment of Statutory Auditors and fixation of their remuneration. By order of the Board of Directors Md. Mozammel Hossain, FCA Company Secretary Dated: Dhaka, 17th May 2020 NOTES I. Closure of Books of Register has been fixed on Wednesday, 20 May 2020. II. Members whose names appeared on the Members Register as on Book Closure Date i.e. Wednesday, 20 May 2020 are eligible to attend the 7th Annual General Meeting and receive dividend. III. A Member entitled and vote at the Annual General Meeting may appoint a proxy to attend and vote on his/her stead. IV. The instrument appointing proxy duly filled and stamped Tk.20.00 must be submitted at the Registered Office of the Company at least 72 (seventy-two) hours before the time for holding of the meeting. Annual Report 2019 5 CORPORATE PROFILE PublicationFacts & Figure as on 31 December 2019 Name of the Company NRB Commercial Bank Limited Registered Office Red Crescent Jashim Trade Centre, 114 Motijheel C/A Dhaka-1000, Bangladesh Phone : 880-02-9573422-30, Fax: 880-02-9573421 Swift Code: NRBB BDDH Email: [email protected] www.nrbcommercialbank.com Legal Form Public Limited Company Date of Incorporation February 20, 2013 Formal Inauguration April 2, 2013 Core Banking Segment Conventional Banking Islamic Banking Window Bangladesh Bank Approval : November 14, 2019 Inauguration : January 20, 2020 Window of Branch : 8 Branches Agent Banking Bangladesh Bank Approval : May 29, 2014 Inauguration : December 17, 2015 Agent Point : 564 Agent Points Name of NRBC Bank’s Subsidiary NRBC Bank Securities Limited Incorporation : September 20, 2015 Registered Office : 114 Motijheel C/A, Dhaka-1000 Network Total Branches : 75 Total ATM : 53 Total RMA : 160 Banks (more than 700 individual branches in 37 countries) Annual 6 Report 2019 Chairman Mr. Tamal S M Parvez Chairman –Executive Committee Mr. Mohammed Adnan Imam FCCA Chairman – Risk Management Mr. Abu Mohammad Saidur Rahman Committee Chairman – Audit Committee Mr. Rafikul Islam Mia Arzoo Managing Director & CEO Mr. Md. Mukhter Hossain Company Secretary Mr. Md. Mozammel Hossain Chief Anti Money Launder Officer Mr. Kabir Ahmed Chief Risk Officer Mr. Serajul Amin Ahmed Chief Financial Officer Mr. Harunur Rashid Publication Annual Report-2019 Auditors MABS & J Partenrs K. M. Hasan & Co. Tax Consultants K M Hasan & Associates Credit Rating Agency Credit Rating Information & Services Limited (CRISL) Authorized Capital Tk. 10,000 Million Capital Tk. 8,964.03 Million Paid-up Capital Tk. 5,710.95 Million TK. 5,939.39 Million [If Stock Dividend @4% is approved by Shareholders in 7th AGM Employees No. of Official : 1036 No. of Staff : 5 Deposits 54,085.64 Million Return on Investment/Equity (ROI/ROE) 15.04% Return on Asset (ROA) 1.47% Capital to Risk Weighted Assets Ratio 13.50% (CRAR) Net Asset Value per Share Tk. 14.36 Per Share Net Operating Cash flow per share Tk. 12.80 Per Share Loans & Advances Tk. 62,059.56 Million Reserves Tk. 1,463.85 Million Total Assets Tk. 90,227.26 Million Earnings per Share Tk. 2.02 Net Asset Value Tk. 8,241.95 Million Total NOSTRO Account 13 Number of Internet Banking 14398 Transactions Value of Internet Banking TK. 330.64 Million Transactions Annual Report 2019 7 Bangladesh Association of Association of Bankers Banks (BAB) Bangladesh Limited Bangladesh Institute of Bank Primary Dealers Bangladesh Management (BIBM) Limited (PDBL) American Chamber of Commerce Foreign Investors’ Chamber of in Bangladesh (AmCham) Commerce & Industry (FICCI) The Institute of Bankers Bangladesh Foreign Exchange Bangladesh (IBB) Dealer Association (BAFEDA) Annual 8 Report 2019 MISSION The bank shall devote in creating confidence for investment needs and aspirations of its customers, to develop new and among the Bangladeshi expatriates by offering them desired re-engineer the process of service delivery. services, attractive profitability and secured investment through our various financial products. The bank shall always be vigilant to maintain banking business risks within its tolerable limit in order to protect depositor’s The bank shall create extra-ordinary opportunities to the interest and ensure highest return to the shareholders. intending wage earners in getting jobs abroad through our dependable and