Annual Report 2015 Annual Report 2015 Partial view of attendance of the hon'ble Shareholders and members of the Board of Directors at 19th AGM NOTICE OF THE 20th ANNUAL GENERAL MEETING Notice is hereby given that the 20th Annual General Meeting (AGM) of the Hon’ble Members of Dutch-Bangla Bank Limited (the Company, the Bank) will be held on Wednesday, March 30, 2016 at 10:00 A.M. at ‘Ballroom’ of Pan Pacific Sonargaon Hotel, Dhaka-1215, Bangladesh to transact the following business: v. The election of Directors of the Company will be dealt Agenda with as per rules and regulations in force. 01. To receive, consider and adopt the Audited vi. (a) The existing auditors, M/s. Hoda Vasi Chowdhury & Co., Chartered Accountants will retire and as Financial Statements of the Company with per rule, they are not eligible for re-appointment. Auditors’ Report thereon and the Directors’ Report Therefore, a new auditor is required to be appointed for the year ended December 31, 2015. for the year 2016 by the Members in the 20th Annual 02. To declare dividend for the year 2015. General Meeting. 03. To elect Directors. (b) The last date for submission of notice of 04. To appoint Auditors for the year 2016 and fix up nomination for appointment of auditor by a Member their remuneration. of the Company was March 03, 2016 and last date for withdrawal was March 07, 2016. By order of the Board (c) The auditors must be competent in terms of BCD Circular Letter No. 33 dated December 23, 1992 of Bangladesh Bank and to be included in both the panels of Bangladesh Bank and Bangladesh Securities & Exchange Commission. Md. Monirul Alam, FCS vii. Annual Report including the Directors’ Report and Company Secretary Audited Financial Statements of the Company for Dated: Dhaka, March 16, 2016 the year ended 31st December 2015 will be available at the Company’s Website (www.dutchbanglabank. NOTES com) before the date of AGM. i. The ‘Record Date’ for the purpose was Tuesday, viii. Hon'ble Members were requested to update their March 15, 2016. mailing address with cell No., bank account No., ii. The Members’ whose names would appear on the branch routing No., signature and other related ‘Record Date’ in the Member / Depository Register of information in their BOID number before Record Date. the Company are eligible to attend the meeting and ix. Hon'ble Members were requested to provide their entitled to dividend. 12 (twelve) digits Taxpayer's Identification Number iii. Hon’ble Members are requested to submit their (e-TIN) to their Depository Participants (for BOID written option to the Company regarding the way of number holders) and share department of the Bank receiving dividend within March 20, 2016, otherwise, (for Folio number holders) with a view to update their the dividend will be paid through BEFTN or any other records before the Record Date, failing which, Income mode as may be deemed appropriate by the Company. Tax at Source will be deducted from Cash Dividend @ iv. A Member eligible to attend and vote at the Annual 15% (fifteen percent) instead of @ 10% (ten percent) General Meeting may appoint a proxy to attend and (for individual) as per income tax rules in force . vote on his / her behalf. Proxy Form must be affixed x. No gift or benefit in cash or kind shall be paid / with revenue stamp of Taka 20.00 and submitted to offered to the Hon’ble Members in the 20th AGM of the Registered Office of the Company not later than the Bank as per BSEC Circular and listing regulations 72 hours before the time fixed for the Annual General of Stock Exchanges. Meeting. Vision Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL’s essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development. Mission Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social cause. “Profits alone” do not hold a central focus in the Bank’s operation; because “man does not live by bread and butter alone”. Core objectives Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool of esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marques "YOUR TRUSTED PARTNER". CONTENTS notice of the 20th annual general meeting 4 vision 5 mission 7 core objectives 9 the board and its committees 12 chairman’s foreword 13 from the desk of the managing director 17 stakeholders’ information 21 segments analysis 40 corporate governance 43 status of compliance with the conditions imposed by BSEC on corporate governance 49 report of the audit committee of the board 60 certificate of managing director and chief financial officer (CFO) to the board 62 certificate on compliance status of corporate governance guidelines of BSEC 63 risk management 65 disclosures on risk based capital (Basel III) 91 banking automation 121 financial inclusion 147 awards 163 agreements signed 167 events 179 retail banking, school banking & SME finance 187 agricultural credit 199 green banking 209 social cause 219 economy and financial market 295 some of the projects financed by Dutch-Bangla Bank 315 directors’ report 329 directors’ responsibility for internal control and financial reporting 356 auditors’ report 357 financial statements 361 off-shore banking unit 429 top management of dbbl 441 dbbl branches 442 forward looking statements 449 list of abbreviations 450 proxy form 451 ANNUAL REPORT 2015 11 THE BoarD & ITS committees The Board Chairman Mr. Sayem Ahmed Directors Mr. Abedur Rashid Khan : Sponsor Director Mr. Bernhard Frey : Nominee of Ecotrim Hong Kong Limited Mr. Md. Fakhrul Islam : Elected from General Public Shareholders’ Group Mr. Md. Nazim Uddin Bhuiyan, FCMA : Independent Director Mr. Mohd. Khorshed Alam : Independent Director Mr. K. Shamshi Tabrez : Ex-officio Director (Managing Director) The Committees of the Board 1. Executive Committee Mr. Abedur Rashid Khan : Chairman Mr. Sayem Ahmed : Member Mr. K. Shamshi Tabrez : Member 2. Audit Committee Mr. Md. Nazim Uddin Bhuiyan, FCMA : Chairman Mr. Md. Fakhrul Islam : Member Mr. Mohd. Khorshed Alam : Member 3. Risk Management Committee Mr. Abedur Rashid Khan : Chairman Mr. Sayem Ahmed : Member Mr. Md. Nazim Uddin Bhuiyan, FCMA : Member Founder, Dutch-Bangla Bank & Chairman, Dutch-Bangla Bank Foundation Mr. M. Sahabuddin Ahmed chairman’S foreWORD Bismillahir Rahmanir Rahim Eligibility Ranking to Group 5, one notch below India but ahead of all other South Asian neighbors. Bangladesh Dear Shareholders achieved BA3 (Moody’s) and BB- (Standard and Poor’s) with stable outlook for the 6th consecutive year. Stable Assalamu Alaikum real GDP growth and strong external balances helped It is a great pleasure and honor to welcome you at the Bangladesh to achieve BB- rating with stable outlook 20th Annual General Meeting of Dutch-Bangla Bank from Fitch Ratings for the first time. Consolidation of Limited. On behalf of the Board of Directors and from macroeconomic stability, foreign exchange reserve growth myself, I would like to express my sincere gratitude to all and poverty decline maintained pace in FY 2015, setting of you for your active support. It is your kind patronage the stage for transition to a higher growth trajectory. and relentless support that have always resulted in Dutch-Bangla Bank’s main goal, regardless of any continued success for this bank. business environment, is for a safe and steady growth. In its 20 years of existence, Dutch-Bangla Bank has The Bank benefited heavily because our loan portfolio transformed the banking landscape of Bangladesh with its reflected by years and years of conservative banking innovation and integrity. The Bank continues to grow with practices. Dutch-Bangla Bank was largely immune to the values and vision set by its founder over 20 years ago. many large-scale frauds and loopholes in the banking system in the recent years. But the Bank did take the Business Environment national issues that came to light and Bangladesh Bank guidelines to make our internal controls stronger and The Bangladeshi economy registered 6.5% GDP growth safer. in FY 2015 against GDP growth of 6.1% in FY 2014. In absence of high agricultural growth, the 6.5 percent GDP The Bank has adopted new technologies and guidelines growth was mainly due to the manufacturing and services that make every part of the Bank more transparent to sectors. The manufacturing sector grew by 9.6 percent, the central management. It has cut down the processes followed by services sector (5.8 percent) while the that used to take hours, will now take a few minutes. The agriculture sector grew by a moderate 3.0 percent. Out Bank has introduced new divisions that are equipped to of the overall GDP growth, 3.1 percent was contributed by handle tasks faster in a transparent manner. the services sector, followed by the manufacturing sector (2.9 percent) and the agriculture sector (0.5 percent). Mobile Banking and Agent Banking Bangladesh Bank pursued a cautious yet growth friendly Dutch-Bangla Bank continues to make advancements in monetary policy stance for FY 2015. The objective of Mobile Banking. More importantly, the Bank takes a fully the monetary policy was to attain the target growth as KYC compliant mobile banking stance.