CREDIT RATING REPORT

On
COMMERCIAL BANK OF CEYLON PLC-BANGLADESH OPERATIONS





Page 1 of 15

Address:
CRISL
Nakshi Homes
(4
th
& 5
th
Floor)
6/1A, Segunbagicha,
Dhaka-1000
Tel: 9530991-4
Fax: 88-02-9530995
Email:
crisldhk@crislbd.com

Analysts:
Md. Shohel Khan
shohel@crislbd.com

Farzana Yasmin
farzana@crislbd.com



Entity Rating
Long Term: AAA
Short Term: ST-1

Outlook: Stable



COMMERCIAL BANK
OF CEYLON PLC-
BANGLADESH
OPERATIONS




CHAIRMAN
D. S. Weerakkody

COUNTRY DIRECTOR
S. Prabagar


TOTAL ASSETS
Tk. 26,240.55 million


TOTAL EQUITY
Tk. 4,811.22 million


TOTAL LOANS & ADV
Tk. 16,344.62 million







Bangladesh operation of
a Foreign Bank










Date of Rating June 20, 2013
Long Term Short Term
Surveillance Rating AAA ST-1
Outlook Stable


1.0 RATIONALE

CRISL has reaffirmed its Long term rating to AAA (pronounced as triple A) and Short Term
Rating to ST-1 of Commercial Bank of Ceylon PLC (Bangladesh Operation) through an in-
depth analysis of the operational and financial performance of the bank along with all its
relevant quantitative and qualitative factors. The basis of the evaluation was the financials of
the bank up to December 31, 2012 and other prevailing factors up to the date of rating. The
rating reflect banks overall superiority in various segments of operation to remain at the
highest rating of CRISL.

The Bank continues to maintain its improved financial performance over the year as reflected
through the financial results for 2012. The net interest income and operating income have
increased to TK. 956.10 million and TK. 1,851.68 million in 2012 from TK. 698.96 million and
Tk. 1,588.81 billion in 2011 respectively. CRISL views CBCP's loan and advances are well
diversified with around 51.68% in industrial credit while, 17.98% in trade service and the rest
30.35% in diversified sectors. The bank continued to main adequate provision against its
classified loans to keep the bank almost safe from loss that might arise from the counterparty
defaults. Against classified loan of TK.128.55 million CBCP has maintained provision worth of
TK. 219.87 million in 2012. The bank has been operating at the level of LD ratio (Loan to
Deposit Ratio) of 89.58% against a limit of up to 81% as prescribed by the central bank.

Banks rated in this category are adjudged to be of best quality, offer highest safety and have
highest credit quality. Risk factors are negligible. Changing economic circumstances are
unlikely to have any serious impact on this category of banks. The Short term rating ST-1
indicates highest certainty of timely repayment of its financial obligations. Short-term liquidity
including internal fund generation is very strong and access to alternative sources of funds is
outstanding. Safety is almost like risk free Government short-term obligations.

CRISL also viewed the bank with Stable Outlook for its performance in line with the pace of
industry.


2.0 CORPORATE PROFILE

Commercial Bank of Ceylon PLC-Bangladesh Operations (CBCP) has been operating in
Bangladesh since 2003 as a foreign commercial bank by acquiring the operations of Credit
Agricole Indosuez (CAI). After acquiring the operations of Credit Agricole Indosuez in
Bangladesh, CBCP established its business with a clear vision To be the Bank of Excellence in
Service and Commitments. Commercial Bank of Ceylon PLC (CBC-PLC) was incorporated on
June 25, 1969 as a public limited company in Sri Lanka under the Companies Ordinance No.
51 of 1938 and was licensed as a commercial bank under the provisions of Sri Lanka Banking
Act No. 30 of 1988 with a clear mission Redefining convenience in financial services. At
present CBC-PLC is the largest private commercial bank in Sri Lanka and continuously has
been awarded the Best Bank in Sri Lanka by The Global Finance Magazine (USA) for the last
decade. The Bangladesh operation of the bank is managed from its corporate office at Hadi
Mansion, 2 Dilkusha Commercial Area, Dhaka-1000.

2.2 Ownership Pattern
During the period under surveillance, few changes have been found in the ownership pattern
of the bank. Being a branch operation of a foreign bank, CBCP has been licensed by
Bangladesh Bank (BB) through keeping required regulatory capital with BB. Thus there is no
REPORT: RR/2486/13
This is a credit rating report as per the provisions of the Credit Rating Companies Rules 1996. CRISL long-term rating is valid
for only one year and short term rating for six months from the date of rating. After the above periods, these ratings will not
carry any validity unless the bank goes for rating surveillance.
CRISL followed Bank/FI Rating Methodology published in CRISL website www.crislbd.com