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The Foundation of our Strength

Our Vision, Missions and Commitments to Clients

Our Vision
To be a premier banking institution in Bangladesh and contribute significantly to the
national economy.

Our Missions
High quality financial services with state of the art technology
Fast customer service
Sustainable growth strategy
Follow ethical standards in business
Steady return on shareholders equity
Innovative banking at a competitive price
Attract and retain quality human resource
Commitment to Corporate Social Responsibility

Our Commitment to Clients

Ours is a customer focused modern banking institution in Bangladesh. We deliver
unparalleled financial services to Retail, Small and Medium Scale Enterprises (SMEs),
Corporate, Institutional, Governmental and individual clients through branch outlets
across the country. Our business initiatives center on the emerging demands of the market.
Our commitments to the clients are the following:
Provide service with high degree of professionalism and use of modern technology.
Create long-term relationship based on mutual trust.
Respond to customer needs with speed and accuracy.
Share their values and beliefs.
Grow as our customers grow.
Provide products and service at competitive pricing.
Ensure safety and security of customers valuables in trust with us
Corporate Profile Ethical Principles
Name of the Company : Southeast Bank Limited Southeast bank believes that its efforts to become a leading bank in the private sector will never be achieved
Chairman : Alamgir Kabir, FCA nor sustained just by creating effective corporate governance, inculcating professionalism among its staff and
Vice Chairman : Ragib Ali strictly adhering to rules and regulations. We believe that our aims and objectives can only be realized fully

Managing Director (CC) : M. A. Muhith and sustained over time by adherence to ethics that cannot always be built into sets of rules and regulations.
Company Secretary : Muhammad Shahjahan In this belief in ethics that motivates the bank in its dealings with those with whom it interacts.

Legal Status : Public Limited Company
A. We adhere to the following principles in dealing with Customers
Date of Incorporation : March 12, 1995
1. Strictly follow ethical banking practices.
Corporate Philosophy and Performance Registered Office : Eunoos Trade Centre, 52-53, Dilkusha C/A
2. Provide fair treatment to all customers, depositors and borrowers without any discrimination.
corporate profile 2 (Level 2, 3 & 16), Dhaka-1000
Line of Business : Banking 3. Provide speedy customer service at a very competitive cost.
Ethical Principles 3 4. Deal with customers in a transparent manner and without any hidden cost.
10 years at a glance 4 Authorized Capital : Tk.3,500.00 million
5. Maintain strict secrecy of customer account.

Paid Up Capital : Tk.2,852.20 million
Year of Initial Public Offer : 1999 6. Provide free financial advice to clients.
Stock Exchange Listing : April 10, 2000 (DSE) & April 24, 2000 (CSE) 7. Deal quickly with complaints received from the customers. We endeavour continuously to build trust
Governance and understanding with customers.
Phone : 9571115, 7160866, 7173793, 9555466 & 9550081
board of directors 5 8. We give very competitive return to the depositors on their investment.
Fax : 9550086, 9550093, 9563102
management team 6
SWIFT : SEBDBDDHXXX 9. We listen to our customers and work for improvement of customer service as per their suggestion.
chairmans report 8
E-mail : 10. We never desert our customers in adversity.
from the desk of managing director (cc) 22
Website : 11. We always keep promises we make.
boards report to shareholders 24

Financial Calendar in 2008

report on corporate governance 66 B. We follow the following principles in dealing with Shareholders
report on risk management 72 1. Adequate disclosure of corporate information and operational results to help them take suitable
report on corporate social responsibility 76 investment decisions / options.
report of the audit committee 78 Dividend declaration for 2007 March 12, 2008
2. Stable Dividend Policy and payment of good dividend.
report of the shariah council 79 Publication of Financial Statement 2007 March 24, 2008
3. Dialogue with them and implementations of their suggestions for improvement
value added statement 80 Record Date for 13th AGM April 03, 2008
4. Equal treatment to all shareholders irrespective of their individual size of shareholding.
economic value added statement 81 13th Annual General Meeting held April 28, 2008
market value added statement 82 Cash Dividend Paid May 05, 2008
C. We follow the following principles in dealing with our Regulators

Stock Dividend Credited May 11, 2008
1. We are transparent in operations and governance.

Un-audited half yearly accounts (June 2008)
mailed to Shareholders July 24, 2008 2. We have a culture of timely compliance of regulatory requirements.
Financial Statements 3. We give their suggestions and directives great value that we implement for improvement of our corporate
auditors report to shareholders 83 governance standard.
financial statements 84 January : Three New Branches opened at Chowmuhani-Noakhali,
Pahartali-Chittagong and Narayanganj. D. We follow the following principles for our Employees
Key Events in 2008

notes to the accounts 91

February : Decision taken to sponsor 24th National Boxing Championship - 1. We do not discriminate on grounds of religion, sex or race at any stage. We recruit the best on the basis
2008 arranged by Bangladesh Amateur Boxing Federation. of merit under a rigorous recruitment policy without any biasness or favoritism to anybody.
Information to Shareholders March : 15% cash and 25% Stock devidend declared for shareholders. 2. We pay competitive compensation package with career echelon for the really deserving candidates.
notice of 14th AGM 134 and 3. We care for our employees and respect them
list of branches 135 Business Policy and Managers' Conference held and Annual 4. We have clearly defined duties and responsibilities for every employee. No one is made a scapegoat for
Budget discussed. undefined responsibilities.
April : 13th Annual General Meeting held. 5. We have a zero tolerance for any act of dishonesty.
6. We provide a congenial work environment.
May : Money Transfer Agreement signed with world's third largest
7. We encourage freedom to our employees to give opinion for both qualitative and quantitative
money transfer company namely "Continental Exchange, Inc. USA".
improvement of the Bank.
June : Half-yearly operating profit reached Tk. 1,500 million.
July : Total Deposit crossed Tk. 60,000 million. E. We follow the following principles in respect of Society
1. We believe that the Bank gets business sustenance from the community in which it operates and
August : Managers' Conference held for review of operational performance.
therefore must remain responsive to the community and the society in reciprocity.
September : Total Import and Export business reached Tk. 77,000 million
2. We do not encourage projects which are not environment-friendly for financing by the Bank.
October : Total loans and advances crossed Tk. 55,000 million. 3. We provide material support for protection of environment.
November : Start of Centralized Bank Ultimus Core Banking System. 4. We give aid to the poor, helpless and natural-calamity-hit people.
December : Received "Certificate of Merit" (Banking Sector) from Institute of 5. We support charitable ventures.
Chartered Accountants of Bangladesh (ICAB) for Best Published 6. We give sponsorships to sports, culture, education, health-care and community development ventures.
Accounts and Reports-2007. 7. We support the women as a community.
Ten years at a Glance Board of Directors
In Million Taka

Chairman Executive Committee

PARTICULARS 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 Alamgir Kabir, FCA
Authorized Capital 3,500.00 3,500.00 3,500.00 2,500.00 2,500.00 2,500.00 2,500.00 500.00 500.00 500.00 Vice Chairman Alamgir Kabir, FCA
Ragib Ali
Paid up Capital 2,852.20 2,281.76 2,112.74 1,056.37 880.31 677.16 399.30 363.00 330.00 300.00
Reserve Fund/ Others 4,804.81 4,186.60 2,828.18 1,180.47 769.13 622.98 571.66 394.20 235.28 145.70 Ragib Ali
Directors M. A. Kashem
Total Capital (Tier-I+Tier-II) 7,657.01 6,468.36 4,940.92 2,236.84 1,649.44 1,300.14 970.96 757.20 565.28 445.70 M. A. Kashem Azim Uddin Ahmed
Deposit 68,714.67 55,474.05 46,056.18 38,258.15 27,930.84 19,618.82 15,343.45 10,570.25 8,569.70 7,512.49
Azim Uddin Ahmed Tahnoun A. Harun
Jusna Ara Kashem Dr. Zaidi Sattar
Advance 60,281.26 48,164.60 41,147.28 32,551.09 22,001.70 15,541.50 13,027.13 9,178.03 7,061.87 5,051.88 Duluma Ahmed M. A. Muhith
Bangla Capital Limited represented by
Investment 12,299.61 8,462.86 6,265.55 5,113.14 3,190.15 2,581.61 2,282.08 1,727.44 1,369.92 971.81
Tahnoun A. Harun
Import Business 58,019.77 38,470.34 35,125.12 29,079.30 20,229.62 16,270.80 12,817.01 12,187.37 11,239.14 8,228.50 Syed Shahid Ali

Audit Committee
Sirat Monira
Export Business 42,178.60 28,771.36 25,874.61 13,511.10 6,761.93 3,033.79 2,263.45 2,675.05 1,319.51 704.47 Karnafuli Tea Co. Limited represented by
Abdul Hye
Guarantee Business 15,078.99 9,008.32 8,656.80 7,975.00 4,717.82 3,391.19 2,502.48 1,854.50 1,306.24 907.18
Dr. Zaidi Sattar Chairman
Total Income 10,250.13 8,670.47 6,766.11 4,689.55 3,043.49 2,772.52 1,936.54 1,748.18 1,259.03 862.86 A.H.M. Moazzem Hossain Azim Uddin Ahmed

Total Expenditure 7,237.55 5,754.27 4,703.45 3,216.11 2,234.83 2,107.36 1,443.98 1,256.05 921.70 661.02

Managing Director Members

Operating Profit 3,012.58 2,916.20 2,062.66 1,473.44 808.66 665.16 492.56 492.13 337.33 201.84
(Current Charge) M. A. Kashem
Net Profit after Tax and Provision 887.24 1,222.97 909.88 374.20 294.69 256.06 253.56 270.74 172.84 170.48 M. A. Muhith Dr. Zaidi Sattar

Fixed Assets 2,685.56 1,708.11 1,300.39 790.62 313.73 288.02 48.81 36.26 71.13 78.37

Total Assets 81,181.53 64,370.69 53,706.12 43,294.81 33,744.96 23,135.74 18,882.48 14,468.66 11,710.56 8,336.17 Company Secretary

Earning per Share (Tk.) 31.11 42.88 59.71 35.42 43.52 45.38 69.85 82.04 57.61 56.99
Muhammad Shahjahan Shariah Council
Cash (%) 15% 15% 20% - - 20% 20% 30% 25% 15% Chairman
Dividend Professor Moulana Mohammad Salah-Uddin
Bonus Shares 20% (5:1) 25% (4:1) 8% (12.5:1) 20% (5:1) 30%(10:3) 20% (5:1) 10% (10:1) 10% (10:1) 10%( 10:1) -

Return on Equity (ROE) 12.06% 19.90% 17.98% 17.64% 17.87% 19.69% 26.11% 35.76% 30.58% 38.25% Members
A. S. M. Fakhrul Ahsan
Return on Asset (ROA) 1.09% 1.90% 1.66% 0.86% 1.00% 1.11% 1.34% 1.87% 1.48% 2.05% Moulana Abdul Hakim Azadi
Alamgir Kabir, FCA
Non Performaning Loan 4.12% 3.77% 3.97% 4.37% 4.96% 2.09% 1.99% 2.78% 2.95% 3.75%
Ragib Ali
Capital Adequacy Ratio 11.12% 13.00% 11.50% 6.90% 7.83% 9.20% 8.23% 8.77% 8.40% 9.52% M. A. Kashem
Azim Uddin Ahmed
Number of Correspondent Banks 145 140 138 130 122 80 45 40 39 34
Dr. Zaidi Sattar
Number of Foreign Correspondents 587 598 536 507 463 350 295 280 269 253 M. A. Muhith

Number of Shareholders 12,536 9,636 8,855 5750 4704 2912 1666 1429 1266 1129

Banking 1080 964 845 759 685 586 488 479 445 399
Number of
Non Banking 151 152 153 154 150 115 107 96 83 81

Number of Branches 46 38 31 31 27 23 19 13 12 12
Management Team

Managing Director
(Current Charge)
M. A. Muhith

Deputy Managing Director Executive Director

Syed Imtiaz Hasib M. Serajul Islam

Senior Executive Vice Presidents Vice Presidents

Saleh Uddin Ahmed Mirza Akhteruzzaman Begg
Mohammed Gofran Kamal Uddin
Muhammad Shahjahan Mahbubur Rahman Shabbir
Giash Uddin Ahmed Golam Akbar Chowdhury
S. M. Mainuddin Chowdhury Syed Nurul Bashar
Shahid Hossain Mohammed Hafizur Rahman
Shahabuddin Md. Jafar Nur Hossain Chowdhury
Md. Shafiqur Rahman Md. Mosharraf Hossain
Respected Members of the Board of Directors at the 13th Annual General Meeting held on April 28, 2008.
Abul Bashar
Lt Col Md Abdur Rafique, psc (Retd)
Executive Vice Presidents Muhammad Hajjaj-Bin-Mahfooz
Lutful Kabir Md. Abdul Naim

A. K. M. Nurul Alam Md. Shahjahan Sarker
Md. Anwar Hossain Md. Asadul Azim
Abdul Hamid Mia
M. Kamal Hossain
Haradhan Banik First Vice Presidents
Fazle Kader Ahmed
Shafiur Rahman
Senior Vice Presidents Md. Zakir Hossain
Md. Altafur Rahman Abdul Batin Chowdhury
Md. Abdul Wali Nuruddin Md. Sadeque Hussain
Md. Sawkat Hossain Arun Chandra Paul
Mustafizur Rahman Md. Saidur Rahman
Pritish Kumar Sarker Delowar Hossain
Shahid Atiqul Islam Md. Giash Uddin Bhuiyan
Mohammad Mahmud Hasan Saiful Islam Chowdhury
Md. Abdul Mannan Badruddoza Khan
Md. Shamsul Huda Amullya Chandra Adhikari
Anwar Uddin Md. Bazlur Rashid Khan
Mahfuzur Rahman Khan I.N.M. Mohaimen Billah A partial view of the respected shareholders at the 13th Annual General Meeting held on April 28, 2008.

A.T.M. Manjurul Alam

Md. Afzalul Kabir
adversely all sectors of the economy, including the banking sector. The economic meltdown in the USA
and fears of its adverse impact worldwide also did not help create the right business climate that in a small
measure has affected the banks in Bangladesh adversely. These factors notwithstanding, the performance
of Southeast Bank in the past year has been satisfactory. The Bank earned an operating profit of
Tk.3,012.58 million in 2008 posting a 3.31% growth. The deposits of the Bank stood at Tk.68,714.67
million as at December 31, 2008. In the year, the Bank conducted export business for Tk.42,178.60
million, import business for Tk.58,019.77 million, guarantee business for Tk.15,078.99 million, inward
remittance business for Tk.15,221.87 million and its total outstanding loans and advances to the borrower
customers of the Bank was Tk.60,281.26 million as on 31st December, 2008. The growth in the indicators
were 24%, 47%, 51%, 67%, 38% and 25% respectively.

03. Capital Management

An adequate amount of capital is of considerable importance to us. It plays the central role in the Banks
strategies. We have therefore always tried to maintain a correct balance between the demands of rapid
growth and the funds that the Bank has to maintain. For this reason, we have taken recourse to augmenting
our Paid Up Capital by issuing bonus shares. This is intended to create a strong foundation for the bank
and to protect it from risk factors that banking operations traditionally face.
Our Authorized Capital stood at Taka 3,500.00 million and Paid Up Capital reached Taka 2,852.20 million
as of 31st December 2008. On the same date, total Shareholders equity stood at Tk.7,357.27 million.

04. Independent Credit Rating

Credit Rating Agency of Bangladesh Limited (CRAB) did the Credit Rating of the Bank for the last two years.
We have engaged Credit Rating Information and Services Limited (CRISL) for credit rating of our bank for

05. Senior Management Team of the Bank

Southeast Bank has striven continuously to develop leadership qualities within the organization. In this

endeavour, the objective has been to enhance professionalism in the leaders, particularly in those in top
management position in order to build a highly efficient and dependable top management team. I am
Alamgir Kabir, FCA happy that the senior management of the Bank has been able to build up an excellent team of
professionals, implement better business practices and introduce a good number of financial products in
Bismillahir Rahmanir Rahim the Bank.

Dear Shareholders 06. Our Basel-II Preparedness

As you are aware, the New Capital Accord known as Basel-II is structured on the 3 (three) mutually
Assalamualikum reinforcing pillars. These are, first, capital adequacy requirement; second, self regulation by banks and
finally, market discipline. Basel-11 has three main features. These features are, first, calculation of risk
It gives me great pleasure to welcome all of you to the fourteenth Annual General Meeting of respected
weighted assets on a more detailed grasp on credit risk. Second, additional capital required for operational
and valued shareholders of Southeast Bank Limited. I feel honoured and privileged to present at this
risk. Finally, self discipline on the part of the banks and regulatory supervisions combined with market risk.
meeting a report about the Bank on its performance in the past year and our plans and prospects for the
future. Bangladesh has initiated financial reforms program in early 1990s as part of an on-going process of reforms.
Under the guidance of Bangladesh bank, the banking sector of Bangladesh is aiming at adopting Basel-II
01. New Head Office of the Bank codes. Bangladesh Bank has already formed 2(two) Committees for implementing Basel Core Principles.
The Head Office of our Bank has shifted to its own premises at Level 2, 3 and 16 of Eunoos Trade Centre, These are the National Steering Committee and the Co-ordination Committee. Bangladesh Bank has
52-53, Dilkusha Commercial Area, Dhaka. We have our own premises at level 4 and 6 also. The elegant decided tentatively to start implementation of the New Capital Accord (Basel-II) from January 2009.
and excellent environment and facilities in our Head Office will enable us to offer services of enhanced Southeast Bank is fully prepared to be compliant with Basel-II that will no doubt help our Bank grow in
quality as well as to respond to customers with higher level of reliability and efficiency. strength and stature. We have increased the Paid up Capital of the Bank to Tk.2,852.20 million by way of
issuance of bonus shares @25% in 2008. We are discreetly pursuing a policy to enhance the soundness
02. Economic Climate in Bangladesh in 2008 and Global Economic Meltdown
of our management by imposing self regulations for qualitative improvement. I am happy to report here
We have faced a difficult internal and external situation in 2008. In the country, our economic potentials that the regulatory supervisions that we have introduced have significantly increased our operational
were constrained by the nature of politics that has prevailed in the country that in turn has affected efficiency. As you are aware, Credit Rating of Banks has already been made mandatory. Credit Rating of
Chairman's Report
our Bank for the year 2008 has been done by Credit Rating Information and Services Limited. They have The entire edifice of our corporate governance is founded on the following principles:
identified a few areas for improvement that are being addressed to upgrade standard of management and
Transparency Trust Disclosure
operations. Bangladesh Bank has made it mandatory to maintain capital adequacy at minimum 10% with
Responsibility Respect Care for employees
effect from January 01, 2008. We have been complying with this. Our capital adequacy ratio stood at
11.12% as on 31st December, 2008. We have also placed due emphasis on addressing different risks Accountability Value Creation Corporate Social Responsibility
associated with banking business to ascertain our position and reduce risks. Compliance Stable Dividend Policy

07. Customer Service 10. Regulators Role in our Corporate Governance

Southeast Bank places paramount importance to the service it provides to the valued customers. For us, Bangladesh Bank is our primary regulator. It has strengthened its regulatory and facilitating role for progress
as well as to enhance pace of development of banking sector of Bangladesh with an appropriate
banking service for customers is more than day to day transactions. We believe firmly that customer
governance framework.. The efforts of Bangladesh Bank is encouraging and enabling the dynamic private
service is about building lasting partnerships with them. Ours is a full-house Bank. We provide full range
sector to unlock and realize the vast economic potentials of the country.
of banking services to individuals, entrepreneurs, Small and Medium sized Enterprises and corporate
bodies. Good Governance and good performance reinforce each other. It is very encouraging to observe that
Bangladesh Bank, Securities and Exchange Commission, Registrar of Joint Stock Companies and Firms
(RJSC), Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange Limited (CSE) have
08. People and Workplace
intensified regulatory focus in financial services and corporate governance. Southeast Bank is deeply
One of the goals of Southeast Bank is to create an environment where individuality is valued and committed to working even more closely with them for improvement of corporate governance standard.
encouraged among those who work for the Bank. In encouraging individuality, the emphasis continually As a corporate citizen, we share the joys and happiness, successes and glories, and above all the hopes
is to drive the individuals potentials for the greater good of the bank by building in them a team spirit. and aspirations of our beloved motherland.
Everyone who works for Southeast bank is encouraged to believe that working together as a team
multiplies strength of individuals. Skill acquisition and improvement of our staff members are the keys to 11. Human Resources Policy
our growth. We give them adequate training to enhance their competence and capability. Our employees
The objective of our human resource policy is to shape the future in a rapidly changing and developing
are free to realize their full potential and creativity irrespective of age, gender and religious identity. We
business environment. We try to build and deploy a highly effective, diverse, functional and professional
recruit people to help the Bank meet these objectives. In return, we strive to provide them a workplace
workforce. In the face of global economic meltdown, there are job-cuts in the developed world. To remain
and environment which is comfortable, encouraging, flexible and rewarding. We believe an appropriate
a competitive and sustainable entity, we cannot and shall not carry the inefficient and the non-performers.
remuneration policy is the key to employee productivity and retention.

Our goal of shaping the Bank is accomplished through policy development, implementation, evaluation
In 2008, our total employees stood at 1,231. Per branch employee stood at 26, income per employee was and consistently choosing the right people to fill the right positions. Because of our pursuance of well-
Tk.2.45 million, profit per employee before tax and provision was Tk. 0.72 million and asset per employee designed HR Policy, our people are better motivated. We provide our employees with a positive and
was Tk.65.95 million. Of the total employees 81.15% were male and 18.85% were female. supportive environment. We want their career progression with us. We provide them quality training and
career development opportunities. We intend to continue our competitive compensation package for our
employees. We are committed to developing policies on a continual basis to encourage all who work for
09. Corporate Governance
the Southeast Bank to exploit their full potentials.
Southeast Bank Limited believes in sound and effective governance as a preferred priority. It also believes
We aim to build long term relationship with our customers and with that in view, we aim to recruit,
that this is essential for the long term creation of value for the stakeholders of the Bank. Our corporate
develop and maintain competent, committed and flexible staff. Their career is closely linked with their
governance policies are designed to ensure the independence of the Board of Directors in policy matters
performance in the Bank.
and administration of the operations of the company by the Bank management within the purview of rules
and regulations. The Board acts to ensure that the Bank is responsibly managed for the long term benefit 12. Risk Management
of the Shareholders, employees, customers and the community in which it operates.
Awareness, evaluation and efficient management of risks always receive the top-most priority to the Bank.
Southeast Bank gives high priority to its internal control, comprehensive disclosure to regulatory The risks accompanying our banking business are increasing in both number and diversity. To manage and
authorities and shareholders, transparency and integrity in performance, accountability to shareholders reduce risks, we try to identify, measure, analyze, monitor and control them. Responsible lending has
and compliance of regulatory requirements. The Bank has appointed 2 (two) Directors from the depositors become a culture in our risk management process. Risk reports are submitted before the Audit Committee
of the Bank in compliance of Bangladesh Bank and Securities and Exchange Commission requirements. of the Board and the Board of Directors. The risks are regularly monitored. We follow the following
principles in our Risk Management Practices.
Ours is a strong and united Board. It plays a very important role in protecting the interests of the
shareholders and maximizing the value of their investment in the Bank. a) We define risk profile based on risk tolerance,
b) We determine risks and analyze them with the help of our risk strategy,
Southeast banks Corporate Governance structure comprises the following bodies: (1) Board of Directors
including two depositor/independent directors (2) Executive Committee of the Board (3) Audit Committee c) We integrate Risk Management Practices in every level of the management and in every unit of the
of the Board (4) Management (5) Independent External Auditors (6) Regulatory Agencies and (7) Bank,
Shareholders. d) We allocate resources for different risks,
Chairman's Report
e) We comply with regulatory requirements and policy guidelines for effective risk Management and The Bank has endeavored to publish its every Annual Report with full disclosure and Financial Statements
f) We monitor risks to keep them within the tolerable level. complying the adopted Accounting Standard. In recognition, the Institute of Chartered Accountants of
Bangladesh (ICAB) has honoured Southeast Bank with Recognition Award/Certificate of Merit for the best
13. Operational Excellence published accounts for the year 2006 and 2007.

We believe that Operational Excellence is a fundamental requirement in our aspiration to continue to be

18. Our Policy about Corporate Social Responsibility (CSR)
the leading banking institution in Bangladesh. We also believe that operational efficiency and professional
integrity are indivisible and our principles for doing business are deeply anchored in our delineated core Southeast Bank pursues a strong policy based on its belief in Corporate Social Responsibility (CSR), a
values. These values guide us to do not only the right thing but also in the right way. The success of our policy by which we contribute our art to the society in which we live and operate. By this policy, we
business depends as much on the trust of our customers as on our ability to provide value to them. We contribute our small bit of support in sustaining the society that gives us the business sustenance. Our
work continually to keep their trust in us by serving them with fairness, integrity and with business ethics. Corporate Social Responsibility encompasses our customers, employees, shareholders, suppliers, business
associates and the society as a whole. We endeavour to achieve our objectives in the area of corporate
We believe that professionalism is of essence to push our operational excellence forward that we strive to social responsibility in the following manner:
demonstrate every day in every service we provide to our valued customers.
i) By stressing upon extension of credit and participation in projects for economic development of the
14. Improvement in Technology
ii) By following fair and ethical banking practices and maintaining sound management.
Technology is re-shaping the economy and transforming businesses. Technology is more than e-commerce
iii) By developing and prospering with customers by offering top-quality and high value added
or e-trades. It is about exploiting economic opportunity. Any time there is change, there is opportunity. It
products and services.
is therefore paramount that an organization gets energized rather than paralyzed by the technological
change. We have already put in place an excellent software to meet our maximum technological iv) By offering competitive pay package and career path to the employees and creating a congenial
requirements. We shall keep on updating it to suit the needs of our customers and the demands of time.
We are committed to utilizing the state-of-the-art information and communication technology to enhance v) By enhancing shareholder value by optimizing financial performance at a competitive cost.
the efficiency of our operations. vi) By creating a lasting relation with suppliers and business associates for mutual benefit.
vii) By supporting charitable ventures, relief operations, environment protection.
15. Disclosure Policy viii) By coming to the aid of the poor and the needy people of the society.
It is the charted policy of the Bank to report Banks performance, plans and programs to the Shareholders, ix) By maintaining high compliance standard in regard to all relevant laws and regulations of all
customers, regulatory agencies, employees and the members of the public in an open, transparent and regulatory agencies.

timely manner. We disclose enough information about the Bank through the mass media, reports, half- x) By supporting art, education, sports, culture, health-care etc.
yearly financials, annual reports, press releases, Banks website: and annual financial xi) By promoting good community relation to foster a relationship of understanding, trust and
statements in the print media. Price Sensitive Information of the Bank is also quickly disclosed to the credibility.
regulatory authorities and published in the newspapers for public information.
xii) By observing environment related laws and regulations and working for healthy development of the
16. Our Contribution to the National Economy
xiii) By supporting development of the women community.
Banks are the nerve centers of a modern economy. Southeast Bank has been playing an active role in the xiv) By helping the autistic and intellectually disabled children.
economic activities and economic development of the country. The Bank has directly given employment
xv) By carrying on energy and resource saving activities within the Bank.
to 1,231 people. We have generated employments for thousands of men and women in the projects and
industrial ventures established with our finance. We have been financing the countrys trade and xvi) By winning the reputation that the citizens acknowledge the significance of Southeast Banks
commerce since inception in 1995. We have deposited 1,247.75 million with the national exchequer as
corporate tax. We were 7th among the Private Commercial Banks (PCBs) in tax payment in the year 2006.
We have also collected tax on interest / profit earning of depositors for the public exchequer. We have 19. Dividend Policy and Shareholder Confidence
mobilized deposits of Tk. 68,714.67 million as on 31st December, 2008 and significantly helped in the Southeast Bank is committed to creating shareholder value continuously. It has the history of giving high
capital formation of the country. dividends to the shareholders consistently for many years. We are also pledge-bound to continue the
Southeast Bank has been a conduit for bringing in foreign remittance equivalent to Tk. 15,221.81 million dividend policy for the coming years depending on the earnings of the Bank. We believe that the key
in 2008 from the hard-earned money of the Bangladeshi wage earners abroad. Foreign remittance element in maintaining shareholder confidence is to deliver consistently strong business performance with
collected by our Bank contributed to the overall foreign exchange reserve of the country. good asset quality. The rise in number of Shareholders of the Bank denotes that the investors have reposed
their trust and confidence in us.
17. Award and Recognition
20. Outlook
Southeast Bank values greatly good corporate governance and operational excellence. We believe these
are fundamental requirements in our aspiration to remain and grow as a leading banking institution in the The country has seen peaceful transition to democracy through a free and fair election. We look forward
country. eagerly and expectantly to an extremely busy and exciting year ahead of us with a new and elected
Chairman's Report Y~JroqJj oPyJhP~r kKfPmhj
government in office. The growth of our economy depends on the growth of capital. Capital depends on KmxKouJyLr rJyoJKjr rJyLo
the growth of productivity. The idea of productivity should, therefore, be part of our industrial culture.
Looking ahead for a brighter future, we shall try hard to:
add further value to our company
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n add new products to our product-family

start full-fledged merchant banking in 2009
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n provide adequate logistic support to our dealing room for further expansion of trading operations xJCgA mqJPTr 14fo mJKwtT xJiJre xnJ~ @Ko @kjJPhr xJhr xJwe \JjJK Y~JroqJj KyPxPm mqJPTr TJpto
n maintain required capital adequacy for Basel-II compliance Fm nKmwq xJmjJr KmwP~ @kjJPhr KjTa FTKa kKfPmhj kv TrPf kPr VmtPmJi TrKZ
n provide clients with active and comprehensive financial counseling
n seek to attract additional fund to manage
01 mqJPTr jfj kiJj TJptJu~
n expand business and network further
n maintain high quality of assets mqJPTr kiJj TJptJu~ 52-53 KhuTvJ mJKjK\qT FuJTJ ACjMx asc xJPr Kj\ uPnu 2, 3 Fm 16f JjJKrf
n long for and encourage closer co-operation with our customers yP~PZ F nmPjr uPnu 4 Fm 6 Fr oJKuTJjJS IJoJPhr mqJT fJr jfj kiJj TJptJuP~r YoTJr Tot kKrPmv Fm
n achieve return on equity for more than 20% xMPpJV-xMKmiJr @vsP~ xJKjf VJyTPhr @J I\tPjr uPq hfJr xJPg Cjffr xmJ khJPj xo yPm
n integrate our research work to be tailored to customer needs
n maximize profit 02 2008 xPj mJuJPhv IgtjLKfr YJu-KY Fm Kmv IgtQjKfT oJ
We shall pursue quality at every stage of our operations. Quality is both a professional pride and a recipe
for our success. With the continued commitment of our staff members, we look forward into a new year 2008 xPj @orJ hPv Fm mKyt:KmPv kKfTu kKrKKfr xMULj yP~KZ hPv, @oJPhr IgtQjKfT xJmjJ KmhqoJj
with a considerable optimism. As forward looking statements involve uncertainties and risks, they should rJ\QjKfT kKrKKfr luvKfPf mJiJV y~ KmrJ\oJj kKrKKf mqJKT UJfxy IgtQjKfT TotTJPr xTu UJPf Kmk
be viewed accordingly taking into consideration the time and the circumstances throughout the year -
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I am thankful to Almighty Allah for the business success of the Bank in 2008 amid turbulent business kmOKr yJr 3.31% 31v KcPxr, 2008 A fJKrPU mqJPTr xVOyLf xmtPoJa @oJjPfr kKroJe hJzJ~ 68,714.67
conditions and global economic depression. I also take the opportunity to thank the Directors of the Bank

for their support and input during the year under review. Their collective wisdom substantially contributed
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to the acquiring of strengths. 15,078.99 KoKu~j aJTJr VqJrJK mqmxJ, 15,221.90 KoKu~j aJTJr It:oMUL rKoPa mqmxJ kKrYJujJ TPr 31v
I also thank our Management and the members of the staff for their loyalty, support and relentless efforts KcPxr, 2008 A fJKrPU mqJPTr oJa Ee S IVLPor kKroJj hJzJ~ 60,281.26 KoKu~j aJTJ~ mKetf PuJPf
for Banks qualitative and quantitative improvements. I respect their inner zeal to work hard to reach newer kmOKr yJr pgJPo 24%, 47%, 51%, 67%, 38% Fm 25%
heights of success.
Let me conclude by conveying my very sincere and special thanks to our respected shareholders, valued 03 oMuij mqmJkjJ
customers, patrons, well-wishers, the Government of the Peoples Republic of Bangladesh, Bangladesh
Bank, Securities & Exchange Commission, Registrar of Joint Stock Companies & Firms, Dhaka Stock kP~J\jL~ kKroJj oMuij xre @oJPhr KjTa FTKa fkNet Kmw~ mqJPTr mqmxJK~T TRvPur P oMuij yP
Exchange, Chittagong Stock Exchange and all others concerned who have supported us and extended to
us their cooperation and guidance. We look forward to their continued support, co-operation and
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guidance that are our constant source of encouragement in the time ahead. We renew to them our promise xre kP~J\j F hMP~r oPiq xKbT pJVxN JkPj xhJ xPY gJKT x TJrPeA @orJ mJjJx v~Jr AxMqr oJiqPo
to remain disciplined, compliant and result-oriented in all our endeavors and in return seek their trust. mqJPTr kKrPvJKif oMuij mJKzP~ gJKT mqJKT UJf p xTu ^MKTr kKf xPmhjvLu x xTu ^MKTPuJ gPT mqJTPT
May the Almighty Allah in his infinite mercy bestow upon us compassion and blessings. mJKYP~ rJUJr uPq oMuij mqmJkjJ kKrYJKuf y~

Allah Hafiz 31v KcPxr, 2008 A fJKrPU mqJPTr IjMPoJKhf Fm kKrPvJKif oMuiPjr kKroJe KZu pgJPo 3,500.00 KoKu~j
With warm regards, aJTJ Fm 2,852.20 KoKu~j aJTJ FTA fJKrPU mqJPTr v~JrPyJflJrPhr ATAKar kKroJe hJKzP~PZ 7,357.27 KoKu~j
Sincerely yours,

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and 25.16% respectively during the year 2008. We have enlarged our business portfolio and enlisted many
new customers by demonstrating our strengths in the competitive market. Accordingly, our credit has
shown considerable growth. The banks total assets have reached TK.81,181.53 million from TK. 64,370.69
million, which accounts for 26% increase in a years time. Imports grew by 50.82% to TK. 58,019.77
million and Export grew by 46.60% to TK. 42,178.60 million. Guarantee business grew by 67.39% to
From the desk of Managing Director Tk.15,078.99 million and Remittance reached TK.15,221.87 million with 38% growth on year to year basis.

(Current Charge) We have gradually expanded our network by opening new branches in strategic locations. We have also
strengthened overseas connections by forming alliances with new exchange houses in many parts of the
world where Bangladeshi workers and expatriate population are mainly concentrated. Our network of
branches stands at 46 as at the end of 2008 and hopefully we shall add at least 10 new branches, 10 SME
booths and 3 offshore banking units this year. All these numbers are self evident and bear testimony to our
ability to compete within a system that is getting more and more complex and full of challenges. While the
market has been hard hit by reduced margin on interest rate due to high cost of deposit and various
constraints to increase lending rates and fees, we continued to focus on quality lending. We have been very
selective in corporate financing and trade related investments which are still major segments of our
business. In 2008 we seriously focused on recovery of classified advances, avoidance of further
classification, substantial settlement of court cases, compliance of all regulatory requirements, increase
employee and customer satisfaction and achievement of our very ambitious budgetary targets. We achieved
all except profit growth due to many genuine factors beyond our control.
The nonperforming loan (NPL) ratio stands at 4.12% as on December end 2008 and we have made
adequate provisions against all loan losses as per the guidelines set by Bangladesh Bank. The bank is
adequately capitalized and the ratio stands at 11.12% against the weighted assets. Strong recovery drives
continued throughout the year and monitoring is undertaken regularly to reduce the quantum of
classified loan.
While we are growing with new acquisition of customers, entrepreneurs and established business houses,
we are mindful of diversifying our products and services and fine tune them to the emerging needs of the
market. Our strategy is still the same to serve the customers at a competitive cost. We keep on launching
new initiatives to attract new customers and retain loyalty of the existing ones. We are in a very advanced
stage of putting a robust core banking software to integrate our service with new technology and enable the
customers to use all available delivery channels.

Human resources is always considered the most important asset for any organization. I can very well
confirm that we have a pool of very talented and skilled workforce. We are generous and always offer
attractive compensation package which is competitive in the market. We have also introduced a few welfare
schemes for our employees. We provide them incentives and rewards based on performance. We also focus
The year 2008 would remain as one of the worst years in the present century and the economic meltdown on their career development by organizing trainings, seminars and workshops at home and abroad. Last
that originated in the United States has by and large impacted most of the advanced economies in the year record number of officers and executives have been sent abroad on workshops and seminars.
world. As we all know what started as sub prime mortgage loan crisis in the USA has become a global
As we look forward, the bank is strongly positioned in the market and with its core strengths we can match
problem. It is also true that irresponsible lending, corrupt practices and excessive greed in the top
shareholders expectations and thus raise their wealth in future through ethical banking and best pricing.
management of financial institutions have caused a crisis that was unprecedented in its impact. The sub
We shall have another successful year for the bank and our team members are really upbeat about this
prime mortgage and ensuing credit crunch combined with rising inflation worldwide and high commodity
considering the last years impressive results. I must say we shall take the bank to newer heights. Our actions
prices have resulted in slow down in demand and generated significant uncertainty about the short term
are based on sound policy management and that will lead us to more satisfied customers and more revenue
outlook for the world economy.
Although the present slow down was originally expected to be confined mainly to the United States, it is
Before I conclude, I solemnly declare that we shall conduct every business of the bank within the legal
now spreading to other industrialized nations and it is not clear what the future will bring for the emerging
framework of the regulatory authorities and fulfill our corporate social responsibility. On behalf of the
markets like Bangladesh. The Government and a section of business leaders here are convinced that the
management, I express may gratitude and thanks to all members of the Board of Directors, all our staff,
crisis would not hurt our economy to any major extent. But World Bank and some others tend to believe
regulatory agencies, valued customers and shareholders for their guidance, advice and continued support.
that the crisis would leave a negative effect on remittance, export and external aid flow. Bangladesh,
despite its low exposure to the global financial markets, is unlikely to go unscathed. However much would
depend on how the present Government handles the economic issue in one of the most trying times of the
worlds economic history.
Against the background of global financial crisis, we the management in Southeast Bank believe that we
have done relatively better in a tight and very adverse circumstances. The statements that are attached
herewith in the Annual Report reflect banks excellent state of health. We have registered growth in all M. A. Muhith
areas of business operation and tried to bring qualitative improvements in all our activities. The bank Managing Director
posted an operating profit of TK. 3,012.58 million. The deposits and loans and advances grew by 23.87% (Current Charge)
Board's Report
Dear Shareholders Foreign Direct Investment (FDI) proposals by overseas entrepreneurs plummeted last year with only 13
small projects worth US$ 59.97 million being registered with the countrys investment promotion
The Board of Directors of Southeast Bank Limited takes the opportunity to welcome you all to the 14th
agency. It posted a fall by 81.56 percent from 2007. Outstanding Bank Credits (excluding foreign bills
Annual General Meeting of the Shareholders and has immense pleasure to present before you the 14th
and interbank items) during the FY08 rose to Tk.1966.40 billion. The Bank deposits (excluding interbank
Annual Report of the Bank together with the Auditors Report for the year ended December 31, 2008.
olders items) increased to Tk.2316.79 billion in FY08. The Bank Rate remained unchanged at 5.0 percent
hareh in the FY08.
01. Trend of World Economy
The economy of Bangladesh passed a resilient 2008 despite an unfriendly domestic investment climate
The Year 2008 witnessed a rare event in the global banking sectors triggered by crisis in credit markets and fallout from the world economic meltdown. Economic indicators such as Private Sector Credit
and its repercussions. The world economy registered an unprecedented average growth of 5 percent a growth, Call money rate, foreign currency situation, foreign exchange reserves, inflation, exports, imports
year for consecutive four years. Global economic growth remained robust in the 1st quarter of 2008 and wage earners remittance all were positive throughout 2008.
benefiting from the momentum gained in the previous year and from strong growth in Asia. After
surprisingly robust growth in the 1st quarter of 2008, the global economic slowdown is making itself felt 03. An Overview of the Bank
in Asian economies. It has now entered into a recession stage in the face of severe shock in mature
Southeast Bank Limited, a second generation private Bank, emerged in 1995 amid liberalization of global
financial markets. The major advanced economies are already in recession while the number of emerging
economies. Currently, its Authorized Capital is Tk.3,500.00 million and its capital and reserve reached
and developing countries are under inflationary pressures.
7,657.01 million as of December 31, 2008. Its vision is to stand out as a premier banking institution in
The contagion of global meltdown that started in the US has caught up with other mature and developing Bangladesh and contribute significantly to the national economy.
countries. The contagion has been caused by the sub-prime lending in the housing sector. The US is
The Bank, in the meantime, successfully completed almost fourteen years of banking operations
believed to have more than $10 trillion in external debt. It is estimated that the sub-prime crisis alone
recording significant growth in all the performance indicators. In 2008, the Bank earned an after tax profit
may cause a contraction of the US banks ability to lend by $2.00 trillion, thus deepening the crisis.
of Tk.887.24 million. The deposit of the bank grew by 24 percent to Tk.68,714.67 million and advance
In the face of the situation, the IMF projected 3.9 percent global output growth in 2008, down from 5 by 25 percent to Tk.60,281.26 million compared to those of 2007. During the last five years (2004-2008)
percent rate registered in 2007. The advanced economies as a group (with 56.4 percent share in 2007 the Bank achieved an average annual growth of 29 percent in deposit, 30 percent in advances, 74 percent
global output) are projected to grow by 1.5 percent while the emerging market and developing countries in export and 29 percent in import and 13.95 percent in remittance. During the last five years, the export
as a group (with 43.6 percent share in 2007 global output) are projected to grow by 6.9 percent in 2008. volume increased by six times to Tk. 42,178.60 million and foreign remittance increased by twelve times
Oil prices experienced strong run-up from late August 2007 to early January 2008. It, however, declined to Tk. 15,221.81 million.
to around US$50 a barrel by end November 2008. The consumer price hike has increased markedly in
Operational excellence coupled with qualitative improvements continued to be of paramount
the advanced economies and was projected to be 3.6 percent in 2008. The growth of world-trade volume
importance to the Bank. At present, the Bank has 46 branches across the country. Plans have been drawn

in 2008 was projected to decline to 4.9 percent compared to 7.2 percent in 2007. Global financial
to raise another ten branches, three Offshore Banking Units and at least ten SME Booths in 2009. Our
markets continue to be fragile and indicators of systematic risk remain strong.
journey towards greater operational success continues with increased energy and enthusiasm.
Looking forward in 2009, in the face of financial crisis entering a new and more severe stage in September
As we face the stiff challenges ahead on way to further improving the profitability of the Bank, we rely
2008, the global economy was projected to slow further to 3.0 percent growth, 0.9 percent lower than
on our skilled and experienced workforce. Our strengths are our close and cordial partnership with
the July 2008 World Economic Outlook (WEO) projections with slower activity in the advanced
customers, our firmly anchored presence in the country's strategic places of commercial and business
economies. The growth of Bangladesh, India, Pakistan and Sri Lanka together was, however, expected to
importance and global reach through our correspondent Banks for expansion of foreign trade, foreign
be quite robust in 2008.
exchange and remittance business. Our product-basket encompasses Real Time Online Any Branch
Banking, Islamic Banking, partial Merchant Banking, Dual Currency Visa Credit Card, ATMs, Education
02. Bangladesh Economy in 2008
Loan Scheme, Double Benefit Scheme, Consumer Loan, SME Banking, Corporate Banking, Syndicate
The GDP growth during the fiscal year 2007-2008 was 6.2 percent as compared to 6.4 percent in FY Loan, Monthly Savings Scheme, Monthly Income Scheme, Pension Saving Scheme, Wage Earner Pension
2006-2007. The economy performed well overcoming the damage and dislocation caused by two floods Scheme, SMS Banking etc. in addition to our traditional credit and foreign trade related products and
and the cyclone-Sidr and inspite of increasing price of oil, rice and most commodities in the global services.
market. Nearly all sectors contributed to the GDP growth of which export oriented sectors and some
High quality customer services through the integration of the latest and tested banking technology and
service sectors like transport and communications contributed significantly.
products is our tool to achieve success. Customers are our first priority. We are trying hard to provide a
The annual average inflation of the country increased modestly to 9.9 percent in June 2008 from 7.2 system of one-stop shopping for customers by providing a spectrum of services. Our employees have
percent in June 2007. Broad Money (M2) grew by 17.6 percent in FY 08 which was higher than the 17.0 mastered new technology, enhanced their product knowledge and honed their skill to help customers
percent growth recorded in FY 07. The domestic credit grew by 21.8 percent. Export earnings recorded meet their financial goals. We want to be the best at helping customers become financially better off by
a satisfactory growth of 15.7 percent while the growth of import payments was high at 25.6 percent. providing free advice, innovative leading-edge financial solutions, choice and convenience. Whether our
Agriculture sector achieved 3.6 percent, industry sector 6.9 percent and service sector 6.7 percent growth customers are individuals, small businessmen, or commercial clients, we aim to deliver the best customer
in the fiscal. Remittance from Bangladeshi wage earners recorded 32.4 percent growth in FY08 to US$ service by meeting their unique and different needs in a professional, ethical, friendly and knowledgeable
7914.8 million. manner.

The overall balance of payments recorded a significant surplus of USD604 million in FY08. Gross foreign We are pledge-bound to turn Southeast Bank into a modern banking institution, dynamic in actions,
exchange reserve held by Bangladesh Bank reached USD6149 million at the end of FY08. However, progressive in programs, honest in dealings, just in judgment, futuristic in attitude, fair in approaches and
Board's Report
devoted to high quality service to customers. Our charted plans are aimed at boosting At the end of 2008, DSE General Index closed at 2,795.34 points, compared to
modern management, advanced technology, good profitability, sound financial strength 3,017.21 points of the previous year. The index lost 221.87 points or 7.35 percent in
and fair image of the Bank. We are firmly committed to transparent, responsible and
2008. The highest closing level of the Index during the year was 3,207.89 points as on
accountable corporate governance with the participation of our strong and most
May 30 according to the annual DSE statistical report for 2008. The total market
capable team of professionals and under the prized policy directives and guidance of
capitalization at the end of the year 2008 reached Tk.1,043.79 billion compared to Tk.
the Board of Directors of the Bank.
742.20 billion of the previous year which is up by 40.63 percent. The total number of
Southeast Bank Limited carries out business activities with due respect for existing value transactions executed in 2008 reached 15.06 million compared to 8.17 million in the
and norms and with an understanding of the importance a large financial institution has previous year recording 84.33 percent increase. In terms of value of shares traded,
for the society and the environment. The bank wants to ensure its shareholders a Banking Sector were the most active sector during the last year. The number of shares
competitive return in line with the best among peer institutions. traded in the sector reached Tk.2,10,269.13 million representing 45.77 percent of the
total value traded.
04. Capital and Reserves
Twelve companies offered part of their shares to the public in Initial Public Offerings
The Authorized Capital of the Bank was Tk.3,500.00 million and Paid-up Capital was (IPOs) last year. The total value of offered shares reached Tk.8270.00 million and the
Tk.2,852.20 million as of December 31, 2008. The Capital and Reserve of the Banks in
number of shares offered for all IPOs was 229.40 million shares. All twelve new
2008 stood at Tk.7,657.01 million compared with Tk.6,468.36 million of the previous
companies were listed and traded in DSE in 2008 bringing the total number of listed
year showing an increase of 18.38 percent.
companies to 276.
The Capital and Reserve position of the Bank as on 31st December, 2008 is appended
below :
07. Southeast Bank Shares and its Owners
Taka in Million
(a) Core Capital (Tier-I Capital) All stock market fundamentals namely Earning Per Share, Trend of Dividend
Paid Up Capital 2,852.20 declaration, Net Asset Value Per Share, Cash Flow from Operation, Balance in Share
Share Premium Account 485.93 Premium Account, General Reserve, and Our Price Earning Ratio reflect sound
Statutory Reserve 1,975.25 economic health of the company. Those investors who want gain in longer terms with
realistic expectations always look for better investment options, consider share market
General Reserve 247.65
price against earnings (P/E) and analyze comparative analysis of company fundamentals
Retained Earnings 542.79

of same peer group. They want to earn satisfactory return against their investment. The
Total Core Capital 6,103.82
Shareholders of Southeast Bank are believed to be the investors within this bracket.
(b) Supplementary Capital (Tier-II Capital)
i) Number of Shareholders
Provision for Unclassified Advances 641.32
General Provision on off. Balance Sheet Exposures 313.03 A large number of shareholders repose their trust in our Banks Securities. The number
Assets Revaluation Reserves 590.68 of Banks registered shareholders stood at 12,536 on 31st December 2008 from 9,636
Revaluation Reserves of HTM Securities 3.96 shareholders of the previous year showing an increase of 30.09 percent. The trend of
Exchange Equalization Account 4.20 increase in the number of shareholders of the Bank for the last five years is shown
Total Supplementary Capital 1,553.19 below:
05. Capital Adequacy Ratio Year Shareholders Growth Rate
2008 12,536 30.09%
The Bank maintained a capital adequacy ratio of 11.12 percent of the risk-weighted
2007 9,636 8.82%
assets as on December 31, 2008 as against the requirement of 10 percent as set by
2006 8,855 54.00%
Bangladesh Bank.
2005 5,750 22.24%
2004 4,704 61.53%
06. Capital Market Scenario in 2008

Major economies of the world especially United States are in economic recession. The ii) Positive Earning Per Share (EPS)
year 2008 was an aweful year for Stock Markets around the world and Dhaka and
Chittagong Bourses were not exceptions. In the year 2008, Dhaka Stock Exchange's The total Paid-Up Ordinary Shares of the Bank stood at 2,85,21,978 at the end of the
General Index was up by 50 points in one Trading day and 60 point down the next day. year 2008. Since our listing with the two bourses of the country, the number of issued
The trends of ups and downs continued and this roller coaster type price index indicates shares increased by 850.73 percent. We are generating substantial amount of profit
volatile trading in the bourses of the country throughtout the year. through operation of banking business over the last four years primarily to allocate good
Board's Report
rate of dividend to each outstanding share of the company. Our EPS which is a prime v) Declaration of Dividend
indicator of the Banks profitability is appended below for the last five years:
Our Board of Directors declared dividend out of profit to companys shareholders at a
good rate. Therefore, shareholders of our Bank received satisfactory dividend. The rate
Year Earning Per Share
of Cash Dividend and Stock Dividend declared by the Bank since 1999 is shown below:
2008 31.11
2007 42.88
Year Cash Dividend Stock Dividend Total
2006 59.71
2008 15% 20% 35%
2005 35.42 2007 15% 25% 40%
2004 43.52 2006 20% 8% 28%
2005 - 20% 20%
iii). Satisfactory Net Assets Value (NAV) 2004 - 30% 30%
2003 20% 20% 40%
Our Companys Net Asset Value is positive reflecting higher assets compared to 2002 20% 10% 30%
liabilities. For our better NAV, a large number of investors subscribed for our shares. 2001 30% 10% 40%
The Net Assets Value of the Bank since 2004 is given below: 2000 25% 10% 35%
1999 15% - 15%
Year Net Asset Value (NAV) Growth Rate
per Share (in Tk.) 08. Deposits
2008 257.95 (4.21%) The Bank mobilized total deposits of Tk.68,714.67 million as of December, 2008 as
2007 269.29 12.45% compared to Tk.55,474.05 million in 2007. Competitive interest rates, attractive
2006 239.47 24.21% deposit products, deposit mobilization efforts of the bank employees and confidence
2005 192.80 18.73% reposed by the customers in the Bank contributed to the notable growth in deposits. The
2004 162.38 (3.95%) Bank introduced a number of attractive deposit schemes to cater to the requirement of
small and medium savers. This improved not only the quantum of deposits but also
brought about qualitative changes in deposits structure. The deposit mix of the Bank as
iv) Authorized Capital and Paid-Up Capital

on December 31, 2008 was as follows:
Our Authorized capital and issued share capital have considerably increased since our Taka in Million Share in Total
inception in 1995. At present our Authorized Capital is Tk.3,500.00 million and our Deposits
Paid-Up Capital is Tk.2,852.20 million. The Banks year-wise Authorized Capital and a) Current and Other Deposits 5,235.64 7.62%
Paid-Up-Capital since 1995 is shown below: b) Savings Bank Deposits 3,477.92 5.06%
c) Short Term Deposits 3,680.24 5.36%
Year Authorized Capital Paid Up Capital d) Fixed Deposits or Term Deposits 50,505.26 73.50%
e) Fund under different deposit Schemes 4,963.48 7.22%
(Taka in million) (Taka in million)
f) Bills Payable Accounts 852.13 1.24%
2008 3,500.00 2,852.20
TOTAL : 68,714.67 100.00%
2007 3,500.00 2,281.76
2006 3,500.00 2,112.74
09. Loans and Advances
2005 2,500.00 1,056.37
2004 2,500.00 880.31 Southeast Banks policy is to expand the loan portfolio judiciously in consideration of
2003 2,500.00 677.16 economic, social and political scenario of the country. The Banks loans and advances
increased by 25.16 percent to Tk.60,281.26 million as on 31st December, 2008 as
2002 2,500.00 399.30
against Tk.48,164.60 million of the previous year. The Bank emphasized on
2001 500.00 363.00
disbursement of agri-credit for the farmers in consideration of countrys socio-economic
2000 500.00 330.00 priorities in line with governments policy. The Bank extended a considerable amount
1999 500.00 300.00 of agri-credit (Tk.70.00 million) in the year directly or indirectly via NGOs and through
1998 500.00 150.00 its rural branches. The bank also fixed its target to disburse Tk.250-300 million in
1997 500.00 125.00 agri-sector during 2009.
1996 500.00 100.00 The credit portfolio of the Bank is well diversified having a balanced mix covering a
1995 500.00 100.00 wide spectrum of business and industries including readymade garments, textiles and
Board's Report
spinning, telecommunication, pharmaceuticals, steel and engineering, ship scrapping, 14. Syndicated Finance
ship building, cement, edible oil, real estate, education, transport, agriculture etc. The
Bank also expanded its financing to the Small Enterprises and Consumers under SME Southeast Bank Limited, the pioneer amongst the local private commercial Banks,
Credit Scheme and Consumers Credit Scheme. Moreover, in order to help the poor started participation in the syndicated facility since 1996. The Bank has an independent
segment of people of the society, the Bank extended its financial assistance to NGOs unit for such finance which is enriched with qualified and experienced Bank officers.
for onward finance to the poor people. Since then the Bank participated in 46 syndications of Tk.25,581.40 million of which
Southeast Banks participation was Tk.5,048.00 million. Out of total syndication of
The Bank also got involved in extending facilities in the CNG dedicated buses and CNG Tk.25,581.40 million, the Bank acted as arranger / agent of 13(thirteen) syndications for
filling stations under Dhaka Clean Fuel Project against refinance program of Asian Tk.4,500.00 million and the projects have been successfully running as profitable
Development Bank (ADB) through Rupantarita Prakritik Gas Co. Ltd. (RPGCL). The concerns. In the meantime, the Bank extended facilities to different sectors like
Bank has separate units at Credit Division of Head Office working for handling Telecom, Power Plant, Education, Hospital, Beverage, Cement, Steel and Engineering,
Garments Industry, Syndication Loans, Project Financing, SME Finance and Consumers Sugar, Edible Oil, Textiles, Spinning, Ceramics, Construction, LP Gas, Hydrogen
Loans etc. to ensure due diligence and expedite the decision making process. House Peroxide Plants etc. under syndicated arrangement. The important projects that were
Building Finance to prospective customers and loan to women entrepreneurs under financed under syndication include Apollo Hospitals, Mir Cement Limited, Maksons
Refinance Scheme of Bangladesh Bank are being done with due importance Spinning Mills Limited, Farr Ceramics Limited, Oxford International School, City Sugar
considering the requirements of the clients. Industries Limited, etc.
We have continued our efforts for maintaining high quality of assets. Besides giving
emphasis on the satisfactory business performance of the clients and collateral support, 15. Corporate Finance
we have geared up loan monitoring and follow-up system to recover previous classified As per Bangladesh Banks Basel II guidelines, Corporate refers to any proprietorship,
advances and arrest new loans from becoming non-performing. Despite the most partnership or limited company that is neither a Public Sector Entity, Bank, Non
difficult local business environment, global slowed down economy and political Banking Financial Institution (NBFI) nor the borrower within the definition of Retail
uncertainty, the bank could manage to keep the NPL at 4.12 percent as on December Portfolio and Small Enterprises. Corporate Financing is the broad term given to different
31, 2008 which was 3.77 percent in the previous year. credit facilities that the corporate firms need in order to meet their long term and short
term financial requirements. Southeast Banks business is focused to a considerable
10. Loans to Directors extent on the corporate clients. Based on a profound conception of clients business
No loan was allowed to any Director of the Bank during the year 2008. environments, financial needs and internal strategies for growth, Southeast Bank
Limited provides a complete solution to its corporate clients. After taking proper stock

11. Guarantee Business of macro economic fundamentals, the Bank Management recommends appropriate
financing package to a corporate client. Such financial support is provided to the
The Bank issued guarantees amounting to Tk.15,078.99 million during the year 2008 corporate clients either from Banks own finance or by arranging syndicated / club
compared to Tk.9,008.32 million recorded in the previous year registering a growth of finance. The investment in corporate segment is the combination of a mixed and
67.39 percent. The guarantees were issued in favour of different Govt. Authorities, balanced allocation in various nature of business/ industries based on socio-economic
Ministries, Autonomous Bodies, Corporations, Private Companies, Individuals and perspectives and long term planning.
Multinational Companies, etc. on behalf of the valued clients of the Bank.
16. Equity and Entrepreneurship Fund (EEF)
12. SME Financing
The Bank, on its own initiative, has channeled the Equity and Entrepreneurship Fund
The Bank introduced SME Financing Scheme in 2004. In order to give more focus, it (EEF) of Bangladesh Bank to an exceptional sector viz. unique project of Breeding
also established a separate SME unit at Head Office. The Bank also established a Crocodile Farm to rear/ raise/ process saltwater crocodiles and to export skins, meat and
separate unit under SME Cell dedicated for Women Entrepreneurs. Because of bones, and support and promote conservation of crocodiles in Bangladesh. The project
mounting special emphasis, the Bank could extend facilities to 2848 Small and Medium has been implemented successfully and in the year 2008, the crocodiles laid 604 eggs
Enterprises amounting to Tk.6,595.21 million as on 31.12.2008 which was Tk.3,023.05 from which 241 hatchlings survived. It is expected that the export will commence from
million to 1,513 customers in 2007 registering 118.16 percent growth. 2010, which will eventually earn a significant amount of foreign exchange for the
13. Consumer Credit Scheme (CCS)
17. Recovery of Classified Loans
Consumer Credit Scheme(CCS) is a credit product of Southeast Bank to meet personal
requirement of consumers for acquiring various household items. To expedite quick The Banks Credit Administration Department (CAD) has been strengthened last year by
disposal of cases of CCS loans, the Bank established a separate CCS Cell at Head Office. posting senior and mid level executives and law officers. As the volume of business /
The Banks CCS loans stood at Tk.205.88 million as on 31.12.2008 compared to loans and advances has been increasing substantially, the Bank has intensified its
Tk.175.86 million as on 31.12.2007 registering a 17.07 percent growth. monitoring and follow-up activities in order to maintain the quality of assets and to
Board's Report
reduce the NPLs. The CAD also looks after the documentation, reporting, insurance, Year-wise export figures of last 5 years are shown below:
stocks etc. to minimize the risks of default. In the year 2008, the Bank could recover
Tk.389.19 million in cash from the defaulters and regularized some loans through re- Year Export volume in eqvt. Export volume in eqvt. Taka
US Dollars (in Million ) (In Million)
18. Investment Scenario 2004 112.32 6,761.93
2005 202.41 13,511.10
The investment portfolio of the Bank during the year 2008 was Tk.12,299.61 million
against Tk.8,462.86 million in the previous year registering a growth of 45 percent. The 2006 369.64 25,874.61
portfolio of investment included Government Treasury Bills, Prize Bonds, Shares of 2007 423.10 28,771.36
Public Limited Companies etc. The Bank has always given emphasis on investment of
2008 611.28 42,178.60
Funds in high yield areas simultaneously maintaining Statutory Liquidity Requirements
(SLR) as fixed by Bangladesh Bank.
20. Wage Earners Remittance

19. International Trade Operations Wage Earners Remittance plays an extremely important role in our economy through
boosting the Foreign Exchange Reserve. The Bank has its dedicated team of staff and
To meet the challenges of globalization, Southeast Bank is focused on serving the
state-of-the-art technology to process wage earners remittance and route it to ultimate
business community involved in International Trade through its different Trade Finance
beneficiaries in the fastest possible manner. In 2008, remittances along with strong
Products such as Import and Export Letters of Credit, Foreign Guarantee, Standby letters export base allowed us to meet Foreign Currency import liabilities of the Bank without
of Credit etc. The Banks International Trade Operations are handled by experienced depending on the interbank forex market. Our dynamic team in Remittance Department
professional bankers through its 21 authorized dealer branches situated in strategically is in constant search for new avenues to conclude remittance arrangements with
significant locations of the country. This has resulted in sustainable growth of exchange houses in different countries while giving relentless effort to increase our
International Trade activities of the bank during the past few years. local correspondent network so that we can disburse remittance funds in a most
effective and efficient manner.
i) Import Trade
In 2008, the number of our international exchange house partners increased from 20 in
Southeast Bank has seen another year of sustained growth in its Import Business in the 2007 to 30. Our exchange house partners are located in Europe, America, Canada,
year 2008. This year the total Import of the Bank was Tk.58,019.77 million (USD Australia and Middle East. The total Wage Remittance figure of 2008 stood at USD

840.86 Million) registering a growth of 51 percent over the Import of 2007. Major 220.70 Million (Tk.15,221.87 million) which is around 38 percent higher than that of
import items for 2008 were Rice, Wheat, Sugar, Capital Machinery, Fabrics and 2007 and increased almost twelve times in last 5 years.
Accessories, Scrap Vessel, Vegetable Oil, Raw Cotton and Flat Rolled Steel.
Year-wise figures of Inward Foreign Remittance of the Bank since 2004 are shown
Import Figures of the Bank for the last 5 years are as below: below:

Year Import volume in eqvt. Import volume in eqvt. Taka Year Remittance volume in eqvt. Remittance volume in eqvt. Taka
US Dollars (in Million) (In Million) US Dollars (in Million ) (In Million)
2004 306.51 20,229.62 2004 17.32 1,091.25
2005 421.44 29,079.30 2005 53.14 3,507.40
2006 501.79 35,125.12 2006 193.75 13,479.83
2007 557.50 38,470.34 2007 160.04 11,040.17
2008 840.86 58,019.77 2008 220.70 15,221.87

21. Foreign Correspondent Banks

ii) Export Trade
Over the years Southeast Bank has continuously developed strong correspondent
Southeast Banks Management has given utmost importance to facilitate the countrys
banking relationship with internationally reputed banks to facilitate its foreign trade
export sector through different export financing products. Since 2004, the Bank has
business. As of 31st December, 2008, the number of foreign correspondent Banks stood
seen a substantial and consistent growth in its export sector which continued in 2008.
at 587 banks in 95 countries of the world.
The major export items of our Bank are Readymade Garments, Jute and Jute goods,
Ceramics, Frozen Fish and Agricultural products. In 2008, the total export of the Bank Our excellent reputation in meeting our commitment and strong financials enabled us
was Tk.42,178.60 million (equivalent to USD 611.28 Million) which is 47 percent in securing Credit lines (both funded and non-funded) from International Finance
higher than that of 2007. Corporation (a World Bank subsidiary), FMO (of the Netherlands), Asian Development
Board's Report
Bank and other world renowned Banks. We are continuing our efforts to extend our 24. Asset Liability Committee (ALCO)
credit lines facilities with other international banks including Bank of China with whom
we have just set up RMA (Relationship Management Authority) Arrangement. As per Bangladesh Bank guideline, the Bank has a fully functional Asset Liability
Committee (ALCO) for efficient balance sheet risk management. The committee consists
22. SWIFT of the Managing Director as the Chairman of the committee, the two Deputy Managing
Directors and important Divisional Heads of Head Office. The meeting of the Asset
Southeast Bank is an active member of SWIFT user Group in Bangladesh and was one Liability Committee is held every month. The committee reviews interest rate risk and
of the pioneer banks to adopt 24 hours online SWIFT connectivity in the country. As of liquidity risk of the bank and take necessary steps to mitigate them.
2008, all of our 21 Authorized Dealer Branches are connected to SWIFT. Our expert
SWIFT team has been giving relentless effort for continuous upgrading of SWIFT as and 25. Money Market Scenario in 2008
when any new features are introduced globally. Southeast Banks SWIFT expert team
Due to huge borrowing by the govt. from the banking sector and low implementation
plays a strong role for SWIFT User Group Member Banks in Bangladesh. For better and
rate of Annual Development Program (ADP), there was liquidity crunch in the money
prompt service to the customers, SWIFT Realtime Online facility has been introduced market for most of the period during the year 2008. As a result, the inter-bank call rate
in all of our AD branches. was fairly volatile. Our Bank actively participated in the money market and was able to
fulfill all regulatory requirements prudently as the Bank was mainly a net lender in the
23. Treasury Operations and Fund Management money market during the year.
The Treasury Operation of the bank is given the responsibility to measure and minimize
26. Information Technology
the risk associated with Banks foreign exchange exposure, liquidity, asset liability
management and overall fund management. The department assumed an effective role The Bank has initiated a project to procure and implement Core Banking Solution (CBS)
in determining the direction of the markets, especially during periods of market View of a modern cotton industry financed by the Bank.
for replacement of the existing one. This is a complex and long term project which
volatility, with its high-volume transactions through Over-the-Counter Market and would necessitate some environmental and infrastructural works. Establishment of Data
Electronic Transaction Channels. Treasury continuously monitored price movements of Center (DC) and Disaster Recovery Site (DRS) are foremost key components to make an
foreign exchanges and used various methods to manage its open position in such a way environment to deploy CBS which will be implemented at the earliest.
that minimizes risk and maximizes return. The Bank has also taken a project to consolidate and upgrade its communication
The FX desk managed the Bank's short and long-term foreign currency requirements. network with a view to making it fault tolerant and capacity building for real time
replication which is part of Business Continuity Plan (BCP). The project is on schedule

The desk used money market transactions in order to borrow / purchase in foreign
and expected to be completed soon. The Bank is fully compliant to Intellectual
currencies when necessary, channeled idle funds into investments / placements and
Proprietary Rights (IPR) issues. The Bank management is committed to refraining from
deployed instruments such as swap and forward contracts in order to manage the
using pirated digital products specially software. In line with directives from Bangladesh
Bank's funds effectively. In order to offer its customers the best services possible, the
Bank, the Bank has taken a project for adoption of MICR (Magnetic Ink Character
desk published floating exchange rates and cross-rates with minimum spreads through
Recognition) technology for successful launching of Bangladesh Automated Clearing
its widespread branch network. It is pertinent to mention here that the FX desk had House (BACH) which is expected to go live in 2009.
handled a total of USD 1,669.13 million in 2008 which is 46.21 percent higher than
in 2007. Automation in Banking Operations: Introduction to Core Banking System
In line with its objective to become the leading bank for market share, the Bank adopted The Bank management is committed to improve the technological infrastructure of the
a customer-oriented service policy and developed diverse products to meet the needs Bank which is the integral part of modern day banking. As part of the IT infrastructural
of corporate, commercial and retail customers. In addition, the Bank intensified and improvement initiatives, the Bank is currently in the process of replacement of its
strengthened its technological infrastructure to ensure that transactions are executed distributed banking system by a centralized core banking system. This initiative has
faster at competitive prices. That is why, it is well equipped with modern been taken to manage its growth, improve customer services, add other delivery
telecommunication infrastructure facilities like: Reuters, Bloomberg, SWIFT, Internet, channels, strengthen Management Information System (MIS) and enrich security
Participants of the Bank at the training program on Risk
Management and Basel-II Electronic Trading Platforms, Voice Recorder etc.
View of a bi-cycle industry financed by the Bank. features for routine automated business operations.

Due to recent global financial crisis, all the major currencies, commodities and equities The CBS Implementation Project of the Bank is a mission of critical assignment and a
around the world were highly volatile; especially during the last quarter of the year huge challenge as well. The Bank is putting in all out efforts for the success of the
2008. In this circumstance, the main emphasis of our treasury was to maintain adequate project because its efficient capacity building is completely dependent on the successful
implementation of the CBS Project.
risk management for the bank. In addition to that, our treasury department as a profit
center has generated an operating income of Tk. 261.82 million in Foreign Exchange
Banks Website
operations, Tk. 1,363.86 million in Money Market operations and Tk. 8.89 million in
Government Security trading operations which is 25.80 percent higher than 2007 in Considering the demand of customers and further improvement in service round the
aggregate. clock, the Bank has already taken necessary initiatives to reorganize its existing website
Board's Report
with more information on its products and services. Some of the features that have encouraging, comfortable and rewarding. The Bank ensures good social security
already been in the process of incorporation are as follows : measures by way of Gratuity, Contributory Provident Fund and Encashment of
Incorporation of a Customers Feedback Form with mandatory input fields of Unavailed Leave. These factors boosted up employees morale with strong loyalty and
Customer Name, E-mail Address and Subject to convey any suggestion, opinion, sense of belongingness to the organization and contributed to the lower exit of
enquiry or complaint about any products or services of the Bank. The objective of employees from the Bank.
the initiative is to strengthen Banks Customer Service Department (CSD) to receive
customers feedback in a single point of contact and accordingly support them with 28. Internal Control and Compliance Division (ICCD)
efficient and well organized manner. Internal Control and Compliance Division (ICCD) of SEBL is discharging its day to day
functions with an intention to contribute positively towards strengthening the system of
Incorporation of an extensive user-friendly searching option to facilitate customers
managing the Risk of Internal Control and Compliance of the Bank. The main functions
to obtain their required information instantly.
of ICCD, e.g. regulatory compliance, monitoring and follow-up and audit and
Incorporation of Frequently Asked Questions (FAQ) page which will highlight the inspections, are being discharged by the Compliance Unit, Monitoring Unit and Audit
features, characteristics, regulatory terms and conditions of banking products and and Inspection Unit respectively. The important tools used in Internal Control Process
services. of SEBL are given below:

Incorporation of some useful hyperlinks of financial institutions and regulatory a) Departmental Control Functions Check List (DCFCL);
bodies such as Bangladesh Bank, National Board of Revenue (NBR), Board of b) Loan Documentation Checklist;
Investment, Securities and Exchange Commission, Dhaka Stock Exchange, c) Quarterly Operation Report; etc.
Chittagong Stock Exchange etc for customers convenience. Chairman Alamgir Kabir, FCA is seen addressing the
'Business policy and Managers' Conference: 2008
Web portal is one of the convenient means to keep in touch with the customers During the year 2008, Inspection Teams of ICCD of SEBL and Bangladesh Bank carried
round the clock. The Bank is committed to use this option with more secured out inspections on different Branches and Divisions of Head Office of the Bank and
manner and build an uninterruptible relationship with its valuable customers and submitted Reports thereof. Necessary remedial measures/corrective steps have been
suppliers. With this end in view, the Bank has already taken an initiative to deploy taken on the suggestions/observations made in the said reports. The summary of key
Internet Banking which will take banking at the home of customers. points of the reports was placed and discussed at the meeting of the Audit Committee
of the Board of Directors. Appropriate actions have been taken as per the decisions of
27. Human Resource Capacity Building the Audit Committee for protecting the Banks interest.

The pace of development of a financial institution is primarily based upon its ability to 29. Budget and Budgetary Control
develop and utilize the innate capacities of its employees. The most important resource
of a business organization like a Bank is its human resource. Human resource is a form The Bank follows bottom up planning approach in the preparation of annual budget and
of capital, a produced means of production. Southeast Bank Ltd adopted a Human initially invites draft proposals on different budgetary items including deposits,
Resource Strategy in case of recruitment of employees, acquiring their services, advances, profitability, business from the Branches. The draft budget estimates are then
developing their skills, motivating them to a high level of performance, and ensuring prepared by the Head Office Management and reviewed/finalized in the Business
that they continue to maintain their commitment to achieve organizational goal. Policy and Managers Conference. After approval in the meeting of the Board of
Directors, Banks budget is implemented. The Bank Management puts constant efforts
The Bank feels proud of having built the finest team with competence in the banking
throughout the year for achievement of the budget. It periodically reviews the variances
sector. It provides an environment for the employees to improve their team sprit, work
and the progress towards achieving the budgetary goals.
excellence and creativity. The Bank follows a structured recruitment policy based on
qualifications and merits for the fresh and experienced aspirants. They are recruited in
30. Analysis of Income and Expenditure Statements
the Bank through a rigid but transparent process and the best are screened out from the
bulk candidates. A brief analysis on Banks income and expenditure in 2008 is given below:
Work process at a Pharmaceutical
industry financed by the Bank. The total strength of the Bank as of December 31, 2008 stands at 1231 of which 105 A Partial View of a Modern Ceramic Industry financed
Interest Income
by the Bank.
are executives, 975 are banking officers and staff and 151 are sub-ordinate staff. The
For the year 2008 interest Income of the Bank was Tk.7,530.74 million as against
Bank recruited total 212 employees of which 46 were experienced bankers and 166
Tk.6,408.96 million of the previous year, thus recording a growth of 17.50 percent. The
were fresh entrants in 2008. The Bank promoted 171 officers during the year 2008. The
income growth generated mainly from Loans and Advances which remained the main
Bank accommodated 149 interns to promote higher education in the country. Integrity,
impartiality, fairness, efficiency and deep commitment characterize our people. The
Bank always stresses upon attracting and retaining quality human resources through
Interest Expenses
competitive compensation package and creating opportunities for individual career
development. During the year, a good amount of bonus was given as incentive to the Total Interest Expenses in 2008 was Tk.6,210.70 million as against Tk.4,852.50 million
employees. The Bank also adopts policy to provide them a workplace which is flexible, of 2007, posting an increase of 28 percent .
Board's Report
Net Interest Income 34. Operating Income for last 5 years
The net interest income of the Bank for the year 2008 stood at Tk.1,320.04 million
The Bank earned an operating income of Tk.4,039.43 million during the year 2008
against Tk.1,556.46 million of the previous year.
from Net Interest Income, Income from Investment, Commission, Exchange and
brokerage and other Operating Income. The operating income of the Bank during the
Investment Income
year 2007 was Tk.3,817.97 million. The operating income posted 5.80 percent growth
In 2008, Banks income from investment was Tk.1,279.96 million as compared to in 2008. The operating income for the last 5 years are given below:
Tk.956.80 million of the previous year. Income increased by Tk.323.16 million
registering a growth of 33.77 percent. Investment income consists of interest earned on Year Amount
treasury bills and bonds and dividend received from shares. (Taka in million)
2008 4,039.43
Other Income 2007 3,817.97
2006 2,721.48
In the year under review, commission, exchange and brokerage earnings increased to
2005 2,046.90
Tk.1,264.28 million from Tk.1,161.33 million of 2007, an increase of 8.86 percent.
2004 1,293.54
This was due to enhanced trade related fee based activity.
35. Total Lending for the last 5 years
View of a Medical College and Hospital established Operating Expenses A partial view of an export oriented Ready Made
with Bank's finance. Garments Industry financed by the Bank. The total lending of the Bank stood at Tk.60,281.26 million as on 31st December , 2008
In the year under review, total operating expenses stood at Tk.1,026.85 million as
as against Tk.48,164.60 million in the previous year showing an increase of 25 percent.
against Tk.901.77 million of previous year, thus, registering an increase of 13.87 The total lending for the last 5 years are given below:
Year Amount
31. Asset Portfolio ( Taka in million) Growth Rate
2008 60,281.26 25%
As on 31st December, 2008, the total assets of the Bank stood at Tk.81,181.53 million. 2007 48,164.60 17%
The break-up of the total assets are given below : 2006 41,147.28 26%
Taka in Million 2005 32,551.09 48%
a) Cash and Cash Equivalent 4,650.57 2004 22,001.70 42%

b) Investments 12,299.61
c) Loans and Advances 60,281.26 36. Growth of Operating Profit for Last 5 years
d) Fixed Assets 2,685.56
The Operating Profit of the Bank stood at Tk.3,012.58 million in 2008 as against
e) Other Assets 1,264.53
Tk.2,916.20 million of the previous year. The Operating Profit for the last 5 years are
TOTAL : 81,181.53 given below:
32. Adoption of IAS and IFRS Year Amount
(Taka in million) Growth Rate
International Accounting Standard and International Financial Reporting System have
2008 3,012.58 3.31%
been adopted by Institute of Chartered Accountants of Bangladesh (ICAB), Bangladesh
2007 2,916.20 41.38%
Bank and Securities and Exchange Commission (SEC). This standard and reporting
system have also been complied by our Bank in the preparation of the Financial 2006 2,062.66 39.99%
Statements. 2005 1,473.44 82.21%
2004 808.66 21.57%
33. Our Contribution to the National Exchequer for the last 5 years
37. Return on Equity for last 5 years
The Banks contribution to the National Exchequer was Tk.1,247.75 million during the
year 2008 and our contributions to the National Exchequer for the last 5 years are given During the year 2008, Return on Equity (ROE) of the Bank was 12.06 percent as against
below: 19.90 percent of the previous year. The percentages of Return of Equity for the last five
years are given below:
Year Amount
(Taka in million) Year Percentage (%) of RoE
2008 1,247.75 2008 12.06%
2007 1,185.64 2007 19.90%
2006 883.00 2006 17.98%
2005 543.27 2005 17.64%
2004 247.51 2004 17.87%
Board's Report
38. Provision for Income Tax The Bank has been widely acclaimed by the business community ranging from small
The provision for Income Tax of the Bank for the year 2008 was Tk.1,267.59 million entrepreneurs to large business houses and industrial conglomerates, multinationals etc.
against Tk.1,374.07 million of the previous year. for possessing visionary business outlook and offering innovative financial solutions to
customer needs. We took world class banking to clients doorstep by launching Real
39. Net Profit before Tax and Provision Time On Line Any Branch Banking Service using satellite based modern VSAT
The Bank earned Net Profit of Tk.3,012.58 million during the year before making any technology.
Provision for Bad and Doubtful Debt, Provision for Off -Balance Sheet Exposures, Taxes Customers, in a nutshell, are the prime priority to the Bank and the company
etc. including General Provision on Unclassified Loans and Advances as against philosophy is to satisfy clients who act as ambassadors of the Bank for its image
Tk.2,916.20 million of the previous year, thus, posting an increase of 3.31 percent. building. Special counters are opened to meet the growing demands of customers
during heavy customer flow, especially during IPO offering, Bill collection, Eid holidays
40. Net Profit after Provision and Income Tax etc. In order to give easy access to our products and to give best possible services to the
The Bank earned Net Profit Tk.887.24 million during the year after making Provision customers, the Bank offers personalized services by recruiting highly trained and
for Bad and Doubtful Debt, Provision for Off -Balance Sheet Exposures, Taxes etc. customer focused professionals. In order to provide full support and high quality
including General Provision on Unclassified Loans and Advances as against service, a Complaint Cell has been kept functional to address customers issues with
Tk.1,222.96 million of the previous year. priority. We always keep our promises, carefully listen to our costomers and deal with
A partial view of a heavy chemical industry that the
Bank financed.
A partial view of a modern 100% export oriented textile
industry established by the Bank's finance.
the complaints promptly. We are always helpful - even if theres no immediate profit in
41. Operating Results it. We train our staff to be always courteous and knowledgeable. We always take care
The Bank earned an operating profit of Tk.3,012.58 million during the year before of our customer needs by way of providing with a little extra. Every interaction with the
making any Provision for Bad and Doubtful Debt, Provision for Off-Balance Sheet customers gives us an opportunity to impress them and creates a positive perception
Exposures, Taxes etc. including General Provision on Unclassified Loans and Advances. about our business. We always put great effort to identify the key service activities so
The operating profit of the Bank during the year 2007 was Tk.2,916.20 million and thus that we can review our performance and decide on what additional initiatives we can
the Bank attained growth of 3.31 percent. The Bank achieved growth of 24 percent, 25 take to provide superior service.
percent, 51 percent, 47 percent, 67 percent and 38 percent respectively in deposit
mobilization, loans and advances, imports, exports, guarantee business and foreign 44. Research and Development (R&D) and Training
remittance respectively. The Bank has completed 14th year of banking operations with a network of 46

Branches recording significant growth in business and profitability. In order to cope
42. Statutory Reserve
with the above changes and to consolidate its position and accelerate further growth,
The Bank transferred to Statutory Reserve Tk.430.96 million as 20 percent of the profit the Bank has adopted a Human Resource Development (HRD) strategy to enable
after provisions before tax and dividend during the year as per Section 24 of the Bank employees to perform with professional expertise/managerial capabilities in the
Company Act, 1991. The total amount of Statutory Reserve stood at Tk.1,975.25 million changing competitive banking environment. The Bank, therefore, considers investment
as on 31st December, 2008. in Research and Development (R&D) and Training as an important tool of improving
operational efficiency by way of harvesting/updating individual potentialities with the
43. Customer Service changes of time. The Bank makes continuous improvement in operational procedures
Customers focus is the key to our success and customers are our first priority. The and customer service approaches and prepares/trains up its people accordingly to
company philosophy is to give total solution to customer problems. We do not sell our ensure excellence in banking service. The Banks human resources policy is to build up
products rather market the products to maximize customers satisfaction and their quality work force with skills and professional expertise. In the implementation of the
profitability in doing banking business. Our core strategy is to build up long term human resources development strategy, the Bank established Training Institute in 2005
relationship with customers to achieve sustained growth objectives and increase brand at the 4th floor of 1, Dilkusha Commercial Area, Dhaka with the vision to build up
image of the Bank. We believe in creating a win-win situation for the customers and for professionals with technical, human and conceptual skills. The Institute is focused to
the Bank. Keeping the above marketing strategy in mind, the Bank has designed ensure a formal platform where employees can exchange free ideas, update knowledge
A partial view of a furniture industry financed by the business and marketing approaches to enhance the level of customer satisfaction and to In presence of Mr. Azim Uddin Ahmed, Director, Dr. base, and open up their eyes to the complexities of banking world. The objectives of
Bank. Zaidi Sattar, Independent Director, is seen formally
ensure that our products / services have met the customer expectation. In order to opening Bank's 46th Branch at Momin Road, designing all training programs are to bridge the gap between present level and required
render on the spot clientele service, the Bank ensures quick decision-making by Chittagong, on December 21, 2008. level of competence of human resources by way of improving their knowledge base,
developing appropriate delegation of power to different levels. skills and efficiency.

The Bank has introduced relationship banking in asset and liability marketing with a During the year 2008, the Southeast Bank Training Institute (SEBTI) arranged a total of
view to providing personalized services to the target market through product 41 training courses, seminars and workshops with 1513 participants as against 31
diversification and product differentiation. The Bank continuously makes efforts in training courses in 2007 with 1066 participants. The training programs and seminars
market research and evolves / customizes both asset and liability products keeping the were conducted by both internal and external resource persons. The particulars of
needs of the individual customers in the changing competitive banking environment. internal trainings conducted in 2008 are as under:
Board's Report
Internal Training Number of Number of the greater risk to which the bank is exposed, the greater is the amount of capital the bank needs to hold
Course/Workshop/Seminars training programs Participants to safeguard its solvency and overall economic stability. It will also oblige banks to enhance disclosures.
Banks operating in Bangladesh have adopted Basel I as per regulatory requirement since 1996. To comply
1. Foundation Training Courses 2 101
with international best practices and make the banks capital more risk-sensitive as well as to build the
2. Credit Risk Management (CRM) 1 38
3. Credit Risk Grading (CRG) 1 35 banking industry more stable, all the scheduled banks will now implement revised regulatory capital
4. Asset Liability Management 1 24 framework Risk Based Capital Adequacy for Banks under Basel II and start parallel run with Basel I from
5. Foreign Exchange Risk Management 3 109 January 2009. Bangladesh Bank has already issued guidelines for implementing a New Capital Adequacy
6. Internal Control and Compliance 1 38 Framework in line with Basel II wherein the banks are advised to use Standardized Approach for
7. Anti - Money Laundering 9 355 measuring Credit Risk (risk ratings are assigned by credit assessment institutions), Standardized Rule
8. Information Technology Risk Management 2 148 Based Approach for measuring Market Risk and Basic Indicator Approach for assessing Operational Risk.
9. Basel II 1 32 In order to comply with Basel-II requirements, our Bank has already taken various steps and initiatives.
10. Credit Card Operation 1 38
We have formed an Implementation Unit for Basel II comprising officials of related discipline. We have
11. Credit Information Method in CIB Form 1 43
taken effective initiatives for overall capacity building like providing training to officials at home and
12. Awareness on Cash Management 1 40
abroad, building up strong MIS, historical database and risk management system for the bank. We intend
13. SBS 1, 2, and 3 1 39
to achieve the time bound frame set up by Bangladesh Bank and to be fully Basel II compliant by the year
14. SWIFT Operations 1 31
15. HO General A/C Reconciliation 1 35
16. Other Banking Related trainings 14 407
46. Risk Management of the Bank
Total internal trainings and Participants 41 1513
Risk in Banking Industry is the possibility / uncertainty of the outcomes of an action or event that may
Besides internal trainings, the Bank sent a total of 163 executives and officers in different external training bring up adverse impact upon the Bank or result in direct loss of earnings / capital or imposition of
courses both at home and abroad. The particulars of participants in external training courses nominated
constraints on Banks ability to meet its business objectives. An elaborate risk report of the Bank is given
in 2008 are as follows:
at page 72.
External Training Course/ Frequency Number of Participants

Workshop/Seminars 47. Merchant Banking Operations

1. Different Banking Related Training 17 31 The overall increase of activities of merchant banking operations plays an important role in the
Course/Workshops (namely on Credit, improvement of capital market of the country and enhance earning capability of the Bank. We have
Foreign Exchange, General Banking) already obtained necessary permission from the Securities and Exchange Commission under Merchant
conducted at BIBM. Banking and Portfolio Management Regulation 1996 for the purpose. The Division is poised to start the
2. Foundation Training Course at BIBM 2 51 full-fledged merchant banking activities which include the followings:

3. Training Course/Workshops Seminars 50 62 Issue Management

conducted at different training institutes Underwriting
of the country other than BIBM.(namely Portfolio Management
at BB training academy, BAFEDA, SEC)
4. Training Courses/Seminars/ Beyond the services of a merchant bank, we further meet our clients needs by engaging ourselves in the
Workshops abroad 13 19 following activities :
Total external trainings and Participants 82 163 Banker to the Issue
Lead Banker for IPO
45. Preparedness for Basel II Investment in quoted Securities
Basel II, the second of the Basel Accords, recommended on banking laws and regulations issued by the Investment in Placement Shares of IPO
Basel Committee on Banking Supervision. The purpose of Basel II is to create an international standard
that banking regulators can use when creating regulations about how much capital banks need to put 48. Islamic Banking
aside to guard against the different types of risks such as Credit risk, Market risk and Operational risk.
Southeast Bank Limited is a full-house Bank which caters both Traditional and Islamic Banking services.
Basel II insists on setting up rigorous risk and capital management requirements designed to ensure that Bank started its Islamic Banking operation through opening 03 (three) Islamic Banking Branches in the
a bank holds capital reserves appropriate to the risk. The underlying assumption behind these rules is that year 2003. In the year 2004, Bank also opened 02(two) more Islamic Banking Branches for smoothly
Board's Report
running its Islamic Banking operation based on the principles of Islamic Banking Shariah. At present, enquiry and other status of card accounts. Besides, all preparations have been taken to launch Card Cheque
Bank has 05 (five) Islamic Banking Branches. The Bank provides Islamic Banking services to the facility to remain competitive with other major players in the industry.
customers in compliance of the provisions of the Bank Company Act 1991, Bangladesh Banks directives
and the principles of Islamic Shariah. 50. Branch Expansion Program

All activities of Islamic Banking Branches are conducted on interest-free and equity-based financing based The Bank is presently operating with 46 branches including 5 Islamic Banking branches and 11 rural
on the principles of Islamic Shariah. Investment is made through different modes i.e. Mudaraba, branches located at important business centers of the country. The Bank has achieved highest per branch
Musharaka, Hire Purchase (under Shirkatul Melk), Bai-Murabaha, Bai-Muajjal, and Bai-Salam and profit in 2008. To cater to the increasing demand of the clientele, the Bank plans to open 10 more branches,
investment income is shared with the Mudaraba depositors on an agreed ratio, ensuring a reasonably fair three Offshore Banking Units (OBU) and 10 SME Service Centres in 2009 in important business hubs
rate of return on their deposits based on weightage of individual product. including non-urban growth centers to contribute to expansion of trade, commerce and industries subject
to obtaining licence from Bangladesh Bank.
As on December 31, 2008, the deposit and investment of Islamic Banking Branches were Tk.6,894.57
million and Tk.3,479.48 million showing an annual growth of 23.28 percent and 69.42 percent
51. Credit Rating of the Bank
respectively. During the period 2008, total import and export businesses handled were Tk. 1,830.33
million and Tk.1,781.26 million respectively recording significant growth. Non Performing Loans of
Islamic Banking Branches was 0.18 percent of the total investment in 2008.
Name of Particulars Long Term Short Term Remarks
The Bank has a Shariah Council consisting of leading Islamic Scholars, Bankers and economists who are the Rating
well versed in Shariah concerning Islamic Banking operations. The council enjoys a special status in the
structure of the Bank that sits in meetings and plays a vital role to formulate policy guidelines and working Entity A+ ST-3
procedures. Under the guidance of Shariah Council, the Bank designed all deposits, investment products Rating Single A Plus. Good Grade
and services and formulated policy guidelines and working procedure. The following leading Islamic (Adequate Safety)
scholars are on the Banks Shariah Council as its Faquih Members:
Banks/Financial Institutions Good certainty of timely Based on
Credit Rating rated in this category are payment. Liquidity factors Audited
01. Professor Moulana Mohammad Salah-Uddin Information and adjudged to offer adequate and company fundamentals Financial
Khateeb, Baitul Mokaram National Jame Mosque, Services Limited safety for timely repayment of are sound. Although ongoing Statements as
Former Principal, Madrasha-e-Alia, Dhaka (CRISL) financial obligations. This funding needs may enlarge of 31
level of rating indicates a total financing requirements, December
02. A S M Fakhrul Ahsan

corporate entity with an access to capital markets is 2008.
Former Deputy Governor adequate credit profile. Risk good. Risk factors are small.
Bangladesh Bank factors are more variable and
greater in period of economic
03. Moulana Abdul Hakim Azadi
stress than those rated in the
Head Moulana, Siddeshari Girls High School and higher categories.
Khateeb, Eskaton Garden Jame Mosque, Dhaka

49. Credit Card

52. Corporate Governance
The Bank started issuance of Visa Credit Card from the beginning of 2005. At that time, there were five
major competitors in this business. Now, there are as many as twelve card issuing banks and many more One of the basic policies of the Bank is to strengthen its corporate governance status by establishing
banks are planning to enter the market. Some of the banks have principal membership of both Visa and responsible management system and strengthening supervision. Efforts are also being geared up to improve
Master Card. As a result, we are experiencing fierce competition. Charges and fees have come under the transparency and accountability of the management. While putting efforts to achieve corporate
pressure resulting in reduction of the profit margin. In 2008, we have made an operating income of objectives, Southeast Bank gives top priority to establishing corporate governance standard at all levels and
Tk.76.08 million with an average monthly income of Tk.6.34 million. We have issued 10,329 Cards up in all units.
to the end of December 2008. We have registered growth of 39 percent in marketing cards and 40
The Bank has also implemented the requirements contained in Securities and Exchange Commission
percent in income during the year under review.
Notification No. SEC/CMRRCD/2006-158/Admin/02-08 dated February 20, 2006. A brief report about
Notwithstanding the severe competition among the issuing banks, our challenge is not only to retain the corporate governance scenario of Southeast Bank Limited is given at the page 66
market share but also to increase the card base. While issuing cards, we have been making conscious
efforts in selecting better cardholders. Besides, we have launched a few campaigns with attractive offers 53. Appointment of Statutory Auditors
which included waiver on card fee and cash advance fee to create impact in the market. Such campaigns
In the 13th Annul General Meeting of the Bank, M/S Hoda Vasi Chowdhury and Co. were appointed
were also aimed at building a fair image of the Bank.
External Auditors of the Bank for the second term till conclusion of the next Annual General Meeting. They
In order to bring diversification in the card business, we have planned a few new products to be launched are eligible for re-appointment as External Auditors by the shareholders in the 14th Annual General Meeting
in the near future. We have already introduced SMS Push-Pull Service to trigger transaction alert, balance for the third term.
Board's Report kKrYJujJ kwtPhr kKfPmhj
54. Dividend Kk~ Pv~JrPyJflJrmO
The Bank focuses on the principles of sharing good achievements with the respected Shareholders.
Accordingly, the Board of Directors recommends 15 percent Cash Dividend and 20 percent Stock xJCgA mqJPTr kKrYJujJ kwth mqJPTr 14fo mJKwtT xJiJre xnJ~ @kjJPhr xJhr xJwe \JjJP Fm KjrLPTr
Dividend (Bonus Share) for the year 2008. The Banks priority is to increase shareholder value by kKfPmhjxy 31v KcPxr 2008 A fJKrPU xoJ KyxJm mZPrr \jq mqJPTr 14fo mJKwtT kKfPmhj @kjJPhr xMPU
enhancing the overall earnings of the Bank. CkJkj TrPf kPr Ifq @jPmJi TrPZ
55. Election of Directors
01. Kmv IgtjLKfr VKf-kTKf
In terms of Article 105.(i) of the Articles of Association of the Bank, one-third (1/3rd) of the Directors for
the time being or if their number is not three (3) or multiples of three (3) then the number nearest to one- 2008 xJPu Ee mJ\JPrr xTa S Fr EeJfT lPur knJPm mqJKT UJPf FTKa Kmru WajJ kKruKf yP~PZ Fr @PV
third (1/3rd) shall retire from office. Kmv IgtjLKfPf aJjJ YJr mZr iPr InNfkNmt kmOK IK\tf yP~PZ pJr Vz KZu 5 vfJv 2008 xJPur kgo YfgJtPv Kmv
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56. Corporate Social Responsibility kgo YfgJtPvr UMm nJu kmOKr kr Kmv IgtjLKfr oJmJ FKv~Jr IgtjLKfPfS kKruKf y~ IgtQjKfT mJ\JPrr
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in which it operates. A report on Corporate Social Responsibility of the Bank in 2008 is given at page 76 Cj~jvLu hv oNuqLKfr YJPkr oPiq @PZ
of this Annual Report.
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57. Acknowledgement ImJr TJre yP @mJxj UJPf xJm-kJAo-uK oJKTtj pMrJPsr mftoJPj 10 KasKu~j oJKTtj cuJPrr mKv mPhKvT
The Board expresses gratitude to the Almighty Allah for the success of the Bank in 2008. The Board
hJ~ @PZ ImJr @rS ImjKf yP~PZ TJre, xJm-kJAPor TJrPe oJKTtj mqJTxoNPyr iJr h~Jr ofJ 2 KasKu~j AC
extends thanks to the valued customers, patrons and well-wishers for their continued support and co- Fx cuJr TPo VPZ
operation to the Bank. The Board also places on record its appreciation for the Senior Management Team, F ImJr kKrPkKPf @A Fo Fl 2008 xJPur Kv CkJhPjr kmOK 3.9 vfJv KjiJtre TPrKZu pJ 2007 xJPu KZu
all Executives and other members of the Staff for their dedicated services to the Bank. The Board offers 5 vfJv IjMoJj TrJ y~ p Cjf IgtjLKfPuJ xKKufnJPm 2008 xJPu (2007 xJPu KmPvr xJoKVT CkJhPjr 56.4
thanks to the Government of Bangladesh, Bangladesh Bank, Securities and Exchange Commission,
Registrar of Joint Stock Companies and Firms, Dhaka Stock Exchange Limited and Chittagong Stock
vfJv) 1.5 vfJv kmOK I\tj TrPm Fm Cj~jvLu hvPuJ xKKuf nJPm (2007 xJPu KmPvr xJoKVT CkJhPjr
Exchange Limited for their appreciable support and co-operation to the Bank. The Board also expresses
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its appreciation to M/S. Huda Vasi Chowdhury & Co., the Auditors of the Bank, for their efforts for timely WPa jPnr 2008 Fr vw KhPT fJ TPo kKf mqJPru 50 cuJPr jPo @Px KmKnj Cjf hPvr oMhsJLKf mPz pJ~
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print and electronic media personnels for giving media coverage to Banks different activities and events. mPu kJKuf y~ pJ 2007 xJPu KZu 7.2 vfJv KmPvr Igt mJ\JrPuJ hNmtu gJTPm Fm Kj~ofJKT ^KTr KjPhtvTxoNy

Finally, the Board thanks the respected Shareholders and assures them that it will continue to add to the
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On behalf of the Board of Directors. 2008 xJPu fujJoNuTnJPm nJu yPm mPu kJKuf y~

02. 2008 xJPu mJuJPhPvr IgtjLKf

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mqJKT, TPktJPra mqJKT, KxKPTa Ee, Kj mOK x~ kT, oJKxT x~ kT, oJKxT oMjJlJ kT, kjvj x~ 06. 2008 xJPu kNK\mJ\JPrr xJKmtT ImJ

kT, SP~\ @jtJr kjvj Ko Fm Fx,Fo,Fx mqJKT AfqJKh KmPvr kiJj IgtQjKfT vKxoNy, KmPvwf: pMrJPs 2008 xJPu IJKgtT oJ kKruKf y~ xJrJ mZrmqJkL pJr FTKa o
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@f TPrPZ, fJPhr xmJkPeqr Jj mOK TPrPZ Fm fJPhr hfJ~ jfj oJJ pJV TPrPZ VJyTPhr kP~J\jL~ krJovt xJiJre xNYT 2,795.34 kP~P kRPZ kNmtmftL mZr F xo~ KcFxA xJiJre xNYT KZu 3,017.21 kP~ IJPuJYq mZPr
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kvJVf, jqJ~KnKT, mMmxu Fm Jj-Kjntr @YrPer oJiqPo mJKjK\qT, Mhs mqmxJ~L S mqKxy xTu irPjr VJyTPhr xPmtJ oNuqxNYT 3,207.89 rTct TrJ y~
xPmtJo VJyT xmJ khJj TPr gJKT
2008 xJPu oJa mJ\Jr oNuij hJzJ~ 1,043.79 KmKu~j aJTJ, kNmtmfL mZr pJr kKroJj KZu 742.20 KmKu~j aJTJ
xJCgA mqJTPT FTKa @iMKjT mqJKT kKfJPj kJKrf TrPf @orJ xTm @orJ @vJmJhL F mqJTKa yPm kNmtmfL mZPrr fujJ~ oJa mJ\Jr oMuij 40.63 vfJv mJPz FTAnJPm 2008 xJPu oJa ujPhPjr xUqJ KZu 15.06
TPot fkr, TotxNYLPf kVKfvLu, ujPhPj xfqJvsL~, KmYJr-KmPmYjJ~ jqJ~krJ~e, ojPj nKmwqoMUL, hOKnLPf KjrPk KoKu~j kNmtmfL mZr Fr xUqJ KZu 8.17 KoKu~j KmVf mZPrr fujJ~ oJa ujPhPjr xUqJ mJPz 84.33 vfJv
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KZu 2,10,269.13 KoKu~j pJ oJa ujPhj yS~J v~JPrr oNPuqr 45.77 vfJv
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kJmTf oJa v~Jrr oNuq KZu 8,270.00 KoKu~j aJTJ Fm v~Jr xUqJ KZu 229.40 KoKu~j 2008 xJPu @AKkS
hJK~f S Pfr kKf xJj rPU mJKjK\qT TJpto kKrYJujJ TPr gJPT mqJT v~JrPyJflJrmOPT fujJoNuTnJPm Co
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oNuij KZu 2,852.20 KoKu~j aJTJ @PuJYq mZPr mqJPTr oNuij S Kr\JPntr kKroJe KZu 7,657.01 KoKu~j aJTJ pJ kmJy, v~Jr KkKo~Jo KyxJPrr KKf, xJiJre xKKf, v~Jr kKf @P~r KmkrLPf mJ\JPr v~Jr oNuq AfqJKh FPuJ
2007 xJPu KZu 6,468.36 KoKu~j aJTJ, F P kmOKr yJr 18.38 vfJv TJJjLr IgtQjKfT ijJfT xofJ kTJv TPr kMK\mJ\JPrr mJm ImJ KmPmYjJTJrL KmKjP~JVTJrLVe xmxo~ @PrJ
kKrYJujJ kwtPhr kKfPmhj W) IjMPoJKhf S kKrPvJKif oNuij
1995 xJPu mqJT TJpto TrJr kr gPT Fr IjMPoJKhf S kKrPvJKif v~Jr oMuiPjr kKroJj CPuUPpJVqnJPm
nJu KmKjP~JPVr UM\Pf KVP~ xJiJrjf: KmPmYjJ TPr p, v~JrkKf @P~r KmkrLPf v~Jr mJ\Jr oNuq IgmJ xo\JfL~ PmPzPZ mftoJPj @oJPhr IjMPoJKhf oNuiPjr kKroJj 3500 KoKu~j aJTJ Fm kKrPvJKif oNuij 2,852.20 KoKu~j
TJJjLr fujJ~ v~Jr ~ TrPf Tf Igt mq~ TPrPZj Fm xo\JfL~ vKvJuL mJ\Jr KnK KmKv v~JPrr fujJ~ fJr aJTJ jLPY 1995 xJu gPT mqJPTr IjMPoJKhf S kKrPvJKif oNuiPjr kKroJj hUJPjJ yu :
KmKjP~JVTf v~JPrr ImJ fJrJ fJPhr KmKjP~JVTf Igt gPT xPJw\jT uJPnr @vJ TPr xJCgA mqJPTr mZr IjMPoJKhf oNuij kKrPvJKif oNuij
v~JrPyJflJrVj F iJrjJ~ KmvJxL (KoKu~j aJTJ) (KoKu~j aJTJ)
2008 3,500.00 2,852.20
2007 3,500.00 2281.76
T) v~JrPyJflJr xUqJ 2006 3,500.00 2,112.74
@oJPhr mqJPTr v~JPrr Ckr m xUqT v~JrPyJflJr @J rPUPZj 31v KcPxr 2008 fJKrPU mqJPTr 2005 2,500.00 1,056.37
v~JrPyJflJr xUqJ hJzJ~ 12,536 \Pj KmVf mZPrr F xo~ v~JrPyJflJr xUqJ KZu 9,636 \j v~JrPyJflJr xUqJr 2004 2,500.00 880.31
2003 2,500.00 677.16
mOKr yJr 30.09% jLPY kNmtmfL kJY mZPr @oJPhr mqJPTr v~JrPyJflJr xUqJ mOKr fgq h~J yu : 2002 2,500.00 399.30
2001 500.00 363.00
mZr v~JrPyJflJr mOKr yJr 2000 500.00 330.00
2008 12,536 30.09% 1999 500.00 300.00
1998 500.00 150.00
2007 9,636 8.82% 1997 500.00 125.00
2006 8,855 54.00% 1996 500.00 100.00
2005 5,750 22.24% 1995 500.00 100.00
2004 4,704 61.53%
X) unqJv WJwjJ
@oJPhr TJJjLr kKrYJujJ kwth v~JrPyJflJrPhr \jq oNjJlJ gPT CyJPr unqJv WJwjJ TPr gJPT x TJrPe
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2008 xPjr vPw mqJPTr kKrPvJKif xJiJre v~JPrr xUqJ hJzJ~ 2,85,21,978 hPvr Cn~ kMK\mJ\JPr jVh unqJv S oMuijL unqJPvr yJr hUJPjJ yu :
fJKuTJnNKr kr gPT F kpt @oJPhr AxMqTf v~Jr 850.73% mOK kJ~ mqJKT mqmxJ kKrYJujJr oJiqPo @orJ mZr jVh unqJv oNuijL unqJv oJa unqJv
KmVf YJr mZr pJm CPuUPpJVq kKroJj oMjJlJ I\tj TPrKZ Fm unqJPvr CPuUPpJVq Iv xKv v~JrPyJflJrPhr oPiq 2008 15% 20% 35%

2007 15% 25% 40%
mj TPrKZ @oJPhr TJJjLr v~Jr kKf C @~ mqJPTr uJn\jTfJ kTJv TPr jLPY mqJPTr kJY mZPrr v~Jr 2006 20% 8% 28%
kKf @~ hUJPjJ yu: 2005 - 20% 20%
2004 - 30% 30%
mZr v~Jr kKf @~ 2003 20% 20% 40%
2008 31.11 2002 20% 10% 30%
2007 42.88 2001 30% 10% 40%
2000 25% 10% 35%
2006 59.71
1999 15% - 15%
2005 35.42
2004 43.52 08. @oJjf
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F CPuUPpJVq IVVKff ImhJj rPUPZ mqJT hs S oJ^JKr x~TJrLPhr \jq mv KTZ @TwteL~ x~ kT YJuM
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TJJjLr Cfr jLa xhoNPuqr TJrPe IKiT xUqT KmKjP~JVTJrL @oJPhr mqJPTr v~JPr KmKjP~JV TrPZj 2004 2008 fJKrPU mqJPTr @oJjf Kovsj KZu Kjok:
xj gPT mqJPTr jLa xh oMuq jLPY hUJPjJ yu: KoKu~j aJTJ vfTrJ yJr
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U) x~L @oJjf 3,477.92 5.06%
2008 257.95 (4.21%) V) o~JhL @oJjf 3,680.24 5.36%
2007 269.29 12.45% W) J~L mJ o~JhL @oJjf 50,505.26 73.50%
2006 239.47 24.21% X) KmKnj kTPr @SfJ~ xVOyLf @oJjf 4,963.48 7.22%
2005 192.80 18.73% Y) kPh~ KmPur KyxJm UJPf 852.13 1.24%
oJa: 68,714.67 100.00%
2004 162.38 (3.95%)
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2008 xJPu mqJPTr kKrYJuTPhr mqJT gPT TJj jfj Ee khJj TrJ y~Kj
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11. VqJrJK mqmxJ
mqJT 2007 xJPur 9008.32 KoKu~j aJTJr KmkrLPf F mZr oJa 15,078.99 KoKu~j aJTJr VqJrJK AxMq TPr FP 17. vseLTf Ee @hJ~
kmOKr yJr 67.39 vfJv mqJPTr xJKjf VJyTPhr @PmhjPo KmKnj xrTJrL TftOk, oeJu~, J~fvJKxf mqJPTr mqmxJ xxJrj fgJ KmKjP~JPVr CPrJr kmOK WPaPZ kh EPer vseLTf yS~Jr kmefJ ysJx TrJr \jq S
kKfJj, TPktJPrvj, mqKmVt, mxrTJrL TJJjLxoNy Fm m\JKfT TJJjLxy KmKnj kKfJPjr IjMTNPu VqJrJK AxMq xPhr CoJj m\J~ rJUJr uPq Ee fhJrTL TJpto @PrJ KjKmz TrJ yP~PZ Ctfj kptJP~r KjmtJyLxy @Aj TotTftJ
TrJ y~ KjP~JV Fr oJiqPo Kca FqJcKoKjPsxj KmnJPVr hfJ mOK TrJ yP~PZ FZJzJ Ee UuJkL ^KT ysJx TrJr uPq EPer
hKuuJ~j, mLoJTrj, T kK\vj AfqJKh Kmw~xoNy KjKmznJPm kptPmPer kPYJ ImqJyf @PZ 2008 xJPu UuJkL Ee
12. FxFoA IgtJ~j VyLfJPhr TJZ gPT 389.19 KoKu~j aJTJ jVh @hJ~ TrJ yP~PZ Fm mv KTZ Ee kMjflxLKur oJiqPo Kj~Kof TrJ
mqJT 2004 xJPu FxFoA IgtJ~j kT YJuM TPrPZ F UJPf KmPvw j\r h~Jr uPq mqJT kiJj TJptJuP~ FTKa yP~PZ
@uJhJ FxFoA xu'' kKfJ TPrPZ mqJT FxFoA xPur @SfJ~ oKyuJ CPhqJJPhr \jq FTKa kOgT ACKja Jkj
TPrPZ 31 KcPxr 2008 xJu kpt 2848Ka FxFoA KyxJPm oJa 6,595.21 KoKu~j aJTJ Ee khJj TrJ y~ 2007 18. KmKjP~JV
xJu xoP~ 1,513Ka KyxJPm oJa 3,023.05 KoKu~j aJTJ Kmfre TrJ yP~KZu FPP kmOKr yJr 118.16 vfJv
mqJPTr KmKjP~JPVr kKroJj Vf mZPrr 8,462.86 KoKu~j aJTJ gPT vfTrJ 45 nJV PmPz @PuJYq mZPr 12,299.61
13. nJJEe kT KoKu~j aJTJ~ CkjLf y~ KmKjP~JV oJiqoPuJPf ItnN KZu xrTJrL as\JrL Kmu, kJA\ m, kJmKuT KuKoPac
TJJjLr v~Jr AfqJKh mqJT xmthJ C oMjJlJ xjUJPf KmKjP~JV Fm mJuJPhv mqJT TftOT KjitJKrf pMVk KmKim
nJJEe kT xJCgA mqJPTr FTKa xmJ keq pJ nJJxJiJrPer VOyJuL kPeqr YJKyhJ kNrPe xyJ~fJ TPr
fJruq IjMkJf m\J~ rJUJr Ckr IKiTfr f @PrJk TPr
nJJxJiJrePT Ee khJj frJKjf TrJr uPq mqJT kiJj TJptJuP~ kOgT FTKa Tj\MqoJr Kca Lo (KxKxFx) xu
Vbj TPrPZ 31 KcPxr 2008 fJKrPU mqJPTr KxKxFx EPer kKroJj KZu 205.88 KoKu~j aJTJ, pJ kNmtmfLt mZPr KZu
175.86 KoKu~j aJTJ F P kmOKr yJr 17.07 vfJv 19. mPhKvT mJKe\q TJpto
hsf mitjvLu KmvJ~j pMPV xJCgA mqJT hPvr mqmxJK~T VJKPT KmKnj kTJr @t\JKfT mJKe\q xmJ IgtJ @ohJjL
14. KxKPTPac IgtJ~j S rJjL Eek, mPhKvT VqJrJK, qJmJA Eek, rKoaqJ xmJ khJjPT kiJj S oNu Kmw~ KyxJPm f KhP~ gJPT
hvL~ mxrTJrL mqJPTr oPiq xJCgA mqJT KxKPTvj EPer kKgT KyPxPm 1996 xJu gPT KxKPTvj Ee TJptPo mqJPTr mPhKvT mJKe\q TJpto kKrYJujJr \jq hPvr TRvuVf fkNet JPj ImKf 21Ka IjMPoJKhf KcuJr
IvVyj TPr @xPZ mqJPTr FTKa ~xNjt uJj KxKPTvj ACKja rP~PZ, pJ KxKPTvj uJPjr xTu TJpto vJUJPuJPf mPhKvT mJKeP\q IKn TotTftJ TotYJrL KjP~JK\f rP~PZ pJ KmVf TP~T mZr iPr mPhKvT mJKeP\q aTxA
kKrYJujJr KjKoP pgJpg KvJVf pJVqfJ S TJKrVKr Jj xj h \jmu JrJ xoO F kpt mqJT xmtPoJa 46Ka kmOK I\tPj fkNet nNKoTJ kJuj TrPZ
kKrYJujJ kwtPhr kKfPmhj KjPo mZrS~JrL mqJPTr SP~\ @jtJr rKoaqJ Fr fJKuTJ hS~J yu
mZr rKoaqJPr kKroJj rKoaqJPr kKroJj
@ohJjL mJKe\q (KoKu~j cuJr) (KoKu~j aJTJ)
2008 xj xJCgA mqJPTr \jq @ohJjL mqmxJP~ aTxA kmOK I\tPjr @rS FTKa KmPvw mZr KyPxPm xjJ yP~PZ 2004 17.32 1,091.25
F mZr mqJPTr oJa @ohJjL mJKe\q yP~PZ 58,019.77 KoKu~j aJTJ (ACFx cuJr 840.86 KoKu~j) pJ Vf mZPrr 2005 53.14 3,507.40
fMujJ~ 51% mOKr FTKa oJAuluT rYjJ TPrPZ @ohJjL keqPuJr oPiq YJu, Vo, KYKj, TqJKkaJu oKvjJrL\, m Fm 2006 193.75 13,479.83
FPxKr\, kMrJfj \JyJ\, nJ\q Qfu, fuJ Fm Lu xJoVL kiJj 2007 160.04 11,040.17
2008 220.70 15,221.87

21. QmPhKvT kKfx (Correspondent) xTt

KjPo mqJPTr Vf 5 mZPrr @ohJjL mJKe\q fJKuTJ hS~J yu

mZr @ohJKjr kKroJe @ohJKjr kKroJe xJCgA mqJT KjrKmKZj S omitoJj yJPr vKvJuL mPhKvT mqJKT kKfx xPTtr jaS~tJT VPz fuPZ pJ
(KoKu~j cuJr) (KoKu~j aJTJ) @\tJKfT mJKeP\q Ifq AKfmJYT ImhJj rJUPZ 31v KcPxr 2008 fJKrU kpt KmPvr 95Ka hPvr UqJKfoJj
2004 306.51 20,229.62 mqJPTr xP mPhKvT kKfx xPTtr xUqJ 587 F CjLf yP~PZ
2005 421.44 29,079.30
2006 501.79 35,125.12 kKfvKf rJ~ @oJPhr YoTJr xMjJo Fm vKvJuL @KgtT KnKr \jq mqJTKa KmvmqJPTr xJmKxKc~JrL kKfJj
2007 557.50 38,470.34 @A.Fl.Kx. (AJrjqJvjJu KljJ TPktJPrvj), Fl,Fo,S (jhJruqJx&), F.Kc.Km. (FKv~Jj Cj~j mqJT) xy IjqJjq
2008 840.86 58,019.77 mqJPTr xJPg @KgtT, IjJKgtT Ee xMKmiJ uJn TrPf xo y~ Ej xMKmiJ mOKr kPYJ ImqJyf rJUPf @orJ mqJT Im
YJ~jJxy KmKnj @t\JKfT mqJPTr xJPg KrPuvjKvk oqJPj\Po IgKrKa (@rFoF) xTt Jkj TPrKZ

22. xMAl&a (SWIFT)

rJjL mJKe\q
xJCgA mqJT hPvr rJjL mJKeP\q Cj~jTP KmKnj rJjL IgtJ~j xMKmiJ KhP~ F PT xmtJKiT fJPrJk TPr
@xPZ 2004 xJu yPf 2008 xJu kpt mqJTKa rJjL mJKeP\q xMxyf S KjrKmKj kmOK I\tPj xo yP~PZ kiJj xJCgA mqJT mJuJPhPvr xMAl&a KxPo mqmyJrTJrL VPkr Ijqfo TJptTrL xhxq mqJTKa hPvr xmtkgo 24 WJ
kiJj rJjL kPeqr oPiq QfrL PkJwJT, kJa S kJa\Jf hsmq, KxrJKoT, KyoJK~f oxq Fm KmKnj TKw\Jf keq CPuUPpJVq IjuJAj xMAl&a xPpJV JkPj IVeL nNKoTJ rPUPZ 2008 xJPu mqJPTr 21Ka IjMPoJKhf KcuJr vJUJPuJPf xMAl&a
CPuUq p, 2008 xJPu mqJTKa 42,178.60 KoKu~j aJTJr (xooJj ACFx cuJr 611.28 KoKu~j) rJjL @~ TPrPZ pJ xPpJV rP~PZ @oJPhr xMh xMAl&a Kao @t\JKfTnJPm kmKftf xTu kJVJo xoKjf TrJr kPYJ YJKuP~ pJP Fm
KmVf mZPrr fujJ~ 47% mKv I mqJTKar h xMAl&a Kao mqJuJPhPvr xMAl&a oJr VPk TJptTrL nNKoTJ kJuj TPr YuPZ VJyTPhr Cjf S fKz
xmJ khJPjr uPq @oJPhr xmPuJ F.Kc vJUJ~ xMAl&a KrP~u aJAo Ij-uJAj xMKmiJ kmKftf yP~PZ

KjPo mZrS~JrL mqJPTr Vf 5 mZPrr rJjL mJKe\q fJKuTJ hS~J yu
23. as\JrL TJpto S fyKmu mqmJkjJ
mZr rJjLr kKroJj rJjLr kKroJj mqJTr Pas\JrL KmnJPVr hJK~f yu mqJTr mPhKvT oNhsJr ujPhj, fJruq, xh S hJ~ mqmJkjJ Fm xPmtJkKr fyKmu
(KoKu~j cuJr) (KoKu~j aJTJ~)
mqmJkjJ kKroJk S fJr ^KT ysJx F KmnJV SnJr Kh TJCJr Fm APuTasKjT asJjP\Tvj YqJPjPur oJiqPo mzoJPkr
2004 112.32 6,761.93
ujPhj TPr gJPT Fm mJ\JPrr KhT KjPhvtjJ KhPf TJptTrL nNKoTJ kJuj TPr as\JrL KmnJV Kj~KofnJPm mPhKvT oMhsJ
2005 202.41 13,511.10
mJ\JPrr oNPuqr CbJjJoJ kptPmj TPr Fm KmKnjkJ ImuPjr oJiqPo xKbT ImJj Vyj TPr, pJr lPu pgJxm ^KT
2006 369.64 25,874.61
ysJx S @~ mOK WPa
2007 423.10 28,771.36
2008 611.28 42,178.60 lPrj FTsPY c mqJTr S hLWt o~JhL mPhKvT oNhsJr mqmJkjJ TPr gJPT F c kP~J\j IjMpJ~L ~/Km~,
Imqmf fyKmu KmKjP~JV Fm KmKnj kKfPf, poj xJ~Jk, IKVo YK (Forward) Fr oJiqPo mqJTr fyKmPur
20. SP~\ @jtJr rKoaqJ TJptTrL mqmyJr KjKf TPr VJyTPhr xPmtJo xmJ khJPjr uPq F c mqJTr Kmf vJUJr oJiqPo PlJKa FTsPY
SP~\ @jtJr rKoaqJ hPvr IgtjLKfPf Ifq AKfmJYT nNKoTJ rJUJr kJvJkJKv mPhKvT oMhsJr Kr\Jnt TJbJPoJPT xMxyf ra Fm x ra kTJv TPr gJPT kxf CPuUq p, lPrj FPY c F mZPr 1,669.13 KoKu~j AC.Fx cuJr
TrPZ xJCgA mqJPTr xo~ CkPpJVL kpMK S xMh TotTftJ S TotYJrLr xKKuf CPhqPV IKf xoP~ hPvr p ujPhj TPr pJ 2007 xJu gPT 46.21% mvL
TJj JPj ImKf CkTJrPnJVLPhr yJPf mPhKvT rKoaqJ kRPZ KhP KjKmtPW S KjrJkPh mqJTKa 2008 xJPu SP~\ kgo xJKrr IVVjq mqJT yS~Jr uPq xJCgA mqJT VJyToMUL xmJjLKf Vye Fm TrPkJPra, ToJKvt~Ju S KrPaAu
@jtJr rKoaqJ S kptJ rJjL @P~r xojP~ @:oMhsJmJ\JPrr Ckr Kjntr jJ TPr mPhKvT oMhsJ~ xo @ohJjL mq~ VJyTPhr YJKyhJ KoaJPf jJjJoMUL xmJ YJuM TPrPZ FZJzJS hsf S kKfPpJKVfJoNuT UrPY ujPhj xj TrJr uPq mqJT
KjmtJPy xo yP~PZ @oJPhr h oJPTtKa Kao KmKnj hPvr jJjJ FPY TJJjLr xJPg jfj jfj rKoaqJ kre fJr kpMKVf ImTJbJPoJ IKiTfr vKvJuL TPrPZ F\Pjq F c @iMKjT pJVJPpJV kpMK ImTJbJPoJ~ xMxKf poj
mqmJ JkPjr \jq xhJ xPY rP~PZ FTAnJPm kKrf rKoaqJPr CkTJrnJVLPhr yJPf hsf kRPZ h~Jr KjKoP r~aJrx, mMMomJVt, xMAla, AJrPja, AuTasKjT asKc kJalot, nP~x rTctJr AfqJKh
JjL~nJPm KmKnj mqJT S kKfJPjr xJPg rKoaqJ kre mqmJ JkPjr \jq TJptTrL kPhk j~J yP
2008 xJPur vw YfgtJPv Kmv IgtQjKfT oJr TJrPe xTu kiJj QmPhKvT oNhsJ, keq Fm v~Jr mJ\Jr KZu Ifq
2008 xJPu mPhKvT rKoaqJ krjTJrL FPY S mqJPTr xUqJ 30 F CjLf yP~PZ pJ 2007 xJPu KZu 20Ka F IKKfvLu F kKrKKfPf mqJPTr \jq ^KT mqmJkjJA KZu as\JrLr oNu uq FZJzJS oMjJlJ I\tjTJrL KmnJV KyPxPm
xTu FPY TJJjLPuJ ACPrJk, @PoKrTJ, TJjJcJ, IPsKu~J S oiqkJYq knOKf Iu yPf rKoaqJ kre TPr @oJPhr Pas\JrL QmPhKvT oNhsJ KmKjo~ TJpto gPT 261.82 KoKu~j aJTJ, JjL~ oNhsJmJ\Jr gPT 1,363.86 KoKu~j
gJPT Vf 2008 xJPu mqJTKa oJa 220.70 KoKu~j oJKTtj cuJPrr (15,221.87 KoKu~j aJTJ) rKoaqJ xVy TPrPZ aJTJ Fm xrTJrL KmKjP~JVk ~Km~ TJpto gPT 8.89 KoKu~j aJTJ I\tj TPrPZ, pJ 2007 xJu gPT 25.80
pJ Vf mZPrr YP~ 38% mvL Fm KmVf 5 mZPrr fujJ~ 12 j mvL vfJv mvL
kKrYJujJ kwtPhr kKfPmhj 4 VJyTPhr xMKmiJPgt mv KTZ IgtQjKfT kKfJj Fm Kj~T xJxoNy poj: mJuJPhv mqJT, \JfL~ rJ\ mJct,

24. xh S hJ~ TKoKa (ALCO)

xJmtKeT VJyTPhr xPvt gJTJr CkpM oJiqo yP SP~m xJAa Tftk mqJPTr SP~m xJAa mqmyJPr xmtJKiT KjrJkJ
mJuJPhv mqJTr jLKfoJuJ IjMpJ~L, KKfkPr h ^KT mqmJkjJr \jq mqJTr FTKa xK~ xh S hJ~ TKoKa
(ALCO) rP~PZ F TKoKa mqJTr mqmJkjJ kKrYJuT , hM\j Ck-mqmJkjJ kKrYJuT Fm kiJj TJptJuP~r fkNet
KmiJj Fm VJyTPhr xJPg Iaa xTt JkPj kKfJm @PuJYq SP~m xJAa Fr xJyJPpq AJrPja mqJKT kmftPjr
oJiqPo mqJKT xmJPT VJyTPhr WPr WPr kRPZ KhPf kP~J\jL~ CPhqJV APfJoPiq mqJT Tftk Vyj TPrPZ
KmnJVL~ kiJjPhr KjP~ VKbf xh S hJ~ TKoKar xnJ kKfoJPx IjMKf y~ F TKoKa mqJTr xMPhr yJr ^KT S fJruq
^KT kptJPuJYjJ TPr Fm ^KT ysJPxr kP~J\jL~ mqmJ Vye TPr 27. oJjm xh - hfJ mOK
FTKa @KgtT kKfJPjr xJKmtT IVsVKf oNuf: fJr TotTftJ/TotYJrLr hfJ mOK Fm fJPhr I:\Jf iLvK kP~JPVr Ckr
25. 2008 xJPur oNhsJmJ\Jr Kjntr TPr gJPT KjxPPy kKvKf oJjm xh p TJj @KgtT kKfJPjr fgJ mqJT kKrYJujJr P IfLm fkNjt
mqJKT UJf gPT xrTJPrr IKiT kKroJPj Ee Vye Fm mJKwtT Cj~j TotxNYL mJ mJ~Pjr iLrVKfr TJrPe 2008 xJPur FKa FT kTJPrr oNuij CkJhPjr \jq xO oJiqo F CPvqPT xJoPj rPU Fm aTxA kmOK I\tPjr uPq xJCgA
mvLrnJV xoP~ oMhsJmJ\JPr fJruq xTa KZu lPu @:mqJT Tu-Pra KZu IKKfvLu 2008 xJPur mvLrnJV xoP~ mqJT FTKa xoKjf oJjm xh xVy S Cj~j TRvu Vyj TPrPZ pJr oJiqPo mqJT fJr TotYJrLPhr TothfJ mOK,
@oJPhr mqJT IJ:mqJT oMhsJmJ\JPr oNuf: EehJfJ KyPxPm KZu Fm oMhsJmJ\JPr xK~ IvVyPer oJiqPo mqJKT UJf xO\jvLufJ, @jMVfq Fm mqJPTr kKf hO| ILTJr uJPn xo yPm
Kj~PTr xTu KmKim Kj~o hfJr xJPg kKrkJuPj xo y~ mqJKT xPrr oPiq @oJPhr mqJT xmPYP~ nJu hfJxj TotLmJKyjL VPz fuPf kJrJ~ VmtPmJi TPr mqJT fJr
TotLPhr \jq Foj FT YoTJr Tot-kKrPmv frL TPrPZ pUJPj huVf TotOyJ, Cjf TotkJ S xOKvLufJr KmTJv WPa
26. fgq kpMK jfj Fm IKn TotTftJPhr KjP~JPVr P mqJT FTKa xMKjKh KjP~JV kK~J IjMpJ~L pJVqfJxj S oiJmLPhr KjP~JV
mqJT kYKuf mqJKT mqmJr kKrmPft TsLnNf mqJKT mqmJ xVy Fm xJkPjr CPhqJV KjP~PZ pJ FTKa \Kau Fm KhP~ gJPT F P IKiT xUqT YJTrL kfqJvLPhr oPiq yPf TPbJr S kK~Jr oJiqPo xmPYP~ pJVqfJxj
hLWtPo~JhL kT Fm kTKar \jq KTZ kKrPmvVf Fm TJbJPoJVf TJptPor kP~J\j TsLnNf mqJKT mqmJ kmftPjr kJgtLPhr mJZJA TrJ y~
uPq kP~J\jL~ kKrPmv xOKr \jq oNUq TJpto yP cJaJ xJr Fm Kc\JJr KrTnJrL xJAa Jkj TrJ, pJ pgJxm 31v KcPxr 2008 fJKrPU mqJPTr oJa \jmPur xUqJ 1,231 \j, fjPit 105 \j KjmtJyL, 975 \j TotTftJ Fm
hsf mJmJ~j TrJ yPm 151 \j IjqJjq TotYJrL rP~PZ 2008 xJPu mqJT 212 \j TotTftJ/TotYJrL KjP~JV hJj TPrPZ, pJr oPiq mqJKT
IKnfJxj 46 \j Fm xhq kJv TrJ 166 \j FZJzJ mqJT 2008 xJPu 171 \j TotTftJPT kPhJjKf khJj TPrPZ
KjrKmKZj mqmxJ kKrTjJ mJmJ~Pjr JPgt mqJT APfJoPPiq KaoM Fm Cjffr jaS~JtT pJVJPpJV mqmJ kmftPjr FZJzJ mqJT C KvJr kxJPrr \jq 149 \j C KvJPrr ZJ/ZJLPT mqJPT AJjtKvk TrJr xMPpJV KhP~PZ @oJPhr
kT yJPf KjP~PZ YuoJj mZPrA kTKa xNjt mJmJ~Pjr fkKxu frL TrJ yP~PZ xJCgA mqJT xO\jvLu TPotr \jmPur mKvq yP fJrJ x, KjrPk, KjntLT, h S ILTJrJm mqJT xmxo~ C yJPr mfjnJfJ khJPjr oJiqPo
mqmyJr xL~ oJKuTJjJ @APjr KmwP~ xNjtnJPm ImVf mqJT TfOtk m@AjL xl&aS~Jr mqmyJr jJ TrJr mqJkJPr pJVqfJxj oJjmxh iPr rJUJr YJ TPr gJPT Fm kPfqPTr Kj\ Kj\ TotPP CjKf KmiJPjr xMPpJV KhP~ gJPT
kKfvKfm mJuJPhv mqJPTr @PhvPo 2009 xj yPf mJuJPhv ~K~ KT~JKr yJCP\ Iv VyPjr uPq xJCgA @PuJYq mZPr mqJT TotLPhr CxJy khJPjr \jq @TtwjL~ mJjJx khJj TPrPZ FZJzJ mqJT fJr TotLPhr \jq Cjf
mqJT Fo.@A.Kx.@r (YRT vK xj TJKuPukj Ir xjJTre) kpMK kmftPjr kT Vyj TPrPZ kKuKx Vyj TPrPZ Fm fJPhr \jq jojL~, CxJymitT, JqkNet Fm kreJhJ~L TotkKrPmv KjKf TPrPZ mqJT
mqJKT TJptPo fgq kpMK: TsLnNf mqJKT mqmJ kmftj VqJYAKa, nKmw fyKmu Fm IPnJVTf ZKa jVhJ~Pjr of TotxNYL VyPjr oJiqPo TotLPhr xJoJK\T KjrJkJ KjKf

TPrPZ FxTu xyJ~T kKrPmv TotLPhrPT @fKmvJx muL~Jj TPr, kKfJPjr kKf fJPhr FTJfPmJi \JVf TPr S
mqJT Tftk @iMKjT mqJKT ImTJbJPoJ Cj~Pj kKfvKfm pJ @iMKjT mqJKT Fr FTKa IKmPhq Iv KmnJK\f TotLPhr Totu fqJPVr kmjfJ ysJPxr P ImhJj rJPU
mqJKT mqmJPT TsLnNf mqJKT mqmJ~ kJKrf TrJr kK~J KyPxPm mqJKT fgq kpMKr ImTJbJPoJVf Cj~Pjr
CPhqJV KjP~PZ mqJT mqmxJK~T kmOK, VJyT xmJr oJj Cj~j, jfj jfj Kmfre mqmJr kmftj, fgq kmJyPT IKiTfr 28. InqrLe Kj~e S kKrkJuj KmnJV
vKvJuLTre Fm jjKj fgq kpMK Kjntr mqmxJK~T TJptoPT KjrJkJ\Kjf CTwt xJijA fgq kpMK ImTJbJPoJ
mqJPTr InqrLj Kj~j S kKrkJuj ^MKT mqmJkjJ kKf vKvJuLTrPe pgJpg ImhJj rJUJr uPq mqJPTr InqrLe
Cj~Pjr oNu uq
Kj~e S kKrkJuj KmnJV fJPhr QhjKj TJpto xJhj TPr pJP InqrLe Kj~e S kKrkJuj KmnJPVr kiJj
TsLnNf mqJKT mqmJ kmftPjr CPhqJV FTKa Ifq \Kau TotTJ Fm FTKa mz YqJPu kTKar xlu mJmJ~Pjr TJptJmuL, IgtJ KmKiVf kKrkJuj, fhJrTL S kptPmj Fm KjrLJ S kKrhvtj pgJPo fJPhr TokJP~ ACKja, oKjaKr
\jq mqJT xmtJfT kPYJ YJuJP, TJre TsLnNf mqJKT mqmJ kTKar xlufJr Ckr Kjntr TrPZ xJogtq S hfJ ACKja Fm IKca S APjvPkTvj ACKja JrJ kKrYJKuf yP xJCgA mqJPTr InqrLj Kj~e kKfPf mqmf
mOK fkNet yJKf~JrKu KjPo CPuU TrJ yPuJ
1) KckJatPoJu TPsJu lJvjx& YTKu (KcKxFlKxFu),
mqJPTr SP~m xJAa
2) uJj cTPoPvj YTKu,
VJyT YJKyhJ Fm xJmtKjT xmJr oJj Cj~jTP Tftk mqJPTr SP~mxJAaPT VJyT xmJ Fm @KgtT keq xJ 3) TJ~JaJrKu IkJPrvj KrPkJat, AfqJKh
fgqxoNy JrJ IKiTfr fgqKnKT TrJr uPq kMjtVbPjr TJ\ yJPf KjP~PZ kK~JiLj CPqJVxoNy yP

"VJyT kKfCr lro" xpMK pJPf VJyPTr jJo, A-PoAu KbTJjJ, mqJPTr VJyT xmJ IgmJ mqJKT keq xJ
2008 xJPu mqJPTr InqrLe Kj~e S kKrkJuj KmnJV Fm mJuJPhv mqJT Fr kKrhvtT hu TftOT mqJPTr KmKnj vJUJ
1 S KmnJV kKrhvtjkNmtT fJPhr kKfPmhj hJKUu TPrPZ C kKfPmhPj CJKkf krJovtxoNy/@kKxoNy Fr KmwP~
Kmw~Vf kJmjJ, ofJof, IjMxJj IgmJ IKnPpJPVr xMKmiJ gJTPm FTT VJyT xTt KbTJjJ kmftPjr oJiqPo kP~J\jL~ kKfTJroNuT/Kj~KofTrPer khPk Vye TrJ yP~PZ kKfPmhPj CJKkf CPuUPpJVq @kKxoNPyr
VJyTPhr kKfCr Vyj TrJ JPkP Ifq hfJ Fm xVKbf @TJPr mqJPTr VJyT PxmJ KmnJVPT IKiTfr xJrxPk kKrYJujJ kwtPhr KjrLJ TKoKar xnJ~ CkJKkf S @PuJKYf yP~PZ mqJPTr Jgt xrPe C TKoKar
vKvJuL TrJA Fr oMu CPvq KxJ oJfJPmT pgJpg mqmJS Vsyj TrJ yP~PZ
2 xy\fr IjMxJj kK~Jr mqmJTre pJr oJiqPo mqJPTr VJyTVj fJPhr TJKf fgq fJKjTnJPm kPf
kJrPmj 29. mJP\a Fm mJP\a Kj~j
3 mqJKT keq Fm VJyT xmJ xKTtf mu K\JKxf kv-Cr kJfJr xPpJ\j, pJPf keq S xmJxoNPyr QmKvq, mqJT TftOk CtoNUL kKrTjJ IjMxre (bottom up planning approach) TPr KmKnj vJUJxoNy gPT mJP\Par
kTJr Fm KmKi-KmiJj xMnJPm COf gJTPm UJfxoNPyr (poj @oJjf, IKVo, uJn, mqmxJ AfqJKh) kJgKoT kJmjJ @Jj TPr ksiJj TJptJuP~r mqmJkjJ TftOk
kKrYJujJ kwtPhr kKfPmhj 33. \JfL~ TJwJVJPr @~Tr KyxJPm \oJ
mqJT @PuJYq mZPr \JfL~ TJwJVJPr @~Tr KyxJPm \oJ KhP~PZ 1,247.75 KoKu~j aJTJ pJ 2007 xJPu KZu 1,185.64
vJUJxoNPyr CkJxoNy xoj~ TPr mJxKrT mJP\Par UxzJ QfrL TPr "mqmxJK~T jLKf S mqmJkT xPuPj" @PuJYjJr KoKu~j aJTJ mqJPTr KmVf kJY mxPrr \JfL~ TJwJVJPr @~Tr KyxJPm \oJr kKroJj Kjok :
oJiqPo mJP\a frL xj TPr mqJPTr kKrYJujJ kwtPhr IjMPoJhPjr kr mJP\a mJmJ~Pjr \jq vJUJxoNPy kre TrJ
y~ mqJT mqmJkjJ TftOk xJrJ mZr mJP\Par KmkrLPf KmKnj uqoJJ I\tjxoNy KmvhnJPm kptJPuJYjJ TPr pJPf TPr mZr KoKu~j aJTJ~
mJP\Par uqxoNy IK\tf y~ 2008 1,247.75
2007 1,185.64
30. @~ S mqP~r UJfS~JrL KmPvwj
2006 883.00
mqJPTr @~ S mqP~r Ckr FTKa xK KmPvwe KjPo h~J yPuJ :
2005 543.27
xMh gPT @~ 2004 247.51
2008 xJPu xJCgA mqJPTr xMh gPf @P~r kKroJj KZu 7,530.74 KoKu~j aJTJ, pJ 2007 xJPu KZu 6,408.96
KoKu~j aJTJ, kmOKr yJr 17.50% F kmOKr jkPgq rP~PZ mqJT gPT h~J Ej S IKVo 34. KmVf kJY mZPrr TJpto kxNf @~
2008 xJPu TJpto kxNf @~ KZu 4,039.43 KoKu~j aJTJ pJr oPiq KZu jLa xMh @~, KmKjP~JV yAPf @~, TKovj,
xMh khJPjr \jq mq~
@PuJYq mZPr xMPhr \jq mq~ KZu 6,210.70 KoKu~j aJTJ pJ 2007 xJPu KZu 4,852.50 KoKu~j aJTJ, kmOKr yJr FPY S hJuJuL Fm IjqJjq @~ 2007 xJPu @~ KZu 3,817.97 KoKu~j aJTJ pJ vfTrJ 5.80 nJV mPzPZ
28.00% mqJPTr KmVf kJY mxPrr TJpto kxNf @~ Kjok:

jLa xMh @~ mZr KoKu~j aJTJ~

mqJPTr jLa xMh @~ 2008 xJPu hJzJ~ 1,320.04 KoKu~j aJTJ pJ Vf mZr KZu 1,556.46 KoKu~j aJTJ 2008 4,039.43
2007 3,817.97
KmKjP~JV yPf @~
2006 2,721.48
Vf 2008 xJPu xJCgA mqJTr KmKjP~JV gPT @P~r kKroJj KZu 1,279.96 KoKu~j aJTJ pJ 2007 xJPu KZu 956.80 2005 2,046.90
KoKu~j aJTJ F UJPf kKfPmhjTJuLj mZPr @~ 33.77% IgtJ 323.16 KoKu~j aJTJ mOK kJ~ KmKjP~JV gPT @P~r
2004 1,293.54
CkJhJj KZu as\JrL Kmu S mPr Ckr xMh Fm v~JPrr unqJv

35. KmVf kJY mxPrr oJa IKVPor kKroJe

IjqJjq @~
@PuJYq 2008 xPj, TKovj, KmKjo~ Fm hJuJKu PgPT @~ yP~PZ 1,264.28 KoKu~j aJTJ, pJ Vf 2007 xJPu KZu mqJPTr IKVPor kKroJj Vf mZPrr 48,164.60 KoKu~j aJTJ gPT vfTrJ 25 nJV yJPr PmPz @PuJYq mZPr
1,161.33 KoKu~j aJTJ, kmOKr yJr 8.86% oMuf: mKitf mqmxJ Fm Kl-KnKT TotTJ gPT F @~ FPxPZ 60,281.26 KoKu~j aJTJ~ CkjLf y~ mqJPTr KmVf kJY mxPrr oJa IKVPor kKroJj Kjok:

kKrYJuj mq~ mZr KoKu~j aJTJ~ kmOKr yJr

2007 xJPu oJa kKrYJuj mq~ KZu 901.77 KoKu~j aJTJ pJ vfTrJ 13.87 nJV mPz 2008 xJPu yP~PZ 1,026.85 2008 60,281.26 25%
KoKu~j aJTJ 2007 48,164.60 17%
2006 41,147.28 26%
31. xPhr kJatlKuS
2005 32,551.09 48%
31v KcPxr, 2008 A fJKrPU mqJPTr oJa xPhr kKroJj KZu 81,181.53 KoKu~j aJTJ mqJPTr oJa xPhr
2004 22,001.70 42%
Kovsj KZu Kjok:
KoKu~j aJTJ~
jVh S jVPh xofuq 4,650.57 36. TJpto ksxNf oMjJlJ uJPn KmVf kJY mZPr kmOK
KmKjP~JV 12,299.61 F mZr mqJT 3,012.58 KoKu~j aJTJ TJpto kxNf oMjJlJ I\tj TPr 2007 xPj mqJPTr TJpto kxNf oMjJlJ KZu
Ej S IKVo 60,281.26 2,916.20 KoKu~j aJTJ mqJPTr KmVf kJY mxPrr TJpto kxNf oMjJlJr kKroJj Kjok:
J~L xh 2,685.56
IjqJjq xh 1,264.53
oJa xh 81,181.53 mZr KoKu~j aJTJ~ kmOKr yJr
2008 3,012.58 3.30%
32. @A.F.Fx Fm @A.Fl.@r.Fx. Fr TJptTJKrfJ kxPV 2007 2,916.20 41.38%
AJrjqJvjJu FTJCK JJct Fm AJrjqJvjJu lJAjqJjKv~Ju KrPkJKta KxPo, AKaKaCa Im YJatJc FTJCPax& Im 2006 2,062.66 39.99%
mJuJPhv (@AKxFKm), mJuJPhv mqJT Fm Fx.A.Kx TftOT VOyLf yP~PZ @orJ @oJPhr @KgtT KmmreL kMf TrJr 2005 1,473.44 82.21%
P CkPrJ jLKfoJuJ S kKf kKrkJuj TPrKZ 2004 808.66 21.57%
kKrYJujJ kwtPhr kKfPmhj oJiqPo jfj VsJyT CkPpJVL xh S @oJjPfr keq CJmPj kPYJ YJuJ~ mqmxJK~T hNrhOK Fm VJyTPhr Kjfqjfj
mqmxJK~T YJKyhJ kNrPer \jq @orJ mqmxJ~L xoJP\ mqJkT kvxJ I\tj TPrKZ @iMKjT VSAT kpMK mqmyJr TPr KrP~u
aJAo Ij-uJAj FKj msJ mqJKT Fr oJiqPo KmvoJPjr xmJ VJyTPhr JrkJP kRPZ KhK
37. KmVf kJY mZPr ATMqAKar Ckr @~ yJr
FTTgJ~ VJyTVe mqJPTr IVsJKiTJr Fm TJJKj hvtj yP VJyTPhr x TrJ pJrJ mqJPTr nJmoNKft Cj~Pjr PP
mqJPTr ATqAKar Ckr @~ @PuJYq mZr y~ 12.06 vfJv pJ Vf mZr KZu 19.90 vfJv mqJPTr KmVf kJY mZPr
kKfKjKi KyPxPm TJ\ TPr @AKkS-Fr IgtVyj, KmPur Igt xVy, Bh knOKf KmPvw CkuP VJyTPhr xmJr YJKyhJ
ATqAKar Ckr @P~r yJr Kjok :
KmPmYjJ TPr KmPvw TJCJr UJuJr mqmJ TrJ y~ @oJPhr keqxoNy VJyTPhr TJPZ xy\unq TrJ S VJyTPhr
mZr KraJtj Ij ATqAKa (%) hJrPVJzJ~ xPmJtTO xmJ kRPZ Ph~Jr KjKoP @orJ kKvKf S VJyTPhr kKf pfvLu kvJ\LKmPhr mqJPT KjP~JK\f
2008 12.06% TPrKZ IVJKiTJPrr KnKPf VJyTPhr xmtJfT xyPpJKVfJ khJj S CYMoJPjr xmJ khJPjr uPq IKnPpJV xu Vbj TrJ
2007 19.90% yP~PZ @orJ xmxo~ @oJPhr ILTJr kNre TKr, VJyTPhr TgJ pPf Kj Fm xo @kKr mqJkJPr hsf khPk
2006 17.98% jA @orJ xmoo~ VJyTPhr xJyJpq TKr, pKhS FPf TJj fKz oMjJlJ y~jJ @orJ @oJPhr ToLtPhr xmthJ Kmj~L S
2005 17.64% JjL yS~Jr \jq kKve hA KTZaJ IKfKr xmJ khJPjr oJiqPo @orJ VJyPTr kP~J\j KoaJPf f hA VJyTPhr
2004 17.87% xJPg kKfKa xJJ fJPhrPT xK I\tPj Fm @oJPhr mqmxJ xP fJPhr AKfmJYT iJrjJ frLPf xJyJpq TPr @orJ
xmxo~ F xo CPuUPpJVq TJptPuJ xjJ TrPf pgJpg f @PrJk TKr pJr oJiqPo xmJ @rS Cjf TrJ pJ~
38. @~TPrr \jq xJj
mqJT @PuJYq mZPr @~TPrr \jq xJj KyxJPm rPUPZ 1,267.59 KoKu~j aJTJ pJ 2007 xJPu KZu 1,374.07 KoKu~j 44. VPmweJ S Cj~j Fm kKve
aJTJ xJCgA mqJT fJr 46 Ka vJUJr xJyJPpq mqmxJ S oMjJlJ~ CPuUPpJVq kmOK I\tPjr oJiqPo Ifq xlufJr xKyf 14
mZr IKfo TPrPZ F kKrmftPjr xJPg UJk UJS~JPjJr \jq Fm KjP\r ImJPT xMxyf TrJxy mJzKf kmOK I\tPjr
39. Tr kNmtmftL oMjJlJ \jq FTKa oJjm xh Cj~j TRvu Vsyj TPrPZ pUJPj TotYJrLrJ kKfPpJVLfJoNuT kKrmftjvLu mqJKT mqmJ~
F mZr mqJT KmfreTf IPvsjLTf EPer Ckr xJjxy T-Ee Fm xPy\jT Ee, KKfk mKytnNf hlJxoMy, @~Tr, kvJhJKrf S mqmJkjJ hfJr xJPg TJ\ TPr pPf kJPr F\jq mqJT mqmxJK~T TJptPo hfJ mOKr uPq xoP~r
AfqJKhr Ckr kP~J\jL~ xJj xrPer kMPmt 3,012.58 KoKu~j aJTJ oMjJlJ I\tj TPr 2007 xPj mqJPTr Tr kKrmftPjr xJPg oJjm xPhr xMxo xoj~ TPr VPmwjJ, Cj~j S kKvPe KmKjP~JPV xmthJ IVsJKiTJr h~ mqJKT xmJ~
kNmtmftL oMjJlJ KZu 2,916.20 KoKu~j aJTJ Fm mqJPTr oMjJlJ~ kmOKr yJr 3.31% vfJv nJV m\J~ KZu CTwtfJ KjKfTP mqJPTr TJptPo S VJyT xmJ~ KmrJoyLj CjKf xJij TPr YPuPZ Fm x IjMxJPr Fr ToLtmOPT
VPz fMuPZ hfJ S kvJhJrLPfr xojP~ oJj xf oJjm xh fKrA mqJPTr oNu uq oJjm xh Cj~Pjr
40. Tr krmftL oMjJlJ
TRvuVf, oJjmL~ Fm fVf hfJ mOKr uq mJmJ~Pjr \jq 1 j KhuTvJ mJKjK\qT FuJTJ nmPjr 5o fuJ~ Kj\
F mZr mqJT KmfreTf IPvsjLTf EPer Ckr xJjxy TEj Fm xPy\jT Ee, KKfk mKyntNf hlJxoMy, @~Tr, kKve Ts Jkj TrJ yP~PZ asKj AjKKaCa ToLtPhr JjKnKT oM KYJr @hJj khJj S JPjr yJu jJVJh Trjxy
AfqJKhr Ckr kP~J\jL~ xJj xrPer kr 887.24 KoKu~j aJTJ oMjJlJ I\tj TPr 2007 xPj mqJPTr Tr S mqJKT \VPfr \Kau TJptPor KmwP~ xKbT KhT KjPhtvjJ h~
IjqJjq xJj krmftL oMjJlJ KZu 1,222.97 KoKu~j aJTJ

2008 xJPu xJCgA mqJT asKj AjKKaCa TftT @P~JK\f xmtPoJa 41Ka kKve TJxt, xKojJr S TotvJuJ IjMKf
41. TJpto ksxMf luJlu y~ FPf kKvekJ TotLr xUqJ KZu 1,513 \j - Fr KmkrLPf 2007 xJPu TotvJuJr xUqJ KZu 31Ka Fm kKvekJ
TotLr xUqJ KZu 1,066 \j TotvJuJPuJ InqrLe Fm mJAPrr kKvT JrJ kKrYJKuf yP~PZ 2008 xJPu mqJPTr
F mZr mqJT KmfreTf IPvsjLTf EPer Ckr xJjxy T-Ee Fm xPy\jT Ee, KKfk mKyntNf hlJxoMy, @~Tr.
InqPr IjMKf kKvPer Kmmre KjPo h~J yPuJ :
AfqJKhr Ckr kP~J\jL~ xJj xrPer kMPmt 3,012.58 KoKu~j aJTJ kKrYJuj kxNf oMjJlJ @~ TPr 2007 xPj
mqJPTr kKrYJuj kxNf oMjJlJr kKroJj KZu 2,916.20 KoKu~j aJTJ Fm mqJPTr oMjJlJr kmOKr yJr 3.31% nJV m\J~ InqrLe kKve TJxt/xKojJr/ TotvJuJ TJPxtr xUqJ kKvjJgLtr xUqJ
KZu mqJT KmVf mZPrr fujJ~ @oJjf, IKVo, @ohJjL, rJjL, VqJrJK Fm QmPhKvT rKoaqJ F pgJPo 24%, 1 mMKj~JKh kKve TJxt 2 101
25%, 51%, 47%, 67% Fm 38% kmOK I\tj TPr 2 Ee ^KT mqmJkjJ 1 38
3 Kca Kr VKc 1 35
42. xrKf fyKmu
4 xh hJ~ mqmJkjJ 1 24
mqJT TJJjL FqJ 1991 Fr 24 iJrJ IjMpJ~L KmKnj xJj rJUJr kPr Fm @~Tr khJj S unqJv WJwjJr kNPmt 5 QmPhKvT oMhsJ KmKjo~ ^KT 3 109
oMjJlJr 20% IgJt 430.96 KoKu~j aJTJ xrKf fyKmPu JjJr TrJ yP~PZ CPuUq, 31v KcPxr, 2008 fJKrPU 6 @nqrLe Kj~e S kKrkJuj 1 38
oJa xrKf fyKmPur kKroJj hJKzP~PZ 1,975.25 KoKu~j aJTJ~
7 oJKj uJKr kKfPrJi 9 355
8 fgq S kpMKVf ^KT mqmJkjJ 2 148
43. VJyT xmJ
9 jfMj oNuij TJbJPoJ (mqJPxu-2) 1 32
VJyTVjA @oJPhr xJlPuqr YJKmTJKb Fm fJrJA @oJPhr kgo IVsJKiTJr VJyTPhr xm xoxqJr kKrkNet xoJiJjA yPuJ 10 Kca TJct IkJPrvj 1 38
TJJKjr uq @orJ keq KmK TKr jJ mr keq Kmkjj TKr pJPf mqJKT mqmxJr P VJyTVPer xK Fm oMjJlJ
11 Kx@AKm S FPf Ee fgq kKrPmvj kKf 1 43
xPmtJ y~ @oJPhr oNu TRvu yP VJyThr xJPg hLWtKhPjr xTt VPz fJuJ pJr oJiqPo KmrJoyLj xoOK Fm
12 jVh mqmJkjJ~ xPYfjfJ 1 40
TJJKjr nJmoNKft mJzJPjJ pJ~@orJ VJyT Fm mqJT CnP~r \Pjq xMKmiJ\jT kKrPmv xOKPf KmvJxL CkKrC Kmkjj
13 FxKmFx 1,2,3 1 39
TRvu oJgJ~ rPU mqJT KmKnj mqmxJK~T Fm VJyT xmJr CkJ~ mr TPrPZ pJPf VJyTPhr fKr oJJ mOK kJ~ Fm
@oJPhr keq/PxmJ VJyThr @TJJ kNrPe xo y~ mqJT mqmxJK~T PxmJ khJPjr ofJ KmKnj Pr mPjr oJiqPo 14 xMAla& IkJPrvj 1 31
hsMf KxJ Vyj KjKf TPr 15 kiJj TJptJu~ \jJPru FTJC xoj~ 1 35
16 mqJT xJ IjqJjq TotvJuJ 14 407
KmKnj rTo kPeqr oJiqPo h yJPf VJyTPhr TJKf xmJ khJj TrJr \jq @orJ xh S hJ~ mJ\Jr\Jf TrPer P
KrPuvjKvk mqJKT YJuM TPrKZ mqJKT mqmxJ~ kKrmftjvLu VJyT xmJ kNrPer \jq mqJT ksKfKj~f mJ\Jr VPmweJr xmtPoJa InqrLe kKve S IvVyjTJrL 41 1513
kKrYJujJ kwtPhr kKfPmhj 47. oJPYt mqJKT TJpto
oJPYt mqJKT Fr xJoKVT TJpto mOKr lPu hPvr oNuij mJ\Jr Cj~Pj pPg nNKoTJ kJuj TrJr kJvJkJKv mqJPTr
InqrLe kKve ZJzJS mqT 2008 xJPu 163 \j TotTfJtPT hv S KmPhPv KmKnj kKve TJPxt kre TPr 2008 @~ mOKPf xJyJpq TPr oJPYt mqJKT S kJatPlJKuS mqmJkjJ kKmiJj 1996 Fr IiLPj KxKTCKrKa\ F FPY
xJPu mqJPTr mJAPr IjMKf kKvPer Kmmre KjPo h~J yPuJ : TKovPjr KjTa PgPT oJPYt mqJKT TJpto kKrYJujJ TrJr kP~J\jL~ IjMPoJhj AKfoPiq IJorJ kP~KZ F KmnJV kMetJ
oJPYt mqJKT TJpto kKrYJujJr \jq kf KjoKuKUf TJptoxoNy oJPYt mqJKT Fr ItnM:

kKve TJxt/xKojJr/TotvJuJ TJPxtr xUqJ kKveJgLtr xUqJ
v~Jr AxqM mqmJkjJ
1 Km@AKmFo TftOT @P~JK\f KmKnj mqJKT 17 31 ImPuUj
xKTtf ksKve / TotvJuJ (poj Ee, QmPhKvT kJatPlJKuS mqmJkjJ
mJKe\q, \jJPru mqJKT AfqJKh)
oJPYt mqJKT xmJ ZJzJS VJyTPhr YJKyhJr KnKSPf @orJ KjoKuKUf PxmJxoNy khJj TPr gJKT
AxqM mqJTJr
2 Km@AKmFo TftOT @P~JK\f mMKj~JKh kKve TJxt 2 51
3 Km@AKmFo mqfLf hPvr IjqJjq PasKj 50 62 @A.Kk.S. Fr kiJj mqJTJr
AjKKaCa (poj mJuJPhv mqJT asKj fJKuTJnM TJJjLPf KmKjP~JV
FTJPcKo, BAFEDA /SEC AfqJKh) @A.Kk.S. Fr PkxPo Pv~JPr KmKjP~JV

4 KmPhPv kKve TJxt / xKojJr / TotvJuJ 13 19

48. AxuJoL mqJKT TJpto
xmtPoJa mJAPrr kKve S IvVyjTJrL 82 163
xJCgA mqJT KuKoPac xTu mqJKT xmJ khJPjr FTKa Ijjq kKfJj F mqJT gPT xjJfjL S AxuJoL F Cn~Kmh
45. mqJPxu-2 Fr kMKf mqJKT xmJ TJpto kKrYJKuf y~ 2003 xPj 03 (Kfj) Ka AxuJKoT mqJKT vJUJ UJuJr oJiqPo AxuJoL mqJKT
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Report on Corporate Governance objections. It actively reviews appropriateness of the accounting policies, internal annual audit plan, audit
reports, risk management of the Bank and Banks technological needs. It also oversees the discharge of
responsibilities of the external auditors.
Southeast Bank is responsibly managed and supervised in fulfillment of the objective of adding value to the The Audit Committee consists of 3 (three) members of the Board as per BRPD Circular No. 12 dated
shareholders wealth and contributing to the national economy. Our Corporate Governance principles December 23, 2002 of Bangladesh Bank. Mr. Azim Uddin Ahmed is the Chairman of the Audit Committee.
serve the goal of strengthening and consolidating company position with sustained growth objectives in The Audit Committee held 04 (four) meetings in 2008. The minutes of meetings of the Audit Committee
materializing the trust placed in the company by the shareholders, clients, employees and the general were submitted before the Board of Directors and the Board reviewed them.
public. Fair practice, accountability and transparency are the pillars of our corporate governance. A
comprehensive framework of policies across all the areas of the Banks functions are set in place. The iii) Loan to Director
control mechanism is working well in the Bank. The principles of corporate governance in practice have No loan was allowed to any Director of the Bank during the year 2008.
been strengthened and are now embedded in the Banks over-all activities. The Banks corporate
governance structure comprises the following: B) Bank Management
The Bank is manned and managed by a team of efficient professionals. The functions of the Board and the
A) The Board Management are clearly defined and sharply bifurcated. The Management implements and acts within the
Including Depositor/Independent Directors policies and manuals approved by the Board. A clearly defined organizational structure with definite lines
B) Bank Management of responsibility and delegation of powers to different echelon of the management are in place in the Bank.
C) Independent External Auditors The Management enjoys full freedom in conducting the business of the Bank within the scope of the policy-
D) Regulatory Authorities and guidelines of the Board and the regulatory bodies. However, the Board and the Management work in
unison for the continued well-being of the Bank. To streamline the functions of different divisions /
E) The Shareholders. departments of the Bank, the following Committees are actively working in the Bank:
A. Board of Directors i) Management Committee (MANCOM)
Composition To address general issues of importance, evaluate different types of risks, monitor internal control structure
and to review effectiveness of the internal control system, a Management Committee (MANCOM) is
The Board of Directors is the body responsible for corporate governance, devising policies, determining working in the Bank. It is composed of senior members of the Management. The Managing Director acts
objectives for stewardship of Banks resources. The Board of Directors consists of 13 (thirteen) Directors as the Chairman of MANCOM. The meetings of the MANCOM are held in regular successions to review
including the Managing Director. The Chairman, in his absence, the Vice Chairman, presides over relevant issues timely.
meetings of the Board of Directors, Annual General Meetings and the Extra-Ordinary General Meetings.
ii) Asset Liability Management Committee (ALCO)
Depositor/Independent Directors Asset Liability Management Committee consists of the Managing Director, the Deputy Managing Director
To comply with the requirement of Securities and Exchange Commission (SEC) Notification dated 20th and strategically important Divisional Heads of Head Office. The Managing Director and in his absence
February, 2006, the Board appointed Dr. Zaidi Sattar, a renowned economist of the country as an the Deputy Managing Director chairs the meeting of the Asset Liability Management Committee. The
Independent Director of the Bank in the 12th Annual General Meeting held on April 28, 2008. Committee is responsible for managing balance sheet gap, interest rate risk and liquidity risk of the Bank.
The meetings of the Asset Liability Management Committee are held every month.
Southeast Bank has also appointed Director from the Depositors of the Bank in compliance of BRPD
Circular Letter No.12 dated 18th August, 2008 of Bangladesh Bank. The appointment of the Depositor iii) Credit Committee

Director took effect from 8th October, 2008. A Credit Committee headed by the Deputy Managing Director I [Managing Director (Current Charge)] of
the Bank has been constituted at Head Office of the Bank for minute appraisal and quick disposal of credit
Functions proposals. The Chief of Credit Division of Head Office plays an important role in the meetings of the Credit
The functional areas of the Board include, but not limited to, approving suitable business policy, fixation Committee. Credit proposals that do not merit considerations are declined. Credit proposals that merit
of operational budgets, approval of financial statements, review of Banks operational performance towards considerations in the opinion of the Credit Committee are presented before the Managing Director of the
achievement of objectives and approval of policies and operational manuals to establish effective risk Bank for approval. The credit proposals that are beyond the delegated business power of the Managing
management in core banking areas. Director are placed before the Executive Committee / Board of Directors for consideration / approval.
The functions of the Board also include reviewing companys corporate governance standard for further
improvement, determining Banks corporate social responsibility status and taking steps for its C) Independent External Auditors
improvement, developing compliance culture in the Bank, approving proposals as are beyond the M/S Huda Vasi Chowdhury and Co., the Number-1 Audit Firm as per Bangladesh Banks list of the qualified
delegated business / financial / administrative powers of the Management, appointment of the Chief Chartered Accountants have been re-appointed as the External Auditors of the Bank in the 13th Annual
Executive Officer and fixation of his benefits, etc. The Board held 40 (forty) meetings in 2008. General Meeting held on April 28, 2008 for the second term.
Rotation and Retirement of Directors
D) Regulatory Authorities
The Directors of the Bank excluding the Managing Director retire in rotation in accordance with the
provisions of law. In this respect, the provisions contained in the relevant laws and the Articles of The role of regulatory authorities is very important in respect of corporate governance practices of
Association of the Bank are complied with in letter and spirit. Southeast Bank Limited. We are pledge-bound to comply with all the requirements of regulatory
authorities. We highly value their continuous support and prized guidance which are material for
The Board has constituted the following 02 (two) Committees: improvement of corporate governance of the Bank.
i) Executive Committee
E) The Shareholders
The Board has set up the Executive Committee as a body to deliberate on generally important management
issues and matters in the execution of operations of the Bank. The Committee performs within the power The shareholders of the Bank voice their views in the Annual General Meetings. The constructive
delegated to it by the Board of Directors. The Committee is composed of 7 (seven) members including the suggestions of the shareholders are implemented in the interest of the Bank. Our Share Division is
Managing Director. The Chairman of the Board is the Chairman of the Executive Committee. 13 (thirteen) shareholders relationship department. Shareholders have right to information which we provide them
meetings of the Executive Committee were held in 2008. timely. Any material change in the Bank concerning shareholder interest or any price sensitive information
is quickly dispensed with for information of the shareholders and potential investors.
ii) Audit Committee
The Audit Committee is primarily responsible for internal control, audit and financial reporting. It monitors A report on corporate governance of the Bank as per directives of the SEC dated February 20, 2006 is
implementation of policies on internal control and compliances and management actions to rectify audit appended hereto.
Compliance report as per Securities & Exchange Commissions Notification dated 20th February, 2006 3.3.1(ii)(c) Reporting of violation of any laws
for all companies listed with any Stock Exchange in Bangladesh in order to improve Corporate to the Board Not Applicable The Audit Committee had no
Governance in the interest of Capital Market on Comply or Explain basis. findings on violation of law
during the year to report to
Condition Title Compliance status Explanation for non- Board.
No. (Put in the compliance with 3.3.1(ii)(d) Reporting of any other matter
appropriate column) the condition/ to the Board Not Applicable The Audit Committee had no
Complied Not Remark such findings for report
to the Board of Directors.
1.1 Boards size.
3.3.2 Reporting to the concerned
Authorities. Not Applicable The Audit Committee had no
findings for report to the
1.2(i) Independent Director. Securities and Exchange
1.2(ii) Appointment of Independent Director. Commission.
1.3 Chairman of the Board and Chief 3.4 Reporting to the Shareholders and
Executive Officer (CEO) general investors

1.4 Boards Report. 4.0 External/Statutory Auditors

1.4(a) Fairness of Financial Statements 4.0(i) Non-engagement in appraisal or

1.4(b) Maintenance of proper books of accounts.
1.4(c) Appropriate accounting policies.
4.0(ii) Non-engagement in designing of
1.4(d) Compliance with International
Accounting Standards Financial Information System
1.4(e) Soundness of Internal Control System 4.0(iii) Non-engagement in Book keeping
1.4(f) Banks abilities to continue as a 4.0(iv) Non-engagement in Broker - dealer Not
going concern. service applicable
1.4(g) Changes in operating results. 4.0(v) Non-engagement in actuarial services Not
1.4(h) Three years financial data Applicable
1.4(i) Declaration of Dividend 4.0(vi) Non-engagement in internal audit
1.4(j) Details of Board meeting 4.0(vii) Non-engagement in any other services
1.4(k) Shareholding pattern

2.1 Appointment of
Company Secretary Attendance of Directors in the meetings
Head of Internal Audit.
2.2 Attendance of Attends as and when required A) Meeting of the Board of Directors
Company Secretary
in Board Meetings Name of the Directors Total no. of meetings Total Remarks
from 1.1.2008 to attendance
3.0 Audit Committee
Alamgir Kabir, FCA 40 39 The Directors who
3.1(i) Constitution of Audit Committee Ragib Ali 40 - could not attend any
3.1(ii) Inclusion of independent Director M. A. Kashem 40 22 meeting were granted
on the Audit Committee
Azim Uddin Ahmed 40 26 leave of absence
3.1(iii) Filling of casual vacancy in the
Audit Committee No such situation Jusna Ara Kashem 40 23
3.2(i) Chairman of the Committee Duluma Ahmed 40 26
3.2(ii) Qualification of the Chairman of the Tahnoun A. Harun
Audit Committee representing Bangla Capital Limited 40 5
Syed Shahid Ali 40 19
3.3 Reporting of the Audit Committee. Sirat Monira 40 40
Abdul Hye
3.3.1(i) Reporting to the Board of Directors
representing Karnafuli Tea Co. Ltd 40 -
3.3.1(ii)(a) Reporting of conflict of interest
to the Board Dr. Zaidi Sattar 40 19
3.3.1(ii)(b) Reporting of any fraud or A.H.M. Moazzem Hossain 40 9
irregularity to the Board Neaz Ahmed (Ex-Managing director) 40 38
B) Meeting of the Executive Committee of the Board of Directors iii) Shares held by Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of
Internal Audit and their spouses and minor children.
Name of the Directors Total no. of meetings Total Remarks
from 1.1.2008 to attendance 1 a) M. A. Muhith
31.12.2008 Chief Executive Officer (Current Charge) Nil
b) Spouse / Minor Children of CEO (Current Charge) Nil
Alamgir Kabir, FCA 13 11 The Directors who
Ragib Ali 13 - could not attend any
M. A. Kashem 13 10 meeting were granted 2 a) Muhammad Shahjahan
Azim Uddin Azim 13 12 leave of absence. Company Secretary 135
Tahnoun A. Harun 13 -
b) Spouse / Minor Children of Company Secretary Nil
representing Bangla Capital Limited
Dr. Zaidi Sattar 13 9
Neaz Ahmed (Ex-Managing director) 13 13 3 a) Arun Chandra Paul
Chief Financial Officer Nil
C) Meeting of the Audit Committee of the Board of Directors
b) Spouse / Minor Children of Chief Financial Officer Nil

Name of the Directors Total no. of meetings Total Remarks

from 1.1.2008 to attendance 4 a) Haradhan Banik
31.12.2008 Head of Internal Audit Nil
b) Spouse / Minor Children of the Head of Internal Audit Nil
Azim Uddin Ahmed 4 4
M. A. Kashem 4 4
Dr. Zaidi Sattar 4 4

D) Pattern of Shareholdings: iv) Shares held by top five salaried Executives of the Bank.

i) Shares held by Parent/Subsidiary/Associated Companies and other related Parties Sl. No. Designation Shareholdings as on 31.12.2008
1. M. Serajul Islam
Executive Director Nil

ii) Ownership of Companys Securities by the Members of Board of Directors. 2. Syed Imtiaz Hasib
Deputy Managing Director Nil
Sl. No. Name of the Directors No. of Shares Value in Tk. Percentage 3. Saleh Uddin Ahmed
1. Alamgir Kabir, FCA 3,07,970 3,07,97,000.00 1.08 Senior Executive Vice President Nil
2. Ragib Ali 8,03,048 8,03,04800.00 2.82 4. Mohammed Gofran
3. M. A. Kashem 6,62,422 6,62,42,200.00 2.32 Senior Executive Vice President Nil
4. Azim Uddin Ahmed 7,80,435 7,80,43,500.00 2.74 5. Giash Uddin Ahmed
5. Jusna Ara Kashem 4,49,502 4,49,50,200.00 1.58
Senior Executive Vice President Nil
6. Duluma Ahmed 5,85,001 5,85,00,100.00 2.05
7. Bangla Capital Limited 42,120 42,12,000.00 0.15
8. Syed Shahid Ali 1,18,955 1,18,95,500.00 0.42 v) List of Shareholders holdings 10% and above shares in the Paid-Up-Capital of the Bank.
9. Sirat Monira 16,847 16,84,700.00 0.06
10. Karnafuli Tea Co. Limited 5043 5,04,300.00 0.02
11. Dr. Zaidi Sattar
Independent Director NIL NIL NIL
12. A.H.M. Moazzem Hossain
Depositor Director NIL NIL NIL
13. M. A. Muhith
Managing Director (Current Charge) NIL NIL NIL
Total Shares : 37,71,343 37,71,34,300.00 13.24
Report on Risk Management minimal as almost all the transactions were carried out on behalf of the customers against underlying L/C
commitments and other remittance requirements. Also, proper risk limits were approved by the Board of

Banks are in the business of assessing, controlling and managing risks. In the process of providing financial Directors which was meticulously observed. Inspections by Internal Control and Compliance Division

services, Southeast Bank Ltd assumes various types of financial risks, e.g, Credit Risk, Market Risk, were regularly conducted. In general, the Banks policy is to match foreign currency assets and liabilities

Operational Risk, Counterparty Risk, Liquidity Risk, Legal Risk, etc. The management of Southeast Bank following strictly the overnight limit of Banks open position by the Central Bank.

Ltd relies on the following techniques to measure exposures, define procedures to manage these exposures, Treasury department independently conducts the transactions and the back office of the treasury is
fix up limit of individual position to acceptable levels and encourage decision makers to manage the risks responsible for verification of the deals and passing of their entries in the books of accounts. All foreign
in a manner that is consistent with the Banks goal and objectives: exchange transactions are re-valued and all Nostro Accounts are reconciled periodically.

i) Setting of standards and financial reporting,

03. Credit Risk Management
ii) Position limit and rules setting,
iii) Setting of investment guidelines and strategies, and Credit Risk is the risk of a borrower defaulting on an obligation, causing a loss of all or part of the
iv) Incentive contracts and compensation. replacement value of ongoing contracts. Credit risk also includes the possibility of the obligors credit
quality weakness causing a loss in value of obligations. Therefore it is essential to maintain a good quality
The activities of Southeast Bank Ltd involve analysis, evaluation and management of different degree of of credit for a bank to survive. Credit quality is measured by scoring, rating, modeling etc.
risks or combination of risks under the following framework which have been established in line with
Sound credit risk management is a systematic process and its key elements are
Bangladesh Bank guidelines:
i) Identification of risks
i) Asset-Liability Risk Management, ii) Analysis &
ii) Foreign Exchange Risk Management; iii) Response planning
iii) Credit Risk Management,
Once the risks are identified, that must be mitigated. Southeast Bank in 2004 had introduced the Credit
iv) Internal Control and Compliance Risk Management,
Risk Management (CRM) policy guide as per the suggestions/guidelines of core risk management taskforce
v) Money Laundering Risk Management, and
of Bangladesh Bank which is being reviewed annually. All the credit proposals are scruitinized with
vi) Information and Communication Technology (ICT) Risk Management.
application of the yardsticks, techniques & judgement in line with CRM policy guide. In 2006, the Bank

also introduced & implemented the Credit Risk Grading Manual (CRGM) in line with the CRGM guideline
01. Asset Liability Risk Management
of Bangladesh Bank. The quality of loans / credits are assessed / measured by the branches using this tool
The year 2008 was a very eventful year for the international financial market. Some of the top rated banks in both pre and post approval stages. In additon to that the Bank introduced the Consumer Finance Policy.
in the world have suffered huge losses due to sub-prime mortgage crisis in the U.S. In our country, there
The Banks credit division is well structured & subdivided into different units like, Trade Finance, Project
was an upward trend of deposit rates which has increased the balance sheet risk of the banks as they run
Finance, Syndicated & Structured Finance, SME Finance etc
negative gap by their nature of business.

To address all the risk elements of the balance sheet, monthly ALCO meeting were conducted regularly. The bank also prepared a watch list comprising the vulnerable clients and gives close & special attention

ALM desk of the Bank analyzes the balance sheet risks and prepares the monthly ALCO paper as per the so that the quality of the loans is not deteriorated.

Bangladesh Bank guidelines. The bank had established an independent Credit Administration Department (CAD) under CRM Policy of
By closely monitoring the maturity gap of assets and liabilities and interest rate movement, bank is able to the Bank in order to maintain the quality of the credit, through completion of documentation, monitoring
maintain optimum liquidity with full regulatory compliance. & follow-up, early signaling system etc. The CAD has a strong legal and recovery unit properly staffed with
professional experienced bankers and law officers to expedite the documentaion, legal and recovery
As a result, the bank registered a substantial growth in all the performance indicators. Management of the
bank also reviews the ALM Manual of the bank and its components as part of the regulatory requirement.
Monitoring and Recovery Unit of CAD is engaged in regular monitoring and managing of all Classified and
02. Foreign Exchange Risk Management Special Mention Accounts for maximization of recovery and ensuring appropriate loan loss provision.

Foreign exchange risk arises when the Bank is involved in foreign currency transactions. These transactions Despite political uncertainty and both domestic & global economic turmoil in 2008, the bank could

include foreign currency exchange, placements, investments, loans, borrowings, and different contractual maintain the percentage of classified portfolio at a tolerable level of 4.12% through substantial amount of
agreements. It is the change in earnings due to change in market prices. The foreign exchange risk was loan recovery and regularization.
A new dimension of credit risk has arisen due to the present worldwide economic meltdown mainly iv) Designating Anti-Money Laundering Compliance Officers (BAMLCO) at Branch Level,
originated from the sub prime effect. The bank has taken all out precautionary measures and directed the
v) Establishing an effective Know Your Customer culture,
branches through conference / circulars to take care of clients business transactions particularly of the
exporters. The branch management has been advised to be very prudent & observe due diligence so that vi) Establishing the identification of all clients,
Banks clients specially the exporters are given necessary counseling before entering into any foreign trade
vii) Reporting unusual/suspicious transactions as per Bangladesh Bank guidelines,
transactions with any new buyer.
viii) Timely reporting periodical statements and information to the competent authority of Bangladesh
04. Internal Control and Compliance Risk Management Bank as per their requirements,

The rapid growth of the risk management function in banks is based entirely on a solid foundation of ix) Retention of relevant records as per regulations,
satisfactory internal control. Southeast Bank Ltd (SEBL) has put in place an appropriate and effective internal
control environment to ensure that the Bank is managed and controlled in a sound and prudent manner. x) Segregation of individual roles and responsibilities,

Internal Control functions of SEBL consist of the following factors: xi) Regular workshop/training for all the officials of the Bank,

i) Board of Directors of Southeast Bank Ltd is concerned about sound corporate governance. It xii) Building up awareness of the customers for prevention of money laundering and terrorist financing,
understands and diligently discharges its responsibilities by ensuring that the Bank is appropriately
xiii) Implementation of self-assessment and independent testing procedure on AML issues,
and effectively managed and controlled,

xiv) Adoption of automated reporting system, etc.

ii) The management of Southeast Bank Ltd works actively to manage and operate the Bank in a sound
and prudent manner,
Central Compliance Unit (CCU) of the Bank is performing supervisory and monitorial activities for the
iii) An effective management information system supports the Banks organizational and procedural event of the aforesaid program on anti-money laundering and anti-terrorism financing. They also ensure
controls to soundly and prudently manage the Banks exposure to risk, and that bank complies with all the anti-money laundering and anti-terrorism financing legislation, including
the Know Your Customer rules.
iv) An independent audit mechanism is in place to monitor the effectiveness of the organizational and
procedural controls of the Bank.

06. Information and Communication Technology (ICT) Risk Management

The SEBL has established written Policy-Guidelines for each department of the Bank. An Audit Committee Information assets are critical to the services provided by the Bank to its customers. Protection and
of Board of Directors and a strong Management Committee (MANCOM) of the Bank are doing their maintenance of these assets are critical to its sustainability. The Bank has already taken initiatives for
functions effectively. protecting the information from unauthorized access, modification, disclosure and destruction to protect
customers interest. The Bank has already developed its own ICT policies for different operation and
05. Money Laundering Risk Management services. Those are very detailed and are closely in line with the ICT guidelines of Bangladesh Bank.

The commitment of senior management of Southeast Bank Ltd is to develop and enforce the Anti-Money- The Bank has started to maintain separate insurance coverage for its ICT assets by considering essentiality

Laundering and Anti-Terrorism objectives/programs which can deter criminals from using their tactics for for the Bank as well as for its customers and stakeholders.

money laundering or terrorist financing. The Bank management has been putting in conscious efforts to improve Problem Management, IT

Southeast Bank Ltd has chalked out a program for Anti-Money Laundering (AML) and Anti-Terrorist Operation Management, Change Management, Asset Management and Request Management to maintain

Financing (ATF) based on the following AML and ATF principles for implementation in all operational areas maximum uptime of automated banking business.

of the Bank: The Bank is strictly following the Information Security Standard of Bangladesh Bank which covers Password
Control, User ID Maintenance, Input Control, Network Security, Data Encryption, Virus Protection and
i) Adoption of written Anti-Money Laundering (AML) Manual and Policy for Anti-Terrorist Financing
Access Control to Internet and Emailing.
(ATF) in line with Bangladesh Bank Guidance Note,
Service Provider Management is one of the most important factors to efficiently manage dependencies in
ii) Establishing Central Compliance Unit (CCU) at Head Office,
ICT arena. Currently the Bank has been maintaining Service Level Agreement (SLA) with the vendors who
iii) Appointing Chief Anti-Money Laundering Compliance Officer (CAMLCO), are directly involved for providing critical services on behalf of the Bank.
Report on Corporate Social Responsibility Dhaka City. The beautification of the road-island from Russell Square to Manik Miah Avenue has been
done by the Southeast Bank.

Southeast Banks banking practice is based on a network of relationship with its employees, customers,
06. Regulators
suppliers, business associates, shareholders, regulatory authorities, and the community. The Banks
corporate social responsibility is about addressing the needs of all the stake holders in a way that advances Southeast bank firmly believes that it is imperative to comply with the relevant laws, rules and regulations
its business and makes a positive and meaningful contribution to the society. of all regulatory authorities to be a responsible corporate citizen. The Banks business practices are
transparent and are appreciated by the regulators. The Bank operates cautiously observing the anti-money
laundering practices.
01. Employees

The Banks business is dynamic and growing. This dynamism and growth comes from its skilled and 07. Community
experienced human resource that can be found at every level of the organization. The Bank offers its Southeast Bank works to promote good community relations to foster a relationship of understanding, trust
employees very competitive pay package and bonus that are reviewed on a continuous basis in line with and credibility. It has a long history of support for charitable causes. In 2008, Southeast Bank has spent
the market forces. It provides the employees a safe and congenial work environment. It also offers its Tk.14.82 million as donations for education, sports, art, culture, health-cares, community development,
employees handsome retirement benefits by way of Contributory Provident Fund, Gratuity, relief operations etc. The major areas of donations are given in the table below:
Superannuation benefits, etc. As a consequence, Southeast Bank has emerged as a Bank with a vision;
workplace of choice of many. The Banks rapid growth in business presents opportunities for talented Sl. Date To whom given Donated Amount
employees to take added responsibilities. The employees follow the ethical and other codes of conduct as No.
embodied in the Service Rules and Regulations of the Bank. 01 07.01.2008 Sub-ordinate employees of the Bank affected by
Cyclone-Sidr Tk.3,75,000/-
02. Customers 02 09.02.2008 Mr. S. Humayan Kabir for medical treatment Tk.1,00,000/-
The need to focus on the need of customers is fundamental to banking business. Southeast bank discharges 03 13.02.2008 Bangladesh Amateur Boxing Federation Tk.4,22,500/-
this vital responsibility by offering financial products and services that truly meets their needs. In 04 27.03.2008 Bangladesh Amateur Boxing Federation Tk.87,500/-
discharging this vital responsibility, the Bank always strives to maintain the highest standard of ethics in the
05 04.05.2008 Autistic Childrens Welfare Foundation Tk.5,00,000/-
conduct of its business. The Bank feels proud that these efforts have earned it the trust of the customers.
This trust in turn motivates the Bank to carry out every single transaction with the customers with the 06 27.05.2008 Bangladesh Amateur Boxing Federation Tk.7,81,500/-
highest degree of commitment and transparency without any hidden cost. The Bank looks upon the 07 14.06.2008 Mrs. Sufia Akhter for Cancer treatment Tk.10,00,000/-
customers as its partners in business and sincerely endeavours to improve its relationship with them for 08 16.07.2008 Mr. Shafayet Hossain for his kidney transplant Tk.25,00,000/-

mutual benefit.
09 03.08.2008 Bangladesh Amateur Boxing Federation Tk.2,62,000/-

03. Shareholders 10 29.09.2008 Ms. Mariam Khanam for medical treatment of her son. Tk.3,00,000/-

The Southeast bank is fully committed to protect the interest of its shareholders. Their constructive 11 20.11.2008 Dishari Foundation for construction of brick house. Tk.1,50,000/-
suggestions are implemented for the betterment of the company. It releases enough disclosures for the 12 12.11.2008 Mr. Abu Neser Md. Hassan for medical treatment of his wife. Tk.50,000/-
information of the shareholders in the Annual Reports, half-yearly financial statements, the print and 13 24.11.2008 Mr. Syed Md. Showket Osman for medical treatment. Tk.6,00,000/-
electronic media and in the Banks website. It always endeavours to enhance shareholders value by
14 01.12.2008 Bangladesh Amateur Boxing Federation Tk.8,46,200/-
optimizing financial performance at least cost. Since inception, the Bank has paid good dividends to the
shareholders. The number of shareholders of the Bank is increasing that testifies their unshakable faith in 15 15.12.2008 Karmojibi Nari for purchase of a refrigerator for their official use. Tk.30,957/-
the Bank. 16 28.12.2008 Bangladesh Amateur Boxing Federation Tk.1,00,200/-

04. The Banks Business Associates Southeast Bank Foundation

The Bank continuously endeavours to create a long-lasting win-win relationship with its suppliers and The Bank has also established the Southeast Bank Foundation to participate in social work in a more
organized manner. In 2008, the Foundation donated Tk.11, 75,000.00 for the distressed humanity. Out of
business associates for mutual growth. Its relationship with them is based on mutual trust and respect. It
the amount, Tk.10.00 lac was given to Mr. Md. Rahimul Islam Majumder for medical treatment of his sons
deals with them in a fair and transparent way. Southeast Bank enjoys credit lines from Correspondents and
hearing and speaking disability. Tk.1,75,000/- was donated to the Society for the Welfare of the
Foreign Banks and special credit line from ADB and IFC.
Intellectually Disabled - Bangladesh.

05. Environment To encourage female professionals in the field of accountancy of the country, the Foundation has awarded
scholarships for 02 (two) deserving female articled students of the Institute of Chartered Accountants of
The Bank continuously strives to ensure that its operations are environment-friendly and discourages Bangladesh (ICAB) on a recurring basis to continue annually to pursue Chartered Accountancy Course.
financing projects contrary to it. It has extended its helping hands to initiatives of community leaders for Each scholarship holder is being given Tk.3,000.00 per month for 03 (three) years. Besides Tk.10,000.00
environment protection and development. It is one of the leading participants in the beautification of was paid to each of them for books and other related expenditures.
Report of the Audit Committee Report of the Banks Shariah Council
The Audit Committee of the Board of Directors of the Bank held 4 meetings in 2008. In these meetings, the Committee Bismillahir Rahmanir Rahim
stressed upon efficiency and adequacy of internal control, risk management and reviewed the circumstances that may
adversely affect the sustainability of the Banks operations. The Committee also provided the following guidelines /
instructions for compliance by the management: Praise be to the Lord of the worlds, and prayer and peace be on the noblest of messengers, our Prophet
Mohammad (SM), his kindred and companions.
i) Comprehensive audit of each branch should be undertaken twice in a year on best effort basis to unearth
irregularities, if any, committed at the branches and rectify them at the earliest. The Principal source of Shari'ah is the Qur'an itself. The other source of Shari'ah are the arkan ad-din, or
ii) At the time of submitting an audit report about an irregularity at a branch of the bank, the modus operandi has the "five pillars of religion," which prescribe all the rituals incumbent on a believer.
to be clearly spelt out and the responsibility of the concerned officials has to be fixed without fear or undue
influence from any quarter. In the year 2008, Southeast Bank Limited catered Islamic banking operations through the following 05
iii) The Management must make all out efforts to recover the classified loans and overdue installments from (five) designated Islamic banking branches:
defaulting borrowers within the shortest possible time.
01 Chhagalnaiya Branch : Mir Shopping Complex, Chhagalnaiya, Feni
iv) The Management must take pragmatic steps to arrest further classification of loans and advances to keep the
percentage of non-performing loans at the lowest level. 02 Coxs Bazar Branch : Asha Shopping Complex, 430-431 Bazar Ghata, Coxs Bazar
v) Appropriate disciplinary action must be taken against the officials of the Bank who are found responsible for 03 Bandar Bazar Branch : Karimullah Market, Bandar Bazar, Sylhet.
committing gross irregularities leading to classification of Banks dues.
vi) Loans and advances should not be allowed before completion of prime documentation formalities. 04 Motijheel Branch : 125, Motijheel C/A, Dhaka.
vii) Loans and advances should be allowed to the clients after ascertaining their integrity, commitments, market 05 CDA Avenue Branch : Ali Villa, 1640/1861 (new), CDA Avenue, East Nasirabad, Chittagong
reputation, credit worthiness and track-record for ensuring safety of Banks lending.
viii) Regular follow up for rectification of the lapses and irregularities detected by the auditors must be ensured to We report the following to the Shareholders:
vanguard the Banks interest.
ix) Both centralized and branch level constant monitoring of classified and stuck-up loans should be made i) During the Year 2008 Shariah Council of Southeast Bank Limited held 04(four) formal meetings.
mandatory for their early recovery. ii) The Shariah Council stressed upon frequent inspection of the Islamic banking branches. The
x) Branches / unit with high concentration of classified loans in percentage must be brought under special Management of the Bank confirmed that all the Islamic banking branches were inspected in 2008
monitoring function of Credit Administration Division of Head Office for timely recovery of Banks overdues.
and Islamic banking branches strictly complied with the Shariah Principles.
xi) Branch-wise Loan Accounts which are showing signs of weakness with big exposures should be listed and
monitored by the Credit Administration Division of Head Office so that that they do not turn into classified iii) The accounts of Islamic banking operations of Southeast Bank Limited have been kept separately
loans. from conventional banking accounts.
xii) Special Mention Accounts of different branches should be listed quarterly and followed up so that they do not
iv) The Council gave considered decision and guidelines on issues of Islamic banking operations
get worse and instead rather turn into regular accounts.
referred by the Management of the Bank and reviewed the operational issues in respect of Islamic
xiii) Cases filed by the Bank in courts against defaulting borrowers must be monitored every day. The presence of
the Banks lawyers in the courts of law on the date of hearing of the case must be ensured. banking of the Bank.
xiv) CAD squad and personnel of branches shall personally chase defaulting and recalcitrant borrowers for recovery v) During the year, the Islamic banking branches were inspected by the Muraquibs and no deviation of

of Banks overdues. any Shariah law was reported to the Council.
xv) Vigorous efforts must be made for recovery of classified loans from the defaulting credit card holders of the
Bank. vi) The Shariah Council gave clearance to the Bank Management for investment of surplus fund of
xvi) The Executives of Credit Administration Division shall prepare roadmaps and execute them for recovery of Banks Islamic banking branches in the Bangladesh Government Islamic Investment Bond.
substantial amount of classified loans. vii) As advised by the Shariah Council, the Bank held training program on Islamic banking. In the training
xvii) The Credit Administration Division of Head Office shall chalk out elaborate action plans for the whole year of program, experts on Islamic banking including Chairman of the Banks Shariah Council spoke on
2008 for recovery of classified loans. Progress report about their efforts shall be submitted to the Managing issues and modalities of Islamic Banking.
Director quarterly.
xviii) Lapses and irregularities detected in the inspection reports of internal audit must be rectified and steps must be viii) The Council opined that the Bank will apply to Bangladesh Bank well in advance for permission to
taken to avoid recurrence of such irregularities. open 05(five) more new Islamic Banking Branches across the country in 2009.
xix) The Committee advised that vigorous efforts should be initiated for recovery of classified loans of the Bank. ix) The Shariah Council advised that sufficient number of books on Islamic Banking be purchased for
xx) The Committee advised for strong monitoring of loan accounts that show signs of weakness. the Bank. Moulana Abdul Hakim Azadi, Member, Shariah Council, was requested to give his
xxi) Incomplete documentation formalities in concerned accounts must be completed to safeguard Banks interest. assistance in the procurement of quality books on Islamic Banking.
xxii) Appropriate administrative steps must be taken against any delinquent employee for allowing unauthorized
advances. Steps must be also taken to stop such ill-practice at any branch of the Bank. x) The Shariah Council was satisfied that Southeast Bank Limited was blessed with a sufficient number
xxiii) Unauthorized advance with or without sufficient collateral shall be treated as the personal liability of the of qualified officers to carry out Islamic banking operations smoothly in 2008.
concerned officials of the Bank.
xxiv) The expenditures of branches must be controlled by proper monitoring and supervision. We pray to Almighty Allah to give us enough strength and fortitude to implement Shariah Principles in
xxv) All classified and stuck-up accounts must be strongly followed up. every sphere of our life and evoke His eternal blessings. Ameen.
xxvi) Heads and Manager Operations of branches must be changed at least every after 3 (three) years. A Head of
Branch (HOB) and Manager Operations (MO) may be kept at one location for more than three years against
special reasons and circumstances to be recorded in writing and with the approval of competent authority.

Prof. Moulana Mohammad Salah-Uddin

Azim Uddin Ahmed Chaiman
Chairman Shariah Council
Audit Committee
Value Added Statement for the year ended 31 December, 2008 Economic Value Added Statement for the year ended 31st December, 2008
The value added statement for the Bank shows how the value is created and distributed among different Economic Value Added (EVA) indicates the true economic profit of a company. EVA is an estimate
stakeholders of the Bank. Value added to the Bank stood at BDT 2,656.58 million as of December 31, 2008 as
against BDT 2,776.53 million in 2007. of the amount by which earrings exceed or fall short of required minimum return for shareholders at
Taka in 'million'
comparable risks. EVA of the bank stood at Tk.867.49 million as of December 31, 2008 as against
Particulars 2008 % 2007 %
Taka Taka Tk.800.86 million in 2007.
Income from Banking Services
Interest and similar income on loan portfolios 7,530.74 6,408.96
Investment income 1,279.96 956.80 Taka in 'million'
Commission, Exchange and Brokerage 1,264.28 1,161.33
Other Operating Income 175.16 143.38 Economic Value Added
10,250.14 8,670.47 2008 2007
Particulars Taka Taka
Less: Cost of Services & Supplies
Interest paid on Deposits & Borrowings 6,210.70 4,852.50
Rent, Taxes, Insurance, Lighting etc. 126.24 107.88
Legal expenses 0.94 0.35 Total Revenue 10,250.12 8,670.47
Postage, Stamp, Telegram & Telephone 57.70 54.93 Less : Expenses (Interest & Operating) (7,237.55) (5,754.27)
Stationery, Printing, Advertisement 60.30 39.26
Directors' Fees and Expenses 2.22 1.59 Less : Corporate Tax (1,267.59) (1,374.07)
Audit Fee 0.50 0.40
Less : Capital Changes (877.49) (741.27)
Repairs to Bank's property 32.32 23.13
Other expenses 229.88 221.95 Economic Value Added 867.49 800.86
6,720.80 5,302.00
Value Added by the Banking Services 3,529.34 3,368.47 Capital Changes = Required Rate of Return X Total Capital & Reserves
Add: Non-banking income - - Required Rate of Return (11.46%) = Return on 364-days Treasury Bills @8.46%+Risk Premium
Less: Loan Loss and Provisions
Specific provision on loan loss (355.85) (140.00) @3% in 2008
Transfer to general provisions (141.32) (80.00)
Transfer to general reserve - (220.00) (Return on 364-days Treasury Bills @8.46%+Risk Premium
Provision for Off-Balance Sheet Exposures (205.93) (107.10) @3% in 2007)
Provision for diminution in value of Investment (144.16) 12.94
Total Capital & Reserves = Tk.7,657.01 million in 2008 (Tk.6,468.36 million in 2007)

Provision for Other Assets (10.50) (5.00)
Transfer to SEBL Foundation (15.00) (50.00) Economic Value Added = Total Revenue - (Expenses + Corporate Tax + Capital Changes)
(872.76) (589.16)
Value Added 2,656.58 2,779.31

Distribution of Value Addition

Employees-as Salaries and Allowances 439.05 17% 382.74 14%
Provider of Capital - as dividend 427.83 16% 342.26 12%
Government - as income tax 1,267.59 48% 1,374.07 49%
Expansion & Growth:
Statutory Reserve 430.97 16% 519.41 19%
Retained Earnings 13.44 1% 91.30 3%
Depreciation 77.70 3% 69.53 3%
2,656.58 100% 2,779.31 100%

Auditors' report to the shareholders of Southeast Bank Limited

Market Value Added Statement for the year ended 31st December, 2008
We have audited the accompanying financial statements of Southeast Bank Limited (SEBL), which comprises the balance
sheet as at 31 December 2008 and the income statement, statement of changes in equity, liquidity statement and cash
flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Managements Responsibility for the Financial Statements
Market Value Added (MVA) is the difference between the equity market value of a company and the book
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh
value of equity invested in the company. A high MVA indicates that the company has created substantial Financial Reporting Standards (BFRS), Bank Companies Act 1991, the rules and regulations issued by the Bangladesh Bank, the
Companies Act 1994, the Securities and Exchanges Rules 1987 and other applicable laws and regulations. This responsibility
wealth for the shareholders. MVA is equivalent to the present value of all future expected Economic
includes: designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of financial
Value Added (EVA). The equity market value of the Bank stood at Tk.9,069.99 million whereas the book statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
value of equity stood at Tk.7,657.01 million, resulting a Market Value Added of Tk.1,412.98 million as
Auditors Responsibility
of December 31, 2008 as against Tk.6,611.82 million in 2007.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
Taka in 'million' accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from
Market Value Added material misstatement.
2008 2007
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
Particulars Taka Taka statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
Market Value of Total Equity 9,069.99 13,080.18 considers internal control relevant to the entitys preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
Less: Book Value of Total Equity (7,657.01) (6,468.36) effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
Market Value Added 1,412.98 6,611.82 of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Total Number of Shares outstanding = 28,521,979 22,817,583 Opinion:

In our opinion, the Financial Statements prepared in accordance with Bangladesh Financial Reporting Standards, give a true
Market Value per Share = 318.00 573.25 and fair view of the state of the bank's affairs as at 31 December 2008 and of the results of its operations and cash flows for
Market Value of Total Equity = [Total Number of shares outstanding X Market value the year then ended and comply with the Bank Companies Act 1991, the rules and regulations issued by the Bangladesh
Bank, the Companies Act 1994, the Securities and Exchanges Rules 1987 and other applicable laws and regulations.
per share as on 30.12.08]

Further to our opinion in the above paragraph, we state that:
Market Value Added = [Market Value of Total Equity] - [Book Value of Total Equity]
(i) We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(ii) in our opinion, proper books of account as required by law have been kept by SEBL so far as it appeared from our
examination of those books and proper returns adequate for the purpose of our audit have been received from
branches not visited by us;
(iii) the SEBL's Balance Sheet and Profit and Loss Account together with the annexed notes 1 to 44 dealt with by the
report are in agreement with the books of account and returns;
(iv) the expenditure incurred was for the purpose of the SEBL's business;
(v) the financial position of SEBL as on 31 December 2008 and the profit for the year then ended have been properly
reflected in the financial statements and the financial statements have been prepared in accordance with the
generally accepted accounting principles;
(vi) the financial statements have been drawn up in conformity with the Bank Companies Act, 1991 and in accordance
with the accounting rules and regulations issued by the Bangladesh Bank;
(vii) the financial statements conform to the prescribed standards set in the accounting regulations issued by the
Bangladesh Bank after consultation with the professional accounting bodies of Bangladesh;
(viii) the records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
(ix) adequate provisions have been made for advances and other assets which are, in our opinion, doubtful of recovery;
(x) the information and explanations required by us have been received and found satisfactory;
(xi) the Bank has no overseas branches; and
(xii) 80% of the risk- weighted assets have been reviewed.

Dated, Dhaka 21 March 2009 Chartered Accountants

Balance Sheet as at 31 December 2008 Balance Sheet as at 31 December 2008
IAS 1.8 (a) &
IAS 1.8 (a) &
IAS 1.46 (c)
IAS 1.46 (c)

IAS 1.104 & IAS 1.104 &

IAS 1.36,38 Notes December, 2008 December, 2007 IAS 1.36,38 Notes December, 2008 December, 2007
IAS 1.68(i) Cash: 3
In hand (Including Foreign Currencies) 486,061,422 440,911,732
Balance with Bangladesh Bank & its agent Bank(s) IAS 37.28 Contingent liabilities 18
(Including Foreign Currencies) 3,429,227,784 2,966,460,168 Acceptances and endorsements 18.1 15,359,632,013 7,377,208,948
3,915,289,206 3,407,371,900 Letters of Guarantee 18.2 6,165,108,183 5,335,371,383
IAS 1.68(d) Balances with Other Banks and Financial Institutions: 4 Irrevocable Letters of Credit 18.3 8,010,077,676 7,415,596,834
In Bangladesh 534,541,610 1,258,788,896 Bills for Collection 18.4 1,768,093,138 1,282,374,580
Outside Bangladesh 80,834,747 288,199,279 31,302,911,010 21,410,551,744
615,376,357 1,546,988,175
IAS 1.68(h) Money at Call on Short Notice 5 119,900,000 310,000,000
Other Contingent Liabilities
IAS 1.68(b) Investments: 6
Value of travellers' cheques on hand 2,801,600 8,505,835
Government 10,515,269,078 7,563,544,454
Value of Bangladesh Sanchay Patra on hand 273,991,000 251,551,000
Others 1,784,337,793 899,318,546
276,792,600 260,056,835
12,299,606,871 8,462,863,000
IAS 1.68(h) Loans and Advances: 7
Loans, Cash Credit & Overdrafts etc. 7.2.A 56,223,855,904 45,531,630,718 Other Commitments
Bills purchased and discounted 7.2.B 4,057,404,485 2,632,973,432 Documentary Credits and short term trade-related transactions - -
60,281,260,389 48,164,604,150 Forward assets purchased and forward deposits placed - -
IAS 1.68(a) Fixed Assets including premises, furniture and fixtures 8 2,685,557,650 1,708,110,172 Undrawn note issuance and revolving facilities - -
IAS 1.69,71(a) Other Assets 9 1,264,537,446 770,752,643 Undrawn formal standby facilities, Credit lines and other commitments - -
Non-banking assets - - Claims against the Bank not acknowledged as debt - -
Total Assets 81,181,527,919 64,370,690,040

- -


Liabilities: Total Off-Balance Sheet items including contingent liabilities 31,579,703,610 21,670,608,579
IAS 1.68(j) Borrowings from other banks, financial institutions
and agents 10 1,561,993,125 6,509,000
IAS 1.68(j) Deposits and Other Accounts: 11
Current/Al-wadeeah current accounts and other accounts 5,235,642,551 3,939,794,945
Bills Payable 852,132,286 688,281,765
Savings Bank/Mudaraba savings deposits 3,477,918,663 3,433,491,229
Fixed deposits/Mudaraba fixed deposits 59,148,979,075 47,412,480,169
68,714,672,575 55,474,048,109
IAS 1.69,71(a) Other Liabilities 12 3,547,587,788 2,745,663,830
Total Liabilities 73,824,253,488 58,226,220,939 Managing Director Director Vice Chairman Chairman
IAS 1.68(p),75(e) Capital/Shareholders' Equity:
IAS 1.68(p),75(e) Paid up Capital 13 2,852,197,800 2,281,758,300 See annexed auditors' report to the shareholders of date
IAS 1.68(p),75(e) Share Premium 485,930,025 1,056,369,600
IAS 1.68,75(e) Statutory Reserve 14 1,975,251,800 1,544,287,000
IAS 1.68(p),75(e) General Reserve 15 247,650,000 247,650,000 Dated, Dhaka 21 March 2009 Chartered Accountants
IAS 1.68(p),75(e) Others Reserve 16 1,253,453,849 570,619,810
IAS 1.68(p),75(e) Surplus in profit and loss account/Retained Earnings 17 542,790,957 443,784,391
Total Shareholders' Equity 7,357,274,431 6,144,469,101
Total Liabilities and Shareholders' Equity 81,181,527,919 64,370,690,040
IAS 1.8 (a) &
IAS 1.46 (c) Profit and Loss Account for the year ended 31 December 2008 IAS 1.8 (a) &
IAS 1.46 (c)
Profit and Loss Account for the year ended 31 December 2008

IAS 1.104 & IAS 1.104 &

IAS 1.36,38 Notes December, 2008 December, 2007 IAS 1.36,38 Notes December, 2008 December, 2007
Taka Taka Taka Taka

Operating Income IAS 1.83 Appropriations :

IFRS 7.20(b) Interest and Discount Income 20 7,530,737,516 6,408,962,289 Statutory Reserve 14 430,964,800 519,409,000

IFRS 7.20(b) Interest paid on Deposits & Borrowings 21 (6,210,696,470) (4,852,499,177) Amount transferred to SEBL Foundation 15,000,000 50,000,000

IAS 1.83 Net Interest Income 1,320,041,046 1,556,463,112 General Reserve - 220,000,000

445,964,800 789,409,000
Other Operating Income
IAS 1.83 Retained surplus 542,790,957 443,784,391
IFRS 7.20(b) Income from Investment 22 1,279,958,931 956,800,823
IAS 33.66 Earnings per share (EPS) 38 31.11 42.88
IFRS 7.20(c) Commission, Exchange & Brokerage 23 1,264,275,929 1,161,332,610

IAS 1.83 Other Operating Income 24 175,158,455 143,377,144

2,719,393,315 2,261,510,577

IAS 1.83 Total Operating Income (A) 4,039,434,361 3,817,973,689

IAS 1.93 Salary and Allowances 25 430,658,117 375,550,966

IAS 1.86 Rent, Taxes, Insurance, Lighting etc. 26 126,243,895 107,886,718

IFRS 7.20(c) Legal expenses 940,755 349,466

IAS 1.86 Postage, Stamp, Telegram & Telephone 27 57,700,819 54,934,940 Managing Director Director Vice Chairman Chairman
IAS 1.86 Stationery, Printing, Advertisement 28 60,298,509 39,260,461
See annexed auditors' report to the shareholders of date
IAS 1.83 Managing Director's remuneration 29 8,388,372 7,189,193

IAS 1.86 Directors' Fees and Expenses 30 2,226,637 1,584,817

IAS 1.86 Audit Fee 500,000 400,000 Dated, Dhaka 21 March 2009 Chartered Accountants

IAS 1.93 Depreciation on and repairs to Bank's property 31 110,015,744 92,661,260

IAS 1.86 Other expenses 32 229,881,824 221,957,104

IAS 1.83 Total Operating Expenses (B) 1,026,854,672 901,774,926

IAS 1.83 Profit/(Loss) before Provision (C=A-B) 3,012,579,689 2,916,198,764

IAS 1.86 Provision for Loans and Advances 12.1 & 12.2 497,165,000 220,000,000

IAS 1.86 Provision for Off-Balance Sheet Exposures 12.3 205,930,000 107,100,000

IAS 1.86 Provision for diminution in value of investment 33 144,163,000 (12,942,823)

IAS 1.86 Other Provisions 12.9 10,500,000 5,000,000

Total Provision (D) 857,758,000 319,157,177

Profit/(Loss) before Taxes (E=C-D) 2,154,821,689 2,597,041,587

IAS 1.81(d) Provision for Taxation (F) 12.7 1,267,586,652 1,374,072,549

Net Profit after Taxation (E-F) 887,235,037 1,222,969,038

IAS 1.83 Retained earnings brought forward from previous year 101,520,720 10,224,354

988,755,757 1,233,193,391
IAS 1.8 (a) &
IAS 1.46 (c)
Statement of Cash Flow for the year ended 31 December 2008








IAS 1.104 &
Notes December, 2008 December, 2007
IAS 1.36,38

Taka Taka

IAS 7.10 A. Cash Flow from Operating Activities :
IAS 7.31 Interest receipts in cash 8,481,664,188 7,034,562,767
IAS 7.31 Interest payment (5,640,289,157) (4,729,870,605)








Dividend receipts 31,117,643 2,080,927

IAS 7.31

IAS 7.14(b) Fees and commission receipts in cash 1,264,275,929 1,159,020,766
IAS 7.15 Recoveries on Loans previously written-off 8,933,151 573,999
IAS 7.14(d) Cash payments to employees (439,046,489) (379,959,998)
Cash payments to suppliers (62,419,928) (64,715,335)

247,650,000 1,253,453,849
IAS 7.14 (c )





Income taxes paid (955,272,937) (1,148,033,342)

IAS 7.35


IAS 7.14(b) Receipts from other operating activities 34 163,536,472 143,226,731
IAS 7.14 (c ) Payments for other operating activities 35 (450,379,768) (408,981,604)
Operating profit before changes in operating




assets and liabilities (i) 2,402,119,104 1,607,904,306

IAS 7.19(b) Increase / (Decrease) in operating Assets and Liabilities
Sale of trading securities 513,083,572 1,186,307,510

for the year ended 31 December 2008

Purchase of trading securities (1,242,289,948) (1,429,251,163)

Loans & advances to other banks - -






Loans & advances to customers (12,116,656,238) (7,017,322,150)

Other Assets 36 (429,759,546) 784,568,217
Deposits from other banks 1,555,484,125 (307,933,000)







Deposits from customers 12,670,217,153 9,295,236,296
Trading Liabilities - -






Other Liabilities 37 (137,857,633) (110,643,710)

Cash received from operating assets and liabilities (ii) 812,221,484 2,400,962,000

Net cash inflow from operating activities (A=i+ii) 3,214,340,588 4,008,866,306

IAS 7.21 B. Cash Flow from Investing Activities :







Proceeds from sale of securities 11,828,919,528 1,776,133,118

IAS 7.16(d)

IAS 7.16(c ) Payments for purchase of securities (12,732,264,468) (2,287,576,200)
IAS 7.16(a) Purchase of fixed assets (440,610,614) (143,358,253)

Statement of Changes in Equity

IAS 7.16(b) Sale of fixed assets 3,097,612 2,744,851
Payment against lease obligation (33,342,601) (28,036,583)







IAS 7.16(g)

Net cash inflow/(outflow) from investing activities (B) (1,374,200,543) (680,093,067)

IAS 7.21 C. Cash flows from financing activities :
IAS 7.31 Dividend paid (342,263,745) (422,547,876)

Appropriation made during the year

Receipts from issue of right shares - -

Net gain and losses not recognized

IAS 7.17(a)

Balance at 31 December, 2008

Currency translation differences

Balance at 31 December 2007

Net cash inflow/(outflow) from financing activities (C) (342,263,745) (422,547,876)

Changes in accounting policy

Surplus/deficit on account of

Surplus/deficit on account of

Transfer to SEBL Foundation

Balance at 1 January 2008

revaluation of investments
D. Net increase / decrease in cash & cash equivalent (A+B+C) 1,497,876,300 2,906,225,363

revaluation of properties

Dividends (Bonus share)

in the income statement
Net profit for the period
E. Cash and cash equivalents at beginning period 9,780,629,371 6,874,404,008

Issue of share capital

Restated balance

Dividends (Cash)
F. Cash and cash equivalents at end of period (D+E) 11,278,505,671 9,780,629,371
Cash and cash equivalents at end of the year

Cash in hand and balance with Bangladesh Bank 3,915,289,206 3,407,371,900
Balance with other banks 615,376,357 1,546,988,175
Money at call and short notice 119,900,000 310,000,000
Treasury bills 6,621,830,308 4,511,925,696
IAS 1.8 (a) &

IFRIC 1.6(d)
IFRIC 1.6(a)

IFRIC 1.6(a)

IFRIC 1.6(a)

IFRIC 1.6(a)
IAS 1.97 (b)
IAS 1.96 (d)
IAS 1.46 (c)

IAS 1.96(b)
IAS 1.96(a)

IAS 1.97(a)

IAS 1.97(a)
IAS 1.8 (c)
Prize bond 6,109,800 4,343,600

IAS 1.97
11,278,505,671 9,780,629,371
Notes to the Financial Statements for the year ended 31 December 2008






IAS 1.126(a)(b) 1. The Bank and its activities
Southeast Bank Limited is a scheduled commercial bank in the private sector established under the Bank
Companies Act 1991 and incorporated in Bangladesh as a public limited company to carry out banking
business in Bangladesh.
More than
5 years





The bank has 46 branches, with no overseas branch as on 31 December 2008. Except 5(five) branches of
Islamic Banking, the rest 41 branches run on commercial conventional basis. Southeast Bank Limited offers
services for all commercial banking needs of the customers, which includes deposit banking, loans and
advances, export import financing, inland and international remittance facility, etc. The bank is listed with
Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company.
as at 31 December 2008

Islamic banking
1-5 years






The bank operates Islamic banking in 5(five) branches designated for the purpose in complying with the
rules of Islamic Shariah, the modus operandi.

IAS 1.103(a) 2. Summary of significant accounting policies and basis of preparation of the financial statements

Balance with other banks and financial institutions, Money at call on short notice are on the basis of their maturity.

Borrowings from Bangladesh Bank, other banks, financial institutions and agents are on the basis of their payment.
IAS 1.126(b) 2.1 Basis of preparation of the Financial Statements
The financial statements of the bank are made upto 31 December each year and are prepared under the

3-12 months







historical cost convention and in accordance with the First Schedule (Sec. 38) of the Bank Companies Act

Fixed assets including premises land & buildings, furniture & fixtures are on the basis of their useful life.
1991, BRPD Circular No. 14 dated 25 June 2003, other Bangladesh Bank circulars, International
Accounting Standards (IAS)/ International Financial Reporting Standard (IFRS) adopted by the Institute of
Liquidity Statement (Assets and Liability Maturity Analysis)

Chartered Accountants of Bangladesh (ICAB), the Companies Act. 1994, the Securities & Exchange Rules
1987 and other laws & regulations applicable in Bangladesh.

The financial statements of the Islamic branches have also been prepared as per Bank Companies Act

1- 3 months







1991, Bangladesh Accounting Standards (BAS)/Bangladesh Financial Reporting Standard (BFRS) and other
relevant laws & regulations. Books & records are maintained separately. Separate balance sheet and profit
and loss account are shown in Annexure - A and the figures under different heads appearing in the
following assumptions have been applied in preparing the maturity analysis:

annexure have been converted into relevant heads of counts under conventional banking for

Deposits and other accounts are on the basis of their maturity and payment.
consolidation and incorporate.

References have been made according to International Accounting Standards (IAS) and interpretations as

Up to 1 Month






Provision and other liabilities are on the basis of their adjustment.

at 1st January 2007.

IAS 1.46(d)(e) 2.2 Functional and presentation currency

These financial statements are presented in Taka, which is the Bank's functional currency. Except as
Loans and advances are on the basis of their maturity.

indicated figures have been rounded to the nearest taka.

Other assets are on the basis of their adjustment.

IAS 1.110 2.3 Basis of consolidation

Investments are on the basis of their maturity.

A separate set of records for consolidating the statement of affairs and income and expenditure statements
Balance with other banks & financial institutions

Borrowings from Bangladesh Bank, other banks,

Fixed Assets including premises land & building,

of the branches were maintained at the Head Office of the Bank in Dhaka based on which these financial
statements have been prepared.

IAS 1.113,116 2.4 Use of estimates and judgments

The preparation of the financial statements requires management to make judgments, estimates and
financial institutions and agents

assumptions that affect the application of accounting policies and the reported amounts of assets,
Money at call on short notice

liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying
Provision & other liabilities

assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
Net Liquidity Gap (A-B)

period in which the estimate is revised and in any future periods affected.
Loans and Advances

Non-Banking Assets

Total Liabilities (B)

furniture & fixtures

2.5 Foreign currency conversion

Other Accounts
Total Assets (A)

IAS 21.23
Cash in Hand

Transactions in foreign currencies are translated into Bangladeshi Taka and recorded at the ruling
Other Assets


exchange rates applicable on the date of transaction.


i) Assets and liabilities denominated in foreign currency are translated into Taka at the weighted average



rates at the balance sheet date.




ii) Transactions in foreign currencies are converted into Taka currency at the rate of exchange prevailing
IAS 1.46 (c)
IAS 1.56 &

on the dates of such transactions and any gains or losses thereon are adjusted to revenue through foreign
exchange trading account.
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

IAS 1.36,38 2.6 Comparative Information investment. Premiums are amortized and discounts accredited, using the effective yield method and are
As guided in paragraph 36 and 38 of BAS 1 Presentation of Financial Statements, comparative information taking to discount income. The valuation of investment has been enumerated as follows:
in respect of the previous year have been presented in all numerical information in the financial Items Applicable accounting value
statements and the narrative and descriptive information where, it is relevant for understanding of the
current year's financial statements. Government treasury bill (HTM) At present value
T&T treasury bond At cost price
IAS 1.49 2.7 Reporting period Zero coupon bond At present value
These financial statements cover one calendar year form 1 January to 31 December 2008. Bangladesh Government treasury bond At present value
Prize bond At cost price
IAS 1.102 2.8 Cash flow statement Investment in shares (quoted) At cost or market value at the balance sheet
date whichever is lower.
Paragraph 102 of BAS 1 presentation of financial statements requires that a cash flow statement is to be
Investment in Shares (Unquoted) At cost price
prepared as it provides information about cash flows of the enterprise which is useful in providing users
of financial statements with a basis to asses the ability of the enterprise to generate cash and cash IAS 16.73(a) 2.11.4 Recognition of Fixed Assets
equivalents and the needs of the enterprise to utilize those cash flows. Cash flow statement has been All Property and equipment are classified and grouped on the basis of their nature as required in
prepared under the direct method for the period, classified by operating, investing and financing activities paragraph 75(a ) of BAS-1 Presentation of Financial Statements. The major categories of Property and
as prescribed in paragraph 10 and 18 (a) of BAS 7 Cash Flow Statements. equipment held by the bank are property (land & Buildings), Furniture and fixtures, office appliance,
electrical appliances and motor vehicles. As per Para 31 of BAS 16 after recognition as an asset, an item
IAS 1.95 2.9 Statement of Changes in Equity of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued
The Statement of changes in Equity reflects information about the increase or decrease in net assets or wealth. amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation
and subsequent accumulated impairment losses.
IFRS 7.39 2.10 Liquidity Statement (Asset & Liabilities Maturity Analysis)
The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual IAS 1.108(b) Assets acquired under own finance
maturity term which has been given in the Statement. As guided in paragraph 30 of BAS-16Property Plant and equipment these are capitalized at cost of
acquisition and subsequently stated at coat less accumulated depreciation. The cost of acquisition of an
IAS 1.110 2.11 Assets and basis of their valuation asset comprises its purchase price and directly attributable cost of brining the assets to its working
condition for its intended use inclusive of inward fright, duties and refundable taxes. The opening and
IAS 7.45 2.11.1 Cash and cash equivalents
closing carrying amounts of all property and equipment are presented including the amount of additions,
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh disposals and depreciation charged during the year as required by paragraph 73(a-e) of BAS-
Bank and highly liquid financial assets which are subject to insignificant risk of changes in their fair value, 16,Maintanance expenses that does not increase in the future economic benefit of assets is charged to
and are used by the bank management for its short term commitments. profit & loss account.
IAS 1.110 2.11.2 Loans, Advances/Investments and provisions IAS 17.31(e) Assets acquired under lease finance

a) Loans and advances of conventional Banking / Investments of Islamic Banking branches are stated in As per BAS 17 "Lease" all fixed assets acquired under finance lease is accounted for recording the asset at
the Balance Sheet on gross value. the lower of present value of minimum lease payments under the lease agreements and the fair value of
b) Provision for loans and advances is made on the basis of periodical review by the management and of assets. The related obligation under the lease is accounted for as liability. Financial charges are allocated to
instructions contained in Bangladesh Bank BRPD Circular no. 5 dated 5 June 2006. The classification rates accounting period in a manner so as to provide a constant rate of charge on the outstanding liability.
are given below:
IAS 16.73(b)(c) 2.11.5 Depreciation on Fixed assets
Particulars Rate As required in paragraph 43 of BAS-16 property Plant and equipment depreciation has been charged at
General provision on: the following rates on reducing balance method on all fixed assets other than vehicles, which are
Unclassified loans and advances 1% depreciated on straight line basis.
Small Enterprise 2% Category of the assets Rate of depreciation
Consumer finance for house building loan and loans for professional setup 2%
Land Nil
Other consumer finance 5%
Building 4%
Special mention account 5%
Furniture and fixtures 10%
Electrical installation including computer 20%
Specific provision on:
Typewriter, adding and calculating machine 20%
Substandard loans and advances 20%
Vehicles 20%
Doubtful loans and advances 50%
Bad/loss loans and advances 100% Depreciation has been charged from the month of purchase and in case of sale upto the month of sale.
Loans and advances are written off to the extent that The gain or loss arising on the disposal or retirement of an asset is determined as the difference between
the sale proceeds and the carrying amount of the asset and is recognized in the profit and loss account.
i) there is no realistic prospect of recovery, and
ii) against which legal cases are filed and classified as bad loss for more than five years as per guidelines IAS 1.110 2.12 Liabilities and basis of their valuation
of Bangladesh Bank.
IAS 1.76(b) 2.12.1 Statutory reserve
These write off however will not undermine/affect the claim amount against the borrower. Detailed As per section 24 of the Bank Companies Act 1991,20% of the net profit i.e profit before tax require to
memorandum records for all such write off accounts are maintained and followed up. transfer to statutory reserve until such reserve equals to its paid up capital.

IAS 1.109 2.11.3 Investments IAS 1.76(b) 2.12.2 Exchange equalization fund
Investments are valued in compliance with BAS-25. All investment in securities are initially recognized at This represents the amount arise from exchange gain due to devaluation of Bangladesh taka with foreign
cost, being fair value of the consideration given, including acquisition charges associated with the currencies and is accounted for as per instruction issued by the Bangladesh bank from time to time.
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

IAS 19.120 2.12.3 Retirement benefit schemes Interest/ Profit are not charged on bad and loss loans as per guideline of Bangladesh Bank. Such
Accounting recognition & measurement, as well as the disclosures requirements for different benefit interest/profit are kept in separate memorandum account.
schemes for employees are the followings.
IAS 18.35(a) 2.13.2 Profit on investment (Islamic banking)
IAS 19.120 2.12.4 Provident fund Mark-up on investment is taken into income account proportionately from profit receivable account.
Provident fund benefits are given to the staff of the bank in accordance with the registered Provident fund Overdue charge/compensation on classified investments transferred to profit suspense account instead of
income account.
rules. The commissioner of Income Tax, Large Tax Payers Unit, Dhaka has approved the Provident Fund
as a recognized fund within the meaning of section 2(52) read with the provisions of part - B of the First IAS 18.35(a) 2.13.3 Investment income
Schedule of Income Tax Ordinance 1984. The fund is operated by a Board of Trustees consisting of 6 (six) Income on investments is recognized on accrual basis.
members of the bank. All confirmed employees of the bank are contributing 10% of their basic salary as
subscription of the fund. The bank also contributes equal amount to the fund. Contributions made by the IAS 18.35(a) 2.13.4 Fees and commission income
bank are charged as expense. Interest earned from the investments is credited to the members' account Fees and commission income arises on services provided by the Bank and recognized on a cash receipt
on half yearly basis. basis. Commission charged to customers on letters of credit and letters of guarantee are credited to income
at the time of effecting the transactions.
IAS 19.120 2.12.5 Gratuity
Gratuity fund benefits are given to the staff of the bank in accordance with the approved Gratuity fund IAS 18.35(a) 2.13.5 Dividend income on shares
rules. National Board of Revenue has approved the gratuity fund as a recognized gratuity fund with effect Dividend income from shares is recognized during the period in which they are declared and actually received.
from December 2001. The fund is operated by a Board of Trustees consisting of 7 (seven) members of the
bank. Employees are entitled to gratuity benefit after completion of minimum 7 (seven) years of service in IAS 18.35(a) 2.13.6 Gain on sale of security
the Company. The gratuity is calculated on the basis of last basic pay and is payable at the rate of one Capital gain on sale of securities listed in the stock exchanges is accounted as per BAS-39 i.e only the
month's basic pay for every completed year of service. Gratuity so calculated are transferred to the fund realized profit from sale of securities are taken into Profit & Loss Account.
and charged to expenses of the bank. IAS 1.108(b) 2.13.7 Interest paid and other expenses (conventional banking)
IAS 19.120 2.12.6 Superannuation Interest paid and other expenses are recognized on accrual basis.
The bank also contributes yearly amount to employees superannuation fund as per rules and regulations of the IAS 1.108(b) 2.13.8 Profit paid on deposits (Islamic banking)
fund recognized by the Tax Authority. Contribution of the bank to such fund charged as expense of the bank. Profit paid to mudaraba deposits are recognized on accrual basis as per provisional rate.
IAS 1.110 2.12.7 Taxation IAS 1.108(b) 2.14 Reconciliation of inter-bank and inter-branch account
Income tax represent the sum of the current tax and deferred tax payable. Accounts with regard to inter bank (in Bangladesh and outside Bangladesh) are reconciled regularly and
there are no material differences which may affect the financial statements significantly.
IAS 12.46 2.12.8 Current tax
Provision for current income tax has been made @ 45% as prescribed in the finance Act 2008 on the Unmatched entries/balances in case of inter branch transactions as on the reporting date are not material.

accounting Profit made after considering some of the taxable add back income and disallowance of
expenditure in compliance with BAS-12. IAS 1.110 2.15 Risk Management
Risk Management is the key element for sound corporate governance of the Bank. With a recent addition in
IAS 12.47,15,24 2.12.9 Deferred taxation regulatory mandates and increasingly active participation of shareholders, the Bank has become increasingly
The Bank has adopted deferred tax accounting policy as per Bangladesh Accounting Standard (BAS) 12. concerned to identify areas of risks in the business, whether it is financial, operational, ICT or reputation risk.
Southeast Bank identifies, measures, monitors and manages all risks of the Bank. Sophisticated risk
Deferred tax liabilities are the amounts of Income tax payable in future periods in respect of taxable management framework is being implemented to carry out efficient risk management exercises of the Bank
temporary difference. including documenting and assessing risks, defining controls, managing assessments and audit, identifying
Deferred tax assets are the amount of income tax recoverable in future periods in respect of issues, implementing recommendations and corrective plans. In accordance with Bangladesh Bank Guidance
Notes, the Bank has established a risk framework that consists of six core factors, i.e. (i) Credit Risk (ii) Asset
deductable temporary differences
and Liability/Balance Sheet Risk (iii) Foreign Exchange Risk (iv) Internal Control and Compliance Risk (v)
the carry forward of unused tax losses and Money Laundering Risk and (vi) Information and Communication Technology Risk.
Carry forward of unused tax credits
The Bank has also identified the following four key infrastructure components for effective risk
Deferred tax is computed at the prevailing tax rate as per Finance Act 2008. management programs:

IAS 37.85 2.12.10 Provisions and accrued expenses i) Proactive Board of Directors and Senior Managements Supervision,
ii) Adequate Policies and Procedures,
In compliance with BAS-37, Provisions and accrued expenses are recognized in the financial statements
iii) Proper Risk-Measurement, Monitoring and Management Information Systems and
when the bank has a legal or constructive obligation as a result of past event, it is probable that an outflow iv) Comprehensive Internal Controls.
of economic benefit will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. 2.15.1 Business Risk

IAS 1.110 2.13 Revenue recognition IFRS 7.33 a) Credit Risk

Moment of recognition, amount to be recognized and disclosure requirements of revenue has been made Credit Risk is the probability of failure of a borrower or counterparty to meet its obligations in accordance
as per BAS-18 with agreed terms causing a loss of all or part of the replacement value of ongoing contracts. Default
signals an inability or unwillingness of the borrower to fulfill its obligations. The goal of credit risk
IAS 18.35(a) 2.13.1 Interest income management is to maximize a Bank's risk-adjusted rate of return by maintaining credit risk exposure
within acceptable levels. The effective management of credit risk is a critical component of a
The interest receivable is recognized on accrual basis. Interest on loans and advances ceases to be taken into
comprehensive approach to risk management and essential to the long-term success of any banking
income when such advances are classified. It is then kept in interest suspense account as per Bangladesh Bank organization. The Basel Committee is encouraging Banks to promote sound practices for managing credit
instructions and such interest/profit is not accounted for as income until realized from borrowers. risk. Following are the prerequisites of the credit risk management structure:
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

(i) Establishing an appropriate credit risk monitoring environment, 2.15.2. Liquidity Risk
(ii) Operating under a sound credit-granting process,
(iii) Maintaining an appropriate credit administration, measurement and monitoring process, & IFRS 7.39(b) Asset Liability Risk Management
(iv) Ensuring adequate controls over credit risk. The Asset Liability Management technique designed to earn an adequate return while maintaining a
comfortable surplus of Assets beyond Liabilities, takes into consideration interest rates, earning power and
degree of willingness to take on debt. Southeast Bank has a committee called the Asset Liability
The sound credit risk management practices focus on the following key elements/ processes: Committee (ALCO) which is meeting at least once every month to analyze, review and formulate strategy
(i) Identification of risks, to manage the balance sheet. The ALCO of the bank monitors market risk and liquidity risk, at the same
(ii) Analysis of risks (qualitative & quantitative), time it interpret the market views and the competition. ALCO prepares the liquidity plan as per the
(iii) Response planning, & maturity of assets and liabilities, deposits and lending. The most important objective of the ALCO is to
(iv) Continuous Monitoring and Control. maintain a contingency plan to combat significant market volatility like rate of interest. It evaluates
liquidity requirement and the pricing strategy of the bank.
Southeast Bank is keenly aware of the need to identify, measure, monitor and control credit risk as well
as to hold adequate capital against these risks for adequate compensation of risks incurred since exposure The ALCO in its regular meeting takes necessary market information from treasury division and other well
to credit risk continues to be the leading source of problems in Banks world-wide. In this respect, the Bank conversant members of the committee to take strategic decision. The members of the committee
is following the system as per Guidelines of Bangladesh Bank. The Bank has also adopted a policy to Managing Director, Deputy Managing Director and strategically important Head of different divisions.
review the whole system from time to time to cope with the multifarious situations of credit risk. ALCO also included invitees to enrich the total decision making process with their valuable interpretation.
Through ALCO the Bank takes all major strategic plan regarding interest rates on deposits and advances,
A thorough credit risk assessment is conducted prior to sanctioning of loans. The results of this assessment foreign exchange position and the regulatory requirement of Bangladesh.
are presented in a specific Credit Appraisal Form that originates from the Credit Officer/ Relationship
Manager (RM) and is approved by the Management/Executive Committee of Directors/ Board of Directors 2.15.3 Reputation Risk
as per the discretionary power.
IAS 1.110 Money Laundering Risk Management
The Bank has already reinforced the functions of Credit Administration, such as Compliance, Credit Money laundering is the process of criminals use to hide, control, invest and get benefit from the proceeds
Monitoring and Recovery to maintain Credit Risk at the minimum level. In order to achieve this goal, of their criminal activities. This process is of critical importance, as it enables the criminal to enjoy these
Credit Administration Department (CAD) is exerting all out efforts for completion of Security proceeds without jeopardizing their source. According to the best corporate governance, practices and
Documentation before disbursement, ensuring adequate Insurance Coverage to cover unforeseen risks, aiming at protecting the Bank and its Employees, Shareholders, Management and Customers, all the
monitoring and follow up after disbursement of Credit to maintain the risk assets standard. applicable laws, regulations, rules and guidelines of Bangladesh Bank are complied with. The Bank actively
prevents and takes measures to guard against being used as a means of money laundering/terrorist financing
Monitoring and Recovery Unit is engaged in vigilant monitoring and managing of all Classified and and other activities that facilitate the funding of terrorist or criminal activities.
Special Mention Accounts for maximization of recovery and ensuring appropriate loan loss provision.
Despite political uncertainty and both domestic & global economic turmoil in 2008, the Bank could 2.15.4 Control Risk
maintain the percentage of classified portfolio at a tolerable level of 4.12% through substantial amount of
loan recovery and regularization. IAS 1.110 Internal Control & Compliance Risk Management
Effective internal control is essential to a bank for management of risk and it is the foundation of safe and

IAS 1.110 b) Operational Risk sound banking. A good system of internal controls helps the management to safeguard the banks
Operational Risk is the risk of loss arising from the potential that inadequate information system, resources. The Board of Directors and Management of Southeast Bank Limited (SEBL) take the plan of the
technology failures, breaches in internal controls, fraud, unforeseen catastrophes, or other operational Bank and adopt all the methods, policies & procedures as per standard guidelines with a view to
problems may result in unexpected losses or reputation problems. Failure to understand and manage this continually recognize and assess all of the material risks that could adversely affect the achievement of
risk may greatly increase the possibility that some risks will go unrecognized and uncontrolled. Southeast the banks goals. The system of Internal Control of SEBL has been designed with intention to provide
Bank Limited has established an effective, integrated operational risk management framework to mitigate reasonable assurance in achieving objectives against material misstatement or loss and ensure the:
the Operational Risk. Internal Control and Compliance Division of the Bank with three units has been i) reliability of the financial information;
performing the supervisory and monitoring works to manage this risk. ii) effectiveness of operations;
IFRS 7.33 c) Market Risk iii) compliance with applicable laws and regulations;
iv) adherence to management policies;
i) Foreign Exchange Risk Management
v) safeguarding of Banks Assets;
Foreign exchange risk is defined as the potential change in earnings due to unfavorable movement in
exchange rates. Generally, the Bank is less exposed to foreign exchange risk as all the transactions are vi) prevention and detection of fraud and errors; and
carried out on behalf of the customers against L/C commitments and other remittance requirements. The vii) accuracy and completeness of the accounting records.
Bank has undertaken policy guidelines to minimize the foreign exchange risk for exposure in currency
movement. Treasury department has separate front office. Its back office desks are responsible for deal Board of Directors, Board Audit Committee, Senior Management, each Division including Internal Control
verification limit monitoring and settlement of transactions separately. The Bank continuously revalued all & Compliance Division and Branches of SEBL are discharging their role on the issue of managing the risk
foreign exchange positions at market rate as per the guidelines of Bangladesh Bank. All Nostro Accounts of Internal Control & Compliance effectively.
are timely reconciled and all outstanding entries are reviewed on a regular basis.
2.15.5 Information Technology Risk
ii) Interest Rate Risk IAS 1.110 Information and Communication Technology (ICT) Risk Management
Interest rate risk arises from the unanticipated change in interest rate that may adversely affect the earnings The Bank is aware of the method of ICT Risk Management which is based on the syntax of Risk Management.
of bank and / or net worth. The more rate sensitive assets and liability the bank has the more it is exposed Information assets are critical to the services provided by the Bank to its customers. Protection and maintenance
to its interest rate risk. The interest rate risk is measured from earning perspective and the economic value of these assets are critical to its sustainability. The Bank has already taken initiatives for protecting the
perspective. The Asset Liability Committee (ALCO) of the bank monitors the interest rate movement on a information from unauthorized access, modification, disclosure and destruction to protect customers interest.
regular basis and takes effective measure to minimize the interest rate risk. The Bank has already developed its own ICT policies for different operation and services. Those are very
detailed and are closely in line with the ICT guidelines of Bangladesh Bank.
iii) Investment Risk
Investment risk arises from movement in market value of investment in equities held. The risks are The Bank has developed a critical human resource fall tolerance plan with detail job description for each
monitored by Investment Division under a well designed policy framework. IT personnel, segregation of duties for IT tasks and system support in respect of severity.
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

Training is a key component of ICT Risk Management. The Bank has been continuously conducting
training sessions on sensitive IT tasks (i.e. operational procedure, security procedures, steps to be taken in Name of BFRS BFRS No. Status
case of any contingency / health security in the ICT area, Business Continuity Plan, Disaster Recovery Plan Share Base Payment 2 N/A
etc.) for relevant employees.
Business Combinations 3 N/A
The Bank has started to maintain separate insurance coverage for its ICT assets by considering essentiality
Non-Current Assets Held for Sale and discounted operations 5 N/A
for the Bank as well as for its customers and stakeholders.
Exploration for and Evaluation of Mineral Resources 6 N/A
The Bank management has been putting in conscious efforts to improve Problem Management, IT
Operation Management, Change Management, Asset Management and Request Management to maintain
maximum uptime of automated banking business. IAS 1.110 2.18 Off-balance sheet items
The Bank has been maintaining physical security for its workplace to properly protect ICT resources as per Under general banking transactions, liabilities against acceptance, endorsements, and other obligations
the Physical Security Guideline under Tier-2 of ICT guideline of Bangladesh Bank. The Bank is strictly
and bills against which acceptance has been given and claims exists there against, have been shown as
following the Information Security Standard of Bangladesh Bank which covers Password Control, User ID
Maintenance, Input Control, Network Security, Data Encryption, Virus Protection and Access Control to off balance sheet items.
Internet and Emailing.
Off Balance Sheet items have been disclosed under contingent liabilities and other commitments as per
Service Provider Management is one of the most important factors to efficiently manage dependencies in Bangladesh Bank guidelines.
ICT arena. Currently the Bank has been maintaining Service Level Agreement (SLA) with the vendors who
are directly involved for providing critical services on behalf of the Bank. As per BRPD circular #10, dt 18 Sep 2007, 1% provision should be maintained against off- balance sheet items.

IAS 1.108(b) 2.16 Credit Rating of the Bank IAS 1.108(b) 2.19 Earning per share (EPS)
As per the BRPD instruction circular No.6 dated July 5, 2006, the Bank has done its credit rating by Credit The Company calculates Earning Per Share (EPS) in accordance with BAS 33: Earning Per Share, which
Rating Agency of Bangladesh (CRAB) based on the financial statements dated 31 December 2007
has been shown on the face of profit & loss account, and the computation of EPS is stated in Note 37.
Particulars Date of Rating Long term Short term
Entity Rating 30 March 2008 A1 ST-2 Basic earnings
Single A (High safety) (High Grade) This represents earnings for the year attributable to ordinary shareholders. As there was no preference
dividend, minority or extra ordinary items, the net profit after tax for the year has been considered as fully
IAS 1.105(a) 2.17 Compliance of Bangladesh Accounting Standard (BAS) and Bangladesh Financial Reporting attributable to the ordinary shareholders.
Standards (BFRS)
Weighted average number of ordinary shares outstanding during the year
Name of BAS BAS No Status
Presentation of Financial Statements 1 Applied This represents the number of ordinary shares outstanding at the beginning of the year plus the number of shares

Inventories 2 N/A issued during the year multiplied by a time-weighting factor. The time-weighting factor is the numbers of
Cash Flow Statements 7 Applied months the specific shares are outstanding as a proportion of the total number of months in the year.
Accounting Policies, changes in Accounting Estimates and Errors 8 Applied
Events after the Balance sheet date 10 Applied Basic earnings per share
Construction Contracts 11 N/A This has been calculated by dividing the basic earnings by the weighted average number of ordinary
Income Taxes 12 Partially Applied shares outstanding for the year.
Segment Reporting 14 Applied
Property ,Plant & Equipments 16 Applied Diluted earnings per share
Leases 17 Applied No diluted EPS is required to be calculated for the year, as there was no scope for dilution during the year
Revenue Recognition 18 Applied under review.
Employee Benefits 19 Partially Applied
Accounting for Govt. Grants and disclosures of Govt. assistances 20 N/A 2.20 Correspondence items
The effects of changes in Foreign exchange rates 21 Applied Correspondence items are maintained to have control over all items of importance and for such
Borrowing Cost 23 Applied transactions where the Bank has only a business responsibility and no legal commitment. Stock of
Related Party disclosure 24 Applied travelers cheques, savings certificates, wage earners bond and others fall under the correspondence items.
Consolidated and separate Financial statements 27 N/A
Investment in Associates 28 N/A 2.21 Offsetting
Disclosures in Financial Statements of Banks and Similar Financial Institutions 30 Applied Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when
Interest in Joint Ventures 31 N/A there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on
Earning Per Share 33 Applied a net basis, or realize the asset and settle the liability simultaneously.
Interim Financial Reporting 34 Applied
Impairment of Assets 36 Applied IAS 10.17 2.22 Approval of financial statements
Provisions, Contingent Liabilities and Contingent Assets 37 Applied The financial statements were approved by the Board of Directors on 16 March 2009.
Intangible Assets 38 Applied
Investment Property 40 N/A IAS 1.112 2.23 General
Agriculture 41 N/A Figures of previous year have been rearranged whenever necessary to conform the current years presentation.
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007 December, 2008 December, 2007

Taka Taka Taka Taka
IAS7.45 3 Cash IAS1.74 4 Balance with Other Banks and Financial Institutions:
Cash in hand In side Bangladesh - Note 4.1 534,541,610 1,258,788,896
Local currency 439,693,426 411,691,638 Outside Bangladesh - Note 4.2 80,834,747 288,199,279
Foreign currency 46,367,996 29,220,094
615,376,357 1,546,988,175
486,061,422 440,911,732

IAS1.75(b) 4.1 Balance with Other Banks and Financial Institutions

IAS1.74 Balance with Bangladesh Bank and its agent banks
a) Inside Bangladesh
Local currency 3,436,478,990 2,884,138,665
Current Account with:
Foreign currency (62,153,782) 79,315,863
Sonali Bank (1,723,660) (5,528,148)
3,374,325,208 2,963,454,528 Agrani Bank 3,415,535 5,537,387
Balance with Sonali Bank (as agent of Bangladesh Bank): 54,902,576 3,005,640 Arab Bangladesh Bank Limited 1,605,088 1,855,999
3,429,227,784 2,966,460,168 The Commercial Bank of Ceylon Limited 13,697 13,697
3,915,289,206 3,407,371,900 National Bank Limited 203,304 204,672
Janata Bank Limited (932,482) 163,644
Bangladesh Bank adjustments account represents outstanding transactions (Net) originated but yet to Pubali Bank Limited 690,614 5,295,125
be responded at the balance sheet date. However, the status of unresponded entries of 31.12.2008 Rupali Bank Limited (2,487,715) 2,511,575
are given below: United Commercial Bank Limited 3,556,494 675,042
Bangladesh Krishi Bank 248 248
In Local Currency Number of Unresponded entries
Al-Arafah Islami Bank Limited 504,870 506,163
Unresponded entries (Amount Taka)
The Oriental Bank Limited 139,076 438,171
Dr. Cr. Dr. Cr.
Upto 3 months 13 24 492,091,145 97,697,245
Islami Bank Bangladesh Limited (165,194) (164,894)
Over 3 months but within 6 months 1 3 400 3,932,741 Bank Asia Limited 2,107,421 6,034,080
Over 6 months but within 1 year - - - - Shahjalal Islami Bank Limited 550,000 550,000
Over 1 year but within 5 years - - - - One Bank Limited 99,382 100,000
14 27 492,091,545 101,629,986 Dutch Bangla Bank Limited 1,303,571 802,047
8,880,248 18,994,806
3.1 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Short Term Deposit Account with:

Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained in
The City Bank Limited 935,808 528,502
accordance with section 33 of Bank Companies Act, 1991 and BRPD circular no.11 and 12, dated
Arab Bangladesh Bank Limited 30,543 30,795
August 25, 2005
Eastern Bank Limited 182,447 176,025
Uttara Bank Limited 4,529 (107,410)
The Cash Reserve Requirement on the Bank's time and demand liabilities at the rate of 5% has been
EXIM Bank Limited 151,780 145,040
calculated and maintained with Bangladesh Bank in current account and 18% Statutory Liquidity
Pubali Bank Limited 116,319 113,399
Ratio, including CRR, on the same liabilities has also been maintained in the form of treasury bills,
National Bank Limited 101,039 -
bonds, FC with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the
statutory requirements, as shown below: Sonali Bank Limited 22,770,373 14,941,355
Standard Chartered Bank 1,360,124 2,771,317
3.1.1 Cash Reserve Requirement (CRR): Social Investment Bank Limited - 1,185,065
Dutch-Bangla Bank Limited 8,400 10,000
5% of Required Average Demand and Time Liabilities:
25,661,362 19,794,090
Required reserve 3,445,691,250 2,514,956,150
Actual reserve held as per Bangladesh Bank Statement on 31.12.2008 3,817,655,000 2,884,138,665 Fixed Deposit Account with:
Surplus 371,963,750 369,182,515 Arab Bangladesh Bank Limited 100,000,000 250,000,000
Bank Asia Limited - 100,000,000
3.1.2 Statutory Liquidity Requirement (SLR): 100,000,000 350,000,000
18% of Required Average Demand and Time Liabilities: Fixed deposits With Financial Institutions:
Required reserve 12,404,488,500 9,053,842,140 Bay Leasing and Investment Limited 350,000,000 380,000,000
Actual reserve held 14,430,558,284 10,970,916,354 Peoples Leasing & Financial Services Ltd. 50,000,000 40,000,000
Surplus 2,026,069,784 1,917,074,214 International Leasing and Financial Services Limited - 100,000,000
Held for Statutory Liquidity Ratio Industrial Development Leasing Company Ltd. - 100,000,000
Cash in hand 486,061,422 440,911,732 Lanka Bangla Finance - 100,000,000
Balance with Bangladesh Bank and its agent bank(s) 3,429,227,784 2,966,460,168 Union Capital - 50,000,000
Government Treasuary Bills 6 6,621,830,308 4,511,925,696 Phoenix Leasing Company Limited - 100,000,000
Government Bonds 6 3,893,438,770 3,051,618,758 400,000,000 870,000,000
14,430,558,284 10,970,916,354 534,541,610 1,258,788,896
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007




Taka Taka
in BDT

IAS1.52 4.3 Maturity grouping of Balance with Other Banks and Financial Institutions:
On demand 89,714,995 307,194,085
Less than three months 175,661,362 639,794,090
December 31, 2007

More than three months but less than six months 250,000,000 500,000,000



More than six months but less than one year 100,000,000 100,000,000

unit of FC
Rate per

615,376,357 1,546,988,175

IAS1.74 5 Money at call on short notice

In Bank:




The Oriental Bank Limited 19,900,000 20,000,000
in Foreign

Mutual Trust Bank Limited - 200,000,000

AB Bank Limited - 60,000,000
19,900,000 280,000,000
In non-bank financial institutions (public and private):
Bay Leasing and Investment Limited 100,000,000 30,000,000







100,000,000 30,000,000
in Taka

119,900,000 310,000,000
IAS1.74 6 Investments
Government Securities:
December 31, 2008

Treasuary Bills
28 days Treasury Bills - 987,312,312

91 days Treasury Bills 2,044,455,207 1,741,631,263

unit of FC
Rate per

182 days Treasury Bills 1,201,456,946 692,142,017

364 days Treasury Bills 4,224,469,816 1,110,687,956
2 Years Treasury Bills - 1,047,892,300
5 Years Treasury Bills 218,614,100 -






7,688,996,069 5,579,665,848
in Foreign

Add: Reverse REPO with Others Bank - -

7,688,996,069 5,579,665,848
Less: REPO with Others Bank 1,067,165,761 1,067,740,152
Total Treasury Bills 6,621,830,308 4,511,925,696
Government Bonds



Prize Bonds 6,109,800 4,343,600





T & T Treasury Bond 238,974,120 509,031,000

In demand deposit accounts (non interest bearing) with:

245,083,920 513,374,600
In demand deposit accounts (interest bearing) with:

Bangladesh Government Treasury Bond 7,371,446,451 2,538,244,158

Less: REPO with Others Bank 3,723,091,601 -
3,648,354,850 2,538,244,158
4.2 Outside Bangladesh (Nostro Accounts):

Total Government Bonds 3,893,438,770 3,051,618,758

National Australia Bank Ltd. Melbourne

Total Government Securities 10,515,269,078 7,563,544,454

Bank of Nova Scotia, Toronto, Canada
Arab Bangladesh Bank Ltd., Mumbai

Other Investments:
Standard Chartered Bank, New York

American Express Bank Ltd. Kolkata

Nepal Bangladesh Bank Ltd., Nepal

Dresdner Bank, Frankfurt Germany

American Express Bank, New York

Bank of Tokyo Mitsubishi, Kolkata

Standard Chartered Bank, Srilanka
Standard Chartered Bank, Karachi
Standard Chartered Bank, Kolkata

Shares in listed companies 1,731,329,791 859,039,546

Sumitomo Mitsui Banking Corp.

Zuercher Kantonal Bank, Zurich

Citibank AG Frankfurt Germany

Bank of Bhutan, Pheuntsholing

Shares in un-listed companies 202,814,000 41,260,000

Mashreq Bank PSC New York

United Bank Limited, Karachi

Wachovia Bank, New York

Zero Coupon Bond 457,001 5,119,000

Less: Provision for diminution in the market value of shares (150,263,000) (6,100,000
b) Outside Bangladesh

1,784,337,793 899,318,546
ICICI Bank, Mumbai
Citibank, New York

HSBC, PLC London

HSBC, New York

Citibank Mumbai

12,299,606,871 8,462,863,000

IAS 1.74 6.1 Government securities are classified accroding to

Circular No. 05 dated 26-05-2008 as follows

IFRS 7.8(a) Held for trading (HFT) 9,646,864,962 1,840,224,000

IFRS 7.8(b) Held to maturity (HTM) 623,320,196 5,718,976,854
Other Securities 245,083,920 4,343,600

10,515,269,078 7,563,544,454
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007 December, 2008 December, 2007

Taka Taka Taka Taka
Un-Listed shares and bond Market Price-2008 Cost Price 2008 Cost Price 2007
IAS 1.52 6.2 Maturity grouping of Investments as follows :
Industrial & Infrastructure Development Finance Co. Ltd. 18,814,000 18,814,000 14,260,000
On demand 1,790,447,593 735,243,600 Shares in Karmasangsthan Bank 10,000,000 10,000,000 10,000,000
Less than three months 2,069,844,767 3,468,097,297 Central Depository Bangladesh Ltd. 2,000,000 2,000,000 2,000,000
Venture Investment Partner 15,000,000 15,000,000 15,000,000
More than three months but less than one year 4,768,218,125 1,397,106,945
Zero Coupon Bond (IPDC) 457,001 457,001 5,119,000
More than one year but less than five years 1,055,327,612 1,017,991,755 STS Holding Limited 100,000,000 100,000,000 -
Above five years 2,615,768,774 1,844,423,403 Maksons Spinning Mills Limited 15,000,000 15,000,000 -
Cashlink Bangladesh Limited 42,000,000 42,000,000 -
12,299,606,871 8,462,863,000
203,271,001 203,271,001 46,379,000

IFRS 7.25 6.3 Cost and Market value of Investments as on 31.12.2008 as follows : Listed Shares Market Price-2008 Cost Price 2008 Cost Price 2007
Market Price-2008 Cost Price-2008 Market Price-2007 National Tea Company Ltd 104,600,700 43,562,852 46,751,747
Government NCC Bank Ltd. 40,628,607 45,580,677 3,705,574
EXIM Bank Ltd. 740,202,855 761,004,111 698,280,059
Treasury Bills 6,621,830,308 6,596,512,903 4,511,925,696
Beximco Pharma 83,112,120 79,632,305 6,280,619
Reverse Repo - - - National Life Insurance 290,333,277 285,242,097 16,556,580
T & T Treasury Bond 238,974,120 226,451,000 509,031,000 Rupali Bank 3,305,910 12,395,009 12,395,009
Mercantile Bank Limited 6,829,183 7,044,756 13,550,267
Bangladesh Government Treasury Bond 3,648,354,850 3,580,018,852 2,538,244,158 H R Textile 3,136 2,137 2,800
Prize Bonds 6,109,800 6,109,800 4,343,600 Singer BD. Ltd. 198,225 589,155 589,155
Trust Bank Ltd 85,640,250 117,902,126 24,186,292
10,515,269,078 10,409,092,555 7,563,544,454
Premier Bank Ltd. 9,253,755 10,864,438 10,421,063
Jamuna Bank LTD. 981,107 1,220,499 1,220,497
Investment in Shares & Bond Prime Bank Ltd. 148,833,364 161,677,755 -
National Bank Ltd. 39,393,470 39,542,992 -
Particular Number of Company Market Price-2008 Cost Price 2008 Cost Price 2007
Lafarge Surma Cement Ltd. 25,444,800 28,901,445 -
Un-Listed Securities 8 203,271,001 203,271,001 46,379,000 Meghna Petroleum. 26,331,620 54,819,893 -

Listed Secuirties 19 1,650,808,003 1,731,329,791 859,039,546 Jamuna Oil Com. Ltd. 28,588,350 64,351,512 -
1,854,079,004 1,934,600,792 905,418,546 Prime Finance 1st MF 2,000,000 2,000,000 -
Titas Gas Trans & dist.Co. 15,127,275 14,996,031 -
Listed Securities Premier Leasing International Ltd. - - 2,096,567
Islamic Finance and Ivestment - - 497,150
Investments have been recorded at cost and adequate provision for probable future losses as per
Grameen MF Ltd. - - 1,670,944
Bangladesh Bank guidelines. Market value of securities has been determined on the basis of the Heidelberg Cement BD Ltd. - - 14,873,565
value of securities at the last trading day of the year. AIMS of BD Ltd. - - 2,575,664
Eastern Housing Ltd. - - 3,385,995
Sector wise investment 1,650,808,003 1,731,329,791 859,039,546
Un-Listed Securities
IAS 1.74 6.3.1 Market price of investment those prices were decreased as on 31.12.2008
The unlisted investments are shown at cost because the fair value cannot be measured reliably Differences
Sector Number of Company Market Price-2008 Cost Price 2008 Cost Price 2007 Name of the Company Cost price Market price (Provision to be
Bank and NBFI 4 44,271,001 44,271,001 44,379,000
NCC Bank Ltd. 45,580,677 40,628,607 (4,952,070)
Manufacturing 1 144,000,000 144,000,000 - EXIM Bank Ltd. 761,004,111 740,202,855 (20,801,256)
Others 3 15,000,000 15,000,000 2,000,000 Rupali Bank 12,395,009 3,305,910 (9,089,099)
Mercantile Bank Limited 7,044,756 6,829,183 (215,573)
8 203,271,001 203,271,001 46,379,000
Singer BD. Ltd. 589,155 198,225 (390,930)
Trust Bank Ltd 117,902,126 85,640,250 (32,261,876)
Listed securuties Premier Bank Ltd. 10,864,438 9,253,755 (1,610,683)
Jamuna Bank LTD. 1,220,499 981,107 (239,392)
Sector Number of Company Market Price-2008 Cost Price 2008 Cost Price 2007
Prime Bank Ltd. 161,677,755 148,833,364 (12,844,391)
Bank and NBFI 10 1,077,068,500 1,159,232,367 770,599,086 National Bank Ltd. 39,542,992 39,393,470 (149,522)
Insurance Companies 1 290,333,277 285,242,097 16,556,580 Lafarge Surma Cement Ltd. 28,901,445 25,444,800 (3,456,645)
Meghna Petroleum. 54,819,893 26,331,620 (28,488,273)
Fuel and Power Companies 3 70,047,245 134,167,436 -
Jamuna Oil Com. Ltd. 64,351,512 28,588,350 (35,763,162)
Manufacturing & Other 5 213,358,981 152,687,891 71,883,880
1,305,894,370 1,155,631,496 (150,262,874)
19 1,650,808,003 1,731,329,791 859,039,546 Provision maintained Tk.150,263,000/- Note - 33
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007 December, 2008 December, 2007

Taka Taka Taka Taka

IFRS 7.8(c ) 7 Loans and Advances/Investments 60,281,260,389 48,164,604,150 IAS 1.74 7.2.B Bills Purchased and Discounted 7.13
(excluding treasury bills)
IAS 1.52 7.1 Residual maturity grouping of loans and advances / Payable inside Bangladesh 3,215,631,512 2,143,263,174
investments including bills purchased and discounted Payable outside Bangladesh 841,772,973 489,710,258
On demand 3,700,315,449 1,288,428,150 4,057,404,485 2,632,973,432
Not more than three months 16,314,362,940 7,629,873,000 60,281,260,389 48,164,604,150
More than three months but not more than one year 19,101,671,000 21,301,072,000
More than one year but not more than five years 14,129,416,000 11,400,045,000 IAS 1.74 7.3 Net Performing loans and advances / Investments
More than five years 7,035,495,000 6,545,186,000 Gross loans an advances / investments 7 60,281,260,389 48,164,604,150
60,281,260,389 48,164,604,150 Non-performing loans and advances / investments (2,484,331,340) (1,813,938,231)
57,796,929,049 46,350,665,919

IAS 1.74 7.2 Loans, Cash Credits and Overdrafts:

IAS 1.75 7.4 Loans and advances / Investments on the basis of
significant concentration including bills purchased
7.2.A Head-wise Loans, Cash Credits and Overdrafts: and discounted
Inside Bangladesh: i) Advances to allied concerns of Directors 29,774,799 40,187,521
Cash credit and overdrafts 11,249,069,741 9,715,997,777 ii) Advances to Chief Executive and Other Senior Executives 28,588,900 53,298,703

Demand loan 2,252,834,958 843,265,091 iii) Advances to Customers' Group:

Time Loan 8,243,657,394 7,497,589,173 Advances to large and medium industries 7.6 27,266,664,000 20,754,550,000

Term Loan 20,834,931,494 18,007,846,511 Advances to small and cottage industries 7.6 38,436,000 46,097,000

Commercial Lending 18,510,648,000 15,439,450,000
Consumer Credit Scheme 205,875,132 175,858,566
Export Financing 3,907,500,000 2,269,973,000
Bills against Letter of Credit (BLC) 687,670,748 318,201,550
House Building Loan 3,923,511,000 2,793,277,000
Loan against Trust Receipt (LTR) 8,923,914,060 6,351,969,326
Consumer Credit Scheme 205,875,000 175,858,000
Export Development Fund (EDF) 190,404,781 134,373,446
Other Loans and Advances 6,370,262,690 6,591,912,926
Advances-packaging Credit (PC) 675,457,380 464,677,898
60,281,260,389 48,164,604,150
House Building Loan-Staff 118,449,073 117,493,930
Loan-Credit Card 241,859,354 168,058,878
IAS 1.74 7.5 Number of clients, with amount of outstanding and
Education Loans 6,016,277 390,771
classified loans, to whom loans and advances
Loan against Foreign Bills - 5,492,421
sanctioned more than10% of total capital of the bank:
53,630,140,393 43,801,215,338
Number of the clients 30 35
Investments - IBBs Amount of outstanding advances (Tk.) 30,933,010,000 23,516,200,000
Bai-Muajjal - Investment 1,099,169,899 636,570,866 Amount of classified advances (Tk.) - 62,200,000
Murabaha - Investment 260,938,825 231,192,865 Amount of recovery/rescheduling thereon (Tk.) - -
Hire Purchase - Investment 852,462,430 698,658,393
Izarah - Investment 108,333,829 -
Quard against MTDR 272,810,527 163,993,256
2,593,715,511 1,730,415,380
56,223,855,904 45,531,630,718
Outside Bangladesh - -
56,223,855,904 45,531,630,718
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007

Taka Taka December, 2008 December, 2007
Taka Taka
Name of clients Outstanding (Taka in million) Total (Taka in Total (Taka in
Million) million)
Funded Non-Funded 7.6 Industry-wise Loans and Advances
Textile and Garments Industries 15,280,400,000 12,113,015,000
Deshbandhu Sugar Mills Ltd. and its
Food and allied Industries 2,789,949,000 2,045,499,000
related concern, 903.90 155.20 1,059.10 894.90
Metro Spinning Limited 516.50 79.50 596.00 506.90 Pharmaceutical Industries 263,387,000 420,670,000
Generation Next Fashions Limited 684.30 380.40 1,064.70 760.20 Chemical, Cosmetics, etc. 1,872,576,000 1,366,564,000
Faar Ceramics Limited 714.60 28.00 742.60 584.80 Cement and Ceramic Industries 757,014,000 720,164,000
Rupayan Housing Estate Limited 759.40 100.00 859.40 - Service Industries 922,871,000 704,309,000
Nurjahan Super Oil Limited 552.80 609.70 1,162.50 - Other Industries 5,418,903,000 3,430,426,000
Grameen Knitwear Limited - - - 418.50 27,305,100,000 20,800,647,000
United Edible Oils ltd. and its related concern 970.80 377.50 1,348.30 1,352.20
MAB Spinning ltd. And its related concern 902.10 268.50 1,170.60 650.70 IFRS 8.20 7.7 Geographical Location-wise Loans and Advances:
Hussain Pulp and Paper Mills ltd. a) Urban:
and its related concern - 579.30 Dhaka Region 71.87% 43,323,627,434 72.15% 34,748,820,292
Chittagong Asian Apparels ltd. and its Chittagong Region 22.62% 13,634,943,021 21.72% 10,463,535,150
related concern 149.40 482.80 632.20 478.00 Rajshahi Region 0.12% 70,101,611 - -
Maksons Spinning Mills 525.60 124.80 650.40 643.40 Sylhet Region 3.20% 1,929,206,471 4.21% 2,026,333,659
Apurupa Garments, Burlingtons Limited - - - 573.50 Khulna Region 0.51% 305,228,313 0.53% 256,413,240
Chaity Composite ltd. and its related concern 1,145.80 203.30 1,349.10 1,140.40 98.31% 59,263,106,850 98.61% 47,495,102,340
Khaleque Knitting and Garments Industries b) Rural:
(Pvt.) ltd. and its related concern 751.70 1,906.80 2,658.50 1,473.70 Dhaka Region 0.94% 567,140,625 0.51% 246,630,384
ACS Textile (Bangladesh) Limited 850.20 1,033.70 1,883.90 857.60 Chittagong Region 0.53% 322,239,829 0.62% 300,083,048
PHP Continuous Galvanizing Mills ltd. Rajshahi Region 0.00% - - -
And its related concern 392.00 - 392.00 719.30 Sylhet Region 0.21% 128,773,085 0.25% 122,788,378
Mother Steel - - - 20.70 Khulna Region - - - -
- - - -
Mostafa Paper Complex ltd. and its
related concern 606.30 4.60 610.90 - 1.69% 1,018,153,539 1.39% 669,501,810

100% 60,281,260,389 100% 48,164,604,150
J. K. Enterprise and its related concern 158.80 374.70 533.50 192.50
% of % of Total
Bay Leasing and Investment Limited 484.20 229.80 714.00 386.60
IFRS 8.20 7.8 Sector -wise Loans & Advances Total Loans
Masuma Khatun Textile Industries ltd. 587.40 369.50 956.90 752.60
Agriculture, Fishing, forestry and dairy firm 0.42% 255,800,000 0.05% 22,517,044
Marrine Vegetable Oils ltd. and its Industry (Jute, textile, garments, chemicals, cements, etc.) 26.88% 16,200,800,000 28.84% 13,890,708,164
related concern 478.50 1,359.80 1,838.30 916.90
Working Capital finance 18.39% 11,085,700,000 14.68% 7,071,406,058
Abul Khair Steel Industries ltd. and its Export Credit 6.48% 3,907,500,000 4.71% 2,269,972,740
related concern 564.40 1,045.50 1,609.90 1,757.20
Commercial Credit 39.07% 23,554,000,000 31.27% 15,061,341,084
Nasa Taipei Spinners ltd. and its Small and Cottage industries 0.03% 19,000,000 0.04% 20,869,185
related concern 276.10 79.40 355.50 634.70
Miscellaneous 8.72% 5,258,460,389 20.40% 9,827,789,875
New Line Clothings ltd. and its related concern - - - 502.80 100% 60,281,260,389 100% 48,164,604,150
Partex Sugar Mills ltd. and its related concern 835.00 98.20 933.20 913.20
S. Alam Colled Rolled Steel Limited 599.60 475.20 1,074.80 723.90 IAS 1.74 7.9 Classification of advances as per Bangladesh Bank circular
Appollo Ispat Complex ltd. and its Unclassified
related concern 803.50 138.00 941.50 928.20 Standard including staff loan 93.86% 56,580,938,329 95.25% 45,878,389,693
Mahbub Spinning ltd. and its related concern - - - 547.40 Special Mention Account (SMA) 2.02% 1,215,990,720 0.98% 472,276,226
Refat Garments ltd. and its related concern 211.90 982.40 1,194.30 815.90 95.88% 57,796,929,049 96.23% 46,350,665,919
Biswas Fashion ltd and its related concern 607.40 690.20 1,297.60 536.00 Classified
Fahami Apparels ltd. and its related concern 1,162.90 251.21 1,414.11 1,216.20 Substandard 0.46% 275,199,674 0.25% 120,300,292
Doubtful 1.07% 643,482,163 0.09% 45,581,283
Concrete and Steel Technologies ltd.
Bad / Loss 2.60% 1,565,649,503 3.42% 1,648,056,656
And its related concern 387.80 124.50 512.30 310.10
4.12% 2,484,331,340 3.77% 1,813,938,231
Ahmed Muztaba Steel Industris Limited - 766.80 766.80 - 100% 60,281,260,389 100% 48,164,604,150
KYCR Coil Industries ltd. and its
related concern 238.50 371.60 610.10 -
Kabir Steel ltd. And its related concern - - - 727.90
17,821.40 13,111.61 30,933.01 23,516.20
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007 December, 2008 December, 2007

Taka Taka Taka Taka
7.9.1 Particulars of required provision for loans and advances / investments 7.11 Suit file by the Bank (Branch wise details)
Status Principal 1,347,007,249 806,421,916
General provision Base for provision Rate (%) Provision Agrabad 196,738,451 210,808,793
Loans / investment (Excluding SMA) 56,580,938,345 * Variance 581,421,898 473,408,909 Khatungonj 3,863,240 6,990,747
Special Mention Account (SMA) 1,197,822,083 5% 59,891,104 22,794,507 Laldighirpar 5,796,831 1,750,000
641,313,002 496,203,416 Imamgonj 383,144,984 14,440,000
General provision is kept @ 1% on general loans and advances / investments and 2% on small enterprise financing and Bangshal 201,686,619 255,705,906
5% on consumer financing Jubilee Road 31,525,899 72,650,102
Status Moulvibazar 11,784,230 2,798,975
Specific provision Base for provision Rate (%) Provision Provision Gulshan 146,937,448 162,973,404
required required Khulna 22,037,443 18,892,545
Sub-standard 101,586,017 20% 20,317,203 16,014,738 Dhanmondi 133,992,120 11,016,750
Doubtful 537,495,050 50% 268,747,547 11,675,263 Uttara 11,646,487 9,607,092
Bad / Loss 805,238,059 100% 805,238,059 1,046,085,346 Chouhatta 3,577,014 12,380,490
1,094,302,809 1,073,775,347
Kawranbazar 119,545 376,658
Required provision for loans and advances / investments 1,735,615,811 1,569,978,763
Shahjalal Uposhahar 1,881,000 1,521,120
Agargoan 414,067 -
Total provision maintained Note-12.1 & 12.2 1,735,651,047 1,575,932,628
Excess / (shortfall) provision at 31 December 2008 35,236 5,953,865 Kulaura 2,970,486 -
Hetimgonj 12,793,332 985,034
2,517,916,445 1,589,319,532
IAS 1.74 7.10 Particulars of Advances / Investments IFRS 7.30 7.12 Listing of assets pledged as security/collaterals
i) Debts considered good in respect of which the Bank is Nature of the secured assets:
fully secured. 41,690,198,434 34,945,899,145 Collateral of Land and Building 33,063,299,389 25,297,507,026
ii) Debts considered good for which the bank holds no Share Certificate 895,502,734 710,871,501
other security than the debtor's personal security 6,584,253,303 4,943,199,581 Local Banks and Financial Inst. Guarantee 724,073,453 50,000,000
iii) Debts considered good secured by the personal liabilities Government Guarantee - 20,479,000
of one or more parties in addition to the personal Foreign Banks Guarantee 3,680,000 7,450,000
security of the debtors 10,441,159,148 6,461,567,194 Export Document 1,413,399,218 3,512,565,066
iv) Loans/ adversely classified provision not maintained Fixed deposit receipts ( FDR/DBS) 3,265,439,375 3,233,688,878
thereagainst - - FDR of other Banks 288,603,164 287,195,000

Government Bonds - 5,477,000
v) Debts due by directors or officers of the bank
or any of them either severally or jointly with any Personal guarantee 6,298,420,283 7,072,990,003
other persons. 149,124,468 167,102,816 Others Security 14,328,842,773 7,966,380,676
60,281,260,389 48,164,604,150
vi) Debts due by companies or firms in which the
directors or Officers of the Bank are interested as IAS 1.74 7.2.B Bills Purchased and Discounted 7.13
Directors, partners or managing agents or in the (excluding treasury bills)
case of private companies, as members. 29,774,798 40,187,521 Payable inside Bangladesh 3,215,631,512 2,143,263,174
vii) Maximum total amount of advances, including temporary Payable outside Bangladesh 841,772,973 489,710,258
advances made at any time during the year to directors or 4,057,404,485 2,632,973,432
managers or officers of the bank or any of them either
7.13 Maturity grouping of bills discounted and purchased
severally or jointly with any other persons. 154,246,556 194,602,816
Within one month 1,843,413,485 954,120,432
viii) Maximum total amount of advances, including temporary More than one month but less than three months 1,065,843,000 964,490,000
advances granted during the year to the companies or firms
More than three months but less than six months 989,779,000 649,029,000
in which any of the directors of the bank are interested as
More than six months 158,369,000 65,334,000
partners or managing agent or, in case of private
4,057,404,485 2,632,973,432
companies as members. 29,774,798 40,188,000
ix) Due from other banking companies
IAS 16.73 8 Fixed assets including premises, furniture and fixtures
x) Amount of classified loan on which interest has not been
Land 1,656,437,566 749,684,876
charged, should be mentioned as follows;
Buildings 636,888,909 658,189,511
a) Decrease / Increase in provision; 18,403,420 (54,738,320) Furniture and fixtures 368,775,785 277,325,868
Amount of loan written off 318,699,103 200,132,000 Office equipment and machinery 250,786,714 174,117,591
Amount realized against loan previously written off; 26,107,000 10,549,836 Bank's vehicles 17,137,922 21,792,481
b) Amount of provision kept against loan classified as 'bad/loss' 2,930,026,896 1,881,110,327
on the date of preparing the balance sheet 805,238,059 1,046,085,346 Less: Accumulated depreciation
c) Interest creditable to the Interest suspense A/C; 333,945,475 222,480,287 Buildings 58,853,699 41,257,674
xi) Loans written-off
Furniture and fixtures 79,739,255 52,084,157
Office equipment and machinery 94,428,103 63,987,124
- Current year 318,699,103 200,132,000
Bank's vehicles 11,448,189 15,671,200
Cumulative to - date 628,707,103 310,008,000 244,469,246 173,000,155
-The amount of written off loans for which lawsuit filed 980,813,671 458,394,555 Written down value at the end of the year 2,685,557,650 1,708,110,172
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007

Taka Taka

Written down
value at 31
December 2008










IAS 1.74 9 Other Assets
i) Investment in Shares of subsidiary companies:
- In Bangladesh - -
- Outside Bangladesh - -
balance at 31
etc. December 2008









ii) Stationery, stamps, printing materials etc. 50,627,139 39,713,241
iii) Advance rent and advertisement 42,374,098 50,492,613
iv) Interest accrued on investment but not collected,
commission & brokerage receivable on shares and
debenture and other income receivable 230,694,527 169,464,654
v) Security Deposit 1,133,621 1,032,969

for disposals









vi) Preliminary, formation and organization expenses,
renovation / development and prepaid expenses 178,842,181 144,321,906
vii) Branch adjustment (net and reconciled) 9.1 371,805,560 58,215,272
viii) Suspense account 11,784,900 890,089

ix) Silver - -
for the year









x) Others 9.2 377,275,420 306,621,900
1,264,537,446 770,752,643
No fictitious assets has been incurred during the year
Balance at 1
January 2008









9.1 Branch Adjustment (net & reconciled)
IAS 1.75
General Accounts Debit 21,543,121,377 15,035,335,554
General Accounts Credit (21,171,315,817) (14,977,120,282)
371,805,560 58,215,272
Branch adjustments account represents outstanding Inter-branch and Head Office transactions (Net) originated
Balance at
31 December









but yet to be responded at the balance sheet date. However, the status of unresponded entries of 31.12.2008
are given below:
Number of Unresponded entries
Unresponded entries (Amount Taka)

Dr. Cr. Dr. Cr.


during the









Upto 3 months 794 963 1,463,822,560 1,089,628,000
Over 3 months but within 6 months 26 19 5,269,000 7,607,000
Over 6 months but within 1 year 0 2 - 51,000
Over 1 year but within 5 years - - - -

the year









820 984 1,469,091,560 1,097,286,000

8.1 Fixed assets including premises and furniture and fixtures

There is no provision has been made against un-reconciled/un-respondent entries since there are no
unreconciled entries one year and above.
9.2 Break-up of Others:
IAS 1.75
the year










Accounts Receivable Others 371,638,320 296,391,094

ATM Teller A/C 4,910,600 10,226,100
DD paid without Advice 726,500 4,706
377,275,420 306,621,900

IFRS 7.7 10 Borrowing from other Banks including Financial Institutions & Agents:
Balance at 1
January 2008










In Bangladesh 1,561,993,125 6,509,000

Outside Bangladesh - -
1,561,993,125 6,509,000
In Bangladesh
Refinance against agro-based credit from Bangladesh Bank 2,605,000 4,225,000
Refinance against SME loan from Bangladesh Bank 109,388,125 2,284,000
Borrowing against securities from Bangladesh Bank 100,000,000 -
Call loan from Other Bank 1,350,000,000 -
Residence of executives :

1,561,993,125 6,509,000
Furniture and Fixtures

Furniture and Fixtures

Furniture and Fixtures

Electrical Appliances

Electrical Appliances

Electrical Appliances

Security against borrowings from other banks, financial

Grand Total -2007
Category of Assets

Office Appliances

institutions and agents

Motor Vehicles

Motor Vehicles
Leased Assets:

Grand Total

Secured 1,561,993,125 6,509,000



IAS 16.73

Unsecured - -
1,561,993,125 6,509,000
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007 December, 2008 December, 2007

Taka Taka Taka Taka
IAS 1.52 10.1 Maturity grouping of borrowings IAS 1.74 11.3 Inter-bank deposits
Pubali Bank 150,000,000 -
Repable on demand 1,350,000,000 - United Commercial Bank Limited 257,524,000 -
Repable within one month 1,827,000 1,437,500 Basic Bank Limited 500,000,000 450,000,000
Over one month but within 6 months 100,389,000 - Exim Bank Limited 214,044,000 148,206,000
IFIC Bank Limited 219,000 223,000
Over six months but within one year 389,000 -
The City Bank Limited 300,000,000 50,213,000
Over one year 109,388,125 5,071,500 Mercantile Bank Limited 1,115,000 108,000
1,561,993,125 6,509,000 Arab Bangladesh Bank Limited 200,000,000 1,000
Social Investment Bank Limited 405,498,000 461,560,000
National Bank Limited - 200,000,000
IFRS 7.7 11 Deposits and other accounts 11.2 Janata Bank 200,000,000 -
Inter Bank deposits 11.3 3,452,177,000 2,927,405,000 Sonali Bank Ltd 200,000,000 80,000,000
Other deposits 11.4 65,262,495,575 52,546,643,109 Dhaka Bank Limited 2,000 -
Rupali Bank Limited 30,000,000 -
68,714,672,575 55,474,048,109
Shahjalal Islami Bank Limited 611,008,000 520,710,000
IAS 1.74 11.1 Deposits and other accounts Al-Arafa Islami Bank Limited 11,549,000 303,534,000
Current deposits and other accounts Islami Bank Bangladesh Limited 7,535,000 241,067,000
Current / Al-wadeeah current deposits 1,919,797,739 1,565,669,748 Bank Al - Falah - 50,000,000
Trust Bank Limited - 200,000,000
Foreign currency deposits 381,327,015 311,529,151 Dutch Bangla Bank Limited 300,182,000 200,000,000
Sundry deposits 11.1.1 2,934,517,797 2,062,596,046 Rajshahi Unnyan Bank 50,000,000 -
5,235,642,551 3,939,794,945 Accrued Interest 13,501,000 21,783,000
Bills payable 3,452,177,000 2,927,405,000
Payment order issued 810,645,703 660,430,840 IAS 1.52 11.4 Analysis of residual maturity grouping of Deposit and other Account
Demand draft 41,486,583 27,850,926 Inter-Bank Deposits
852,132,286 688,281,766 Repayable on demand 403,000 751,000
Repayable within 1 month 1,558,273,000 2,154,871,000
Savings bank / Mudaraba savings deposits 3,477,918,663 3,433,491,229
Over 1 month but within 6 months 1,893,501,000 771,783,000
Fixed deposits Over 6 months but within 1 year - -
Fixed deposits / Mudaraba fixed deposits 50,505,264,784 40,368,378,713 Over 1 year but within 5 years - -
Short term / Mudaraba short term deposits 3,680,236,893 3,988,750,122 Over 5 years but within 10 years - -

3,452,177,000 2,927,405,000
Scheme deposits 4,963,477,398 3,055,351,334 Other Deposits
59,148,979,075 47,412,480,169 Repayable on demand 2,952,248,575 4,164,794,109
68,714,672,575 55,474,048,109 Repayable within 1 month 9,729,756,000 3,134,844,000
Over 1 month but within 6 months 16,976,793,000 17,168,877,000
Over 6 months but within 1 year 26,058,541,000 15,040,544,000
IAS 1.75 11.1.1 Sundry Deposits Over 1 year but within 5 years 6,829,205,000 11,339,586,000
Margin under letter of credit 2,097,434,417 1,331,753,141 Over 5 years but within 10 years 2,715,952,000 1,697,998,000
Margin against IBP 18,119,156 15,555,208 65,262,495,575 52,546,643,109
68,714,672,575 55,474,048,109
Margin under letter of guarantee 434,719,499 431,452,299
Margin under Export Procceds 6,846,607 - IAS 1.74 12 Other liabilities
Deposit held against FDBP/ IDBP, export bills 10,151,710 11,819,274 Provision for classified advances 12.1 1,094,336,047 1,075,932,628
Dormant Accounts - 1,237,025 Provision for unclassified advances 12.2 641,315,000 500,000,000
General Provision on Off-Balance Sheet Exposures 12.3 313,030,000 107,100,000
D.A.D. Back to Back Foreign currency - 12,612,583 Interest suspense 12.4 333,945,475 222,480,287
Accounts Payable 11,748,631 1,693,570 Provision for taxation 12.5 771,507,019 479,032,331
Telegraphic Transfer 1,833,265 2,734,703 Provision for deferred tax 12.6 52,631,094 32,792,067
Provision for Superannuation Fund - 2,500,000
Mail Transfer - 6,052,100
SEBL Foundation 15,000,000 50,000,000
Remittance awaiting disposal 244,699,196 114,973,186 Obligation under lease capital 12.8 53,806,222 87,148,823
Others 108,965,316 132,712,958 Accrued expenses 9,238,990 3,936,993
2,934,517,797 2,062,596,046 Interest payable on borrowings 4,967,467 9,121,674
Accounts payable - Bangladesh Bank (local currency) 821,413 1,512,101
IFRS 8.20 11.2 Sector-wise deposits
Accounts payable - Others 113,077,756 95,355,889
Government 2,965,196,000 1,369,704,000 Provision for bonus 287,501 287,501
Deposit money banks 3,452,177,000 2,927,405,000 Provision for Other Assets 12.9 24,005,181 13,505,181
Other public 4,114,349,000 4,012,045,000 Unearned income on treasury bills 28,591 416,077
Foreign currency 381,327,015 855,351,854 Withholding tax on interest on deposits 119,090,032 64,142,280
Provision for Audit Fees 500,000 400,000
Private 57,801,623,560 46,309,542,255
Provision for Nostro Accounts 12.10 - -
68,714,672,575 55,474,048,109 3,547,587,788 2,745,663,830
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007 December, 2008 December, 2007

Taka Taka Taka Taka
IAS 1.74
IAS 37.84 12.1 Provision for classified loans and advances 12.8 Obligation under Capital lease/Finance lease
Opening balance 1,075,932,628 1,117,350,408
This represents fixed assets acquired under lease. Lease rentals include financial charges which have
Fully provided debts written off during the year (337,446,580) (181,417,780)
Specific provision for the year 355,850,000 140,000,000 been used as discounting factor and are payable on monthly basis. The Company has an option to
Closing balance 1,094,336,047 1,075,932,628 purchase the assets upon completion of lease period and has intention to exercise the option.

IAS 1.74
IAS 37.84 12.2 Provision for unclassified loans and advances Leased Obligation on Fixed Assets
Opening balance 500,000,000 420,000,000 Leased Obligation on Furniture and Fixture 32,959,170 54,981,676
Addition during the year 141,315,000 80,000,000
Leased Obligation on Electrical Appliance 15,068,300 25,648,784
Closing balance 641,315,000 500,000,000
Leased Obligation on Motor Vehicles 5,778,752 6,518,363
IAS 37.84 12.3 Provision for Off-Balance Sheet exposures 53,806,222 87,148,823
Opening balance 107,100,000 -
Addition during the year 205,930,000 107,100,000 12.8.1 Movement of leased obligation on Fixed Assets:
Closing balance 313,030,000 107,100,000 Opening balance as on 1st January, 2008 87,148,823 115,185,406
Less: Adjustment during the year (34,666,600) (34,169,083)
IAS 37.84 12.4 Interest Suspense Account
Interest Suspense at the beginning of the year 222,480,287 133,711,235 Add: Addition during the year 1,324,000 6,132,500
IAS 1.75
Add: Amount transferred to Closing balance as on 31st December, 2008 53,806,222 87,148,823
"Interest Suspense" A/c during the year 702,306,312 429,555,638
Less: Amount recovered in 12.8.2 Aging analysis of liabilities under finance lease:
"Interest Suspense" A/c during the year (571,227,999) (322,072,365)
Less: Amount written-off during the year (19,613,126) (18,714,220) 2008 2007
Balance at the end of the year 333,945,475 222,480,287 Financial Financial
IAS 17.31(b)
Aging analysis of liabilites Minimum charge for Principal Minimum charge for Principal
IAS 12.80 12.5 Provision for income tax lease payment future period Outstanding lease payment future period Outstanding
Advance tax
Payable within 1 year 42,751,105 4,488,722 38,262,383 42,657,570 8,581,977 34,075,593
Balance of advance income tax on 1st January, 2008 2,266,743,500 1,118,710,158
Paid during the year 955,272,937 1,148,033,342 Payable more than 1 year

Settlement of previous years tax liabilities (1,481,594,351) - but less than 2 years 14,894,060 717,469 14,176,591 42,607,810 4,381,258 38,226,552
1,740,422,086 2,266,743,500 Payable more than 2 years
Provision but less than 5 years 1,447,105 79,857 1,367,248 15,538,240 691,562 14,846,678
Balance of provision on 1st January, 2008 2,745,775,831 1,391,142,049 59,092,270 5,286,048 53,806,222 100,803,620 13,654,797 87,148,823
Provision for previous year - 168,994,743
Provision made during the year (Current tax) 1,247,747,625 1,185,639,039 The average lease terms of the leased assets taken under finance lease is 48 months and all leases are
Settlement of previous years tax liability (1,481,594,351) - on fixed repayment basis. The Company's obligation under finance lease are secured by the lessor's
2,511,929,105 2,745,775,831 charge over the lease assets.
Net balance at 31st December, 2008 771,507,019 479,032,331
12.9 Provision for Other Assets
* Corporate tax position of the bank has been shown in Annexure - B
Balance, brought forward 13,505,181 8,569,807
IAS 37.85 Provision for current tax of Tk.1,247,747,625 has been made @ 45% as prescribed by Finance Act, IAS 37.84
Adjustment during the year - (64,626)
2008 of the accounting profit made by the Bank after considering some of the add backs to income
and disallowances of expenditure as per Income Tax Ordinance and Rules 1984 and incompliance of Addition during the year 10,500,000 5,000,000
para 46 of BAS 12 "Income Tax". Balance, carry forward 24,005,181 13,505,181

IAS 12.79 12.6 Deferred tax liability 12.10 Status of unresponded entries of Nostro Accounts (Our Books) as on 31 December, 2008 are given below;
Balance as on 1st January, 2008 32,792,067 13,353,300 Number of Unresponded entries
Addition during the year 19,839,027 19,438,767 In Foreign Currency Unresponded entries (Amount Taka)
Balance as on 31st December, 2008 52,631,094 32,792,067
Dr. Cr. Dr. Cr.
IAS 37.85 To maintain the deferred tax liability of Tk.52,631,094 as at 31 December 2008 a deferred tax Upto 3 months 64 86 5,626,915 2,598,120
provision of Tk.19,839,027 has been made during the year 2008 as per para 47 of BAS-12 "Income Over 3 months but within 6 months - 2 - 36,399
Over 6 months but within 1 year - - - -
IAS 1.74 12.7 Provision for Taxation during the year Over 1 year but within 5 years - - - -
Provision for previous year - 168,994,743 64 88 5,626,915 2,634,519
Current tax provision 1,247,747,625 1,185,639,039
Deferred tax provision 19,839,027 19,438,767 As per Circular No.FEOD(FEMO)/01/2005-677 dated 13 September, 2005 there is no debit entries more
1,267,586,652 1,374,072,549 than three month. So provision is not required for existing unresponded Nostro entries.
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007 December, 2008 December, 2007

Taka Taka Taka Taka
IAS 1.76 13 Share Capital
IAS 1.76 13.6 Name of Directors and their Shareholding as on December 31, 2008
13.1 Authorized
Sl. No. Name of Directors Status as on Position as on 31.12.2008 Position as on 31.12.2007
IAS 1.76(a)(i) 35,000,000 ordinary shares of Tk.100 each 3,500,000,000 3,500,000,000 31.12.2008

1 Mr. Alamgir Kabir, FCA Chairman 307,970 shares of Tk.100/- 206,376 shares of Tk.100/-
IAS 1.76(a)(ii) 13.2 Issued, subscribed and fully paid up Capital
each total Tk.30,797,000/- each total Tk.20,637,600/-
14,713,696 Ordinary shares of Tk.100.00 each issued for cash 1,471,369,600 1,471,369,600
2 Mr. Ragib Ali Vice Chairman 803,048 shares of Tk.100/- 571,147 shares of Tk.100/-
13,808,282 Ordinary shares of Tk.100.00 each issued as bonus shares 1,380,828,200 810,388,700
each total Tk.80,304,800/- each total Tk.57,114,700/-
28,521,978 2,852,197,800 2,281,758,300
3 Mr. M. A. Kashem Director 662,422 shares of Tk.100/- 529,938 shares of Tk.100/-
each total Tk.66,242,200/- each total Tk.52,993,800/-
IAS 1.76(a)(ii) 13.3 Share Capital at a Glance from inception
4 Mr. Azim Uddin Ahmed Director 780,435 shares of Tk.100/- 574,987 shares of Tk.100/-
Banking year Particulars Number of Shares Capital Amount in Taka Cumulative
each total Tk.78,043,500/- each total Tk.57,498,700/-
1995 Opening / Sponsors Capital 1,000,000 100,000,000 100,000,000
1996 - - - 100,000,000 5 Bangla Capital Limited Director 42,120 shares of Tk.100/- 33,696 shares of Tk.100/-
Represented by each total Tk.4,212,000/- each total Tk.3,369,600/-
1997 25% Stock Dividend 250,000 25,000,000 125,000,000
Mr. Tahnoun A. Harun
1998 20% Stock Dividend 250,000 25,000,000 150,000,000
6 Mrs. Jusna Ara Kashem Director 4,49,502 shares of Tk.100/- 359,602 shares of Tk.100/-
1999 Initial Public Offer (IPO) 1,500,000 150,000,000 300,000,000
each total Tk.44,950,200/- each total Tk.35,960,200/-
2000 10% Stock Dividend 300,000 30,000,000 330,000,000
7 Mrs. Duluma Ahmed Director 585,001 shares of Tk.100/- 452,001 shares of Tk.100/-
2001 10% Stock Dividend 330,000 33,000,000 363,000,000
each total Tk.58,500,100/- each total Tk.45,200,100/-
2002 10% Stock Dividend 363,000 36,300,000 399,300,000
8 Mr. Syed Shahid Ali Director 118,955 shares of Tk.100/- 79,164 shares of Tk.100/-
2003 Right Issue @2:1 1,650,000 165,000,000 564,300,000
each total Tk.11,895,500/- each total Tk.7,916,400/-
20% Stock Dividend 1,128,600 112,860,000 677,160,000
9 Mrs. Sirat Monira Director 16,847 shares of Tk.100/- 13,478 shares of Tk.100/-
2004 30% Stock Dividend 2,031,480 203,148,000 880,308,000
each total Tk.1,684,700/- each total Tk.1,347,800/-
2005 20% Stock Dividend 1,760,616 176,061,600 1,056,369,600
10 Karnafuli Tea Co. Limited Director 5,043 shares of Tk.100/- 4,043 shares of Tk.100/-
2006 Right Issue @1:1 10,563,696 1,056,369,600 2,112,739,200

Represented by each total Tk.504,300/- each total Tk.404,300/-
8% Stock Dividend 1,690,191 169,019,100 2,281,758,300 Mr. Abdul Hye
2007 25% Stock Dividend 5,704,395 570,439,500 2,852,197,800
11 Dr. Zaidi Sattar Independent Director - -
12 Mr. A. H. M. Moazzem Depositor Director - -
IAS 1.76(a)(vi) 13.4 Shareholding position was as follows Hossain
Face Value / Taka
Number Percentage December, 2008 December, 2007
IAS 1.124B(d) 13.7 Capital Adequacy of the Bank
Sponsors 8,237,582 28.88% 823,758,200 659,007,600
Calculated as per BRPD Circular no. 10 issued by Bangladesh Bank on 25 November 2002 and subsequently
Financial Institutions & Investor A/C holders 6,782,842 23.78% 678,284,200 421,264,000 amended Circular No. 3 dated 9 May 2004 and BRPD circular No.-12 dated 05 November, 2007.
General Public & Others 13,501,554 47.34% 1,350,155,400 1,201,486,700
28,521,978 100% 2,852,197,800 2,281,758,300 Total assets of the bank including off-balance sheet items 112,761,231,529 86,041,298,619

IAS 1.76 13.5 Classification of shareholders by holding Total risk weighted assets 13.7.3 68,830,874,500 49,777,444,100
Number of holders % of Total holding Required capital @ 10% of risk weighted assets 6,883,087,450 4,977,744,410
31-Dec-08 31-Dec-07 December, 2008 December, 2007 Capital held: 13.7.2
Less than 500 shares 10,884 8,337 3.55 3.14 Core capital 6,103,820,582 5,573,849,291
501 to 5,000 shares 1,378 1,053 6.30 5.86 Supplementary capital 1,553,191,141 894,511,928
5,001 to 10,000 shares 72 69 1.83 2.22 Total Capital 7,657,011,723 6,468,361,219
10,001 to 20,000 shares 59 53 2.89 3.63 Surplus/ (deficit) 773,924,273 1,490,616,809
20,001 to 30,000 shares 20 11 1.78 1.16 Percentage of capital held against risk weighted assets 11.12% 13.00%
30,001 to 40,000 shares 10 24 1.25 3.66
13.7.1 Capital requirement
40,001 to 50,000 shares 22 14 3.48 2.83
Required Held Required Held
50,001 to 100,000 shares 30 27 7.70 9.12
100,001 to 1,000,000 shares 59 46 56.44 49.51 Tier - I 5.00% 8.87% 5.00% 11.20%
Tier - II 2.26% 1.80%
Over 1,000,000 shares 2 2 14.78 18.87
12,536 9,636 100.00 100.00 10.00% 11.12% 10.00% 13.00%
Notes to the Financial Statements for the year ended 31 December 2008 Notes to the Financial Statements for the year ended 31 December 2008

December, 2008 December, 2007 December, 2008 December, 2007

Taka Taka Taka Taka
Constituents of Capital IAS 1.74 14 Statutory Reserve
Balance brought forward 1,544,287,000 1,024,878,000
In terms of section 13 (2) of the Bank Companies Act, 1991 and Bangladesh Bank BRPD circulars Addition during the year 430,964,800 519,409,000
No.01, 14 and 10 dated January 08, 1996, November 16, 1996, November 25, 2002 and November
05, 2007 respectively, required capital of the Bank at the close of business on 31 December 2008 was Balance carried forward 1,975,251,800 1,544,287,000
Taka 6,883,087,450 as against available core capital of Taka 6,103,820,582 and supplementary capital
of Taka 1,553,191,141 making a total capital of Taka 7,657,011,723 thereby showing a surplus capital IAS 1.74 15 General Reserve
/ equity of Taka 773,924,273 at that date. Details are shown below: Opening balance 247,650,000 27,650,000
Addition during the year - 220,000,000
13.7.2 Core capital (Tier-I) Closing balance 247,650,000 247,650,000
Paid-up Capital 2,852,197,800 2,281,758,300
Non-repayable share premium account 485,930,025 1,056,369,600 16 Others Reserve
Statutory Reserve 1,975,251,800 1,544,287,000
General Reserve 247,650,000 247,650,000 IAS 1.116 16.1 Revaluation reserve of Land and buildings
Retained Earnings 542,790,957 443,784,391 Opening balance 566,415,764 231,662,460
6,103,820,582 5,573,849,291 Addition during the year 614,949,515 334,753,304
Supplementary capital (Tier-II) Closing balance 1,181,365,279 566,415,764
General Provision maintained against unclassified
loans / investments 641,315,000 500,000,000
Revaluation reserve Government Securities
General Provision on Off-Balance Sheet Exposures 313,030,000 107,100,000
Opening balance - -
Exchange Equalization Account 4,204,046 4,204,046
Addition during the year from HFT 59,965,614 -
Assets Revaluation Reserve 590,682,640 283,207,882
Addition during the year from HTM 7,918,910 -
Revaluation Reserves of HTM Securities 3,959,455 -
Closing balance 67,884,524 -
1,553,191,141 894,511,928
7,657,011,723 6,468,361,219
IAS 1.116 16.2 Exchange equalization fund
13.7.3 Computation of risk-weighted assets Opening balance 4,204,046 4,204,046
2008 Addition during the year - -
Balance as on Risk- Risk-weighted Closing balance 4,204,046 4,204,046
31.12.08 (net) weighted balance 1,253,453,849 570,619,810

Particulars Figures in 000 factor as at 31.12.08
Figures in 000 IAS 1.96 17 Retained earnings
Cash in hand and balance with banks Balance brought forward 443,784,391 601,791,332
(except banks abroad) 4,065,616 - - Profit for the year 887,235,037 1,222,969,036
Balance with other Financial Transfer to Statutory reserve (430,964,800) (519,409,000)
Institutions - Private 400,000 0.20 80,000 Transfer to General reserve - (220,000,000)
Money at call on short notice Transfer to SEBL Foundation (15,000,000) (50,000,000)
(Banking companies) 19,900 - -
Issue of Bonus Shares - (169,019,100)
Money at call on short notice
(Non-Banking companies) 100,000 0.20 20,000 Cash dividend paid (342,263,671) (422,547,876)
Foreign currency balance held 65,049 - - 542,790,957 443,784,391
Export and other foreign bills 841,773 0.50 420,887 IAS 37.28 18 Contingents Liabilities
Import and Inland bills 3,215,632 1.00 3,215,632
Advance: 18.1 Acceptances and endorsements
Other Financial Institution-Private 719,979 0.50 359,990 Acceptance under Letters of Credit -Import 10,056,141,110 3,887,041,048
Private Sector 51,461,021 1.00 51,461,021 Acceptance under Letters of Credit -Export 5,303,490,903 3,490,167,900
Investments - 15,359,632,013 7,377,208,948
Government 10,515,269 - - 18.2 Letters of guarantee 6,165,108,183 5,335,371,383
Other Financial Institution-Public 10,000 0.20 2,000