Annual Report 2016 Eastern Bank Ltd.

221
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
7.b.9 Security/collateral-wise concentration of loans and advances
(including bills purchased and discounted)
Collateral of movable/immovable assets 54,279,681,784 49,349,436,772 54,279,681,784 49,349,436,772
Local banks and financial institutions guarantee 3,671,150,925 1,684,446,983 3,671,150,925 1,684,446,983
Government guarantee 450,818,892 933,246,060 450,818,892 933,246,060
Foreign bank guarantee - - - -
Export documents 7,495,045,592 6,311,954,212 7,495,045,592 6,311,954,212
Fixed Deposit Receipts (FDR)-own bank 8,608,369,035 6,085,043,917 8,608,369,035 6,085,043,917
FDR of other banks 703,636,982 148,447,814 703,636,982 148,447,814
Government bonds - - - -
Personal guarantee 10,816,684,856 9,340,588,870 10,816,684,856 9,340,588,870
Other securities (hypothecation charges) 70,345,946,744 60,596,257,392 66,058,299,470 56,373,159,837
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465

7.b.10 Classified and unclassified loans & advances

Unclassified
Standard (including staff loan) 148,556,604,639 126,315,370,850 144,481,893,635 122,213,261,394
Special Mention Accounts (SMA) 3,505,787,270 3,749,738,067 3,505,787,270 3,749,738,067
152,062,391,909 130,065,108,917 147,987,680,905 125,962,999,461
Classified
Sub-standard 731,150,983 316,593,900 731,150,983 316,593,900
Doubtful 280,664,510 277,915,955 280,664,510 277,915,955
Bad/Loss 3,297,127,408 3,789,803,248 3,084,191,138 3,668,815,149
7.b.11 4,308,942,901 4,384,313,103 4,096,006,631 4,263,325,004
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
Percentage of Classified Loans & Advances / NPL 2.76% 3.26% 2.69% 3.27%

7.b.10.a The amount reported above under SMA category includes certain loan accounts with an aggregate outstanding of Tk. 2,557.4 million
as at 31 December 2016 (Tk. 2,963.2 million as at 31 December 2015) which has not been reported as classified as at year-end on the
basis of stay order from the Honorable High Court Division of the Supreme Court of Bangladesh. As at year end 2016, an aggregate
amount of Tk. 1,083.16 million (Tk. 876.0 million in 2015) has been kept as specific provision against required provision of Tk.
1,482.14 million if all those accounts are considered as classified as per BRPD circular no. 14 dated 23 September 2012.
7.b.11 Movements of classified loans and advances
Opening balance 4,384,313,103 5,183,213,375 4,263,325,004 5,157,068,521
Additions during the year 3,114,279,042 2,475,118,992 3,022,330,871 2,380,275,747
Reductions during the year (3,189,649,244) (3,274,019,264) (3,189,649,244) (3,274,019,264)
Closing balance 7.b.11.a 4,308,942,901 4,384,313,103 4,096,006,631 4,263,325,004

Measures taken for recovery of classified loans and advances:

The Bank in general takes following steps to recover its classified loans and advances:
i) Sending letters and reminders to customers.
ii) Engaging specialised recovery team for holding discussion with customers to recover the loans and advances.
iii) Assigning debt collection agency (third party).
iv) Taking repossession of hypothecated vehicles/mortgaged properties.
v) Disposal/encashment of security through auction.
vi) Taking legal proceedings and settlement.
vii) Reporting to central bank.
viii) Rescheduling, restructuring, waiver or Written off.
ix) Negotiation and settlement with approval from competent authority.