Professional Documents
Culture Documents
Annual 2929129291
Annual 2929129291
Notice of the 31st Annual General Meeting 06 104 Report on Human Resources
A Retrospective of RBL 14
176 Directors' Responsibility for IC and FR
Awards & Recognition 18
177 MD & CEO and CFO's Declaration to the Board
t
Board of Directors 19
179 Independent Auditors’ Report to the Shareholders of RBL
Directors' Profile 21
182 Auditors' Report & Financial Statements
n
All Shareholders
Bangladesh Bank
Registrar of Joint Stock Companies & Firms
Bangladesh Securities and Exchange Commission
Dhaka Stock Exchange Ltd.
Chittagong Stock Exchange Ltd.
Dear Sir(s)
We are pleased to enclose herewith a copy of the Annual Report-2016 together with the
Audited Financial Statements of Rupali Bank Limited for your kind information and record.
Yours Sincerely,
(Md. Mainuddin)
General Manager &
Company Secretary
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Miss
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io
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Mission
................
Our mission is to
Develop long-term relationships that help our
customers achieve financial success.
Offer rewarding career opportunities and cultivate
staff commitments.
Uphold ethical values and meet its customer's
financial needs in the fastest and most appropriate
way and continue innovative works in order to
achieve human resource with superior qualities,
technological infrastructure and service packages.
Rupali Bank Limited
Annual Report 2016 07
TEAMWORK
ECT
INNOVATION RESP
INTEGRITY
Core Values
...................
Our Core Values are:
Social Responsibility - we care for and contribute to our communities
Performance - we measure results and reward achievements
Integrity - we uphold trustworthiness and business ethics
Respect - we cherish every individual
Innovation - we encourage creativity
Teamwork - we work together to succeed
The first letters of the initial words form "SPIRIT" and carry equal importance.
ic
teg
Stra
Strategic Objectives
.................................
Develop a customer oriented service culture with special emphasis on
customer care and convenience.
Increase our market share by following a disciplined growth strategy.
Achieve a significant share of deposit and credits from the existing and
niche markets.
Leverage our technology platform and pen scalable systems to
achieve cost-effective operations, efficient MIS, improved delivery
capability and high service standards.
Develop innovative products and services that attract our targeted
customers and market segments.
Maintain a high quality assets portfolio to achieve strong and
sustainable returns and to continuously build shareholders' value.
Explore new avenues for growth and profitability, particularly by
diversifying loan portfolio through structured finance and expansion of
retail and SME financing.
Strengthen the Bank's brand recognition.
Quality
.............. Good Corporate Governance
........................................................
Quality service experience is a Effective corporate governance
paramount to our customers and we are procedures are essential to achieve
strongly committed to fulfilling this ideal.
and maintain public trust and
We have a culture of timely compliance
confidence in any company, more
of regulatory requirements.
so in a banking company. At RBL,
we are committed to following best
Honesty and Integrity
............................................. practices resulting in good corporate
We ensure the highest level of integrity to governance.
our customers, creating an ongoing
relationship of trust and confidence. We
treat our customers with honesty, Corporate Social Responsibility
fairness and respect.
.............................................................
As a responsible corporate citizen,
we consider it important to act in a
Belief in our people
.......................................... responsible manner towards the
environment and society. Our
We recognize that employees are our most
valuable asset and our competitive strength. commitment has always been to
We respect the worth and dignity of behave ethically and contribute
individual employees who devote their towards the improvement of quality
careers for the progress of the bank. We of life of our people, the community
trust in equal treatment to all shareholders and greatly the society, of which we
irrespective of their individual size of
are an integral part.
shareholdings.
Some of the factors that may affect the banking business environment are as follows:
General economic conditions in Bangladesh, USA, Europe and the other markets in
the world
Introduction of compliance issues raised by the international forums may affect the
export growth
International political unrest and its consequence may adversely affect the smooth
flow of remittance
Withdrawal of incentives given to some thrust sectors may make the projects slow
moving
Any loss resulting from inadequate or failed internal processes, people and systems
or from external events.
Subsidiaries
Rupali Investment Limited (RIL) Sadharan Bima Tower (8th Floor), 37/A, Dilkusha C/A
Dhaka-100, Phone: 47112923
Rupali Bank Securities Limited (RBSL) Humayun Court (2nd Floor), 21, Motijheel, C/A
Dhaka-100, Phone: 9551680
Long term A A
Short term AR-2 AR-2
National Support AAA AAA
Outlook Stable Stable
Email info@rupalibank.org
Website www.rupalibank.org
DSE CSE
Highest : Tk 37.80 Highest : Tk 38.00
Lowest : Tk 23.20 Lowest : Tk 23.00
Auditors of RBL
Medical Consultant
DR. Miah Md. Mahtabuzzaman
Dr. Kanika Rani Das
1972 5.00 1.00 62.47 52.76 2.06 9.12 10.01 0.70 2416 159
1973 5.00 2.00 89.95 67.17 30.00 18.30 13.41 2.02 3122 200
1974 5.00 2.00 105.29 72.78 63.35 34.44 25.94 2.59 3382 209
1975 5.00 2.00 111.00 81.68 67.57 51.51 26.11 5.01 3747 227
1976 5.00 2.00 134.44 96.97 105.69 81.07 30.50 4.47 3797 257
1977 5.00 2.00 178.60 124.86 115.59 75.27 37.26 4.17 5042 361
1978 5.00 2.00 226.71 159.66 225.96 83.50 44.06 4.21 5591 449
1979 5.00 2.00 288.70 221.37 193.11 79.10 38.32 4.38 6237 489
1980 5.00 2.00 357.83 284.95 218.81 100.87 54.24 7.18 6487 532
1981 5.00 2.00 397.61 326.41 293.91 114.55 66.51 8.40 5382 537
1982 5.00 2.00 453.68 338.27 166.10 180.03 87.32 9.50 5391 466
1983 5.00 2.00 627.63 410.16 221.36 155.05 145.19 12.31 6048 466
1984 10.00 2.00 462.46 627.00 570.16 235.60 159.60 16.47 6294 482
1985 10.00 2.50 968.25 702.91 595.16 199.22 193.54 24.86 6477 490
1986 100.00 20.40 1166.67 767.50 483.23 195.69 315.60 14.14 6483 499
1987 100.00 27.20 1385.13 921.43 724.09 266.30 232.72 16.76 6611 504
1988 100.00 27.20 1515.54 1026.10 560.62 310.99 328.07 1.22 6724 515
1989 100.00 27.20 1633.26 1198.08 985.10 321.82 224.36 (10.38) 6710 516
1990 100.00 35.20 1696.05 1109.11 1041.49 262.39 447.99 (72.72) 7061 516
1991 100.00 35.20 1904.28 1165.72 498.87 237.92 467.88 (40.70) 7027 516
1992 100.00 35.20 2076.97 1109.63 550.80 220.54 483.25 (176.71) 6902 516
1993 700.00 35.20 2234.93 1263.50 713.86 231.24 640.84 (34.68) 6790 517
1994 700.00 125.00 2418.27 1337.23 851.38 242.80 709.25 (43.18) 6287 518
1995 700.00 125.00 2733.58 1452.59 1442.64 325.91 803.66 39.14 6176 518
1996 700.00 125.00 3246.69 1732.65 1231.22 397.27 847.30 1.70 6185 518
Year Author Paid - Deposit Loan & Import Export Invest Operating Empl- Number
ised up Advance -ment Profit oyee of
Capital Capital Branches
1997 700.00 125.00 3199.88 2030.04 1450.00 540.00 722.81 1.02 5999 516
1998 700.00 125.00 3521.74 2150.20 2135.00 691.00 803.99 (7.46) 6084 516
1999 700.00 125.00 3856.00 2381.98 1372.30 719.14 869.88 (30.81) 5885 514
2000 700.00 125.00 4327.82 2621.31 2112.00 720.00 970.44 10.23 5778 512
2001 700.00 125.00 4829.54 3833.95 2105.97 684.39 1064.34 28.69 5824 514
2002 700.00 125.00 5575.19 4167.86 1704.49 642.83 1249.05 44.27 5628 506
2003 700.00 125.00 5798.33 4211.02 1984.89 732.40 1399.73 55.28 5412 493
2004 700.00 125.00 6367.36 4534.49 2442.42 679.99 1320.31 51.34 5196 493
2005 700.00 125.00 6687.05 4492.07 2165.39 611.75 1290.28 81.08 5008 493
2006 700.00 125.00 6783.21 4570.95 1484.00 696.00 1206.82 25.47 4753 492
2007 700.00 125.00 7288.61 4708.03 1985.67 639.88 1409.06 281.38 4430 492
2008 700.00 125.00 7120.80 4903.00 2070.28 710.16 1254.57 114.51 4269 492
2009 700.00 125.00 7391.28 5234.42 1953.68 752.71 1430.30 209.87 4529 492
2010 700.00 125.00 9112.38 6604.90 6024.00 849.00 1571.72 244.69 4559 492
2011 700.00 137.50 7380.34 7652.49 6926.00 1351.31 2361.12 360.06 4982 503
2012 700.00 165.00 13659.88 9064.16 4510.82 1550.58 2657.23 367.46 5645 506
2013 700.00 181.50 17795.64 10742.63 6516.51 1817.08 3925.31 205.00 5669 528
2014 700.00 208.73 22165.68 12501.20 7798.49 1941.31 6822.00 232.70 5914 535
2015 700.00 240.03 25382.96 14251.50 11987.70 2162.78 8265.42 250.20 5646 554
2016 700.00 276.03 27911.60 17515.04 10801.36 2500.45 7965.12 (88.78) 5438 562
01 02 03 04
05 06 07 08
09 10 11 12
01. SAFA Best Presented Annual Reports Award and SAARC Anniversary Award for Corporate Governance 2012- 1st Prize
02. 13th ICAB National Award for Best Presented Annual Reports 2012- 1st Prize (In the Public Sector Entities status)
03. ICMAB Best Corporate Award 2013-1st Prize
04. SAFA Best Presented Annual Reports Award and SAARC Anniversary Award for Corporate Governance 2011- 1st Prize
05. 12th ICAB National Awards for Best Published Accounts Reports 2011- 1st Prize
06. ICMAB Best Corporate Award 2012- 2nd Position
07. 11th ICAB National Awards for Best Published Accounts Reports 2010- 2nd Position
08. ICMAB Best Corporate Award 2011
09. 14th ICAB National Award for Best Presented Annual Reports 2013 - First Prize
10. The Bank received School Banking Conferance Award 2015 - First Prize
11. Award of Excellence for Innovative Banking services as well as lucrative stall decoration - First Prize
12. TRANSFAST Business Partners Excellence Award 2016.
Qualification Qualification
Academic Academic
B. Com (Hons) M. Com. degree in Accounting, MBA (Belgium) B. Com (Hons) M. Com., FCMA
Professional Professional
Mr Salim Uddin FCA, FCMA is a Profeesor of Accounting & Mr Delwer Hussain FCMA is a Chairman at Bangladesh Sugar
Information Systems at the University of Chittagong. and Food Industries Corporation
Mr. Salim qualified as a Chartered Accountant from ICAB in Mr. Delwer qualified as a Cost and Management Accountant from
1996 and qualified as a Cost and Management Accountant ICMAB in 1990. He has a Post Graduate Diploma in Computer
from ICMAB in 1995. Science (PGD) and took an Advance Course on Administration
and Development (ACAD) from BPATC.
Appointment to the Board of the Bank Appointment to the Board of the Bank
On 02 January 2017 he was re-appointed Director on Board of
Re-appointed to the Board of Directors of RBL on
Rupali Bank Limited.
06 February 2017.
Membership to the Committee of RBL Membership to the Committee of RBL
Member, Audit Committee.
Chairman, Risk Management Committee.
Professional Experience Member, Audit Committee.
Mr. Salim is a leading consultant in accounting, designing Professional Experience
accounting system, tax, financial management, auditing, Mr. Delwer is an expert in dealing finance, budget, fund
project management, business negotiation and regulatory Management, taxation, insurance, accounting system, auditing,
compliance. His main areas of interest are International inspection, project management, business negotiation and
Accounting, IAS/IFRS, Forensic Accounting, Creative regulatory compliance. His main areas of interest are Cost
Accounting and Capital Market. Accounting, Management Accounting & Financial Management.
Besides, he participated as many as 20 professional training,
Association with other Organizations
workshops and seminar held at home and abroad.
Present Association
Association with other Organizations
Member, ARGUS Credit Rating Services Ltd. (ACRSL) Present Association
Adviser, TK Group of Industries Secretary General, Consultative Committee of State Owned
Past Association Enterprises (CONCOPE) (2012-2016).
Past Associations
Director, Premier Bank Limited
President, National Council of the Institute of Cost and
Director, Chittagong Stock Exchange Management Accountants of Bangladesh (ICMAB)
Corporate Financial Consultant, Mostafa Group of Director, Bangladesh Institute of Capital Market
Industries and other corporate sectors. Board Member, South Asian Federation of Accountants
(SAFA)
Consultant, South Asia Capital Ltd.
Member, SME Foundation
Audit Manager, M.A. Mallik & Co. Chartered Accountant. Director, Dhaka Stock Exchange Limited (2004)
Exceptional Achievement Director, Dhaka Power Distribution Company (DPDC in 2008
More than fifty research publications published in national & 2009).
and international Journal. He is the author of Contemporary Director, Bangladesh Diesel Plant Ltd., Khulna Shipyard Ltd.
Auditing & Assurance Services and Doing Business in and Narayangonj Dockyard Ltd. (2004 & 2013).
Bangladesh and also author of Study Manuals on Management Member, Confederation of Asian and Pacific Accountants
Accounting and Financial Management for professional Exceptional Achievement
institutes. More than six research articles published in the Journals of
Countries Visited International repute.
USA, UK, Japan, France, Germany, Belgium, Netherlands, Countries Visited
Luxembourg, UAE, Singapore, Hong Kong, China, Malaysia, USA, Canada, United Kingdom, France, Russia, Switzerland,
Thailand, India, Nepal. Australia, Brazil, New Zealand, UAE, South Korea, Malaysia,
Thailand, Singapore, India, Pakistan,
Sri Lanka, Nepal & Maldives.
Professional Experience
Mr. Prodhan, a professional banker has been in the banking industry for over 34 years. During his long
carrier he had served various state owned commercial bank in different capacities. His fields of service
were business development, marketing management, general banking, foreign trade and finance,
industrial credit, micro credit, branch management etc.
Training
During his career as a banker he attended numerous trainings, seminars and workshops at home and
abroad. He was trained with prestigious and world famous institutions and visited UK, China, Malaysia,
India, Thailand, Australia, Netherlands, etc. The training covered the magnificent issues in banking
arena such as Corporate Governance, Money Laundering Awareness, Conduct of Business, Decision
Support System in Finance, Regulatory Environment, Fraud Prevention, Retail Banking, Factoring etc.
Exceptional Achievement
Completed Diplomaed Associate of Institute of Bankers, Bangladesh(DAIBB).
Earned the highest profit in three consecutive years and distributed two times dividend to the
Government of Bangladesh during the tenure as CEO in Sonali Bank (U.K) Limited.
Achieved highest level of profit during the period as General Manager at Local Office, Sonali Bank.
Awarded appreciation letter and prize money for excellent performance for highest deposit collection,
loan disbursement , loan recovery and promoting loss branch to profitable branch during holding the
position as head of region and branch manager at Sonali Bank Ltd.
Countries visited
India, U.K, China, Malaysia, Thailand, Australia, Netherlands, France, Switzerland, USA, UAE,
Singapore, etc.
1
6
2
5
3
4
1
5 2
4 3
Prof. Dr. Sushil Ranjan Howlader (Chairman)
Mr. Arijit Chowdhury
Prof. Dr. Md. Salim Uddin FCA, FCMA, MBA
Mr. A. K. M. Delwer Hussain FCMA
Mr. Mahiuddin Faruqui
1
5 2
4 3
Mr. A. K. M. Delwer Hussain FCMA (Chairman)
Mrs. Dina Ahsan
Mr. Mahiuddin Faruqui
Prof. Dr. Md. Hasibur Rashid
Mr. Abu Sufian
Board's Risk
Managing Director Management Committee
DMD DMD
(GM)
Admin & HRD
General Credit &
SME Division
Shareholders'
Information
Financial Highlights of RBL in 2016
SI . Percent of
Name of Directors Position Shareholding
No.
as on 31-12-2016
09 Mr. Md. Ataur Rahman Prodhan Managing Director & CEO Nill
SI . Per cent of
No. Name of Directors Position Shareholding
as on 31-12-2016
04. Shareholding of MD, CFO, Company Secretary & Head of Internal Control & Compliance
01. Managing Director & CEO and his spouse and minor children Nil
03. Company secretary and his spouse and minor children Nil
04. Head of Internal Control & Compliance and his spouse and minor Children Nil
05. Top five salaried executives other than MD, CFO, Company Secretary & Head of
Internal Audit
06. Shareholders holding 10% or more voting right: Government of the People's
Republic of Bangladesh
232.70
250.20
205.26
2.52%
2016 2016
(88.78)
(2.58)%
2012 2013 2014 2015 2015
2.22
1462.42
1270.65
1165.56
1165.64
1.75
1181.97
0.98
2016
2016
15%
10%
(7.62)%
2015
2015 2016
42.05
40.38
23.50
2016
70.06
52.94
42.23
(125.86)
65.20
59.20
104.11
89.43
88.17
89.71
32.00
76.17
32.30
2012 2013 2014 2015 2016 2013 2014 2015 2016
22165.68
10742.63
12501.20
27911.60
14251.50
17795.64
17515.04
9064.16
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
1519.42
2262.79
809.27
451.20
752.76
898.11
370.71
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
106.07
106.08
2430.40
2202.27
2160.18
1542.22
1735.41
78.90
2016
(88.78)
Capital adequacy
Common Equity Tier-I Capital 890.81
Tier-II Capital 292.83
Total Regulatory Capital 1183.64
Required capital (10% of total risk w eighted asset Tk.14964.72crore) 1769.77
Capital excess / (short ) (586.13)
Tier-II Capital
General provision (1% to 5% of UCL and OBI) 159.40
Asset revaluation reserve ( 50%) 155.42
Revaluation reserve for securities (HTM & HFT) (50%) 39.15
Revaluation reserves for equity instrument up to 10% 27.82
Total 292.83
Required capital
Total assets including off-balance sheet items 41232.16
Total risk weighted assets 17697.74
Required capital being 10% of total risk weighted assets 1769.77
Particulars of Distribution
(a) Distribution of value addition
-200
Eamings
Pofit after tax (125.86) 23.50 42.05
Add : Provisions for loans and other during the year - 144.12 153.79
Less : Written off loan recovered during the year 10.92 11.88 25.72
(136.78) 155.74 170.12
119.94
2016
2014 2015
(164.38)
607.29
536.28
Maintaining Liquidity
Taka in crore
Assets
Liabilities
The liquidity policy of the bank has always been to carry a positive mismatch in the interest
earning assets and interest bearing liabilities in the 1-30 days category. Our liquidity remained
at optimum levels during the year.
The assets and liabilities committee (ALCO) of the bank monitors the situation and maintains a
satisfactory trade-off between liquidity and profitability.
Payment of dividends
Dividend policy is concerned with taking a decision regarding paying cash dividend in the
present or paying an increased dividend at a later stage. The firm could also pay in the form of
stock dividends which unlike cash dividends do not provide liquidity to the investors; however, it
ensures capital gains to the stockholders.
Considering the performance of the Bank over the Bank the board has recommended stock
dividend of 10% for the year 2016.
DSE CSE
Month Month
High Taka Low Taka Volume High Taka Low Taka Volume
January 16 37.80 31.50 2,410,323.00 January 16 38.00 31.80 104,787
February 16 34.50 30.70 563,004.00 February 16 35.50 31.00 20,858
March 16 31.80 26.60 587,257.00 March 16 31.80 28.80 28,373
April 16 30.80 27.70 466,216.00 April 16 31.70 27.10 33,065
May 16 29.00 25.50 628,220.00 May 16 30.30 25.60 76,705
June 16 29.20 23.20 449,039.00 June 16 30.80 23.00 36,460
July 16 27.60 23.90 1,161,174.00 July 16 27.50 24.50 60,575
August 16 29.50 24.10 2,099,366.00 August 16 28.00 24.00 127,439
September 16 29.70 25.30 1,241,175.00 September 16 30.30 25.10 256,414
October 16 35.20 24.40 3,214,759.00 October 16 35.00 24.80 420,571
November 16 27.40 24.50 1,119,251.00 November 16 27.80 23.20 138,977
December 16 27.90 25.00 1,437,627.00 December 16 27.90 25.20 52,541
Closing Price
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
37.94
2016
(7.02)
2014 2015
Listing Status
Share
Stock Exchange Symbol Listing Date
DSE RUPALIBANK 22.12.1986
CSE RUPALIBANK 27.12.1995
Growth
24.56%
of Rupali Bank Ltd, Mr Monzur Hossain, 14.51%
3925.31
6822.01
8265.42
7965.12
Business Growth
Rupali Bank Ltd has been able to achieve
desired business success also in 2016 under 2012 2013 2014 2015 2016
Taka in crore
accounts and 464 Foreign Correspondents. It
has spurred the Bank’s export-import business to
1087.51
1453.43
1850.32
1652.52
958.64
a significant height. Profit earned in foreign
exchange from the dealing room operation under
treasury department marked a consecutive rise. 2012 2013 2014 2015 2016
Import
Operating Profit
The import businesses of the Bank in 2012,
2013, 2014, 2015 and 2016 were Tk 4510.82 The operating profits of the Bank from 2012 to
crore, Tk 6516.51 crore, Tk 7798.49 crore, Tk 2015 were Tk 367.46 crore, Tk 205.26 crore,
11987.70 crore and Tk 10801.36 crore Tk 252.70 crore and Tk 250.20 crore
respectively. The import business of the Bank respectively. The Bank incurred a loss of Tk
between 2012 to 2015 rose significantly. 88.78 crore in 2016.
However, the import trade declined in 2016 in
compare with 2015. Operating Profit
Taka in crore
Import
367.46
252.70
250.20
205.25
Taka in crore
2016
(88.78)
2012 2013 2014 2015
6516.51
10801.36
11987.70
4510.82
7798.49
Automation
2012 2013 2014 2015 2016
About all the branches of Rupali Bank came
Export under Live Operation and BFFTN service to
The export businesses of the Bank between occupy a dignified status symbol of business
2012 and 2016 were Tk 1550.58 crore, Tk success in the competitive banking sector. A
1817.08 crore, Tk 1941.31 crore, Tk 2162.78 total of 508 branches out of 562 branches of
crore and Tk 2500.45 crore respectively. The the Bank are being operated under CBS. A
export business marked 14.77% rise in 2012, project is undergoing since 2013 to bring all the
17.19% in 2013, 6.84% in 2014, 11.41% in branches of the Bank under Centralised
2015 and 15.61% in 2016 against the previous Banking. Recently all the branches came under
years. CBS.
A Rationalised Input Template has been
Export
installed at the branches concerned of the
Head Office to upload all the statements
Taka in crore
1817.08
1941.31
2162.78
2500.45
943.69 Crore
1079.10 Crore
240.56 Crore
214.74 Crore
11529 Persons
285 Persons
Disbursement
Disbursement
Entrepreneurs
Woman Entrepreneurs
electricity.
Adequacy Transparency
Corporate
Governance
Accuracy
Fairness
1.3 Independent Director
Board has appointed 02 (Two) Independent
Directors in consonance with the latest
corporate governance notification of BSEC
Report on and Bank Company Act 1991, (ammended in
2013). The independent directors enjoy full
independence in terms of carrying out their
Corporate coveted responsibilities. Independent
Directors are well conversant in the field of
business and professional areas.
Governance 1.4 Chairman is Independent of CEO
As per Company Act 1994 the Chairman and
Rupali Bank Limited is committed to comply the Managing Director & CEO of the Bank are
with the every standards of corporate different individuals, so the Chairman does not
governance. Corporate governance is the interfere in day-to-day company matters. The
system by which companies are directed and non-executive Chairman's duties are typically
controlled. It involves a set of relationships limited to matters directly related to the board,
between a company's management, its board, such as- chairing the meetings of the board,
its shareholders and other stakeholders. It organizing and coordinating the board's
deals with prevention or mitigation of the activities, chairing the AGM and conducting
conflict of interests of stakeholders. However, the meeting as set in agenda, reviewing and
the principles of corporate governance include evaluating the performance of the managing
rights and equitable treatment of shareholders, director and the other senior excutives.
interests of other stakeholders, role and 1.5 Responsibilities of the Chairman of
responsibilities of the board, integrity and the Board
ethical behavior, disclosure and transparency
of a company. The responsibility of the Chairman is defined
in the BRPD Circular No. 11/2013 which is
fully complied by the bank. There is a clear
1. BOARD OF DIRECTORS, CHAIRMAN, delineation of responsibilities between the
MANAGING DIRECTOR AND CEO board and management which the bank is
operating, the management is held
1.1 Company’s policy on appointment of
responsible for the execution of the policies
directors
and accomplishment of bank's objectives. As
The Bank has appointed directors as per Bank per guidelines of Bangladesh Bank the
Company Act 1991,(amended in 2013), Chairman of a bank does not participate in or
Companies Act 1994, BRPD Circular No. interfere into the administrative or operational
11/2013, Dhaka & Chittagong stock exchange and routine affairs of the Bank.
(listing) regulation 2015 and Article of
Independence of Non-Executive Directors
Association of the Bank. The process of
appointment of a director starts with All the non-executive Directors of the Bank are
nomination made by the Financial Institution enjoying the autonomy and independence as
Division, Ministry of Finance. Board of explained in corporate governance guidelines
Directors of the Bank sends the proposal for of Bangladesh Bank and Securities Exchange
appointment of Director to Bangladesh Bank. Company.
Bangladesh Bank finally approves the 1.6 Annual Appraisal of the Board’s
appointment. The role of the board and its Performance
committees are clearly stated in BRPD
Circular No. 11/2013. To achieve the strategic objectives of RBL the
board of directors are responsible for setting
1.2 Non-executive Directors the yearly business plans, formulating all sorts
All directors of RBL are non-executive except of policy, confirming key aspects of the bank's
the Managing Director & CEO. There are 11 internal organization, making decisions on the
Directors including Managing Director & CEO. establishment of branches, evaluating and
The Managing Director & CEO is an Ex-officio assessing the key performance for managing
Director of the Board. director, reviewing operational and financial
performance, reviewing all sorts of risks and
that no unjustified restriction or limitation The audit committee makes certain on the
hinders the internal audit process; information placed in computation of financial
• Examine the efficiency and effectiveness of
internal audit function;
disclosures is realistic.
auditors are duly considered by the The main objectives of the internal control
management or not. process can be categorized as follows:
3.2.4 External Audit Function 1. Efficiency and effectiveness of activities;
• Effective
function
coordination of external audit
2. Reliability, completeness and timeliness of
financial and management information; and
3. Compliance with applicable laws and
The committee provides coordination of
regulations.
external auditors as they require. The
The Board of Directors of Rupali Bank
committee helps generally to prepare and
Limited is responsible to establish
finalise the financial statements during the
appropriate system of internal control. To
year. The progress of the audit by the external
ensure internal control system a guidelines
auditor is reviewed by the committee.
in this regard has been introduced.
The non-executive directors (directors other 9.1 RBL Policies and Practices Relating
than Managing Director) of the Board to Social and Environmental
representing shareholders do not take any Responsibility
remuneration or reimbursement of any Sustainable Banking creates long-term
expenses for attending Board meeting or for resilient and sustainable economic, social and
1.2(i) IDs at least 1/5 of the total number of Directors ID has been appointment
on dated 28.07.2016
1.2(ii)a) Share held by the Independent Directors
1.2(ii)b) ID is not a sponsor of the company and is not connected with
his/her family members who hold 1% or more share.
1.2(ii)c) ID does not have any other relationship with the company or
with its subsidiary
1.2(ii)d) ID is not a member, director or officer of any stock exchange
1.2(ii)e) ID is not a shareholder, director or officer of any member of
stock exchange or an intermediary of the capital market
1.2(ii)f) ID is/was not a partner or executive during the preceding 3
years of the concerned company's statutory audit firm
1.2(ii)g) ID shall not an independent director in more than 3 listed
companies
1.2(ii)h) ID has not been convicted as a loan defaulter
1.2(ii)i) ID has not been convicted for criminal offence
It shall be placed in the next
1.2(iii) Appointment of ID
AGM for Approval
1.2(iv) The vacancy period for the post of ID
1.2(v) Code of conduct of all Board members and record of its
annual compliance
1.2(vi) The tenure of office of an ID
1.3 Qualification of Independent Director (ID)
1.3 (i) ID shall be a knowledgeable individual to ensure compliance
1.3(ii) Corporate management/ professional experience of ID
1.3(iii) Relaxation of qualifications of an ID No such incident arose
1.4 Chairman of the Board and CEO
(The BOD shall clearly define respective roles and
responsibilities of the chairman and the CEO)
1.5 The Directors' Report to Shareholders
1.5 (i) Industry outlook and future development
1.5(ii) Segment-wise or product-wise performence
1.5 (iii) Risks and concerns
1.5 (iv) Discussions on cost of goods sold, gross profit margin and net
profit margin
1.5 (v) Discussion on continuity of any extra-ordinary gain or loss No such incident arose
1.5 (vi) Basis for related party transactions
1.5 (vii) Utilization of proceeds from public issues, rights issues etc No such matter to explain
1.5 (viii) Explanation if the financial results deteriorate for IPO,RPO,etc No such incident arose
1.5 (ix) Disclosure for significant financial variance No such matter to explain
1.5 (x) Remuneration to directors including independent directors
1.5 (xi) Fair presentation of financial statements of issuer company
1.5 (xii) Maintenance of proper books of account of the issuer company
1.5 (xiii) Appropriate accounting policies applied for financial statements
1.5 (xiv) Application of IAS/BAS/IFRS/BFRS and disclosure for any
departure thereof
1.5 (xv) Internal control compliance has been effectively implemented
and monitored
1.5 (xvi) Disclosure for issuer company as a going concern
1.5 (xvii) Explanation for significant deviations from the last year's No such matter to explain
operating results of the issuer company
1.5 (xviii) Summary of five years financial performance of the company
1.5 (xix) Reasons disclosed for not declaration of dividend (cash/stock) N/A
03. Company secretary and his spouse and minor children Nil
04 Head of Internal Control & Compliance and his spouse and minor Children Nil
covering poultry, Dairy, cement, chemicals, ii) Auto Claved Aerated Concrete (AAC)
pesticides, pharmaceuticals, engineering, 05.Solid Waste management Project-
housing, pulp & paper, sugar & distilleries,
i) Methane gas recovery
tannery, textile & apparels, ship-breaking etc.
ii) Electricity generation,
RBL has incorporated ERM in existing
ERM. iii) Compost
04.Climate risk fund/ CSR Activities iv) Fecal sludge management
RBL has involved CSR activities covering 06. Liquid Waste Management Project
environmental, social, health, educational 07. Alternative fuel-Fuel from tyre by pyrolysis.
and cultural advancement .
05. Green financing 08. ETP (Effluent Treatment Plant).
RBL has been using the following slogans in BACH Branches 289
ATM Booth (Own Branded) 1
our envelops, gift box and baskets in raising
Remittance facility Branches 560
awareness among its shareholders and Live Branches Under CBS 563
stakeholders. Total Branches of the Bank 563
ices
g
it
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ooth
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Entrep
a
al c
i cr
ol B
Financ
B
n
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ATM
Rur
Agr
Soft
Wome
Mobile
Sch
Financial inclusion
BDT 10
Rural Bra
Others
IT ad
Farmers
SME
optio
nch Netw
Service
accoun
Loan
accoun
o
n
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t
t
Future outlook
Status of New branches from 2012 to 2016 Supporting the Government's inclusive
growth strategy, RBL will come forward to
Urban
Rural
implement any further steps taken to serve
12
12
the underserved/unserved economic
10
7 sector and population segments;
2 4 5
1 3 3
Providing credit facilities to SME
201
2
201
3
201
4
201
5
201
6 entrepreneurs, agriculture and other rural
and urban farm and no farm productive
activities;
Continue expansion of rural branches of bank;
Mobile Financial Services
Agent banking services will be introduced
The rapid growth of mobile phone users and very soon for inclusion program;
country wide coverage of mobile operator's
network has made their delivery channel an Own branded ATM services will be set up
important tool-of-the-trade for extending very soon in different areas;
banking services. For this reason Mobile Work with mutually-owned co-operative
Financial Services 'Rupali Bank SureCash' societies offering financial and other
formally inaugurated in April 20, 2016 to specified services;
provide Mobile Financial Service to the Continue CSR obligation to foster
unbanked/banked population. The total number financial inclusion;
of registered customers of Rupali Bank Sure
Cash up to December, 2016 was 3, 96,243. IT based financial services like BACH,
BEFTN, RTGS will be enhanced.
his/her last basic as festival bonus twice a year takes the effort of preserving the environment,
until his/her death. The bank ensures better the bank stays by their side. Besides, in the
healthcare of the employees with the help of field of tree plantation, green-belts, sanitation
Medical Consultant at Head Office. and pure drinking water etc, the bank provide
Rupali Bank Krira Parishad organizes sports assistance. Preferences is given on uses of
technology, solar energy etc for promoting
and cultural activities for its employees to
green banking.
shake off their monotony. They also operate a
library with huge number of books and Financial Inclusion
magazines. Rupali Bank’s cricket team has The bank opens accounts with Tk. 10.00 for
regularly been participating in the Cricket the freedom fighters, extreme poor, insolvent
League. Rupali Bank Woman Cricket Team handicaps, donation receivers from Hindu
clinched the title in the Premier Division Religious Welfare Trust, allowance receivers
Champion Woman Cricket League in 2016 in under Social Safety Net Program and other
Bangladesh. It also became Runner-up in have-nots of rural and urban population
Premier Division Woman Cricket League 2015. segments. It also opens accounts with Tk.
Environment 50.00 and Tk. 100.00 for youth farmers and
school students respectively. These accounts
Rupali Bank’s CSR actions generously
are free of charges.
contribute to save the environment. Its lending
policies and practice are supportive in Rupali Bank also opens accounts with Tk.
nourishing the environment. Obtaining 10.00 for the street and working children with
clearance from the Department of Environment the help of authorized NGO's by Bangladesh
has been made mandatory by the business Bank. This is the first example in Bangladesh
entity before applying for any credit facility to and perhaps the first instance in the world as
the bank. ETPs in manufacturing well. The objective is to bring the floating,
establishments especially in dyeing industries homeless, working children under banking
are made mandatory while financing by the channel and to establish their identity in the
bank. The bank is using a slogan “Plant tree, society. These accounts are also free of
nurse them and save the environment” in all its charges.
envelopes in building awareness among the Rupali Bank provides small scale credits as
people. fishery loan, shrimp cultivation loan,
A general instruction is being followed in all the goat/sheep rearing loan, poultry loan, dairy
branches of the bank for efficient use of loan, loan against crop storage in silos,
electricity, printed stationary etc and micro-credit for the handicapped, the tree
maintaining cleanliness as part of efficient plantation loan etc for socio-economic
in-house environment management. Ongoing development of the country under the policy
automation program will help reducing the pursued by the government. Bank-NGO
reliance on printed documents and postage Linkage Credit facility is also provided to
expenses or printing costs as well. different NGOs.
Any environment related organization that
Rupali Bank's CSR initiatives in 2016 and 2015 are as below: Amount in Lac
Sl Area 2016 2015
1 Day Care Developement 12.60 40.07
2 Distributing Blankets among the Cold Wave Hit Distressed People 50.96 47.32
3 Education, Health & Research 0.50
4 Poverty reduction and rehabilitation 2.30
5 Institutions 0.43
6 Natural disaster 50.00
Rupali Bank Director A.K.M. Delwer Hussain Distributing Rupali Bank Director Barrister Zakir Ahammad Distributing blankets
blankets among the cold wave hit people at Pakundia, Kishorgonj. among the cold wave hit people at Fatehpur, Nabinagar, B. Baria.
CSR Financial help for Cancer Patient Primary School Head CSR for Mr Md. Sabir Uddin Sikder, SI (BP, No.6789008479)
Master Mst. Rabeya Khatun. Motijeel Thana (Donation for Open Heart Surgery).
Financial help as CSR to Patgram Mohila Degree College. Distributing blankets among the cold wave hit people at Chor Duar
Union, Pathorghata, Borguna.
Distributing blankets among the cold wave hit people at Chor FAD Deputy General Manager handing over a pay-order to help
Khayerbari, Birampur, Dinajpur. medical and livelihood.
1000 Year 1st Class 2nd Class 3rd Class 4th Class Total
0
2012 2013 2014 2015 2016
2012 55 167 238 299 759
2013 21 0 65 91 177
Fig. : Training Programme Conducted for the RBL
employees during 2012-16 (Only RBTA)
2014 351 478 36 63 928
2015 91 0 13 24 128
2016 0 0 53 49 102
7000
3048
3071
2957
Technology &
UAT completed
CBS Support System Live & up graded
Chittagong Shipping Booth Management System Live & up graded
Head office support system Software
Financial Services
Live from January 2016
Human Resources Management Web based Software Live from 9th December 2015
Online Export–Import Transaction Monitoring System Software Live & up graded
Court Case Movement System Software Completed & testing going on.
Mobile banking Customer more than 76,00,000
e-Tendering
Ruapli Bank Limited, copping with the 37
The rapid growth of mobile phone users and countrywide coverage of mobile operator's network has
made their delivery channel an important tool-of-the-trade for extending banking services to the
unbanked/banked population, especially to expedite faster delivery of remittances across the country.
From legal and regulatory perspective, only the bank-led model is allowed to operate in Bangladesh.
RBL got permission for Mobile Financial services from Bangladesh Bank on 02 February 2016. The
Bank run the operation on 20 April 2016. Among the state-owned Banks Rupali Bank is being
pioneered providing the MFS among the people in this market segment. Rupali Bank MFS Status:
Agents Distributors General Customers
2016 Up to Date 2016 Up to Date 2016 Up to Date
59,290 70,000 157 200 3,96,243 80 Lacs
Distribution of primary school stipend to the mothers of the students using mobile banking
"Rupali BankSureCash".
Total No. of Accounts Total Students Beneficiary mothers No of Primary Schools Yearly Payment
1crore 1 crore 30 lac 1crore 60000 1400 crore (Year 2017)
Mobile Financial services provided by Rupali Bank Sure cash at a glance
Cash in /out (agents/branches) B2P Payments
Country wide all sorts of customers. Sugarcane cultivator receives the payment
Disbursement of stipend primary school to from Bangladesh Sugar and Food corporation
the mothers of the students. through mobile.
Payment of Tuition fees of High Schools and Old aged people, freedom-fighter and husband
Colleges. discarded women allowances are paid.
Disbursement of primary stipend.
B2P Collections Salary paid in 340 educational institutions
Fees collection and through Rupali Bank
SureCash. B2P Payments
Collection of DESCO, DPDC, BTCL, Dhaka Trainee of BASIS receiving stipend.
WASA, utility bill.
School/College pay stipend to the student.
Grameen Banks realizing installments and
disbursing loan to their customers.
Rupali Bank Limited
Annual Report 2016 114
A Snap short of Mobile Financial Services
Convertible and Non-Convertible Taka Account
Exporter’s Retention Quota (ERQ) Account †
Import Finance
Letters of Credit
Payment Against Document (PAD)
Loan against Imported Merchandise (LIM)
Loan against Trust Receipt (LTR)
Export Finance
Pre-shipment Credit
Cash Credit Against Hypothecation of Raw Materials/Exportable Goods
Cash Credit Against Pledge of Raw Materials/Exportable Goods
Packing Credit (PC)
Back to Back L/C
Back to Back L/C under Export Development Fund (EDF)
Post-shipment Credit
Negotiation/Purchase of Export Documents/Bill
Collection of Export Documents/Bill
Foreign Bill Purchase (FBP)
Advance against Export Bill sent for collection
Inland Bills Purchase (IBP)
Export Bill Discounting
Advance Against Cash Incentive/Cash Subsidy
Directors’ Report
2016
Outlook 2016
Global growth is projected to slow to 3.1
percent in 2016 before recovering to 3.4
percent in 2017. The forecast, revised down
Directors' by 0.1 percentage point for 2016 and 2017
relative to April, reflects a more subdued
Report outlook for advanced economies following the
June U.K. vote in favor of leaving the
2016 European Union (Brexit)
weaker-than-expected growth in the United
and
Service Sector
The services sector holding the largest share
(53.1 percent of GDP) grew by 6.3 percent in
FY16, compared to 5.8 percent in FY15. The
growth of two major services
components-wholesale and retail trade repair
of motor vehicles, motorcycles, and personal
and household goods; and transport, storage
and communication largely contributed (1.7
and 1.3 percentage points respectively) to the
overall service sector growth. Moreover, public
administration and defence; and education
sub-sectors grew markedly by 11.4 and 11.7
percent, respectively. In addition, health and
social works; hotel and restaurants; and real Bangladesh Bank, Annual 2015-2016.
estate, renting and other business activities
subsectors grew faster in FY16.
Khulna 31 28 59
Asset-Portfolio
Barishal 27 22 49
The asset portfolio of Rupali Bank Ltd.
Sylhet 19 32 51 constitutes loans and advances, investments,
fixed assets, money at call and short notice,
Rangpur 21 21 42 cash in hand and balance with other banks &
financial institutions and other assets. Asset
Comilla 24 46 70
portfolio of the Bank in 2016 and 2015
Mymensingh 23 24 47 comprised the following:
(Taka in crore)
Other Assets
Capital Structure Tk 1829.25 crore
(Taka in crore)
Cash in Hand and balance
with other Banks & Fls
Tk 4446.29 crore
1270.65
1165.64
Fixed Assets
Tk 1412.14 crore
Investments
Funding Structure Tk 7965.12 crore
The year-end funding structures of the Bank in
2016 and 2015 are given below : Loans & Advances
Tk 17515.04 crore
Taka in crore
Taka in crore
Sources of Fund 2016 2015
Particulars of assets 2016 2015
Deposits 27911.60 25382.96
Loans and advances 17515.04 14251.50
Borrowing 133.19 147.98
Investment 7965.12 8265.42
Paid-up capital 276.04 240.03
Fixed assets 1412.14 1419.40
Statutory reserve 287.20 287.20
Money at call and short notice 243.00 614.00
Share money deposit 280.00 280.00
Cash in hand and balance with 4446.29 3915.17
General reserve - 151.33
other bank's& Fls
Retained surplus from 86.42 143.44
Other assets 1829.25 1589.49
profit and loss account
Total 33410.85 30054.98
Total 28974.45 26801.59
22165.68
27911.60
17795.58
(in percentage)
Savings Bank Deposits
21.61%
12501.20
14251.50
17515.04
5.75%
9064.16
Bills payable
0.87%
10801.36
exchange market. Division has aptly interpreted
11987.71
market direction in dealing foreign exchange
business.
Due to soaring depreciation and volatility in
foreign exchange market the Bank faced severe
Import
Import
2500.45
2162.78
challenges. By prudently managing the foreign
1850.35
1652.52
exchange market risk the LC settlement and
bank's currency position are properly
Export
Export
maintained.
Remittance
Remittance
FDR
Other Deposit Non-interest Income
43.49%
Short term deposit Savings
11.19% 21.61%
Report of the
Risk Management Committee
Organizational Structure of RMC:
1. Members of the committee were
nominated by the board of directors from
themselves;
2. The Risk Management Committee
comprises of 05 (five) board members;
3. Members are appointed for a 03 (three)
years term of office;
Report of the 4. Company secretary of the bank is the
secretary of the Risk Management
Risk Committee.
Roles and Responsibilities of the Risk
Management Committee:
Management i) Risk identification & control policy :
Formulation and implementation of
Committee appropriate strategies for risk assessment
and its control is the responsibility of Risk
In compliance with the Bank Company Act Management Committee. Risk
(Amended 2013) and BRPD Circular 11 dated Management Committee will monitor risk
27 October 2013, the Board Risk management policies & methods and
Management Committee has been formed. amend it if necessary. The committee will
Board Risk Management Committee has been
review the risk management process to
functioning as a sub-committee of the Board
of Directors. The Risk Management ensure effective prevention and control
Committee was formed to play an effective measures.
role in mitigating impending risks arising out ii) Construction of organizational
from the various activities of the bank. structure:
Strategies and policies formulated by the
Board with a view to carry out the The responsibility of Risk Management
responsibilities efficiently entrusted on the Committee is to ensure an adequate
committee. After addressing and assessing organizational structure for managing risk
various risk areas like credit risks, foreign within the bank. The Risk Management
exchange risks, internal control and Committee will supervise formation of
compliance risks, money laundering risks, separate management level committees
information and communication risks, and monitor their activities for the
management risks, interest risks, liquidity risks compliance of instructions of lending risk,
etc.; the risk management committee foreign exchange transaction risk, internal
scrutinizes whether appropriate risk control & compliance risk, money
management measures are being put in place laundering risk, information &
and applied and whether adequate capital and
communication risk including other risk
provision is being maintained against the risks
identified. related guidelines.
iii) Analysis and approval of Risk
Composition of Risk Management
Management policy:
Committee (RMC)
Risk management policies & guidelines of
The Board Risk Management committee (31
the bank should be reviewed annually by
December 2016) comprises of the following
members: the committee. The committee will
propose amendments if necessary and
Sl. Status in the
No.
Name of Members Status in Bank
Committee send it to the Board of Directors for their
01 A K M Delwer Hussain, FCMA Directorof the Board Chairman approval. Besides, other limits including
02 Barrister Zakir Ahammad Director of the Board Member lending limit should be reviewed at least
03 Dina Ahsan Director of the Board Member once annually and should be amended, if
04 Dr. Md. Hasibur Rashid Director of the Board Member necessary.
05 Abu Sufian Director of the Board Member
• policies for mitigating risk with strategies Increase in NPL due to default of top
and processes. large borrowers
The following components set out in tabular The impact of increasing NPL due to default of
form have disclosed in the disclosure of RBL: top 3 (three), top 7 ( seven) & top 10 (ten)
borrowers at minor, moderate and major level
• Scope of application of shock is calculated assuming that the
• Capital structure performing loan of the respective borrowers
are directly downgraded to Bad & Loss
• Capital Adequacy category creating a requirement of 100 %
• Credit Risk provision.
• Equities: disclosure for banking book Negative shift in NPL categories
positions This includes 5%, 10% & 15% downward shift
• Interest rate risk in the banking book of the SMA to substandard, the substandard to
(IRRBB) doubtful and doubtful to bad and loss at minor,
moderate and major level of shock
• Market risk
respectively.
• Operational risk
Decrease in the FSV of Collateral
• Liquidity Ratio
It includes decrease in forced sale value of
• Leverage Ratio mortgage collateral by 10%, 20% and 40% at
• Remuneration minor, moderate and major level of shock
respectively.
The disclosure of RBL based on audited
balance sheet is available in the bank’s F. Risk Mitigation Methodology
website. Risk Appetite Framework (RAF)
E. Stress Testing Risk appetite is the level and type of risk a bank
Stress testing is a series of tests to quantify the is able and willing to assume in its exposures
impact of changes in a number of risk factors and business activities. Risk appetite is the
on the assets and liabilities using a set of cornerstone of a successful risk management
exceptional but plausible events in abnormal framework.
market condition. RBL adopts some fundamentals for an
Stress Testing is performed by RMD on effective RAF as mentioned below:
quarterly basis for managing risk proactively in Desired business mix, composition of the
an adverse economic condition. RMD ensures balance sheet, risk preferences, the
regular reporting to the senior management of acceptable trade‐off between risk and
RBL as well as the Financial Stability reward, tolerances for volatility, capital
Department (FSD) of Bangladesh Bank by the thresholds, tolerance for post‐stress loss,
end of each quarter. As per Stress Testing of optimum liquidity ratios, and others;
December 2016 the most adverse effect
comes from shock relating to interest rate. Focus on the bank’s key strengths and
competitive advantages;
RBL emphasizes to manage credit risk in the Any credit approval is subject to the banking
entire range as well as the risk in individual regulations in force or to be imposed by the
credits or transactions. The effective regulatory body and to the changes in the
management of credit risk is a critical banking policy. Data collection check list and
component of a comprehensive approach to limit utilization form are being prepared for
risk management and essential to the regular assessment.
long-term success of RBL.
Credit risk grading (CRG) system has been
On the basis of Bangladesh Bank's credit risk adopted by RBL as per Bangladesh Bank's
management policies, a manual of Credit Risk instruction. The system defines the risk profile
Management (CRM) has been formulated and of borrowers to ensure that account
approved by RBL's Board of Directors. The
management, structure and pricing are
organizational structure of RBL's Head Office
commensurate with the risk involved. CRG by
level has been designed in line with CRM
RBL considers the following criteria:
Guidelines.
Total Loans and Advances of RBL • It advises for both the opportunities and
Fig in crore Tk threats to its liquidity and balance sheet
December December positions as well as positions of maturing
Particulars
2016 2015 assets and liquidity contingency plan.
Total Loans & Advances 17515.04 14251.50
• It monitors the liquidity management of
Classified amount (Opening) 2341.76 1519.42 treasury by-
Less Total recovery i) Setting tolerance for cumulative cash flow
adjustment during the year 954.72 341.76
mismatches (maximum cumulative outflow
Add newly classified
during the year
2097.81 1164.10 limit 20% of balance sheet assets),
Classified amount (Closing) 3484.85 2341.76 ii) Setting limit on loan to deposit ratio (81%
% of classified loans 20.64% 17.00%
expected,110% maximum),
Action Plan/Roadmap for Basel-III as per Bangladesh Bank BRPD Circular No. 18 dated 21 December
2014 are given below:
Action Deadline
Issuance of Guidelines on Risk Based Capital Adequacy December 2014
Commencement of Basel-III Implementation process January 2015
Capacity Building of bank and BB officials January 2015 - December 2019
Initiation of full Implementation of Basel-III January 2020
Phase-in Arrangements
The phase-in arrangements for Basel-III implementation will be as follows:
2015 2016 2017 2018 2019 2020
Minimum Common Equity Tier-1(CET) 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%
Capital Ratio
Capital Conservation Buffer - 0.625% 1.25% 1.875% 2.50% 2.50%
Minimum CET-1 plus Capital Conservation 4.50% 5.125% 5.75% 6.375% 7.00% 7.00%
Buffer
Minimum T-1 Capital Ratio 5.50% 5.50% 6.00% 6.00% 6.00% 6.00%
Minimum Total Capital Ratio 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Minimum Total Capital plus Capital 10.00% 10.625% 11.25% 11.875% 12.50% 12.50%
Conservation Buffer
Phase-in of deductions from CET1
Excess investment over 10% of a bank’s 20% 40% 60% 80% 100% 100%
equity in the equity of banking, financial and
insurance entities.
Phase-in of deductions from Tier-2 Revaluation Reserves (RR)
RR for Fixed Assets, Securities and 20% 40% 60% 80% 100% 100%
Equity Securities
Leverage Ratio 3% 3% 3% Migration to Pillar 1
Readju
stment
Liquidity Coverage Ratio ≥100% ≥100% ≥100% ≥100% ≥100% ≥100%
(From
Sep.)
Net Stable Funding Ratio ≥100% ≥100% ≥100% ≥100% ≥100% ≥100%
(From
Sep.)
2. Capital Structure
Qualitative Disclosures
(a) Summary information on the terms and Common Equity Tier 1 capital, also called as
conditions of the main features of all capital going-concern capital of RBL consists of paid-up capital,
instruments, especially in the case of statutory reserve, general reserve, retained earnings and
capital instruments eligible for inclusion in share money deposit. Tier 2 capital, also called as
CET 1, Additional Tier 1 or Tier 2. gone-concern capital of RBL consists of general provision
(against unclassified loans, SMA and Off-Balance Sheet
exposures), revaluation reserves for fixed assets (50%),
securities (50%) and equity instruments (10%).
3. Capital Adequacy
Qualitative Disclosures
(a) A summary discussion i) The bank has adopted Standardized Approach (SA) for computation of
of the bank’s approach capital charge for credit risk and market risk and Basic Indicator
to assessing the Approach (BIA) for operational risk. Assessment of capital adequacy is
adequacy of its capital to carried out in conjunction with the capital adequacy reporting to
support current and Bangladesh Bank.
future activities
The bank has maintained Capital to Risk Weighted Assets Ratio (CRAR)
on the solo & consolidated at 6.69 percent & 6.76 percent against the
minimum regulatory requirement of 10 percent. Tier-I capital to Risk
Weighted Assets ratio for solo & consolidated are 5.03 percent & 5.11
percent against the minimum regulatory requirement of 6 percent.
The bank’s policy is to manage and maintain its future capital considering
all material risks that are covered under pillar-2 of Basel III as well as the
result of Stress Tests. The primary objective of the capital management is
to optimize the balance between return and risk, while maintaining
economic regulatory capital in accordance with risk appetite.
ii) RBL determines its risk weighted assets (RWA) by multiplying the
exposure amount of assets with their respective risk weight given in
Basel III guidelines by Bangladesh Bank. RWA for market & operational
risks are calculated by multiplying the capital charge for these risks by
the reciprocal of minimum capital adequacy ratio (10%).
4. Credit Risk
Qualitative Disclosures
a(i) Definitions Rupali Bank Ltd. follows Bangladesh Bank’s BRPD Circular No.14 Dated 23 September
of past due and 2012 for classification of loans & advances
impaired (for Classification Types of Loans Classification Period for
accounting SL Status classification
purpose) 1 Continuous Loan SMA 2 Months
(Overdraft, Cash credit-Hypo, SS 3M
Cash credit-pledge etc) DF 6M
BL 9M
2 Demand Loan SMA 2M
(Forced Loan, PAD, LIM, FBP, SS 3M
IBP etc.)
DF 6M
BL 9M
3 Term Loan SMA 2M
(which are repayable under a SS 3M
specific repayment schedule-
within 5 years.) DF 6M
BL 9M
4 Term Loan SMA 2M
(which are repayable under a SS 3M
specific repayment schedule-
above 5 years.) DF 6M
BL 9M
5 Short term Agriculture & SMA -
Micro credit SS 12M
DF 36M
BL 60M
Short Term Consumer Financing BHs/ All
a(ii) Provisioning Particulars Agriculture Other HF LP SMEF MBs other
depending on the & Micro than /SDs Credit
group: Credit HF,LP
Standard 2.5% 5% 2% 2% 0.25% 2% 1%
UC - 5% 2% 2% 0.25% 2% 1%
SMA
SS 5% 20% 20% 20% 20 % 20% 20%
Classified DF 5% 50% 50% 50% 50 % 50% 50%
BL 100% 100% 100% 100% 100 % 100% 100%
HF=Housing Finance, LP=Loans for professionals to setup business, SMEF=Small & Medium
Enterprise Financing, BHs= Loans to Brokerage House, MBs= Loans to Merchant Bank, SDs =
Loans to Stock Dealers.
Total 17515.04
7. Market Risk
Qualitative Disclosures
a(i) Views of BOD on The Board of Directors approves all policies related to market risk, sets limits
trading/investment activities and reviews compliance on a regular basis. The objective is to obtain
maximum returns (without taking undue risks) by reducing the negative effect
of the risk.
Standardized Approach (SA) is used for calculating capital charge against
a(ii) Methods used to market risk (interest rate risk, equity position & foreign exchange risk) which
measure Market risk is determined separately. The total capital requirement in respect of market
risk is the sum of capital requirement measured in terms of two separately
calculated capital charges for specific market risk and general market risk for
each of these market risk sub-categories.
a(iii) Market Risk RBL makes investment decision based on historical data of market
Management system movements of all comparable financial instruments to avoid general market
risk. For managing specific risk RBL emphasizes on investment in
Government treasury bonds and quality financial instruments, which are less
volatile in nature. Treasury Front Office, Back Office & Mid Office have been
established and functioning through an independent organizational chain in
line with the manual.
a(iv) Policies and There are approved limits for credit deposit ratio, liquid assets to total assets
processes for mitigating ratio, maturity mismatch, commitments for both on-balance sheet and
market risk off-balance sheet items, borrowing from money market and foreign exchange
position. The limits are monitored and enforced regularly to protect against
market risks. These limits are reviewed based on prevailing market and
economic conditions to minimize risk caused by market fluctuation.
8. Operational Risk
Qualitative Disclosures
• Views of BOD on system Internal control & compliance (ICC) is the main tool in managing operational risk
to reduce Operational Risk Management which through three units of ICC i.e. monitoring, compliance and
Audit & Inspection; controls overall operation of the bank. Board audit committee
directly oversees the functions of ICC to prevent operational risks.
• Performance gap of RBL has a Human Resource Policy with the formal rules and guidelines to recruit,
executives and staffs train, assess and reward employees. This policy is applied consistently and fairly
across the bank. RBL ensures posting of right persons in the right places identifying
ideal performers and rewarding them with desired promotion and posting.
Extensive training programs are also taken for every level of employees ensuring
to build professionals with a blend of technical, business and leadership skills.
• Potential external events External events may affect business operations directly or indirectly. These
external events may stem from the socio-economic and political environment
within which the bank is operating. In order to minimize effects of unexpected
external events RBL aims at and relies on collecting and analyzing information on
a continuous and timely manner.
• Policies and processes for RBL has formed MANCOM (Management Committee) to identify measure,
mitigating operational risk monitor and control the risks through framing required policies and procedures.
The policy of managing operational risk through Internal Control and Compliance
is approved by the Board of Directors taking into account the relevant guidelines
of Bangladesh Bank. DCFCL (departmental control function check list) and QOR
(quarterly operation report) are applied for evaluation of the branches operational
performance. Manuals related to Credit, Human Resources, Finance & Accounts,
Treasury, Audit and Inspection etc. have been prepared for continuous
recognition and assessment of all material risk that could adversely affect the
achievement of RBL’s goal. The audit & inspection division makes a year wise
risk based audit plan to carry out comprehensive audits & inspections on the
banking operations to ensure procedures are in place & complied with.
• Approach for calculating RBL uses the basic indicator approach (BIA) to calculate its operational risk.
capital charge for opera- Under BIA, the capital charge for operational risk is a fixed percentage denoted by
α (alpha) of average positive annual gross income (GI) of the bank over the past
tional risk
three years. The capital charge may be expressed as follows:
K=[(GI1 + GI2 + GI3) x α] /n
Where,
K = Capital charge under the basic indicator approach
GI= Only Positive annual gross income over the previous three years
α = 15%
N = Number of the previous three years of which gross income is positive
Quantitative Disclosures
•The capital requirements Solo Consolidated
for operational risk Amount in BDT Crore
149.29 150.93
• Methods used to measure To identify and monitor the driving factors of liquidity risk, it is viewed from the
liquidity risk following aspects:
Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio (SLR)
Liquidity Coverage Ratio (LCR)
Net Stable Funding Raito (NSFR)
Structural Liquidity Profile (SLP)
Advance Deposit Ratio (ADR)
Medium Term Funding Ratio (MTFR)
Maximum Cumulative Outflow (MCO)
RBL’s own liquidity monitoring tools:
Wholesale Borrowing and Funding Guidelines
Liquidity Contingency Plan
Management Action Trigger
• Liquidity risk management According to liquidity contingency plan we have incorporated all the strategic
system decision to tackle any sort of liquidity crisis. The Asset Liability Committee (ALCO),
which meets at least once in a month, is responsible for managing and controlling
liquidity of the bank. Treasury front office closely monitors and controls liquidity
requirements on a daily basis by appropriate coordination of funding activities and
they are primarily responsible for management of liquidity in the bank. A monthly
projection of fund flows is reviewed in ALCO meeting regularly.
• Policies and processes for Asset-Liability Committee (ALCO) is responsible for monitoring liquidity measures
mitigating liquidity risk and limits in RBL. Liquidity is maintained in excess of the maximum cumulative
outflows calculated within these stress tests. Board Risk Management Committee
set policies and process to mitigate all risks including liquidity risk.
Quantitative Disclosures
Particulars Amount in BDT Crore
Liquidity Coverage Ratio 792.99%
Net Stable Funding Ratio (NSFR) 86.13%
Stock of High quality liquid assets 7921.75
Total net cash outflows over the next 30 calendar days 998.97
Available amount of stable funding 24616.29
Required amount of stable funding 28580.49
11. Remuneration
The disclosure requirement on remuneration allows market participants to assess the quality of the
bank’s compensation practices and the incentives towards risk taking the supports. The overall objective
of the Bank’s remuneration policy is to establish a framework for attracting, retaining and motivating
employees and creating incentives for delivering long-term performance within established risk limits.
Performance is judged on both the achievement and values of the bank.
Qualitative Disclosure
Sl. No. Name, composition and mandate of the main The human resource division of the bank oversees the
body overseeing remuneration. remuneration in line with its human resource policy
under direct guidance of Board of Directors of the bank.
External consultants whose advice has been The bank does not have any external consultant in
sought, the body by which they were commissioned, preparing and implementation of remuneration
and in what areas of the remuneration process. process.
A description of the scope of the bank’s RBL follows National Pay Scale. The bank follows a
remuneration policy (eg by regions, business non-discriminatory policy in respect of remuneration
lines), including the extent to which it is applicable and benefits for head quarter and regions. RBL has
to foreign subsidiaries and branches. no foreign subsidiaries and branches.
a. A description of the types of employees Types of employees considered as material risk takers:
considered as material risk takers and as senior Employees No.
managers, including the number of employees in
Managing Director and CEO 01
each group.
Deputy Managing Director 01
General Manager 08
CFO 01
Divisional & Local Office Head ( GM) 11
Divisional Head of Head Office 36
Zonal Managers 25
Branch M anagers 562
Whether the remuneration committee reviewed RBL followed National Pay Scale-2009 from 1st
the firm’s remuneration policy during the past July 2009 to 30 June 2015. The Government of the
year, and if so, an overview of any changes that Peoples Republic of Bangladesh introduced
was made. national pay scale-2015. The same has been
approved in 987th board meeting held on
December 27, 2015 and confirmed in 988th board
b. meeting held on December 30, 2015. A circular
has been issued on January 7, 2015 July 01, 2015
on December 15, 2015 effective from 1st July,
2015 in this regard.
A discussion of the bank’s policy on deferral and The pay scale describes short time and long term
vesting of variable remuneration and, if the benefits. Short time benefits include salary,
fraction of variable remuneration that is deferred
festival bonus and incentive bonus. Long term
differs across employees or groups of
employees, a description of the factors that benefits include gratuity and pension, provident
e. determine the fraction and their relative fund and leave encashment.
importance.
A discussion of the bank’s policy and criteria for
adjusting deferred remuneration before vesting
and (if permitted by national law) after vesting Not applicable.
through claw back arrangements.
Quantitative Disclosures
Number of meetings held by the main body
Not applicable
g. overseeing remuneration during the financial
year and remuneration paid to its member.
Number of employees having received a
variable remuneration award during the Not applicable.
financial year.
Report of the
Audit Committee
Report
of
the Board Audit Committee (AC)
In compliance with the guidelines of Bank Companies Act, Bangladesh Securities & Exchange
Commision (BSEC), and Bangladesh Bank directives, the Audit Committee of the Board of Rupali
Bank Limited has been functioning as a sub-committee of the Board of Directors. It has been
assisting the board in ensuring that financial statements reflect true and fair view of the state of
affairs of the bank. It also carries out the overseeing responsibilities for implementation of
different policies formulated by the Board and the Regulators.
Compoistion of Committee
The audit committee (As on 31 December 2016) comprises of the following members:
Sl. Name of Members Status in the
Status in Bank
No. Committee
01 Prof. Dr. Sushil Ranjan Howlader Independent Director of the Board Chairman
02 Mr. Mahiudduin Faruqi Director of the Board Member
03 Prof. Dr. Md. Salim Uddin, FCA, FCMA Director of the Board Member
04 Mr. A.K.M. Delwer Hussain, FCMA Director of the Board Member
05 Mr. Arijit Chowdhury Director of the Board Member
Board of Directors
Rupali Bank Limited
Rupali Bhaban
34 Dilkusha Commercial Area,
Dhaka-1000
Bangladesh.
i) We have reviewed the financial statements for the year and that to the best of
our knowledge and belief:
a) These statements do not contain any materially untrue statement or omit any
material fact or contain statements that might be misleading;
b) These statements together present a true and fair view of the company's
affairs and are in compliance with existing accounting standards and
applicable laws;
ii) There are, to the best of knowledge and belief, no transaction entered into by
the Bank during the year which is fraudulent, illegal or violation of the bank's
code of conduct.
o rt
l Rep
ci a
n a n
Fi
INDEPENDENT AUDITORS’ REPORT
TO THE SHAREHOLDERS OF
RUPALI BANK LIMITED
We have audited the accompanying consolidated financial statements of Rupali Bank Limited and
its subsidiaries (the “Group”) as well as the separate financial statements of Rupali Bank Limited
(the “Bank”), which comprise the consolidated and separate statement of financial position as at 31
December 2016, and the consolidated and separate statement of comprehensive income, consoli-
dated and separate statements of changes in equity and consolidated and separate cash flow state-
ments for the year then ended, and a summary of significant accounting policies and other explana-
tory information.
Management is responsible for the preparation of consolidated financial statements of the Group
and separate financial statements of the Bank that give a true and fair view in accordance with
Bangladesh Financial Reporting Standards as explained in note 2.01 and for such internal control
as management determines is necessary to enable the preparation of consolidated financial state-
ments of the Group and separate financial statements of the Bank that are free from material
misstatement, whether due to fraud or error. The Bank Company Act, 1991 as amended and the
Bangladesh Bank regulations require the management to ensure effective internal audit, internal
control and risk management functions of the Bank. The Management is also required to make a
self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank
on instances of fraud and forgeries.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group
and separate financial statements of the Bank based on our audit. We conducted our audit in
accordance with Bangladesh Standards on Auditing. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements of the Group and separate financial statements of the Bank
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclo-
sures in the consolidated financial statements of the Group and separate financial statements of the
Bank. The procedures selected depend on the auditors’ judgment, including the assessment of the
risks of material misstatement of the consolidated financial statements of the Group and separate
financial statements of the Bank, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation of consolidated financial
statements of the Group and separate financial statements of the Bank that give a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and separate financial statements
of the Bank is prepared in accordance with Bangladesh Accounting Standards (BASs) and Bangla-
desh Financial Reporting Standards (BFRSs) give a true and fair view of the consolidated financial
position of the Group and separate financial position of the Bank as at 31 December 2016, and of
its consolidated and separate financial performance and its consolidated and separate cash flows
for the year then ended in accordance with Bangladesh Financial Reporting Standards as explained
in note 2.01
In accordance with the Companies Act 1994, the Securities and Exchange Rules 1987, the Bank
Company Act 1991 as amended and the rules and regulations issued by Bangladesh Bank, we also
report the following:
(a) we have obtained all the information and explanation which to the best of our knowledge and
belief were necessary for the purposes of our audit and made due verification thereof;
(b) to the extent noted during the course of our audit work performed on the basis stated under
the Auditors’ Responsibility section in forming the above opinion on the consolidated financial
statements of the Group and separate financial statements of the Bank and considering the
reports of the management to Bangladesh Bank on anti-fraud internal controls and instances
of fraud and forgeries as stated under the Management’s Responsibility for the Financial
Statements and Internal Control:
i) internal audit, internal control and risk management arrangements of the Group and the Bank
as disclosed in note 2.29 of the financial statements appeared to be materially adequate;
ii) nothing has come to our attention regarding material instances of forgery or irregularity or
administrative error and exception or anything detrimental committed by employees of the
Bank and its related entities.
(c) the financial statements of subsidiaries of the Bank Rupali Investment Limited and Rupali
Bank Securities Limited have been audited by G. KIBRIA & CO. Chartered Accountants and
ACNABIN, Chartered Accountants respectively and have been properly reflected in the
consolidated financial statements;
(d) in our opinion, proper books of account as required by law have been kept by the Group and
the Bank so far as it appeared from our examination of those books;
(f) the expenditure incurred was for the purposes of the Bank’s business;
(g) the consolidated financial statements of the Group and separate financial statements of the
Bank have been drawn up in conformity with prevailing rules, regulations and accounting
standards as well as with related guidance issued by Bangladesh Bank;
(h) with particular reference to note 7.10 adequate provisions have not been made as per the
BRPD circular no. 12 dated 23/09/12. Instead, the provision was fixed Tk. 1,018.18 crore as
per Bangladesh Bank’s instruction through letter no. BRPD(P1)/661/13/2017-2247 dated 18
April 2017 in response to the letter no. HO/FAD/171 dated 04 April 2017 issued by Rupali
Bank Ltd. Hence, the provision shortfall stood Tk. 1,684.03 which is to be kept by the Bank in
the next 3 years.
(i) the records and statements submitted by the branches have been properly maintained and
consolidated in the financial statements;
(j) the information and explanation required by us have been received and found satisfactory;
(k) the amount of capital shortfall of the Bank, as per risk based capital (Basel-III) is Tk. 586.13
crore (note-14.04); and
(l) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent
around 7,980 person hours for the audit of the books and accounts of the Bank.
Dated, Dhaka
27 April, 2017
Borrowing from other banks, financial institutions and agents 11(a) 1,331,897,409 1,479,806,614
Other commitments
The annexed accounting policies and other notes form an integral part of these financial statements.
Dated, Dhaka
Thursday, April 27, 2017
The annexed accounting policies and other notes form an integral part of these financial statements.
Amount inTaka
Particulars Notes
2016 2015
Amount inTaka
Particulars Notes
2016 2015
The annexed accounting policies and other notes form an integral part of these financial statements.
Dated, Dhaka
Thursday, April 27, 2017
187
Balance as at 31 December 2016 2,760,388,120 2,799,953,800 2,872,008,168 - 631,858,882 1,728,012,057 1,040,269,311 11,832,490,339
Balance as at 31 December 2015 2,400,337,500 2,799,953,800 2,872,008,168 1,513,298,170 636,251,422 1,050,226,225 1,563,649,675 12,835,724,960
The annexed accounting policies and other notes form an integral part of these financial statements.
The annexed accounting policies and other notes form an integral part of these financial statements.
Amount inTaka
Particulars Notes
2016 2015
Cash flows from operating activities
Amount inTaka
Particulars Notes
2016 2015
The annexed accounting policies and other notes form an integral part of these financial statements.
193
Issue of share capital - - - - - - - -
Balance as at 31 December - 2016 2,760,388,120 2,799,953,800 2,872,008,168 - 631,858,882 1,728,012,057 864,161,277 11,656,382,305
Balance as at 31 December - 2015 2,400,337,500 2,799,953,800 2,872,008,168 1,513,298,170 636,251,422 1,050,226,225 1,434,395,928 12,706,471,213
The annexed accounting policies and other notes form an integral part of these financial statements.
Particulars Upto 01 Month 01 to 03 Months 03 to12 Months 01 to 05 Years More than 05 years Total
Assets
Cash in hand 3,374,090,966 - - - 18,094,836,005 21,468,926,971
Balance with other banks and financial institutions 2,638,902,719 12,800,013,186 7,555,107,783 - - 22,994,023,688
Money at call and short notice 2,430,000,000 - - - - 2,430,000,000
Investments 33,032,038,102 24,000,026 5,939,806,488 8,351,414,226 32,303,964,068 79,651,222,910
Loans and advances 24,412,054,379 19,103,666,091 53,425,358,345 40,329,021,751 37,880,280,081 175,150,380,647
Fixed assets (including premises, furniture and
- - - - 14,121,395,181 14,121,395,181
fixture)
Other assets - 4,087,345,024 5,678,408,381 7,107,422,802 1,419,330,765 18,292,506,972
Non banking assets - - - - - -
Total assets 65,887,086,166 36,015,024,327 72,598,680,997 55,787,858,779 103,819,806,100 334,108,456,369
Liabilities
Borrowing from Bangladesh bank, other banks,
302,762,839 386,919,140 642,215,430 - - 1,331,897,409
Financial institutions and agents
194
Provision & Other Liabilities 4,212,346,206 9,621,497,210 21,635,926,213 6,534,393,518 - 42,004,163,147
Total Liablities 55,000,990,432 102,222,660,474 97,447,151,190 54,189,571,565 13,591,700,403 322,452,074,064
Net Liquidity difference 10,886,095,734 (66,207,636,147) (24,848,470,193) 1,598,287,214 90,228,105,697 11,656,382,305
The annexed accounting policies and other notes form an integral part of these financial statements.
1.03 Subsidiary
2.14.02 Investments
All investment in securities is initially recognized at cost, being fair value of the consideration given,
including acquisition charges associated with the investment. Premiums are amortized and discounts
accredited, using the effective yield method and are taken to discount income. The valuation methods
of investments used are:
a) Held to maturity (HTM)
Investments which have ‘fixed or determinable payments’ and are intended to be ‘held to maturity’
other than those that meet the definition of ‘held at amortized cost’, are classified as held to maturity
(HTM). These investments are subsequently measured at present value as per Bangladesh Bank
Land Nil
Building 2.50%
Furniture and fixture 10.00%
Mechanical appliance 20.00%
Motor vehicle 20.00%
2.27 Litigation
The bank is not a party to any lawsuits except those arising in the normal course of business, which were filed
against the default clients for non-performance in loans repayment and against various level of tax authority
regarding some disputed tax issues. The bank, however, provides adequate provisions as per guidelines of BAS
37.
2.28 Written Off
Write-off describes a reduction in recognized value. It refers to recognition of the reduced or zero value of an
asset. Generally, it refers to loan for which a return on the loan is now impossible or unlikely. The item’s potential
return is thus canceled and removed from (written off) the bank’s statement of financial position. Recovery
against debts written off /provided for is credited to revenue. Income is recognized where amounts are either
recovered and/or adjusted against securities/properties or advances there-against or are considered
recoverable.
2.29 Risk Management
The bank has established effective risk management for steady and stable growth of the bank in accordance with
the guidelines of Bangladesh Bank. The risk management of the bank covers following six core risks areas of
banking sector:
RM Commitees
Manage various risks at
(ALCO, MCC, FEx, different levels
AML, ICC & ICT)
As per BRPD circular no. 11 dated October 2013 Risk management Committee of the Board has been formed
and the committee has already started its operation.
a) Credit Risk Management
Credit risk is one of the prime risks of a bank. It indicates the potential loss arising from any credit approval
subject to the banking regulations in force or to be imposed by the regulatory body and to the changes in the
banking policy. Data collection check list and limit utilization form are being prepared for regular assessment.
Credit risk grading (CRG) system has been adopted by RBL as per Bangladesh Bank's instruction. The system
defines the risk profile of borrowers to ensure that account management, structure and pricing are
commensurate with the risk involved. CRG by RBL considers the following criteria:
Leverage Ratio:
ALM Committee of RBL has to maintain Leverage ratio with the instruction of Bangladesh Bank both at solo and
consolidate basis.
d) Money Laundering & terrorist financing risk Risk Management
RBL has its own guideline, approved by the Board of Directors, for prevention of money laundering in line with
Anti Money Laundering (AML) Law and Bangladesh Bank guidelines. Anti Money Laundering Division of RBL is
responsible for Money Laundering Risk Management of RBL.
RBL has a Central Compliance Unit (CCU) headed by the Chief Anti Money Laundering Compliance Officer
(General Manager) and Money Laundering Prevention Committee (MLPC) headed by Deputy Managing Director
to supervise the overall AML and CFT activities.
Each branch of RBL has an Anti Money Laundering Compliance Officer (BAMLCO) who is responsible for
compliance with Bangladesh Bank instructions relating to AML/CFT (Anti Money Laundering/ Combating
financing of Terrorism) activities in the branch. Risk is identified by the branch through analyzing the KYC (know
your customer) and TP (Transaction profile). CTR (cash transaction report) is sent to the Head Office on monthly
basis for cash transaction of 10 (ten) lac or above in a day. All these reports are sent to Bangladesh Bank through
special software within 21st of every month.
Customers are graded on the basis of risk and high risk customers are closely monitored and enhanced due
diligence is applied.
Self assessment is done by the branches and summary report is prepared and submitted to the
management and Bangladesh Bank on half yearly basis.
Independent testing procedure is done while conducting audit in the branches .The same is summarized
and placed before the management and Bangladesh Bank on half yearly basis.
As per Bangladesh Bank’s AML circular no.24 dated 03 march 2010 branches have been instructed to apply
enhanced due diligence (EDD) in opening & maintaining accounts of politically exposed persons, their
family members & close associates.
As a part of core risk inspection system check on money laundering has been introduced by CCU at branch
level.
Monthly meeting of central compliance unit (CCU) and Branch compliance unit (BCU) are arranged and the
decisions are gradually implemented.
Before establishing correspondent banking relationship, status on money laundering prevention and
combating terrorist financing of the respondent banks are obtained through a questionnaire developed by
the Bangladesh Bank. Correspondent banking relationship with any bank is established on receipt of the
desired information and subject to our satisfaction.
Management Reporting System (MRS) Committee has been formed with a General Manager as its head.
Health report of the bank is prepared annually and placed to the audit committee as well as to the Board of
Directors.
e) Internal Control and Compliance Risk
Internal control structure and system are essential to the capital assessment process. The process includes an
independent review and, where appropriate, the involvement of internal or external audits. RBL has its own ICC
manual.
Head of
Head of Head of
Audit &
Monitoring Compliance
Inspection
Related party relationship disclosure transaction during the year 2016 as per BAS-24
Sl. Status in
No. Name of the member Position the Status
committee
Dr. Sushil Ranjan Howlader , PHD Selected by the board
1 Indepen Chairman
dent in 995th board
Director meeting on 07-04-
2016 with effect from
15-05-2016.
Mr. Mohiuddin Faruqui, Re-Appointed as on
2 Director Member
LLB, MA (Accounting) 10.07.2016
Appointed as on
5 Mr. Arijit Chowdhury Director Member
06.01.2016
Director &
1 Mr. Monzur Hossain 29 28 _
Chairman
Advocate Sattyendra Chandra
2 Director 3 3 _
Bhakta
3 Mr. Mohiuddin Faruqui Director 29 18 _
2.35 List of Risk management committee in Rupali Bank Ltd. As on 31 December 2016.
3.00 Cash
Cash in hand (including foreign currencies) 3.01 2,029,106,367 2,005,830,934
Balance with Bangladesh Bank and it's agent banks
3.02 19,439,820,604 17,686,353,493
(including foreign currencies)
21,468,926,971 19,692,184,427
3.01 Cash in hand
Local currency 2,020,674,082 1,990,225,427
Foreign currency 8,432,285 15,605,506
2,029,106,367 2,005,830,934
3.02 Balance with Bangladesh Bank and it's agent banks
For details of foreign currency's amounts and rates thereof please see 'Schedule -A'
In Bangladesh
Rupali Bank Limited (Note - 4.01) 22,798,900,000 19,178,440,000
Rupali Investment Limited - 115,025,255
Rupali Bank Securities Limited - -
22,798,900,000 19,293,465,255
Outside Bangladesh
Rupali Bank Limited (Note - 4.02) 195,123,688 281,067,401
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
195,123,688 281,067,401
22,994,023,688 19,574,532,656
5.00 Money at call and short notice
6.00 Investment
6.02 Others
Ordinary shares 6.02.01 1,892,121,130 1,892,121,130
Preference shares 6.02.02 5,500,000,000 5,500,000,000
Debenture 6.02.03 13,433,830 13,433,830
Subordinated Bond 6.02.04 12,352,400,000 9,253,000,000
Mutual Fund 6.02.05 1,460,000,000 1,460,000,000
Commercial Paper 6.02.06 - 600,000,000
21,217,954,960 18,718,554,960
6.02.01 Ordinary Shares
Payable in Bangladesh
Inland bill purchased and discounted 327,873,334 258,161,428
Payable outside Bangladesh
Foreign bill purchased and discounted 1,101,499,609 1,535,019,676
1,429,372,943 1,793,181,104
7.02.01 Maturity grouping of bills purchased and discounted
Number of client 14 13
Amount of outstanding advances 55,070,000,000 42,909,100,000
Measures taken for recovery of classified loan
Bank as a whole takes following steps to recover its classified loans and advances.
ì) Sending letters and reminder to customers ;
ii) Special assets management department holds discussion with the clients to recover the loans;
iii) Disposal of security through auction;
iv) Appointing recovery specialist;
v) Legal proceedings and settlement.
In Bangladesh
Divisions Name
Urban
Dhaka region 116,425,040,647 94,804,968,578
Chittagong region 16,482,594,000 13,574,757,708
Khulna region 20,293,951,000 17,092,323,942
Rangpur region 4,462,221,000 3,556,043,451
Rajshahi region 1,979,111,000 1,466,256,924
Barisal region 3,332,761,000 2,618,058,245
Sylhet region 974,393,000 862,652,395
163,950,071,647 133,975,061,243
Rural
Dhaka region 2,681,508,000 2,000,694,794
Chittagong region 1,084,880,000 866,813,421
Khulna region 2,398,840,000 1,854,552,327
Rangpur region 1,235,547,000 1,035,236,279
Rajshahi region 1,442,474,000 884,568,941
Barisal region 1,955,634,000 1,540,255,971
Sylhet region 401,426,000 357,780,524
11,200,309,000 8,539,902,257
Out side Bangladesh - -
175,150,380,647 142,514,963,500
7.07 Sector-wise loans and advances
Government sector 214,873,000 214,873,000
Other public sector 7,269,067,000 6,196,304,000
Private sector 167,666,440,647 136,103,786,500
175,150,380,647 142,514,963,500
7.08 Sector-wise classified loans and advances
Government
Standard - -
SMA - -
Sub-standard - -
Bad/Loss 214,873,000 214,873,000
214,873,000 214,873,000
Other public
Standard 6,991,031,000 5,918,268,000
SMA - -
Sub-Standard - -
Doubtful - -
Bad/Loss 278,036,000 278,036,000
7,269,067,000 6,196,304,000
Private
Standard 123,316,128,912 103,106,062,500
SMA 9,994,720,735 10,073,000,000
Sub-standard 802,868,494 1,248,457,536
Doubtful 2,571,774,856 253,567,947
Bad/Loss 30,980,947,650 21,422,698,517
167,666,440,647 136,103,786,500
175,150,380,647 142,514,963,500
7.09 Classification of loans and advances including bill
purchased and discounted
Unclassified
Standard (including staff loan) 130,307,159,912 109,024,330,500
Special mention account (SMA) 9,994,720,735 10,073,000,000
140,301,880,647 119,097,330,500
Classified
Su-bstandard 802,868,494 1,248,457,536
Doubtful 2,571,774,856 253,567,947
Bad/Loss 31,473,856,650 21,915,607,517
34,848,500,000 23,417,633,000
175,150,380,647 142,514,963,500
Percentages of classified loans and advances 20.64% 17.00%
9.02.01 Income has been accrued as per decisions taken on board meeting # 962 dated 09/02/15 on redeemable
bond of Tk. 131.94 crore which has not yet been issued by Orion Infrastructure Ltd.
9.03 Branch adjustment accounts
Debit balance
Head office account 257,491,861,728 192,023,265,505
Branch account 244,035,941 613,771,520
257,735,897,669 192,637,037,025
Credit balance
Head office account 256,682,451,757 190,586,632,511
Branch account 37,070,977 -
256,719,522,734 190,586,632,511
1,016,374,935 2,050,404,514
9.04 Suspense account
Demand drafts paid without advice 21,403,923 56,671,570
Foreign drafts paid from suspense account 35,396,764 23,155,514
Advance paid to Rupali Securities Ltd. 119,995 85,315
WES fund purchased 82,045,593 17,818,915
Suspense A/c Sanchaypatra 690,986,804 832,441,642
Sundry debtors 2,094,111,704 869,013,958
2,924,064,784 1,799,186,914
9.05 Others
Pension paid to Rupali Bank Ltd. employees 3,739,191 4,760,538
Pension paid to retired Govt. servants 18,876,500 15,893,492
Jute, sector corp, agri. credit and others 1,454,042,946 1,454,042,946
Protested bills 152,095,688 151,957,114
Agricultural loan transferred to BKB & RAKUB 302,446,917 302,976,695
Excise duty on deposits - 1,200,680
Remission of rural house building loan 731,181 731,181
Remission of agri loans 236,612,891 236,556,832
Exchange equalization 42,893,697 42,893,697
Dividend Receivable 1,500,000 89,125,330
Brac bank (ATM) 45,677,933 193,918,964
Deferred tax assets 9.05.01 1,294,578,894 1,731,976,583
Advance tax 9.05.02 3,586,054,966 2,487,245,273
7,139,250,805 6,713,279,325
11.01 In Bangladesh
Refinance in solar power & electric Industries against jute scheme - 139,897,722
Refinance against rural housing scheme 855,315 1,403,915
Refinance against jute scheme 441,700,000 742,150,000
Refinance against Brick 552,464,286 579,750,000
Refinance in Milk Production & Artificial Insemination 32,999,000 -
1,028,018,601 1,463,201,637
11.02 Outside Bangladesh ( NOSTRO accounts )
Regular:
USD 289,750,418 15,423,477
JPY 14,128,390 1,181,500
303,878,808 16,604,977
Details in schedule- 'A'
11.03 Borrowings from other banks, financial institutions and agents
11(a) Consolidated borrowing from other banks, financial institutions and agents:
Tier-II Capital
General provision (1% to 5% of UCL and OBI) 1,593,986,225 1,631,022,188
Asset revaluation reserve ( 50%) 1,554,171,127 1,554,171,127
Revaluation reserve for securities (HTM & HFT) (50%) 391,481,414 391,481,414
Revaluation reserves for equity instrument up to 10% 6.02.01 278,228,854 278,228,854
3,817,867,619 3,854,903,582
Less: 40% of revaluation reserves for PPE, securities
889,552,558 444,776,279
& equity securities (as per Basel-III)
Total 2,928,315,061 3,410,127,303
11,836,452,758 12,698,144,285
Required capital
Total assets including off-balance sheet items 412,321,571,363 376,201,939,871
Total risk weighted assets 176,977,376,000 149,647,152,000
Required capital being 10% of total risk weighted assets 17,697,737,600 14,964,715,200
20.01 This is charged for the year 2012 & 2013 and transferred to Interest Suspanse Bad & Doubtfull Accounts
as per Bangladesh Bank letter ref. DBI-2 (UB-4)/202/2016-4098 .
2016 2015
Limit of holding of share No. of No. of
% No. of Share % No. of Share
Shareholder Shareholder
Under 5000 shares 1.02% 4,477 2,828,720 1.16% 4,881 2,789,450
5001 to 50000 1.79% 336 4,940,028 1.88% 313 4,514,793
50001 to 100000 0.71% 29 1,965,064 0.55% 20 1,323,896
100001 to 200000 1.42% 28 3,929,873 2.07% 35 4,956,726
200001 to 300000 0.88% 11 2,418,470 0.38% 4 915,971
300001 to 400000 0.39% 3 1,071,448 0.85% 6 2,031,462
400001 to 500000 0.44% 3 1,220,741 0.20% 1 473,084
500001 to 1000000 0.99% 5 2,739,295 0.55% 3 1,317,343
1000001 to 10000000 2.16% 4 5,973,459 2.18% 4 5,231,273
Over 10000000 shares 90.19% 1 248,951,714 90.19% 1 216,479,752
100.00% 4,897 276,038,812 100.00% 5,268 240,033,750
2016 2015
Curren Curren
Amount in Conversion Amount in Conversion
Name of the Bank cy cy
Foreign rate per unit Amount in BDT Foreign rate per unit Amount in BDT
Name Name
Currency F.C. Currency F.C.
NOSTRO Accounts Debit
Foreign Bank A/c (WES)
Bank of America NY /Bank WES USD USD
BCCI " " 15276.44 41.9999817 641,610.20
HSBC London GBP GBP 732.33 60.0000000 43,939.80
Commerz " 46,499.27 83.60218064 3,887,440.37 " 47269.18 116.7283285 5517652.37
Sonali London " 4,657.64 96.75354686 450,643.19 "
Sub Total 4,338,083.56 6,203,202.37
Regular
252
National WMB London Pound Sterling) " "
Commerz " 392,101.20 54.80227987 21,488,039.70 "
Sonali Bank London " " 7873.04 116.7409527 919106.19
Total 21,488,039.70 7,873.04 116.74 919,106.19
Standard Chartered Bank, Kolkata (ACU) ACU 98,565.04 78.98113286 7,784,778.52 ACU 161436.3 78.56510909 12683260.52
Sonali Bank ,Kolkata (ACU) " 135,499.20 78.98999662 10,703,081.35 " 15184.8 78.5899946 1193373.35
Arif Habib Bank Ltd. Karachi, Pakistan (ACU) " " -
AB Bank, Mumbai, India (ACU) " 552,036.94 78.99119751 43,606,058.96 " 318291.07 78.60022495 25017749.7
United Bank of India " 56395.62 78.98999621 4,454,689.81 " 72555.17 78.59 5702110.81
Summit Bank " 84,055.71 78.74247353 6,618,754.52 " 100134.06 78.38214609 7848722.52
Peoples Bank Comloboo (ACU) " 9,896.86 77.31388238 765,164.67 " 44870.86 78.58999515 3526400.67
Total 73,932,527.83 55,971,617.57
Rupali Bank Limited Schedule-A
253
West pack Banking Corporation, Australia AUD - AUD
Commerz AUD 132,153.41 61.99254594 8,192,526.34 AUD 49708.63 56.04124153 2785733.34
J.P. Morgan Change Bank , Singapore SGD - SGD 15932.92 55.88710042 890444.70
Commerz (CHF) CHF 22,483.35 81.67282011 1,836,278.60 CHF 10698.89 80.76275389 864071.82
Union Bank Swizerland CHF - CHF
Total 12,366,283.47 12,365,174.39
Sonali Bank London USD 123039.31 78.96929087 9,716,327.06 USD 11797.51 78.58090902 927059.06
S.C.B NY " 0 " 193169.69 78.49268123 15162406.90
Commerz " 228309.38 78.99032182 18,034,231.40 " -
ICICI " 87218.18 78.98999532 6,889,363.63 " 101402.88 78.5892238 7969173.63
HSBC NY USA " - " -
Masrek Bank PSC NY " - " 1393933.07 78.10939338 108879266.51
Total 34,639,922.09 132,937,906.10
Schedule-A
2016 2015
Curren Curren
Amount in Conversion Amount in Conversion
Name of the Bank cy cy
Foreign rate per unit Amount in BDT Foreign rate per unit Amount in BDT
Name Name
Currency F.C. Currency F.C.
254
JP Morgan Chase NY " "
ICICI " "
Citi Bank NY " "
Commerz " 194,481.30 86.4709633 16,816,985.36 " 196253.07 78.58973416 15,423,476.60
Mashreq Bank PSC NY " 2,963,807.64 78.9460449 233,980,890.99 "
Standard Chartered Bank, NY " 493,513.16 78.9290848 38,952,542.08 "
Total 289,750,418.43 15,423,476.60
Standard Chartered Bank,Tokyo JPY 19146129.18 0.7379241 14,128,389.95 JPY 1,810,174.00 0.652699658 1,181,499.95
Bank of Tokyo Mitsubishi, Japan (JPY) " "
Amex Japan " "
Total 14,128,389.95 1181499.95
G.Total 303,878,808.38 16,604,976.55
Rupali Bank Limited Schedule - "B-1"
Investment against Government Treasury Bonds (HTM)
for the year ended 31 December 2016
255
6 5 years BGTB Treasury Bond -2017 HTM
7 5 years BGTB Treasury Bond -2018 HTM 172,027,423.90 171,964,400.00 (26,800.00) 171,937,600.00 11.72% 2/6/2013 2/6/2018
8 5 years BGTB Treasury Bond -2018 HTM 154,700,018.50 154,700,018.50 - 154,700,018.50 11.82% 3/6/2013 3/6/2018
9 5 years BGTB Treasury Bond -2018 HTM 82,846,367.00 82,915,000.00 31,500.00 82,946,500.00 11.70% 5/8/2013 5/8/2018
10 5 years BGTB Treasury Bond -2018 HTM 106,781,363.50 106,830,500.00 23,900.00 106,854,400.00 11.75% 7/10/2013 7/10/2018
11 5 years BGTB Treasury Bond -2018 HTM 116,970,136.20 117,021,500.00 25,900.00 117,047,400.00 11.78% 8/14/2013 8/14/2018
12 5 years BGTB Treasury Bond -2018 HTM 145,331,010.64 145,433,400.00 53,100.00 145,486,500.00 11.78% 9/11/2013 9/11/2018
13 5 years BGTB Treasury Bond -2018 HTM 151,563,325.93 151,686,500.00 65,900.00 151,752,400.00 11.84% 10/9/2013 10/9/2018
14 5 years BGTB Treasury Bond -2018 HTM 85,199,652.10 85,180,000.00 (17,900.00) 85,162,100.00 9.59% 10/15/2014 10/15/2019
15 5 years BGTB Treasury Bond -2018 HTM 76,610,491.10 76,626,900.00 15,900.00 76,642,800.00 9.66% 11/12/2014 11/12/2019
16 5 years BGTB Treasury Bond -2018 544,512,581.80 544,512,581.80 (21,100,981.80) 523,411,600.00 11.70% 6/5/2013 6/5/2018
17 5 years BGTB Treasury Bond -2018 149,238,736.80 149,238,736.80 (6,012,436.80) 143,226,300.00 11.72% 2/6/2013 2/6/2018
Total -B 2,677,010,503.09 2,677,220,337.10 (26,990,818.60) 2,650,229,518.50
Rupali Bank Limited Schedule - "B-1"
Investment against Government Treasury Bonds (HTM)
for the year ended 31 December 2016
Sl. Amount of Value as on . Increase / Coupon Date of
Nature of Investment Status Present Value Date of Issue
No. Investment 01.01.2016 Decrease Rate % Maturity
1 10 years BGTB Treasury Bond-2017 HTM 500,000,000.00 500,000,000.00 - 500,000,000.00 11.95% 9/5/2007 9/5/2017
2 10 years BGTB Treasury Bond-2017 HTM 2,000,000,000.00 2,000,000,000.00 - 2,000,000,000.00 11.74% 12/5/2007 12/5/2017
3 10 years BGTB Treasury Bond-2022 HTM 112,900,000.00 112,900,000.00 - 112,900,000.00 11.75% 8/22/2012 8/22/2022
4 10 years BGTB Treasury Bond-2022 HTM 161,300,000.00 161,300,000.00 - 161,300,000.00 11.75% 9/12/2012 9/12/2022
5 10 years BGTB Treasury Bond-2022 HTM 143,200,000.00 143,200,000.00 - 143,200,000.00 11.80% 10/10/2012 10/10/2022
6 10 years BGTB Treasury Bond-2022 HTM 168,509,221.68 168,585,400.00 30,500.00 168,615,900.00 11.75% 11/14/2012 11/14/2022
7 10 years BGTB Treasury Bond-2022 HTM 193,288,225.00 193,309,300.00 8,600.00 193,317,900.00 11.80% 12/12/2012 12/12/2022
8 10 years BGTB Treasury Bond-2023 HTM 106,900,000.00 106,900,000.00 - 106,900,000.00 11.90% 1/9/2013 1/9/2023
9 10 years BGTB Treasury Bond-2023 HTM 92,200,000.00 92,200,000.00 - 92,200,000.00 12.00% 2/13/2013 2/13/2023
10 10 years BGTB Treasury Bond-2023 HTM 105,537,955.42 105,597,200.00 26,700.00 105,623,900.00 12.10% 4/10/2013 4/10/2023
11 10 years BGTB Treasury Bond-2023 HTM 124,912,088.80 124,997,200.00 39,600.00 125,036,800.00 12.10% 3/13/2013 3/13/2023
12 10 years BGTB Treasury Bond-2023 HTM 133,660,531.20 133,747,400.00 41,400.00 133,788,800.00 12.10% 3/13/2013 3/13/2023
13 10 years BGTB Treasury Bond-2023 HTM 76,968,686.01 76,925,300.00 (21,400.00) 76,903,900.00 12.22% 7/17/2013 7/17/2023
14 10 years BGTB Treasury Bond-2023 HTM 74,782,565.91 74,817,500.00 17,900.00 74,835,400.00 12.22% 7/17/2013 7/17/2023
15 10 years BGTB Treasury Bond-2023 HTM 87,866,604.00 87,896,300.00 15,600.00 87,911,900.00 12.22% 7/17/2013 7/17/2023
16 10 years BGTB Treasury Bond-2023 HTM 72,522,413.55 72,545,400.00 12,400.00 72,557,800.00 12.22% 7/17/2013 7/17/2023
17 10 years BGTB Treasury Bond-2023 HTM 65,037,000.00 65,051,000.00 7,900.00 65,058,900.00 12.16% 11/20/2013 11/20/2023
18 10 years BGTB Treasury Bond-2023 HTM 1,000,000,000.00 1,000,000,000.00 - 1,000,000,000.00 12.16% 11/20/2013 11/20/2023
19 10 years BGTB Treasury Bond-2022 HTM 317,603,700.00 315,886,800.00 (1,705,300.00) 314,181,500.00 11.75% 9/12/2012 9/12/2022
256
1 15 years BGTB Treasury Bond-2022 HTM 500,000,000.00 500,000,000.00 - 500,000,000.00 14.00% 7/11/2007 7/11/2022
2 15 years BGTB Treasury Bond-2022 HTM 300,000,000.00 300,000,000.00 - 300,000,000.00 13.48% 9/12/2007 9/12/2022
3 15 years BGTB Treasury Bond-2022 HTM 200,000,000.00 200,000,000.00 - 200,000,000.00 12.94% 11/14/2007 11/14/2022
4 15 years BGTB Treasury Bond-2023 HTM 500,000,000.00 500,000,000.00 - 500,000,000.00 12.14% 10/15/2008 10/15/2023
5 15 years BGTB Treasury Bond-2027 HTM 71,400,000.00 71,400,000.00 - 71,400,000.00 11.88% 9/19/2012 9/19/2027
6 15 years BGTB Treasury Bond-2027 HTM 19,659,237.73 19,663,000.00 1,500.00 19,664,500.00 11.93% 10/17/2012 10/17/2027
7 15 years BGTB Treasury Bond-2027 HTM 18,024,671.00 18,022,500.00 (900.00) 18,021,600.00 12.10% 12/19/2012 12/19/2027
8 15 years BGTB Treasury Bond-2028 HTM 16,100,000.00 16,100,000.00 - 16,100,000.00 12.20% 1/16/2013 1/16/2028
9 15 years BGTB Treasury Bond-2028 HTM 9,193,798.13 9,194,300.00 200.00 9,194,500.00 12.38% 3/20/2013 3/20/2028
10 15 years BGTB Treasury Bond-2028 HTM 47,109,391.41 47,122,400.00 6,300.00 47,128,700.00 12.40% 6/19/2013 6/19/2028
11 15 years BGTB Treasury Bond-2028 HTM 19,010,250.40 19,016,100.00 2,900.00 19,019,000.00 12.40% 7/24/2013 7/24/2028
12 15 years BGTB Treasury Bond-2028 HTM 44,151,312.37 44,160,200.00 4,700.00 44,164,900.00 12.42% 9/25/2013 9/25/2028
13 15 years BGTB Treasury Bond-2028 HTM 28,963,405.12 28,971,200.00 4,300.00 28,975,500.00 12.42% 10/23/2013 10/23/2028
14 15 years BGTB Treasury Bond-2029 HTM 29,537,218.40 29,539,100.00 1,900.00 29,541,000.00 11.47% 11/26/2014 11/26/2029
15 15 years BGTB Treasury Bond-2029 HTM 43,582,207.90 43,589,500.00 8,000.00 43,597,500.00 11.47% 11/26/2014 11/26/2029
16 15 years BGTB Treasury Bond-2029 HTM 500,006,000.00 499,983,100.00 (26,900.00) 499,956,200.00 11.47% 11/26/2014 11/26/2029
17 15 years BGTB Treasury Bond-2029 491,315,500.00 491,315,500.00 306,100.00 491,621,600.00 7.79% 4/27/2016 4/27/2031
Total -D 2,838,052,992 2,346,761,400 308,100 2,838,385,000
Rupali Bank Limited Schedule - "B-1"
Investment against Government Treasury Bonds (HTM)
for the year ended 31 December 2016
Sl. Amount of Value as on . Increase / Coupon Date of
Nature of Investment Status Present Value Date of Issue
No. Investment 01.01.2016 Decrease Rate % Maturity
1 20 years BGTB Treasury Bond-2027 HTM 349,000,000.00 349,000,000.00 - 349,000,000.00 15.95% 7/25/2007 7/25/2027
2 20 years BGTB Treasury Bond-2027 HTM 245,100,000.00 245,100,000.00 - 245,100,000.00 14.23% 9/26/2007 7/26/2027
3 20 years BGTB Treasury Bond-2027 HTM 97,000,000.00 97,000,000.00 - 97,000,000.00 13.49% 11/28/2007 11/28/2027
4 20 years BGTB Treasury Bond-2028 HTM 500,000,000.00 500,000,000.00 - 500,000,000.00 13.07% 7/23/2008 7/23/2028
5 20 years BGTB Treasury Bond-2032 HTM 60,900,000.00 60,900,000.00 - 60,900,000.00 12.16% 8/29/2012 8/29/2032
6 20 years BGTB Treasury Bond-2032 HTM 30,400,000.00 30,400,000.00 - 30,400,000.00 12.16% 9/26/2012 9/26/2032
7 20 years BGTB Treasury Bond-2032 HTM 21,168,460.29 21,169,900.00 600.00 21,170,500.00 12.16% 10/25/2012 10/25/2032
8 20 years BGTB Treasury Bond-2032 HTM 9,770,913.45 9,772,200.00 500.00 9,772,700.00 12.18% 11/28/2012 11/28/2032
9 20 years BGTB Treasury Bond-2032 HTM 20,600,000.00 20,600,000.00 - 20,600,000.00 12.28% 12/26/2012 12/26/2032
10 20 years BGTB Treasury Bond-2033 HTM 15,466,112.36 15,467,400.00 600.00 15,468,000.00 12.48% 3/27/2013 3/27/2033
11 20 years BGTB Treasury Bond-2033 HTM 22,584,484.22 22,588,400.00 1,900.00 22,590,300.00 12.48% 6/26/2013 6/26/2033
12 20 years BGTB Treasury Bond-2033 HTM 21,987,537.50 21,990,900.00 1,800.00 21,992,700.00 12.48% 9/25/2013 9/25/2033
13 20 years BGTB Treasury Bond-2033 HTM 28,474,011.96 28,477,300.00 2,000.00 28,479,300.00 12.33% 12/26/2013 12/26/2033
14 20 years BGTB Treasury Bond-2034 HTM 50,509,672.20 50,512,600.00 2,800.00 50,515,400.00 11.98% 10/29/2014 10/29/2034
15 20 years BGTB Treasury Bond-2034 HTM 22,663,291.20 22,665,200.00 2,000.00 22,667,200.00 11.98% 11/26/2014 11/26/2034
16 20 years BGTB Treasury Bond-2034 HTM 37,536,798.60 37,539,100.00 2,500.00 37,541,600.00 11.98% 11/26/2014 11/26/2034
17 20 years BGTB Treasury Bond-2034 HTM 1,842,666,600.00 1,842,662,000.00 (5,700.00) 1,842,656,300.00 11.98% 11/26/2014 11/26/2034
18 20 years BGTB Treasury Bond-2034 HTM 318,365,100.00 318,226,700.00 (311,100.00) 317,915,600.00 12.10% 7/23/2014 7/23/2034
257
22 20 years BGTB Treasury Bond-2032 HTM 114,212,299.90 114,127,100.00 (191,300.00) 113,935,800.00 12.07% 4/25/2012 4/25/2032
23 20 years BGTB Treasury Bond-2034 HTM 110,230,087.00 110,174,800.00 (124,200.00) 110,050,600.00 12.14% 4/23/2014 4/23/2034
Total -E 4,453,649,514.08 4,453,073,400.00 (1,323,700.00) 4,451,749,700.00
258
10 15 years Treasury Bond -2023 205,853,800 205,853,800 64,383,245 270,237,044.72 11.75% 5/23/2012 5/23/2027
15 years Treasury Bond -2024 600,000,000 793,649,029.74 627,244 794,276,273.75 12.14% 14/01/2009 14/01/2024
11 HFT
(BD0924261151)
12 15 years Treasury Bond-2027 HFT 207,265,000 265,574,382.28 6,444,345 272,018,727.46 11.85% 7/18/2012 7/18/2027
13 15 years Treasury Bond-2029 HFT 500,118,000.00 655,660,647.29 15,357,390 671,018,037.44 11.47% 11/26/2014 11/26/2029
Total (B) 1,763,236,800 2250939255 86,438,144 2,337,377,400
20 years Treasury Bond -2028 700,000,000 702,575,596.28 321,762,288 1,024,337,883.90 13.02% 24/12/2008 24/12/2028
11 HFT
(BD0928241209)
Total (C) 700,000,000 702,575,596 321,762,288 1,024,337,884
G.Total (A+B+C) 6,216,806,349 6,184,963,061 544,326,458 7,726,646,901
Rupali Bank Limited
Investment against Government Treasury Bill (HFT)
for the year ended 31 December 2016
1 182 Days Treasury Bill HFT 2,928,926,000 68,787,400 2,997,713,400 4.87% 10-Jul-16 8-Jan-17
2 182 Days Treasury Bill HFT 1,461,505,000 37,236,400 1,498,741,400 5.28% 11-Jul-16 9-Jan-17
3 182 Days Treasury Bill HFT 973,546,000 25,073,400 998,619,400 5.45% 18-Jul-16 16-Jan-17
5,363,977,000 - 131,097,200 5,495,074,200
1 Bangladesh Bank Bill HFT 7,995,448,000.00 1,940,300 7,997,388,300.00 2.9686 26-Dec-2016 2-Jan-2017
2 Bangladesh Bank Bill HFT 1,749,004,250.00 138,950 1,749,143,200.00 2.9686 28-Dec-2016 4-Jan-2017
3 Bangladesh Bank Bill HFT 11,743,314,250.00 (25,700) 11,743,288,550.00 2.9686 29-Dec-2016 5-Jan-2017
Face Increase/
Purchase Market value
Sl. Date of value Total Market
Name of Company No. of Share Price of Purchase Value of Each share (Decrease) value
No. Purchase of Each value 31-12-16
Each share 31-12-16
share
1 2 3 4 5 6 7 5x7=8 9 5 X 9 = 10 10 - 8 = 11
Investment in Bangladesh
A . Government Organization
1 Investment Corporation of 02.12.77 25,464,380 10 23.33 594,169,000 104.50 2,661,027,710 2,066,858,710
Bangladesh ( ICB)
A Total 25,464,380 594,169,000 2,661,027,710 2,066,858,710
B . Others Organization
1 National Tea Co. Ltd. 4,540 10 10.01 45,440 728.60 3,307,844 3,262,404
2 Bangladesh Shipping Corp. 20.07.77 364 100 100 36,400 470.20 171,153 134,753
260
4 Padma Printers andColour Ltd. 18.10.79 16,710 10 10 167,100 17.70 295,767 128,667
5 Standard Ceramics Ltd 28.09.96 390 10 15 5,850 51.60 20,124 14,274
6 S.T.M Ltd 09.11.85 563 100 100 56,362 - - (56,362)
7 Swan Textile Mills Ltd 10.11.85 578 100 100 57,800 - - (57,800)
8 IDLC Ltd 20.01.93 100,546 10 5.07 510,000 57.00 5,731,122 5,221,122
9 Heidelberg Cement 16.08.89 4,860 10 19 90,728 562.10 2,731,806 2,641,078
10 Bangladesh chemical ind. ltd 27.05.95 4,170 10 10 41,700 53.00 221,010 179,310
11 Eastern Bank ltd 05.10.92 762,939 10 6.36 4,850,210 29.00 22,125,231 17,275,021
12 Apex weaving finishing mills ltd 09.02.95 480 10 10 4,800 6.10 2,928 (1,872)
13 Beximco 17-06-95 8,412 10 17.30 145,550 26.00 218,712 73,162
Bangladesh Electricity Meter Co. 22.08.95 18,530 10 10 185,300 61.50 1,139,595 954,295
14 Ltd
15 7th ICB Mutual Fund 15.07.95 4,771 10 0.65 3,100 10.00 47,710 44,610
Rupali Bank Limited Schedule - 'B-3'
Summary of Investment against Quoted Share
for the year ended 31 December 2016
Face
Purchase Market value Increase/
Sl. Date of value Total Market
Name of Company No. of Share Price of Purchase Value of Each share (Decrease) value
No. Purchase of Each value 31-12-16
Each share 31-12-16
share
1 2 3 4 5 6 7 5x7=8 9 5 X 9 = 10 10 - 8 = 11
Specialized Jute Yarn Manufac. 22.07.86 19,880 10 10 198,800 - - (198,800)
16 Co. Ltd
17 Azadi Printers Ltd 17.01.92 756 100 100 75,600 60.00 45,360 (30,240)
18 Bengal Fine Ceramic Ltd. 18.07.92 2,572 10 100 257,200 67.00 172,324 (84,876)
19 8th ICB Mutual Fund 10.08.96 210 10 10 2,100 60.00 12,600 10,500
20 Wonder Land Toys Ltd 24.08.96 41,730 10 10 417,300 4.00 166,920 (250,380)
21 Excel Sure Shoe Ltd 28.11.96 3,277 10 100 327,700 25.00 81,925 (245,775)
22 Niloy Cement Industries Ltd 26.06.97 2,162 10 100 216,200 25.90 55,996 (160,204)
23 Uttara Finance & Investment Ltd 14.07.97 159,204 10 8.71 1,387,420 61.30 9,759,205 8,371,785
24 Square Textile Ltd 11.08.02 34,276 10 6.53 223,940 69.20 2,371,899 2,147,959
25 ICB Islamic Bank Ltd 01.07.08 8,056,700 10 10 80,567,000 5.10 41,089,170 (39,477,830)
26 Grameen Phone Ltd 04.12.08 1,283,800 10 74 95,001,200 284.10 364,727,580 269,726,380
27 Summit Power 26.09.10 1,835,994 10 59 109,067,938 37.00 67,931,778 (41,136,160)
261
30 Monno Ceramics 30/03/97 8,050 10 92.93 748,098 40.30 324,415 (423,683)
31 Square Pharma 1/1/2005 109,430 10 5.41 591,500 249.1 27,259,013 26,667,513
32 Appex Tanary Ltd. 30/03/97 18,400 10 65.79 1,210,603 135.6 2,495,040 1,284,437
33 Appex Foot wear Ltd. 30/03/97 4,500 10 36.95 166,253 330.3 1,486,350 1,320,098
34 BD Lamps 30/03/97 5,460 10 169.33 924,550 174.5 952,770 28,221
35 Green Delta Insurance 30/03/97 7,199 10 11.33 81,584 49.7 357,790 276,206
36 Delta Life Insurance 12/5/1999 35,062 10 0.24 8,500 100.6 3,527,237 3,518,737
37 Progoti Insurance 27/07/2009 753 10 8.47 6,380 27.1 20,406 14,026
38 Beximco Pharma 5/3/1999 3,853 10 7.52 28,960 80.8 311,322 282,362
39 Atlas Bangladesh 30/03/97 1,302 10 22.18 28,880 109.4 142,439 113,559
40 Bata Shoe 30/03/97 1,500 10 132.83 199,238 1142 1,713,000 1,513,762
41 BGIC Ltd. 16.11.09 17,721 10 13.87 245,710 19.2 340,243 94,533
43 National Bank Ltd. 11.1-2.3.11 299,883 10 36.41 10919127.53 10.2 3,058,807 (7,860,321)
44 Pubali Bank Ltd. 11.1-28.2.11 64,506 10 47.67 3074856.20 24 1,548,144 (1,526,712)
Rupali Bank Limited Schedule - 'B-3'
Summary of Investment against Quoted Share
for the year ended 31 December 2016
Face
Purchase Market value Increase/
Sl. Date of value Total Market
Name of Company No. of Share Price of Purchase Value of Each share (Decrease) value
No. Purchase of Each value 31-12-16
Each share 31-12-16
share
1 2 3 4 5 6 7 5x7=8 9 5 X 9 = 10 10 - 8 = 11
45 AB Bank 12.1-2.3.11 340,404 10 60.03 20432779.27 22.3 7,591,009 (12,841,770)
46 Exim Bank 12.1-2.3.11 71,309 10 28.03 1999121.13 11.7 834,315 (1,164,806)
47 Prime Bank 12.1-2.3.11 110,352 10 36.44 4021543.41 17.7 1,953,230 (2,068,313)
48 Shajalal Bank 12.1-2.3.11 70,785 10 33.52 2372655.63 15 1,061,775 (1,310,881)
49 Southest Bank 12.1-22.9.11 464,152 10 38.44 17842499.74 18.7 8,679,642 (9,162,857)
50 Trust bank 12.1-2.3.11 130,523 10 27.96 3649873.06 23.8 3,106,447 (543,426)
51 Uttara Bank 12.1-27.2.11 117,649 10 56.14 6605149.82 24.7 2,905,930 (3,699,220)
52 Heidelberg Cement 12.1-2.2.11 19,300 10 254.04 4903044.99 552.3 10,659,390 5,756,345
53 Summit Power 12.1-27.2.11 37,436 10 54.33 2033844.87 37 1,385,132 (648,713)
54 Brac Bank 16.1-27.2.11 22,770 10 37.31 849489.00 64.1 1,459,557 610,068
55 ICB 16/01/11 12,640 10 154.42 1,951,868 104.5 1,320,880 (630,988)
56 IDLC 16.1-2.3.11 142,946 10 79.51 11366190.95 57 8,147,922 (3,218,269)
262
58 Mutual trust Bank 16.1-6.2.11 86,770 10 2213670.95 23 1,995,710
59 Power Grid 16.1-6.2.11 88,000 10 83.82 7376434.01 54 4,752,000 (2,624,434)
60 Standard Bank 16.1-1.2.11 111,182 10 18.39 2044684.60 11.9 1,323,066 (721,619)
61 PLFSL 16.1-30.1.11 1,570 10 104.21 163614.20 9.5 14,915 (148,699)
62 Beximco 17.1-27.2.11 57,384 10 91.76 5265535.88 26 1,491,984 (3,773,552)
63 ICB 3rd NRB 17.1-1.2.11 20,000 10 12.80 256011.00 5.6 112,000 (144,011)
64 One Bank Ltd 1.2-2.3.11 127,860 10 20.45 2614923.30 18.3 2,339,838 (275,085)
65 Titas Gas 12,600 10 90.74 1143351.72 49.4 622,440 (520,912)
B Total 19,896,812 816,137,150 836,923,585 20,786,435
A+B Sub Total 45,361,192 1,410,306,150 3,497,951,295 2,087,645,145
C. Foreign Investment
66 Samait S Bank (Ex. Arif Habib Bank) 30.12.2007 32,777,450 10.00 11.08 363,273,340 0.00 363,273,340 -
Total 32,777,450 363,273,340 363,273,340 -
A+B+C G.Total 78,138,642 1,773,579,490 3,861,224,635 2,087,645,145
Rupali Bank Limited Schedule - 'B-3.01'
Summary of Investment against Unquoted Share
for the year ended 31 December 2016
Face
Purchase Purchase Market value Increase/
Sl. Date of value Total Market
Name of Company No. of Share Price of Value of Each share (Decrease)
No. Purchase of Each value 31-12-16
Each share 31-12-16 value
share
263
4 03.05.12 500,000,000 10 10 5,000,000,000 10 5,000,000,000 -
Convertible equity share (Orion
5 Infrastructure Ltd.) 03.05.12 50,000,000 10 10 500,000,000 10 500,000,000
Total 559,367,705 5,618,541,640 5,618,541,640
Schedule - "B-4"
A) Debenture (Approved):
Bangladesh Steel & Eng. Corp:
Bangladesh Mechine Tools Ltd. 11.75% 4,000,000 69,350 11,350,000 26.06.1980 30.12.1989 11,419,350
Sub Total (1) 4,000,000 69,350 11,350,000 - - 11,419,350
264
Total (A) (1+2) 28,900,000 2,583,200 17,553,310 - - 20,136,510
B) Debenture (Unapproved): - - - - -
Beximco Synthetics Ltd. 14.00% 50,000,000 10,850,630 9,241,560 30.09.1993 01.09.2003 20,092,190
50,000,000 10,850,630 9,241,560 - - 20,092,190
G.Total (A+B) 78,900,000 13,433,830 26,794,870 - - 40,228,700
Rupali Bank Limited Schedule - "B-5"
Investment against corporate bonds
for the year ended 31 December 2016
Sl. Amount of Increase / Interest Date of
Nature of Investment Status Present Value Date of Issue
No. Investment Decrease Rate(%) Maturity
265
15 Subordinated bond of AB Bank Limietd 7-Yrs 1,000,000,000.00 1,000,000,000.00 Floating 9/29/2015 9/28/2022
16 Subordinated bond of Standard Bank Limited 6-Yrs 500,000,000.00 500,000,000.00 Floating 12/1/2015 11/30/2021
17 Subordinated bond of Dhaka Bank Ltd. 2nd sub. Debt 7 Yrs. 1,000,000,000.00 1,000,000,000.00 Floating 5/15/2016 5/15/2023
18 Subordinated bond of IFIC Bank Ltd. 7 Yrs. 1,000,000,000.00 1,000,000,000.00 Floating 5/29/2016 5/29/2023
19 Subordinated bond of Trust Bank Ltd. III 7 Yrs. 900,000,000.00 900,000,000.00 Floating 10/27/2016 10/27/2023
20 Subordinated bond of One Bank Ltd. Bond-II 7 Yrs. 200,000,000.00 200,000,000.00 Floating 10/27/2016 10/27/2023
21 Subordinated bond of Southeast Bank Ltd. Bond-II 7 Yrs. 250,000,000.00 250,000,000.00 Floating 10/27/2016 10/27/2023
Total 12,352,400,000.00 - 12,352,400,000.00
Investment against Mutual fund for the year ended 31 December 2016
Sl. Amount of Increase / Interest
Name of mutual fund Status Present Value Date of Issue Tenor
No. Investment Decrease Rate
1 Bangladesh Fund 1,060,000,000.00 - 1,060,000,000.00 Dividend 2010 10 years
15 Vanguard AML Rupali Bank Balnced Fund 400,000,000.00 (44,000,000.00) 356,000,000.00 Dividend 2013 10 years
Total 1,460,000,000.00 (44,000,000.00) 1,416,000,000.00
Rupali Bank Limited Schedule - "C"
Classification and provisioning of loans and advances including bill purchased and discounted
for the year ended 31 December 2016
Fig. in Tk.
Amount of
Percentag
Outstanding Provision
Base for e (%)
Status Continous Demand Fixed Term Loan Staff loan Stag & MC Amount as of 31 Required as of
Provision of 31 December
December 2016
Provision 2016
Unclassified:
Off Balance sheet Items 16,935,814,993 16,935,814,993 16,935,814,993 1% 169,358,150
Sub- Total (A) 16,935,814,993 - - - - 16,935,814,993 16,935,814,993 169,358,150
266
Sub- Total (B) 42,099,195,795 6,891,738,813 83,229,552,341 - 1,741,868,828 133,962,355,777 132,337,453,524 1,424,628,075
Staff Loan (C) - - - 6,339,524,870 - 6,339,524,870 - -
Sub- Total 42,099,195,795 6,891,738,813 83,229,552,341 6,339,524,870 1,741,868,828 140,301,880,647 132,337,453,524 1,424,628,075
Classified:
Substandard (Micro Credit) - - 24,548,136 24,548,136 20,610,133 5% 1,030,507
Doubtful (Micro Credit) - - 38,377,180 38,377,180 26,388,456 5% 1,319,423
Substandard 417,419,848 1,234,740 1,330,365,770 - 1,749,020,358 178,595,672 20% 35,719,134
Doubtful 1,185,393,154 2,831,971 3,004,472,551 - 4,192,697,676 1,830,476,818 50% 915,238,409
Bad/ Loss 8,689,362,674 2,797,828,281 17,135,898,754 220,766,941 28,843,856,650 24,474,875,772 100% 24,474,875,772
Sub- Total (D) 10,292,175,676 2,801,894,992 21,470,737,075 - 283,692,257 34,848,500,000 26,530,946,851 25,428,183,245
G.Total (A+B+C+D) 52,391,371,471 9,693,633,805 104,700,289,416 6,339,524,870 2,025,561,085 175,150,380,647 158,868,400,375 27,022,169,469
Schedule - "C-1"
Rupali Bank Limited
Classification and provisioning of loans and
advances including bill purchased and discounted
for the year ended 31 December 2016
Amount of
Outstanding Percentage
Provision
Status Amount as of Base for Provision
Required as of 31
31 December 2016 of Provision December 2016
Unclassified:
Off Balance sheet Items 16,935,814,993 16,935,814,993 1% 169,358,150
Sub- Total (A) 169,358,150
COST DEPRECIATION
Revalued/Addi Charges W.D.V. as on
Particulars Balance as on Sale/Disposal/ Balance as on Rate Balance as on Balance as on
tion during the during the 31.12.2016
01.01.2016 year Adjustment 31.12.2016 (%) 01.01.2016 year 31.12.2016
1 2 4 5 6 7 8 9 10 11
Land 10,011,039,466 - - 10,011,039,466 - - - 10,011,039,466
Building 3,781,981,896 - 115,647,497 3,666,334,399 2.50 603,838,640 76,339,661 680,178,301 2,986,156,098
Furniture & Fixture 486,453,839 101,800,788 3,015,008 585,239,619 10.00 215,030,741 41,551,916 256,582,657 328,656,962
Mechanical Appliance(including computer etc.) 1,308,936,320 304,978,171 3,267,999 1,610,646,492 20.00 738,155,254 183,426,122 921,581,376 689,065,116
Motor Vehicle 478,268,799 1,439,914 200,008 479,508,705 20.00 315,617,937 57,413,229 373,031,166 106,477,539
268
Rupali Bank Limited Schedule - "E"
Statement of inter branch adjustment of unreconciled entries
As on December 31 2016
2015 93 133 226 53 52 105 146 185 331 27,648,714 30,742,322 (3,093,609)
Total 108 133 241 53 52 105 161 185 346 30,890,933 30,742,322 148,611
2016 4,573 9,936 14,509 2,633 1,362 3,995 7,206 11,298 18,504 15,336,300,038 14,214,763,002 1,121,537,036
Total 4,681 10,069 14,750 2,686 1,414 4,100 7,367 11,483 18,850 15,367,190,971 14,245,505,324 1,121,685,647
269
Un-reconciled (Dr.) amount (24) 148,611
Annual Report
2016
Independent Auditors' Report
To
The Shareholders of Rupali Investment Limited
We have audited the accompanying financial statements of Rupali Investment Limited, which
comprises the Statement of Financial Position as at 31 December 2016, the Statement of
Profit or Loss and other Comprehensive Income, Statement of Changes in Equity and State-
ment of Cash Flows for the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management’s responsibility for the financial statement
Management is responsible for the preparation and fair presentation of these financial state-
ments in accordance with Bangladesh Accounting Standards (BASs) and Bangladesh Finan-
cial Reporting Standards (BFRSs), The Companies Act 1994 ,the Bangladesh Securities and
Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996 and other
applicable laws and regulations and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material mis-
statement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Bangladesh Standards on Auditing (BSAs). Those
standards require that we comply with relevant ethical requirement and plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement. An audit involves performing procedures to obtain audit evidence
about the amount and disclosures in the financial statements. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material misstate-
ment of the financial statements, whether due to fraud or error. In making those risk assess-
ments, the auditors consider internal control relevant to the entity’s preparation and fair pres-
entation 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 effectiveness of the
company’s internal control. An audit also includes evaluating the appropriateness of account-
ing policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the presentation 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.
Opinion
In our opinion, the financial statements present fairly, in all material respect, the financial posi-
tion of Rupali Investment Limited as at 31 December 2016 and its financial performance and
its cash flows for the year then ended in accordance with Bangladesh Financial Reporting
Standards (BFRSs) and other applicable laws.
We draw attention to the following matters, though our opinion is not qualified in respect of the
same:
As disclosed in note # 18 to the financial statements, the subscription clause of the Memoran-
dum of Association of the Company states that the paid up share capital is Tk. 1,000,000,000
only an amount of Tk. 800,000,000 has been received till 31 December 2016 against the paid
up capital. In this connection, during the subsequent period dated 15th January 2017 the
Company has received residual amount of Tk. 200, 000,000 against paid up share capital.
We also report that
a) we have obtained all the information and explanations which to the best of our knowl-
edge and belief were necessary for the purpose of our audit and made due verification
thereof;
b) in our opinion, proper books of account as required by law have been kept by the Com-
pany so far as it appeared from our examination of those books; and
c) the Company's statement of financial position, statement of profit or loss and other
comprehensive income dealt with by the report are in agreement with the books of
accounts and returns.
Non-Current Assets
Property, plant and equipment 6,116,166 7,496,678
Intangible assets 745,475 940,866
Other Assets 255,000 428,952
Total non-current assets (B) 7,116,641 8,866,496
Total Assets (A+B) 1,180,127,188 1,422,993,721
LIABILITIES AND CAPITAL
Current Liabilities
Accounts payable 75,869,504 450,377,950
Provision for expenses 5,674,972 4,344,039
Provision for diminution in value of investment 70,833,756 52,426,342
Provision for negative equity 7,000,000 5,000,000
Current tax liabilities 45,063,656 45,969,077
Deferred tax 342,304 760,759
Other liabilities 16,862,777 22,078,776
Total current liabilities .(C) 221,646,968 580,956,943
Non Current Liabilities - -
Total non-current liabilities (D) - -
Total Liabilities (E=C+D) 221,646,968 580,956,943
Capital/Shareholders' Equity
Share capital 800,000,000 700,000,000
Retained earnings 158,480,219 142,036,778
Total shareholders' equity (F) 958,480,219 842,036,778
Dated: Dhaka
G. KIBRIA & CO.
06 March, 2017 Chartered Accountants
Income
Interest on margin loan /Interest income 16,354,849 18,084,172
Realized Gain 14,480,870 3,806,996
Dividend Income 16,365,366 10,585,685
Interest from investment in FDR 6,646,813 8,384,507
Fees and commission income 7,149,492 6,216,332
Other operating income 5,011,449 5,306,000
Total operating income (A) 66,008,839 52,383,692
Expenditure
Salary and allowances 7,459,759 7,625,864
Rent, taxes, Insurance, electricity etc. 5,407,457 5,713,648
Postage, stamp, telegram and telephone 140,594 148,475
Printing and stationery 73,226 70,788
CDBL & other expenses 868,624 729,940
Director remuneration 832,350 161,000
Depreciation and Amortization 1,586,979 1,976,665
Others expenses 2,179,626 2,806,872
Total operating expenditure (B) 18,548,615 19,233,252
06 March, 2017
276
Net profit during the period 11,299,352 11,299,352
Balance as at 31 December 2015 700,000,000 142,036,778 842,036,778
Auditor’s Report
&
Financial Statements
We have audited the accompanying financial statements of Rupali Bank Securities Limited
which comprises the statement of financial position as at 31 December 2016 and statement
of Profit or Loss and Other comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended and a summary of significant accounting
policies and explanatory notes thereto.
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Bangladesh Financial Reporting Standards (BFRSs), the
Companies Act 1994 and other applicable laws and regulations and for such internal
control as management determines is necessary to enable the preparation of these
financial statements that are free from material misstatement, whether due to fraud and
error.
Auditors’ responsibility
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial 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
considers internal control relevant to the entity’s 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 effectiveness of the
appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation 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.
Other Matter
The financial statements of the company for the year ended 31 December 2015 were
audited ACNABIN Chartered Accountants, who through their report dated 19 April 2016
expressed an unqualified opinion on those statement.
In our opinion, the financial statements present fairly, in all material respects, the financial
position of Rupali Bank Securities Limited as at 31 December 2016, and its financial
performance and its Cash Flows for the year then ended in accordance with Bangladesh
Financial Reporting Standards (BFRS).
Amount in Taka
Particulars Notes
31 December 2016 31 December 2015
ASSETS
Non-Current Assets
Property, plant and equipment 10,646,209 12,872,655
Intangible assets 125,000 263,630
Investment in DSE Shares 320,200,000 320,200,000
Other assets - 1,500,000
Total non-current assets (A) 330,971,209 334,836,285
Current Assets
Cash and bank balance 239,702,092 12,577,648
Investment in shares (own portfolio) 395,724,379 127,951,997
Advances, deposits and prepayments 10,840,176 6,534,952
Receivables 97,828,496 35,450,756
Total current assets (B) 744,095,145 182,515,353
Total Assets (A+B) 1,075,066,354 517,351,638
Current Liabilities
Accounts payable 18,403,601 11,465,535
Provision for diminution in value of investment 27,599,026 15,000,000
Other provisions 4,380,541 1,272,849
Provision for Tax 7,055,371 2,396,286
Total current liabilities (E) 57,438,538 30,134,669
Total liabilities (F=D+E) 57,438,538 30,134,669
Amount in Taka
Particulars Notes
Jan to 31 Dec 2016 Jan to Dec 2015
Income
Fees & commission income 15,973,746 5,233,807
Interest & financial income 22,835,866 2,667,675
Cash dividend income 10,082,055 2,385,359
Capital Gain 26,290,459 5,261,589
Total Operating Income (A) 75,182,126 15,548,430
Expenditure
Salary and allowances 11,817,221 8,286,528
Printing, stationery & advertisement 93,551 341,587
Directors remuneration 569,550 391,000
Depreciation and amortization 2,430,154 3,072,828
DSE expenses 3,233,885 447,602
CDBL & other expenses 1,069,256 578,763
Rent, Taxes, Insurance, Electricity etc 5,715,690 5,309,444
Others expenses 2,583,863 3,101,963
Total Expenditure (B) 27,513,170 21,529,715
Profit/(loss) before provision and Tax(C=A-B) 47,668,957 (5,981,285)
Provision for diminution in value of investment(D) 12,599,026 3,355,058
Profit/(loss) before tax (E=C-D) 35,069,931 (9,336,343)
Provision for Taxation 4,659,084 519,815
Current Tax 4,645,457 526,159
Deferred Tax Expense/(Income) 13,627 (6,344)
Net profit after tax and provision 30,410,847 (9,856,158)
Other comprehensive income - -
Total comprehensive income 30,410,847 (9,856,158)
Retained earnings brought forward from previous year (12,783,031) (2,926,423)
Adjustment during the year - (450)
Retained earnings surplus 17,627,816 (12,783,031)
Earnings per share (EPS) 0.30 (0.20)
Amount in Tk.
Particulars Notes 01 January 2016 to 01 January 2015 to
31 December 2016 31 December 2015
Cash flows from operating activities
Received from customer 133,967,894 122,879,118
Customer Dividend Received 1,525,810 -
Paid to customer (59,731,011) (20,316,450)
Received from DSE 463,603,616 173,259,362
Paid to DSE (713,903,409) (295,309,931)
Received from Merchant Bank 171,849,112 16,595,750
Interest Received on FDR & STD 11,004,244 1,548,085
Paid to Merchant Bank (35,037,502) (14,609,373)
Paid for IPO (602,700) (263,400)
General & administrative expenses paid (15,770,556) (14,284,486)
Advance Income Tax (291,924) (1,647,323)
Payment of Accounts & VAT Payable (1,012,378) (554,345)
Received from CDBL & suspense account - 15,350
Net cash used in operating activities (A) (44,398,804) (32,687,643)
Retained earnings
Particulars Paid up Capital Taka Balance
Taka
Balance as at 01 January 2015 500,000,000 (2,926,423) 497,073,577
Adjustment during the year - (450) (450)
Received arrear paid up capital - - -
Net profit during the Period - (9,856,158) (9,856,158)
Balance as at 31st December 2015 500,000,000 (12,783,031) 487,216,969
283
Chief Executive Officer Director Director
556th Branch
Barrister Zakir Ahamad College Branch, B. Baria Nazir Hat Branch, Chittagonj
Jute Product of Cresent Jute Mills Glory Spinning Mills Limited 100% export oriented Textile
Bengal Leather Complex Glory Spinning Mills Limited 100% export oriented Textile
North
Sylhet
Mymensingh
Rajshahi 51
47
72
Dhaka North
67
Dhaka South
Comilla
48
Khulna 70
59
Barisal
Chittagong
49
57
Name & Address of Branches Cable Address Name & Address of Branches Cable Address
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Notes
Notes