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2016 2015
PROPERTY AND ASSETS
Cash 03 2,361,501,661 537,300,701
Cash in hand (Including foreign currency) 30,902,087 33,878,228
Balance with Bangladesh Bank and its agent bank(s) (Including foreign currency) 2,330,599,574 503,422,473
Balance with other banks and financial institutions 04 873,482,178 365,256,177
Inside Bangladesh 11,811,434 28,755,594
Outside Bangladesh 861,670,744 336,500,583
Money at call and short notice 05 1,380,000,000 1,810,000,000
Investments 06 7,949,618,992 8,295,526,431
Government 7,946,480,102 8,292,387,541
Others 3,138,890 3,138,890
Loans and advances 07 12,536,423,732 10,202,895,793
Loans, cash credit, overdrafts etc. 4,357,559,530 4,766,420,918
Bills purchased & discounted 8,178,864,202 5,436,474,875
Fixed assets including premises, furniture and fixtures 08 86,087,904 84,231,987
Other assets 09 575,411,895 956,223,934
Non-banking assets 10 - -
Total property and assets 25,762,526,362 22,251,435,023
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents 11 9,017,051,882 5,728,327,960
Deposit and other accounts 12 7,956,061,008 7,040,175,836
Current & other accounts 3,129,877,776 2,107,961,121
Saving deposits 495,485,884 464,115,751
Fixed deposits 3,372,359,542 3,815,822,651
Other deposits 958,337,806 652,276,313
Other liabilities 13 1,278,317,130 1,382,602,232
Total liabilities 18,251,430,020 14,151,106,028
Capital and shareholders' equity
Fund deposited with Bangladesh Bank 14 6,915,097,378 7,213,626,369
Surplus in profit and loss account/ Retained earnings 15 555,987,013 808,672,795
Other reserve 16 40,011,951 78,029,831
Total shareholders' equity 7,511,096,342 8,100,328,995
Total liabilities and shareholders' equity 25,762,526,362 22,251,435,023
(0) (0)
Country Head
State Bank of India Bangladesh Operations
Balance Sheet
As at December 31, 2016
Domestic and Off-shore Banking Unit
NotesAmount in Taka
Head of Risk Management Department
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
The accompanying notes form an integral part of these financial statements
Signed as per our report of even date
3
2016 2015
Off-Balance Sheet Items
Contingent Liabilities
Acceptances and endorsements - -
Letter of guarantees 19,190,088,926 19,595,943,443
Irrevocable letter of credits 1,735,179,160 1,076,586,029
Bills for collection - -
Other contingent liabilities - -
Total contingent liabilities 17 20,925,268,087 20,672,529,472
Other commitments
Documentary credits and short term trade related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other - -
Commitments- lease hold assets - -
Total other commitments - -
Total Off-Balance Sheet items including contingent liabilities 20,925,268,087 20,672,529,472
Country Head
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
Signed as per our report of even date
NotesAmount in Taka
Head of Risk Management Department
The accompanying notes form an integral part of this balance sheet.
4
2016 2015
Operating Income
Interest income 18.1 869,762,833 912,647,679
Interest paid on deposits and borrowing etc. 19 384,499,298 443,728,722
Net interest income 485,263,535 468,918,958
Investment income 20 477,860,493 538,532,052
Commission, exchange and brokerage 21 797,253,952 702,763,652
Other operating income 22 1,894,624 2,781,433
1,277,009,069 1,244,077,137
Total operating income 1,762,272,605 1,712,996,095
Salaries and allowances 23 107,697,679 107,747,840
Rent, taxes, insurance, electricity etc. 24 73,486,090 72,071,327
Legal expenses 1,461,468 2,835,445
Postage, stamps, telecommunication etc. 25 7,805,467 4,233,627
Stationery, printing, advertisement etc. 26 8,899,903 8,719,552
Chief Executive's salary & fees - -
Directors' fees & expenses - -
Auditors' fee 27 300,000 345,000
Charges on loan losses - -
Depreciation and repairs to bank's assets 28 22,256,125 22,900,391
Other expenses 29 162,466,684 124,272,222
Total operating expenses 384,373,416 343,125,404
Profit/(loss) before provisions 1,377,899,189 1,369,870,691
Provision for 30
Loans and advances 287,164,671 25,425,343
Provision for diminution in value of investments - -
Off-balance sheet items 2,527,386 32,394,721
Off-shore Banking Unit 35,431,743 8,926,545
Total provision 325,123,800 66,746,609
Profit/(loss) before taxes 1,052,775,389 1,303,124,081
Provision for Tax
Current tax expense 13.5 440,000,000 385,000,000
Deferred tax expense/ (income) 13.6 2,468,142 1,183,981
442,468,142 386,183,981
Total profit/(loss) after taxes 610,307,247 916,940,101
Appropriations
Statutory reserve - -
General reserve - -
Dividend - -
Retained earnings 610,307,247 916,940,101
836,522,444.00
226,215,197.04
Country Head
Dated: Dhaka-February 27, 2017
Signed as per our report of even date
Domestic and Off-shore Banking Unit
Notes
The accompanying notes form an integral part of this profit and loss account.
Head of Risk Management Department
Amount in Taka
Chartered Accountants
Bangladesh Operation
State Bank of India
Profit and Loss Account
For the year ended December 31, 2016
HOWLADAR YUNUS & CO.
5
Note
2016 2015
A. Cash flows from operating activities
Interest receipts 1,335,681,195 1,732,532,109
Interest payment (415,387,350) (524,678,281)
Dividend received 2,855,903 2,855,903
Fees & commissions receipts 735,970,232 651,416,742
Received from loan write off recovery - -
Cash payments to employees (99,565,717) (101,669,841)
Cash payments to suppliers - -
Income tax paid (256,440,866) (432,101,311)
Receipts from other operating activities 32 1,894,624 1,117,676
Payment for other operating activities 33 (276,199,065) (211,293,191)
Operating profit/(loss) before changes in operating assets & liabilities 1,028,808,956 1,118,179,806
Increase/decrease in operating assets & liabilities
Loans & advances to customers (2,311,380,337) (1,012,529,199)
Other assets (261,322,164) (295,734,887)
Deposits from other Banks 3,897,025,248 1,005,951,322
Deposits from customers 915,724,724 594,406,037
Other liabilities (398,314,683) (546,080,459)
Cash utilised in operating assets & liabilities 1,841,732,789 (253,987,185)
Net cash from operating activities 2,870,541,745 864,192,620
B. Cash flows from investing activities
Payments for purchase of securities 143,222,656 (512,304,178)
Investment in prize bond 856,500 77,300
Purchase/sale of property, plant & equipment 1,102,984 (12,305,247)
Net cash used in investing activities 145,182,140 (524,532,125)
C. Cash flows from financing activities
Receipts from the capitalization (1,176,000,000) -
Net cash flows from financing activities (1,176,000,000) -
Net increase/decrease in cash 1,839,723,884 339,660,495
Effects of exchange rate changes on cash & cash equivalent 61,846,577 51,346,910
Cash and cash equivalents at the beginning of year 2,713,471,178 2,322,463,773
Cash and cash equivalents at the end of year (Note-17.4) 34 4,615,041,639 2,713,471,178
Country Head Head of Risk Management Department
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
The accompanying notes form an integral part of this profit and loss account.
Signed as per our report of even date
Amount in Taka
State Bank of India Bangladesh Operations
Domestic and Off-shore Banking Unit
Cash Flow Statement
For the year ended December 31, 2016
6
7,213,626,369 78,029,831 808,672,796 8,100,328,996
- - 282,987,563 282,987,563
Net profit for the year (DBU) - - 327,319,684 327,319,684
Amortisation gain on HTM Securities transferred to P&L - (78,029,831) - (78,029,831)
Amortization gain on HTM Securities - 40,011,951 - 40,011,951
Fund untilised which were kept as Capital 877,471,009 - (877,471,010) (0)
(1,176,000,000) - - (1,176,000,000)
Excess Provision for Income Tax written back - 14,477,979 14,477,979
- -
6,915,097,378 40,011,951 555,987,012 7,511,096,341
6,462,789,045 42,223,747 773,449,677 7,278,462,469
- - 268,129,819 268,129,819
Net profit for the year (DBU) 648,810,282 648,810,282
Fund unutilized which were kept as Capital 1,067,215,719 - (1,067,215,719) -
Fund released as Capital (316,378,395) - - (316,378,395)
Amortisation gain on HTM Securities transferred to P&L - (42,223,747) - (42,223,747)
Amortization gain on HTM Securities - 78,029,831 - 78,029,831
Excess Provision for Income Tax written back - 62,424,557 62,424,557
- - 123,074,180 123,074,180
7,213,626,369 78,029,831 808,672,796 8,100,328,995
Country Head
State Bank of India
Bangladesh Operations
Domestic and Off-shore Banking Unit
For the year ended 31 December 2016
Total
Statement of Changes in Equity
(Figures in Taka)
ParticularsFund deposited with
Bangladesh BankOther Reserve
Surplus in Profit &
Loss Account
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
Signed as per our report of even date
Balance as of 31 December 2015
Balance as of 01 January 2016
Net profit for the year (OBU)
Fund released as Capital
Head of Risk Management Department
Balance as of 01 January 2015
Net profit for the year (OBU)
Balance as of 31 December 2016
OBU profit for the year 2013 has since been taken as capital as per
Group instruction
OBU profit for the year 2013 has since been taken as capital as per
Group instruction
7
(Figures in Taka)
0 - 1 1 - 3 3 - 12 1 - 5 Above 5
Month Months Months Years Years
Assets
Cash in hand 30,902,087 - - - - 30,902,087
Balance with Bangladesh Bank 2,330,599,574 - - - - 2,330,599,574
Balance with other bank, Other Banks and financial Institutions
(Including foreign currencies)873,482,178 - - - - 873,482,178
Money at call and on short notice 1,380,000,000 - - - - 1,380,000,000
Investments 57,800 1,656,749,052 2,832,205,953 979,671,970 2,480,934,216 7,949,618,992
Loans and advances 239,773,281 1,897,030,782 8,770,811,235 728,847,578 899,960,856 12,536,423,732
Fixed assets including premises, furniture & fixtures - - - - 86,087,904 86,087,904
Other assets - - - - 575,411,895 575,411,895
Non-banking assets - - - - - -
Total Assets 4,854,814,920 3,553,779,834 11,603,017,188 1,708,519,548 4,042,394,871 25,762,526,361
LIABILITIES
Borrowings from Bangladesh bank, other Banks,financial institutions
and agents - 9,017,051,882 - - - 9,017,051,882
Deposits & other accounts 2,368,653,920 1,448,410,753 776,478,251 1,077,979,306 2,284,538,778 7,956,061,007
Provision & Other Liabilities - 178,416,912 333,993,866 501,396,271 7,775,606,423 8,789,413,472
Total liabilities 2,368,653,920 10,643,879,546 1,110,472,117 1,579,375,577 10,060,145,201 25,762,526,361
Amount of net liquidity difference 2,486,161,000 (7,090,099,712) 10,492,545,071 129,143,971 (6,017,750,330) 0
Net result of the Liquidity Statement represents the 'Shareholders Equity' of the Bank.
Country Head
Total
As at December 31, 2016
State Bank of India
Bangladesh Operations
Domestic and Off-shore Banking Unit
Liquidity Statement
(Assets & Liabilities Maturity Analysis)
Particulars
Signed as per our report of even date
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
Head of Risk Management Department
8
1. Corporate information
1.2 Principal activities
1.3 Capital structure of the Bank
2. Significant accounting policies and basis of preparation of financial statements
2.1 Basis of accounting
2.2 Basis of consolidation
2.3 Use of estimates and judgments
2.4 Foreign currency transactions
i. Functional and presentational currency
ii. Foreign currency transaction
2.5 Taxation
State Bank of India
Domestic and Off-shore Banking Unit
For the year ended December 31, 2016
The financial statements, namely, Balance Sheet, Profit & Loss Accounts, Cash Flow Statement, Statement of Changes in Equity, Liquidity
Statement and relevant notes and disclosure thereto, are prepared on a going concern basis under historical cost conversion, and in
accordance with First Schedule of the Bank Company Act 1991, as amended BRPD circular no. 14 of 25 June 2003.
The principal activities carried out a comprehensive range of financial services in Bangladesh including retail banking, commercial banking,
corporateand institutional banking, global markets, global trade and receivable finance, payents and cash management and custody and
clearing.
Bangladesh Operations
Notes to Financial Statements
The State Bank of India incorporated in India under the State Bank of India Act 1955. State Bank of India has been operating in
Bangladesh since 05 May 1975. It operates its activities through six branches – Two in Dhaka, one in Chittagong, one in Sylhet, one in
Rajshahi and in Khulna. Apart from these branches, the bank has two OBU units; one in Dhaka and another in Chittagong.
A separate set of records for consolidating the Balance Sheet and Profit and Loss Accounts of the branches are maintained at the Country
Office of the Bank based on which these financial statements have been prepared.
Income tax expense represents the sum of the current tax and deferred tax.
The preparation of the financial statements in conformity with BFRS requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgments about carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the
revision or future periods, if the revision affects both current and future periods.
Financial statements of the Bank are presented in Taka, which is the Bank's functional and presentation currency.
Foreign currency transactions are converted into equivalent Taka currency at the ruling exchange rates on the respective dates of
such transactions as per BAS-21 "The effects of Changes in Foreign Exchange Rates".
SBI maintained capital in the form of deposit and lien of securities with Bangladesh Bank under section 13(3) of the Bank Company Act,
1991 and presented under the guidelines of BRPD circular No. 14 dated 25 June 2003.
Assets and liabilities in foreign currencies at 31 December 2016 have been converted into Taka currency at the average of the
prevailing buying and selling rates of the relevant foreign currencies at that date except "Balances with other Banks and Financial
Institutions" which have been converted as per directives of Bangladesh Bank vide its circular no. BRPD(R) 717/2004-959 dated 21
November 2004. Differences arising through buying and selling transactions of foreign currencies on different dates of the year have
been adjusted by debiting/ crediting exchange gain or loss account.
9
2.5.1 Current tax
2.5.2 Deferred tax
2.6 Assets and basis of their valuation
2.6.1 Cash and cash equivalents
2.6.2 Investments
2.6.2.1 Held to maturity (HTM)
2.6.2 Loans and advances
(a)
(b)
(c)
Interest on loans and advances is calculated on a daily product basis but charged and accounted for quarterly on accrual basis.
Interest on classified loans and advances is kept in interest suspense account as per directives of Bangladesh Bank and such interest
is not accounted for as income until realized from borrowers.
The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Profit and Loss
Statement because it excludes items of income or expense that are taxable or deductible. The Bank's liability for current tax is calculated
using tax rates that have been enacted or substantively enacted by the date of Balance Sheet.
Provision for current income tax has been made @ 42.5% on accounting profit made by the Bank after considering some of the add backs
of income and disallowances of expenditure as per Income Tax Ordinance 1984.
Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax
assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred tax assets and
liabilities are recognised for the future tax consequences of timing differences arising between the carrying values of assets, liabilities,
income and expenditure and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates and tax laws that have
been enacted or substantially enacted at the date of Balance Sheet. The impact on the account of changes in the deferred tax assets and
liabilities has also been recognised in the Profit and Loss Accounts as per BAS 12 “Income Taxes”.
Unquoted Shares (ordinary) Cost Cost
Interest is not charged on bad and doubtful loans and advances from the date of filing money suits against the borrowers.
Provision for loans and advances is made on the basis of periodical review by the management and of instructions contained in
Bangladesh Bank's BCD circular nos. 34 of 16 November 1989, 20 of 27 December 1994 and 12 of 04 September 1995 and BRPD
circular nos. 16 of 06 December 1998, 9 of 14 May 2001, 2 of 15 February 2005, 9 of 20 August 2005, 17 of 6 December 2005, 5 of
5 April 2008, 07 of 14 June 2012, 14 of 23 September 2012, 19 of 27 December 2012 and 5 of 29 May 2013 respectively at the
following rates:
Treasury Bonds (HTM) CostCost / Amortized
Cost
Prize Bond & Other Bond Cost None
Cash and cash equivalents include currency notes and coins on hand, balances held with Bangladesh Bank and most liquid financial assets
which are subject to insignificant risk of changes in their fair value, and are used by the Bank to meet its short term obligations.
All investments securities are initially recognized at cost, including acquisition charges associated with the investment. Premiums are
amortized and discount accredited, using the effective yield method and are taken to discount income. The valuation method of Marking to
Market for investments used are:
Amortized cost
Investments which have "fixed or determinable payments' and fixed maturity that the group has the positive intent and ability to held to
maturity, other than those that meet the definition of 'Held at amortized cost others' are classified as held to maturity. These investment are
subsequently measured at amortized cost, less any provision for impairment in value. Amortized cost is calculated by taking into account
any discount or premium in acquisition. Any gain or loss on such investments is recognized in the statement of income when the
investment is derecognized or impaired as per IAS -39 " Financial Instruments : Recognition and Measurement"
Value of Investments has been shown as under:
Investment ClassInitial
Recognition Recording of changes
Increased or decreased in value to equity.
No amortization for at per Investment / Amortized Gain
to Revaluation reserve/ Loss to P&L (in case of Discount
or Premium)
None
Subsequent
Measurement
Treasury Bills (HTM) Cost
None
10
(i) General provision on unclassified loans and advances Rate (%)
Standard general loans and advances 1%
Standard Small & Medium enterprise Financing 0.25%
Standard loans to Merchant Banking/BHs/SDs 2%
2%
Standard Consumers loan Scheme other than HF and LP 5%
Standard Short term Agri and Micro credit 2.5%
Special Mention Account general Loans and advances 1%
(ii) Specific provision on classified loans and advances
Substandard (Agri & Micro credit) 5%
Doubtful (Agri & Micro credit) 5%
Substandard 20%
Doubtful 50%
Bad or Loss 100%
(d)
2.6.3 Fixed assets and depreciation
a) Recognition
b) Depreciation
(i) Depreciable assets are stated at cost less accumulated depreciation.
(ii)
(iii)
c) Sale of fixed assets
d) Impairment
e) Others
10%
Standard Housing Finance and loans for professional to set up a
Loans and advances are written off to the extent that there is no realistic prospect of recovery, and against which legal cases are
pending for more than five years as per guidelines of Bangladesh Bank subject to getting approval from Corporate Centre Mumbhai.
These write offs, however, will not undermine/affect the claim amount against the borrowers. Detailed memorandum records for all
such written off accounts are meticulously maintained and followed up.
The cost of an item of furniture, fixture and equipments (Fixed assets) shall be recognized as an asset if, and only if it is probable
that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
25%
25%
If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset should be reduced to its
recoverable amount. That reduction is an impairment loss. An impairment loss is recognised as an expenses in the income statement.
Useful life and method of depreciation of property plant & equipment are reviewed periodically. As useful lives of assets do not
differ significantly from that previously estimated, Bank Management does not consider to revalue its assets by the meantime.
Furniture & fixture
Furniture, fixture and equipments have been accounted for at cost less accumulated depreciation. Cost includes expenditure that is
directly attributable to the acquisition of the items.
No depreciation has been charged during the year of disposal.
Depreciation has been charged on reducing balance method at the following rates. Depreciation is charged for full year while
assets are purchased within first six month of the year and 50% depreciation is charged in case assets. are purchased during the
next six months of the year.
Category of assets
Computer
Office equipment
Sale price of fixed assets are determined on the basis of fair value of the assets. Gain or loss on sale of assets are recognized in profit
& loss account as per provision of BAS 16 Property plant & equipments.
Depreciation Rate
11
2.6.4 Other Assets
2.7 Retirement benefits to the employees
a)
b)
2.8 Revenue recognition
(i)
(ii)
(iii)
(iv)
2.9 Cash flow statement
2.10 Statement of liquidity
2.11 Statement of changes in equity
2.12 Reconciliation of books of account
Statement of changes in equity is prepared in accordance with BAS-1" Presentation of Financial Statements" and under the guidelines of
BRPD circular no.14 dated 25 June 2003.
Books of account in regard to inter bank (inside Bangladesh and outside Bangladesh) and inter branch transactions are being regularly
reconciled. The Bank however, formed a task force to take positive steps to eliminate the long outstanding inter branch entries within the
shortest period of time.
The Bank operates a contributory provident fund for its eligible employees. The Commissioner of Income Taxes, Dhaka has
approved the provident fund as a recognized provident fund as per section 2(1) of Part B of the First Schedule of Income Tax
Ordinance 1984. The Fund is administered by a Board of Trustees consisting 3 (three) members and funded by contributions both
from employees and Bank @10% of basic salary. Interest earned from the investment is credited to the members‟ accounts annually.
Provident fund benefits are given to the employees of the Bank in accordance with provident fund rules of the Bank.
Provident fund
Commission and discount on bills purchased and discounted are recognized at the time of realization.
Cash Flow Statement is prepared principally in accordance with BAS-7 "Cash Flow Statement" under direct method as per guidelines of
BRPD circular no. 14 dated 25 June 2003. The Cash Flow Statement shows the structure of and changes in cash and cash equivalents
during the financial year. It reported cash flows during the period classified by operating activities, investing activities and financing
activities.
Other assets include all other financial assets and include interest, fees and other unrealised income receivable, Prepaid interest expenses on
fixed deposits, advance for operating and capital expenditure, security deposits and stocks of stationery & stamps etc. Provision for other
assets is made as per BRPD circular no. 14 of 25 June 2001.
The bank has a gratuity scheme, which covers all of its permanent employees. The gratuity would be payable equivalent to 02
month‟s last drawn basic salary for each completed year of service to the employees who have been in the service of the Bank for
minimum period of 12 years in the Bank (maximum ceiling Tk. 30.00 lac). The company made provision for gratuity during the year
as Bangladesh Accounting Standard.
The revenue during the year is recognized as follows which satisfy all conditions of revenue recognition as prescribed by BAS 18
"Revenue".
Interest is calculated on daily product basis on unclassified loan and advances but charged on a quarterly basis.
Interest is charged on classified loans and advances as per Bangladesh Bank's BRPD circular no. 16 of 06 December 1998 and
other related circulars and such interest is not taken into income.
The liquidity statement has been prepared in accordance with the remaining maturity period of the value of the assets and liabilities as on
the reporting date as per the guidelines provided by Bangladesh Bank in BRPD Circular No 14 of 25 June 2003, DOS Circular No 02 of 29
March 2011.
Gratuity
Dividend income is recognized at the time when right to receive is established.
12
2.13 Risk Management
a)
b) Foreign Exchange Risk Management
c) Asset Liability Management
d) Prevention of Money Laundering
As such, it is important that senior management must understand the existence of such risk on the balance sheet and they should
ensure that the structure of the banks business and the level of balance sheet risk it assumes are effectively managed and appropriate
policies and procedures are established to control and limit these risks, and that resources are available for evaluating and controlling
interest rate risk. To address all the risk elements of the balance sheet ALCO meeting was conducted every month in 2016, ATM
desk of the bank analyses the balance sheet risk and prepares the monthly ALCO papers as per the guidelines of Bangladesh Bank.
By strongly monitoring the maturity gap of assets and Liabilities and interest rate movement, bank is able to maintain optimum
liquidity with required regulatory compliances. A policy Guideline on Assets Liability Management has been formulated, approved
by appropriate authority of the bank and revised time to time.
Money laundering has been identified as a major threat to the financial services community, It is important that the management of
Banks and other Financial Institutions view prevention of money laundering as part of their risk management strategies and not
simply as a stand-alone requirement that is being imposed by the legislation. The management of SBI is fully aware that the financial
system shall not be and cannot be used as a channel for criminal activities. Therefore, co-ordination and co-operation between the
concerned parties are essential for its success. The band has designated Chief Anti Money Laundering Compliance Officer
(CAMLCO) at Country Office and compliance officers at branches to review the transactions of the accounts to identify suspicious
transaction Profile (TP) has been incorporated in the Account Opening Form (AOF) along with other KYC related issues.
Assets Liability Management is the most important aspect for the Financial Institution to mange Balance Sheet Risk, especially for
managing of liquidity risk and interest rate risk. Change in Market Liquidity and interest rate expose bank business to the risk of loss.
Failure to identify the risks associated with business and failure to take timely measures in giving a sense of direction may threaten
the survival of institution.
As per Bangladesh Bank‟s guidelines the bank has segregated the Front and Back office for Treasury Operations. Front Office
independently conducts the transactions and the Back Office is responsible for verification of the deals and passing of their entries
in books of accounts. All Nostro accounts are reconciled on monthly basis and all foreign exchange transactions are revalued at
Marked-to-Market rate as determined by Bangladesh Bank.
Foreign Exchange Risk is defined as the potential change in earnings arising from the change in market prices. The market directly
affects each country‟s bond, equities, private property, manufacturing and all assets that are available to foreign investors. Foreign
exchange rates also play a major role in determining whom finances government deficits, which buy equities in companies and
literally affects and influences the economic scenario. Due to high risk market the role of treasury operations is crucial.
Credit Risk Management
The credit risk management includes borrower risk analysis, financial statement analysis, industrial analysis, historical performance of
the customer, security of the proposed credit facility and market reputation of the borrower etc. SBI takes its lending decision based
on the credit risk assessment report by Appraisal Team. In determining Single Borrowing/Large Loan limit, the instructions of
Bangladesh Bank are strictly followed.
As per BRPD Circular no. 11 dated 27 October 2013, a Risk Management Committee of the Board has been formed and the Committee
has already started it's operation.
Credit risk is the possibility that a borrower or counter party will fail to meet its obligations in accordance with agreed terms. The
failure may result from unwillingness of the counter party or decline in his/her financial condition. Credit risk, therefore, arises from
the bank‟s dealing with or lending to corporate, individuals, other banks or financial institutions. A separate Credit Division has been
formed at Head Office since the inception of the bank, which is assigned with the duties of marketing and assessment of credit
products, maintaining effective relationship with the customer and exploring new business opportunities. In line with Bangladesh
Bank guidelines the bank has segregated marketing, approval and monitoring/recovery functions.
The risk of the Bank may be defined as the possibility of losses, financial or otherwise. The risk management of the Bank covers 06 core
risks i.e. Credit Risk, Internal Control & Compliance Risk, Money Laundering Risk, Asset Liability Management Risk (Balance Sheet Risk),
Foreign Exchange Risk and Information Technology Risk. Moreover, Operational Risk, Market Risk, Liquidity Risk, Residual Risk,
Reputation Risk, Strategic Risk, Settlement Risk and Environmental & Climate Change Risk are also brought into consideration. Success
or failure of the Bank depends to a great extent on proper identification and minimization of these risks. The prime objective of the risk
management is that Bank takes well calculative business risks while safeguarding the Bank's capital, its financial resources and profitability
from various risk areas. A separate Risk Management Unit (RMD) has been formed headed by one India Based Officer where all the Chief
Executive Officer & Division Heads of Country Office are the members and the Division Head(AVP- R&C), Internal Control &
Compliance Division is the member secretary. The Committee is responsible to our Honorable Country Head for compliance and
implementation of the decisions. Monthly meeting of Risk Management Department is arranged on regular basis where different risks are
discussed and decisions are gradually implemented. Minutes of Risk Management Department meeting along with risk management papers
are submitted to Bangladesh Bank on monthly/quarterly basis. Yearly Health Report is placed before the Management in which analytical
& exhaustive information are highlighted. Yearly summary report on the audit findings are also placed before the Audit committee of the
Local Management mentioning & highlighting different incidences and the decisions are implemented by the Bank. As a part of risk
management, adequate capital is maintained against Credit Risk, Market Risk and Operational Risk under Basel-III accord. Stress Testing is
done on quarterly basis to assess the impact of different risks associated with banking business on asset, liability & ultimately on capital and
the report is submitted before the Local Management and to Bangladesh Bank regularly.
13
e) Internal Control and Compliance
a)
b)
c)
f) Information technology
As approved by the appropriate authority, the establishment of our own ATM Network with 6 ATM Booths across the country. We
have already participated in the National Payment Switch as Pilot Bank under supervision of Bangladesh Bank and inaugurated our
ATM Debit Card. We have obtained Principal Membership Visa Card. Our ATM card is acceptable in all the VISA ATm Booth and
we have not charged any transaction cost if the card is use in other Bank's ATM Booth.
As per the guidelines; Account Opening Form of our Bank has been redesigned with provision for obtaining particulars of personal
identity of customer and transaction profile. The bank has also undertaken enhanced due diligence in case of opening of accounts of
Politically Exposed Persons(PEP) as per directive of Bangladesh Bank which is in line with recommendation of Financial Action
Task Force of U.N. Anti Money Laundering units have been set up in all the branches under a central unit at Head Office. Basic
training has been imparted to all the officers of the Bank on compliance with rules and regulations of Money Laundering Act so as
to prevent opening of suspicious accounts and identify suspicious transactions.
We have launched our Internet Banking System using our in-house developed software and we are extending this services to the
customers of our all Online Branches.
Audit & Inspection unit;
IT management deals with IT policy documentation, internal IT audit, training and insurance.
IT operation management covers the dynamics of technology operation management including change management, asset
In order to ensure that information assets are protected against risk, there are controls over:
The units have been functioning independently and separately with direct reporting lines to the Head of IC & CD.
Monitoring Unit and
Compliance Unit.
In addition, Departmental Control Function Checklist has been introduced in the branches and divisions at Head Office under
direct supervision of Monitoring Unit of IC&CD which ensures compliance with regulatory rules and regulations as well as general
banking norms and procedures.
It is a policy of the Bank to put all branches of the Bank under any form of audit four times in a year and IC & CD has been
working in that direction. All the activities of the Internal Control & Compliance Division are devoted to address and mitigate
operational risks of the Bank in more effective way to ensure efficiency and effectiveness of performance, ensure reliability and
completeness of financial and management information and to ensure compliance with legal and regularity requirements.
State Bank of India, Bangladesh Operation follows the guideline stated in BRPD Circular No. 14 dated 23 October 2005 regarding
"Guideline on Information and Communication Technology for Scheduled Banks" and BRPD Circular No. 21 dated 20 May 2010
"Guideline on ICT Security:
Policy guidelines on RISK BASED INTERNAL AUDIT (RBIA) system have been formulated and the branches have already been
brought under RBIA networks. As per RBIA, marks have been allocated for rating of the branches in terms of business risk and
control risk. The branches scoring higher are being subjected to more frequent audits.
Internal Control & Compliance Division of the Bank under direct supervision of Audit Committee of the Board has been
implementing detail guidelines on ICC risk management to assess and mitigate risks and as part of it the IC & CD has been divided
into three (3) independent units; namely:-
Internal Control and Compliance (ICC) is a critical component of Bank management and foundation for the safe and sound
operation of banking organization. A system of strong internal control and compliance can help to ensure that the goals and
objectives of a banking organization will be met, that the bank will achieve long-term profitability targets, and maintain reliable
financial and managerial reporting. Operational loss may arise from error and fraud due to lack of strong internal control and
compliance culture. Effective Internal Control & Compliance system can help to ensure that the bank will comply with laws and
regulations as well policies, plans, internal rules and procedures, and decrease the risk of unexpected losses or damage to the bank‟s
reputation.
14
2.14 Disclosure on fraud and forgeries committed by bank employees:
2.15 Off-balance sheet items
2.16 Offsetting
2.17 Interest paid and other expenses
2.18 Reporting period
2.19 Number of employees
2.20 Provision for liability
2.21 Events after reporting period
2.22 BASEL III implementation
We have successfully implemented Bangladesh Automated Clearing House (BACH) and Bangladesh Electronic Fund Transfer
System (BEFTN), Credit Information Bureau (CIB) Reporting as per guidelines of Bangladesh Bank.
We have established our website www.sbibd.com where form the visitors can get information about our products, charge schedule,
career opportunities, procurement notices and present status of our bank. The website is updated periodically and also as and when
required. Communication through email among our Branches, Country Office and different Divisions of Country Office under our
own Mail Server at IT Division, Country Office has become quick and easier.
To ensure proper training to our officials, Information Technology Division arranged need based hands on training program at our
Computer Lab daily in addition to training/workshop arranged at Country Office Conference Roam through Video Conference
throughout the year. During the year 2016, we conducted 09 training programs at our Computer Lab on 7 (seven) different
Topics/Modules covering 46 participants and 2 (two) Workshop on General Banking Practices and related IT Operations through
Video Conference covering 24 participants from Branches/Country Offices across the country.
Under general banking transactions, liabilities against acceptance, endorsement and other obligations and bills against which acceptances
have been given and claims exist there against, have been shown as off-balance sheet items.
No fraud occurred during the period
These financial statements cover one calendar year from 01 January 2016 to 31 December 2016.
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right
to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability substantially.
In terms of the provisions of BAS 1 “Presentation of Financial Statements” interest and other expenses are recognized on accrual basis.
The number of employees employed in the Bank as on 31 December 2016 was 111, of which 92 were male and 19 were female. The
number of employees per branch was 18.20 excluding 20 employees in the Country office of the Bank.
A provision is recognized in the balance sheet when the Bank has a legal or constructive obligation as a result of a past event and it is
probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the BAS 37 “Provisions,
Contingent Liabilities and Contingent Assets”.
In terms of provision of BAS 10 "Events after Reporting period "no material events have occurred after balance sheet date which could
affect the values reported in the financial statements, except declaration of dividend, if any.
The BASEL Committee on Banking Supervision has published a new framework for calculating minimum capital requirement, known as
„Basel III‟. The new guideline is structured around three pillars: (i) minimum capital requirement (on credit risk, market risk and operation
risk), (ii) supervisory review process and (iii) market discipline. Implementation of Basel III framework in Bangladesh will integrate the risk
management process of the Bank and its capital adequacy requirement. Bangladesh Bank has formed a Committee and Coordination
Committee for implementation of BASEL III in Bangladesh. As per the Committee decision BASEL III has been fully implemented in
Bangladesh. The Committee has indicated that following methodology of BASEL III would be followed in Bangladesh:
15
I.
II.
III.
2.23 Training
2.24 Audit committee
-
-
-
-
-
-
2.25
Sl.
No.
Long Term Short Term
1 AA AR-2
2 AA- AR-2
3 AA- ST-2
4 AA+ ST-2
5 AA ST-2
2.26
2.27
2.28
2.29 Statement of compliance
Member MBA (Finance), MBM, DAIBB
Protim Kumer Mallick FAVP(IT) Member CSE, MBA(MIS), LLB, JAIBB,LLM
An audit committee was constituted by the Senior Management of State Bank of India, Bangladesh Operation. Subsequently, one of the
member has retried from the bank on 31st December 2016 and reconstituted the Audit Committee is under process the earlier comittee is
as under:
Standardized method for credit and market risk.
Basic indicator approach for operational risk.
In implementation of the human resources development strategy, the Bank sent its employees to different training organizations to build
up professionals with technical, human and conceptual skills. This is focused to ensure a formal platform where employees can exchange
their ideas, update their knowledge base, open up their eyes to the complexities of banking world.
Year
Satwinder Singh HRMD Chairman M.A, CAIIB, Diploma in Business
D.P.Das VP Member B.Com
Name Status in
the Bank
Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.
Jan to Dec 2011
Facts
During the year, the Audit Committee of the Board conducted 4 (Four) meetings in which among others, the following issues were
discussed:
Discuss the Comprehensive Inspection report of Bangladesh Bank of Bangladesh Operations.
Discuss the audit report of different Country Office departments and Branches conducted by the Bank's internal audit team from
time to time.
Discuss the fraud/forgeries & operational loss report.
Reviewing the Anti money laundering policy of the Bank.
Credit Rating of the Bank
Jan to Dec 2013
These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith.
Jan to Dec 2014 ALPHA
ALPHA
Review the position of reconciliation with other bank and Nostro Account.
Review the status of the Special Mentioned Account (SMA) and Bad/Loss loan.
Jan to Dec 2015
Rating Agencies
Credit rating of the Bank of last four years are shown below-
Status in the
committee
Educational
Qualification
Md. Maksudur Rahman FAVP(A&T) Member M.COM, MBA (Finance), MBM
Milon Kumar Mitra AM (IA) Member
The Committee has suggested for continuous training of the officers and employees of the banks for capacity building and
formation of an implementation team. Implementation team would remain responsible for overall supervision of BASEL III
implementation in their banks. It has also suggested that the board of directors should also remain updated on the issue.
Accordingly, the Bank has formed BASEL III implementation team and is providing training to senior management, credit officers
and managers of the Bank. BASEL III implementation team has been regularly monitoring and to give various
suggestion/instruction regarding implementation of the above three pillars.
Mohammad Masudul Amin SAVP(R&C)
During the year 2016, the training institute of the Bank has arranged a total of 38 training courses, seminars and workshops mostly
conducted by the internal resource persons with 182 participants. The objectives of designing all training programmes are to bridge the gap
between present level of competence and the required level of competence.
Jan to Dec 2012
ALPHA
CRISL
CRISL
The financial statements of the Bank are prepared in accordance with Bangladesh Financial Reporting Standards (BFRS) and the
requirements of the Bank Companies Act 1991, the rules and regulations issued by Bangladesh Bank, the Companies Act 1994, [the
Securities and Exchange Rules 1987 ]. In case any requirement of the Bank Companies Act 1991, and provisions and circulars issued by
Bangladesh Bank differ with those of BFRS, the requirements of the Bank Companies Act 1991, and provisions and circulars issued by
Bangladesh Bank shall prevail. Material departures from the requirements of BFRS are as follows:
Figures relating to the previous year included in this report have been rearranged, wherever considered necessary, to make them
comparable with those of the current year for the purpose of comparison with current year's presentation, without any impact on.
16
i) Investment in shares and securities
ii) Revaluation gains/losses on Government securities
iii) Provision on loans and advances/investments
iv) Recognition of interest in suspense
v) Other comprehensive income
vi) Financial instruments – presentation and disclosure
BFRS: As per BAS 39 an entity should start the impairment assessment by considering whether objective evidence of impairment
exists for financial assets that are individually significant. For financial assets that are not individually significant, the assessment can
be performed on an individual or collective (portfolio) basis.
BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per BAS 39 and interest income is
recognised through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is recognised
in profit and loss account on the same basis based on revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans are not
allowed to be recognised as income, rather the corresponding amount needs to be credited to an interest in suspense account, which
is presented as liability in the balance sheet.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquoted shares are
revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should be made
for any loss arising from diminution in value of investment; otherwise investments are recognised at cost.
BFRS: As per requirement of BAS 39 where securities will fall under the category of Held for Trading (HFT), any change in the fair
value of held for trading assets is recognised through profit and loss account. Securities designated as Held to Maturity (HTM) are
measured at amortised cost method and interest income is recognised through the profit and loss account.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains on revaluation of securities
which have not matured as at the balance sheet date are recognised in other reserves as a part of equity and any losses on revaluation
of securities which have not matured as at the balance sheet date are charged in the profit and loss account. Interest on HFT
securities including amortisation of discount are recognised in the profit and loss account. HTM securities which have not matured
as at the balance sheet date are amortised at the year end and gains or losses on amortisation are recognised in other reserve as a part
of equity.
Bangladesh Bank: As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012) and BRPD
circular No. 05 (29 May 2013) a general provision at 0.25% to 5% under different categories of unclassified loans (good/standard
loans) has to be maintained regardless of objective evidence of impairment. Also provision for sub-standard loans, doubtful loans
and bad losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the duration of
overdue. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012, a
general provision at 1% is required to be provided for all off-balance sheet exposures. Such provision policies are not specifically in
line with those prescribed by BAS 39.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by all banks. The
templates of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income nor are the elements of
Other Comprehensive Income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank
does not prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in the statements of
changes in equity.
BFRS: As per requirements of BAS 39 investment in shares and securities generally falls either under “at fair value through profit
and loss account” or under “available for sale” where any change in the fair value (as measured in accordance with BFRS 13) at the
year-end is taken to profit and loss account or revaluation reserve respectively.
BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OCI are to
be included in a single Other Comprehensive Income statement.
In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently from those
prescribed in BAS 39. As such full disclosure and presentation requirements of BFRS 7 and BAS 32 cannot be made in the financial
statements.
17
vii) Cash and cash equivalent
viii) Non-banking asset
ix) Cash flow statement
x) Balance with Bangladesh Bank: (Cash Reserve Requirement)
xi) Presentation of intangible asset
xii) Off-balance sheet items
xiii) Loans and advances/Investments net of provision
2.30
Sl. Reference Status
1 BAS 1 Complied
2 BAS 2 Not Applicable
3 BAS 7 Complied
4 BAS 8 Complied
5 BAS 10 Complied
6 BAS 11 Not Applicable
7 BAS 12 Complied
8 BAS 16 Complied
9 BAS 17 Not Applicable
10 BAS 18 Complied
11 BAS 19 Complied
12 BAS 20 Not Applicable
13 BAS 21 Partially Complied
14 BAS 23 Complied
15 BAS 24 Complied
16 BAS 26 Applicable
17 BAS 27 Applicable
18 BAS 28 Not Applicable
19 BAS 29 Not Applicable
20 BAS 32 Complied
21 BAS 33 Not Applicable
Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must be disclosed
separately on the face of the balance sheet.
BFRS: Loans and advances/Investments should be presented net of provision.
BFRS: No indication of Non-banking asset is found in any BFRS.
Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.
BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 7.
Bangladesh Bank: There is no regulation for intangible assets in BRPD 14.
BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for disclosure of off-balance
sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD 14, provision on loans and advances/investments are presented separately as liability and can not
be netted off against loans and advances.
BFRS: The Cash flow statement can be prepared using either the direct method or the indirect method. The presentation is selected
to present these cash flows in a manner that is most appropriate for the business or industry. The method selected is applied
consistently.
Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect methods.
BFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per
BAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
BFRS: An intangible asset must be identified and recognised, and the disclosure must be given as per BAS 38.
Bangladesh Bank: Some cash and cash equivalent items such as „money at call and on short notice‟, treasury bills, Bangladesh Bank
bills and prize bond are not shown as cash and cash equivalents. Money at call and on short notice presented on the face of the
balance sheet, and treasury bills, prize bonds are shown in investments.
Inventories
Statement of Cash Flows
Accounting Policies, Changes in Accounting Estimates and Errors
Events after the Reporting Period
Construction Contracts
Income Taxes
Property, Plant and Equipment
Leases
Revenue
Employee Benefits
Financial Instruments: Presentation
Earnings per Share
Compliance Status with BFRS and BAS
The Effects of Changes in Foreign Exchange Rates
Borrowing Costs
Related Party Disclosures
Accounting and Reporting by Retirement Benefit Plans
Separate Financial Statements
Investments in Associates and Joint Ventures
Financial Reporting in Hyperinflationary Economies
Bangladesh Accounting Standards (BASs)
Accounting for Government Grants and Disclosure of Government
Assistance
Presentation of Financial Statements
18
22 BAS 34 Not Applicable
23 BAS 36 Complied
24 BAS 37 Complied
25 BAS 38 Not Applicable
26 BAS 39 Complied
27 BAS 40 Not Applicable
28 BAS 41 Not Applicable
Sl. Reference Status
1 BFRS 1 Not Applicable
2 BFRS 2 Not Applicable
3 BFRS 3 Not Applicable
4 BFRS 4 Not Applicable
5 BFRS 5 Not Applicable
6 BFRS 6 Not Applicable
7 BFRS 7 Partially Complied
8 BFRS 8 Not Applicable
9 BFRS 10 Partially Complied
10 BFRS 11 Not Applicable
11 BFRS 12 Not Applicable
12 BFRS 13 Partially Complied
2.31
2.31.1 Claim not acknowledged as debt
2.31.2 Number of employees
2.31.3 Post balance sheet events
There was no significant post balance sheet events occurred.
2.31.4 Coverage of external audit
General disclosure
There was no claim against the bank not acknowledged as debt as on 31 December 2016.
The number of Employees including contractual engaged for the whole year or part there of who received a total yearly remuneration of
Tk.36,000 or above were 111 ( 2015:112).
The external auditor of the Bank, M/s HOWLADAR YUNUS & CO. Chartered Accountants worked about in excess of 1,140 man hour
at Country Office, 5 Branches and 2 Off-shore Banking Units. During their audit, above 80% of the Bank's risk weighted assets were
reviewed as on the Balance Sheet date.
First-time Adoption of International Financial Reporting Standards
Bangladesh Financial Reporting Standard (BFRS)
Agriculture
Interim Financial Reporting
Impairment of Assets
Provisions, Contingent Liabilities and Contingent Assets
Intangible Assets
Financial Instruments: Recognition and Measurement
Investment Property
Joint Arrangements
Disclosure of Interests in Other Entities
Fair Value Measurement
Share-based Payment
Business Combinations
Insurance Contracts
Non-current Assets Held for Sale and Discontinued Operations
Exploration for and Evaluation of Mineral Resources
Financial Instruments: Disclosures
Operating Segments
Consolidated Financial Statements
19
2016 2015
3. Cash
A. Cash in hand
Local currency 26,068,567 27,881,741
Foreign currency (including OBU) 2,760,220 3,948,287
ATM cash balance 2,073,300 2,048,200
30,902,087 33,878,228
B. Balance with Bangladesh bank and its agent bank(s)
Local currency (Note: 3.1 ) 1,687,111,662 478,163,869
Foreign currency 643,487,912 25,258,604
2,330,599,574 503,422,473
Sonali bank as agent of Bangladesh bank (local currency) - -
2,330,599,574 503,422,473
2,361,501,660 537,300,701
3.1 Local currency
Lien with Bangladesh Bank - -
Free Balance with Bangladesh Bank 1,687,111,662 478,163,869
1,687,111,662 478,163,869
3.2 Statutory deposits
3.2.1 Cash Reserve Requirement (CRR)
i. Daily Bank's CRR maintenance
Required reserve (6% of total time & demand liabilities) 437,060,210 420,714,516
Actual reserve maintained 1,681,461,000 465,391,000
Surplus/ (deficit) 1,244,400,790 44,676,484
Maintained(%) 23.98% 6.64%
ii. Bi- Weekly bank's CRR maintenance
Required reserve (6.50% of total time & demand liabilities) 473,481,894 911,664,000
Actual reserve maintained 9,178,898,830 8,248,360,950
Surplus/ (deficit) 8,705,416,936 7,336,696,950
Maintained(%) 23.98% 6.64%
3.2.2 Statutory Liquidity Reserve (SLR)
Required reserve (13% of total time & demand liabilities) 946,963,788 911,664,000
Actual reserve maintained 9,178,898,830 8,248,360,950
Surplus/ (Deficit) 8,231,935,042 7,336,696,950
Maintained(%) 130.89% 117.62%
4
Inside Bangladesh (Note: 4.1 ) 11,811,434 28,755,594
Outside Bangladesh (Details are given in Annexure- A) (Note: 4.2 ) 337,920,697 190,533,458
349,732,131 219,289,052
Off-shore Banking Unit 523,750,047 145,967,125
873,482,178 365,256,177
4.1
On demand deposit accounts ( Current account )
Uttara Bank 2,100,651 7,843,058
Sonali Bank 69,972 69,972
Pubali Bank 1,278,359 11,207
3,448,982 7,924,237
On short term deposit (STD) accounts
Uttara Bank 6,049,000 9,559,303
Standard Chartered Bank-ATM settlement A/C 2,313,452 11,272,054
8,362,452 20,831,357
11,811,434 28,755,594
Amount in Taka
The Cash Reserve Requirement (CRR) and the Statutory Liquidity Requirement (SLR) are maintained as per BRPD Circular No. 11 & 12 dated 25
August 2005, MPD circular No. 01 dated 23 June 2014 & MPD circular no. 02 dated 10 December 2013. Cash Reserve Requirement (CRR) and the
Statutory Liquidity Requirement (SLR) and deposits there against with Bangladesh Bank at 31 December 2016 are as follows:
Balance with other banks and financial institutions
Balance with other banks and financial institutions ( Inside Bangladesh )
20
2016 2015
Amount in Taka
4.2
State Bank of India, West Germany(FF) 18,373,551 67,221,821
State Bank of India, London 1,055,926 733,534
State Bank of India, New York 136,367,986 24,860,865
State Bank of India, Japan 276,431 175,400
156,073,894 92,991,620
Standard Chartered Bank, Karachi Branch - -
Deutsche Bank, Mumbai - -
JP Morgan Chase Bank 139,488,934 67,701,901
ACU Dollar Nostro a/c 37,343,212 12,471,479
Wachovia Bank - -
Bank of America 2,608,551 8,542,418
Deutsche Bank Trust Company, New York 2,406,107 8,826,040
181,846,803 97,541,838
337,920,697 190,533,458
4.3 Foreign currency wise break-up
Amount in FC
US Dollar 4,039,540 78.7750 318,214,789 122,402,704
Great Britain Pound 10,941 96.5131 1,055,926 733,534
EURO 223,205 82.3170 18,373,551 67,221,821
Japanese Yen 407,835 0.6778 276,431 175,400
337,920,697 190,533,458
5
Banking company
Jamuna Bank Limited 150,000,000 -
Dhaka Bank Limited - 350,000,000
Commercial Bank of Ceylon 60,000,000 -
Bank Asia Limited - 150,000,000
One Bank Limited 140,000,000 -
Brac Bank Limited 280,000,000 370,000,000
NCC Bank Limited 380,000,000 370,000,000
The City Bank Limited 370,000,000 370,000,000
Trust Bank Limited - 200,000,000
1,380,000,000 1,810,000,000
Off-shore Banking Unit - -
1,380,000,000 1,810,000,000
5.1 Maturity grouping of money at call and short notice
Up to one month 1,380,000,000 1,810,000,000
Over one month but below three months - -
Over three months but below one year - -
Over one year but below five years - -
Over five years - -
1,380,000,000 1,810,000,000
6
(Note: 6.1) 7,946,480,102 8,292,387,541
(Note: 6.2) 3,138,890 3,138,890
7,949,618,992 8,295,526,431
Off-shore Banking Unit - -
7,949,618,992 8,295,526,431
Investment in securities are classified as follows:
Held for trading - -
Held to maturity 7,946,480,102 8,292,387,541
Other Investments 3,138,890 3,138,890
7,949,618,992 8,295,526,431
6.1
Treasury bill
30 day Treasury bills 1,306,810,150 2,024,452,570
91 day Treasury bills 349,938,902 1,376,871,362
182 day Treasury bills 737,309,920 199,866,747
364 day treasury bills 2,094,896,033 1,694,811,638
4,488,955,005 5,296,002,317
Government securities
On demand deposit accounts ( Interest bearing)
Conversion rate
Government Securities
Money at call and short notice
Treasury bills and treasury bonds amounting Tk. 691.50 crore has been pledged with Bangladesh Bank for Capital Purpose. Details of investments are
given in Annexure- F)
Currency name
Balance with other banks and financial institutions (Outside Bangladesh)
On demand deposit accounts (Non interest bearing)
Other Investments
Investments
21
2016 2015
Amount in Taka
Treasury bond
2 year Treasury Bonds 767,306,334 3,500,149
5 year Treasury Bonds 212,365,636 516,778,322
10 year Treasury Bonds 1,148,041,541 1,502,675,099
15 year Treasury Bonds 418,555,423 614,427,509
20 year Treasury Bonds 911,198,362 358,089,844
3,457,467,297 2,995,470,924
Prize bonds 57,800 914,300
7,946,480,102 8,292,387,541
6.2 Other investments: Shares of Central Depository Bangladesh Limited (CDBL)
Quoted - -
Unquoted 3,138,890 3,138,890
3,138,890 3,138,890
No of Shares
Initial investment @ Tk.10 200,000 2,000,000 2,000,000
Purchase of Right share @ Tk.10 113,889 1,138,890 1,138,890
Bonus share @ Tk.10 828,472 - -
1,142,361 3,138,890 3,138,890
6.3
Payable on demand 57,800 914,300
Below three months 1,656,749,052 3,401,323,932
2,832,205,953 1,894,678,385
Over one year but below five years 979,671,970 520,278,471
Over five years 2,477,795,326 2,475,192,453
7,946,480,102 8,292,387,541
7
a. Loans, Cash Credits, Overdrafts etc.:
Overdrafts 635,887,914 664,427,598
Demand loans 708,345 661,560
- 1,000,000,000
Cash credit 1,550,943,809 1,569,206,923
House building loan 77,644,360 107,840,199
Transport loan 124,004,746 856,524,409
Term loans 585,873,492 73,769,963
Loan against trust receipts 46,645,604 -
Agricultural loan 101,836,065 100,000,000
Staff loans (Note - 7.6) 52,390,195 31,648,000
3,175,934,530 4,404,078,651
Off-shore Banking Unit 1,181,625,000 362,342,267
4,357,559,530 4,766,420,918
b. Bills purchased & discounted:
Domestic Banking Unit (Note - 7.15) 1,723,815 5,373,762
Off-shore Banking Unit 8,177,140,387 5,431,101,113
8,178,864,202 5,436,474,875
Total : (a+b) 12,536,423,732 10,202,895,793
7.1 Net loans and advances
Gross loans and advances 12,536,423,732 10,202,895,793
Less:
Interest suspense 34,583,544 41,841,539
Provision for loans & advances 662,802,031 672,112,981
697,385,575 713,954,520
11,839,038,157 9,488,941,273
7.2
Repayable on demand 239,773,281 332,719,492
1,897,030,782 1,355,069,429
8,770,811,235 6,254,903,760
728,847,578 1,011,379,564
899,960,857 1,248,823,549
12,536,423,732 10,202,895,793
7.3
828,512,506 1,038,134,570
Cash Credits 1,653,488,218 2,701,516,483
Overdrafts 695,657,621 669,801,360
3,177,658,345 4,409,452,413
- -
Off-shore Banking Unit 9,358,765,387 5,793,443,380
12,536,423,732 10,202,895,793
Particulars
More than 1 year to 5 years
Telecommunication
Loans and advances under the following broad categories
Inside Bangladesh
Outside Bangladesh
More than 5 years
Maturity wise grouping of loans and advances
More than 1 months to 3 months
Over three months but below one year
Maturity wise grouping of investments (Other than CDBL Shares)
Loans and advances
More than 3 months to 1 Year
Term Loans
22
2016 2015
Amount in Taka
7.4
Dhaka Division 2,261,856,026 3,306,460,018
Chittagong Division 792,271,307 957,667,250
Sylhet Division 99,140,201 113,568,008
Khulna Division 24,390,812 24,290,659
Rajshahi Division - 7,466,478
3,177,658,346 4,409,452,413
Off-shore banking unit 9,358,765,387 5,793,443,380
12,536,423,732 10,202,895,793
7.5
Staff
Managing Director & CEO - -
Senior Executives 8,052,687 9,494,400
Others 44,337,508 22,153,600
52,390,195 31,648,000
i) Agricultural and Jute 101,836,065 127,268,584
ii) Readymade garments 116,112,346 160,909,489
iii) Textile 12,480,994 13,015,022
iv) Food & allied 80,122,689 -
v) Chemical - -
vi) Cement 50,633,612 82,337,049
vii) Printing Publishing & allied Industries - 16,128,781
viii) Metal Products & Steel - -
ix) Petroleum & Coal Products - -
x) Leather & Leather Products - 69,916,493
xi) Other 678,276,191 1,026,669,948
1,039,461,897 1,496,245,365
Infrastructural
i) Power 3,621,009 -
ii) Telecom - -
iii) Construction 223,802,231 120,870,813
iv) Transport 751,602,633 856,524,409
v) Feed - -
v) Others 272,019,154 580,752,668
1,251,045,027 1,558,147,889
Inside Bangladesh
* Our 5 (Five) branches are located in urban areas . However, as we have obtained approval to open new branches in Bangladesh, we shall increase our
loans and advances portfolio in rural areas of the country as well.
Significant concentration wise grouping
Geographical location wise portfolio grouping
Industries
23
2016 2015
Amount in Taka
i) Commercial lending 10,725,230 -
ii) Export financing - -
iii) House building loan 77,644,360 107,840,199
iv) Small and medium enterprise 622,833,899 745,089,136
vi) Non-banking financial institutions 77,314,536 -
vi) Others 46,243,202 470,481,823
834,761,227 1,323,411,158
Off-shore banking unit 9,358,765,387 5,793,443,380
12,536,423,732 10,202,895,793
7.6 Staff loan
Overdraft Loan (Interest Bearing) 11,707,413 12,235,318
Overdraft Loan (Interest Free) 708,345
Car and motorcycle Loan 61,948 1,858,500
House building Loan 39,912,489 17,554,182
52,390,195 31,648,000
7.7
7.8
Standard including staff loan 2,594,971,562 3,832,356,004
Special Mention Account (SMA) 13,803,410 5,630,000
2,608,774,972 3,837,986,004
Offshore Banking Unit 9,358,765,387 5,793,443,380
Classified
Sub standard 45,622,692 5,952,388
Doubtful 79,827,100 -
Bad / Loss 443,433,581 565,514,021
568,883,373 571,466,409
12,536,423,732 10,202,895,793
7.9
Overdraft 695,657,621 669,801,360
Demand Loan 708,345 661,560
Term Loan 828,512,506 1,038,134,570
Cash Credit 1,652,779,873 2,700,854,923
Off-shore banking unit 9,358,765,387 5,793,443,380
12,536,423,732 10,202,895,793
7.10 Sector-wise allocation of loans and advances
Private
Agriculture, fishing, forestry and dairy firm 101,836,065 127,268,584
Industry (jute, textile, garments, chemicals, cements etc.) 937,625,832 1,368,976,781
Working capital financing 1,020,632,084 1,416,272,021
Export credit - -
Commercial credit 10,725,229 -
Small and cottage industries 622,833,899 745,089,136
Miscellaneous 484,005,236 751,845,891
3,177,658,345 4,409,452,413
Off-shore banking unit 9,358,765,387 5,793,443,380
12,536,423,732 10,202,895,793
7.11 Securities against loans/advances including bills purchase and discount
Collateral of moveable/immoveable assets 1,972,989,000 2,737,802,547
Non-banking financial institutions guarantee 129,273,498 179,385,343
Local banks/foreign banks guarantee 9,621,239,966 6,157,664,149
Export documents 1,723,815 5,373,762
Cash and quisi cash 130,653,234 181,299,925
Personal guarantee 307,127,280 426,182,736
Other securities 373,416,939 515,187,332
12,536,423,732 10,202,895,793
Total capital of the Bank was Taka 7465.79 million including Offshore Banking Unit as at 31 December 2016 (Taka 8022.29 million at 31 December
2015 respectively ). Number of clients with amount outstanding and classification status to whom loans and advances sanctioned exceeds 10% of the
total capital of the Bank are shown in Annexure - B.
Consumers
Grouping as per classification rules
Detail of large loan
Unclassified
Loan type wise classified loan
24
2016 2015
Amount in Taka
7.12
Provision required for unclassified loans and advances
Outstanding Base for provision Required provision
December 2016
Required provision
December 2015
1,801,445,600 1,801,445,600 18,014,456 30,335,311
551,326,157 551,326,157 1,378,315 1,396,797
77,644,360 77,644,360 1,552,887 1,996,100
10,650,158 10,650,158 532,508 449,314
13,803,410 13,803,410 138,034 56,300
101,836,065 101,836,065 2,545,902 2,500,000
52,069,221 52,069,221 - -
9,358,765,387 9,358,765,387 93,587,654 57,934,434
11,967,540,359 11,967,540,358 117,749,756 94,668,256
Provision required for off-balance sheet items (General Provision)
Outstanding Required provision
December 2016
Required provision
December 2015
Acceptances and endorsements - - -
19,190,088,926 191,900,889 195,959,434
Irrevocable letter of credits 1,735,179,160 17,351,792 10,765,860
20,925,268,087 209,252,681 206,725,295
Total required provision for unclassified assets (including off-balance sheet items) 327,002,437 301,393,551
Provision maintained for unclassified assets (including off-balance sheet items) 333,993,866 301,530,941
Excess/(Short) provision at 31 December 2016 6,991,428 137,391
Provision required for classified loans & advances (Specific provision)
Outstanding Base for provision Required provision
December 2016
Required provision
December 2015
Sub-standard 45,622,692 21,238,045 4,247,609 178,572
Doubtful 79,827,100 43,245,357 21,622,678 -
Bad/Loss 443,433,581 283,148,800 283,148,800 379,830,875
568,883,373 347,632,201 309,019,087 380,009,446
Total provision maintained for classified assets:
Sub Standard 4,247,609 178,572
Doubtful 21,622,678 -
Bad/loss 302,937,878 428,337,901
328,808,165 428,516,473
Excess/(Short) of provision 19,789,078 48,507,027
7.13 Particulars of loans and advances
i) 11,742,009,146 9,100,532,690
ii)531,179,180 737,086,579
iii) 263,235,406 365,276,525
iv)
12,536,423,732 10,202,895,793
v) - -
vi)
- -
vii)
- -
Letter of guarantees
Debts adversely classified; for which no provision is created
1%
1%
1%
1%
Rate (%)
20%
50%
Debts considered good in respect of which Bank is fully secured
Debts due by companies or firms in which the directors or officers of the bank are interested
as directors, partners or managing agents or in case of private companies as members
Maximum total amount of advances, including temporary advances made at any time during
the year to directors or managers or officers of the banking companies or any of them either
separately or jointly with any other person
5%
Particulars of required provision for loans and advances
Housing & loan for
professional
Status
All unclassified loans
(Other than Small &
Medium enterprise
Financing, Consumer
Financing,BHs/MBs/SDs
, Housing & loans for
professional)
Small & Medium
enterprise financing
2%
Rate (%)
1%
0.25%
1%
0%
Consumer finance
Off Shore Banking Unit 1%
Special Mentioned
Account (SMA)
Shortterm Agriculture
Loan2.5%
N/A
N/A
Rate (%)
100%
Total
Status
Debts considered good secured by the personal undertakings of one or more parties in
addition to the personal guarantee of the debtors
Debts considered good for which Bank holds no other security than the debtor's personal
guarantee
Debts due by directors or officers of the banking company or any of these either separately
or jointly with any other persons;
Staff Loan
Name of Exposure
Total
Total
25
2016 2015
Amount in Taka
viii)
- -
ix) Due from banking companies - -
x) - -
a)- -
b)302,937,878 428,337,901
c) 34,583,544 41,841,539
xi)
- -
- Current year - -
- Cumulative to date - -
7.14
Dhaka Region 349,445,900 247,399,886
Chittagong Region 769,080,325 685,390,107
Sylhet Region 44,665,425 31,413,654
1,163,191,650 964,203,647
7.15 Bill purchase & discount under the following broad categories (DBU)
1,723,815 5,373,762
- -
1,723,815 5,373,762
Off-shore Banking Unit 8,177,140,387 5,431,101,113
8,178,864,201 5,436,474,875
7.16
Payable within 1 month - -
Over 1 month but less than 3 months - -
Over 3 months but less than 6 months 8,177,140,387 5,431,101,113
6 months and more 1,723,815 5,373,762
8,178,864,201 5,436,474,875
7.17
Balance at the beginning of the year 445,153,612 156,548,954
Add: Write off during the year 426,294,149 291,094,160
871,447,761 447,643,114
Less: Recovery of Write off loans - 2,489,502
871,447,761 445,153,612
7.18 Cash Incentive for Good Borrower
The amount of written off loans for which law suit filed.
Suit filled by the bank (branch wise)
Inside Bangladesh
Maximum total amount of advances, including temporary advances granted during the year
to the companies or firms in which the directors of the banking company have interest as
directors, partners or managing agents or in case of private companies, as members
Interest creditable to the Interest Suspense a/c.
Increase/decrease of provision (specific) amount of debts written off amount realized
against loan previously written off.
Amount of Classified loans on which interest has not been charged should be mentioned as
follows:
Write off of loans & advances
Cumulative amount of the written off loan and the amount written off during the current
year should be shown separately. The amount of written off loan for which lawsuit has been
field should also be mentioned.
Amount of provision kept against loan classified as "bad/loss" on the date of preparing the
balance sheet
As per Bangladesh bank circular the bank has completed the formalities. During the year December 2016 Bank has not found any borrower who has
comply the Bangladesh Bank circulars to get "Cash Incentive for good borrower" due to non-compliance the sanction terms and condition.
Outside Bangladesh
Maturity wise grouping of bill purchase & discount
26
2016 2015
Amount in Taka
8
A. Cost
Opening balance 201,291,720 174,558,316
Add: Addition during the year 20,127,679 32,415,431
221,419,399 206,973,747
Less: Disposal/adjustment during the year 1,102,984 5,682,027
220,316,415 201,291,720
B. Accumulated Depreciation
Opening balance 117,059,733 102,631,576
Add: Charged during the year 17,765,721 18,446,427
134,825,453 121,078,003
Less: Disposal/adjustment during the year 596,942 4,018,270
134,228,511 117,059,733
Written down value (A-B) 86,087,904 84,231,987
Off-shore Banking Unit - -
86,087,904 84,231,987
(Details are given in Annexure- C)
9
Domestic Banking Unit (Note - 9.1) 393,258,061 796,102,333
Off-shore Banking Unit 182,153,834 160,121,601
575,411,895 956,223,934
9.1 Domestic Banking Unit
Interest receivable on Treasury Bond 108,917,749 119,459,995
Dividend receivable From CDBL 2,855,903 2,855,903
Interest receivable on Inter Bank Call Money 1,502,398 1,235,995
Sub-total 113,276,051 123,551,892
Stationery, stamps, printing materials etc. 1,406,319 1,961,110
Advance rent and advertisement 21,304,105 39,579,286
Memento coin 52,500 154,000
Deferred expenses - -
Excise duty Recoverable 395,340 1,978,209
Inter Branch lending(FC) - 368,877,836
ISO reconciliation 382,881 -
Advance payment of Income Tax 256,440,866 260,000,000
Others - -
Sub-total 279,982,010 672,550,441
Total 393,258,061 796,102,333
10 Non banking assets
11 Borrowing from other banks, financial institutions and agents
Domestic banking unit - -
Off-shore banking unit 9,017,051,882 5,728,327,960
9,017,051,882 5,728,327,960
12
Local Currency
Current & other accounts 2,035,423,626 1,506,590,646
Bills payable 32,474,493 24,428,492
Saving deposits 495,485,884 464,115,751
Fixed deposits 3,372,359,542 3,815,822,651
Short term deposit 949,998,088 639,525,461
Other deposits 8,339,718 12,750,851
6,894,081,351 6,463,233,852
Non income generating other assets :
No-non-banking assets is under the possession of the bank which acquired as claims. State Bank of India, Bangladesh Operations was not acquired any
such assets as on 31 December 2016.
Deposit and other accounts
Domestic Banking Unit place surplus Dollar fund amounting to Tk. 630,200,000.00 in the year 2016 and 368,877,836.00 Tk. in the year 2015 without
borrowed the fund from abroad to fulfill the requirement of OBU and to reduce borrowing cost which may incurred if the would be borrowed from
abroad. DBU has not charged any interest as per the management deceision. Offshore Banking Unit(OBU) shows the figure as borrowing from Dhaka
Branch in note 9.1.
Bank's actual interest receivable in investments is Tk. 150,432,099 in 2016 and Tk. 198,725,821 in 2015 but as per practice of SBI revaluation amount is
included in interest receivable. At the end of year the bank passed reversal entry between interest income receivables and increase Investment value. As
such,we have netted off amounting taka 40,011,951.31 from interest receivables and increase the investment amount to comply B.Bank instruction.
Other assets
Income generating other assets :
Fixed assets including premises, furniture and fixtures
27
2016 2015
Amount in Taka
Foreign currency
Current account 389,949,036 172,036,523
Other deposits 648,120,503 362,934,831
1,038,069,540 534,971,353
7,932,150,891 6,998,205,206
Off-shore Banking Unit 23,910,116 41,970,630
7,956,061,008 7,040,175,836
12.1 Deposit details concentrating liquidity nature
i) Demand deposit
Current deposit 2,035,423,626 1,506,590,646
Saving deposit (9%) 44,593,730 46,411,575
Foreign currency deposit 389,949,036 172,036,523
Short term deposit 317,473,920 216,286,130
Other demand deposit-local currency 8,339,718 12,750,851
Other demand deposit-foreign currency 648,120,503 362,934,831
3,443,900,533 2,317,010,556
ii) Time deposit
Saving deposit (91%) 450,892,154 417,704,176
Fixed deposit 3,372,359,542 3,815,822,651
Foreign currency deposit - -
Short term deposit 664,998,662 447,667,823
4,488,250,357 4,681,194,650
Off-shore Banking Unit 23,910,116 41,970,630
7,956,061,008 7,040,175,836
12.2 Maturity wise grouping of deposits
Payable on demand - -
Payable within 1 month 2,344,743,803 2,068,669,459
Over 1 month but within 3 months 1,448,410,753 1,277,872,271
Over 3 month but within 1 year 776,478,251 685,054,308
Over 1 year but within 5 years 1,077,979,306 951,056,087
Over 5 years 2,284,538,778 2,015,553,081
Off-shore Banking Unit 23,910,116 41,970,630
7,956,061,008 7,040,175,836
13
Domestic Banking Unit
Fixed deposit interest account 49,347,323 66,057,758
Provision on loans and advances {Note-13.1-(a+b)} 569,214,378 672,112,981
Interest suspense's account (Note-13.3) 34,583,544 41,841,539
Withholding tax payable (Payable on interest) (Note-13.4) 15,393 -
Provision for current taxation (Note-13.5) 501,396,271 517,482,674
Provision for deferred tax (Note-13.6) (5,293,975) (7,762,116)
Inter branch adjustment account 44,163 1,204,151
Excise Duty Payable Account 821,950 -
Short Term Deposit Interest Account - 2,766,374
ACU EURO Account - -
Provision for gratuity - -
Provision for audit fees 345,000 388,125
Interest Payable on Call Money - -
Other Provision 17,323,376 27,407,049
1,167,797,423 1,321,498,535
Off-shore Banking Unit 110,519,707 61,103,697
Total 1,278,317,130 1,382,602,232
44,163
-
-
-
-
13.1
Total Domestic Banking Unit (DBU) deposit and other accounts
This represents outstanding inter-branch and head office transactions (net) which are originated but not responded by the counter transaction at the
balance sheet date. The unresponded entries of 31 December 2016 are given below:
Number of
unresponded
entries (Credit)
Amount of
unresponded
entries (Taka)
-
-
-
-
Other liabilities
Provision for loans and advances is created for covering the bank for possible loan losses in the future. General provision is made on outstanding loans
and advances without considering the quality of loans and advances according to the prescribed rate of Bangladesh Bank. Classified loans and advances
of the banks are categorized as sub-standard, doubtful and bad/loss as per guidelines of the Bangladesh Bank. Provisions are made for NPAs as per the
extant guidelines prescribed by Bangladesh Bank and RBI guideline which one is more stringent.
Number of
unresponded
entries (Debit)
Particulars
Amount of
unresponded
entries (Taka)
More than 3 months but within 6 months
More than 6 months but within 1 year
More than 1 year but within 5 years
Above 5 years
-
-
-
-
-
12
-
-
-
-
Up to 3 months
Provision for loans and advances
28
2016 2015
Amount in Taka
a. General
Balance at the beginning of the year 243,596,507 205,069,855
Add: Provision made during the year (3,190,295) 38,526,652
240,406,213 243,596,507
b. Specific
Balance at the beginning of the year 428,516,473 646,773,046
Add: Provision charged to Profit & Loss Account 292,882,351 22,048,839
Add: Provision transfer from Interest Income - -
Less: Recoveries and provision no longer required - -
Less: Interest waiver during the year - -
Less: Write off during the year 392,590,660 240,305,412
328,808,165 428,516,473
Sub-total (a+b) 569,214,378 672,112,981
c. Off-shore Banking Unit 93,587,653 57,934,434
Net actual provision at the end of year (a+b+c) 662,802,031 730,047,415
13.2 General Provisions for UC Loans, Advance and off balance sheet items
a.
Balance at the beginning of the year 36,871,212 30,739,281
Add: Provision made/ (adjusted) during the year (5,717,681) 6,131,931
Sub-total 31,153,532 36,871,212
b.
Balance at the beginning of the year 206,725,295 174,330,574
Add: Provision made/ (adjusted) during the year 2,527,386 32,394,721
Sub-total 209,252,681 206,725,295
Total General Provision (a+b) 240,406,212 243,596,507
13.3
Balance at the beginning of the year 41,841,539 98,673,668
Add: Provision made during the year 32,096,303 -
73,937,842 98,673,668
Less: Amount of interest suspense recovered 5,650,809 6,043,381
Less: Write off during the year 33,703,489 50,788,748
Less: Interest waiver during the year - -
34,583,544 41,841,539
13.4
Balance at the beginning of the year - 1,196,245
Add: Addition during the year 44,780,733 51,708,649
44,780,733 52,904,893
Less: paid during the year 44,765,341 52,904,893
15,393 -
13.5 Provision for current taxation
Balance at the beginning of the year 517,482,673 270,256,492
Add: Provision made during the year 440,000,000 385,000,000
957,482,673 655,256,492
Less: Adjustment of tax provision for previous years 456,086,402 270,256,492
Less: Excess Tax Provision Transferred to P&L - (62,424,557)
Less: Adjustment of tax provision for previous years - (70,058,117)
456,086,402 137,773,818
501,396,271 517,482,673
Bank has submitted Income Tax Return U/S 82 BB for the financial year 2014 to LTU on 14.07.2016. On 20.07.2016 tax authority asked for
explanation by claiming amounting to Tk. 5,92,66,885 within 27.07.2016. Bank has already given their explanation on 26.07.2016 vide letter no.
10/CO/IT/2138.
(Details are in Annexure-D)
Classified loans and advances of the banks are categorized as sub-standard, doubtful and bad/loss as per guidelines of the Bangladesh Bank. Interest
accrued on Sub-standard (SS), Doubtful and bad/Loss loans is recorded as 'interest suspense' and not taken to income. This interest is recognized as
income as and when it is realized in cash by the bank.
Withholding tax payable (Payable on interest)
General Provision for Loans & Advance
General Provision for Off Balance Sheet Exposure
Provision for off-balance sheet items is made as per BRPD circular No. 8 of 7 August 2007 and 18 September 2007 for covering the bank for possible
losses on off-balance sheet items in the future. Provision amount is included in the General Provision for standard assets. Details movement of
provision for Off-balance sheet items is as follows:
Interest suspense
29
2016 2015
Amount in Taka
13.6
Opening balance (7,762,117) (8,946,097)
Add: Deffered Tax Expense/ (Income) during the year 2,468,142 1,183,981
(5,293,975) (7,762,117)
14
Securities lien with Bangladesh Bank 7,213,626,369 6,462,789,044
Transferred to IBG (Head Office) / Released from Capital (1,176,000,000) (316,378,395)
Funf Transferred from Surplus Profit & Loss Account 877,471,009 1,067,215,719
6,915,097,378 7,213,626,369
14.1 Capital adequacy as per Basel - III
1. Tier-1 (Core capital) (Note 14.1.1) 7,465,790,417 8,014,537,048
2. Tier-2 (Supplementary capital) (Note 14.1.2) 347,505,465 318,420,440
7,813,295,881 8,332,957,488
(Note 14.2) 14,735,382,200 10,576,628,590
53.02% 78.79%
D. Common EquityTier I i.e. @ 4.5% 50.67% 75.78%
50.67% 75.78%
F. Minimum Capital Requirement (MCR)
10 % of RWA 1,473,538,220 1,057,662,859
As per The Bank Company Act, 1991 4,000,000,000 4,000,000,000
Minimum Capital Required (higher one of above) 4,000,000,000 4,000,000,000
G. Surplus equity (A-F) 3,813,295,881 4,332,957,488
14.1.1 Tier - I (Core Capital)
6,915,097,378 7,213,626,369
555,987,013 808,672,796
Statutory reserve - -
- -
General reserve - -
Retained Earnings - -
Minority interest in subsidiaries - -
Share money deposit - -
- -
Dividend equalization accounts - -
Sub-total 7,471,084,391 8,022,299,165
Surplus in profit & loss accounts/Retained earnings
Fund deposit with Bangladesh Bank
Non-cumulative irredeemable preference shares
Non-repayable share premium account
Fund deposited with Bangladesh Bank
SBI maintained capital in the form of deposit and lien of securities with Bangladesh Bank under section 13(3) of the Bank Company Act, 1991 and
presented under the guidelines of BRPD circular No. 14 dated 25 June 2003. Details of securities lien with Bangladesh Bank is shown in Annexure-F.
Deferred tax is provided using the liability method for timing differences arising between the tax base of assets and liabilities and their carrying values for
reporting purposes as per Bangladesh Accounting Standard (BAS) - 12.
Deffered Tax Liability/ (Asset)
A. Total regulatory Capital (1+2)
B. Total Risk Weighted Assets (RWA)
E. Tier I i.e. @ 5.5%
SBI Bangladesh's capital structure consists of Tier I and Tier II capital which is aligned with regulatory capital structure. Tier I capital is further
categorised as Common Equity Tier 1 (CET1) and Additional Tier 1 capital. The computation of the amount of Common Equity Tier I, Additional Tier
I and Tier II capital shall be subject to the following conditions:
- The Bank has to maintain at least 4.50% of total Risk Weighted Assets (RWA) as Common Equity Tier I capital.
- Tier I capital will be at least 5.50% of the total RWA.
- Minimum Capital to Risk-weighted Asset Ratio (CRAR) will be 10% of the total RWA.
- Additional Tier I capital can be maximum up to 1.5% of the total RWA or 33.33% of CET 1, whichever is higher.
- Tier II capital can be maximum up to 4% of the total RWA or 88.89% of CET1, whichever is higher.
- In addition to minimum CRAR, Capital Conservation Buffer (CCB) @ 0.625% of the total RWA will be maintained in the form of CET1 in a phased
manner from 2016 to 2019.
C. Total (including Tier II) required is 10%
A. Regulatory capital
Tier I capital of the Bank includes funds deposited with Bangladesh Bank, actuarial gain/(loss) and retained earnings. Tier 1 capital is also called „Core
Capital‟ of the Bank. According to BRPD letter ref no.BRPD (BFIS)661/14B(P)/2015-18014 dated 24 December 2015, 5% of deferred tax recognised
on specific provision shall be allowable as CET 1 capital whilst all other deferred tax assets created on other items shall be deducted from the retained
earnings when calculating the capital adequacy ratio.
Tier II capital consists of general provision and revaluation reserve for Held to Maturity (HTM) and Held for Trading (HFT) securities. General
provision for inclusion in Tier II capital is limited to a maximum 1.25% of Credit RWA calculated under the standardised approach. Revaluation reserve
for securities shown as Tier II capital as on 31 December 2014 will be nullified in a phased manner at the rate of 20% starting from 2015 and will be
fully adjusted by 2019.
30
2016 2015
Amount in Taka
Book value of goodwill - -
Shortfall in provision required against classified assets - -
Deficit on account of revaluation of investment in AFS category - -
Any increase in equity capital resulting from a securitization transaction - -
Deferred Tax Assets 5,293,975 7,762,117
Investment in subsidiary - -
Other if any
Sub-total 5,293,975 7,762,117
Total eligible Tier - I Capital (a) 7,465,790,417 8,014,537,048
14.1.2 Tier - II (Supplementary Capital)
General Provision 333,993,866 301,530,941
Asset revaluation reserve 13,511,599 16,889,499
Preference Share - -
Perpetual Subordinated debt - -
Exchange Equalization Fund - -
Sub-total 347,505,465 318,420,440
Total eligible Tier - II Capital 347,505,465 318,420,440
Total regulatory capital 7,813,295,881 8,332,957,488
14.2
12,056,500,897 8,478,787,463
(i) On-balance sheet 6,667,937,332 7,692,977,275
(ii) Off-balance sheet 5,388,563,566 785,810,189
2. Market Risk 578,273,307 33,770,179
3. Operational risk 2,100,607,997 2,064,070,948
14,735,382,200 10,576,628,590
15 Surplus in profit and loss account/ retained earnings
a. Domestic Banking Unit
Balance at the beginning of the year 540,542,977 453,304,637
Add: Net Profit for the year 327,319,684 648,810,282
Add: Excess Income Tax Provision Written Back - 62,424,557
Add: Net Profit received from Off-share Banking Unit (OBU) 268,129,819 443,219,220
Less: Excess Revaluation Reserve Transfer to Profit & Loss Account 14,477,979 -
Less: Transfer to deposit with Bangladesh Bank 877,471,009 1,067,215,719
Sub-Total 272,999,450 540,542,977
b. Off-shore banking unit:
Opening balance 268,129,819 320,145,040
Add: Net profit during the year 282,987,563 268,129,819
Less: Transfer to Retained Profit (268,129,819) (320,145,040)
Sub-Total 282,987,563 268,129,819
Total (a+b) 555,987,013 808,672,796
16 Other reserve
Balance at the beginning of the year 78,029,831 42,223,747
Add: Amortization gain on HTM securities 40,011,951 78,029,831
118,041,782 120,253,578
Less: Transferred to Profit & Loss Account at maturity 78,029,831 42,223,747
40,011,951 78,029,831
Off-shore Banking Unit - -
40,011,951 78,029,831
17 Contingent liabilities
Bills for collection - -
Import Letters Of Credit - Sight 1,735,179,160 1,076,586,029
Import Letters Of Credit - Usance - -
Import Letters Of Credit - Back to Back - -
Letter of guarantee (Note 17.1) 19,190,088,926 19,595,943,443
20,925,268,087 20,672,529,472
Off-shore Banking Unit - -
20,925,268,087 20,672,529,472
17.1 Letter of guarantee
Letter of Guarantee (Local) - -
Letter of Guarantee (Foreign) 19,190,088,926 19,595,943,443
Foreign counter Guarantee - -
19,190,088,926 19,595,943,443
Less: margin 1,153,266 103,656,684
19,188,935,660 19,492,286,758
Amount deductable from CET 1 Capital ( Regulatory Adjustments)
1. Investment (credit) Risk
Risk Weighted Assets (RWA)
31
2016 2015
Amount in Taka
Balance for which the Bank is contingently liable in respect of guarantee issued favoring
Directors - -
Government - -
Bank and other financial institution 19,190,088,926 19,595,943,443
Less : Margin 1,153,266 103,656,684
19,188,935,660 19,492,286,758
17.2 Irrevocable letter of credit
Letter of Credit (Inland) - -
Letter of Credit (General) 1,735,179,160 1,076,586,029
Back to Back L/C - -
1,735,179,160 1,076,586,029
Off-shore banking unit - -
1,735,179,160 1,076,586,029
Less: Margin 574,479,607 402,340,557
1,160,699,554 674,245,472
17.3 Suit filed against the bank
No law suit filed against the bank for which Bank's are contingent liabilities.
Previous years figures has been re-arragned to conform the prescribed formate of Bangladesh Bank.
Bank guarantee no. 05112FG000371 dated: 06.06.2012 for USD 3.8 mio has expired on 07.03.2013 in favor Powercell. Before maturity Powercell
applied for invocking the guarantee. But Lanco Infratech Ltd (Beneficiarry) obtained stay order from Hon'ble Supreme Court untill the matter is finally
heared by the Hon'ble Court. The bank has Foreign Counter Guarantee from SBI, Kolkatta as security.
32
2016 2015
18 Income statement
Income
Interest, discount and similar income 478,834,514 577,454,142
Fees, commission and brokerage 771,784,183 693,665,877
Gains less losses arising from dealing securities - -
Gains less losses arising from investment securities 477,860,493 538,532,052
Income from non-banking assets - -
2,296,317 1,026,391
Profit less losses on interest rate changes - -
1,730,775,507 1,810,678,462
Expenses
Interest, fees and commission 291,321,596 374,919,235
Losses arising from dealing securities - -
199,369,154 200,406,755
162,242,211 124,091,718
Depreciation on banking assets 18,362,663 18,446,427
671,295,624 717,864,136
Off-shore Banking Unit (OBU) 318,419,306 277,056,364
1,377,899,188 1,369,870,690
18.1 Interest, discount and similar income
Interest on loans and advances 351,039,203 372,739,441
Interest on money at call and short notice 127,795,311 204,714,701
Interest on balance with other banks - -
Interest on other sundry income - -
478,834,514 577,454,142
Off-shore Banking Unit (OBU) 390,928,320 335,193,537
869,762,833 912,647,679
18.1.1 Interest on loans and advances
Cash Credits 167,928,371 140,253,889
Overdrafts 43,125,097 93,040,309
Bill Purchased & Discount - -
Demand Loan 1,276,841 12,685,005
Term Loan 138,708,894 126,760,239
351,039,203 372,739,441
18.2 Fees, commission and brokerage
Fees - -
Commission 771,784,183 693,665,877
771,784,183 693,665,877
18.3 Administrative expenses
Salaries and allowances 103,999,435 107,747,840
73,009,418 72,071,327
Legal expenses 1,461,468 2,835,445
7,805,467 4,233,627
8,899,903 8,719,552
Chief Executive's salary & fees - -
Directors' fees & expenses - -
Auditors' fee 300,000 345,000
Repairs & maintenance of fixed assets 3,893,462 4,453,964
199,369,154 200,406,755
(Note-18.3)
(Note-20)
Other operating income
Administrative expenses
Other operating expenses
Amount in Taka
(Note-18.1)
(Note-18.2)
(Note-22)
(Note-19)
(Note-28)
(Note 18.1.1)
Rent, taxes, insurance, electricity etc.
Postage, stamps, telecommunication etc.
Stationery, printing, advertisement etc.
33
2016 2015
Amount in Taka
19 Interest paid on deposits and borrowing etc.
Interest on deposits
Recurring Deposit 16,826,835 16,205,492
Short Term Deposit (STD) 13,926,091 6,328,741
Savings 15,769,189 17,205,701
Term 183,875,986 277,346,554
230,398,100 317,086,487
60,923,496 57,832,748
Interest on local bank accounts - -
Off-shore Banking Unit (OBU) 93,177,702 68,809,486
384,499,298 443,728,722
20 Investment income
Interest on treasury bonds 477,860,493 365,421,339
Interest (discount) on treasury bills - 170,254,810
Dividend income - 2,855,903
477,860,493 538,532,052
21
Commission for Guarantees 89,762,855 122,808,169
Commission for LC negotiation/amendment/advising 39,500,082 22,236,571
Commission for Foreign bill negotiation - -
Commission for outward remittances 8,885,123 7,849,480
Commission on Visa Processing 560,620,145 475,469,359
Commission for miscellaneous 11,732,258 13,955,388
Foreign exchange earnings 61,283,720 51,346,910
771,784,183 693,665,877
Off-shore banking unit 25,469,769 9,097,775
797,253,952 702,763,652
22 Other operating income
Miscellaneous Income (DBU) 2,296,317 1,026,391
Off-shore Banking Unit (OBU) (401,693) 1,755,042
1,894,624 2,781,433
23
Basic Salary 77,383,568 84,631,917
Salary Casual Staff 18,652,560 15,901,702
Bonus & Ex-gratia 3,529,590 3,364,481
Provident Fund 4,433,718 3,849,740
103,999,435 107,747,840
Off-shore banking unit 3,698,244 -
107,697,679 107,747,840
24 Rent, taxes, insurance, electricity etc.
Rent, rates & taxes 55,514,055 55,200,379
Insurance 7,709,938 7,877,753
Power & electricity 9,785,425 8,993,195
73,009,418 72,071,327
Off-shore banking unit 476,671 -
73,486,090 72,071,327
25 Postage, stamp, telecommunication etc.
Postage & courier 5,082,592 949,930
Telephone-Office 2,548,539 3,196,174
Telephone-Residence 174,337 87,523
7,805,467 4,233,627
26 Stationery, printing, advertisement etc.
Stationery & Printing 8,470,903 8,612,062
Advertisement Statutory 429,000 107,490
Advertisement Public Relation - -
8,899,903 8,719,552
Commission, exchange and brokerage
Salaries and allowances
Interest on money at call and short notice
34
2016 2015
Amount in Taka
27 Auditors' fee
Audit Fee (Statutory Audit) 300,000 345,000
Others - -
300,000 345,000
28 Depreciation on and repairs to bank's assets
A. Depreciation of property plant and equipments
Furniture & fixtures 3,401,076 3,511,154
Office equipments 4,784,936 5,369,596
IT hardware 10,176,651 9,565,678
18,362,663 18,446,427
B. Repairs & maintenance expenses
Transport Maintenance - -
Equipment Maintenance 2,168,296 4,453,964
Hardware & Software Maintenance 1,725,166 -
Premises Maintenance - -
3,893,462 4,453,964
- -
22,256,125 22,900,391
29 Other expenses
Water Consumption 1,360,023 1,622,170
Traveling expenses 1,618,433 3,085,726
Halting allowance 440,372 580,782
House up keep IB officers 47,230 37,680
Medical expenses 2,769,965 2,636,821
Computer expenses 26,280,085 16,861,335
Petrol, Oil and Lubricants 2,192,510 1,966,979
Security 13,031,106 11,970,939
Membership subscription 425,288 565,783
Entertainment: canteen & other 8,809,672 10,597,212
News paper/Books 1,946,780 1,697,358
Conveyance Allowance - 10,632,345
Finacle Expenses 57,805,976 20,116,357
Children Education 884,510 643,085
Clearing Expenses 1,006,484 1,099,876
Other Allowances 3,680,747 4,379,800
Overheads 8,028,520 6,402,829
Charges Donation 1,136,390 2,170,650
Rentals 7,492,796 6,090,522
Training 1,960,736 1,559,979
Charges Others 21,324,590 19,373,491
162,242,211 124,091,718
Off-shore Banking Unit (OBU) 224,473 180,503
162,466,684 124,272,222
30
a) Provision on loans & advances
Provision made/ (adjusted) during the year for STD account (5,717,681) 6,131,931
Specific Provision made during the year 292,882,351 22,048,839
Recoveries/Provision no longer required - (2,755,427)
287,164,671 25,425,343
Provision on LC & BGProvision on LC & BG Provision on LC & BGProvision on LC & BG 2,527,386 32,394,721
Less: Recoveries/Provision no longer required - -
2,527,386 32,394,721
c) Off-shore Banking Unit (OBU) 35,431,743 8,926,545
35,431,743 8,926,545
Grand Total (a+b+c) 325,123,800 66,746,609
b) Provision for Off Balance Sheet
C. Off-shore Banking Unit (OBU)
Provisions
Previous year provision for off balance sheet items was included with provision for loans & advances and shown in the profit and loss account
grossly. Now we have rearranged the figures and shown separately to confirm the current year's presentation.
35
2016 2015
Amount in Taka
31 Related party/(ies) transactions
Year end balance
NIL
32
1,242,080.63 (637,366.00)
40,415.16 -
612,128.44 -
1,894,624.23 (637,366.00)
33
(73,009,418) (72,071,327)
(1,461,468) (2,835,445)
(7,805,467) (4,233,627)
(8,899,903) (8,719,552)
(300,000) (345,000)
-
(22,256,125) (22,900,391)
(162,466,684) (100,007,346)
(276,199,065) (211,112,688)
34
Cash 2,885,251,707 537,300,701
Balance with other banks and financial institutions 349,732,131 219,289,052
Money at call and short notice 1,380,000,000 1,810,000,000
Prize bonds 57,800 914,300
4,615,041,638 2,567,504,053
Nill NIL
Nature of Transaction
NIL
The bank had no transactions with related parties in the normal course of business an on arm length basis. As on 31 December 2016, the bank
had following transactions with the 'Related Party/(ies)' as defined in the BRPD Circulars No. 14 issued by the Bangladesh Bank on 25 June
2003.
Name of the Related Parties Relationship
Receipts from other operating activities
SWIFT Charges
Interest Income from Local Banks
Service & Other Charges from Vostro Account
Payment for other operating activities
Charges on loan losses
Depreciation on and repairs to bank's assets
Other expenses
Cash and cash-equivalents items Breakup
Rent, taxes, insurance, electricity etc.
Legal expenses
Postage, stamps, telecommunication etc.
Stationery, printing, advertisement etc.
Auditors' fee
36
2016 2015
PROPERTY AND ASSETS
Cash 3 2,361,501,661 537,300,701
Cash in hand (Including foreign currency) 30,902,087 33,878,228
Balance with Bangladesh bank and its agent bank(s) (Including foreign
currency)2,330,599,574 503,422,473
Balance with other Banks and Financial Institutions 4 349,732,131 219,289,052
Inside Bangladesh 11,811,434 28,755,594
Outside Bangladesh 337,920,697 190,533,458
Money at call and short notice 5 1,380,000,000 1,810,000,000
Investments 6 7,949,618,992 8,295,526,431
Government 7,946,480,102 8,292,387,541
Others 3,138,890 3,138,890
Loans and advances 7 3,177,658,345 4,409,452,413
Loans, cash credit, overdrafts etc. 3,175,934,530 4,404,078,651
Bills purchased & discounted 1,723,815 5,373,762
Fixed assets including premises, furniture and fixtures 8 86,087,904 84,231,987
Other assets 9 1,023,458,061 796,102,333
Non-banking assets 10 - -
Total Property and Assets 16,328,057,094 16,151,902,917
(16,294,653,254)
LIABILITIES AND CAPITAL 33,403,840
Liabilities
Borrowings from other banks, financial institutions and agents 11 - -
Deposit and other accounts 12 7,932,150,891 6,998,205,205
Current & other accounts 3,105,967,659 2,065,990,491
Saving deposits 495,485,884 464,115,751
Fixed deposits 3,372,359,541 3,815,822,651
Other deposits 958,337,807 652,276,312
Other liabilities 13 1,167,797,423 1,321,498,535
Total liabilities 9,099,948,314 8,319,703,740
Capital and shareholders' equity
Fund deposited with Bangladesh Bank 14 6,915,097,378 7,213,626,367
Surplus in profit and loss account/ Retained earnings 15 272,999,451 540,542,978
Other reserve 16 40,011,951 78,029,831
Total shareholders' equity 7,228,108,780 7,832,199,176
Total liabilities and shareholders' equity 16,328,057,094 16,151,902,916
0 1
16,149,047,015
0.12 0.86
Country Head
Dated: Dhaka-February 27, 2017
Notes
Domestic Banking Unit
State Bank of India
Balance Sheet
As at December 31, 2016
Bangladesh Operations
Amount in Taka
The accompanying notes form an integral part of these financial statements
Head of Risk Management Department
Signed as per our report of even date
HOWLADAR YUNUS & CO.
Chartered Accountants
37
2016 2015
Off-Balance Sheet Items
Contingent Liabilities
Acceptances and endorsements - -
Letter of guarantees 19,190,088,926 19,595,943,443
Irrevocable letter of credits 1,735,179,160 1,076,586,029
Bills for collection - -
Other contingent liabilities - -
Total contingent liabilities 17 20,925,268,087 20,672,529,472
Other commitments
Documentary credits and short term trade related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other - -
Commitments- lease hold assets - -
Total other commitments - -
Total Off-Balance Sheet items including contingent liabilities 20,925,268,087 20,672,529,472
Country Head
Dated: Dhaka-February 27, 2017
Notes
Head of Risk Management Department
Taka
The accompanying notes form an integral part of these financial statements
Signed as per our report of even date
HOWLADAR YUNUS & CO.
Chartered Accountants
38
2016 2015
Operating Income
Interest income 18.1 478,834,514 577,454,142
Interest paid on deposits and borrowing etc. 19 291,321,596 374,919,235
Net interest income 187,512,918 202,534,907
Investment income 20 477,860,493 538,532,052
Commission, exchange and brokerage 21 771,784,183 693,665,877
Other operating income 22 2,296,317 1,026,391
Total operating income 1,439,453,911 1,435,759,227
Salaries and allowances 23 103,999,435 107,747,840
Rent, taxes, insurance, electricity etc. 24 73,009,418 72,071,327
Legal expenses 1,461,468 2,835,445
Postage, stamps, telecommunication etc. 25 7,805,467 4,233,627
Stationery, printing, advertisement etc. 26 8,899,903 8,719,552
Chief executive's salary & fees -- -
Directors' fees & expenses - -
Auditors' fee 27 300,000 345,000
Charges on loan losses - -
Depreciation on and repairs to bank's assets 28 22,256,125 22,900,391
Other expenses 29 162,242,211 124,091,718
Total operating expenses 379,974,028 342,944,900
Profit/(loss) before provisions 1,059,479,883 1,092,814,327
Provision for
Loans and advances 287,164,671 25,425,343
Provision for diminution in value of investments - -
Off balance sheet items 2,527,386 32,394,721
Total provision 30 289,692,057 57,820,064
Profit/(loss) before taxes 769,787,826 1,034,994,263
Provision for Tax
Current tax expense 13.5 440,000,000 385,000,000
Deferred tax expense/ (income) 13.6 2,468,142 1,183,981
Total provision for tax 442,468,142 386,183,981
Total profit/(loss) after taxes 327,319,684 648,810,282
Appropriations
Statutory reserve - -
General reserve - -
Dividend etc. - -
Retained earnings 327,319,684 648,810,282
Country Head
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
Head of Risk Management Department
Domestic Banking Unit
Bangladesh Operation
Amount in Taka
Signed as per our report of even date
State Bank of India
The accompanying notes form an integral part of these financial statements
Profit and Loss Account
For the year ended December 31, 2016
Notes
39
2016 2015
A. Cash flows from operating activities
Interest receipts 966,970,849 1,401,005,671
Interest payment (308,037,156) (455,887,606)
Dividend received 2,855,903 2,855,903
Fees & commissions receipts 710,500,464 642,318,967
Received from loan write off recovery - -
Cash payments to employees (99,565,717) (101,669,841)
Cash payments to suppliers - -
Income tax paid (256,440,866) (260,000,000)
Receipts from other operating activities 32 2,296,317 (637,366)
Payment for other operating activities 33 (275,974,593) (211,112,688)
Operating profit/(loss) before changes in operating assets &
liabilities 742,605,201 1,016,873,040
Increase/decrease in operating assets & liabilities
Loans & advances to customers 1,231,794,068 (90,707,366)
Other assets (261,322,164) (174,972,122)
Deposits from customers 933,945,686 613,207,894
Other liabilities (153,701,112) (465,293,888)
Cash utilised in operating assets & liabilities 1,750,716,479 (117,765,482)
Net cash from operating activities 2,493,321,680 899,107,558
B. Cash flows from investing activities
Payments for purchase of securities 143,222,656 (512,304,178)
Investment in prize bond 856,500 77,300
Purchase/sale of property, plant & equipment 1,102,984 (12,305,247)
Net cash used in investing activities 145,182,140 (524,532,125)
C. Cash flows from financing activities
Receipts from the capitalization/ Capital Transferred to IBG (1,176,000,000) -
Net cash flows from financing activities (1,176,000,000) -
Net increase/decrease in cash 1,462,503,819 374,575,433
Effects of exchange rate changes on cash & cash equivalent 61,283,720 51,346,910
Cash and cash equivalents at the beginning of year 2,567,504,053 2,141,581,711
Cash and cash equivalents at the end of year 34 4,091,291,592 2,567,504,053
Country Head
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
Note
Head of Risk Management Department
Amount in Taka
The accompanying notes form an integral part of these financial statements
Signed as per our report of even date
State Bank of India Bangladesh Operations
Domestic Banking Unit
For the year ended December 31, 2016
Cash Flow Statement
40
7,213,626,369 78,020,831 540,542,978 7,832,190,176
- - 268,129,819 268,129,819
Net profit for the year (DBU) - - 327,319,684 327,319,684
Amortisation gain on HTM Securities transferred to P&L - (78,020,831) - (78,020,831)
Amortisation gain on HTM Securities - 40,011,951 - 40,011,951
Fund untilised which were kept as Capital 877,471,009 - (877,471,009) -
Partial Capital Transferred to IBG (India) (1,176,000,000) - - (1,176,000,000)
Excess Revaluation Reserve Transferred to Profit & Loss Account - - 14,477,979 14,477,979
6,915,097,378 40,011,951 272,999,451 7,228,108,780
(0.23) 6,915,097,378 40,011,951 272,999,451
6,462,789,044 42,223,747 453,304,638 6,958,317,428
Net profit for the year - - 648,810,282 648,810,282
Fund released which were kept as Capital - - - -
Adjsutement in respect of previous year profit of OBU - - 443,219,220 443,219,220
Amortisation gain on HTM Securities transferred to P&L - (42,223,747) - (42,223,747)
Amortisation gain on HTM Securities - 78,020,831 - 78,020,831
Fund utilised as Capital 1,067,215,719 - (1,067,215,719) -
Fund released which were kept as Capital (316,378,395) - - (316,378,395)
Excess Provision for Income Tax written back - - 62,424,557 62,424,557
7,213,626,369 78,020,831 540,542,978 7,832,190,176
Statement of Changes in Equity
(Figures in Taka)
State Bank of India
TotalFund deposited with
Bangladesh Bank
Domestic Banking Unit
Bangladesh Operations
ParticularsSurplus in Profit &
Loss Account Other Reserve
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
Signed as per our report of even date
For the year ended December 31, 2016
Head of Risk Management Department
Balance as of 01 January 2015
Balance as of 31 December 2016
Adjsutement in respect of previous year profit of OBU
Balance as of 01 January 2016
Balance as of 31 December 2015
Country Head
41
(Figures in Taka)
0 - 1 1 - 3 3 - 12 1 - 5 Above 5
Month Months Months Years Years
Assets
Cash in hand 30,902,087 - - - - 30,902,087
Balance with Bangladesh Bank 2,330,599,574 - - - 0 2,330,599,574
Balance with other bank, Other Banks and financial Institutions (Including
foreign currencies)349,732,131 - - - - 349,732,131
Money at call and on short notice 1,380,000,000 - - - - 1,380,000,000
Investments 57,800 1,656,749,052 2,832,205,953 979,671,970 2,480,934,216 7,949,618,992
Loans and advances 239,773,280 715,405,782 593,670,848 728,847,578 899,960,857 3,177,658,345
Fixed assets including premises, furniture & fixtures - - - - 86,087,904 86,087,904
Other assets - - - - 1,023,458,061 1,023,458,061 Non - banking assets - - - - - -
Total Assets 4,331,064,872 2,372,154,834 3,425,876,801 1,708,519,548 4,490,441,038 16,328,057,094
LIABILITIES
Convertible subordinated debts - - - - - -
Money at call and on short notice - - - - - - Deposits & other accounts 2,344,743,803 1,448,410,753 776,478,251 1,077,979,306 2,284,538,778 7,932,150,891 Provision & Other Liabilities 881,506 568,066,970 - 7,826,957,727 8,395,906,203
Total liabilities 2,344,743,803 1,449,292,259 1,344,545,221 1,077,979,306 10,111,496,505 16,328,057,094
Amount of net liquidity difference 1,986,321,069 922,862,575 2,081,331,581 630,540,242 (5,621,055,466) 1
Net result of the Liquidity Statement represents the 'Shareholders Equity' of the Bank.
Country Head Head of Risk Management Department
State Bank of India
Liquidity Statement
(Assets & Liabilities Maturity Analysis)
For the year ended December 31, 2016
Domestic Banking UnitBangladesh Operations
Signed as per our report of even date
HOWLADAR YUNUS & CO.
Chartered Accountants
Dated: Dhaka-February 27, 2017
TotalParticulars
- - Borrowings from Bangladesh bank, other Banks, financial institutions and
agents- - - -
42
1. Corporate information
1.2 Principal activities
1.3 Capital structure of the Bank
2. Significant accounting policies and basis of preparation of financial statements
2.1 Basis of accounting
2.2 Basis of consolidation
2.3 Use of estimates and judgments
2.4 Foreign currency transactions
i. Functional and presentational currency
ii. Foreign currency transaction
2.5 Taxation
The principal activities carried out by the bank include all kinds of commercial banking activities / services to its customers through its
branches and electronic delivery channels in Bangladesh. The bank is a foreign bank as per Income Tax Ordinance 1984.
SBI maintained capital in the form of deposit and lien of securities with Bangladesh Bank under section 13(3) of the Bank Company Act,
1991 and presented under the guidelines of BRPD circular No. 14 dated 25 June 2003.
The financial statements, namely, Balance Sheet, Profit & Loss Accounts, Cash Flow Statement, Statement of Changes in Equity, Liquidity
Statement and relevant notes and disclosure thereto, are prepared on a going concern basis under historical cost conversion, and in
accordance with First Schedule of the Bank Company Act 1991, as amended BRPD circular no. 14 of 25 June 2003.
A separate set of records for consolidating the Balance Sheet and Profit and Loss Accounts of the branches are maintained at the Country
Office of the Bank based on which these financial statements have been prepared.
The preparation of the financial statements in conformity with BFRS requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgments about carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the
revision or future periods, if the revision affects both current and future periods.
Financial statements of the Bank are presented in Taka, which is the Bank's functional and presentation currency.
State Bank of India
Bangladesh Operations
Domestic Banking Unit
Notes to Financial Statements
For the year ended 31 December 2016
The State Bank of India incorporated in India under the State Bank of India Act 1955. State Bank of India has been operating in
Bangladesh since 05 May 1975. It operates its activities through six branches – Two in Dhaka, one in Chittagong, one in Sylhet, one in
Rajshahi and in Khulna. Apart from these branches, the bank has two OBU units; one in Dhaka and another in Chittagong.
Foreign currency transactions are converted into equivalent Taka currency at the ruling exchange rates on the respective dates of
such transactions as per BAS-21 "The effects of Changes in Foreign Exchange Rates".
Assets and liabilities in foreign currencies at 31 December 2016 have been converted into Taka currency at the average of the
prevailing buying and selling rates of the relevant foreign currencies at that date except "Balances with other Banks and Financial
Institutions" which have been converted as per directives of Bangladesh Bank vide its circular no. BRPD(R) 717/2004-959 dated 21
November 2004. Differences arising through buying and selling transactions of foreign currencies on different dates of the year
have been adjusted by debiting/ crediting exchange gain or loss account.
Income tax expense represents the sum of the current tax and deferred tax.
43
2.5.1 Current tax
2.5.2 Deferred tax
2.6 Assets and basis of their valuation
2.6.1 Cash and cash equivalents
2.6.2 Investments
2.6.2.1 Held to maturity (HTM)
2.6.2 Loans and advances
(a)
(b)
(c)
Interest on loans and advances is calculated on a daily product basis but charged and accounted for quarterly on accrual basis.
Interest on classified loans and advances is kept in interest suspense account as per directives of Bangladesh Bank and such interest
is not accounted for as income until realized from borrowers.
Interest is not charged on bad and doubtful loans and advances from the date of filing money suits against the borrowers.
Provision for loans and advances is made on the basis of periodical review by the management and of instructions contained in
Bangladesh Bank's BCD circular nos. 34 of 16 November 1989, 20 of 27 December 1994 and 12 of 04 September 1995 and BRPD
circular nos. 16 of 06 December 1998, 9 of 14 May 2001, 2 of 15 February 2005, 9 of 20 August 2005, 17 of 6 December 2005, 5 of
5 April 2008, 07 of 14 June 2012, 14 of 23 September 2012, 19 of 27 December 2012 and 5 of 29 May 2013 respectively at the
following rates:
Prize Bond & Other Bond Cost None None
Unquoted Shares (ordinary) Cost Cost None
Treasury Bills (HTM) Cost Amortized cost Increased or decreased in value to equity.
Treasury Bonds (HTM) Cost Cost
No amortization for at per Investment / Amortized Gain
to Revaluation reserve/ Loss to P&L (in case of Discount
or Premium)
Cash and cash equivalents include currency notes and coins on hand, balances held with Bangladesh Bank and most liquid financial assets
which are subject to insignificant risk of changes in their fair value, and are used by the Bank to meet its short term obligations.
All investments securities are initially recognized at cost, including acquisition charges associated with the investment. Premiums are
amortized and discount accredited, using the effective yield method and are taken to discount income. The valuation method of Marking
to Market for investments used are:
Investments which have "fixed or determinable payments' and fixed maturity that the group has the positive intent and ability to held to
maturity, other than those that meet the definition of 'Held at amortized cost others' are classified as held to maturity. These investment
are subsequently measured at amortized cost, less any provision for impairment in value. Amortized cost is calculated by taking into
account any discount or premium in acquisition. Any gain or loss on such investments is recognized in the statement of income when the
investment is derecognized or impaired as per IAS -39 " Financial Instruments : Recognition and Measurement"
Value of Investments has been shown as under:
Investment Class Initial Recognition Subsequent
Measurement Recording of changes
The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Profit and Loss
Statement because it excludes items of income or expense that are taxable or deductible. The Bank's liability for current tax is calculated
using tax rates that have been enacted or substantively enacted by the date of Balance Sheet.
Provision for current income tax has been made @ 42.5% on accounting profit made by the Bank after considering some of the add backs
of income and disallowances of expenditure as per Income Tax Ordinance 1984.
Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax
assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred tax assets and
liabilities are recognised for the future tax consequences of timing differences arising between the carrying values of assets, liabilities,
income and expenditure and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates and tax laws that
have been enacted or substantially enacted at the date of Balance Sheet. The impact on the account of changes in the deferred tax assets
and liabilities has also been recognised in the Profit and Loss Accounts as per BAS 12 “Income Taxes”.
44
(i) General provision on unclassified loans and advances Rate (%)
Standard general loans and advances 1%
Standard Small & Medium enterprise Financing 0.25%
Standard loans to Merchant Banking/BHs/SDs 2%
2%
Standard Consumers loan Scheme other than HF and LP 5%
Standard Short term Agri and Micro credit 2.5%
Special Mention Account general Loans and advances 1%
Special mention account Small & Medium enterprise Financing 0.25%
Special mention account loans to BHs/MBs/Sds 2%
Special mention account HF and LP 2%
Special mention account Consumer's loan scheme other than HF &LP 1%
(ii) Specific provision on classified loans and advances
Substandard (Agri & Micro credit) 5%
Doubtful (Agri & Micro credit) 5%
Substandard 20%
Doubtful 50%
Bad or Loss 100%
(d)
2.6.3 Fixed assets and depreciation
a) Recognition
b) Depreciation
(i) Depreciable assets are stated at cost less accumulated depreciation.
(ii)
(iii)
c) Sale of fixed assets
d) Impairment
e) Others
Sale price of fixed assets are determined on the basis of fair value of the assets. Gain or loss on sale of assets are recognized in
profit & loss account as per provision of BAS 16 Property plant & equipments.
If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset should be reduced to its
recoverable amount. That reduction is an impairment loss. An impairment loss is recognised as an expenses in the income
statement.
Useful life and method of depreciation of property plant & equipment are reviewed periodically. As useful lives of assets do not
differ significantly from that previously estimated, Bank Management does not consider to revalue its assets by the meantime.
Furniture & fixture 10%
Office equipment 25%
Computer 25%
Furniture, fixture and equipments have been accounted for at cost less accumulated depreciation. Cost includes expenditure that is
directly attributable to the acquisition of the items.
Depreciation has been charged on reducing balance method at the following rates. Depreciation is charged for full year while
assets are purchased within first six month of the year and 50% depreciation is charged in case assets. are purchased during
the next six months of the year.
No depreciation has been charged during the year of disposal.
Category of assets Depreciation Rate
Standard Housing Finance and loans for professional to set up a
Loans and advances are written off to the extent that there is no realistic prospect of recovery, and against which legal cases are
pending for more than five years as per guidelines of Bangladesh Bank subject to getting approval from Corporate Centre
Mumbhai. These write offs, however, will not undermine/affect the claim amount against the borrowers. Detailed memorandum
records for all such written off accounts are meticulously maintained and followed up.
The cost of an item of furniture, fixture and equipments (Fixed assets) shall be recognized as an asset if, and only if it is probable
that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
45
2.6.4 Other Assets
2.7 Retirement benefits to the employees
a)
b)
2.8 Revenue recognition
(i)
(ii)
(iii)
(iv)
2.9 Cash flow statement
2.10 Statement of liquidity
2.11 Statement of changes in equity
2.12 Reconciliation of books of account
Commission and discount on bills purchased and discounted are recognized at the time of realization.
Cash Flow Statement is prepared principally in accordance with BAS-7 "Cash Flow Statement" under direct method as per guidelines of
BRPD circular no. 14 dated 25 June 2003. The Cash Flow Statement shows the structure of and changes in cash and cash equivalents
during the financial year. It reported cash flows during the period classified by operating activities, investing activities and financing
activities.
The liquidity statement has been prepared in accordance with the remaining maturity period of the value of the assets and liabilities as on
the reporting date as per the guidelines provided by Bangladesh Bank in BRPD Circular No 14 of 25 June 2003, DOS Circular No 02 of
29 March 2011.
Statement of changes in equity is prepared in accordance with BAS-1" Presentation of Financial Statements" and under the guidelines of
BRPD circular no.14 dated 25 June 2003.
Books of account in regard to inter bank (inside Bangladesh and outside Bangladesh) and inter branch transactions are being regularly
reconciled. The Bank however, formed a task force to take positive steps to eliminate the long outstanding inter branch entries within the
shortest period of time.
Gratuity
The bank has a gratuity scheme, which covers all of its permanent employees. The gratuity would be payable equivalent to 02
month‟s last drawn basic salary for each completed year of service to the employees who have been in the service of the Bank for
minimum period of 12 years in the Bank (maximum ceiling Tk. 30.00 lac). The company made provision for gratuity during the year
as Bangladesh Accounting Standard.
The revenue during the year is recognized as follows which satisfy all conditions of revenue recognition as prescribed by BAS 18
"Revenue".
Interest is calculated on daily product basis on unclassified loan and advances but charged on a quarterly basis.
Interest is charged on classified loans and advances as per Bangladesh Bank's BRPD circular no. 16 of 06 December 1998 and
other related circulars and such interest is not taken into income.
Dividend income is recognized at the time when right to receive is established.
Other assets include all other financial assets and include interest, fees and other unrealised income receivable, Prepaid interest expenses
on fixed deposits, advance for operating and capital expenditure, security deposits and stocks of stationery & stamps etc. Provision for
other assets is made as per BRPD circular no. 14 of 25 June 2001.
Provident fund
The Bank operates a contributory provident fund for its eligible employees. The Commissioner of Income Taxes, Dhaka has
approved the provident fund as a recognized provident fund as per section 2(1) of Part B of the First Schedule of Income Tax
Ordinance 1984. The Fund is administered by a Board of Trustees consisting 3 (three) members and funded by contributions both
from employees and Bank @10% of basic salary. Interest earned from the investment is credited to the members‟ accounts
annually. Provident fund benefits are given to the employees of the Bank in accordance with provident fund rules of the Bank.
46
2.13 Risk Management
a)
b) Foreign Exchange Risk Management
c) Asset Liability Management
Assets Liability Management is the most important aspect for the Financial Institution to mange Balance Sheet Risk, especially for
managing of liquidity risk and interest rate risk. Change in Market Liquidity and interest rate expose bank business to the risk of
loss. Failure to identify the risks associated with business and failure to take timely measures in giving a sense of direction may
threaten the survival of institution.
As such, it is important that senior management must understand the existence of such risk on the balance sheet and they should
ensure that the structure of the banks business and the level of balance sheet risk it assumes are effectively managed and appropriate
policies and procedures are established to control and limit these risks, and that resources are available for evaluating and
controlling interest rate risk. To address all the risk elements of the balance sheet ALCO meeting was conducted every month in
2015, ATM desk of the bank analyses the balance sheet risk and prepares the monthly ALCO papers as per the guidelines of
Bangladesh Bank. By strongly monitoring the maturity gap of assets and Liabilities and interest rate movement, bank is able to
maintain optimum liquidity with required regulatory compliances. A policy Guideline on Assets Liability Management has been
formulated, approved by appropriate authority of the bank and revised time to time.
The risk of the Bank may be defined as the possibility of losses, financial or otherwise. The risk management of the Bank covers 06 core
risks i.e. Credit Risk, Internal Control & Compliance Risk, Money Laundering Risk, Asset Liability Management Risk (Balance Sheet Risk),
Foreign Exchange Risk and Information Technology Risk. Moreover, Operational Risk, Market Risk, Liquidity Risk, Residual Risk,
Reputation Risk, Strategic Risk, Settlement Risk and Environmental & Climate Change Risk are also brought into consideration. Success
or failure of the Bank depends to a great extent on proper identification and minimization of these risks. The prime objective of the risk
management is that Bank takes well calculative business risks while safeguarding the Bank's capital, its financial resources and profitability
from various risk areas. A separate Risk Management Unit (RMD) has been formed headed by one India Based Officer where all the
Chief Executive Officer & Division Heads of Head Office are the members and the Division Head(AVP- R&C), Internal Control &
Compliance Division is the member secretary. The Committee is responsible to our Honorable Country Head for compliance and
implementation of the decisions. Monthly meeting of Risk Management Department is arranged on regular basis where different risks are
discussed and decisions are gradually implemented. Minutes of Risk Management Department meeting along with risk management papers
are submitted to Bangladesh Bank on quarterly basis. Yearly Health Report is placed before the Management in which analytical &
exhaustive information are highlighted. Yearly summary report on the audit findings are also placed before the Audit committee of the
Local Management mentioning & highlighting different incidences and the decisions are implemented by the Bank. As a part of risk
management, adequate capital is maintained against Credit Risk, Market Risk and Operational Risk under Basel-II accord. Under the
second pillar of Basel-II, a Supervisory Review Process (SRP) team has been formed comprising Honorable Chief Executive
Officer(Dhaka Branch), Vice President(Operations), Accounts Division, Division Head, Audit Division, Division Head, Credit
Administration, Monitoring & Recovery Division, Division Head, International Division and Division Head, Credit Division-I to review,
monitor and maintain adequate capital considering all relevant risks. Stress Testing is done on quarterly basis to assess the impact of
different risks associated with banking business on asset, liability & ultimately on capital and the report is submitted before the Local
Management and to Bangladesh Bank regularly.
As per BRPD Circular no. 11 dated 27 October 2013, a Risk Management Committee of the Board has been formed and the Committee
has already started it's operation.
Credit Risk
Credit risk is the possibility that a borrower or counter party will fail to meet its obligations in accordance with agreed terms. The
failure may result from unwillingness of the counter party or decline in his/her financial condition. Credit risk, therefore, arises
from the bank‟s dealing with or lending to corporate, individuals, other banks or financial institutions. A separate Credit Division
has been formed at Head Office since the inception of the bank, which is assigned with the duties of marketing and assessment of
credit products, maintaining effective relationship with the customer and exploring new business opportunities. In line with
Bangladesh Bank guidelines the bank has segregated marketing, approval and monitoring/recovery functions.
The credit risk management includes borrower risk analysis, financial statement analysis, industrial analysis, historical performance
of the customer, security of the proposed credit facility and market reputation of the borrower etc. SBI takes its lending decision
based on the credit risk assessment report by Appraisal Team. In determining Single Borrowing/Large Loan limit, the instructions
of Bangladesh Bank are strictly followed.
Foreign Exchange Risk is defined as the potential change in earnings arising from the change in market prices. The market directly
affects each country‟s bond, equities, private property, manufacturing and all assets that are available to foreign investors. Foreign
exchange rates also play a major role in determining whom finances government deficits, which buy equities in companies and
literally affects and influences the economic scenario. Due to high risk market the role of treasury operations is crucial.
As per Bangladesh Bank‟s guidelines the bank has segregated the Front and Back office for Treasury Operations. Front Office
independently conducts the transactions and the Back Office is responsible for verification of the deals and passing of their entries
in books of accounts. All Nostro accounts are reconciled on monthly basis and all foreign exchange transactions are revalued at
Marked-to-Market rate as determined by Bangladesh Bank.
47
d) Prevention of Money Laundering
e) Internal Control and Compliance
a)
b)
c)
f) Information technology
As approved by the appropriate authority, the establishment of our own ATM Network with 6 ATM Booths across the country.
We have already participated in the National Payment Switch as Pilot Bank under supervision of Bangladesh Bank and inaugurated
our ATM Debit Card. We have obtained Principal Membership Visa Card. Our ATM card is acceptable in all the VISA ATm Booth
and we have not charged any transaction cost if the card is use in other Bank's ATM Booth.
It is a policy of the Bank to put all branches of the Bank under any form of audit four times in a year and IC & CD has been
working in that direction. All the activities of the Internal Control & Compliance Division are devoted to address and mitigate
operational risks of the Bank in more effective way to ensure efficiency and effectiveness of performance, ensure reliability and
completeness of financial and management information and to ensure compliance with legal and regularity requirements.
State Bank of India, Bangladesh Operation follows the guideline stated in BRPD Circular No. 14 dated 23 October 2005 regarding
"Guideline on Information and Communication Technology for Scheduled Banks" and BRPD Circular No. 21 dated 20 May 2010
"Guideline on ICT Security:
IT management deals with IT policy documentation, internal IT audit, training and insurance.
IT operation management covers the dynamics of technology operation management including change management, asset
In order to ensure that information assets are protected against risk, there are controls over:
We have launched our Internet Banking System using our in-house developed software and we are extending this services to the
customers of our all Online Branches.
Audit & Inspection unit;
Monitoring Unit and
Compliance Unit.
The units have been functioning independently and separately with direct reporting lines to the Head of IC & CD.
In addition, Departmental Control Function Checklist has been introduced in the branches and divisions at Head Office under
direct supervision of Monitoring Unit of IC&CD which ensures compliance with regulatory rules and regulations as well as general
banking norms and procedures.
Policy guidelines on RISK BASED INTERNAL AUDIT (RBIA) system have been formulated and the branches have already been
brought under RBIA networks. As per RBIA, marks have been allocated for rating of the branches in terms of business risk and
control risk. The branches scoring higher are being subjected to more frequent audits.
Money laundering has been identified as a major threat to the financial services community, It is important that the management of
Banks and other Financial Institutions view prevention of money laundering as part of their risk management strategies and not
simply as a stand-alone requirement that is being imposed by the legislation. The management of SBI is fully aware that the financial
system shall not be and cannot be used as a channel for criminal activities. Therefore, co-ordination and co-operation between the
concerned parties are essential for its success. The band has designated Chief Anti Money Laundering Compliance Officer
(CAMLCO) at Head Office and compliance officers at branches to review the transactions of the accounts to identify suspicious
transaction Profile (TP) has been incorporated in the Account Opening Form (AOF) along with other KYC related issues.
As per the guidelines; Account Opening Form of our Bank has been redesigned with provision for obtaining particulars of personal
identity of customer and transaction profile. The bank has also undertaken enhanced due diligence in case of opening of accounts
of Politically Exposed Persons(PEP) as per directive of Bangladesh Bank which is in line with recommendation of Financial Action
Task Force of U.N. Anti Money Laundering units have been set up in all the branches under a central unit at Head Office. Basic
training has been imparted to all the officers of the Bank on compliance with rules and regulations of Money Laundering Act so as
to prevent opening of suspicious accounts and identify suspicious transactions.
Internal Control and Compliance (ICC) is a critical component of Bank management and foundation for the safe and sound
operation of banking organization. A system of strong internal control and compliance can help to ensure that the goals and
objectives of a banking organization will be met, that the bank will achieve long-term profitability targets, and maintain reliable
financial and managerial reporting. Operational loss may arise from error and fraud due to lack of strong internal control and
compliance culture. Effective Internal Control & Compliance system can help to ensure that the bank will comply with laws and
regulations as well policies, plans, internal rules and procedures, and decrease the risk of unexpected losses or damage to the bank‟s
reputation.
Internal Control & Compliance Division of the Bank under direct supervision of Audit Committee of the Board has been
implementing detail guidelines on ICC risk management to assess and mitigate risks and as part of it the IC & CD has been divided
into three (3) independent units; namely:-
48
2.14 Disclosure on fraud and forgeries committed by bank employees:
2.15 Off-balance sheet items
2.16 Offsetting
2.17 Interest paid and other expenses
2.18 Reporting period
2.19 Number of employees
2.20 Provision for liability
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right
to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability substantially.
In terms of the provisions of BAS 1 “Presentation of Financial Statements” interest and other expenses are recognized on accrual basis.
These financial statements cover one calendar year from 01 January 2016 to 31 December 2016.
The number of employees employed in the Bank as on 31 December 2016 was 111, of which 92 were male and 19 were female. The
number of employees per branch was 18.20 excluding 20 employees in the Country office of the Bank.
A provision is recognized in the balance sheet when the Bank has a legal or constructive obligation as a result of a past event and it is
probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the BAS 37 “Provisions,
Contingent Liabilities and Contingent Assets”.
We have successfully implemented Bangladesh Automated Clearing House (BACH) and Bangladesh Electronic Fund Transfer
System (BEFTN), Credit Information Bureau (CIB) Reporting as per guidelines of Bangladesh Bank.
We have established our website www.sbibd.com where form the visitors can get information about our products, charge schedule,
career opportunities, procurement notices and present status of our bank. The website is updated periodically and also as and when
required. Communication through email among our Branches, Country Office and different Divisions of Country Office under our
own Mail Server at IT Division, Country Office has become quick and easier.
To ensure proper training to our officials, Information Technology Division arranged need based hands on training program at our
Computer Lab daily in addition to training/workshop arranged at Country Office Conference Roam through Video Conference
throughout the year. During the year 2016, we conducted 15 training programs at our Computer Lab on 7 (seven) different
Topics/Modules covering 42 participants and 2 (two) Workshop on General Banking Practices and related IT Operations through
Video Conference covering 24 participants from Branches/Country Offices across the country.
No fraud occurred during the period
Under general banking transactions, liabilities against acceptance, endorsement and other obligations and bills against which acceptances
have been given and claims exist there against, have been shown as off-balance sheet items.
49
2.21 Events after reporting period
2.22 BASEL III implementation
I.
II.
III.
2.23 Training
2.24 Audit committee
-
-
-
-
-
-
2.25
Sl.
No.
Long Term Short Term
1 AA AR-2
2 AA- AR-2
3 AA- ST-2
4 AA+ ST-2
5 AA ST-2
Member
Basic indicator approach for operational risk.
The Committee has suggested for continuous training of the officers and employees of the banks for capacity building and
formation of an implementation team. Implementation team would remain responsible for overall supervision of BASEL III
implementation in their banks. It has also suggested that the board of directors should also remain updated on the issue.
Accordingly, the Bank has formed BASEL III implementation team and is providing training to senior management, credit
officers and managers of the Bank. BASEL III implementation team has been regularly monitoring and to give various
suggestion/instruction regarding implementation of the above three pillars.
Jan to Dec 2012 CRISL
Jan to Dec 2011 CRISL
Year Rating Agencies
Jan to Dec 2014 ALPHA
Jan to Dec 2013 ALPHA
Review the status of the Special Mentioned Account (SMA) and Bad/Loss loan.
Reviewing the Anti money laundering policy of the Bank.
Credit Rating of the Bank
Credit rating of the Bank of last four years are shown below-
Jan to Dec 2015 ALPHA
During the year, the Audit Committee of the Board conducted 6 (Six) meetings in which among others, the following issues
were discussed:
Facts
Discuss the Comprehensive Inspection report of Bangladesh Bank of Bangladesh Operations.
Discuss the audit report of different Country Office departments and Branches conducted by the Bank's internal audit team from
time to time.
Discuss the fraud/forgeries & operational loss report.
Review the position of reconciliation with other bank and Nostro Account.
D.P.Das VP Member B.Com
Mohammad Masudul Amin SAVP(R&C) Member MBA (Finance), MBM, DAIBB
Protim Kumer Mallick FAVP(IT) Member CSE, MBA(MIS), LLB, JAIBB,LLM
Md. Maksudur Rahman FAVP(A&T) Member M.COM, MBA (Finance), MBM
Milon Kumar Mitra AM (IA)
Satwinder Singh HRMD Chairman M.A, CAIIB, Diploma in Business
An audit committee was constituted by the Senior Management of State Bank of India, Bangladesh Operation. Subsequently, one of the
member has retried from the bank on 31st December 2016 and reconstituted the Audit Committee is under process the earlier comittee is
as under:
Name Status in the
BankStatus in the committee
Educational
Qualification
In implementation of the human resources development strategy, the Bank sent its employees to different training organizations to build
up professionals with technical, human and conceptual skills. This is focused to ensure a formal platform where employees can exchange
their ideas, update their knowledge base, open up their eyes to the complexities of banking world.
During the year 2016, the training institute of the Bank has arranged a total of 38 training courses, seminars and workshops mostly
conducted by the internal resource persons with 182 participants. The objectives of designing all training programmes are to bridge the
gap between present level of competence and the required level of competence.
In terms of provision of BAS 10 "Events after Reporting period "no material events have occurred after balance sheet date which could
affect the values reported in the financial statements, except declaration of dividend, if any.
The BASEL Committee on Banking Supervision has published a new framework for calculating minimum capital requirement, known as
„Basel III‟. The new guideline is structured around three pillars: (i) minimum capital requirement (on credit risk, market risk and operation
risk), (ii) supervisory review process and (iii) market discipline. Implementation of Basel III framework in Bangladesh will integrate the risk
management process of the Bank and its capital adequacy requirement. Bangladesh Bank has formed a Committee and Coordination
Committee for implementation of BASEL III in Bangladesh. As per the Committee decision BASEL III has been fully implemented in
Bangladesh. The Committee has indicated that following methodology of BASEL III would be followed in Bangladesh:
Standardized method for credit and market risk.
50
2.26
2.27
2.28
2.29 Statement of compliance
i) Investment in shares and securities
ii) Revaluation gains/losses on Government securities
iii) Provision on loans and advances/investments
iv) Recognition of interest in suspense
BFRS: As per requirement of BAS 39 where securities will fall under the category of Held for Trading (HFT), any change in the
fair value of held for trading assets is recognised through profit and loss account. Securities designated as Held to Maturity (HTM)
are measured at amortised cost method and interest income is recognised through the profit and loss account.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains on revaluation of
securities which have not matured as at the balance sheet date are recognised in other reserves as a part of equity and any losses on
revaluation of securities which have not matured as at the balance sheet date are charged in the profit and loss account. Interest on
HFT securities including amortisation of discount are recognised in the profit and loss account. HTM securities which have not
matured as at the balance sheet date are amortised at the year end and gains or losses on amortisation are recognised in other
reserve as a part of equity.
BFRS: As per BAS 39 an entity should start the impairment assessment by considering whether objective evidence of impairment
exists for financial assets that are individually significant. For financial assets that are not individually significant, the assessment can
be performed on an individual or collective (portfolio) basis.
Bangladesh Bank: As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012) and BRPD
circular No. 05 (29 May 2013) a general provision at 0.25% to 5% under different categories of unclassified loans (good/standard
loans) has to be maintained regardless of objective evidence of impairment. Also provision for sub-standard loans, doubtful loans
and bad losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the duration of
overdue. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012, a
general provision at 1% is required to be provided for all off-balance sheet exposures. Such provision policies are not specifically in
line with those prescribed by BAS 39.
BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per BAS 39 and interest income is
recognised through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is recognised
in profit and loss account on the same basis based on revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans are not
allowed to be recognised as income, rather the corresponding amount needs to be credited to an interest in suspense account,
which is presented as liability in the balance sheet.
Figures relating to the previous year included in this report have been rearranged, wherever considered necessary, to make them
comparable with those of the current year for the purpose of comparison with current year's presentation, without any impact on.
Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.
These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith.
The financial statements of the Bank are prepared in accordance with Bangladesh Financial Reporting Standards (BFRS) and the
requirements of the Bank Companies Act 1991, the rules and regulations issued by Bangladesh Bank, the Companies Act 1994, [the
Securities and Exchange Rules 1987 ]. In case any requirement of the Bank Companies Act 1991, and provisions and circulars issued by
Bangladesh Bank differ with those of BFRS, the requirements of the Bank Companies Act 1991, and provisions and circulars issued by
Bangladesh Bank shall prevail. Material departures from the requirements of BFRS are as follows:
BFRS: As per requirements of BAS 39 investment in shares and securities generally falls either under “at fair value through profit
and loss account” or under “available for sale” where any change in the fair value (as measured in accordance with BFRS 13) at the
year-end is taken to profit and loss account or revaluation reserve respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquoted shares are
revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should be made
for any loss arising from diminution in value of investment; otherwise investments are recognised at cost.
51
v) Other comprehensive income
vi) Financial instruments – presentation and disclosure
vii) Cash and cash equivalent
viii) Non-banking asset
ix) Cash flow statement
x) Balance with Bangladesh Bank: (Cash Reserve Requirement)
xi) Presentation of intangible asset
xii) Off-balance sheet items
xiii) Loans and advances/Investments net of provision
Bangladesh Bank: There is no regulation for intangible assets in BRPD 14.
BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for disclosure of off-balance
sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must be disclosed
separately on the face of the balance sheet.
BFRS: Loans and advances/Investments should be presented net of provision.
Bangladesh Bank: As per BRPD 14, provision on loans and advances/investments are presented separately as liability and can not
be netted off against loans and advances.
Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.
BFRS: The Cash flow statement can be prepared using either the direct method or the indirect method. The presentation is
selected to present these cash flows in a manner that is most appropriate for the business or industry. The method selected is
applied consistently.
Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect methods.
BFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per
BAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
BFRS: An intangible asset must be identified and recognised, and the disclosure must be given as per BAS 38.
BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OCI are to
be included in a single Other Comprehensive Income statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by all banks. The
templates of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income nor are the elements of
Other Comprehensive Income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank
does not prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in the statements of
changes in equity.
In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently from those
prescribed in BAS 39. As such full disclosure and presentation requirements of BFRS 7 and BAS 32 cannot be made in the financial
statements.
BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as „money at call and on short notice‟, treasury bills, Bangladesh
Bank bills and prize bond are not shown as cash and cash equivalents. Money at call and on short notice presented on the face of
the balance sheet, and treasury bills, prize bonds are shown in investments.
BFRS: No indication of Non-banking asset is found in any BFRS.
52
2.30
Sl. Reference Status
1 BAS 1 Complied
2 BAS 2 Not Applicable
3 BAS 7 Complied
4 BAS 8 Complied
5 BAS 10 Complied
6 BAS 11 Not Applicable
7 BAS 12 Complied
8 BAS 16 Complied
9 BAS 17 Not Applicable
10 BAS 18 Complied
11 BAS 19 Complied
12 BAS 20 Not Applicable
13 BAS 21 Partially Complied
14 BAS 23 Complied
15 BAS 24 Complied
16 BAS 26 Applicable
17 BAS 27 Applicable
18 BAS 28 Not Applicable
19 BAS 29 Not Applicable
20 BAS 32 Complied
21 BAS 33 Not Applicable
22 BAS 34 Not Applicable
23 BAS 36 Complied
24 BAS 37 Complied
25 BAS 38 Not Applicable
26 BAS 39 Complied
27 BAS 40 Not Applicable
28 BAS 41 Not Applicable
Sl. Reference Status
1 BFRS 1 Not Applicable
2 BFRS 2 Not Applicable
3 BFRS 3 Not Applicable
4 BFRS 4 Not Applicable
5 BFRS 5 Not Applicable
6 BFRS 6 Not Applicable
7 BFRS 7 Partially Complied
8 BFRS 8 Not Applicable
9 BFRS 10 Partially Complied
10 BFRS 11 Not Applicable
11 BFRS 12 Not Applicable
12 BFRS 13 Partially Complied
2.31
2.31.1 Claim not acknowledged as debt
2.31.2 Number of employees
2.31.3 Post balance sheet events
There was no significant post balance sheet events occurred.
2.31.4 Coverage of external audit
Fair Value Measurement
General disclosure
There was no claim against the bank not acknowledged as debt as on 31 December 2016.
The number of Employees including contractual engaged for the whole year or part there of who received a total yearly remuneration of
Tk.36,000 or above were 111 ( 2015:112).
The external auditor of the Bank, M/s HOWLADAR YUNUS & CO. Chartered Accountants worked about in excess of 1,128 man
hour at Country Office, 5 Branches and 2 Off-shore Banking Units. During their audit, above 80% of the Bank's risk weighted assets were
reviewed as on the Balance Sheet date.
Financial Instruments: Disclosures
Operating Segments
Consolidated Financial Statements
Joint Arrangements
Disclosure of Interests in Other Entities
First-time Adoption of International Financial Reporting Standards
Share-based Payment
Business Combinations
Insurance Contracts
Non-current Assets Held for Sale and Discontinued Operations
Exploration for and Evaluation of Mineral Resources
Provisions, Contingent Liabilities and Contingent Assets
Intangible Assets
Financial Instruments: Recognition and Measurement
Investment Property
Agriculture
Bangladesh Financial Reporting Standard (BFRS)
Investments in Associates and Joint Ventures
Financial Reporting in Hyperinflationary Economies
Financial Instruments: Presentation
Earnings per Share
Interim Financial Reporting
Impairment of Assets
Accounting for Government Grants and Disclosure of Government
Assistance
The Effects of Changes in Foreign Exchange Rates
Borrowing Costs
Related Party Disclosures
Accounting and Reporting by Retirement Benefit Plans
Separate Financial Statements
Construction Contracts
Income Taxes
Property, Plant and Equipment
Leases
Revenue
Employee Benefits
Bangladesh Accounting Standards (BASs)
Presentation of Financial Statements
Inventories
Statement of Cash Flows
Accounting Policies, Changes in Accounting Estimates and Errors
Events after the Reporting Period
Compliance Status with BFRS and BAS
53
2016 2015
3 Cash
Cash in hand
Local currency 26,068,567 27,881,741
Foreign currency 2,760,220 3,948,287
ATM cash balance 2,073,300 2,048,200
30,902,087 33,878,228
Balance with Bangladesh bank and its agent bank(s)
Local currency 1,687,111,662 478,163,869
Foreign currency 643,487,912 25,258,604
2,330,599,574 503,422,473
Sonali Bank as agent of Bangladesh Bank (local currency) - -
2,361,501,660 537,300,701
3.1 a. Local currency
Lien with Bangladesh Bank - -
Free Balance with Bangladesh Bank 1,687,111,662 478,163,869
1,687,111,662 478,163,869
b. Foreign Currency
Lien with Bangladesh Bank - -
Free Balance with Bangladesh Bank 643,487,912 25,258,604
643,487,912 25,258,604
3.2 Statutory deposits
3.2.1 Cash Reserve Requirement (CRR)
i. Daily Bank's CRR maintenance
Required reserve (6% of total time & demand liabilities) 437,060,210 420,714,516
Actual reserve maintained 1,681,461,000 465,391,000
Surplus/ (deficit) 1,244,400,790 44,676,484
Maintained(%) 23.98% 6.64%
ii. Bi- Weekly bank's CRR maintenance
Required reserve (6.50% of total time & demand liabilities) 473,481,894 455,774,059
Actual reserve maintained 1,681,461,000 465,391,000
Surplus/ (deficit) 1,207,979,106 9,616,941
Maintained(%) 23.98% 6.64%
3.2.2 Statutory Liquidity Reserve (SLR)
Required reserve (13% of total time & demand liabilities) 946,963,788 911,664,000
Actual reserve maintained 9,178,898,830 8,248,360,950
Surplus/ (Deficit) 8,231,935,042 7,336,696,950
Maintained(%) 130.89% 117.6%
4
Inside Bangladesh (Note: 4.1 ) 11,811,434 28,755,594
Outside Bangladesh (Details are shown in annexure A) (Note: 4.2 ) 337,920,697 190,533,458
349,732,131 219,289,052
4.1
On demand deposit accounts ( Current cccount )
Uttara Bank 2,100,651 7,843,058
Sonali Bank 69,972 69,972
Pubali Bank 1,278,359.30 11,207
3,448,982 7,924,237
Amount in Taka
(Note: 3.1 )
Balance with other banks and financial institutions ( Inside Bangladesh )
The Cash Reserve Requirement (CRR) and the Statutory Liquidity Requirement (SLR) are maintained as per BRPD Circular No. 11 & 12 dated 25
August 2005, MPD circular No. 01 dated 23 June 2014 & MPD circular no. 02 dated 10 December 2013. Cash Reserve Requirement (CRR) and the
Statutory Liquidity Requirement (SLR) and deposits there against with Bangladesh Bank at 31 December 2016 are as follows:
Balance with other banks and financial institutions
54
2016 2015
Amount in Taka
On Short Term Deposit (STD) Accounts
Uttara Bank 6,049,000 9,559,303
Standard Chartered Bank-ATM Visa Domestic Settlement A/C 2,313,452 11,272,054
8,362,452 20,831,357
11,811,434 28,755,594
4.2
State Bank of India, West Germany(FF) 18,373,551 67,221,821
State Bank of India, London 1,055,926 733,534
State Bank of India, New York 136,367,986 24,860,865
State Bank of India, Japan 276,431 175,400
156,073,894 92,991,620
Standard Chartered Bank, Karachi Branch - -
Deutsche Bank, Mumbai - -
JP Morgan Chase Bank 139,488,934 67,701,901
ACU Dollar Nostro a/c 37,343,212 12,471,479
Wachovia Bank - -
Bank of America 2,608,551 8,542,418
Deutsche Bank Trust Company, New York 2,406,107 8,826,040
181,846,803 97,541,838
337,920,697 190,533,458
4.3 Foreign currency wise break-up
US Dollar 4,039,540 78.7750 318,214,789 122,402,704
Great Britain Pound 10,941 96.5131 1,055,926 733,534
EURO 223,205 82.3170 18,373,551 67,221,821
Japanese Yen 407,835 0.6778 276,431 175,400
337,920,697 190,533,458
5
Banking company
Jamuna Bank Limited 150,000,000 -
Dhaka Bank Limited - 350,000,000
Commercial Bank of Ceylon 60,000,000 -
Bank Asia Limited - 150,000,000
Mercantile Bank Limited 140,000,000 -
Brac Bank Limited 280,000,000 370,000,000
NCC Bank Limited 380,000,000 370,000,000
The City Bank Limited 370,000,000 370,000,000
Trust Bank Limited - 200,000,000
1,380,000,000 1,810,000,000
5.1 Maturity grouping of money at call and short notice
Up to 1 month 1,380,000,000 1,810,000,000
More than 1 month to 3 month - -
More than 3 month to 1 Year - -
More than 1 year to 5 years - -
More than 5 years - -
1,380,000,000 1,810,000,000
6
Government Securities 7,946,480,102 8,292,387,541
Other Investments 3,138,890 3,138,890
7,949,618,992 8,295,526,431
Off-shore Banking Unit - -
7,949,618,992 8,295,526,431
Investment in securities are classified as follows:
Held for trading - -
Held to maturity 7,946,422,302 8,292,387,541
Other Investments 3,138,890 3,138,890
7,949,561,192 8,295,526,431
Money at call and short notice
(Note: 6.1)
(Note: 6.2)
On demand deposit accounts ( Non interest bearing)
Balance with other banks and financial institutions ( Outside Bangladesh)
On demand deposit accounts ( Interest bearing)
Currency name Amount in FC
Investments
Conversion Rate
55
2016 2015
Amount in Taka
6.1
Treasury bill
30 day Treasury bills 1,306,810,150 2,024,452,570.00
91 day Treasury bills 349,938,902 1,376,871,362
182 day Treasury bills 737,309,920 199,866,747
364 day treasury bills 2,094,896,033 1,694,811,638
4,488,955,005 5,296,002,317
Treasury bond
2 year Treasury Bonds 767,306,334 3,500,149
5 year Treasury Bonds 212,365,636 516,778,322
10 year Treasury Bonds 1,148,041,541 1,502,675,099
15 year Treasury Bonds 418,555,423 614,427,509
20 year Treasury Bonds 911,198,362 358,089,844
3,457,467,297 2,995,470,924
Prize bonds 57,800 914,300
7,946,480,102 8,292,387,541
6.2 Other investments : Shares of Central Depository Bangladesh Limited (CDBL)
Quoted - -
Unquoted 3,138,890 3,138,890
3,138,890 3,138,890
Initial investment @ Tk.10 200,000 2,000,000 2,000,000
Purchase of Right share @ Tk.10 113,889 1,138,890 1,138,890
Bonus share @ Tk.10 828,472 - -
1,142,361 3,138,890 3,138,890
6.3
Payable on demand 57,800 914,300
Below three months 1,656,749,052 3,401,323,932
2,832,205,953 1,894,678,385
Over one year but below five years 979,671,970 520,278,471
Over five years 2,477,795,326 2,475,192,453
7,946,480,102 8,292,387,541
7
a. Loans, Cash Credits, Overdrafts etc.:
Overdrafts 635,887,914 664,427,598
Demand loans 708,345 661,560
- 1,000,000,000
Cash credit 1,550,943,809 1,569,206,923
House building loan 77,644,360 107,840,199
Transport loan 124,004,746 856,524,409
Term loans (Other) 585,873,492 73,769,963
Loan against trust receipts 46,645,604 -
Agricultural loan 101,836,065 100,000,000
Staff loans (Note - 7.6) 52,390,195 31,648,000
3,175,934,530 4,404,078,651
b. Bills purchase & discount (Note - 7.15) 1,723,815 5,373,762
Total: (a+b) 3,177,658,345 4,409,452,413
7.1 Net loans and advances
Gross loans and advances 3,177,658,345 4,409,452,413
Less:
Interest suspense 34,583,544 41,841,539
Provision for loans & advances 569,214,378 672,112,981
603,797,922 713,954,520
2,573,860,423 3,695,497,893
Over three months but below one year
Loans and advances
Government securities
No of SharesParticulars
Maturity wise grouping of investment (Other than CDBL Shares)
Treasury bills and treasury bonds amounting Tk.691.50 crore has been pledged with Bangladesh Bank for Capital Purpose. Details of investments are
given in Annexure- F)
Telecommunication
56
2016 2015
Amount in Taka
7.2
Repayable on demand 239,773,280 332,719,492
715,405,782 992,727,162
593,670,848 823,802,646
728,847,578 1,011,379,564
899,960,857 1,248,823,549
3,177,658,345 4,409,452,413
7.3
828,512,506 1,038,134,570
Cash Credits 1,653,488,218 2,669,868,483
Overdrafts & Demand Loan 695,657,621 669,801,360
3,177,658,345 4,377,804,413
- -
Cash credits - -
Overdrafts - -
3,177,658,345 4,377,804,413
7.4
Dhaka Division 2,261,856,025 3,306,460,018
Chittagong Division 792,271,307 957,667,250
Sylhet Division 99,140,201 113,568,008
Khulna Division 24,390,812 24,290,659
Rajshahi Division - 7,466,478
3,177,658,345 4,409,452,413
7.5
Staff
- -
Senior Executives 8,052,687 9,494,400
Others 44,337,508 22,153,600
52,390,195 31,648,000
i) Agricultural and Jute 101,836,065 127,268,584
ii) Readymade garments 116,112,346 160,909,489
iii) Textile 12,480,994 13,015,022
iv) Food & allied 80,122,689 -
v) Chemical - -
vi) Cement 50,633,612 82,337,049
vii) Rubber, Plastic, Printing Publishing & allied Industries - 16,128,781
viii) Metal Products & Steel - -
ix) Petroleum & Coal Products - -
x) IT based - 69,916,493
xi) Other 678,276,191 1,026,669,948
1,039,461,897 1,496,245,365
Infrastructural
i) Power 3,621,009 -
ii) Construction 223,802,231 120,870,813
iii) Transport 751,602,633 856,524,409
iv) Feed - -
v) Others 272,019,154 580,752,668
1,251,045,027 1,558,147,889
i) Commercial lending 10,725,229 -
ii) Export financing - -
iii) House building loan CL 77,644,360 107,840,199
iv) Small and medium enterprise 622,833,899 745,089,136
v) Non-banking financial institutions 77,314,536 -
vi) Others 46,243,202 470,481,823
834,761,226 1,323,411,158
3,177,658,345 4,409,452,413
0
More than 5 years
Industries
* Our 5 (Five) branches are located in urban areas . However, as we have obtained approval to open new branches in Bangladesh, we shall increase our
loans and advances portfolio in rural areas of the country as well.
Inside Bangladesh
More than 1 year to 5 years
Significant concentration wise grouping
Managing Director & CEO
More than 1 months to 3 months
Maturity wise grouping of loans and advances
More than 3 months to 1 Year
Loans and advances under the following broad categories
Geographical location wise portfolio grouping
Outside Bangladesh
Term Loans
Term Loans
Inside Bangladesh
Consumers
57
2016 2015
Amount in Taka
7.6 Staff loan
Overdraft Loan (Interest Bearing) 11,707,413 12,235,318
Overdraft Loan (Interest Free) 708,345
Car and motorcycle loan 61,948 1,858,500
House building Loan 39,912,489 17,554,182
52,390,195 31,648,000
7.7
7.8
Standard including staff loan 2,594,971,562 3,832,356,004
Special Mention Account (SMA) 13,803,410 5,630,000
2,608,774,972 3,837,986,004
Classified
Sub standard 45,622,692 5,952,388
Doubtful 79,827,100 -
Bad / Loss 443,433,581 565,514,021
568,883,373 571,466,409
3,177,658,345 4,409,452,413
7.9
Overdraft 695,657,621 669,801,360
Demand Loan 708,345 661,560
Term Loan 828,512,506 1,038,134,570
Cash Credit 1,600,389,678 2,669,206,923
Staff Loan 52,390,195 31,648,000
3,177,658,345 4,409,452,413
7.10 Sector-wise allocation of loans and advances
Agriculture, fishing, forestry and dairy firm 101,836,065 127,268,584
Industry (jute, textile, garments, chemicals, cements etc.) 937,625,832 1,368,976,781
Working capital financing 1,020,632,084 1,416,272,021
Export credit - -
Commercial credit 10,725,229 -
Small and cottage industries 622,833,899 745,089,136
Miscellaneous 484,005,237 751,845,891
3,177,658,345 4,409,452,413
7.11 Securities against loans/advances including bills purchase and discount
Collateral of moveable/immoveable assets 1,972,989,000.32 2,737,802,546.54
Nonbanking financial institutions guarantee 129,273,496.78 179,385,343.07
Local banks/foreign banks guarantee 262,474,579.28 364,220,769.32
Export documents 1,723,814.67 5,373,761.62
Cash and quisi cash 130,653,234.38 181,299,925.01
Personal guarantee 307,127,280.09 426,182,735.64
Other securities 373,416,939.25 515,187,331.84
3,177,658,345 4,409,452,413
Detail of large loan
Total capital of the Bank was Taka 7182.80 million for Domestic Banking Unit as at 31 December 2016 (Taka 7754.17 million at 31 December 2015
respectively ). Number of clients with amount outstanding and classification status to whom loans and advances sanctioned exceeds 10% of the total
capital of the Bank are shown in Annexure - B.
Grouping as per classification rules
Unclassified
Loan type wise total loan
58
2016 2015
Amount in Taka
7.12
Provision required for unclassified loans and advances
Outstanding Base for provision Rate (%) Required provision
December 2016
Required provision
December 2015
1,801,445,600 1,801,445,600 1% 18,014,456 30,335,311
551,326,157 551,326,157 0.25% 1,378,315 1,396,797
77,644,360 77,644,360 2% 1,552,887 1,996,100
10,650,158 10,650,158 5% 532,508 449,314
13,803,410 13,803,410 1% 138,034 56,300
101,836,065 101,836,065 2.5% 2,545,902 2,500,000
52,069,221 52,069,221 0% - -
2,608,774,972 2,608,774,972 N/A 24,162,102 36,733,822
Provision required for off-balance sheet items (General Provision)
Outstanding Rate (%) Required provision
December 2016
Required provision
December 2015
Acceptances and endorsements - 1% - -
Letter of guarantees 19,190,088,926 1% 191,900,889 195,959,434
Irrevocable letter of credits 1,735,179,160 1% 17,351,792 10,765,860
20,925,268,087 1% 209,252,681 206,725,295
Total required provision for unclassified assets (including off-balance sheet items) 233,414,783 243,459,117
Provision maintained for unclassified assets (including off-balance sheet items) 240,406,213 243,596,507
Excess/(Short) provision at 31 December 2016 6,991,430 137,391
Provision required for classified loans & advances (Specific provision)
Outstanding Base for provision Rate Required provision
December 2016
Required provision
December 2015
Sub-standard 45,622,692 21,238,045 20% 4,247,609 178,572
Doubtful 79,827,100 43,245,357 50% 21,622,678 -
Bad/Loss 443,433,581 283,148,800 100% 283,148,800 379,830,875
568,883,373 347,632,201 N/A 309,019,087 380,009,446
3,177,658,345
- 309,019,087 380,009,446
Total provision maintained for classified assets:
Sub Standard 4,247,609 178,572
Doubtful 21,622,678 -
Bad/loss 302,937,878 428,337,901 328,808,165 428,516,473
Excess/(Short) of provision 19,789,078 48,507,027
Consumer finance
Shortterm Agriculture
Loan
Special Mentioned
Account
Staff Loan
Total
Particulars of required provision for loans and advances
Small & Medium
enterprise financing
Status
Name of Exposure
Total
Housing & loan for
professional
All unclassified loans
(Other than Small &
Medium enterprise
Financing, Consumer
Financing,
BHs/MBs/SDs, Housing
& loans for professional)
Status
Total
59
2016 2015
Amount in Taka
7.13 Particulars of loans and advances
i) 2,383,243,759 3,307,089,310
ii) 737,086,579
iii) 263,235,406 365,276,525
iv) - -
3,177,658,345 4,409,452,413
v)
vi)
vii)
viii)
ix) Due from banking companies - -
x) - -
a) - 2,489,502
428,337,901
c) 34,583,544 41,841,539
xi)
- Current year - -
- Cumulative to date - -
7.14
Dhaka Region 349,445,900 247,399,886
Chittagong Region 769,080,325 685,390,107
Sylhet Region 44,665,425 31,413,654
1,163,191,650 964,203,647
7.15
1,723,815 5,373,762
- -
1,723,815 5,373,762
7.16
Payable within 1 month - -
Over 1 month but less than 3 months - -
Over 3 months but less than 6 months - -
6 months and more 1,723,815 5,373,762
1,723,815 5,373,762
7.17
Balance at the beginning of the year 445,153,612 156,548,954
Add: Write off during the year 426,294,149 291,094,160
871,447,761 447,643,114
Less: Recovery of Write off loans - 2,489,502
871,447,761 445,153,612
7.18 Cash Incentive for Good Borrower
Maturity wise grouping of bill purchased & discounted
Interest creditable to the Interest Suspense a/c
Outside Bangladesh
Debts considered good in respect of which Bank is fully secured
Debts adversely classified; for which no provision is created
Debts considered good for which Bank holds no other security than the debtor's
personal security
Debts considered good secured by the personal undertakings of one or more parties
in addition to the personal guarantee of the debtors
531,179,180
As per Bangladesh bank circular the bank has completed the formalities. During the year December 2016 Bank has not found any borrower who has
comply the Bangladesh Bank circulars to get "Cash Incentive for good borrower" due to non-compliance the sanction terms and condition.
Write off of loans & advances
Debts due by directors or officers of the banking company or any of these either
separately or jointly with any other persons-
-
Increase/decrease of provision (specific) amount of debts written off amount
realized against loan previously written off
- -
302,937,878
Cumulative amount of the written off loan and the amount written off during the
current year should be shown separately. The amount of written off loan for which
lawsuit has been field should also be mentioned
Maximum total amount of advances, including temporary advances granted during the
year to the companies or firms in which the directors of the banking company have
interest as directors, partners or managing agents or in case of private companies, as
members
Debts due by companies or firms in which the directors or officers of the bank are
interested as directors, partners or managing agents or in case of private companies as
members
Maximum total amount of advances, including temporary advances made at any time
during the year to directors or managers or officers of the banking companies or any
of them either separately or jointly with any other person
- -
- -
-
Bill Purchased & discounted under the following
-
Amount of provision kept against loan classified as "bad/loss" on the date of
preparing the balance sheet
Amount of Classified loans on which interest has not been charged should be
mentioned as follows:
Inside Bangladesh
b)
Suit filled by the bank (branch wise)
The amount of written off loans for which law suit filed
60
2016 2015
Amount in Taka
8
A. Cost
Opening balance 201,291,720 174,558,316
Add: Addition during the year 20,127,679 32,415,431
221,419,399 206,973,747
Less: Disposal/adjustment during the year 1,102,984 5,682,027
220,316,415 201,291,720
B. Accumulated Depreciation
Opening balance 117,059,733 102,631,576
Add: Charged during the year 17,765,721 18,446,427
134,825,453 121,078,003
Less: Disposal/adjustment during the year 596,942 4,018,270
134,228,511 117,059,733
Written down value (A-B) 86,087,904 84,231,987
(Details are given in Annexure- C)
9
Interest receivable on treasury bond 108,917,749 119,459,995
Dividend receivable From CDBL 2,855,903 2,855,903
Interest receivable on Inter Bank Call Money 1,502,398 1,235,995
113,276,051 123,551,892
Stationery, stamps, printing materials etc. 1,406,319 1,961,110
Advance rent and advertisement 21,304,105 39,579,286
Memento Coin 52,500 154,000
Deferred Expenses - -
Excise duty 395,340 1,978,209
Inter Branch lending (FC) 630,200,000 368,877,836
Advance Payment of Income Tax 256,440,866 260,000,000
ISO Reconciliation 382,881 -
Receivables from OBU - -
910,182,010 672,550,441
1,023,458,061 796,102,333
10 Non-banking assets
11 Borrowings from other banks, financial institutions & agents - -
12
Local currency
Current & other accounts 2,035,423,626 1,506,590,646
Bills payable 32,474,493 24,428,492
Saving deposits 495,485,884 464,115,751
Fixed deposits 3,372,359,542 3,815,822,651
Short term deposit 949,998,088 639,525,461
Other deposits 8,339,718 12,750,851
6,894,081,351 6,463,233,852
Foreign currency
Current & other accounts 389,949,036 172,036,523
Other deposits 648,120,503 362,934,831
1,038,069,540 534,971,353
7,932,150,891 6,998,205,206
No-non-banking assets is under the possession of the bank which acquired as claims. State Bank of India, Bangladesh Operation was not acquired any
such assets as on 31 December 2016.
Deposit and other accounts
Non-income generating other assets
Income generating other assets
Fixed assets including premises, furniture and fixtures
Other assets
Bank's actual interest receivable in investments is Tk. 150,432,099 in 2016 and Tk. 198,725,821 in 2015 but as per practice of SBI revaluation amount is
included in interest receivable. At the end of year the bank passed reversal entry between interest income receivables and increase Investment value. As
such,we have netted off amounting taka 40,011,951.31 from interest receivables and increase the investment amount to comply B.Bank instruction.
Domestic Banking Unit place surplus Dollar fund amounting to Tk. 630,200,000.00 in the year 2016 and 368,877,836.00 Tk. in the year 2015 without
borrowed the fund from abroad to fulfill the requirement of OBU and to reduce borrowing cost which may incurred if it would be borrowed from
abroad. DBU has not charged any interest as per the management deceision. Offshore Banking Unit(OBU) shows the figure as borrowing from Dhaka
Branch in note 9.1.
61
2016 2015
Amount in Taka
12.1 Deposit details concentrating liquidity nature
i) Demand deposit
Current deposit 2,035,423,626 1,506,590,646
Saving deposit (9%) 44,593,730 46,411,575
Foreign currency deposit 389,949,036 172,036,523
Short term deposit 317,473,920 216,286,130
Other demand deposit-local currency 8,339,718 12,750,851
Other demand deposit-foreign currency 648,120,503 362,934,831
3,443,900,533 2,317,010,556
ii) Time deposit
Saving deposit (91%) 450,892,154 417,704,176
Fixed deposit 3,372,359,542 3,815,822,651
Foreign currency deposit - -
Short term deposit 664,998,662 447,667,823
4,488,250,357 4,681,194,650
7,932,150,891 6,998,205,206
12.2 Maturity wise grouping of deposits
Payable on demand - -
Payable within 1 month 2,344,743,803 2,068,669,459
Over 1 month but within 3 months 1,448,410,753 1,277,872,271
Over 3 month but within 1 year 776,478,251 685,054,308
Over 1 year but within 5 years 1,077,979,306 951,056,087
Over 5 years 2,284,538,778 2,015,553,081
7,932,150,891 6,998,205,206
13
Foreign Currency claims received accounts - -
Fixed Deposit interest account 49,347,323 66,057,758
Provision on loans and advances (Note-13.1) 569,214,378 672,112,981
Interest Suspense's Account (Note-13.3) 34,583,544 41,841,539
Withhoding tax payable (payable on interest) (Note-13.4) 15,393 -
Provision for current taxation (Note-13.5) 501,396,271 517,482,674
Provision for deferred tax (Note-13.6) (5,293,975) (7,762,116)
Inter branch adjustment account 44,163 1,204,151
Excise Duty Payable Account 821,950 -
Short Term Deposit Interest Account 2,766,374
Provision for Interest Rebate on Good Borrowers -
Provision for gratuity - -
Provision for audit fees 345,000 388,125
Interest Payable on Call Money -
Other Provision 17,323,376 27,407,049
1,167,797,423 1,321,498,535
- 12
- -
- -
- -
- -
13.1
a. General (13.2)
Balance at the beginning of the year 243,596,507 205,069,855
Add: Provision made during the year (3,190,295) 38,526,652
240,406,213 243,596,507 -
b. Specific
Balance at the beginning of the year 428,516,473 646,773,046
Add: Provision made during the year 292,882,351 22,048,839
Less: Recoveries and provision no longer required - -
Less: Write off during the year 392,590,660 240,305,412
- 328,808,165 428,516,473
Net actual provision at the end of year (a+b) 569,214,378 672,112,981 328,808,165
Other liabilities
Provision for loans and advances
Provision for loans and advances is created for covering the bank for possible loan losses in the future. General provision is made on outstanding loans
and advances without considering the quality of loans and advances according to the prescribed rate of Bangladesh Bank. Classified loans and advances
of the banks are categorized as sub-standard, doubtful and bad/loss as per guidelines of the Bangladesh Bank. Provisions are made for NPAs as per the
extant guidelines prescribed by Bangladesh Bank and RBI guideline which one is more stringent.
This represents outstanding inter-branch and head office transactions (net) which are originated but not responded by the counter transaction at the
balance sheet date. The unresponded entries of 31 December 2016 are given below:
Particulars
Amount of
unresponded
entries (Taka)
More than 6 months but within 1 year -
More than 1 year but within 5 years
Up to 3 months 44,163
More than 3 months but within 6 months -
-
Above 5 years -
Number of
unresponded
entries (Credit)
Number of
unresponded
entries (Debit)
Amount of
unresponded
entries (Taka)
-
-
-
-
-
62
2016 2015
Amount in Taka
13.2 General Provisions for UC Loans & Advance and off balance sheet items
a.
Balance at the beginning of the year 36,871,212 30,739,281
Add: Provision made/ (adjusted) during the year (5,717,681) 6,131,931
Sub-total 31,153,532 36,871,212
b.
Balance at the beginning of the year 206,725,295 174,330,574
Add: Provision made/ (adjusted) during the year 2,527,386 32,394,721
Sub-total 209,252,681 206,725,295
Total General Provision (a+b) 240,406,212 243,596,507
13.3 240,406,213 (0)
0
Balance at the beginning of the year 41,841,539 98,673,668
Add: Amount transferred during the year 32,096,303 -
73,937,842 98,673,668
Less: Amount of interest suspense recovered 5,650,809 6,043,381
Less: Write off during the year 33,703,489 50,788,748
Less: Interest waiver during the year - -
34,583,544 41,841,539
13.4
Balance at the beginning of the year - 1,196,245
Add: Addition during the year 44,780,733 51,708,649
44,780,733 52,904,893
Less: paid during the year 44,765,341 52,904,893
15,393 -
13.5 Provision for current taxation
Balance at the beginning of the year 517,482,673 98,813,102
Add: Provision made during the year 440,000,000 385,000,000
957,482,673 483,813,102
Less: Adjustment of tax provision for previous years - (62,424,557)
Less: Adjustment with adv tax 456,086,402 28,754,986
- -
Details are in Annexure-D 501,396,271 517,482,673
13.6 Deferred tax liability/ (Asset)
Opening balance (7,762,117) (8,946,097)
Add: Deffered Tax Expense/ (Income) during the year 2,468,142 1,183,981
(5,293,975) (7,762,117)
14
Securities lien with Bangladesh Bank 7,213,626,369 6,462,789,044
Transferred to IBG (Head Office) / Released from Capital (1,176,000,000) (316,378,395)
Funf Transferred from Surplus Profit & Loss Account 877,471,009 1,067,215,719
6,915,097,378 7,213,626,368
Bank has submitted Income Tax Return U/S 82 BB for the financial year 2014 to LTU on 14.07.2016. On 20.07.2016 tax authority asked for
explanation by claiming amounting to Tk. 5,92,66,885 within 27.07.2016. Bank has already given their explanation on 26.07.2016 vide letter no.
10/CO/IT/2138.
SBI maintained capital in the form of deposit and lien of securities with Bangladesh Bank under section 13(3) of the Bank Company Act, 1991 and
presented under the guidelines of BRPD circular No. 14 dated 25 June 2003. Details of securities lien with Bangladesh Bank is shown in Annexure-F.
Fund deposited with Bangladesh Bank
Provision for Income Tax has been made according to the Income Tax Ordinance, 1984. During the year, an amount of Tk.38,50,00,000 has been
provided for current Income Tax.
Deferred tax is provided using the liability method for timing differences arising between the tax base of assets and liabilities and their carrying values
for reporting purposes as per Bangladesh Accounting Standard (BAS) - 12.
General Provision for Loans & Advance
General Provision for Off Balance Sheet Exposure
Withholding tax payable
Provision for off-balance sheet items is made as per BRPD circular No. 8 of 7 August 2007 and 18 September 2007 for covering the bank for possible
losses on off-balance sheet items in the future. Provision amount is included in the General Provision for standard assets. Details movement of
provision for Off-balance sheet items is as follows:
Interest suspense
Classified loans and advances of the banks are categorised as sub-standard, doubtful and bad/loss as per guidelines of the Bangladesh Bank. Interest
accrued on Sub-Standard (SS), doubtful and bad/loss loans is recorded as 'interest suspense' and not taken to income. This interest is recognized as
income as and when it is realized in cash by the bank.
63
2016 2015
Amount in Taka
14.1 Capital adequacy as per Basel - III
1. Tier-1 (Core capital) 7,188,096,829 7,631,095,167
2. Tier-2 (Supplementary capital) 260,412,188 321,138,075
7,448,509,017 7,952,233,242
14,735,382,200 10,576,628,590
50.55% 75.19%
D. Common EquityTier I i.e. @ 4.5% 48.78% 72.15%
48.78% 72.15%
F. Minimum Capital Requirement (MCR)
10 % of RWA 1,473,538,220 1,057,662,859
As per The Bank Company Act, 1991 4,000,000,000 4,000,000,000
Minimum Capital Required (higher one of above) 4,000,000,000 4,000,000,000
G. Surplus equity (A-F) 3,448,509,017 3,952,233,242
14.1.1 Tier - I (Core Capital)
6,915,097,378 7,213,626,369
272,999,451 417,468,797
Statutory reserve - -
- -
General reserve - -
Retained Earnings
Minority interest in subsidiaries - -
Share money deposit - -
- -
Dividend equalization accounts - -
Sub-total 7,188,096,829 7,631,095,167
Book value of Goodwill - -
- -
- -
- -
5,717,681 7,762,117
Investment in subsidiary - -
Other if any
Sub-total - -
Total eligible Tier - 1 Capital (a) 7,188,096,829 7,631,095,167
14.1.2 Tier - II (Supplementary Capital)
General Provision 240,406,213 282,123,160
Asset revaluation reserve 20,005,976 39,014,915
Preference Share - -
Perpetual Subordinated debt - -
Exchange Equalization Fund - -
Total eligible Tier - 2 Capital (b) 260,412,188 321,138,075
Total regulatory capital (a+b) 7,448,509,017 7,952,233,242
14.2
12,056,500,897 8,478,787,463
(i) On-balance sheet 6,667,937,332 7,692,977,275
(ii) Off-balance sheet 5,388,563,566 785,810,189
2. Market Risk 578,273,307 33,770,179
3. Operational risk 2,100,607,997 2,064,070,948
14,735,382,200 10,576,628,590
Regulatory capital
3. Total regulatory Capital (1+2)
B. Total Risk Weighted Assets (RWA)
(Note 14.1.1)
(Note 14.1.2)
(Note 14.2)
SBI Bangladesh's capital structure consists of Tier I and Tier II capital which is aligned with regulatory capital structure. Tier I capital is further
categorised as Common Equity Tier 1 (CET1) and Additional Tier 1 capital. The computation of the amount of Common Equity Tier I, Additional Tier
I and Tier II capital shall be subject to the following conditions:
- The Bank has to maintain at least 4.50% of total Risk Weighted Assets (RWA) as Common Equity Tier I capital.
- Tier I capital will be at least 5.50% of the total RWA.
- Minimum Capital to Risk-weighted Asset Ratio (CRAR) will be 10% of the total RWA.
- Additional Tier I capital can be maximum up to 1.5% of the total RWA or 33.33% of CET 1, whichever is higher.
- Tier II capital can be maximum up to 4% of the total RWA or 88.89% of CET1, whichever is higher.
- In addition to minimum CRAR, Capital Conservation Buffer (CCB) @ 0.625% of the total RWA will be maintained in the form of CET1 in a phased
manner from 2016 to 2019.
E. Tier I i.e. @ 5.5%
Tier I capital of the Bank includes funds deposited with Bangladesh Bank, actuarial gain/(loss) and retained earnings. Tier 1 capital is also called „Core
Capital‟ of the Bank. According to BRPD letter ref no.BRPD (BFIS)661/14B(P)/2015-18014 dated 24 December 2015, 5% of deferred tax recognised
on specific provision shall be allowable as CET 1 capital whilst all other deferred tax assets created on other items shall be deducted from the retained
earnings when calculating the capital adequacy ratio.
Tier II capital consists of general provision and revaluation reserve for Held to Maturity (HTM) and Held for Trading (HFT) securities. General
provision for inclusion in Tier II capital is limited to a maximum 1.25% of Credit RWA calculated under the standardised approach. Revaluation reserve
for securities shown as Tier II capital as on 31 December 2014 will be nullified in a phased manner at the rate of 20% starting from 2015 and will be
fully adjusted by 2019.
C. Total (including Tier II) required is 10%
1. Investment (credit) Risk
Shortfall in provision required against classified assets irrespective of any relaxation allowed
Fund deposited with Bangladesh Bank
Any increase in equity capital resulting from a securitization transaction
Deficit on account of revaluation of investment in AFS category
Deferred tax assets
Non-repayable share premium account
Non-cumulative irredeemable preference shares
Amount deductable from CET 1 Capital ( Regulatory Adjustments)
Surplus in profit & loss accounts/Retained earnings
Risk Weighted Assets (RWA)
64
2016 2015
Amount in Taka
15 Surplus in profit and loss account/ retained earnings
Balance at the beginning of the year 540,542,977 453,304,637
Add: Net Profit for the year 327,319,684 648,810,282
Add: Net Profit received from Off-share Banking Unit (OBU) 268,129,819 443,219,220
Add: Excess Profit Received from OBU 62,424,557
Add: Excess Revaluation Reserve Transfer to Profit & Loss Account 14,477,979 -
Less Prior Year Adjustment(Deferred Tax)
877,471,009 1,067,215,719
272,999,451 540,542,977
16 Other reserve
Balance at the beginning of the year 78,029,831 42,223,747
Add: Amotization gain on HTM securities during the year 40,011,951 78,029,831
118,041,782 120,253,578
Less: Transferred to Profit & Loss Account at maturity 78,029,831 42,223,747
40,011,951 78,029,831
Off-shore Banking Unit - -
40,011,951 78,029,831
17 Contingent liabilities
Bills for collection - -
Import Letters Of Credit - Sight 1,735,179,160 1,076,586,029
Import Letters Of Credit - Usance
Import Letters Of Credit - Back to Back - -
Letter of Guarantee (Note 17.1) 19,190,088,926 19,595,943,443
20,925,268,087 20,672,529,472
17.1 Letter of guarantee
Letter of Guarantee (Local) - -
Letter of Guarantee (Foreign) 19,190,088,926.27 19,595,943,442.57
Foreign counter Guarantee - -
19,190,088,926 19,595,943,443
Less: Margin 1,153,266 103,656,684
19,188,935,660 19,492,286,758
Balance for which the Bank is contingently liable in respect of guarantee issued favoring
Directors - -
Government - -
Bank and other financial institution 19,190,088,926 19,595,943,443
Others - -
19,190,088,926 19,595,943,443
Less : Margin 1,153,266 103,656,684
19,188,935,660 19,492,286,758
17.2 Irrevocable letter of credit
Letter of Credit (Inland) 1,735,179,160 1,076,586,029
Letter of Credit (General)
Back to Back L/C - -
1,735,179,160 1,076,586,029
Less: Margin 574,479,607 402,340,557
1,160,699,554 674,245,472
17.3 Suit filed against the bank
No law suit filed against the bank for which Bank's are contingent liabilities.
Previous years figures has been re-arragned to conform the prescribed formate of Bangladesh Bank.
Bank guarantee no. 05112FG000371 dated: 06.06.2012 for USD 3.8 mio has expired on 07.03.2013 in favor Powercell. Before maturity Powercell
applied for invocking the guarantee. But Lanco Infratech Ltd (Beneficiarry) obtained stay order from Hon'ble Supreme Court untill the matter is finally
heared by the Hon'ble Court. The bank has Foreign Counter Guarantee from SBI, Kolkatta as security.
Less: Amount transferred to deposit kept with Bangladesh Bank for Capital and SLR
Purpose
65
2016 2015
18 Income statement
Income
Interest, discount and similar income (Note-18.1) 478,834,514 577,454,142
Fees, commission and brokerage (Note-18.2) 771,784,183 693,665,877
Gains less losses arising from investment securities 477,860,493 538,532,052
Income from non-banking assets - -
(Note-22) 2,296,317 1,026,391
Profit less losses on interest rate changes - -
1,730,775,508 1,810,678,463
Expenses
Interest, fees and commission (Note-19) 291,321,596 374,919,235
(Note-18.3) 199,369,154 200,406,755
162,242,211 124,091,718
(Note-28) 18,362,663 18,446,427
671,295,624 717,864,136
Operating profit 1,059,479,883 1,092,814,327
1,116,038,605
18.1 Interest, discount and similar income (56,558,722)
Interest on loans and advances (Note 18.1.1) 351,039,203 372,739,441
Interest on money at call and short notice 127,795,311 204,714,701
Interest on balance with other banks - -
Interest on treasury bills & bonds - -
Interest on fixed deposits with other banks - -
Interest on other sundry income - -
478,834,514 577,454,142
18.1.1 Interest on loans and advances
Cash Credits 167,928,371 140,253,889
Overdrafts 43,125,097 93,040,309
Demand Loan 1,276,841 12,685,005
Term Loan 138,708,894 126,760,239
351,039,203 372,739,441
18.2 Fees, commission and brokerage
Fees - -
Commission 771,784,183 693,665,877
771,784,183 693,665,877
18.3 Administrative expenses
Salaries and allowances 103,999,435 107,747,840
73,009,418 72,071,327
Legal expenses 1,461,468 2,835,445
7,805,467 4,233,627
8,899,903 8,719,552
Chief Executive's salary & fees - -
Directors' fees & expenses - -
Auditors' fee 300,000 345,000
Repairs & maintenance of fixed assets 3,893,462 4,453,964
199,369,154 200,406,755
Amount in Taka
Other operating income
Administrative expenses
Other operating expenses
Depreciation on banking assets
Rent, taxes, insurance, electricity etc.
Postage, stamps, telecommunication etc.
Stationery, printing, advertisement etc.
66
19 Interest paid on deposits and borrowing etc.
Interest on deposits
Recurring Deposit 16,826,835 16,205,492
Short Term Deposit (STD) 13,926,091 6,328,741
Savings 15,769,189 17,205,701
Term 183,875,986 277,346,554
230,398,100 317,086,487
60,923,496 57,832,748
Interest on local bank accounts - -
291,321,596 374,919,235
20 Investment income
Interest on treasury bonds 477,860,493.34 365,421,339
Interest (discount) on treasury bills 170,254,810
Dividend income 2,855,903
477,860,493 538,532,052
21
Commission for Guarantees 89,762,855 122,808,169
Commission for LC negotiation/amendment/advising 39,500,082 22,236,571
Commission for inward & outward remittances 8,885,123 7,849,480
Commission on Visa Processing 560,620,145 475,469,359
Commission for miscellaneous 11,732,258 13,955,388
Foreign exchange earnings 61,283,720 51,346,910
771,784,183 693,665,877
22 Other operating income
Miscellaneous Income 2,296,317 1,026,391
2,296,317 1,026,391
23
Basic Salary(B.S+H.R+CON) 77,383,568 84,631,917
Salary Casual Staff 18,652,560 15,901,702
Salary Leave Encash & Allowances 3,529,590 3,364,481
Provident Fund 4,433,718 3,849,740
103,999,435 107,747,840
24 Rent, taxes, insurance, electricity etc.
Rent, rates & taxes 55,514,055 55,200,379
Insurance 7,709,938 7,877,753
Power & electricity 9,785,425 8,993,195
73,009,418 72,071,327
25 Postage, stamp, telecommunication etc.
Postage & courier 5,082,592 949,930
Telephone-Office 2,548,539 3,196,174
Telephone-Residence 174,337 87,523
7,805,467 4,233,627
26 Stationery, printing, advertisement etc.
Stationery & Printing 8,470,903 8,612,062
Advertisement Statutory 429,000 107,490
Advertisement Public RelationAdvertisement Statutory - -
8,899,903 8,719,552
27 Auditors' fee
Audiit Fee(Statutory Audit) 300,000 345,000
Others (Credit Rating, Finacle Migration & Others) - -
300,000 345,000
Interest on money at call and short notice
Commission, exchange and brokerage
Salaries and allowances
67
28 Depreciation on and repairs to bank's assets
A. Depreciation of property plant and equipments
Furniture & fixtures 3,401,076 3,511,154
Office equipments 4,784,936 5,369,596
IT hardware 10,176,651 9,565,678
18,362,663 18,446,427
B. Repairs & maintenance expenses
Transport Maintenance
Equipment Maintenance 2,168,296 4,453,964
Hardware & Software Maintenance 1,725,166 -
Premises Maintenance 3,893,462 4,453,964
22,256,125 22,900,391
29 Other expenses
Water Consumption 1,360,023 1,622,170
Traveling expenses 1,618,433 3,085,726
Halting allowance 440,372 580,782
House up keep IB officers 47,230 37,680
Medical expenses 2,769,965 2,636,821
Computer expenses (including mantainance) 26,280,085 16,861,335
Petrol, Oil and Lubricants 2,192,510 1,966,979
Security 13,031,106 11,970,939
Membership subscription 425,288 565,783
Entertainment: canteen & other 8,809,672 10,597,212
News paper/Books 1,946,780 1,697,358
Conveyance Allowance - 10,632,345
Finacle Expenses 57,805,976 20,116,357
Children Education 884,510 643,085
Clearing Expenses 1,006,484 1,099,876
Other Allowances 3,680,747 4,379,800
Office Mantainance 8,028,520 6,402,829
Charges Donation 1,136,390 2,170,650
Rentals Car/ Transportation Exp. 7,492,796 6,090,522
Training 1,960,736 1,559,979
Charges Others 21,324,590 19,373,491
162,242,211 124,091,718
30
a) Provision on loans & advances
Provision made/ (adjusted) during the year for STD account (5,717,681) 6,131,931
Specific Provision made during the year 292,882,351 22,048,839
Recoveries/Provision no longer required (2,755,427)
287,164,671 25,425,343
287,164,671 25,425,343
Provision on LC & BG 2,527,386 32,394,721
Less: Recoveries/Provision no longer required - -
2,527,386 32,394,721
2,527,386 32,394,721
Grand Total (a+b) 289,692,057 57,820,064
31 Related party/(ies) transactions
Balance at year
end
NIL
Provisions
NIL NIL NIL
b) Provision for Off Balance Sheet
Previous year provision for off balance sheet items was included with provision for loans & advances and shown in the
profit and loss account grossly. Now we have rearranged the figures and shown separately to confirm the current year's
presentation.
i) The bank had no transactions with related parties in the normal course of business an on arm length basis. As on 31
December 2016, the bank had following transactions with the 'Related Party/(ies)' as defined in the BRPD Circulars No.
14 issued by the Bangladesh Bank on 25 June 2003.
Name of the Related Parties Relationship Transaction Nature
68
32
1,643,773.26 (637,366.00)
40,415.16 -
612,128.44 -
2,296,316.86 (637,366.00)
33
(73,009,418.49) (72,071,327)
(1,461,468.00) (2,835,445)
(7,805,467.49) (4,233,627)
(8,899,902.59) (8,719,552)
(300,000.00) (345,000)
-
(22,256,125) (22,900,391)
(162,242,211) (100,007,346)
(275,974,592.85) (211,112,688)
34
Cash 2,361,501,660 537,300,701
Balance with other banks and financial institutions 349,732,131 219,289,052
Money at call and short notice 1,380,000,000 1,810,000,000
Prize bonds 57,800 914,300
4,091,291,592 2,567,504,053
Receipts from other operating activities
SWIFT Charges
Interest Income from Local Banks
Service & Other Charges from Vostro Account
Payment for other operating activities
Charges on loan losses
Depreciation on and repairs to bank's assets
Other expenses
Cash and cash-equivalents items Breakup
Rent, taxes, insurance, electricity etc.
Legal expenses
Postage, stamps, telecommunication etc.
Stationery, printing, advertisement etc.
Auditors' fee
69
USD Taka USD Taka
PROPERTY AND ASSETS
Cash - - - -
Cash in hand (including foreign currency) 3 - - - -
- - - -
Balance with other banks and financial institutions 6,648,684 523,750,047 1,860,046 145,967,125
In Bangladesh - - - - Outside Bangladesh 4 6,648,684 523,750,047 1,860,046 145,967,125
Money at call on short notice - - - -
Investments - - - - Government - - - - Others - - - - Outside Bangladesh - - - -
Loans and advances 118,803,750 9,358,765,387 73,825,338 5,793,443,380
Loans, cash credits, overdrafts, etc. 5 15,000,000 1,181,625,000 4,617,296 362,342,267
Bills purchased and discounted 6 103,803,750 8,177,140,387 69,208,042 5,431,101,113
Fixed assets including premises, furniture & fixtures 7 - - - -
Other assets 8 2,312,330 182,153,834 2,040,415 160,121,601 Non banking assets - -
Total assets 127,764,764 10,064,669,268 77,725,799 6,099,532,106
LIABILITIES AND CAPITAL
Liabilities
Borrowing from other banks, financial institutions & agents 122,465,908 9,647,251,882 72,995,578 5,728,327,960
In Bangladesh 8,000,000 630,200,000 4,700,578 368,877,836
Outside Bangladesh 9 114,465,908 9,017,051,882 68,295,000 5,359,450,124
Deposits and other accounts 10 303,524 23,910,116 534,828 41,970,630
Current deposits and other accounts 303,524 23,910,116 534,828 41,970,630
Bills payable - - - -
Savings bank deposits - - - -
Term deposits - - - -
Other liabilities 11 1,402,980 110,519,707 778,639 61,103,697
Total liabilities 124,172,412 9,781,681,705 74,309,045 5,831,402,287
Capital / equity
Paid up capital - - - -
Statutory reserve - - - -
Other reserve - - - -
Surplus in profit and loss account 12 3,592,352 282,987,563 3,416,755 268,129,819
Total equity 3,592,352 282,987,563 3,416,755 268,129,819
Total liabilities and equity 127,764,764 10,064,669,268 77,725,799 6,099,532,106
(1) (0)
The accompanying notes form an integral part of these financial statements
Country Head Head of Risk Management Department
Signed as per our report of even date
Dated: Dhaka-February 27, 2017
HOWLADAR YUNUS & CO.Chartered Accountants
State Bank of India
Off-shore Banking Unit
Balance SheetAs at December 31, 2016
Balance with Bangladesh Bank and its Agents Bank (including
foreign currency)
Notes2016 2015
Bangladesh Operation
70
USD Taka USD Taka
Off Balance Sheet Items
Contingent liabilities 13 - - - -
Acceptances and endorsements - - - -
Letter of guarantee - - - -
Irrevocable letters of credit - - 133,449 10,432,345
Bills for collection -- - - - -
- - 133,449 10,432,345
Other Commitments:
Documents credit and short term trade -related transactions - - - -
Forward assets purchased and forward deposits placed - - - -
- - - -
- - - -
- - - -
- - 133,449 10,432,345
Country Head
Notes
2016 2015
Undrawn formal standby facilities, credit lines and
Undrawn note issuance and revolving underwriting facilities
The accompanying notes form an integral part of these financial statements
Signed as per our report of even date
HOWLADAR YUNUS & CO
Chartered Accountants
Head of Risk Management Department
Dated: Dhaka-February 27, 2017
71
USD Taka USD Taka
Operating income
Interest income 14 4,962,594 390,928,320 4,271,342 335,193,537
Less: Interest paid on deposits, borrowings, etc. 15 (1,182,833) (93,177,702) (876,833) (68,809,486)
Net interest income 3,779,760 297,750,618 3,394,508 266,384,051
Income from investment - - - -
Commission, exchange and brokerage 16 323,323 25,469,769 115,932 9,097,775
Other operating income 17 (5,099) (401,693) 22,364 1,755,042
Total operating income 4,097,984 322,818,694 3,532,805 277,236,868
Salaries and allowances 18 46,947 3,698,244 - -
Rent, taxes, insurance, lighting and traveling 19 6,051 476,671 - -
Legal expenses - - - -
Postage, stamp, telegram and telephone 20 - - - -
Auditors' fee 21 - - - -
Stationery, printing and advertisement 22 - - - -
Charges on loan loss - - - -
Managing director's salary - - - -
Directors' meeting fee - - - -
Repair, maintenance and depreciation of assets - - - -
Other expenses 23 2,850 224,473 2,300 180,503
Total operating expenses 55,848 4,399,388 2,300 180,503
Profit before provision 4,042,137 318,419,306 3,530,505 277,056,364
24 449,784 35,431,743 113,750 8,926,545
Profit before taxation 3,592,352 282,987,563 3,416,755 268,129,819
Provision for taxation - - - -
Current tax - -
Deferred tax - - - -
Profit after taxation 3,592,352 282,987,563 3,416,755 268,129,819
Retained earnings 3,592,352 282,987,563 3,416,755 268,129,819
Country Head
Dated: Dhaka-February 27, 2017
Head of Risk Management Department
The accompanying notes form an integral part of these financial statements
Bangladesh Operation
Signed as per our report of even date
HOWLADAR YUNUS & CO
Chartered Accountants
State Bank of India
Off-shore Banking Unit
Provision for loans & advance, other assets & off Balance Sheet
items
Profit and Loss Account
For the year ended December 31, 2016
Notes2016 2015
72
USD Taka USD Taka
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received in cash 4,680,550 368,710,346 4,224,612 331,526,438
Interest payments (1,362,744) (107,350,194) (876,593) (68,790,675)
Dividend received - - - -
Fees and commission received in cash 323,323 25,469,769 115,932 9,097,775
Recovery of loans and advances in cash previously written-off - - - -
Cash paid to employees - - - -
Income tax paid - - (2,193,072) (172,101,311)
Cash received from other operating activities (5,099) (401,693) 22,364 1,755,042
Cash paid for other operating activities (2,850) (224,473) (2,300) (180,503)
Cash flows before charges in operating assets and liabilities 3,633,180 286,203,755 1,290,943 101,306,766 - -
Increase / Decrease in operating assets and liabilities:
Loans and advances to customers (44,978,412) (3,543,174,405) (11,508,465) (921,821,833)
Other assets - - (1,538,870) (120,762,765)
Deposits from other Banks 49,470,330 3,897,025,248 12,587,818 1,005,951,322
Deposit from customers (231,304) (18,220,962) (239,590) (18,801,857)
Other liabilities 295,454 23,516,247 (1,029,456) (80,786,570)
4,556,068 359,146,128 (1,728,563) (136,221,702) - -
Net cash from operating activities 8,189,248 645,349,884 (437,620) (34,914,936) - -
CASH FLOWS FROM INVESTING ACTIVITIES - - - -
Proceeds from sale of securities - - - -
Cash payments for purchase of securities - - - -
Purchase/ sale of property, plant & equipment of fixed assets - - - -
Sales of fixed assets - - - -
Net cash from investing activities - - - - - -
CASH FLOWS FROM FINANCING ACTIVITIES - - - -
Loan paid - - - -
Transferred to Domestic Banking Unit (3,416,754.62) (268,129,818.81) - -
Net cash from financing activities (3,416,755) (268,129,819) - -
Net increase/(decrease) in cash and cash equivalent 4,772,493 377,220,065 (437,620) (34,914,936)
Effects of exchange rate changes on cash & cash equivalent - 562,857 - -
Opening cash and cash equivalent 1,876,190 145,967,125 2,313,810 180,882,061
Closing cash and cash equivalent 6,648,684 523,750,047 1,876,190 145,967,125
Country Head
Off-shore Banking UnitBangladesh Operation
State Bank of India
2016 2015
Cash Flow Statement
For the year ended December 31, 2016
HOWLADAR YUNUS & CO
Chartered Accountants
Dated: Dhaka-February 27, 2017
Signed as per our report of even date
Head of Risk Management Department
73
1.1 Status of the units
1.1.1 Principal activities
2 Summary of significant accounting policies & basis of preparation
2.1
a) Basis of accounting
b) Use of estimates and judgments
c) Foreign currency transaction
d) Cash flow statement
2.2 Reporting period
These financial statements cover one calendar year from 01 January to 31 December 2016.
Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard - 7 - "Cash flow statement" under direct
method as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by the Banking Regulation & Policy Department of
Bangladesh Bank.
The principal activities of the units are to provide all kinds of commercial banking services to its customers through its off-shore Banking units
in Bangladesh.
A summary of the principle accounting policies which have been applied consistently (Unless otherwise stated), is set out below:
The Off-shore Banking Units maintain its accounting records in USD from which accounts are prepared according to the Bank Companies Act
1991, Bangladesh Accounting Standards and other applicable directives issued by Bangladesh Bank.
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income and expenses, Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which
the estimate is revised and in any future periods affected.
Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of respective transactions as per
BAS -21" The Effects of Changes in Foreign Exchange Rates". Foreign currency balances held in US Dollar are coverted into Taka at weighted
average rate of intern-bank market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies
other than US Dollar are converted into equivalent US Dollar at buying rates of New York closing of the previous day and converted into Taka
equivalent.
Commitments for outstanding forward foreign exchange contracts disclosed in the financials are translated at contracted rates. Contingent
liabilities/ commitments for letter of credit and letter of guarantee denominated in foreign currencies are expressed in Taka terms at the rates of
exchange ruling on the balance date.
The resulting exchange transaction gains and losses are included in the profit and loss acount, except those arising on the transaction of net
investment in foreign subsidiary.
Off-shore Banking Units of State Bank of India, Bangladesh Operation,governed under the rules and guidelines of Bangladesh Bank. The bank
commenced the operation of its Off-shore banking Unit from 2010 after obtaining necessary approval from Bangladesh Bank.
State Bank of India
Bangladesh OperationOff-shore Banking Unit
Notes to the Financial Statements
For the year ended December 31, 2016
74
2.3 Cash and cash equivalents
2.4 Loans and advances / investment
a)
b)
2.5 Provision for liabilities
2.6
2.6.1 Interest income
2.6.2 Interest paid and other expenses
2.7 General
a)
b) Assests and liabilities & income and expenses have been converted into Taka currency @ US $ 1 = Taka 78.775 (Closing mid rate as at 31st
December 2016).
For the purpose of presentation in the Cash flow statements, cash and cash equivalents includes Cash in Hand and Cash at Bank , highly liquid
interest bearing investment/Securities with original maturities of less than three month.
Cash flow statement is prepared in accordance with BAS 7 titled " Cash Flow Statements". Cash flows form operating activities have been
presented at "Direct Method' .
Loans and advances of Off-shore Banking Units are stated in the balance sheet on gross basis.
Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest is not charged on bad and
loss loans as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate memorandum accounts.
A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result of a past event and it is probable
that an outflow of economic benefit will be required to settle the obligations, in accordance with the BAS 37 " Provisions, Contingent Liablities
and Contingent Assets".
Revenue & expense recognition
In terms of the provisions of the BAS - 18 "Revenue", the interest income is recognized on accrual basis.
In terms of the provisions of the BAS- 1 "Presentation of Financial Statements" interest and other expenses are recognized on accural basis.
These financial statements are presented both in USD and BDT, which is the Bank's functional currency. Figures appearing in these financial
statements have been rounded off to the nearest Taka.
75
USD Taka USD Taka
3 Cash in hand
In Local Currency - - - -
Foreign Currency Account - - - -
- - - -
4 Balance with other banks and financial institutions
In Bangladesh (Note -4.1) - - - -
Outside Bangladesh (Note -4.2) 6,648,684 523,750,047 1,860,046 145,967,125
6,648,684 523,750,047 1,860,046 145,967,125
4.1 In Bangladesh:
Sonali / Rupali/CBC
- - - -
4.2 Outside Bangladesh
Current Account 6,648,684 523,750,047 1,860,046 145,967,125
6,648,684 523,750,047 1,860,046 145,967,125
5 Loans and advances
i) Loans, cash credits, overdrafts, etc
Term loan 15,000,000 1,181,625,000 - -
Cash Credit - -
Over draft - - 4,617,296 362,342,267
15,000,000 1,181,625,000 4,617,296 362,342,267
ii) Bills purchased and discounted (note-6)
Inside Bangladesh
Inland bills purchased and discounted 103,803,750 8,177,140,387 69,208,042 5,431,101,113
Outside Bangladesh
Foreign bills purchased and discounted - - - -
103,803,750 8,177,140,387 69,208,042 5,431,101,113
118,803,750 9,358,765,387 73,825,338 5,793,443,380
5.1 Geographical location-wise loans and advances
Dhaka 60,294,932 4,749,733,298 36,484,634 2,863,131,645
Chittagong 58,508,817 4,609,032,089 37,340,704 2,930,311,735
Sylhet - - - -
Rajshahi - - - -
Khulna - - - -
Barisal - - - -
118,803,750 9,358,765,387 73,825,338 5,793,443,380
5.2 Classification of loans and advances
Unclassified
(i) Standard 118,803,750 9,358,765,387 73,825,338 5,793,443,380
(ii) Special mention account - - - -
Classified
(i) Substandard - - - -
(ii) Doubtful - - - -
(iii) Bad / loss - - - -
118,803,750 9,358,765,387 73,825,338 5,793,443,380
6 Bills purchased and discounted
In Bangladesh 103,803,750 8,177,140,387 69,208,042 5,431,101,113
Outside Bangladesh - - - -
103,803,750 8,177,140,387 69,208,042 5,431,101,113
7 Fixed assets including premises, furniture and fixtures
Furniture and fixtures - - - -
Office equipment and machinery - - - -
- - - -
8 Other assets
Inter Branch Account - - 10,128 794,826
Receivables from DBU(i) - - - -
Interest income receivable on loans & advance 2,312,330 182,153,834 2,030,287 159,326,775
Exchange Fluctuation of receivables from DBU - - - -
2,312,330 182,153,834 2,040,415 160,121,601
2016 2015
76
USD Taka USD Taka
2016 2015
9 122,465,908 9,647,251,882 72,995,578 5,728,327,960
122,465,908 9,647,251,882 72,995,578 5,728,327,960
9.1
Dhaka Branch 8,000,000 630,200,000 4,700,578 368,877,836
State Bank of India, Hongkong 114,465,908 9,017,051,882 68,295,000 5,359,450,124
122,465,908 9,647,251,882 72,995,578 5,728,327,960
10 Deposits and other accounts
Current deposits and other accounts (note- 10.1) 303,524 23,910,116 534,828 41,970,630
Savings deposits account (note- 10.2) - - - -
303,524 23,910,116 534,828 41,970,630
10.1 Current deposits and other accounts
Inter Branch a/c - - - -
Bangladesh Bank - - - -
303,524 23,910,116 534,828 41,970,630
303,524 23,910,116 534,828 41,970,630
10.2 Savings deposits account
Deposits from banks - - - -
Deposits from customers - - - -
- - - -
11 Other liabilities
Interest payable on inter branch borrowings 214,942 16,932,054 35,031 2,749,052
Citi Bank N.A. New York - - - -
Provision on loans and advances(note-11.1) 1,188,038 93,587,653 738,253 57,934,434
Provision for Current Taxation (iv) - - - -
Stamp account - - 5,355 420,211
Payable to DBU - - - -
1,402,980 110,519,707 892,389 70,217,593
11.1 Provision for loans and advances
Provision for bad and doubtful debts (i) - - - -
Provision on unclassified loans(ii) 1,188,038 93,587,653 738,253 57,934,434
1,188,038 93,587,653 852,004 67,048,330
i) Fresh provision on loans & advance made during the year
On classified loans & advances as per BBK circular (ii) - - - -
On unclassified loans & advances(iii) 449,785 35,653,219 113,750 8,926,545
449,785 35,653,219 113,750 8,926,545
ii)
Provision held at the beginning of the year - - - -
Less: Fully provided debt written off - - - -
Add: Recoveries of amount previously written off - - - -
Add: Specific provision for the year - - - -
Less: Recoveries and provision no longer required - - - -
Add: Net charge to profit & loss A/C - - - -
Provision held at the end of the year - - - -
iii)
Provision held at the beginning of the year 738,253 57,934,434 624,503 48,820,538
Adjustment - - 187,351
Add: Additional provision for the year 449,785 35,653,219 113,750 8,926,545
Less: Provision written back - - - -
Provision held at the end of the year 1,188,038 93,587,653 738,253 57,934,434 738,253 57,934,434
iv) Breakup of unclassified loans & advances 449,785 35,653,219
General provision for loans & advances - - - -
General provision for Off- Balance Sheet item - - - -
v) Provision for Current Taxation (iv)
Opening Balance - - 2,193,072 171,443,389
Add: Additional provision for the year - - - -
Add: Exchange Flucktuation - - - -
Less: Payment made during the year - - (2,193,072) (171,443,389)
- - - -
12 Surplus in profit and loss account
Opening balance 3,416,755 268,129,819 4,095,236 320,145,040
Add: Exchange Fluctuation - - - -
Add: Net profit for the year 3,592,352 282,987,563 3,416,755 268,129,819
Less: Transferred to retained earning (DBU) (3,416,755) (268,129,819) (4,095,236) (320,145,040)
3,592,352 282,987,563 3,416,755 268,129,819
Other Current A/C
Borrowings disclosed in the following manner:
Off-shore banking unit
The movement in general provision on unclassified loans:
The movement in specific provision for bad and doubtful
debts:
77
USD Taka USD Taka
2016 2015
13 Contingent liabilities - - - -
13.1 Acceptance & endorsement
Back to back bills - - - -
Less: Margin - - - -
- - - -
13.2 Irrevocable letter of credits
Letter of credits - - - -
Back to back letter of credit - - - -
- - - -
Less: Margin - -
- - - -
13.3 Letter of guarantee
Letter of guarantee (Local) - - - -
Letter of guarantee (Foreign) - - - -
Foreign counter guarantees - - - -
- - - -
Less: Margin
- - - -
13.4 Bills for collection
Outward local bills for collection - - - -
Inward foreign bills for collection - - - -
- - - -
Less: Margin
- - - -
14 Interest income
Overdraft 121,724 9,588,821 1,919,544 150,636,181
LTR loan - - - -
Bills discount 4,749,093 374,109,794 2,013,524 158,011,281
Others 91,777 7,229,705 338,274 26,546,075
Interest on loans and advances 4,962,594 390,928,320 4,271,342 335,193,537
Interest on balance with other banks and financial institutions - - - -
Interest received from foreign banks - - - -
- - - -
Total interest income 4,962,594 390,928,320 4,271,342 335,193,537
15 Interest paid on deposits, borrowings, etc.
Interest paid on Inter Branch Borrowings 1,182,833 93,177,702 876,833 68,809,486
Interest paid on Bangladesh Bank - - - -
1,182,833 93,177,702 876,833 68,809,486
16 Commission / fees
Commission for handling 156,944 12,363,241 4,688 367,901
Commission for LC negotiation/amendment/advising 1,342 105,716 2,625 205,958
Commission for foreign bill negotiation - - - -
Commission for outward remittances 5,443 428,794 1,898 148,979
Commission acceptance on bills 1,492 117,493 20,213 1,586,243
Commission for inward remittance 3,818 300,763 923 72,432
Commission for miscellaneous 154,285 12,153,761 85,585 6,716,262
323,323 25,469,769 115,932 9,097,775
17 Other operating income
Swift 40 3,151 1,160 91,031
Exchange Gain/(Loss) (5,495) (432,870) 21,168 1,661,185
Postage & courier 356 28,027 36 2,825
(5,099) (401,693) 22,364 1,755,042
18
Basic Salary 46,454 3,659,384 -
Other Allowances 283 22,322 -
Provident Fund 210 16,538 -
46,947 3,698,244 - -
19 Rent, taxes, insurance, electricity etc.
Rent, rates & taxes 6,051 476,671 -
6,051 476,671 - -
20 Postage, stamp, telecommunication etc.
Postage & courier - -
- - - -
Salaries and allowances
78
USD Taka USD Taka
2016 2015
21 Stationery, printing, advertisement etc.
Stationery & Printing - -
- - - -
22 Auditors' fee
Audiit Fee(Statutory Audit) - -
- - - -
23 Other expenses
Account maintenance charge - -
Others 2,850 224,473 2,300 180,503
2,850 224,473 2,300 180,503
24 Provision for loan :
Provision against classified loan - - - -
Provision against unclassified loan 449,784 35,431,743 113,750 8,926,545
Balance at the end of the year 449,784 35,431,743 113,750 8,926,545
79
Annexure - A
Standard Chartered Bank, Karachi Branch USD CD - 78.7750 0.00 - 78.4750 0.00
Deutsche Bank, Mumbai USD CD - 78.7750 0.00 - 78.4750 0.00
JP Morgan Chase Bank USD CD 1,770,725.92 78.7750 139,488,934.35 862,719.35 78.4750 67,701,900.99
ACU Dollar Nostro a/c USD CD 474,049.02 78.7750 37,343,211.55 158,922.96 78.4750 12,471,479
Bank of America USD CD 33,113.94 78.7750 2,608,550.62 108,855.28 78.4750 8,542,418
Deutsche Bank Trust Company, New York USD CD 30,544.04 78.7750 2,406,106.75 112,469.45 78.4750 8,826,040
State Bank of India, West Germany (FF) EURO CD 223,204.82 82.3170 18,373,551.17 783,668.39 85.7784 67,221,821
State Bank of India, London GBP CD 10,940.75 96.5131 1,055,925.70 6,304.74 116.3463 733,534
State Bank of India, New York USD CD 1,731,107.41 78.7750 136,367,986.22 316,799.81 78.1750 24,860,865
State Bank of India, Japan JYEN CD 407,835.00 0.6778 276,430.56 268,072.00 0.6543 175,400
Total 4,681,521 N/A 337,920,697 2,617,812 N/A 190,533,458
State Bank of India Bangladesh Operations
As at December 31, 2016
2015
Balance with other bank and financial institutions (Outside Bangladesh on Demand Deposit Accounts )
2016
Name of BankA/C
Type
Currency
Type Exchange Rate Equivalent Taka
FC Amount Exchange
Rate Equivalent TakaFC Amount
80
Annexure -C
Balance as of 1
Janaury 2016
Addition during
the year
Adjustment
/disposal
during the yearBalance as of 31
December 2015
Balance as of 1
Janaury 2015
Charged for the
year
Adjustment/disp
osal during the
year
Balance as of 31
December 2015
Furniture & fixture 71,032,920 3,823,948 355,294 74,501,574 10 37780319.52 3,222,237 178,839 40,823,718 33,677,856
Office Appliances 42,091,162 2,433,375 402,843 44,121,693 25 24297768.73 4,496,629 288,307 28,506,091 15,615,602
Computer 88,167,638 13,870,356 344,846 101,693,148 25 54981644.34 10,046,855 129,797 64,898,703 36,794,445
As on 31 December 2015 201,291,720 20,127,679 1,102,984 220,316,415 117,059,733 17,765,721 596,942 134,228,511 86,087,904
As on 31 December 2015 174,558,316 32,415,431 5,682,027 201,291,720 102,631,576 18,446,427 4,018,270 117,059,733 84,231,987
Note: During the year 2015 Rajshahi branch has debit Fixed Assets Computer instead of Office Equipment. As such amounting taka 1,33,266 is included in Office equipment addition amounting taka 7,340,729.
Bangladesh Operations
Schedule of Fixed Assets
As at December 31, 2016
(Figures in Taka)
Particulars
COST
Rate
%
DEPRECIATION
Written down
value of 31
December 2015
81
Annexure-D
(Figures in Taka)
Accounting
Year
Assessment
YearTax provision
Tax as per
assessment
Advance Tax as
per assessment
order Present Status
2001 2002-2003 48,938,000 48,938,000 48,938,000 Completed
2002 2003-2004 52,406,268 52,406,268 52,406,268 Completed
2003 2004-2005 45,952,000 45,952,000 45,952,000 Completed
2004 2005-2006 107,900,000 107,900,000 107,900,000 Completed
2005 2006-2007 120,406,589 120,406,224 120,406,589 Completed
2006 2007-2008 136,773,803 136,773,803 136,773,803 Completed
2007 2008-2009 190,945,069 190,945,069 190,945,069 Completed
2008 2009-2010 226,964,018 226,964,018 226,964,018 Completed
2009 2010-2011 210,000,000 204,599,250 203,338,070 Completed
2010 2011-2012 330,000,000 325,930,336 325,296,807 Completed
2011 2012-2013 510,000,000 495,223,988 499,747,443 Completed
2012 2013-2014 586,000,000 - - Completed
2013 2014-2015 465,000,000 465,242,552 459,999,999 Completed
2014 2015-2016 517,482,673 488,309,032 488,309,032 Submitted & Completed U/S 82BB
2015 2016-2017 455,847,986 456,086,402 456,086,402 Submitted & Completed U/S 82BB
Statement of Tax position
As at December 31, 2016
Bangladesh Operations
State Bank of India
82
Annexure-E
No of
entry
Amount
in F.CAmount in US$
No of
entry
Amount in
F.CAmount in US$
No of
entryAmount in F.C
Amount in
US$
No of
entryAmount in F.C Amount in US$
1 State Bank of India, London GBP 2016 1
2 State Bank of India, New York USD 2016 2 2 400.12 400.12 1 713 713 - 6 81,068.50 81,068.50
3 State Bank of India, Frankfurt EURO 2016 3 2 21,139.13 23,106.48 1 9,045.00 9,045.00 1 25,370.12 27,983.24
4
Deutsche Bank Trust Com.
America, USA USD2016 4 - 2 34,523.64 34,523.64
5 State Bank of India, Tokyo USD 2016 5
6 Bank of America USD 2016 6 - 4 17,475.89 17,475.89
7 JP Morgan Chase bank, USA USD 2016 7 - 7 8,720.00 8,720.00 2 33,656.12 33,656.12 10 121,540.80 121,540.80
8 State Bank of India, Kolkata USD 2016 8 - 1 25.55 25.55 3 66,343.26 66,343.26
4 23,506.60 9 9,458.55 6 109,044.38 23 279,978.95 282,592.07
STATE BANK OF INDIA (Bangladesh Operations)
Unreconciled Entries and amount in Local & Nostro Account
Postion as on December 31, 2016
Name of the Bank
Cu
rren
cy
Year
No
te R
ef. Local Book Foreign book
Local Debits Local Credits Nostro's Debits Nostro's Credits
83
Annexure- F
ISIN NumberPurchase
Date
Face Value (Scrip
currency)Maturity Date Purchase Cost Tenor
Yield/coup
on RatePresent Value
Amortization
Gain / Loss* Market Value Portfolio
Type of
Security Holding Number Deal No
Purpose of
Security
BD0930121209 29-Sep-10 120,000,000.00 29-Sep-30 120,435,096.00 20 9.25% 120,298,938.65 - 120,298,938.65 HTM T Bond 8200557 10674582 CapitalBD0930121209 29-Sep-10 120,000,000.00 29-Sep-30 120,326,091.00 20 9.25% 120,224,045.28 - 120,224,045.28 HTM T Bond 8200558 10674607 CapitalBD0930121209 29-Sep-10 100,000,000.00 29-Sep-30 100,181,034.00 20 9.25% 100,124,381.88 - 100,124,381.88 HTM T Bond 8200559 10674618 CapitalBD0930161205 27-Oct-10 200,000,000.00 27-Oct-30 200,000,000.00 20 9.25% 200,000,000.00 - 200,000,000.00 HTM T Bond 8200569 10688013 CapitalBD0930201209 24-Nov-10 350,000,000.00 24-Nov-30 354,728,850.00 20 9.45% 353,285,272.24 - 353,285,272.24 HTM T Bond 8200587 10702569 CapitalBD0932081203 29-Aug-12 4,100,000.00 29-Aug-32 4,100,000.00 20 12.16% 4,100,000.00 - 4,100,000.00 HTM T Bond 8201318 11324916 CapitalBD0932121207 26-Sep-12 1,900,000.00 26-Sep-32 1,900,000.00 20 12.16% 1,900,000.00 - 1,900,000.00 HTM T Bond 8201321 11355870 CapitalBD0932161203 25-Oct-12 1,200,000.00 25-Oct-32 1,198,214.73 20 12.16% 1,198,214.73 228.44 1,198,443.17 HTM T Bond 8200939 11913787 CapitalBD0932201207 28-Nov-12 600,000.00 28-Nov-32 598,219.19 20 12.18% 598,219.19 5,517.14 603,736.33 HTM T Bond 8200959 11913809 SLRBD0932241203 26-Dec-12 1,200,000.00 26-Dec-32 1,200,000.00 20 12.28% 1,200,000.00 - 1,200,000.00 HTM T Bond 8200972 11459416 SLRBD0933361208 27-Mar-13 900,000.00 27-Mar-33 898,032.33 20 12.51% 898,032.33 526.27 898,558.60 HTM T Bond 8201325 11572017 CapitalBD0933481204 26-Jun-13 1,300,000.00 26-Jun-33 1,293,384.56 20 12.48% 1,293,384.56 1,093.92 1,294,478.48 HTM T Bond 8201118 11920197 CapitalBD0933121206 25-Sep-13 1,200,000.00 25-Sep-33 1,193,893.44 20 12.48% 1,193,893.44 809.09 1,194,702.53 HTM T Bond 8201198 11825360 CapitalBD0933241202 26-Dec-13 1,300,000.00 26-Dec-33 1,294,273.27 20 12.33% 1,294,273.27 167.70 1,294,440.97 HTM T Bond 8201220 11920666 SLRBD0934161201 29-Oct-14 1,500,000.00 29-Oct-34 1,494,369.00 20 12.03% 1,494,369.00 264.18 1,494,633.18 HTM T Bond 8201349 11959874 CapitalBD0934201205 26-Nov-14 700,000.00 26-Nov-34 695,802.80 20 12.06% 695,802.80 313.10 696,115.90 HTM T Bond 8201374 11970377 CapitalBD0934201205 24-Dec-14 1,400,000.00 26-Nov-34 1,390,251.80 20 12.07% 1,390,251.80 363.10 1,390,614.90 HTM T Bond 8201391 11980587 Capital
BD0925141154 13-Oct-10 150,000,000.00 13-Oct-25 150,614,400.00 15 8.95% 150,359,624.17 - 150,359,624.17 HTM T Bond 8200564 10681299 CapitalBD0925141154 13-Oct-10 150,000,000.00 13-Oct-25 150,491,250.00 15 8.95% 150,287,541.29 - 150,287,541.29 HTM T Bond 8200565 10681304 CapitalBD0925141154 13-Oct-10 100,000,000.00 13-Oct-25 100,245,500.00 15 8.95% 100,143,697.49 - 100,143,697.49 HTM T Bond 8200566 10681315 CapitalBD0927111155 19-Sep-12 4,400,000.00 19-Sep-27 4,400,000.00 15 11.88% 4,400,000.00 - 4,400,000.00 HTM T Bond 8200901 11349245 CapitalBD0927151151 17-Oct-12 1,100,000.00 17-Oct-27 1,097,723.93 15 11.93% 1,097,723.93 2,036.54 1,099,760.47 HTM T Bond 8200929 11913775 CapitalBD0927231151 19-Dec-12 1,000,000.00 19-Dec-27 1,001,371.00 15 12.08% 1,001,002.10 - 1,001,002.10 HTM T Bond 8200968 11452316 SLRBD0928271156 16-Jan-13 900,000.00 16-Jan-28 900,000.00 15 11.05% 900,000.00 - 900,000.00 HTM T Bond 8200988 11484227 SLRBD0928351156 20-Mar-13 500,000.00 20-Mar-28 499,662.94 15 12.38% 499,662.94 3,982.52 503,645.46 HTM T Bond 8201039 11919378 CapitalBD0928471152 19-Jun-13 2,600,000.00 19-Jun-28 2,589,522.57 15 12.40% 2,589,522.57 1,927.25 2,591,449.82 HTM T Bond 8201115 11919388 CapitalBD0928041153 24-Jul-13 1,000,000.00 24-Jul-28 995,301.07 15 12.40% 995,301.07 363.66 995,664.73 HTM T Bond 8201155 11920205 SLRBD0928121153 25-Sep-13 2,400,000.00 25-Sep-28 2,391,944.69 15 12.42% 2,391,944.69 281.15 2,392,225.84 HTM T Bond 8201197 11920645 CapitalBD0928161159 23-Oct-13 1,400,000.00 23-Oct-28 1,393,428.42 15 12.42% 1,393,428.42 262.07 1,393,690.49 HTM T Bond 8201208 11913827 SLRBD0929201152 26-Nov-14 900,000.00 26-Nov-29 898,091.10 15 11.50% 898,091.10 195.12 898,286.22 HTM T Bond 8201373 11970366 CapitalBD0929201152 24-Dec-14 1,600,000.00 26-Nov-29 1,588,417.60 15 11.57% 1,588,417.60 416.92 1,588,834.52 HTM T Bond 8201392 11980593 Capital
BD0920131101 6-Oct-10 150,000,000.00 6-Oct-20 150,000,000.00 10 8.85% 150,000,000.00 - 150,000,000.00 HTM T Bond 8200561 10677514 CapitalBD0920171107 3-Nov-10 350,000,000.00 3-Nov-20 351,145,550.00 10 8.90% 350,439,655.38 - 350,439,655.38 HTM T Bond 8200576 10692079 CapitalBD0920171107 3-Nov-10 350,000,000.00 3-Nov-20 350,915,950.00 10 8.90% 350,351,536.25 - 350,351,536.25 HTM T Bond 8200577 10692088 CapitalBD0921411106 4-May-11 200,000,000.00 4-May-21 200,000,000.00 10 9.45% 200,000,000.00 - 200,000,000.00 HTM T Bond 8200645 10797589 CapitalBD0922061108 22-Aug-12 7,500,000.00 22-Aug-22 7,500,000.00 10 11.75% 7,500,000.00 - 7,500,000.00 HTM T Bond 8201329 11317890 CapitalBD0922101102 12-Sep-12 10,000,000.00 12-Sep-22 10,000,000.00 10 11.75% 10,000,000.00 - 10,000,000.00 HTM T Bond 8201320 11342693 CapitalBD0922141108 10-Oct-12 8,200,000.00 10-Oct-22 8,200,000.00 10 11.80% 8,200,000.00 - 8,200,000.00 HTM T Bond 8201323 11372508 CapitalBD0922181104 14-Nov-12 9,700,000.00 14-Nov-22 9,677,557.43 10 11.75% 9,677,557.43 4,293.30 9,681,850.73 HTM T Bond 8200949 11913800 SLRBD0922221108 12-Dec-12 11,000,000.00 12-Dec-22 10,993,643.00 10 11.80% 10,993,643.00 6,331.26 10,999,974.26 HTM T Bond 8200963 11913820 SLRBD0923261103 9-Jan-13 6,000,000.00 9-Jan-23 6,000,000.00 10 9.95% 6,000,000.00 - 6,000,000.00 HTM T Bond 8201330 11476459 SLRBD0923301107 13-Feb-13 4,900,000.00 13-Feb-23 4,900,000.00 10 12.00% 4,900,000.00 - 4,900,000.00 HTM T Bond 8201324 11517254 Capital
State Bank of India, Bangladesh Operations
Investment Schedule
As on 31.12.2016
84
BD0923381109 10-Apr-13 6,700,000.00 10-Apr-23 6,677,094.44 10 12.10% 6,677,094.44 6,067.42 6,683,161.86 HTM T Bond 8201053 11919383 CapitalBD0923241103 15-May-13 7,200,000.00 13-Mar-23 7,160,565.60 10 12.19% 7,160,565.60 4,526.46 7,165,092.06 HTM T Bond 8201084 11919385 SLRBD0923341103 12-Jun-13 7,500,000.00 13-Mar-23 7,458,735.00 10 12.10% 7,458,735.00 4,184.32 7,462,919.32 HTM T Bond 8201107 11919386 SLRBD0923031100 17-Jul-13 4,000,000.00 17-Jul-23 3,993,187.34 10 12.22% 3,993,187.34 4,233.46 3,997,420.80 HTM T Bond 8201144 11920204 SLR
BD0923031100 21-Aug-13 3,700,000.00 17-Jul-23 3,684,360.77 10 12.22% 3,684,360.77 5,990.24 3,690,351.01 HTM T Bond 8201178 11920636 SLRBD0923031100 18-Sep-13 4,700,000.00 17-Jul-23 4,682,234.00 10 12.22% 4,682,234.00 1,209.06 4,683,443.06 HTM T Bond 8201191 11920641 SLRBD0923031100 13-Oct-13 3,400,000.00 17-Jul-23 3,387,035.80 10 12.28% 3,387,035.80 5,771.28 3,392,807.08 HTM T Bond 8201205 11920660 CapitalBD0923191102 18-Dec-13 2,900,000.00 20-Nov-23 2,892,750.00 10 12.16% 2,892,750.00 579.64 2,893,329.64 HTM T Bond 8201218 11913831 SLR
BD0917051056 8-Aug-12 11,600,000.00 8-Aug-17 11,600,000.00 5 11.50% 11,600,000.00 - 11,600,000.00 HTM T Bond 8201319 11305133 CapitalBD0917091052 5-Sep-12 10,900,000.00 5-Sep-17 10,900,000.00 5 11.55% 10,900,000.00 - 10,900,000.00 HTM T Bond 8201317 11334136 CapitalBD0917131056 3-Oct-12 8,000,000.00 3-Oct-17 8,000,000.00 5 11.55% 8,000,000.00 - 8,000,000.00 HTM T Bond 8201322 11364401 CapitalBD0917171052 7-Nov-12 4,800,000.00 7-Nov-17 4,796,426.64 5 11.52% 4,796,426.64 3,299.65 4,799,726.29 HTM T Bond 8200945 11913790 CapitalBD0917211056 5-Dec-12 8,400,000.00 5-Dec-17 8,409,386.78 5 11.52% 8,401,737.53 - 8,401,737.53 HTM T Bond 8200962 11435816 SLRBD0918251051 2-Jan-13 9,400,000.00 2-Jan-18 9,406,984.51 5 11.38% 9,401,399.96 - 9,401,399.96 HTM T Bond 8200976 11466875 SLRBD0918291057 6-Feb-13 9,100,000.00 6-Feb-18 9,106,745.54 5 11.72% 9,101,481.36 - 9,101,481.36 HTM T Bond 8201008 11509886 CapitalBD0918331051 6-Mar-13 8,500,000.00 6-Mar-18 8,500,000.00 5 11.82% 8,500,000.00 - 8,500,000.00 HTM T Bond 8201021 11545686 CapitalBD0918411051 8-May-13 4,800,000.00 8-May-18 4,791,115.20 5 11.70% 4,791,115.20 3,024.11 4,794,139.31 HTM T Bond 8201326 11626428 SLRBD0918021058 10-Jul-13 5,500,000.00 10-Jul-18 5,493,896.16 5 11.75% 5,493,896.16 2,111.01 5,496,007.17 HTM T Bond 8201132 11920201 CapitalBD0918061054 14-Aug-13 5,800,000.00 14-Aug-18 5,793,567.81 5 11.78% 5,793,567.81 1,586.25 5,795,154.06 HTM T Bond 8201171 11920635 SLRBD0918101058 11-Sep-13 7,800,000.00 11-Sep-18 7,785,589.86 5 11.78% 7,785,589.86 3,325.28 7,788,915.14 HTM T Bond 8201189 11920638 SLRBD0918141054 9-Oct-13 7,200,000.00 9-Oct-18 7,184,041.78 5 11.78% 7,184,041.78 3,458.78 7,187,500.56 HTM T Bond 8201200 11920660 SLR
BD0919141053 15-Oct-14 2,500,000.00 15-Oct-19 2,502,927.50 5 9.59% 2,501,630.49 - 2,501,630.49 HTM T Bond 8201341 11955577 CapitalBD0919181059 12-Nov-14 2,300,000.00 12-Nov-19 2,297,315.90 5 9.66% 2,297,315.90 628.55 2,297,944.45 HTM T Bond 8201359 11965060 CapitalBD0920141050 14-Oct-15 105,800,000.00 14-Oct-20 105,800,000.00 5 7.35% 105,800,000.00 - 105,800,000.00 HTM T Bond 8201501 12086200 Capital
BD0917331029 4-Mar-15 700,000.00 4-Mar-17 699,495.30 2 8.54% 699,495.30 147.53 699,642.83 HTM T Bond 8201415 12006107 CapitalBD0917451058 1-Feb-16 100,000,000.00 6-Jun-17 108,475,200.00 2 4.85% 102,827,349.46 - 102,827,349.46 HTM T Bond 8201563 12119244 CapitalBD0917451058 28-Feb-16 250,000,000.00 6-Jun-17 270,149,250.00 2 4.82% 257,060,830.08 - 257,060,830.08 HTM T Bond 8201578 12127158 CapitalBD0917011050 31-Jan-16 200,000,000.00 4-Jul-17 217,605,800.00 2 5.00% 206,549,273.71 - 206,549,273.71 HTM T Bond 8201559 12118869 CapitalBD0918011026 13-Jul-16 200,000,000.00 13-Jul-18 200,221,802.00 2 6.48% 200,169,237.96 - 200,169,237.96 HTM T Bond 8201641 12171007 Capital
BD0936451170 20-Jun-16 150,000,000.00 19-Jun-17 142,618,350.00 364 5.19% 142,618,350.00 3,934,176.10 146,552,526.10 HTM T Bill 8201628 12163277 SLRBD0936451170 20-Jun-16 140,000,000.00 19-Jun-17 133,060,060.00 364 5.23% 133,060,060.00 3,698,759.23 136,758,819.23 HTM T.Bill 8201629 12163278 CapitalBD0936451170 20-Jun-16 150,000,000.00 19-Jun-17 142,550,850.00 364 5.24% 142,550,850.00 3,970,151.37 146,521,001.37 HTM T.Bill 8201630 12163279 SLRBD0936451170 20-Jun-16 100,000,000.00 19-Jun-17 94,988,900.00 364 5.29% 94,988,900.00 2,670,751.10 97,659,651.10 HTM T.Bill 8201631 12163280 CapitalBD0936414178 17-Oct-16 130,000,000.00 16-Oct-17 125,085,090.00 364 3.94% 125,085,090.00 1,012,687.50 126,097,777.50 HTM T.Bill 8201670 12201210 SLRBD0936414178 17-Oct-16 150,000,000.00 16-Oct-17 144,273,600.00 364 3.98% 144,273,600.00 1,179,890.11 145,453,490.11 HTM T.Bill 8201671 12201212 CapitalBD0936414178 17-Oct-16 200,000,000.00 16-Oct-17 192,254,200.00 364 4.04% 192,254,200.00 1,595,975.27 193,850,175.27 HTM T.Bill 8201672 12201213 CapitalBD0936416173 31-Oct-16 250,000,000.00 30-Oct-17 240,779,500.00 364 3.84% 240,779,500.00 1,545,193.68 242,324,693.68 HTM T.Bill 8201675 12206093 CapitalBD0936416173 31-Oct-16 150,000,000.00 30-Oct-17 144,412,200.00 364 3.88% 144,412,200.00 936,417.03 145,348,617.03 HTM T.Bill 8201676 12206094 CapitalBD0936422171 12-Dec-16 200,000,000.00 11-Dec-17 192,768,800.00 364 3.76% 192,768,800.00 377,452.75 193,146,252.75 HTM T.Bill 8201688 12220371 CapitalBD0936422171 12-Dec-16 200,000,000.00 11-Dec-17 192,768,800.00 364 3.76% 192,768,800.00 377,452.75 193,146,252.75 HTM T.Bill 8201689 12220374 CapitalBD0936422171 12-Dec-16 140,000,000.00 11-Dec-17 134,938,160.00 364 3.76% 134,938,160.00 264,216.92 135,202,376.92 HTM T.Bill 8201690 12220377 CapitalBD0936424177 26-Dec-16 200,000,000.00 25-Dec-17 192,734,600.00 364 3.78% 192,734,600.00 99,799.45 192,834,399.45 HTM T.Bill 8201694 12224914 Capital
BD0918201171 11-Jul-16 120,000,000.00 9-Jan-17 116,916,000.00 182 5.29% 116,916,000.00 2,931,494.51 119,847,494.51 HTM T.Bill 8201638 12169979 SLRBD0918201171 11-Jul-16 120,000,000.00 9-Jan-17 116,887,560.00 182 5.34% 116,887,560.00 2,958,528.13 119,846,088.13 HTM T.Bill 8201639 12169981 SLRBD0918202179 18-Jul-16 200,000,000.00 16-Jan-17 194,803,200.00 182 5.35% 194,803,200.00 4,739,938.46 199,543,138.46 HTM T.Bill 8201642 12172562 CapitalBD0918202179 18-Jul-16 200,000,000.00 16-Jan-17 194,718,200.00 182 5.44% 194,718,200.00 4,817,465.93 199,535,665.93 HTM T.Bill 8201643 12172566 CapitalBD0918223175 19-Dec-16 100,000,000.00 19-Jun-17 98,434,300.00 182 3.19% 98,434,300.00 103,232.97 98,537,532.97 HTM T.Bill 8201691 12222790 Capital
85
BD0909112171 3-Oct-16 200,000,000.00 2-Jan-17 198,422,000.00 91 3.19% 198,422,000.00 1,543,318.68 199,965,318.68 HTM T.Bill 8201665 12196718 CapitalBD0909112171 3-Oct-16 150,000,000.00 2-Jan-17 148,798,050.00 91 3.24% 148,798,050.00 1,175,533.52 149,973,583.52 HTM T.Bill 8201666 12196720 SLR
BD0303096160 1-Dec-16 150,000,000.00 31-Dec-16 149,634,750.00 30 2.97% 149,634,750.00 - 149,634,750.00 HTM BB Bill 12217139 CapitalBD0403009170 19-Dec-16 270,000,000.00 18-Jan-17 269,342,550.00 30 2.97% 269,342,550.00 - 269,342,550.00 HTM BB Bill 8201692 12222792 CapitalBD0403010178 20-Dec-16 250,000,000.00 19-Jan-17 249,391,250.00 30 2.97% 249,391,250.00 - 249,391,250.00 HTM BB Bill 8201693 12223356 CapitalBD0403014170 27-Dec-16 215,000,000.00 26-Jan-17 214,476,475.00 30 2.97% 214,476,475.00 - 214,476,475.00 HTM BB Bill 8201695 12225245 CapitalBD0403014170 27-Dec-16 125,000,000.00 26-Jan-17 124,695,625.00 30 2.97% 124,695,625.00 - 124,695,625.00 HTM BB Bill 8201696 12225244 SLRBD0403015177 28-Dec-16 300,000,000.00 27-Jan-17 299,269,500.00 30 2.97% 299,269,500.00 - 299,269,500.00 HTM BB Bill 8201697 12225766 Capital
14-Dec-05 2,000,000.00 31-Dec-20 2,000,000.00 2,000,000.00 - 2,000,000.00 8201327 10063368
14-Oct-10 1,138,890.00 14-Oct-20 1,138,890.00 1,138,890.00 - 1,138,890.00 8201328 11911852
Total 7,998,738,890.00 7,942,983,793.80 7,909,549,240.75 40,011,951.23 7,949,561,191.98
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86
Annexure-G
(Figures in Taka)
SL. Particulars 2016 2015
1 Paid-up capital/Fund deposit with Bangladesh Bank 6,915,097,378 7,213,626,369
2 Capital surplus/(deficit) 3,813,295,881 4,332,957,488
3 Total assets 25,762,526,362 22,251,435,023
4 Total deposits 7,956,061,008 7,040,175,836
Total Borrowings 9,017,051,882 5,728,327,960
5 Total loans & advances 12,536,423,732 10,202,895,793
6 Total contingent liabilities & commitments 20,925,268,087 20,672,529,472
7 Credit deposit ratio (Loans & advances/Deposits including obu) 73.86% 79.91%
8 Percentage of classified loans against total loans & advances 4.54% 5.60%
9 Profit after tax & provisions 610,307,247 916,940,101
10 Amount of classified loans during the current year 568,883,373 571,466,409
11 Provision kept against classified loans 328,808,165 428,516,473
12 Provisions surplus/(deficit) 26,780,506 48,644,416
13 Provision Coverage Ration(%) 57.80% 74.99%
14 Cost of fund 2.00% 2.74%
15 Interest earning other assets 113,276,051 123,551,892
16 Non-Interest earning other assets 279,982,010 672,550,441
17 Return on Investment (ROI) [Int. Income from Investment/Total
Investment]
6.01% 6.49%
18 Return on assets (ROA) [PAT/Average assets] 3.74% 5.68%
19 Return on Equity (ROE) [PAT/Average shareholders equity] 8.44% 11.71%
20 Income from investments 477,860,493 538,532,052
21 Cash reserve requirement (CRR) maintenance (%) 23.98% 6.64%
22 Statutory Liquidity Reserve maintenance (%) 130.89% 117.62%
23 Capital Adequacy Ratio (%) 53.02% 78.79%
24 Weighted average earning per share Not Applicable Not Applicable
25 Net income per share [(PAT-Dividend on preference share/No. of Ordinary
Shares)]
Not Applicable Not Applicable
26 Price earning ratio (Market price per share/EPS) Not Applicable Not Applicable
27 Net Asset Value per Share (NAV) [(Shareholders equity- Preference
Share)/No. of Ordinary Share]
Not Applicable Not Applicable
State Bank of India Bangladesh Operation
Highlights on the overall Activities
For the year ended December 31, 2016
87
2016
Interest receipts
Interest Income 956,695,007.19
Interest Receivables 2015 123,551,892.47
Interest Receivables 2016 (113,276,050.50)
966,970,849.16
Interest payment
Interest Expenses 291,321,596.15
Interest Payable 2015 66,057,758.13
Interest Payable 2016 (49,347,322.90)
308,032,031.38
Receipts from other operating activities
SWIFT Charges 1,643,773.26
Interest Income from Local Banks 40,415.16
Service & Other Charges from Vostro Account 612,128.44
2,296,316.86
Payment for other operating activities
Rent, taxes, insurance, electricity etc. (73,009,418.49)
Legal expenses (1,461,468.00)
Postage, stamps, telecommunication etc. (7,805,467.49)
Stationery, printing, advertisement etc. (8,899,902.59)
Auditors' fee (300,000.00)
Charges on loan losses
Depreciation on and repairs to bank's assets (22,256,125)
Other expenses (162,242,211)
(275,974,592.85)
Loans & advances to customers
Loans & Advances to customers as on Dec 15 4,409,452,413.04
Loans & Advances to customers as on Dec 16 (3,177,658,344.73)
1,231,794,068.31
Receipts from the capitalization/ Capital Transferred
to IBG (1,176,000,000.00)
(1,176,000,000.00)
Number of Clients:
Amount of outstanding advances: 2,765,885,063
Amount of classified advances: NIL
Measures taken for recovery: NIL
Client wise break-up is as follows:
December 2016
Funded Non Funded Total
1 UNITED AIRWAYS (BD) LTD 343,493,542.99 - 343,493,543
2 NITOL MOTORS LIMITED 286,403,728.68 - 286,403,729
3 APEX FOOTWEAR LIMITED 233,801,345.08 - 233,801,345
4 MOSTAFA CORPORATION LTD 185,818,385.31 - 185,818,385
5 CLEWSTON TRADING LTD 176,253,589.57 - 176,253,590
6 UTTARA FOODS & FEEDS (BANGLADESH) 165,800,120.38 30,454,993 196,255,113
7 NAHAR TRADING CORPORATION LTD. 154,937,315.90 - 154,937,316
8 HG AVIATION LTD 131,870,931.45 - 131,870,931
9 BANGLADESH EXPORT IMPORT CO.LT 128,014,902.30 - 128,014,902
10 GPH ISPAT LIMITED 114,372,549.97 - 114,372,550
11 ALLIANCE PROPERTIES LIMITED 104,018,976.31 - 104,018,976
12 BURO BANGLADESH 100,606,711.40 - 100,606,711
13 MASOOD AND COMPANY LTD. 99,641,818.57 - 99,641,819
14 ARAMIT CEMENT LIMITED 88,700,130.67 11,212,125 99,912,256
15 CEAT BANGLADESH LIMITED 84,186,765.70 10,914,189 95,100,955
16 T.J. INTERNATIONAL LIMITED 82,895,858.61 - 82,895,859
17 FAS FINANCE & INVESTMENT LIMIT 76,197,910.72 - 76,197,911
18 BARAKA LIMITED 72,548,268.07 8,247,871 80,796,139
19 SIX SEASONS FOOD AND BEVERAGES 70,789,962.41 - 70,789,962
20 SUNDARBAN EXPRESS TRANSPORTATI 65,532,248.95 - 65,532,249
2,765,885,063 60,829,178 2,826,714,241
SL.Outstanding (Taka)
Total
State Bank of India Bangladesh Operations
Details of Large Loan
As at December 31, 2016
Name of Clients
90